Mr. ROONEY. Are there other questions with regard to the item of $835,000? Mr. Bow. Yes, Mr. Chairman, I would like to ask a question, if I may, about this item of picking up the tab for Cuba. Did you say that was $225,000 a year? Mr. CLEVELAND. I wouldn't describe it as picking up the tab for Cuba since we have just thrown the Cubans out. Mr. Bow. Well, what else is it? You have money in here now to pay Cuba's share. Mr. CLEVELAND. We have money in here to pay for the things we want this Organization to do, which is working for the rest of the members. Mr. Bow (reading): Appropriation of the working capital fund to compensate for the absence of the payment to the Organization of the Government of Cuba, which was excluded from the OAS in January. How much is that? Mr. CLEVELAND. $225,000 for the Pan American Union. Mr. Bow. That is what Cuba's share would have been; is that correct? Mr. CLEVELAND. Yes. Mr. Bow. Are we picking up the whole $225,000 or just 66 percent of it? Mr. CLEVELAND. We are taking 66 percent of the $225,000. This is right but this is not something for Cuba, this is for something for the Alliance for Progress. Mr. Bow. I understand that, Mr. Secretary. AVAILABILITY OF HOFFMAN FUND Now, how much is Cuba getting out of the Hoffman Fund? Mr. Bow. What were they supposed to get? Mr. CLEVELAND. They would eventually get under that project if it finally goes through, about $1.1 million. Mr. Bow. So the American taxpayer is picking up 66 percent of the $225,000 we are losing because of their being excluded and then under the United Nations Fund the American taxpayer is going to take up their percentage of $1.1 million; is that correct? Mr. CLEVELAND. I don't think I would regard it as Mr. Bow. I think the American taxpayer is going to consider it a loss. It is just another one of these things brought about through these organizations where the American taxpayer is being taken for a ride. Mr. CLEVELAND. Cuba was thrown out of the OAS, on our motion. Mr. Bow. They should have been and they should have been thrown out of the Hoffman Fund of $1.1 million, too. I understand that you and Ambassador Stevenson have protested. I understand that, Mr. Cleveland. Mr. CLEVELAND. We did, indeed. Mr. Bow. Nevertheless, the fact of the matter is that they are getting it and it is on an agricultural program the same as we are setting up here and the taxpayers of the United States are paying now 66 percent of that. Mr. CLEVELAND. But this is for the rest of Latin America where we want very much to promote their agriculture. Mr. Bow. You know I have a lot of people in agriculture and I would like a little promotion there. FUNDS FOR ECONOMIC AND SOCIAL ACTIVITIES UNDER ALLIANCE FOR PROGRESS How about the economic and social activities under the Alliance for Progress? How much of the $653,920 is in that and what is it for? Give us the figures on the economic and social activities under the Alliance for Progress. Ambassador MORRISON. The amount which was approved, $1,172,000. The social affairs, $1,009,000 Mr. Bow. I am talking now about our dollars going into this paragraph 1 on page 6. Just what is that going to cost the American taxpayer and what it is going to be used for? Ambassador MORRISON. Two-thirds of the remaining $449,000 would be about $300,000 for the United States. Mr. Bow. What is that going to be used for? Ambassador MORRISON. That is principally in the OAS fellowship program. Mr. Bow. No, you have that under section 2. I am talking about Paragraph 1: Economic and Social Activities. Ambassador MORRISON. There was a reduction from what was approved by the Congress. Mr. Bow. What I am trying to get at, Mr. Ambassador, in this $653,920 increase, how much of that is being used in this Section 1: Economic and Social Activities, under the Alliance for Progress; and for what is it being used? What do you mean by "economic and social activities under the Alliance for Progress"? Ambassador MORRISON. Actually, that is the $450,000 more or less increase in the technical cooperation program. Mr. Bow. Mr. Ambassador, that is your No. 2. That is the next item in this justification. Do you have the justifications before you? Mr. ROONEY. I suppose we could get at it this way: What is the breakdown of the $653,920? Mr. Bow. Do you have your justifications before you? Mr. CLEVELAND. Yes. Mr. Bow. Let's take them according to your justifications. In your third paragraph you have the increase of $653,920 which consists largely of three items. One, economic and social activities under the Alliance for Progress. How much is that; what is it? Two, technical cooperation, including OAS felowships. How much is that and what is it? Now, we have talked about three. Ambassador MORRISON. It is about $225,000 for the fellowships. The balance is for the social and economic. Mr. Bow. I know that, that is what you say here, but tell me what it is. Ambassador MORRISON. What do we do with this money? Mr. Bow. What are the programs? How do you spend the money? What do you do with it? I can read this but tell us what you are doing with the money. That is what the taxpayers would like to know. Mr. CLEVELAND. The only way to make it come out to the total figure is to take all of the pluses and minuses as between Mr. Bow. Tell us what these programs are that you want this money for. FELLOWSHIP PROGRAM Ambassador MORRISON. First of all, we have a tremendous increase in the fellowship program. Mr. Bow. What is the fellowship program? What do you do with it? Ambassador MORRISON. Educational exchange under which the U.S. nationals go to Latin American countries and the Latin American nationals come to the United States. Mr. Bow. In other words, this is another exchange program; is that right? EDUCATIONAL EXCHANGE UNDER THE OAS Ambassador MORRISON. Educational exchange under the OAS. Some 400 Latin Americans and U.S. citizens are now included in this program. It is a program that we consider of great benefit to the United States Mr. Bow. We are finally getting down to it now. This is another student exchange program under the OAS: is that right? Mr. CLEVELAND. That is correct, in which all nations share in the cost. EXCHANGE STUDENTS Mr. Bow. You have how many students in that? Mr. Bow. How many U.S. students do we have in Latin America and under this program? Ambassador MORRISON. About 10 percent. Mr. Bow. We are making 66 percent of the contribution and we have about 10 percent of our students studying in Latin America; is that right? Ambassador MORRISON. Yes, sir. As a matter of fact, we consider it a great advantage to our own policy and to our own program to have Latin Americans come to the United States. ECONOMIC AND SOCIAL ACTIVITIES UNDER ALLIANCE FOR PROGRESS Mr. Bow. This takes care of No. 2, the technical cooperation. Now what is the economic and social activity under the Alliance for Progress. Ambassador MORRISON. This concerns the Economic and Social Council of the OAS which is the coordinating body for the carrying out of the Alliance for Progress. Mr. Bow. What is your actual activity? Ambassador MORRISON. The principal activity is the work of the panel of experts, the "Nine Wise Men" who pass upon plans submitted by the various countries under their obligation in the Alliance for Progress. They are required to submit a national plan. Seven countries have submitted their plans. Mr. Bow. How much of this $653,920 will go for that purpose? Ambassador MORRISON. I would say a great portion of it will go for the nine-man panel plus the people who work with them. They have the obligation of approving these plans, making recommendations for changes. This, of course, is going to be money very well spent because if we are going to have long-range, effective plans, this is far better than anything we have done in the past. In other words they are part and parcel of an investment in an overall long-range plan instead of just a hit-and-miss or a crisis-to-crisis proposition with regard to the economic and social development of Latin American countries. So the total amount we put into the obtaining of national plans is going to be perhaps one of the best investments we have ever made. LONG-RANGE PROGRAM Mr. THOMAS. Will you yield briefly, Mr. Bow? There is a longrange program here. Why not transfer this back to the regular committee, go into it in great detail and establish a good program and see that you get the funds needed to carry it out. There is no opposition to it but this is the wrong place to consider it. Does that appeal to my friend from Louisiana? Ambassador MORRISON. Yes, I know you are concerned, Mr. Chairman, about this Hoffman fund and the $1.1 million. I think we can be a little consoled by the fact that as of now there was $100,000 authorized for a 6-month investigation. We have contended that this $1.1 million would be wasted if it was spent in Cuba and have tried to carry through this contention. So at least for the moment there is no expenditure of the $1.1 million but an approval of $100,000 to investigate. Mr. THOMAS. We depend upon the good judgment of you distinguished gentlemen and we know you will handle it right. To handle it right is to cut that $100,000 in half. Mr. Bow. That is all I have. Thank you. UTILIZATION OF HOFFMAN FUND Ambassador MORRISON. I would like to say also that Mr. Hoffman's special fund is providing $4 million of U.N. funds, in which our contribution is 40 percent, far less than our percentage in the OAS. This $4 million is being matched for this new agricultural program by the United States and the other participating countries, which is very important to us. So if we eventually may have some funds spent in Cuba, we still will have $4 million of the U.N. fund spent in the other 19 countries. FUNDING ARRANGEMENTS Mr. CLEVELAND. On the question of why this should be handled as a supplemental, we are trying to be reasonable, orderly and to keep the assessments for each fiscal period in each international organization in a single fiscal year of our own appropriation. Otherwise it gets awfully confusing, having cross appropriations from 1 fiscal year to another. This is why we requested supplementals for those two items in order to keep next fiscal year's budget clean for the Pan American Union and the Inter-American Institute of Agricultural Sciences. TUESDAY, MARCH 26, 1963. MISSIONS TO INTERNATIONAL ORGANIZATIONS WITNESSES HARLAN CLEVELAND, ASSISTANT SECRETARY FOR INTERNATIONAL ORGANIZATION AFFAIRS GEORGE M. CZAYO, EXECUTIVE DIRECTOR, BUREAU OF INTERNATIONAL ORGANIZATION AFFAIRS Mr. ROONEY. The next item is entitled "Missions to International Organizations," with a budget in the amount of $75,000 which would be $63,000 for the pay act costs and $12,000 for the Interparliamentary Union expense. |