THE U.S. FOREIGN ASSISTANCE PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70T00666R000200110027-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 12, 2016
• Document Release Date: August 23, 2002
• Sequence Number: 27
• Content Type: REPORT

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s?
The U.S. Foreign Assistance Fro ram
1. Essentially a static program over time, it has been declining
in the last 4 years. Over 20 years the program re resents about $115
billion. It required about 1.5 ercent of GNP in 1949, and about .5
let today. Program has run $5+ - 6+ billion a year since its ince_}tion,
Chart
Program is ,redominantly economic assistance although in the middle
,years, military assistance was almost equal to economic assistance.
2. Regional distribution of economic assistance has drastically
changed over the period of the program. Initially, almost wholly
assistance to Western Euroie, the program is now almost wholly centered
in the less developed countries (lam'e). Even among the LtC's there
have been precipitous changes. Latin American assistance from 1946-
1960 was more than doubled in 1961 and has been maintained at the
higher level. The Near East-South Asian expenditure has been the
most nearly constant of the group although it continued to increase
2. Far Eastern assistance which was high in the immediate
food, to business loans for private and state entrepreneurs
aftermath of the Marshall Plan has been constant to declining since
1957, but will probably increase with a continuing Viet Nazn resj onsi-
bility.
3. The range of the program is enoamous, frcm basic assistance
in education and technical training through provision of low cost
the nature of the program through time.
plea military and scientific programs. The second board indicates
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the use of this instrument which obtained before expansion of the "soft
wiridoo" approach.
a) increasing use of long-terra bankable approach but n
greater demand on local resources for assistance (food sold to
secure local funds which are then used for loans to local activitie
increasing emphasis on economic assistance as opposed
to military assistance,
b) increasing use of food in these grog the which 1m~;lies
d) rise in the share of "other" reflects increasing use
ernational and interregional approaches, but note that this
centage of the total.
with a
payment
There has been an increasing shift from grants to loans
Obligations under the program have changed sharply over the
ingly high rate of service on these loans. Interest
flected on this board exclude a value equivalent to $500
ion on Title I loans (i.e,, soft currency payments, loaned to the
e country
Where is the program by area and where does it go from here.
Europe, on a net basis is now
i.e., more repayments
than new loans. Loans are going to Southern tier except for some
military loans to create new communications systems.
b) The Latin American program moves around very precipitously
1965 looks this way, if the oil problem should get straightened out in
Argentina and Peru, they'd both be back in this picture. Colombia will
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ON-
be bad. in 1967. D.R. will probably stay in the picture. Mexico
is a transient based on large me-gym bank loans,
c) Near East and South Asian program will probably stay
tance
In both Pakistan an
ed by reductions in military assistance
d) Far East programs will probably return to the higher
levels of the Korean .r years and its aftermath, i ccision of aid
Nam might reduce the visible totals but not the actual
America,
nt levels,. Indian and Near Est increases in economic
n programs tend to shift widely a la Latin
iland and Laos to increase.
on assistance. Korea. and 'isi'w n may be expected to
a big bill in Zambia in 1966 with the potential
for a larger one in 1967, otherwise there'll be little change unless
Congo comes unhinged,
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United States Military and Economic Asssisst:ance
by Major Activity Average 1953-1957, 1961 and 1965 (Percent)
Average
1253-27
31.4
Title I
Other Eco
Assistance gr u
Credit Assistance
9.2
(7.0)
5.1
.8
l l 1265
35.4 37.1
22.0
(18-7)
15.4
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United States Military and gconcauic Assistance
by Basis of Obligation
Average 1953-1957.. 1961 and 1965 (Percent)
Average
1 1
11.9
36.8
4T.8
88.1
63.2
52.2
Billions of Dollars
Total loans 1946-65 32.7 Total reepments 1946-65 12.1
Total grants 1946-65 83.2
Principal 8.5
Interest 3.6
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I"- Y-0 C 4
United States Military and Economic Assistance Program:
Regional. Breakdowns Europe and Istin America
T
Mi., its
1953
4,131.7
2,866.8
422
1954
2,862.5
2,225.9
98.0
1955
1,997.0
1,541.2
361.4
31.8
1956
2,198.0
1,754.0
373.5
30.4
1957
1,861..7
1, 379.0
43.9
1958
926.6
424.7
47.9
1959
1 ,247.6
710.8
637.1
54.0
1,165.5
873.4
404.99
53-T
1961
876.8
571.2
3.0
}108./6
1962
702.0
425.8
132.0
1963
786.8
418.5
1,095.4
63.7
1964
714.9
3z't ? T
1,320.6
69.1
1965
X21.1
309.0
103.9
66.5
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BmzLl
Mexico
Chile
Dominican Republic
Venezuela
Spain
Yugoslavia
Netherlands
Latin. America
965
289.3 .
200.9 )
199.6
}
14+3.0)
70%
131.5
90.8
49.9
89.
grop=e 1965
109.0
102,1
50.2
49.3
Economic
6.4
68.7
100.9
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ftw
Begio
~d States Military and Economic Assistance Programt.
Breakdown: Far Eaet, Sear Eaet-South Asia, and Africa
Near East
Soup
Far East
Africa
Total
Military
Total.
ti13t
Total
Milit,
1953
743.5
300.4
1,124.4
722.7
39.7
--
1954
801.0
359.9
1,821.3
676.7
33-7
3.9
1955
948.4
277.8
1,598.2
533.2
37.9
0.9
1956
1,022-3
370.4
1,770.1
747.7
36.3
4.6
1957
1,260.9
365.7
1,584.8
614.5
92.9
5.2
1958
1,608.2
637.2
1,616.6
73+7.4
109.6
9.9
1959
1,622.6
506.9
1,672.6
746.8
191.9
6.9
1960
1,966.1
391.6
1,320.7
587.0
224-3
10.2
1961
1,762.8
245.9
1,339.5
562.7
472.2
11.6
1962
21250-1
264.9
1,310.3
597.3
519.3
23.9
430.1
1,589.2
6
59.7
8.8
5
26.6
1,957.7
288.9
1,299.5
6
615.6
y
, X
407.8
28.4
1965
2..o96.4
392.5
1,416.5
679.1
356.5
21.3
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India
Pakistan
Turkey
T.A.R.
Near East-South Asia 1965
T52.3 3
725
375.5}
349>3 )
334.0 84%
152.9
147.3
ft r Blat 1965
Total
Vietnam
Korea
Tain
Jaen
Thailand
481.0
erica 196
Total
Congo
Economic
270#8
186.6
6..=
w
64.8
41.3
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