For these three purposes of special assistance for which appropriations should be made annually-I request $300 million of new funds for fiscal year 1958. This sum includes $100 million to cover already anticipated requirements and $200 million for reserve and contingencies.

I should like to note especially one of these anticipated requirements. I refer to a program-malaria eradication-which will appear separately in the bill proposed to the Congress but will be financed from the special assistance fund.

Malaria is today the world's foremost health problem. Each year it attacks 200 million people, bringing death to 2 million and causing enormous suffering and economic loss in many areas. Today it is practicable to end this scourge in large areas of the world. I propose that the United States join with other nations and organizations which are already spending over $50 million a year on antimalaria activities. In 5 years these activities are expected to eradicate this disease.

In addition to the programs already discussed, $113 million is required for multilateral programs, the program for peaceful use of the atom, and the administration of the nonmilitary programs.

It is especially important to continue our contributions to United Nations and other international programs in the fields of technical cooperation, assistance to refugees and migrants and children's welfare. These contributions, augmented by the contributions of other nations, will enable these organizations to continue their valuable work. I believe participation of the United States in these endeavors should be continued at substantially the present level. I also request continuance of our program to assist escapees from Communist despotism.

Before the United Nations General Assembly in December 1953, the United States first offered to assist other countries and to share with them its technology in the peaceful application of atomic energy. Our mutual security programs for fiscal year 1958 include additional funds to implement this offer by providing assistance in financing research reactors, other equipment and services to the growing number of countries engaged in peaceful nuclear activities.

The total request for new funds for fiscal year 1958 is $3.865 billion, a sum $535 million less than estimated in my budget message last January. Nearly all of that reduction is made possible by savings in the military assistance program in an amount of $500 million, which, if carried over, can be used to meet program needs of fiscal year 1958. This sum is not deferred spending but a real saving. These savings are largely attributable to a reduction in spare parts requirements based on experience in the actual use of our equipment by the forces we are assisting, reduced needs resulting from better planning with our allies, and a continuing improvement of the administration of the program. I ask that this $500 million be carried over to fiscal year 1958.

We are all of us-seeking to cut the cost of government. All of us want taxes reduced when possible without injury to our country. There is, however, only one sound way for us to achieve a substantial tax reduction. That way is to succeed in waging peace, thereby

permitting a substantial cut in our heavy military expenditures. A substantial cut in these expenditures, in the face of present world conditions, would be foolhardy.

Similarly, and for the same reason, refusal to give adequate support now for our crucial mutual security programs could hardly be more ill-advised or ill-timed. It would risk not only the ultimate attainment of the tremendous military savings to which we all aspire; by encouraginging aggression and discouraging our friends, it would also risk forcing our own defense spending to a level far higher than it is today. In this kind of a gamble, American lives are just as much in the balance as American dollars.

The Congress must also weigh these facts:

First, a substantial cut in defense assistance would force a reduction in the strength of Allied forces. Thereby the risk of local Communist aggression would be increased. In order to forestall that, we would have to expand our own forces and station more of our youth abroad, or else supinely accept Communist expansion at the expense of the free world. I need hardly point out that such a procession of events would sooner or later force an increase in the number of young men inducted into our forces as well as a substantial increase in our own defense cost.

And, second, we simply cannot afford to blight the hopes of the newly independent peoples who turn to the free world for help in their struggle for economic survival. Should we do so, these peoples will perforce be driven toward Communist or other totalitarian solutions to their problems.

I know of no precise relation between economic well-being and responsible political development. Yet continued poverty and despair are conditions that will foredoom moderate political life in these countries. If the best that these free governments can offer their peoples is endless hopelessness and grinding poverty, then these governments will surely fall. Certain it is that our peace, our political freedom, and our prosperity would not long survive the sweep of Communist despotism over these new nations.

Failure to provide adequate funds to help these struggling nations move forward could well become tragically expensive to every citizen in our country.

Our mutual security programs have become, during the past 10 years, proven instruments of tremendous power for winning our struggle for peace. The proposals I have made for their improvement stem equally from the legislative and the executive branches. I urge the Congress to join with me in giving these programs the strength which the present and future security of our Republic requires. DWIGHT D. EISENHOWER.

The WHITE HOUSE, May 21, 1957.

APPENDIX II

TEXT OF S. 2130, A BILL TO AMEND FURTHER THE MUTUAL SECURITY ACT OF 1954, AS AMENDED, AND FOR OTHER PURPOSES, AS REFERRED TO THE COMMITTEE ON FOREIGN AFFAIRS 1

AN ACT

To amend further the Mutual Security Act of 1954, as amended,
and for other purposes.

1

Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the "Mutual Security Act of 4 1957".

5

SEC. 2. Title I, chapter 1, of the Mutual Security Act 6 of 1954, as amended, which relates to military assistance, is 7 further amended as follows:

8

(a) Amend section 103, which relates to authoriza9 tions, as follows:

10

(1) Strike out subsection (a) and substitute the fol11 lowing:

I

1Legislative history: A message from the President, transmitting proposals relative to the Mutual Security Programs (H. Doc. 182, 85th Cong.) (Appendix I above), was the basis for the bill S. 2130, introduced May 22, 1957, by Senators Green and Wiley. The bill, which was considered by the Senate Foreign Relations Committee, was reported by that committee with an amendment on June 7, 1957 (S. Rept. 417) and passed by the Senate on June 14, 1957. In the House of Representatives, prior to referral of the Senate bill, the legislation was considered in open session beginning May 22, by the Foreign Affairs Committee. On June 17, the bill S. 2130, as passed by the Senate, was referred to the House Committee on Foreign Affairs, which continued hearings on the legislation in executive sessions June 17, 18, 19, 20, 21, 24, 25, and 26, and marked up the bill June 28 and July 1, 1957. Upon completion of the markup, the bill was ordered favorably reported to the House with amendments on July 1 and the report was filed July 9 (H. Rept. 776). The bill passed the House, amended, on July 19 by a vote of 254 yeas, 154 nays, and 24 not voting. A conference was requested and conferees were appointed. On August 1, the Senate agreed to a conference and appointed conferees. The conferees met on August 7 and 8, reaching agreement. A conference report (H. Rept. 1042) was filed in the House August 8. The conference report was adopted in the Senate by voice vote on August 13 and in the House on August 14 by a vote of 226 yeas, 163 nays, and 43 not voting. The President approved the measure August 14, 1957, which became Public Law 85-141.

1

"(a) There is hereby authorized to be appropriated to

2 the President for use beginning in the fiscal year 1958 to

3 carry out the purposes of this chapter not to exceed $1,800,4 000,000, which shall remain available until expended. There 5 is hereby authorized to be appropriated to the President for

6

use beginning in the fiscal year 1959 to carry out the pur7 poses of this chapter not to exceed $1,500,000,000, which 8 shall remain available until expended."

9

10

(2) In subsection (b), strike out "and of section 124". (3) In subsection (c), add at the end thereof the follow11 ing new sentence: "When appropriations made pursuant to 12 this section are used to furnish military assistance on terms 13 of repayment within three years or earlier, dollar repayments, including dollar proceeds derived from the sale of 15 foreign currency received hereunder to any United States 16 Government agency or program, may be credited to the current applicable appropriation and shall be available until 18 expended for the purposes of military assistance on terms of

14

17

19

repayment, and, notwithstanding section 1415 of the Supple20 mental Appropriation Act, 1953, or any other provision of 21 law relating to the use of foreign currencies or other receipts

22 2

23

accruing to the United States, repayments in foreign cur

rency may be used for the purposes of this chapter: Pro24 vided, That the authority in this sentence shall apply to re

1 of 1954, as amended, which relates to defense support, is

2 further amended as follows:

3 (a) Amend section 131, which relates to general au4 thority, as follows:

5 (1) In subsection (a), before "designed" in the first 6 sentence, insert "specifically".

7

8 ing:

9

(2) Strike out subsection (b) and substitute the follow

"(b) There is hereby authorized to be appropriated to 10 the President for use beginning in the fiscal year 1958 to 11 carry out the purposes of this section not to exceed $800,12 000,000, which shall remain available until expended. There 13 is hereby authorized to be appropriated to the President for 14 use beginning in the fiscal year 1959 to carry out the purposes of this section not to exceed $710,000,000, which shall 16 remain available until expended."

15

17

(3) Strike out subsection (c), and redesignate subsec

18 tion "(d)" as subsection "(c)".

19

20

(4) Add a new subsection (d) as follows:

"(d) To the extent necessary to accomplish the purposes 21 of this section in Korea (1) assistance may be furnished 22 under this section without regard to the other provisions of 23 this title and (2) the authority provided in section 307 may 24 be exercised in furnishing assistance under subsection (a) of