FOREIGN ASSISTANCE AND RELATED PROGRAM APPROPRIATION BILL, 1972

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000600100002-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 68
• Document Creation Date: December 12, 2016
• Document Release Date: December 18, 2001
• Sequence Number: 2
• Publication Date: January 25, 1972
• Content Type: REPORT

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Calendar No. 567
92D CONGRESS SENATE J REPORT
2d Session 1 No. 92-594
FOREIGN ASSISTANCE AND RELATED
PROGRAMS APPROPRIATION BILL, 1972
January 25, 1972.-Ordered to be printed
Mr. PROXMIRE, from the Committee on Appropriations,
submitted the following
REPORT
[To accompany H.R. 120671
The Committee on Appropriations, to which was referred the bill
(H.R. 12067) making appropriations for foreign assistance and related
programs for the fiscal year ending June 30, 1972, reports the same to
the Senate with amendments and submits the following explanation
of its recommendations.
Amounts in new budget (obligational) authority
Amount of amended budget estimate - - - - - - - - - - - - - $4,342,635,000
Amount of bill as passed House- - - - - - - - - - - - - - - - - - 3, 003, 461, 000
Amount of bill as reported to Senate--- - - - - - - - - - - - 2, 888, 635, 000
Bill as recommended to Senate compared to:
1971 appropriation-------------------------- -923,622,000
Amended budget estimate--------------------1,454,000,000
House------------------------------------ -114,826, 000
72-292 0-72-1
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SUMMARY TABLE: AMOUNTS IN NEW BUDGET (OBLIGATIONAL) AUTHORITY
Increase (+) or decrease (-),
Recommended Senate bill compared with-
Budget House by Senate Budget House
Title Item estimate bill committee estimate bill
I Foreign Assistance Act
activities---------------- $3, 085, 218, 000 $2, 162, 555, 000 $1,764,221,000 -$1, 320, 997, 000 -$398, 334, 000
II Foreign military credit sales- 510, 000, 000 510, 000, 000 400, 000, 000 -110, 000, 000 -110, 000, 000
III Foreign assistance (other) _ - _ 747, 417, 000 330, 906, 000 724, 414, 000 -23, 003, 000 + 393, 508, 000
IV Export-Import Bank of the
United States ------------ (7, 331, 747, 000) (7, 331, 747, 000) (7, 331, 747, 000) (______________
V Department of Labor ) (______________
Unemployment Trust
Fund--------------------- (--------------) (--------------) (Indefinite) (--------------) (---------------
Total --------------- 4,342, 635, 000 3, 003, 461, 000 2, 888, 635, 000 -1, 454, 000, 000 -114, 826, 000
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Page
Summary Table---------------------------------------------------
2
Capsule Summary-------------------------------------------------
4
General Statement------------------------------------------------
4
Burden Sharing---------------------------------------------------
4
Recognition of United States Assistance------------------------------
6
International Traffic in Illicit Drugs---------------------------------
7
Inspection and Audit of Foreign Assistance Activities------------------
11
Cooperation with Committee----------------------------------------
13
Title I:
World-Wide Technical Assistance Grants-------------------------
16
Alliance for Progress Technical Assistance Grants-----------------
19
Population Control--------------------------------------------
21
Assistance to Schools and Hospitals Abroad-----------------------
23
Contributions to International Organizations----------------------
26
Indus Basin Development Fund-Grants-------------------------
31
Indus Basin Development Fund-Loans--------------------------
31
Contingency Fund---------------------------------------------
32
Refugee Relief Assistance (East Pakistan Refugees) ---------------
33
Development Loans (Alliance for Progress) -----------------------
35
Development Loans (Other than Alliance for Progress)-------------
36
Agency for International Development, Administrative Expenses---_
38
Department of State, Administrative Expenses--------------------
39
Military Assistance (Grants)------------------------------------
40
Supporting Assistance------------------------------------------
42
Overseas Private Investment Corporation------------------------
43
Inter-American Social Development Institute---------------------
44
Title II:
Foreign Military Credit Sales-----------------------------------
44
Title III:
Peace Corps--------------------------------------------------
46
Ryukyu Islands, Army, Administration--------------------------
49
Assistance to Refugees in the United States (Cuban Refugee Program)--
50
Migration and Refugee Assistance-------------------------------
51
International Bank for Reconstruction and Development (World
Bank)------------------------------------------------------
52
Inter-American Development Bank------------------------------
53
Title IV:
Export-Import Bank of the United States------------------------
54
Title V :
Unemployment Trust Fund------------------------------------
57
Limitations, Language Changes, and Legislative Provisions Not Included
in House Passed Bill---------------------------------------------
60
(3)
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CAPSULE SUMMARY
A total of $2,888,635,000 in new budget authority is recommended
for the programs and agencies included in this bill. This compares to
$4,342,635,000 in amended budget estimates for the current year
and $3,812,257 appropriated in fiscal year 1971.
GENERAL STATEMENT
Although this bill contains most foreign economic assistance and
some foreign military assistance, it contains but a portion of the total
funds committed yearly by the United States to the development and
security of other nations. This fact is best illustrated in the case of
Public Law 480, contribution of foodstuffs, funds for which are appro-
priated to the Department of Agriculture ($1.3 billion) and other
military assistance, which is appropriated in the Department of
Defense and Military Construction appropriation bills ($2.8 billion).
The question of exactly what is and what is not foreign assistance is
a debatable one; however, in an effort to provide the Senate with
complete and comprehensive information, an inclusive ten-year table
has been prepared by the General Accounting Office on selected pro-
grams and may be found on page one of the hearings. Using this table
as a reference it can be seen that, excluding the cost of United States
military forces but including such agencies and programs as the Export-
Import Bank and the cost of the International Sugar and Coffee Acts,
the overall value of anticipated requests for United States assistance
abroad for fiscal 1972 is estimated at $13.7 billion. This is an increase
of slightly more than $3 billion over the average amount appropriated
for these same programs over the last ten years.
BURDEN SHARING-A FAIR SHARE FOR THE
UNITED STATES
The committee is fully aware of the unanswered need for develop-
ment assistance in the underdeveloped countries of the world and is
prepared to support the United States' shouldering a "fair share" of
this and other international responsibilities.
It should now be abundantly clear, however, that what was a
"fair share" for the United States twenty-five or even five years ago
is not a "fair share" today. In the President's Economic Message of
September 9 he ably summarized the economic realities involved when
he stated :
For a quarter of a century now, since the end of World
War II, America has borne the principal burden of free
world defense, of foreign aid, of helping old nations back
onto their feet and new nations to take their first, some-
times faltering steps. We have paid out nearly $150 billion
in foreign aid, economic and military, over the past 25 years.
We have fought two costly and grueling wars. We have
undergone deep strains at home, as we have sought to
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reconcile our responsibilities abroad with our own needs
here in America. In this quarter century America has given
generously of itself and of its resources, and we have done
this because we are Americans and America is a good and a
generous nation. In the years ahead, we will remain a
good and a generous nation-but the time has come to give
a new attention to America's own interests here at home.
Fifteen years ago a prominent world statesman put this
problem that we confronted then in a very effective way. He
commented to me that world trade was like a poker game in
which the United States then had all the chips and that we
had to spread them around so that others could play. What
he said was true in the 1940s. It was partially true in the
fifties, and also even partially true in the early sixties. It is
no longer true today. We have generously passed out the
chips. Now others can play on an equal basis-and we must
play the game as we expect and want them to do.
We must play, that means, the best we know how. The
time is past for the United States to compete with one hand
tied behind her back.
This new era is a time of new relationships in the world;
of a changed balance of economic power; of new challenges
to our leadership and to our standards of living.
The committee has considered and rejected the adoption of any
rigid or arbitrary standard. It has, however, noted that the United
States' share of the operations of the International Monetary Fund
is 23.2 percent; of the total capital of the World Bank, 26.6 percent;
and of the operating funds of the United Nations, 31.5 percent. While
these percentages were reached under different formulas, they all
sought to equitably achieve "burden sharing" with due consideration
to the economic capacity of the nations concerned.
As a general rule it is the sense of the committee that a "fair share"
for the United States should not exceed 20 to 30 percent of true
multinational programs, and it is within this range that it shall
endeavor to allocate United States contributions to international
organizations and financial institutions beginning with fiscal 1973.
As a move in this direction, United States contributions to multi-
national organizations and financial institutions in this bill have been
limited to 333s percent with the following exceptions:
Inter-American Development Bank 1 Percent
Paid-in capital------------------------------------------------ 37.5
Callable capital-----------------------------------------------
--------- - -- -------------------------- 4
.0
Fund for Special Operations (soft loans)__________________________ 472.5
35. 7
United Nations Development Program------------------------------- 37 7
United Nations Children's Fund____________________________________
United Nations Population Program--------------------------------- 50. 0
- _ - _ - _ _ -- --- -- 78. 0
United Nations Fund for Drug Abuse Control------------------------
United Nations Food and Agricultural Organization (World Food Pro= 51.0
------------------------------------------
gram) -------------
United Nations Relief and Works Agency (Arab refugees) -------------- 55.0
55. 0
Pakistani Refugee Relief------------------------------------------
United Nations Force in Cyprus------------------------------------- 40. 0
Indus Basin Development Fund------------------------------------- 41. 0
1 IDB computation based on proposed replenishment.
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RECOGNITION OF UNITED STATES ASSISTANCE
For more than a quarter of a century the American taxpayer has
borne the overwhelming part of the load of defending the Free World
and assisting those in a less favored economic position than him-
self. This unstinted effort has sapped the Nation of well over a
trillion dollars in treasure and a cost in blood and strife that cannot
be reckoned. These sacrifices without parallel in recorded history
have been borne with surprisingly little complaint and have favored
both friend and former foe with virtually an even hand.
This is a well known record and one in which our people can take
justifiable pride. It so happens, however, that there are those who,
perhaps unthinkingly, belittle this generosity by unfavorable compari-
sons to the effort made by others in certain specified but limited areas
of assistance. The committee has tired of this distorted approach
which most often comes by comparing the percentage of economic
assistance to gross national product without any effort to identify
programs closely tied to former colonies or bilateral trade programs,
and a failure to point out the very real value of defense costs assumed
by other nations. Statistical information is not readily available con-
cerning assistance to former colonies or trading partners; however, it
is interesting to compare the burden of defense costs computed in the
same manner as development assistance for each country held out as
a leader in the latter field:
Contributions to
Percentage of
Percentage of
development
assistance
gross national
product'
Defense costs
gross national
product. f
France_____________________________________
$950,000,000
1,24 3
$5,900,000,000
4.0
Netherlands________________________________
196,000,000
1.42
1,096,000,000
3.5
Australia___________________________________
202,000,000
1.12
1,127,000,000
3.4
Belgium___________________________________
120,000,000
1.23
695,000,000
2.8
Portugal___________________________________
31,000,000
1.02
3 400, 000, 000
6.3
Canada------------------------------------
-
-
346,000,000
.77
1,906,000,000
2.4
Denmark
-
59,000,000
.62
368,000,000
2.3
Sweden____________________________________
117,000,000
.73
1,129, 000, 000
3.6
United Kingdom_____
447,000,000
1.06
5,767,000,000
4.9
Norway------------------------------------
37,000,000
.59
3 375, 000, 000
3.4
West Germany______________________________
599,000,000
.80
6,103, 000, 000
3.3
United States_______________________________
3,050,000,000
.61
77 827, 000,000
8.0
Japan --------------------------------------
458,000,000
.93
1,582,000,000
0.8
Italy ---------------------------------------
152,000,000
.79
2, 499, 000,000
2.7
Switzerland________________________________
30,000,000
.66
413,000,000
2.0
Austria____________________________________
19,000,000
.67
3165,000,000
1.2
r Source: Organization for Economic Cooperation and Development as of June 28, 1971.
= Source: Economic Data Book for Countries of Europe, Statistics and Reports Division, Agency for International Develop-
ment, September 1971.
3 Indicates estimate.
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INTERNATIONAL TRAFFIC IN ILLICIT DRUGS
The committee has been greatly concerned with the vicious problem
of drug addiction-not only in the United States but throughout the
world. It has earnestly considered the possibility and even expressed
a willingness to eliminate all assistance to countries recalcitrant in
carrying out strict and effective international controls. A special
hearing was held by the committee's Foreign Operations Subcom-
mittee with the Director of the Bureau of Narcotics and Dangerous
Drugs on June 30, 1971 (pages 577-616 of the hearing record) in
which the matter was fully discussed.
Subsequent to the June 30 hearing, in a letter to the subcommittee
dated July 12, 1971, from the Director to the Chairman, the problem
was further detailed by country and a pertinent extract of this letter
follows:
The reality of drug abuse as a major social and public
health problem has created an awareness and response here
in the United States, that has just begun to be reflected in
changing attitudes throughout the world.
All countries where opium is produced legally or illegally are
potential sources for the international illicit narcotic trade.
For this reason a system of international narcotic control, as
embodied in the Single Convention on Narcotic Drugs of 1961
is necessary and is supported in principle by most nations.
Actual response to the drug problem varies from country
to country depending on the amount of drug abuse and on
administrative or other resources available within the country
for control purposes. The efficacy of the international nar-
cotic control system rests on internal control within indi-
vidual countries and on compliance with treaty obligations
regulating international trade.
The following countries are producers of opium: India,
Turkey, USSR, Iran, Pakistan, Japan, Yugoslavia, Burma,
Laos, Thailand, Afghanistan, Mexico and (reportedly)
Nepal. Opium from Turkey, Mexico, Burma, Laos and
Thailand is known to be a source of heroin for the. U.S.
market. Today's rapid transportation systems make almost
all countries potential transit points in the illicit traffic.
France, Germany, Italy and Spain; South America, Latin
America, Mexico and Canada are of continuing concern to
the U.S. as transit points for illicit narcotics.
The countries of most immediate concern to the United
States have been France, Mexico and Turkey.
France, Mexico and Turkey.-The Turkish Government
has established two major narcotic law enforcement organiza-
tions including rural and municipal police. Strict licensing
legislation has passed the National Assembly of the Turkish
parliament and is now under consideration in the Senate. It
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is expected that this legislation will become law by the end
of July. On June 30, 1971, the Prime Minister of Turkey
announced that opium would no longer be permitted to be
produced in Turkey after 1972. The Turkish police are
cooperating effectively with U.S. Agents in making seizures
of illicit narcotics and arrests of traffickers.
As cooperative programs with France, Mexico and Turkey
show promise of definitive results, attention has turned to
Southeast Asia and the rising heroin addiction among U.S.
military personnel in that area. Drug production and use
have long been a part of the Asian scene. In what is probably
the most extensive area in the world of illegal production, the
so-called "golden triangle" where Burma, Thailand and
Laos converge, opium has been the sole cash crop of the
inhabitants for nearly two centuries. This area has not been
under the effective control of any government for years.
South Vietnam, Thailand and Laos.-Programs to curtail
and control illicit narcotics are being launched in South
Vietnam, Thailand and Laos with our encouragement and
support. Wherever assistance under United Nations auspices
will help make controls more effective, we will support a
multilateral approach. It is too soon to estimate results from
these programs or what will finally be needed to cope with
the very difficult problems of narcotics control in Southeast
Asia.
The following countries, in addition to Mexico, France
and Turkey, have internal problems with production, illicit
traffic or consumption which in turn are related to inter-
national illicit traffic.
South America is the source of the illicit cocaine entering
the U.S. and in recent years, Europe and the Near East.
The cocaine is processed from coca lilants grown in the
Andes Mountain regions of Chile, Bolivia, Peru, Ecuador and
Colombia. Bolivia produces the largest volume of coca leaf
but most of the cocaine production is from clandestine
laboratories located in Chile, Peru and Ecuador. Latin
America and the Caribbean are important as key transit
areas in the flow of heroin from Europe to the United States
and cocaine from South America. Intelligence on the flow of
heroin from Southeast Asia through South America and
Latin America is inconclusive, but indications are that it
may be considerable.
South American and Latin American legal controls on
heroin and cocaine vary from adequate to inadequate. Even
where laws are adequate, enforcement may be ineffective
because of limited resources or other constraints such as
organization, training and political support. There has been
little discernible progress toward effective drug control in
either the source countries or the transit countries in recent
years.
Afghanistan.-Already a source of significant amounts of
illegal drugs, Afghanistan has the potential of becoming one of
the leading suppliers. Both opium poppies and cannabis are
grown there illegally, and the opium and hashish derived
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are smuggled elsewhere-partly to neighboring Iran. Although
there are anti-narcotics laws on the books, enforcement has
not been effective and Kabul's colony of drug-using foreign
residents is permitted to pursue its life style virtually un-
disturbed. If Afghan authorities are to alter this situation
and embark on a vigorous antinarcotics program, effective
control in those areas of the country inhabited by tribal
groups must be established.
Pakistan.-Like Afghanistan, Pakistan is a source of
illegal drugs. Opium produced illegally there will become more
of an international concern as Turkish opium disappears from
the illicit market. Large areas of West Pakistan are also tribal
territories without effective central government control.
Divided responsibility and the government's preoccupation
with other problems inhibit Pakistan's anti-narcotics efforts.
Like Afghanistan, if Pakistan is to alter this situation,
effective control in those areas of the country inhabited by
tribal groups must be established.
Lebanon.-Although it is not a known producer of opium
and has no serious addiction problem. Lebanon plays an
important role in the international illicit drug trade. Opium
and morphine base are smuggled into the country through
Syria or by sea from Turkey itself, and converted into mor-
phine base or heroin. Morphine base is transported to
laboratories in Southern France for conversion into heroin,
while heroin produced in Lebanon may be shipped to South
America for eventual shipment to the United States. Much
of the 200 tons or so of hashish produced annually in Lebanon
finds its way, mixed with some opium, to the United Arab
Republic. Lebanese anti-narcotics agencies are willing to
cooperate with BNDD representatives and some joint pro-
grams are underway. They have asked for additional support
in the form of equipment and training. Poor internal security,
the presence of about 3,000 armed guerrillas inside its
borders, lack of religious and cultural homogeneity, and the
probable involvement of important land owners in hashish
production are all factors which make Lebanon's anti-
narcotics program more difficult.
Nepal.-Information on the production and transportation
of illegal drugs in Nepal is sketchy and comes mostly from
Indian sources. It indicates, however, that there is growing
illicit traffic in cannabis out of Nepal. Some illegal growing
and exporting of opium has also been reported recently. The
Nepalese Government has used licensing of producers and
production taxes in an effort to restrict cannabis output, but
without much success. Efforts are being intensified to
establish contact with the Nepalese Government on the
matter of getting its cooperation in international narcotics
control.
Thailand.-Illicit drug traffic in Thailand involves two
major aspects: opium growing in the highlands and the
trafficking across the country from the tri-border growth area
into Bangkok and other transit.points. The Thai Govern-
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ment must find ways to deal effectively with the tribal peoples
growing opium; the large consumer population is now believed
to exceed 300,000 and the relatively unhindered illicit traffic.
Representatives of the U.S. Embassies are meeting with
Thai Officials to find means toward a total solution for these
problems.
Burma.-Burmese illicit dru activity originates from the
insurgency-controlled hills of Northeastern Burma. Burmese
opium production probably exceeds 400,000 kilograms
annually and supplies much of the illicit trade in Southeast
Asia. The Government of Burma has not responded positively
to proposals for additional efforts to control its opium
problem.
Laos.-The legislature in Laos is actively considering a law
to prohibit poppy cultivation. Another useful step would be
for the government to ratify the 1961 Single Convention. It
is essential that both these steps be taken as soon as possible
as a basis for programs to reduce and finally halt illicit drug
production and traffic in this country.
The Secretary of State appeared before the subcommittee on
September 8 and expressed satisfaction with the progress being made
through special diplomatic initiatives. In addition, the Bureau of
Narcotics and Dangerous Drugs advised the subcommittee on Sep-
tember 7 that "there is no country that is not cooperating fully, or
giving the impression of cooperating fully, with United States efforts
to combat the illicit international traffic in dangerous drugs . ."
The committee considers these appraisals of the current situation
overoptimistic. However, with the knowledge that the President has
full authority to cut off or suspend assistance to problem countries,
the committee has elected not to include restrictions in this year's
appropriation bill.
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INSPECTION AND AUDIT OF FOREIGN ASSISTANCE
ACTIVITIES
The committee supports a strong and continuing program of
evaluating the efficiency, cost effectiveness and fiscal integrity of
foreign assistance and believes that information in this regard should
be readily available to responsible officials of both the Executive
and Legislative Branches. Resources committed to obtaining this
information should, however, bear a direct relationship to the need,
the use and the benefits derived from its acquisition.
Among those agencies investigating, evaluating and auditing foreign
assistance are the following:
General Accounting Office.-In connection with foreign assistance,
the Comptroller General's broad authority as the investigative am of
the Congress is primarily assigned to the General Accounting Office's
International Division. During fiscal 1971, this office had 144 members
of its staff who were engaged in reviewing various phases of foreign
assistance. The committee has been greatly impressed by the high
quality of the 42 formal reports relating to foreign assistance which
the General Accounting Office has submitted to the Congress during
fiscal 1971. In addition, the committee has relied extensively on the
knowledge.and skill of the General Accounting Office in its hearing
and review of activities funded under the Foreign Assistance
Appropriations Bill.
Military Assistance and Sales.-Responsibility for monitoring and
evaluating the Military Assistance and Military Credit Sales Programs
is assigned to the Department of Defense, the military services and
unified commands and is carried out through inspection, evaluation
and audit teams. The Department's record keeping of these activities
relates to functional areas rather than specific appropriations. For
this reason, it has been impossible to break out personnel and other
specific costs as between the Military Assistance Program, the Military
Credit Sales Program and Military Assistance Service Funded Pro-
gram. The Department does, however, report that during 1971, 1,739.3
man-years costing $49.9 million were expended in audit work alone
related to these activities combined. The investment of resources of
this magnitude should insure effective and efficient management of
these programs. The committee makes the observation that these are
perhaps the most expensive and extensively audited programs of
which it has knowledge and expresses the hope that its continuing
examination of the Foreign Military Assistance and Military Credit
Sales Program will indicate that such a commitment of funds and
manpower is justified.
Agency for International Development.-The committee notes that
those formulating the programs and providing the day-to-day manage-
ment of the Agency for International Development's activities have
at their a personnel. This szable staff operating auditors, der investigators
Auditor Generalsof
(11)
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12
the Agency for International Development performed 1,212 audits
and 322 investigations for fiscal 1971, in addition to carrying on a
broad new program designed to promote management effectiveness.
The committee will carefully review this activity in its fiscal 1973
hearings.
Peace Corps.-The Peace Corps has an internal program review and
evaluation staff of ten which made extensive reviews of programs in
seventeen countries in fiscal 1971. In addition, its internal audit
operation conducted twenty-seven audits. The combined cost of
these two activities was $322,000 which Peace Corps officials believe
provide an acceptable level of fiscal and program review. This is one
of several illustrations which have led to the committee's conclusion
that the Peace Corps' original reputation for cost consciousness is
being maintained.
Inspector General of Foreign Assistance.-This office which is charged
with over-all review of foreign assistance was created by subsection
624(d) of the Foreign Assistance Act of 1961. This same Act also
sought to insure timely and unrestricted congressional access to
information gathered by the Inspector General's Office in carrying
on its normal activities. During fiscal 1971, the Inspector General's
Office with an assigned strength of 36 and a budget of $1,112,000 com-
pleted 69 reports. The unwillingness of the Inspector Genera) to share
with this committee, on a timely basis, the information obtained by
his Office and requested by the Chairman of the Foreign Operations
Subcommittee has so limited his usefulness that the committee recom-
mends a limitation on funds for the operation of his office. (See 1972
Foreign Operations hearings, pages 535-538.)
These funds are acquired by reimbursements from program funds
and the committee action is detailed as follows:
Actual fiscal
year1971
Proposed
fiscal year
1972
Committee
recommenda-
tioe
Agency for international development:
Technical assistance-------------------------------------------
$35,000
$250,000
$150,000
Supporting assistance----------------------------------- ------
200,000
250,000
150,00
Worldwide development loans----------------------------------
377,000
300,000
175,00
Alliance for progressloans -------------------------------------
300,000
200,000
125,
Subtotal,AID----------------------------------------------
912,000
1,000,000
600,000
Military assistance program----------------------------------------
175, 000
175, 000
187,500
Peace Corps-----------------------------------------------------
25,000
25,000
12,500
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COOPERATION WITH THE COMMITTEE
With the delay and controversy surrounding this year's Foreign
Assistance Authorization Act, the level of fiscal 1972 funds has
been in a state of constant flux and it has, therefore, been extremely
hard for those departments and agencies funded under this bill to
properly manage these resources. Under these difficult circumstances
the Committee acknowledges with appreciation the fine assistance and
cooperation it has received from most agencies concerned in responding
to the Committee's requests for detailed and backup information to
support budget estimates. In this regard, the Agency for International
Development is deserving of special recognition. On the other hand,
the Committee has encountered constant and continuing difficulty in
obtaining sufficient and timely information from the Department of
Defense and the Department of State's Inspector General of Foreign
Assistance to support minimal Committee requirements. Considering
the fact that almost half the funds in this bill relate to activities and
responsibilities of the Department of Defense the present level of coop-
eration, approaching indifference, which both the Committee and the
General Accounting Office have experienced from this Department is
not only unacceptable but intolerable.
By letter to the Secretary of Defense and through conferences
between the staff of the Committee and representatives of the Depart-
ment of Defense, the Chairman of the Subcommittee is currently
seeking a solution to this serious problem.
(13)
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14
ECONOMIC AND MILITARY ASSISTANCE-AVAILABILITY
OTHER THAN NEW FUNDS FOR FISCAL YEAR 1972
Availability other than new funds for
fiscal year 1972
Unobligated
balances Other funds funds
brought available in the
forward (estimated)' Total pipelines
Economic assistance:
Worldwide, technical assistance_______________ ___ $2,327 $12,945 $15,272 $103,669
Alliance for Progress, technical assistance_- _ _ _ _ _ _ _ _ 445 4,105 4,550 41, 858
Programs relating to population growth--______-___ ______________________--____________.____
American Schools and Hospitals Abroad___________ 16 ______________ 16 21,850
Suez Canal ------- ------- ---------------------------------------- ------ --- ------ ------------------
International organizations and programs---------- 147 135 282 96,672
Indus Basin Development Funds, grants -----------------------------------------------------
Indus Basin Development Fu nd,loans- _________________________________-------------------- 1,443
UNRWA (Arab refugees)------------ ------------------------------------------------------ -------------
Excess Egyptian Pounds ---------------------------------------------------------------------------
Contingency fund--------- _____________________ 466 1,300 1,766 16,987
Refugee relief assistance (East Pakistan Refugees) ------------------------------------------------ _________
Alliance for Progress, development loans___________ 1,493 75,200 76,693 905,420
Development loans______________________________ 75,479 205,300 280,779 806,579
Administration expenses:
AID--------- _----------------------------- 1,723 2,000 3,723 40,203
State ------------------------------------ 25 ------------- 25 6
Prototype desalting plant________________________ 20,000 -------------- 20,000 --------------
Military and supporting assistance:
Military assistance (grants)----------------------- 5,775 22,500 28,275 621, 86
Supporting assistance ____________________________ 2,721 47,000 49,721 456, 43
Subtotal, military and supporting assistance______ 8,496 69,500 77,996 1,078,729
Total, economic and military assistance__________ 110,617 370,485 481,102 3,113,416
' Consist of receipts, reimbursements, and recoveries estimated for fiscal year 1972.
1 For military assistance (grants) consist of undelivered balances as of Sept. 30, 1971. For all other items, consist o
unliquidated obligations as of Nov. !30,1971.
STATUS OF ECONOMIC AND MILITARY ASSISTANCE
PROGRAMS UNDER CONTINUING RESOLUTION
Percent of
continuing
Continuing Obligations, resolution
resolution Dec. 31, 1971 obligated
Economic assistance:
Worldwide, technical assistance_________________________________ $165,272 $95,532 57.8
Alliance for Progress, technical assistance________________________ 79,015 31,852 40.3
Programs relating to poppulation growth -------------------------- __________________--__--______-_____----
Americanschools and hospitals abroad -------- _------- ____----- 15,000 4,353 29.0
Suez Canal ---------------------------------------------------------------------------------------?-
International organizations and programs________________________ 41,282 14,085 34.1
Indus Basin Development Fund, grants -------------------------- 5,000 4,925 98.5
Indus Basin Development Fund, loans --------------------------- 6,000 6,980 116.3
UNRWA (Arab refugees)---------------------------- ---------------------------------------------------
Excess Egyptian pounds---------------------------------------------------------------------------?-
Contingen yfund_____________________________________________ 31,300 19,865 63.5
Refugee relief assistance (East Pakistan Refugees)________________ 100,000 _________-________-___-
Alliance for Progress, development loans_________________________ 226,693 51,386 22.7
Development loans____________________________________________ 530,779 58,831 11.1
Administration expenses:
AID----------------------------------------------------- 47,000 31,916 67.9
State --------------------------------------------------- 4,280 1,922 44.9
Subtotal, economic assistance----------------------------- --------- 1,251,711 321,647 25.7
M iiitary and supporting assistance:
Military assistance (grants)----------------- _------------------- 522,500 '419,600 80.3
Supporting assistance (grants)---------------------------------- 649,721 331,723 51.1
Military assistance (credit sales) -------------------------------- 400,000 35,000 8.8
Subtotal, military and supporting assistance -------------------- 1,572,221 786,323 50.0
' o fistsorneIe m ntsap'og'olddli
s nl' e a 1b of : D 6I3 ~-1
e
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TITLE I
FOREIGN ASSISTANCE ACT ACTIVITIES
FUNDS APPROPRIATED TO THE PRESIDENT
There follows a table comparing committee recommendations of
new obligational authority for programs and activities included in
Title I of the Foreign Assistance Act to budget estimates and House
allowances.
FOREIGN ASSISTANCE ACT, MILITARY CREDIT SALES, AND RELATED ACTIVITIES
[In thousands of dollars]
TITLE I-FOREIGN ASSISTANCE ACT
ACTIVITIES
Authori-
Fiscal year zation
1971 (Conference House
appropria- Budget action) appropria- Com-
tions estimate (Passed by Lions bill mittee
(NOA) (NOA) Senate) (as passed) action
Economic assistance:
Worldwide, technical assistance_______________ 166,150 232,929 175,000 150,000 165,000
Alliance for Progress, technical assistance___--_ 82,875 129,745 88,500 75,000 80,000
Programs relating to population growth________________________________ (125,000) 50,000 125,000
American schools and hospitals abroad -------- 12, 895 10,175 30, 000 17, 200 20,000
Suez Canal--------------------------------------------------------- (10,000) ------------------------
nternational organizations and programs-----_ 103, 810 141, 000 138, 000 41, 000 138, 000
Indus Basin Development Fund, grants-------- 4,-925 15, 000 15, 000 7,500 15, 000
Indus Basin Development Fund, loans--------- 6,480 12,000 ------------ 6,000 12,000
UNRWA (Arab refugees)--------------------- 1,000 ------------ 1,000 ------------------------
Excess Egyptian pounds ----------------------------- -(1,000)------------------------
Contingency.fund------ _-------------------- 22,500 100,000 30,000 30,000 30,000
Refugee relief assistance (East Pakistan Refu-
gees) ------------------------------------------------ 250,000 250,000 175,000 175,000
Alliance for Progress, development loans---- __ _ 287, 500 235,000 206, 500 150, 000 50, 000
Development loans__420,000 400,000 250,000 250,000 150,000
Administration expenses:
AID___________________________________ - 51,000 60,200 50,000 54,600 50,000
State---------------------------------- 4,100 4,555 ------------ 4,255 4,221
Subtotal, economic assistance__--------- 164,335 1, 590604 1,234,000 1, 010, 555 1,014,221
Military and supporting assistance:
Military assistance (grants)___________________ 690,000 705,000 500,000 552,000 350,000
Supporting assistance________________________ 569,600 764,614 618,000 575,000 400,000
Subtotal, military and supporting assistance-- 1, 259,600 1,469,614 1,118, 000 1,127, 000 750, 000
Other:
Overseas Private Investment Corporation, re-
serves----------------------------------- 18,750 25,000 ----- -- 25,000
Inter-American Social Development Institute
(limitation on obligations)------------------ (10,000) (11,000) ------------------------ (11,000)
Total, title I, Foreign Assistance Act------- 2,442,685 3,085,218 2,352,000 2,162, 555 1,764,221
TITLE II-FOREIGN MILITARY CREDIT SALES
Foreign military credit sales ---------------------- 700,000 510,000 400,000 510,000 400,000
Grand total, Foreign Assistance Act military
credit sales, and related activities--------- 3,142, 685 3,595,218 2,752,000 2,672,555 2,164, 221
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ECONOMIC ASSISTANCE
WORLD-WIDE TECHNICAL ASSISTANCE GRANTS
(OTHER THAN ALLIANCE FOR PROGRESS)
Appropriation, 1971_________________________________________ $166,750, 000
Amended budget estimate, 1972______________________________ 232, 929, 000
Authorization__________________________ 175,000,000
House allowance____________________________________________ 150, 000, 000
Committee recommendation_____________________________ __ 165, 000, 000
The committee recommendation of $165,000,000 is $1,750,000 less
than the amount appropriated in fiscal 1971, $67,929,000 under the
budget estimate, and $15,000,000 over the House allowance.
This new obligational authority when added to funds available from
reappropriated balances ($2,327,000), recoupments ($10,805,000),
and reimbursements ($2,140,000) will provide a total of $180,272,000
to finance this year's program.
Technical assistance is the primary means of assisting the people
of the developing countries to acquire, modify and generate the knowl-
edge, skills and institutions they require for their economic and social
growth and modernization. It is a deliberate effort to accelerate the
modernization process through which these nations are going.
Self-sustaining growth of a nation depends upon the effectiveness
with which it applies and exploits its natural recources, capital facili-
ties, and human resources. Technical assistance is designed to acceler-
ate the process by which people are educated, skills acquired, and
attitudes changed so that people can more effectively help themselves.
Technical assistance deals with the human side of the development
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process. Skilled Americans join to work with people of the develop-
ing countries, to transfer the knowledge and techniques essential to
development. Citizens from these countries are also brought to the
United States for training. Technical assistance attempts to foster
relationships and channels of contact between individuals, groups,
and institutions in the United States and the developing countries.
The United States has pioneered in developing technical assistance
concepts and programs. Technical assistance, as an organized govern-
ment activity, began in 1942 with the Institute of Inter-American
Affairs. The Point IV program, initiated by President Truman in his
inaugural address of 1949, challenged the American people to pool
their knowledge and energies with those of the peoples of the develop-
ing countries for the general betterment of mankind. These themes
were carried out in the 1950's by the Foreign Operations Administra-
tion and the International Cooperation Administration which were
followed in the 1960's by the Agency for International Development
(AID).
The committee would hope that much has been learned about the
complexities of the development process over the three decades of this
experience. The Point IV approach was dominated by simple, man-
to-man, "know-how, show-how" methods and relationships based upon ;
the view that we could transfer the knowledge and techniques of the
United States to the societies of Asia, Africa, and Latin America and
thus help the people of these countries move ahead in the use of
technology and the organization of human activities. -
Information presented the committee indicates AID's focus for the
70's is changing. In the future greater stress will be placed on activities
which improve the well-being of people, increase their ability' to
participate in and contribute to the growth and modernization of
their societies, and permit them to share more fully in the benefits of
technological, social, and economic progress.
AID has testified to the committee that it will respond to the
initiatives of the lower income countries on key problems identified
as the. most pervasive bottlenecks to their modernization and growth,
including major areas already recognized:
-inadequate food supply, both qualitatively and quantitatively;
-rapid population growth;
-provision of training facilities, particularly in the areas of manage-
ment and technical skills; and
-adaptation of industrial technology.
To address these problems the AID program employs three basic
types of technical assistance :
1. Institution-building. Institution-building has been one of the
primary aims of A.I.D.'s programs for more than a decade. It is
generally conceded that the success of the Green Revolution in South
and Southeast Asia is, in part, attributable to A.I.D.'s long-term
programs of assisting countries establish the extension, educational,
marketing and other institutions needed to encourage the use of the
new varieties.
The committee's 1972 recommendation will continue to support
significant institution-building efforts. Examples include:
-Continue to assist the network of eight agricultural universities
in India able" to conduct programs of teaching, extension and re-
search.
-Continue to assist the recently established Livestock Community
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of the Entente (a loose federation of five West African states) to
rationalize the breeding and marketing of cattle in order to profit
from the potentially large local market which is currently relying
on meat imports from outside Africa.
-Continue to promote improved local government administration
and services in the Philippines, including the establishment' of
additional Provincial Development Councils. U.S. technicians
work with national agencies, universities, private institutions, and
provincial governors.
The fiscal year 1972 technical assistance appropriation will permit
AID to maintain ongoing institution-building activities at present
levels.
2. Training. A.I.D. programs help provide people with formal
education, training in particular skills, and experience in modern
techniques, so that they can contribute to development by using their
new knowledge and skills and passing them on to others.
Over the life of A.I.D.'s training programs, more than 150,000
persons have been brought to the United States for training. About
10,000 trainees are slated to be trained in the current fiscal year.
Ninety-nine percent of A.LD.'s trainees have returned to their own
countries to assume positions of leadership. In Turkey, for instance,
returned A.I.D. participants include the former Prime Minister,
cabinet ministers, under secretaries, governors, mayors, judges,
members of the national assembly, directors of government enterprises
and leaders of labor unions.
3. Research. AID assistance helps solve development problems
through research and building research capacity in the developing
countries themselves. The FY 1972 appropriation will permit A.I.D.
to continue its relatively small scale but significant programs of
research in support of two kinds of activity:
-adaptive research aimed at modifying existing knowledge and
techniques to make them applicable to the special circumstances
of developing countries.
-developing and demonstrating how to put the adaptive research
findings into actual operation in specific country situations-
given the local resources, skills, policy and cultural constraints.
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Alliance For Progress Technical Assistance
--FY-1 I -'Ff t972
;Millions
200
AYAILABIIITIES
901101i10ATIQN M Tl901TV
1962 1963, 1964 1965 1966 1967 1966 1609 1970 0971 _ ?972 BOOGET ES 166010
ALLIANCE FOR PROGRESS TECHNICAL
ASSISTANCE GRANTS
Appropriation, 1971------------------------------------------ $82,875,000
Amended budget estimate, 1972------------------------------- 129, 745, 000
Authorization----------------------------------------------- 88,500,000
House allowance--------------------------------------------- 75,000,000
Committee recommendation---------------------------------- 80, 000, 000
The committee recommendation of $80,000,000 is $2,875,000 less
than the amount appropriated in fiscal 1971, $49,74,000 under the
budget estimate, and $5,000,000 over the House allowance.
This new obligational authority when added to funds available
from reappropriated balances ($445,000), recoupments ($3,805,000),
and reimbursements ($300,000) will provide a total of $84,550,000 to
finance this year's program.
To emphasize the special relationship between the U.S. and Latin
America, the Congress has authorized, each year since FY 1963, a
separate appropriation for technical assistance for the Alliance for
Progress. Throughout this period, AID has administered the technical
assistance programs for Latin America in the same manner as for the
rest of the world, and similar kinds of activities have been undertaken.
Assistance priorities in Latin America are examined within the multi-
lateral framework of the Inter-American Committee of the Alliance
for Progress (CIAP). U.S. technical assistance programs consequently
take into account our own priorities, host country needs and priorities,
and the contributions of other bilateral and multilateral donors.
The fiscal year 1972 technical assistance program for Latin America
as presented to the committee concentrates on education, agriculture,
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20
and population. Emphasis is also given to export development, tourism,
and the transfer of scientific and technological knowledge. Many of
AID's programs relate in some way to solving the serious problems
impeding Latin American development today: the rural-urban im-
balance and rapid urbanization.
Partners of the Alliance.-The Partners of the Alliance was estab-
lished by AID's Bureau for Latin America in March 1964. Since then,
forty-two United States state partnerships have been paired with
counterparts in nineteen Latin American and Caribbean countries.
Together they seek to stimulate and coordinate self-help programs in
Latin America's private sector.
The National Association for the Partners of the Alliance (NAPA)
has long believed that the Association and the individual member
states should rely less on direct government support and more on
support for its program activities from private organizations and
individuals. As a move toward this goal the NAPA has launched a
fund-raisin campaign to achieve increased participation and eventual
self-sustaining support by the private sector. The 1972 budget request
and the planned phasedown of AID support over the next four years
permit the Partners organization to meet its current costs and expand
its program without sacrificing its program objectives.
During the seven-year period of the Partners Program, material
and technical assistance valued at more than $13.3 million contrib-
uted by state partners and $2.7 by the Agency for International
Development has been channeled to the people at the grass-roots
level in Latin America. Of these funds, almost $3 million has gone into
education, over $10 million into public health, and the remainder
into agriculture, business, industry, and other programs.
Latin American Scholarship Program of American Universities.-
More than 700 Latin American scholars are scheduled to attend Ameri-
can universities in fiscal year 1971-1972 under this program which is
administered by the LASPAU, Inc., a voluntary association of 218
United States and 123 Latin American colleges and universities.
Participating universities customarily furnish the cost of tuition,
the student or his home country contribute the cost of transportation,
and all other remaining costs are borne by the LASPAU program
financed through Alliance for Progress Technical Assistance. The
Committee strongly supports the objectives of this program which is
designed to strengthen the teaching and research staffs of Latin Ameri-
can universities by providing advanced training in selected disciplines
and administrative functions. It further directs that the total fiscal
year 1972 program be maintained at the level of $2 million which was
obligated in fiscal year 1971.
While supporting the over-all program the Committee is disturbed
at the inordinately high level of support for individual participants.
These allowances substantially exceed funds available to most Ameri-
can students pursuing similar programs of instruction at their own ex-
pense. This is illustrated in the proposed student costs budget for
1972 which follows:
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UNIVERSITIES BUDGET FOR FISCAL YEARS 1971-72-
LATIN AMERICAN SCHOLARSHIP PROGRAM OF AMERICAN COSTS
40 graduating scholars who will receive Fall semester only (September 1971-January 1972) $56,940
master's degrees between September 1971 medicsubsistence 88 per student) travel in) United States ($23
and January r 1972. per student), books and materials ($112.50 per
student).
476 continuing scholars (from earlier waves: Academic year (September 1971-June 1972), subsistence 1,479,220
286 from wave VII: 190). ($2,400 per student), Insurance and medical ($175
per student), travel in United States ($45 per student),
books and materials ($225 per student), summer
school 1972 (250 students at $5( 0ryppIer student). )
($1,60perstud nt),insuranceandlmed 386,080
210 new scholars__________________________ Asubsistencli 0
ical ($100 per student), travel in United States ($23
per student), books and materials ($125 per student).
1,924,000
72anr(,0el-----------------------------------------------
________
-- -- ----------------- -- -
_________ _________________________________________________
Summer 1972 seminar (80 students) ---------------------------------------------
Subtotal - 1,940,240
Plus ------------------------------------- Merit language training scholarships (35 students5 51,870
international travel ($325 per student), homestay ($y~
per student).
The Committee directs that these costs be brought immediately
in line with the modest budgets of American students underwriting
the costs of their own education and pursuing a comparable course of
instruction. The General Accounting Office is hereby directed to
make a study to square and compare these student costs and render
a report to the Chairman of the Committee's Foreign Operations
Subcommittee by May 1, 1972.
POPULATION CONTROL
Appropriation, 1971 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(')
Budget estimate, 1972-------------------------------------
----- ----
000)
000
125
Authorization --------------------------------------------
,
($
,
000
000
50
House allowance ----------------------------------
,
,
000
000
125
Committee recommendation-------------------------------
,
,
The committee shares the concern of the Administration and the
legislative committees regarding unchecked population growth and
assigns a high priority to this important effort. The ramifications of
this problem have a retarding effect on all phases of economic develop-
ment. The broad base of support which this program has been ac-
corded in the past several years has resulted in a widespread and rapid
acceleration of action programs designed to reduce population pres-
sures. It is clear, however, that while substantial achievements are
being made, most of the work needed to come to grips with this vital
issue is still to be done.
It is without question that programs of economic development are
minimized by rapid population growth and that the effects of this
growth pervade every aspect of life-housing, education, the supply
and distribution of food, pollution and destruction of world resources,
1 $100 million earmarked and obligated from other appropriations.
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employment, rising expectation that remain unfilled, and unrest
among the young. It is vital that the impact of high population growth
rates on the whole spectrum of economic development must be
accurately assessed and clearly understood. Many nations of the
world cannot at present provide the resources necessary to meet basic
human needs for food, education, shelter and employment. Yet,
additional resources must also be found for essential improvements in
the levels of living and social services. The acuteness of this problem
can perhaps best be illustrated by the Government of India's estimate
which indicates that its annual population increase of nearly 15 million
demands 12,500 additional schools, 400,000 teachers, 2,500,000 houses
and 4,000,000 jobs each year.
AID has testified that technically and socially the world is now
better equipped to deal with this problem than at. any time in the past.
Recent research has produced new and better methods for contra-
ception and an increasing number of nations have initiated and
expanded family planning programs. It is noted that improvement in
the world food supply has provided some additional time in which
solutions can be found to challenge population growth and the eco-
nomic and social problems it engenders. It is further noted that the
tidal wave of population increase in the less developed countries
generated by the precipitous drop in death rates and continued high
birth rates provoked accelerated research response during the 1960's,
which could lead to substantial progress toward the resolution of the
problem in the 1970's.
Population planning assistance is one of AID's newer programs
although the Agency and its predecessors have helped on related
statistical and health matters for twenty years or more. Population
program assistance by AID began in fiscal year 1965 with $2,000,000;
in fiscal year 1966 and 1967, between $4,000,000 and $5,000,000 was
committed each year. With Congressional earmarking for population-
family planning activities, funds used for this program rose to $35,000,-
000 in fiscal 1968, $45,000,000 in fiscal 1969, and $75,000,000 in fiscal
1970. The fiscal 1971 program totaled $96,000,000 and the committee
recommends a fiscal 1972 program of $125,000,000. In its illustrative
presentation to the committee AID officials have indicated would be
allocated as follows:
Peretat
Development of adequate demographic and social data----------------- 10
Increasing awareness of population dynamics-------------------------- 10
Development of adequate means of fertility control-------------------- 7
Development of adequate system for delivering family planning services__ 37
Information and education__________________________________________ S
Institution building support_________________________________________ 10
United Nations population program support__________________________ 15
Administrative support --------------------------------------------- -3
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Funds for this program have been heretofore earmarked ($100
million for fiscal year 1971) in the authorization bill. Committee
action recognizes House action in breaking the item into an individual
appropriation thus hopefully permitting improved management of
these resources-this it might be added is clearly needed.
The Committee directs that without exception excess foreign cur-
rencies be used to the maximum extent they are available to carry
out this program and hereby requests quarterly re ris be inning
April 1, 1972, from the General Accounting ~O indicating extent to which this is being done to date in fiscal year 1972 and con-
firming that the Committee's mandate is being carried out in actions
taken subsequent to the enactment of this bill.
AMERICAN SCHOOLS AND HOSPITALS PROGRAM FY 1963-1972
ISRAEL
OTHER
11
1 Other category includes appropriation of $2,800,000 in excess Polish zlotys.
' Other category includes appropriation of $3,900,000 in excess Polish zlotys.
3 Portion for U.A.R. includes appropriation of $1,000,000 in excess Egyptian pounds. Honduras (250,000) lS Project
4 Other category includes appropriation of requests for the following: Greece (545,000), 0
Hope (1 500,000), American hospitals in Rome (315,000), International Eye Foundation (200,000), Panama (1,00,0 0),
Poland (600,000), and Program Support (200,000).
1972 Bar represents budget estimate.
ASSISTANCE TO SCHOOLS AND HOSPITALS ABROAD
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Appropriation, 1971--------- - $12,895,000
Budget estimate, 1972--------------------------------------=--- 10,175,000
Authorization 30, 000, 000
House allowance----------------------------------------------- 17,200,000
Committee recommendation------------------------------------- 20,000, 000
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The committee recommendation of $20,000,000 is $7,105,000 more
than the amount appropriated in fiscal 1971, $9,825,000 over the
budget estimate, and $2,800,000 over the House allowance.
Contributions to Schools and Hospitals Abroad began with Section
203 of the Smith-Mundt Act of 1948, which authorized assistance to
schools abroad founded by American citizens, and stipulated that the
schools must serve as demonstration centers of American methods and
practices. A similar provision was included in the Mutual Security
Act (Section 400(c)), as amended, of 1957. The program is presently
being carried out under Section 214 of the Foreign Assistance Act of
1961. Prior to 1960 the American Schools and Hospitals program was
administered in the Bureau of Educational and Cultural Affairs of
the Department of State. Since 1960, AID and its predecessor, the
International Cooperation Administration (ICA) have managed the
program.
The program as originally conceived was to demonstrate American
ideas, practices, and advances in the fields of education and medicine
rather than provide operational support for institutions whose basic
purpose is to furnish general education and welfare services to the
citizens of the countries in which they are located. The committee
believes that the program should be tied to its demonstration goals
and that every effort should be made to give wider and more equitable
geographic distribution to the institutions assisted in this year's
bill.
In providing funds for a number of American schools and hospitals
abroad, the committee has taken cognizance of the total economic
relationship between the United States and Israel, and in its view
feels that the use of dollars for local currency expenditures for any
schools located in Israel will not injure materially the balance of
payments of the United States. Therefore, the committee directs the
Executive Branch to pay cost and expenses in dollars for the projects
funded in Israel and not purchase Israeli pounds from any U.S. Gov-
ernment agency or other accounts of our Government.
The Committee has added the following Amendment to the title I
of the bill:
Provided, That only such projects enumerated in the respective reports
of the Foreign Affairs Committee of the House of Representatives and the
Foreign Relations Committee of the Senate covering authorizing legislation
for programs funded hereunder shall be financed out of the funds made
available under this head: Provided further, That the maximum amount
of funds allocated to any nonbudgeted project shall not exceed $2,000,000.
There follows a table detailing proposed United States contributions
to schools and hospitals abroad :
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ASSISTANCE TO SCHOOLS AND HOSPITALS ABROAD
(Amounts in thousands of dollars)
Fiscal year
1971 program
AID revised
program
House/Senate
legislative House
committees appropriation
recommenda- bill
tions t
Appropriation---------------------------------------
12,895
11,125
----------------------------
Transfer from supporting assistance 4__________________ s 500
------------------------------------------
Unobligated balance brought forward __________________ 24
------------------------------------------
Total availability------------------------------ 13,419
11,125
__-______-____-______..-_---
Additional Projects Recommended for Consideration by
Senate Legislative Committee:
1. Admiral Bristol, Hospital Istanbul, Turkey ----- 50
100
100 --------------
2. American Farm School, l1hessaloniki, Greece.. -- 180
275
275--------------
3 . American Hospital in Rome, Italy ---------------- _-----------
--------------
315 300
4. American Research Center in Cairo, UAR______________
______________
180 --------------
5. American Research Hospital for Children,
Krakow
Poland --
--------------------------------------
--------------
600 --------------
,
-
6. American University of Beirut, Lebanon -------- 6,300
6,000
6,000 6,000
7. American University in Cairo, UAR_____________ 200
500
1,450 -------------
8. Anatolia College, Thessaloniki,Greece ------------------ _-----
200
200 ___________...
9. Athens College, Athens, Greece______________________________
______________
70 --------------
10. Bayit Lepletet Girls School,Israel ----------------------------
--------------
250 --------------
11. Beit UI anah Teachers College, Israel --------------------- _--
--------------
250 _--_-___.____-
12. Beth aackov Avat Girls School, Ramat Dan,
Israel--------------------------------------------------
--------------
2,000 --------------
13. Beth Zeiroth MizrachiSchools, Israel -------------------------
--------------
500 --------------
14. Cairo American College, UAR-------------------------------
--------------
1,000 --------------
15. Educational Center for Galilee, Rachasim, Israel -----
400
400 --------------
16. Escuela Agricola Panamericana, Honduras--____ 200
250
250 ----------
17. Feinberg Graduate School of Weizmann Insti-
lsrael ------------------------------ 500
tute
--------------
3,700 1,500
,
18. Gorges Memorial Institute Panama__________________________
______________
1,000 --------------
19. Igud Leiluf Hanoar-Israel-------------------- 750
-------- -----
----------------------------
20. International Eye Foundation, New Yor-------- 200
--------------
200 --------------
21. Jerusalem College,Israel-----------------------------------
--------------
2,000 --------
22. Kolel Shomre Rachomos (Home and Hospital
for the Aged),Israel -------------------------------------
400
400 --------------
23. Laniadd Hospital, KiryatSanz,Israel ---------------- _---- ____
150
150 ---------
24. Or Hachayim-Israel------------------------- 500
-----------
-------------------
Greece________________ 30
25. Pierce Coliegy
Athens
--------- ----
----------------------------
,
,
26. Project HOPE------------------------------- 41,000
1,500
1,500 1,500
27. Ramat Havraah-Israel (Hospital and Home for
Aged)
--------- 500
-
--------------
----------------------------
-------------------------
-
28. Robert College, Istanbul, Turkey ------------- 2,600 1,200
1,200
1,000
_____________________
_
_
R
A
29
Schutz American School in Alexandria U
70
---------_---
_
_
_____
.
.
.
- 250
Israel
SdeSchemedVocationalSchool
30
250______________
-__--_-_
,
.
31. ShaareiZedak Hospital, Israel _ ______________
250
_____-__._--_-
32. Teachers Training Institute, Kiryat Yearim,
Jerusalem Israel------------------------------------------------------
1,000
--------------
Pueblo, Mexico_________________________________
33
University of the Americas
3,000
1,500
.
,
34. Program support ----------------------159 150
200
2
0
Unallocated funds appropriated 4-----------------------
0
5,
Subtotal, House additional projects -------------------------------------
28,760
--------------
Additional Projects Recommended for Consideration by
Senate Legislative Committee:
1. Beth-Avoth American Geriatric Center______________________________________
1,200
--------------
2. Beth Rivka Comprehensive School for Girls_________________________________
1,500
--------------
3. Technion, The Israel Institute of Technology________________________________
4,000
--------------
4. Musa Alami Foundation of Jericho_________________________________________
200
_-___-___--__-
5. Kiriat Hoar-A "Boys Town" type school for
orphaned boys--------------------------------------------------------
500
--------------
6. University of Pittsburgh-Haifa University Coop-
erative Study Program-------------------------------------------------
2,000
--------------
7. Cefardic Vocational College for Girls________________________________________
300
--------------
8. Tom School-------------------------------------------------------------
1,000
-------------
9. Ch'san Sofer Chasan YecheskelInstitute ------------------------------- ____
350
--------------
10. ShaariZedak Hospital ---
-------------------------------------------------
750
_-------------
.
11. Betsefer Miksol Tichoni Lemechonaut Rechev
U.M -----------------------------------------------------------------
840
--------------
12. Hebrew Union College Biblical and Archaeologi-
cal School in Jerusalem------------------------------------------------
979
--------------
13. Shocken Institute for Jewish Research in
Jerusalem ----------------------------------------------
1,000
--------------
r Institutions listed in this column include those for which funds were requested by AID plus funds for other institu-
tions recommended by the House and the Senate Legislative Committees.
4 In addition to $500,000 appropriated, $500,000 transferred by Presidential determination from supporting assistance
Apps OMOX DtAlRe leaseitMkMlWt4.@havobA44DpbF4EMG+# 5 000?OrOrIO0002-9
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26
VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS
$ MILLIONS OF DOLLARS FY 1962 - FY 1972
1962 1963
'BUDGET REQUEST
0 AVAILABILITY
CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS
Appropriation, 1971-----------------------------------------
$103,810,000
Budget estimate, 1972---------------------------------------
141, 000, 000
Authorization----------------------------------------------
138,000,000
House allowance--------------------------------------------
41,000,000
Committee recommendation---------------------------------
138, 000, 000
The committee recommendation of $138,000,000 is $34,190,000
more than the amount appropriated in fiscal 1971, $3,000,000 under
the budget estimate, and $97,000,000 over the House allowance.
The Committee contemplates that other countries will increase their
contributions to International Organizations for Economic Assistance
coupled with a more realistic effort on their part to provide for their
multilateral and their individual defense.
The United States shares in the costs of United Nations operations
through assessed payments (31.5 percent of total) and voluntary
contributions (varying between 10 and 55 percent of the total indi-
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27
vidual programs and agencies). Assessed payments are authorized and
appropriated to the Department of State and voluntary contributions
are authorized by the Foreign Assistance Act and appropriated in this
bill.
As justified to the committee multilateral assistance programs have
a number of advantages:
-they promote a wider sharing of the burden of development
assistance;
-they reduce the political friction that can arise from reliance
on bilateral contacts in the most sensitive affairs of nations, such
as population and family planning, the production of and traffic
in dangerous drugs, and surveys of minerals with strategic
implications;
-they enhance the effectiveness of the world development effort
by providing for the pooling of knowledge and expertise for
solving development problems;
-they can operate in areas of political tension such as the Middle
East, where individual nations are often unable to function, even
in providing essential humanitarian assistance.
Over two-thirds of the funds for international organizations will go
to the United Nations Development Fund -(UNDP). Created in 1965
to replace predecessor agencies, including the UN Special Fund,
dating back to 1950, the UNDP is the world's principal program of
multilateral technical assistance. It finances surveys to attract
investment capital, provides aid for development of institutions for
economic and social growth, and furnishes technical advice. The
UNDP is also the hub in the United Nations system for all technical
assistance activities and actually administers over 70 percent of the
technical assistance funds expended by all agencies in the United Na-
tions system.
After the UNDP, the next largest recipient of United States
voluntary contributions to International Organizations ? is to the
United Nations Children's Fund (UNICEF). This well known United
Nations agency acts primarily as a catalyst, encouraging and stimu-
lating efforts by the developing countries on behalf of their children
and providing aid for programs which have a multiplier effect by rein-
forcing and spurring other elements in social and economic develop-
ment. Cash contributions from 124 governments to UNICEF's general
resources in 1970 amounted to $33.6 million, of which $13 million
(limited to 40 percent) was contributed by the United States. Addi-
tionally, however, $8.7 million was contributed by governments for
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28
specific projects, including $4.2 million from the United States for
disaster relief assistance in Nigeria and East Pakistan. During 1970
the United States also transferred foodstuffs to UNICEF valued at
$6.4 million for ongoing nutrition programs and emergency relief in
Nigeria; these commodities were made available under Public Law 480.
Additional income is also realized by UNICEF from non-govern-
mental sources, through greeting card sales and public collections;
United States non-governmental sources contributed $6.4 million in
1970.
The main fields in which UNICEF assists 112 countries and terri-
tories are health services, nutrition, education, vocational training,
family and child welfare, multi-purpose services, and emergency aid.
Created in 1949, the United Nations Relief and Works Agency for
Palestine Refugees in the Near East (UNRWA) provides food, hous-
ing, schooling, and health services for Arab refugees of the 1948-49
Arab-Israel conflict and, on a temporary basis, for some of the refugees
of the 1967 war. United States support for UNRWA helps meet the
humanitarian needs of a refugee population which at the end of 1970
numbered approximately 1436,829 (of whom over 800,000 were
receiving rations from UNItWA). These people are distributed as
follows: East Bank of Jordan, 517,136; Israeli-occupied West Bank of
Jordan, 269,996; Israeli-occupied Gaza strip, 312,922; Lebanon,
176,896; and Syria, 159,879.
The United States contributed $22.2 million to UNRWA's regular
budget of approximately $48 million for FY 1970 and 1971-$13.3
million in dollars and U.S.-owned excess currencies and $8.9 million
in commodities available under P.L. 480. For FY 1972 a contribution
at the same level and with the same division between cash and com-
modities is proposed under the appropriation for voluntary contribu-
tions to International Organizations. As in previous years the U.S.
contributions provide no more than 70% of total government con-
tributions. As other governments' support of UNRWA has increased,
the U.S. share has been proportionately reduced from 70% to about
55% in the present bill.
The committee directs that the total U.S. contribution to the
International Atomic Energy Agency (IAEA), including the value of
in-kind contributions, not exceed 31.5 percentum (the basis of the
assessed contribution of the total actually paid in or delivered. This
limitation should be strictly applied first to the cash contribution to
insure that the intent of the committee is carried out. The committee
hereby directs the General Accounting Office to monitor these pay-
ments and report any variance to the Chairman of the Foreign
Operations Subcommittee.
The committee has earmarked $15 million of this appropriation for
the United Nations Children's Fund.
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PROPOSED VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS, FISCAL YEAR 1972
[Amounts in thousands of dollars]
Executive branch request
--~
Total con-
U.S. percent
Amount
Maximum
percent
tributions
(estimate)
of total
(estimate)
(1)
(2)
.(3)
(4)
United Nations development program_______________100,000
40.00
280,000
35.71
United Nations Children's Fund:
Total----------------------------------------
15,886
-------------
42,190
37.65
Cash__________________________________________
13,000
40.00
38,690
33.60
Public Law 480 commodities______________________
12,886
(2)
3,500
--------------
U .N.fundforpopulationactivities_____________________
7,500
50.00
15,000
50.00
U.N.fundfordrug abuse control ---------- _-----------
2,000
(%)
2,600
78.00
IAEA operational program:
Total ----------------------------
1,550
--------------
3,875
40.00
Cash___________________________________
945
40.00
2,363
40.00
In kind________________________________________
605
(a)
1,512
40.00
WMO voluntary assistance program:
Total -------------------------------------
1,500
--------------
5,000
30.00
Cash___________________________________150
40.00
513
29.20
In kind_________________________________1,350
(2)
4,487
30.00
U.N./FAO world food program:
Total----------------------------------------
51,000
--------------
100,000
51.00
Cash ----------------- ------------------------_
1,500
--------------
15,000
---- ---------
Public Law 480 commodities a--------------------
35,500
,
50.00
71,000
_____________-
Public Law 480 shipping_________________________
14
000
(1)
14,000
_______-_____-
U.N.institute forTraining andResearch ---------------
400
40.00
1,450
a 27.58
WHO medical research_______________________________
312
- 14.26
2,188
14.26
International secretariat for volunteer service:
Total________________________________________
100
--------------
421
23.75
Cash__________________________________________
73
28.00
261
28.00
Detailed personnel______________________________
27
(s)
120
22.50
Rent--------------------------------------------
2
40
....----------
U.N. Relief and Works Agency:
Total________________________________________
(22,200)
70.00
40,363
55.00
Cash----------------------------------------
13,300
--------------
--------
-- -----
Public Law 480 commoditiesa-------- ___---------
(8,900)-----------------------------------------
Total 141,135 ----------- ----------- ------------------
Totalincludingin kind contributions_____________ (202,448)--------- -________-_______________-___._-_
r Valued at cost to CCC.
2 No matching formula proposed.
a Market value.
4 U.S. pledged shipping to move U.S. commodities; $14,000,000 is present estimate of shipping costs.
a U.S. cumulative share-33.3 percent.
Note: Data shown in cols. 3-6 are based on present estimates of contributions by other countries for fiscal periods
which in most cases will end Dec. 31, 1972.
In an effort to update the information received in hearings last
June and better understand the financial requirements and scheduling
of the United Nations development program, the committee reque ed
additional information which was furnished by the InteruitA64al
Organizations Bureau of the Department of State. Extracts of this
document are reprinted below for the information of the Senate:
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30
UNITED NATIONS DEVELOPMENT PROGRAM (UNDP)
FUNDING AND EXPENDITURES
At its session in June 1970, the Governing Council of
UNDP changed its previous policy with regard to pro-
gramming and financial management in response to the
"Jackson Capacity Study" which had made an unprece-
dented, in-depth review of the United Nations develop-
ment aid system. The Council decided that the program had
(after about 10 years of activity) reached a stage of sta-
bility and promise which permitted introduction of a different
system for funding of large-scale projects. Previously, such
projects had been fully funded at the time of approval of
the project and had been drawn upon as the project pro-
gressed. The new arrangement, under which program plan-
ning is undertaken five years in advance but specific projects
are funded annually, released an amount of $193 million as
of January 1, 1971 for temporary augmentation of the pro-
gram beyond the scope covered by regular annual contri-
butions. The Council expressed its hope and expectation that
this added input could be spread over a few years after which
the increase in contributions would have reached an amount
permitting the maintenance of the higher expenditure level.
The Administrator asked the Governing Council to con-
sider thoroughly the problem of safeguarding against all
eventualities which can arise in a growing, worldwide pro-
gram. After considering the various related problems in detail,
the Council unanimously agreed that a safeguard was needed
and that this should take the form of a working capital fund,
to be called the Operational Reserve, at a level of $150
million. Included in this working capital fund is also the
amount which will be needed to meet normal operational
expenditures, particularly early in each year before receipt
of annual contributions.
After establishing the Operational Reserve, the Governing
Council decided that the remaining $193 million freed by the
departure from the system of full project funding should be
phased into operational use in the years 1971 through 1976
and that this should be accomplished in a way so that steady
program growth could be assured. It now appears that faster
expenditure and lower contributions than anticipated will
require use Q f all these funds by early 1974 and that the present
pace of the program must then diminish substantially unless
large additional contributions are forthcoming. This is shown
in the table below.
Under the new system of programming and financing, the
Council plans future operations in 5-year segments. Thus at
the moment the period 1973 to 1977 is being reviewed. On
the basis of a Council-approved estimate of an increase in
contributions of 9.6 per cent each year, and planning on
the use of $82.3 million still remaining from the funds released
after departure from full funding, the expected resources for
1973-1977 will be $1,967.6 million. Against this will be an
anticipated outgo of $2,019.2 million, leaving a potential
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deficit of $51.6 million unless additional contributions can be
secured. Failure of the United States to pledge would raise
this potential deficit to approximately $150 million. The
actual effect of failure to pledge, or to sharply reduce the pledge,
would be to require the Council to completely re-plan the forth-
coming 5-year period. Steps would have to be taken to cut back
expenditures commencing this year, through reduction in on-
going project activity and cancellation of planned projects.
Indicative Planning Figures already announced to all recip-
ient governments for the 1973-1977 period would then have
to be revised downward sharply.
UNDP RESOURCES AND PROGRAM COSTS 1968-771
[In millions of dollars
Income
Program
costs
Expenditure
versus
income
---------------------------------------------
1968
206.6
202.5
4.1
5
8)
--
1969
----------------------------------------------
227.1
232.9
.
2))
5
-
1970
---------------------------------------------
252.1
257.3
.
4)
3
--
1971
---------------------------------------------
264.9
308.3
1
.
67
6
--
1972-
------------------------------------------
291.5
359.
.
61
3
---
1973
----------------------------------------
316.4
377.7
.
4
47
------
1974
-------------------------------------------
343.8
391.2
1
.
3
30
---
1975
-----------------------------------------
373.8
404.
.
17
4
------
1976
--------------------------------------------
407.3
424.7
1
.
)
22
5
---
1977----------------------------------------------
444.0
42
.5
.
Total----------------------------------------
3,127.5
3,379.3
(251.8)
Period 1971-77 estimated.
INDUS BASIN DEVELOPMENT FUND-GRANTS
Appropriation, 1971---------------------------------------------- $4,925,000
Budget estimate, 1972-------------------------------------------- 15,000 , 0000
Authorization --------------------------------------------------
House allowance ------------------------------------------------ 7,500,000
Committee recommendation-------------------------------------- 15, 000,000
The committee recommendation of $15,000,000 is $10,075,000 more
than the amount appropriated in fiscal 1971, the same as the budget
estimate, and $7,500,000 over the House allowance.
INDUS BASIN DEVELOPMENT FUND-LOANS
Appropriation, 1971 ---------------------------------------------- $6,980,000
Budget estimate, 1972 -------------------------------------------- 12,000,000
House allowance------------------------------------------------ 6,000,000
Committee recommendation-------------------------------------- 12, 000, 000
The committee recommendation of $12,000,000 is $5,020,000 more
than the amount appropriated in fiscal 1971, the same as the budget
estimate, and $6,000,000 over the House allowance.
In 1960, India and Pakistan agreed by Treaty to allocation of waters
from the Indus Basin river system which traverses their mutual border
in the area around Lahore, West Pakistan. The United States, in
consortium with the World Bank and several other countries, agreed
to provide financing for the development of the Indus River Basin
in Pakistan. A system of canal works in the Indus Basin, including
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32
a major dam at Mangla, was provided for in the Indus Basin Develop-
ment Fund (IBDF) agreements concluded in 1960 and 1964. A second
dam at Tarbela was provided for in an agreement concluded in 1968.
The United States total dollar commitment to development of the
Basin is $416.8 million ($295.6 million in grants and $121.2 in loans)
or 41 percent of the total contribution from the consortium members.
About three-fourths of the total had been called forward by the World
Bank and obligated as of June 30, 1971. The construction phase of the
original Indus Basin Project was completed last year; now only various
maintenance and remedial works remain for the completion of the
canal works.
Of the $105.0 million balance not yet requested from the United
States, $71.4 million is on grant basis and $33.7 million on loan basis.
The bulk of U.S. funds called by the World Bank this year and in the
future will finance the construction of Tarbela Dam which has now
been resumed and proceeding. The Committee is advised that any
shortfall in contributions to the Fund jeopardizes the construction
schedule and risks an increase in construction costs, and if work is
suspended, contractor cancellation fees.
CONTINGENCY FUND
Appropriation, 1971__________________________________________ $22,500,000
Amended Budget estimate, 1972______________________________ 100, 000, 000
Authorization----------------------------------------------- 30,000,000 House allowance_____________________________________________ 30, 000, 000
Committee recommendation- - - - - - - - - - - - - - - - -- - - --- - --- - _ _ _ 30, 000, 000
-- _
The committee recommendation of $30,000,000 is $7,500,000 more
than the amount appropriated in fiscal 1971, $70,000,000 under the
budget estimate, and the same as the House allowance.
The Contingency Fund is used for assistance requirements which are
unforeseen or undetermined at the time the budget is submitted to
the Congress. In the past it has been used primarily for security as-
sistance purposes and for disaster relief and rehabilitation. It can,
however, be used to fill emergency requirements for military grant
assistance as well.
This new obligational authority when added to funds available
from reappropriated balances ($466,000) and recoupments ($1 -
300,000), will provide a total of $31,766,000 to finance this year/s
program.
CONTINGENCY FUND USES
[In millions of dollars]
1967
1968
1969
1970
19e1
(estimate)
Disaster relief and reconstruction-------
S
4
2
4
18
22
ecurity assistance____________________
D
l
t
39
19
3
eve
opmen
assistance________________
Other
5
6
6
__________------------___-_-
1
3
4
Total
---
50
28
14
28
--
26
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During fiscal year 1971:
-The Contingency Fund provided slightly over $1,000,000 for
disaster relief in response to floods in Malaysia, Colombia,
Costa Rica, and Romania.
-In the Philippines, $248,000 was spent on disaster relief during
a severe typhoon, and another $1.5 million was used for school
reconstruction to repair the damage from the typhoon.
-$7.5 million was used in East Pakistan to provide relief to victims
of the cylcone and tidal bore, and another $1 million was used
in East Pakistan for victims of the civil strife there.
-$7 million was provided to the UN High Commissioner on Refu-
gees for East Pakistani refugees in India.
-In Ecuador, $70,000 was used to relieve the suffering after an
earthquake.
-Over $4 million was used in Jordan for emergency relief and re-
habilitation following civil disturbances caused by the Pales-
tinian commandoes in September.
-$1 million was provided to the International Red Cross.
-$310,000 was also given to the World Health Organization for
use in combating cholera epidemics.
-Smaller amounts were contributed through the Ambassador's
relief fund in some twenty countries in response to need caused
by floods, drought, and disease.
Similar uses were made of the Contingency Fund in previous years.
Major expenditures in FY 1970 included $7.4 million after the earth-
quake in Peru, $2 million for the Nigerian international relief effort,
and $1 million to Mexico for narcotics control. Examples of other uses
were $7 million to Indonesia in FY 1967 for commodity financing to
relieve short term financial difficulties, $5 million in FY 1967 to the
Dominican Republic for emergency public works and urban improve-
ment to prevent unrest, $4.8 million in FY 1968 for support of the
United Nations force in Cyprus, and $2,705,000 in FY 1969 for the
U.S. share of a share of a shortfall in funding the multilateral Nam
Ngum dam project in Laos.
REFUGEE RELIEF ASSISTANCE
(EAST PAKISTAN REFUGEES) Appropriation,1971_______________________
None
Amended budget
$250,000,000
Authorization______________________________________________
250,000,000
House allowance____________________________________________
175,000,000
Committee recommendation_________________________________
175, 000, 000
The committee recommendation of $175,000,000 is $75,000,000
under the budget estimate and the same as the House allowance.
The committee notes the war between India and Pakistan during
December 1971 changed the basis for humanitarian relief, but leaves
relief requirements of considerable magnitude.
With the rapid return of refugees to East Bengal, the future require-
ments for refugee care within India are declining rapidly. The return,
on the other hand, increases the relief and rehabilitation requirement
in East Bengal. Conservative observations suggest that, for every
refugee who left destitute, a person remained in the area, uprooted
from his home and frequently with home, property, clothes and tools
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destroyed. In addition, there has been extensive damage to or destruc-
tion of roads, bridges, schools, hospitals, water systems, markets and
factories.
Although there have been higher, and not necessarily invalid,
estimates, the committee is advised the U.S. Government relief effort
is being planned currently on the basis of multinational relief costs
in the magnitude of $650 million. The United Nations, which has
returned some 50 personnel to Dacca, and the World Bank are
examining actual needs and looking into the feasibility of adminis-
tering an international relief effort.
The committee supports U.S. participation in this humanitarian
endeavor; however, it strongly believes a "fair share" for the United
States (including Public Law 480 and in kind contributions) should
not exceed one-third of the total worldwide program. The committee
hereby requests the General Accounting Office to compute total
U.S. contributions, relate it to the worldwide total and furnish the
Chairman of the Committee's Foreign Operations Subcommittee with
a report by May 1, 1972.
The committee recommends an appropriation of $175 million for
South Asia refugee relief, the same amount as is recommended in the
House bill. Deducting obligations of $27.7 million already incurred
during this fiscal year, the remaining balance of $147.3 million would
enable the United States to provide a substantial share of present
refugee needs.
The immediate food situation in East Bengal is reported to be not
critical because of the good rice crop just harvested, and because of
stocks available at the two ports from either relief shipments.
r ?r ss Development Loans
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DEVELOPMENT LOANS
(ALLIANCE FOR PROGRESS)
Appropriation, 1971-----------------------------------------
$287,500,000
000
000
235
Budget estimate, 1972---------------------------------------
,
,
000
500
206
Authorization----------------------------------------------
,
,
000
000
150
House allowance--------------------------------------------
,
,
50
000
000
Committee recommendation---------------------------------
,
,
The committee recommendation of $50,000,000 is $237,500,000 less
than the amount appropriated in fiscal 1971, $185,000,000 under the
budget estimate, and $100,000,000 under the House allowance.
This new obligational authority when added to funds available from
reappropriated balances ($1,493,000), recoupments ($38,410,000),
and reimbursements ($36,790,000) will provide a total of $126,693,000
to finance this year's program.
To emphasize the special relationship between the United States
and Latin America, the Congress has authorized, each year since
fiscal year 1963, a separate appropriation for development loans for
the Alliance for Progress. Throughout this period, development loans
for Latin America have been administered by AID in the same manner
and on the same terms as AID loans for the rest of the world. In recent
years the AID loans to Latin America have decreased only slightly
relative to loans of the Inter-American Development Bank and the
International Bank for Reconstruction and Development.
AID's loan program for Latin America has tended to move away
from project and program loans into economic sector loans. Currently
accounting for over one-third of AID's development lending in Latin
America, sector loans provide needed resources to help a government
carry out an integrated program in a specific field of activity-such
as agriculture or education.
Through both its project and sector lending in Latin America, AID
is the principal lending agency for programs of innovation and insti-
tution building in agriculture and education, programs geared to
strengthening the human rather than physical infrastructure-people,
institutions and knowledge. While both the IDB and the World Bank
have become somewhat more active in these areas in recent years, the
bulk of their loans continues to be in physical infrastructure, especially
transportation and power.
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itl ent' Lnans
is 198 tXs 14 18 7 ; i s ~ s. Is~R # .. 1972
a r
DEVELOPMENT LOANS
(OTHER THAN ALLIANCE FOR PROGRESS)
Appropriation, 1971----------------------------------------- $420,000,000;
Budget estimate, 1972------------------ 400, 000, 000
Authorization______________________________________________ 250,000,000.
House allowance-------------------------------------------- 250, 000, 000
Committee recommendation------------------------ --------------------------------- 150, 000, 000
The committee recommendation of $150,000,000 is $270,000,000
less than the amount appropriated in fiscal 1971, $250,000,000 under
the budget estimate, and $100,000,000 under the House allowance.
This new obligational authority when added to funds available
from reappropriated balances ($75,479,000), recoupments ($49,-
705,000), and reimbursements ($155,595,000) will provide a total of
430,779,000 to finance this year's program.
Development loans were justified to the committee as providing
resources needed to support the self-help efforts of recipient countries
and underwrite the successful planning and execution of their de-
velopment programs. Prior to 1961, under the Development Loan
Fund, U.S. development loans were repaid in local currency. This
lead to an accumulation of U.S. local currency holdings and placed
little incentive on the recipient government to discipline its financial
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 Approved For Release 2002/01/1037CIA-RDP74B00415R000600100002-9
policies. Since the passage of the Foreign Assistance Act in 1961, all
AID development.loans have been repayable in dollars. Congress has
increased the terms of development loans on four occasions from a low
of % of one percent in 1961 with no interest during a ten year grace
period to the current rate of 2 percent interest during the ten year
grace period and a minimum of 3 percent for the remaining 30 years
during which the principal is repaid.
Funds derived from development loans finance the commodities
and technical services necessary for the construction of essential
facilities, such as schools, clinics, roads, dams and irrigation facilities
and factories, and the import of a wide range of products such as
fertilizer, farm equipment, chemical products, iron and steel products,
motor vehicles, industrial and electrical machinery, petroleum, and
other products.
It is stated that loans can have an impact on the borrower's devel-
opment greater than the actual amount of capital lent might suggest.
Backed by loan funds, recipient countries are able to introduce new
policies for more effective use of all resources, control inflation, remove
import restrictions, expand investment opportunities for private
enterprise, and reallocate funds to emphasize vital sectors such as
education, agriculture, and population. U.S. loans may also stimulate
the flow of resources from other bilateral and international lending
agencies.
Development loans are of three types-project loans, program
loans, and economic sector loans:
-Project loans finance a specific undertaking such as a fertilizer
plant, a power dam, or a road.
-Program loans finance the purchase of U.S. goods such as fertilizer,
machinery raw materials, and spare parts needed for industrial
and agricultural development, and are desirably associated with
fiscal, monetary, or import reforms or with other self-help steps
affecting the overall economy.
-Economic sector loans are a type of development loan assistance
used in recent years which when closely coordinated with tech-
nical assistance are designed to spur the development of a par-
ticular economic sector such as agriculture or education.
In the early 1960's large infrastructure investments-transportation,
communication, power, and industry-were emphasized and received
most of the loan funds. In recent years there has been a dramatic shift
towards programs designed to develop human resources. Such a shift
was possible partially because of increased concentration of infra-
structure lending by the international financial institutions.
U.S. bilateral development lending is increasingly coordinated with
other donors. The United States belongs to seventeen aid coordinating
groups, of which twelve are led by the World Bank. Approximately
two-thirds of AID's development loans are to countries where aid
coordinating and consultative groups now exist. Thus AID loans
represent just one part of a coordinated capital input by numerous
bilateral and multilateral donors. The committee notes that, consider-
ing the substantial increases in U.S. contributions to international
financial institutions, the AID loan program considered alone does not
begin to reflect the full extent of U.S. participation.
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AGENCY FOR INTERNATIONAL DEVELOPMENT,
ADMINISTRATIVE EXPENSES
Appropriation, 1971 -------------------------------------------- $51,000,000
Amended budget estimate, 1972 --------------------------------- 60, 200 000
Authorization ------------------------------------------------- 50,000,000
House allowance _______________________________________ 54,600,000
Committee recommendation ------------------------------------ 5o,000'000
The committee recommendation of $50,000,000 is $1,000,000 less than
the amount appropriated in fiscal 1971, $10,200,000 under the budget
estimate, and $4&00,000 under the House allowance.
These administrative funds are used for the direction and super-
vision of the program in Washington and overseas. They are sought
to pay the costs of establishing program policies and standards;
planning, supervising, and reviewing the implementation of these
policies; and providing such essential management services as account-
ing, inspection, auditing, personnel administration, management anal-
ysis, and administrative support. Of the $9.2 million increase over
1971, 89 percent is to pay for salary increases and 11 percent for other
administrative increases.
While AID's stated intention is to reduce the number of operating
officials overseas, it also advises that these reductions will not sub-
stantially affect the required number of management personnel. In
fact, it is claimed that fewer overseas operating officials and greater
use of contract personnel increase the need for auditing, inspection,
planning and other management fields.
AID's audit staff has increased from 180 in December 1969 to 212 in
June 1971. The Agency will persist in its efforts to improve other
financial and management functions essential for the prudent conduct
of its programs.
It should be noted that the appropriation for AID's Administrative
Expenses reflects only a relatively small portion of its total personnel
compensation costs. Certain selected data relating to total personnel,
pay grades, etc., is presented in the following ten-year table:
Total
United States General
United States Foreign
United
personnel
compensa-
Total
Service
Service Reserve
States
h
d
Total
tion '
number
Grade
Grade
ot
ers an
Foreign
AID
program
Fiscal year
(millions) personnel 8 Number
average Number
average
nationals 4
(millions)
1961---------------
$68.6
14,584
N.A.
9.1
N.A.
4.1
N.A.
$2,080
1962-------------- -
71.8
15,264
N.A.
9.6
N.A.
4.0
N.A.
2,419
1963---------------
80.5
16,636
2,204
9.5
3,605
3.9
10,827
2,432
1964---------------
84.4
15,437
2,398
9.4
3,422
3.8
617
9
2
406
1965---------------
89.8
14,713
2,526
9.4
3,355
3.7
,
832
8
,
2
178
1966 ---------------
93.4
14,892
2,811
9.1
3,561
3.9
,
8,520
,
2,665
1967---------------
110.3
16,713
3,092
9.0
4,493
4.3
9,128
2
459
1968_______________
128.4
17,569
2,917
9.0
4,662
4.0
9,990
,
2,212
1969_______________
124.9
15,753
2,507
9.1
4,221
4.1
9,025
1,724
1970_______________
127.8
14,486
2,634
8.9
3,090
3.9
7,943
1,878
1971---------------
120.0
13,477
2,498
8.9
3,670
3.9
7,309
1,928
19728-------------
115.0
12,400
2,404
8.9
3,534
3.9
6,462
2,446
I Total compensation paid from United States appropriated funds. Excludes amounts paid foreign nationals from country
owned trust funds.
2 Includes foreign nationals paid from country owned trust funds.
3 Estimate.
4 Included in U.S. Others are the foreign service staff employees, executive and excepted appointees, and wage board
employees.
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DEPARTMENT OF STATE ADMINISTRATIVE EXPENSES
,000
Appropriation, 1971 --------------------------------------------- $44,,555100,000
Amended budget estimate, 1972___________________________________
Authorization -------------------------------------------------- (indefinite)
House allowance ------------------------------------------------ 4,255,000
Committee recommendation -------------------------------------- 4, 221, 000
The committee recommendation of $4,221,000 is $121,000 more than
the amount appropriated in fiscal 1971, $334,000 under the budget
estimate, and $34,000 under the House allowance.
Several missions and activities of the Department of State are
funded by this appropriation. The Committee recommends the fol-
lowing allocation :
U.S. Mission to the North Atlantic Treaty Organization
(USNAT O) -$1,737,000. This allocation provides for salaries, admin-
istrative support and travel of the United States ambassador to
NATO's forty-four man staff. The United States Mission to the North
Atlantic Treaty Organization provides over-all assistance in the co-
operative efforts of the NATO countries in planning and providing
for the defense of NATO.
U.S. Mission to the Organization for Economic Cooperation and
Development (OECD) -$1,145,000. This allocation will provide for
salaries, administrative support and travel of the United States am-
bassador to OECD's twenty-six man staff. The stated purpose of this
staff is to coordinate U.S. aid efforts with inernational organizations
and discuss with other governments our economic policies and pro-
grams. The OECD goal of achieving the highest sustainable economic
growth and employment and a risin g standard of living in member
countries while maintaining financial. stability, is comprised of the
industrial nations of Western Europe plus Canada, the United States,
Japan and Australia.
Mutual Defense Assistance Control Act (Battle Act) (MDAC)-
$1,134,000.-This allocation is for salaries, administrative, support and
travel of State Department personnel responsible for administering
the Mutual Defense Assistance Control Act. The program is directly
related to the overall defense efforts of the United States. Its purpose
is to prevent the shipment of strategic items to nations threatening the
security of the United States. The Department of State determines
the commodities to be included on "Battle Act" lists; makes reports on
shipments; coordinates activities concerned with security trade con-
tracts; conducts negotiations; makes recommendations to the Presi-
dent on termination of assistance to countries who are violating trade
controls.
Military Assistance and Arms Sales Supervision Function
(MAASS)-$205,000.=This allocation is for salaries, administrative
support and travel of State Department officials charged with coordi-
nating and giving general direction of programs authorized by the
Foreign Assistance Act and the Foreign Military Sales Act. It is the
responsibility of personnel assigned to this office to provide continuing
foreign policy control over the level and character of world-wide
United States military assistance and sales programs.
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MILITARY ASSISTANCE
(GRANTS)
Appropriation, 1971-------------------------------------------- X690,000,000
B
udget estimate, 1972----------------------------------------- 705,000,000
A
uthorization , 000, ------------------------
H000
ouse allowance__________ 552, 000
------------------------------------
000
C
,
ommittee recommendation------------------------------------ 350, 000,000
The committee recommends $350,000,000 in new obligational author-
ity. This amount is $340,000,000 less than the amount appropriated in
fiscal 1971, $355,000,000 under the budget estimate, and $202
000
000
,
,
under the House allowance.
This new obligational authority when added to funds available from
reappropriated balances ($4 million), recoupments ($18.5 million),
d
i
an
re
mbursements ($4 million) will provide a total of $376
500
000
,
,
to finance this year's program.
The committee notes that only a small portion of United States
military assistance to foreign nations is funded by this appropriations
bill. If the cost of maintaining United States forces abroad is con-
sidered, assistance provided in this bill becomes only a miniscule part
of a total reaching into tens of millions of dollars. It is, in fact, barely
one-fourth of direct United States assistance to foreign nations when
Military Assistance Service Funded, military construction overseas,
direct grants of military equipment both within and outside the For-
eign Assistance Act, and other programs such as Export-Import Bank
financing and ship loans are considered.
In prior years with the security classification of the amounts of pro-
posed country programs, the committee has largely confined its action
on military grant assistance to establishing an over-all program level.
It is readily apparent that such action gives the Congress no control
and little opportunity for directing the manner in which the funds
will ultimately be allocated and used. This is especially true consider-
ing the broad authority granted the Executive Branch to shift pro-
grams, personnel and funds within the appropriation, and the long
pipeline with cumulative undelivered balances as large or larger than
a full year program.
This year, at the insistence of the Chairman of the Foreign Opera-
tions Subcommittee, the level of the proposed country programs is
publicly available for all but five countries whose figures remain
classified. It had been the intent of the committee to sharply cur-
tail the number of countries receiving these funds from over fifty
to twelve and establish a dollar ceiling for each of these. In view of
the fact that over seven months of the fiscal year have passed, this
was not considered feasible for fiscal year 1972, but is proposed for
fiscal year 1973. The committee sees no compelling reason to continue
this program on such a widespread basis and can foresee a number of
advantages for curtailing it.
Unfortunately, because of the remnants of the old policy of classify-
ing proposed current year programs by country, this report cannot
carry a full and meaningful table reflecting this information. It is,
however
readily available to individual s
t
l
ifi
,
ena
ors on a c
ass
ed basis.
Information indicating our broadly based military grant program is,
however, partially reflected in the number, location and costs of our
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Military Assistance Advisory Groups and Milgroups. A total of over
$18 million in funds from the military assistance program is utilized
to fund these activities in 46 countries of the world. There follows a
listing of these by country with a breakdown of the funding of their
operations, together with a listing of the number of United States and
local personnel assigned to them :
There follows a ten-year graph reflecting the level of only that
relatively small portion of foreign military assistance funded in this
bill :
MILITARY ASSISTANCE PROGRAMS
$ Million
2,000-
$731.5
? ? .t7r
70 71*** 72
Est.
* Does not include $75 million for liquidation of obligations and/or reservations incurred
pursuant to authority in Sec. 510, FAA 1961 as amended in 1965
$300 million (same as above)
** Includes supplemental
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SUPPORTING ASSISTANCE PROGRAM FY 1962-FY 1972
$ Millions of Dollars
900 r-
573.3 Z1
554.8 7 / Raze-'-ems
580.4
1070 - ING ASSISTANCE 518,108,602
II_ a 'a Un SEMENTS 47 1,100
Budget
Estimate
SUPPORTING ASSISTANCE
Appropriation, 1971-------------------------------------------- $569,600,000
Amended budget estimate, 1972--------------------------------- 764, 614, 000
Authorization ________________________________________________ 618,000,000
House allowance---------------------------------------------- 575,000,000
Gommitte recommendation ------------------------------------- 400, 000, 000
The committee recommendation of $400,000,000 is $169,600,000 less
than the amount appropriated in fiscal 1971, $364,614,000 under the
budget estimate, and $175,000,000 under the House allowance.
Recommended new obligational authority of $400,000,000 when
added _ to reappropriated balances ($2,721,000), reimbursements
($800,000) and recoupments ($46,200,000) will permit a total support-
ing assistance program of $449,721,000.
Continuation of the Economic Supporting Assistance Program was
justified to the committee as being necessary to enable less developed
friends and allies to deal with the threat of internal subversion and
external attack. The committee's substantial reduction in this appro-
priation reflects its view that United States economic assistance,
especially through international organizations, should be strengthened
and the costs of both internal and external security shifted to the
governments concerned.
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(RESERVES)
Appropriation, 1971 --------------------------------------------
$18,750,000
Budget estimate, 1972------------------------------------------
25,000,000
House allowance ----------------------------------------------
25,000,000
Committee recommendation ------------------------------------- -----------
The Overseas Private Investment Corporation is a United States
Government corporation authorized by the Foreign Assistance Act of
1969 to take over Government incentives to the investment of American
private capital and skills in friendly less developed countries from the
Agency for International Development. It offers insurance against
losses from :
-expropriation
-currency inconvertibility
-war, revolutions, and insurrection.
In addition, on a supposedly self-sustaining basis it offers (1) sub-
stantial cost sharing of preinvestment surveys and feasibility studies,
(2) commercial guaranty of private loans and equity, and (3) direct
loans not exceeding $3 million in both dollars and local currencies.
The budget estimate before the committee is for an appropriation of
$25 million authorized by the Foreign Assistance Act to augment $170
million held by OPIC as a reserve for insurance and guaranty claims.
These reserves to which are added yearly earnings of $10 million to
$15 million should be weighed against a maximum contingent ex-
posure of $3.5 billion ! Of the total reserves $70 million is restricted
by law against commercial guaranties as contrasted to insurance
claims.
Although claims of only $4.2 million have been paid over the more
than twenty-year history of prior United States Government invest-
ment insurance programs, claims pending as of August 31 total $139
million, up $134.9 million from the $4.1 million pen-ding when OPIC
testified before the committee on June 10-a period of less than three
months (on Nov. 19 this total had reached $246.6 million). Thus it can
be said that as of August 31, OPIC had pending insurance claims with
the face value of $139 million and readily available reserves to pay
them of $110-$115 million. Evidence available to the committee gives
rise to the belief that pending claims will be settled well below their
face value. It is, however, impossible to estimate with any degree of
precision OPIC's ultimate liability. This is especially true because this
determination is so heavily contingent upon the outcome of negotiated
settlements between investors and host country governments.
The present budget estimate seeks an appropriation of $25 million to
be added to existing reserves as a cushion against possible future needs.
The committee believes, however, that the startling increase in claims
over the past several months calls for an immediate review by OPIC,
and hopefully the legislative committees, of its rate structure as related
to the present day political risks against which it is insuring. Then,
if as OPIC seems to believe, its present reserves are inadequate to meet
its anticipated needs, the committee will consider a renewal of this
request against the backdrop of some experience in the settlement of
now pending claims, the adequacy of its rate structure and the over-
riding full faith and credit of the United States which guarantees
payment of all proven losses.
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INTER-AMERICAN SOCIAL DEVELOPMENT INSTITUTE
Limitation, 1971--------------------------------------------- ($10,000,000)
Limitation request, 1972-------------------------------------- ($11,000,000)
House allowance--------------------------------------------- None
Committee recommendation----------------------------------- None
Section 401(s) of PL 91-175 made available up to $50,000,000 of
appropriated funds for the programs of the Inter-American Social
Development Institute with said funds remaining available until ex-
pended. In light of this language and since the $50,000,000 has been
made available but has not yet been expended, the committee is of the
view that the Institute has authority to make such expenditures
within the limits of these already appropriated funds now available
to it. Further, that it has authority to make such contracts and com-
mitments without regard to fiscal year limitations as provided by
Section 104 of the Government Corporation Control Act, as amended
(31 U.S.C. 849), to the extent authorized by the law under which it
was created and originally financed.
The committee did not take testimony from this agency and fol-
lowed House action in not imposing the requested limitation on its
1972 program. This is not to be construed, however, as a committee
decision on its future course.
TITLE II
FOREIGN MILITARY CREDIT SALES
Appropriation, 1971-------------------------------------------
$700,000,000
Budget estimate, 1972-----------------------------------------
510,000,000
Authorization ------------------------------------------------
400,000,000
House allowance----------------------------------------------
510,000,000
Committee recommendation------------------------------------
400, 000,000
The committee recommendation of $400,000,000 is $300,000,000 less
than the amount appropriated in fiscal 1971 and $110,000,000 under
the budget estimate and the House allowance. It is also the full
amount authorized.
The foreign military credit sales program is advanced as a "no cost"
means of complementing the military assistance program in lower-
ing the United States profile abroad and reducing the size of United
States personnel deployed overseas. Each of the sales under this au-
thority require a Presidential determination that the transaction will
promote world peace and strengthen United States security. Pur-
chased items may not be transferred to third party countries with-
out prior United States consent and sales to less developed countries
are contingent upon the recipient not diverting its resources or United
States development assistance to military expenditures. Sales are
made at interest rates equivalent to United States Treasury borrow-
ings (fiscal 1971 51/2 to 61/4 percent) to be wholly repaid in dollars
within ten years. New obligational authority is augmented by private
financing so as to increase the size of the total 1972 program to an
estimated $582 million.
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WORLD WIDE FOREIGN MILITARY CREDIT SALES
$ Million
800 I
?___ Financing for FMS programs included
MAP I islation - Total FMS Sales I FMS Cr dit
n e
e
g
I Programs
I[]
Appropriation
(NOA) -+
Required to
meet
program levels-
62 63 64 65 66 67 68 69 70* 71** 72
Est
* FMS credit controlled by continuing resolution authority which became maximum authorization.
** Includes $500 million credit for Israel authorized pursuant to the Military Procurement Authori-
zation Act of 1970. Funds appropriated under the Supplemental Appropriation Act, 8 Jan 71.
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TITLE III
FOREIGN ASSISTANCE (OTHER)
FUNDS APPROPRIATED TO THE PRESIDENT
PEACE CORPS
Appropriation, 1971 ---------_ --
$90, 000, 000
Amended budget estimate, 1972----------------------------------
82, 000,000
Authorization (P.L. 92-135) -------------------------------------
77,200,000
House allowance -----------------------------------------------
68,000,000
Committee recommendation ------------------------------------
77, 200, 000
The committee recommendation of $77,200,000 is $12,800,000 less
than the amount ap ropriated in fiscal 1971, $5,000,000 under the
budget estimate,'and $9,200,000 over the House allowance.
The committee recommends $77,200,000 which is the full amount of
the funds authorized.
The purposes of the Peace Corps are to provide trained Americans
at the request of host countries to assist in the development of middle-
level manpower resources and to promote international understanding
between the people of the United States and their counterparts
overseas.
In meeting these purposes, Peace Corps Volunteers have served in
sixty-nine countries throughout the world during the ten years of the
agency's existence. Teams of U.S. volunteers are currently active in
fifty-five countries, and are participating with multinational teams in
Yemen and Panama.
The 1972 program proposes an average of 6,100 Peace Corps Volun-
teers operating in 56 host countries. This compares with the fiscal 1971
program in which an average of 6,900 Peace Corps Volunteers operated
in 61 host countries. '
During the past two years the Peace Corps has endeavored with
some success to increase the number of experienced mid-career pro-
fessionals and skilled craftsmen who serve in its overseas operations
and this effort will be continued during fiscal year 1972.
The readjustment allowance for Volunteers, which is accrued for
each month of service and made available to the Volunteer at the com-
pletion of his service, has been set at $75 per month since the inception
of the agency ten years ago. The budget estimate and the committee
recommendation provide for a continuation at this ceiling which is
established by authorizing legislation.
It should also be noted that, as of July 1, 1971, operations of the
Peace Corps were merged with various other federally-sponsored
volunteer programs into a single agency, ACTION.
The following table provides a 'breakdown of the anticipated 1972
cost of the Peace Corps' program by country :
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Africa:
Region and country, fiscal year 1972 funding
Latin America:
i
li
000
$25
Botswana -----------
$376,000
a--------------
v
Bo
,
428
000
2
Cameroon-----------
529, 000
Brazil---------------
,
,
000
199
_____________
Chad
410, 000
British Honduras-----
,
000
682
__
Congo--------------
963, 000
Chile ---------------
,
683
000
1
Dahomey -----------
392, 000
Colombia ------------
,
,
000
741
Ethiopia ------------
1,973,000
Costa Rica ----------
,
000
549
Gambia- - - - - - - - - - - - -
380, 000
Dominican Republic-_
,
000
932
------------
Ghana
1,821,000
Eastern Caribbean ---
,
000
845
--
Guinea______________
113,000
Ecuador -------------
,
Ivory Coast
,
l
t
000
473
Kenya -- --------------
Lesotho-------------
1,758,000
151,000
a - - - - --- - - -
ema
Gua
Guyana -------------
,
----------
000
870
Liberia ---------------
1,929,000
Honduras -----------
,
049 000
1
Malawi_____________
274, 000
Jamaica -------------
,
000
512
Mali----------------
264,000
Nicaragua-----------
,
Mauritius -----------
236, 000
Panama-------------
---392 000
Niger---------------
614,000
Paraguay -_____------
435
000
1
i
Ni
40
000
Peru----------------
,
,
a -------------
ger
-------------
Senegal
,
601,000
Uruguay ------------
133,000
000
656
1
Sierra Leone_______--
1,311,000
Venezuela -----------
,
,
000
524
1
Somalia Republic____
__________
Regional support--_-_
,
,
Swaziland-----------
235, 000
Latin
btotal
S
Tanzania------------
,
u
-
000
593
16
Togo---------------
,
,
726,000 America ---------
Uganda-------------
409,000
Near East
427000 North Africa
Upper Volta ---------
Regional support-----
,
South
1,392:000 andAf ghanistana - - - _ _ _ _ _ 973, 000
Subtotal, Africa____ 18, 064, 000 Ceylon______________ ----------
India --------------- 3, 212, 000
Iran________________ 1,236,000
Libya ---------------
Morocco------------ 1,051,000
Nepal--------------- 1,237,000
East Asia and Pacific: Tunisia------------- 512, 000
Fiji----------------- 649,000 Turkey ------------- 53,000
Korea_______________ 2,066,000 Malta --------------- 72, 000
Malaysia----_____--- 2,287,000 Regional support----_ 175,000
Micronesia ---------- 2, 121, 000
Philippines---------- 1,912,000 Subtotal, North
Thailand ------------ 1, 566, 000 Africa, Near
Tonga-------------- 394, 000 East, and South
Western Samoa ------ 477, 000 Asia ------------ 8,521,000
Regional support----- 75, 000 New countries----------- 300, 000
- Administrative support--- 18, 579, 000
Subtotal, East Asia Program support--------- _3,596,000
and Pacific------ 11, 547, 000
Grand total------- 77, 200, 000
In view of the intervening time since the committee took testimony
on the Peace Corps budget, the Chairman of the Subcommittee re-
quested the record be brought up to date by the Director of Action
under which the Peace Corps is now operated. This reply follows for
the information of the Senate.
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ACTION,
Washington, D.C., January 21,1972.
Hon. WILLIAM PROXMIRE,
U.S. Senate,
Washington, D.C.
DEAR SENATOR PRoxMIRE : Thank you for your interest in the Peace
Corps and your concern about the grave situation now facing us.
In answer to your questions about the cause of this current crisis,
and the effects it could have, let me first detail the issue for you.
Last year, fiscal 1971, the Peace Corps spent $85 million and placed
approximately 5,000 new volunteers into the field. This year, fiscal
1972, we sought ways of saving in line with the Presidents attempt to
reduce Federal expenditures. In planning this year's programs, the
Peace Corps found that it was able to increase the number of volun-
teers and trainees from last year and still operate on a lower budget of
$82.2 million. During fiscal 1972, it was planned that the Peace Corps
would grow to 8,500 volunteers and enroll 5,800 trainees.
After hearings in June and July, the Congress passed the authoriza-
tion bill, setting a ceiling of $77.2 million. In order to operate within
this budget, instead of the $82.2 million requested, we were forced to do
rigorous cost-cutting. Heavy reductions were made in staff and two of
the four operating regions were combined. We reluctantly decided to
invite 800 fewer volunteers into training. Additionally, Washington
and country budgets were cut to barest operating minimums. Finally,
we even reviewed each training program to reduce the normal training
time and effect cost savings.
If we are to keep the Peace Corps operative as it now stands avoid-
ing massive cutbacks on the present volunteer and staff strength, $77.2
million is rock bottom. This means that the Congress must pass an
appropriation bill equal to the authorized $77.2 million. Since the 1st
of July we have been operating on a series of continuing resolutions.
As indicated, we have found ways to continue effectively under the
$77.2 million ceiling. However in December, unexpectedly the Congress
set a new ceiling of $72 million on the most recent continuing resolu-
tion which expires on February 22.
Ris then is the issue : If at this late stage in the fiscal year, the Con-
gress votes anything less than $77.2 million, the drastic action of
recalling volunteers, cancelling training projects, and cutting staff
further will be necessary. If the $77.2 million is approved, we will
survive. The difference may seem small, but it is a vital difference when
the full year's expenditures are taken into account. The fact is, the
Peace Corps started the year spending at the rate of $82.2 million; cut
costs to $77.2 million when the authorization was passed; and now if
the budget is cut again, will be forced to cut back at a disproportionate
rate for the remainder of the year. In actual terms, this means that no
more than $19 million would be available for the period following Feb-
ruary 22, or the date that the continuing resolution expires.
Because the volunteers' allowances are small, a large number must
be brought home in order to curb expenditures significantly. Since ef-
forts we can make to save money are in themselves costly, airfare for
returning volunteers and staff ; severance pay; costs of breaking leases
and terminating contracts; they will further compound the strains on
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Peace Corps funding Therefore, today we are in the painful and para-
doxical situation of having to begin to bring about a significant reduc-
tion in the Peace Corps activities-in spite of rising levels of support
for the Peace Corps both at home and abroad-in order to avoid hav-
ing to dismantle it completely in the very near future.
I hope this answers your questions about our appropriation
dilemma-why we feel we need the $77.2 million authorized and why
we have enunciated contingency plans which demonstrate the serious
nature of the effect of unexpected budget pressures.
I have always appreciated your interest in the Peace Corps and am
especially grateful for your concern at this time. Please call me if you
have any other questions concerning our current crisis.
Sincerely,
JOSEPH H. BLATCHFORD, Director.
RYUKYU ISLANDS, ARMY, ADMINISTRATION
Appropriation, 1971 ---------------------------------------------
$6,736,000
Budget estimate, 1972 -------------------------------------------
4,564,000
Authorization (P.L. 86-629)-------------------------------------(Indefinite)
House allowance ------------------------------------------------ 4,216,000
Committee recommendation ------------------------------------- 4,5649000
The committee recommendation of $4,564,000 is $2,172,000 less than
the amount appropriated in fiscal 1971, the same as the budget esti-
mate, and $348,000 over the House allowance.
On November 21, 1969, the President and the Prime Minister of
Japan agreed to expedite consultations looking toward reversion of
the Ryukyu Islands administration to Japan during 1972, subject to
necessary legislative support. On June 17, 1971, the United States and
Japan signed an agreement whereby the United States will relinquish,
in favor of Japan, all its rights and interests attained under the
United States-Japanese Peace Treaty. The agreement will become
effective two months after exchange of instruments of ratification.
'Thereafter, Japan will assume full responsibility for governing those
Islands terminating the U.S. Civil Administration of the Ryukyu Is-
lands, and the U.S. bases on Okinawa will become subject to the U.S.-
Japan Treaty of Mutual Cooperation and Security, together with its
related arrangements. The budget estimate assumes that U.C. Civil
Administration will be terminated on June 30, 1972. A breakdown of
this estimate by project follows :
Administrative Activities-43,314,000.-Included in this project is
the salary of civilian and military personnel serving the U.S. Civil
Administration of the Ryukyu Islands and the Preparatory Commis-
sion 'relating to the reversion of the Islands to Japan. Also included is
the cost of travel associated with U.S. personnel for return of these
personnel to the continental United States after completion of their
term of service. This account also covers the cost of informational
materials and services provided the Ryukyuan people, and operating
cost of governmental buildings, supplies, equipment and administra-
tive support.
Aid to the Ryukyutm, Economy-$1,060,000.-Included in this
amount is a payment to the Government of the Ryukyu Islands for
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public safety activities relating to the presence of United States forces
and their dependents.
In the event the transfer of authority to Japan takes place prior to
June 30, 1972, the need for operational funds will be reduced pro-
portionately and the committee directs that should this occur the
Department reduce its expenditures accordingly, with unused balances
returned to the Treasury.
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
ASSISTANCE TO REFUGEES IN THE UNITED STATES
(CUBAN REFUGEE PROGRAM)
Appropriation, 1971 ------------------------------------------- $112,130,000
Budget estimate, 1972 ------------------------------------------ 144,103,000
Authorization (Public Law 87-510)----------------------------- (Indefinite)
House allowance ---------------------------------------------- 100,000,000
Committee recommendation ------------------------------------ 129, 000,000
The committee recommendation of $129,000,000 is $16,870,000 more
than the amount appropriated in fiscal 1971, $15,103,000 under the
budget estimate, and $29,000,000 over the House allowance.
The position of the Cuban Government concerning continuation of
the Cuban airlift brings many uncertainties into this program. The
budget request, as submitted, anticipated 48,000 Cuban refugees reach-
ing the United States in fiscal year 1972 with 42,000 of this number
arriving via the airlift. As of January 1, 1972, however, only 16,792
had arrived with only 15,392 arriving by the airlift.
The end of the airlift either because of action of the Cuban govern-
ment or the fact all eligible refugees have been transported has been
predicted almost weekly for the past several months and it now op-
erates sporadically only once every week or ten days.
In taking it's action, the committee has taken note of the General
Accounting Office's November 3, 1971 report on this program.
The committee directs that any saving brought about by temporary
or permanent cessation of the airlift not be reprogrammed among the
activities in the appropriation.
The committee recommends the following allocation of funds
among the several activities and directs that the entire Federal pro-
gram be phased out by June 30,1973.
Welfare Assistance and Services-$97,400,000.-This amount should
provide for a continuation of the special Federal program of welfare
and other services for those refugees who have been in the United
States for less than three years. It would not, however, provide for
continuing these special Federal payments for an unlimited time as
is now the case. Bill language has been included reflecting this action.
Resettlement Within the United States--$4,400,000.-These funds
provide for a program designed to encourage a broadly based re-
settlement of Cuban refugees most of whom initially arrive in Florida.
Education--x'20,000,000.-This amount provides for assistance to
affected public school systems and vocational, professional and English
training, together with a special unbudgeted $600,000 reimbursement
for the Dade County Public Schools. Although funds have been ro-
vided for the special loan program for higher education of Cuban
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refugees, the committee feels that this program discriminates against
deserving non-Cubans and proposes its early curtailment.
Health Services-$'3,900,000.-This amount provides for a clinic at
the refugee center, out-patient services at local Miami hospitals, com-
munity health services and extended hospitalization for tubercular
and mental patients. These special services would be continued for
refugees who have been in the United States less than three years.
Movement of Refugees from Cuba-$800,000.-This is the current
request for the reduced number of flights presently anticipated. This
amount is provided with the stipulation that unused balances shall
not be transferred to other activities if not needed for the airlift and
thereby be returned to the Treasury.
Program Administration-$2,500,000.-A sizable portion of the
amount requested for administration of the program. A much larger
reduction is expected next year because of the curtailment of the
program.
DEPARTMENT OF STATE
MIGRATION AND REFUGEE ASSISTANCE
Appropriation, 1971 ---------------------------------------------
$5,706,000
Budget estimate, 1972-------------------------------------------
8,690,000
Authorization (P.L. 87-510 and P.L. 89-230) ---------------------
(Indefinite)
House allowance-----------------------------------------------
8,690,000
Committee recommendation-------------------------------------
5,790,000
The committee recommendation of $5,790,000 is $84,000 more than
the amount appropriated in fiscal 1971, $2,900,000 under the budget
estimate and the House allowance.
The committee strongly believes that there is an urgent need to con-
solidate United States refugee assistance efforts into a single office
rather than have these programs fragmented between such diverse
agencies as the Department of Health, Education, and Welfare, the
Department of State, the Department of the Army, and the Agency
for International Development.
Once this is done and responsibility for administration and coordi-
nation is fixed, the United States effort should be geared to operate
through international organizations. This would permit the United
States to shoulder a "fair share" of what is clearly an international
responsibility.
It is evident that almost a quarter of a century after the dislocations
of World War II the priorities and resources of the Department of
State's Office of Migration and Refugee Assistance are almost ex-
clusively directed toward European refugees. This discriminates
against crying and almost overwhelming needs in the Near East,
Nigeria, Vietnam and particularly Pakistan.
Just as the United States has underwritten the entire costs of the
Cuban Refugee Program, the committee feels that the European
countries of original asylum (principally Austria, West Germany,
Italy, Turkey, Lebanon and Greece) are fully capable of meeting the
need for care and maintenance of those seeking temporary refuge
within their borders. Therefore, the committee recommends elimina-
tion of the United States Refugee Program (U.S.R.P.), under which
supplementary assistance has heretofore been provided for European
refugees. Actual fiscal year 1972 expenses incurred to date under con-
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tinuing resolution authority should be underwritten first from admin-
istrative expenses for which the full amount has been allowed and
which can now be sharply curtailed and if necessary from other pro-
grams such as the United States contribution to I.d.E.M.'s adminis-
trative budget (U.S. share of 34 percent compares to 11 percent for
Germany, 11 percent for Australia, and 2 percent for Israel).
The detail of the committee's allocation is as follows :
Senate
Requested committee
allocation recommendation
Intergovernmental Committee for European Migration--------------------------- $3,25D,000 $3, 250, 000
United Nations High Commissioner for refugees--------------------------- 1,000,000 1, 000, 000
S. refugee program-- --- . 2,900, 000 None
Refugees from Communist China ----------------------------------------- ---- 500, 000 500,000
International Committee of the Red Cross-------------------------------------- 50,000 50,000
Administration -------------------------------------------------------------- 990,000 990,000
Total --------------------------------------------------------------- 8,690,000 5,790,000
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL FINANCIAL INSTITUTIONS
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
(WORLD BANK)
Appropriation, 1971------------------------------------------- None
Amended budget estimate (H. Doe. 92-149) --------------------- $246, 100,000
House allowance---------------------------------------------- None
Committee recommendation------------------------------------ 246, 100, 000
The committee recommendation of $246,100,000 is the same as the
budget estimate and $246,100,000 over the House allowance.
The World Bank (International Bank for Reconstruction and De-
velopment, or IBRD) formally came into existence in December, 1945
and began operations in June, 1946. It now has 116 member countries.
Since 1948, when its European reconstruction lending was completed,
its principal role has been to finance development projects and pro-
grams in its developing member countries. Heavy emphasis has been
placed on projects in the fields of power (32 percent of loans to date)
and transportation (31 percent), with substantial amounts also for
industry (15 percent) and agriculture (9 percent). More recently, the
Bank has entered such fields as education and health, and has thus far
devoted 3 percent of its total loans to them; however, roughly 10 per-
cent of the Bank's 1971 lending was in these areas. Unlike its affiliate,
the International Development Association, which operates from gov-
ernmental contributions and makes loans on "soft" (concessional)
terms, the World Bank makes its loans on conventional terms-cur-
rently 71/4 percent interest, with maturities generally of 20-25 years-
reflecting the fact that the Bank relies primarily on borrowing in
international capital markets for its funds. Since the Bank's inception,
the United States has subscribed $635 million to laid in capital and a
further $5,715 million to callable capital on a contingent liability basis.
The total U.S. subscription of $6,350 million is 27.4 percent of the
Bank's total subscribed capital of $23.2 billion.
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The committee considered amended budget estimates of $246,100,000
for increases in the International Bank for Reconstruction and De-
velopment. This request consists of (1) $24,610,000, the U.S. share
(11%) of an increase of $222 million in paid-in capital and (2)
$221,490,000, the U.S. share (11%) of an increase of $2 billion in
callable capital. These estimates are identical to the request made and
not allowed in the fiscal year 1971 second supplemental.
The increase in the United States subscription will be made pur-
suant to an authorized increase of $3 billion of the capital of the Bank
to accommodate special increases in capital subscriptions from 75
member countries in amounts corresponding to special increases in
their quotas in the International Monetary Fund. The Department
of the Treasury advised the committee that these special increases in
World Bank subscriptions are based on a long-standing policy of the
Bank to maintain capital subscriptions in proportion to Monetary
Fund quotas, and that over the years this practice has resulted in more
than $3.5 billion in new capital for the Bank. Because of its large
initial capital contribution this is the first time that the United States
has been requested to participate in special increases and the Bank's
Board of Governors has established a deadline for subscribing to these
increases of November 16, 1971. The committee feels that since the
United States has urged other members of the Bank to accept special
increases in their Bank subscription following special increases in their
International Monetary Fund quotas these funds should now be
appropriated.
Of the total amount considered, the committee recommends
$246,100,000 which consists of $24,610,000 in paid-in capital, and
$221,490,000 in callable capital.
INTER-AMERICAN DEVELOPMENT BANK
Appropriation, 1971-------------------------------------------
$275,000,000
Amended budget estimate, 1972--------------------------------
261, 760, 000
House allowance---------------------------------------------
150,000,000
Committee recommendation------------------------------------
261, 760,000
The committee recommendation of $261,760,000 is $13,240,000 less
than the amount appropriated in fiscal 1971, identical to the budget
estimate, and $111,760,000 over the House allowance.
. The Inter-American Development Bank (IDB) was established in
December 1959, and began operations in September of 1960. The pur-
pose of the Bank is to accelerate the economic growth of its underde-
veloped member countries by loans made from its own capital, funds
raised by it in world financial markets and other available resources.
Two types of loans are made by the IDB to its members : first, loans
are made from Ordinary Capital, which provides resources on con-
ventional terms, currently 8 percent for 18 to 20 years with grace pe-
riods of 2-3 years in most instances. The Ordinary Capital loan pro-
gram relies substantially on bond issues placed in world markets;
these issues are limited to the amount of the U.S. callable capital sub-
scription but guaranteed in the event of a call by the callable capital
subscriptions of all the member countries. Second, loans are made
from the Fund for Special Operations which provides funds on rela-
tively soft terms, 3 to 4 percent for 20 to 25 years.
The bulk of the Bank's resources has gone to loans for agriculture
(28 percent), transportation (19 percent), industry (18 percent) and
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power (16 percent) as compared to education (3 percent) and health
(9 percent).
As of December 31, 1970, the U.S. subscription to Ordinary Capital
totaled $150.0 million for paid-in capital and $1,023.5 million for call-
able capital. The total U.S. subscription of $1,173.5 million represents
approximately 42.5 percent of the Bank's total capital of $2,763.0 mil-
lion. Of the latter figure $388.5 million was paid-in and $2,374.5 mil-
lion was callable. On the same date, the United States had contributed
$1,800 million of the $2,328.0 million contributed for the Fund for
Special Operations, or approximately 77 percent of the Fund's total
resources.
The committee considered amended budget estimates of $261,760,000
for the Inter-American Development Bank. This request consisted of
the following : (1) $75,000,000 toward the authorized U.S. share
(37.5%) of an increase of $400 million in paid-in capital. Of this
amount, $25 million is brought forward (H. Doc. 92-149) as not ap-
propriated in the second fiscal year 1971 supplemental in which $50
million was requested; (2) $136,760,000, the balance of the amount for
callable capital, is brought forward (H. Doc. 92-149) as not appropri-
ated in the second fiscal year 1971 supplemental in which $336,760,000
was requested. The total increase to callable capital is $1.6 billion of
which the authorized U.S. share is 42 percent; (3) $50,000,000 toward
the authorized U.S. share (66.7%) of an increase of $1.5 billion in
the Fund for Special Operations. This amount is carried forward
(H. Doc. 92-149) as not appropriated in the second fiscal year 1971
supplemental in which $100 million was requested.
Of the total amount considered the committee recommends $261,-
760,000 which consists of $75,000,000 in paid-in capital, $136,760,000
in callable capital, and $50,000,000 as an additional contribution to
the Fund for Special Operations.
TITLE IV
EXPORT-IMPORT BANK OF THE UNITED STATES
LIMITATION ON PROGRAM ACTIVITY
Limitation on program activity, 1971----------------------- ($4,67.5,483,000)
Amended budget estimate (H. Doe. 92-175) ----------------- (7, 323, 675, 000)
House allowance------------------------------------------ (7, 323, 675, 000)
Committee recommendation-------------------------------- (7,323, 675,000)
For this item, the committee recommends a limitation on program
activity of $7,323,675,000 which is the same as the House allowance
and the amended budget estimate.
The original 1972 budget estimate requested $3,632,940,000 in new
program activity for the Export-Import Bank. However, on Novem-
ber 16, 1971, the President transmitted to the Congress a budget
amendment to the Bank's fiscal year 1972 budget which revised the
new program activity level to $7,323,675. This is an increase of
$3,690,735 over the fiscal year 1971 budget request.
Three billion dollars of the increase is due to the proposed inaugu-
ration by the Bank of a short-term discount facility. This program is
designed to assist United States exports which are financed on terms
of less-than one year.
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In its justification the Bank states that there is a great need for a
program which can assure U.S. commercial banks that adequate back-
up liquidity for short-term financing of U.S. exports will be available
in times of money shortages. It also states that the absence of such a
facility is hampering our Nation's exporters who rely on short-term
financing as an essential part of their export sales package.
The Bank feels that its short-term discount program is designed to
provide U.S. commercial banks with assurances that if their liquidity
situation tightens, their short-term export financing commitments can
be met through short-term loans from Eximbank on their eligible
export financing paper. The interest rate differential between the Ex-
imbank loan and the underlying export paper will be sufficient to cover
the commercial bank's cost associated with their loan, but will not
provide a profit incentive to use Eximbank's funds.
In August, Congress passed and President Nixon signed the Export
Expansion Finance Act of 1971 (P.L. 92-126) which, among other
things, excludes the receipts and disbursements of the Bank from the
budget of the United States Government. Congress can still exercise
control over the Bank's activities, since the Bank is required to submit
its budget for program activities and administrative expenses through
the President of the United States to the Congress for its consideration
and approval.
The Bank has the authority to borrow up to $6 billion from the U.S.
Treasury. However, Eximbank expects to have no net borrowings
from the Treasury for any fiscal year now that the Bank is out of the
Federal budget. It will instead obtain needed funds from the private
market.
It is important to note that, as in the past, all of the Bank's borrow-
ings from the private money market remain subject to the prior ap-
proval of the Secretary of the Treasury, as to rate, terms, amount, and
timing, in accordance with section 303 (a) of the Government Corpora-
tion Control Act.
Eximbank's lending programs are intended to finance U.S. export
sales which could only be made with the Bank's assistance and which
would not have occurred without the Bank's help. In this connection
the Committee expects commercial banks will be required to certify
that a proposed export loan will not be made without Eximbank assist-
ance as a condition for obtaining such assistance.
During fiscal year 1971, total U.S. exports were about $44 billion.
The Bank estimates that about $3 billion, or approximately 6.8 percent,
were supported directly by one of the Bank's programs via disburse-
ments under direct credits or shipments under guarantees or insurance
policies. On the other hand, there is research which suggests that many
Eximbank loans merely replace private loans which would have been
made without Eximbank assistance. The Committee believes the certifi-
cation requirements referred to above will strengthen the administra-
tion of the program by insuring that Eximbank loans actually increase
U.S. exports.
Within this structure Eximbank will generally have authorization
levels significantly higher than disbursement levels. Therefore, al-
though $3.0 billion is the authorization level requested for the short-
term program, this does not imply an equivalent growth in federal
credit.
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The Committee certainly favors an increase in U.S. exports. How-
ever, there is some doubt as to whether Ex-Im Bank credit actually
increases export sales. Moreover, unless the Bank carefully coordinates
its activities with the Federal Reserve Board, the new short term dis-
count loan program could interfere with the Board's attempts to re-
strain inflation through monetary policy. Discount loan commitments
made during periods of relative credit availability are not likely to
be activated until a credit shortage develops. Commercial banks may
then escape some of the credit restraints imposed by the Federal Re-
serve Board by borrowing from the Ex-Im Bank's short term discount
loan facility. The Ex-Im Bank would be competing for funds to supply
to commercial banks at the very time the Board was trying to restrict
the total supply of credit. As a result, more of the burden of fighting
inflation could be shifted to less protected sectors of the economy such
as housing, small business, and State and local construction.
The Committee believes Federal credit assistance should be used
to stimulate exports. However, the Committee does not subscribe to
the view that export financing should be completely exempt from the
credit restraints sought by the Federal Reserve Board in its efforts to
protect the purchasing power of the dollar. There is only so much
private credit to go around. If more credit goes into export financing,
less credit is available for other purposes. Those sectors most likely
to be adversely affected are housing, small business and State and local
construction. The Committee does not believe that these sectors have
any lesser claim on credit resources.
The Committee has been assured by the President of the Ex-Im
Bank that its program will be consistent with monetary policy. In
order to achieve this objective, the Committee expects the Ex-Im Bank
will periodically consult with the Federal Reserve Board and care-
fully coordinate its activities with the Board's monetary policy.
Aside from the amount requested for the short-term discount facil-
ity, the remainder of the increase in the requested fiscal 1972 program
activity level provides for expansion of the Bank's medium-term dis-
count loan program, the guarantee and insurance program, and its
direct loan facilities.
The following schedule shows the Bank's estimated activity for
fiscal year 1972:
Loan program : Thousands
Equipment and services authorizations________________________ $2,765,000
Commodity authorizations----------------------------------- 75 000 Medium-term discount authorizations_________________________ 862,000
Short-term discount authorizations___________________________ 3, 600,000
Special foreign trade authorizations_____________ -------------------------- 50,000
Subtotal, gross loan authorizations-__-___-___ _ 7, 352, 000
Less participations in and cancellations of loans authorized
during fiscal year 1972__________________________________ 802,000
Net loan authorizations------------------------------------ 6,550,000
Guarantee and insurance program :
Authorization of new and renewed policies____________________ 4, 100,000
Less repayment and cancellations on guarantees and insurance__ 2, 224, 000
Subtotal ------------------------------------------------- 1,876,000
Less reduction from use of fractional reserve and adjustments__ 1, 337, 425
Charge to new program activity for guarantees and insurance- 538,575
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Other charges to program activity :
'
000
$235
000
---------------------
Interest and nonadministrative expenses
,
00
Equipment ------=-----------------------------------------
1
Total other than for administrative expense : "New Program
Activity? -----------------------------------------------
7,323,675
Administrative expense' ------------------------------------
8,072
Total ----------------------------------------------------
7,331,747
On the accrual basis.
LIMITATION ON ADMINISTRATIVE EXPENSES
Limitation on administrative expenses, 1971--------------------
($7,048,000)
Budget estimate----------------------------------------------
(8,072,000)
House allowance----------------------------------------------
(8,072,000)
Committee recommendation-----------------------------------
(8,072,000)
The committee recommends a limitation of $8,072,000 for this item,
which is the same as the House allowance and the budget estimate. This
amount is $1,024,000 over the 1971 limitation of $7,048,000.
This provides for an increase in personnel to staff the Bank's new
short-term discount program and to handle increasing workloads in
other programs of the Bank.
The Bank has also requested an increase from $12,000 to $18,000 in
the amount of its administrative expenses which can be used by the
Board of Directors of the Bank for entertainment expenses.
In view of the expanded activities of the Bank, increased travel, and
continuing emphasis on informing the U.S. exporting community of
the Bank's programs of export assistance, the committee recommends
this increase.
TITLE V-GENERAL PROVISIONS
DEPARTMENT OF LABOR
UNEMPLOYMENT TRUST FUND
Appropriation, 1971-------------------------------------------- None
Budget estimate, 1972----------------------------------------- None
House allowance---------------------------------------------- None
Committee recommendation------------------------------------- (Indefinite)
Appropriation o Advances to Extended Unemployment Compen-
sation Account.-Section 204(d) of the Federal-State Extended Un-
employment Compensation Act of 1970 (title II, P.L. 91-3'73)
provides that payments of the Federal share of extended unemploy-
ment compensation be paid monthly to each State which has incurred
expenditures for such compensation. Section 204(e) of that Act pro-
vides that the Secretary of the Treasury, in accordance with a certifica-
tion by the Secretary of Labor, shall make such payments to the States
by transfers from the extended unemployment compensation account
in the Unemployment Trust Fund to the account of such State in the
Unemployment Trust Fund. Section 203(c) of the Emergency Un-
employment Compensation Act of 1971 (Title II, Public Law 92-224)
also provides for the same arrangement (transfers from the extended
unemployment compensation account to the State accounts in the Un-
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employment Trust Fund) for making payments to the States for pay-
ments of emergency unemployment compensation under the provisions
of that Act.
The extended unemployment compensation account, established by
section 905 (a) of title IX of the Social Security Act (as amended by
section 305 of title III of P.L. 91-373) derives its resources from an
"earmarked" proportion of Federal unemployment tax receipts (Sec-
tion 905(b) (1), SSA). No appropriation is required for transfers of
amounts from the extended unemployment compensation account to
State accounts in the Unemployment Trust Fund.
Normally, it could be anticipated that the resources of the extended
unemployment compensation account would be sufficient for the pay-
ments out of that account which are provided for by law. However, it
was foreseen that, should "a recession occur before the account has
been built up to the desired level or extend for a period long enough
to exhaust the account," contingency financing would be needed.
(p. 36, Report of the Committee on Finance, U.S. Senate to accom-
pany H.R. 14705, Senate Report No. 91-752, 91st Congress, 2nd Ses-
sion; p. 31, Report of the Committee on Ways and Means, House of
Representatives, to accompany H.R. 14705, House Report No. 91-612,
91st Congress, 1st Session). Section 905(d) of title IX of the Social
Security Act, therefore, was amended by section 305 of P.L. 91-373
to authorize to be appropriated, without fiscal year limitation, to the
extended unemployment compensation account, as repayable advances
(without interest) such sums as may be necessary to make the neces-
sary transfers to the State accounts. As its share of Federal unem-
ployment tax receipts are received and credited to the extended un-
employment compensation account, and the account is again built up
to the point at which the Secretary of the Treasury determines, in
consultation with the Secretary of Labor, it contains an amount ade-
quate for such purpose, the repayable advances are repaid, without
interest, by transfers from the extended unemployment compensation
account to the general fund of the Treasury.
Because of heavy unemployment in 1970 and 1971, the Federal-State
Extended Unemployment Compensation program has been operative
in many States for some or all of the period October 10, 1970 to the
present. Payments to States for the Federal Government's share of the
compensation paid have used up accumulated reserves in the extended
unemployment compensation account and have outrun the tax revenues
earmarked for the extended unemployment compensation account. As
a result, the payments to the States which are provided for by law have
been made only through the month of July 1971, and the affected
States have been forced to use their own State accounts in the Trust
Fund to carry the Federal Government's share of the costs of the pro-
gram in recent months. The amount owed to the States totaled
$61,363,453 as of October 1, 1971. In the absence of an appropriation,
this amount could be expected to increase to $233,000,000 by June 30,
1972, notwithstanding additional tax revenue due in January and
April 1972. Pending legislation for an emergency unemployment com-
pensation, while it provides for a tax increase sufficient to pay for the
program, will impose new obligations on the extended unemployment
compensation account at least until the new tax revenues become avail-
able starting in April 1972.
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59
The bill therefore appropriates to the extended benefit account in
the Unemployment Trust Fund such sums as may be necessary to
enable the Secretary of the Treasury to make the repayable advances
to extended unemployment compensation account which are author-
ized, and which will be sufficient for the transfers to the State accounts
in the Trust Fund from the extended unemployment compensation
account which are provided for in the Federal-State Extended Unem-
ployment Compensation Act of 1970 (P.L. 91-373, Title II) and in
the Emergency Unemployment Compensation Act of 1971 (P.L. 92-
224, Title II).
The appropriation, without specified amount, is limited to the cur-
rent fiscal year. It is expected that any appropriations required for
this purpose in subsequent fiscal years will be requested by the Admin-
istration in specific amounts.
As of September 30, 1971, the amounts owed to State accounts for
the Federal Government's share of Federal-State extended unem-
ployment compensation were as follows :
Alabama -----------------
$1, 672
Nevada ------------------
$223,683
Alaska ------------------
118,513
New Hampshire ----------
131,508
971, 915
--- 12
California
New Jersey---------------
6,849,039
,
------------
734,665
--------- 6
Connecticut
New York---------------- 12, 714, 114
-----
Idaho --------------------
,
85,384
Oregon ------------------
630,666
Maine -------------------
404,254
Pennsylvania ------------
5,230,377
Kansas ------------------
493,886
Rhode Island-------------
868,643
Massachusetts ------------
3, 905,176
Utah --------------------
168,805
Michigan ----------------
5,405,158
Vermont -----------------
244,792
Minnesota ---------------
268,367
W. Virginia---------------
10,116
Washington --------------
3,902,760
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LIMITATIONS, LANGUAGE CHANGES, AND LEGISLATIVE
PROVISIONS NOT INCLUDED IN HOUSE PASSED
BILL
Under Title I "Economic Assistance" :
, of which $15,000,000 shall be available only for the United
Nations' Children's Fund: (New Language)
Under Title I "American Schools and Hospitals Abroad" :
Provided, That only such projects enumerated in the re-
spective reports of the Foreign Affairs Committee of the
House of Representatives and the Foreign Relations Com-
mittee of the Senate covering authorizing legislation for pro-
grams funded hereunder shall be financed out of the funds
made available under this head: Provided further, That
the maximum. amount of funds allocated to any nonbudgeted
project shall not exceed $2,000,000. to be available 4
tier 9" empe"dittwe solely in iecordanee with t 4e following
" ".' el. e fti I44v-&~ of Beier; Lebanon------ $6,000, 099
ei beeg Graduate Seheel e? Weismann In-
-------------- ------ 4-;400,990
University of the aefieeas, Moe iee-----------
4-,400, 000
Rebert Gollegc, rnrke ---------------------- 4-,000,000
Project 14OPE------------------------------ 4,600,008
Amcriean Hospital in Ronne; Itay_ - - - - - - - - - - - 599- 900
P+egeafn Stipp --------------------------- 900809
Una eeated funds -------------------------- ;300, 098
(New Language and Language Deleted)
Under Title I "Security Supporting Assistance" :
:Provided further, That of the funds appropriated under this
paragraph, no less than $50,000,000 shall be available for
obligation for security supporting assistance for Israel only
Under Title I "Overseas Private Investment Corporation" :
seas Private TffVestnrent Corporrati~r e es- Eer
expenses autho i$ed by seetien , $9{;900,0OO to
until expended. (Language Deleted.)
(New Language)
Under Title I "Inter-American Social Development Institute" :
The Inter-American Social Development Institute is
authorized to make such expenditures within the limits of
(60)
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finds available to it and in accordance with the law, and to
make such contracts and commitments without regard to fiscal
year limitations as provided by section 104 of the Government
Corporation Control Act, as amended (31 U.S.C. 849), as
may be necessary in carrying out its authorized programs
during the current fiscal year: Provided, That not to exceed
$11,000,000 shall be available to carry out the authorized
programs during the current fiscal year. (New Language)
Under Title I "General Provisions", Section 112:
See- 444: The ?tmndc appi'epriatcd ee made available
pttrsnant to this Act shall be available netwithetanding the
peevisiene of seetien 49 of Pxblie Law 90 672. (Language
Deleted)
Under Title I "General Provisions", Section 111:
S-Be- 444- No pact of any apprepria tiers contained in this
Act be u sed to }n=ude aesiotanee to Leuadei (Language
Deleted)
Under Title I "General Provisions" :
Sec. 118. None of the funds appropriated or made available
under titles I and II of this Act may be obligated or expended
until the enactment of S. 2819, 92nd Congress (Limitation)
Under Title III "Assistance to Refugees in the United States" :
: And provided further, That none of the funds made avail-
able herein shall be available after February 22, .1971, to
furnish medical and welfare payments to refugees who have
resided in the United States for three years or more.
(Limitation)
Under Title III "Inter-American Development Bank" :
; and $50,000,000 shall be available for the Fwnd for Special
Operations. (New Language)
Under Title III "International Bank for Reconstruction and
Development" :
To pay for the increase in the United States subscription to
the International Bank for Reconstruction and Development, as
authorized by the Act of December 30, 1970 (Public Law 91-'
599), $246,100,000, to remain available until expended. (New
Language)
Under "Title V-General Provisions" insert:
Sec. 504. Not to exceed $800,000 of the funds appropriated
under title I of this Act and for the Peace Corps under this Act
may be used to reimburse the expenses of the Inspector General,
Foreign Assistance, of which amount not to exceed $650,000 may
be expended for compensation for personnel. (Limitation)
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Sec. 505. The Secretary of the Treasury is hereby given the
authority to advance from the general fund of the Treasury, with-
out fiscal year limitation and without prior appropriations, to
the extended unemployment compensation account, as repayable
advances (without interest) such sums as may be necessary to
make such payments. Such repayable advances shall be repaid,
without interest, by transfers from the extended unemployment
compensation account to the general fund of the Treasury, at such
times as the amount in the extended unemployment compensa-
tion account is determined by the Secretary of the Treasury, in
consultation with the Secretary of Labor, to be adequate for such
purpose. Any amount transferred as a repayment under this
paragraph shall be credited against, and shall operate to reduce,
any balance of advances repayable under this paragraph. (New
Language-Legislative Provision)
Sec. 506. For making the repayable advances authorized to be
appropriated to the extended unemployment compensation
account in the Unemployment Trust Fund by section 905(d) of
title IX of the Social Security Act, such sums as may be necessary
to enable the Secretary of the Treasury to make such advances
until June 30, 1972. The Secretary of the Treasury shall make
such repayable advances without prior specific appropriation
other than as is herein provided at such times as he determines,
until June 30, 1972, in consultation with the Secretary of Labor,
that the amount in the extended unemployment compensation
account is insufficient for the payments to States out of that
account which are provided for by law. (New Language-
Legislative Provision)
COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL)
AUTHORITY FOR 1971 AND THE BUDGET ESTIMATES FOR 1972
PERMANENT NEW BUDGET (OBLIGATIONAL) AUTHORITY-
FEDERAL FUNDS
[Becomes available automatically under earlier, or "permanent" law without further, or annual, action by
the Congress. Thus, these amounts are not included in the accompanying bill]
Agency and item
(1)
Budget esti-
New budget mates of new
(obligational) (obligational) Increase (-[-) or
authority, 1971 authority, 1972 decrease (-)
Export-Import Bank: Program activity (indefinite
authorization to spend agency debt receipts) ---------------------------- $225,000,000 +$225, 000, 000
PERMANENT NEW BUDGET (OBLIGATIONAL) AUTHORITY-
TRUST FUNDS
Economic assistance: Technical assistance: U.S. dollars
advanced fromforeigngovernments---------------------
$6,000,000
$6,000,000
--------------_-
Military assistance: Advances, foreign military sales
(contract authorization) --------------------------------
860,000,000
850,000,000
----------------
Peace Corps: Miscellaneous trust funds------------------
503,000
503,000
--------_-_----
Total, permanent new budget (obligational) author-
ity, trust funds---------------------------------
856,503,000
856,503,000
--------------
Note: Amounts as estimated and shown in the January 1071 budget document. Some items are indefinite
i n amount, and thus are subject to later reestimation.
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COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR 1971 AND BUDGET
ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR 1972
TITLE I-FOREIGN ASSISTANCE ACT ACTIVITIES
[Note-All amounts are in the form of "appropriations" unless otherwise indicated]
New budget Budget
(obli gational) estimates of new
authority, (obligational)
fiscal year 1971 authority,
Item (includes supps.) fiscal year 1972
(1) (2) (3)
FUNDS APPROPRIATED TO THE PRESIDENT
ECONOMIC ASSISTANCE -
Worldwide, technical assistance----------------------- $166,750,000
Alliance for Progress, technical assistance-------------- 82, 875, 000
International organizations and programs------------- 103,810,000
Programs relating to population growth--------------- (4)
American schools and hospitals abroad---------------- 12, 895,000
Indus Basin Development Fund, grants-------------- 4,925,000
Indus Basin Development Fund, loans---------------- 6,980,000
United Nations Relief and Works Agency (Arab
refugees) --------------------------------------------
Contingency fund------------------------------------- 22,600,000
Refugee relief assistance (East Pakistan) -------------------------------
E 250,000,000
Alliance for Progress, development loans--------------
287,500,000
235,000,000
Development loans------------------------------------
See footnotes at end of table.
420,000,
400,000,000
New budget Senate committee recommendations compared with-
1 $232, 929,000
3129,745,000
3141,000,000
(1)
10,175,000
15,000,000
12,000,000
100,000,000
New budget
(obligational)
authority
allowed in
House bill
(4)
(obligational)
authority
recommended
by the Senate
committee
(5)
New budget
(obligational)
authority,
fiscal year 1971
(6)
$150,000,000
$165,000,000
-$1,760,000
75,000,000
80,000,000
-2,875,000
41,000,000
138,000,000
+34,190, 000
50,000,000
125,000,000
+125,000,000
17,200, 000
20,000,000
+7,105,000
7,500,000
15,000,000
+10, 075, 000
6,000,000
12,000,000
+5,020,000
-1,000,000
30,000,000
30,000,000
+7,500,000
175, 000,000
175, 000, 000
+175,000,000
150,000,000
50,000,000
-237,500,000
250,000,000
150,000,000
-270,000,000
Budget
estimates of new
authority, House
fiscal year 1972 allowance
(7) (8)
-$67,M,000 +$15,000,000
-49,745,000 +5,000,000
-3,000,000 +97,000,000
+125,000,000 +75,000,000
+9,825,000 +2,800,000
------------------ +7,500,000
------------------ +6,000,000
------------------------------------
-70,000,000 ------------------
-75,000,000 ------------------
-185, 000, 000 -100,000,000
-250,000,000 -100,000,000
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COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR 1971 AND BUDGET
ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR 1972-Continued
[Note-All amounts are in the form of "appropriations" unless otherwise indicated]
New budget
Budget
New budget
New budget
(obligational)
Senate committee recommendations compared with-
Item
(obligational)
authority,
fiscal year 1971
(in
l
d
estimates of new
(obligational)
authority,
(obligational)
authority
allowed in
authority
recommended
by the Senate
New budget
(obligational)
authority
Budget
estimates of new
authority
H
(1)
c
u
es sups.)
fiscal year 1972
House bill
committee
,
fiscal year 1971
,
fiscal year 1972
ouse
allowance
(4)
(5)
(6)
(7)
(8)
Administrative expenses:
A.I.D
51
000
000
60
200
000
54
600
000
State
S
,
,
4,100, 000
,
,
$4,555,000
,
,
4,255,000
50,000,000
4,221,000
-1, 000,000
+121,000
-10,200,000
-334,000
-4,600,000
-34,000
ubtotal, economic assistance-------------------
1,164,335,000
1,590,604,000
1, 010, 555, 000
1,014,221,000
-150,114,000
-576,383, 000
+3,666,000
MILITARY ASSISTANCE
Military assistance -----------------------------------
690,000,000
705,000,000
552,000,000
350,000,000
-340,000,000
-355,000,000
-202,000,000
SECURITY SUPPORTING ASSISTANCE
Securitysupportingassistance -------------------------
569,600,000
9764,614,000
575,000,000
400,000,000
-169,600,000
-364, 614 000
,
-175 000, 000
,
Subtotal-------------------------------------
2,423,935,000
3,060,218,000
2,137,555,000
1,764,221,000
-669,714,000
-1,295,997,000
-373,334,000
OVERSEAS PRIVATE INVESTMENT CORPORATION
Overseas Private Investment Corporation, reserves--_
18, 750, 000
25, 000,000
25,000,000
INTER-AMERICAN SOCIAL DEVELOPMENT INSTITUTE
Inter-American Social Development Institute (limita-
tion on obligations) --------------------------------
(10,000,000)
(11,0010,000)
(11, 000,000)
(-10,000,000)
(-11,000,000)
(+11,000,000)
Total, title I, new budget (obligational) author.
ity, Foreign Assistance Act Activities---------
j'42685 , 000
11
3,085, 218,000
a 2,162,555,000
1,764,221,000
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COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR 1971 AND BUDGET
ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR 1972-Continued
[Note-All amounts are in the form of "appropriations" unless otherwise indicated]
Item
(1)
Foreign military credit sales---------------------------
Military credit sales to Israel--------------------------
Total, title 11, new budget (obligational) au-
thority, Foreign military credit sales---------
New budget Budget
(obligational) estimates of new
authority, (obligational)
fiscal year 1971 authority,
(includes supps.) fiscal year 1 7)
New budget
(obligational)
(obligational)
authority
New budget
authority
recommended
(obligational)
allowed in
by the Senate
authority,
House bill
committee
fiscal year 1971
Budget
estimates of new
authority,
fiscal year 1972
House
allowance
(8)
200, 000, 000 510,000,000 510,000,000 400, 000, 000 +200,000,000 -110,000,000 -110,000,000
500,000,000 ------------------------------------------------------ -500,000,000 ------------------------------------
FUNDS APPROPRIATED TO THE PRESIDENT
Peace Corps-------------------------------------------
90,000,000
13 82, 200,000
68,000,000
77,200,000
-12,800,000
-5,000,000
+9,200,000
Limitation on administrative expenses------------
DEPARTMENT OF THE ARMY-CIVIL FIINCTIONS
Ryukyu Islands, Army, Administration-------------
6,736,000
14 4,564,000
4,216,000
4,564,000
-2,172,000
------------------
+348,000
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
Assistance to refugees in the United States (Cuban
program)--------------------------------------------
112,130,000
18144,103,000
100,000, 000
129,000,000
+16,870,000
-15,103,000
+29,000,000
DEPARTMENT OF STATE
Migration and refugee assistance----------------------
5,706,000
16 8,690,000
8, 690, 000
5,790,000
+84, 000
-2,900,000
-2,900,000
FUNDS APPROPRIATED TO THE PRESIDENT
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COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR 1971 AND BUDGET
ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR 1972-Continued
[Note-All amounts are in the form of "appropriations" unless otherwise indicated]
Item
(1)
INTERNATIONAL FINANCIAL INSTITUTIONS
Asian Development Bank (paid-in capital) -----------
Inter-American Development Bank:
Paid-in capital ------------------------------------
Callable capital----------------------------------
Fund for special operations-------'-----------------
Subtotal, IDB ----------------------------------
New budget Budget
(obligational) estimates of new
authority, (obligational)
fiscal year 1971 authority,
(includes supps.) fiscal year 1972
. (2) (3)
New budget Senate committee recommendations compared with-
New budget (obligational)
(obligabtional) authority New budget Budget
authority recommended (obligational) estimates of new
allowed in by the Senate authority, authority, House
House bill committee fiscal year 1971 fiscal year 1972 allowance
(4) (5) (6) (7) (8)
20,000,000 ---- -------------------------------------------------
25,000,000 75,000,000 13,240,000 75,000,000 +50,000,000 ------------------ +61,760,000
200,000,000 136,760,000 136,760,000 136,760,000 -63,240,000 ------------------------------------
50,000,000 50,000,000 ------------------ 50,000,000 ------------------------------------ +50,000,000
275,00D,000 17 261, 760,000 150, 000, 000 261, 760,000 -13, 240,000 ------------------ +111,760,000
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International Bank for Reconstruction and Develop-
ment:
Paid-in capital------------------------------------------------------ 24,610,000 ------------------ 24,610,000 +24,610,000 -.---------------- +24,610,000
Callable capital--------------------------------------------------- 221,490,000 ------------------ 221,490,000 +221,490,000 ------------------ +221,490,000
Subtotal,IBRD ------------------------------------------------ 19246,100,000 ------------------ 246,100,000 +246,100,000 ------------------ +246,100,000
International Development Association--------------- 160,000,000 ------------------------------------------------------ -160,000,000 ------------------------------------
International Monetary -r`und(Quota increase)-------- (1,540,000,000) (------------) (------------) (------------) (-1,540,000,000) (---------------) ---------------
Total, title III, new budget (obligational) auth-
ority, Foreign Assistance (other)-------------- 669, 572, 000 747, 417,000 330, 906,000 724, 414,000 +54,842,000 -23,003,000 +393,508,000
TITLE IV-EXPORT-IMPORT BANK OF THE UNITED STATES
Limitation on program activity----------------------- (4,075,483,000) 19(7,384,676,000) (7,32-4,676,000) (7,323,675,000) (+3,248,192,000) (---------------) ---------------
Limitation on administrative expense----------------- (7,048,000) 20(8,072,000) (8,072,000) (8,072,000) (+1,024,000) (---------------) ---------------
Total, title IV, Export-Import Bank of the
United States, limitations on use of corporate
funds----------------------------------------- (4,082,531,000) (7,331,747,000) (7,881,747,000) (7,331,747,000) (+3,249,216,000) (--------------) ---------------
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COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR 1971 AND BUDGET
ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR 1972-Continued
[Note-All amounts are in the form of "appropriations" unless otherwise indicated]
New budget
Senate committee recommendations compared with-
New budget
Budget
New budget
(obligational)
-
(obligational)
estimates of new
(obligational)
authority
New budget
Budget
authority,
(obligational)
authority
recommended
(obligational)
estimates of new
Item
fiscal year 1971
authority,
allowed in
by the Senate
authority,
authority
House
(1)
(includes supps.)
fiscal year 1972
House bill
committee
fiscal year 1971
,
fiscal year 1972
allowance
(2)
(3)
(4)
(5)
(6)
(7)
(8)
TITLE V-DEPARTMENT OF LABOR UNEMPLOYMENT TRUST FUND
Department of Labor Unemployment Trust Fund-_-------------------------------------
Grand total, new budget (obligational) authority,
titles I,II,III, IV,and V---------------------------
3,812,257,000
4,342,635,000
Reappropriation of unobligated balances:
(a) Economic assistance ---------------------------
(26,503,060)
(25,149,000)
(25,149,000)
(25,149,000)
(-1,554,000)(-- -------------)(-
`
(b) Military assistance---------------------------
(6,300,000)
(4,000,000)
(4,000,000)
(4,000,000)
----------
----
(-2,300,000)(------------- )(
(c) Security supporting assistance ----
(768,009)
(2,721,009)
(2,721,000)
(2,721,000)
(+1,953,000)(---------------)(----------------
1 Includes an increase of $1,654,000 contained in H. Doe. 92-93.
3 Includes an increase of $745,000 contained in H. Doe. 92-93.
3 Includes $13,300,000 for UNR W A which was funded in fiscal year 1971 from "Support-
ing assistance."
4 In fiscal year 1971, this program was funded at a level of $100,000,000 mostly from the
"Development loan" accounts.
6 In the fiscal year 1972 budget, this program was proposed to be funded at a level of
$100,000,000 mostly from the "Technical assistance" accounts.
s Submitted as a budget amendment in H. Doe. 92-166.
7 Includes an increase of $2,600,000 contained in H. Doe. 92-93.
A Includes an increase of $155,000 contained in H. Doe. 9293.
9 Includes an increase of $2,064,000 contained in H. Doe. 92-93.
10 Unobligated balances as of June 30, 1970, reappropriated.
11 Unobligated balances as of June 30, 1971, requested to be reappropriated.
12 Unobligated balances reappropriated.
13 Includes an increase of $11,000,000 contained in H. Does. 92-93 ($1,100,000) and 92-122
($9,900,000).
14 Includes an increase of $114,000 contained in H. Doe. 92-93.
16 Includes an increase of $103,000 contained in H. Doc. 92-93.
16 Includes an increase of $40,000 contained in H. Doc. 92-93.
17 Includes an Increase of $211,760,000 contained in H. Doe. 92-149.
is Submitted as a budget amendment in H. Doe. 92-149.
16 Includes an increase in limitation of $3,690,735,000 contained in H. Doc. 92-175.
30 Includes an increase in limitation of $373,000 contained in H. Doe. 92-93.
71 Indefinite.
O
Approved For Release 2002/01/10 : CIA-RDP74B00415R000600100002-9