Mr. ROCKEFELLER. I think that is the heart of the problem, Mr. Taber. I do not feel that any expenditures should be made by any agency of this country-and I am speaking now particularly in the foreign field-that will not contribute in the end to the thing you are talking about, namely, to the best interest of our own economy, to the maintenance of our own economic stability and our own security.

I think that all of these programs should be examined in the light of what they are going to contribute to our own best self-interest, and in my opinion these programs that have been presented by Mr. Harrison and his assistants do very definitely and very directly contribute to the economic and social welfare of our country. It is only on that basis that I think we should carry out these programs and ask for support and financial backing.

On the question of work in the field of health and sanitation, and food supply, General Dunham has already pointed to the effect on cooperation for war, to its effect in helping to protect the health of our troops and supply food to the troops, and to its effect on the production of strategic and critical materials. He also has pointed out the effect of increased trade between our country and other countries growing out of increased earning power and increased buying power of the people in those countries. This increased trade is going to be absolutely essential if we are going to maintain the level of production which will permit employment of men and women who have sacrificed everything in the armed forces, and of the men and women who have been working in war industry and who will be seeking jobs in private industry after the war is over.

That employment is going to depend upon increased importation of raw materials, which are becoming more scarce in our own country, and increased export of everything in the way of consumer goods.

I would like to add to that which General Dunham has so ably presented, because it ties right in to the political significance of this whole program. Our international relationships are closely tied in to the relationships existing between peoples in these countries. The governments can only carry out programs through cooperation and the support of their own people, and that support is based on an understanding of how this type of cooperation, in itself is to our own interest. I think that these programs throughout the Americas have in a very real way made the people of those countries, who perhaps in times past have been suspicious of us, feel that they are, through their association with the United States, helping their own interests as well as the interests of the United States. They have seen tangible benefits, which have been pointed out by General Dunham, and they have come to know and understand our country, what we stand for, what the meaning of democracy is.

They have, for some time, been subjected to pressure from other ideologies from all parts of the world, and had they accepted those ideologies, it might have changed the course of the war and the future history of our country.

Therefore, in my own mind, after having been closely associated with this work for 5 years and now being intimately connected with the political aspect of the problem, I am convinced that we have developed through these programs a form of international relations which not only reflect the best interests of the people of our own country, but also integrates itself in the interest and welfare of the well-being of the peoples of other countries.

OVER-ALL EXPENDITURES INVOLVED

Mr. WIGGLESWORTH. What are the over-all expenditures involved in this program, Mr. Hisle? I want to know how much you have spent and how much you contemplate spending, the over-all figure. Mr. HISLE. The over-all figure is indicated right here [indicating]. It is $65,024,404.

Mr. WIGGLESWORTH. That statement shows what you have spent to date, but how much do you contemplate spending if you go through with this whole program for the period indicated?

Mr. HISLE. I gave you the figure indicated here-$65,024,404. Actual expenditures to date are around 36 or 37 million dollars, as I recall.

Mr. WIGGLESWORTH. $37,000,000 expended to date?

Mr. HISLE. Yes.

Mr. WIGGLESWORTH. And how much do you contemplate spending before you get through?

Mr. HISLE. $65,024,404.

Mr. WIGGLESWORTH. So that the total will be something over $100,000,000?

Mr. HISLE. No; the total we are going to spend is $65,024,404. We have spent to date about $37,000,000.

Mr. WIGGLESWORTH. Have you contemplated adding to that another $28,000,000?

Mr. HISLE. Yes.

Mr. WIGGLESWORTH. And the Institute for American Affairs, as I understand it, is a nonprofit corporation incorporated under the laws of Delaware. Is that right?

Mr. HISLE. Yes.

CHARTER OF CORPORATION

Mr. WIGGLESWORTH. Has the committee or the Congress been presented with a copy of the charter of the corporation?

Mr. HISLE. I believe you were last year.

Mr. WIGGLESWORTH. How large is it?

Mr. HISLE. Its length?

Mr. WIGGLESWORTH. Yes.

Mr. HISLE. About three or four pages.

Mr. WIGGLESWORTH. Printed pages?

Mr. HISLE. Mimeographed.

Mr. HARRISON. I think we have a copy of it here.

Mr. WIGGLESWORTH. If it is not too long I would like to have t printed in the record, if it is too long I would like to have a copy of 1: personally.

(NOTE. Copies of the articles of incorporation were furnished the committee.)

ACTIVITIES OF CORPORATION

(See p. 547)

Mr. HISLE. We have a very short statement covering the activities of the Corporation, the financial data, and so on, if you want it.

Mr. WIGGLESWORTH. I would like to have a statement showing the purposes, not just some generalization, but some specific statement of the purposes.

(NOTE.-Statement referred to may be found on p. 547.)

Mr. WIGGLESWORTH. Does this Corporation have authority to borrow money and to issue its own securities?

Mr. IVERSON. It has, but it has never been exercised.

AUDIT OF ACCOUNTS BY GENERAL ACCOUNTING OFFICE

Mr. WIGGLESWORTH. Are its accounts audited by the Comptroller General?

Mr. HISLE. Yes. We entered into negotiations with him in the calendar year 1942 and these negotiations were consummated in July 1943. Under this arrangement, the G. A. O. has been sent the accounts of the corporation from month to month and is auditing them. Recently, we wrote to the G. A. O. about what changes would be required by recent legislation requiring audit by that office of all Government corporations. The Comptroller General replied stating that, for the present, we should continue to send the accounts to the G. A. O. for audit under the previous arrangement.

CAPITALIZATION OF CORPORATION

(See p.547)

Mr. WIGGLESWORTH. The capitalization of this corporation is $65,000,000 plus.

Mr. HISLE. That is the capitalization now.

Mr. WIGGLESWORTH. That is $65,024,404.

Mr. HISLE. Yes.

Mr. WIGGLESWorth. Where do the funds come from?

Mr. HISLE. Principally from the Office of Inter-American Affairs, although we do have some reimbursable food supply operations in Costa Rica and Panama.

Mr. WIGGLESWORTH. But substantially all of its capital is furnished by Uncle Sam?

Mr. HISLE. That is correct; but the cooperative programs are financed jointly by us and by other countries. Our payments run about $54,000,000 in total.

General DUNHAM. There are cash contributions on their part of about $19,000,000 at this time, I believe.

Mr. HISLE. It is higher than that.

General DUNHAM. More comes from the municipalities, in supplies and services, which are hard to evaluate.

Mr. HISLE. The amount of cash contributed by the other countries is $21,990,140, and the estimated value of noncash contributions is $3,450,000.

Mr. WIGGLESWORTH. The thing that concerns me is trying to get a reasonably correct picture in terms of dollars and cents. We have had a lot of generalities that were very interesting, but this is an Appropriations Committee, and if we are going to do our work properly, we have to get down to a specific picture in every instance.

COST AND OPERATIONS OF PROGRAM

(See p. 547)

I wish you would give me a statement to show not only the purpose of this operation, but also an itemized statement of your receipts to date, and a similar statement with respect to the fiscal year 1946 with

respect to the expenditures from the various items so we can see just what you have in mind, and specifically what the cost will be on an : itemized statement for the fiscal year 1946.

Mr. HISLE. We have those figures worked out and we will be glad to give them to you.

Mr. WIGGLESWORTH. That does not do us any good if we do not have them to work with.

(The statements referred to have been inserted on p. 547.)

TURNING PROGRAMS OVER TO COUNTRIES

Mr. WIGGLESWORTH. I call attention to what Mr. Rockefeller said a year ago in reference to this basic economy department. He said: We have so conducted our negotiations with those countries where we are working, within the funds which were allocated to us by you gentlemen last year, so as to bring about a successful termination and transfer of all of the personnel and cost to the local governments to carry out and make a permanent part of the life of their country.

If you carry out the plans in mind at the moment, how long would it take before the program is definitely turned over, turned back to the local authorities to do that work?

General DUNHAM. That date is December 31, 1948.

FUNDS BEING REQUESTED

Mr. ROCKEFELLER. There is no money now being asked for at this session. The moneys we are discussing are moneys you have already authorized.

Mr. WIGGLESWORTH. It says here that the total cash appropriation required for the fiscal year 1946 is $3,543,290.

Mr. ROCKEFELLER. That is the cash appropriation for the further contract authorization which you have already made. In other words, this is liquidation of the program that was approved 2 years ago when it was discussed. What we are talking about now is the cash appropriation to pay obligations which have been incurred under the contract authorization which the Congress already has given the Office. Mr. HISLE. You gave us $18,000,000 contract authorization, which has been used for these cooperative health and sanitation and food supply programs.

Mr. ROCKEFELLER. I think that point should be understood clearly. General DUNHAM. We are not asking for any new money in terms of money to create obligations.

Mr. WIGGLESWORTH. You have your contract authorizations, but only $4,000,000 has been liquidated to date, as I understand it.

Mr. HISLE. That is correct.

Mr. WIGGLESWORTH. And if it was all to be liquidated it would require $14,000,000 to do that. In other words, what you are asking for is $3,540,000 at this time.

Mr. HISLE. That is the cash appropriation applicable to the $14,000,000 contract authorization already granted by the Congress. Mr. WIGGLESWORTH. I am talking about the appropriation which this committee is responsible for.

Mr. ROCKEFELLER. My point is that it is not a new program. requiring new money, but a program previously discussed and approved. I think the committee should understand that it involves

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contract authorization based on the plan presented 2 years ago, and that what is involved now is the cash appropriation required for the carrying out of these programs and for the expenditures under those programs during the fiscal year 1946.

TYPES OF PROGRAMS FINANCED

Mr. WIGGLESWORTH. When your contract authorization was given you, was any specific program of contracts passed on, or were you given blanket authorizations to go out and conclude contracts within your own discretion up to that amount?

Mr. ROCKEFELLER. Tentative allocations were made by countries and the period of the continuation of the work was specified in the statement presented.

Mr. WIGGLESWORTH. But no specific list by countries and by projects was considered at the time and specifically approved, nor has any such list ever been presented?

Mr. ROCKEFELLER. By countries, but not by projects.

Mr. HISLE. Each year we present a statement showing the programs by countries and the amounts involved in each. The statements are similar to those which you have before you.

Mr. WIGGLESWORTH. We have a statement with dollars and cents marks after it, but it does not present to this committee or to the Congress any word picture of what you are doing within each country. Mr. HISLE. I think each year we have also furnished you with a descriptive statement of projects for each country, that is, projects being carried out under these programs. These statements explain what types of work are being carried out in each country.

Mr. ROCKEFELLER. With a brief description of the projects. (NOTE. The committee was furnished with a descriptive statement of the work now being carried on in each country under each program.) Mr. WIGGLESWORTH. Has this $18,000,000 authorization been allocated?

Mr. HISLE. In terms of country commitments, special projects, and other items of expense, the present allocations amount to about $62,000,000. The board of directors of the corporation has authorized additional expenditures of about $2,800,000 to complete the programs, and there is a reserve of unallocated money amounting to about $200,000.

TERMINATION OF PROGRAMS

Mr. WIGGLESWORTH. What percentage of contracts is shown by the allocation, and what percentage have been completed?

Mr. HISLE. In terms of health and sanitation, we are winding up in Panama around the first of July 1945, and the Brazil food supply program at about the same time. The statement you were lookingat shows the beginning and the ending dates on each of the agreements. Mr. ROCKEFELLER. I should like to state that the Department of State is studying the general question of this activity as it relates to the future relations of the United States to these other countries, and we may come back at some later date with recommendations regarding the carrying on of a new program on certain of these activities because of the future importance of the relations of this country to the peoples of other countries. I wanted to make that statement for the record.