MUTUAL SECURITY ACT OF 1960 REPORT OF THE COMMITTEE ON FOREIGN AFFAIRS ON H.R. 11510 TO AMEND THE MUTUAL SECURITY ACT OF 1954, AS AMENDED, AND FOR OTHER PURPOSES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000300200003-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 175
• Document Creation Date: December 15, 2016
• Document Release Date: August 27, 2003
• Sequence Number: 3
• Publication Date: April 7, 1960
• Content Type: REPORT

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Union uaienaar o. (j L
86th Congress, 2d Session - - - - House Report No. 1464
MUTUAL SECURITY ACT OF 1960
REPORT
OF THE
COMMITTEE ON FOREIGN AFFAIRS
ON
H.R. 11510
TO AMEND FURTHER THE MUTUAL SECURITY ACT OF
1954, AS AMENDED, AND FOR OTHER PURPOSES
APRIL 7, 1960.-Committed to the Committee of the Whole House
on the State of the Union and ordered to he printed
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1960
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COMMITTEE ON FOREIGN AFFAIRS
THOMAS E. MORGAN, Pennsylvania, Chairman
A. S. J. CARNAHAN, Missouri ROBERT B. CHIPERFIELD, Illinois
CLEMENT J. ZABLOCKI, Wisconsin FRANCES P. BOLTON, Ohio
OMAR BURLESON, Texas CHESTER E. MERROW, New Hampshire
EDNA F. KELLY, New York WALTI`sR II. JUDD, Minnesota
WAYNE L. HAYS, Ohio JAMES G. FULTON, Pennsylvania
ARMISTEAD I. SELDEN, JR., Alabama DONALD L. JACKSON, California
J. L. FILCHER, Georgia MARGUERITE STITT CHURCH, Illinois
BARRATT O'HARA, Illinois E. ROS$ ADAIR, Indiana
L. H. FOUNTAIN, North Carolina ALVIN M. BENTLEY, Michigan
DANTE B. FASCELL, Florida LAURENCE CURTIS, Massachusetts
FRANK M. COFFIN, Maine STUYVESANT WAINWRIGHT, New York
LEONARD FARBSTEIN, New York
D. S. SAUND, California
CHARLES C. DIGGS, JR., Michigan
LINDLEY BECKWORTH, Texas
HARRIS I3. MCDOWELL, JR., Delaware.
WILLIAM T. MURPHY, Illinois
WILLIAM H. MEYER, Vermont
CORNELIUS E. GALLAGHER, New Jersey
CHESTER BOWLES, Connecticut
BoYD CRAWFORD, Staff Admini?trator
Roy J. BULLOCK, Senior Staff Consultant
ALBERT C. F. WESTPHAL, Staff Consultant
FRANKLIN J. Scoter, Staff Consultant
JUNE NIGH, Senior Staff Assistant
WINIFRED G. OSBORNE, Staff Assistant
HELEN C. MATTA$, Staff Assistant
MYRTLE MELVI9, Staff Assistant
HELEN L. HASIIAOEN, Staff Assistant
MARY LOUISE O'BRIEN, Staff Assistant
ROBERT J. BOWEN, Clerical As8i8tant
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'CONTENTS
Page
Table on fiscal analysis of mutual security program for fiscal year 1961- 2
Summary of mutual security appropriations, chart--------- -: - 3
-Introduction --------------------------------------------------------- 5
Necessity for program recognized-_ ________________________ 5
'
of the program__________________________________ 6
Administration
Effectiveness of section 517 being demonstrated--------------- 7
Administrative improvements _._-----______------------------ 7
Inspector General and Comptroller__________________________ 10
Responsibility of the Ambassador ----------------- ----- ,------- 11
United States balance of payments and the outflow of gold -___-_ 12
The pipeline -------------------------------------------------- 14
Availability of mutual security presentation hooks to Members ofthe
House --------------------------------------------------- 17
Section 2, amending section 2: Statement of policy --------------------- 17
Chapter I. Military assistance ----------------------------- ---------- 18
Section 101, amending section 105 (b).(4) : Military assistance to Latin
America --------------------------------------------------- -_ 21
Chapter II. Economic assistance:
Defense Support:
Section 201(a), amending section 13.1(b): General authority _ __ 22
Section 201(b), amending section'] 41: Conditions of eligibility for
assistance ----------------------------------------------- 25
Section 201 (c), amending section 142(a): Agreements ----------- 25
Development Loan Fund:
Section 202(a), amending section 202; General powers of. the
Development Loan Fund_______________________ 25
Section 202(b), amending section 205(a): Management, powers,
Section 203(a), amending section 304: Bilateral technical co-
operation-----------------------------------------------
Point Four Youth Corps___________________________________
Section 203(b), amending section 306: Multilateral technical
cooperation ---------------------------------------------
(1) Contributions to United Nations Expanded Program of
Technical Assistance_____________________________
(2) Contributions to Organization of American States------
Special Assistance and other programs:
Section 204(a), amending section 400(a): Special Assistance-----
Section 204(b), amending section 401: United Nations Emergency
Force --------------------------------------------------
Section 204(c), amending section 402: Earmarking of funds-----
Section 204(d), amending section 403: Responsibilities in Ger-
many--------------------------------------------------
Section 204(e), adding a new section 404: Indus Basin develop-
ment---------------------------------------------------
Section 204(f), amending section 405: Migrants, refugees, and
escapees ------------------------------------------------
(1) United Nations High Commissioner for Refugees------
(2) Escapees_______________
Section 204(g), amending section 406: Children's welfare-------
Section 204(h), amending section 407: Palestine refugees-------
Section 204(i), amending section 409(c): Ocean freight ---------
Section 204(j), amending section 411: Administrative and other
expenses ------------------------------------------------
Section 204(k), repealing section 412: President's special educa-
tion and training fund____________________________________
Section 204(1), amending section 419(a): Atoms for peace_______
Section 204 (m), adding a new section 421: Loans to small farmers-
ffi
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Chapter III. Contingency Fund: Page
Section 301, amending section 451 (b) : Contingency Fund---------- 45
Chapter IV. General and administrative provisions:
Section 401(a), repealing section 504(d) : Small machine tools and
other industrial equipment____________________________________ 46
Section 401(b), amending section 505(a) : Loan assistance and sales_ _ 46
Section 401(c), amending section 513: Notice to legislative commit-
tees -------------------------------------------------------- 47
Section 401(d), amending section 517: Completion of plans and cost
estimates--------------------------------------------------- 47
Section 401(e), amending section 527: Employment of personnel _ _ _ _ 47
(1) Personnel in the United States ---------------------------- 47--
(2) Personnel outside the United States _ .- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 48
(3) Aliens ------------------------------------------------ 48
Section 401(f) amending section 531: Security clearance------------ 48
Section 401(g5, amending section 533A(c): Inspector General and
Comptroller-------------------------------------------------- 49
Section 401(h), amending section 534(a): Reports ---_ _ _ _ _ _ _ _ _ _ _ _ _ _ 49
Section 401 (i), amending section 537(a)(3): Provisions on uses of
funds------------------------------------------------------ 49
Section 401(j), amending section 537(c): Construction or acquisition
of facilities abroad -------------------------------------------- 50
Section 401(k), adding a new section 552: Assistance to Cuba------- 51
Chapter V. Technical amendments reflecting new limits of United States:
Section 501: Technical amendments ------------------------------ 52
Chapter VI. Amendments to other laws:
Agricultural Trade Development and Assistance Act of 1954, as
amended:
Section 601(a), amending section 202: Famine relief and other
assistance ------------------------------------------------ 52
Section 601(b), amending section 203: General average contribu-
tions arising out of ocean transport ------------------------- 53
Mutual Security Act of 1959:
Section 602, repealing section 501(b) : International cooperation
in health -------------------------- --------------------- 53
Changes in existing law___________________________________________ 53-106
Supplemental views----------------------------------------------- 107
Minority report ---------------------------------------------------- 109
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Union t~11rr`` endar No. 6
86TH CONGRESS t HOUSE OF REPRESENTATIVES REPORT
2d Session s No. 1464
MUTUAL SECURITY ACT OF 1960
APRIL 7, 1960.--Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. MORGAN, from the Committee on Foreign Affairs, submitted the
following
REPORT
[To accompany H.R. 11510]
The Committee on Foreign Affairs, to whom was referred the bill
(H.R. 11510) to amend further the Mitua1 Security Act of 1954, as
amended, and for other purposes, having considered the same, report
favorably thereon without amendment and recommend that the bill
do pass.
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pp+ RY C'. OF 1960
Fiscal analysis of mutual security program for fiscal year 1961
(In thousands of dollars]
Appropria-
Adminis-
Adminis.
Committee Decrease
tions for
fiscal year
tration
approprla-
tration au-
thorization
recommen- (-) or in.
dation for crease (-h)
Program
1980 Public
,
tion
request for
.
fiscal year col. 3 less
Law
86-383
request for
fiscal year
1981 col. 4
fiscal year
1961
1961
(1)
(2).
(3)
(4) (5)
Chapter:
I. Military assistance:
See. 103(a): General authorization__,_____.___
$1,300,000
$2,000,000
(1)
(I)
-----------
11. Economic assistance:
Title r-Defense support: Sec. 131(b) ---------
Title II-Development Loan Fund: Sec, 203:
2 695,000
724,000
$724,000
$675,000
-$49, 000
Capitalization______________________________
8550,000
700,000
(1)
(1)
Title III-Technical cooperation:
Sec. 304: General authorization-----------
See. 306: Multilateral technical eoopera-
150,000
172,000
172,000
172,000
--------
tion and related programs:
(a) U
N
technics assistance
-
.
.
(b) Organization of American States.
30,000
1,200
33,000
1,500
33,000
1,500
33,000
1,500
__________-
Total, title III__________________
181,200
206,500
206,500
208,500
------------
Title IV-Special assistance and other pro-
grams:
See. 400(a): Special assistance_____________
See. 405: Migrants
refugees
and es-
245,000
268,500
288,500
258,000
-12,500
,
,
capees:
(a) Intergovernmental Committee
for European Migration ---------
7,371
10,000
(1)
(1)
(c) U.N. High Commissioner for
"'
Refugees------------------------
(d) Escaped program_________________
S
4
6
Ch
'
1,100
4,632
1,500
3,500
1,500
3,500
1,500.
3,600
------------
-------
-----
.
:
0
ildren
s welfare_______________
ee. Sec.407: Palestine refugees ---------------
12,000
25,000
12,000
18,600
12,000
18
600
12,000
18
500
-------
_________
Sec . 408(x): NATO science program-.---.- _
Sec. 409(c): Ocean freight chaiges On
1, 800
,
P)
,
(1)
_
-"`-'?-
voluntary reliefshipmenis______________
See. 410: Control Act expenses_
1,910
2,000
2,000
2,000
----
----
ec. 4 11: Administrative and other ex-
-
-
penses:
(b) Administrative and other ex-
penses (other than ch. I and
title II of ch. II)________________
(c) State Department administra-
38,000
40,000
40,000
40,000
tive expenses____________________
Sec. 419(a): Atoms for peace______________
8,100
1,500
8,300
3,400
(1)
3,400
(q
3,400
Total, title IV__________________
344,613
369,500
349,400
336,900
-12,500
Total, ch.II----------------------------
1,770,813
2,000,000
1,279,900
1,218,400
-81,600
II. Contingency fund: Sec. 451(b)--------------------
V. Sec. 604: Small business--------------------
165,000
175,000
175,000
100,000
-
V. Sec. 501(b) of MSA of 1969: International Co-
----------- -
-------"'-
operation in Health---------------------------- --
II. see. -704 of MSA of 1959: NATO parliamentar-
---------- -
-----------
(?)
(5)
fans-------------------------
-------------------- --
Sec. 705 of MSA of 1959: World Refugee Year ----- _
--------- --
---------- -
------
-
-
----------
--
-
--
-
-
-
--
---------- -
--------
-
- - - -
------------ -
-
-
--
---
-
--
-
Total ___________________________________________ 4
3,225,813 8
4,175,000
1,454,900
1,318,400
-136,500
i Authorization contained in the Mutual Security Act.
2 Not less than $45,000,000 shall be available for Spain.
e Not to exceed $1,820,000 to be available for administrative expenses.
4 In addition, the appropriation act contained sums for departments and activities other than the mutual
security legislation. These are not included.
e Repealed by see. 602.
This total does not include unobiigated balances of prior year appropriations requested to be continued
available.
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SUMMARY OF MUTUAL SECURITY APPROPRIATIONS
($ Millions)
FY 1960
APPROPRIATION
Other Pro9rpms
loo
Contingency
$155.
Special Assst//Ii r:
$2as~/
'ff
Teem cgt
Cooperai oar
fi _t$!81 oete~
Total ... $ 3,226* niort
a+ut..r. au.i .~wa: asp. tba. mr), sn.a.uu..: r C tt , l .e.nliw.
FY 1961
APPROPRIATION REQUEST
Total ...$ 4,175 Million
Based upon executive branch appropriation request
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MUTUAL SECURITY ACT OF 1960
INTRODUCTION
This bill authorizes $1,318,400,000 for carrying forward certain
portions of the mutual security program. In addition to the parts
of the program included in this authorization the Executive is re-
questing total appropriations of $2,720,100,000 against authorizations
already in effect, of which $2 billion is for military assistance and
$700 million is for the Development Loan Fund.
The authorization is $136,500,000 less than the amount requested
by the Executive and $41,942,000 less than the amounts appropriated
for these same items last year.
The bill contains a number of amendments to the basic legislation
intended to tighten the administration of the program as well as
provisions giving additional guidance to, or imposing new limitations
on, the Executive with respect to future operations..
A table showing the authorizations and the reductions is shown on
page 2.
NECESSITY FOR PROGRAM RECOGNIZED
In evaluating the request for the authorization of additional funds
for economic assistance and in reviewing the military assistance pro-
gram, the committee has given primary consideration to the admin-
istration of the mutual security program. Most of the American
people and the majority of the Congress recognize the soundness of
the concept of assisting the military forces of nations determined to
resist aggression and of providing economic aid to countries when their
present status or future development are of importance to the United
States.
Although one result of increasing emphasis on review and evaluation
of the program has been the disclosure of a number of instances of
waste in particular projects or operations, there was also developed
encouraging evidence that, in spite of its operating deficiencies in a
number of areas, the mutual security program is attaining its basic
objectives.
Certain of the newer nations which in an effort to follow a neutralist
policy had previously refused or played down United States assistance
as being inconsistent with the policy of placating the Union of Soviet
Socialist Republics have now come to value our friendship and counsel
as highly as our material assistance. They now have a better under-
standing of American policy. They recognize the United States has
no objective except to assist them in maintaining their own independ-
ence and improving their living conditions. There have been several
incidents which have shown that the attitude of the people of several of
the nations of Asia toward the Soviet Union and Communist China
has changed. The vociferous and occasionally spectacular claims of
Communist propaganda have been too often more than offset by the
flagrant aggressiveness and disregard of human welfare that have
characterized Communist performance.
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MUTUAL SECURITY ACT OF 1060
The obstacles confronting United States foreign policy have not
been removed nor have final solutions been found for our problems.
Nevertheless, there are indications that the governments and people
of many of the less developed nations have come to recognize that the
respect which we have demonstrated for their sovereignty and the
priority we have given to the fundamental and the long range justify
their trust.
There are those, however, who, while accepting the validity of the
concept of foreign aid, have misgivings as to the ability of the United
States to administer effectively a program of the magnitude and com-
plexity of current mutual security operations. The committee has
liven a high priority to following up reports of waste and inefficiency
in carrying out the program and has initiated legislation to correct
some of the major deficiencies.
The Committee on Foreign Affairs has expanded its firsthand ob-
servation of mutual security abroad. In addition to organized study
missions which have been reported in detail to the Congress (H. Rept.
1226: "Part I-Report of the Special Study Mission to Europe";
"Part II-A Study of European Economic Regionalism-A New
Era in Free World Economic Politics," and H. Rept. 1386: "Report
of the Special Study Mission to Asia, Western Pacific, Middle East,
Southern Europe and North Africa"), the Subcommittee for Review
of the Mutual Security Programs has continued its work. It sent a
staff survey team, consisting of three technicians (one borrowed from
the General Accounting Office with extensive experience in evaluating
military supply operations) to three Asian countries. The survey
team spent periods of 2 to 3 weeks in each country and was able to
observe the day-to-day operations in the field as well as at head-
quarters.
These field observations, as well as the analysis of the program
during the hearings, have led to the cuts in the authorizations for
various parts of the program summarized above. There is evidence
that the administrators of the mutual security program have in the
past overestimated the capacity of the less developed countries to
absorb and digest our assistance and that projects have been initiated
for which the United States was not ready to provide adequate guid-
ance and supervision.
Nevertheless, the committee is convinced. that the national security
and our future peace and well-being depend on improving the means by
which a large and complex program can be made to function rather
than to curtail drastically the magnitude or scope of the program.
No technique has been devised by which only the funds likely to be
wasted could be cut from the program in advance.
There is impressive evidence that the responsible officials have been
and are willing to revise procedures when basic defects have been
pointed out to them, as well as to correct, specific shortcomings ob-
served by the committee. As pointed out below, certain major pro-
cedural changes are only beginning to take effect. The administra-
tion of the mutual security program is improving, and there is every
indication that improvement will continue.
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MUTUAL SECURITY ACT OF' 19 6 0
Close, continuous, critical, and independent supervision and review
are of vital importance, however. A large proportion of mutual
security assistance, both military and economic, goes to the less de-
veloped countries, the governments of which lack experience and
administrative skills, where modern machinery and modern accounting
procedures are strange, where traditions and sometimes ethical stand-
ards are different from ours. A limited number of Americans in each
country, living. under unfavorable conditions, are confronted daily
with new and complex problems. Counsel and direction is provided
almost entirely by messages from officials in Washington who fre-
quently may not have all the facts available in the field and often are
concerned with a multitude of problems.
The Congress must reconcile itself to the fact that occasional mis-
takes will continue to be made and some money will be misspent.
The committee intends, however, not only by pressing for continued
improvement in procedures and organization, but also by its own ob-
servation, analysis, and review of all phases of the operations of the pro-
gram, to emphasize the necessity for improvement in administration.
Effectiveness of section 517 being demonstrated
In the Mutual Security Act of 1958, the committee provided that
in the future funds could not be obligated (and consequently carried
forward into succeeding fiscal years) until financial and engineering
plans, as well as cost estimates for the projects to be financed, had
been completed and necessary legislation on the part of the recipient
country could be anticipated within a year. The implementation of
section 517 was followed up in March and April 1959 by a survey con-
ducted in the Far East for the Committee on Foreign Affairs by Gen-
eral Accounting Office personnel to determine the effectiveness of
compliance.
The result has been a substantial improvement in International
Cooperation Administration practice and procedures. An example is
the announcement last July that the United States would finance in
Burma a major highway and dormitory-classroom facilities for the
University of Rangoon. The United States indicated that it was
prepared to make available $30 million over a 4-year period to finance
these projects. It is significant, however, that only $1 million was
obligated at that time to finance engineering and feasibility studies of
these projects. No further funds have yet been obligated. Before
the enactment of section 517, it was normal ICA practice to have
obligated the entire $30 million at the time the project was agreed
upon by the Government of Burma.
Even though the committee has found' a few cases where funds obli-
gated before fiscal 1959 are still carried on the books for projects which
appear to be. bogged down,. the present ICA regulations require that
the plans and. estimates necessary to meet the conditions established
by section 517 must be completed before funds are obligated, and it
appears that current procedures are adequate to meet the problem.
Administrative improvements
Although the basic objectives and general structure of the mutual
security program have not changed in recent years, a detailed review
of mutual security operations shows that there have been a series of
adjustments and improvements which corrected a number of the ad-
ministrative deficiencies and have enhanced the effectiveness of the
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8 MUTUAL SECURITY ACT OF 1060
program. Many of these innovations are the direct result of studies
and recommendations of the Committee on Foreign Affairs.
The tabulation summarizes a number of such improvements:
RESPONSIVENESS OF ECONOMIC PROGRAM OVER PAST 12 MONTHS TO
CRITICISM AND OBSERVATIONS OF COMMITTEE ON FOREIGN AFFAIRS
1. Other developed nations' con-
tributions to underdeveloped areas.--
Need and opportunity for increased
contributions by growing econo-
mies of other developed nations
(comment by Foreign Affairs Com-
mittee (HFAC) members during
hearings last year; new sec. 413 (d)).
2. Tropical Africa.-Need for
special attention to problems of
tropical Africa, including "Bal-
kanization" problem (comment by
HFAC members).
1. (a) International Develop-
ment Association.
(b) Establishment of develop-
ment assistance group of devel-
oped nations (OEEC).
(c) Consultations on increased
aid to India and Pakistan by other
nations.
(d) Joint Indus contribution.
2. (a) Special program for tropi-
cal Africa.
(b) Increased Technical Coop-
eration.
3. Latin America.-Need for in- 3. Inter-American Development
creased economic assistance to, Bank.
and partnership with, Latin Amer-
ica for development (comment by
HFAC members).
4. Accelerating development.-
(a) Need for accelerated devel-
opment progress in those coun-
tries demonstrating will and ca-
pacity for maximum self-help.
Need to maximize use of develop-
ment assistance where it can be
most effectively utilized (F1FAC
report).
(b) Need for significant eco-
nomic development progress and
examples to offset Communist
China progress (comment by
HFAC members).
5. Regional cooperation--under-
developed nations.-
(a) Need to greatly reduce ten-
sions between two major free
world countries-India and Pak-
istan (comment by HFAC mem-
bers).
(b) Need for encouragement of
increased regional cooperation
(comment by HFAC members;
new sec. 2(e)).
6. Limited capacity to utilize
aid.-HFAC report: "The author-
ization for defense support (and
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4. (a) Increased concentration
of development assistance in self-
help countries such as India,
Taiwan, Pakistan.
(b) Increased contributions by
other developed nations for devel-
opment assistance.
5. (a) Indus Basin project.
(b) Indus Basin project, Inter
American Development Bank,
program for tropical Africa.
6. (a) Fiscal year 1961 defense
support and special assistance
total request, incpluding new Africa
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MUTUAL SECURITY ACT OF 1960 9
for special assistance) was reduced
primarily because, in the judg-
ment of the committee, the ca-
pacity of certain of the less devel-
oped nations to make effective use
of economic aid is limited." Too
many large projects.
7. HFAC subcommittee report
of February 15, 1959: Finding on
premature obligation of funds.
8. IIFAC staff report of May
14, 1959: Finding of large unsub-
obligated amounts in selected pro-
jects.
9. HFAC subcommittee report
of February 15, 1959: Finding on
lack of adequate local commercial
interest on entrepreneurial-type pro-
jects.
10. HFAC subcommittee report
of February 15, 1959: Finding on
ICA organization (program per-
sonnel motivated by desire to
speed development while technical
personnel "primarily concerned
with avoiding errors").
11. HFAC report: "A review of
the material initially presented in
support of the request for 1960
mutual security funds by the
GAO * * * has indicated that a
more detailed presentation * * *
would be helpful to the Congress."
12. HFAC report: "It would be
helpful to the membership and the
public if a greater part of the
material were declassified." Ex-
ecutive privilege issue re evalua-
tion reports.
13. HFAC report: Need for
better inspection, "watch dog" and
evaluation procedures.
program, is less than the amount
the committee believed "absorb-
able" last year.
(b) Major (over $1 million) pro-
jected defense support and special
assistance projects reduced from
64 in fiscal year 1959 to 31 for
fiscal year 1961.
7. ICA revised procedures to
require, as general rule, full read-
iness for implementation before
obligation incurred.
8. For projects reviewed, pro-
portion of unsubobligated funds
to total reduced from 54 to 23
percent as of December 31, 1959.
9. ICA Office of Private Enter-
prise established and functioning
to develop local entrepreneurial
interest and action. Increased
DLF emphasis on this aspect is
shown in gaining private partici-
pation in Turkish steel mill pro-
ject. Taiwan expanded program
places primary emphasis on ex-
pansion of private sector.
10. ICA reorganization to place
program and technical personnel
under single leadership with effec-
tive staff assistance.
11. Supplementary materials,
which the GAO acknowledged as
responsive to the need, were pre-
sented during the hearings in 1959.
Comparable material is included in
the initial presentation this year.
12. (a) Current year figures de-
classified earlier than ever before.
(b) Greater proportion of mate-
rial unclassified.
(c) Special unclassified volume
onTechnical Cooperation prepared.
(d) Selected project volume un-
classified.
(e) Release of excerpted evalua-
tion reports.
13. Inspector General and
Comptroller established pursuant
to amendment.
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lU MUTUAL SECURITY ACT OF 1960
14. Growing belief that there
should be a broad "stock-taking"
of Technical Cooperation after 10
years of worldwide operation in
order to further increase its general
effectiveness.
15. Desirability of minimizing
adverse effect, if any, on balance of
payments of MSP economic assist-
ance (HFAC report).
16. Need for broadened use of
agricultural surpluses for devel-
opment and impact projects
(HFAC members comment).
14. Technical Cooperation study
established.
15. (a) DLF "American prefer-
ence" procurement policy.
(b) Increased contributions by
other nations in meeting needs for
economic aid.
16.:Proposed amendment to title
II, Public Law 480, incorporated
in Mutual Security Act of 1960.
The underlying assumptions on which the Mutual Security Act are
based as well as the policies to which the Act is directed should be
reexamined. It is the expectation of the committee that the new
administration will address itself to these matters before it submits the
mutual security bill next year.
Inspector General and Comptroller
Last year the committee initiated legislation establishing an In-
spector General and Comptroller with sufficient staff, funds, and
independence to carry on a continuous scrutiny and evaluation of
mutual security operations. The committee is disappointed in the
time which has been required for the Inspector General and Comp-
troller to get into operation and regrets that in building up an organiza-
tion, the Inspector General and Comptroller has drawn to so large an
extent on personnel already employed in the executive branch of the
Government, too many of whom have been connected with the
mutual security program.
The bill includes an amendment to eliminate from the duties
assigned to the Inspector General and Comptroller by law "designing
the form and prescribing the financial and statistical content of the
annual program presentation to the Congress." This should give the
Inspector General and Comptroller more time to seek out deficiencies
in mutual security operations and should also make it unnecessary for
him under any circumstances to defend the program or explain away
its shortcomings. The job of the Inspector General and Comptroller
is to discover waste and inefficiency in the mutual security program
and to see that corrective action is initiated. He should be en-
cumbered with no other responsibilities.
The work program discussed by the Inspector General and Comp-
troller with the committee, his concept of his responsibilities, and his
acquaintance with and understanding of deficiencies in mutual security
operations have given the committee confidence that this device for
tightening up the administration and control of the program is soundly
conceived and can be effective. Unless the Inspector General and
Comptroller clearly demonstrates the effectiveness of his operation
during the months to come, the Committee intends to take further
action to assure that deficiencies in the operation of the program
are detected and remedied.
It is essential that whatever impediments have been hampering the
Inspector General and Comptroller in getting into full-scale operation
be removed. This new office is in the State Department and is subject
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MUTUAL SECUR TY A O
to direct control by the Under Secretary. The committee urges that
the Under Secretary take a personal interest in overcoming whatever
bureaucratic resistance may have developed on the part of officials or
agencies desiring to avoid scrutiny.
Under existing law (sec. 533A) the expenses of the Inspector
General and Comptroller are charged to the programs under his
jurisdiction and have not been subject to any limitation other than
the judgment of the Inspector General and Comptroller.
The committee is convinced that a continuation of this procedure
is essential to the success of the operation. Unless the Inspector
General and Comptroller is skilled in budgetary procedures and
dedicated to austerity and economy to carry on his work with a mini-
mum of expenditure, he cannot be expected to discharge the responsi-
bility entrusted to him. If he cannot be trusted to control his own
operations, he should not be given responsibility for the entire
program.
On the other hand, if his operations are subjected to the budgetary
process which applies to other executive agencies, it must be recognized
that there will be a continuous and, in all probability, irresistible
pressure from all directions to curtail and impede his activities. It
would be poor economy if waste and inefficiency in a program involv-
ing expenditures of between $3 billion and $4 billion per year should
continue undetected because of a shortage of travel funds for investi-
gators or because it was impossible to pay the cost of a needed tech-
nician.
The committee notes with disapproval the establishment within the
Department of Defense of an independent evaluation staff (hearings,
p. 108). The Draper Committee recommended the establishment of
such a staff, but the Inspector General and Comptroller should be
able to do the job. If he is not organized or staffed to perform. this
function effectively, his program and personnel should be reorganized
to the extent necessary.
It is recognized that the Department of Defense must carry on a
continuous evaluation of its military assistance operations just as
the Army, Navy, and Air Force must evaluate their own operations
in carrying out the responsibilities assigned to them under the military
assistance program. Each of the services and the Defense Depart-
ment are organized so as to bring to the attention of senior officers
and civilian officials the information necessary for them to make such
evaluations.
There is clearly a place for a separate and independent staff to
concentrate on the evaluation function as it relates to the military
assistance program in all its aspects. There is no need, however, for
two such staffs and the establishment of competing organizations
would not only involve a duplication of effort but detract from the
objectivity and reliability of either effort.
Responsibility of the Ambassador
The Congress has given; increased attention to insuring that the.
Ambassador will. play the, paramount role in determining the content,.
coordination, and direction, of our aid pr:,ograms. Last year the Con
gress.rewrote' section 523;(b) of the, Mutual' Security Act to assure that
the Ambassador would coordinate recommendations on military assist-
ance, with political and economic considerations and, if he so desired,
add his own comments to such recommendations. Reports by con-
gressionAl committees have reasserted the primacy of our Ambassador..
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The report of the Special Study Mission to Europe made the observa-
tion that "the Ambassador be recognized at all times by personnel of
all agencies within the country to which he is accredited as the chief
representative of our Government and that all representatives keep
him fully informed of their activities and that he attach his own com-
ments to their recommendations." The statutes are clear on the role
of the Ambassador in the mutual security program. These are but-
tressed by independent observations of Members of Congress who
have visited countries in which we have assistance programs.
The Ambassador should not be content with general coordination
and supervision of the program. He should, and must, recognize his
responsibilities for its efficient administration. He must take what-
ever steps are necessary to assure that he will know how the program
is being operated. He should not hesitate to move into situations
where the performance of the operating agencies is deficient.
UNITED STATES BALANCE OF PAYMENTS AND THE OUTFLOW OF GOLD
The committee has given careful consideration to the alleged
relationship between United States expenditures for assistance to
foreign nations and the unfavorable United States balance of pay-
ments in 1958 and 1959, together with the net outflow of gold which has
occurred in recent years, and has arrived at the following conclusions:
The unfavorable United States balance of payments and the recent
outflow of gold have not been caused by the mutual security program
and the mutual security program has only a minor direct influence on
our balance of payments.
The termination or drastic curtailment of United States foreign
assistance would not reestablish a favorable balance of payments or
stop the export of gold.
The amount of United States expenditure for military and economic
assistance should be determined by the job to be done in order to
defend our security and to establish satisfactory relationships with the
governments and peoples of other nations. Such expenditures should
not be measured against or related to payment deficits or gold outflow.
In arriving at these conclusions, the committee made note of the
following:
The mutual security program has a relatively small direct influence
on the United States balance of payments, During fiscal 1959 total
United States mutual security expenditures were $3,898 million. Of
this total, three-fourths was spent in the United States and con-
sequently did not affect the balance of payments. While the remain-
ing one-fourth, approximately $1 billion, was-spent in foreign countries,
the bulk of this money was respent for purchases in the United
States. This represents but a small fraction of our total public and
private expenditures abroad which amounted to $29.5 billion in 1959.
Against the minor direct influence of foreign assistance expendi-
tures on the balance of payments should be offset the effect which
United States aid has had on the development of markets for United
States commodities and in opening up opportunities for United States
investment. Conversely, if United States aid were cut off or drasti-
cally reduced, the damage to world commerce and confidence would
be incalculable.
During recent years when the unfavorable balance of payments
was developing and the outflow of gold was increasing, our foreign
aid expenditures have been going down, as indicated by the chart on
"Trend of Expenditures" on page 13.
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TREND OF EXPENDITURES
APPROPRIATIONS BASIS
$ 600.0
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14
Current indications are that there has been a turn for the better,
Our export surplus for January 1960 was $354 million compared to
$94 million in January last year and for February was $217 million in
comparison to $65.1 million in February 1959. Furthermore, the
outflow of gold in 1959 was down to $700 million compared to $2.3
billion in 1958.
The United States does not and never has financed foreign assist-
ance with gold. The situation was well illustrated by the following
testimony before the committee (hearings, p. 177) :
I want to amplify this issue by an example: Suppose a poor
relation goes to the country store and. he wants to borrow
$10 from the owner of the store, and not only does he want
to borrow $10, but he wants it in goldbacks and not green-
backs. The storekeeper looks in the till and sees that he
doesn't have the money, but he has a lot of goods on the
shelves to tide his family over, canned goods and such. He
says, "I don't have $10 to lend you, but you are welcome to
my supply of goods." We have a lot of these goods on the
shelf to give. We can put some of our own factories into
double shift and supply goods that the Communists would
never be able to meet, certainly not in the next decade or
two.
Of the numerous analyses of the gold balance of payments situa-
tion which have come to the attention of the committee and which
have purported to represent skilled research or qualified professional
judgment, the only ones attributing the unfavorable situation to the
mutual security program were from organizations or individuals who
had previously identified themselves as opponents of the program.
The committee has continued to give attention to the size of the
unexpended balances of the mutual security program. These
unexpended balances, popularly called the pipeline, are funds that
have been obligated for goods and services that are on order but have
not yet been delivered. Payment must be made for them when
delivered. Following are the annual unexpended balances for the
entire mutual security program-military and nonmilitary-at the
close of each fiscal year since 1950.
1950--------------------------
Billion
$3.5
Billion
1956-------------------------- $6.3
1951--------------------------
7. 1
1957-------------------------- 6. 1
1952---------------------------
9.9
1958-------------------------- -5.3
1953--------------------------
10.0
1959-------------------------- 4.8
1954--------------------------
9.5
1960 (estimated) --------------- 4.7
1955--------------------------
7.9
These unexpended balances are available only to meet obligations
already incurred. They are not available to move the program forward
through the purchase of additional goods and services. These can
only be procured by making available new or unobligated money.
Some critics lump together the content of other programs such as the
Export-Import Bank and the sales of surplus agricultural commodities
to make a case that large availabilities exist. Each of these other
programs has, of course, a foreign policy objective. But the objectives
of these programs are not identical with those of the mutual.. security
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) wi-od b Tmod ON =00995R000300200003-3
App~d~8
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DEFENSE SUPPORT
PROPOSED PROGRAMS, FY 1961
DEFENSE SUPPORT
$724 million
Economic Assistance Appropriation Re?aesi
(12 6ouelrresJ
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24 MUTUAL SECURITY ACT OF 1960
The second way is by nonproject support in which the United
States finances imports of agricultural or industrial commodities or
makes direct cash payments. United States funds are paid to the
suppliers of materials or services delivered to the recipient country.
The ultimate objective is military; i.e., to make possible a military
contribution. The means, however, is assistance to the civilian econ-
omy to enable it to support the military contribution at an agreed
level. Requirements for eligibility are established by law and are
met through obligations made by formal agreement.
With the exception of technical cooperation programs and. such
functionally planned projects as malaria eradication, defense support
covers all programed economic assistance to countries where the
United States provides military assistance to significant forces. Total
United States obligations for defense support have slowly, but visibly,
declined from $1,196 million in fiscal 1957 to $766 million in fiscal 1960
to reflect generally improving conditions in the underdeveloped coun-
tries concerned.
As in the preceding 2 years, 12 countries are involved, and are the
same. They are:
Cambodia
China (Taiwan)
Greece
Iran
Korea Spain
Laos Thailand
Pakistan Turkey
Philippines Vietnam
All are underdeveloped. Eleven are on the periphery of the Sino-
Soviet bloc; the 12th is within easy range of hostile planes and missiles.
All contribute in varying degree to free world security in some or all
of the following crucial ways : (a) Local forces capable of resisting
external aggression; (b) maintenance of internal security; (c) military
base rights; (d) collective security, and (e) political and moral support.
Fifty-seven percent of the total is for three Far Eastern countries-
Korea, Taiwan, and Vietnam. All have three characteristics in
common: (a) They are divided; (b) superior Communist forces are on
their borders; (c) they maintain armed forces far in excess of those
which they could support with their own. resources. Combined they
maintain nearly a million and a half men under arms, which is equiva-
lent to 60 percent of the Armed Forces of the United States or Com-
munist China.
The United States has significant bases in Spain, Turkey, Greece,
Korea, Taiwan, and the Philippines. Six of the twelve (Greece,
Turkey, Iran, Pakistan, Thailand, and the Philippines) are members
of one or more of the major collective security organizations (NATO,
SEATO, CENTO). Three others-Laos, Cambodia, and Vietnam-
are being safeguarded by SEATO. Bilateral United States security
treaties exist with Korea, Taiwan, and the Philippines.
Programed requirements are reduced in 8 of the 12 countries as
compared with this year. This trend is expected to continue. Mod-
est increases were proposed for Pakistan, Laos, and Taiwan because
of special situations in those countries.
After detailed examination of the requirements for defense support
in fiscal 1961, the committee concluded that $675 million would
adequately meet the authorization for funding requirements of the
Executive.
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MUTUAL SECURITY ACT OF 1960 25
Section 201 (b), amending section 141:: Conditions of eligibility for
assistance
Section 141 now requires a prior finding by the President that
furnishing such assistance under this chapter (defense support) or
chapter I (military assistance) will strengthen the security of the
United States and promote world peace and that a receiving nation
shall have agreed to certain provisions as specified in section 142 (a)
of the Mutual Security Act of 1954 and such additional provisions
as the President deems necessary as conditions precedent to the
furnishing of such assistance.
The amendment proposes that the reference to "such assistance"
be changed to read "defense support or military equipment and
materials" for the purpose of freeing military assistance training and
information under chapter I from the conditions of this section as
was done in the act of 1959 with respect to Latin American countries
in connection with section 105 (b) (4) conditions.
This amendment is desirable in that it is frequently in the interest
of the United States to provide military training and information
to a country which, for political or other reasons, may not be in a
position to undertake the commitments required by section 142(a).
No defense support or military assistance, other than training or
information, would be needed.
Section 201(c), amending section 14.2(a): Agreements
The amendment is technical, consistent with the prior amend-
ment with respect to the requirement in the introductory clause for
agreements between the United States and recipient nations to speci-
fied provisions as a condition precedent for the furnishing of such
assistance, thereby similarly removing military training and informa-
tion from the requirement.
DEVELOPMENT LOAN FUND
Section 202(a), amending section 202: General powers of the Develop-
ment Loan Fund
This amendment restricts the authority of the Development Loan
Fund to allocate or commit funds unless an application or applica-
tions have been received from the borrowing country (1) supported
by sufficient engineering, financial, or other data to indicate reasonably
the use to be made of the funds and to permit a judgment as to the
economic and technical soundness as well as the practicability of the
project or program, and (2) equal to or in excess of the amount to be
allocated or committed. At the same time, the amendment makes
clear that allocations and commitments may be made in advance of the
receipt of such data when the President determines it to be in the
national interest to use Development Loan funds pursuant to multi-
lateral plans. In all cases, however, actual obligation of funds will
depend on the further step of working out substantive engineering
plans and cost estimates.
The committee was impressed by testimony from Hon. Porter
Hardy, chairman of the Subcommittee on Foreign Operations and
Monetary Affairs of the Government Operations Committee, and
other members of the subcommittee, setting forth the extent to which
Development Loan funds had been set aside on the basis of general
commitments to a borrowing country in advance of the submission
of specific proposals. It is recognized, particularly in the case of pro-
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26
grams or projects involving the participation of two or more countries
or joint planning with an international organization, that it is essential
for the United ?tates -to be able to commit itself to make available a
specified sum prior to receiving applications meeting the requirements
mentioned.
Section 202(b), amending section 205(a): Management, powers, and
authorities of the Development Loan Fund
This subsection amends section 205 (a) of the act which relates to the
management, powers, and authorities of the Development Loan Fund,
by substituting a reference to the Secretary of State for a reference
to the Under Secretary of State for Economic Affairs as a member
and the Chairman of the Board of Directors of the Development
Loan Fund. This is a perfecting amendment made in accordance
with the provision of Public Law 86-117 which provides that any
provision of law vesting authority in the Under Secretary of State
for Economic Affairs is amended to vest such authority in the Secre-
tary of State. The Secretary has designated the Under Secretary
of State toserve as Chairman of the Board of Directors of the Develop-
ment Loan Fund.
Section 203(a), amending section 304: Bilateral technical cooperation
Section 203(a) amends section 304 of the act which relates to
bilateral technical cooperation by deleting an obsolete authorization
for an appropriation and substituting an. authorization for an appro-
priation of $172 million for fiscal year 1961.
Bilateral technical cooperation programs are planned for approxi-
mately 60 countries and territories. These programs are not com-
modity or capital investment programs. Their primary objective
is to aid the peoples of the underdeveloped countries toestablish the
institutions, to increase their skills, and to stimulate the more efficient
use of their resources as a means of advancing their economic and
social development. The major fields of activity are agriculture,
education, public administration, and health.
The emphasis is on people-United States technicians working in the
underdeveloped countries, the training of local participants in the
United States and other free world countries, and contract services
with American universities, firms, and individuals providing special-
ized services. For next year 81 percent of the funds is proposed to
be used to pay for these activities. The balance will be used for,
demonstration supplies and equipment, to contribute to joint funds
supporting cooperative services such as the "servicios" in Latin
America, to cover the costs of employment of local personnel and of
local facilities, and to finance supporting services in Washington.
The program proposed for Europe amounts to $4 million, an increase
of $1.3 million over the current year. Only two countries in Europe
receive funds under this program-Spain and Yugoslavia. The
planned increase is entirely for Yugoslavia, attributable to the in-
creased significance which that country attaches to the program and
its increased capacity to utilize technical assistance.
For Africa the 1961 program is estimated at $24.3 million, which is
$3.35 million above the program for 1960. This increase is primarily
for new or relatively new programs in the nations that have recently
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MUTUAL SECURITY ACT OF 1960 27
achieved independence or are in the process of achieving it, such as
Morocco, Nigeria, Somalia, Tunisia, and the countries in West
Africa. Technical cooperation programs are one of the principal
means by which the United States can help the new African countries
move in a democratic and economically rational direction and encour-
ago their identification with the free world. An additional sum of
$20.0. million, provided under "Special Assistance," is planned for
Tropical Africa primarily to strengthen African institutions that can
better serve as effective centers of planning and leadership in educa-
tion. Thus, this special program will complement the bilateral
technical cooperation programs.
For the Near East and South Asia the 1961 program is planned at
$44.7 million, or $1.8 million above the program for 1960. This will
permit a strengthening of the programs in India, Afghanistan, and
several other countries. Slight decreases are planned for four
countries.
The program for the Far East is $36.0 million, which is $2.0 million
above the program for 1960. This additional amount is to provide
for increases in several countries, principally Korea and Indonesia.
A substantial further decrease is proposed for Japan to provide for the
orderly termination of the program in that country by the end of the
next fiscal year.
The 1961 request for the Latin American region of $39.5 million is
$2.0 million above the comparable program for 1960. This will finance
increases in programs in Argentina and the newly formed West Indies
Federation as well as the revitalized education program in Brazil.
Small increases are provided for the programs in Colombia, Ecuador,
and Haiti, while slight decreases are planned for Bolivia and Chile.
The interregional pprogram for 1961 is estimated to require $23.5
million, approximately $1.71 million more than for 1960. These
funds are for supporting expenses for the program in all the regions,
but cannot be assigned to any one country or region. They include
participant support, technical consultation and support, training and
development of oversew technicians, and program support services by
the Department of State.
It is a decade since technical cooperation, originally called Point 4,
was inaugurated. The administration of the program has gone
through a number of phases, not the least of which has been its merger
in organizations, FOA now ICA, that administer a variety of pro-
grams., In administering large economic aid programs there is always
the danger that the more modest technical cooperation programs
will not receive sufficient emphasis. Six years ago the committee
made this observation:
Under the present administrative arrangements there is no
one individual responsible solely for guiding and focusing
attention upon technical cooperation. It is now part of an
agency that has other responsibilities involving. more costly
operations. Technical cooperation tends to be a stepchild.
Of all the parts of the program encompassed in this (author-
ization) bill, this is the one that has the longest range possi-
bilities. Nowhere in the present administrative organiza-
tion is the technical cooperation program brought into focus
as a program. It is handled only on an. area basis. The com-
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28 MUTUAL SECURITY ACT OF 1960
mittee believes that which is needed is a single individual to
concern himself with the total program and who will give it
the stature and emphasis it merits as part of our foreign policy
(H. Rept. 1925, 83d Cong., 2d sess.).
There is much that is still valid in those earlier observations. The
committee was pleased to hear from the present Director of ICA,
Hon. James W. Riddleberger, that-
we are initiating a serious study of this program looking to-
ward recommendations as to how it can be made an increas-
ingly effective instrument in the decade ahead. We are
establishing a technical assistance study group for this pur-
pose. * * * We need to know better the types of activities
which give greatest promise of success. We must be ready
to accept new ideas and to experiment with new devices if
we are to achieve maximum results. For example, we need
to know more about the potentialities and value of what is
often referred to as community development. * * * (hear-
ings, p. 209).
The committee expects to be kept informed of the activities and
reports of the study group.
POINT FOUR YOUTH CORPS
The committee is convinced that there is a significant number of
young Americans trained in agriculture, home economics, and other
practical fields of activity who recognize the importance of world
problems, particularly those of the less developed countries. Among
them are many who are motivated more by a desire to serve than to
advance their careers. The report of the Special Study Mission to
Asia, Western Pacific, Middle East; Southern Europe, and North
Africa in its observation on Vietnam included the following:
With all the confusion in regards to our foreign aid projects
in Vietnam, the study mission is happy to report that there is
in that country one of the finest agricultural projects found
anywhere on their trip. Up in the hill country they visited
an experiment station where several young American boys,
graduates of agricultural colleges, were living in quonset huts
alongside the Vietnamese. This Station had planted in plots
practically every agricultural crop, including cotton, corn,
peanuts, potatoes, all kinds of vegetables, and raefel. Efforts
were being made to show the hill people, who had been given 5
acres of land and a water buffalo, how to plant and cultivate
in rows. This project is helping people to help themselves.
The entire project has not cost as much money as 1 mile of the
superhighway. It is such projects to which the study mission
gives its heartiest approval.
The American youth referred to above are selected, trained and
assigned by International Voluntary Services, Inc., under contract
with the International Cooperation Administration. They receive
$60 a month, plus food, clothing and simple quarters at the site of
their work. The committee was informed that at least 10 highly
qualified young graduates of agricultural colleges have volunteered
for each position made available by the International Cooperation Ad-
ministration.
It would be of great value not only only in creating adfaAvorablle impression
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MUTUAL SECURITY ACT OF 1980 29
ments in economic development if more places for such young people
were found in oversee operations. Various other proposals have also
been:'made for carrying out this concept. The Executive has not
undertaken vigorous action in this direction and has, on occasion,
appeared to regard the sending of such young people abroad as creat-
ing administrative problems rather than as an opportunity for
strengthening the program.
The committee believes that the United States is failing to utilize
one of its important assets by not developing a program for using
such services. If young Americans with farm backgrounds and
adequate technical training, who are willing to live in the villages and
share in the daily work of the people and who would serve with only a
minimum salary and subsistence allowance, could be carefully selected
and sent to the less developed countries, they could be unusually
effective representatives of the United States.
The committee announces its intention to make a comprehensive
survey of the possibilities for such an effort. Should this study
support the committee's present belief that there is substantial merit
in the proposal, the committee will prepare specific recommendations
for getting the program underway, and will expect the Executive
to make a serious and constructive effort to put the program into effec-
tive operation.
Section 203(b), amending section 806: Multilateral technical cooperation
Section 203 (b) amends section 306 of the act which relates to multi-
lateral technical cooperation and related programs in two respects.
Paragraph (1) amends subsection (a) dealing with contributions to
the United Nations Expanded Program of Technical Assistance and
the Special Fund by deleting obsolete language for an authorization
of an appropriation and authorizing an appropriation of $33 million
for calendar year 1961. The proviso in existing law limits the total
contribution of the United States to the Expanded Program of
Technical Assistance and the Special Fund to a maximum of 40
percent of the total amount contributed by all governments to both
programs for 1961.
`1 he United Nations Expanded Program of Technical Assistance and
the more recently established Special Fund are designed to stimulate
international cooperation in the economic development of the less
developed countries. These multilateral approaches are in addition
to our bilateral programs. There are several advantages in the multi-
lateral approach. It makes available a greater pool of technically
qualified personnel than could be supplied by the United States. In
the current year assistance is being given to 104 countries and terri-
tories and includes the provision of about 1,600 experts and some
2,000 fellowships for training abroad. Among the newer countries
there is often a marked sensitivity to reliance upon any one foreign
country. They find it preferable to use the resources of an inter-
national body. An additional advantage for the United States lies
in the fact that other countries contribute 60 percent of the cost. It
is recognized that the United States is the principal contributor to
these multilateral programs, and they serve as a visible and impressive
sign of our leadership and of our integrity of purpose.
About 80 governments now make voluntary contributions to a cen-
tral fund. Funds are allocated to participating specialized agencies
63899-60--3
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such as the World Health Organization and the Food and Agriculture
Organization to carry out projects requested by the less developed
countries. These agencies provide experts for work in the country
as well as training programs both at home and abroad. Primary
emphasis is given to activities in the fields of health, agriculture, and
education as well as in industrial development, public administration,
civil aviation, and other more specialized activities. The program
has been operating at a level of about $30 million annually.
The Special Fund, set up in 1957 largely upon the initiative of the
United States, began its operations in January 1959. It complements
the work of the expanded technical assistance program. Its purpose
is to support surveys, research, and training projects necessary for
successful economic growth. It is not an international capital de-
velopment fund but finances preinvestment projects. Surveys of
water, mineral, soil, and power resources and the setting up of techno-
logical training centers are typical projects which the fund makes
possible.
The financial goal of these two programs is $100 million, of which
the United States share cannot exceed $40 million. It is anticipated
that other nations will pledge something over $70 million for calendar
year 1961. If such is the case the United States share will be around
$33 million, the sum contained in the bill. Should other governments
exceed their anticipated contributions, any additional funds necessary
to meet the United States share would be secured from other mutual
security program funds.
Paragraph (2) authorizes an appropriation of $1.5 million to the
technical cooperation program of the Organization of American
States. This is a sum identical with that appropriated last year.
The United States contribution is 70 percent of the total contributions
for this program. It consists of the establishment and support of
regional training centers in the Americas, in some cases through
specialized organizations of the Organization of American States.
OAS technical assistance funds are used to support special technical
training staffs and to provide fellowships for trainees from member
countries of Latin America to attend the centers.
SPECIAL ASSISTANCE AND OTHER PROGRAMS
Section 204(a), amending section 400 (a): Special Assistance
This section amends section 400(a) of the act in two respects.
First, it authorizes an appropriation of $256 million for fiscal year 1961
for Special Assistance. This is $12.5 million less than the $268.5
million requested by the Executive, and $8.5 million more than the
authorization and $11 million more than the appropriation for fiscal
year 1960. Second, this section adds a sentence expressing the sense
of Congress about the use of Special Assistance funds among the
nations of the Near East. There is concern that stability in that
area is imperiled by the sale or grant of military equipment to nations
in that area. While the new language is not mandatory in its appli-
cation, it is the congressional intent that so long as it is United States
policy not to sell or grant military equipment to any one nation in the
Near East, no part of the funds appropriated under Special Assistance
should be used by any other nation in that area for the purchase of
military equipment.
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SPECIAL ASSISTANCE
$268 million
13 % otEconom c Maio ci Appropriation R,q.it
?P COIAhits oad Ttrrirories (isd V Bsrfitl
Based on executive branch appropriation request.
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F.%r Y. 6Yr/ir
v'YUGOSLAVI
SPECIAL ASSISTANCE
PROPOSED PROGRAMS, FY 1961
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32 MUTUAL SECURITY ACT OF 10 6 0
Special Assistance is economic assistance. It is special because it
is for use on such terms and conditions as the President may specify
and because it is designed to maintain or promote political or economic
stability. As such it differs from military assistance and defense
support in that it is directed almost entirely to countries in which the
United States is not providing military assistance to significant forces.
It is assistance on a grant or loan basis to accomplish political or eco-
nomic objectives which cannot be accomplished by employment of
the Development Loan Fund or other United States loan programs.
Assistance is rendered on a country-by-country basis in accordance
with advance planning. It is also employed to finance certain re-
gional or global programs, primarily in health and education.
The program of $256 million for fiscal 1961 is directed to 22
countries and territories:
Afghanistan Morocco
Bolivia Nepal
Brazil Paraguay
Burma Somalia
Ethiopia Sudan
Guatemala Tunisia
Haiti United Arab Republic
Indonesia West Berlin
Israel West Indies
Jordan Yemen
Libya Yugoslavia
Sixty-nine percent is required to continue programs necessary to
the maintenance of political and economic stability in nine countries:
Afghanistan, Bolivia, Burma, Haiti, Israel, Jordan, Libya, Morocco,
and Tunisia, and to West Berlin.
Eighteen percent is scheduled for major functional programs most
effectively planned on a worldwide basis: malaria eradication, commu-
nity water supply development, international medical research, aid
to American schools abroad, investment incentive programs, and the
United Nations Emergency Force.
Seven percent is to be used for important low cost or short duration
special activities in 12 countries : Brazil, Ethiopia, Guatemala, Indo-
nesia, Nepal, Paraguay, Somalia, Sudan, United Arab Republic, the
West Indies Federation, Yemen, and Yugoslavia; also in cooperation
with two international organizations: the Organization for European
Economic Cooperation (OEEC) and the Central Treaty Organization
(CENTO-successor to the Baghdad Pact).
Six percent is planned to undertake a special program for tropical
Africa which will concentrate on the improvement of human resources
for economic development through increased and improved education
and vocational or other training with particular emphasis on needs
common to all countries of the area. In many ways this is a pilot
program which promises to grow significantly in the immediate future
as a supplement to major investment activity on the part of free world
countries. The evidences of increasing Soviet interest and activity
in this area point up its importance to the world and the urgency of
a sound American program in that area.
Where Special Assistance is rendered to a country, it is addressed
to a relatively small number of major economic programs or specific
project activities in critical countries. It is provided in order to
maintain the political independence or stability of countries threat-
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MUTUAL SECURITY ACT OF 1900 33
ened by internal disorder often stemming from economic imbalance.
It is sometimes provided to secure or maintain United States military
facilities or other rights in a country or to deal with economic or
other problems arising out of the existence of such facilities. It is
used to maintain economic stability or support economic growth,
maintain political stability or further United States foreign policy
objectives by a United States identification with small beneficial
projects, or to help meet disaster or emergency needs.
United States foreign policy has been advanced in a variety of ways
by Special Assistance. In the absence of the Special Assistance pro-
gram, it is probable that today's maps would have to be substantially
redrawn. The following are among the more noteworthy accomplish-
ments to which this form of aid has contributed significantly:
Strategic bases, outside of our territory, have been retained.
Jordan's economic and, indeed, political survival has been made
possible.
Lebanon has been helped to meet the economic dislocations of the
internal crisis of 1958 and to restore reasonable stability.
Tunisia has, despite strong pressures from anti-Western sources,
retained its freedom of action.
Bolivia has been assisted in the crucial phases of an effort toward
economic stabilization, while avoiding a major upheaval and change of
political orientation.
Guatemala, a government which ousted a Communist-dominated
government, receives Special Assistance to strengthen the present
government's determination to maintain an orientation toward the
free world.
Yugoslavia, in the face of aggressive Soviet economic action in.
curtailment of credits, continues its efforts to maintain independence
of the Soviet bloc.
In West Berlin, continued United States economic assistance on a
modest scale has contributed to maintaining the Western position in
this free enclave in the Soviet area.
United States initiative and sharing in the costs of the malaria
eradication program, now in its third year of operation, have provided
the major impetus in the worldwide program to eliminate malaria.
Special Assistance has been a key factor in furthering United States
policy objectives in these and other important political and economic
arenas.
During the Bearings the committee showed particular interest in
the program planned for Tropical Africa. Although details have yet
to be worked out, the general approach of emphasizing the develop-
ment of the human resources of that continent represents a sound
approach. It is the expectation of the committee that the program
which the Executive has justified will be carried out for the purposes
and in the amount described to the committee.
Against great odds, Israel has continued to be a bulwark of stability
in an otherwise disturbed area. It has used effectively the modest
amount of Special Assistance extended under the mutual security
program. The determination of Israel to develop its industry and to
increase its agricultural output will necessitate aid at the same level
for the next year as in the current year. The committee is therefore
of the opinion that Special Assistance to Israel should be maintained
at the level of fiscal year 1960.
Section 204(b), amending section 401: United Nations Emergency Force
G0003-3
A e "Viii ed a Contribution tocthe ofA United NatW5 Emergency
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34 MUTUAL SECURITY ACT OF 1960
Force which is financed in part on a voluntary basis by the member
nations of the United Nations, in part by an assessment on the
nations at the regular scale of assessment. This authority supple-
ments additional authority permitting United States support of the
Force, including the making of assessed contributions and the detailing
of ppersonnel.
This is a force of 5,000 men from some 7 nations, none from the
"Great Powers," which is charged by the General Assembly with en-
forcing observance of the armistice agreement between Israel and
Egypt. Round-the-clock patrols are maintained to prevent or investi-
gate incidents in the region of the Gaza strip, along some 140 miles of
Egyptian-Israeli border and at the mouth of the Gulf of Aqaba.
In calendar year 1960 the General Assembly has authorized $20
million for this Force. Being a collective responsibility of the whole
organization, the 87 member states are charged-for the basic cost of
the force on a percentage scale of assessments by which the whole
U.N. budget of $60 million is supported. The United States assess-
ment is $6,497,064, or 33% percent. Because of the burden of the cost
of this Force, however, on so many smaller countries and the greater
interest of the United States and the United Kingdom in the arrange-
ment, the United States at the last General Assembly again offered
to make an additional voluntary contribution of $3.2 million, subject
to the appropriation of the funds by the Congress, which would reduce
by 50 percent the contribution of as many of the least developed
countries as it would cover. The British also agreed to make a vol-
untary contribution. This means that the total United States con-
tribution for calendar year 1960 will be $9,697,064, or 48 percent of
the $20 million total cost of the Force.
Section 204(c), amending section 402: Earmarking of,funds
This subsection extends for another year the provision of section 402
as to earmarking of funds. Section 402 does not provide for an appro-
priation. It requires that not less than $175 million otherwise appro-
priated under the act shall be used to finance the transfer or the sale
for foreign currencies of surplus agricultural commodities. The
foreign currency proceeds thus obtained are deposited in a special
United States account and used to further the objectives of the
mutual security program.
From 1946 through June 1959, agricultural exports of the United
States amounted to $49.1 billion. Of this amount, those exports
made under specified Government-financed programs amounted to
$20.8 billion, or 42 percent of the total. Of the $20.8 billion., $10.2
billion were exported under programs administered by ICA and its
predecessor agencies; $7.2 billion of the $10.2 billion were financed
from foreign aid appropriations.
In each of fiscal years 1958, 1959, and 1960, $175 million was also
earmarked to finance disposals of surplus agricultural commodities
under this section. In fiscal 1959, actual sales totaled $188 million,
7-percent higher than the legislative requirement, but a 10-percent
decrease from fiscal year .1958. The sales for fiscal year 1959 included
$81 million in cotton, $50 million in grain, $36 million in fats and oils,
and $21 million of other commodities and transportation costs. It is
estimated that fiscal year 1960 disposals will go no higher than the
$175 million, although the outlook is still uncertain and details of the
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A I7 Y ACT OF 19:80 35.
commodities disposed of are not yet known. The authorization for
fiscal. year 1961 continues the requirement for the transfer or the sale
of agricultural surpluses at the same level, although it is becoming
increasingly difficult to use surplus agricultural products to carry ou.t
the purposes of the Mutual Security Act. Military assistance, by the
nature of its import requirements and by reason of the decline in
offshore procurement, offers little opportunity for section 402 disposals
of agricultural products.
The economic assistance programs also offer a declining opportunity
for the use of surplus farm products. This is in part because the
majority of countries currently receiving economic assistance are pre-
dominantly agricultural. Those who do need assistance in meeting
agricultural' import requirements are generally able to meet such
requirements by making purchases tinder the provisions of Public Law
480.
It is estimated that of the $175 million of disposals required to be
made in fiscal 1'961, only $100 million can be made directly to bene-
ficiary countries; the remainder, $75 million, will have to be attained
by engaging in. triangular transactions. Under this procedure, sales
of United States grain, cotton, tobacco, and other surplus commodities
are made to industrialized countries, primarily in Western Europe, and
the foreign currencies derived from such sales are used to purchase in
the industrialized nations goods and services to be supplied to the
less developed countries under the mutual security program. Such
transactions are difficult to arrange and in many instances do not
result in any appreciable increase in United States exports of surplus
commodities. To some extent such transactions merely substitute for
approximately the same volume of products which probably would
be purchased by the Western European countries with their own
dollar exchange. Also, since most of these countries have recently
made their currencies fully convertible when externally held they
have little incentive to engage in triangular trade.
A requirement that disposals under this section should exceed $175
million would result either in preventing a certain amount of mutual
security funds from being used for their intended purpose or would
interfere with our normal dollar exports of agriculture products
through commercial channels.
Section 204(d), amending section 403: Responsibilities in Germany
This provision amends section 403 of the Mutual Security Act to
authorize the use in fiscal year 1961 of $6,750,000 of special assistance
funds for the United States to meet its responsibilities or objectives in
Germany, including West Berlin., This. is a small reduction from the
authorization of $7.5 million for fiscal. year 1960 and authorizes the
same amount as was actually programed in fiscal year 1960. The
actual program in fiscal year 1960 was $6,750,000-$750,000 below the
amount authorized.
The Federal Republic of Germany continues to assume almost the
entire economic support of West Berlin, including the care of refugees
from East Germany who are arriving at a rate of 100,000 per year.
The cost to the Federal Republic of Germany is at the rate of $364
million per year. In comparison, United States funds contributed
may appear to be a token amount. This has, however, very great
importance to the people of West Berlin as evidence of our continued
concern for their freedom and well-being.
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United States funds provided to West Berlin are used in a variety
of ways to meet the needs of the people of West Berlin and to provide
them with continuing evidence of our backing, as well as to make
more off ective the example of West Berlin in providing encouragement
to the people of East Germany.
Section 204(e), adding a new section 404: Indus Basin development
Section 204(e) adds a new section 404 to the Mutual Security Act.
The new section covers four basic points. They are:
(1) The first sentence of section 404 contains a statement of policy
in which the Congress states its approval of the cooperative program
negotiated by the International Bank for Reconstruction and Devel-
opment (the World Bank) for the development of the Indus River
Basin and affirms the willingness of the United States to participate
in the program under authorities already contained in the Mutual
Security Act and "other Acts." As presently contemplated, the
Agricultural Trade Development and Assistance Act of 1954 (Public
Law 480) is the only other act under which funds would be made
available. It does not provide a new authorization of any funds.
All funds to be expended for the project will be made available under
other provisions of the Mutual Security Act and Public Law 480.
(2) Section 404 permits the substitution, for the requirements of
section 517 of the act, of the requirements, standards, and procedures
of the World Bank for determining the feasibility of the project, and
the adequacy of cost estimates, engineering plans, and studies.
(3) Section 404 permits the substitution, for the requirements of
section 103 of the Mutual Security Appropriation Act, 1960, of the
requirements, standards, and procedures of the World Bank for
determining the feasibility of flood control, irrigation, and water
resources projects.
(4) Section 404 provides the President with the authority to waive
the 50-50 shipping requirement of section 901(b) of the Merchant
Marine Act of 1936 whenever he determines that its provisions can-
not be fully satisfied without seriously impeding the United States
participation in the project.
From the viewpoint of United States foreign policy this is a most
important provision. The significance of the Indus River Basin
project lies in its possibilities for settling the longstanding dispute
between Pakistan and India that reached a dangerous stage when
the British withdrew and the Indian subcontinent was divided in
1947. Since that time both countries have maintained an armed
truce with occasional flareups that reveal the underlying bitterness.
This condition has impeded the development efforts of both countries
and has offered a potential opening for Communist exploitation. The
Indus Basin project could mark a turning point in the history of
South Asia. A refusal by Congress to approve this provision would
inevitably make necessary a new, and time-consuming, approach to
the whole problem of stability in the area.
The Indus River and its five tributaries drop from the Himalayas to
the parched lowlands of Pakistan and provide West Pakistan with its
source of irrigation. Under the British the Indus waters were devel-
oped into the greatest irrigation system in the world. The partition
of India and Pakistan in 1947 divided the system into two parts, with
India in control of the upstream waters. India has wanted to expand
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MUTUAL SECURITY ACT OF 1980 37
its use of these waters through various irrigation projects. Pakistan
has feared that in the process downstream areas in its own territory
would be deprived of essential water.
The dispute over the use of the Indus waters has been one of the
major points of friction between the two countries. Late in 1951 the
World Bank offered the two parties its good offices to help find a
mutually agreeable solution. The offer was accepted and negotiations
began under Bank auspices in 1952. These negotiations resulted in
the proposal which both parties have agreed upon in principle.
The proposal provides that India shall have the use of the waters of
the three eastern rivers-the Ravi, Beas, and Sutlej-and that the
downstream irrigated areas in Pakistan formerly supplied with water
from these three rivers shall in the future be supplied with water
brought from the three western rivers-the Indus, Jhelum, and
Chenab-through a series of diversion and link canals. It is estimated
that, when completed, additional irrigated acreage will be 4.8 million
in Pakistan and 4.4 million in India. The Bank also estimates that
the power installations will not only be able to pay for themselves
but also 40 to 50 percent of the fixed and operating costs of dams.
Because of the heavy cost of the Pakistan portion of the plan, the
Bank has proposed that financial assistance for works in that country
be supplied by the Bank and by a group of friendly countries. This
assistance will be contributed to a proposed Indus Basin Development
Fund, to be administered by the Bank itself. In the case of India the
scale of works is such as to permit specific bilateral financing.
India and Pakistan will enter into an Indus Waters Treaty governing
settlement of the issue. Agreement on the terms of the treaty is
expected within the next few months. Its signature will probably
coincide with the receipt of assurances that the outside financial aid
required to carry out the project will be forthcoming, subject to
appropriate parliamentary or congressional action.
The total cost of the system is estimated at the equivalent of slightly
more than $1 billion, partly in foreign exchange and partly in local
currencies. Foreign exchange grants from Australia, Canada, Ger-
many, New Zealand, the United Kingdom, and the United States
will total $307 million, of which the United States share is $177 million.
Two foreign exchange loans will be made to Pakistan, $70 million by
the United States and $80 million by the World Bank. Two such
loans will be made to India, $33 million by the United States and $23
million by the World Bank. In addition the United States will lend
Pakistan the local currency equivalent of $200 million and grant to
Pakistan the equivalent of $35 million. In short, the planned United
States portion of the project will be $515 million, of which $212 million
will be in grants ($177 million in dollars and $35 million in local
currency) and $303 million will be in loans ($103 million in dollars and
$200 million in local currency). Should the project get underway in
the next fiscal year, the United States plans to make available $74.6
million in dollars of which $4.6 million will be in grants and $70
million in loans, and a grant of $11.5 million in'local currency, a total
of $86.1 million.
United States participation in the Indus project will be formalized
by the signature of a multilateral financial agreement. This will
expressly provide that the United States commitment to contribute
funds will be subject to appropriations made by Congress. The
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agreement will provide for the creation of an Indus Basin Development
Fund to be administered by the World Bank. The Fund and its
assets and accounts are to be kept separate and apart from all other
assets and accounts of the Bank.
Under the agreement, it is the duty of the Administrator before the
beginning of each half year to notify each party of the assistance
required to be contributed to the Fund to cover estimated disburse-
ments of the Fund during each period. Funds are to be disbursed
by the Administrator to the Government of Pakistan upon written
la pplication by the latter to finance agreed items of equipment, sup-
plies, and services required on the project. Pakistan is required to
provide such documentation and other evidence in connection with
such applications as is required by the Administrator in accordance
with the Bank's usual procedures.
All equipment, supplies, and services required for the project are
.to be procured on the basis of international competition under arrange-
ments satisfactory to the Administrator, except as the Administrator
shall otherwise agree on grounds of efficiency or economy.
The Bank is enjoined to exercise the same care in the administration
and management of the Fund and in the discharge of its other functions
under the agreement as it exercises in respect to the administration
and management of its own affairs.
A matter of particular interest to the committee is the provision in
the amendment that permits the use of funds for the project in ac-
cordance with requirements, standards, or procedures established by
the Bank. These concern completion of plans and cost estimates and
determination of feasibility in lieu of the requirements, standards, or
,procedures prescribed by section 517 of the act and section 103 of the
Mutual Security Appropriation Act, 1960.
The principal differences are as follows :
(1) Engineering and Cost Standards.--The difference between the
standards of the World Bank and those of the Development Loan
Fund and ICA is essentially one of timing. Before any part of the
project is financed by the Bank, engineering plans, specifications,
and detailed cost estimates for that part of the project will be prepared
by the consulting engineers and approved by the Bank. The DLF
and ICA apply much the same standards. The difference is that
under DLF and ICA procedures they would themselves have to be
satisfied that basic engineering and feasibility surveys for all parts
of the project are completed prior to obligation of funds for the project
whereas in the case of the Indus project the DLF and ICA would
obligate, relying on the Bank's review and approval of engineering
plans at a later stage, but before funds are actually disbursed by the
Bank.
(2) Cost-Benefit Standards.--The World Bank has already prepared
an initial study of the works in Pakistan and India which indicates
that a favorable benefit-to-cost ratio will be yielded by the Indus
Basin development plan, strictly on economic and technical grounds
and without regard to the substantial political benefits envisioned.
The World Bank is currently conducting further economic studies
designed to refine this analysis that will more nearly approximate
the standards required by section 103 of the Mutual Security Appro-
priation Act, 1960.
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MUTUAL SECURITY ACT OF 1960 39
(3) Procurement Standards.-The World Bank will make disburse-
ments for imported equipment, supplies, and construction services
on the basis of international competition. ICA would have applied
essentially the same standards. The DLF would have placed primary
emphasis on United States purchases. It should be noted that three
of the four firms already engaged in engineering surveys are American
firms.
The treaty between India and Pakistan cannot be concluded unless
the signatories are assured that the financial arrangements worked
out with considerable effort by the various contributing countries
will be put into effect and that the contributing countries will make
their contributions in the amounts and in the manner specified in
the agreement. Enactment of section 404 is required both to provide
an indication of congressional approval of the plan and to permit the
United States contribution to the Indus Basin Fund to be made in the
manner contemplated in the Financing Agreement, subject to the
necessary appropriations.
The plan for the settlement of this longstanding dispute over the
use of the Indus waters has been accomplished after many years of
difficult negotiations. Failure to secure final settlement, after the
prolonged negotiations conducted by the Bank, may well delay for
an indeterminate time the resolution of an issue that has imperiled
the relations between India and Pakistan. The plan drawn up by
the World Bank complements our own bilateral economic aid pro-
grams to the two countries. Its accomplishment will contribute
greatly to political stability and economic development in South Asia.
Section 204(f), amending section 105: Migrants, refugees, and escapees
Paragraph (1) amends subsection (c) to authorize an appropriation.
of $1,500,000 for fiscal year 1961 as the United States contribution to
the program of the United Nations High Commissioner for Refugees
(UNIICR).
The United Nations High Commissioner for Refugees was author-
ized by a United Nations General Assembly resolution of December 2,
1957, to conduct a program to succeed the United Nations Refugee
Fund (UNREF) which ended December 31, 1958. The UNHCR's
program is flexible, designed to avoid rigid long-term plans by enabling
governments to determine on an annual basis the specific refugee
problems to which they wish to contribute during the particular year
and which can be eliminated or reduced by international effort
during that year.
During 1959 and 1960 the new program was largely engaged in
completing certain unfinished undertakings of the old UNREF
program including primarily the camp clearance program. Since
1960 will virtually complete the camp clearance program, the 1961
program will concentrate upon selected categories of refugees for
whom material aid is considered to be an international responsibility.
These selected categories include particularly refugee families with
children living under substandard conditions and physically handi-
capped or aged refugees. Aid will also be continued for refugees of
European and Jewish origin from the Near East and to meet any
new refugee emergencies which may arise.
The $1.5 million requested for this program is an increase of
$400,000 over the amount appropriated for last year and reflects
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MUTUAL SECURITY ACT OF 1960
increased program activity by UNHCR for refugees in Morocco and
Tunisia who fled Algeria.
Paragraph (2) amends subsection (d) to authorize an appropriation
of $3,500,000 for the United States Escapee Program (USEP) for fiscal
year 1961, a reduction of $1,700,000 from the amount authorized in
1960. This is made possible by a reduced caseload activity anticipated
for the calendar year 1961.
Through its specialized services, the escapee program provides
assistance to Soviet and satellite escapees in Europe and the Middle
East and Chinese refugees in Hong Kong from initial reception,
interim care, and maintenance to resettlement. Since its inception
in 1952 USEP has provided assistance to over 400,000 escapees.
There were approximately 25,000 recent escapees registered with
the USEP in Europe and the Near East on January 1, 1960. Es-
capees who require prompt attention are arriving in the West at the
rate of 650 per month. It is estimated that the 1961 escapee program
will register 7,700 new escapees and that an overall caseload reduction
of about 9,300 will be achieved.
The escapee program serves United States interests by encouraging
continuing liberal asylum and assistance policies on the part of govern-
ments of asylum countries and promoting stability in asylum areas
through the resettlement of politically vulnerable groups.
Section 204(g), amending section 406: Children's welfare
Section 406 authorizes an appropriation of $12 million for contribu-
tions to the United Nations Children's Fund (UNICEF). This is the
same amount authorized and appropriated for the current fiscal year.
Thus the amendment changes only the year, substituting 1961 for
1960.
It is estimated that the percentage of the United States contribution
to total government contributions will be 46 percent in 1961 compared
to 48 percent in 1960. In 1959, every $1 allocated by UNICEF
generated in the receiving countries an average of an additional $2.50
to carry out the programs.
The estimated UNICEF allocations for calendar year 1961 are
$30.1 million. Contributions of $12 million from the United States
and $14.1 million from other governments will leave a balance of $3
million, which it is hopefully anticipated can be raised from private
sources.
UNICEF is currently assisting 371 programs in 104 countries and
territories. Of the estimated 1 billion children in the world, some
three-quarters live in areas where poverty and disease are common and
where, lacking adequate food, clothing, shelter, and protection against
disease, infant and maternal mortality rates are high. UNICEF
extends tangible aid principally in the form of supplies not available
within the assisted countries.
In the principal campaigns which UNICEF aided in 1960, more than
15 million children and mothers were protected against malaria; 14
million young persons were vaccinated against tuberculosis; some
213 million children and mothers were treated for yaws, and more
than 7 million children and mothers received milk through school
and maternal and child welfare centers.
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MUTUAL SECURITY ACT OF 1960 41
Section 204(h), amending section 407: Palestine refugees
Section 204(h) amends section 407 of the act, relating to Palestine
refugees in the Near East, in two respects. First, it deletes the obso-
lete reference to an authorization for an appropriation for the fiscal
year 1960 and provides for an authorization for.an appropriation of
$18,500,000 for fiscal year 1961. Second, it strikes out the proviso
in the first sentence which stipulates that 10 percent of the funds ap-
propriated pursuant to this section shall be available only for repatria-
tion and resettlement. This proviso was deleted last year by the
House, on the recommendation of the committee, in acting on the
Mutual Security Act of 1959. The Senate did not delete the pro-
viso. The committee of conference agreed to reduce from 15 to 10
percent the amount to be earmarked.
Through a combination of legislative and executive action, United
States contributions to the United Nations Relief and Works Agency
(UNRWA) are subject to certain limitations: (1) Such contributions
will not exceed 70 percent of the total contributions from all sources;
(2) pursuant to the proviso in section 407 (which will be removed by
this amendment) 10 percent of the funds appropriated for our contri-
bution to UNRWA shall be available only for repatriation or resettle-
ment of the refugees; and (3) in determining whether or not to continue
furnishing assistance for these refugees, the President shall take into
account whether Israel and the Arab host governments are taking steps
toward the resettlement and repatriation of the refugees. This latter
authority has been delegated to the Secretary of State who has deter-
mined that the United States will continue to furnish assistance for
Palestine refugees.
The refugee population has gradually increased during the past
several years as a result of generally improved sanitary conditions and
the availability of a steady ration of food. The most recent count
indicates about 1,042,000. The relief portions of UNRWA's activ-
ities are still the most important. Admittedly it is no solution. The
need for large-scale economic assistance programs capable of making
refugees self-sustaining remains most urgent. However, the failure
of members of the United Nations, other than the United States and
the United Kingdom, to contribute significantly to the programs and
the unwillingness of the countries directly concerned to agree on the
projects have frustrated UNRWA efforts to date. Although
UNRWA's budget for calendar year 1960 to meet program require-
ments is $38.7 million, it is estimated that contributions, including
the United States pledge of $23 million, will total only $33 million,
which falls considerably short of meeting minimum needs.
The 14th United Nations General Assembly adopted Resolution
1456 which (a) extended UNRWA for 3 years with a review at the
end of 2 years, (b) called on the United Nations Palestine Concilia-
tion Commission (United States, Turkey, and France) to make
further efforts to secure implementation of repatriation and compen-
sation for Palestine refugees, (c) called on host governments to take
appropriate steps to rectify refugee relief rolls, (d) urged member
governments to seek to increase their contributions to UNRWA to
enable it to carry out its program, and (e) called on UNRWA to
continue its relief programs and its programs of self-support and
vocational training.
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4G MUTUAL SECURITY ACT OF 1960
For fiscal year 1960 Congress appropriated new funds totaling $25
million. The 1961 authorization provides new money totaling only
$18,500,000. With the deletion of the proviso earmarking funds for
repatriation or resettlement, these previously pledged but unused
funds which now total $6,250,000, plus an. additional $250,000 of previ-
ously unpledged funds, will be used to meet the estimated United
States requirement of $25 million. An additional sum, approximating
that amount now set aside, will be required to execute fully the 1961
program if the proviso should not be deleted.
The contribution authorized by this section is based on past annual
requirements of the Agency, taking into account the increased cost
of food, supplies and equipment, and an increasing refugee population.
Section 204(i), amending section 409(c): Ocean freight
Subsection (c) authorizes the payment of ocean freight charges on
supplies donated to American voluntary agencies. During fiscal year
1960 supplies valued at nearly $41 million will be shipped and dis-
tributed at a cost to the Government of $2.3 million. Each dollar
appropriated for this purpose is multiplied nearly 20 times in terms of
the value of relief goods it delivers. These goods include, specifically,
food, clothing, medical and hospital supplies, handtools for trades
and agriculture, and other self-help supplies. Most of these goods are
donated in kind without any cash contribution to cover the necessary
delivery costs to the country of destination.
The American agencies for their part bear the cost of solicitation,
processing, warehousing, packaging for export, transportation to
United States ports, and the cost of field representatives in foreign
countries to supervise distribution. These same agencies are also
moving substantial quantities of United States Department of Agri-
culture surplus commodities into their relief channels abroad. The
payment of ocean freight charges on these surplus commodities is now
funded under authority of title II, Public Law 480, and mutual secu-
rity funds are not programed for this purpose.
The committee recommends an authorization of $2 million for the
coming year. This represents a decrease of $300,000 from last year's
authorization, but it is based on actual program estimates by the
participating voluntary agencies. This decrease reflects a slight
change in the nature of the items to be shipped. Although the total
value of shipments will increase to $47 million in fiscal year 1961,
their overall weight will decrease. The program has been operating
in about 40 countries.
No procurement costs to the United States Government are in-
volved.
Section 204(j), amending section 411: Administrative and other expenses
Section 204 (j) amends section 411 of the act which relates to admin-
istrative and other expenses in two respects. Paragraph (1) amends
subsection (b) by deleting the obsolete authorization for an appropri-
ation of $39,500,000 for fiscal year 1960 and substituting an author-
ization for an appropriation of $40 million for fiscal year 1961. This
authorization excludes the administrative expenses for military assist-
ance, the Development Loan Fund, and those provided for the De-
partment of State in section 411 (c) of the act. Paragraph (2) amends
subsection (c), which relates to administrative and other expenses of
the Department of State, by authorizing an appropriation to the Presi-
dent for such expenses instead of to the Department of State, in con-
formity with the othe &8 ?g %tio8j. *V%bv _tb 300200003-3
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MUTUAL SECURITY A T F 196
For the current fiscal year an appropriation of $38 million was made
for ICA administrative expenses. To this was added $429,000 which
was continued available from. the previous fiscal year for a total avail-
ability of $38,429,000 for fiscal year 1960 on a comparable basis.
Including an anticipated carryover of $300;000 the comparable amount
available for fiscal year 1961 will be $40,300,000, an increase of
$1,871,000.
The increase is attributable principally to the creation of new mis-
sions and to the strengthening of existing staffs overseas. The largest
single increment is planned for Africa which reflects the greater atten-
tion being given to that area. Increases are also planned for the Near
East and South Asia, the Far East, and, to a lesser degree, Latin
America. In line with the reduction of nonmilitary aid to Europe
a further contraction of personnel is anticipated for that area. The
balance of the increase will be used to provide a slight increase in
permanent positions in Washington, for administrative support costs
furnished by the Department of State and the administrative costs of
participating agencies, to finance periodic pay increases of American
employees and wage-scale increases, for foreign nationals, and to
finance the new Federal health insurance program. Against these
increases will be a decrease of $500,000 in Washington rent costs.
Section 204(k), repealing section 412: President's special education and
training fund
Section 412 of? the act authorizes the use, for each of the fiscal years
1960 through 1964, of $10 million of the funds appropriated pursuant
to the Mutual Security Act for (1) financin~ studies, research, in-
struction, and other educational activities of citizens of underdeveloped
countries in educational institutions in the United States, Puerto
Rico, and the Virgin Islands; and (2) for the training of people of
underdeveloped countries in skills which will contribute to economic
development. This section, inserted in the Mutual Security Act in
1959, was not in the bill as it passed the House but was accepted in
conference. The Mutual Security Appropriation Act, 1960 (Public
Law 86-383), section 108, prohibits the use of any funds in that act
to carry out the provisions of section 412.
The executive branch, has recommended repeal of section 412 for
the reasons (1) that the portion relating to technical cooperation
simply duplicates the general authorization for technical cooperation
and thus is unnecessary and (2) that the other portion requires a
diversion of mutual security funds to use for activities (the inforina-
tion and educational exchange programs) which are not within the
mutual security program and which properly should be financed from
funds requested. and appropriated under separate legislation for those
activities. The committee has therefore adopted the recommenda-
tion of the Executive than the authorization be repealed.
Section 204(l), amending section 419(4): Atoms for peace
Section 204(1.) amends section 419(a) of the act, which relates to
atoms for peace, by deleting the obsolete authorization for an appro-
priation for fiscal year 1960 and substituting an authorization for an
appropriation of?$3,400,000 for fiscal year 1961.
The program for next year involves five major items. The first is
a continuation of the program initiated 3 years ago to assist other
nations, on a bilateral or multilateral basis, in acquiring research
reactors by funding up to one-half of their cost. In no case may the
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44 MUTUAL SECURITY ACT OF' 1960
United States contribution to the cost of it reactor for any one country
exceed $350,000. To date 19 reactors have been financed under this
program of which 4 are in operation. Two applications are being
processed. Since most of the nations that can take advantage of this
assistance have done so, a deadline of July 1, 1960, has been set for
receipt of further requests for grants. Any requests after that date,
if approved, will be funded from the regular country program funds
of the mutual security appropriation.
The second component of the program includes grants to procure
laboratory equipment, subcritical assemblies for basic training, ma-
chines for medical centers, and other specialized apparatus to further
the application of nuclear energy for peaceful purposes.
The third part includes funds for symposia such as the highly
successful inter-American symposium on peaceful applications of
nuclear energy and for the loan, on request, of United States experts
to individual countries on survey-type assignments.
The fourth category permits continued United States support to
the International Atomic Energy Agency. The budget of the latter
is made up of assessments of the 70 members. For calendar year
1960 it amounts to $5.8 million. The majority of the Agency's
technical programs are funded through the operational budget made
up of voluntary contributions. The annual goal of this budget is
$1.5 million. The United States contributes half of this amount by
pledging $500,000 and making available another $250,000 to match
contributions paid in by member states after the $1 million mark is
reached.
The fifth element in the program is a provision for a continuation
of the IAEA's fellowship program. To date 107 fellowships have
been awarded for training in the United States. This program is
administered by the National Academy of Sciences. For 1958 and
1959 applications numbered more than 800 with most of the appli-
cants expressing a preference for training in the United States. This
is a tribute to our leadership in the nuclear field.
Section 2011(m), adding a new section 1121: Loans to small farmers
This section states it to be United States policy to strengthen the
economies of less developed nations by improving the agricultural
methods and techniques and developing local programs of self-help
and mutual cooperation in nations where the economy is essentially
rural or based on small villages. A particular effort is to be made
through loans of foreign currencies to associations of operators of
small farms formed for the purpose of joint action designed to increase
or diversify agricultural productivity.
It is the policy also that the maximum unpaid balance of loans
made to any association under this section may not exceed the local
currency equivalent of $25,000 at any one time and that the aggregate
unpaid balance of all loans made under this section may not at any
one time exceed the equivalent of $10 million in local currencies.
The committee gave particular consideration to the experience of one
of its members who had been active in the founding in the State of
Punjab in India more than a generation ago of two associations of small
farmers which have been outstandingly successful. These associations
were able to borrow from government banks and, by providing capital
at reasonable interest rates, were able to release the operators of small
farms from the grip of the moneylenders. The operation of these
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associations marked the beginning of a new era in the agriculture of the
region.
In countries where the economy is predominantly rural, progress
must begin on the village level. A modest beginning of loans from
accumulated foreign currencies to small farmer associations in a few
villages will help to set an excellent example. Small farmers in the
United States have benefited from such loans and this project will pass
on the American spirit of self-help aided by needed credit to peoples
abroad.
This amendment is not intended in any way to supersede, to enlarge,
or to restrict authority to provide assistance for agricultural purposes,
including assistance to associations of small farmers, under other
authority already contained in the Mutual Security Act or other
acts. Its purpose is to express the policy of the United States as
favoring loans of this nature in an effort to stimulate and encourage
the development of farm cooperatives along the lines indicated.
CHAPTER III. CONTINGENCY FUND
Section 301, amending section 451 (b) : Contingency Fund
Section 301 authorizes $100 million for a Contingency Fund provided
for in section 451(b) of the Mutual Security Act of 1954, as amended.
This is $75 million less than the .Executive request, and $55 million
less than was authorized and appropriated last yea''.
The Contingency Fund is not a separate category of assistance. It
is a special fund. It is needed to deal with two kinds of situations:
(a) Those which are known but not in sufficient detail to properly
present in one or more of the functional programs at the time of
legislative congressional presentation; (b) those which are not known
but, experience has shown, may arise during the course of the new
fiscal year.
The Fund provides essential flexibility in a program of this magni-
tude. Such flexibility can only be accomplished by authorizing
transferability of funds, which is provided for under conditions speci-
fied in section 501, or by including contingency items in the regular
programs, as opposed to a separate contingency fund. Neither is as
effective management as the general Contingency Fund, because, as
experience has shown, in both cases planning, programing, and opera-
tions of the regular programs are adversely affected when contingency
requirements arise.
The money in this Fund may be used for furnishing military assist-
ance, defense support, special assistance, and technical cooperation or
any of the other purposes of the act except for the Development Loan
Fund. Section 451(b) authorizes $100 million of the Contingency
Fund to be used each fiscal year under the authority in section 451(a)
which empowers the President to waive appropriate statutory require-
ments when he determines that such use is important to the security
of the Nation.
It is this Fund which has financed United States assistance in the
past to Taiwan following the Quemoy crisis, to Jordan as a result of
the Lebanon crisis, and to such countries as Nepal and Morocco as a
result of natural disasters-earthquakes, typhoons, or plagues.
Following careful examination of the experience under this section
of the act the committee felt that $100 million satisfactorily met the
authorization required for this Fund.
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MUTUAL SECURITY ACS` OD 1960.
CHAPTER IV. GENERAL AND ADMINISTRATIVE PROVISIONS
Section 401 (a), repealing section 504(d): Small machine tools and other
industrial equipment
Section 504(d) of the act authorizes the President to use not to
exceed $2,500,000 of the funds appropriated pursuant to section
451(b)-Contingency Fund-during fiscal year 1960 for the purpose
of making available to foreign small business concerns in under-
developed countries or to foreign government organizations established
to help such concerns in underdeveloped. countries, machine tools,
industrial equipment, and other equipment owned by agencies of the
United States Government.
This section, inserted in the Mutual Security Act in 1959, was not in
the bill as it passed the House but was accepted in conference. The
Mutual Security Appropriation Act, 1960 (Public Law 86-383), section
109, prohibited the use of any funds in that act to carry out the pro-
visions of section 504(d).
Since there is already adequate authority in the Mutual Security
Act of 1954. as amended, to carry out the activities authorized by
section 504(d), the committee has therefore adopted the recom-
mendation of the Executive that the authorization be repealed.
Section 401 (b), amending section 505(a): Loan assistance and sales
Section 505 (a) of the Mutual Security Act provides in part that
assistance pprovided' to foreign nations on terms of repayment may be
repaid (sub,ject to agreement) in foreign currencies or by transfer to
the United.
nited States of materials required for stockpiling or other
pu'r oses. The other purposes are not specified. ,
This amendment gives specific authorization to utilize, for assistance
under the act in accordance with the provisions of the Mutual. Security
Act applicable to such assistance, any commodities, equipment, and
materials transferred to the United States as repayment for mutual
security assistance to other nations.
In effect, the amendment authorizes assistance to be made available
on a barter basis. Adoption of the amendment will, for example,
facilitate arrangements for the manufacture of certain types of military
equipment in foreign countries. Ina number of cases the United States
desires to finance the manufacture of a particular weapon or item of
equipment in a foreign country and to receive payment for such financ-
ing in the form of deliveries of the manufactured item, which will then
be turned over to another nation receiving United States military
assistance.
Unless this amendment is enacted, it would be necessary for the
United States to receive repayment in the currency of the country.
involved and then to purchase the desired military equipment with
such currency. Under existing procedures, it is necessary to obligate
or resorve funds to finance the sales transaction to the foreign country,
to obligate an equivalent amount of funds to finance the purchase
from that country, and then to de.obli gate this latter amount when
the sales proceeds are used to pay for the purchase. Under the new
authority, the bookkeeping will be simplified and only the net amount
of funds will be programed.
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MUTUAL SECURITY ACT OF 1960 47
Section 401 (c), amending section 513: Notice to legislative committees
Section 401(c) amends section 513 of the act, which relates to notice
to legislative committees, so as to require that the appropriate con-
gressional committees shall be notified of any determination under the
last clause of the second sentence of the new section 404 with respect
to the 50-50 shipping requirement (sec. 901(b) of the Merchant Marine
Act of 1936, as amended).
Section 401(d), amending section 517: Completion of plans and cost
. estimates
This amendment provides that. nonmilitary assistance shall be given
for programs and projects hereafter proposed involving financing of
the construction of flood control, reclamation, and other water and
related land resource development only when the benefits to be de-
rived from such projects exceed the costs. The calculation of such
benefits and costs is required to follow the pattern set forth in Bureau
of the Budget Circular A-47, December 31, 1952.
The purpose of the amendment is to assure that before United
States funds are committed to a project a comprehensive compilation
and analysis of anticipated costs-both direct and indirect-has been
made by qualified engineers and technicians, together with an equally
comprehensive and well-qualified estimate of anticipated benefits-
both direct and indirect. The standards and criteria of Circular A-47
are expected to be adhered to to the extent necessary to assure the
inclusiveness and adequacy of the cost benefit determination. At the
same time, it is recognized that in foreign countries circumstances
N be sufficiently different (including a lack of statistics and legal
institutional differences) from those in the United States that a
literal compliance with the conditions of the circular maybe impossible.
The committee is convinced that had this requirement been in effect
in prior years a number of projects which have not turned out as
intended would have been planned on a sounder basis or might not
have been started, with a significant saving to the United States
taxpayer and a perceptible enhancement of United States prestige.
Section 4.01(e), amending section 527: Employment of personnel
Section 401 (d) amends section 527 of the act, relating to the em-
ployment of personnel in three respects.
Paragraph, (1) amends subsection (b) which relates to employment
of personnel in the United States, by increasing (a) from 70 to 74 the
number of personnel employed in the United States on programs au-
thorized by the act who may be compensated without regard to the
provisions of the Classification Act of 1949, as amended, and (b) the
limitation on the number of such personnel from 45 to 49 within the
above mentioned ceiling, who may be compensated at rates higher
than those provided for grade 15 of the Classification Act general
schedule but not in excess of the highest rates provided for grades in
such general schedule. It leaves untouched that provision of law that
permits 15 of the 45 to receive compensation at a rate in excess of the
highest rate provided for grades of such general schedule but not in
excess of $19,000.
Section 527 (b) permits compensation of 45 individuals above GS-15,
of whom 30 may be paid the equivalent of supergrades-grades 16, 17,
and 18-and 15 may be paid in excess of GS-18 but not in excess of
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48 MUTUAL SECURITY ACT OF 1960
$19,000. At the present time 43 of the 4,5 positions are filled. The
Office of the Coordinator for Mutual Security in the Department of
State has 5, the Office of the Inspector General and Comptroller in the
Department of State has 3, the Department of Defense has 4, and
ICA has 31. Although the law permits 15 of the above positions to
receive a maximum salary of $19,000, only 3 persons presently re-
ceive that salary, 2 of whom are in ICA and 1 in Defense.
Last year Congress increased the supergrade positions from 35 to
45. This year the Executive requested eight additional supergrade
positions. The committee recommends only four. The increase is
made necessary by the establishment of the Office of Inspector Gen-
eral and Comptroller and a decision in the executive branch that the
personnel needs of the Development Loan Fund should be met out
of the mutual security programwide supergrade pool. Additionally
the Office of the Coordinator for Mutual Security, the Department of
Defense, and ICA have identified top management positions that must
be filled by highly qualified individuals. The committee believes that
some of the positions which the Executive requested can be filled by
suitably qualified Foreign Service personnel. It noted also that two
of the authorized positions were unallocated. The committee is of
the opinion that many of the problems in the administration of the
program are those of management. It is desirous of strengthening
that portion of the program. In recommending the increase of four
new positions it expects that they will be filled only when, in the con-
sidered judgment of the Coordinator, topflight and experienced
individuals are found.
Paragraph (2) amends subsection (c), which relates to employment
outside the United States, in two respects. First, it vests the author-
ity of subsection (c) in the President, in conformity with the general
structure of the act. Second, it provides that Foreign Service Reserve
officers shall receive in-class promotions in accordance with such
regulations as the President may prescribe. Under section 625 of
the Foreign Service Act these officers, after having been in a given
class for 9 months or more, receive an in-class promotion on July 1 of
each fiscal year. This means that personnel appointed before October
1 in any given year (i.e., more than 9 months prior to July 1) receive
an in-class promotion on the next July 1, while those appointed after
October 1 must wait a full year following the next July 1. It is con-
templated under the proposed authority that Foreign Service Reserve
officers appointed or assigned pursuant to section 527(c)(2) of the act
may receive in-class promotions on the anniversary dates of their
appointment or assignment or of their last in-class promotion.
Paragraph (3) amends subsection (d), which relates to appointment
of alien employees outside the United States, to authorize the Secretary
of State to appoint aliens without the statutory requirement of a re-
quest from the Director of the Foreign Operations Administration.
By virtue of Executive Order 10610 the functions of the Director of the
Foreign Operations Administration were vested in the Secretary of
State.
Section 401(f), amending section 531: Security clearance
The present language in section 531 pertaining to security clearance
for employees of ICA is an outgrowth of procedures and standards
provided under the Economic Cooperation Act of 1948 and the Act
for International Development in 1950., On April 27, 1953, the
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MUTUAL, SECURITY ACT OF 1960
President issued Executive order 10450 dealing with security re-
quirements for government employment. The Executive order is
more detailed than the language in section 531 and sets forth the
minimum type of information to be developed by investigations
carried out under the order. It is applicable to ICA personnel.
With the adoption of this amendment the standards and procedures
followed by ICA with regard to security clearance will be precisely the
same as those followed by all other government agencies including
those administering other elements of the mutual security program.
Section 401(g), amending section 533A(c): Inspector General and
Comptroller
In 1959 the committee initiated an amendment to the Mutual
Security Act, establishing a new Office of the Inspector General and
Comptroller with a staff, funds, and independence sufficient to enable
it to carry on a continuous scrutiny and evaluation of the operations
of the program. The committee has been disappointed in the time
it has taken the new Office of Inspector General and Comptroller to
get organized and begin operations.
This subsection is an amendment to strike out from the duties of the
Inspector General and Comptroller listed in section 533A(c) the duty
of "designing the form and prescribing the financial and statistical
content of the annual program presentation to the Congress."
The elimination of this duty would result in the Inspector General
and Comptroller being able to devote more time to seeking out
deficiencies in mutual security operations.
This amendment also would make it unnecessary for him under any
circumstances to defend the program or to explain its shortcomings.
His job is to discover waste and inefficiency in the program and to
see that corrective action is initiated. His energies should not be
diverted by other responsibilities. It is the purpose of this amend-
ment to enable him to concentrate on his primary objectives.
Section 401 (h), amending section 534(a): Reports
This section amends section 534(a) of the act which relates to
reports, so as to require a report by the President on operations under
the Mutual Security Act once each fiscal year in lieu of the present
requirement of a report each 6 months. It has happened that appro-
priations for the mutual security program have not been enacted
mto law until several months after the new fiscal year has elapsed.
Thus the content of the semiannual report produced for the first 6
months of a fiscal year has not been as meaningful as the report
issued for the last 6 months of the year. It is the committee's ex-
pectation that the annual report will be more informative and sub-
stantial than the semiannual reports.
Section 401 (i), amending section 537(a) (3): Provisions on uses of funds
Section 401 (g) amends section 537 (a) (3) of the act which relates to
provisions on uses of funds. The purpose is to clarify the basis upon
which ICA contracts with individuals, both Americans and aliens, to
furnish technical advice and assistance to foreign governments subject
to administrative and policy supervision and guidance by the ICA
mission. This section does not pertain to contracts between ICA and
universities, companies, or corporations. The Civil Service Commis-
sion has interpreted the provisions of contracts with individuals relat-
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50 MUTUAL SECURITY ACT OF 1980
ing to ICA supervision and guidance as establishing an employer-
employee relationship which normally may not be established by con-
tract. The Commission has suggested that authority to enter into
such contracts be clarified.
The determination whether a contract establishes an employer-
employee or independent contractor relationship depends upon the
terms of each contract. The contract specifies the degree of ICA
supervision of the contractor, whether housing or office space is pro-
vided, and whether an end product, such as a report or design, is
sought as opposed to continuing services. No problem arises where
the individual and the host government enter into a contract financed
by ICA.
The question arises in those cases where ICA rather than the host
government enters into a contract with an individual technician and
where the contract provides for ICA direction and supervision of the
technician's activities in order to achieve the program objectives.
ICA may become a party to the contract where the host government
does not wish to enter into a contract with a foreign technician because
it is unfamiliar with contracting procedures or where the technician
himself may feel more secure with a United States Government con-
tract. In certain situations the host country prefers a contractual
arrangement rather than work by direct hire because of the particular
activity; for example, revision of tax laws. In other cases the tech-
nician normally performs his work by contract rather than becoming
a Federal employee.
The proposed language will make clear that such contracts with in-
dividuals for personal services will not result in the individual con-
tractor being regarded as an employee of the United States for the
purpose of any law administered by the Civil Service Commission
such as the Classification Act and the retirement system. The au-
thority also will be used, as is the present section 537(a) (3) of the act,
to hire aliens by contract for other types of services abroad, such as
custodial and housekeeping services.
Section 401(j), amending section 537(c): Construction or acquisition of
facilities abroad
Section 537(c) of the Mutual Security Act includes authorization
within a specified limit for the use of funds available for assistance
under the act for construction or acquisition of essential living quar-
ters, office space, and supporting facilities in Korea and in countries
other than Korea for use of personnel carrying out activities under
the act.
The existing cumulative ceiling for countries other than Korea is
$2,750,000. The amendment increases this ceiling by $1,500,000 to
$4,250,000.
The existing authorization has all been allocated or earmarked for
specific projects. The increase is made necessary by the fact that
mutual security operations are being extended in the less developed
areas (including Africa) where living quarters and office facilities do
not exist, as well as the fact that it is necessary for the United States
to provide new housing and offices in the new Pakistan national
capital (Rawalpindi). It is planned that in a few locations school
facilities for children of United States personnel will be provided.
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MUTUAL j$FICURITY ACT OF 1960 a?
Section 40e1(k), adding a new section 552: Assistance to Cuba
The committee gave careful consideration to the question of
continuing assistance to Cuba. The people of the United States have
a deep and abiding friendship for the people of Cuba which they
b:olieve to be reciprocated. During the .",markup" sessions the Sub-
committee on Inter-American Affairs was requested to study the
question of continuing assistance to Cuba and to report its recom-
mendations to the full committee.
The subcommittee met for 2 days and made an exhaustive examina-
tion of existing technical assistance programs in Cuba, receiving
additional information from officials of the Department of State as
well as further information from the Department of Defense concern-
ing a training program listed under military assistance.
The basic technical assistance programs had originally been negoti-
ated with the government of President Prio in 1951, with extensions
from time to time through negotiations between the International
Cooperation Administration and Cuban officials at the ministerial
level. $350,000 originally had been programed for technical assistance
projects in Cuba during fiscal year 1961. The subcommittee learned
that programs totaling $97,000 were no longer active, leaving active
projects still 'programed for fiscal 1961 totaling $253,000.
In view of the present political situation in Cuba, United States
military assistance has been suspended and none has been programed
for fiscal year 1961. During the executive presentation the committee
was furnished an expenditure figure under military assistance for
fiscal year 1961 of $202,000. Upon investigation it developed that this
figure was based on a preliminary estimate which has since been cor-
rected to $184,877. It does not cover any activity proposed for fiscal
year 1961. It represents delayed billing for six Cuban cadets who
have been receiving their courses in the United States. Two of these
completed their courses in February 1960 and the other four will
complete their training in May 1960. The subcommittee was in-
formed that preparation and processing of the billing for this training
runs 6 to 9 months after completion of the training.
The subcommittee felt that the question of terminating the tech-
nical assistance programs should be decided by the full committee, and
recommended language for that purpose in the event the committee
so decided. The full committee adopted and incorporated in the bill
as section 552 the language recommended by the subcommittee.
The committee is aware of the possibility that its action in recom-
mending present termination of the technical assistance programs in
Cuba may be misconstrued. Nevertheless, the committee is keenly
conscious of its responsibility in recommending the appropriation of
the funds,of American taxpayers and wishes to ensure their expendi-
ture only for purposes that will promote our foreign policy objectives
in a manner consistent with the national and hemispheric interest.
The language adopted by the committee is intended to emphasize
this deep concern and it is not indicative of it lessening of our tradi-
tional friendship for the people of Cuba.
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52 MUTUAL SECURITY ACT OF 1900
CHAPTER V. TECHNICAL AMENDMENTS REFLECTING NEW
LIMITS OF UNITED STATES
Section 501: Technical amendments
This section amends the various provisions of the Mutual Security
Act which refer to the "continental limits of the United States" so as
to make clear that references to the United States include all 50
States.
CHAPTER VI. AMENDMENTS TO OTHER LAWS
AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954, AS
AMENDED
Section 601(a), amending section 202: Famine relief and other assistance
This section amends section 202 of title II, Public Law 480, which
relates to famine relief and other assistance, to permit the use of surplus
agricultural commodities under title II to promote the economic
development of undeveloped areas. No mutual security appropria-
tion would be required since United States contribution in support of
development projects would be in the form of grants of surplus com-
modities from stocks held by the Commodity Credit Corporation.
This amendment is identical to the amendment contained in H.R.
8609, a bill to amend Public Law 480 reported by the House Com-
mittee on Agriculture on August 15, 1959, and passed by the House on
August 20, 1959. It was later eliminated. in conference without
explanation.
The amended language will enable the United States to undertake
longer term programs in those underdeveloped countries where food
consumption is low and underemployment is high. Currently title II
authority is being used in several countries to donate surplus com-
modities on an emergency basis for community development-type
projects. With this new authority, projects of a more lasting nature
could be undertaken under circumstances in which there is more time
for planning and arranging local financing needs.
A sufficient number of work projects have been operated on an
emergency basis to assure that they are highly successful in terms of
local popularity, enhancement of United States prestige, providing a
means for the employment of surplus labor by erecting needed com-
munity facilities, and assisting in the movement of additional agricul-
tural surpluses. For example, during the 6-month period ended
December 31, 1959, 42,000 tons of wheat and feed grains have been
shipped to Tunisia for emergency work projects, including the con-
struction and renovation of earth dams, tree planting, building of
firebreaks, and various soil conservation and reclamation activities.
About two-thirds of the workers' wages are paid in United States
grain and the remainder in cash contributed by the Tunisian Govern-
ment.
In addition to work projects, there are other opportunities antici-
pated for using surplus commodities in bringing help to needy people.
In many of the newly independent African countries, development
might be stepped up considerably by providing commodities which
can be sold by revenue-short governments to finance public programs
such as those in the field of education.
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Section 601 (b), amending section 203: General average contributions
arising out of ocean transport
Section 601(b) amends Public Law 480, title II, section 203. Sec-
tion 203 authorizes the use of Public Law 480 funds to pay ocean
freight charges on surplus agricultural commodities furnished to
foreign nations to meet famine or other urgent or extraordinary relief
requirements.
This amendment authorizes the use of such funds to pay certain
charges arising from losses of a ship's cargo. When a portion of a
ship or ship's cargo is sacrificed to save the remaining cargo or the
ship, the loss is shared among all owners of cargo as well as other
parties in the sea venture.
Title to agricultural commodities made available under title II of
Public Law 480 passes to the recipient country at the United States
port. Consequently, the beneficiary of a United States contribution
for disaster relief has on occasion been presented with a bill for general
average claims? A claim presented to a foreign government under such
circumstances tends to be embarrassing to the United States. The
United States desires, in the few cases when such claims arise, to be
able to meet them from the funds available for paying ocean freight
charges.
MUTUAL SECURITY ACT OF 1959
Section 602, repealing section 501(b): International cooperation in health
Section 501(b) of the Mutual Security Act of 1959 (Public Law
86-108) authorizes the use of $2 million of the funds appropriated
pursuant to section 451(b) of the Mutual Security Act of 1954 to
determine the feasibility of future intensive programs for dealing with
international disease problems. This provision was not in the bill
which passed the House and represents a compromise arrived at in
conference.
The Mutual Security Appropriation Act, 1960 (Public Law 86-383),
section 110, contains a limitation that none of the funds appropriated
could be used to carry out the provisions of section 501 of the Mutual
Security Act of 1959.
Since there is already adequate authority in the Mutual Security
Act of 1954, as amended, to carry out the activities authorized by
section 501(b), the Committee on Foreign Affairs has adopted the
recommendation of the Executive that this authorization be repealed.
CHANGES IN EXISTING LAW
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill as intro-
duced, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italic, existing
law in which no change is proposed is shown in roman) :
The Mutual Security Act of 1954, as Amended
AN ACT To promote the security and foreign policy of the United States by
furnishing assistance to friendly nations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That this Act may be cited
as the "Mutual Security Act of 1954." This Act is divided into
chapters and titles, according to the following table of contents:
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MUTUAL SECURITY ACT OF 19 0 0
TABLE OF CONTENTS
Chapter I-MILITARY ASSISTANCE
Chapter II-ECONOMIC ASSISTANCE
Title I-DEFENSE" SUPPORT
Title II-DEVELOPMENT LOAN FUND
Title III-TECHNICAL COOPERATION
Title IV-SPECIAL ASSISTANCE AND OTHER PROGRAMS
Chapter III-CONTINGENCY FUND
Chapter IV-GENERAL AND ADMINISTRATIVE PROVISIONS
SEC. 2. STATEMENT OF POLICY.-(a) It is the sense of the Congress
that peace in the world increasingly depends on wider recognition,
both in principle and practice, of the dignity and interdependence of
men; and that the survival of free institutions in the United States
can best be assured in a worldwide atmosphere of expanded freedom.
(b) Through programs of assistance authorized by this Act and its
predecessors, the United States has helped thwart dommunist intimi-
dation in many countries of the world, has helped Europe recover
from the wounds of World War II, has supported defensive military
preparations of nations alerted by Communist aggression, and has
soundly begun to help peoples of economically underdeveloped areas
to develop their resources and improve their living standards.
(c) Programs authorized by this Act continue to serve the follow-
ing principal purposes:
(1) The Congress recognizes the basic identity of interest which
exists between the people of the United States and the peoples of other
lands who are striving to establish and develop politically independent
and economically viable units, and to produce more goods and services,
and to improve ways of living by methods which reflect the popular
will, and to realize aspirations for justice, for education, and for
dignity and respect as individual human beings, and to establish
responsible governments which will cooperate with other like-minded
governments. The Congress declares it to be a primary objective and
need of the United States, and one consistent with its tradition and
ideals, to share these strivings by providing, assistance, with due
regard for our other obligations, to peoples willing to work energeti-
cally toward these ends.
(2) The Congress recognizes that the peace of the world and the
security of the United States are endangered so long as international
communism and the nations it controls continue by threat of military
action, by the use of economic pressure, and by internal subversion, or
other means to attempt to bring under their domination peoples now
free and independent and continue to deny the rights of freedom and
self-government to peoples and nations once free but now subject to
such domination. The Congress declares it to be the policy of the
United States to continue so long as such danger to the peace of the
world and to the security of the United States persists, to make avail-
able to other free nations and peoples upon. request assistance of such
nature and in such amounts as the United States deems advisable
compatible with its own stability, strength, and other obligations, and
as may be needed and effectively used by such free nations and peoples
to help them maintain their freedom.
(d) It is the sense of the Congress that inasmuch as-
(I) the United States, through mutual security programs, has
made substantial contributions to the economic recovery and re-
habilitation of the nations of Western Europe; and
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MUTUAL SECURITY ACT OF 1960
(2) due',in part to those programs, it has been possible for such
nations to achieve complete economic recovery and to regain their
military strength; andp
(3) certain other friendly nations of the world remain in need
of assistance in order that they may defend themselves against ag-
gression and contribute to the security of the free world;
those nations which have been assisted in their recovery should, in the
future, share with the United States to a greater extent the financial
burden of providing aid to those countries which are still in need of
assistance of the type provided under this Act.
(e) It is the sense of the Congress that assistance provided under
this Act shall be administered so as to assist other peoples in their
efforts to achieve self-government or independence under circum-
stances which will enable them to assume an equal station among the
free nations of the world and to fulfill their responsibilities for self-
government or independence. To this end, assistance shall be ren-
dered where appropriate and feasible in such a way as to promote the
emergence of political units which are economically viable, either alone
or in cooperation with neighboring units.
(f) It is the sense of the Congress that inasmuch as-
(1) the United States favors freedom of navigation in inter-
national waterways and economic cooperation between nations; and
(2) the purposes of this Act are negated and the peace of the
world is endangered when nations which receive assistance under
this Act wage economic warfare against other nations assisted under
this Act, including such procedures as boycotts, blockades, and
the restriction of the use of international waterways;
assistance under this Act and the Agricultural Trade Development and
Assistance Act of 1954, as amended, shall be administered to give effect
to these principles, and, in all negotiations between the United States
and any foreign state arising as a result of funds appropriated under
this Act or arising under the Agricultural Trade Development and Assist-
ance Act of 1954, as amended, these principles shall be applied, as the
President may determine, and he shall report on measures taken by the
administration to insure their application.
CHAPTER I-MILITARY ASSISTANCE
SEC. 107. PURPOSE OF CHAPTEn.-The Congress of the United
States reaffirms the policy of the United States to achieve international
peace and security through the United Nations so that armed force
shall not be used except in the common defense. The Congress hereby
finds that the efforts of the United States and other nations to promote
peace and security require additional measures of support based upon
the principle of continuous and effective self-help and mutual aid. It
is the purpose of this chapter to authorize measures in the common
defense, including the furnishing of military assistance to friendly
nations and international organizations in order to promote the for-
eign policy, security, and general welfare of the United States and to
facilitate the effective participation of such nations in arrangements
for individual and collective self-defense. In furnishing such military
assistance, it remains the policy of the United States to continue to
exert maximum efforts to achieve universal control of weapons of mass
destruction and universal regulation and reduction of armaments, in-
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56 MUTUAL SECURITY ACT OF 1960
eluding armed forces, under adequate safeguards to protect complying
nations against violation and evasion.
The Congress reaffirms its previous expressions favoring the crea-
tion by the free peoples of the Far East and the Pacific of a joint or-
ganization, consistent with the Charter of the United Nations, to estab-
lish a program of self-help and mutual cooperation designed to develop
their economic and social well-being, to safeguard basic rights and.
liberties and to protect their security and independence.
The Congress hereby reiterates its opposition to the seating in the
United Nations of the Communist China regime as the representative
of China. In the event of the seating of representatives of the Chi-
nese regime in the Security Council or General Assembly of the United
Nations, the President is requested to inform the Congress insofar as
is compatible with the requirements of national security, of the impli-
cations of this action upon the foreign policy of the United States and
our foreign relationships, including that created by membership in the
United Nations, together with any recommendations which he may
have with respect to the matter.
SEC. 102. GENERAL AUTHORITY.-Military assistance may be fur-
nished under this chapter on a grant or loan basis and upon such
other appropriate terms as may be agreed upon, by the procurement
from any source and the transfer to eligible nations and international
organizations of equipment, materials, and services or by the provision
of any service, including the assignment or detail of members of the
Armed Forces and other personnel of the Department of Defense
solely to assist in an advisory capacity or to perform other duties of
a non-combatant nature, including military training or advice.
SEC. 103. AUTHORIZATIONS.-(a) There is hereby authorized to be
appropriated to the President for use beginning in the fiscal year
1960 to carry out the purposes of this chapter not to exceed $1,400,-
000,000, which shall remain available until expended. Programs of
military assistance subsequent to the fiscal year 1960 program shall
be budgeted so as to come into competition for financial support with
other activities and programs of the Department of Defense. There
is hereby authorized to be appropriated to the president for the fiscal
years 1961 and 1962 such sums as may be necessary from time to time
to carry out the purposes of this chapter, which sums shall remain
available until expended.
(b) Funds made available pursuant to subsection (a) of this section
shall be available for the administrative and operating expenses of
carrying out the purpose of this chapter including expenses incident
to United States participation in international security organizations.
(c) When appropriations made pursuant to subsection (a) of this
section are used to furnish military assistance on terms of repayment
within ten years or earlier such assistance may be furnished, notwith-
standing sections 105, 141, and 142, to nations eligible to purchase
military equipment, materials, and services under section 106. When
appropriations made pursuant to this section are used to furnish mili-
tary assistance on terms of repayment within three years or earlier,
dollar repayments, including dollar proceeds derived from the sale of
foreign currency received hereunder to any United States Government
agency or program, may be credited to the current applicable appro-
priation and shall be available until expended for the purposes of mili-
tary assistance on terms of repayment, and, notwithstanding section
1415 of the Supplemental Appropriation Act, 1953, or any other
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MUTUAL SECURITY ACT OF 1960 7
provision of law relating to the use of foreign currencies or other
receipts accruing to the United States, repayments in foreign currency
may be used for the purposes of this chapter: Provided, That the
authority in this sentence shall apply to repayments from not to exceed
$175,000,000 of the appropriations used for such assistance.
SEC. 104. INFRASTRUCTURE.-(a) The President is authorized to
make contributions to infrastructure programs of the North Atlantic
Treaty Organization, in accordance with agreements made between
tl}e member nations, out of funds made available pursuant to this
section, or section 103, or chapter IX of the Supplemental Appro-
priation Act, 1953, of amounts totaling not more than $1,000,000,000,
less amounts already contributed for such purpose. Such contribu-
tions by the United States shall not exceed its proportionate share, as
heretofore agreed upon, of the expenses of such programs.
(b) When the President determines that it is in the interest of the
security of the United States to participate in programs for the acqui-
sition or construction of facilities in foreign nations for collective
defense other than programs of the, North Atlantic Treaty Organiza-
tion, he may use for such purpose funds made available under section
103 or local currencies made available under section 402 in amounts
totaling not more than $50,000,000.
(c) Notwithstanding section 501 of this Act, no funds other than
those referred to in subsections (a) and (b) of this section may be ex-
pended for the purposes of this section. No funds shall be expended
under this section for rental or purchase of land or for payment of
taxes.
SEC. 105. CONDITIONS APPLICABLE TO MILITARY ASSISTANCE.-(a)
Military assistance maybe furnished under this chapter to any nation
whose increased ability to defend itself the President shall have de-
termined to be important to the security of the United States and
which is otherwise eligible to receive such assistance. Equipment and
materials furnished under this chapter shall be made available solely
to maintain the internal security and legitimate self-defense of the
recipient nation, or to permit it to participate in the defense of its
area or in collective security arrangements and measures consistent
with the Charter of the United Nations. The President shall be
satisfied that such equipment and materials will not be used to under-
take any act of aggression against any nation.
(b) In addition to the authority and limitations contained in the
.preceding subsection, the following provisions shall apply to particular
areas:
(1) The Congress welcomes the recent progress in European
cooperation and reaffirms its belief in the necessity of further
efforts toward political federation, military integration, and eco-
nomic unification as a means of building strength, establishing
security, and preserving peace in the North Atlantic area. In
order to provide further encouragement to such efforts, the Con-
gress believes it essential that this Act should be so administered
as to support concrete measures to promote greater political fed-
eration, military integration, and economic unification in Europe,
including coordinated production and procurement programs par-
ticipated in by the members of the North Atlantic Treaty
Organization to the greatest extent possible with respect to mili-
tary equipment and materials to be utilized for the defense of the
North Atlantic area.
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58 MUTUAL SECURITY ACT OF 1960
(2) Military assistance furnished to any nation in the Near
East and Africa to permit it to participate in the defense of its
area shall be furnished only in accordance with plans and ar-
rangements which shall have been found by the President to
require the recipient nation to take an important part therein.
(3) In furnishing military assistance in Asia, the President
shall give the fullest assistance, as far as possible directly, to
the free peoples in that area, including the Associated States of
Cambodia, Laos, and Vietnam, in their creation of a joint organi-
zation, consistent with the Charter of the United Nations, to
establish a program of self-help and mutual cooperation designed
to develop their economic and social well-being, to safeguard
basic rights and liberties, and to protect their security and
independence.
(4) Military equipment and materials may be furnished to the
other American Republics only in furtherance of missions directly
relating to the common defense of the Western Hemisphere which
are found by the President to be important to the security of the
United States. The President annually shall review such findings
and shall determine whether military assistance is necessary.
Internal security requirements shall not, unless the President
determines otherwise, be the basis for military assistance pro-
grams to American Republics. The aggregate amount of funds
which may be obligated or reserved during the fiscal year [1960]
1961 for furnishing military assistance to American Republics
shall not exceed the aggregate amount of funds obligated or
reservedfor such purpose during the fiscal year [1959] 1960.
(5) To the extent feasible and consistent with the other pur-
poses of this chapter, administrators of the military assistance
program shall encourage the use of foreign military forces in
underdeveloped countries in the construction of public works and
other activities helpful to economic development.
SEC. 106. SALE OF MILITARY EQUIPMENT, MATERIALS, AND SERV-
ICES.-(a) The President may, in order to carry out the purposes of
this chapter, sell or enter into contracts (without requirement for
charge to any appropriation or contract authorization) for the pro-
curement for sale of equipment, materials, or services to any nation or
international organization: Provided, That prior to the transfer of
any such equipment, materials, or services to any nation which has not
signed an agreement under section 142 of this Act or joined with the
United States in a regional collective defense arrangement, the Presi-
dent shall have received commitments satisfactory to him that such
equipment, materials, or services are required for and will be used by
such nation solely to maintain its internal security, its legitimate
self-defense, or to permit it to participate in the defense of the area
of which it is a part, or in collective security arrangements and meas-
ures consistent with the Charter of the United Nations, and that it
will not undertake any act of aggression against any other state.
(b) Whenever equipment or materials are sold from the stocks of or
services are rendered by any United States Government agency to
any nation or international' organization as provided in subsection
(a), such nation or international organization shall first make avail-
able the fair value, as determined by the President, of such equipment,
materials, or services before delivery or, when the President deter-
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MUTUAL SECURITY ACT OF 1960 59
mines :it to be in the best interests of the United States, within sixty
days thereafter or, as determined by the President, within a reason-
able period not to exceed three years. The fair value for the purpose
of this subsection shall not be less than the value as defined in sub-
section (h) of section 545: Provided, That with .respect to excess
equipment or materials the fair value may not be determined to be
less than (i) the minimum value specified in that subsection plus the
scrap value, or (ii) the market value, if ascertainable, whichever is
the greater. -Before a contract for new production is entered into, or
rehabilitation work is undertaken, such nation or international organi-
zation shall (A) provide the United States with a dependable under-
taking, to pay the full amount of such contract or the cost of such
rehabilitation which will assure the United States against any loss
on the contract or rehabilitation work, and (B) shall make funds
available in such amounts and at such times as may be necessary to
meet the payments required by the contract or the rehabilitation work
in advance of the time such payments are due, in addition to the
estimated amount of any damages and costs that may accrue from
the cancellation of such contract or rehabilitation work.
(c) Sections 105, 141, and 142 shall not apply with respect to assist-
ance furnished under this section.
SEC. 107. WAIVERS OF LAW.--(a) The President may perform
any of the functions authorized under this chapter without regard to
(1) the provisions of title 10, United States Code, section 7307(a);
and (2) such provisions as he may specify of the joint resolution of
November 4, 1939 (54 Stat. 4), as amended.
(b) Notwithstanding the provisions of title 10, United States Code,
section 3544(b) and 8544(b), personnel of the Department of Defense
may be assigned or detailed to any civil office for the purpose of
enabling the President to furnish assistance under this Act.
SEc. 131. GENERAL.AUTHORITY.-(a) The President is hereby au-
thorized to furnish, to nations and organizations eligible to receive
military assistance under Chapter I, or to nations which have joined
with the United States in a regional collective defense arrangement,
commodities, services, and financial and other assistance specifically
designed to sustain and increase military effort. In furnishing such
assistance, the President may provide for the procurement and trans-
fer from any source of any commodity or service (including process-
ing, storing, transporting, marine insurance, and repairing) or any
technical information and assistance.
,(b) There is hereby authorized to be appropriated to the Presi-
dent for use beginning in the fiscal year 1960] 1961 to carry out the
purposes of this section not to exceed ?$751,000,000] $675,000,000,
which shall remain available until expended.
(c) In providing assistance in. the procurement of commodities in
the United States, United States dollars shall be made available for
marine insurance on such commodities where such insurance is placed
on a competitive basis in.accordance with normal trade practice pre-
vailing prior to the outbreak of World War II: Provided, That in the
event a participating country, by statute, decree, rule, or regulation.,
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60 MUTUAL SECURITY ACS.' OF 1960
discriminates against any marine insurance company authorized to do
business in any State of the United States, then commodities purchased
with funds provided hereunder and destined for such country shall
be insured in the United States against marine risk with a company
or companies authorized to do a marine insurance business in any
State of the United States.
(d) To the extent necessary to accomplish the purposes of this
section in Korea (1) assistance may be furnished under this section
without regard to the other provisions of this title or chapter I and
(2) the authority provided in section 307 may be exercised in fur-
nishing assistance under subsection (a) of this section; and funds
available under this section may be used for payment of ocean freight
charges on shipments for relief and rehabilitation in Korea without
regard to section 409 of this ELIGIBILITY SEC. 141. CONDITIONS OF ELIGIBILITY FOR ASSISTANCE.-NO assist-
ance shall be furnished under this title or chapter I to any nation. or
organization unless the President shall :Nave found that furnishing
such assistance will strengthen the security of the United States and
promote world peace. ENO such assistance] No defense support or
militar equipment and materials shall be furnished to a nation unless
it shall have agreed to the provisions required by section 142, and
such additional provisions as the President deems necessary to effectu-
ate the policies and provisions of this title or chapter I and to safe-
guard the interests of the United States.
SEC. 142. AGREEMENTS.-(a) [No assistance] No defense support
or military equipment and materials shall be furnished to any nation
under chapter- I or under this title unless such nation shall have agreed
to-
(1) join in promoting international understanding and good
will, and maintaining world peace;
(2) take such action as may be mutually agreed upon to elim-
inate causes of international tension;
(3) fulfill the military obligations, if any, which it has assumed
under multilateral or bilateral agreement or treaties to which the
United States is a party;
(4) make, consistent with its political and economic stability,
the full contribution permitted by its manpower, resources, facil-
ities, and general economic condition to the development and
maintenance of its own defensive strength and the defensive
strength of the free world;
(5) take all reasonable measures which may be needed to
develop its defense capacities;
(6) take appropriate steps to insure the effective utilization
of the assistance furnished under this title in furtherance of the
policies and purposes of chapter I or of this title;
(7) impose appropriate restrictions against transfer of title
to or possession of any equipment and materials, information,
or services furnished under chapter I without the consent of the
President;
(8) maintain the security of any article, service, or information
furnished under chapter I;
(9) furnish equipment and materials, services, or other assist-
ance consistent with the Charter of the United Nations, to the
United States or to and among other nations to further the policies
and purposes of chapter I;
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MUTUAL SECURITY ACT OF 1960 61
(10) permit continuous observation and review by United
States representatives of programs of assistance authorized under
chapter I or under this title, including the utilization of any such
assistance and provide the United States with full and complete
information with respect to these matters, as the President may
require.
(b) In cases where any commodity is to be furnished on a grant
basis under this title under arrangements which will result in the
accrual of proceeds to the recipient nation from the import or sale
thereof, such assistance shall not be furnished unless the recipient
nation shall have agreed to establish a Special Account, and-
(i) deposit in the Special Account, under such terms and con-
ditions as may be agreed upon, currency of the recipient nation
in amounts equal to such proceeds;
(ii) make available to the United States such portion of the
Special Account as may be determined by the President to be
necessary for the requirements of the United States: Provided,
That such portion shall not be less than 10 per centum in the case
of any country to which such minimum requirement has been
applicable under any Act repealed by this Act; and
(iii) utilize the remainder of the Special Account for pro-
grams agreed to by the United States to carry out the purposes
for which new funds authorized by this Act would themselves
be available: Provided, That if amounts in such remainder exceed
the requirements of such programs, the recipient nation may
utilize such excess amounts for other purposes agreed to by the
United States which are consistent with the foreign policy of the
United States: Provided further, That such utilization of such
excess amounts in all Special Accounts shall not exceed the
equivalent of $4,000,000: Provided further, That whenever funds
from.such Special Account are used by a country to make loans,
all funds received in repayment of such loans prior to termina-
tion of assistance to such country shall be reused only for such
purposes as shall have been agreed to between the country and
the Government of the United States.
Any unencumbered balances of funds which remain in the Account
upon termination of assistance to such nation under this Act shall be
disposed of for such purposes as may, subject to approval by the Act
or joint resolution of the Congress, be agreed to between such country
and the Government of the United States.
SEC. 143. ASSISTANCE To YUGOSLAVIA.-In furnishing assistance to
Yugoslavia, the President shall continuously assure himself (1) that
Yugoslavia continues to maintain its independence, (2) that Yugo-
slavia is not participating in any policy or program for the Commu-
nist conquest of the world, and (3) that the furnishing of such assist-
ance is in the interest of the national security of the United States.
The President shall keep the Foreign Relations Committee and the
Appropriations Committee of the Senate and the Speaker of the
House of Representatives fully and constantly informed of any assist-
ante furnished to Yugoslavia under this Act.
SEc. 144. SoUTh EAST ASIA.-Assistance under this title or chapter I
shall be made available subject to the provisions of sections 141 and
142, except that (1) in the case of assistance to the Associated States
of Cambodia, Laos, and Vietnam, and (2) in the case of assistance (riot
63899-60 -5
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62 MUTUAL SECURITY ACT OF 1960
to exceed in the aggregate 10 per centum of the amount appropriated
pursuant to section 121, excluding unexpended balances of prior ap-
propriations) to other nations in the area of southeast Asia, the Presi-
dent may waive specific provisions of section 142 to the extent he may
deem necessary in the national interest to carry out the purposes of
this Act. The President or such officer as he may designate shall re-
port each instance of such waiver to the Foreign Relations, Appropria-
tions, and Armed Services Committees of the Senate and the Speaker
of the House of Representatives within thirty days.
T]:TLEsII-DEVELOPMENT LOAN FUND
SEC. 201. DECLARATION OF PURPOSE.-The Congress of the United
States recognizes that the progress of free peoples in their efforts to
further their economic development, and thus to strengthen their free-
dom, is important to the security and general welfare of the United
States. The Congress further recognizes the necessity in some cases of
assistance to such peoples if they are to succeed in these efforts. The
Congress accordingly reaffirms that it is the policy of the United States,
and declares it to be the purpose of this title, to strengthen friendly
foreign countries by encouraging the development of their economies
through a competitive free enterprise system; to minimize or eliminate
barriers to the flow of private investment capital and international
trade; to facilitate the creation of a climate favorable to the invest-
ment of private capital; and to assist, on a basis of self-help and mu-
tual cooperation, the efforts of free peoples to develop their economic
resources and to increase their productive capabilities.
SEC. 202. GENERAL AUTHORITY.-(a) To carry out the purposes of
this title, there is hereby created as an agency of the United States of
America, subject to the direction and supervision of the President, a
body corporate to be known as the "Development Loan Fund" (herein-
after referred to in this title as the "Fund") which shall have suc-
cession in its corporate name. The Fund shall have its principal
office in the District of Columbia and shall be deemed, for purposes
of venue in civil actions, to be a resident thereof. It may estab-
lish offices in such other place or places as it may deem necessary or
appropriate.
(b) The Fund is hereby authorized to make loans, credits, or guar-
anties, or to engage iii other financing operations or transactions (not
to include grants or direct purchases of equity securities), to or with
such nations, organizations, persons or other entities, and on such
terms and conditions, as it may determine, taking into account (1)
whether financing could be obtained in whole or in part from other
free world sources on reasonable terms, (2) the economic and technical
soundness of the activity to be financed, (3) whether the activity gives
reasonable promise of contributing to the development of economic
resources or to the increase of productive capacities in furtherance of
the purposes of this title, and (4) the possible adverse effects upon
the economy of the United States, with special reference to areas of
substantial labor surplus, of the activity and the financing operation
or transaction involved. Loans shall be made by the Fund only on
the basis of firm commitments by the borrowers to make repayment
and upon a finding that there are reasonable prospects of such repay-
ment. The Fund in its operations shall recognize that development
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MUTUAL S CURITY AC's OP 1060 63
loan assistance will be most effective in those countries which show a
responsiveness to the vital long-term economic, political, and social
concerns of their people, demonstrate a clear willingness to take effec-
tive self-help measures, and effectively demonstrate that such assist-
ance is consistent with, and makes a contribution to, workable long-
term economic development objectives. The Fund shall be adminis-
tered so as to support and encourage private investment and other
private participation furthering the purposes of this title, and it shall
be administered so as not to compete with private investment capital,
the Export-Import Bank or the International Bank for Reconstruction
and Development. The provisions of section 955 of title 18 of the
United States Code shall not apply to prevent any person, including
any individual, partnership, corporation, or association, from acting
for or participating with the Fund in any operation or transaction,
or from acquiring any obligation issued in connection with any oper-
ation or transaction, engaged in by the Fund. The authority of
section 451 (a) of this Act may not be used to waive the requirements
of this title or of the Mutual Defense Assistance Control Act of 1951
with respect to this title, nor may the authority of section 501 of this
Act be used to increase or decrease the funds available under this
title. No guaranties of equity investment against normal business-
type risks shall be made available under this subsection nor shall the
fractional reserve maintained by the Development Loan Fund for any
guaranty made pursuant to this section be less in any case than 50
per contum of the contractual liability of the Development Loan Fund
under such guaranty, and the total contractual liability of the Devel-
opment Loan Fund under all of such guaranties shall not, at any one
time, exceed $100,000,000. The President's semi-annual reports to
the Congress on operations under this Act, as provided for in section
534 of this Act, shall include detailed information on the implementa-
tion of this title.
(c) The Fund shall not allocate or commit funds aggregating in excess
of $100,000 for use in any country under this title unless (1) an applica-
tion for such funds has been received for use in such country which
is supported by sufficient engineering, financial, or other data to indicate
reasonably (A) the manner in which it is proposed to use such funds, (B)
the economic and technical soundness of such use, and (C) the practicabil-
ity of such use, or (2) the President determines it to be in the national
interest to use such funds pursuant to multilateral plans.
SEc. 203. CAPITALIZATION.-There is hereby authorized to be ap-
propriated to the President at any time after enactment of the Mutual
Security Act of 1959 without fiscal year limitation for advances to the
Fund after June 30, 1959, not to exceed $1,800,000,000 of which not
to exceed $700,000,000 may be advanced prior to July 1, 1960, and not
to exceed an additional $1,100,000,000 may be advanced prior to
July 1, 1961.
SEC. 204. FISCAL PRovisioxs.-(a) All receipts from activities or
transactions under this title shall be credited to the Fund and, not-
withstanding section 1415 of the Supplemental Appropriation Act,
1953, or any other provision of law relating to the use of foreign cur-
rencies or other receipts accruing to the United States, shall be
available for use for purposes of this title.
(b) The Fund is authorized to incur, in accordance with the pro.
visions of this title, obligations in amounts which may not at any
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64 MUTUAL SECURITY ACT OF 1960
time exceed the assets of the Fund. The term "assets of the Fund" as
used in this section shall mean the amount of liquid assets of the Fund
at any given time including any amount of capitalization made avail-
able pursuant to section 203 of this Act which has not been advanced
to the Fund as of such time. The assets of the Fund shall be available
without fiscal year limitation for any obligations or expenditures in
connection with the performance of functions under this title.
(c) The Fund shall be deemed to be a wholly owned Government
corporation and shall accordingly be subject to the applicable pro-
visions of the Government Corporation Control Act, as amended.
SEC. 205. MANAGEMENT, POWERS AND AUTHORITIES.-(a) The
management of the Fund shall be vested in a Board of Directors
(hereinafter referred to in this title as the "Board") consisting, of the
[Under Secretary of State for Economic Affairs] Secretary of State,
who shall be Chairman, the Director of the International Cooperation
Administration, the Chairman of the Board of Directors of the Export-
Import Bank, the Managing Director of the Fund, and the United
States Executive Director on the International Bank for Reconstruc-
tion and Development. The Board shall carry out its functions subject
to the foreign policy guidance of the Secretary of State. The Board
shall act by a majority vote participated in by a quorum; and three
members of the Board shall constitute a quorum. Subject to the fore-
going sentence, vacancies in the membership of the Board shall not
affect its power to act. The Board shall meet for organization purposes
when and where called by the Chairman. The Board may, in addition
to taking any other necessary or appropriate actions in connection with
the management of the Fund, adopt, amend, and repeal bylaws gov-
erning the conduct of its business and the performance of the authori-
ties, powers, and functions of the Fund and its officers and employees.
The members of the Board shall receive no compensation for their
services on the Board but may be paid actual travel expenses and per
diem in lieu of subsistence under the Standardized Government Travel
Regulations in connection with travel or absence from their homes or
regular places of business for purposes of business of the Fund.
(b) There shall be a Managing Director of the Fund who shall be
the chief executive officer of the Fund, who shall be appointed by the
President of the United States by anal with the advice and consent of
the Senate, and whose compensation shall be at a rate of $20,000 a
year. There shall also be a Deputy Managing Director of the Fund,
whose compensation shall be at a rate not in excess of $19,000 a year,
and four other officers of the Fund, whose titles shall be determined
by the Board and whose compensation shall be at a rate not in excess
of $18,000 per year. Appointment to the offices provided for in the
preceding sentence shall be by the Board. The Managing Director, in
his capacity as chief executive officer of the Fund, the Deputy Man-
aging Director and the other officers of the Fund shall perform such
functions as the Board may designate and shall be subject to the super-
vision and direction of the Board. During the absence or disability
of the Managing Director or in the event of a vacancy in the office of
Managing Director, the Deputy Managing Director shall act as Man-
aging Director, or, if the Deputy Managing Director is also absent or
disabled or the office of Deputy Managing Director is vacant, such
other officer as the Board may designate shall act as Managing Direc-
tor. The offices provided for in this subsection shall be in addition to
positions otherwise authorized by law.
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MUTUAL SECURIT
(c) The Fund, in addition to other powers and authorities vested
in or delegated or assigned to the Fund or its officers or the Board, may:
enter into, perform, and modify contracts, leases, agreements, or other
transactions, on such terms as it may deem appropriate, with any
agency or instrumentality of the United States, with any foreign gov-
ernment or foreign government agency, or with any person, partner-
ship, association, corporation, organization, or other entity, public or
private, singly or in combination; accept and use gifts or donations of
services, funds, or property (real, personal or mixed, tangible or in-
tangible); contract for the services of attorneys; determine the char-
acter of and necessity for obligations and expenditures of the Fund,
and the manner in which they shall be incurred, allowed, and paid,
subject to provisions of law specifically applicable to Government cor-
porations; acquire and dispose of, upon such terms and conditions and
for such consideration as the Fund shall determine to be reasonable,
through purchase, exchange, discount, rediscount, public or private
sale, negotiation, assignment, exercise of option or conversion rights,
or otherwise, for cash or credit, with or without endorsement or guar-
anty, any property, real, personal, mixed, tangible or intangible, in-
cluding, but not limited to, mortgages, bonds, debentures (including
convertible debentures), liens, pledges and other collateral or security,
contracts, claims, currencies, notes, drafts, checks, bills of exchange,
acceptances :including bankers' acceptances, cable transfers and all
other evidences of indebtedness or ownership (provided that equity
securities may not be directly purchased although such securities may
be acquired by other means such as by exercise of conversion rights or
through enforcement of liens, pledges or otherwise to satisfy a previ-
ously incurred indebtedness), and guarantee payment against any in-
strument above specified; issue letters of credit and letters of commit-
ment; collect or compromise any obligations assigned to or held by,
and any legal or equitable rights accruing to, the Fund, and, as
the Fund may determine, refer any such obligations or rights to the
Attorney General for suit or collection; adopt, alter and use a corpo-
rate seal which shall be judicially noticed; require bonds for the faith-
ful performance of the duties of its officers, attorneys, agents and em-
ployees and pay the premiums thereon; sue and be sued in its corporate
name (provided that no attachment, injunction, garnishment, or simi-
lar process, mesne or final, shall be issued against the Fund or any
officer thereof, including the Board or any member thereof, in his offi-
cial capacity or against property or funds owned or held by the Fund
or any such officer in his official capacity) ; exercise, in the payment of
debts out of bankrupt, insolvent or decedent's estates, the priority of
the Government of the United States; purchase one passenger motor
vehicle for use in the [continental] United States and replace such
vehicle from time to time as necessary; use the United States mails in
the same manner and under the same conditions as the executive de-
partments of the Federal Government; and otherwise take any and all
actions determined by the Fund to be necessary or desirable in making,
carrying out, servicing, compromising, liquidating, or otherwise deal-
ing with or realizing on any transaction or operation, or in carrying
out any function. Nothing herein shall be construed to exempt the
Fund or its operations from the application of section 507(b) and 2679
of title 28, United States Code or of section 367 of the Revised Statutes
(5 U.S.C. 316), or to authorize the Fund to borrow any funds from any
source without the express legislative permission of the Congress.
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(d) The Fund shall contribute, from the respective appropriation
or fund used for payment of salaries, pay or compensation, to the
civil service retirement and disability fund, a sum as provided by
section 4(a) of the Civil Service Retirement Act, as amended (5
U.S.C. 2254a), except that such sum shall be determined by applying
to the total basic salaries (as defined in that Act) paid to the employees
of the Fund covered by that Act, the per centum rate determined
annually by the Civil Service Commission to be the excess of the total
normal cost per centum rate of the civil service retirement system over
the employee deduction rate specified in said section 4(a). The Fund
shall also contribute at least quarterly from such appropriation or
fund, to the employees' compensation fund, the amount determined
by the Secretary of Labor to be the full cost of benefits and other pay-
ments made from such fund on account of injuries and deaths of its
employees which may hereafter occur. The Fund shall also pay into
the Treasury as miscellaneous receipts that portion of the cost of ad-
ministration of the respective funds attributable to its employees, as
determined by the Civil Service Commission and the Secretary of
Labor.
(e) The assets of the Development Loan Fund on the date of
enactment of the Mutual Security Act of 1.958 shall be transferred as
of such date to the body corporate created by section 202 (a) of this
Act. In addition, records, personnel, and property of the Interna-
tional Cooperation Administration may, as agreed by the Managing
Director and the Director of the International Cooperation Adminis-
tration or as determined by the President, be transferred to the Fund.
Obligations and liabilities incurred against, and rights established or
acquired for the benefit of or with respect to, the Development Loan
Fund during the period between August 14, 1957, and the date of
enactment of the Mutual Security Act of 1958 are hereby transferred
to, and accepted and assumed by, the body corporate created by sec-
tion 202(a) of this Act. A person serving as Manager of the Develop-
ment Loan Fund as of the date of enactment of the Mutual Security
Act of 1958 shall not, by reason of the enactment of that Act, require
reappointment in order to serve in the office of Managing Director
provided for in section 205(b) of this Act.
SEC. 206. NATIONAL ADVISORY COUNCIL.-The Fund shall be ad-
ministered subject to the applicable provisions of section 4 of the
Bretton Woods Agreements Act (22 U.S.C.. 286b) with respect to the
functions of the National Advisory Council on International Monetary
and Financial Problems.
SEC. 301. DECLARATION OF PURPOSE.-It is the policy of the United
States and the purpose of this title to aid the efforts of the peoples of
economically underdeveloped areas to develop their resources and im-
prove their working and living conditions by encouraging the exchange
of technical knowledge and skills and the flow of investment capital
to countries which provide conditions under which such technical
assistance and capital can effectively and constructively contribute
to raising standards of living, creating now sources of wealth, increas-
ing productivity and expanding purchasing power.
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MUTUAL SECURITY ACT OF 1960
SEC. 302. GENERAL AUTHORITY AND DEFINITION.-The President
is authorized to furnish assistance in accordance with the provisions
of this title through bilateral technical cooperation programs. As
used in this title, the term, "technical cooperation programs" means
programs for the international interchange of technical knowledge
and skills designed to contribute primarily to the balanced and in-
tegrated development of the economic resources and productive capac-
ities of economically underdeveloped areas. Such activities shall be
limited to economic, engineering, medical, educational, labor, agricul-
tural, forestry, fishery, mineral, and fiscal surveys, demonstration,
training, and similar projects that serve the purpose of promoting the
development of economic resources, productive capacities, and trade
of economically underdeveloped areas, and training in public admin-
istration. The term "technical cooperation programs" does not in-
clude such activities authorized by the United States Information and
Educational Exchange Act of 1948 (62 Stat. 6) as are not primarily
related to economic development, nor activities undertaken now or
hereafter pursuant to the International Aviation Facilities Act (62
Stat. 450), nor activities undertaken now or hereafter in the admin-
istration of areas occupied by the United States Armed Forces.
SEC. 303. PREREQUISITES TO ASSISTANCE.-Assistance shall be
made available under section 302 of this Act only where the President
determines that the nation being assisted-
(a) pays a fair share of the cost of the program;
(b) provides all necessary information concerning such pro-
gram and gives the program full publicity;
(c) seeks to the maximum extent possible full coordination and
integration of technical cooperation programs being carried on
in that nation;
(d) endeavors to make effective use of the results of the pro-
gram; and
(e) cooperates with other nations participating in the program
in the mutual exchange of technical knowledge and skills.
SEC. 304. AUTHORIZATION.-There is hereby authorized to be ap-
propriated to the President to remain available until expended not to
exceed [$179,500,000] $172,000,000 for use beginning in the fiscal
year [1960] 1961 to carry out the purposes of this title.
SEC. 305. LIMITATION ON USE of FUNDS.-Funds made available
under section 304 may be expended to furnish assistance in the form
of equipment or commodities only where necessary for instruction or
demonstration purposes.
SEC. 306. MULTILATERAL TECHNICAL COOPERATION AND RELATED
PROGRAMS.-.As one means of accomplishing the purposes of this title
and this Act, the United States is authorized to participate in multi-
lateral technical cooperation and related programs carried on by the
United Nations, the Organization of American States, their related
organizations, and other international organizations, wherever prac-
ticable. There is hereby authorized to be appropriated to carry
out the purpose of this section, in addition to the amounts authorized
by section 304, not to exceed-
(a) [$30,000,000] $33,000,000 for the fiscal year [1960] 1961 for
contributions to the United Nations Expanded Program of Technical
Assistance and such related fund as may hereafter be established:
Provided, That, notwithstanding the limitation of 33.33 per centum
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bts MUTUAL SECURITY ACT OF 1960
contained in the Mutual Security Appropriation Act, 1957, the United
States contribution for such purpose may consitute for the calendar
year 1958 as much as but not to exceed 4:5 per centum of the total
amount contributed for such purpose and for succeeding calendar
years not to exceed 40 per centum of the total amount contributed for
such purpose (including assessed and audited local costs) for each such
year.
(b) $1,500,000 for the fiscal year [1960]1 1961 for contributions to
the technical cooperation program of the Organization of American
States.
SEC. 307. ADVANCES AND GRANTS; CONTRACTS.-The President may
make advances and grants-in-aid of technical cooperation programs to
any person, corporation, or other body of persons or to any foreign
government agency. The President may make and perform contracts
and agreements in respect to technical cooperation programs on behalf
of the United States Government with any person, corporation, or
other body of persons however designated, whether within or without
the United States, or with any foreign government or foreign gov-
ernment agency. A contract or agreement which entails commitments
for the expenditure of funds appropriated pursuant to this title may,
subject to any future action of the Congress, extend at any time for
not more than three years.
SEC. 308. INTERNATIONAL DEVELOPMENT ADVISORY BOARD.-There
shall be an advisory board, referred to in this section as the "Board,"
which shall advise and consult with the President, or such other officer
or officers as he may designate, with respect to general or basic policy
matters arising in connection with the operation of programs author-
ized by this title, title II, and section 413(b). The Board shall consist
of not more than thirteen members appointed by the President, one
of whom, by and with the advice and consent of the Senate, shall be
appointed by him as chairman. The members of the Board shall be
broadly representative of voluntary agencies and other groups inter-
ested in the programs, including business, labor, agriculture, public
health, and education. All members of the Board shall be citizens of
the United States; none except the chairman shall be an officer or'an
employee of the United States (including any United States Govern-
ment agency) who as such regularly receives compensation for current
services. Members of the Board, other than the chairman if he is an
officer of the United States Government, shall receive out of funds
made available for the purpose of this title a per diem allowance of
$50 for each day spent away from their homes or regular places of
business for the purpose of attendance at meetings of the Board or at
conferences held upon the call of the chairman, and in necessary travel,
and while so engaged they may be paid actual travel expenses and not
to exceed $10 per diem, or at the applicable rate prescribed in the
Standardized Government Travel Regulations, as amended from time
to time, whichever is higher, in lieu of subsistence and other expenses.
SEC. 400. SPECIAL ASSISTANCE.-(a) There is hereby authorized to
be appropriated to the President for the fiscal year [1960] 1961 not to
exceed [$247,500,000] $266,000,000 for use on such terms and condi-
tions as he may specify for assistance designed to maintain or promote
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MUTUAL SECURITY ACT OF 1960 69
political or economic stability. It is the sense of the Congress that so
long as it is the policy of the United States not to sell or furnish armaments
to any one nation in the Near East, no part of the funds appropriated
pursuant to this section should be used for the purchase of armaments by
any other nation in the Near East.
(b) For the purpose of promoting economic development in Latin
America there is hereby authorized to be appropriated to the Presi-
dent not to exceed $25,000,000, which shall remain available until
expended, and in the utilization of such sum preference shall be given
to (A) projects or programs that will clearly contribute to promoting
health, education, and sanitation in the area as a whole or among a
group or groups of countries of the area, (B) joint health, education,
and sanitation assistance programs undertaken by members of the
Organization of American States, and (C) such land resettlement pro-
grams as will contribute to the resettlement of foreign and native
migrants in the area as a whole, or in any country of the area, for the
purpose of advancing economic development and agricultural and
industrial productivity: Provided, That assistance under this sentence
shall emphasize loans rather than grants wherever possible, and not
less than 90 per centum of the funds made available for assistance
under this subsection shall be available only for furnishing assistance
on terms of repayment in accordance with the provisions of section 505.
(c) The President is authorized to use not to exceed $20,000,000 of
funds appropriated pursuant to subsection (a) of this section for
assistance, on such terms and conditions as he may specify, to schools
and libraries abroad, founded or sponsored by citizens of the United
States, and serving as study and demonstration centers for ideas and
practices of the United States, notwithstanding any other Act author-
izing assistance of this kind. Further, in addition to the authority
contained in this subsection, it is the sense of Congress that the Presi-
dent should make a special and particular effort to utilize foreign cur-
rencies accruing under title I of the Agricultural Trade Development
and Assistance Act of 1954, as amended, and notwithstanding the
provisions of Public Law 213, Eighty-second Congress, the Presi-
dent is authorized to utilize foreign currencies accruing to the United
States under this or any other Act, for the purposes of this subsection
and for hospitals abroad designed to serve as centers for medical
treatment, education and research, founded or sponsored by citizens
of the United States.
SEC. 401. UNITED NATIONS EMERGENCY FORCE.-The Congress of
the United States, recognizing the important contribution of the
United Nations Emergency Force to international peace and security,
declares it to be the policy of the United States and the purpose of
this section to support the United Nations Emergency Force. The
President is hereby authorized to use during the fiscal year [1960]
1961 funds made available pursuant to section 400(a) of this Act for .
contributions on a voluntary basis to the budget of the United Nations
Emergency Force.
SEC. 402. EARMARKING OF FUNDS.-Of the funds authorized to be
made available in the fiscal year [1960] 1961 pursuant to this Act
(other than funds made available pursuant to title II), not less than
$175,000,000 shall be used to finance the export and sale for foreign
currencies or the grant of surplus agricultural commodities or products
thereof produced in the United States, in addition to surplus agri-
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70 MUTUAL SECURITY ACT OF 1960
cultural commodities or products transferredpursuant,to""the Agri-
cultural Trade Development and Assistance Act of 1954, and in
accordance with the standards as to pricing and the use of private
trade channels expressed in section 101 of said Act. Foreign cur-
rency proceeds accruing from such sales shall be used for the purposes
of this Act and with particular emphasis on the purposes of section
104 of the Agricultural Trade Development and Assistance Act of
1954 which are in harmony with the purposes of this Act. Notwith-
standing section 1415 of the Supplemental Appropriation Act, 1953,
or any other provision of law, the President may use or enter into
agreements with friendly nations or organizations of nations to use
for such purposes the foreign currencies which accrue to the United
States under this section. Surplus food commodities or products
thereof made available for transfer under this Act (or any other
Act) as a grant or as a sale for foreign currencies may also be made
available to the maximum extent practicable to eligible domestic recip-
ients pursuant to section 416 of the Agricultural Act of 1949, as
amended (7 U.S.C. 1431), or to needy persons within the United
States pursuant to clause (2) of section 32 of the Act of August 24,
1935, as amended. (7 U.S.C. 612c). Section 416 of the Agricultural
Act of 1949, as amended (7 U.S.C. 1431), is amended by inserting
"whether in private stocks or" after "commodities" the first time that
word appears.
SEC. 403. RESPONSIBILITIES IN GERMANY.-The President is hereby
authorized to use during the fiscal year [1960] 1961 not to exceed
$7,500,000] $6,750,000 of the funds made available pursuant to sec-
tion 400(a) of this Act in order to meet the responsibilities or objectives
of the United States in Germany, including West Berlin. In carrying
out this section, the President may also use currency which has been
or may be deposited in the GARIOA (Government and Relief in
Occupied Areas) Special Account, including that part of the German
currency now or hereafter deposited under the bilateral agreement of
December 15, 1949, between the United States and the Federal
Republic of Germany (or any supplementary or succeeding agreement)
which, upon approval by the President, shall be deposited in the
GARIOA Special Account under the terms of article V of that agree-
ment. The President may use the funds available for the purposes
of this section on such terms and conditions as he may specify, and
without regard to any provision of law which he determines must be
disregarded.
Sr 404. INDUS BASIN DEVELOPMENT.--The Congress of the United
States welcomes the progress made through the good offices of the Inter-
national Bank for Reconstruction and Development toward the develop-
ment of the Indus Basin through a program, of cooperation among South
Asian and other nations of the free world in order to promote economic
growth and political stability in South Asia, and affirms the willingness
of the United States, pursuant to authorities contained in this and other
Acts, to participate in this significant undertaking. In the event that
funds appropriated pursuant to this Act are made available to be used by
or under the supe7vision of the International Bank for Reconstruction and
Development in furtherance of the foregoing purposes, such funds may be
used in accordance with requirements, standards, or procedures established
by the Bank concerning completion of plans and cost estimates and deter-
mination of feasibility, rather than with requirements, standards, or
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]WI'tYPUAL SWUctrrz ACT 0S' 1960 71.
procedures concerning such matters set forth in this or other Acts; and
such funds may also be used without regard to the provisions of section
901(6) of the Merchant Marine Act of 1936, as amended (46 U.S.C.
1241), whenever the President determines that such provisions cannot be
fully satisfied without seriously impeding or preventing accomplishment
of such purposes.
SEC. 405. MIGRANTS, REFUGEES, AND ESCAPEES.-(a) The Presi-
dent is hereby authorized to continue membership for the United
States on the Intergovernmental Committee for European Migration
in accordance with its constitution approved in Venice, Italy, on
October 19, 1953. For the purpose of assisting in the movement of
migrants, there is hereby authorized to be appropriated such amounts
as may be necessary from time to time for the payment by the United
States of its contributions to the Committee and all necessary salaries
and expenses incident to United States participation in the Committee.
(b) Of the funds made available under this Act, not more than
$800,000 may be used by the President to facilitate the migration to
the other American Republics of persons resident in that portion of
the Ryukyu Island Archipelago under United States control.
(c) There is hereby authorized to be appropriated for the fiscal
year [1960] 1961 not to exceed [$1,100,000] $1,500 000 for contribu-
tions to the program of the United Nations High commissioner for
Refugees for assistance to refugees under his mandate.
(d) There is hereby authorized to be appropriated to the President
for the fiscal year [1960] 1961 not to exceed [$5,200,000] $3,500,000
for, continuation of activities, including care, training, and resettle-
ment, which have been undertaken for selected escapees under section
451 of this Act.
SEC. 406. CHILDREN'S WELFARE: There is hereby authorized to
be appropriated not to exceed $12,000,000 for the fiscal year [1960]
1961 for contributions to the United Nations Children's Fund.
SEC. 407. PALESTINE REFUGEES IN TIIE NEAR EAST.-There is
hereby autho:rized to be appropriated to the President for the fiscal
year [1960] 1961 not to exceed [$25,000,000] $18,500,000 to be used
to make contributions to the United Nations Relief and Works
Agency for Palestine Refugees in the Near East[: Provided, That of the
funds appropriated pursuant to this section 10 per centum shall be
available only for repatriation or resettlement of such refugees]. In
determining whether or not to continue furnishing assistance for
Palestine refugees in the Near East, the President shall take into
account whether Israel and the Arab host governments are taking
steps toward the resettlement and repatriation of such refugees.
Whenever the President shall determine that it would more effectively
contribute to the relief, rehabilitation, and resettlement of Palestine
refugees in the Near East, he may expend any part of the funds made
available pursuant to this section through any other agency he may
designate.
SEC. 408. NORTH ATLANTIC TREATY ORGANIZATION.-(a) In order
to provide for United States participation in the North Atlantic Treaty
Organization, there is hereby authorized to be appropriated such
amounts as may be necessary from time to time for the payment by the
United States of its share of the expenses of the Organization and. all
necessary salaries and expenses of the United States permanent repre-
sentative to the Organization, of such persons as may be appointed to
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72 MUTUAL SECURITY ACT OF 1960
represent the United States in the subsidiary bodies of the Organiza-
tion or in any multilateral organization which participates in achieving
the aims of the North Atlantic Treaty, and of their appropriate staffs,
and the expenses of participation in meetings of such organizations,
including salaries, expenses, and allowances of personnel and depend-
ents as authorized by the Foreign Service Act of 1946, as amended
(22 U.S.C. 801), and allowances and expenses as provided in section 6
of the Act of July 30, 1946 (22 U.S.C. 287r).
(b) The United States permanent representative to the North At-
lantic Treaty Organization shall be appointed by the President by
and with the advice and consent of the Senate and shall hold office
at the pleasure of the President. Such representative shall have the
rank and status of ambassador extraordinary and plenipotentiary and
shall be a chief of mission, class 1, within the meaning of the Foreign
Service Act of 1946 as amended (22 U.S.C. 801).
(c) Persons detailed to the international staff of the North Atlantic
Treaty Organization in accordance with section 529 of this Act who
are appointed as Foreign Service Reserve Officers may serve for periods
of more than five years notwithstanding the limitation in section 522
of the Foreign Service Act of 1946, as amended (22 U.S.C. 922).
SEC. 409. OCEAN FREIGHT CHARGES.-(a) In order to further the
efficient use of United States voluntary contributions for relief and
rehabilitation in nations and areas eligible for assistance under this
Act, the President may pay ocean freight charges from United States
ports to designated ports of entry of suchnations and areas on ship-
ments by United States voluntary nonprofit relief agencies registered
with and approved by the Advisory Committee on Voluntary Foreign
Aid and shipments by the American Red Cross.
(b) Where practicable the President shall make arrangements with
the receiving nation for free entry of such shipments and for the
making available by that nation of local currencies for the purpose
of defraying the transportation cost of such shipments from the port
of entry of the receiving nation to the designated shipping point of
the consignee.
(c) There is hereby authorized to be appropriated to the President
for the fiscal year [1960] 1961 not to exceed [$2,300,000] $2,000,000
to carry out the purposes of this section.
(d) In addition, any fundsmade available under this Act may be
used. in amounts determined by the President, to pay ocean freight
charges on shipments of surplus agricultural commodities, including
commodities made available pursuant to any Act for the disposal
abroad of United States agricultural surpluses.
SEC. 411. ADMINISTRATIVE AND OTHER .EXPENSES.-(a) Whenever
possible, the expenses of administration of this Act shall be paid for
in the currency of the nation where the expense is incurred.
(b) There is hereby authorized to be appropriated to the Presi-
dent for the fiscal year [1960] 1961 not to exceed [$39,500,000]
$40,000,000 for necessary administrative expenses incident to carrying
out the provisions of this Act (other than chapter I and title II of
chapter II) and functions under the Agricultural Trade Development
and Assistance Act of 1954, as amended (7 U.S.C. 1691 and the fol-
lowing) performed by any agency or officer administering nonmilitary
assistance.
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'MUTUAL SECURITY ACT OF 1960 73
(c) There are authorized to be appropriated [to] for expenses of
the Department of State such amounts as may be necessary from
time to time for administrative expenses which are incurred for func-
tions of the Department under this Act or for normal functions of
the Department which relate to functions under this Act, and for
expenses of carrying out the objectives of the Mutual Defense Assist-
ance Control Act of 1951 (22 U.S.C. 1611) : Provided, That, in addi-
tion, funds made available for carrying out chapter I of this Act
shall be available for carrying out the objectives of the Mutual
Defense Assistance Control Act of 1951 in such amounts as the
President may direct.
(d) Funds made available for the purposes of this Act may be
used for compensation, allowances, and travel of personnel, including
Foreign Service personnel whose services are utilized primarily for
the purposes of this Act, and without regard to the provisions of any
other law, for printing and binding, and for expenditures outside [the
continental limits of] the United States for the procurement of supplies
and services and for other administrative and operating purposes
(other than compensation of personnel) without regard to such laws
and regulations governing the obligation and expenditure of Govern-
ment funds as may be necessary to accomplish the purposes of this
Act.
[SEC. 412. PRESIDENT'S SPECIAL EDUCATION AND TRAINING
FUND.-Of the funds appropriated pursuant to this Act for use
beginning in each of the fiscal years 1960 through 1964, $10,000,000
for each such year shall be available only as follows:
[(a) $5,000,000 shall be available until expended only for financing
studies, research, instruction, and other educational activities of citi-
zens of underdeveloped countries in educational institutions in the
United States, Puerto Rico, and the Virgin Islands. Such financing
may include payment for transportation, tuition, maintenance and
other expenses incident to scholastic activities. The President may
employ such funds to augment programs of this character authorized
by section 32 (b) (2) of the Surplus Property Act of 1944, as amended,
and by the United States Information and Educational Exchange Act
of 1948, as amended, and he may consolidate such portions of such
$5,000,000 as he may deem appropriate with appropriations made to
carry out these two Acts.
[(b) $5,000,000 shall be available until expended only for the
training of people of underdeveloped countries in skills which will
contribute to economic development. Such training shall be carried
out in accordance with the policies set forth in title III of chapter II,
relating to technical cooperation, and such $5,000,000 may be con-
solidated with appropriations made for carrying out title III of
chapter II.]
SEC. 413. ENCOURAGEMENT OF FREE ENTERPRISE AND PRIVATE
PARTICIPATION.-(a) The Congress recognizes the vital role of free
enterprise in achieving rising levels of production and standards of liv-
ing essential to the economic progress and defensive strength of the free
world. Accordingly, it is declared to be the policy of the United States
to encourage the efforts of other free nations to increase the flow of in-
ternational trade, to foster private initiative and competition, to dis-
courage monopolistic practices, to improve the technical efficiency of
their industry, agriculture and commerce, and to strengthen free labor
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74 MUTUAL SECURITY ACT OF .1960
unions; and to encourage the contribution of United States enterprise
toward economic strength of other free nations, through private trade
and investment abroad, private participation in the programs carried
out under this Act (including the use of private trade channels to the
maximum extent practicable in carrying out such programs), and ex-
change of ideas and technical information on the matters covered by
this section.
(b) In order to encourage and facilitate participation by private
enterprise to the maximum extent practicable in achieving any of the
purposes of this Act, the President-
(1) shall make arrangements to find and draw the attention of
private enterprise to opportunities for investment and develop-
ment in other free nations;
(2) shall accelerate a program of negotiating treaties for com-
merce and trade, including tax treaties, which shall include provi-
sions to encourage and facilitate the flow of private investment
to, and its equitable treatment in, nations participating in pro-
grams under this Act;
(3) shall, consistent with the security and best interests of the
United States, seek compliance by other countries or a dependent
area of any country with all treaties for commerce and trade and
taxes and shall take all reasonable measures under this Act or
other authority to secure compliance therewith and to assist
United States citizens in obtaining just compensation for losses
sustained by them or payments exacted from them as a result of
measures taken or imposed by any country or dependent ares
thereof in violation of any such treaty; and
(4) may make, through an agency responsible for administering
nonmilitary assistance under this Act, until June 30, 1967, tinder
rules and regulations prescribed by him, guaranties to any person
of investments in connection with projects, including expansion,
modernization, or development of existing enterprises, in any
nation with which the United States has agreed to institute the
guaranty program: Provided, That-
(A) such projects shall be approved by the President as
furthering the development of the economic resources and
productive capacities of economically underdeveloped areas
or, in the case of guaranties issued prior to January 1, 1960,
on the basis of applications submitted prior to July 1, 1959,
any of the purposes of this Act, and by the nation concerned;
(B) the guaranty to any person shall be limited to assuring
any or all of the following:
(i) the transfer into United States dollars of other
currencies, or credits in such currencies, received by such
person as earnings or profits from the approved project,
as repayment or return of the investment therein, in
whole or in part, or as compensation for the sale or dis-
position of all or any part thereof;
(ii) the compensation in United States dollars for loss
of all or any part of the investment in the approved proj-
ect which shall be found by the President to have been
lost to such person by reason of expropriation or con-
fiscation by action of the government of a foreign nation
or by reason of war;
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MUTUAL SECURITY ACT OE 1960 75
(C) when any payment is made to any person pursuant
to a guaranty as hereinbefore described, the currency, credits,
assets, or investment on account of which such payment is
made shall become the property of the United States Govern-
ment, and the United States Government shall be subrogated
to any right, title, claim or cause of action existing in con-
nection therewith;
(D) the guaranty to any person shall not exceed the
amount of dollars invested in the project by such person with
the approval of the President plus actual earnings or profits
on said project to the extent provided by such guaranty, and
shall be limited to a term not exceeding twenty years from
the date of issuance;
(E) it fee shall be charged in an amount not exceeding 1
per centum per annum of the amount of each guaranty under
clause (i) of subparagraph (B), and not exceeding 4 per
centum of the amount of each guaranty under clause (ii) of
such subparagraph, and all fees collected hereunder shall be
available for expenditure in discharge of liabilities under
guaranties made under this section until such time as all such
liabilities have been discharged or have expired, or until all
such fees have been expended in accordance with the pro-
visions of this section: Provided, That in the event the fee to
be charged for a type of guaranty is reduced, fees to be paid
under existing contracts for the same type of guaranty may
be similarly reduced.;
(F) the President is authorized to issue guaranties up to a
total face value of $1,000,000,000 exclusive of informational
media guaranties heretofore and hereafter issued pursuant
to section 1011 of the Act of January 27, 1948, as amended
(22 U.S.C. 1442), and section 111(b) (3) of the Economic
Cooperation Act of 1948, as amended (22 U.S.C. 1509(b)
(3)) : Provided, That any funds allocated to a guaranty and
remaining after all liability of the United States assumed in
connection therewith has been released, discharged, or other-
wise terminated, and funds realized after June 30, 1955, from
the sale of currencies or other assets acquired pursuant to
subparagraph (C), shall be available for allocation to other
guaranties, and the foregoing limitation shall be increased to
the extent that such funds become available. Any payments
made to discharge liabilities under guaranties issued under
this paragraph shallbe paid out of fees collected under sub-
paragraph (E) as long as such fees are available, and there-
after shall be paid out of funds realized from the sale of
currencies or other assets acquired pursuant to subparagraph
(C) and notes which have been issued under authority of
paragraph 111(c)(2) of the Economic Cooperation Act of
1948, as amended, and authorized to be issued under this
paragraph by the Director of the International Cooperation
Administration or such other officer as the President may
designate, when necessary to discharge liabilities under any
such guaranty: Provided, That all guaranties issued after
June 30, 1956, pursuant to this paragra~h shall be considered
~crthe purposes of sections 3679 (31 U.S.C. 665) and 3732 (41
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76 MUTUAL SECURITY ACT OF 1960
U.S.C. 11) of the Revised Statutes, as amended, as obliga-
tions only to the extent of the probable ultimate net cost to
the United States of such guaranties; and the President shall,
in the submission to the Congress of the reports required by
section 534 of this Act, include information on the operation
of this paragraph: Provided further, That at all times funds
shall be allocated to all outstanding guaranties issued prior
to July 1, 1956, exclusive of informational media guaranties
issued pursuant to section 1011 of the Act of January 27,
1948, as amended (22 U.S.C. 1442), and section 111(b)(3)
of the Economic Cooperation Act of 1948, as amended, equal
to the sum of the face value of said guaranties. For the pur-
pose of this paragraph the Director of the International Co-
operation Administration or such other officer as the Presi-
dent may designate is authorized to issue notes (in addition
to the notes heretofore issued. pursuant to paragraph
111(c) (2) of the Economic Cooperation Act of 1948; as
amended) in an amount not to exceed $37,500,000, and on
the same terms and conditions applicable to notes issued
pursuant to said paragraph 111(c) (2) ;
(G) the guaranty program authorized by this para-
graph shall;'be used to the maximum practicable extent and
shall be administered under broad criteria so as to facilitate
and increase the participation of private enterprise in further-
ing the development of the economic resources and produc-
tive capacities of economically underdeveloped areas or, in
the case of guaranties issued prior to January 1, 1960, on
the basis of applications submitted prior to July 1, 1959, any
of the purposes of this Act;
(H) as used in this paragraph--
(i) the term "person" means a citizen of the United
States or any corporation, partnership, or other associa-
tion created under the law of the United States or of any
State or Territory and substantially beneficially owned
by citizens of the United States, and
(ii) the term "investment" :includes any contribution of
capital goods, materials equipment, services, patents,
processes, or techniques 1 y any person in the form of (1)
a loan or loans to an approved project, (2) the purchase
of a share of ownership in any such project, (3) partici-
pation in royalties, earnings, or profits of any such proj-
ect, and (4) the furnishing of capital goods items and
related services pursuant to a contract providing for pay-
ment in whole or in part after the end of the fiscal year
in which the guaranty of such investment is made.
(c) Under the direction of the President, the Departments of
State and Commerce and such other agencies of the Government as the
President shall deem appropriate, in cooperation to the fullest extent
practicable with private enterprise concerned with international trade,
foreign investment, and business operations in foreign countries, shall
conduct annual studies to keep the data up to date of the ways and
means in which the role of the private sector of the national economy
can be more effectively utilized and protected in carrying out the
purposes of this Act, so as to promote the foreign policy of the United
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MUTUAL SECURITY ACT OF 1960 77
States, to stabilize and to expand its economy and to prevent adverse
effects, with special reference to areas of substantial labor surplus
and to the net position of the United States in its balance of trade
with the rest of the world. Such studies shall include specific recom-
mendations for such legislative and administrative action as may be
necessary to expand the role of private enterprise in advancing the
foreign policy objectives of the United States.
(d) Under the direction of the President, the Department of
State and such other agencies of the Government as the President
shall deem appropriate shall conduct a study of methods by which
the United States and other nations including those which are parties
to regional agreements for economic cooperation to which the United
States is a pasty, or any of them, might best together formulate and
effectuate programs of assistance to strengthen the economies of free
nations so as to advance the principal purposes of this Act, as stated
in section 2 thereof.
SEC. 414. MUNITIONS CONTROL.-(a) The President is authorized
to control, in furtherance of world peace and the security and foreign
policy of the United States, the export and import of arms, ammuni-
tion, and implements of war, including technical data relating thereto,
other than by a United States Government agency. The President is
authorized to designate those articles which shall be considered as
arms, ammunition, and implements of war, including technical data
relating thereto, for the purposes of this section.
(b) As prescribed in regulations issued under this section, every
person who engages in the business of manufacturing, exporting, or
importing any arms, ammunition, or implements of war, including
technical data relating thereto, designated by the President under sub-
section (a) shall register with the United States Government agency
charged with the administration of'this section, and, in addition, shall
pay a registration fee which shall be prescribed by such regulations.
Such regulations shall prohibit the return to the United States for
sale in the United States (other than for the Armed Forces of the
United States and its allies) of any military firearms or ammunition
of United States manufacture furnished to foreign governments by
the United States under this Act or any other foreign assistance pro-
gram of the United States, whether or not advanced in value or
improved in condition in a foreign country. This prohibition shall
not extend to similar firearms that have been so substantially trans-
formed as to become, in effect, articles of foreign manufacture.
(c) Any person who willfully violates any provision of this section
or any rule or regulation issued under this section, or who willfully,
in a registration or license application, makes any untrue statement
of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading,
shall upon conviction be fined not more than $25,000 or imprisoned
not more than two years, or both.
SEC. 415. ASSISTANCE TO INTERNATIONAL ORGANIZATIONS. -When-
ever it will assist in achieving purposes declared in this Act, the Presi-
dent is authorized to use funds available under sections 131 and 403
in order to furnish assistance, including by transfer of funds, directly
to the North Atlantic Treaty Organization and the Organization for
European Economic Cooperation, for a strategic stockpile of food-
stuffs and other supplies, or for other purposes.
53899-60--6
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SEC. 416. FACILITATION AND ENCOURAGEMENT or TRAVEL.-The
President, through such officer or commission as he may designate,
shall facilitate and encourage, without cost to the United States except
for administration expenses, the promotion and development of travel
by citizens of the United States to and within countries receiving as-
sistance under this Act and travel by citizens of such countries to the
United States. To this end, under the direction of the President, the
Departments of State and Commerce, the agency primarily responsible
for administering nonmilitary assistance under this Act and such
other agencies of the Government as the President shall deem appro-
priate, in cooperation to the fullest extent practicable with private
enterprise concerned with international travel, shall conduct a study
of barriers to international travel and ways and means of promoting,
developing, encouraging, and facilitating such travel in the mutual
interests of the United States and countries assisted under this Act.
SEC. 417. IRISH COUNTERPART.-Pursuant to section 115(b)(6) of
the Economic Cooperation Act of 1948, as amended, the disposition
within Ireland of the unencumbered balance, in the amount of approxi-
mately 6,000,000 Irish pounds, of the special account of Irish funds
established under article IV of the Economic Cooperation Agreement
between the United States of America and Ireland, dated June 28,
1948, for the purposes of-
(1) scholarship exchange between the United States and
Ireland;
(2) other programs and projects (including the establishment
of an Agricultural Institute) to improve and develop the agri-
cultural production and marketing potential of Ireland and to
increase the production and efficiency of Irish industry; and
(3) development programs and projects in aid of the foregoing
objectives, is hereby approved, as provided in the agreement be-
tween the Government of the United States of America and. the
Government of Ireland, dated June 17, 1954.
SEC. 419. ATOMS FOR PEACE.-(a) The President is hereby au-
thorized to furnish from funds made available pursuant to this sec-
tion, in addition to other funds available for such purposes, and on
such terms and conditions as he may specify, assistance designed to
promote the peaceful uses of atomic energy abroad. There is hereby
authorized to be appropriated to the President for the fiscal year
[1960] 1961 not to exceed [$6,500,000] $8,400,000 to carry out the
purposes of this section.
(b) The United States share of the cost of any research reactor
made available to another government u:ader this section shall not
exceed $350,000.
(c) In carrying out the purposes of this section, the appropriate
United States departments and agencies shall give full and continu
ous publicity through the press, radio, and all other available me-
diums, so as to inform the peoples of the participating countries
regarding the assistance, including its purpose, source, and character,
furnished by the United States. Such portions of any research re-
actor furnished under this section as may be appropriately die-
stamped or labeled as a product of the United States shall be so
stamped or labeled.
SEC. 420. MALARIA ERADICATION.--The Congress of the United
States, recognizing that the disease of malaria, because of its wide-
spread prevalence, debilitating effects, and heavy toll in human life,
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MUTUAL SECURITY ACT OF 1960 79
constitutes a major deterrent to the efforts of many peoples to develop
their economic resources and productive capacities and to improve
their living conditions, and further recognizing that it now appears
technically feasible to eradicate this disease, declares it to be the
policy of the United States and the purpose of this section to assist
other peoples in their efforts to eradicate malaria. The President
is hereby authorized to use funds made available under this Act
(other than chapter I and title II of chapter II) to furnish to such
nations, organizations, persons or other entities as he may determine,
and on such terms and conditions as he may specify, financial and
other assistance to carry out the purpose of this section: Provided,
That this section shall not affect the authority of the Development
Loan Fund to make loans for such purposes, so long as such loans
are made in accordance with the provisions of title II of chapter II.
SEC. 421. LOANS TO SMALL FARMERS.-It is the policy of the United
States and the purpose of this section to strengthen the economies of
underdeveloped nations, and in nations where the economy is essentially
rural or based on small villages, to provide assistance designed to improve
agricultural methods and techniques, to stimulate and encourage the
development of local programs of self-help and mutual cooperation, par-
ticularly through loans of foreign currencies to associations of operators
of small farms, formed for the purpose of joint action designed to increase
or diversify agricultural productivity. The maximum unpaid balance
of loans made to any association under this section may not exceed
$25,000 at any one time; and the aggregate unpaid balance of all loans
made under this section may not exceed $10,000,000 at any one time.
CHAPTER III-CONTINGENCY FUND
SEC. 451. PRESIDENT'S SPECIAL AUTHORITY AND CONTINGENCY
FUND.--(a) Of the funds made available for use under this Act,
not to exceed $150,000,000, in addition to the funds authorized
for use under this subsection by subsection (b) of this section, may
be used in any fiscal year, without regard to the requirements of this
Act or any other Act for which funds are authorized by this Act or any
Act appropriating funds for use under this Act, in furtherance of
any of the purposes of such Acts, when the President determines that
such use is important to the security of the United States. Not to
exceed $100,000,000 of the funds available under this subsection may
be expended for any selected persons who are residing in or escapees
from the Soviet Union, Poland, Czechoslovakia, Hungary, Rumania,
Bulgaria, Albania, Lithuania, Latvia, and Estonia or the Communist-
dominated or Communist-occupied areas of Germany, or any Com-
munist-dominated or Communist-occupied areas of Asia and any other
countries absorbed by the Soviet Union, either to form such persons
into elements of the military forces supporting the North Atlantic
Treaty Organization or for other purposes, when the President deter-
mines that such assistance will contribute to the defense of the North
Atlantic area or to the security of the United States. Certification by
the President that he has expended amounts under this Act not in
excess of $50,000,000, and that it is inadvisable to specify the nature
of such expenditures, shall be deemed a sufficient voucher for such
amounts. Not more than $30,000,000 of the funds available under
this subsection may be allocated to any one nation in any fiscal year
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80 112ITTUAL SECURITY ACT OF 1980
(b) There is hereby authorized to be appropriated to the Presi-
dent for the fiscal year [1960] 1961 not to exceed [$155,000,000]
$100,000,000 for assistance authorized by this Act, other than by title
II of chapter II, in accordance with the provisions of this Act appli-
cable to the furnishing of such assistance. $100,000,000 of the funds
authorized to be appropriated pursuant to this subsection for any
fiscal year may be used in such year in accordance with the provisions
of subsection (a) of this section.
(c) It is the purpose of this Act to advance the cause of freedom.
The Congress joins with the President of the United States in pro-
claiming the hope that the peoples who have been subjected to the
captivity of Communist despotism shall again enjoy the right of self-
determination within a framework which will sustain the peace; that
they shall again have the right to choose the form of government under
which they will live, and that sovereign rights of self-government shall
be restored to them all in accordance wit i the pledge of the Atlantic
Charter. Funds available under subsection (a) of this section may
be used for programs of information, relief, exchange of persons, edu-
cation, and resettlement, to encourage the hopes and aspirations of
peoples who have been enslaved by communism.
CHAPTER IV-GENERAL AND ADMINISTRATIVE PROVISIONS
SEC. 501. TRANSFERABILITY OF FUNDS.-Whenever the President
determines it to be necessary for the purposes of this Act, not to exceed
10 per centum of the funds made available pursuant to any provision
of this Act may be transferred to and consolidated with the funds
made available pursuant to any other provisions of this Act, and
may be used for any of the purposes for which such funds may be
used, except that the total in the provision for the benefit of which
the transfer is made shall not be increased by more than 20 per centum
of the amount made available for such provision pursuant to this
Act.
SEC. 502. USE OF FOREIGN CURRENCY.-(a) Notwithstanding sec-
tion 1415 of the Supplemental Appropriation Act, 1953, or any other
provision of law, proceeds of sales made under section 550 of the
Mutual Security Act of 1951, as amended, shall remain available
and shall be used for any purposes of this Act, giving particular
regard to the following purposes-
(1) for providing military assistance to nations or mutual
defense organizations eligible to receive assistance under this
Act;
(2) for purchase of goods or services in friendly nations;
(3) for loans, under applicable provisions of this Act, to in-
crease production of goods or services, including strategic ma-
terials, needed in any nation with which an agreement was
negotiated, or in other friendly nations, with the authority to use
currencies received in repayment for the purposes stated in this
section or for deposit to the general account of the Treasury of
the United States;
(4) for developing new markets on a mutually beneficial basis;
(5) for grants-in-aid to increase production for domestic needs
in friendly countries; and
(6) for purchasing materials for United States stockpiles.
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MUTUAL SECURITY ACT OF 1960 81
(b) Notwithstanding section 1415 of the Supplemental Appropria-
tion Act, 1953, or any other provision of law, local currencies owned
by the United States shall be made available to appropriate commit-
tees of the Congress engaged in carrying out their duties under section
136 of the Legislative Reorganization Act of 1946, as amended, and
to the Joint (7ommittee on Atomic Energy and the Joint Economic
Committee and the Select Committees on Small Business of the Senate
and House of Representatives for their local currency expenses:
Provided, That each member or employee of any such committee shall
make, to the chairman of such committee in accordance with regula-
tions prescribed by such committee, an itemized report showing the
amounts and dollar equivalent values of each such foreign currency
expended, together with the purposes of the expenditure, including
lodging, meals, transportation, and other purposes. Within the first
sixty days that Congress is in session in each calendar year, the chair-
man of each such committee shall consolidate the reports of each
member and employee of the committee and forward said consolidated
report showing the total itemized expenditures of the committee and
each subcommittee thereof during the preceding calendar year, to the
Committee on House Administration of the House of Representatives
(if the committee be a committee of the House of Representatives or
a joint committee whose funds are disbursed by the Clerk of the
House) or to the Committee on Appropriations of the Senate (if the
committee be a Senate committee or a joint committee whose funds are
disbursed by the Secretary of the Senate). Each such report sub-
mitted by each committee shall be published in the Congressional
Record within ten legislative days after receipt by the Committee
on House Administration of the House or the Committee on
Appropriations of the Senate.
SEC. 503. TERMINATION OF AssISTANCE.-If the President deter-
mines that the furnishing of assistance to any nation under any
provision of this Act-
(1) is no longer consistent with the national interest or security
or the foreign policy of the United States; or
(2) would no longer contribute effectively to the purposes for
which such assistance is furnished; or
(3) is no longer consistent with the obligations and responsi-
bilities of the United States under the Charter of the United
Nations,
he shall terminate all or part of any assistance furnished pursuant to
this Act. If the President determines that any nation which is re-
ceiving assistance under chapter I of this Act is not making its full
contribution to its own defense or to the defense of the area of which
it is a part, he shall terminate all or part of such assistance. Assist-
ance to any nation under any provision of this Act may, unless sooner
terminated by the President, be terminated by concurrent resolution.
Funds made available under this Act shall remain available for twelve
months from the date of termination under this section for the
necessary expenses of liquidating assistance programs.
(b) In any case in which the President determines that a nation
has hereafter nationalized or expropriated the property of any per-
son as defined in section 413(b) and has failed within six months of
such nationalization or expropriation to take steps determined by the
President to be appropriate to discharge its obligations under in-
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82 MutrUAL ISECURYT'Y' ACT Ole' 1000
ternational law toward such person, the President shall, unless he
determines it to be inconsistent with the national interest, suspend
assistance under this Act to such nation until he is satisfied that
appropriate steps are being taken.
(c) The President shall include in his recommendations to the
Congress for the fiscal year 1961 programs under this Act a specific
plan for each country receiving bilateral grant assistance in the cate-
gories of defense support or special assistance whereby, wherever
practicable, such grant assistance shall be progressively reduced and
terminated.
. Ste. 504. SMALL BUSINESS.-(a) Insofar as practicable and to
the maximum extent consistent with the accomplishment of the pur-
poses of this Act, the President shall assist American small business
to participate equitably in the furnishing of commodities and services
financed with funds authorized under chapter II of this Act-
(1) by causing to be made available to suppliers in the United
States and particularly to small independent enterprises, informa-
tion, as far in advance as possible, with respect to purchases pro-
posed to be financed with such funds.
(2) by causing to be made available to prospective purchasers
in the nations receiving assistance under this Act information as
to commodities and services produced by small independent enter=
prises in the United States and
(3) by providing for additional services to give small business
better opportunities to participate in the furnishing of commodi-
ties and services financed with such funds.
(b) There shall be an Office of Small Business, headed by a Special
Assistant for Small Business, in such United States Government
agency as the President may direct, to assist in carrying out the
provisions of subsection (a) of this section.
(c) The Secretary of Defense shall assure that there is made avail-
able to suppliers in the United States, and. particularly to small inde-
pendent enterprises, information with respect to purchases made by
the Department of Defense pursuant to chapter I, such information
to be furnished as far in advance as possible.
[(d) Of the funds appropriated pursuant to section 451(b) of this
Act, the President is authorized to utilize not to exceed $2,500,000
for the fiscal year 1960 to make available to foreign small business con-
cerns in underdeveloped countries, or to foreign government organiza-
tions established for the purpose of helping such concerns in under-
developed countries, on such terms and conditions as he may deter-
mine, machine tools, industrial equipment, and other equipment
owned by agencies of the United States Government.'
SEC. 505. LOAN ASSISTANCE AND SALES.-(a) Except as otherwise
specifically provided in this Act, assistance under this Act may be
furnished on a grant basis or on such terms, including cash, credit, or
other terms of repayment (including repayment in foreign curren-
cies or by transfer to the United States of materials required for
stockpiling or other purposes) as may be determined to be best suited
to the achievement of the purposes of this Act and shall emphasize
loans rather than grants wherever possible. Commodities, equipment,
and materials transferred to the United States as repayment may be
used for assistance authorized by this Act, other than title II of chapter
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MUTUAL SECURITY ACT OF 1960 83
II, in accordance with the provisions of this Act applicable to the
furnishing of such assistance. Whenever commodities, equipment,
materials, or services are sold for foreign currencies the President,
notwithstanding section 1415 of the Supplemental Appropriation Act,
1953, or any other provision of law, may use or enter into arrange-
ments with friendly nations or organizations of nations to use such
currencies for the purposes for which the funds providing the com-
modities, equipment, materials, or services which generated the
currencies were appropriated.
(b) Funds for the purpose of furnishing assistance on terms
of repayment may be allocated to the Export-Import Bank of
Washington, which may, notwithstanding the provisions of the
Export-Import Bank Act of 1945 (59 Stat. 526), as amended, make
and administer the credit on such terms. Credits made by the Export-
Import Bank of Washington with funds so allocated to it shall not
be considered in determining whether the Bank has outstanding at
any one time loans and guaranties to the extent of the limitation
imposed by section 7 of the Export-Import Bank Act of 1945 (59
Stat. 529), as amended. United States dollars received in repayment
of principal and payment of interest on any loan made under this
section shall be deposited in miscellaneous receipts of the Treasury.
Foreign currencies received in repayment of principal and payment of
interest on any such loan which are in excess of the requirements as
determined from time to time by the Secretary of State for purposes
authorized in section 32(b)(2) of the. Surplus Property Act of 1944,
as amended (50 App. U.S.C. 1641(b)), may be sold by the Secre-
tary of the Treasury to United States Government agencies for pay-
ment of their obligations abroad and the United States dollars received
as reimbursement shall also be deposited into miscellaneous receipts
of the Treasury. Foreign currencies so received which are in excess
of the requirements of the United States in the payment of its obliga-
tions abroad, as such requirements may be determined from time to
time by the President, shall be credited to and be available for the
authorized purposes of the Development Loan Fund in such amounts as
may be specified from time to time in appropriation Acts. Amounts
received in repayment of principal and interest on any credits made
under paragraph 111(c) (2) of the Economic Cooperation Act of
1948, as amended, shall be deposited into miscellaneous receipts of
the Treasury, except that, to the extent required for such purpose,
amounts received in repayment of principal and interest on any
credits made out of funds realized from the sale of notes heretofore
authorized to be issued for the purpose of financing assistance on a
credit basis under paragraph 111(c) (2) of the Economic Cooperation
Act of 1948, as amended, shall be deposited into the Treasury for
the purpose of the retirement of such notes.
SEC. 506.. PATENTS AND TECHNICAL INFORMATION.-(a) As used in
this section-
(1) the term "invention" means an invention or discovery cov-
ered by a patent issued by the United States; and
(2) the term "information" means information originated by
or peculiarly within the knowledge of the owner thereof and those
in privity with him, which is not available to the public and is
subject to protection as property under recognized legal principles.
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84 MUTUAL SECURITY ACT OF 1980
(b) Whenever, in connection with the furnishing of any assistance
in furtherance of the purposes of this Act--
(1) use within the United States, without authorization by the
owner, shall be made of an invention,, or
(2) damage to the owner shall result from the disclosure of in-
formation by reason of acts of the United States or its officers or
employees,
the exclusive remedy of the owner of such invention or information
shall be by suit against the United States in the Court of Claims or in
the District Court of the United States for the district in which such
owner is a resident for reasonable and entire compensation for un-
authorized use or disclosure. In any such suit the United States may
avail itself of any and all defenses, general or special, that might be
pleaded by any defendant in a like action.
(c) Before such suit against the United States has been instituted,
the head of the appropriate United States Government agency, which
has furnished any assistance in furtherance of the purposes of this
Act, is authorized and empowered to enter into an agreement with the
claimant, in full settlement and compromise of any claim against the
United States hereunder.
(d) The provisions of the last sentence of section 1498 of title 28
of the United States Code shall apply to inventions and information
covered by this section.
(e) Except as otherwise provided by law, no recovery shall be had
for any infringement of a patent cominitted more than six years prior
to the filing of the complaint or counterclaim for infringement in the
action, except that the period between the date of receipt by the Gov-
ernment of a written claim under subsection (c) above for compen-
sation for infringement of a patent and the date of mailing by the
Government of a notice to the claimant that his claim has been denied
shall not be counted as part of the six years, unless suit is brought be-
fore the last-mentioned date.
SEC. 507. AVAILABILITY OF FUNDS.-Except as otherwise provided
in this Act, funds shall be available to carry out the provisions of this
Act (other than sections 414 and 416) as authorized and appropriated
to the President each fiscal year.
SEC. 508. LIMITATION ON FUNDS FOR 'PROPAGANDA.-None of the
funds herein authorized to be appropriated nor any counterpart funds
shall be used to pay for personal services or printing, or for other ex-
penses of the dissemination within the United States of general propa-
ganda in support of the mutual security program, or to pay the travel
or other expenses outside the United States of any citizen or group of
citizens of the United States for the purpose of publicizing such pro-
gram within the United States.
SEC. 509. SHIPPING ON UNITED STATES VESSELS.-The ocean
transportation between foreign countries of commodities, materials,
and equipment procured out of local currency funds made available or
derived from funds made available under this Act or the Agricultural
Trade Development and Assistance Act of 1954, as amended (7 U.S.C.
1691 and the following), shall not be governed by the provisions of
section 901(b) of the Merchant Marine Act of 1936, or any other law
relating to the ocean transportation of commodities, materials, and
equipment on United States flag vessels. Sales of fresh fruit and
the products thereof under this Act shall be exempt from the require-
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MUTUAL SECURITY ACT. OF 1960 85
ments of the cargo preference laws (Public Resolution 17, Seventy-
third Congress, and section 901(b) of the Merchant Marine Act, 1936,
as amended).
SEC. 510. PURCHASE OF COMMODITIES.-NO funds made available
under title I of chapter II of this Act shall be used for the purchase
in bulk of any commodities at prices higher than the market price
prevailing in the United States at the time of purchase adjusted for
differences in the cost of transportation to destination, quality, and
terms of payment. A bulk purchase within the meaning of this sec-
tion does not include the purchase of raw cotton in bales. Funds
made available under title I or II of chapter II of this Act may be
used for the procurement of commodities outside the United States
unless the President determines that such procurement will result in
adverse effects upon the economy of the United States, with special
reference to any areas of labor surplus, or upon the industrial mobili-
zation base, or to the net position of the United States in its balance
of trade with the rest of the world, which outweigh the economic
advantages to the United States of less costly procurement abroad.
In providing for the procurement of any surplus agricultural com-
modity for transfer by grant under this Act to any recipient nation
in accordance with the requirements of such nation, the President
shall, insofar as practicable and where in furtherance of the purposes
of this Act, authorize the procurement of such surplus agricultural
commodity only within the United States except to the extent that
any such surplus agricultural commodity is not available in the United
States in sufficient quantities to supply the requirements of the nations
receiving assistance under this Act.
SEC. 511. RETENTION AND RETURN OF EQUIPMENT.-(a) No equip-
ment or materials may be transferred under chapter I or title I of
chapter II out of military stocks if the Secretary of Defense, after
consultation with the Joint Chiefs of Staff, determines that such
transfer would be detrimental to the national security of the United
States, or that such equipment or materials are needed by the reserve
components of the Armed Forces to meet their training requirements.
(b) Any equipment, materials, or commodities procured to carry
out this Act shall be retained by, or, upon reimbursement, transferred
to and for the use of, such United States Government agency as the
President may determine in lieu of being disposed of to a foreign
nation or international organization whenever in the judgment of the
President the best interests of the United States will be served thereby,
or whenever such retention is called for by concurrent resolution. Any
commodities so retained may be disposed of without regard to pro-
visions of law relating to the disposal of Government-owned property,
when necessary to prevent spoilage or wastage of such commodities
or to conserve the usefulness thereof. Funds realized from any such
disposal or transfer shall revert to the respective appropriation or
appropriations out of which funds were expended for the procure-
ment of such equipment, materials, or commodities or to appropria-
tions currently available for such procurement.
(c) The President shall make appropriate arrangements with each
nation receiving equipment or materials on a grant basis under
chapter I for the return to the United States (1) for salvage or scrap,
or (2) for such other disposition as the President shall deem to be in
the interest of mutual security, of any such equipment or materials
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86 MUTUAL SECURITY ACT OF 1080
which are no longer required for the purposes for which originally
made available.
SEC. 512. PENAL PROVISION.-Whoever offers or gives to anyone
who is or in the preceding two years has been an employee or officer
of the United States any commission, payment, or gift, in connection
with the procurement of equipment, materials, commodities, or serv-
ices under this Act in connection with which procurement said officer,
employee, former officer or former employee is or was employed or
performed duty or took any action during such employment, and
whoever, being or having been an employee or officer of the United
States in the preceding two years, solicits, accepts, or offers to accept
any commission, payment, or gift in connection with the procurement
of equipment, materials, commodities, or services under this Act in
connection with which procurement said officer, employee, former
officer or former employee is or was employed or performed duty or
took any action during such employment, shall upon conviction thereof
be subject to a fine not to exceed $10,000 or imprisonment for not to
exceed three years, or both: Provided, That this section shall not apply
to persons appointed pursuant to sections 308 or 530 (a) of this Act.
SEC. 513. NOTICE TO LEGISLATIVE COMMITTEES.-When any trans-
fer is made under section 501, or any other action is taken under this
Act which will result in furnishing assistance of a kind, for a pur-
pose, or to an area, substantially different from that included in the
presentation to the Congress during its consideration of this Act or
Acts appropriating funds pursuant to authorizations contained in this
Act or which will result in expenditures greater by 50 per centum or
more than the proposed expenditures included in such presentation for
the program concerned, the President or such officer as he may desig-
nate shall promptly notify the Committee on Foreign Relations and,
when military assistance is involved, the Committee on Armed Services
of the Senate, and the Speaker of the House of Representatives, stating
the justification for such changes. Notice shall also be given to the
Committee on Foreign Relations of the Senate and the Speaker of the
House of Representatives of any determination under the first sentence
of section 451 (except with respect to unvouchered funds) and under
the last clause of the second sentence of section 404, and copies of any
certification as to loyalty under section 531 shall be filed with them.
SEC. 514. INTERNATIONAL EDUCATIONAL EXCHANGE ACTIVITIES.-
Foreign currencies or credits owed to or owned by the United States,
where arising from this Act or otherwise, shall, upon a request from
the Secretary of State certifying that such funds are required for the
purpose of international educational exchange activities under pro-
grams authorized by section 32 (b) (2) of the Surplus Property Act
of 1944, as amended, be reserved by the Secretary of the Treasury
for sale to the Department of State for such activities on the basis of
the dollar value at the time of the reservation.
SEC. 515. AUTHORIZATION FOR GRANT OF CONTRACT AUTHORITY.-
Provisions in this Act authorizing the appropriation of funds shall
be construed to authorize the granting in any appropriation Act of
authority to enter into contracts, within. the amounts so authorized
to be appropriated, creating obligations in advance of appropriations.
SEC. 516. PROHIBITION AGAINST DEBT RETIREMENT.-NOne of the
funds made available under this Act nor any of the counterpart funds
generated as a result of assistance under this Act or any other Act
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MUTUAL SECURITY ACT OF 1960 87
shall be used to make payments on account of the principal or interest
on any debt of any foreign government or on any loan made to such
government by any other foreign government; nor shall any of these
funds be expended for any purpose for which funds have been with-
drawn by any recipient country to make payment on such debts:
Provided, That to the extent that funds have been borrowed by any
foreign government in order to make a deposit of counterpart and
such deposit is in excess of the amount that would be required to be
deposited pursuant to the formula prescribed by section 142(b) of
this Act, such counterpart may be used in such country for any agreed
purpose consistent with the provisions of this Act.
SEC. 517. COMPLETION OF PLANS AND COST ESTIMATES.-(a) After
June 30, 1958, no agreement or grant which constitutes an obligation
of the United States in excess of $100,000 under section 1311 of the
Supplemental Appropriation Act, 1955, shall be made for any assist-
ance authorized under title I, II, or III (except section 306) of chapter
II, or section 400(a)-
(1) if such agreement or grant requires substantive technical
or financial planning, until engineering, financial, and other plans
necessary to carry out such assistance, and a reasonably firm
estimate of the cost to the United States of providing such assist-
ance, have been completed; and
(2) if such agreement or grant requires legislative action within
the recipient country, unless such legislative action may reason-
ably be anticipated to be completed within one year from the
date the agreement or grant is made.
This section shall not apply to any assistance furnished for the sole
purpose of preparation of engineering, financial, and other plans. To
the maximum extent practicable, all contracts for construction outside
the United States made in connection with any agreement or grant
subject to this section, except any agreement for assistance authorized
under title II of chapter II, shall be made on a competitive basis.
(b) All nonmilitary flood control, reclamation, and other water and
related land resource programs or projects proposed for construction
under titles I, H, or III (except section 306) of chapter II, under section
400, or under section 451 of this Act, shall be examined by qualified
engineers, financed under this Act, in accordance with the general pro-
cedures prescribed in circular A-47 of the Bureau of the Budget, dated
December 31, 1952, for flood control, reclamation, and other water and
related land resource programs and projects proposed for construction
within the continental limits of the United States of America. In all
cases the benefits and costs shall be determined, and a copy of the deter-
mination shall be submitted to the Speaker of the House of Representatives
and the Foreign Relations Committee and the Appropriations Committee
of the Senate. No such program or project shall be undertaken on which
the benefits do not exceed the costs and which does not otherwise meet the
standards and criteria used in determining the feasibility of flood control,
reclamation, and other water and related land resource programs and
projects proposed for construction within the continental limits of the
United States of America as per circular A-47 of the Bureau of the
Budget, dated December 31, 1952.
SEC. 521. DELEGATION OF AUTHORITY BY THE PRESIDENT.-(a)
Except as provided in subsection (b) and section 413(b) (4), the Presi-
dent may exercise any power or authority conferred on him by this
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Act through such agency or officer of the United States as he shall
direct, and the head of such agency or such officer may from time to
time promulgate such rules and regulations as may be necessary and
proper to carry out functions under this Act and may delegate author-
ity to perform any of such functions to his subordinates acting under
his direction.
(b) After June 30, 1955, the President shall exercise the powers con-
ferred upon him under title III of chapter II of this Act through the
Secretary of State.
(c) The President shall continue to exercise the powers conferred on
him under title I of chapter II, relating to defense support, only
through the Secretary of State and his subordinates.
SEC. 522. ALLOCATION AND REIMBURSEMENT AMONG AGENCIES.-
(a) The President may allocate or transfer to any United States
Government agency any part of any funds available for carrying out
the purposes of this Act, including any advance to the United States
by any nation or international organization for the procurement of
equipment or materials or services. Such funds shall be available
for obligation and expenditure for the purposes for which authorized,
in accordance with authority granted in this Act or under authority
governing the activities of the Government agencies to which such
funds are allocated or transferred. Funds allocated to the Depart-
ment of Defense shall be governed as to reimbursement by the pro-
cedures of subsection (c) of this section.
(b) Any officer of the United States performing functions under
this Act may utilize the services and facilities of, or procure commodi-
ties from, any United States Government agency as the President shall
direct, or with the consent of the head of such agency, and funds
allocated pursuant to this subsection to any such agency may be
established in separate appropriation accounts on the books of the
Treasury. The Administrator of General Services is authorized to
maintain in a separate consolidated account, which shall be free from
fiscal year limitations, payments received by the General Services
Administration for administrative surcharges in connection with pro-
curement services performed by the General Services Administration
in furtherance of the purposes of this Act. Such payments shall be
in amounts mutually acceptable to the General Services Admin-
istration and the United States Government agency which finances
the procurement, and these amounts shall be available for adminis-
trative expenses incurred by the General Services Administration in
performing such procurement services.
(c) Reimbursement shall be made to any United States Government
agency, from funds available to carry out chapter I of this Act,
for any assistance furnished under that chapter from, by, or through
such agency. Such reimbursement shall be in an amount equal to the
value (as defined in section 545) of the equipment and materials,
services (other than salaries of members of the Armed Forces of the
United States), or other assistance furnished, plus expenses arising
from or incident to operations under that chapter. The amount of
any such reimbursement shall be credited as reimbursable receipts to
current applicable appropriations, funds, or accounts of such agency
and shall be available for, and under the authority applicable to, the
purposes for which such appropriations, funds, or accounts are author-
ized to be used, including the procurement of equipment and materials
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MUTUAL SECURITY ACT OF 1960 89
or services, required by such agency, in the same general category as
those furnished by it or authorized to be procured by it and expenses
arising from and incident to such procurement.
(d) In the case of any commodity, service, or facility procured from
any United States Government agency under any provision of this
Act other than chapter I, reimbursement or payment shall be made
to such agency from funds available to carry out such provision. Such
reimbursement or payment shall be at replacement cost, or, if required
by law, at actual cost, or at any other price authorized by law and
agreed to by the owning or disposal agency. The amount of any such
reimbursement or payment shall be credited to current applicable ap-
propriations, funds, or accounts from which there may be procured
replacements of similar commodities, services, or facilities, except that
where such appropriations, funds, or accounts are not reimbursable
except by reason of this subsection, and when the owing agency deter-
mines that such replacement is not necessary, any funds received in
payment therefor shall be covered into the Treasury as miscellaneous
receipts.
(e) In furnishing assistance under this Act and in making surplus
agricultural commodities available under section 402 accounts may
be established on the books of any United States Government agency
or, on terms and conditions approved by the Secretary of the Treas-
ury, in banking institutions in the United States, a?ainst which (i)
letters of commitment may be issued which shall constitute obligations
of the United States, and moneys due or to become due under such
letters of commitment shall be assignable under the Assignment of
Claims Act of 1940, as amended, and (ii) withdrawals may be made
by recipient nations or agencies, organizations or persons upon pres-
entation of contracts, invoices, or other appropriate documentation.
Expenditure of funds which have been made available through ac-
counts so established shall be accounted for on standard documenta-
tion required for expenditure of Government funds: Provided, That
such expenditures for commodities or services procured outside the
continental limits of the United States may be accounted for exclu-
sively on such certification as may be prescribed in regulations ap-
proved by the Comptroller General of the United States.
(f) Any appropriation made to carry out the provisions of this
Act may initially be charged, within the limits of available funds, to
finance expenses for which funds are available in other appropriations
made under this Act: Provided, That as of the end of the same fiscal
year such expenses shall be finally charged to applicable appropria-
tions with proper credit to the appropriations initially utilized for
financing purposes.
SEC. 523. COORDINTION WITH FOREIGN POLICY.-(a) Nothing con-
tained in this Act shall be construed to infringe upon the powers or
functions of the Secretary of State.
(b) The President shall prescribe appropriate procedures to assure
coordination among representatives of the United States Government
in each country, under the leadership of the Chief of the United States
Diplomatic Mission. The Chief of the Diplomatic Mission shall make
sure that recommendations of such representatives pertaining to mili-
tary assistance are coordinated with political and economic considera-
tions, and his comments shall accompany such recommendations if he
so desires.
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90 MUTUAL SECURITY ACT OF 1960
(c) Under the direction of the President, the Secretary of State
shall be responsible for the continuous supervision and general direc-
tion of the assistance programs authorized by this Act, including but
not limited to determining whether there shall be a military assistance
program for a country and the value thereof, to the end that such
programs are effectively integrated both at home and abroad and the
foreign policy of the United States is best served thereby.
SEC. 524. THE SECRETARY OF DEFENSE.-(a) In the case of aid
under chapter I of this Act, the Secretary of Defense shall have
primary responsibility for-
(1) the determination of military end-item requirements;
(2) the procurement of military equipment in a manner which
permits its integration with service programs;
(3) the supervision of end-item use by the recipient countries;
(4) the supervision of the training of foreign military personnel;
(5) the movement and delivery of military end-items; and
(6) within the Department of Defense, the performance of any
other functions with respect to the furnishing of military assist-
ance.
(b) The establishment of priorities in the procurement, delivery,
and allocation of military equipment shall be determined by the Sec-
retary of Defense.
SEC. 525. FOREIGN OPERATIONS ADMINISTRATION.-The President
may transfer to any agency or officer of the United States, and may
modify or abolish, any function, office, or entity of the Foreign Opera-
tions Administration (including any function, office or entity thereof
transferred to any other agency) or any officer or employee thereof,
and may transfer such personnel, property, records, and funds as may
be necessary incident thereto: Provided, That such authority con-
ferred by this sentence shall be exercised in accordance with applicable
laws and regulations relating to the Civil Service and Veterans'
Preference.
SEC. 526. MISSIONS AND STAFFS ABROAD.-The President may
maintain special missions or staffs abroad in such nations and for such
periods of time as may be necessary to carry out this Act. Such
special mission or staff shall be under the direction of a chief. The
chief and his deputy shall be appointed by the President and may,
notwithstanding any other law, be removed by the President at his
discretion. The chief shall be entitled to receive (1) in cases approved
by the President, thesame compensation and allowances as a chief of
mission, class 3, or a chief of mission, class 4, within the meaning of
the Foreign Service Act of 1946 (22 U.S.C. 801), or (2) compensation
and allowances in accordance with section 527(c) of this Act, as the
President shall determine to be appropriate. If a Foreign Service
Officer shall be appointed by the President to a position under this
section, the period of his service in such capacity shall be considered
as constituting an assignment for duty within the meaning of section
571 of the Foreign Service Act of 1946, as amended,. and such person
shall not, by virtue of his acceptance of such an assignment, lose his
status as a Foreign Service Officer.
SEC. 527. EMPLOYMENT OF PERSONNEL.- (a) Any United States
Government agency performing functions under this Act is authorized
to employ such personnel as the President deems necessary to carry out
the provisions andapurposeslof thi&jAct.
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MUTUAL SECURITY ACT OF 1960 91
(b) Of the personnel employed in the United States on programs
authorized by this Act, not to exceed [seventy] seventy-four may be
compensated without regard to the provisions of the Classification Act
of 1949, as amended, of whom not to exceed [forty-five] forty-nine
may be compensated at rates higher than those provided for grade 15
of the general schedule established by the Classification Act of 1949,
as amended, and of these, not to exceed fifteen may be compensated
at a rate in excess of the highest rate provided for grades of such gen-
eral schedule but not in excess of $19,000 per annum. Such positions
shall be in addition to those authorized by law to be filled by Presi-
dential appointment, and in addition to the number authorized by
section 505 of the Classification Act of 1949, as amended. One of the
offices established by section 1(d) of Reorganization Plan Numbered 7
of 1953 may, notwithstanding the provisions of any other law, be
compensated at a rate not in excess of $20,000 per annum.
(c) For the purpose of performing functions under this Act out-
side [the continental limits of] the United States, the [Director]
President may--
(1) employ or assign persons, or authorize the employment or
assignment of officers or employees of other United States Gov-
ernment agencies, who shall receive compensation at any of the
rates provided for the Foreign Service Reserve and Staff by
the Foreign Service Act of 1946, as amended (22 U.S.C. 801),
together with allowances and benefits established thereunder
including, in all cases, post differentials prescribed under section
443 of the Foreign Service Act; and persons so employed or as-
signed shall be entitled, except to the extent that the President
may specify otherwise in cases in which the period of the employ-
ment or assignment exceeds thirty months, to the same benefits as
are provided by section 528 of the Foreign Service Act for persons
appointed to the Foreign Service Reserve and, except for policy-
making officials the provisions of section 1005 of the Foreign
Service Act shall apply in the case of such persons; and
(2) utilize such authority, including authority to appoint and
assign personnel for the duration of operations under this Act,
contained in the Foreign Service Act of 1946, as amended (22
U.S.C. 801), as the President deems necessary to carry out
functions under this Act. Such provisions of the Foreign
Service Act as the President deems appropriate shall apply to
personnel appointed or assigned under this paragraph, includ-
ing, in all cases, the provisions of sections 443 and 528 of that
Act: Provided, however, That the President may by regulation
make exceptions to the application of section 528 in cases in
which the period of the appointment or assignment exceeds
thirty months: Provided further, That Foreign Service Reserve
Officers appointed or assigned pursuant to this paragraph shall
receive in-class nm*)rnotions in accordance with such regulations as
the President may prescribe.
(d) For the purpose of performing functions under this Act outside
[the continental limits of] the United States, the Secretary of State
may[, at the request of the Director,] appoint for the duration of
operations. under this Act alien clerks and employees in accordance
with applicable; provisions of the Foreign Service Act of 1946, as
amended (22 U.S.C. 801).
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(e) Notwithstanding the provisions of title 10, United States
Code, section 712, or any other law containing similar authority, of-
ficers and employees of the United States performing functions under
this Act shall not accept from any foreign nation any compensation
or other benefits. Arrangements may be made by the President with
such nations for reimbursement to the United States or other sharing
of the cost of performing such functions.
SEC. 528. DETAIL OF PERSONNEL TO FOREIGN GOVERNMENTS.-
(a) Whenever the President determines it to be consistent with and
in furtherance of the purposes of this Act, the head of any United
States Government agency is authorized to detail or assign any officer
or employee of his agency to any office or position to which no com-
pensation is attached with any foreign government or foreign govern-
ment agency: Provided, That such acceptance of office shall in no
case involve the taking of an oath of allegiance to another government.
(b) Any such officer or employee, while so assigned or detailed., shall
be considered, for the purpose of preserving his privileges, rights,
seniority, or other benefits as such, an officer or employee of the Gov-
ernment of the United States and of the Government agency from
which assigned or detailed, and he shall continue to receive compen-
sation, allowances, and benefits from funds available to that agency
or made available to that agency out of funds authorized under this
Act.
SEC. 529. DETAIL OF PERSONNEL TO INTERNATIONAL ORGANIZA-
TIONS.-(a) Whenever the President determines it to be consistent
with and in furtherance of the purposes of this Act, the head of any
United States Government agency is authorized to detail, assign or
otherwise make available to any international organization any officer
or employee of his agency to serve with or as a member of the interna-
tional staff of such organization, or to render any technical, scientific
or professional advice or service to or in cooperation with such
organization.
(b) Any such officer or employee, while so assigned or detailed, shall
be considered, for the purpose of preserving his allowances, privileges,
rights, seniority and other benefits as such, an officer or employee of
the Government of the United States and of the Government agency
from which detailed or assigned, and he shall continue to receive
compensation, allowances, and benefits from funds available to that
agency or made available to that agency out of funds authorized under
this Act. He may also receive under such regulations as the Presi-
dent may prescribe, representation allowances similar to those allowed
under section 901 of the Foreign Service Act of 1946, as amended (22
U.S.C. 801). The authorization of such allowances and other benefits
and the payment thereof out of any appropriations available therefor
shall be considered as meeting all the requirements of section 1765 of
the Revised Statutes.
(c) Details or assignments may be made under this section-
(1) without reimbursement to the United States by the inter-
national organization;
(2) upon agreement by the international organization to re-
imburse the United States for compensation, travel expenses,
and allowances, or any part thereof payable to such officer or
employee during the period of assignment or detail in accordance
with subsection (b) of this section; and such reimbursement shall
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MUTUAL SECURITY ACT OF 1960 93
be credited to the appropriation, fund, or account utilized for
paying such compensation, travel expenses or allowances, or to
the appropriation, fund, or account currently available for such
purposes;
(3) upon an advance of funds, property, or services to the
United States accepted with the approval of the President for
specified uses in furtherance of the purposes of this Act; and
funds so advanced may be established as a separate fund in the
Treasury of the United States, to be available for the specified
uses, and to be used for reimbursement of appropriations or direct
expenditure subject to the provisions of this Act, any unex-
pended balance of such account to be returned to the international
organization; or
(4) subject to the receipt by the United States of a credit to be
applied against the payment by the United States of its share of
the expenses of the international organization to which the officer
or employee is detailed, such credit to be based upon the compen-
sation, travel expenses and allowances, or any part thereof, pay-
able to such officer or employee during the period of assignment
or detail in accordance with subsection (b) of this section.
SEC. 530. EXPERTS AND CONSULTANTS OR ORGANIZATIONS THERE-
oF.-(a) Experts and consultants or organizations thereof, as author-
ized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a),
may be employed by any United States Government agency for the
performance of functions under this Act, and individuals so em-
ployed may be compensated at rates not in excess of $75 per diem,
and while away from their homes or regular places of business, they
may be paid actual travel expenses and per diem in lieu of subsistence
and other expenses at a rate not to exceed $10 or at the applicable rate
prescribed in the Standardized Government Travel Regulations, as
amended from time to time, whichever is higher, while so employed
within [the continental limits of] the United States and at the applica-
ble rate prescribed in the Standardized Government Travel Regula-
tions (Foreign Areas) while so employed outside the continental limits
of the United States: Provided, That contracts for such employment
with such organizations may be renewed annually.
(b) Persons of outstanding experience and ability may be employed
without compensation by any United States Government agency for
the performance of functions under this Act in accordance with the
provisions of section 710(b) of the Defense Production Act of 1950,
as amended (50 U.S.C. App. 2160), and regulations issued thereunder.
[SEC. 531. SECURITY CLEARANCE.-NO citizen or resident of the
United States may be employed, or if already employed, may be as-
signed to duties by the Director under this Act for a period to exceed
three months unless-
[(a) such individual has been investigated as to loyalty and
security by the Civil Service Commission, or by the Federal
Bureau of Investigation in the case of specific positions which have
been certified by the Director as being of a high degree of im-
portance or sensitivity or in case the Civil Service Commission
investigation develops data reflecting that the individual is of
questionable loyalty, and a report thereon has been made to the
Director, and until the Director has certified in writing (and filed
copies thereof with the Senate Committee on Foreign Relations
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94 MUTUAL SECURITY ACT OP 1960
and the House Committee on Foreign Affairs) that, after full
consideration of such report, he believes such individual is loyal
to the United States, its Constitution, and form of government,
and is not now and has never knowingly been a member of any
or anization advocating contrary views; or
(b) such individual has been investigated by a military intelli-
gence agency and the Secretary of Defense has certified in writing
that he believes such indiviual is loyal to the United States
and filed copies thereof with the Senate Committee on Foreign
Relations and the House Committee on Foreign Affairs.
[This section shall not apply in the case of any officer appointed by
the President by and with the advice and consent of the Senate, nor
shall it apply in the case of any person already employed under pro-
grams covered by this Act who has been previously investigated in
connection with such employment.]
SEC. 531. SECURITY CLEARANCE.-The standards and procedures
set forth in Executive Order Numbered 10150, as amended or supple-
mented, shall apply to the employment under this Act by any agency
administering nonmilitary assistance of any citizen or resident of the
United States.
SEC. 532. EXEMPTION OF PERSONNEL FROM CERTAIN FEDERAL
LAWS.-(a) Service of an individual as a member of the Board es-
tablished pursuant to section 308 of this Act or as an expert or con-
sultant under section 530(a) shall not be considered as service or em-
ployment bringing such individual within the provisions of title 18,
U.S.C., section 281, 283 or 284, or of section 190 of the Revised
Statutes (5 U.S.C. 99), or of any other Federallaw imposing restric-
tions, requirements, or penalties in relation to the employment of
persons, the performance of services, or the payment or receipt of
compensation in connection with any claim, proceeding, or matter in-
volving the United States, except insofar as such provisions of law
may prohibit any such individual from receiving compensation in
respect of any particular matter in which such individual was directly
involved in the performance of such service; nor shall such service be
considered as employment or holding of office or position bringing such
individual within the provisions of section 6 of the Act of May 22, 1920,
as amended (5 U.S.C. 715), section 212 of the Act of June 30, 1932, as
amended (5 U.S.C. 59a), or any other Federal law limiting the reem-
ployment of retired officers or employees or governing the simultaneous
receipt of compensation andretired pay or annuities. Contracts for
the employment of retired military personnel with specialized research
and development experience, not to exceed ton in number, as experts or
consultants under section 530(a), may be renewed annually, notwith-
standing section 15 of the Act of August 2, 1946 (5 U.S.C. 55a).
(b) Notwithstanding section 2 of the Act of July 31, 1894 (5
U.S.C. 62), which prohibits certain retired officers from holding
certain office, any retired officer of any of the services mentioned in
the Career Compensation Act of 1949 may hold any office or appoint-
ment under this Act or the Mutual Defense Assistance Control Act
of 1951, but the compensation of any such retired officer shall be
subject to the provisions of the Act of June 30, 1932 (5 U.S.C. 59a),
which does not permit retired pay to be added to the compensation
received as a civilian officer.
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MUTUAL SECURITY ACT OF 1960 95
SEC. 533. WAIVERS OF CERTAIN FEDERAL LAWS.-Whenever the
President determines it to be in furtherance of purposes declared in
this Act, the functions authorized under this Act may be performed
without regard to such provisions of law (other than the Renegotiation
Act of 1951) as amended) regulating the making, performance, amend-
ment, or modification of contracts and the expenditure of Government
funds as the President may specify.
SEC. 533A. INSPECTOR GENERAL AND COMPTROLLER.-(a) There is
hereby established in the Department of State an office to be known
as the "Office of the Inspector General and Comptroller", which shall
be headed by an officer designated as the "Inspector General and
Comptroller", whose salary shall be fixed at the annual rate of $19,000,
and who shall be appointed by the Secretary of State and be respon-
sible to an Under Secretary of State designated for such purpose by
the Secretary of State. In addition, there shall be a Deputy Inspector
General and Comptroller, whose salary shall not exceed the maximum
rate provided under the General Schedule of the Classification Act of
1949, as amended, and such other personnel as may be required to
carry out the functions vested in the Inspector General and Comp-
troller by or pursuant to this section.
(b) There are hereby transferred to the Inspector General and
Comptroller all functions, powers, and duties of the Office of Evalua-
tion of the International Cooperation Administration, and so much of
the functions, powers, and duties of the Office of Personnel Security
and Integrity as relate to investigations of improper activities in con-
nection with programs under the International Cooperation Adminis-
tration.
(c) The Inspector General and Comptroller shall have the following
duties, in addition to those duties transferred to him under subsection
(b) of this section:
(1) Establishing or reviewing and approving a system of finan-
cial controls over programs of assistance authorized by this Act
to insure compliance with applicable laws and regulations;
(2) Advising and consulting with the Secretary of Defense or
his delegate with respect to the controls, standards, and proced-
ures established or approved under this section insofar as such
controls, standards, and procedures relate to assistance furnished
under chapter I of this Act;
(3) Establishing or reviewing and approving policies and
standards providing for extensive internal audits of programs of
assistance authorized by this Act;
(4) Reviewing and approving internal audit programs under
this section, and coordinating such programs with the appropriate
officials of other Government departments in order to insure maxi-
mum audit coverage and to avoid duplication of effort;
(5) Reviewing audit findings and recommendations of oper-
ating agencies and the action taken thereon, and making recom-
mendations with respect thereto to the Under Secretary of State
and other appropriate officials;
(6) Conducting or requiring the conduct of such special7audits
as in his judgment may be required in individual cases, and of
inspections with respect to end-item use in foreign countries;
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(7) Establishing or reviewing and approving a system of
financial and. statistical reporting with respect to all programs of
assistance authorized by this Act;
(8) Advising the Under Secretary of State and other appro-
priate officials on fiscal and budgetary aspects of proposed pro-
grams of assistance authorized by this Act;
[(9) Designing the form and prescribing the financial and
statistical content of the annual program presentation to the
Congress;]
[(10)](9) Coordinating and cooperating with the General
Accounting Office in carrying out his duties, to the extent that
such duties are within areas of responsibility of the General
Accounting Office; and
[(11)](10) Carrying out such other duties as may be vested
in him by the Under Secretary of State.
(d) Expenses of the Office of the Inspector General and Comptroller
with respect to programs under this Act shall be charged to the appro-
priations made to carry out such programs: Provided, That all docu-
ments, papers, communications, audits, reviews, findings, recom-
mendations, reports, and other material which relate to the operation
or activities of the Office of Inspector General and Comptroller shall
be furnished to the General Accounting Office and to any committee
of the Congress, or any duly authorized subcommittee thereof, charged
with considering legislation or appropriation for, or expenditures of,
such Office, upon request of the General Accounting Office or such
committee or subcommittee as the case may be.
SEc. 534. REPORTS.-(a) The President, from time to time while
funds appropriated for the purpose of this Act continue to be avail-
able for obligation, shall transmit to the Congress reports covering
each [six months] fiscal year of operations, in furtherance of the pur-
poses of this Act, except information the disclosure of which he deems
incompatible with the security of the United States. Reports pro-
vided for under this section shall be transmitted to the Secretary of
the Senate or the Clerk of the House of Representatives, as the case
may be, if the Senate or the House of Representatives, as the case
may be, is not in session. Such reports shall include detailed infor-
mation on the implementation of sections 504, 202, 400, 416, 4:13(b),
and 418 of this Act.
(b) All documents, papers, communications, audits, reviews, find-
ings, recommendations, reports, and other material which relate to the
operation or activities of the International Cooperation Administra-
tion shall be furnished to the General Accounting Office and to any
committee of the Congress, or any duly authorized subcommittee
thereof, charged with considering legislation or appropriation for, or
expenditures of, such Administration, upon request of the General
Accounting Office or such committee or subcommittee as the case may
be.
SEC. 535. COOPERATION WITH NATIONS AND INTERNATIONAL OR-
GANIZATIONS.-(a) The President is authorized to request the cooper-
ation of or the use of the services and facilities of the United Nations,
its organs and specialized agencies, or other international organiza-
tions, in carrying out the purposes of this Act, and may make payments
by advancements or reimbursements, for such purposes, out of funds
made available for the purposes of this Act, as may be necessary
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therefor, to the extent that special compensation is usually required for
such services and facilities : Provided That nothing in this section
shall be construed to authorize the delegation to any international or
foreign organization or agency of authority to decide the method of
furnishing assistance under this Act to any country or the amount
thereof.
(b) Whenever the President determines it to be consistent with
and in furtherance of the purposes and within the limitations of
.this Act, United States Government agencies, on request of interna-
tional organizations, are authorized to furnish supplies, materials, and
services, and on request of free nations, are authorized to furnish
nonmilitary supplies, materials, and services, to such organizations
and nations on an advance of funds or reimbursement basis. Such
advances, or reimbursements which are received under this subsection
within one hundred and eighty days after the close of the fiscal year in
which such supplies, materials, and services are delivered, may be
credited to the current applicable appropriation or fund of the agency
concerned and shall be available for the purposes for which such
appropriations and funds are used.
SEC. 536. JOINT COMMISSION ON RURAL RECONSTRUCTION IN
CHINA.-The President is authorized to continue to participate in the
Joint Commission on Rural Reconstruction in China and to appoint
citizens of the United States to the Commission.
SEC. 537. PROVISIONS ON USES OF FUNDS.-(a) Appropriations for
the purposes of this Act (except for chapter I), allocations to any
United States Government agency, from other appropriations, for
functions directly related to the purposes of this Act, and funds made
available for other purposes to any agency administering nonmilitary
assistance, shall be available for-
(1) rents in the District of Columbia;
(2) expenses of attendance at meetings concerned with the pur-
poses of such appropriations, including (notwithstanding the pro-
visions of section 9 of the Act of March 4, 1909 (31 U.S.C. 673))
expenses in connection with meetings of persons whose employ-
ment is authorized by section 530 of this Act;
(3) [employment of aliens, by contract, for services abroad]
contracting with individuals for personal services abroad: Provided,
That such individuals shall not be regarded as employees of the
United States for the purpose of any law administered by the Civil
Service Commission;
(4) purchase, maintenance, operation, and hire of aircraft:
Provided, That aircraft for administrative purposes may be pur-
chased only as specifically provided for in an appropriation or
other Act;
(5) purchase and hire of passenger motor vehicles: Provided,
That, except as may otherwise be provided in an appropriation or
other Act, passenger motor vehicles abroad for administrative
purposes may be purchased for replacement only and such ve-
hicles may be exchanged or sold and replaced by an equal number
of such vehicles and the cost, including exchange allowance, of
each such replacement shall not exceed $3,500 in the case of an
automobile for the chief of any special mission or staff abroad
established under section 526 of this Act: Provided further, That
passenger motor vehicles may be purchased for use in the [con-
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tinental] United States only as may be specifically provided in
an appropriation or other Act;
(6) entertainment within the United States (not to exceed
$15,000 in any fiscal year except as may otherwise be provided in
an appropriation or other Act) ;
(7) exchange of funds without regard to section 3651 of the
Revised Statutes (31 U.S.C. 543), and loss by exchange;
(8) expenditures (not to exceed $50,000 in any fiscal year ex-
cept as may otherwise be provided in an appropriation or other
Act) of a confidential character other than entertainment: Pro-
vided, That a certificate of the amount of each such expenditure,
the nature of which it is considered inadvisable to specify, shall
be made by an officer administering nonmilitary assistance, or
such person as he may designate, and every such certificate shall
be deemed a sufficient voucher for the amount therein specified;
(9) insurance of official motor vehicles in foreign countries;
(10) rental or lease outside [the continental limits of] the
United States of offices, buildings, grounds, and living quarters
to house personnel; maintenance, furnishings, necessary repairs,
improvements, and alterations to properties owned or rented by
the United States Government abroad; and costs of fuel, water
and utilities for such properties;
(11) actual expenses of preparing and transporting to their
former homes in the United States or elsewhere, and of care and
disposition of, the remains of persons or member of the families
of persons who may die while such persons are away from their
homes participating in activities carried out with funds covered
by this subsection (a) ;
(12) purchase of uniforms;
(13) payment of per diem in lieu of subsistence to foreign
participants engaged in any program of furnishing technical in-
formation and assistance, while such participants are away from
their homes in countries other than the [continental] United
States, at rates not in excess of those prescribed by the Stand-
ardized Government Travel Regulations, notwithstanding any
other provision of law;
(14) expenses authorized by the :Foreign Service Act of 1946,
as amended (22 U.S.C. 801 and the following), not otherwise
provided for;
(15) ice and drinking water for use abroad;
(16) services of commissioned officers of the Public Health
Service and of the Coast and Geodetic Survey, and for the pur-
poses of providing such services the Public Health Service may
appoint not to exceed twenty officers in the regular corps to grades
above that of senior assistant, but not above that of director, as
otherwise authorized in accordance with section 711 of the Act of
July 1, 1944, as amended (42 U.S.C. 211a), and the Coast and
Geodetic Survey may appoint for such purposes not to exceed
twenty commissioned officers in addition to those otherwise
authorized;
(17) expenses in connection with travel of personnel outside
the [continental] United States, including travel expenses of
dependents (including expenses during necessary stopovers while
engaged in such travel) and transportation of personal effects,
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MUTUAL SECURITY ACT OF 1960 99
household goods, and automobiles of such personnel when any
part of such travel or transportation begins in one fiscal year pur-
suant to travel orders issued in that fiscal year, notwithstanding
the fact that such travel or transportation may not be completed
during that same fiscal year, and cost of transporting to and from
a place of storage, and the cost of storing, the furniture and house-
hold and personal effects of any employee (i) for not to exceed
three months after first arrival at a new post, (ii) when an
employee is assigned to a post to which he cannot take, or at which
he is unable to use, his furniture and household and personal
effects, (iii) when such storage would avoid the cost of trans-
porting such furniture and effects from one location to another,
(iv) when he is temporarily absent from his post under orders,
or (v) when through no fault of the employee, storage costs are
incurred on such furniture and effects (including automobiles)
in connection with authorized travel, under such regulations as
an officer administering nonmilitary assistance, or such person as
he may designate, may prescribe;
(18) payment of unusual expenses incident to the operation
and maintenance of official residences for chiefs of special mis-
sions or staffs serving in accordance with section 526 of this Act.
(b) United States Government agencies are authorized to pay the
costs of health and accident insurance for foreign participants in any
exchange-of-persons program or any program of furnishing technical
information and assistance administered by any such agency while
such participants are on route or absent from their homes for purposes
of participation in any such program.
(c) Notwithstanding the provisions of section 406(a) of Public
Law 85-241, not to exceed $27,750,000, of the funds available for
assistance in Korea under this Act may be used by the President to
construct or otherwise acquire essential living quarters, office space,
and supporting facilities in Korea for use by personnel carrying out
activities under this Act, and not to exceed [$2,750,000] $4,250,000
of funds made available for assistance in other countries under this
Act may be used (in addition to funds available for such use under
other authorities in this Act) for construction or acquisition of such
facilities for such purposes elsewhere.
(d) Funds made available under section 400(a) may be used
for expenses (other than those provided for under section 411(b) of
this Act) to assist in carrying out functions under the Agricultural
Trade Development and Assistance Act of 1954, as amended (7 U.S.C.
1691 and the following), delegated or assigned to any agency or officer
administering nonmilitary assistance.
(e) Funds available under this Act may be used to pay costs of
training United States citizen personnel employed or assigned pur-
suant to section 527(c)(2) of this Act (through interchange or other-
wise) at any State or local unit of government, public or private non-
profit institution, trade, labor, agricultural, or scientific association or
organization, or commercial firm; and the provisions of Public Law
918, Eighty-fourth Congress, may be used to carry out the foregoing
authority notwithstanding that interchange of personnel may not be
involved or that the training may not take place at the institutions
specified in that Act. Such training shall not be considered employ-
ment or holding of office under title 5, United States Code, section 62
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100
and any payments or contributions in connection therewith may, as
deemed appropriate by the head of the United States Government
agency authorizing such training, be made by private or public sources
and be accepted by any trainee, or may be accepted by and credited to
the current applicable appropriation of such agency: Provided, how-
ever, That any such payments to an employee in the nature of compen-
sation shall be in lieu of or in reduction of compensation received from
the Government of the United States.
(f) During the annual presentation to the Congress of requests
for authorizations and appropriations under this Act, there shall be
submitted a detailed report on the assistance to be furnished, country-
by-country, under title I of chapter II, and under section 400(a), of
this Act. The report with respect to each country shall contain a clear
and detailed explanation of the proposed level of aid for such country
and shall include a listing of all significant factors considered, and the
methods used, in determining the level of aid for such country; the
reason for including each such factor and an explanation of the man-
ner in which each of such factors is related to the specific dollax figure
which constitutes the proposed level of aid for each such country. In
addition, with respect to assistance proposed to be furnished under
title I of chapter II of this Act, the report shall contain a clear and
detailed explanation on a country-by-country basis of the determina-
tion of the particular level of forces to be supported by the proposed
request for authorization and appropriation for military assistance,
the factors considered and methods used in arriving at each country
determination, and where the level of forces supported by military
assistance differs from the total level of forces maintained in any such
country, an explanation, in detail, of the reason for the difference in
such level of forces.
SEc. 541. EFFECTIVE DATE.-This Act shall take effect on the date
of its enactment.
SEc. 542. STATUTES REPEALED.-(a) There are hereby repealed-
(1) an Act to provide for assistance to Greece and Turkey,
approved May 22, 1947, as amended.;
(2) the joint resolution to provide for relief assistance to the
people of countries devastated by war, approved May 31, 1947,
as amended;
(3) the Foreign Aid Act of 1947;
(4) the Foreign Assistance Act of 1948, as amended; including
the Economic Cooperation Act of 1948, as amended, the Inter-
national Children's Emergency Fund Assistance Act of 1948, as
amended, the Greek-Turkish Assistance Act of 1948, and the
China Aid Act of 1948, as amended;
(5) the Mutual Defense Assistance Act of 1949, as amended;
(6) the Foreign Economic Assistance Act of 1950, as amended;
including the Economic Cooperation Act of 1950, the China Area
Aid Act of 1950, as amended, the United Nations Palestine
Refugee Aid Act of 1950, and the Act for International Develop-
ment, as amended;
(7) the Far Eastern Economic Assistance Act of 1950, as
amended;
(8) the Yugoslav Emergency Relief Assistance Act of 1950;
(9) the Mutual Security Act of 1951, as amended;
(10) the Mutual Security Act of 1952;
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MUTUAL SECURITY ACT OF 19 6 0
(11) the Mutual Security Act of 1953;
(12) section 12 of the joint resolution of Congress approved
November 4, 1939 (54 Stat. 10; 22 U.S.C. 452) ;
(13) section 4 of the Act of March 3, 1925 (50 Stat. 887; 50
U.S.C. 165) ; and
(14) section 968 of title 18, United States Code.
(b) References in other Acts to the Acts listed in subsection (a)
shall hereafter be considered to be references to the appropriate
provisions of this Act.
(c) The repeal of the Acts listed in subsection (a) shall not be
deemed to affect amendments contained in such Acts to Acts not
named in subsection (a).
SEC. 543. SAVING PROVISIONS.-(a) Except as may be expressly
provided to the contrary in this Act, all determinations, authoriza-
tions, regulations, orders, contracts, agreements, and other actions
issued, undertaken or entered into under authority of any provision
of law repealed. by section 542 shall continue in full force and effect
until modified by appropriate authority.
(b) Where provisions of this Net establish conditions which must be
complied with before use may be made of authority contained in or
funds authorized by this Act, compliance with substantially similar
conditions under Acts named in section 542 shall be deemed to con-
stitute compliance with the conditions established by this Act.
(c) No person in the service or employment of the United States or
otherwise performing functions under an Act repealed by section 542
or under section 408 shall be required to be reappointed or reemployed
by reason of the entry into force of this Act, except that appointments
made pursuant to section 110(a)(2) of the Economic Cooperation Act
of 1948, as amended, shall be converted to appointments under section
527(c) of this Net.
(d) Funds appropriated pursuant to provisions of this Act repealed
subsequent to the time such funds are appropriated shall remain availa-
ble for their original purposes in accordance with the provisions of law
originally applicable thereto. References in any Act to provisions of
this Act repealed or stricken out by the Mutual Security Act of 1957
or subsequent Acts are hereby stricken out; and references in any
Act to provisions of this Act redesignated by the Mutual Security Act
of 1957 or subsequent Acts are hereby amended to refer to the new
designations.
SEC. 544. AMENDMENTS TO OTHER LAWS.-(a) Section 1 of Public
Law 283, Eighty-first Congress, is repealed. The Institute of Inter-
American Affairs, created pursuant to Public Law 369, Eightieth
Congress (22 U.S.C. 281), shall have succession until June 30, 1960,
and may make contracts for periods not to exceed five years: Provided,
That any contract extending beyond June 30, 1960, shall be made
subject to termination by the said Institute upon notice: And provided
further, That the said Institute shall, on and after July 1, 1954, be
subject to the applicable provisions of the Budget and Accounting Act,
1921, as amended (31 U.S.C. 1), in lieu of the provisions of the Gov-
ernment Corporation Control Act, as amended (31 U.S.C. 841).
SEC. 545. DEFINITIONS.-For the purposes of this Act-
(a) The term "commodity" includes any commodity, material,
article, supply or goods.
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102 MUTUAL SECURITY ACT OF 1980
(b) The term "surplus agricultural commodity" means any agricul-
tural commodity or product thereof, class, kind, type, or other speci-
fication thereof, produced in the United States either publicly or pri-
vately owned, which is in excess of domestic requirements, adequate
carryover, and anticipated exports for dollars, as determined by the
Secretary of Agriculture.
(c) The terms "equipment" and "materials" shall mean any arms,
ammunition, or implements of war, or any other type of material,
article, raw material, facility, tool, machine, supply or item that
would further the purpose of chapter I. or any component or part
thereof, used or required for use in connection therewith, or required in
or for the manufacture, production, processing, storage, transportation,
repair or rehabilitation of any equipment or materials, but shall not
include merchant vessels.
(d) The term "mobilization reserve" as used with respect to any
equipment or materials, means the quantity of such equipment or
materials determined by the Secretary of Defense under regulations pre-
scribed by the President to be required to support mobilization of the
Armed Forces of the United States in the event of war or national
emergency until such time as adequate additional quantities of such
equipment or materials can be procured.
(e) The term "excess" as used with respect to any equipment or
materials, means the quantity of such equipment or materials owned
by the United States which is in excess of the mobilization reserve of
such equipment or materials.
(f) The term "services" shall include any service, repair, training
of personnel, or technical or other assistance or information necessary
to effectuate the purposes of this Act.
(g) The term "Armed Forces of the United States" shall include
any component of the Army of the United States, of the United States
Navy, of the United States Marine Corps, of the Air Force of the
United States, of the United States Coast Guard, and the Reserve
components thereof.
(h) The term "value" means-
(1) with respect to any excess equipment or materials fur-
nished under chapter I the gross cost of repairing, rehabilitating,
or modifying such equipment or materials prior to being so
furnished;
(2) with respect to any nonexcess equipment or materials fur-
nished under chapter I which are taken from the mobilization
reserve (other than equipment or materials referred to in para-
graph (3) of this subsection), the actual or the projected (com-
puted as accurately as practicable) cost of procuring for the
mobilization reserve an equal quantity of such equipment or
materials or an equivalent quantity of equipment or materials
of the same general type but deemed to be more desirable for
inclusion in the mobilization reserve than the equipment or
materials furnished;
(3) with respect to any nonexcess equipment or materials fur-
nished under chapter I which are taken from the mobilization
reserve but with respect to which the Secretary of Defense has
certified that it is not necessary fully to replace such equipment
or materials in the mobilization reserve, the gross cost to the
United States of such equipment and materials or its replacement
cost, whichever the Secretary of Defense may specify; and
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MUTUAL SECURITY ACT OIi' 1060 103
(4) with respect to any equipment or materials furnished under
chapter I which are procured for the purpose of being so fur-
nished, the gross cost to the United States of such equipment and
materials.
In determining the gross cost incurred by any agency in repairing,
rehabilitating or modifying any excess equipment furnished under
chapter I, all parts, accessories, or other materials used in the course
of repair, rehabilitation, or modification shall be priced in accordance
with the current standard pricing policies of such agency. For the
purpose of this subsection, the gross cost of any equipment or materials
taken from the mobilization reserve means either the actual gross cost
to the United States of that particular equipment or materials or the
estimated gross cost to the United States of that particular equipment
or materials obtained by multiplying the number of units of such par-
ticular equipment or materials by the average gross cost of each unit
of that equipment and materials owned by the furnishing agency.
Notwithstanding the foregoing provisions of this subsection (h) and
for the purpose of establishing a more equitable pricing system for
transactions between the military departments and the Mutual De-
fense Assistance Program, the Secretary of Defense shall prescribe at
the earliest practicable date, through appropriate pricing regulations
of uniform applicability, that the term "value" (except in the case of
excess equipment of materials) shall mean-
(1) the price of equipment or materials obtaining for similar
transactions between the Armed Forces of the United States; or
(2) where there are no similar transactions within the meaning
of paragraph (1), the gross cost to the United States adjusted as
appropriate for condition and market value.
(i) The term "United States Government agency" means any de-
partment, agency, board, wholly or partly owned corporation, or in-
strumentality, commission, or establishment of the United States
Government.
(j) The terra "agency administering nonmilitary assistance" shall
refer to the Development Loan Fund and any agency to which
authorities and functions under title I, title III, or title IV of chapter
II or under chapter III of this Act are delegated or assigned pursuant
to authority contained in sections 521 and 525 of this Act.
(k) The term "officer administering nonmilitary assistance" shall
refer to the Board of Directors of the Development Loan Fund and
any officer to whom authorities and functions under title I, title III,
or title IV of chapter II or under chapter III of this Act are delegated
or assigned pursuant to authority contained in sections 521 and 525
of this Act.
SEC. 546. CONSTRUCTION.-(a) If any provisions of this Act or
the application of any provision to any circumstances or persons shall
be held invalid, the validity of the remainder of the Act and appli-
cability of such provision to other circumstances or persons shall not
be affected thereby.
(b) Nothing in this Act shall alter, amend, revoke, repeal, or other-
wise affect the provisions of the Atomic Energy Act of 1954, as
amended (42 U.S.C. 2011).
(c) Nothing in this Act is intended nor shall it be construed as an
expressed or implied commitment to provide any specific assistance,
whether of funds, commodities, or services, to any nation or nations,
or to any international organization.
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104 MUTUAL SECURITY ACT OF 1960
SEC. 548. UNEXPENDED BALANCES. -Ullexpended balances of funds
made available under authority of this Act are hereby authorized to be
continued available for the general purposes for which appropriated,
and may be consolidated with appropriations made available begin-
ning in fiscal year 1957 for the same general purposes under the au-
thority of this Act.
SEC. 550. INFORMATION POLICY.-The President shall, in the re-
ports required by section 534, or in response to requests from Members
of the Congress or inquiries from the public, make public all informa-
tion concerning the mutual security program not deemed by him to be
incompatible with the security of the United States.
SEC. 551. LIMITATION ON THE USE OF THE PRESIDENT'S SPECIAL
AUTHORITY. -The authority contained in sections 403, 451, and 501 of
this Act shall not be used to augment appropriations made pursuant to
sections 103(b), 408, 411(b), and 411(c) or used otherwise to finance
activities which normally would be financed from appropriations for
administrative expenses.
SEC. 552. ASSISTANCE To CUBA.-No assistance shall be furnished
under this Act to Cuba after the date of enactment of the Mutual Security
Act of 1960 unless the President determines that such assistance is in
the national and hemispheric interest of the United States.
Title II of the Agricultural Trade Development and Assistance Act of
1954 as Amended
AN ACT To increase the consumption of United States agricultural commodities
in foreign countries, to improve the foreign relations of the United States
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Agricultural Trade Development and Assistance Act
of 1954".
TITLE II-FAMINE RELIEF AND OTHER ASSISTANCE
SEC. 201. In order to enable the President to furnish emergency
assistance on behalf of the people of the United States to friendly
peoples in meeting famine or other urgent or extraordinary relief
requirements, the Commodity Credit Corporation shall make available
to the President out of its stocks such surplus agricultural commodi-
ties (as defined in section 106 of title I) as he may request, for trans-
fer (1) to any nation friendly to the United States in order to meet
famine or other urgent or extraordinary relief requirements of such
nation, and (2) to friendly but needy populations without regard to
the friendliness of their government.
SEC. 202. [The] In order to facilitate the utilization of surplus
agricultural commodities in meeting the requirements of needy peoples,
and in order to promote economic development in underdeveloped areas
in addition to that which can be accomplished under title I of this Act,
the President may authorize the transfer on a grant basis of surplus
agricultural commodities from Commodity Credit Corporation stocks
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MUTUAL SECURITY ACT OF 1960 105
to assist programs undertaken with friendly governments or through
voluntary relief agencies: Provided, That the President shall take
reasonable precaution that such transfers will not displace or interfere
with sales which might otherwise be made.
SEC. 203. Not more than $300,000,000 (including the Corporation's
investment in such commodities) plus any amount by which transfers
made in the preceding calendar year have called or will call for
appropriations to reimburse the Commodity Credit Corporation in
amounts less than could have been expended during such preceding
year under this title as in effect during such preceding year shall be
expended in any calendar year during the period January 1, 1960, and
ending December 31, 1961, for all such transfers and for other costs
authorized by this title. The President may make such transfers
through such agencies including intergovernmental organizations, in
such manner, and upon such terms and conditions as he deems appro-
priate; he shall make use of the facilities of voluntary relief agencies
to the extent practicable. Such transfers may include delivery f.o.b.
vessels in United States ports and, upon a determination by the Presi-
dent that it is necessary to accomplish the purposes of this title or of
section 416 of the Agricultural Act of 1949, as amended, ocean freight
charges from United States ports to designated ports of entry abroad
may be paid from funds available to carry out this title on commodities
transferred pursuant hereto or donated under said section 416, and
charges for general average contributions arising out of the ocean transport
of commodities transferred pursuant hereto may be paid from such funds.
Funds required for ocean freight costs authorized under this title may
be transferred by the Commodity Credit Corporation to such other
Federal agency as may be designated by the President.
SEC. 204. No programs of assistance shall be undertaken under
the authority of this title after December 31, 1961.
Chapter V of the Mutual Security Act of 1959
AN ACT To amend further the Mutual Security Act of 1954, as amended, and
for other purposes.
.Be it enacted by the Senate and the House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Mutual Security Act of 1959."
CHAPTER V- INTERNATIONAL COOPERATION IN HEALTH; COLOMBO
PLAN COUNCIL FOR TECIINICAL COOPERATION
INTERNATIONAL COOPERATION IN HEALTH
SEC. 501. (a) The Congress of the United States recognizes that large
areas of the world are being ravaged by diseases and other health de-
ficiencies which are causing widespread suffering, debility, and death,
.and are seriously deterring the efforts of peoples in such areas to
develop their resources and productive capacities and to improve their
living conditions. The Congress also recognizes that international
efforts are needed to assist such peoples in bringing diseases and other
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106 MUTUAL SECURITY ACT OF 1960
health deficiencies under control, in preventing their spread or re-
appearance, and in eliminating their basic causes. Accordingly, the
Congress affirms that it is the policy of the United States to accelerate
its efforts to encourage andsupport international cooperation in pro-
grams directed toward the conquest of diseases and other health de-
ficiencies.
[(b) In order to carry out the purposes of subsection (a) of this sec-
tion and in order to plan 1oically for an orderly expansion of United
States support to international health activities, the President is
authorized to undertake, in cooperation directly with other govern-
ments, or indirectly through utilizing the resources and services of
the United Nations and the Organization of American States or any
of their specialized agencies, programs and projects of research, stud-
ies, field surveys, trials, and demonstrations to determine the feasi-
bility of future intensive programs for reduction, control, or eradica-
tion of disease problems of international importance. Of the funds
appropriated pursuant to section. 451(b) of the Mutual Security Act
of 1954, as amended, the sum of $2,000,000 shall be available to carry
out the purposes of this section.]
COLOMBO PLAN COUNCIL FOR TECHNICAL COOPERATION
SEC. 502. To enable the United States to maintain membership in
the Colombo Plan Council for Technical Cooperation, there is hereby
authorized to be appropriated from time to time to the Department of
State such sums as may be necessary for the payment by the United
States of its share of the expenses of the Colombo Plan Council for
Technical Cooperation.
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SUPPLEMENTAL VIEWS OF CONGRESSMAN ALVIN M.
BENTLEY ON FOREIGN AID BILL
I opposed reporting the Mutual Security Act of 1960, H.R. 11510,
out of the Foreign Affairs Committee at this time since I feel strongly
that the entire program is overdue for a complete review and reap-
praisal. Such action has not been taken by the Foreign Affairs
Committee during its current hearings on this legislation.
In order to accomplish this, I introduced H.R. 10084 on February 2,
1960, which contained the basic mutual security legislation, the 1954
act with subsequent amendments up to and including the authorizing
legislation passed last year.
When the markup of the present legislation commenced, I offered
my bill as a substitute. This substitute was rejected by a committee
vote and, therefore, I opposed reporting out the present bill at this time.
If a recommittal motion is offered to send the present bill, H.R.
11510, back to committee for further study and review, I will vote for
it. If this motion is defeated, however, I expect to vote for passage
of the present bill. This represents a reversal of the position I have
taken in previous years, but I do admit that the mutual security pro-
gram has greatly improved in recent years, especially in the trend
from grants to loans for purposes of economic aid. I also feel that there
has been substantial improvement in the administration of the pro-
gram, a step for which the Foreign Affairs Committee deserves much
credit.
This does not mean that I am completely satisfied with the present
program, apart from the urgent necessity for its thorough review. I
am deeply concerned over certain aspects of the military assistance,
especially its programs in countries whose armed forces would reason-
ably be expected to contribute little or nothing to the defense of the
free world in the event of an all-out war. Undoubtedly, there exists
a certain amount of justification for such nations to have limited
forces for reasons of internal security, but in many instances the
country programs go far beyond such criteria. I feel strongly that
much more emphasis should be placed on economic aid in those par-
ticular areas for the purpose of assisting the people of those countries
to improve their economies and raise their standard of living. I think
that such steps would make them more immune to Communist
penetration than the topheavy military programs nowbeing undertaken.
The vast amounts of local or "soft" currencies which the mutual
security and other programs are creating throughout the world is like-
wise a cause for real concern. There are certain countries where our
holdings of such currencies are far in excess of the absorptive capacities
of the countries themselves and can only result in creating inflationary
pressures. Indeed, there are certain holdings of local currencies of
such size that they could not possibly be spent in the foreseeable
future. This has been due in part to the fact that there are a variety
of programs which create these currencies, many of which are not
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108 MUTUAL SECURITY ACT OF 1960
under the control of the Foreign Affairs Committee. I feel there
should be much more centralization of direction in this respect, both on
the executive and on the legislative level.
The so-called foreign-aid program seems now to have become a
permanent part of our foreign policy, regardless of the political admin-
istration in power. While registering my concern over certain
aspects of the program, as stated above, and while insisting upon the
necessity for more constant review and reappraisal than the program
has received from the Foreign Aff airs Committee, I nevertheless accept
the fact that the program is here to stay, possibly for an indefinite
period of time. My opposition to the program in the past has often
been assumed to be opposition to the entire concept of foreign aid,
which was never the case. I, therefore, announce my support of the
present program even if my efforts to require its further study and
review are unsuccessful. In any event, the committee has shown its
agreement with my position by promising to undertake such a study
early in the coming year. I happen personally to believe, however,
that such a study should not be delayed that long merely because of
the time element in the present congressional session.
One final word. By agreeing to open-end authorizations for mili-
tary assistance and the Development Loan Fund as was done in the
Mutual Security Act of 1959, I feel that the Congress has abdicated a
great deal of its responsibility in this field. I, therefore, expect to
offer an amendment which would terminate this authorization for
military assistance since I feel strongly that no blank checks should
be given to the Executive in this or indeed in any other program of
comparable size. The Foreign Affairs Committee is expected to set
policy for the Congress in this field and it cannot possibly do so with-
out undertaking annually the closest scrutiny of the operational de-
tails as well as the overall trend of mutual security legislation. I
sincerely trust that the committee will undertake to expand its own
staff to a number sufficient to do the job that the Congress and, indeed,
the entire country expects of it.
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MINORITY VIEWS OF MR. PILCHER, MRS. CHURCH, AND
MR. ADAIR ON H.R. 11510
For some years, as earnest participants on the committee consider-
ing the Mutual Security Act, we have felt compelled to be realistic
and honest critics, not of what is sought to be done but of the inade-
quate planning and poor administration of the program. Despite
efforts this year to make some improvements in this basic legislation,
we can see no indication that the actual planning and administration
of the program will be radically changed. As in previous years, we
who find this present bill unsatisfactory again assert that we believe
in mutual security, We do not believe, however, that the present
measure, H.R. 11510, adequately meets the challenge to provide such
mutual security. It does not present the new imaginative program
which is so necessary to further the efforts of the United States to
build peace and progress in this troubled world.
Despite conclusive evidence that, due to obvious uncorrected
weaknesses, the program has failed to achieve the anticipated results
toward the establishment of security in the free world, H.R. 11510,
as reported out by the Committee on Foreign Affairs, authorizes an
appropriation of $1,318,400,000, a reduction of $136,500 from the
Executive request. In addition, there are continuing authorizations,
agreed to by the committee last year, for military assistance, the
Development Loan Fund, and other smaller items, in the amount of
$2,720,100,000. In other words, the total amount proposed to be
appropriated for fiscal year 1961 is $4,038,500,000. Furthermore,
under Public Law 480, additional funds will be made available to the
mutual security program.
Last fall a study mission comprised of members of the Committee
on Foreign Affairs completed a 40,000-mile tour to study the impact
of U.S. foreign aid programs in the areas around the world. The
chairman of this minority report was also chairman of the study
mission. Another signer of the minority report accompanied him.
In its report the study mission pointed up the reality and justice of
our former criticisms. The final conclusions of the report had this
to say about foreign aid:
The study mission is convinced that a realistic review and
reappraisal of our aid program is immediately necessary,
and that greater supervision must be given to its operations.
However noble the purpose or well advised the goal, the
quality and success of performance remain an essential cri-
terion of success. We have pointed out in this report specific
cases of poor programing and excessive spending. There is
indication in more than one instance that, as suggested by
83899-80--8.
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110 MUTUAL SECURITY ACT OF 1980
the Comptroller General in 1959, the field operations have
actually been hampered by an excess rather than a paucity
of funds. A far more vigorous effort, moreover, must be
made to correct conditions and weaknesses that are known
to exist and that have been pointed out again and again.
There is some indication that blame for such weaknesses
should be placed as much, if not snore, on the planners in
Washington than on those in the field. In any event, there
is ample justification for our insistence that there be a
complete revision of programs and operations.
In fact, there is justification for insistence on a broader
vision and a more imaginative approach. Such approach
should aim to produce in the peoples" of the world greater
and more successful self-reliance and. stable political institu-
tions under which the people in each country could live in
freedom and dignity with full enjoyment of economic progress
under democratic institutions.
What is desperately needed in this world to build sound
bodies and sound minds is an adequate food supply and
elementary education. In generations to come, grandiose
dams and multi-million-dollar fertilizer plants might bring
ultimate benefit, but we express again our fear of the incon-
sistent and strikingly dangerous gap between such grandiose
projects at the top and the millions of human beings still
starving, still untaught, who have neither the stamina to
undertake nor the capacity to understand self-government.
Without such understanding and capacity there is little
chance for orderly progress. Such a course only adds to
economic dislocation and confusion. Premature advance
toward industrialization not only seriously strains the present
capacity of countries but is bound to produce an insecure
economic base. We would urge, therefore, that primary
attention be given to food production and the teaching of at
least elementary knowledge.
Since the end of World War II, the United States has spent
well over 80 billions of dollars in aid to the nations of the
world. The program has assisted in the effort of keeping
them free and improving their economic position. In recent
years changing conditions in the United States and in the
world require reappraisal and revision of the program.
The struggle to maintain freedom and encourage economic
development involves the future of all free nations and,
therefore, must be regarded by them as a Joint responsibility.
The financial condition of the United States makes an
expenditure each year of $3 to $4 billion an extremely
difficult burden to carry. Such an effort can be justified
only if the programs and obligations succeed in achieving
their objectives. The American citizen today is paying
more peacetime taxes than ever before. Interest on the
public debt is taking approximately one-twelfth of all taxes
collected. The American dollar, once the strongest and
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MUTUAL SECURITY ACT OF 1960 111
most sought after currency in the world, is selling at a dis-
count in some countries (e.g., Canada, Switzerland, Belgium).
Our gross national debt is approximately $292 billion.
Those nations which the United States helped to rehabili-
tate after World War II, and which are now financially strong,
should make every effort to assist, both militarily and eco-
nomically, in strengthening the less developed countries.
The United States should no longer carry so large a share of
the military and economic assistance to the other free nations
of the world.
Furthermore, since 1947, the United States has so given
to other countries its technical "know-how" and the dollars
to develop it, that its own formerly unchallenged economic
supremacy of the free world is under successful attack.
The United. States faces stronger economic competition than
ever before-a competition that can have an immeasurable
effect not only on our trade but on our industrial prosperity
and the high living standards of our workers. Every pos-
sible wise step must be taken to protect our own position in
world trade as well as the stability of the American dollar.
These facts, in addition to the findings of the study mis-
sion, underlie our insistence for an immediate detailed
examination and careful review and revision of programs
and operations.
In particular, the study mission comes back impressed by
obvious evidence that ultimate failure is inherent in the
program unless we can somehow develop plans and opera-
tions that will reach down to the people themselves of each
country.
Paul G. Hoffman, in his pamphlet, "One Hundred Countries, One
and One-Quarter Billion People," succinctly states the problems con-
fronting underdeveloped countries:
The underdeveloped countries need high-level manpower
just as urgently as they need capital. Indeed, unless these
countries are able to develop the required strategic human
resources they cannot effectively absorb capital. But human
resources of the less-developed nations have been shame-
fully neglected. Only a very small percentage of the people
who live in these countries have ever had an opportunity to
acquire an education and only a few have ever had positions
of responsibility. There is a huge need for training of all
types from on-the-job training of artisans to training in
more complex technological and management sciences.
Of all the resources required for economic development,
high-talent manpower requires the longest "lead-time" for
its creation. Dams, power stations, textile factories, and
steel mills can be constructed in a few years, but it takes 10
to 15 years to develop managers, engineers, and the adminis-
tration to operate them. The existence of such manpower,
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112 MUTUAL SECURITY ACT' OF 1960
however, is essential if the countries are to achieve self-sus-
taining growth.
Thus, while it is imperative that these countries survey
their natural resources and draw up programs spelling out
priorities for the strategic investment of capital in their de-
velopment, so must they draw up sonic kind of a "high-level
manpower budget" for the next 10 or even 20 years. This
should be an integral part of their development plan.
Eugene R. Black, President of the International Bank for Recon-
struction and Development, in a speech made at Oxford University,
England, on March 3, 1960, stated:
We think that in administering economic aid quality is
more important than quantity; even. the most enthusiastic
supporters of economic aid recognize that the outside world
cannot provide more than a small margin of the resources
needed; the really crucial economic and human resources
must come from within. Therefore, it is only realistic, we
think, to try to use economic aid primarily to promote proper
standards in the art of managing a country's resources. * * *
This present legislation in no sense gives the true picture of what is
available for mutual security. Attention is directed to the following
figures showing mutual security funds by program and amount avail-
able for expenditure for fiscal year 1960, which were inserted in the
Congressional Record of March 31, 1960, by Hon. Otto E. Passman,
chairman of the Subcommittee on Foreign Operations of the House
Appropriations Committee:
Mutual security funds by program and amount (available for expenditure (fiscal 1960))
Total available for
1. Military assistance: expenditure
Unexpended, June 30, 1959_________________________ $2,
547,
998,
755
New funds, fiscal 1960----------------------------- 1,
331,
2,17,
000
Sale military material, fiscal 1960-------------------
30,
200,
000
2. Defense support:
Unexpended, June 30, 1959_________________________
787,
500,
953
New funds, fiscal 1960_____________________________
695,
000,
000
Sale military material, fiscal 1960___________________
500,
000
3. Development Loan Fund:
Unexpended, June 30, 1959_________________________
782,
010,
480
New funds, fiscal 1960_____________________________
550,
000,
000
Loan repayments, fiscal year 1960-------------------
15,
700,
000
4. Development assistance, unexpended, June 30, 1959._
97,
768,
490
5. Special assistance:
Unexpended, June 30, 1959_________________________
173,
389,
255
New funds, fiscal 1960 _______________________
245,
000,
000
Estimated reimbursement, fiscal 1960----------------
100,
000
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MUTUAL SECURITY ACT OF 1980 113
Mutual security funds by program and amount (available for expenditure) fiscal 1960))
-Continued
Total axailable for
expenditure
6. President's Asian fund, unexpended, June 30, 1959--------
$85,846,438
7. President's contingency fund:
Unexpended, June 30, 1959_________________________
139, 789, 149
New funds, fiscal 1960_____________________________ -
123, 753, 000
8. Technical cooperation, bilateral:
Unexpended, June 30, 1959_________________________
158, 717, 287
New funds, fiscal 1960_____________________________
150,000,000
Estimated reimbursement, fiscal 1960. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
700000
Total..-----------------------------------------
309,417,287
9. Technical cooperation, U.N.:
Unexpended, June 30, 1959 --------------------------
8,292,101
New funds, fiscal 1960_____________________________
30,000,000
Estimated reimbursement, fiscal 1960________________
--------------
10. Technical cooperation, Organization of American States:
Unexpended, June 30, 1959 -------------------------
1,307,960
New funds, fiscal 1960_____________________________
1,200,000
11. Joint control, unexpended, June 30, 1959_________________
472, 167
12. Atoms for peace:
Unexpended, June 30, 1959_________________________
9,280,648
New funds, fiscal 1960_____________________________
1,500,000
Total-.-----------------------------------------
10,780,648
13. North Atlantic Treaty Organization, unexpended, June 30,
1959-----------------------------------------------
1,088,558
14. Intergovernment Committee for European Migration:
Unexpended, June 30, 1959_________________________
10, 829, 222
New funds, fiscal 1960_____________________________
7,371,000
Total -------------------------------------------
18,200,222
15. U.N. Refugee Fund:
Unexpended, June 30, 1959_________________________
1,200,000
New funds, fiscal 1960_____________________________
1,100,000
16. Escapee program:
Unexpended, June 30, 1959_________________________
6,887,757
New funds, fiscal 1960_____________________________
4,632,000
17. U.N. Children's Fund:
Unexpended, June 30, 1959_________________________
8,925,635
New funds, fiscal 1960_____________________________
12, 000, 000
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114 MUTUAL SECURITY ACT OF 1960
Mutual security funds by program and amount. (available for expenditure (fiscal 1960))
-Continued
18. U.N. Relief and Works Agency:
Total available for
expenditure
Unexpended, June 30, 1959_________________________
$8,956,957
New funds, fiscal 1960 -----------------------------
25, 000, 000
19. Ocean freight:
Unexpended, June 30, 1959_________________________
1,662,992
New funds, fiscal 1960_____________________________
1,
91.0,
000
20. Control Act, unexpended, June 30, 1959_________________
119,
101
21. Administrative expenses, ICA:
Unexpended, June 30, 1959------------------------- -
4,
956,
497
New funds, fiscal 1960_____________________________
38,
000,
000
Estimated reimbursement, fiscal 1960________________
800,
000
Total------------------------------------------
43,756,497
22. Administrative expenses, State:
Unexpended, June 30, 1959-------------------------
New funds, fiscal 1960_____________________________
708,341
8,100,000
Grand total____________________________________
8,111,
521,
750
RECAPITULATION
Unexpended funds, June 30, 1959___________________________
4, 837,
708,
750
New funds, appropriated, fiscal 1960 ------------------------
3, 225,
813,
000
New funds, other, fiscal 1960_______________________________
48,
000,
000
INADEQUATE PLANNING AND POOR ADMINISTRATION
Since the end of World War II the United States has spent more
than $80 billion to assist nations in remaining free and in improving
their economic conditions. Newly independent nations seek to build
prestige by building huge dams, steel mills, and super highways before
there is need for such grandiose projects. As a result the Inter-
national Cooperation Administration has acceded to too many re-
quests for such programs and there have been too many projects
begun without proper planning, determination of need, or benefits to
be derived. Too often the people at the grassroots do not derive any
immediate benefits from these grandiose projects-but continue to
live in poverty and hunger under circumstances which certainly are
not conducive to economic well being or the development of demo-
cratic processes. Too much emphasis has been placed on meeting
the personal desires of the political leaders of the recipient govern-
ments and too little emphasis on the needs of the little people who,
after all, determine the potential and the future of each country.
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MCJTUAt. SECUiIT1 ACT Or 1960 115
There is a true need for technical assistance in all of the under-
developed nations, but such assistance should be given on the basis of
a smaller number of better selected projects. A study mission, of
which two of the signers of this minority report were members, found
more than 600 projects in being in one country and more ready to
be started before completion of the existing projects. The criticism
that a multiplicity of projects has been undertaken is justified by
the appended compilation showing aid to and projects in countries
which the study mission visited (pp. 119 to 172).
In too many instances inadequate planning has resulted in the
undertaking of impractical and unsuitable projects in underdeveloped
nations which have led to excessive spending and waste of U.S. funds.
We cite the following examples in support of these charges: A high-
way program in Vietnam on which the costs have skyrocketed from
$18 million to $85 million, and may exceed $100 million before its
completion; a fertilizer plant in Taiwan, started with foreign aid
money and estimated to cost approximately $34 million, which is
nonoperable because some of the equipment does not meet the spec-
ifications for the desired operations, and on which the Taiwanese
Government has instituted proceedings against the manufacturer for
contractual noncompliance; radio towers installed in Saigon which
have never been put in operation because their utility is undetermined
and their location in doubt.
As a further illustration, it seems worth while at this point to go
into the problem of the Saigon water program in detail, and quote
from the previously mentioned subcommittee report.
* * * Everyone agrees Saigon badly needs a new water
system, but plans have bogged down in a heated dispute
between two schools of thought. On one side is the Inter-
national Water Corp. of Pittsburgh which believes in deep
wells. It has done business in Saigon for 30 years and has
drilled most of the city's wells. on the other side is the
Hydro-Technique Corp. of New York which believes in
dams and pipelines.
Our foreign aid authorities gave the Hydro-Technique
Corp. a $200,000 contract for a survey 2 years ago. Hydro-
Technique came up with a report favoring a dam and filtra-
tion plant on Dang Nai River near Bien Hoa, 18 miles north
of Saigon. From this plant a 72-inch pipeline would lead
to Saigon. The International Water Corp. made several
surveys, all of which showed again that deep wells are quite
adequate. What is more, the International Water Corp.
said they would be much cheaper and provide water much
sooner. The Hydro-Technique pipeline project is estimated
to cost $19..5 million to be put in by the United States. The
;international claims it can give Saigon all the water it needs
indefinitely for $12 to $14 million. The Vietnamese seem'to
favor the dam and pipeline system, but the military of both
Vietnam and the.United States have raised the question of
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116 MUTUAL SECURITY ACT OF 1 0
security. It was at Bien Iioa that two American military
advisers recently were killed when Red terrorists tossed a
grenade into a movie audience.
It is pointed out that the 18-mile above-ground pipeline
could be sabotaged and the already hard-pressed Vietnamese
Armed Forces probably would have to furnish daily patrols,
as well as guards for the river plant.
In November 1959 the Development Loan Fund approved
a $19.5 million loan for the water system and called for
another survey. Who gets the contract for this survey and
what it will cost, we do not know.
The most urgent need in many of the underdeveloped countries is
the employment of manpower, which is one of their greatest economic
resources. There is intense need for development of the agricultural
regions and the implementation of small industries so that this exces-
sive supply of manpower may be put to productive use, instead of
the multimillion-dollar projects carried out by contract with large
business firms only interested in making a profit, with little or no
regard for the utilization of local manpower.
LOSS OF CONGRESSIONAL CONTROL
We regret that each year there is further shrinkage in the degree
of control exercised over the program by the Congress. Progressive
loss of control of funds inevitably leads to loss of administrative
control. In the face of our repeated criticisms over the years of the
administrative deficiencies in the foreign aid program, the executive
branch this year requested an appropriation of $4,175 million for
mutual security. During fiscal year 1959 total U.S. mutual security
expenditures were $3,898 million. Despite the fact that we are being
asked to continue to pour vast sums of money into the program, this
request for funds in fiscal year 1961 makes no suggestion for strength-
ening congressional control over the programing and expenditure of
funds. Nor is any recognition seemingly given to the fact that many
of the projects do not have economic justification, let alone a defense
requirement.
It is true that the bill for this year contains no authorization for
military assistance. The mutual security law was changed last year
so as to provide that for fiscal years 1961 and 1962 such sums as
might be necessary could be appropriated for military assistance.
This is an open-end authorization. There is no possible way to
indicate just how much will actually be spent for the military under
the unlimited amount authorized. We definitely feel that such
authorization further weakens the control of the Congress over the
funds and over the program.
In our judgment, the Congress made a serious mistake when it
changed the pattern of congressional action as regards the military
aid programs which previously had prevailed for nearly 10 years. It
is urgent that we return to the original procedure whereby military
assistance funds were annually authorized and annually appropriated.
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MUTUAL SECURITY ACT OF 1960 117
BUREAUCRACY IN MUTUAL SECURITY PROGRAMS
The foreign aid program is administered by an increasingly large
number of personnel without any noticeable increase in efficiency.
This has led to the creation of an entrenched, self-perpetuating bureauc-
racy, still growing in size, power, and inefficiency. In this regard, the
figures speak for themselves. In December 1948, a total of 2,858 per-
sons were employed in the economic aid program. Today there are
more than 42,000 personnel employed in the administration of the
mutual security program.
INADEQUACY OF INSPECTION
The Office of Inspector General and Comptroller was created in last
year's mutual security legislation to undertake the required actions to
correct a program warped with waste and inefficiency. It was hoped
that the creation of such an office would bring to the program a fresh
review through impartial inspection by competent personnel whose
judgment would not be prejudiced through long-time association with
the practices and operations. under consideration. It was brought out
in the hearings on the program this year that personnel who have
worked with the International Cooperation Administration in various
capacities throughout the years are now being employed in this new
Office of Inspector General-Comptroller. We find no personal fault
with those administering the Office of Inspector General-Comptroller
but we do feel. that the decision to place the inspection of the program
in the hands of those who have been intimately associated with its
development was a wrong decision.
DANGERS IN THE DEVELOPMENT LOAN FUND
The Development Loan Fund continues to be an adjunct of the
foreign-aid program for the making of loans rather than grants. When
the Development Loan Fund was created, many of us were given the
impression that the making of loans to underdeveloped countries for
economic development would result in a reduction of economic grant
assistance. There has been no appreciable reduction in the use of
economic grant assistance funds.
Testimony received during the hearings indicates that money in the
fund has been earmarked for certain countries without having received
from those countries specifications and plans for particular economic
projects. As a result of this unorthodox and inefficient procedure,
many countries with worthy projects have been denied the assistance
that they require because of the lack of funds. Until sound methods
arelutilized, the Development Loan Fund cannot possibly achieve
maximum success.
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118 MUTUAL SECURITY ACT OF 1900
NEED FOR REVIEW AND REVISION OF MUTUAL SECURITY PROGRAM
In prior years we have expressed our strong conviction that a
realistic and objective review of the mutual security program and the
legislation by which it is implemented should be immediately under-
taken. Although annual revision of the act has been made, the basic
legislation has not been thoroughly considered or rewritten since 1954.
We are hopeful that the entire mutual security legislation will be
reviewed by the committee in the next session of Congress.
Again this year we urge a thorough study, a reappraisal, and a
redefining of foreign policies and methods. What is needed is a deeper
understanding of the fundamental problems, better programing, and
more efficient administration. To continue to vote large appropri-
ations for the mutual security program is not enough. To refuse to
face the facts and in the very name of mutual security and freedom
fail to demand adequate remedy for current deficiencies would be a
negation of our congressional responsibility.
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AID TO AND COMPILATION OF PROJECTS UNDERTAKEN SINCE 1951 IN COUNTRIES VISITED BY
STUDY MISSION
JAPAN
Total economic and military aid through fiscal year 1959
[In thousands of dollars]
Economic (since beginning of ICA and predecessor programs)---------------
---------------------------- $16,253
Military (programed since 1950) -------------------------------------------------------------------- 711,557
Project
No.
Project title and description
Location
Function
Cost,
cumulative
through
Sseal year
1959
Accomplishments
29-006
Japan Productivity Center____________
The purpose of this project is to assist the
Tokyo ----------------
Technical cooperation.
Thousands
$3,337
Over 1,000 participants, representing a cross section
Japanese increase their industrial productivity
of Japanese industry, have been brought to the
and thereby facilitate the expansion of essential
United States, and with the cooperation of Amer-
r
exports upon which Japan depends in order to
meet the requirements of a growing population
loan industry they have obse
ved and learned
modern U.S. methods and techni ues. U.S. con-
q
.
An important secondary objective is to strengthen
Japan's
free enterprise system. These purposes
sultants in the fields of
nroduc on-
and labor management, d con-
d
ars
have visited
and ac
are being achieved by introducing modern con-
ducted seminars which
ed well over
hich
have se attracted
er
cepts in management, production, distribution
techniques, and labor-management relations
70,000 persons.
I. 3li years, the Japan Productivity Center has
.
The Japan Productivity Center is the most
trained a staff of 120 persons and established 7
important ICA project in Japan, and accounts
for a large portion of ICA assistance to Japan.
Th
JP
regional centers in key Japanese cities.
While it is difficult to assess quantitatively the
results
it is generally conceded that the
od
cti
e
C was established in 1955, and has been
designated by the Japanese Government as the
,
pr
u
v-
ity program has played an important role in Japan's
coordinating agency for promoting productivity
throughout Japan.
economic progress since 1955.
The success of the productivity program in Japan
has stimulated great interest on the part of other
Asian nations and inspired the holding of the Asian
Round Table Productivity Conference in March
1959, which was attended by representatives of 14
Asian nations.
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Project
No.
Project title and description
Location
Function
cost,
cumulative
8tshrroou h
1959
Thousands
11-025
Hokkaido University affiliation---------------------------------------------------------------------------
This project finances an affiliation between the University of Hokkaido and the University of
Hokkaido-------------
Technical cooperation-
$569
Massachusetts designed to promote agricultural research, effective utilization of uplands fror crops, and
livestock production in northern Japan. This is done by sending consultants from the University of
Massachusetts to Hokkaido and by sending Hokkaido faculty members to Massachusetts for training
13-018
in specialized agricultural fields.
Grassland development demonstration--------_-_ ---------------------------------------------------
Tokyo, etc------------
-----do----------------
This project encourages the development of grasslands for livestock feed by furnishing demonstration
grass and legume seed. This is a basic step toward increasing livestock production and thereby raising
the present low protein consumption level of the Japanese people. The Ministry of Agriculture imple-
ments the program through prefectural livestock production associations.
do
---------
-----do----------------
644
19-017
Agriculture productivity teams----------------------------------------------------------------------------
This project provides technical assistance to Japanese agencies in order to further the development of
-------
-----
agricultural resources and related industries and services, particularly upland agriculture and livestock
production. This is done by sending participants to the United States for observational study and
inservice training and by bringing U.S. consultants to Japan.
Tokyo----------------
-----do----------------
776
27-009
Waseda University affiliation-------------------------------------------- ---------------------------------
This project finances an affiliation between Waseda University and the University of Michigan de-
signed to improve the level of industrial engineering and management and market research techniques.
This is done by sending Waseda faculty members to the United States for training and by sending
Michigan faculty members to Japan to a_ jst Waseda University in these fields.
--
--
do
-----do----------------
89
27-023
Keio-Harvard business administration---------------------------------------------------------------------
This project provides for the training of Keio University senior faculty members at Harvard University
-----------
-
-----
and the sending of Harvard consultants to Keio University to help establish an effective graduate school
of business at Keio University, in order to meet the needs of Japanese industry.
-----
do
---do---------------
-
37-016
Japan Aviation Bureau------------------------------------------------------------------------------
Civil This project is i?oject is assisting the Japan Civil Aviation Bureau establish standardized aeronautical facilities
-----------
-----
-
and services required for domestic and international air transportation. This is being done by providing
specialists and by training Japanese technicians in the United States.
S
technical advisory services of U
5
43-020
.
.
Japan Trade Unions---------------------------------------------------------------------------------------
This project provides for the sending of labor participants to the United States for study and observa-
-----do----------------
-----do----------------
91
tion of the basic functions, activities, and philosophy of the U.S. trade union movement, and also the
bringing of U. S. trade union consultants to Japan to provide technical guidance to Japanese trade unions.
do
136
98-010
Peaceful uses of atomic energy -_?-------- ------------------------------?------------- ------------------
This project provides for the sending of Japanese participants to the United States for observational
-----do----------------
----------------
-----
study and training in the peaceful uses of atomic energy.
I.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Total economic and military aid through fiscal year 1959
[In thousands of dollars]
Economic (since beginning of ICA and predecessor programs)---------------------------------------- $1,410,709
Military (programed since 1950) ----------------------------------------------------------------- 1,291,947
Project
lkw0.
Project title and description
Location
Function
Cost,
cumulative
through
fiscal year
1959
Accomplishments
22-257
Thermal plant construction-------------------------
Tangin-Ri Samehok
Defense support -------
Thousands
$28, 000
Increased power generation by 100,000 k lowatts,
which doubled Korea's power generation capacity.
Construction of 3 steam electric powerplants
and comprehensive training program for operator
Masan.
Has provided needed power for industrial expan-
23-323
personnel
Rehabilitation of Hwachon hydroelectric plant
Hwachon-------------
----- do-----------------
9,000
sion.
Strengthening of the dam which controls the North
Expansion of generating capacity from
Han River
and dam.
Repair of war damage and expansion of gener-
.
10,000 to 81,000 kilowatts to provide power for in-
23-459
ating capacity.
---------------------------
-
Pesticide plant
-
Inchon----------------
-----do-----------------
275
dustrial expansion.
Plant now producing about 100 metric tons of chemi
(Snbproj-
-------
-
-
Rehabilitation and reconstruction of buildings
cals and pesticides per month. Plant now em-
ploys 66 people and planning is going forward to
ect 28).
and facilities for manufacturing pesticides, caustic
and bleaching powder.
hydrochloric acid
soda
expand present facilities to meet increased demands.
66-259
,
,
Seoul National University operating facilities------
Seoul------------------
----- do-----------------
3,685
Although physical construction not fully completed,
progress to date has enabled the several colleges to
Rehabilitation and improvement of the war-
damaged physical plant and provision of essential
expand their capacity to meet student needs.
laboratory supplies and equipment.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
Proj
27 1
Cost;
cumulative
through
fiscal Y.
1959
Agricultural research ------------------------------- ------------------------------------------------------
Suwon----------------
Thousands
$401
This project provides for administrative personnel of the Suwon Agricultural Institute, 9 provincial
institutes, and 6 main experiment stations to be technically trained In procedures and methods essential
for the success of agricultural research in Korea.
Agricultural extension and development -------------------------------------------------------------------
Overall _-------------
Technical cooperation-
707
Provides technicians, contract services, training, equipment and supplies for the establishment and
Defense support ..--.-.
1
026
M-809
operation of an extension service to disseminate information to farm people on better methods and im-
proved practices of farm production.
Flood control--------------------------------------------------------------------------------------------
This project provides assistance for the construction of levees and sluice gates in order that agricultural
lands might be protected from flooding which occurs in varying intensity almost every summer.
Land and water use improvement------------------------------------------------------- -----------------
----- do----------------
-----do----------------
Technical cooperation_
,
Provides technical services, training, materials and supplies required to help increase and stabilize the
Defense support-------
8
313 CI
13-212
production of foodstuffs and other economic products of the soil such as timber and watershed cover.
Specialty farm enterprises---------------------------------------------------------------------------------
----do----------------
Technical cooperation-
,
137
13-214
This project provides training and equipment which will serve to increase food and fiber output in Korea
through upgrading of production and improved processing methods.
Livestock and veterinary improvement--------------------------------------------------------------------
----- do----------------
----- do----------------
107
This project provides for the necessary veterinary services training and equipment to improve the
Defense support-------
350
quality of livestock and livestock products as well as to increase the production factor per animal unit.
Crop and snit imprnveroeu? ---------'
----- - ----------------
Tecllnicai Cooperation-
141
This project provides funds to procure seeds in order to develop better crop varieties and establish a
Defense support-------
481
better seed program, and also provides a training program for improvement of production of vegetable
crops.
Soil management ------------------------------------------------------------------------------------------
Technical cooperation-
81 --&
This project provides U.S. technicians to assist the Koreans in fertilizer-soil management problems by
means of demonstrations in the application of various fertilizers.
Agriculture pest control---------------------------------------------------- ------------------------------
-----do----------------
as
w
191 G
This project provides for training in agriculture pest control-the various phases of insect and disease
fungi, including life cycles and their economic importance and control.
Sericulture development - - -
o-----------------
9
Provides for expansion and development in Korea of silk through increasing mulberry plantation areas,
Defense support ______-
370
training programs, and the training of selected Korean sericulture technicians in Italy on production,
processing, and marketing methods Sn order that the silk production may be at least doubled Fn the next
few years.
Agriculture rodent and pest control------------------------------------------------------------------------
Provides funds to survey and recommend a program for rodent and pest control; also to conduct a train-
ing program which will involve supplies and equipment to be provided through agriculture extension-type
approach.
Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
Agricultural cooperatives development-------------------------------------------------------------------
This project is to encourage and assist the promotion and development of independent controlled agri-
culture cooperatives which will promote the development of democratic institutions suited to farmer needs
for purposes of production, marketing, and agricultural credit.
Agricultural statistics improvement--------------------------- -----------------------_-----.------ ------
This project assists the Ministry of Agriculture and Forestry in establishing an efficient agricultural
statistics collection and reporting service to better operate a food supply management program.
Farm products storage improvements----------------------------------------------------------------------
This project provides assistance through improving preservation and storage of farm products in South
Korea; provides for training and commodities to carry out a research program to develop preservation
methods and to effect proper distribution and marketing of such products.
Fisheries development-------------------------------------------------------------------------------------
Overall ---------------
----- do-----------------
Technical cooperation-
Defense support-------
do-
37
This provides for rehabilitation and development of Korean fishing industry to enable it to supply a
Defense support_______
3,580
21-491
substantial portion of protein food required for expanding population and to assist in increasing foreign
exchange earnings through exports of marine products.
Agricultural engineering development _------------------------------------------_-_-----------------------'
Provides training for technicians in improved engineering techniques in crop and livestock fields in
order to increase the production of food crops.
Coal mine development----------------------------------------------------------- ----------------------
This project providing through engineering services, supplies and equipment seeks to reestablish win
ing as a major Korean industry through a program of resource exploration and exploitation and develop-
ment of exports.
Development of metals and minerals, other than coal______________________________________________________
Provides engineering services and equipment required for the exploration, rehabilitation and/or devel-
opment of mines, mine sites, other than coal, which will permit Korea to participate in the international
ore and metal market.
Mining and geological training----------------------------------------------------------------------------
----- do-----------------
---- do-----------------
----- do-- --------------
----- do-----------------
Defense support -------
----- do -----------------
Technical cooperation-
22-200
Provides technical training and assistance in the improvement of exploration, development and pro-
duction of Korean mineral resources and the analysis and treatment of ores and quarry products.
Rehabilitation of telephone central office -------------------------------------------------------------------
Seoul------------------
Defense support-------
22-201
This project provides materials and equipment for installing telephone carrier terminals and a teletype
network linking all primary toll centers.
Rehabilitation of telegraph and telephone toll centers______________________________________________________
C hinhae-Chinju -------
----- do-----------------
22-206
This project provides equipment for the interconnection of a primary toll switching center in 10 selected
areas, as well as toll centers within each toll area.
Telecommunications cable and open-wire lines------------------------------------------------------------
This project provides material for the rehabilitation of open-wire toll connecting links as well as toll
connecting cables for both telephone and telegraph systems to connect to the Mokpo radio transmitter
station.
Communications technical improvement -_________________________________________________________________
Taegu-offshore -_______
Overall ________________
-----do-----------------
-----do-----------------
22-220
This project provides U.S. management and technical services to assist the Ministry of Communications
in the management and operation of the telephone communications system.
Rehabilitation of Yongwol and Tangin-Ri thermal plants --------------------------------------- __________
Yongwol Tangin-RL__
----- do-----------------
22-221
This project rehabilitates Yongwol and Tangin-Ri thermal powerplants together with their substa-
tions and switchyards to provide urgently needed additional generation.
Rehabilitation and construction overall transmission and distribution system______________________________
Overall east coast sec-
-----do-----------------
This project provides equipment to rehabilitate and construct substations in the Korea power system
to meet new patterns of power supply, distribution, increased services and shifts in load centers.
Rehabilitation of Unam powerplant_______________________________________________________________________
Provides for the rehabilitation of existing generating capacity, and engineering studies to ascertain total
costs of reconstructing both plant and dam structure.
tor.
-----do-----------------
Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
Project
cost,
No.
Location
cumulative
througb
fiscal year
1959
Thousands
22-225
Power substation of Hambaik_____________________________________________________________________________
This project provides for the procurement of transformers, associated switch gear and necessary pro-
tective metering equipment for a substation at the Hambaik coal field in order that additional coal reserves
may be investigated and present proved reserves may be developed.
$74
22-228
Rehabilitation of Chong Pyong Dam---------------------------------------------------------------------
This project provides the necessary engineering services and funds for the first phase of equipment
required to rehabilitate both the plant and dam structure.
Hwachon-------------
----- do----------------
22-256
Rehabilitation of outside telephone cable plant------------------------------------------------------------
This project provides equipment for a properly designed technical outside plant cable distribution
installation in order to make 23,000 lines of automatic telephone equipment operable.
Seoul ------------------
-----do----------------
22-336
Electric power distribution system------------------------------------------------------------------------
This project provides for equipment and supplies to correct power factors, improve voltage regulation
of distribution systems, provide protective equipment in relocating primary distribution lines. Also
to purchase meters so that flat-rate customers can be placed on 24-hour service in order that unauthorized
use of power may be curtailed.
Overall ---------------
-----do----------------
22-338
Voice telephone carrier system------------------------------------------------------------- -----
This project provides additional voice telephone carrier system equipment for 11 primary and secondary
toll centers.
22-415
Power system maintenance --------------------------------------------------------------------------------
Provides spare parts to keep generation, transmission and distribution systems in operation.
Overall ---------------
----- do----------------
237
34-W
Extension of telccommunicatio^,s syste
~y~~m part :and IN -----------------------------------------------------
Provides for equipment required to provide additional and improved telephone service in areas having
priority requirements largely of an industrial or governmental nature.
Seoui-Inchon----------
-----do----------------
1,761
22-501
Thermal plant, southwest Korea---------------------------------------------p --------------- ----__-
Project provides for the phased financing of engineering and design work, procurement of aqui ment
and construction, training and supervision of operations for a 30,000 kilowatt thermal electric plant
to be located at Kunsan.
Kunsan---------------
-----do----------------
23-280
Industrial training-----------------------------------------------------------------------------------------
This project provides essential technical training abroad for participants in a variety of industrial
fields thereby filling a need for trained technicians particularly in Lew processes, newly developed indus-
tries and industrial management.
Overall ----------------
Technical cooperation-
23-292
Rice straw pulp plant -------------------------------------------------------------------------------------
This project provides funds for engineering services and equipment required to complete the erection
and equipment of a straw pulp plant which will produce 7,200 MIT annually of straw pulp from indigenous
grain straws for the manufacture of printing and writing paper.
Yongdungpo----------
Defense support-------
23-293
Korea handicrafts -----------------------------------------------------------------------------------------
This project provides for the services of a professional U.S. industrial design firm and for the training
of Korean personnel in the development of markets for Korean handicraft and products on large volumes.
It also provides assistance in industrial planning techniques.
Overall ---------------
Technical cooperation-
Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
23-305
(23-306)
Caustic soda plant---------------------------------------------------------------------------------------
These projects provide funds for engineering services and equipment to erect and equip two electrolytic
caustic soda plants to produce, from indigenous materials, salt, caustic soda, chlorine, hydrogen, hydro-
chloric acid, bleaching powder, and related chemicals in amounts sufficient to take care of the current
requirements of the country.
Hardboard plant-------------------- --------------------------------------------------------------------
This project provides engineering services and equipment for the construction of a hardboard plant
which will produce 20 metric tons of 4 by 8 hardboard sheets every 22 hours.
Paper mill -------------------------------------------------------------------------------------------------
This project provides funds for the rehabilitation and expansion of a paper mill to produce 4,500 metric
tons of printing paper per year. It is estimated that ~fe of the raw materials required can be supplied from
Korea.
Bran oil plant____________________________________ ________________________________________________________
This project provides funds for engineering services and equipment for an oil extraction and refinery
plant utilizing domestic rice bran as a main raw material in addition to such high oil content seeds as cot-
ton seed and soy bean. It is expected that this plant will produce 3,600 metric tons of oil annually.
Textile parts plants ----------------------------------- --------------------------------------
This project provides for the rehabilitation expansion and modernization of an existing needle manu-
facturing plant which will produce 9 different types of needles totaling 13,200,000 annually.
Spun rayon yarn spinning plant---------------------------------------------------------------------------
This project provides for technical assistance and equipment to construct a rayon yarn mill capable
of spinning fibers separately or in blends for lightweight summer clothing. It is estimated that this plant
will produce 1,395,800 pounds per year.
Service and training-Chongju fertilizer plant-------------------------------------------------------------
This project provides technical services in the field of management and in the advisory, operational
and training services in the operations of Chungju fertilizer plant. This service is provided for a mini-
mum period of time required to train Korean personnel in the specialized management and operation for
the production of urea fertilizer.
Development of domestic building materials plants-------------------- -----------------------------------
This project provides for the necessary technical assistance and materials required to develop and im-
prove the indigenous building material industry in Korea, to alleviate both a shortage of such materials
and at a lower cost.
Small industry development-------------------------------------------------------------------------------
Provides through a loan mechanism, the required technical services, machinery and equipment for the
development of a great number and wide variety of small private industries, for the production of locally
produced consumer necessities and industrial products.
Medium industry development----------------------------------------------------------------------------
Provides through a loan mechanism technical services, machinery and equipment required to develop
essential private medium-size industrial plants and facilities.
Industrial development center----------------------------- -----------------------------------------------
Provides technical assistance and training through the establishment of an industrial development
center designed to achieve a higher level of industrial production and employment.
Central industrial research center------------------ -------------------------------------------------------
. Provides equipment for the testing and analysis of industrial raw materials and finished products as well
as providing materials for the required rehabilitation of structures to house such testing equipment.
Dal. Han Shipbuilding Corp--------------- ------------------------- -----------------------------------
Provides engineering services and equipment to permit the construction and repair of oceangoing ves-
sels, manufacture semidiesel and diesel engines up to 500 horsepower, cast iron pipes up to 20 inches and
castings and replacement parts for industry.
Waterworks rehabilitation and expansion------------------------------------------------------------------
This project provides training and equipment required in rehabilitating existing water treatment
plants, for the construction of new plants, the replacement of existing steel waterlines or the installation
of new steel waterlines in the Seoul city area.
23-459
23-492
23-503
Suwon ----------------
Seoul_________________
Pusan----------------
----- do----------------
----- o----------------
-----do----------------
1,000 L4
Li
3,131
SeouL-----------------
Overall ----------------
-----do-----------------
-----do-----------------
----- do-----------------
-----do-----------------
15,572
Seoul------------------
Technical cooperation-
405
-----do-----------------
Defense support -------
300
Pusan-----------------
----- do----------------
Technical cooperation-
47
Defense support -------
4,935 I-~
N)
Cat
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Cost,
cumulative
through
fiscal year
1959
25-405
City drainage improvement -----------------?--_--------?--
Project provides for e
ui
ment
d
Technical Coo
eration
Thousands
q
p
an
materials required to build proper drainage ditches in order to
improve the health, sanitary and traffic conditions in Korea
p
- _
Defense support-----
-
2$9
1
31-278
.
Highway and bridge construction and rehabilitation____________________
,
9
Provides for restoration and construction of bridges, culverts; construction and improvement of high-
Technical cooperation-
31
31-404
ways including paving, major repair and resurfacing.
Paving and bridge construction----------------------------------------------- ---------------------------
Provides basic maintenance equipment (machinery) for heavy equipment shop use, where construction
equipment is serviced, repaired or rebuilt. These items are essential to complete construction projects
initiated and contemplated.
Railway rolling stock-------------------------------------------------- --
Provides additional passenger coaches and freight cars within a level sufficient to meet the demands for
national defense and to asist in development of the national economy.
Railway rehabilitation---------------
Provides for reconstruction and rehabilitation of the largest and major structures required for normal
railroad operations. Also provides for relocation, reconstruction, and/or installation of required com-
munication conduits, pole lines wire, and underground cable systems.
Railway construction --------------------------------------------------------------------------------------
Provides for extensive construction activities on major railroad lines; activities involve bridge altera-
tions to correct strnrtnral defects, relocation of trackage on several lines in order that flood control meas-
ures may be effected and track iprovement to meet d 11
KNR logistic support iese ocomotive weight requirements.
Defense support-------
-----do-----------------
9,282
Provides logistic support in the shape of coal
lubricants
and oth
i
d
do
Technical cooperation-
8
,
,
er requ
re
commodities to permit con-
tinued operation of the railroad system
Diesel locomotives
Defense support .......
55,453
Involves procurement of additional diesel-electric locomotives, and necessary remodeling and renova-
tion of the Pusan and Taejon diesel engine shops in order that these facilities wil ]be adequate for full
maintenance and repair operations.
Port and harbor improvement (major ports) ---------------------------------------
Major construction activities are being implemented at 9 major ports; these activities include comple-
tion of 3 port facilities, expansion of existing facilities in the remaining 0 ports. The project will permit
berthing of oceangoing vessels which have been denied the use of these ports heretofore
----- do-----------------
Inchon, Pusan, etc___-
----- do-----------------
15,001
.
Inchon port rehabilitation________________________
Provides for equipment engineering services and materials required to repair or replace the lock gates
and machinery lock chambers, aprons and quay of the tidal basin at Inchon. This project will enable
unloading at dockside instead of lengthy and costly ligbtening.
Coastal vessel improvement-----
Provides for rehabilitation of 50 coastal vessels of a
d construction of 19
additional vessels, thereby increasing cargo-carrying capacity lof the coastal fleet.
Inchon________________
Overall ----------------
-----do-----------------
-----do--?-------------
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
36-502
Marine aids to navigation---------- ------------- -------------- ---------
Provides for the procurement of marine lighting equipment for n avigational improvement, modifica-
tion of existing navigational structures to accommodate the new equipment. Also provides for construc-
tion of a buoy depot for the servicing and repair of marine navigational aids.
37-267
Civil aviation operations improvement____________________________________________________________________
P
id
t
h
Technical cooperation
90
rov
es
ec
nical assistance for the establishment of civil aviation activities and air navigational aids
within the Republic of Korea.
-
Defense support_______
867
51-451
Disease control_____________________ ---------------------------------------------------------------------
P 'd
rove es
d
Technical cooperation
40
commo
ities for disease control, supplies for environmental sanitation activities, laboratory
equipment and supplies related to vaccine production, and training of public health technicians in the
United States and 3d countries.
_
Defense support_______
2,228
52-251
Construction of
Provides fora program of well construction, city-type and rural-type public baths and night soil tanks;
also technical assistance is provided by U.S. technicians and trainees are receiving on-the-job experience
-----do-----------------
Technical cooperation_
Defense support_______
10
1, 563
52-510
.
Environmental sanitation -----------------------------------------------------------
Provides imported materials, training, demonstration, relating to the construction and improvement
of a comprehensive environmental sanitation system, and its effective operation and maintenance
----- do-----------------
-----do----------------
53-436
.
SNU Dental College improvement________________________________________________ _______________________
Provides training for recent graduates or faculty members in the United States in the field of teaching
methods; also provides training equipment and supplies, dental motors, laboratory equipment and
supplies.
Seoul------------------
54-430
ands for the services of a quanned U.S. technician in the health education field, and such
minimal equipment as may be required by the public health training program.
N
si
d
do-
Defense support_______
34
48
Ul
50
ur
ng e
ucation -----------------------------------------------------------------------------------------
Provides for services of 3 nursing education advisers to assist in development of curriculum, improve-
ment of educational materials, selection of demonstration equipment, and consultative services to hospital
clinics, health centers and educational institutions.
Technical cooperation-
303
55-252
Public health facilities improvement__________________________________________________________
Provides construction materials, equipment and furnishings to complete 3 national health institutions
(tuberculosis hospital, mental hospital, national blood bank) and a number of health centers which will
provide medical care in areas previously without such institutions
61-265
Vocational education-------------------------------------------------------------- - ---------- ----I
Involc
h
bili
----- do----------------
Technicalcooperation
795
61-257
es re
a
tation and upgrading of vocational educational facilities and, through technical
assistance activities, aims to improve the educational practices in this field.
R
bli
f K
_
Defense support -------
2,211
epu
c o
orea Merchant Marine Academy_____________________________________________
P
id
t
Chin Hae_____________
Technical cooperation
128
65-511
rov
es
echnical assistance and necessary equipment support for the development of the Merchant
Marine Academy into an institution capable of providing necessary training for merchant marine person-
nel. The Academy will serve as a source of qualified reserve officers for the Republic of Korea Navy.
S
d
-
Defense support-------
127
econ
ary education--------------------------------------------------------------------- --------------
Provides commodity and technical assistance to a program of reorientation of the secondary education
system along functional lines: introduction of more practical subject sinto the curriculum is designed to
be responsive to Korea's basic needs.
Overall________________
Technical cooperation-
66-258
Seoul National University, technical assistance ------------------ ____----------------------------------
Provides ___high level training for technicians, administrators, and leaders of Seoul National University;
improvements in administration, curriculums, and teaching methods are under the aegis of a University
of Minnesota contract.
Seoul------------------
----- do-----------------
66-259
Seoul National University operating facilities____________________________ .-_-_____________
Rehabilitation and improvement of the war-damaged physical plant and provision of essential labora-
tory supplies and equipment.
-----do-----------------
Defense support -------
66-260
Improvement of teacher training _____________------------------___- _____________--___--_---------------
Provid
h
i
t
Technical cooperation
1
364
~--+
es
ec
n
cal services, partly under contract, training and supplies and equipment required for
the training of teachers and administrators for primary, middle, and high schools.
-
Defense support_______
,
2,028
.
N
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Cost,
cumulative
through
fiscal year
1959
Technical assistance in public administration--------------------------------------------------------------
Provides university contractual services and training required to supply trained qualified public serv-
ants to meet the growing demands of the country and establish a center of research and training in the field
Of public admmistration.
Higher education------------------- ------------------------------------------------
Provides technical services, university contract services, training and necessary materials and equip-
ment to rehabilitate and improve the physical plant of Seoul National University and to strengthen the
educational and research programs in the broad fields of agriculture, engineering, medicine, and nursing
at Seoul National University.
National police modernization----------------------------------------------------------------------------
Provides a broad program of technical services and basic equipment designed to improve and modernize
the training, functioning, and utilization of police and firefighting units.
Public administration service------------------------------------------------------------------------------
Provides for a technical survey of existing ministerial and bureau organization patterns and relation-
ships in order to develop more effective governmental services through a broad program of legislative and
executive reforms.
Economic Development Council _------------------------------------------------------------------------
Provides technical assistance for the establishment of an economic board to analyze economic potential,
formulate and describe economic goals, and develop programs relating to the nation's needs in terms of
economic policies and priorities.
improvement in Government manageu,eut and peisouliel administration----------------------------------
Aims at development of a corps of technically competent personnel in public administration and mod-
ernization of the civil service system; funds are to provide participant training, advisory services of U.S.
technicians, and a small amount of demonstration equipment.
Improvement of government fiscal management and statistics---------------------------------------------
This project involves technical guidance, training, and some demonstration equipment for the purpose
of developing a corps of technically competent personnel in the finance, banking, internal revenue, and
statistical agencies of the Republic of Korea, and to assist in development of methods, procedures and
programs in the statistical field.
Technical assistance in business administration ------------------------------------------------------------
Provides support to the leading educational institutions of Korea in modernizing and reorienting their
schools of economics and business administration through a technical assistance contract with Washington
University of St. Louis.
Meteorological laboratory --------------------------------------------------------------
ti
a
l
w
th
ea
er
f
essen
s assistance to the Ministry of Education for the procurement o
l
t
invo
ve
This projec
instruments not available in Korea and technical assistance in the installation and utilization of this
equipment in meteorological activities.
Republic of Korea office building-------------------------------------------------------------------------
Provides assistance in architectural engineering and construction or a modern 8-story office building
to provide additional required space for Republic of Korea Government offices.
Thousands
Overall ---_-___--_-_-_-
$628
-----do-----------------
----- do-----------------
324
Defense support --_--__
587
----- do-----------------
Technical cooperation-
154
Defense support-------
1,876
-----do-----------------
Seoul-----------------
------------------------
Technical cooperation-
----- do----------------
do-----------------
Overall ----------------
----- do-----------------
1, 493
------------------------
Defense support -------
200
-----do-----------------
Seoul------------------
Technical cooperation-
Defense support---____
-----do-----------------------do----------------
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
82-250
82-407
82-457
Provides technician services, contract services, basic equipment ana supplies to estaohsn aemonstra-
tion and training centers in each province to encourage rural communities to plan and execute community
improvement activities
Provides technician services, training, machinery, and equipment required for the development or pilot
and demonstration centers in both the rural and urban areas to assist in the resettlement of refugees either
1' +hn nvinn+ feasihln nn their ncv-n land nr in new cnmmtmities-
This activity, in support of the health of U.N. defense forces, is aimed at prevention or disease in the
civilian population in order to stabilize health conditions, and to provide supplies for relief medical care.
Welfare and rehabilitation institutions, training and demonstration_ _________________________
Provides demonstration, training, and planning assistance in the development of an overall integrated
welfare program, and institutions to rehabilitate people to enable them to meet their own needs.
CARE milk feeding support program ---------------------------------------------------------------------
Proiect finances a contract between CARE and the Republic of Korea Government under which
CARE handles the distribution of surplus dairy products provided by the U.S. Government under
title III of Public Law 480.
Housing construction materials--------------------------------------------------------------------------
Provides material and psychological stimulus for replacing over 400,000 dwelling units now obsolescent
or war-damaged and building an additional 80,000 new homes each year, a minimum requirement to keep
pace with population growth and natural disaster. It will also assist in reducing shortages in basic build-
and establish adequate building industries.
provide credit capital
,
ing materials
,
Housing for Chung-Ju fertilizer plant ----------------------------------------------------------------------
Provides for construction of necessary housing and utilities for workers at the Chung-Ju fertilizer plant.
The project is planned, designed, and will be built to serve as a demonstration project for the planning of
worker's housing at Korean industrial and commercial plants.
Housing research and development------------------------------------------------------------------------
Provides for publication and dissemination of technical and nontechnical information on housing con-
struction practices; develops housing surveys and studies on conditions, needs, and problems, and pro-
vides for research programs on housing materials, methods, and design. Also provides for demonstra-
tion of advances in housing construction as a result of research.
Improvement of technical information services------------------------------------------------------------
Provides technical services, training, and supplies and equipment required to improve and expand the
communications media facilities and techniques of the Republic of Korea Government. In addition,
trained personnel are being provided in the fields of motion pictures, radio, and printing.
Demonstration Audiovisual Center------------------------------------------------------------------------
Provides technical services training and equipment required to establish jointly with the Republic of
Korea a demonstration audiovisual center to enable the Koreans to assume full direction of their
audiovisual program through the academic, administration, and planning and execution phases.
Atomic energy training-----------------------------------------------------------------------------------
Provides basic training in the United States for Korean scientists in the peaceful uses of atomic energy
including the construction and operation of an atomic reactor.
General engineering services-------------------------------------------------------------------------------
Provides for a qualified U.S. engineering consortium to furnish advisory engineering services to the
Korean Government and to those governmental and private organizations designated by the Government
and the USOM under the direction of the Combined Economic Board. Such services are in the fields of
and public works.
transportation
,
power
,
industry
,
_____do_________________
Technical cooperation-
Defense support ----___
Technical cooperation-
Defense support_______
Technical cooperation
148
Defense support_______
120
----- do-----------------
-----do-----------------
Chung-7u__________---
Overall_______________
----- do----------------
-----do-----------------
Technical cooperation-
Defense support_______
Technical cooperation_
1,133
Defense support -------
250
Seoul ------------------
Technicalcooperation_
329
(Argonne Laborato-
ries, United States).
Overall. ---------------
----- do-----------------
990
Defense support-------
2,886
Design and construction engineering services-------------------------------------------------------------- ----- do-----------------
Provides for the contractual services of a U.S. architectural and engineering firm to advise, supervise,
and train Korean engineers, to secure competency in both design and construction of Government-owned
buildings and related facilities.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
CHINA (TAIWAN)
Total economic and military aid through fiscal year 1959
[In thousands of dollars]
Economic (since beginning of ICA and predecessor programs)____________________________________ $1,003,494
Military (programed since 1950)_____________________________________________________________ 2,056,930
Project
No.
Project title and description
Location
Function
Cost,
cumulative
through
fiscal year
1959
Accomplishments
11-453
Agriculture and rural improvement (JCRR)________
This project is designed to increase agricultural
Taipei and island-
wide
Technical cooperation.
D
f
Thousands
$2,337
The JCRR is the catalytic agent for numerous proj-
production and improve rural living conditions,
The Joint Commission on Rural Reconstruction
.
e
ense support- _____
601
ects completed each year. In the 9 years since it
initiated operations on Taiwan, JCRR has pro-
(JCRR), which directs this project
is a Sino-
moted approximately 3,000 projects, in cooperation
,
American group, which works through public and
with sponsoring agencies.
Its
activities the
cover
private sponsoring agencies at the provincial and
locallevel. Among the specific activities ofJCRR
av
entire
neisland, and are believed
r elieved to
rpctly
have directly
benefited more than 90 percent of the rural popula-
are control of plant diseases and pests, improve-
tion. The work of JCRR has been instrumental
In bringing about production increases in rice
ment in quality of livestock, strengthening of local
farmers organizations
improve meat of soil con-
,
sweet potatoes, sugar cane, peanuts, tea, and many
,
servation practices, and development of a more
adequate agricultural credit program.
other crops. JCRR provided administrative,
technical, and financial support to the land reform
program, as a result of which 84 percent of Taiwan's
families own their own land, as compared to one-
12 334
Land and water resources development (JCRR) ____
This project is designed to improve and expand
---- do---------------- .
Technical cooperation-
D
f
587
third prior to the program.
Since 1952, more than 94,000 acres of new land has been
the irrigation, drainage
and flood control facilities
e
ense support- ------
1, 996
Irrigated, and more than 380,000 acres have received
,
in Taiwan in order to increase agricultural produc-
ti
i
improved irrigation. Miles of new and improved
dikes have furnished flood and typhoon protection
on. Act
vities include extension of the area of
irrigated land, provision of supplemental water to
to valuable farm lands. Encouragement of a
areas already being irrigated, provision of more
rotational irrigation system has resulted in savings
of water
fertilizer
and labor
adequate flood protection to downstream valleys
,
,
.
and reclamation of tidal lands.
27-311
China productivity center__________________________
The purpose of this project is to improve the
Taipei________________
Technical cooperation-
331
Since its organization in 1956, the center has responded
productivity of small and medium-sized private
i
to many inquiries for information and technical
services. A number of enterprises have b
en
ndustrial enterprises in Taiwan. Activities in-
clude improvement of management
introduction
e
assisted to increase their production significantly
,
of improved production and marketing techniques
for the local market, and some have been brought
and promotion of industrial safety measures and
to the point where they can export their products,
e.g., consumer goods such as electric fans
therm
quality control methods.
,
os
bottles
etc.
for the southeast Asia mar
,
,
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Hsinchu window glass works-----------------------
The purpose of this project is to provide glass
for buildings and other local requirements, thus
saving foreign exchange, and also to export glass
abroad, thus increasing foreign exchange earnings.
Nearly all the raw materials required for the
manufacture of glass are available locally.
Chia Elsin cement plant----------------------------
The purpose of this project is to produce 100,000
tons of Portland cement annually, in order to
help supply sizable local requirements, both mili-
tary and civilian, and to provide a means of in-
creasing foreign exchange earnings through ex-
ports. The manufacture of cement is one of the
most promising industries in Taiwan utilizing
local raw materials, in this case limestone.
Defense support-------
ket. The center has already proved itself an
Important stimulus to the development of private
enterprise in Taiwan.
Production of sheet glass by this privately owned en-
terprise began in 1956 and soon reached the planned
production of 180,000 standard cases per year.
In 1957, production of frosted glass and of glass-
made blackboards was initiated. A part of the
production of the plant is now being exported.
Commercial production from this privately owned
plant began in 1958, increasing domestic output of
cement by about 20 percent.
Cost,
cumulative
through
fiscal year
1959
Forestry development (JCRR)---------------------------------------------------------------------------
Tlwuaands
$295
This project aims at supporting various activities designed to expand and better utilize the forest re-
sources of Taiwan. It emphasizes forest surveys, reforestration, and building of windbreaks.
Fisheries development (JCRR)-
This project provides support to a large number of activities the objective of which is to increase Sshing
production in the coastal and inland areas of Taiwan, particularly by increased catch through improved
equipment and methods.
Coal mine development-----------------------------------------------------------------------------------
The purpose of this project is to increase production of coal to meet the increased demands of Taiwan's
new thermal powerplants, cement factories, urea fertilizer and other industrial plants. In connection
with the project, coal reserve areas are explored and mapped, and improved mining equipment is fur-
nished.
Mineral development (other than coal)----------------------------------------------------------------.---
The purpose of this project is to increase the production of minerals such as copper, manganese, dolo-
mite, sulfur. etc., by exploration and evaluation of deposits.
hydroelectric power development-------------------------------------------------------------------------
This project is designed to expand hydroelectric power generation in order to most civilian and military
power requirements. At present this project covers 4 major powerplants: Wusheh, Lung Chien, Ku
Kwan, and Ta Chien, which are in various stages of completion. Total installed capacity since 1952, the
beginning of this project, has increased from 2.50,000 kilowatts to about 400,000 kilowatts.
----- do-----------------
-----do--? ------------
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Cost,
cumulative
through
fiscal year
1959
Thermal power development------------------------------------------------------------------------------
The purpose of this project is to increase thermal power on Taiwan where it is needed to supplement
hydroelectric power, especially during the dry season. At present this project covers the 2-unit Shen Ao
plant with, a goal of providing generating capacity of 200,000 kilowatts. Westinghouse International
Electric Co. is supplying a generator and other equipment for the 1st unit under a long-term financial ar-
rangement, with ICA financing the remainder of the equipment. The second unit is being financed by
aid funds.
Primary system improvement -----------------------------------------------------------------------------
This project provides for the expansion of the high voltage or primary power distribution system needed
as new electric power generating units are constructed on Taiwan. The project was started in fiscal year
1955.
Power transmission and distribution----------------------------------------------------------------------
This project provides for the improvement and expansion of Taiwan's electric power transmission
system by correcting unsatisfactory voltage conditions, improving reliability of service, and increasing
power transmission capacity as needed. Started in fiscal year 1955, the project has already resulted in
improvement and expansion. The capacity for distribution transformers has increased from 264,000 to
366,000 kilovolt-amperes, and the capacity of secondary substations has increased from 421,000 to
515,000 kilovolt-amperes,
Telecommunications-------------------------------------------------------------------------- ----------
This project is for the purpose of improving and expanding the telecommunications network in Taiwan
in order to meet the heavy and increasing demand for basic communication facilities from both military
and civilian sectors of the economy. Initiated in fiscal year 1955, project has been expanded annually and
provides for participant training as well as procurement of equipment.
Fertilizer production-------------------------------------------------------------------------------------
This project consists of several plants including urea, nitrochalk, nitrophosphate, and ammonium sul-
fate, all of which are designed to produce chemical fertilizer from locally available raw materials. In so
doing, it will reduce one of the heaviest annual drains on Taiwan's foreign exchange resources and help
increase agricultural production.
Industrial base expansion----------------------------------------------------------------------------------
This project is a lithograph-printing and platemaking plant that will make color reproduction facilities
available to the publishing industry in Taiwan and thus save the foreign exchange required for having
this work done abroad.
Caustic soda and chlorine---------------------------------------------------------------------------------
The purpose of the project is to expand the Taiwan Alkali Co.'s Kaohsiung plant in order to increase
local production of caustic soda and chlorine compounds for industrial consumption.
Water resources survey-------------------------------------------------------------------------?----------
The purpose of this project is to survey underdeveloped ground and surface water resources in order to
secure additional irrigation, power, and water supply. The services of a U.S. firm have been provided
on a contract basis to advise and assist the local water resources planning commission.
Thousands
$27,177
----- do-----------------
----- do-----------------
Taipei----------------
Kaohsiung ------------
----- do -----------------
----- do -----------------
----- do -----------------
----- do -----------------
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Handicraft promotion center- --------------------------------------------------------------------------
This project is designed to develop handicraft industries in Taiwan for the manufacture of products
with an export potential. With the assistance of a U.S. firm under an ICA-financed contract, the center
is attempting to improve utilization of local materials, promote training of workers, and improve and in-
crease production.
Technical cooperation
Defense support--____
131
318
Ta Shu Shan logging operation____________________________________ ----------------------------------------
This project involves the exploitation of a virgin stand of timber in the central part of Taiwan. U.S.
aid is planned for providing a logging and milling operation based on the use of diesel yarders and logging
trucks and combined with a modern sawmill.
29-323
23-541
33-427
General industrial training_________________________________________________________ -----------------------
This project provides inservice training in the United States and other countries for key employees of
selected local industries.
Industrial dynamite------------------------------- -
The purpose of this project Is to provide a source of local production of industrial dynamite and thus
eliminate import requirements.
Expansion of railways-------------------------------------------------------------------------------------
This project is designed to expand railroad facilities to meet the transportation needs of the economy as
reflected by the increased civilian and military freight and passenger traffic. Initiated in fiscal year 1957,
ICA financing is planned only through fiscal year 1960. Specific goals are: (a) Increasing the number of
diesel locomotives, freight and passenger cars; (b) installing central traffic control equipment; (c) pro-
viding for a wrecking crane; and (d) replacing of worn rails, switches, and ties.
Harbor and shipping development-------------------------------------------------------------------------
Islandwide___________-
Hualien_______________
Islandwide____________
Technical cooperation-
Defense support -------
-----do----------------
This project is designed,to assist in the improvement of (a) Taiwan's coastal cargo and tanker vessels
by replacement of present obsolete and uneconomical tonnage, and (b) 2 major harbors by expansion of
cargo-handling facilities, fairways, and deep-water berths. Initiated in fiscal year 1952, the project calls
for extension of Kaohsiung harbor to provide a new fairway, deep-water berths, land recovery, and expan-
sion of cargo-handling facflfties; and extension of harbor and improvement of port facilities at Hualien.
Air transportation improvement---------------------------------------------------------------------------
The purpose of this project is (a) to increasetthe utilization of the Taiwan airways system and to pro-
mote the efficiency and safety of domestic and international flight operations and (b) to provide an ade-
quate area for service facilities for modern international air carriers. Advisory services are being provided
through the U.S. Civil Aeronautics Administration.
Technical cooperation-
Defense support -------
100
1,387
51-469
Disease control (excluding malaria)________________________________________________________________________
Ialandwide____________
Technical cooperation-
This project provides assistance to the Provincial Health Administration for cooperation with other
Defense support ------
0
health agencies such as WHO and UNICEF, in fighting disease, primarily tuberculosis.
14
52-536
Municipal water supply-----------------------------------------------------------------------------------
This project is designed to help improve municipal water supply in Taichung, one of the major cities
of Taiwan, in order to relieve the critical water shortage.
Taichung-______.___?
----- do----------------
55-492
Taiwan sanitarium expansion-----------------------------------------------------------------------------
Under the auspices of the Seventh Day Adventist Mission, a cancer treatment center is being estab-
lished at the Taiwan Sanitarium.
Taipei----------------
Technical cooperation-
25
59-386
Rural health and sanitation (JCRR)______________________?_---------------------------------------------
Islandwide------------
----- do----------------
93
This project provides technical and financial assistance in an extensive rural health program empha-
sizing provision of health facilities and improvement of environmental sanitation.
Defense support------
33
52-458
Improvement of sanitation and water supply____: _____________________________________ ----------- --------
The purpose of this project is the construction and demonstration of wells, small waterworks and
sewage disposal facilities in rural areas and villages.
-----do----------------
224
54-513
Medical and paramedical education----------------------------------------------------------------------
This project provides aid to medical schools, schools of nursing, dentistry, midwifery and other para-
medical training institutions in a program aimed at increasing the number and competence of local staff
personnel.
-----do-----------
I---i
Improvement of hospitals and other health facilities_______________________________________________________
This project provides assistance on a area scale to improve substandard hospital and public health
facilities by furnishing advisory services of technicians and training programs for local staffs.
67
GJ
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Project title and description
Location
Function
cost,
cumulative
through
fiscal year
1959
Thousands
61-460
Trade and industrial education ----------------------------------------------------------------------------
Islandwide------------
Technical cooperation-
$1,761
This project includes development of adequate in-school technical training at the skilled and semi-
skilled level, as well as training of vocational industrial teachers. Advisory services have been provided
under a contract with Pennsylvania State University.
63-470
Home economics teacher training ---------------- ----------?_--_---_-------_-------- --------------------
Taipei ---------------
----- do-----------------
67
This project is designed to develop adequate teacher training in home economics at the Taiwan Pro-
vincial Normal University. Advisory services have been provided under a contract with Pennsylvania
State University.
62-461
Vocational agricultural education-------------------------------------------------------------------------
Islandwide------------
----- do-----------------
714
This project involves training at the secondary school level, and development of a vocational agricul-
Defense support-------
55
tural teacher-training program in 1 or 2 colleges (the latter to be assisted by a U.S. university under a
69-539
contract).
Science education-----------------------------------------------------------------------------------------
-----do-- --------------
-----do-----------------
200
The purpose of this project is to develop science teaching at the secondary level and to provide support
Technical cooperation-
191
to scientific research facilities in selected colleges.
66-228
Oversea Chinese education--------------------------------------------------------------------------------
----- do-----------------
-----do-----------------
996
The purpose. of this project is to attract oversea Chinese students from southeast Asia to Taiwan for
higher education in order to prevent them from going to Communist China.
69-515
Education administration and development---------------------------------------------------------------
-----do-----------------
----- do-----------------
1.486
This is a project designed to provide overall educational advisory services, assistance in community
school dovalopmcnt, pport for an ^?ucatiou materials center and assistance in improvement of the
engineering college at Chang Kung University (under a contract with Purdue University).
72_452
Public administration improvement---------------------------------------------------- -----------------
-----do----------------
-----do----------------
256
This project provides the services of technicians and training programs for selected employees of Chi-
nese Government agencies in such fields as budget administration, financial analysis and statistics, and
92-001
taxation.
Communications media-------------------------------------------------------------------- --------------
-----do----------------
----- do----------------
465
This project is designed to help improve the production of audiovisual materials and the mass commu-
nications techniques used by local public information facilities, particularly in connection with economic
99-163
development.
Engineering services---------------------------------------------------------------------------------------
Taipei----------------
-----do----------------
2,410
This project is to provide general and consulting engineering services required for the general economic
Defense support-------
2,245
development of Taiwan, with special reference to the ICA aid program. The services are provided on
contract with J. G. White Engineering Corp.
99-466
General training-------------------------------------------------------------------------------------------
Islandwide------------
Technical cooperation-
73
This project includes various types of training, such as English language training for participants, and
short courses and workshops.
9"vror+ 5 .
CUSA admin, i_il'.?_at;'an ------------------------------------------------------------------ - _______________-
Taipei ----------------
----do----------------
13
This project covers the administrative and support costs of the Council for U.S. Aid (CUSA), which
is the Chinese Government counterpart of the ICA mission in Taipei.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
VIETNAM
Total economic and military aid through fiscal year 1959
[In thousands of dollars]
Economic (since beginning of ICA and predecessor programs)-------------------------------------- $964, 638
Military (programed since 1950) --------------------------------------------------------------- 496,265
Project
No.
Project title and description
Location
Function
Cost,
cumulative
through
fiscal year
1959
Accomplishments
Thousands
11-065
Improvement of agricultural education ------------
Blao------------------
Technical cooperation-
$536
The agricultural college was opened and began train-
This project was designed to assist the Govern-
ing students in December 1955. The first class of
ment of Vietnam in building and staffing an agri-
50 students was graduated in October 1958. Most
cultural college with a capacity of 400 to 600stu-
of the buildings and facilities needed for the college
dents. The purpose is to improve the agricultural
have been completed. Several Vietnamese who
practices of the country and to help develop a
have been sent abroad to study agriculture have
sound agricultural economy.
completed their tra' g and have joined the fac-
ulty of the college. The enrollment of the college
in 1958-59 was about 300. The college will need
some additional technical assistance, but the pri-
mary objectives of the project are nearing attain-
ment.
31-021
Highway and bridge construction-------------------
Saigon to Bien Hoa,
Defense support -------
48,353
The first accomplishment of this project, which
This project assists the Government of Vietnam
Ban Me Tbuot to
started in 1955, was to make temporary repairs and
in rehabilitating and modernizing its national
Nhu Trang, Pleiku
restore traffic on 75 farm-to-market roads totaling
highway system to enable military and civilian
to Qui Nhon.
approximately 375 miles. The next phase was the
traffic to move more efficiently and to service new
rebuilding of high-priority sections of the highway
settlements in the high plateau area. Better high-
system of the country by
an American contractor.
ways and bridges are essential for the security and
The work has been largely completed except for
economic development of the country.
the construction of bridges. A modem highway
department has been established in the Ministry
of Public Works and its employees are being trained
so that they will be able to maintain and develop
the highways of the country when ICA assistance
is terminated.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Project title and description
Location
Function
Cost,
cumulative
through
fiscal year
1959
Accomplishments
Thousands
77-080
Development of the National Institute of Adminis-
Saigon----------------
Technical cooperation-
$4,894
The National Institute of Administration was estab-
tration.
Defense support -------
982
bushed in 1955 and was expanded rapidly to include
Through a contract with Michigan State Uni-
a 3-year course, a night school, and a graduate
versity this project has assisted the Government of
school. Training programs have also been ex-
Vietnam in establishing and developing a Na-
tended in several Government departments. Some
tional Institute of Administration and in provid-
staff members and advanced students have been
ing police instruction. The purpose of the project
sent abroad for further training. Vietnamese Tan-
is to train civil servants and police officers and to
guage textbooks and teaching materials have been
provide research and advisory services to the Gov-
developed for many classes. Most of the classes are
ernment of Vietnam in order to introduce modern
now taught by Vietnamese professors. Members
administrative organization and methods in the
of the MSU group have conducted a number of sur-
Government and to improve financial and per-
veys of Government agencies and made recom-
sonnel procedures.
mendations for reorganizations. Many of these
recommendations have been adopted. Police in-
struction courses have also been established for the
national police, the civil guard, and the Vietnamese
Bureau of Investigation.
82-075
Resettlement and rehabilitation____________________
Nationwide -----------
Defense support -------
6,064
116,000 refugee families, with a total of more than
This project-the 2d phase of the refugee pro-
550,000 members, were cared for and resettled in
gram-assisted the Government of Vietnam in
South Vietnam under this project. The major em-
inn for and resettling the ref igeeess who fled from
car-
Communist domination in North Vietnam when
nlh acid of the program was Ch ifted A.a rapidly f#.c Poe.
Bible from emergency relief to permanent rehabili-
the country was partitioned under the Geneva
tation of the refugees. The refugees were settled in
agreement of July 1954. The goal of the project
more than 300 villages that were designed to become
was to assist the refugees in building new lives for
self-sustaining. Abandoned ricefields were re-
themselves in South Vietnam. It also helped to
stored; new land was cleared and leveled; irrigation
counteract the effect of Communist propaganda.
ditches, drainage canals, and roads were repaired
or built; and work animals, tools, seed, and fertilizer
were supplied to the refugee farmers. Fishermen,
tradesmen, and small businessmen were also re-
habilitated and equipped for their work. The
project was brought to a successful conclusion by
the end of 1957.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Cost,
cumulative
thro
lugh
fisca year
1959
Development of agricultural extension ser-vice
A
h
Technical cooperation.
Thousands
$469
ssists t
e Government of Vietnam in developing an extensive educational organization through which
l f
ili
Defense support-------
43
rura
am
es will be encouraged to apply practical scientific methods of agriculture and home economics.
Crop development--------------------------------------------------------------------- -------------------
Undertakes the continued improvement of food and forage crops, fruits and vegetables, sugarcane, pas-
ture and cover crops, fiber crops, medicinal and industrial crops. Imported varieties are introduced to
improve quality and to increase disease resistance and production.
Improvement of irrigation and water control_______________________________________________________________
Technical cooperation
Defense support-------
Technical cooperation
319
Assists the Government of Vietnam in developing an irrigation and water control system by improving
o
b
ildi
l
d
k
-
Defense support-------
128
r
u
ng cana
s,
i
es drains, gates, dams, and other structures. There is a large element of self-help,
e.g., the people, who will, directly benefit, donate their labor to the work of rehabilitation and construction.
This project is designed also to equip and upgrade the Government engineering services responsible for
such activities.
Land development ----------------------------------------------------------------------------------------
Supports a program of resettling 11,000 to 12,000 families from overpopulated areas on new lands or lands
abandoned during the war. This project will bring into cultivation land that is currently nonproductive,
and the resettlement of loyal Vietnamese will greatly improve the security and stability of areas of mar-
ginal loyalty.
Livestock development------------------------------------------------------------- --- --- -- -
T
i
Southern delta and
the high plateau.
Nationwide___________
Technical cooperation
556
o
ncrease the number and quality of livestock and poultry through (1) prompt control of diseases by
i
t
-
Defense support__
472
ve
er
nary services and mobile teams, (2) importation of improved breeds, and (3) the establishment of
breeding farms where farmers can study improved methods.
Improvement of agricultural economies and statistics______________________________________________________
Provides training to Vietnamese in statistical practices in order to help the Government of Vietnam
Agricultural Economies and Statistics Service become capable of making estimates of total acreage and
yield of major crops and forecasts for policy planning purposes.
Improvement of agricultural credit and cooperative organizations_______----------------------------------
This project is designed to support the National Agricultural Credit Office, which provides reasonable
credit to farmers and to develop a system of cooperative facilities for purchasing, processing, storing, and
marketing.
Fisheries development-------------------------------------------------------- - - ---- ------ ----
Inc
ea
li
i
Saigon----------------
Nationwide___________
Coastal areas__________
_____
----- do ----------------
70
r
ses po
t
cal and economic stability in sensitive coastal areas by encouraging more effective fish-
in
m
th
d
b
i
Defense support-------
1
281
21-223
g
e
o
s
y
mproving transportation and marketing techniques, by increasing fish production, and
by generally developing a national fishery industry.
Nong Son coal development-------------------------------------------------------- -- -
-
Nong Son_____________
,
22-087
22-108
n
esigned to exploit the coal resources of the Nong Son area for use by local industry and powerplants
plants
by providing mining equipment and gondola-type railway cars.
Telecommunications development___________________________________________________ __
Desi - t --
find to provide an effective, modern telecommunications system in Vietnam and to to establish
links with neighboring g countries.
Electric power development----- --------
P
id
h
Nationwide-__________
----- do ----------------
Technical cooperation_
Defense support_______
Technical cooperation
84
1,332
247
rov
es tec
nical assistance to the Government of Vietnam in establishing an efficient electric power
s
t
It
l
-
Defense support
848
ys
em.
a
so provides for the purchase of small electric generators for outlying districts.
Tan Mai wood panel plant----------------------------------------------------------- ------------------
P
vid
hi
Tan Mai______________
-------
----- do----------------
265
ro
es mac
nery and equipment for a new pressed wood panel plant, which will utilize scrap wood
as a raw material and thereby increase the economy of operation of the Tan Mai sawmill.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Poo
23-170
23-213
23-216
Industrial development center-------------------------------------------------------------- - - - - - -
Designed to stimulate and vitalize private industrial activity by providing loan capital and technical
advisory services for new or expanding small industries.
Sugar industry engineering survey-------------------------------------------------------------------------
Provides the contract services of a team of engineers who will perform all the engineering prerequisite
to the establishment of 3 modern sugar mills.
Cement plant engineering survey--------------------------------------------------------------------------
Provides contract services for the exploratory work needed for establishing a 160,000-ton-per-year ce-
ment plant. A long-range goal of this project is the reduction of foreign exchange requirements.
Expansion of rural-urban water supply--------------------------------------------------------------------
Assists in establishing a well drilling section in the Department of Public Works by training Viet-
namese technicians in the various phases of drilling, completing, and equipping water wells. Wells
have been constructed and pumps installed in many areas where the need for potable water was great.
Development of small industry----------------------------------------------------------------------------
Promotes the development of Vietnamese handicraft by providing technical and financial assistance
for the establishment of a handicraft development center and for the development of improved produc-
tion techniques and designs.
Development of tourism-----------------------------------------------------------------------------------
Assists the Government of Vietnam to develop a national tourist office which will play an active part
in expanding Vietnam's nascent tourist industry.
Rehabilitation and improvement of railway operations----------------------------------------------------
Helped the Government of Vietnam restore railway service from Saigon to the 17th parallel and now
provides advice and training in railroad management and shop and traffic operations.
Rehabilitation Assiststhe Vietnamese Government in (a) rehabilitating and developing its vast canal network, and
(b) restoring lighthouses and installing other navigational aids on the Saigon River.
Improvement and expansion ofaeronaiticalground facilities ----------------------------------------------
Provides technical assistance in air traffic control procedures to enable Vietnam to meet international
civil aviation standards. Navigational aids are being provided and installed, existing airfield runways
improved, and a heavy-duty 10,000-foot runway will be constructed at the Saigon (Tan Son Nhut) air-
port.
Health services development------------ ----------------------------------------------------------------
Facilitates the provision of basic health services to the people of Vietnam by helping establish village
health centers, organizing mobile district health teams to support and supervise village health workers,
and thus promoting an awareness of preventive medicine practices.
Expansion of medical education facilities _-____._______________________________-______--_ _________------
Designed to strengthen the teaching staff of the faculty of science of the University of Saigon and to
develop a medical center consisting of a basic science building and a 500-bed teaching hospital to serve
as the physical plant of the faculty of medicine.
Improvement of nursing and allied education______________________________________________________________
Assists the Government of Vietnam improve nursing and midwifery service by providing inservice
training and technical advisory services to the national schools of nursing and midwifery.
Expansion and improvement of technical-vocational education____________________________________________
Designed to develop a tecbnical-vocational education program by constructing and equipping provin-
Tay Hoa, Quang
Ngai, Thu Dan
Mot.
Ha-Tien --------------
Along the coastal
plain running from
Saigon north to the
17th parallel.
Southwestern
Vietnam.
Tan Son Nhut and
other airports.
Nationwide -----------
Saigon ----------------
Saigon, Hue, Can Tho.
Phu-Tho, Saigon,
V inh Long, Qui
Technical cooperation-
Defense support -------
----- do ----------------
Defense support -------
Technical cooperation-
Defense support ---_-_-
Technical cooperation-
Defense support -------
-----do --------- - -
Defense support-------
-----do -----------------
Technical cooperation-
Defense support --__-__
Technical cooperation-
Defense support-------
---- do----------------
Defense support -------
Cost,
cumulative
through
fiscal year
1959
Thousands
$54
6,540
270
160
105
546
1, 062
2,109
166
,805
654
6
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
72-172
72-174
79-081
92--006
92-165
eial schools and by providing preservice and inservice teaching training and other concurrent require-
ments of a modern technical-vocational school system.
Expansion and improvement of elementary education_____________________________________________________
Provides assistance in curriculum development as well as in establishing and equipping new classrooms.
There is a large element of self-help in this project.
Expansion and improvement of secondary education------------------------------------------------------
Designed to provide equipment for new classrooms, to strengthen the science curriculum by establishing
science laboratories, to train teachers in use of the equipment, and to develop a model demonstration
school for secondary-schoolteachers.
Expansion and improvement of teacher training and higher education_____________________________________
Provides for the improvement of curriculum and teaching methods as well as for instructional materials
and equlpm nt.
Scholarships for leadership training------------ -----------------------------------------------------------
Provides for graduates of secondary schools specialized training in the United States in fields which are
deficient at the university level in Vietnam.
Instructional materials development--- -------------------------------------------------------------------
Designed to assist the Government of Vietnam in writing and publishing basic textbooks for the public
schools, translating instructional materials in certain fields, and developing a national department of
publications.
rovement of municipal police and surete--------------------------------------------------------------
Im
Im
rovement
p
p
b
rit
l
d i
t
y
y
n
erna
secu
to strengthen the capability of the police force to maintain law, order, an
providing technical training and equipment.
Strengthening civil guard-------------------------- ------------------------------------------
Desianed to organize, train, and equip 204 civil guard companies in order to increase their efficiency
through improved mobility and better communications.
Establishment of inservice training------------------------------------------------------------------------
Supports an expanded training program for civil servants.
Modernization of accounting and auditing systems----------------------------------- --------------------
nd
ll
ti
h
on
ec
a
e co
t
Assists the Government of Vietnam to improve the assessment and collection of taxes,
analysis of budget, accounting and audit data, and the collection and dissemination of trade and business
information.
Establishment of bank examination and insurance system-------------------------------------------------
Provides technical assistance to improve banking policies and practices by developing a system of
inspection of local banks and by implementing a training program for local bank examiners.
Development of government supply system---------------------------------------------------------------
Designed to establish an autonomous Government of Vietnam agency to procure project-type com-
modities and provide related supply services.
Development of the National Institute of Statistics--------------------------------------------------------
Designed to develop a professional staff and work program which can provide the Government of Viet-
nam with basic statistics urgently needed for the planning of future programs and the evaluation of pres-
ent activities.
Public administration training--------------- --- --------------------------------------------------------
Assists in developing various sectors of public administration by providing U.S. and third-country
workshop and observation training.
Expansion of government information facilities------------------------------------------------------------
Assists the Government of Vietnam in the development and use of modern communications media.
Activities are aimed at developing institutions, staff, and facilities.
Establishment of national radio network- -----------------------------------------------------------
Undertakes toimprove Vietnam's radio facilities by (1) the creation of a network of small local medium
wave frequency stations; (2) improvement of the signal of the principal station at Saigon; and (3) the con-
struction of a 50-kilowatt medium frequency station at Hue.
Nhon, Tonrane,
My Tho, Long
Xuyen.
Nationwide -----------
Technical cooperation-
410
Defense support-------
197
Technical cooperation-
237
Defense support-------
423
Ban Me
Saigon
Technical cooperation-
1,341
,
Thuot, Tan-An,
Defense support -------
55
Vinh Long, Qul
Nbon, Phu-Tho.
------------------------
----- do----------------
254
Defense support-------
65
do ----------------
Nationwide___________
Saigon ----------------
-----do----------------
-----do----------------
-----do----------------
Technical cooperation
Defense support -----_
Technical cooperation
Defense support------
do----------------
76
Defense support-------
18
-----do----------------
Technical cooperation-
Defense support-------
Technical cooperation-
Defense support-------
Technical cooperation_
157
Defense support ---____
994
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
I
Project title and description
I
Location
I
Function
I Cost,
cumulative
through
fiscal year
1959
Accomplishments
61-103
Vocational education ------------------
-------------
This project, started in 1951, is designed to sup-
Various---------------
Defense support and
technical coopera-
Thousands
$6,033
Recently the number of vocational secondary schools
port the rehabilitation and improvement of
tion
was increased from 85 to 117. ICA aid has been
Philippine vocational schools and to strengthen
.
extended to 76 of the original 85 schools including 5
the vocational educational systems. The project
teacher training institutions. Instruction has been
emphasizes the training of teachers and school
greatly improved and physical plant has been
administrators. A contract with Stanford Uni-
versity covering the services of a team of 16 experts
42 agricultural secondary schools by supplying both
in agricultural, trade and industrial education
was begun in 1956 and will be completed in fiscal
equipment and instruction in the proper use of
equipment. There were 2,577 graduates in 1957
year 1960.
with marked demand for graduates by the large
agricultural estates and smaller rural communities.
Teaching programs in 34 schools have been sup.
Ported in the basic areas of aut omechanics
machine
,
shop, sheet metal, woodworking, and electricity.
Trade school graduates at the rate of 7,000 a year are
11-053
College of Agriculture and Central Experiment
Station.
Los Banos ------------
Technical cooperation-
2,330
taking their place in industry.
The following research and educational activities
This project, begun in 1952, has helped estab
were accomplished
]ish a research and higher education center capable
The professional staff has increased from 99 in
of providing training and investigation facilities
1952 to 247 In 1957. The college has supplied 85
for agricultural leaders, scientists
teachers
and
percent of the teachers in agriculture and over 90
,
,
farmers so that these men might make a greater
percent of the administrators in the 42 agricultural
contribution toward increased agricultural pro-
high schools.
duction. Beginning in 1954 technical assistance
The number of students increased from 1,000 In
has been supplied primarily through contract
ser
ic
f Co
l
1952 to 3,000, a maximum controlled by limited
registration
v
es o
rne
l University. The College of
Agriculture is now recognized as the leading insti-
.
Third-country training for southeast Asia was
tution of its kind in southeast Asia.
developed.
Accomplishments In the research field are nu-
merous. Improved varieties of rice have been
developed, 11 rust-resistant varieties of coffee have
b
PHILIPPINES
Total economic and military aid through fiscal year 1959
[In thousands of dollars]
Economic (since beginning of ICA and predecessor programs)-------------------------------------- $187, 317
Military (programed since 1950)--------------------------------------------------------------- 238, 257
een identified, ranges of safety for fungicidal soil
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
treatments have been established, young Filipino,
have been started on sound research projects after
advanced training in the United States.
31-024
Highway improvement_____________________________
Various ---------------
Defense support and
27,430
The entire 460 miles of roads in the Mindanac
This project provides technical assistance ,
technical coopera-
development program have been surveyed and
equipment, and commodity support to the Phil-
g
tion,
almost all plans have been completed. All but v
gi
Bureau of Public Highways in its program
of the 168 bridges included in the project have beer
of improving, extending, and maintaining the
designed. Construction has been completed on
highway system,
about 250 miles of road and is underway on an
additional 170 miles.
About 4;500 miles of the national highway system
have been brought up to the standard desired.
The training of Philippine personnel under this
project will enable the Philippine Government is
conduct its Bureau of Public Highways on an
efficient basis after the termination of ICA assist-
81-077
Community development___________________________
Manila----------------
Defense support and
1,255
ance.
A training school for barrio community development
This project provides direct assistance to the
technical coopera-
workers has been established. About 1,200 workers
office of the Presidential Assistant on Community
tion.
have been trained and are working in the barrios
Development, the agency which surveys local
conditions, formulates plans and coordinates all
giving guidance to 6,000 barrio councils covering
one-third of the country.
of the government agencies engaged in rural serv-
Inservice training has been given to all provincial
ices.
and municipal community development personnel
and to 56 third country participants.
The initial program of 4-day lay leadership insti.
tute sessions was completed with a total of 22,000
barrio lieutenants and council members having
participated.
Late in 1959, the Philippine Congress passed
several bills providing for increased autonomy for
local governments, including barrios. One im-
portant provision was the authority for local
governments to levy taxes which could be later
utilized in community development projects.
These laws mark a significant turning point in
political development. It is expected that sub-
stantial political power will be transferred from the
national government to the barrio as the unit of
local government.
Approved For Release 2003/10/16 : CIA-RDP91-00965ROO0300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Thousands
11-029
Agricultural extension -------------------------------------------------------------------------------------
Defense support.------
$2,183
Provides demonstration equipment, supplies, and technical assistance in organizing, equipping and
Technical cooperation-
------------
12-041
training personnel in the Bureau of Agricultural Extension in the areas of improved practices in farming,
homemaking, and rural youth work in order to increase and diversify agricultural production.
Water resources planning and development----------------------------------------------------------------
----- do-----------------
Defense support-------
12-051
Provides assistance in the collection, analysis, and publication of data concerning surface and ground-
water resources.
Soil conservation------------------------------------------------------------------------------------------
----- do-----------------
Technical cooperation-
12-097
Provides assistance to the Bureau of Soils in soil classification and erosion surveys, soil analysis, applica-
tion of conservation practices and fertilization experimentation.
Land tenure and development-----------------------------------------------------------------------------
----- do-----------------
Defense support-------
12-100
Provides demonstration commodities, educational material, and technical advice and assistance to the
following agencies involved in land tenure: Agricultural Tenancy Commission (ATC), Court of Agrarian
Relations (CAR), Land Tenure Administration (LTA), National Resettlement and Rehabilitation Ad-
ministration (NARRA).
Irrigation services -----------------------------------------------------------------------------------------
Technical cooperation-
Defense support-------
13-048
Provides technical assistance and construction and shop equipment in planning, design, construction,
operation and maintenance of gravity irrigation systems and commodity support and technical assistance
for the pump irrigation program of the Bureau of Public Works.
------------- ------- -
Crop development and diversification----------------------------------------- -
----- do-----------------
Technical cooperation-
-----do-----------------
13-110
;
Provides tr .ng, tech-cal assist^ c o^ ration materials, and research supplies to the B=eau of
Plant Industry in efforts to aid farmers d diversify production and increase farm yields.
Livestock breeding----------------------------------------------------------------------------------------
Nationwide----.------
-----do-----------------
14-030
Provides the Bureau of Animal Industry's livestock breeding programs with training services and com-
modities for equipping artificial insemination centers.
Agricultural economics------------------------------------------------------------------------------------
Manila----------------
-----do-----------------
14-098
A technician assists the Agricultural Economics Division to assist in the collecting and publishing of
agricultural statistics.
Agricultural credit and cooperatives-----------------------------------------------------------------------
----- do-----------------
Defense support-------
17-038
This project is designed to improve operating practices of rural credit institutions and cooperatives in
order to assist farmers in developing, processing, storing, and marketing agricultural produce. The pro-
ject provides technical assistance, contract services, and machinery and equipment for food processing and
storing.
Forestry management improvement--------------------------------------- --------------------
Technical cooperation-
-----do----------------
Provides demonstrational commodities, contract services, and technical assistance to the Bureau of
21-006
Forestry, DANR, in its efforts to improve forest product utilization, strengthen forest policies, and in-
crease the reforestation rate.
Nonmetallic minerals survey------------------------------------------------------------------------------
-- f
`~u~ -------------
a_ i
----------------------
1,22
6
I technician assists the Philippine Government in the investigation of nonmetallic mineral resources
and their utilization.
I
I
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Cost,
cumulative
through
fiscal year
1959
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Strategic mineral survey-----------------------------------------------------------------------------------
Provides training, technical assistance, and scientific laboratory and transportation equipment for the
conduct of geological surveys on strategic mineral resources including chromite, iron, nickel, cobalt,
Manila----------------
Defense support ----___
Defense
Technical cooperation-
copper, mercury, and manganese. -
Industrial development center --____ -----_ -----------------_-_--_------___--_-
Provides technical advice, contract services, and instructional materials to this important agency of the
Philippine Government which renders the following services to indigenous industry: financial invest-
ment, industrial training, industrial consultation and industrial information.
Industrial research (including Forest Products Institute)--------------------------------------------------
----- do----------------
-----do----------------
Defense support_______
250
Provides assistance to the Philippine Industrial Research and Training Center and supports industrial
Technical cooperation-
------------
research activities of the Forest Products Research Institute.
Port and harbor improvement-----------------------------------------------------------------------------
----- do----------------
Defense support -_-____
6, 754
This project provides assistance in the rehabilitation, expansion and improvement of the country's
Technical cooperation-
------------
harbors and port facilities, including harbor dredging; pier and wharf construction; and harbor protective
works.
Labor education center------------------------------------------------------------------------------------
----- do----------------
252
45-102
Provides participant and commodity assistance to the Labor Education Center of the University of the
Philippines in support of the center's workers' education program which is designed to develop demo-
cratic and responsible leadership in the Pnilippine trade union movement.
Labor productivity ----------------------------------------------------------------------------------------
This project provides assistance to the Department of Labor and the Industrial Development Center in
developing an effective program for raising productivity levels in industry in order to improve the earning
capacity and real income of the average worker and to raise management profits and reduce consumer
pprices.
vanpower development and utilization___________________________________________________________________
-----do----------------
----- do----------------
Li
rn
176
51-092
Provides technical assistance to the Department of Labor and the National Economic Council in the de-
velopment and implementation of programs related to manpower development and utilization.
Tuberculosis control---------------------------------------------------------------------------------------
Various---------------
Defense support and
51-108
This project supplies two mobile X-ray clinic units, complete with auxiliary equipment, film, and sup-
plies, for field use in the national tuberculosis control program.
Filaria control ---------------------------------------------------------------------------------------------
Nationwide---____--_-
technical coopera-
tion.
Technical cooperation-
18
52-014
This project seeks to determine the quantitative and geographical extent of filarfasis and to develop and
prove control methods for a nationwide filaria control program.
Water supply (wells and springs)-------------------------------------------------------------------------
Various---------
Defense support and
6,597 0
Provides technical and advisory services, piping and waterworks equipment for assisting the National
Waterworks and Sewerage Authority (NW SA) to develop water supplies by the construction of municipal
waterworks and the digging of deep wells and the improvement of springs in rural communities.
Health training --------------------------------------------------------------------------------------------
This project seeks to provide direct health training through participant activities, and to establish and
strengthen indigenous training institutions and training activities through community and advisory serv-
ices.
University of the Philippines------------------------------------------------------------------------------
This project contributes to the improvement of the University of the Philippines through the develop-
ment of administrative management procedures and strengthening its academic and instructional
programs.
General education-----------------------------------------------------------------------------------------
Provides technical and commodity assistance to the Bureau of Public Schools in order to improve the
quality of Philippine general education.
Police improvement ---------------------------------------------------------------------------------------
This project supports the development of the National Bureau of Investigation as the central service
and coordinating law enforcement agency of the Philippines.
Manila ---------------
----- do ----------------
----- do----------------
- --------------
technical coopera-
tion.
---- do----------------
----do----------------
---- do ----------------
I~P
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Cost,
cumulative
through
fiscal year
1959
Thousands
73-075
Civil service improvement---------------------------------------------------------------------------------
Manila________________
Technical cooperation-
$176
75-010
Provides technical assistance to the Bureau of Civil Service in its organizational, staffing, technical, and
administrative procedures in order to strengthen the civil service system.
Revenue administration improvement _?_________________-_____-____-__-_______________________.__________
----- do-----------------
-----do-----------------
75-066
Provides technical advisory assistance to the Bureau of Customs and the Bureau of Internal Revenue
which are the tax collection and revenue administration agencies of the Department of Finance.
Budgeting and accounting adviser_________________________________________________________________________
----- do.----------------
----- do-----------------
78-052
This project aims toward the modernization of budgeting, accounting, and auditing in order to form a
basis for the development of a national fiscal policy and the related cyclical national budget.
Statistical survey------------------------------------------------------------------------------------------
-----do-----------------
-----do-----------------
Provides technical assistance and participant training to Philippine agencies in support of statistical
surveys designed to supply accurate data on demographic and economic characteristics.
Census project ----------------------------------------------------------------------------------------------
Provides business machines and equipment to the Bureau of Census and Statistics for the undertaking
of the 1960 census of population and agriculture.
Public administration improvement_______________________________________________________________________
This project aims at improving the administration and operation of the Philippine Government by pro-
viding support commodities and technical advice and assistance to appropriate Philippine Government
agencies and by developing the local administrative resources conducive to improved government man-
agement.
National Media Production Center________________________________________________________________________
this project provides support to the National Media Production Center in its eddorts to disseminate
information concerning economic and social development.
Atomic energy training---- -------------------------------------------------------------------------------
Provides training in the use of atomic energy tools under the program to develop peaceful uses of atomic
energy sponsored by the United States.
-----do-----------------
----- do-----------------
Defense support_______
Technical cooperation-
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Project title and description
Location
Function
Cost,
cumulative
through
fiscal year
1959
Accomplishments
23-089
Gresik cement plant training-----------------------
Surabaya -------------
Technical cooperation-
Thousands
$783
This project was recently completed and the Indo-
nesians are now in control and able effectively to
To provide technical and management guidance
manage the cement factory, equipped with Ameri-
as well as oversea and on-the-job training for the
can machinery, which supplies 40 percent of Indo-
operation of the Gresik cement plant. The con-
nesian cement requirements. With the help of the
struction of the plant was financed by an Export-
ICA-financed training, the Indonesians have now
Import Bank loan.
advanced to the point where the Export-Import
Bank was able to approve a loan application to
do
307
finance a 3d kiln for this factory.
Under the guidance of American technicians and
46-024
Railroad workers' welfare services-------------------
Java------------------
-----------------
-----
with the help of American equipment, the supplies
To demonstrate advantages of producers coop-
of food and clothing distributed through the rail-
eratives and productivity of labor in expanding
way cooperatives has been vastly increased. 2 rice
output; to help non-Communist unions in raising
mills have been established and the output at
workers' standards of living.
existing clothing and shoe factories has been con-
d
2
351
siderably increased.
As a result of this project an institution has been
54-029
Medical education--------------------- ------------
Djakarta--------------
-----
o-----------------
,
established in Indonesia which is capable of making
Through means of a college contract and training
a noteworthy contribution to the pool of doctors in
of Indonesians in the United States, assistance was
that country. It is also better able to train instruc-
provided to improve teaching methods, curricu-
tors who can be used, in turn, to train additional
lums, administration, and laboratory techniques
at the leading Indonesian medical school.
doctors in other medical schools of the country.
One measure of the success of the project lies in the
increase of the number of doctors graduated, which
was raised from 30 in the year preceding the start of
the project to about 100 in 1959.
INDONESIA
Total economic and military aid through fiscal year 1959
[In thousands of dollars]
Economic (since beginning of ICA and predecessor programs)_______________________________________ $51, 785
------
_______
Military (programed since 1950) ________________ -------------------------- -----------
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
Cost,
No.
cumulative
through
fiscal year
1959
Agricultural extension
research
d
d
Tgousands
,
, an
e
ucation------------------------------------------------------------
The purposes are (1) to improve the already established agencies and institutions in the field of agricul-
ture so as to improve skills, stimulate production, and contribute to a higher standard of living, and (2)
to establish a complete agricultural college, with teaching and research facilities.
Land development and conservation_______________________________________________
The purpose is to devise and apply land use and conservation measures for obtaining optimum sustained
production from better land management. It includes training in the management, operation, and main-
tenance of machinery for clearing, preparation of new land, and providing essential commodities for estab-
lishing demonstration and training rogra
Expansion and modernization of marine andms.
inland fisheries -------------- _ _____ _ ___
The object is to increase fish catches by means of improved vessels and equipment, most of which are
manufactured locally; improve distribution and preservation by means of assistance in processing tech-
niques; and train administrators and technicians for key positions.
Mining operations -----------------------------------------------------------------------------------------
This project was designed to assist in the long-range effort to develop sources of minerals for Indonesia,
both for domestic consumption and export, and to insure that adequate production facilities are available,
including the technical manpower needed to staff the facilities and administrative organization concerned
Djakarta, Bogor, var-
ious islands.
Pasar Mingu, various
islands.
Kota Baru. Moluc-
cas, North Suma-
tra, Java.
Technical cooperation
and special assist-
ance.
-----do-----------------
----- do-----------------
$3.313
22-106
23-017
.
Diesel electrification___________________________________ ----------------------------------------------------
his is a program to install 99 diesel generators in 66 different localities throughout the islands.
Industrial development techniques ---------------------------------------------------- T i,is project is largely in support of technical institutes organized by the Ministry of Industry and of
the Ministry itself, the institutes to provide basic engineering facilities, services, and trained personnel
in implementing the Government's industrial program.
-----do-----------------
D karta, Bandung
j ,
/Djojakarta, and
other localities.
Development assist-
ance.
Technical assistani~e._-,
7,000
i, 49i
25-102
Engineering project has provided contract contracts ------------ - - ----- -- - -
Tins general survey ratt engineering services for to test the feasibility of spe-
cific projects proposed by the Government of f Indonesia for development of the countr
--do-----------------
28-073
y.
Training within industry ------- - - ------------------------- --------
---------------------- - -
s project was designed to train supervisors for Indonesian industry in order to improve productivity
and utilization of labor.
Djakarta, Bandung,
Semarang, Surabaja,
31-105
Highway construction and rehabilitation-----------------------------------------------------------
This project finances the rehabilitation, and
Java partial relocation, and construction of roads in Sumatra and
and other localities.
Djakarta, Sumatra----
Special assistance -----
Development assist-
7,455
545
39-103
Development of transportation facilities ----------------------- -______-_-------_----__-_
This project, largely consisting of participant training, is designed to improve the skill s of operational
ance.
Technical cooperation..
,
administrative, and executive personnel of transport facilities.
Labor leadership training-------------------------------------- ------------------------
This project is designed to train qualified labor leaders for Indonesian trade unions and for the Labor
Ministry of the Republic of Indonesia.
Various islands --------
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Public health education and administration----------------------------------------------------------------
Provides assistance to the Ministry of Health in the establishment of a rural health demonstration area
which will provide the staffing and training pattern for development of local health services in rural
Indonesia.
Medical education (Airlangga)-------------------------------------- ---------------------------------------
-----do---------------
To assist Indonesia in raising health standards and medical practices by means of the development of a
medical faculty at the University of Airlangga, Surabaja.
Vocational education teacher training---------------------------------------------- ---- -------------------
Various islands--_-----
-----do-----------------
Through a contract with Tuskegee Institute and through training of Indonesians in United States, this
project assists in the reorganization and expansion of vocational education on the junior high school level,
the upgrading of vocational teacher trainers, and demonstration of shop techniques.
Development university level staff-------------------------------------------------------------------------
To provide consultative advice to Indonesian University authorities, specialized training for selected
members of the university staff, and assistance in the development of staff at 2 universities. In addition,
assistance is included to provide a technical library on higher education for the Ministry of Education and
basic textbooks in English for institutions of higher education.
Public Dedicated tomthesimprovement, modernization, reorganization, and streamlining of the R.I. National
Djakarta, Bandung,
Djojakarta.
---do-----------------
Special assistance ------
3863
92-110
Police Force administration and operation.
Government administration training----------------------------------------------------------------------
Training officials at all levels of the Indonesian Government and the establishment of an Institute for
Public Administration to enable Indonesia to conduct its own inservice training.
Audio-visual technical support----------------------------------------------------------------------------
To assist the Indonesians in the development of the techniques necessary for the conduct of information
and education programs.
USOM office building-------------------------------------------------------------------------------------
Djakarta, Djojakarta,
Malang.
----- do-----------------
Technical cooperation-
----- do-----------------
Special assistance -----
400
92-115
This project involves the construction of an office building for US OM personnel.
Communications media training--------------------------------------------------------------------------
----- do. ----------------
Technical cooperation-
634
This project assists the Ministry of Information in the development of techniques for the planning,
programing, production, distribution, and evaluation of communications media.
Atoms for peace --------------------------------------------------------------------------------------------
To help train personnel needed to develop and staff atomic research center.
University of
Indonesia at
Bandung; Gadjab
Mada University
in Djojakarta.
-----do-----------------
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Total economic and military aid through fiscal year 1959
[In thousands of dollars]
Economic (since beginning of ICA and predecessor programs)-------------------------------------- $158, 031
Military (programed since 1950) --------------------------------------------------------------- 304,718
Project
No.
Project title and description
Location
Function
Cost,
cumulative
through
fiscal year
1959
Accomplishments
Thousauda
31-066
Friendship Highway--------------------------------
This 93-mile stretch of highway completed in
Northeast_____________
Defense support -------
$14,360
The highway has opened up the underdeveloped
and economically depressed northeast section of
July 1958 runs from Saraburi to Aorat and forms
Thailand to economic development by making the
a basic link in the important north-south road
markets and port of Bangkok accessible to the
system from Thailand's capital city of Bangkok
northeast at lower cost and in less time. More
to Nongkai on the Lao border. The road was
than 1,000 vehicles travel over the highway daily
built to American engineering standards under
compared with the few oxcarts that formerly used
the supervision of private U.S. contractors.
the rough, dry-weather road. Many acres of new
land are being cleared and cultivated with rice,
corr.
13-033
L
Thailand______________
Technical cooperation_
865
Through
livestock
breeding
co
pro
ock,
T
i
position
economic
developed
d~
improve
ve
forage cst
a
os
m
cattle
purebred breeding 263
292
keting facilities.
swine stock
been
imported
and their offspring are now being distributed.
From a deficiency, livestock has risen sufficiently
to permit the export in 1957 of $1300,000 of live-
stock and livestock products.' Tue 1957 export
earnings were more than the total U.S. contribu-
tion in dollars. In addition the development of a
sound livestock industry is of great significance to
the economically depressed northeast area of
Thailand (approximately a third of the nation).
Also, as a result of the greater number of cattle,
and hogs, a modern slaughterhouse and meat proc-
essing plant is being constructed by a private
I
I
I I
company.
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
13-032
13-033
14-034
21-038
21-153
22-155
22-187
29-139
31-089
Agriculture extension--------------------------------------------------------------------------------------
To assist the Government of Thailand to improve the economic status and living conditions of farm
families through the establishment of an Agricultural Extension Service.
Improvement of Kasetsart University---------------------------------------------------------------------
Through a contract with Oregon State University to strengthen the research and extension program of
Kasetsart University.
Agricultural resources use and conservation----------------------------------------------------------------
To teach proper land use, improve conservation practices and improve productivity of arable land.
Crop improvement -----------------------------------------------------------------------
To increase productivity in Thailand through the development of improved crop management practices
and utilization of marginal lands.
Livestock industry development--------------------------------------------------------------------------
To develop a comprehensive livestock improvement and disease control program through training in
production methods, and development of feed concentrates and marketing facilities.
Agriculture credit and marketing-------------------------------------------------------------------------
To improve the existing credit program and to establish diversification of marketing services.
Mining development--------------------------------------------------------------------------------------
To evaluate exploitable mineral deposits, discover new mines, encourage private investment through
the Department of Mines.
Airborne Geophysical Survey----------------------------------------------------------------------------
To provide for a survey to pinpoint areas to be prospected and explored for mineral deposits. Survey
will provide maps, cross-sections, and profiles of promising areas.
Bangkok interim power----------------------------------------------------------------------------------
To provide Bangkok with a 10,000 kilowatt diesel electric powerplant to meet power requirements until
permanent power is available in 1963 through Yan Hee Dam.
Power services and training--- ---------------------------------------------------------------------------
To provide electrical consulting, engineering services; to provide "on the job" and academic training; to
provide U.S. technical advice to improve Bangkok distribution services.
Industrial technical advisory services---------------------------------------------------------------------
To provide technical assistance in the establishment of the Industrial Finance Corporation.
General highway improvement equipment pool------------------------------------------------------------
This project, a subproject of the general highway improvement project, provides for the establishment
of a pool of major items of heavy construction equipment for lease or rental to privately owned local con-
tracting firms and proposes future funding for maintenance and replacements.
Korat-Nongkai Highway----------------------------------------------------------- ----------------------
This project, a subproject of general highway improvement, proposes reconstruction of approximately
360 kilometers of highway from Korat, northern terminus of the recently completed northeast highway,
to Nongkai on the Lao border in extreme northeastern Thailand.
Funds spent to date have been utilized for preliminary engineering and for construction of an access road
from the highway to the new Thai-Laos ferry slip and railhead facilities on the outskirts of Nongkai. No
commitment has been made on future years funding shown proposed below. If and when construction of
this project is approved, it will be written as a separate and distinct project under a separate project
number,
Thailand --------------
Northeast-------------
----- do-----------------
Thailand--------------
----- do-----------------
----- do-----------------
Northwest____________
Thailand--- -----------
Bangkok______________
----- do-----------------
Thailand--------------
Technical cooperation-
-----do-----------------
-----do-----------------
-----do-----------------
-----do-----------------
-----do-----------------
-----do-----------------
Defense support_______
-----do-----------------
Technical cooperation-
-----do-----------------
Cost,
cumulative
through
fiscal year
1959
Thousands
$1,083
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
Project
No.
Cost,
cumulative
through
fiscal year
1959
31-184
East-West Highway
Thousands
31-185
Engineering and construction of approximately 142 kilometers of highway between Pitsanuloke and
Lomsak in north central Thailand which will form a principal link in the development of an east-west road
system across the country.
Bangkok-Saraburl Highway
E
i
i
d
Northeast -------------
$11,387
37-050
ng
neer
ng an
construction of 107 kilometers of highway between Bangkok and Saraburi, the latter
city being the starting point of northeast highway.
Aeronautical ground services improvement
To de
elo
ff
i
Bangkok --------------
Technical cooperation
357
37-117
v
p an e
ic
ent system of domestic and international ground facilities to support air transport
within, to, and from Thailand.
Meteorological services improvement
i
Th
il
d'
T
Thailand --------------
-
Defense support ....---
Technicalcooperation
3,226
41
37-152
mprove
a
an
o
s National Weather Service System, to modernize weather facilities and scientific
equipment, to develop meteorological services required for safe operation of aviation.
Aviation overhaul and maintenance facility_______________________________________________________________
T
id
i
ft
i
Bangkok --------------
-
Defense support ..-----
Technicalcooperation
419
30
53-053
o prov
e an a
rcra
repa
r facility at Bangkok Airport for commercial and military use.
Local health devel
m
t
-
Defense support ---
3
580
op
en
---- -----------------------------------------------------------------
T
d
Thailand..........
.
----
Technical cooperation
,
3
208
54-016
o
evelop and demonstrate techniques for adequate public health services in rural Thailand through
self-help programs and promotion of sanitation practices.
Medical education------------- -----------------------------------------
To aid in th
h
t
bli
t
f
d
..
.
Chiengmal____________
-
-----do------
-
,
61-057
e es
a
s
men
o
a me
ical and nursing school in Chiengmai; to set standards of hospital
ration and medical esrc; to train nurecs a d docto s.
Technical institute----------------------------------------------------------------------------------------
To
rovide
s
d f
ti
l
i
Bangkok--------------
-
---------
-----do----------
61-162
p
a
oun
unc
ona
organ
zation for the Thailand Technical Institute in order to help increase
Thailand's supply of skilled workers and technicians.
Improvement of vocational education (agriculture)________________________________________________________
To assist vocati
l
i
lt
l
h
Thailand--------------
-------
----- do------------
64-186
ona
agr
cu
ura
sc
ools, to produce well-qualified teachers, community farm repair
shops and improve farm practices.
General education development---------------------------------------------------------------------------
To establish 12
d
ti
l
-----do-----------------
-----
-----do----------
66-021
uca
e
ona
centers in Thailand to raise levels of teaching and develop local education
support and control.
University teacher training--------------------------------------------------------------------------------
D
v
l
t
f
h
t
t
Bangkok--------------
-------
-----do-----
66-124
opmen
e
e
o
a
eac
er
raining program to produce capable teachers, supervisors, and school ad-
ministrators.
Improvement of science at Cbulalongkorn University_____________________________________________________
E
d
v
t
i
th
----- do-----------------
-------
-----do-------
71-160
n
ea
ors
o
mprove
e quality of engineering and science faculty members and to improve the staff
in organization, administration, and teaching methods.
Civil police administration--------------------------------------------------------------------
Tn strengthen the police f rce t.o -: ?: r,._ a.. _....:_...:_ ~__ __d _ ___________
.. l
Thailand------------ --
----------
Defense support ------- I
1,306
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
72-119
Bangkok-Thonburi city planning--------------------------------------------------------------------------
Bangkok______________
Technical cooperation-
520
To develop a plan for the metropolitan area and institutionalize city planning in Thailand through
land use and planning legislation.
Defense support_______
923
75-098
Modernization of government fiscal management__________________________________________________________
To improve fiscal and management practices of the government covering training of personnel in
budgeting, accounting, revenue management, and planning.
-----do----------------
814
75-146
Economic policy and planning----------------------------------------------------------------------------
Provides advice to government officials in matters of policy in economic development and financial
affairs.
-----do-----------------
77-063
Public Administration Institute at Thammasat University________________________________________________
Through academic and in-service training to improve quality and skins of government personnel.
-----do----------------
-----do-----------------
1,657
78-156
Government statistical service _____________________________________________________________________________
To institute improved government statistical practices on which economic policy and planning can be
based.
----- do-----------------
-----do-----------------
104
81-157
Community development---------------------------------------------------------------------------------
Provides a technician and training programs to help develop an inter-ministerial program in com-
munity development.
Thailand______________
----- do-----------------
92-065
Audiovisual services and training--------------------------------------------------------------------------
Development and operation of centralized communications media service and facilities to demonstrate
uses and values of media as instruments of public service.
Bangkok______________
-----do-----------------
98-085
Peaceful uses of atomic energy-----------------------------------------------------------------------------
To train personnel in the operation of a nuclear reactor which Thailand intends to procure with U.S.
financial assistance.
----- do-----------------
-----do-----------------
99-108
Ground water exploration---------------------------------------------------------------------------------
Thailand--------------
-----do-----------------
47
Provides for basic geological and ground water studies essential for the preparation of plans for the
development of ground water resources in northeast Thailand.
Defense support___.___
2,184
99-188
Generaltraining -----------------------------------------------------------------------------------------
To provide training for participants in the fields of agriculture administration, program planning, and
procurement, who will assist the Thai Government in the effective administration of the aid program to
Thailand.
----- do-----------------
110
Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
 Approved For Release 2003/10/16 : CIA-RDP91-00965R000300200003-3
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