FOREIGN ASSISTANCE ACT OF 1972

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• Collection: General CIA Records
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• Document Creation Date: December 12, 2016
• Document Release Date: January 7, 2002
• Sequence Number: 4
• Publication Date: May 31, 1972
• Content Type: REPORT

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FIVE COPY Calendar No. 789
92o CONGRESS SENATE f REPORT
2d .Session a No. 92-823
FOREIGN ASSISTANCE ACT OF 1972
MAY 31, 1972.-Ordered to be printed
Mr. FULBRIGHT, from the Committee on Foreign Relations,
submitted the following
REPORT
together with.
ADDITIONAL VIEWS.
[To accompany S. 33901
The Committee on Foreign Relations, to which was referred the
bill (S. 3390) to amend the Foreign Assistance Act of 1961, and f or
other purposes, having considered the same, reports favorably thereon
with an amendement and recommends that the bill as amended do
pass.
1. PRINCIPAL PURPOSE OF THE BILL
The principal purpose of the bill is to authorize funds for FY 1973
for military and related assistance programs carried out under the
authority of the Foreign Assistance Act of 1961 as amended and the
Foreign Military Sales Act as amended. The bill also authorizes
additional funds for relief activities in Bangladesh. The following
table lists the various categories of assistance to be authorized by this
bill and compares the Committee's recommendations with the amounts
appropriated for FY 1972 and the Executive Branch's authorization
request :
65-010-72--?1
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TABLE I.--FOREIGN ASSISTANCE-FISCAL YEAR 1972 APPROPRIATIONS, FISCAL YEAR 1973 AUTHORIZATION
REQUEST, AND COMMITTEE ON FOREIGN RELATIONS RECOMMENDATIONS
]In thousands of dollars]
Fiscal year
Fiscal year 1973 Committee
Program 1972 authoriza- recommen-
appropriation tion request dation
I. Grant military assistance___________ 500 780 fi00
2. Foreign military credit sales400 527 400
(Credit ceiling)____
Security supporting --- _ 1 (550) (629.0) 1 (550)
Israel -- ---------- assistance ----------------------------- 550 844.0 650
(50)-------- ---- (50)
---------------------------
Total security assistance ____._________ _-_ 1,480 2,151 1,650
It. Economic assistance: ----- -
t. International narcotics control(x) 42,5 (a)
2. Bangladesh relief assistance ____________ 200 100.0 50
3390 ----------
1,680 2,293.5 1,700
I OF which $300,000,000 is earmarked for Israel.
2 There was no specific appropriation for fiscal year 1972 for international narcotics control. A total of $20,800,000, taken
from other appropriation categories, is to be used for this work in fiscal year 1972, however.
z The committee recommended that $42,500,000 be included in S. 3526, the Foreign Relations Authorization Act of
1972, for this activity.
II. OTHER PURPOSES OF THE BILL
In addition to authorizing appropriations as detailed in Table I,
the bill also does the following:
1. Prohibits (a) use of funds for maintenance of U.S. forces in
South Vietnam after August 31, 19723 and (b) participation of U.S.
forces in hostilities in or over Indochina upon the fulfillment of the
following conditions:
(1) The States and. reaching National nof a alcI ibcratio abeeraagreement
and those allied between the United
the N.L.F.;
(2) Release of all U.S. prisoners of war held by the government
of North Vietnam and forces allied with it; and
(3) The rendering of an accounting for all Americans missing
in action who have been held by or known to North Vietnam and
its allies.
2. Requires that certain future agreements relating to overseas
military installations or the storage of nuclear weapons abroad be
submitted to the, Senate for its advice and consent.
3. Prohibits obligation or expenditure of funds to carry out military
base agreements with Portugal and Bahrain until the agreements
have been submitted to the Senate in trdaty form.
4. Imposes a $275 million ceiling for fiscal year 1973 on U.S.
obligations in, for, or on behalf of Cambodia, excluding the cost of
U.S. air operations and South Vietnamese operations in Cambodia.
5. Returns funding of military aid to Laos and South Vietnam. to
the regular foreign military assistance program beginning in FY 1974.
6. Requires specific authorization for the financing of foreign forces
operating in Laos, Thailand, or North Vietnam.
7. Prohibits U.S. government military assistance or sales to the
nations of South Asia.
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8. Prohibits transfer of Agency for International Development
development assistance or disaster relief funds for use for military or
supporting assistance purposes.
9. Prohibits transfers of foreign assistance funds to other agencies
except as reimbursement for services rendered.
III. COMMITTEE ACTION
On March 14, 1972, the President sent a message to Congress and
transmitted draft legislation concerning funding of his foreign as-
sistance program for FY 1973. That draft bill was introduced by the
Chairman of the Committee, by request, on March 21, 1972. Public
hearings were held on it on April 17, 18, and 19, 1972, at which the
following witnesses were heard:
Robert Alpern, SANE, A Citizens' Organization for a Sane World
Timothy Butz, Vietnam Veterans Against the War
Dr. Richard Cash, The Bangladesh Information Center
Honorable Joseph S. Clark, Chairman, Coalition on National
Priorities and Military Policy
Honorable Melvin R. Laird, Secretary of Defense; accompanied by
Adm. Thomas H. Moorer, U.S. Navy, Chairman of the Joint
Chiefs of Staff; Lt. Gen. George M. Seignious II, U.S. Army,
Deputy Assistant Secretary of Defense (International Security
Affairs) for Security Assistance and Director, Defense Security
Assistance Agency; Rady A. Johnson, Assistant to the Secretary
of Defense; Donald S. Floyd, Special Assistant for Congressional
Relations, Office of the Assistant Secretary of Defense for Inter-
national Security Affairs; Col. Robert M. Lucy, U.S. Marine
Corps, Legal Adviser and Legislative Assistant to the Chairman,
Joint Chiefs of Staff; and Christian A. Chapman, Director, Office
of Military Assistance Sales, Bureau of Politico-Military Affairs,
Department of State
Allard K. Lowenstein, National Chairman, Americans for Democratic
action
Earl C. Ravenal, Federation of American Scientists
Honorable William P. Rogers, Secretary of State; accompanied by
Dr. John A. Hannah, Administrator, Agency for International
Development; George S. Newman, Acting Coordinator of Security
Assistance; and Thomas R. Pickering, Deputy Director, Bureau of
Politico-Military Affairs, Department of State
Rev. John Coventry Smith, General Assembly of the United Pres-
byterian Church in the United States
Michael Yarrow, Friends Committee on National Legislation
The bill was considered in twe executive sessions on May 23, 1972,
and ordered reported with amendments that day by a vote of 11 to 3.
Those voting in favor of the motion to report the bill were: Senators
Church, Symington, Pell., McGee, Muskie, Aiken, Case, Cooper,
Javits, Scott, and Pearson. Those voting against were Senators
Fulbright, Mansfield, and Spong.
IV. COMMITTEE COMMENTS
The Committee has for some years been concerned over the failure
of the Executive Branch to bring together into one coherent picture
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all of the bits and pieces in the total program of United States assist-
ance to foreign countries. The Committee must consider individual
foreign aid authorization requests, such as those in this bill, within
the context of the nation's total foreign aid programs, overall foreign
policy objectives, and sound national priorities for use of the tax-
payers' money. The military aid programs recommended for authori-
zation in this bill represent only about one-third of the total foreign
military assistance package proposed for the 1973 fiscal year, $1.65
billion out of $4.7 billion. When government cash sales and commercial
sales of military equipment and supplies are included, the estimated
total How abroad of United States arms and related material for fiscal
year 1973 comes to $7.6 billion as seen in the table below:
Table II. Military and related assistance and arms sales, fiscal year 1973
(Executive Branch estimates)
Program Amount
1. Military assistance grants --------------------------------- $80,700,000
2. Foreign military credit sales------------------------------ 629, 000, 000
3. Excess defense articles ------------------------------------ i 245, 000, 000
4. Ships loans ----------------------------------------- --- 39, 600, 000
5. Security supporting assistance ----------------------------- - 879, 418, 000
6. Foreign military cash sales (DOD)________________________ 2, 200, 000, 000
7. Commercial sales-------------- 722, 598, 000
8. Military assistance-DOD funded ------------------------- 2, 055, 000, 000
Total military and related assistance and sales---------- 7, 610, 316, 000
I Valued at one-third acquisition cost.
But even the amounts to be authorized for appropriation in this
bill do not reflect the total military assistance contemplated under
Foreign Assistance Act authority. It does not, for example, include
the amount of surplus military equipment to be given away. For this
program the Executive Branch asked for authority to give away $245
million in arms and- material, valued at one-third acquisition cost.
The Committee has allowed a ceiling of $150 million, which, in effect,
adds an additional $450 million in military aid to the new money
authorized. Titus, the total military aid package to be authorized by
this bill is really $2,150 million.
The Committee discussed ways to bring about more effective control
over the amount of arms flowing to individual countries and to regions.
There was some sentiment for imposing specific all-inclusive ceilings
on arms aid either on a country-by-country or a regional basis, as the
Committee has done in the case of Cambodia. The Committee will
give further consideration to this question next year.
Table III below provides country-by-country details concerning
the major categories of military and related assistance. However, this
bill does not contain an authorization for the Contingency Fund;
$30 million was authorized for FY 1973 in the Foreign Assistance Act
of 1971.
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TABLE III.-SECURITY ASSISTANCE-SUMMARY OF PROGRAMS, BY AREA AND COUNTRY, FOR FISCAL YEAR 1973
[IN THOUSANDS OF DOLLARS]
Grant Foreign Security Contingency
military military supporting fund and
Total assistance credit sales assistance other
East Asia and Pacific:
Cambodia__________________________________ 299,985 224,985 75,000 ------------
China -------------------------------------- 69,968 14,968 55,000 ------------------------
Indonesia--------------------------------- - 29,933 29,933 ------------------------------------
Korea ------------------------------------- 259,982 234,982 25,000 ------------------------
Laos--------------------------------------- 49,800 ------------------------ 49,800 -----------
Malaysia---------------------------------- 181 1181 ------------------------------------
Philippines------------------------------- 21,968 21,968 ------------------------------------
Vietnam -----
Thailand ---------------------------------- 85,554 59,954 ------------ 25,600 ----------------------------------- 585,000 ------------------------ 585,000 ------------
Regional ----------------------------------- 21,275 375 12,500 8,400 ------------
Total, East Asia --------------------------- 1,423,646 587,346 92,500 743,800 ------------
Near East and South Asia:
Afghanistan------------------------------- 215 2215 ---------------------
Ceylon------------------------------------- 15 2 15 -----------------------------------
Greece------------------------------------- 72,966 14,966 58,000 ------ ---------------
Indi a ------------------------------------- 234 2 234 -----------------------------------
Iran--------------------------------------- 492 1492 -----------------------------------
Israel --------------- - - --- --- - - -------- - - -- (1) ------------ (3) 50,000 ----------
Jordan------------------------------------ (3) (3) (3) 40,000 -----------
Lebanon.. (3) (3)) (3)
Nepal-------------------------------------- 29 1 29 ------------------------------------
Pakistan ---------------------------------- 243 2 243 --------------------
Saudi Arabia ------------------------------- (3) (3) (1)
Turkey ------------------------------------ 114,963 99,963 15,000 ------------------------
Regional ----------------------------------- 99 99 ---------------------------------
Total, Near East and South Asia____________ 694,960 161,960 443,000 90,000 ____________
cm wpia------------------ ---------------- 12,799 12,799 ------------------------------------
Ghana ------------------------------------- 55 2 55 .------------------------------------
Liberia------------------------------------- 517 517 -----------------------------------
Mali_ ------------------------------------- 50 2 50 ------------------------------------
Morocco ----------------------------------- (';) (3) (3) -----------------------
Senegal----------------------------------- 25 2 25 -----------------------------------
Tunisia (1) (3)
------------------------------------ --------------
Zaire-- 3,955 1 455 3,500 ------------ -----------
Regional ----------------------------------- 93 93 ----=------------------------------
Total, Africa______________________________ 37,483 18, 983 18,500 ------------------------
Latin America:
Argentina---------------------------------- 15,500 1 550 15,000 ------------------------
Bolivia------------------------------------- 8,873 4,873 4,000 ------------------------
Brazil -------------------------------------- 15,988 1 988 15,000 ------------------------
Chile------------------------------------ 6,114 1,114 5,000 ------------------------
Colombia ----------------------------------- 10,778 1 778 10,000 ------------------------
Dominican Republic ------------------------- 1,435 1,435 ------------------------------------
Ecuador ------------------------------------ 1,000 1,000 ------------------------------------
El Salvador --------------------- 805 805 ------------------------------------
Guatemala --------------------------------- 3,736 1,736 2,000 ------------------------
Honduras ------------- ----------- 734 734 -----------------------
Mexico----------------------------------- 2,087 1 87 2,000 ------------------------
Nicaragua--------------------------------- 1,045 1,045 ----- ------------------------------
Panama ----------------------------------- 527 527 ------------------------------------
Paraguay------- ---------------- 791 791 -------------------------------------
Peru -------------------------------------- 5,820 1 820 5,000 -----------------------
Uruguay----------------------------------- 3,460 1,460 2,000 ------------------------
Venezuela ___________-_____________________ 15,870 1 870 15,000 ------------------------
Regional ---------------------------------- 687 687 ------------------------------------
- - - - - - - - - - - - - - - - - - -
-------
Total,LatinAmerica _____________ 95,300 20,300 75,000____________________-___
Austria---------- -------------- 24 2 24
Malta------------------------------------- 9,500 -------- 9,500 ------------
Portugal -----------------------991 991
Spain------------------------------------- 12,987 9,987 3,000 ------------
Regional---------------------------------- 109 109 ------------------------------------
Total, Europe_________ __________ 23,611 11,111 ------------ 12,500 ------------
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TABLE III,-SECURITY ASSISTANCE-SUMMARY OF PROGRAMS, BY AREA AND COUNTRY, FOR FISCAL
YEAR 1973--Continued
Grant Foreign Security Contingency
military military supporting fund and
Total assistance credit sales assistance other
Nonregional costs:
Administrative expenses_ -------------------- 24,775 20,000 ____ _______ 4,775
Contingency requirements ___________________ 30,300 ------------------------------------ 30,300
U.N. forces, Cyprus (UNIFCYP) ---------------- 4,800 ------------------------ 4,800 ------------
Other -------------.------------------------ 23,400 ------ ----- 23,400 ------------
Total,nonregional_------------------------- 83,275 20,000 ------------ 28,200 35,075
Total obligational authority ----------------- 2,358,275 819,700 629, 000 874,500 35, 075
Less:
Recoupments/recoveries---------------------- -60,132 -30,000 ------------ -29.832 -300
Reimbursements_____________________________ -6,545 -4,700 ------------ -1,845
Net private credit ------- ------------------- -102,000 ------------ -102,000 --------
Transfers---------------------------------- -3,823 -5,000 -----..-_-- 1,177 ---_-------
Newobligationalauthority ________________ 2,185,775 780,000 527,000 844,000 34,775
United States and overseas training only.
2 U.S. training only.
a Classified.
Table IV gives information concerning foreign military aid programs
proposed for FY 1973, both in this and other bills, as well as data on
economic assistance programs. This table is included in order to give
members of the Senate a more detailed picture of the major elements
in the foreign aid program. But it should be noted that this table is
not all inclusive. It does not, for example, contain the major costs of
supporting military assistance missions abroad, support for inter-
national military headquarters, U.S. costs of the NATO infrastructure,
the value of property transferred to South Vietnam, and other items
adding tip to hundreds of millions more in foreign assistance.
V. COST ESTIMATES
Section 252(a)(1) of the Legislative Reorganization Act of 1972
requires that committee reports on bills and joint resolutions contain:
"(A) an estimate, made by such committee, of the costs which would
be incurred in carrying out such bill or joint resolution in the fiscal
year in which it is reported and in each of the five fiscal years following
such fiscal year . . ." The Act also requires that the committee's
cost estimate be compared with any estimate made by a Federal
agency.
The Committee estimates that the cost of carrying out the pro-
visions of S. 3390 during FY 1973 will be $1,907,300,000, which is
the total cost of the programs proposed less the reductions made by
the Committee. The outlook for the military aid program over the
following five years is murky at best. Based on a straight-line pro-
jection of the program levels recommended, not including military
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aid for South Vietnam and Laos beginning in FY 1974, the costs for
FY 1974-79 will total $9,536,500,000. The Department of State has
projected costs of foreign military aid, credit sales, and supporting
assistance for the period FY 1974-78 within a range from $8,384,000,-
000 to $12,096,000,000, also excluding military aid to Laos and
South Vietnam.
SECTION-BY-SECTION ANALYSIS
Section 2. Overseas Private Investment Corporation
This section amends Section 234(c) of the Foreign Assistance Act
of 1961, relating to the Overseas Private Investment Corporation, to
permit the Corporation to acquire its financing operations warrants
and other rights to acquire stock. But such rights may not be exercised
while held by OPIC.
Under present law, OPIC is prohibited from purchasing stock but
it may acquire debt securities convertible to stock (for example,
convertible debentures) and sell them to investors, but may not
convert them to stock while they are held by OPIC. OPIC has found
that rights to acquire stock are more flexible and more popular as a
financing tool than convertible debt securities and that borrowers in
less developed countries are often reluctant to issue convertible debt
securities because of the legal technicalities associated with them.
Rights to acquire stock may also spur private participation in OPIC-
financed projects as potential purchasers could be offered a choice of
an equity or debt position in a project. This would be especially at-
tractive to small financial institutions which might be reluctant to
purchase debt securities containing complex conversion features.
The amendment also would make is clear that the authority to
receive convertible debt securities and rights to acquire stock applies
to all of OPIC's financing operations, that is to investment guaranties
as well as direct loans.
Section 3. Refugee Relief Assistance
This provision would authorize $50,000,000 for FY 1973 for refugee
relief assistance in Bangladesh. Last year Congress appropriated
$200,000,000 for relief activities resulting from the conflict in what was
East Pakistan and is now Bangladesh. As of May 19, 1972, only
$71,000,000 of that has been obligated leaving $129,000,000 available
for obligation. In addition to the amounts provided under Foreign
Assistance Act authority, the United States has provided $72,600,000
in food assistance under Public Law 480. Additional food aid can-and
no doubt will-be provided under P.L. 480. The Committee does not
believe that a case has been made for the full $100,000,000 requested
by the Executive Branch.
The following table lists the contributions or commitments to
Bangladesh relief on a country-by-country basis:
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COMMITMENTS TO BANGLADESH, JANUARY-DECEMBER 1972
(Expressed in millions of U.S. dollars]
Voluntary agencies
From From
Govern- private
Country Bilateral ment source UNROD UNICEF UNHCR
Argentina --------------------- ----------- ---- 0.24 --------------------------- 0.24
Australia________________ 5.50 -______- 5.50
----------------------------------2.00 -------------
D nada__-_____________ 34.40 0.25 __________ 1,00 2.00 37.65
Denmark
- ---------------
3.50 --------- 1.00 ------- 4.50
France---(--e-deral ------------ .60 .30 --------------- --------------------- .90
Germany F "'
Republic)------------------------ 2.40
2.40 - - ---- - --------------------
n la 156.60 156.60
tal ---------------------------------
re y- --------------- - .09 .09 ------------ .18
I - -"`
Y lo ------------------- ----------- -------------- .10
Japan --------------------------------------- 9.00
---------------------------- 9.12
New Zealand --------------------- .60
- 12 .12
Norway .60
-------------------------
Pakistan .
---
Sweden - - - ---- - - - -- - - - - -- 22.40 5.90 ----- -------------------- 5.90 Switzerland --------------- 2.00 -_ -_ -_-_ -_-_-_-_.___________ 4.64 75 27.04
2.75
-------------- 2United Arab Republic______ 1.00 ___ .. ______-___- 1. D0
---------- -------
United Kingdom__________ 12.30 .50 _______"s1.00
United States______________________ 6.70 __________ 119.15 2 25.00 150.85
U.S.S.R------------------ 51.60 .20 ----------------------- 51.80
Other_______________________________________ 65.30 1.50 11.31 6.30 84.41
Total______________ 290.00 10.95 65.30 143.39 38.40 6.30 1572.54
I Includes $18,200,000 recently made available but not distributed between bilateral and multilateral activities.
`1'lie Committee expects that every effort will be made to insure
that the United States does not get itself in the position of assuming
primary responsibility for the relief program. As the Committee report
last year stated: "This is an international disaster and the responsi-
bility must be shared by the entire world community under the
leadership of the United" Nations."
Section # . Mil iitary Assistance
Subsection (1)-Authorization
Subsection (1) authorizes the appropriation for FY 1973 of $600,-
000,000 for military assistance grants. With recoupments, reinlburse-
nleuts, and reappropriations of $39,700,000 this will finance a total
military grant aid program of $639,700,000 in FY 1973. Congress
appropriated $500,000,000 for this program for FY 1.972.
Following is a list of the proposed country-by-country allocation of
the fiscal year 1973 military grant aid request (the figures for certain
countries in the Middle East and North Africa are still classified) :
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Estimated, Proposed,
Countries Fiscal year 1971 fiscal year 1972 fiscal year 1973
East Asia and Pacific:
Burma--------------------------------------------- 50 --------------------------------
Cambodia---------------------------------------------- 182,967 179,719 209, 541
China------------------------------------------------- 20,012 10,931 9,642
Indonesia---------------------------------------------- 16,822 18,000 28,745
Korea__________________________________________________ 288,233 150,000 215,710
Malaysia---------------------------------------------- 228 134 1181
pines --------------------------------------------- 16,999 14,043 20,780
Phili
p
Thailand ------------------------------------------------------------------------------ 59,954
Regional program_______________________________________ 92 79 375
Regional total-----------------------------------------
525, 403
372,906
542,928
Near East and South Asia:
Afghanistan____________________________________________
204
250
2215
Ceylon------------------------------------------------
3,000
----------------
215
Greece-------------------------------------------------
19,999
9,883
9,554
India--------------------------------------------------
167
300
2234
Iran ----------------------------
2,310
935
1492
Israel -------------------------------------------------------------------------
4
(2)
2
Iordan ---------------------------------------------
30,16
(
)
Lebanon---------------------------------------------
Nepal --------------------------------------------------
12
26
229
Pakistan
-----------------------------------------
-
174
85
2243
---
-
Saudi Arabia
------------------------------------------
672
510
l3
-
Turkey
--------------------------------------------
99,616
60,000
88,611
-
Regional program---------------------------------------
19
19
99
Regional total_________________________________________
161,408
110,228
142,952
Europe:
Austria ------------------------------------------------------------ 13
2 24
Portugal -
----------------------------------------- 1,035 1
-
1
905
-
-
190
Spain
------------------------------------------------ 25,001 11,
9,261
-
Regional program ---------------------- 99 171
109
Regional total----------------------------------------- 12,384
10,299
Africa:
Ethiopia________________________________________________ 12,031 9,000
12,139
Ghana------------------------------------------------- 53 48
2 55
Liberia------------------------------------------------- 513 316
499
Mali--------------------------------------------------- 1 52
2 50
Morocco----------------------------------------------- 804 (2)
( 1)
Nigeria------------------------------------------------ 213 107
----------------
Senegal ---------------------------------------------------------------- 255
2 25
Tunisia----------------------------------------------- 4,481
Zaire ----------------------------------- 429 457
1465
-------------------------------- 48 100
Regional program-
93
-----
------------
----
Regional total_________________________________________
18,573
12,807
17, 975
Latin America:
Argentina ---------------------------------------------
532
798
1 550
Bolivia -------------------------------------------------
1, 774
3,352
4, 873
Brazil -------------------------------------------------
929
895
1 988
Chile ------------------------------------------------
754
856
1,114
Colombia --------------------------------------------
924
738
2 778
Dominican Republic-------------------------------------
1, 258
828
1, 435
Ecuador ---------------------------------------------
441
527
1, 000
El Salvador--------------------------------
413
302
805
Guatemala------------ ------------------------------
2, 613
1, 449
1, 736
Honduras
-
-
579
550
734
-
- ----------------------------------------
Mexico---- ------------------------------
90
117
187
Nicaragua----------------- ----------------
887
761
1,045
Panama -----------------------------------------------
541
462
527
Paraguay_---------------------------- --------
951
834
791
Peru----
- ------------------------------
558
879
1 820
----
U.uguay---
-------------------------------------------
1,186
767
1,460
-
Venezuela ---------------------------------------------
986
722
1 870
Regional program ------------------------------------
295
231
687
----
---------
-----
Regional total_________________________________________
15, 711
15,068
20, 300
General costs_______________________________________________
22,382
21,607
85,246
Excess defense articles reserve_______________________________ 18,400
--------------------------------
Worldwide total (TOA)---------------------------------
788,012
545,000 819,700
I United States and overseas training only.
2 U. S. training only.
a Classified.
S. Rept. 92-823-2
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The following table lists military aid funded through the Depart-
ment of Defense budget for allied forces in Southeast Asia:
Fiscal year-
South Vietnam----------- ._____________________________________
1,848.9
1,824.1
1,561.5
Korea-------------------------------------------------------`-
208.2
188.9
133.5
Laos--------- - ---------------------------------------
155.8
240.3
360.0
Thailand---------------- ---------------------------------
113.0
66.1
(1)
Total _--------- _ --- --------- ----- ---- ----------
2,325.9
2,339.4
2,055.0
I Military aid for Thailand to be funded from the MAP program.
Subsection (2)--Special Authority
This subsection. amends section 506(a) of the Act to extend through
fiscal year 1973 the President's special authority to order defense
articles and defense services subject to subsequent reimbursement.
Subsection (3) --Military Assistance for Laos and Thailand
This subsection requires that, beginning with fiscal year 1974, all
military grant aid to South Vietnam and Laos be funded out of the
regular military assistance program, as authorized under the Foreign
Assistance Act of 1961, as amended.
Military aid to these countries is currently being funded from the
Department of Defense budget, an interim procedure which the
Congress approved in 1966 in the case of South Vietnam and in 1967
in the case of Laos and Thailand. This was done at a time when the
realities of Southeast Asia were not unlike those that accompanied the
Korean war buildup in 1950, which occasioned a similar funding trans-
fer For military aid for Korea from the Mutual Security Act to the
Defense Department budget. Funding of military aid to Thailand was
returned to the regular MAP program by the Foreign. Assistance Act
of 1971.
The realities of the 1970's in Southeast Asia are not those of 1966
and 1967: United States involvement in the war is being wound down
and our ground forces are being withdrawn. Restoration of South
Vietnam and Laos to regular MAP funding will help complete the
winding-down process.
Return of funding for military aid programs in South Vietnam and
Laos to the regular foreign assistance program will permit the ap-
propriate committees of Congress to judge our military aid programs
in these countries in a foreign policy context. Military assistance to
Cambodia and 'T'hailand is now being judged in this way, through
funding from the regular military assistance program. This change
will ensure that all U.S. military assistance to the four principal
Southeast Asian recipients is judged against security assistance needs
elsewhere-all of which have a direct bearing on this country's overseas
commitments and its foreign policy in general.
The shift of funding of military assistance to South Vietnam to the
Department of Defense budget symbolized the American assumption
of the war from the Vietnamese. A return of funding from the regular
military aid program will symbolize the reverse of that process, turning
the war back to the Vietnamese.
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Subsection (4)-Partial Payment in Foreign Currency for Military
Assistance
Subsection (4) increases from 10%o to 25% the partial payment in
foreign currency that must be made by certain recipients of military
aid in order to help offset the cost of official United States expenses
within the country and the costs of educational and cultural exchanges
with that country.
Section 514 of the Foreign Assistance Act, initiated in the Committee
last year, requires a foreign country which received military grant aid
6 el
or excess defense articles to pay, in its own currency, 10% of the
amount of the grant aid or, in the case of excess articles, an a,rnount
equal to 10% of the fair market value. The foreign currency obtained
in payment is available to meet U.S. obligations in the country and to
finance educational and cultural exchange programs. It does not apply
to a country where military aid is given in payment for base rights.
And, if the President decides, the payment requirement can be
waived if, without it, the United States does not need to make dollar
purchases of the local currency for financing U.S. operations in that
country. In practical effect, the payment requirement is not applied
unless it actually results in dollar savings.
There is no valid reason why recipient of military aid should not be
requised to pay at least one-fourth the value of the materials we give
them, especially if we have to buy their currency with dollars to pay
for the cost of U.S. operations in the country. This will help to im-
plement the Nixon Doctrine principle of requiring other nations to
shoulder a greater share of the burden for their own defense needs.
Having additional foreign currencies available will also lessen the
drain on our dollar resources and have a favorable impact on our
escalating balance-of-payments deficit.
As of May 18, 1972, agreements for local currency payments had
been signed, or agreed to in principle, with 26 countries. On the basis,
of the 10% requirement in existing law the Department of State
estimates that for the five months covered in FY 1972 there will be
collections, and, thus, savings to the taxpayers, of $6.6 million. The:
Department estimated that $11.8 million would be collected in FY
1973 at the 10% rate. The Committee's action to increase payment
to 25% effective July 1, 1972, will increase that amount substantially.
Subsection (5)-Limitation on Availability of Funds for Military
Operations
Subsection (5), sponsored by Senator Case, adds a new section 515
to the Foreign Assistance Act which would require specific Congres-
sional authorization before funds from any U.S. Government agency
or official could be made available "for the purpose of financing any
military operations by foreign forces in Laos, North Vietnam, or
Thailand, outside the borders of the country of the government or
person receiving such funds. . ." In addition, the amendment would
require the President to make available to the Congress copies of any
agreements and other information bearing on such military operations.
The amendment is not intended, however, to infringe or restrict mili-
tary operations and exercises outside Southeast Asia which are re-
quired for self-defense purposes or which are pursuant to regional de-
fense arrangements, such as NATO, or other arrangements, such as
U.N. peacekeeping operations.
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 Approved For Release 2002/01/23 : CtRDP74B00415R000600090004-9
This amendment is an outgrowth of the "crazy quilt" financing
arrangements that have emerged from U.S. involvement in Indochina
and the conduct of cross-border military operations in that part of the
world. It is the same as a provision approved by the Senate in last
year's foreign aid bill, a provision which was deleted in conference.
The Committee still believes that this problem should be corrected
a.nd the door closed to possible repeat in the future of the type of
questionable activity that has occurred with the financing of Thai
forces in Laos.
Staff members of the Subcommittee on U.S. Security Agreements
and Commitments Abroad were in Laos and Thailand earlier this year.
Following are the sections of their report, severely censored by the
State Department, describing their findings concerning the Thai ir-
regulars in Laos, financed by the United States:
The program of Thai irregulars in Laos (known as the SGU
program for Special Guerrilla Units) provides for U.S.
support of tip to [deleted] battalions this fiscal year. That
remains the goal, but because of difficulties in recruitment in
this fiscal year only [deleted] battalions at the most will be
raised. Each battalion is supposed to have a strength of 550
risen, but the infantry battalions, when deployed, are run-
ning at about [deleted] each and the artillery battalions at
about [deleted].
"At the time of our visit, there were [deleted] Thai ir-
regular infantry battlaions in Laos and [deleted] on leave in
Thailand. Of the [deleted] in Laos, [deleted] were in [deleted],
[deleted] in the [deleted] and [deleted] at [deleted]. There were
also [deleted] artillery battalions deployed. The total force
level of Thai irregulars present for duty in Laos was [deleted].
A total of [deleted] other Thai were either on leave, AWOL,
wounded, missing in action or on temporary duty. When we
were in Laos there were [deleted] additional Thai irregulars
in training in Thailand.
The Thai Government continues to treat the program as
a sensitive subject, insisting that the numbers involved be
kept secret. The United States cites the Thai attitude as the
reason it, too, refuses to permit disclosure of the details of the
progrra.m. The Royal Lao Government, however, has a
different approach. In it Voice of America interview with
Prime Minister Souvanna Phouma on January 14, the fol-
lowing exchange took place:
The reporter: "Mr. Prime Minister, we know that there
are roughly 6,000 Thai troops in direct support of the Moos,
mainly artillery. Have you asked for more Thai troops to
come in and support these people?
Souvanna Phouma: "They are volunteers, not regular
troops."
The reporter: "I understand that sir . we understand
that an estimated 6,000 additional Thai are preparing to
come to Laos."
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 Approved For Release 2002/01/ : CIA-RDP74B00415R000600090004-9
Souvcnna Phouma: "We have fixed a limit of 25 or 26
battalions of volunteers. Actually, I think we have only 15
or 16 battalions. Therefore, it is necessary to add more . . .
that is to say in concurrence with the Americans we have
planned for 25 to 26 battalions . . . up to the present time
we have only been able to form 15 or 16 battalions. It's the
complement to this group that will be coming."
The reporter: "Can you tell me how many volunteer Thai
troops you expect to be operating in Laos by May 1?"
Souvanna Phouma: "In addition to the 16 battalions, we
will have about 5 or 6 more . . . they can't be called Thai
battalions. We must call them volunteer battalions."
The irregulars are recruited by the Royal Thai Army from
all over Thailand. The Army is also supposed to recruit
cadre of officers and noncommissioned officers on a volunteer
basis. Each Thai irregular infantry battalion is supposed to
have [deleted] cadre from the regular Thai Army, [deleted]
officers and [deleted] noncommissioned officers, and each
artillery battalion is supposed to have [deleted] cadre from
the regular army.
When we visited one of the Thai irregular training camps
with the Thai Army General from the Thai [deleted] Head-
quarters at Udorn, we interviewed two Thai irregulars
through an interpreter. One was a private, and he told us that
he had volunteered because [deleted]. The other was a non-
commissioned officer. He told us that [deleted]. At the camp,
we asked whether the officer and NCO cadre in the program
were volunteers. We were told that [deleted], that they
served for a year, that they were then rotated out of the
program and [deleted], and that no special effort was made
to recruit ethnic Lao as distinct from other Thai.
We were told subsequently in Bangkok that [deleted].
U.S. officials who work with the program are well aware of
the importance of the distinction between volunteers and
nonvolunteers [deleted] because of the legislative prohibition
against U.S. support of third-country. forces in Laos. They
thus emphasize that the Thai personnel including cadre from
the regular Army serve in Laos under the overall command
and control of the Royal. Lao Government. They also con-
tend that the regular Army cadre resign from the Army when
they join the program, although [deleted].
The Thai irregulars are paid in Thai baht. The payment is
made by the CIA in Udorn to officers of the Thai liaison unit
on the basis of strength figures submitted by Thai S-4's at
battalion level. In the case of the trainees in Thailand, the
money is paid to them at the camp by the Thai liaison unit.
After the trainees depart for Laos, there is a system whereby
the Thai liaison office can send allotment checks to the
families of soldiers or to personal accounts.
Thai irregular privates are paid 1500 Baht a month
($75) while regular Thai Army privates are paid 530 Baht
($26) a month. Lieutenants in the program are paid 2500
Baht ($125). In addition, irregulars receive a bonus of 2400
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 Approved For Release 2002/01/23 : CI ARDP74B00415R000600090004-9
'la-lit ($120) at the end of their tours. If they reenlist, they are
paid a bonus of 1.200 Baht ($60) and are given 200 Baht ($10)
a month in additional pay during their second tours. The
cost of a battalion per year is estimated by CIA officials in
Washington at about $4 million. Thus, based on Souvanna's
estimate of 25 battalions, the cost of maintaining the present
Thai irregular force for a year will be approximately $100
-nil lion.
Like the Thai General, all Thai officers in irregular units
are given Lao names and Lao identity cards during their
service in Laos. They go to Laos in separate Thai units-
not individually-and serve in these units as long as they re-
main in. Laos. Because the enlisted men in the units are
volunteers, they are not subject to the same military dis-
cipline as those in the regular Thai army. Hence, there is
nothing that can be done to force them to remain with their
units either in training or after they are sent to Laos. Many
of them do leave, a total of [deleted] since the program began
or about 30%. (Thailand, Laos and Cambodia, January 1972,
A Staff Report Prepared for the Use of the Subcommittee on
U.S. Security Agreements and Commitments Abroad of the
Committee on Foreign Relations, United States Senate,
pages 18-20.)
It is virtually impossible for the Congress to know how much of the
taxpayers' money is being used to support these activities, as well as
others where the U.S. may be footing the bill for military operations
ostensibly initiated and controlled by another government. In this con-
nection, it will be recalled that only long after the fact did the Congress
discover that Philippine and Thai troops in Vietnam were being paid
at considrably higher rates by the U.S. Government than were Ameri-
can soldiers for comparable combat service.
The carrying out of such clandestine activities by the Executive
Branch-without the knowledge, let alone the approval of the
Congress-makes a mockery of our system of separation of powers.
This amendment will serve to restore a more proper balance be-
tween the Legislative and Executive Branches in such matters.
Sec. 5. Authorization of Security Supporting Assistance
This section amends section 532 of the Act to authorize the appro-
priation of $650,000,000 for security supporting assistance for fiscal
year 1973, of which $50,000,000 is earmarked for Israel.
The United States provides security supporting assistance to
selected countries or international organizations to promote or
maintain economic or political stability. In general, recipient countries
farce actual or threatened aggression which compels them to strengthen
their capacity to meet the resultant challenge to their security. The
use of Supporting Assistance funds in a given country depends on the
degree of importance of that country to U.S. foreign policy objectives,
particularly in terms of potential impact on U.S. national security
interests.
Sn pporting Assistance funds normally contribute to some degree to
the economic growth or to the developmental goals of the recipient
country, but the current U.S. motive in programming these funds is
neither economic growth nor development per se; rather, the specific
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 Approved For Release 2002/01/23I? CIA-RDP74B00415R000600090004-9
purpose is to stabilize the economic or political situation vis-a-vis a
given security situation. Supporting Assistance seeks, therefore, to
assist the recipient nation to overcome an immediate security threat
while avoiding simultaneous deterioration of the national economy as
much as posible.
Following is the Executive Branch's proposed allocation of the FY
1973 request for supporting assistance:
SECURITY SUPPORTING ASSISTANCE-SUMMARY OF PROGRAMS BY AREA AND COUNTRY, FISCAL YEARS 1971,
1972, AND 1973
]In thousands of dollars]
Fiscal year
Fiscal year
1972
Fiscal year
1973
1971 actual
supporting
assistance
estimated,
supporting
assistance
proposed
supporting
assistance
Asia, total --------------------------------------------------
510,318
564,400
833,800
Cambodia--------------------------------------------------------
70,000
37, 100
75,000
Israel-------------------------------------------------------------------------- 50,000
50,000
Jordan ---------------------------------------------------------
5,000
30,000
40,000
Laos
41, 450
47,000
49,800
Thailand -------------------------------------------------------
16,996
15,000
25,600
Vietnam I________________________________________________________
376,656
385,000
585,000
East Asia regional programs___________________________________216 300
8,400
Africa,total -----------------------------------------------
18,383
3,700
--------------
Nigeria----------------------------------------------------------
18, 163
3,400
--------------
Southern Africa Regional___________________________________________
220
300
--------
Malta----------------------------------------------------------------------------------------
Spain--------------------------------=------------------------------------------------------
9, 500
3, 000
Latin America,total ---------------------------------------- 2,827 ---------------------------
Guatemala ------------------------------------------------------ 45 ----------------------------
Haiti------------------------------------------------------------- 2,782 ---------------- ----------
U.N. force in Cyprus_______________________________________________ 4,800 2,400 4,800
U.N. Relief and Works Agency______________________________________ 13,300 -________-__-______---------
Program support and interregional activities__________________________ 23, 343 12, 600 23, 400
Since the criteria for providing military assistance and Supporting
Assistance are similar, countries which are principal recipients of
Supporting Assistance are also as a rule significant recipients of
military assistance through Military Assistance Service Funded
programs (Vietnam, Laos and Thailand in FY 1972; Vietnam and
Laos only in FY 1973), the Military Assistance Program (Cambodia,
Jordan, and, beginning in FY 1973, Thailand) or Foreign Military
Sales (Israel).
Section 6. Transfer Between Accounts
Section 6 amends section 610(a) of the Foreign Assistance Act of
1961 to prohibit the use of development assistance or disaster relief
funds for military aid or supporting assistance purposes. Last year
following the defeat of the House passed foreign aid bill H.R. 9910,
the Committee on Foreign Relations reported two bills to the Senate
which separated authorizations for economic or development aid
from military aid programs. The Committee has approved this
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 Approved For Release 2002/01/23 : OA-RDP74B00415R000600090004-9
provision in order to give further implementation to its strong view
that military and economic aid matters should be dealt with separately
The law now permits transfer of technical assistance funds, for example
to be used for military aid or supporting assistance, a tempting
loophole which could be used to augment military aid or supporting
assistance in circumvention of Congressional actions on authorization
and appropriation legislation. The Committee recommends that this
loophole be closed.
Section 7. Prohibition on Military Assistance or Sales to the Nations of
South Asia
Section 7 prohibits military grant assistance or sales under the,
Foreign Military Sales Act to the governments of Pakistan, India
(including Sikkim), Bangladesh, Nepal, Ceylon, the Maldive Islands,
or Bhutan. It would not prohibit commercial sales of either weapons,
supplies, or training by private industry.
The Committee approved this restriction in order to insure that
the U.S. government does not become any more deeply involved in the
military affairs of the nations of South Asia.
The following is a list of the military aid programs planned for
countries in this region in FY 1973:
1. Ceylon-$15,000 in grant aid for training
2. India-$2,000,000 in cash FMS sales and $234,000 in grant aid
for training
3. Nepal-$1,000,000 in cash FMS sales and $29,000 in grant aid
for training
4. Pakistan--$3,600,000 in cash FMS sales and $243,000 in grant
aid for training.
Section 8. Repeal of Authority Allowing Transfers of Foreign Aid Finds
to Other Agencies
Section 632( a) of the Foreign Assistance Act permits the transfer
of foreign assistance funds to other agencies as long as the funds are
used "for the purposes for which authorized." Using this authority
the Agency for International Development on April 1, 1972, transferred
to ACTION $2,600,000 in technical assistance funds to finance Peace
Corps operations abroad, after Congress had appropriated $10,000,000
less for Peace Corps operations than the amount requested. The
transfer was a deliberate effort to nullify Congress' action in cutting
the Peace Corps request. The change in law recommended by the
Committee will prevent such circumvention of the Congress in the
future. The repeal of this subsection will still leave ample authority
for reimbursement by A.I.D. to other agencies for services rendered,
or for commodities procured.
Section 9. Limitation on Assistance for Cambodia
The Foreign Assistance Act of 1971 imposes a ceiling of $341,000,000
for FY 1972 on United States obligations in, for, or on behalf of
Cambodia. This section sets a ceiling of $275,000,000 on such obliga-
tions for FY 1973. The purpose of such a ceiling was described by the
Committee last year as follows:
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 Approved For Release 2002/01/2: CIA-RDP74B00415R000600090004-9
The purpose of section 655 is to establish a ceiling on
overall U.S. expenditures, exclusive of air combat operations,
in, for, or on behalf of Cambodia during the current fiscal year
and to put the Congress in position to know in the future,
when money is being requested for Cambodia, how much is
actually being spent and for what purposes. In the past,
the cost of United States Government operations in some
countries has far exceeded the amounts which have been re-
quested and then authorized and appropriated. It is the
Committee's intention to see that this escalation of costs, not
only unauthorized by the Congress but also unknown to it,
does not occur in Cambodia. Section 655 is intended, there-
fore, to return to the Congress some measure of control
over what is actually spent by setting an absolute ceiling on
expenditures, a ceiling which applies to all Executive Branch
departments and agencies.
The ceiling recommended by the Committee and approved by the
Senate was all-inclusive, with the exception of the cost of combat
air operations over Cambodia, The report stated:
By setting an absolute ceiling on expenditures in Cain-
bodia, the Committee means to include all Executive
Branch expenditures except those relating to combat air
operations. The limitations would thus apply to the military
assistance P.L. progrmm, supporting assistance, excess defense
articles, I480, CIA operations, the administrative costs
of the various United States Government departments and
agencies who engage in activities to, in, for or on behalf of
Cambodia and, as in the similar provision relating to Laos
included in the Defense Authorization bill, II.R. 8687, the
costs to the United States of South Vietnamese ground
operations in Cambodia.
Later, the conference committee agreed to exclude the U.S. cost,
of Vietnamese operations in Cambodia for FY 1972. But both the
Senate and House conferees agreed that such costs should be included
in the ceiling for future years and that the Executive Branch should
furnish estimates on this and all other expenditures expected to be
made in Cambodia's behalf. The State Department has advised the
Committee that the Department of Defense is not able to estimate
the cost of future Vietnamese operations in Cambodia. The Com-
mittee is not satisfied with this response. It will turn to the General.
Accounting Office in a further attempt to obtain this information.
The table below gives data on estimated spending for certain programs
in and for Cambodia, in FY 1972 and FY 1973:
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 Approved For Release 2002/01/23 : q11-RDP74B00415R000600090004-9
CAMBODIA CEILING DATA
hn thousands!
Fiscal year Fiscal year
Program 1972 estimate 1973 request
1 . Military grant aid--------- ----------------------------- ------ -- ___ $179.7 $225.0
2. Excess a r t i c l e s ----- - --- - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - ------- 15.0 15.5
3. Supporting assistance- _ ___-__-___-_-_- 37.1 75.0
4. Public Law 480-------- -__-_ __---------- .---._ 14.6 30.0
5. Military aid- -- -, mission costs ------------ ----------- - -------- -__ ..__ 2.8 2.5
6. Economic aid mission costs_____________ -------- ----- -__-__ __----_--_-___-_ (1) (1)
7. Costs of Vietnamese operations in Cambodia------------ ---_------------------- (2) (2)
Total ------------------------------- ----------------------------- x249.2 348.0
I Not yet receives.
The Defense Department states that it cannot provide a realistic estimate of the costs of Vietnamese operations in
Cambodia.
I The fiscal year 1972 ceiling was $341,000,000, escluding combat air operations in Cambodia and the cost to the United
States of South Vietnamese military operations in Cambodia.
The PY 1972 ceiling was set at the amount requested. Actual
spew1mg is now estimated to be $92 million less than the amounts
preseu.ted to Congress. The Committee believes that the estimate for
FY 1973 is inflated also. It has allowed a ceiling of $275 million.
,Section 10. P'w'ci.gnt, Milt;tary,Sales
Subsection (1) authorizes an appropriation of $400,000,000 for
firiancing the foreign military credit sales in FY 1973 This is the
;;alne a.nlocmt Congress authorized and appropriated for FY 1972.
The Executive Branch requested an authorization of $527,000,000.
'I'sle Committee does not believe that an appropriation of this size has
been justified.
The iililitary credit sale;; program is carried out under the authority
of the Foreign Military Sales Act. Its purpose is to make credit
available to developing countries to enable them to purchase irtilitary
material and services from the United States, with up to ten years for
repavrneat.
Subsection (2) authorizes a ceiling of $550,000,000 for foreign
inilita,rv credit. sales in FY 1973, the same amount that Congress
approved for Fl 1972. Of the $550,000,000 ceiling, $300,000,000 is
earrna-rked for Israel, as it was in FY 1972.
A ceiling is necessary because military credit sales can be financed
corder the Foreign Military Sales Act by both direct credit extended
by the U.S. government and through U.S. government guaranty of
credit extended by private. banking institutions. Under the guaranty
program 25UJ% of the amount of the guaranty is set aside in a. reserve
account. Thus, unless an overall coedit ceiling were imposed the
$400,000,000 appropriation recommended could, theoretically, be used
to finance $1,600,000,000 in credit, sales to foreign countries. The
Executive Branch estimates that it will guarantee $102,000,000 in
private credit in PY 1973.
Following- is the Executive Branch's proposed military credit sales
prograin for FT 1973:
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 Approved For Release 2002/01/2 : CIA-RDP74B00415R000600090004-9
Fiscal yea r
1
FMS credit sales
Estimated,
fiscal year
Pro rased
fiscal 1973
East Asia and Pacific:
000
41
45
000
55
000
,
China--------------------------------------------------------
15,000
Korea
----------------------------------
,
15,000
,
25,000
----------
2,200
aylasi-
M
--
---------------------- 1--2 -5-00
---------
Regional program--- ----------------- -- ----------- --
8, 000 ,
Regional total ------- ------------------------------------------ 58,200
68,000 92,500
Near East and South Asia:
Greece------------------------------------------------------- 18,000
45,000 55,000
1) (1)
Israel (1)
(
)
1) (
Jordan ----------------------------------------------(r)
1
(
O ( )
Lebanon -----------------------------------------------------------------
Saudi Arabia______________ --------------------------------- ------(1) - 15,000 15,000
Turkey
------------------- 3
000
,
- ------ -
Regional program--------------- ---------------- -----
Regional total ----------------------------------------------- 606,200 402,000 443,000
Afric
a: (1) (1) (r)
Morocco---------------------'------------------ -- ---
Zaire 2,000 3,500
------------------------------------------------------- 13,200
Lati
____________ -___._---- 28,200 17,000 18,500
Regional total---------------------------------------
n America:
000 15,000
000 15
16
,
------
,
4
000
Argentina ------------------------------------------
,
-------------- -- -------- ------
-------------------------------------- 9
000
000 15
400 20
Bolivia---------------------------------------------------------------
,
,
,
Brazil-------------- ---------------------------------- - ----
000 5000
5
5
,
, 000
Chile
000 10,000
Colombia__-5,000 6,
------------------------ 2 000
- 4,000 -------------
Guatemala---------------------------------------------------
- 2: Mexico ----------------------------------------------------------------------------------- 5
000
,
Peru ---------------------------------------------------------- ------------
Urugua4,000 2,000 2,000
000
000 15
,
Venezuela--
---------------------------------------------- 7,400 10,
000
5
-
,
Regional program -------------------------
------------------------------ 50,800 63,000 75,000
Regional total
Gen
-----------------
eral costs----------------------------------- -- - --- - - - --- - ----- - -------------------------------------
Exc
ess defense articles reserve______________________________ --------------------------------
Worldwide total (TOA)--------------------------------------------- 743,400 550,000 629, 000
Classified.
'rho following table gives data on the entire Foreign v1ilitai' Sales
Program, cash and credit:
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 Approved For Release 2002/01/23 : Cbo-RDP74B00415R000600090004-9
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ADDITIONAL VIEWS OF SENATOR WILLIAM B. SPONG, JR.
I voted against reporting the Foreign Aid Authorization Bill for
Fiscal 1973. The bill, as reported from Committee, carries an authori-
zation of $1.7 billion, most of which is for military assistance programs.
I recognize the need for some of these programs, including the military
sales credits and supporting assistance for Israel. I do, however,
believe that in view of the projected budget deficit of $25 billion for
this year we cannot afford a large-scale foreign aid program.
My vote is consistent with votes cast last year. In 1971 I voted
against reporting H.R. 9910, although I did support the Committee
version of S. 2819 which authorized $1.2 billion for military assistance
type programs. I believed then and believe now that that was the
maximum amount which should be spent on these programs in a time
of financial difficulties for our country.
Our nation is overcommitted in many parts of the world. As I
have noted a number of times, we cannot be the world's financier or
the world's policeman, especially at a time when there are so many
pressing domestic needs.
On the other hand, I do not believe we can withdraw from the world
or that we should pursue a neo-isolationist policy. Indeed, we cannot
do that. As a result I have supported the regional development banks,
certain programs to provide humanitarian assistance and selected aid
programs. including the amendment to the State Department-USIA
authorization bill expanding our participation in international
narcotics control programs.
What we need at this time in our history is a middle course between
our present overcommitment and a potentially dangerous policy of
isolation. Instead of representing such a balance, however, the re-
ported bill represents only a continuation of the current policy of
overcommitment.
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