AMENDMENT OF FOREIGN ASSISTANCE ACT OF 1961

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000300090023-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 23, 2016
• Document Release Date: March 12, 2014
• Sequence Number: 23
• Publication Date: August 1, 1964
• Content Type: OPEN SOURCE

? ( ?
Declassified and Approved For Release 2014/03/12 : CIA-RDP66B00403R000300090023-6 .
17132
CONGRESSIONAL RECORD? SENATE
Be it enacted by Via Renate end HOUSE
.cd Representatives of the Duited States at
America In Congress assembled. That the
Secretary of Commerce may accept reim-
bursement for providing meteorological and
hydrological work or services requested be
States, counties, cities, or other local gov-
ernment units. Reimbursement.may be so-
cipted for the total or partial coat of the work
or services furnished for the benefit of or in
cooperation with such governmental unite:
Provided. That the Secretary than require
reimbursement for the total direct and in-
direct costs of work or services so provided
which do not have value to the public at
/ems.
? Sec. 2. The Secretary of Commerce may re-
mere such payment in funds or property to
? be used In providing the work or eervices, or
both. All funds received in payment for work
or services authorized herein shall be de-
posited in a separate account In the Trese-
ttry and atm!l be available to pay the costa of
ouch work or services, for making refunds,
or for credittng appropriations from which
the cont of such work or services May have
been paid: Provided, That payment for in-
direct costs not paid from the appropriation
bearing the cont of the work or nervices sha/1
be depositee into the Treasury as mtscellane-
oes receipts.
Sec 3 The Secretary of Commerce shall
establish regulattons to insure that no com-
mitment for work or services that are deter-
mined to have no value to the public at large
are made to States, counties, cities, or other
local government unite where such work or
services can be obtained from private orga-
nizations and individuals who bare com-
petency in the meteorological sciences.
Mr. MANSFIELD Mr. President, that
concludes the call of the calendar. I
take this means of expressing my thanks
and appreciation to the distinguished
Senator from Arkansas, the chairman of
thelForeign Relations Conaraittee (Mr.
Puianucwri, for his patience and
ABIENDMENT OF FOREIGN
ANCE ACT OP 1961
The Senate resumed the consideration
of the' bill (H.R. 114M to amend further
the reigtance Act of 1961. as
and for other purposes.
rummoirr. Mr. President, I
ully conscious of the distaste of
lleagues for this misnamed
. misrepresented. and misunder-
stood egislation.
longer than I care to remember,
had the thanklesa duty of pre-
this bill td,the Senate. Today.
in Ti ew minutes remaining before the
adjourns, / shall make the pre-
sen on as short and painless as /can.
I havanot forgotterethe incredibly long
and arduous dehate.Which kept us in ses-
sion until Just before Christmas last year.
I cati?,ertly hope 1tW1 not go 'that long
? sacseearreare
. The Wining Persons Act provides author-
ity for the heads of executive departments
to continue to credit the pay accounts of
persona within the scope of the statute who
are miming In eaten. interned, captured, or
in a similar status and to Initiate, continue,
or modify alowaruses to dependents of per-
eons In a missing status. It also authorises
the shipment of household effects and the
transportation of dependents of persons In
a missing status to such locations as may be
approved by the head of the department con-
cerned. With this authority the depart-
ments can continue to protect the financial
interests of covered persons in a variety of
ways, such as by paying commercial insur-
ance premiums while the person is In a miss-
ing status. U allotments to dependents are
not in effect when the person was placed in
a missing category, the head of the depart-
ment can initiate an allotment to provide
for the dependents.
IMPLairaTlarr ow Tim enz.
The law now permits the continued credit-
ing of pay for persons who are "missing.
missing in action. Interned in a foreign coun-
try, captured by a hostile force, or besieged
by a hostile force." The Department of De-
fense considers that none of these destzip-
Mons amender!! Ste some categories of per-
sons who should be entitled to continued pay
and allowances, such as the two Air Force
captains who were held by the Soviet Union
after their B-47 was shot down over the
Barents Sea. To cover such persons the WI
would permit the continued crediting of pay
and allowances to a person "who Is detained
in a foreign country agairist his will."
The bill also restore, to the law a provision
for the filing and payment of income tax on
the 15th day of the third month following
termination of a missing status or after an
executor, administrator, or conservator of the
estate of a missing pennon has been appoint-
ed. This provision was in the unginel Miss-
ing Persons Act when it was approved in
1942, but it was not reemacted when the act
was reactivated by the Selective Service Act
of UM. Without this proniston. the Internal
Revenue Service has no express authority to
excuse a psmon who files a late income tax
return because he was imprisoned. In a for-
eign country and there la no express author-
ity for granting a refund if the 3-year statute
of insaltatkme for Sling such a refund expires
while the person lain prison.
YMCAS. nacre
Enactment of this bill will not inerease ex-
penditures by the Department of Defense, as
the Department is now applying' the ithng
Peretzle Act he' persons carrently carried as
erabotaze
LOWER PEND- d'OREILLE OR !CALM -
PEL ?TR/BE or irrirAzol
The bill (13.11.. 19973) to provide for the
disposition of judgment funds on deposit
to the credit of the Lower Pend &Oreille
Or Kalispel Tribe of Indians was con-
sidered, ordered to a third reading, read
the third time. and passed.
? -
AUTHORITr_ TO USE CERTAIN
FUNDS?FOR' SPECIAL blEl*CIRO.
LOGICAL SERVICES ? ?
The bill (13: 9/9) to authorizeihe Sec-
, rotary of Commente to utilize' funds' re-
, delved from State and local governinents
? for special metecrOlogical *Janice.* was'
ooneidetett altered to be engtoised for s
,? third readtneread4he thtrdttinle, and
passed, as follows:
A'
this
.?
this year.
r, ? ?
Soma years ago *true Minister Nelms
of India took the sitting Chinese Oreign
liginiSter Chou En441 to the site of At
new dant. "It is initliese templea;that
worship." said Nehrui And so indeediie
did. is does virtualig every other:164er
of thethird world, at lAsia, Africa, and
Latin erica. MAO. like Nehrttlim.
self, hisi done far, more than *middy
in the, pie of economic developteast:
they hat gone out of the temple to build
August' .1
dams and schools-and factories, to- begin
the vast enterprise of bringing their long '
quiescent lands into the dynamic life of
the 20th centurY.
Clearly, the aspiration to economic
development is one of the powerful moti-
vating forces in the world. It eras.
promise and substance and lope to the
nationalism of the emerging nations: It ,
has created new ferment in the world;
new hopes and new dangers which the;
advanced nations. Communist as weltate.C.:j
free, have tried to inftuence through
military, economic., and technical as.'
sistance programs of unprecedented
magnitude.
The aspirations of the Poor =trona;
are the occasion but not really the res,:
son for the American foreign aid pro-
gram. The reason for our aid?I think '
we must admit?lies in our own aspire-
tions rather than those of the red Is-
lents, or, more precisely, in the profound
effects which their aspirations have on -
our own prospects for peace and security. .1
Looked at in this way, foreign aid Is ?
not a special undertaking like an earth-
quake or famine relief program, but an;
Instrument of policy?a normal instru-
ment of policy like diplomacy, military
power or intelligence, each of which is:?;;,-.;
designed to achieve certain objectives
which cannot readily be obtained Ire'
other means. I should like in these brief
remarks to over a few suggestions as to
why foreign aid is a necessary hiEtr12,,.'r:
merit of American foreign policy, ar,to.,,_
the kind of instrument it is and the kind'.
of objectives it is likely to help attain. /
? The subject Is not one which the See
ate has neglected. Unlike certain o
programs?some of at least equal
portance and some of vastly greater mas
,nitude?foreigif 'aid :has inspired many'
hours of colloquy and debate, including"
3 full. weeks of most enlightening, I.
discussion only a few months ago. There, '
is therefore little to be said about for.;
eign aid'tliat has not been said before:"
but the case for the aid program 134au
less valid ? for being familiar. It is.,?inA`-?;
deed, as strong a case today as i1iwaii4
when General Marshall spoke at.;illar-
yard in 1947, and In some rest** the
prospects of our aid achieving its *Wee. .
thea are decidedly better today, after 17'
years' experience, than they were when 4
aid was. e new 'and untested inst,iiimeritt;
of policy. ..:
Of the 'bill itself little need be sal&
Its content Is 'spelled out in the repsrt.-
of the Foreign. Relations Committee and '
? kin szis ciSelanrillar. AU goals mitt.]
ediy new. -about this year's fozeignl,iild
;bill. is the amounts preposed to be.
aU-
.th?r*b1ch are greatly reduced*.
low the levels Of previous years. It raiki
be that the 'reductions have.,bem4045
great: It May be that the pregramM.
tw
:tunctioni roarer effectively on a
sell& lealear In any . case
proposed 'intleirization cammot
thee reduced without
aid preplan- is an instrument of Antal
can foreign Polk?. .., ..; ?
'The President has Indicated.
regards this year's foreign aid reagent
the. Minimum consistent with tboUl
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1964
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CONGRESSIONAL RECORD --'SENATE 17133
tenanee of a reasonably effective pro-
gram. In reducing the authorization
request to a total of $3.5 billion the ad-
ministration has accommodated itself to
the doubts and criticisms of the foreign
aid program which has been expressed
in the Congress in recent years. I
strongly recommend that the Senate now
respond by authorizing and then ap-
propriating the full amount approved by
the Foreign Relations Committee, which
is only slightly below the amount re-
quested by the President.
Before commenting on aid as a broad
instrument of American policy, I would
like to point to certain very important
improvements which have been made in
the aid program in response to the wishes
of Congress.
First. American economic and mili-
tary assistance, once quite diffuse, has
become highly concentrated. Two-
thirds of all development lending funds
in fiscal year 1965 will go to seven coun-
tries which have demonstrated their
ability to make effective use of develop-
ment capital: Chile, Colombia, Nigeria,
Turkey, Pakistan, India, and Tunisia.
Two-thirds of all military assistance will
go to 11 countries along the periphery of
the Soviet Union and Communist China.
More than four-fifths of supporting as-
sistance funds will go to four countries:
Vietnam, Korea, Laos, and Jordan. Se-
lectivity is high and becoming higher:
17 nations which once received economic
assistance from the United States no
longer receive it and another 14 countries
are approaching the point where they
will no longer need soft loans and grants.
Second. The disproportion between
American aid programs and those of
other prosperous free world nations is
being steadily reduced. In April 1963 the
Development Assistance Committee con-
cluded an agreement on liberalizing aid
terms which is having a constructive ef-
fect. France, which already contributes
a higher proportion of its gross national
produet to foreign aid than does the
United States, has indicated its inten-
tion of sustaining a high level of aid.
Britain and Canada have committed
themselves to larger aid programs on
liberalized lending terms. Germany's
aid program has grown progressively
larger and its lending terms more
generous.
, Third. The President's request for $3.5
billion for fiscal year 1965 is the second
smallest since the beginning of the Mar-
shall plan in 1948 and, in proportion to
the Nation's growing resources, this
year's request is by far the smallest bur-
den since foreign aid began. In 1949 the
amounts appropriated by Congress for
military and economic assistance were
11.5 percent of the Federal budget and 2
percent of the Nation's gross national
product. The current request is for less
than 4 percent of the budget and only
0.6 percent of the gross national product.
As the Secretary of State pointed out
in his statement before the Foreign Rela-
tions Committee, certain facts about for-
eign aid indicate that the program is
sound and markedly improved along
lines recommended by Congress; with
two-thirds of development lending going
to 7 countries and two-thirds of
military assistance going to 11 countries,
the program is highly concentrated;
three-fifths of all economic assistance is
now in the form of dollar repayable
loans; 80 percent of all foreign aid funds
is spent in the United States, with the
result that the adverse effect of foreign
aid on the Nation's balance-of-payments
is negligible; criteria of development
lending and self-help have been improved
with experience; allied countries are
mounting larger aid programs on more
liberal terms; the program is a diminish-
ing burden on the Nation's resources, the
smallest by far since foreign aid became
an established instrument of American
foreign policy at the end of World
War II.
Much of the controversy which has at-
tended the annual debate of Congress
on foreign aid is rooted, I suspect, in
our reluctance to regard foreign aid as
a normal instrument of American foreign
policy like diplomacy and military power.
Foreign aid has been described as every-
thing from a sacred mission to a crimi-
nal lunacy, but the Nation has yet to
form a consensus on the significance of
foreign aid as it has worked out in prac-
tice, that is to say, as a perfectly rational
tool of policy, no better or worse than
any other in moral terms, one which has
sometimes succeeded and sometimes
failed and one which should be used or
not used in any particular situation de-
pending upon the objectives at stake and
the prospects for success or failure under
the circumstances of the case.
Through the years we have treated aid
as something abnormal, presumably be-
cause it represents a use of national re-
sources for a purpose other than our own
direct consumption. This indeed is the
basis of virtually all criticism of the aid
program: that it diverts resources from
the immediate needs of our own society.
And so indeed it does, but the point which
is overlooked by the opponents of aid is
that it is only one of a number of national
programs which divert resources from
the needs of our people and in fact one
of the least costly.
I share the concern of my colleagues
who deplore the diversion of the Nation's
resources. This country has great and
growing problems ranging from public
transportation to public education which
are not now being solved and which can
only be solved by costly public programs.
The diversion of public funds to foreign
commitments is therefore a matter of
wholly justifiable regret. It is, however,
an impenetrable mystery to me why it is
that our fears of extravagance and waste
are so overwhelmingly focused on foreign
aid rather than on other, more costly
programs. It is an impenetrable mystery
to me why it is that in 1963 the Senate
authorized a $3.6 billion aid program only
after 3 weeks of rancorous debate and
immediately thereafter approved a space
budget of over $5 billion with only per-
functory debate. This, of course, is to
say nothing of our annual military budg-
ets of over $50 billion, which have re-
cently been approved with no more than
a few judicious queries by the Senators
from South Dakota [Mr. McGovErm]
and Wisconsin [Mr. NELsoN].
Unless it is believed that the defense
and space programs are models of econ-
omy while foreign aid is by some mystery
of its own nature scandalously extrava-
gant, we can only conclude that the op-
position to foreign aid is not primarily
economic but political, that it is not the
diversion and possible waste of national
resources that troubles the opponents of
aid but aid itself as an instrument of
national policy. The issue, it seems clear,
is not one of economy?if only because
there is relatively little to be wasted in
the foreign aid program and because so
much in fact is wasted elsewhere with-
out giving us undue concern?but rather
one of the purpose and effectiveness of
aid as an instrument of national policy.
The objective of American aid pro-
grams is to contribute to the develop-
ment of a world environment in which
free societies, notably our own, can sur-
vive and prosper in peace and reasonable
security. The apparently unanswered
question in our continuing public de-
bate about aid is not one of economy but
whether in fact our aid programs do con-
tribute to the realization of this objec-
tive. As Prof, Edward S. Mason of Har-
vard has put it:
If there Is some reasonable expectation
that economic development assistance can
make a significant contribution to the peace
and security of the West, it is surprising how
small a financial sacrifice the countries con-
cerned are willing to make to this end. ? ? *
If economic aid is considered to be an in-
strument of foreign policy, it seems really a
rather small instrument to deal with such
a very large problem.
Foreign aid must be judged by the
political criterion of whether it does or
does not contribute to the security of
the United States. I think it is clear
beyond any doubt that it has contributed
to our national security. Are we not
more secure, to take one example among
many, then we would otherwise be for
having helped democratic India to make
a modest success of her economic de-
velopment program? Is the Western
Hemisphere not more secure against
Communist subversion as a result of even
the limited accomplishments of the Al-
liance for Progress than it would be if
we had left our Latin American neigh-
bors to fend for themselves? Are our
interests in Africa not more secure for
having helped finance the United Na-
tions Congo operation than they would
be if we had left the Congo to chaos?
And who would question the effectiveness
of the Marshall plan not only in bol-
stering our security but in preventing
an irremediable disaster for the West?
It seems clear?
As Herbert Feis has put it--*
that as a nation, we invest, lend, give, in-
struct, rescue, and resuscitate needy peo-
ples in the belief that it will advantage our
national security and reputation as well as
our souls.
To acknowledge the importance and
validity of foreign aid as an instrument
of American foreign policy is not to as-
sert its supreme importance or universal
validity. It is in fact a limited instru-
ment and must be appreciated as such if
it is to be appreciated at all. It is a mod-
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;
17131 CONGRESSIONAL 'RECORD :-SENATE!
est element of our overall policy and a
-marginal factor in the economics of the
recipient countries. Its success or fail-
ure thus depends on a great deal more
than the amounts that are provided and
the efficiency with which they are dis-
pensed and put to use. Foreign aid is
inseparable from the political, commer-
cial, and defense policies of the donor
and from the overall defense and social
and economic development programs of
the recipient. Only if we view our aid
programs in their total context can we
free ourselves of both excessive hopes
and unwarranted disappointments.
We must not judge our aid program by
Impossible standards of achievement. It
is not going to eliminate poverty and un-
rest and instability in the world. Even
if it were magnified beyond any level
which now seems feasible, our aid would
not eliminate these problems because it is
simply beyond our means?material,
moral, and political?to elevate two-
thirds of the human race from poverty
to abundance.
But it does not follow from the fact
that we cannot solve a problem that we
should do nothing to try to alleviate it.
An imperfect instrument is better than
no instrument and modest progress is
patently better than no progress at all.
It is by the criterion of modest progress
that we must evaluate foreign aid. Just
as it makes no sense to think of disband-
ing our Armed Forces because they may
not always secure the Nation against
military dangers, it makes no sense to
talk of terminating our foreign aid pro-
gram because it serves only to alleviate
rather than resolve worldwide problems
of development and defense. Fire de-
partments do not prevent losses from
fires; the police do not prevent all crime;
but who would suggest that we do with-
out them? ?
Nor should we underestimate the im-
portance of modest progress. It is fre-
quently pointed out, for example, that
even if the development programs of the
poor nations are quite successful in, say,
the next 20 years, the disparity between
their living standards and those of the
advanced nations is likely to become
greater, not less, than it is now. This
is probably true, but it tells us nothing
of the probable effects of economic prog-
ress. A marked increase in the affluence
of an already affluent America is likely
to have only minor political consequen-
ces, but even small advances in diet and
housing and education in a poor country
can make a vital difference between hope
and despair, between stability and dis-
order, between democracy and dictator-
ship.
Thus?
As Herbert Fels puts it?
one may anticipate that the disparity in
human condition and experience will lessen,
although differences in money income will
grow greater.
Foreign aid, as I have suggested, can
contribute to the development of a secure
world environment for the free societies
only as part of a grand strategy for se-
curity and peace. No matter how well
conceived and administered, foreign aid
can be of little value if our diplomacy is
clumsy or if our defenses are neglected.
It can contribute little to our security if
the problems of our own country?prob-
lems of education and employment, of
slums and crime and the physical de-
terioration of our cities?are left unre-
solved to destroy the magnetism of our
own example as a free society. And
finally, if it is to contribute to our secu-
rity, foreign aid must be related not only
to our short-term strategy for the con-
tainment of Communist expansion, but
also to our long-term strategy for allevi-
atirig the cold war and developing peace-
ful and stable relations between the Com-
munist nations and the free nations.
In the context of the cold war the ob-
jective of our aid programs is to help
build stable and viable nations in Asia,
Africa, and Latin America, nations with
the capacity to resist Communist aggres-
sion and subversion and with reasonable
prospects for both democracy and eco-
nomic development. Our aim is not to
build nations which will be profusely
grateful to the United States, never an-
noy or displease us, and follow us loyally
on all international questions. If these
were our objectives, a more effective pro-
gram would be the immediate termina-
tion of our aid program and the use of
all its funds and a great deal more for the
training and equipment of mass armies
of occupation.
Ingratitude is disagreeable but not
dangerous and slavish compliance is a
characteristic for which a free society
has no use, either in itself or in its asso-
ciates. The fact remains, nonetheless,
that the United States should and must
expect the recipients of its aid to meet
certain basic criteria in their interna-
tional behavior. First and foremost, we
have the right to expect the recipients
of our aid to act vigorously and effec-
tively to preserve their own independence
against Communist incursions.
In addition, we have the right?as Feis
expresses it,?
to expect and ask that any nation to which
we give substantial help will not do the
United States serious harm; that it will stand
with us in any critical issues if it wishes
our help in the future.
Our foreign aid program must also be
an integral part of a global strategy of
peace. Its broad objective, I have sug-
gested, is to help create a world environ-
ment in which free and self-governing
societies can survive and prosper in peace
and reasonable security. Such a world
environment requires the abatement of
both the national and ideological differ-
ences that divide the Communist nations
from the free nations and the pro-
found social and economic disparities be-
tween the rich nations and the poor na-
tions. If our aid program is to be true
to its own objective, therefore, it must
be part of an overall strategy aimed at
both the development of the poor nations
and the relaxation of the cold war. Our
long-term objective must be the gradual
development of an attitude of mutual
toleration on the part of all countries
for all other countries. They may or may
not be friends, but they still can and
should cooperate to their respective ad-
vantages regardless of ideology and
wealth. '
August 1
Looked at in this way, our foreign aid
program can be described as an instru-
ment of policy designed in the short run
to help wage the cold war and in the long
run to help end it. As important as it
is in the immediate future to help the
less developed nations resist the incur-
sions of an expansive communism, it is
equally important that they be prepared
to play a constructive role in encouraging
the development of peaceful and stable
relations among the nuclear powers.
There is no contradiction between the
short-term goal of strengthening our po-
sition in the cold war through our aid
programs and the long-term goal of end-
ing the cold war. By drawing the less
developed countries into a free and de-
veloping concert of nations, we can fore-
close the Communist hope of gaining
control or predominant influence over
Asia, Africa, and Latin America just as
the Western Alliance has foreclosed
Communist ambitions in Europe. When
this is done, when the Communist pow-
ers, are confronted on every side with
virtually insuperable obstacles to expan-
sion, it will then be possible to offer them
an end of the cold war by making it clear
that we have no hostile designs against
them, that they can have secure and un-
troubled national existences within their
own frontiers so long as they remain
within their own frontiers, and that we
are prepared to welcome them as asso-
ciates in a peaceful and cooperative
community of nations.
The objective is admittedly ideal. It
may perhaps be unattainable but I do
not think it is unapproachable. An ob-
jective does not have to be within our
reach to be worth pursuing.
Ideals?
Said Carl Schuri?
are like stars; you will not succeed in touch-
ing them with your hands. But like the
seafaring man on the desert of waters, you
choose them as your guides, and following
them you will reach your destiny.
Mr. President, I ask unanimous con-
sent that there be printed at this point
In the RECORD a letter sent to me by David
Bell, the Administrator of the Agency for
International Development, and an at-
tached preliminary report on the
amount of unobliga.ted balances .as of
June 30, 1964, for the military and eco-
nomic assistance programs. The report
shows a total unutilized balance of $22
million as of June 30, 1964, the lowest
at the end of a fiscal year in the history
of the program.
There being no objection, the letter
and report were ordered to be printed in
the RECORD, as follows:
DEPARTMENT OF STATE,
AGENCY FOR INTERNATIONAL DEVELOPMENT,
Washington, D.C., July 8, 1964.
Hon. J. W. FIILBRIGHT,
Chairman, Commitee on Foreign Relations,
U.S. Senate, Washington, D.C.
DEAR MR. CHAIRMAN: You will be inter-
ested, I believe, in the attached preliminary
report showing the amount of unobligated-
unreserved balances, as of June 30, 1964, for
the military and economic programs under
title I of the Foreign Assistance Appropria-
tion Act of fiscal year 1964. These are not
final figures. They are based on "flash" re-
ports from our field missions and preclosing
trial balances in our Washington accounts.
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CONGRESSIONAL RECORD - SENATE
Later changes in these figures, however; are
not expected to be large.
You will note from the attached table that
$15.2 million of available military and eco-
nomic funds were unutilized as of June 30,
1964. In addition, $6.8 million of principal
repayments and interest had accrued in the
development loan accounts but were not
legally available for obligation during the
fiscal year. The total of $22 million is the
lowest unutilized balance at the end of a
fiscal year in the history of the program.
These low figures are evidence of the fact
that fiscal year 1964 was an unusual year in
terms of demands placed upon the foreign
assistance program. Normally we would ex-
pect to have an appreciable balance left in
the contingency fund. This year, however,
it was necessary to use the entire contin-
gency fund to meet exceptional requirements
for military aid and to deal with the changed
situation arising in Brazil this spring.
If there is any additional information that
we can furnish in this regard, please do not
hesitate to call.
Sincerely yours,
DAVID E. BELL.
MUTUAL DEFENSE AND DEVELOPMENT PROGRAMS-UNOBLIGATED/UNRESERVED
BALANCES I
Fiscal yearend balances compared, fiscal year 1964 2 and fiscal year 1963, as of
June 30, 1964
[In millions of dollars]
\
'
"
June 30, 1964, preliminary
June 30, 1963, actual,
Avail-
able
Not avail-
able for
oblige-
tion'
-
Total
Avail-
able
Not avail-
able for
oblige-
tion 3
Total
Economic assistance:
Development loans '
Affiance for Progress loans
Technical cooperation/development grants
Affiance TC/grants
Inter-American social and economic program_ _
Supporting assistance
International organizations
Contingency fund
Administrative expenses, AID
Administrative expenses, State
Survey of investment opportunities
American schools and hospitals abroad:
Regular program
Foreign currency program
Total, economic
Military assistance
Total, military and economic
(I)
(I)
6. 0
.1
. 2
4. 0
.8
1.3
. 5
1. 2
.1
4. 6
2. 2
'
4. 6
2. 2
6.0
.1
.2
4.0
.8
1.3
. 6
1. 2
. 1
96. 2
92.0
47.3
2.7
1.6
6.0
.3
127: 1
2. 0
(4)(4)
L 1
.1
24
120. 2
92.0
47.3
2.7
1.6
6. 0
. 3
127. 1
2.0
1. 1
.1
14.2
1.0
? 6.8
21.0
1.0
376.4
22.3
24
400.4
22.3
15.2
6.8
22.0
398.7
24
422. 7
I Excludes nonbudgetary accounts-investment guarantees, excess property revolving fund, and MAP credit
sales account.
Preliminary data based on preclosing trial balance.
Represents funds not legally available for obligation during the fiscal year.
4 Less than $50,000,000.
Mr. MORSE. Mr. President, will the
distinguished majority leader yield me
20 seconds?
Mr. MANSFIELD. I yield.
Mr. MORSE. Mr. President, because
of the schedule of the Senate, I shall
postpone until Monday my reply to the
speech of the distinguished Senator from
Arkansas, in which he supports the for-
eign aid program. I shall oppose the bill
and offer a series of amendments start-
ing on Monday.
PROGRESS OF LEGISLATION
Mr. MANSFIELD, Mr. President, it is
the intention of the leadership to move
shortly that the Senate adjourn until
12 o'clock noon on Monday next. Before
doing so, I should like to make the fol-
lowing statement:
Since the reconvening of the Senate
on July 20, after the Republican conven-
tion, the Senate has passed a number of
major bills, including a score of Presi-
dential recommendations. Most of these
bills, if not all, have been passed by bi-
partisan effort. Therefore, credit is due
both parties. Among the major achieve-
ments are the following:
An across-the-board increase for mili-
tary personnel, through the efforts of
Senators RUSSELL, SALTONSTALL, STENNIS,
and the other Members of this body, be-
cause, as I recall, the bill was passed
unanimously.
A bill to clarify the complicated dual
compensation laws, which was so capably
handled by the distinguished Senator
from Texas [Mr. YARBOROUGH] , and later
by the distinguished Senator from South
Carolina [Mr. JOHNSTON]. In this re-
spect, my distinguished colleague from
Montana [Mr. METCALF] and the distin-
guished Senator from Delaware [Mr.
WILLIAms] raised questions which helped
to sharpen the issue and, as a result, en-
abled the Senate to pass a better bill.
A bill to prohibit futures trading in
potatoes on commodity exchanges, which
was passed largely through the efforts of
the distinguished Senator from Maine
[Mr. Musical and the distinguished
Senator from Vermont [Mr. AIKEN] , the
senior Republican in this body.
The antipoverty bill, to which much
credit is due Senators MCNAMARA, JAVITS,
KEATING, FULBRIGHT, WILLIAMS of New
Jersey, and many other Senators, who
put their shoulders to the wheel in sup-
port of the measure.
A military construction bill, which was
cleared for White House action due pri-
marily to the intensive efforts of the dis-
tinguished Senator from Georgia [Mr.
RUSSELL], the distinguished Senator
17135
from- Mississippi [Mr. STENNIS] ; and the
ranking Republican on the Armed Serv-
ices Committee, the distinguished Sena-
tor from Massachusetts [Mr. SALTON-
STALL ] .
The appropriation bills cleared by this
body in the past 10 days were as follows:
The defense appropriation bill, under
the leadership of the distinguished Sena-
tor from Georgia [Mr. RUSSELL], and
ably assisted by the distinguished Sena-
tor from Mississippi [Mr. STENNIS] , the
distinguished Senator from Missouri
[Mr. SYMINGTON] , and the distinguished
Senator from Massachusetts [Mr. SAL-
TONSTALL ] ; the legislative appropriation
bill, under the managerial skill of the
distinguished Senator from Oklahoma
[Mr. MONRONEY ] , the distinguished
chairman of the Appropriations Com-
mittee [Mr. HAYDEN] , and the ranking
Republican, the distinguished Senator
from Massachusetts [Mr. SALTONSTALL ] ;
the District of Columbia appropriation
bill, which was passed yesterday and was
managed so superbly by the distin-
guished Senator from West Virginia [Mr.
BYRD] ; the conference report on the
Treasury-Post Office appropriation,
which was cleared for the President, and
was ably steered by the distinguished
Senator from Virginia [Mr. ROBERTSON] .
That bill, as the distinguished Senator
from Wyoming [Mr. SimPsoN] is aware,
contains an appropriation of $600,000 for
the minting of 45 million silver dollars.
This is good news for our States.
Also, a veterans housing bill to which
great credit should go to the 'distin-
guished Senator from Alabama [Mr.
SPARKMAN] , a bill supported by all Mem-
bers of the Senate.
The ratification of five important
treaties.
An extensive housing bill, through the
great efforts and skill of the distin-
guished Senator from Alabama [Mr.
SPARKMAN] and who was ably assisted
by the distinguished Senator from New
Jersey [Mr. WILLIAMS], the distinguished
Senator from Pennsylvania [Mr. CLARK],
the distinguished Senator from New
Hampshire [Mr. MCINTYRE] , the distin-
guished Senator from New York [Mr. ?
JAvIrs], and through the cooperation of
the distinguished Senator from Texas
[Mr. TowER], whose opposition was most
constructive and whose suggestions
helped make it possible to have a better
bill.
The establishment of a Commission
on Automation and Technology, so much
needed in our times, and for which the
Senate is indebted to the distinguished
Senator from Pennsylvania [Mr. CLARK],
the distinguished Senator from West
Virginia [Mr. RANDOLPH] , the distin-
guished Senator from Oregon [Mr.
MoEsE], and the distinguished Senator
from New York [Mr. JAvirs], the latter
two of whom submitted the original
resolution on automation.
A $2.3 billion highway authorization
bill, cleared largely through the efforts
of the distinguished Senator from West
Virginia [Mr. RANDOLPH] , the distin-
guished Senator from Michigan [Mr.
McNANAEA], and the ranking minority
member of the Committee on Public
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11136 CONGRESSIONAL RECORD ? SENATE
Works, the distinguished Senator from
Kentucky [Mr. COOPER].
A bill to implement the International
Coffee Agreement, which was passed
largely through the efforts of Senators
SMATHERS, A/KEN, and MORSE, but also
through the efforts of Senator DOUGLAS
and Senator CARLSON whose sincere and
constructive opposition contributed so
greatly in making in outstanding legis-
lative history and which put the State
Department on notice that the Senate
will watch this quota system most care-
fully especially as it relates to an in-,
crease in coffee prices.
The passage this morning of the Hill-
Burton Hospital Construction Act, under
the superb leadership of the distin-
guished Senator from Alabama, who is
a perennial in this respect.
The passage of the National Defense
Education Act, under the excellent and
outstanding floor managership of the
distinguished senior Senator from
Oregon [Mr. Moms], ably abetted and
supported by the distinguished Senator
from Vermont [Mr. PROUTY].
In praising the Senate as a whole and
attempting to single out some members
for their skill, effort, and cooperation in
connection with specific pieces of legisla-
tion, some will always be inadvertently
omitted from the list, but One who could
never be forgotten is the distinguished
minority leader [Mr. DIRKSEN] ; I must
say that the effort that brought about
these achievements could never have
been accomplished without the leader-
ship, counsel, spirit of cooperation, and
duty always manifested by him.
Next week, we hope to conclude action
on the independent offices bill, perhaps -
the public works bill, and also the agri-
cultural appropriations bill.
It is anticipated that we will bring up
legislation having to do with nurses
training, and also the interest equaliza-
tion bill.
Let me say to all Senators on both
sides of the aisle that we have made great
progress,
I wish to personally thank each Sena-
tor for his valuable contribution in as-
sisting the leadership to get these meas-
ures through so expeditiously.
Mr. MORSE. Mr. President, will the
Senator from Montana yield?
Mr. MANSFIELD. I yield.
Mr. MORSE. The majority leader, as
usual, has been very gracious in expres-
sing appreciation to those who have
helped to put through the legislative
program.
All Senators know?and I would have
the country know?that if it were not for
the able leadership of the majority
leader, his ability to handle men, his
deftness in carrying out a very difficult
assignment, none of these pieces of legis-
lation would have been enacted. The en-
tire Senate and the entire country owe
the Senator from Montana a great debt
of gratitude for his statesmanship.
Mr. MANSFIELD. I am indebted to
the Senator from Oregon for his kind re-
marks.
CO1FEE PRICES ALREADY GOING UP
AFTER ENACTMENT OF H.R. 8864,
THE INTERNATIONAL COe'rEE
AGREEMENT YESTERDAY
Mr. DOUGLAS. Mr. President, I ap-
preciate the gracious references of the
Senator from Montana about the efforts
of the Senator from Kansas and the Sen-
ator from Illinois in opposing the coffee
bill yesterday.
I especially appreciate his statement
that Senators should keep close watch on
what will happen after passage of the
bill.
Mr. President, I hold in My hand a
copy of the New York Times for this
morning, which on page ?32 gives the
movement of fixture prices in coffee on
Friday as compared with Thursday.
I should like to read two of these fu-
tures.
When the market closed on Thursday,
March futures for 1965, on B grade coffee
stood at 47.23 cents per pound. When
the market closed last night, after we
had passed the bill, it stood at 47.74 cents
per pound?an increase of 0.51 cents per
pound-, or approximately one-half cent.
May futures which had been 47.11
cents per pound on Thursday, after the
. market closed last night was 47.68 cents
per pound, or an increase of 0.57 cents
per pound, or slightly over one-half a,
cent.
Each cent of increase in the price of
coffee means from $30 to $35 million to
the American consumers. The increase
yesterday, which will probably be reflect-
ed in subsequent increases, amounted to
$15 to $17 million.
This is precisely what the Senator
from Kansas and the Senator from Illi-
nois had prophesied would happen. This-
increase was undoubtedly due to the pas-
sage of the bill yesterday. So far as I
know, there was no change in weather
forecasts for Brazil or for anywhere in
Latin America to justify any expectation
that the supply of coffee would diminish.
There was no information to indicate
that there had been any expected in-
crease in demand. What happened was
that, we had passed the coffee bill. The
news reached New York and the specula-
tors decided that this meant prices next
year would be higher than this year.
Mr. President, this is only the begin-
ning. This is merely the first installment
August 1, 1964
on the bill. This is merely the reaction
In the first hours after our action yes-
terday.
The Coffee Council is meeting now, as
I understand, in London, and will meet
again next week to make its final deci-
sion on quotas. It will be very interest-
ing to see what they do.
Yesterday's trading indicates that the
Senator from Kansas and the Senator
from Illinois were correct as to the effect
of this pact upon the future course of
coffee prices.
The chickens are coming home to
roost, but they are not coming home to
those who supported this measure; they
are coming home to the American people.
They are coming home to the families of
the plainsmen out West who drink their
cups of coffee to brace themselves against
the asperities of the weather. They are
coming home to the people who live in
the small towns and in the big cities.
They are coming home in the form of an
increased price of coffee.
It is my intention, in conformity with
the excellent admonition of the Senator
from Montana, to try to keep watch from
time to time on what happens to coffee
prices.
I can say that they began yesterday
afternoon, just as I expected them to
begin?with an increase.
Mr. SIMPSON. Mr. President, let me
say to the Senator from Illinois that I
concur with him in his remarks, and
I trust that a check on these coffee prices
Will be made and a record kept.
Mr. President, I rise to commend the
majority leader for his fairness, his un-
derstanding, and his generosity with
respect to the accomplishments of this
body in the past few weeks.
The majority leader is always fair and
just. He conducts himself with impec-
cable Integrity.
Hisremarks as to the work of the
minority leader and the cooperation
given on this side of the aisle are another
indication of that integrity, and I thank
him wholeheartedly.
Mr. MANS.ri.e;LD. Mr. President, I
thank the Senator from Wyoming most
sincerely for his comments.
ADJOURNMENT UNTIL MONDAY
Mr. MANSFIELD. Mr. President, if
there is no further business to come be-
fore the Senate, I move that the Senate
stand in adjournment until 12 o'clock
noon on Monday.
The motion was agreed to; and (at
12 o'clock and 8 minutes p.m.) the Sen-
ate adjourned until Monday, August 3,
1964, at 12 o'clock meridan.
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