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A "major disaster" is any flood, drought, fire, hurricane, earthquake, storm, or other catastrophe which in the determination of the President is of sufficient severity and magnitude to warrant Federal assist

ance.

When, in his determination, conditions warrant the declaration of a major disaster, the President is authorized to call upon the services of such elements of the Federal Establishment as may be necessary to provide disaster assistance, to coordinate the disaster activities of Federal agencies, and to direct any Federal agency to perform certain types of service not authorized under such agency's normal authority. The Federal Disaster Act requires the Governor of a State to certify to the President the need for Federal assistance and provide assurance of the expenditure of a reasonable amount of the funds of the State and local governments in combating the effects of disaster. To insure that the Federal Government does not carry the entire burden of disaster relief, the Governor is required to certify that the total expenditures and obligations for disaster relief, in that disaster and all other disasters during the 12-month period preceding the request for assistance, meet or exceed an amount published in the Federal Register as the minimum for that State.

In accordance with authority granted the President in section 5(b) of Public Law 81-875 to exercise any power or authority conferred on him by the act through such Federal agency as he may designate the President has delegated responsibility for administration of the Federal disaster assistance program to the Office of Emergency Planning. Executive Orders 10427, 10737, and 11051 give the Director of the Office of Emergency Planning the authority to coordinate and direct the activities of Federal agencies in providing Federal disaster assistance to State and local governments and to administer funds for disaster relief made available by congressional appropriation to the President.

During calendar year 1963, 20 major disasters were declared in 17 States, Guam, and the Trust Territory of the Pacific Islands under the authority of Public Law 81-875. The President authorized allocations in the amount of $13,625,000 for use in these disasters. In addition, initial and supplemental allocations in the amount of $16,051,000 were made for eight disasters occurring in 1962. A total of $29,676,000 was allocated from the President's disaster fund in 1963. The allocations provided for performing protective work essential for the preservation of life and property, performing emergency health and sanitation measures, clearing debris and wreckage, and making emergency repairs and temporary replacement of essential public facilities of States and local governments damaged or destroyed in such major disasters, including provisions for temporary housing or emergency shelter.

In the spring, widespread flooding in the Appalachian area affected Georgia, Kentucky, Tennessee, Virginia, and West Virginia. The territory of Guam, which was severely damaged by Typhoon Karen in the fall of 1962, was struck a second time in April 1963. The second storm, Typhoon Olive, also affected the islands of Tinian, Rota, and Saipan in the Trust Territory of the Pacific Islands. both territories, the Office of Emergency Planning has assigned primary responsibility for the emergency repair and temporary replacement of damaged public facilities to the Department of the

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The Federal Disaster Assistance Regulations were amended during the year to improve procedures for the determination and certification of State and local expenditures for disaster relief. The amendment, by requiring that the Governor's certification of expenditures contain a breakdown of such expenditures into specified categories, will assist both the States and the Office of Emergency Planning in evaluating requests for Federal disaster assistance. At the time the regulations were amended, the Office of Emergency Planning also announced a modest upward adjustment for all States in the schedule of minimum State and local expenditures required to qualify for assistance under Public Law 875. Both the procedural change and the revised schedule of minimum expenditures will become effective on July 1, 1964.

Substantial gains were made during 1963 in the development and distribution of educational materials on the disaster program. General information pamphlets outlining the procedures and requirements for Federal disaster assistance were prepared for and distributed to Members of Congress, Governors, and local government officials. A procedural manual, the "OEP Regional Operating Guide-Natural Disaster Program," was prepared for Federal departments and agencies with disaster relief responsibilities; and "Natural Disaster Manual for State and Local Applicants" was made available to all State and local disaster offices.

There is attached a list showing Presidential declarations of major disasters and amounts authorized for allocation from the President's disaster fund for the period January 1 through December 31, 1963. Also attached is a report of the status of disaster relief funds as of December 31, 1963.

TABLE 1.—Disaster relief, Executive Office of the President, allocations authorized Jan. 1, 1963, through Dec. 31, 1963

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As of Dec. 31, 1963, appropriation 11X0039, disaster relief, Executive Office of the President, since inception of fund Aug. 31, 1951

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Small Business Administration: From President's fund..
Office of Emergency Planning:

From President's fund..

Net transfers to other Govern-
ment agencies_-

Returned to President's fund............

$5, 304, 864. 00
818, 247. 16
-863, 822. 08

5, 259, 289. 08 34, 030. 45

$186, 930, 389. 91

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Net.....

146, 039, 016. 23 181, 056, 743. 55

Total net allocations___.

Balance, President's fund, Dec. 31, 1963.......

Appropriation 11X0039(06) disaster relief, Executive Office

Net allocations for

allocations to OEP as of Dec. 31, 1963

Disaster relief to States prior to calendar year 1963.
Disaster relief to States in calendar year 1963_.

Total allocations to States___

Net transfers to other Government agencies-
Returned to President's fund..

Subtotal (net direct relief allocation).

For administrative expenses:

$2, 378, 184. 87

35, 727. 68

1, 565, 070. 92

25, 243, 256. 45 of the President,

$152, 049, 680. 96 29, 676, 000. 00

181, 725, 680. 96 -1, 272, 775. 55 -38, 392, 872. 65

142, 060, 032. 76

Net disbursements..

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1, 225, 725. 48

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MARCH 19, 1964.-Referred to the Committee on Foreign Affairs and ordered to be printed

To the Congress of the United States:

The most important ingredient in the development of a nation is neither the amount nor the nature of foreign assistance. It is the will and commitment of the government and people directly involved. To those nations which do commit themselves to progress under freedom, help from us and from others can provide the margin of difference between failure and success.

This is the heart of the matter.

The proposals contained in this message express our self-interest at the same time that they proclaim our national ideals. We will be laying up a harvest of woe for us and our children if we shrink from the task of grappling in the world community with poverty and ignorance. These are the grim recruiting sergeants of communism. They flourish wherever we falter. If we default on our obligations, communism will expand its ambitions.

That is the stern equation which dominates our age, and from which there can be no escape in logic or in honor.

NO WASTE, NO RETREAT

It is against our national interest to tolerate waste or inefficiency or extravagance in any of these programs. But it is equally repugnant to our national interest to retreat from our obligations and commitments while freedom remains under siege.

99-011-641

We recognize that the United States cannot and should not sustain the burden of these programs alone.

Other nations are needed in this enterprise of mutual help. Encouraging signs exist that the process of sharing the burden is steadily growing.

The best way for the United States to stimulate this growth and to broaden this partnership in freedom is to make our own example an incentive to our friends and allies.

We need the assurance of stability and progress in a world restless with many dangers and anxieties.

PRUDENT AND RESPONSIBLE PROGRAMS

In this program we do not seek to cover the whole world. Aid on a worldwide scale is no part of our purpose. We seek instead, through prudent and responsible programs, to help carefully selected countries whose survival in freedom is essential, and whose collapse would bring new opportunities for Communist expansion.

There are no easy victories in this campaign. But there can be sudden disasters. We cannot ask for a reprieve from responsibility while freedom is in danger. The vital interests of the United States require us to stay in the battle. We dare not desert.

Economic and military assistance, used at the right time and in the right way, can provide indispensable help to our foreign policy in enabling the United States to influence events instead of merely reacting to them. By committing a small part of our resources before crises actually occur, we reduce the danger and frequency of those crises.

Our foresight becomes a shield against misfortune.

The recommendations contained in this program for fiscal year 1965 are designed to move the aid program in that direction. They reflect views and experience of the Congress, of the executive branch, and of informed private citizens.

FIVE FUNDAMENTAL CONCEPTS FOR A SUCCESSFUL PROGRAM

First: The request for funds must be realistic.

For economic assistance, new authorizations of $917 million for fiscal 1965 are recommended. Specifically, I recommend $335 million for supporting assistance, $225 million for technical cooperation, $134 million for contributions to international organizations, $150 million for the President's contingency fund, and $73 million for administrative and miscellaneous expenses.

For military assistance, I recommend that the Congress provide a continuing authorization, subject to an annual review of each year's proposals by the authorizing committees in both Houses.

For fiscal 1965, I recommend no additional authorizations for the Alliance for Progress or for development lending assistance in Asia or Africa. Existing authorizations for these programs are adequate.

The appropriations recommended for fiscal 1965 total $1 billion for military assistance and $2.4 billion for economic assistance. In fiscal 1964, the initial request was $4.9 billion, later reduced to $4.5 billion. This fiscal year, the request of $3.4 billion is $1.1 billion less than last year's request, although about the same as was available last year, taking into consideration the unexpended balance from the year before.

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