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to the United States, section 402 currencies are usually generated under the foreign aid program to serve specific foreign aid purposes. In order to obtain such currencies the Peace Corps would have to successfully compete with other proposed uses for such currencies and probably have to obtain the consent of ICA or the AID and the foreign government concerned.

U.S.-owned foreign currencies generated as a result of sales of surplus agricultural commodities under title I of the Agricultural Trade Development and Assistance Act of 1954, as amended (Public Law 480) and available for use under section 104(e) to promote balanced economic development, section 104 (g) for loans to promote economic development, and section 104(f) for the payment of U.S. obligations abroad could also legally be used for the purposes of the Peace Corps without appropriation or purchase from the Treasury. While section 1415 of the Supplemental Appropriation Act, 1953, applies to all foreign currencies used for grants under section 104(e) and for the payment of U.S. obligations involving grants under section 104(f), section 104 also authorizes the President to waive the applicability of section 1415 where inappropriate or inconsistent with the purposes of title I. The final proviso to section 104 of Public Law 480, however, which in effect forbids the allocation (except as appropriated) of section 104 currencies which otherwise would be available for use in the fields of health and education, areas of endeavor which bulk large in Peace Corps planning, will severely limit the extent to which the Peace Corps might utilize such currencies.

It also should be noted that under most Public Law 480 sales agreements approval of proposed uses of so-called country-use currencies by the foreign government concerned must be obtained.

At the present time, the Peace Corps is not an allottee under Executive Order No. 10900 of any of the foreign currencies which accrue under section 104 of Public Law 480. Arrangements would have to be made within the executive branch, therefore, under which the Peace Corps would be able to utilize such currencies. The Peace Corps intends to discuss such arrangements with the Bureau of the Budget.

MORATORIUM ON STUDENT LOANS-SECTION 20

Section 20 of the bill does two things: (1) it suspends interest and principal payments on National Defense Education Act student loans during any time when the borrower is serving as a volunteer; and (2) it reduces by 10 percent the amount of any such loan for each 8 completed months of service as a volunteer (up to a maximum of 50 percent of the loan). The NDEA now provides for suspension of loan repayments during service in the Armed Forces and reduction of loans for borrowers who become teachers. Section 20 of the bill would apply the same provisions to Peace Corps volunteers.

Many volunteers will join the Peace Corps when they come out of college and some applicants have already asked how they can repay educational loans if they join the Peace Corps. The provisions of section 20 were designed to reduce the obstacle which educational loans extended under the NDEA might pose to such applicants. In the first place, it seemed essential that repayment obligations be suspended during the period of service, since some young Americans might otherwise be unable to serve in the Peace Corps. In addition, it seemed appropriate to provide for some reduction in the amount of the loans themselves based upon service in the Peace Corps. This was because, by serying in the Peace Corps, a borrower would be postponing the time at which he would embark upon a more remunerative career. This form of volunteer service in the national interest seemed to provide a unique justification for reducing the borrower's indebtedness to the Government.

CURRENT STATUS OF PEACE CORPS PROJECTS

Colombia.-Eighty candidates, of whom 60 will be selected for the CARE Peace Corps project in Colombia, have been in training at Rutgers University since June 26. Volunteers are scheduled to begin their in-country training at Tipaitita in Colombia on August 28 and to be assigned to duty on October 9.

Tanganyika.—Thirty-two surveyors, five geologists and seven civil engineers have been in training at Texas Western College in El Paso since June 26. Oversea training for this project, after a period at a field training center in Puerto Rico, is scheduled to begin on October 1.

Philippines.--To date, approximately 150 people have been selected to enter training at Pennsylvania State University on August 1. Subsequent to training at Penn State, the volunteers who are finally selected will receive approximately 2 months' training in the Philippines before entering on their teaching duties.

Ghana.-Seventy volunteers who will serve in Ghana entered training at the University of California in Berkeley on June 29. Oversea training at the University of Ghana at Legon will begin on August 26, and volunteers will undertake their teaching duties on September 15.

Nigeria.-Forty-seven people entered training at Harvard University on July 24. An additional group of volunteers, who will be trained at the University of California at Los Angeles, are to be selected shortly. Those finally chosen for service abroad will begin their teaching in January after a period of training in Nigeria.

Chile.-Fifty candidates went into training at the University of Notre Dame on July 20 for service in Chile. Further training schedules are being finalized.

St. Lucia, West Indies Federation. The selection is currently underway for the Heifer/Peace Corps project in St. Lucie. Training is scheduled to begin August 1.

WHAT SORT OF HOUSING WILL BE BUILT FOR VOLUNTEERS AND WHAT WILL HAP

PEN TO IT WHEN IT IS NO LONGER NEEDED BY THE PEACE CORPS?

In most cases where housing is furnished to volunteers, existing housing will be used or will be upgraded for use by the volunteers. In some areas, however, it will be necessary for the Peace Corps to construct housing for volunteers. Such housing will be extremely simple but will take into account the health and sanitation problems of the area. Wherever possible it will be built in local style and of local materials. Two or more volunteers will share each house.

What happens to such housing when the Peace Corps no longer has use for it will depend upon the agreement concluded with the host country. The host country will generally have provided the land for the housing, and the housing will often be associated with an educational or other host country institution in connection with which the project has been carried out. In such cases it may be assumed that the housing will frequently be turned over to the host government or the institution upon completion of the Peace Corps project. In cases in which another agency of the U.S. Government has a use for the housing, the agreement may provide for its continued use by the U.S. Government.

WHAT WILL VOLUNTEERS IN TEACHING PROJECTS Do DURING SCHOOL VACATIONS ?

It is expected that volunteers in teaching projects will devote a portion of the vacation period to their own 1-month annual leave, in order to gain a firsthand knowledge of the region and the people outside their immediate areas of assignment.

In a number of cases, it is contemplated that some of the time when school is not in session will be used to provide inservice training for volunteers. Such training, conducted against a background of experience in the field, will contribute greatly to the teacher's effectiveness during the second or subsequent years of teaching.

In addition, the vacation period, like after-school hours, provides an excellent opportunity for volunteers to make a contribution to other aspects of the community life. They may provide adult education courses; they may work in recreation activities, such as scouting. The governments of all countries in which the Peace Corps plans to have programs have indicated a desire to have volunteers participate as fully as possible in community life. The exact nature of volunteers' activities during school vacations will depend upon the nature of the project and the needs of the community in which they serve.

LOYALTY OATH FOR VOLUNTEERS

Every Peace Corps volunteer will be required to take an oath of office substantially the same as that required of all persons elected or appointed to public office in the United States (other than the President). This oath is found in section 16, title 5, of the United States Code, and reads as follows:

do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign

"T,

and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God.”

The Peace Corps will substitute the phrase "my duties as a Peace Corps volunteer" for the phrase "the duties of the office on which I am about to enter."

APPENDIX III

AMERICAN PERSONNEL AND GUIDANCE ASSOCIATION,

Washington, D.C., June 23, 1961. Hon. J. WILLIAM FULBRIGHT, Chairman, Senate Foreign Relations Committee, Senate Office Building, Wash

ington, D.O. MY DEAB SENATOR FULBRIGHT: On behalf of the American Personnel and Guidance Association, we would like to make a statement for the committee record on S. 2000, the Peace Corps Act. We would like to urge favorable committee action on this bill. Our association was so vitally interested in the Peace Corps that it passed the following resolution at our annual convention in March :

"Be it resolved, That the American Personnel and Guidance Association endorses the principles of the Peace Corps and places its professional resources at the disposal of the Peace Corps for the implementation of its purposes."

In the initial stages of the current temporary Peace Corps, we have been favorably impressed by the development of careful selection procedures. We support the concept of final selection during the period of training. We believe that volunteers should be given ample opportunity to prove themselves in training, and not be rejected on the basis of a single test or a single interview.

The proposal for Peace Corps volunteer leaders is a sound one. Strong leadership in the field will be a necessity if the Corps idea is to succeed. We urge careful selection of these volunteer leaders, as programs of a similar nature have shown that success is often contingent upon proper counseling and leadership in the field area.

We also endorse the selection of all volunteers on the basis of their ability to perform the tasks required rather than on any other single basis.

Senator Humphrey and the other cosponsors of S. 2000 are to be commended on their vision and insight in proposing the Career Planning Board for assistance of volunteers when they terminate their period of service in the Peace Corps. We strongly support the concept of the Board as outlined in the bill under consideration. It should serve as a great source of satisfaction to volunteers as they return to other civilian employment. We appreciate the opportunity to present our views to you and the committee. Sincerely yours,

EDWARD C. ROEBER, President.
ARTHUR A. HITCHCOCK, Executive Director.

THE AMERICAN LEGION,

Washington, D.C., June 28, 1961. Hon. J. W. FULBRIGHT, Chairman, Senate Foreign Relations Committee, New Senate Office Building,

Washington, D.C. DEAR SENATOR FULBRIGHT: I am writing to you regarding the bill, S. 2000, which would establish Peace Corps for the purpose of helping the peoples of interested countries and areas of the world in meeting their needs for skilled. manpower in their efforts to better their living conditions.

Since this program was initially proposed, the American Legion has followed its progress and development with great interest. We appreciate that this idea possesses great potential, but we also perceive the possibility of serious pitfalls. in such an undertaking. Our concern is especially directed to the criteria established for the selection of the individuals who will participate.

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The result of the American Legion's careful study of the Peace Corps proposal is contained in the enclosed statement of policy, which I sincerely urge you and the members of the committee to take into consideration during your deliberations on this vital legislation. With kindest regards and every good wish, I am, Sincerely yours,

WILLIAM R. BURKE,

SPECIAL REPORT ON THE PEACE CORPS Because of wide public interest in the Peace Corps, the national commander and the national foreign relations commission have made a special study of this subject. This portion of our report has been considered and approved by the national commander's advisory committee and is presented to you as a state ment of policy for guidance of the American Legion in any future activities relating to the President's proposal.

By Executive order, the President has established a Peace Corps on a tem. porary, pilot basis. It is anticipated that within the near future the President will also recommend to the Congress legislation pertaining to this agency, through which it is intended that young Americans may serve their country in nonmilitary capacities in foreign countries.

The American Legion, whose members have also had experience in serving their country-as members of the Armed Forces during three wars-recognizes the spirit of idealism which motivated the President in making this proposal. The American Legion has also noted with gratification press reports of the initial response being made by the youth of the country to the President's call for service with only nominal compensation in the interest of peace and freedom abroad. As an organization which has been and is committed to the ideal of patriotism, we welcome evidence that many young people are similarly convinced of the importance of personal service in the national interest and are eager to render that service.

If the Congress sees fit to adopt legislation relating to the Peace Corps, the American Legion recommends to the Congress and to those responsible for administering such an agency that adequate provision be made for the selection, screening, training, and supervision of all personnel. We urge that care be exercised to eliminate the unqualified in education, the unfit in health, and the uncommitted to freedom.

We believe that priority shall be given to those who have already fulfilled their military obligations. In no event, should service in the Peace Corps become a substitute for military service.

We believe that, after careful selection and screening, there should be a rigorous period of training to insure, on the one hand, a knowledge of and sympathy for the lands to which those accepted will go, and, on the other, understanding of and devotion to the land from whence they came.

In the assignment of youth to projects in foreign lands, the American Legion recommends that they be used primarily to augment the staff of private organizations which are working abroad to nurse the sick, feed the hungry, and educate the illiterate,

Should such an agency be authorized on a permanent basis by the Congress, the American Legion offers its full cooperation in carrying out the program,

STATEMENT OF SENATOR FRANK E. Moss (DEMOCRAT, OF UTAH), ON S. 2000,

PEACE CORPS BILL

Mr. Chairman, in this year of change and improvement in the whole foreign aid program, I believe that the formation of the Peace Corps stands out as our greatest innovation. It is only a small part of the total aid program, and in words of the Corps' Director, Mr. Sargent Shriver, "the Peace Corps is no panacea for all the ills of the world in general, or for any country in particular."

The greatest importance of the Peace Corps does not lie in its size or its cost, both of which are relatively modest, but in the new spirit which it brings to the foreign aid program. The Peace Corps is almost a pure embodiment of the historic American practice of pitching in to help your neighbor in times of trouble. It is voluntary action motivated by a genuine desire to work along with the people of Asia, Africa, and Latin America as they seek to develop their nations in freedom.

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