FUNDING - OVERSEAS ACTIVITIES OF VOLUNTARY ORGANIZATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000500270086-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 19, 2016
• Document Release Date: August 8, 2006
• Sequence Number: 86
• Publication Date: May 9, 1968
• Content Type: MFR

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9 May 1968
MEMORANDUM FOR THE RECORD
SUBJECT: Funding - Overseas Activities of Voluntary Organizations
1. S. 2986 extends Public Law 480, the Agricultural Trade
Development and Assistance Act, for two years. Of specific interest
is a Committee amendment, adopted by the Senate, which broadens
the purposes for which foreign currencies can be used.
2. Specifically, 2 percentum of P. L. 480 foreign currency
sales in a country is to be used to assist international educational and
cultural exchange and to strengthen the resources of American schools,
colleges, universities, and other public and nonprofit private educational
agencies for international studies and research. The specific language is
set forth in Section 3 of S. 2986. The bill is now pending before the House
Agriculture and Forestry Committee.
3. This may be a useful method to pursue for funding the overseas
activities of voluntary organizations and may be profitably considered in
conjunction with the findings of the so-called Rusk Committee as well as
the two major activities which have been excluded from consideration by
the Rusk Committee.
Office Tf Legislative Counsel
Attachments:
Act
Report
Congressional Record Debate (3 April 1968)
Distribution:
Orig. - Subject
1 - John Kerry King (DD/I)
1 - Mr. Houston (OGC)
1 ?
OLC/LLM:cap (15 May 1968)
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_11),?`!, 1933 COT.\TC=SSIONAL 11:CORD ? SENATE
.11: is worthy to NC, e that the curator of
numismatics of 'the ilmithsonlan hes ;tinted
that the aequisition of the Lilly wouid
make the Smithsonian's collection tstcond to
none in the world. Professional numismatists
arc of felvat the Lilly collection
could never be reassembled and that its dis-
solution would be inost unfortureste.
In its report, the Treasury Department
slated that a 30-day delivery date would
tt.cm. e:stnt.ial in ;.,"ler to avoal the pc;-
of the estate's being able to retain
1.10 collection for a prolong,cd period and de-
liver it at stfme indefinite future date and
rid claim the eretitt.
The committee, -at; r study of the facts in
this matter, 'cite. e.: iheit the scquisition of
coha collection Is one that should he
scc,ffind(sbeci. CLAfl coneetion, as ECG
E,CC.011(.1 to none in the world, this
CC. 01 by the Smithsonffin institution
for di...I:lay to the public is 1-11.0t desirable.
;ilnce -Mc vnItie of the coin collection is given
(.t. a tax credit to the o:Late of 'sir. Tffilly, the
Government is in effect receiving the value
of the( so( n. collection in return for the tax
erscilt, waieh ist...ns in dollars, and cents that
aber, n loss in revenue, but at the same
Eine, h.touisition by the United States in
approsintely the same amount. The com-
mittee, therefore, strongly recommends that
the S. 2.100 be considered favorably.
,
PTJELIC VI 403'
l',IANS'2IELD. Mr. President, I ask;
-.1.-Janniotts consent that Lie Senate pro-
Li to the consideration of Calendar
No. 10-", S.
The PI--Z.E371DING OFFICER. The bill
be s'te,ted by title.
The LEGISIMTIvE CLERK. it b111 (S. 2986)
It exi-cnd Public Law 480, 83d Congress,
..6r 2 yc.ars, and for other purposes.
The P1E3IDING OFFICER,. Is there
,.'ojection to the present consideration of
:he bill?
There beinj; no objection, the Senate
Droceeded to adder the 1.);.11, which had
been reported from the Committee on
!eT.riculture ad :270restry with amend-
:ants, on pa 1, line 6, at:to.: "December
71," strike out "1070" and insert "1071";
.
ad on petite 2, line 11. aftcr the word
-;:nance" Is,;-.'. it "with not less than 2 per
of the total sales proceeds re-
d each in each country"; so as
be the bill road:
S. 2936
(tt( (0.../(t6 z)/ ihc Scoot;' anti House of
ft cc Unit.cd Sates of diner-
Cuuy ress essculblecl, That section 409
: the ::,,Jieultural Trade DegJelopment and
lstance Act of 1054, as amended, is
sehilecl by strikin out "December 31, 1968"
inaerting in lieu thers of "December 31,
Sic. 2. (a) Sc-.:C.::hri 10411:) of such Act is
by insts.ttlitt before the semicolon
',The cud thereiL Int,. following: ". Not less
n 5 per cent-an of the toital sales pro-
' sits received esgla year shall, if requested
the foreign co-an:1S,', be ci. 0 for voluntary
:re-tanns to court, a. populatlou aroveh".
di: Section 109(a ; of such Let anaended
,r striking out the word "aim" at the end
f clauses (7) and (8), cham8ng the period
the end of (.tuell subsection to a semi-
and addlim the following:
carryi(s.: oat volts]. tary programs to
popuhittsn growth."
? 3. Seetims 104(b) (2) of such Act is
(.:(ed to reed
r, fininee with not leu tlihn 2 per cen-
:: the lout: proCi2,2.-; received each
ni ce.mmy activities to assist in-
and to provide for the strengthening of the
rc:otirees of American schools, colleges, uni-
versities, and other public and nonprofit
private educational agencies for interna-
tional studies; and research under the pro-
ffiarns amffiarined by title VI of the National
Defense I:dues:ion Act, the Mutual Educa-
tional and Cultural Exchange Act of 1061,
the InternatIonai Lelucst(i011 Act of 1066, tile
1.1;ber Education Act of 156), the Elementary
and Secondary E(incation Act of 1005, the Na-
tional Found;;tion on the Arts and the Hu-
manities Act of 11.65, and the Public Broad-
casting Act of 1967;"
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that the amend-
ments be considered en bloc.
The P1I!7!,SIDINCI OFFICER. 'Without
objection, the amendments are consid-
ered and agreed to en bloc.
Mr. ELLENDER. Mr. President, this
bill, with the committee amendments,
would extend Public Law 480, 33d Con-
gress, for 3 years, with added emphasis
on family planning and educational
exchange.
Public Law 480 was enacted July 10,
1954. Its purpose at that time was to dis-
pose of surplus agricultural commodities
and provide aid to foreign countries that
needed our help. It was enacted on an
experimental basis for 3 years. It has
been extended from time to time, and in
1003 was substantially revised, the dis-
posal of surplus agricultural commodities
no r being specified as a purpose.
. ..ogram has worked well and the
committee received no objections to en-
actment of the pending bill. Hearings
were held on March 13, 14, and 15, and
the bill was reported by unanimous vote
of the committee.
From July 10, 1954, when Public Law
480 was approved through December 31,
1967, agreements have been signed for
the sale of commodities with a market
value of $12.4 billion?$18 billion Com-
modity Credit Corporation cost. Sales
Proceeds are used for economic and other
aid, loans, and other purposes. Dollar re-
ceipts by the United States totaled just
under $1.7 billion through June 30, 1967.
Donations tinder title II through De-
cember 31, 1967, have totaled $5.7 billion,
consisting of $3.1. billion through volun-
tary relief agencies and $2.6 billion
on a government-to-government basis or
through the world food program.
The United States has been very gen-
erous under this program; too generous.
A greater effort should be made to get
other nations to provide their fair share
of aid to needy countries.
Mr. MANSFIELD. Mr. President, I ask
unanimous consent to have printed in
the RECORD an excerpt from the report
(No. 1066), explaining the purposes of
the bill.
There being no objection, the excerpt
was ordered to be printed in the RECORD,
as follows:
COMBIITTEII CONSIDERATION
Tile committee held hearings on March 13,
14, and 15 on all of the bills before it on
this matter?S. 2.801, S. 2986, and :3. 3069;
and heard all WiLlle:i.les who desired to be
heard. S. 2891 and S. 3060 were simple 3-year
extensions of Public Law 680. S. 2986, as in-
troduced, provided for a 2-year extension
of Public Law 480 and contained provisions
emphasizing the need for population control
and mutual educational and cultural ex-
the prays,? has been ( t.d .
was little sentiment my.
elmnge iii it. Suggested .;?;, ?
and were fully considered by 1..0 c . ,
In addition to matters rah td it
hags, the committee gave seine
to the question of port charges
shipments. It was acivi::ed
of food donated under tltle II of Pffi
480 for distribution to needy pecple M.? (.
through American voluiltiry
directly to governments Cu: Ciner7enc:: r,
and child feeding programs, the Un17,1,,.'...?
pays the ocean shipping cods. The ua.,-?
States has been paying normal, shipms
lags in which certain port charges hat, e
hidden in the billing. In some cases the Y.--
cipient governments were obligated to y
these port charges but it has not
slble to identify these charr,;es and they Mot
not been paying them. The Agency for Imer-
national Development now proposes to ne-
gotiate with the 16 major recipient countries
a flat 10-percent payment of the total ship-
ping charges which represents the average
part of the ocean freight billing attributau:,-,
to port charges. The committee felt that this
proposal should be pursued assiduously.
Another matter brought to the commit-
tee's attention other than through the hear-
ings was a suggestion by Senator V,'illiams
of Delaware for the inclusion of a provision
somewhat similar to section 9 of S. 2502.
This would provide for the sale of surplus
foreign currencies to U.S. tourists at a dis-
count. It would be available only if tile tour-
ist confined his travel to countries where the
United States had surplus foreign currencies,
plus the travel necessary to reach such coun-
tries. The purpose of this provision would
be to alleviate thc balance-of-payments
problem without restricting our citizens' tra-
ditional right to travel freely. The committee
felt that the administrators of the program
should make every-effort to achieve tins ob-
jective. They have the authority now to do
so, and no further authority is needed. The
committee considered a mandatory direction
to the administrators on this point, but real-
izing the difficulties involved in obtaining
the host country's approval, possible effects
on the host country's currency, and other
problems involved in it, -the committee de-
cided not to make it a mandatory require-
ment. While not mandatory, it should be an
objective of the program administrators.
GENERAL BACKGROUND
Public Law 400, 83d Congress, was enacted
In 1954 as the Agricultural Trade Develop-
ment and Assistance Act of 1954. Its purpose
was to use agricultural commodities wbich
were surplus to our needs to provide aid to
friendly countries, promote trade, and ad-
vance our foreign policy interests. It has been
amended and extended molly times through
the years. In 1966 it was substantially re-
vised by the Food-for-Peace Act of 1906. At
that time our stocks of agricultural com-
codities were greatly reduced, and it was
recognized that the program was no longer
being used as a means of disposing usefully
of surplus commodities but was still needed
as a means of helping other countries.
Public Law 480 consists of four titles.
Title I provides for the sale of agricultural
commodities for foreign currencies or on
credit for dollars. Foreign currencies derived
from such sales are used for economic and
other aid to the host country, U.S. costs in
the host country, and other purposes agreed
upon by the two countries. Where sales are
for dollars on long-term credit, the purchaser
is able to sell the commodities and use the
money received for economic development
within the country pending payment to the
United States.
Title II provides for donations of agricul-
tural commodities to meet urgent relief re-
quirements, combat malnutrition, or promote
economic development.
ocinci, non an' e ? '-ane IBIC a ?'
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S:3SOS CONGRESSIOL \`112CORD ? SENAT:
Title IV contains definitions and general
provisions.
The PRESIDING OFFICER. The bill
is open to further amendment. If there
be no further amendment to be pro-
posed, the question is on the eii:rossinent
and third reading of the bill.
The bill was ordered to be engrossed
for a third reading, was read the third
time, and passed.
The title was amended, so as to read:
"A bill to extend Public Law 480, 83d
Congress, for 3 years, and for other pur-
poses."
EXECUTIVE SESSION
Mr. MANSFIELD. Mr. President, there
is a nomination at the desk which was
reported unanimously by the Committee
on the Judiciary earlier today and which
has been cleared on both sides. I ask
unanimous consent that the Senate go
into executive session to consider the
nomination.
The PRESIDING OFFICER. Without
objection, it is so ordered.
U.S. DISTRICT JUDGE FOR THE
NORTHERN DISTRICT OF MISSIS-
SIPPI
The bill clerk read the nomination
of William C. Keady, of Mississippi, to
be U.S. district judge for the northern
district of Mississippi.
The PRESIDING OFFICER. Without
objection, the nomination is confirmed.
Mr. MANSFMLD. I ask that the Presi-
dent be immediately notified of the con-
firmation of this nomination.
The PRESIDING OFFICER. Without
objection, it is so ordered.
EXECUTIVE MESSAGE REFERRED
The PRESIDING OFFICER laid be-
fore the Senate a message from the Pres-
ident of the United States submitting the
nomination of Bernard Norwood, of New
Jersey, to be a member of the U.S. Tariff
Commission, which was referred to the
Committee on Finance.
LEGISLATIVE SESSION
Mr. MANSFIELD. Mr. President, I ask
unanimous consent that the Senate re-
sume the consideration of legislative
business.
The PRESIDING OFFICER. Without
objection, it is so ordered.
ORDER OF BUSINESS
Mr. MANSFIELD. Mr. President, I
suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk
will call the roll.
The bill clerk proceeded to call the roll.
Mr. MANSFIELD. Mr. President, I ask
unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without
objection, it is so ordered.
PRESIDENT JC TINii ON ASKS NATION
TO JOIN TC, TIET,HER IN UNITED
PURPOSE Diik015,Z, NAB IN CHI-
CAGO
Mr. SMATIIERS. Mr. President, Pres-
ident Johnson aheed the National Asso-
ciation of 'Broadcasters in Chicago to
help him promote unity in America dur-
ing a time of challenge.
America faces deep divisions over
problems at home and over the war in
Vietnam. We are daily told of the cleav-
age between rich and poor, black and
white, hawk and dove.
But the problems we face as a Nation
are too complex, the challenges too great,
the issues too important, for America to
face them with a house divided.
President Johnson reminded the Na-
tional Association of Broadcasters that
they must use their enormous power to
help this Nation face the challenges of
the decade united. As the President told
them:
Where there is great power, there must
also be a great responsibility. This is true
for broadcasters just as it is true for Pres-
idents.
The mass media?which have the po-
tential to tie our Nation together?must
show the works of progress as well as
the problems, stress our basic unity of
purpose as well as the partisan divisions,
explain our accomplishments as well as
our challenges.
President Johnson has made the su-
preme sacrifice to end divisiveness at
home by taking the office of President
out of the political arena.
The broadcasting industry and the
people of America must make an equally
great effort to heal the wounds in our
body politic.
On our efforts?and our success?rests
the future well-being of our country.
I ask unanimous consent that the
President's speech to the National Asso-
ciation of Broadcasters in Chicago be
printed in the RECORD.
There being no objection, the speech
was ordered to be printed in the RECORD,
as follows:
REMARKS OF THE PRESIDENT BEFORE THE
NATIONAL ASSOCIATION OF BROADCASTERS,
CHICAGO, ILL., APRIL 1, 1968
Mayor Daley, Mr. Wasilewski, ladies and
gentlemen:
Some of you might have thought from
what I said last night that I had been taking
elocution lessons from Lowell Thomas. One
of my aides said this morning: "Things are
really getting confused around Washington,
Mr. President."
I said, "How is that?"
He said, "It looks to me like you are going
to the wrong convention in Chicago."
I said, "Well, what you all forgot was that
it is April Fool."
Once again we are entering the period of
national festivity which Henry Adams called
"the dance of democracy." At its best, that
can be a time of debate and enlightenment.
At its worst, it can be a period of frenzy. But
always it is a time when emotion threatens
to substitute for reason. Yet the basic hope of
a democracy is that somehow?amid all the
frenzy and all the emotion?in the end,
reason will prevail. Reason just must pre-
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TRANSMITTAL SLIP
DATE
15 May 1968
TO:
George
ROOM NO.
BUILDING
REMARKS:
This has a bearing on the funding
of non-Governmental activities
overseas and you might want to fold
it into your papers on our meeting
with as well as the
Rusk report.
send this on to
Perhaps we should
Larry Houston and
also.
LL
(
, --)
Pi ;4
FROM:
ROOM NO. BUILDING ....__ ArE)ofErN
1.....\
FORM NO.0111 REPLACES FORM 36-8
I FEB 55 L `t WHICH MAY BE USED.
(47)
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j SECRET
ROUTING AND RECORD SHEET
I
SUBJECT: (Optional)
FROM:
ADD/P
EXTENSION
NO.
DATE
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
INITIALS
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
RECEIVED
FORWARDED
1.
Mr. John M. Maury
Legislative Counsel
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