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U.S. aid to Afro-Asian bloc nations itors. None can deny that American foreign second biggest Communist Party outside the (1946-62) Continued
aid and American foreign-investment guar- Communist bloc and is currently nationalSaudi Arabia--
$65, 800,000 antees have caused American industries to izing (which means communizing) major inSenegal--
3, 600, 000 expand abroad, thus curtailing industrial ex- dustries. Sierra Leone
1, 300, 000 pansion at home. None can deny that many Of the 52 Afro-Asian bloc nations which Somalia---
13,400,000 American industries have already been griev. receive our aid, at least 5 can correctly be Sudan.
51, 200, 000 ously hurt by foreign competition which called Communist nations, since they are Syria-----
100,000,000 American tax money subsidizes abroad—and controlled by Communists or by men like Tanganyika
6,300,000 that thousands of American workers have Sukarno of Indonesia who is, for all practical Thailand-676, 800,000 thus lost jobs.
purposes, a Communist: Algeria, Congo Togo--
2, 700,000 And none can show that our foreign aid (Léopoldville), Guinea, Indonesia, Laos. Tunisia---
372, 000, 000 programs have done any good for the United All Afro-Asian nations are, like Burma and Uganda
1, 200,000 States. Ostensibly, the primary purpose of India, Socialist nations with political ideolUnited Arab Republic
684, 300, 000 our foreign aid is to fight communism. It ogies basically inimical to American conUpper Volta---2,000,000 has done the opposite.
stitutional ideals; and most of them have Vietnam..
2, 214, 200,000 Look at the list of nations receiving our revealed a deep hostility toward the United Yemen.-
25, 900, 000 aid and determine which, if any, are now States. Yet, the European nations which Africa, general.
22, 300,000 stancher friends of America, or sterner foes were once colonial powers in Africa and Asia, Asia, Far East.
427,800,000 of communism, than before our aid began resent us for the aid we gave to help destroy Asia, south---773, 500,000 You will not find one on the list.
their empires. We alienated the Netherlands by forcing All over the world, nations take our ecoTotal.--
28, 358, 600,000
them to surrender their East Indian posses- nomic aid, not to develop free enterprise U.S. contributions to world organizations
sions—which became the pro-Communist na- economies compatible with American consti
tion of Indonesia. In 1962, we deepened tutional principles, but to finance Socialist (1946-62)
the injury by our part in forcing the Nether- systems patterned after the Soviet Union. CENTO (Central Treaty Or
lands to surrender New Guinea to Indonesia. All over the world, nations accept our miliganization)--
Australia (which owes us no money) is tary aid, not to help defend the free world Export-Import Bank--- 7,000,000,000
disturbed and angry because of this New against communism, but to support their International Bank for Re
Guinea deal. Indonesia and the Philippines own tyranny over their own people and to construction and Develop
now berate us for supporting the new nation, strengthen themselves against their neighment-----
bors, who are also accepting our military aid International Monetary
Our State Department is responsible for as members of our free world alliance. Fund---
4, 125, 000, 000
converting Cuba into an enemy nation. In Our military aid to foreign nations puts International Finance Cor
forcing the downfall of Trujillo in the all of our allies into an armaments race with poration.--
Dominican Republic, we eliminated the last one another. We finance both sides, and International Development
strong friend we had in the Caribbean area. both sides resent us. Fund-----
320, 300, 000
We helped establish the pro-Communist govInter-American Development
How much freedom for the world, or ernment of Juan Bosch in the Dominican Bank-----450,000,000
friendship for ourselves, have we bought with Republic. This month, we refused to recInter-American Social Prog
$4.8 billion in aid to Communist nations ognize the anti-Communist group which ress Fund----394, 000, 000
since July 1946? The $500 million shown in overthrew Bosch.
the above tabulation for the Soviet Union United Nations; U.N. special
The alienation of France now seems com- is for World War II lend-lease delivered after ized agencies, special pro
plete. West Germany is outraged about our grams and funds--
July 1, 1946. Prior to 1946, we gave the so1, 717, 093, 000
wheat deal with the Soviets. Cambodia reUNRRA (United Nations
viets (in lend-lease during World War II) sents us because of arms we give to Thailand. Relief and Rehabilitation
$11.1 billion in aid. Thailand resents us because of arms we give Administration) ---- 3,400,000,000
In this connection, it is instructive to to Cambodia. Pakistan resents us because
look at the total picture of American foreign of aid we give to India. India resents us Total--18, 101, 561, 000
aid. The figures tabulated above are for the because of aid we give to Pakistan.
period since July 1, 1946. Prior to that, we Résumé We alienated Portugal by our United Na
had already given away $58.9 billion in aid Foreign aid appropriated tions stand regarding Portuguese Angola in
to foreign nations. but unspent as of June Africa; and we alienated South Africa (which
The net amount of foreign aid which the 30, 1962$8,000,000,000 owes us no money) by criticizing her in
United States has given to foreign nations Foreign aid appropriated ternal policies.
since our involvement in the First World for fiscal fiscal year ending The dastardly United Nations rape of
War is $207,434,234,867. Australia, Canada, June 30, 1963 (break
Katanga—which we financed and supported New Zealand, and South Africa areas far downs not yet available) - 6, 433,962, 000 without stint-not only eliminated Katanga
as I have been able to determine the only Grand total, U.S. aid to all
as a friend of America but apparently caused nations on earth who do not owe money to nations and world orgahatred of us throughout Africa. United Na
the United States. Here are the 15 nations nizations, July 1, 1946, tions forces bombed hospitals, homes, in
which have received the most from us (the through June 30, 1963--- 148, 456, 333, 000
dustrial plants, and schools. United Nations figures include unpaid World War I debts,
troops (which included uncivilized Ghurkas Mr. THURMOND. Mr. Smoot goes on
net amounts of lend lease received during from India and savage tribesmen from
World War II, and net amounts of foreign to say: Ethiopia) committed atrocities against
aid received from July 1, 1946, through June The $148.5 billion which our Government women, children, missionaries, doctors, and
30, 1962): other civilians. Meanwhile, has taken from taxpayers and given
Amount troops-drawing their pay at the expense of away abroad since 1946 is $46.7 billion more American taxpayers—roamed the country in
United Kingdom.. than the total assessed valuation of all prop
$45, 003, 414, 301 lawless, drunken bands, raping, killing, and
19, 998, 967, 994 erty (including land) in the 50 largest cities pillaging
12, 351, 952, 530 of the United States.
In Peru, there is hurt and bewilderment Foreign aid since 1946 has cost individual
9, 673, 447, 659
Germany on the part of intelligent, middle-class Peru
7, 576, 900,000 taxpayers an average of $1,537 each, and has vians at our failure to give full recognition
6, 146, 800,000 cost corporation taxpayers an average of
Korea--to the anti-Communist group which seized
6, 143, 000, 000 $25,828 each. Since all corporation taxes power there.
China (Nationalist) must necessarily be passed on to consumers
6, 125, 232, 000 Brazil (largest recipient of our aid in South
5, 208, 300,000 in price of goods, the total burden of our
4, 064, 320, 815 Government's foreign giveaway actually falls pro-Communists, and so are Bolivia, Uru
3, 741, 400, 000 on individual Americans. guay, and Venezuela. Argentina, second
3, 512, 894, 000 None can deny the harsh fact that this largest beneficiary of our aid in South Amer
3, 366, 329, 843 giveaway has brought us to the edge of ecoica, is so wildly unstable that a Communist
2,865, 464, 000 nomic ruin, saddling our citizens and their coup is possible at any time. Indeed, Ken
2, 683, 700, 000 posterity with a debt exceeding the combined
nedy's foreign aid program for Latin Amerindebtedness of all other nations on earth, ica (Alliance for Progress) is preparing that
137, 462, 123, 142 and putting us at the mercy of the very na
whole region for communism. tions which have received our bounty. None Iceland is pro-Communist, strongly anti- of the Reader's Digest contained a very
Mr. President, the August 1963 issue can deny that American tax money has built United States. Israel, a socialist nation foreign industries which now undersell our which has received vast sums of American revealing story entitled “Let's Stop Sendown—and that the American industries are money, is training, armies for the Commu- ing U.S. Dollars to Aid Our Enemies," by still being taxed to subsidize foreign compet- nist dictator of Ghana. Italy contains the Charles Stevenson. I have previously
had this article printed in the CONGRES- tacks on a major tool of our foreign man resources which are necessary preSIONAL RECORD. However, I believe that policy, and one that has served this coun- cursors to meaningful economic developa brief résumé of some of the points try well. This is the meaning of the re- ment-education and the like; and brought out would be worthwhile at this strictive amendments proposed to the Fourth, that we consider providing the time. Mr. Stevenson quotes Congress- pending measure, and the mass confu- President wtih a much larger continman OTTO E. PASSMAN, chairman of the sion they have created.
gency fund to act with maximum effect House Foreign Aid Appropriations Sub- Perhaps a major review of our foreign in critical situations. committee, as follows:
aid program is underway in the execu- The Senator's suggestions deserve our The trouble is that too much of our foreign tive branch–I do not know. In any attention in the months ahead, Mr. aid has deteriorated into a subsidy of Com- case, such a review is needed—before the President, and the attention of all Amermunist takeover. And the spenders are so next session of Congress. It will help icans. He offers some worthy suggespower hungry, they so withhold the truth clear the air, and renew public confidence tions.
tions. I stake no claim on being an exfrom the public, they are so beyond the nor
in a major program. I urge the Presi- pert in foreign affairs, but there are at mal controls of Congress, that there seems
dent to give this matter his urgent atten- least two additional areas I would add no way to confine assistance to helping people help themselves unless we kill the entire tion. He would be well advised, I believe, to his list of suggestions. operation and begin over. to recall the Clay Committee to serve as
First, a very real and concerted efa focal point of such a review, with a
fort must be made to coordinate free Mr. Stevenson goes on to say:
mandate to seek further findings and world aid programs and to increase the Simply reducing appropriations won't cure recommendations early in 1964.
aid contributions of our allies. We need what's wrong with an aid organization which It is true that in the last couple of
more concrete results in this area. is in more trouble than ever after going years, the administration has taken a through 10 different administrators, 5 major number of initiatives to put our aid pro- eign aid must receive greater attention,
Second. Regional approaches to forreorganizations and more than 100 billion tax dollars.
gram on a firmer footing. Some splen-
Alli- In southeast Asia, for example, this could As an example, this article points out ance for Progress is a foremost example. possibly be done through a revived
Asia Treaty Organization. that the foreign aid authorities have not But some of these efforts, and their Serious consideration should be given by been able to spend as much money as positive results, have gone largely un: the Allied Powers to a broadening and they have been given in any year since
A in 1958. There is an accumulation of funds
is the very sensitive and highly impor- redefining of SEATO's terms of refercarried over from year to year to such an
ence. SEATO is now an exclusively antant plan to make economic reform a extent that the failure of Congress to
ti-Communist alliance. It would seem condition of U.S. aida plan, Mr. Prespass an authorization bill would probably
to me, however, that SEATO would be ident, that is beginning to bite.
serving free world interests even more, not effectively restrain the level of for- Some efforts have been taken out of if it were capable of insuring the politieign aid spending. context and misinterpreted. The Clay
cal stability and economic progress of Our foreign aid money in all parts of report, for example, has been falsely the world is being used to finance Gov. used by the opponents of foreign aid in
the entire area, including the new ernment-owned and controlled, socialis- their efforts to reduce drastically the Malaysia and against subversion from tic enterprises which in many cases com- current programmuch to the chagrin
any quarter. pete with private businesses. of General Clay. I need only call Sen
Broadening SEATO's terms of referArticles of this nature are causing the ators' attention to a recent article by ence, and injecting into it a little of the American public to realize the fallacy the general, which I will ask unani
Alliance for Progress concept or an underlying our foreign aid program. I mous consent to have inserted in the inter-Allied basis—is a tall order. But believe that this large-scale public under- RECORD at the conclusion of my remarks. it is an avenue of approach which needs, standing is beneficial and will result in Other efforts of the administration, I believe, some thoughtful consideramore serious misgivings about this pro- Mr. President, have been lost in the flurry tion-for southeast Asia and other areas gram on the part of the Members of Con- of debate riveted on the failures and
as well. gress. I cannot support the pending shortcomings of our aid policy. Still Mr. President, I trust the administraforeign aid authorization bill and will others have been smothered by the "pet- tion will undertake a systematic review express my opposition to any such future ty irritations” President Kennedy men
of our entire foreign aid program in line proposals until such time as the needed tioned in a speech a few days ago.
with the long-term strategic interests of reforms are undertaken.
Perhaps this situation was inevitable, this country. It should present recomA SYSTEMATIC REVIEW OF FOREIGN AID NEEDED
inasmuch as these efforts often reflected mendations to Congress early in the next Mr. HART. Mr. President, yesterday
a brush-fire approach to our aid prob- session. The American people would President Kennedy called the opposition
lems. They were often quick improvisa- welcome this review.
tions and piecemeal measures. They Congress must still complete action on to his foreign aid program the worst attack since the Marshall plan. Certain
were often defensive in tone. But what the pending program. I was hopeful ly the debate these last couple of weeks
ever the reason, a total reexamination is the end result would not digress radi
now due. has put on the line some very urgent
cally, at least from that proposed by the matters. We need better guidelines in
Mr. President, the distinguished chair- Foreign Relations Committee. But this the program. We apparently need a new
man of the Foreign Relations Committee, does not seem to be the will of Congress. framework for allocating and expending
the junior Senator from Arkansas, point- Certainly, we need some new direc
ed the way to a reexamination of the tions in the foreign aid program. We the taxpayers' money. We need a clearer set of priorities. We need more con
foreign aid program on October 28. I need a reexamination. That is why I centrated effort in particular areas.
commend the Senator for his thoughtful propose, most urgently, a systematic
We need more integrated thinking on the
remarks. He speaks from experience review. Meanwhile, in further considerrole of foreign aid in the overall pattern myself with the general tenor of his well to weigh our criticisms against the
and with authority. I wish to associate ing the pending program, we would do of American foreign policy, and our longterm strategic interests.
positive value being accomplished for comments. As I recall the Senator's re
We need more effort to relate foreign aid to other tools marks, he offered four suggestions:
our security because of the aid program of our foreign policy, and to the political
First, that we seriously consider sep- and in spite of its shortcomings. The objectives of the free world. We need a arating the military component of the scales are heavily weighted on the value
side. greater interallied effort.
foreign aid program from the economic
And is it not a paradox, Mr. President, In short, Mr. President, we need a
Second, that we consider reducing our that at a time when the Communist major and total review of our foreign
bilateral development loan program, and bloc is experiencing difficulties in its aid program in the light of present world look increasingly to international finan- domestic and foreign programs, includconditions, and our best estimate of cur- cial institutions for the provision of ing that of foreign aid, the bulk of this rent and future international trends. capital loans;
country's attention is riveted upon the This is the nub of today's situation. Third, that we consider giving priority failures and shortcomings of our proThis is the meaning of the reckless at- attention to the development of the hu- gram, rather than on the opportunities opening up for America, and on the pos- countries will not be able to realize the goals In making this recommendation, the comsibilities of making foreign aid of even
essential to maximum support by the United mittee endorsed the views of Eugene Black, greater value to our security in the years
States, many of them are making real prog- former World Bank President. He believes ahead?
ress. While only those funds justified by World Bank officials could exercise more in
this progress will actually be made available, Hopefully, the problems in our foreign it would seem to me that the United States
fluence over the use of a loan because they
would not be suspected of ulterior motives. aid program, and those in our relation- must be in a position to sustain its com- World Bank officials also could be more inship to the undeveloped countries, will mitments to the full extent that would re- sistent on sound terms and could make their not repel us back toward isolationism. sult if Latin American performance were lending conditional upon greater efforts by I do not believe we have lost our crea- satisfactory.
the recipient country itself. tive instincts. Let us put on our think
A failure to authorize the appropriation The committee itself felt that the shift
of funds which would meet this commitment ing caps. Let us solve our problems.
from bilateral to multilateral lending would Let us seize the opportunities before us, lack of sincerity. Moreover, if the reducwould be taken by many as evidence of our
tend to put a greater burden of foreign aid and get on with the task at hand. The
financing on Western European countries. tion stands, fewer funds would be available
They have been spending more for foreign security of our country, and that of freethis year than were appropriated last year
aid, but their $2-billion-a-year total still is dom everywhere, requires no less.
when the Alliance was moving less rapidly well below their capacity, in the committee's Mr. President, I ask unanimous con- than it is today. Certainly, political sta
view. sent to include at this point in the REC- bility on this continent is highly desirable,
Despite its criticism of present foreign ORD the statement of General Clay which and such stability can develop only to an at
aid loan practices, the committee recommosphere of economic improvement. If the appeared in the Grand Rapids Press on
mended a $4.2 billion foreign aid authorizaAlliance for Progress does not provide this October 13, 1963. I also ask unanimous atmosphere, I know of no other way to pro
tion for the current year. That compares consent to include an editorial from the
with the $3.5 billion authorization voted by ceed, and it seems to me that it justifies
the House and the $4.5 billion asked by the Detroit News—October 28, 1963—on our full support as long as it holds promise.
President. The authorization, when finally making greater use of the international I also believe that the House has made much too sharp a reduction in the military ceiling, and the appropriation bill still will
passed by both Houses, will serve only as a financial institutions for economic development. assistance program to be accomplished in
have to be passed. There being no objection, the state
1 year without encouraging damaging re-
Since the Government already is almost 4 ment and editorial were ordered to be Certainly, our policy of supporting the de
months into the current fiscal year, the comprinted in the RECORD, as follows: fense establishments of free nations adja
mittee's recommendation for the internacent to Communist countries has prevented
tionalization of foreign aid loans may have [From the Grand Rapids Press, Oct. 13,
come too late for action at the current ses1963
the political penetration which was so suc-
sion of Congress. But it is a good recomCLAY OPPOSES AID CUTS-SEES DANGER FOR ern Europe. It is also clear that the defense
mendation that ought to be implemented FREE WORLD IN HOUSE ACTION establishments in many of these countries
as soon as Congress can get to it. (EDITOR'S NOTE.-The Committee
OIL CONTRACT NULLIFICATION
Mr. MONRONEY. Mr. President, on sible-over several years. Immediate forced tions on U.S. foreign aid, based on an inreductions could require rapid deteriora
Wednesday, my distinguished colleague tensive study of the question. But the tion in military forces with consequent po
from Iowa (Mr. HICKENLOOPER] spoke to House ignored the committee's suggestions litical disturbances in several of the coun
us at length on the attitude of the Argenand made drastic cuts in the proposed budg
tries now receiving military aid from the tina Government toward foreign oil comet. Gen. Lucius D. Clay, chairman of the
United States. In point of fact, we might panies, and outlined to us the manner in committee, here explains some of the dan
well reduce the resources of our own de- which his amendment to the Foreign Asgers he sees in the House action.) fense budget rather than to discontinue or
sistance Act is being strengthened in this (By Lucius D. Clay) to sharply reduce the support which makes
year's bill. Our Committee To Strengthen the Secu
possible the contribution of the foreign milirity of the Free World, in its comprehentary forces to the security of the free world.
I spoke at that time to indicate my sive examination of the aid program earlier
Thus, and particularly in these specific support of the additional language to
programs, I believe the cuts enacted by the make sure that assistance is suspended this year, found in the words of our report
House to be excessive. If allowed to stand, what every American President has found
in cases of what has been called creepsince the program was first started: that a the damage they would cause would have
ing expropriation. My colleagues from sound foreign aid program "is essential to its effect on future years, even if not im
the Foreign Relations Committee made the security of our Nation and necessary mediately apparent. The Senate has, of
it clear that the law we are considering to the exercise of its worldwide responsi
course, not yet acted on the authorization
will cover the Argentine oil contract nulbilities.”
eign Relations as yet reported to the Senate. lification case, if nullification is carried In the belief that it would contribute to the continuance of the program on a sound
However, there is not much time left to out, to suspend foreign aid and other basis, our report did recommend certain re
consider carefully the extent of this year's funds. ductions which we thought would improve program and to be sure that it represents a
The Senator from Iowa, who has made sound and balanced contribution to our naits effectiveness while reducing its cost.
a great contribution in his study of this However, the report stressed the importance tional security and to the execution of our
subject, assured the Senate, in answer of these cuts being made over a period of
foreign policy. False charges, valid critiseveral years to avoid drastic consequences cism, and general indifference may have ob
to my questions, that the amendment apscured, and even overshadowed,
an and cancellation of commitments entered
plies for the Alliance for Progress as it into in good faith.
appreciation of the value of our foreign aid does to other AID programs. By and large, the recommendations which
program. It can be carefully and gradually Interest in our action here is evident we had made were closely paralleled by many reduced, barring extraordinary develop
among citizens all over the country. The ments. Nevertheless, real progress is being in the report of the House Foreign Affairs
Tulsa World, in Tulsa, Okla., carried an Committee to the full House of Representamade both in improving the administration
excellent editorial in its November 12 editives. Indeed, this committee made some
of the program and in directing funds to
tion on this subject of Argentine attiwhat greater cuts than were embodied in
return. This is the proper way to improve tudes toward foreign oil companies, and our suggestions. Nevertheless, its considered recommendation for an authorization of $4.1
our foreign aid program rather than to take urged us to revise last year's amendment.
the risks involved in too great a cut in 1 billion, which was in itself $400 million below the President's request, was slashed by
year—a cut which might well negate really I am glad to be able to inform them that successful efforts in many parts of the world.
the bill this year is even stronger than we $585 million to $3.5 billion on the House
passed previously. I ask unanimous confloor.
[From the Detroit News, Oct. 28, 1963] sent that the editorial be printed in the I believe that the larger cut is a threat to
SHIFT IN AID URGED
RECORD. vital U.S. interests abroad, and I am disturbed in particular by the reductions in the Even their best friend in Congress is now There being no objection, the editorial Alliance for Progress and for the military telling foreign aid administrators what is was ordered to be printed in the RECORD, assistance program. wrong with their programs.
as follows: In proposing the Alliance for Progress, the Foreign aid's best friend has been the United States undertook solemn commit- Senate Foreign Relations Committee, which
FALSE PRIDE IN ARGENTINA ments in the Charter of Punta del Este to now has recommended that loans for eco- Most Americans north of the border find provide external support to the self-help ef- nomic development be made by inter- it hard to understand the attitude of the forts of the Latin American countries. While national agencies such as the World Bank Government of Argentina headed by Presiit is likely that some of the Latin American rather than by the U.S. Government alone. dent Arturo Illia.
The Illia regime seems determined to can- mittee on Banking and Currency, room
the President to conduct our foreign cel its contracts with all foreign oil com
5300 New Senate Office Building, Wash- policy. panies in Argentina. The action would di
ington, D.C., telephone number Capitol I deplore also the action of the Senrectly affect a number of U.S. firms with an investment estimated at $397 million,
4-3121, extension 3921, as soon as pos- ate—and, indeed, the action of the leadThe Government promises to protect lesible.
ership-in cutting back from $4,200 milgitimate rights, but Argentina will determine Mr. President, I have admiration, lion to hardly more than $3,500 million what those rights are. The oil companies fondness, and respect for the Senate the authorization in the bill. can hardly be reassured by this kind of leaders. They are two splendid men
I should like to have had an opporpledge.
the Senator from Montana [Mr. MANS- tunity to vote for the original figure of Illia states no specific objections to the
FIELD] and the Senator from Illinois (Mr. $4.2 billion proposed by the Foreign Relacontracts. But he ran for office on a promise to annul them, and he is apparently going to
DIRKSEN). When they united in calling tions Committee. I regret that I had no keep his word, regardless of the international
me today to ask whether I would coop- such opportunity. That does not mean consequences.
erate with them in having prompt hear that I do not think that in due course The stakes in Argentina go far beyond the ings on a bill that embodied the Mundt
ings on a bill that embodied the Mundt we should taper off the program. interests of the oil companies. The U.S. basic amendment, which I fully supported, and I am opposed to military aid for Latin concept in the 20-nation Alliance for Prog
asked our committee to report back to America. I am opposed to military aid ress is clearly involved.
the Senate on November 25, and gave for NATO allies who can well support One of the main goals of the Alliance is
assurances that if the bill were reported their own situation. to encourage private investment in the Latin
to the Senate on the 25th it would be I wonder why we did not have the American countries, where the flow of American aid is intended to stimulate the local given priority. I agreed to do so. Hence courage to cut back aid to Chiang economy. All the Latin countries need for- my announcement.
Kai-shek. I wonder why we did not have eign capital, and that certainly includes Ar- But, Mr. President, in my opinion the the courage to take some of the aid out gentina, a nation that has complained in the
bill embodies a very important principle. of South Korea. Those are the places past it was not getting American aid fast We have been giving aid to 107 nations
we should be looking into. Instead of enough. in the world.
that, we do it by indirection. We cut What kind of effect can the Illia government expect its oil contract annulment to
The bill that the Senate will shortly aid back to some of our friends with the have on present and potential investors in pass contains a prohibition against any thought that the only way the PresiArgentina? The answer is obvious; the ac- aid going to any Communist country, dent can find the money to give them tion is bound to throw a chill over any plans except for a hospital in Poland and the what they need is to take it away from to bring private money into the country. Public Law 480 program in Poland and some of the areas in which we should The United States does not approve of the Yugoslavia.
have the political courage to stand up Argentine Government's attitude, but Under Secretary of State Averell Harriman doesn't
The Mundt amendment proposed that and say, “You do not need it there." seem able to change Illia's mind. So what we should not give aid to Communist
Mr. President, I shall support the bill do we do about it?
countries that wished to buy on credit with a fairly heavy heart. I hope that We suggest that one place to start showing through the Export-Import Bank. That by next year the administration will have U.S. displeasure is Alliance for Progress is what the bill s. 2310 is about. It is found a formula by which this great and funds. Why should our Government cona vital bill.
generous country can pay an infinitely tinue to spend Alliance funds in behalf of a country that is summarily undermining
I expect all members of the Committee small percentage of its gross national American investments?
on Banking and Currency to be present product to countries less fortunate than The principal purpose of the Alliance is on November 25 so that we can legally
we are, to countries in need, to countries not to protect the chestnuts of private act on the bill and report it either favor- that we hope to save from the yoke of American companies. But neither is our
communism. My hope is that can be ably or unfavorably. I welcome this communism. Government obliged to pour tax money into opportunity to commend our majority worked out. I also hope the conference countries that are long on accepting the and minority leaders.
will show more wisdom than, in my judgbenefits of the Alliance but mighty short on assuming its obligations. Mr. CLARK. Mr. President, I shall ment, was shown by the Senate.
I shall vote for the bill. The Latin Americans are proud people. detain the Senate no more than a very
Mr. HUMPHREY. Mr. President, I Understandably, they do not like the role few minutes. I have hitherto remained of beggars; they want some say-so in how silent while the debate went forward on
shall be brief. Let me point out that in foreign aid money is spent in their countries. the bill. I wish to make a brief record
the final moments of consideration of But the United States has some feelings, of my position. I shall vote for the bill,
of my position. I shall vote for the bill, this bill we find ourselves in a most too. For one thing, we object to anyone who
which I fear has been badly crippled by paradoxical and ironic situation. I beaccepts our friendly aid money and responds
the Senate. Many amendments with lieve that in Mr. David Bell we have as by kicking us in the teeth. If we continue to shell out in the face of
which I find myself in accord in prin- able an administrator of the foreign aid such ungracious conduct, will not the other
program as any we have ever had. As ciple have been adopted. I believe we Alliance countries feel free to do the same? should look hard and long before we
administrator, he presides over the proLast year an effort was made in Congress
give another dollar of aid to Nasser. І gram at a time when it is receiving its to tie a little “if” to the foreign aid program, think we should look hard and long be
most bitter and severe criticism. holding back aid from countries that reached fore we give another dollar of aid to The program was reorganized in 1961 out to gobble up U.S. investments. Maybe Sukarno. But I fear that in the strait- at the behest of President Kennedy. Folit's time to revive that amendment.
jacket in which a number of the amend- lowing the enactment of the 1961 foreign ANNOUNCEMENT OF MEETING OF THE COM- ments have placed the President it will aid program, a new effort was made for
MITTEE ON BANKING AND CURRENCY ON be difficult indeed for him to have the the recruitment of new personnel-exNOVEMBER 20
flexibility needed to conduct our day-to-perienced and knowledgeable adminis
Mr. President, I day foreign policy as the Constitution trators, assistant administrators and wish to announce that the Committee on intended that he should.
mission chiefs. I should like to go on Banking and Currency will hold hear- I believe it is the right of the Senate record as saying it is my conviction, after ings, in accordance with
with the recent to lay down broad legislative mandates careful on-the-spot examination, in unanimous-consent agreement, on the in the field of foreign policy. Indeed, country after country, that we have dedibill s. 2310, introduced by the Senator that was contemplated by the Constitu- cated, able, and conscientious people in from South Dakota (Mr. MUNDT] to pro- tion. I therefore have no quarrel with
tion. I therefore have no quarrel with the AID program to a degree such as we hibit any guarantee by the Export-Im- many of the new indications of policy have never had since the days of the port Bank on any other agency of the which appear in the bill. In fact, I sup- Marshall plan. Government of payment of obligations port most of them.
port most of them. I say again, as I Mr. President, I am pleased with one of Communist countries. These hear- said last night, that I deplore the effort development in the debate on foreign aid. ings will be held in room 5302, New Sen- of so many of us to be our own little We have strengthened the role of private ate Office Building, beginning at 10 a.m., individual secretaries of state and im- enterprise in the foreign aid program. on Wednesday, November 20, 1963. pinge on the right of the President and This was long overdue. We have invited persons who wish to appear and testify the Secretary of State to conduct for
the Secretary of State to conduct for- into the oversea economic and technical on this matter are requested to notify eign policy day by day, and to write in assistance program the real muscle, the Mr. Matthew Hale, chief of staff, Com- inflexible restrictions on the power of real strength, the real know-how of America, which is the private enterprise POINT 4 TYPE GRANTS AND LOANS FOR HEALTH cutting down its point 4 type health perfree economy system. For this we are In the 1963 fiscal year, the Agency for sonnel from 372 technicians to 334 in indebted to many Senators, who have International Development spent around the 1964 fiscal year. This means, for been critical of the bill but who have $36 million in grants for health; in the example, fewer sanitary engineers to offered constructive amendments.
1964 fiscal year, it will have spent around supervise the loans for sanitary projects, I was happy to join with some of those $45 million for point 4 type health assist- This cut is, very candidly, neither Senators in aiding the adoption of those
good economics nor good health pracamendments.
In addition, during these 2 fiscal years, tice. Water and sewer projects do not We find ourselves in another paradoxi- AID health loans for public water and get built well or function well if concal situation—at the time this country is sewerage projects were and are $95 mil- struction and operation are not propapproaching a $600 billion a year econlion and $112 million, respectively.
erly supervised by competent people, omy, we are retreating, and retrenching HEALTH AID IS RELATIVELY NONCONTROVERSIAL
right on the scene. in our oversea commitments.
I hope, therefore, that AID will see This is money well spent. Probably no
its way clear toward sending not only This is the smallest foreign aid
foreign aid single item in the entire multibillion-dolauthorization ever adopted by the Senate lar aid program is more universally
adequate money, but adequate numbers
of well-trained men and women to since 1948. At the time our gross na- esteemed and less controversial than aid tional product is the largest, at the time against mankind's ancient foes of disease supervise and to work on health projthat we have the greatest commitments and disability.
ects, in cooperation with indigenous
health teams. in the world, at the time we are begin- At this very time in Chicago, Ill., a secning to see some signs of victory for the ond conference on international health
DISTURBING SLASH IN LATIN AMERICA side of freedom, we are retrenching. is being held under the auspices of the I should like to say further that the We retrench at the time the Soviet American Medical
Medical Association. The figures which I have quoted earlier are Union and its satellites find themselves American Medical Association had kind- worldwide estimates. in difficulty, economically and politically. ly invited me to this important meeting, In one particular region the estimates, It seems to me that what we should be but Senate duties, of course, prevented when broken down, prove actually disdoing is pouring on the coal, so to speak, my being there.
turbing. In Latin America, of all places, redoubling our efforts, harnessing our re- The conference signifies, however, the the one region where U.S. interest is sources, and making up our minds that deep, nonpartisan interest of the medical paramount, the number of point 4 type we have a great opportunity. and of allied professions—nursing, den- health assistance
assistance projects is Mr. President, I know reforms are tistry, pharmacy, sanitary engineering, slashed from 101 in the 1963 fiscal year necessary. Some of those reforms have and so forth—in oversea health assist to only 43 in the 1964 fiscal year. This been outlined in the committee report. ance.
slash cannot be justified, in my view. I am going to file for the RECORD a state
It seems to represent the views of
CAPITAL RESOURCES AND HUMAN RESOURCES ment as to what I believe would be con
Year after year, I have urged that in- with monumental engineering projects
economists who are more concerned structive reforms in foreign aid—not creased attention be paid to all forms of for tomorrow than with the plight of reforms that will diminish our effort, but technical assistance to education, to ag- human beings, living today. reforms that will accelerate and inten- riculture, and health. sify our effort. One of those reforms,
The needs of tomorrow must certainly which I believe is vital, relates to the been a tendency-I must say very frank
Year after year, however, there has be attended to, but people are sick today, matter of bringing in other nations to ly—to keep assistance for human re
are dying today, and need medical assisthelp us provide economic assistance to
ance today. These people are interested sources relatively low and to maximize in what their government and our Govhelp underdeveloped areas, by using the assistance for capital resources. contract form with private groups and
ernment are doing for them and for their
Economists, particularly, tend to think children now-not just tomorrow. with the established Government agen- that foreign aid can best launch developcies, which we call the domestic agencies ing countries into self-sustaining growth AID on the difficult problem of allocation
I can well understand the thinking of of our Government.
by sponsoring such "brick and mortar” of relatively limited resources. Mr. President, I hope Senators have projects as new roads, powerplants, steelread the morning press. Despite 3 or 4 mills, other forms of factories, and the
DANGER IN HOUSE SLASH OF OVERALL FUNDS days of really disturbing news from like.
I point out, too, that if the House's Brazil, we now find that the program
There is no question but that, from an unfortunate slash in AID funds is not which our Government supports has won economic standpoint, gross 'national altered in conference, the reduction in the overwhelming support of our Latin product can indeed be most spectacularly health aid will become even more severe. American neighbors. increased by aid for capital-type proj
I hope and believe that this will not The bad news that claimed the head- ects of this nature.
occur. I earnestly ask our colleagues in lines for a week are in the ashcan.
From a human standpoint, however, the House to give their most thoughtful America's proposal—the proposal of
proposal of we cannot afford to lose sight of the review to this problem. President Kennedy—at the São Paulo importance of aid to the human beings NEED FOR PUBLIC HEALTH SERVICE COLLABORAConference for an overall supervisory who are now living and who, in so many
TION WITH AID committee has been adopted, Brazil and instances, are now suffering and dying. There is one further phase of oversea Argentina to the contrary notwithstand- A careful balance is necessary, there- health aid to which I should like to reing. These are things that we said fore, between aid for capital improve- fer. would happen, and I believe we should ments which do generate national in- It is a phase on which the Senate Govlet this vote on foreign aid be an expres- come and aid for human beings who are, ernment Operations Subcommittee, of sion of our confidence in our program. after all, a nation's most important which I am chairman, has particularly TECHNICAL ASSISTANCE FOR HEALTH IN THE asset.
specialized. I refer to interagency coMUTUAL SECURITY AUTHORIZATION BILL FOR Certainly, capital loans for clean ordination. 1964 water and for sound disposal of waste
Ever since 1958, this Subcommittee on Mr. President, I should like to express represent a good blend of economic hu- Reorganization and International Ora few words with respect to one of the man aid.
ganizations has insisted on closer cotechnical assistance programs which is I am delighted, therefore, that AID ordination
between the foreign aid authorized in the foreign aid bill.
is supporting more water and sewer pro- agency—that is AID—and the so-called I refer to a program in which I have grams in the interest of combating the domestic agency which has the foremost been especially interested down through infectious diseases which are bred by un- technical competence in the health the years--technical assistance for sanitary conditions.
field—the U.S. Public Health Service. health,
REGRETTABLE CUT IN NUMBER OF HEALTH Although this idea seems relatively The actual dollar outlay for this pur
simple, although it has always been acpose represents only a tiny proportion It is a curious fact, however, that at cepted, at least in theory, because it is so of the total funds in the bill pending be- the very time that AID is soundly in- unassailable, in point of fact, it has fore us.
creasing its water-sewer loans, it is never been adequately implemented.