Note Volues include ocean freight and are at CCC cost except Sec. 402 and Borter which are at market value.

ICA programs accounted for 23 percent of the total of over $1.5 billion. This chart also indicates the extent to which Public Law 480 provides an outlet for United States surplus agricultural commodities, which makes somewhat more difficult disposal of similar commodities under section 402 of the Mutual Security Act.

I send you these as a matter of graphic illustration of what Mr. White said to you in his testimony.

STATEMENT SUBMITTED BY HON. JOHN B. HOLLISTER, DIRECTOR, ICA

IV. THIRD COUNTRY TRAINING AND TECHNICIANS

I wish to mention one matter relating to our technical cooperation programs. In its bilateral technical cooperation programs, ICA has generally concerned itself with efforts to stimulate the transfer of know-how from the United States to various less developed countries, to help them develop their resources and improve living conditions. However, ICA has found that in some cases this objective can be better accomplished by utilizing training facilities and technical personnel of third countries, rather than depending exclusively on the United States as a source of know-how.

Thus, for example, it has been found in some cases to be more economical and more effective to bring trainees from Middle Eastern countries to the American University at Beirut for training in engineering, agriculture, education, public administration, and public health work than to bring the same trainees to the United States. Similarly, in the Far East it has been found that training in the Philippines and Japan frequently offers advantages over training in the United States in terms of such factors as language, expense, and ready adaptability of advanced techniques. Also, in Latin America, use of advanced training facilities in a neighboring country, or of regional training courses conducted by United States and local technicians, has been found to be a highly valuable and economical technique. It is frequently possible to train several foreign technicians in this way for the cost of training one in the United States.

ICA has occasionally utilized third country technicians in its technical cooperation projects. In some highly specialized fields, the United States has no suitable technicians, and in others the supply of United States technicians is inadequate to meet the demand. ` ÏCA tries in such cases to have foreign technicians supplied (a) through the U. N. multilateral program, or (b) directly by the cooperating country, or (c) by the technicians' home country as its contribution to the overall mutual program. However, where these approaches are not practicable, for one reason or another, ICA is prepared to furnish such technicians usually under contract. This practice provides a valuable way in which the United States can help to bring the countries of each area of the free world into closer contact with one another.

Chairman RICHARDS. The committee stands adjourned until 2 o'clock.

(Whereupon, at 12:45 p. m., the hearing adjourned.)

AFTERNOON SESSION

The committee reconvened in room G-3, United States Capitol, at 2:10 p. m., Hon. James P. Richards (chairman) presiding.

Chairman RICHARDS. The committee will come to order, please. We will continue with amendments to the Mutual Security Act.

We have two Members of Congress with us who will testify and 1 or 2 others may be here before the hearing is concluded.

Is Mr. Ashley here of Ohio?

Mrs. BOLTON. No, Mr. Chairman.

Chairman RICHARDS. He is not here yet?
Mrs. BOLTON. No.

Chairman RICHARDS. Mr. Feighan, will you come forward.

We are glad to have with us our honorable colleague, Mr. Feighan of Ohio.

Will you proceed, Mr. Feighan, please.

STATEMENT OF HON. MICHAEL A. FEIGHAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO

Mr. FEIGHAN. Thank you, Mr. Chairman, and members of the committee. I appreciate this opportunity to appear before you in connection with the pending legislation on the mutual security program, in order to focus attention on the serious breach in free world security made possible by the misuse of public funds authorized under Public Law 778, 83d Congress.

It seems ironic, but I assure you, nevertheless true, that through the very program established to stem the evil tide of Russian communism, public funds are diverted to an activity which provides an open door for the tyrants in the Moscow Kremlin to freely distribute their agents throughout the Western Hemisphere and into many other areas of the free world.

I refer to the misuse of public funds by the United States escapee program in providing ocean transportation costs and other benefits to so-called White Russians living in Communist-occupied China who are moving into some 30 countries of the free world and into practically every nation of the Western Hemisphere. These so-called White Russians are moved from Communist-occupied China through Hong Kong and into the free world without any security investigation being made on them whatsoever.

The International Cooperation Administration Escapee Program Section in a communication to the House Committee on the Judiciary openly admits that no security investigation in the field is made on these so-called White Russians because such an investigation is impossible.

Despite the fact that no security investigation is possible on these White Russians, United States public funds are used to make possible their movement to and entry into the countries of the free world.

During October and November of 1955 in the course of an inspection trip to Asia, on behalf of the House Committee on the Judiciary, I uncovered some astounding facts in connection with the misuse of United States public funds on these so-called White Russians.

To begin with, the United States security officers in the Far East confidentially advised me that they would have no part in the highly questionable program for White Russians residing in Communistoccupied China because they considered such a program as alien to the security and well-being of the American people.

I use the word "confidentially" because these security officers did not want to be quoted because of the possible consequences resulting from action that might be taken by higher authority.

These same security officers advised me that the United States Government did not in any one single case give a security clearance to these so-called White Russians and the only service provided in connection with the movement of the people from Red China was to check their names against a card index file that was both incomplete and obsolete, being based largely on information dating back to 1948. No thinking person would consider this name check against file cards that were both incomplete and outdated as equivalent to a security clearance based on reasonable standards as required by section 405 (a) of Public Law 778, 83d Congress.

The United States security officers with whom I discussed this matter in the Far East took the position that no security clearance in accordance with reasonable standards had been afforded any of the so-called White Russians living in Red China.

Since my return from the inspection trip in Asia I have made further inquiries on the extent to which our security agencies have been involved in this matter and am convinced none of them have ever given a security clearance to so-called White Russians residing in Red China.

Accordingly the responsibility for any security clearance of these so-called White Russians rests solely with the escapee program of the International Cooperation Administration, up to April 1, 1956, when the program, as you know, was transferred to the Department of State.

Now, the self-evident danger which arises from the fact that no security investigation is made on these so-called White Russians residing in Red China, and no United States security agency has ever given a security clearance to any such person, is compounded by these startling facts:

The majority of these so-called White Russians are in possession of a valid passport issued by the Government of the Soviet Union. I repeat, the majority of these so-called White Russians are in possession of valid passports issued by the Government of the Soviet Union.

It is an established fact that the only persons permitted to travel on a valid passport of the U. S. S. R. are diplomats, other representatives of the Russian Communist regime, such as Tass reporters and Amtorg barkers and other devious agents of the Kremlin conspirators.

I invite your attention to the many maimed victims of Russian tyranny and occupation who have escaped through the Iron Curtain of Europe. I ask you whether any of them possessed a valid passport issued by the Government of the U. S. S. R.

The answer is both obvious and sinister. If they had possessed a valid U. S. S. R. passport they would not have been compelled to risk their lives in crossing over the mine fields and barbed-wire fences, or facing the ferocious dogs which comprise the main elements of the Russian Iron Curtain.