CONGRESSIONAL RECORD --SENATE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000200140040-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: March 22, 2004
• Sequence Number: 40
• Content Type: MISC

 Approved For Release 2004/03/31 : CIA-RDP64B00346R000200140040-5
CONGRESSIONAL RECORD - SENATE
dollar-be utterly self-defeating. All of us
here are determined to follow the, only other
feasible course-not the unacceptable course
of restriction and isolation or deflation, but
the course of true cooperation-of liberal
payments and trade, of sharing the cost of
our NATO and Pacific defenses, of sharing
the cost of the free world's development aid,
and of working together on steps to greater
international stability, with other currencies
in addition to the dollar bearing an increas-
ing share of its central responsibilities.
We in the United States recognize that
our own obligation in this regard includes,
as a matter of first priority, taking action
to eliminate the deficit in our balance of
payments, and to do so without resorting
to deflation or retreating to isolation.
I have spoken frankly at this meeting be-
cause these two successful institutions, the
bank and the fund, have long flourished in
a spirit of candor, and have consistently
shown a reliable capacity to respond both
flexibly and effectively to new needs and new
challenges. This spirit of cooperation and
candor and initiative will., I know,` continue
in the future. For only in this spirit can we
hope to maintain a sturdy free-world finan-
cial system, with stable exchange rates, capa-
ble of supporting a growing flow of trade and
foreign investment, free from discrimina-
tions and restrictions.
I HAVE SPOKEN FRANKLY
I have spoken frankly, moreover, because
I believe the currenj strength of the dollar
enables us to speak frankly and with con-
fidence. Some sharing of responsibilities has
already been achieved.
Considerable progress in the balance of
our international accounts has been made.
A new agreement among 10 industrialized
countries to supplement the resources of
the Fund, with special borrowing arrange-
ments of up to $6 billion, has been con-
eluded, and implementing action will be
completed by the U.S. Congress within the
next few days or weeks.
Less formal arrangements between the
major trading countries have also been
evolved to cope with any potential strains
or shocks that might arise from a sudden
movement of capital. These arrangements,
I should add, contain within themselves
the possibility of wider and more general
application-and this country will always be
receptive to suggestions for expanding these
arrangements or otherwise improving the
operation and efficiency of the international
payments system. .
All of this is ground for confidence, for
making it increasingly clear that no extreme
or restrictive measures are needed, that spec-
ulation against the dollar is losing its allure
and that the economy of the United States
can continue to expand in a framework
based on the maintenance of free exchange
and the early achievement of equilibrium.
The expansion in our domestic economy,
while not all that we had hoped, has been
substantial-and, of equal importance, it has
been accompanied by price stability. Whole-
sale prices for industrial goods are actually
lower today than they were during the re-
cession months of 1961.
Nevertheless, I do not underestimate the
continuing challenge. which faces us all to-
gether. The very success of our efforts-the
very prosperity of those who have pros-
pered-imposes upon us special obligations
and special burdens. Centuries ago the es-
sayist, Burton referred with scorn to those
who were "possessed by their money" rather
than possessors of it. We who are meeting
here today do not intend to be mastered by
our money or by our monetary problems.
We intend to master them, with unity and
generosity-and we shall do so in the name
of freedom.
[From the New York Times, Sept. 21, 19621
T.KE BATTLE FOR FOREIGN AID
President Kennedy has properly declared
that it makes no sense at all for Congress-
men to oppose communism with oratory and
then to approve crippling cuts in the foreign
aid program, which is a central weapon in
the fight to preserve freedom. But last
night the House of Representatives ignored
the President's good advice and approved
the completely inadequate foreign aid funds
recommended by its Appropriations Commit-
tee. Today Moscow is rejoicing; and we can
only loop to the Senate to prevent the dam-
age which would result if this irresponsible
action of! the House were to be confirmed.
The chief argument advanced against the
foreign aid program is usually some variant
of the idea that we cannot afford it. The
President's request for $4,752 million is, how-
ever, less than 1 percent of the country's
total annual production. This is true even
now whet we have substantial unemployed
human and material resources. The United
States is' spending more than 10 times as
much money for military strength, and there
has been congressional pressurefor spending
even more in this area than the administra-
tion believes is wise. President Kennedy
pointed out last week that this year's space
budget is $5,400 million, almost a billion
dollars more than he asked for foreign aid.
But neither nuclear weapons nor space-
ships affect the poverty which is the chief
source of world instability and the chief
breeding' ground of communism. It is in-
comprehensible that this Nation can afford
what it f: spending for arms and for space
research purposes and cannot afford the
modest foreign aid request. In respect to
the alleged drain of the foreign aid program
on our balance of payments, the fact is that
almost 8Q percent of economic aid funds are
spent in this country. The great outflow of
American} tourists abroad each year is a far
larger burden on the U.S. balance-of-pay-
ments position than is foreign aid.
The United States alone cannot meet the
entire problem posed by the underdeveloped
nations, nor should it. Bilateral aid is
actually in many ways less desirable than
multilateral aid, and certainly the newly
prosperous nations of Western Europe and
Japan can and should contribute more to
meeting the need. But a drastic reduction
in our contributions to this purpose is not
the way' to persuade these nations to be
more generous on their own account.
The President's statement on the cuts by
the Houae Appropriations Committee was so
much to',the point that we reproduce it here:
"The drastic cut in foreign aid funds rec-
ommended by the House Appropriations
Committee poses a threat to free world
security.
It makes no sense at all to make speeches
against the spread of Communism, to de-
plore instability in Latin America and Asia,
to call fo:r an Increase in American prestige
and an initiative in Eastern Europe-and
then vote to cut back the Alliance for Prog-
ress, to hamper the Peace Corps, to.cut off
surplus food shipments to hungry Poles, to
repudiate our long-term commitments of
last year and to undermine the efforts of
those who are seeking to stave off chaos
and Corri]nunism in the 'most vital areas of
the world. Foreign aid has increasingly
meant trade, sales and jobs in this country,
and reform, progress and new hope in the
developing countries.
"The skid program Is just as important as
any military spending we do abroad. You
cannot separate guns from roads and schools
when it comes to resisting Communist sub-
version in underdeveloped countries. This is
a lesson we have learned clearly in South
Vietnam and elsewhere in southeast Asia.
To mutilate the aid program in this massive
fashion would be to damage the national
security of the United States.
"I cannot believe that those in both parties
who have consistently voted in the course
of three Administrations to fulfill this na-
tion's obligations of leadership will permit
this irresponsible action to go uncorrected."
PERSON-TO-PERSON FOREIGN AID
Mrs. NEU13ERGER. Mr. President, I
was interested in the remarks made by
the Senator from. Minnesota with respect
to the foreign aid program, which the
Congress is considering. It is apropos
at this time that I comment on a letter
I received recently, because it shows a
form of foreign aid in which many of us
can participate, not in the realm of bil-
lions of dollars.
A young :man named Jay Jacobson,
formerly on my office staff, became in-
terested in working for the Government
of Nyasaland. He and his wife Pat re-
cently went to that emerging country,
where Mr. Jacobson is helping to write
a constitution. He and Pat saw the need
for a real person-to-person aid for the
people of Nyasaland, and, as an extra-
curricular activity, they have been
teaching Mighsh to any who wanted to
learn and were interested. Be :wrote me
in desperation and said, "We have no
teaching material. We have no books."
My office got busy. We went to the
Library of Congress and got some of the
books which that institution gives out
every so often. We gathered books up
from here and there, from near and far,
and those books finally have arrived in
Nyasaland.
I think it is of interest to all of us who
are concerned about our brothers and
sisters in other countries to read some
remarks from this remarkable letter, as
to what a little bit of foreign aid did in
Nyasaland.
You could have pushed me over with the
well-known feather when the messenger
from the American consulate in Blantyre
strolled through my door in Zomba on Fri-
day with the package of books that you sent
on the 5th of July. Other than the fact that
it appears that diplomatic pooch crosses the
Atlantic in much the same manner as Fran-
cis Chichester, the books were a splenldld
surprise. I took them down to the school
that evening, and the students were ecstatic.
Many of them had never seen a hard-cover
book 'before, and the Agricultural Yearbooks
that you and Walt must have :found up in
the attic were a particular curiosity and
delight.
I add that when they were putting
these old yearbooks in the packet I de-
murred somewhat, but this statement
shows how desperate the people of
Nyasaland were for reading material.
The school was disrupted for about half
an hour while all the students came to see the
books. They couldn't believe that the books
were for there and I must have told them
a dozen times that these were gifts from
friends in the United States. Then, as they
crowded around. and flipped the pages of the
books and pamphlets and maps, I was cross-
examined on the contents and the meaning
of many words that they didn't understand.
Is Oregon like Nyasaland? Can people really
read books like this whenever they want to
in the United States?
Approved For Release 2004/03/31 : CIA-RDP64B00346R000200140040-5