VIETNAM--FRENCH VIEW ABOUT THE WEST'S PRESENT POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200160040-7
• Release Decision: RIFPUB
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• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: December 29, 2004
• Sequence Number: 40
• Publication Date: August 10, 1964
• Content Type: OPEN

1964
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CONGRESSIONAL RECORD - SENATE 18209
"The net effect of the Court's decision is, of
course, to insulate from effective legislation
the time-proven skills of the Communist
Party in subverting and eventually control-
ling legitimate organizations. Until such a
group, chosen as an object of Communist
Party action, has been effectively reduced to
vassalage, legislative bodies may seek no in-
formation from the organization under at-
tack by duty-bound Communists. When the
job has been done and the legislative com-
mittee can prove it, it then has the hollow
privilege of recording another victory for the
Communist Party, which both Congress and
this Court have found to be an organization
under the direction of a foreign power, dedi-
cated to the overthrow of the Government
if necessary by force and violence."
Item. I will close the list with the repeated
charge that the due process clause of the
14th amendment as applied by the Court
consists only of the "evanescent standards"
of each judge's notions of "natural law."
The charge is most strongly supported by the
opinions of Mr. Justice Black in Adamson
V. California 13 and Rochin v. California, 14 to
which I commend you.
I close the catalog not because it is ex-
hausted, These constitute but a small part
of Brutus' indictment and an even smaller
proportion of the witnesses prepared to tes-
tify to the Court's grasp for power. These
witnesses are impressive, however, for they
are not enemies of the Court but part of it.
Moreover, their depositions may be garnered
simply by thumbing the pages of the recent
volumes of the U.S. Reports, which is exactly
the way that my partial catalog was created.
Let me make clear that this testimony
does not prove Caesar's guilt,-but only dem-
onstrates that these charges cannot be dis-
missed out of hand. The fact that they are
endorsed by such irresponsible groups as
would support the proposed constitutional
amendment does not add to their validity.
But neither does such support invalidate
them,
What then of Antony's defenses of Caesar?
First is the proposition that our Caesar has
done no more than perform the duties with
which he is charged. We have it from no
less eminent an authority than Paul Freund
that the Court has not exceeded its func-
tions and he defines them thus: 11
"First of all, the Court has a responsibility
to maintain the constitutional order, the
distribution of public power and the limita-
tion on that power.
"A second great mission of the Court is
to maintain a common market of conti-
nental extent against State barriers or State
trade preferences.
"In the third place, there falls to the Court
a vital role in the preservation of an open
society, whose government is to remain both
responsive and responsible. Responsive gov-
ernment requires freedom of expression; re-
sponsible government demands fairness of
representation."
And so, Professor Freund suggests, the
Court has done no more than its duty and he
predicts that we shall be grateful to it: 14
"The future is not likely to bring a lessen-
ing of governmental intervention in our per-
sonal concerns. And as science advances into
outer and inner space-the far reaches of the
galaxy and the deep recesses of the mind-as
physical controls become possible over our
genetic and our psychic constitutions, we
may have reason to be thankful that some
limits are set by our legal constitution. We
may have reason to be grateful that we are
being equipped with legal controls, with de-
cent procedures, with access to the centers of
13 332 U.S. 46, 68 (1947).
14 342 U.S. 165, 174 (1952).
"Freund, The Supreme Court Under At-
tack, 25 U. Pitt. L. Rev. 1, 5-6 (1963).
18 Id., at 7.
decisionmaking, and participation in our
secular destiny, for our days and for the days
we shall not see." _
It is not clear to me that the second de-
fense is really different from the first. Here
we are met with the proposition that the
Court, politically the least responsible branch
of government, has proved itself to be morally
the most responsible. In short, the Court
has acted because the other branches of
government, State and National have failed
to act. And a parade of horribles would not
be imaginary that marched before us the
abuses that the community has rained on the
Negro; the evils of McCarthyism and the
continued restrictions on freedom of thought
committed by the National Legislature; the
refusal of the States and the Nation to make
it possible for the voices of the disenfran-
chised to be heard, either by preventing
groups from voting, or by mechanisms for
continued control of the legislature by the
politically'entrenched, including gerryman-
dering, and subordination of majority rule
by the filibuster and committee control of
Congress; the police tactics that violate the
most treasured rights of the human per-
sonality, police tactics that we have all con-
demned when exercised by the Nazis and the
Communists. This list, too, may be extended
almost to infinity. There can be little doubt
that the other branches of Government have
failed in meeting some of their essential
obligations to' provide constitutional govern-
ment.
The third defense is that which I have
labeled the defense of Caesar's will. It is put
most frankly and tersely by Prof. John Roche
in this way.l'
"As a participant in American society in
1963-somewhat removed from the abstract
world of democratic political theory-I am
delighted when the Supreme Court takes
action against bad policy on whatever con-
stitutional basis it can establish or invent.
In short, I accept Aristotle's dictum that
the essence of political tragedy is for the
good to be opposed in the name of the per-
fect. Thus, while I wish with Professors
Wechsler and Kurland, inter alios, that
Supreme Court Justices could proceed on
the same principles as British judges, it does
not unsettle or irritate me when they be-
have like Americans. Had I been a member
of the Court in 1954, I would unhesitatingly
have supported the constitutional death
sentence on racial segregation, even though
it seems to me that in a properly ordered
democratic society this should be a task for
the legislature. To paraphrase St. Augus-
tine, in this world one must take his breaks
where he finds them."
There then are the pleadings. I do not
pretend to a capacity to decide the case. It
certainly isn't ripe for summary judgment
or judgment on the pleadings. I am fear-
ful only that if the case goes to issue in this
manner, the result will be chaos whichever
side prevails. For, like Judge Learned Hand,
I am apprehensive that if nothing protects
our democracy and freedom except the bul-
warks that the Court can erect, we are
doomed to failure. Thus, I would answer
the question that purports to be mooted
today, whether the court-of-the-union
amendment should be promulgated, in the
words of that great judge: 18
"And so, to sum up, I believe that for by
far the greater part of their work it is a
condition upon the success of our system
that the judges should be independent; and I
do not believe that their independence
should be impaired because of their con-
stitutional function. But the price of this
11 Roche, The Expatriation Cases: "Breathes
There the Man With Soul So Dead?" 1963
Supreme Court Review, 325, 326 n. 4.
18 Hand, The Spirit of Liberty 164 (2d ed.
1963).
immunity, I insist, is that they should not
have the last word in those basic conflicts
of 'right and wrong--between those whose
endless jar justice resides.' You may ask
then what will become of the fundamental
principles of equity and fairplay which our
constitutions enshrine; and whether I seri-
ously believe that unsupported they will
serve merely as counsels of moderation. I
do not think that anyone can say what will
be left of those principles; I do not know
whether they will serve only as counsels;
but this much I think I do know-that a
society so riven that the spirit of moderation
is gone, no court can save; that a society
where that spirit flourishes, no court need
save; that in a society which evades its re-
sponsibility by thursting upon the courts
the nurture of that spirit, that spirit in the
end will perish."
I find then that I have come neither to
praise nor to bury Caesar. I should only
remind those who would destroy Caesar of
the self-destruction to which the noble
Brutus was brought; nor can the Antonys
among us-who would use Caesar for their
own ends-rejoice at his ultimate fate.
For Caesar himself, I should borrow the ad-
vice given Cromwell by Wolsey: "I charge
thee, fling away ambition: By that sin fell
the angels."
The PRESIDING OFFICER. Is there
further morning business? If not, morn-
ing business is closed.
AMENDMENT OF FOREIGN ASSIST-
ANCE ACT OF 1961
The PRESIDING OFFICER. Without
objection, the Chair lays before the
Senate the unfinished business, H.R.
11380.
The Senate resumed the consideration
of the bill (H.R. 11380) to amend fur-
ther the Foreign Assistance Act of 1961,
as amended, and for other purposes.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ment offered by the Senator from Oregon
[Mr. MORSE].
Mr. HUMPHREY. Mr. President, I
suggest the absence of a quorum.
The PRESIDING OFFICER. The
clerk will call the roll.
The legislative clerk proceeded to call
the roll.
Mr. HUMPHREY. Mr. President, I
ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without
objection, it is so ordered.
VIETNAM-FRENCH 6W W ABOUT
THE WEST'S PRESENT POLICY
Mr. MORSE. Mr. President, I ask
unanimous consent to have printed at
this point in the RECORD an article en-
titled "Too Late in Vietnam?" published
in the magazine the Economist for June
27, 1964. The article was written by a
French reporter. The article sets forth,
as the views of an eyewitness, what the
Senator from Oregon and the Senator
from Alaska [Mr. GRUENINGI have been
saying for 5 or 6 months on the floor of
the Senate concerning our activities in
South Vietnam. I hope senators will
read the article.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
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 18210
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CONGRESSIONAL RECORD -SENATE August 10
[From the Economist. June 27, 19641
INDOCHINA: Too LATE IN VIErNaM?
(The following article, from a French re-
porter on South Vietnam, gives a dissenting
French view about the West's present policy
there.)
The situation in South Vietnam is going
from bad to worse. General Khanh's regime
is in a parlous state. His government is not
in a position to win the war. Nor can it
wage peace, or administer the provinces or
inject a little life into the economy which is
in a disastrous condition.
The army's heart is not in the fight with
the Vietcong. It is ashamed of waging a
civil war, it is ridden with cliques and it
lives in a perpetual climate of suspected
coups d'etat. "Don't come home." a Viet-
namese army corps commander who is also
a member of the revolutionary committee
wrote recently to compatriots, living in
France, "I am staying on because I have a
large family to feed. but there's chaos every-
where."
A westerner visiting the countryside not
long ago was held up for half a day by a
Vietcong detachment. While he was walt-
ing, he was surprised to see several Govern-
ment soldiers walking casually and unarmed
through the village and asked his guards
why they did not arrest them. "They come
from [a local government outpost[. We have
given them permission to do their shopping
here," came the answer.
On another occasion, a French reporter
was out In the field with an artillery battery
that was advised by an American captain.
The two stopped to have a drink, and when
they came out of the hut were surprised to
see the column about to make off in an un-
expected direction. "We Janus just heard
there Is a strong Vietcong barrier on the
road," the Vietnamese commander explained,
"so we shall take another route." "But you
can attack and break It up with your guns,"
said the astonished reporter. "If he"-
designating the American officer with his
head-"wants to go, he is free to do so. But
this Is not our war," replied the Vietnamese
officer, climbing into his jeep and leading the
convoy off In the opposite direction from the
enemy.
There Is no limit to such stories. This
suggests that the leaders of the Vietnamese
army and the ministers In Saigon would be
well advised to look for opportunities to
negotiate apeace. Butthey are too fright-
ened of the Communists to dare. They fear
that they would be tricked and then liqui-
dated. The men now in opwer are haunted
by the memory of the purges the Vietminh
carried out in 1945 and 1946 among the
"bourgeois" parties allied with it. The sur-
vivors of the two ultranationalist parties, the
Dai-Viet (the greater Vietnam Party) and
the Vietnam Quoc Dam Dang (the Viet-
namese Kuomintang), who are at present,
though barely, represented In the govern-
ment, have neither forgotten nor forgiven
the Communists. An intelligent and civil-
ized Vietnamese diplomat told me recently:
"We are irrevocably against the Communists
as we were against Diem. We shall never
treat with them. If we did, we would - be
signing our death warrants. If the only
way out were to negotiate I would prefer to
leave Vietnam forever and take out French
naturalization papers."
The trouble, from the point of view of
these men, Is that today, after 20 years of
civil war, the majority of the population,
save for some of the middle class and the
Catholics, are so weary of strife, of police
rule and of economic stagnation that they
would be ready to endorse any regime, any
team, capable of bringing peace. Needless
to say, this does not favor General Khania
and his junta.
The best gage of popular feeling is the
attitude of the Buddhist clergy. They are
lending an Increasingly attentive ear to ad-
vocates of neutralism and critciaing more
and more bitterly the government's Inability
to produce peace. At the other extreme the
Catholics-the hard core of whom are the
refugees from Tonkin-are charging Gen-
eral Hhanh with doing too little to wage
the war. The hostility between the two
religious groups, with the memories of the
Diem regime's persecution of the Buddhists
still not healed, has again been reaching
critical proportions. Thus, recently, the
Vietnamese Catholic hierarchy has openly
defended Maj. Dang Sy, the Catholic and
"valiant anti-Communist warrior" who gave
the order to fire on the Buddhist demon-
strators at Hue on May 8, 1963.
In this situation the rebel movement, the
Liberation Front of South Vietnam, has
taken a very adroit line. It Insists It Is not
a communist movement and would be con-
tent for a neutralist "bourgeois" govern-
ment to be set up In Saigon. It says that
It Is not a North Vietnamese pawn; that it
means to respect the "autonomy" of the
south in relation to the "brothers" of the
north. It Is not even possible to say these
claims are false-only time can show that.
Meanwhile they serve to point the contrast
with the all too open American support for
General Khanh. Today, he enjoys the
backing neither of the Buddhists nor of
the famous "sects" that have stayed clear
of any commitments.
Probably a truly free vote would show
that the great majority of the Vietnamese
want two things-peace and Independence
both from the Americans and North Viet-
nam. But even then it would not be possible
to Ignore the problem posed by the libera-
tion front, with its roots stretching every-
where. Its cadres who are the most honest
and energetic In the country, and above all
its formidable army. The only question Is
whether it can be crushed-as the Ameri-
cans have so far vainly tried to do-or
tamed by being brought Into the open, in
political and parliamentary terms, with all
that that Implies, In particular In terms of
a socialist-run economy.
The more time passes, the harder It be-
comes to ignore this second possibility,
little as it cheers anyone in the West. The
Americans are trying to bolt the frontiers
and cut off northern aid. This Is what the
French did on the frontiers of Algeria, but
without success, because the conflict was
in the first place an internal one. To
threaten Peiping with reprisals is of no use
when the sources of the civil war lie in
South Vietnam Itself.
From numerous conversations with
leaders in North Vietnam and the libera-
tion front and from what has been learned
of their positions behind closed doors at
international communist meetings, this cor-
respondent is convinced that It would be an
error for the West to look for a solution in
Peiping. To deal with the Chinese as if
they were already the masters of Vietnam
would be to pull the rug from under the
feet of the Vietnamese in Hanoi and the
underground, who are strongly nationalist
in their outlook. The assent of Mr. Mao
Tse-tung would be necessary. But first
one must negotiate with the Vietnamese
themselves.
The fact Is that there are American
troops In South Vietnam today, but not
Chinese ones, and If the South Vietnamese
have no stomach for the fight with their
brothers in the Vietcong, it will be very
hard to screw them up to a more combative
spirit. Vietnamese affairs are, after all,
those of the Vietnamese more than of
America or China. The day General Khanh
wishes to deal with his communist com-
patriots he will not need a go-between: his
own brother is a high official in Hanoi con-
trolling North Vietnamese Industry. Most
of the families of this unhappy country are
similarly divided, with members on both
sides,
GERMANY AND EUROPE
The European world is composed of many
states of various character, whose differences,
whose exertions, whose mental competition
make up our civilization. 'Many of these
states are weak, but some are very strong.
If we allow the strong and powerful to prey
upon the small and feeble, our existing
civilization will be impaired, enfeebled, If
not destroyed-its stimulating varieties will
be killed and extirpated-a monotonous and
sluggish uniformity will soon pervade, de-
form, and degrade the whole. The rights of
the smaller states are not to be maintained
merely as barren rights; they are to be main-
tained for the same reason as liberty in gen-
eral, because they tend to promote move-
ment and variety, progress of thought, and
play of mind throughout the civilized world.
Equality Is the bane of states within; uni-
formity is the bane of states without-the
bane of the world at large. Some years ago
It would have been thought absurd to speak
of Germany as a large state whose force
could injure a smaller one. It was known
as what it to. an ill-knit, half-decomposed,
headless mass; and because It was useful for
ordinary and useful for combined action, it
was believed It would be incapable of spas-
modic and irritable misdeeds. But just be-
cause it is headless, it is active in what is
evil of a large territory---disunion; it has a
great powers have competed for the head-
ship; and a people, good In themselves, but
unskilled In politics, untempered by ex-
perience, uncalculating and unforeseeing, are
naturally tempted by the foolish flattery of
two courts which hope to win them by trying
to please them. Germany has the besetting
evil of a large territory-discussion; it has a
great curse to a civilized people-absolute
government; and yet it has the worst evils
of the most contracted community-it is now
ruled by a blast of popular Impulse, like a
petty town republic, whose people met in
the marketplace and voted offhand as their
own fancies dictated. Germany is not a
power to be indulged because she is divided;
she is rather to suspected and resisted on
that very account; for in her present state
her foreign affairs are guided by vying des-
pots outbidding each other for the favor of
the masses. She has the unscrupulousness
of despotism, and the impulsiveness of
democracy.
Mr. MORSE. Mr. President, in the
last paragraph of the article by the
French correspondent it Is pointed out
that the military dictator Khanh, whom
we are supporting in South Vietnam with
American blood as well as money to the
tune of $3.5 billion, has a brother who is
the director of all industry in North Viet-
nam.
For 5 or 6 months in my speeches I
have said that in South Vietnam we are
dealing with a civil war problem. The
Pentagon almost goes into a political
paralytic stroke when someone suggests
that we are involved in a civil war in
South Vietnam. But so we are and have
been from the beginning. As I said Sat-
urday, if we go into South Vietnam and
into North Vietnam, so far as the people
are concerned, we cannot tell the differ-
ence because they are all of one na-
tionality and race. But unfortunately
the people in North Vietnam have been
sucked in by communism. The people in
South Vietnam are being dominated by
a military dictatorship. The people in
North or South Vietnam do not know
what freedom is. As the Republican
Representative whom I quoted last week
wrote to me, the people of Vietnam would
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CONGRESSIONAL RECORD - SENATE 18211
not recognize democracy if they met it
on the streets of Saigon, for they have
never been allowed to enjoy it in either
North or South Vietnam.
AMENDMENT OF FOREIGN ASSIST-
ANCE ACT OF 1961
The Senate resumed the considera-
tion of the bill (H.R. 11380) to amend
further the Foreign Assistant Act of
1961, as amended, and for other pur-
poses.
A NEW LOOK AT FOREIGN AID
Mr. HUMP1HREY. Mr. President, we
are nearing both the halfway point in
the decade of development, and the end
of the current term of the incumbent
administration. This is an opportune
time for taking a new look at foreign aid
so that we may intelligently chart our
course for the years ahead.
For the foreign aid program, these
have been an eventful 4 years. Since
1960, support for foreign aid has sub-
stantially increased in the United States,
and the tempo of foreign aid activity
has been stepped up around the world.
Today, few question the need for a
strong, effective foreign aid program.
Both of our political parties have con-
tinued to support foreign aid, despite
disagreements about its size and content.
The 1964 Republican Party platform,
while suggesting revisions, recognizes
that foreign aid.is a vital national pro-
gram, as, indeed, will the Democratic
Party platform.
Public support for foreign aid has
continued. The polls show that an in-
creasing,number of Americans consider
foreign aid essential. Support among
business leaders continues to increase,
reflecting the growing awareness of
American businessmen of the impor-
tance of foreign aid in developing a com-
munity of free and prosperous nations.
INCREASED INTERNATIONAL COOPERATION IN
FOREIGN AID
Following our example, other coun-
tries have begun to play a more signif-
icant role in foreign aid. We can be
proud of our leadership in launching the
great international development effort
now underway. Today, foreign aid is not
just an American program, or even a
program of the developed nations. It is
an international program, supported by
nations large and small, rich or poor.
A dramatic example of the kind of in-
ternational cooperation now taking place
in foreign aid is the development of the
Mekong River Basin in southeast Asia,
in which the United States, Canada, the
Philippines, Australia, the United King-
dom, New Zealand, Japan, India, France,
Pakistan, Iran, the Republic of China,
and Israel all are participating. Top-
ographic maps are being prepared by
the Americans and Canadians. The
Canadians and Filipinos are preparing
damsite and irrigation plans. Geolog-
ical studies for the damsite are being
conducted by the Australians.
_U.S. engineers are studying rainfall
and stream flow. Navigational work is
being carried out by the United Kingdom
and New Zealand. Japanese and Amer-
No, 155-7
ican engineers are preparing engineering
studies for dam construction. French
scientists are investigating the effects of
proposed dams on sedimentation and
fisheries. Japanese, French and United
States engineers are preparing recon-
naissance surveys on irrigation and
power development. Pakistan is plan-
ning an irrigation distribution system for
one dam. Israel is assisting with irriga-
tion design at another. Israel, the. Re-
public of China and Iran have donated
materials. Various international orga-
nizations also are participating, includ-
ing the U.N. Special Fund, which is sup-
porting a hydrographic survey; the world
meteorological organization, which is as-
sisting with rainfall and streamflow sur-
veys; UNESCO, which is studying water
volume and density; and the U.N. Food
and Agriculture Organization, which is
setting up experimental farms. Other
technical assistance is being provided by
the International Labor Organization
and the International Atomic Energy
Agency.
FOREIGN AID OBJECTIVES RECONSIDERED
Despite increased acceptance, foreign
aid is still plagued by questions about its
objectives and doubts about its effective-
ness.
The major question about objectives is
whether foreign aid should be primarily
a political or an economic program.
Those making the political argument
contend that foreign aid should be used
to support the foreign policy objectives
and security needs of the United States,
and that economic development should
be a secondary consideration. Those
who argue for the economic point of view
say that lasting economic and political
benefits can be achieved from foreign aid
only if it is used for long-range economic
development.
The fact that foreign aid has at-
tempted to serve both of these objectives
has led some to argue that the program
lacks clearcut purpose and direction.
Some have even sought to devise ways
of separating the long-term economic
from the short-term political, only to
realize the difficulties of separating polit-
ical from economic factors.
Earlier this year a presidential com-
mission found that it would be difficult to
improve upon the present form and
organization of foreign aid: Implicit in
this decision was the recognition that the
program serves a dual political and eco-
nomic purpose, which in turn is best
served by the present structure and func-
tions of the foreign aid agency. Perhaps
as a result of this decision, it will now
be possible to arrive at a concensus that
foreign aid is both a political and an
economic program, and that these two
purposes are interrelated and insepar-
able.
Foreign aid is an economic program.
It seeks to increase the economic
strength and vitality of nations strug-
gling to free themselves from the trap of
poverty. But foreign aid is also a po-
litical program. It seeks to promote the
freedom and democratic growth of less-
developed countries and the creation of a
community of free and prosperous na-
tions.
Within each developing country, eco-
nomic and political development are part
of a circular process in which self-gov-
ernment depends upon economic survival,
which in turn depends upon a framework
of law and administration conducive to
economic activity. In order for a coun-
try to develop, political as well as eco-
nomic factors therefore must be taken
jointly into account in providing assist-
ance.
Some critics of the foreign aid program
insist that it directs resources from do-
mestic consumption. This argument is
misleading in that it implies that the
foreign aid program is unique in this re-
spect. In reality all the principle instru-
ments of our foreign policy divert re-
sources-our military forces, our diplo-
matic community, our space program-
as well as the aid program. But if one
understands the true function of foreign
aid, as one essential instrument of our
foreign policy, then one will accept it as a
normal tool which the United States
must use in exercising its role as de-
fender of the free world.
APPRAISAL OF THE EFFECTIVENESS OF FOREIGN
AID
Questions about the effectiveness of
foreign aid as an instrument of foreign
policy are to be expected. How effective
has it been? The results of the Marshall
plan, both economic and military, are
apparent. The results of assistance to
the less-developed countries, on the other
hand, are more difficult to assess, largely
because they are inconclusive. In foreign
aid as in politics it pays to wait until the
results are in.
. This takes time and patience. Only
after 10 years were we able to evaluate
the Marshall plan. Decades will be re-
quired before the effectiveness of assist-
ance to the less-developed countries,
which lack an industrial base and finan-
cial resources, can be adequately as-
sessed-either the actual development of
these countries, or the political benefits
to be gained from providing assistance.
After investing about $105 billion in
foreign aid since 1946, how can we
reckon its results in the less developed
world, which has received about $55 bil-
lion, while. Europe and Japan received
about $50 billion? Of the $55 billion,
about $3 billion was for UNRRA and
other postwar rehabilitation, while an-
other $6 billion was food for peace; $15
billion was for military assistance as
such, while another $21 billion was for
related economic aid under what is now
called "supporting assistance." The re-
maining $13 billion was long-term as-
sistance, primarily economic in charac-
ter. Of this, technical assistance, which
originated in the Point 4 program, was
about $2 billion. Export-Import Bank
loans were another $5 billion.
EVALUATION OF SECURITY ASSISTANCE
Security assistance, which includes
military assistance together with related
economic aid, has consumed two-thirds
of all aid funds, counting food for peace,
invested in the less developed countries
since 1950. How can the results of this
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CONGRESSIONAL RECORD - SENATE August 10
assistance be measured? One measure
is the success of particular countries in
resisting the Communists. in Korea, the
Communists were fought to a standstill
and half the country remains free of
Communist rule. Taiwan has been en-
abled to reach economic self-sufficiency
partly by virtue of Its military readiness.
The tenuous independence of Laos has
been supported by arming non-Commu-
nist forces. India was able to fight back
after Red Chinese aggression and now is
better prepared to meet future attack.
In Latin America, we have assisted
Venezuela in combating internal Com-
munist subversion through various pro-
grams of military and paramilitary as-
sistance.
Another measure of the effectiveness
of military assistance is the Increased
military assistance is the extent to which
suiting from increased military capabil-
ity in the less developed countries.
A third measure of the effectiveness of
military assistance is the extent to which
local forces have relieved the United
States from having to station its own
troops abroad. This has had an incal-
culably good effect on the development of
our own country, and this in turn has
helped strengthen America's position in
world affairs.
EVALUATION OF DEVELOPMENT ASSISTANCE
Counting food for peace, one-third of
all aid funds invested in the less-devel-
oped countries since 1950 has been de-
voted to nonmilitary development as-
sistance. This includes development
loans and grants, technical assistance
and related activities. By contrast with
security assistance, the purpose of which
is to maintain order and territorial in-
tegrity, the purpose of development as-
sistance is, as the word conveys, to help
with long-term political and economic
development, together with related areas
of development such as education.
The first fact to recognize when eval-
uating the effectiveness of development
assistance - is that only in more recent
years has this type of assistance become
the major emphasis of our aid to less
developed countries. During most of the
decade following the Korean war the for-
eign aid program was primarily directed
toward maintaining the security of less
developed countries against Communist
aggression. In 1953, for example, about
90 percent of all foreign aid to the less
developed countries was for the purpose
of security, and only 10 percent for de-
velopment. In 1956,75 percent of all aid
was still being used for security. By
1960, 50 percent was still being used for
security. At the present time, security
assistance comprises less than one-third
of -the total.
When we consider the question "What
has foreign aid accomplished?", it is im-
portant, therefore to begin by under-
standing what we mean, as far as the
less developed countries are concerned,
by "foreign aid." What we are really
talking about is a total of $13 billion, or
$19 billion if food for peace is included,
in development assistance spent mostly
over the last 5 to 7 years. The remainder
was emergency aid for security purposes
following the Korean war.
What has been accomplished by this
amount of development assistance?
Overall, some 14 less developed countries
have become sufficiently self-supporting
that aid can be terminated in the near
future. Two other countries, India and
Pakistan, which together have been re-
ceiving almost half of all development
assistance, are making substantial prog-
ress toward self-sustaining growth. In-
dia, for example, has been making re-
markable progress, despite conditions of
extreme poverty and harassment from
the Chinese. In recent years. India's
production of basic Industrial products
has Increased rapidly, largely as a result
of foreign aid.
During the last year of reported fig-
ures, industrial production increased 8
percent. Production of aluminum in-
creased from 20,000 tons to 43,000 tons,
in just 1 year. The output of machine
tools, so essential for industrial devel-
opment, expanded by more than 50 per-
cent during the year. The production
of nitrogenous fertilizers, so essential for
greater agricultural productivity in-
creased by 40 percent.
Malaria, which affected 100 million
people a year in 1947, has almost been
wiped out In India. Besides helping to
Increase life expectancy from 27 to 42
years, this dramatic achievement has
helped substantially in Increasing agri-
cultural and industrial production.
In education, India. which had a lit-
eracy rate of only 19 percent in 1947,
now has 60 percent of its children under
12 in school.
The results of all of these advances
will become fully apparent only in the
years ahead. Children now In school
will have to mature and assume the re-
sponsibilities of adults before education
will pay off In development. In industry
and agriculture, basic work now under-
way will be felt only as dams are com-
pleted, highways are built, improved
crops are raised. But the foundations
are being laid, and foreign aid has been
effective in helping India take these be-
ginning steps toward development.
ACCOMPLISHMENTS OF THE ALLIANCE FOR
PROGRESS
In Latin America, where major devel-
opment assistance began only after the
Alliance for Progress was established in
1961, encouraging progress is being
made. Despite the great difficulties en-
countered in transforming the societies
of Latin America, 11 countries have ini-
tiated significant tax reforms, 10 coun-
tries have passed land reform legisla-
tion, and 3 others have legislation pend-
ing. Ten countries have exceeded the
goal of a 2.5 percent annual growth rate
called for by the Alliance. The total
value of Latin American exports in-
creased 7 percent in 1962, the last year
for which figures were available. and
trade within the region rose by 12 per-
cent. Equally important, between 1957
and 1962, U.S. manufacturing affiliates
in Latin America Increased their sales by
70 percent.
By dune 1965, more than 300,000 new
homes, some 36,000 classrooms, more
than 2,000 water systems and some 600
hospital and health units will have been
built in Latin America with our help.
Three hundred thousand farm credit
loans will have been built In Latin Amer-
ica with our bulk. Three hundred thou-
sand farm credit loans will have been
Issued. Eleven million textbooks will
have been printed.
Most of the Alliance countries have
improved their tax administration ca-
pacities. In a number of these-such as
Chile, Colombis, Ecuador, Peru, Argen-
tina, El Salvador, Mexico and Bolivia-
these administrative changes promise to
be, sweeping. U.S. Internal Revenue
Service teams have been assisting tax
reform efforts in 10 countries and will
soon be helping in 4 others.
Progress in basic agrarian reform has
been slow, but there has been some en-
couraging movement particularly in
Venezuela and now in Peru. Coopera-
tives and credit unions are growing. For
example, rural electric cooperative activ-
ity has begun in a dozen countries. Col-
onization and land settlement programs
are active in half a dozen countries.
Progress continues in the introduction of
new legislation and in Issuing regula-
tions for the administration of existing
laws. Twelve countries have already in-
troduced agrarian reform legislation.
The agrarian reform institutes, or land
reform agencies in these 12 counties, have
greatly strengthened their technical re-
sources and show encouraging progress
in conducting basic surveys and project
development. AID is assisting in this
rural development effort through the co-
operation of the land-grant colleges.
Fifteen countries have self-help hous-
ing programs. Savings and loan legisla-
tion has been adopted by nine countries:
Chile, Dominican Republic, Ecuador,
Peru, Venezuela, Argentina, El Salvador,
Guatemala, and Panama. The first five
of these countries now have operating
systems-a total of nearly 70 savings and
loan associations with 100,000 depositors
who have accumulated deposits equiva-
lent to more than $35 million. These as-
sociations provide savings badly needed
for productive investment.
The building of new institutions to
channel savings into investment is clear-
ly seen in the establishment of develop-
ment banks, or other intermediate credit
institutions, in most of the Latin Ameri-
can countries. Since the Inception of
the Alliance, private or public develop-
ment banks have been set up or are in
the process of creation in eight coun-
tries: Bolivia, Brazil, Colombia, Costa
Rica, El Salvador, Guatemala, Honduras,
and Panama. In addition, the Central
American Bank for Economic Integra-
tion-CABEI-has been established and
is promoting private sector development
In member countries.
These are but a few of the develop-
ments which have occurred during the
past 3 years in the area described by
President Kennedy as "the most critical
area in the world." I do not pretend that
all the problems have been solved, that
all the needs of the Latin American peo-
ple have been met. What is important
is that we recognize that progress has
been made, that attempts have been ini-
tiated to accomplish the structural eco-
nomic and social reforms needed, if the
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