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FOREIGN OPERATIONS APPROPRIATIONS

APPROPRIATIONS FOR 1964

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVOS

EIGHTY-EIGHTH CONGRESS

FIRST SESSION

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SUBCOMMITTEE ON FOREIGN OPERATIONS

APPROPRIATIONS
OTTO E. PASSMAN, Louisiana, hitro man
1. TAUGHAN GARY, Virginia

JOHN

RIDOTTAMEHzona
JOHN J. ROONEY, New York

GERALD HORDS Michigan
FILLIAM H. NATCHER, Kentucky

SILVIO O. CONTE, Massachusetts
GEORGE W. ANDREWS, Alabama

WILLIAM E. MINSHALL, Ohio
JOSEPH M. MONTOYA, New Mexico
JOHN J. FLYNT, JR., Georgia
TON STEED, Oklahoma 1

FRANCIS G, MERRILL, Staff Assistant to the Subcommittee
'Temporarily assigned

PART 4
ECONOMIC ASSISTANCE PROGRAM
Latin America
Near East and South Asia
Administrative Expenses
American Schools and Hospitals Abroad
Contingency Fund
International Organizations and Programs
Interregional Expenses
Surveys of Investment Opportunities
Testimony of Organizations and Interested Individuals

(PAGES 1133 TO 2729)

Printed for the use of the Committee on Appropriations

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1963

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COMMITTEE ON APPROPRIATIONS

CLARENCE CANNON, Missouri, Chairman
GEORGE H. MAHON, Texas

BEN F. JENSEN, Iowa
HARRY R. SHEPPARD, California

WALT HORAN, Washington
ALBERT THOMAS, Texas

GERALD R. FORD, JR., Michigan
MICHAEL J. KIRWAN, Ohio

HAROLD C. OSTERTAG, New York
JAMIE L. WHITTEN, Mississippi

FRANK T. BOW, Ohio
GEORGE W. ANDREWS, Alabama

CHARLES RAPER JONAS, North Carolina
JOHN J. ROONEY, New York

MELVIN R. LAIRD, Wisconsin
J. VAUGHAN GARY, Virginia

ELFORD A. CEDERBERG, Michigan
JOHN E. FOGARTY, Rhode Island

GLENARD P. LIPSCOMB, California
ROBERT L. F. SIKES, Florida

JOHN J. RHODES, Arizona
OTTO E. PASSMAN, Louisiana

JOHN R. PILLION, New York
JOE L. EVINS, Tennessee

WILLIAM E. MINSHALL, Ohio
JOHN F. SHELLEY, California

ROBERT H. MICHEL, Hlinois
EDWARD P. BOLAND, Massachusetts SILVIO O. CONTE, Massachusetts
WILLIAM H. NATCHER, Kentucky WILLIAM H. MILLIKEN, JR., Pennsylvanlı
DANIEL J. FLOOD, Pennsylvania

EARL WILSON, Indiana
WINFIELD K, DENTON, Indiana

ODIN LANGEN, Minnesota
TOM STEED, Oklahoma

WILLIAM HENRY HARRISON, Wyoming | MLER
JOSEPH M. MONTOYA, New Mexico BEN REIFEL, South Dakota
GEORGE E. SHIPLEY, Illinois

LOUIS C. WYMAN, New Hampshire
JOHN M. SLACK, JR., West Virginia
JOHN LESINSKI, Michigan
JOHN J. FLYNT, JR., Georgia
NEAL SMITH, Iowa
ROBERT N. GIAIMO, Connecticut
JULIA BUTLER HANSEN, Washington
EDWARD R. FINNEGAN, Minois
CHARLES S. JOELSON, New Jersey
JOSEPH P. ADDABBO, New York

KENNETH SPRANKLE, Clerk and Staf Director

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FOREIGN OPERATIONS APPROPRIATIONS FOR 1964

WEDNESDAY, JULY 17, 1963.

NEAR EAST AND SOUTH ASIA

WITNESLES

7

Carolus

WILLIAM S. GAUD, ASSISTANT ADMINISTRATOR, NEAR EAST SOUTH }

ASIA, AGENCY FOR INTERNATIONAL DEVELOPMENT
PHILLIPS TALBOT, ASSISTANT SECRETARY OF STATE FOR NEAR

EASTERN AND SOUTH ASIAN AFFAIRS
CHARLES F. FLINNER, OFFICE OF THE CONTROLLER
GUY A. LEE, DIRECTOR, REGIONAL OFFICE, BUREAU OF NEAR EAST-

SOUTH ASIAN AFFAIRS, STATE
ALFRED WHITE, DIRECTOR, OFFICE OF DEVELOPMENT PLANNING,

NEAR EAST-SOUTH ASIA REGION, AID

CLARENCE J. MARTIN, CONGRESSIONAL LIAISON STAFF, AID
DOSTITE CHARLES W. QUINN, JR., NEAR EAST, SOUTH ASIA, AND AFRICA

REGION, QASD/ISA
LEIGH M. MILLER, LEGISLATIVE PROGRAMS COORDINATOR, AID
STANLEY B. SCHEINMAN, LEGISLATIVE PROGRAMS COORDINA-
TION STAFF, AID

Wyoming

Mr. PASSMAN. The committee will come to order.
The members of this subcommittee are certainly sorry to learn of
the illness of Mr. Tennant. We hope his condition is not serious,
and that his illness will not be of long duration. We have much
respect and high regard for the controller.
The committee will take a brief recess.
(Short recess.)

CONTINUING PROJECTS FOR WHICH NO ADDITIONAL FUNDS ARE REQUESTED

Mr. Pagsman. The committee will come to order. I should like to ask Mr. Flinner, assistant to Mr. Tennant, to provide us a statement as to the number of projects in each area for which you are not requesting any funds to be used in fiscal year 1964, but which have unliquidated funds to their credit. It is true that some projects may be terminating, but also there are projects which are not terminating and will require funds in future pears. We request a listing on those also.

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(The information supplied follows:)

AGENCY FOR INTERNATIONAL DEVELOPMENT

Number of projects with unliquidated obligations as of Mar. 31, 1963, for which no

funds are being requested in fiscal year 1964

(Dollar amounts in thousands)

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Region

Unliqui

Unliqui

UrliquiNumber of dated obli- Number of dated obli- Number of dated obllprojects gations, projects gations projects gations

Mar.31, 1963

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INCREASE OF PROJECT FUNDING THROUGH PRESIDENTIAL DETERMINATION

Mr. PassMan. Presidential determinations are usually made, I suppose after the agency has justified to the President the need for Presi- home dential determination so that funds may be made available for a project?

Mr. GAUD. That is right, sir.

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ADDITIONAL FUNDS FOR LAOS

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Mr. PASSMAN. It would appear that on June 29, there was a Presidential determination to make additional funds available to Laos.

Could you tell us whether or not you funded this item, with which some of you are familiar, out of the regular Military Assistance Program, or out of some other account?

Mr. MILLER. There was a modification, was there not, an increase from $to $

Mr. PASSMAN. Maybe you.could term that action a "modification." would term it a "straight-out increase” at the end of the year, from - up to $

Out of what account were the funds obtained! Mr. MILLER. My recollection is, it was an increase of $

- out of 1963 funds.

Mr. PASSMAN. Out of military assistance, or some other account?

Mr. MILLER. I do not have the determination with me. I would have to check it for the record. I would be glad to provide the information. 1 (The information follows:)

The additional funds were made available from funds appropriated for military assistance.,

Mr. PASSMAN. We were told many times in previous years that we would not be blackmailed into providing aid." But it would appear that we are getting a bit soft on this point.

I have another document here, and I quote: We have been informed by the government that while it would prefer not to accept military assistance from Communist countries, it will do so if Western countries are not willing to provide adequate assistance.

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Pres: point in years. appespansion and that what is now at stake is the entire balance of power

That is either blackmail or Webster has changed the definition of
the word since I looked it up last.

We have with us today Mr. William S. Gaud, Assistant Adminis-
trator, under Mr. Bell, testifying for the Near East and south Asian
region, and also the Honorable Phillips Talbot, Assistant Secretary
of State for Near Eastern and South Asian Affairs, the same region
that is under Mr. Gaud's administration.
You gentlemen will have to tell me which one would like to testify
Mr. Gaud. Mr. Talbot, why do you not lead off?
Mr. PassMAN. All right, we shall first hear from Mr. Talbot.
STATEMENT OF ASSISTANT SECRETARY OF STATE FOR NEAR EASTERN AND

SOUTH ASIAN AFFAIRS
Mr. Talbot. Thank you very much.
I am glad to appear before you in support of the requested appro-
priations for the foreign assistance program, and to discuss with you

political and economic developments of the past year in the Near East TATION and south Asia.

Since we met a year ago this important part of the world has been Is touched by far-reaching and sometimes dramatic developments. Per

haps most significant was Red China's assault on India last October and India's determined resistance, assisted by the free world. In Iran the Shah's sweeping reform program is being pressed ahead and should substantially strengthen that crucial Soviet border area. In the Arab world Communist prestige and influence are at their lowest

The political and social movements in the area are generally forward and in the direction of those objectives that we and the nations of the region share. This favorable situation can be ascribed in part to the encouragement and assistance given by the people of the Western World, notably the United States. Without that assistance many of

the political developments would undoubtedly have been less favorable on." 11 or might have taken a different direction. must frankly recognize

that farge problems remain, problems of political instability, inadequate development planning, and intraregional animosities, and so forth—but the peoples of the area, by and large, now have new hopes, plans

, objectives, and a substantial part of the tools for constructive development

. Our patient but firm cooperative and dependable assistance can be a continuingly significant factor in determining whether the gains already made are to be consolidated and assured or are to

The Communist Chinese attack on India during the past year rehat we moves any doubt that south Asia is a prime target of Communist

im Asia and the political system that will dominate half of mankind. It is essential that the countries comprising the indivisible whole of this strategic area remain free and independent, that they are enabled to continue and succeed in their heroic efforts to maintain political freedom and to resist the inroads and pressures of a powerful force dedicated to the destruction of their way of life.

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