The most significant admission that our foreign aid program has failed is contained in the statement which Secretary of State Dulles made during the hearings: "Now, what is it that saves the world from that [Soviet blackmail]? It is just one thing alone, and that is that it is known that the United Staes has the capacity to retaliate massively, and therefore, they do not dare do that. And that is the only restraint, and it is a restraint which protects not only the United States, but protects the other free nations of the world. And for anyone to believe that a free nation is better off and more free and more safe by getting out from underneath that umbrella of United States power, is to me a fantastic conception. Any country that gets out from under that is getting under the menace of blackmail, of atomic threat which comes from the Soviet Union, And the only way in which the free world can save itself from being broken asunder and from being cap tured by the dictatorship of Soviet communism, is for them to stay together under this power which neutralizes this frightful blackmail power which otherwise would be possessed by the Soviet Union." We have read and reread this statement many times and not once have we seen the expression "foreign aid" in it. VI. THE FUTURE In expressing our minority views last year, we posed these questions: "We, therefore, feel in considering this bill that certain questions should and must be asked: What magic formula is there in this program that is going to transform millions of insecure people throughout the world into valiant, invigo rated, and dependable allies? Is it United States money? No. We have tried that one many times-with no success. Is it United States armed might? No. Our forces have been bearing the brunt of the fight in Korea on behalf of the principles of sovereignty, independence, and freedom-and still the peoples of Asia waiver. Is it sharing our know-how with less fortunate peoples in the underdeveloped areas? No. Despite the demonstration of our friendship, we cannot be certain how many of them would succumb to Communist influence and persuasion." The passage of 1 year has borne no answer to these questions. Although the military conflict in Korea has ended, we are still bearing the brunt of the burden in Korea on behalf of the principles of sovereignty, independence, and freedomand the peoples of Asia waiver even more. We suggest, therefore, that each Member of this House, before voting on this bill, must bear in mind the following basic truths: (1) We are not so desperate that we must authorize nearly a billion dollars to be used in Southeast Asia and the Pacific without any knowledge of how, when, and where. (2) We are not so desperate that we cannot extricate ourselves from reliance on unwilling and vacillating associates in the family of nations. (3) We are not so desperate that we must rely on defunct governments and colonial regimes. (4) We are not so desperate that we must continue with an outmoded and steadily failing patchwork of foreign policy programs. (5) We are not so desperate that we cannot summon up our genius, ingenuity, and varied capacities to bring to the world at least a partial answer to its troubles. (6) We are not so desperate that our only contribution to the world's prob lems must be money and weapons, with the resultant disdain which they create for us. (7) We are not so desperate that we dare not exercise a leadership— spiritual, moral, and political-worthy of a great heritage and of a great people. We feel compelled to remind the membership of this House that we stated last year, as we state now: "It would therefore seem to us particularly essential that we evaluate the present program in the light of what similar programs in the past have failed to accomplish; and from the point of view of whether or not it offers fulfillment of pledges made to the American people." Responsibility in world affairs is a serious matter for the future of our Nation and its people. It calls for the courage to admit past and present failures and the fortitude to chart a new course. LAWRENCE H. SMITH. APPENDIX IV CONFERENCE PRINT OF THE BILL, H.R. 9678, MUTUAL SECURITY ACT OF 1954, AUGUST 4, 1954 [1] [H.R. 9678, 83d Cong., 2d sess.] AN ACT To promote the security and foreign policy of the United States by furnishing assistance to friendly nations and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Mutual Security Act of 1954". [2] TITLE I-MUTUAL DEFENSE ASSISTANCE CHAPTER 1. MILITARY ASSISTANCE SEC. 101. Purpose of CHAPTER.-The Congress of the United States reaffirms the policy of the United States to achieve international peace and security through the United Nations so that armed force shall not be used except in the common defense. The Congress hereby finds that the efforts of the United States and other nations to promote peace and security require additional measures of support based upon the principle of continuous and effective self-help and mutual aid. It is the purpose of this chapter to authorize measures in the common defense, including the furnishing of military assistance to friendly nations and international organizations in order to promote the foreign policy, security, and general welfare of the United States and to facilitate the effective participation of such nations in arrangements for individual and collective self-defense. In furnishing such military assistance, it remains the policy of the United States to continue to exert maximum efforts to achieve universal control of weapons of mass destruction and universal regulation and reduction of armaments, including armed forces, under adequate safeguards to protect complying nations against violation and evasion. [3] The Congress reaffirms its previous expressions favoring the creation by the free peoples of the Far East and the Pacific of a joint organization, consistent with the Charter of the United Nations, to establish a program of self-help and mutual cooperation designed to develop their economic and social well-being, to safeguard basic rights and liberties and to protect their security and independence. The Congress hereby reiterates its opposition to the seating in the United Nations of the Communist China regime as the representative of China. In the event of the seating of representatives of the Chinese Communist regime in the Security Council or General Assembly of the United Nations, the President is requested to inform the Congress insofar as is compatible with the requirements of national security, of the implications of this action upon the foreign policy of the United States and our foreign relationships, including that created by mem bership in the United Nations, together with any recommendations which he may have with respect to the matter. SEC. 102. GENERAL AUTHORITY.-Military assistance may be furnished under this chapter on a grant or loan basis and upon such other appropriate terms as may be agreed upon, by the procurement from any source and the transfer to eligible nations and international organization of equipment, materials, and services or by the provision of any service, including the assignment or detail of members of [4] the Armed Forces and other personnel of the Department of Defense solely to assist in an advisory capacity or to perform other duties of a noncombatant nature, including military training or advice. NOTE: Matter in roman appears in both House and Senate versions Matter in linetype appears in House but not in Senate version SEC. 103. AUTHORIZATIONS.—(a) There is hereby authorized to be appropriated to the President, in addition to appropriations authorized by sections 104 and 105 not to exceed $1,430,800,000 $1,265,300,000, to carry out the purpose of this chapter; and, in addition, unexpended balances of appropriations for military assistance under each paragraph of the Mutual Security Appropriation Act, 1954 (except the appropriation for mutual special weapons planning), are hereby authorized to be continued available for the purpose of this chapter and to be consolidated with the appropriation authorized by this subsection; all of which is hereby authorized to be continued available through June 30, 1955. (b) Funds made available pursuant to subsection (a) of this section shall be available for the administrative and operating expenses of carrying out the purpose of this chapter including expenses incident to United States participation in international security organizations. (c) Funds made available pursuant to subsection (a) of this section may be used for the procurement of equipment or materials outside the United States unless the President determines that such procurement will re [5] sult in one or more of the following conditions: (1) Adverse effects upon the economy of the United States, with special reference to any areas of labor surplus, or upon the industrial mobilization base, which outweigh the strategic and logistic advantages to the United States of procurement abroad; (2) Production of such equipment or materials outside the United States under inadequate safeguards against sabotage or the release to potential enemies of information detrimental to the security of the United States; (3) Unjustifiable cost in comparison with procurement in the United States, taking into account transportation costs for delivery overseas; and (4) Delays in delivery incompatible with United States defense objectives. SEC. 104. INFRASTRUCTURE.—(a) The President is authorized to make contributions to infrastructure programs of the North Atlantic Treaty Organization, in accordance with agreements already made between the member nations, out of funds made available pursuant to this section, or section 103, or chapter IX of the Supplemental Appropriation Act, 1953, of amounts totaling not more than [6] $780,000,000, less amounts already contributed for such purpose. There is hereby authorized to be appropriated to the President for such purpose, in installments prior to June 30, 1958, not to exceed $321,000,000, to remain available until expended. Such contributions by the United States shall not exceed its proportionate share, as heretofore agreed upon, of the expenses of such programs. (b) When the President determines that it is in the interest of the security of the United States to participate in programs for the acquisition or construction of facilities in foreign nations for collective defense other than programs of the North Atlantic Treaty Organization, he may use for such purpose funds made available under section 103 or local currencies made available under section 402 in amounts totaling not more than $50,000,000. (c) Notwithstanding section 501 of this Act, no funds other than those referred to in subsections (a) and (b) of this section may be expended for the purposes of this section. No funds shall be expended under this section for rental or purchase of land or for payment of taxes. SEC. 195. DEVELOPMENT OF WEAPONT OF ADVANCED DESIGN: The unexpended balance of the appropriation made pursuant to section 542 of the Mutual Security Act of 1951, as amended, is authorized to be continued available until expended, for the purpose of encouraging and expedit- [7] ing the development of weapons of advanced design by nations or international organizations eligibft to receive military assistance under this chapter. Notwithstanding any other provision of this Aet, funds continued available pursuant to this section may be used only for the purpose of this section. SEC. 105. DEVELOPMENT OF WEAPONS OF ADVANCED DESIGN.-There is hereby authorized to be appropriated to the President not to exceed $27,000,000, to remain available until expended, for the purpose of encouraging and expediting the development of weapons of advanced design by nations or international organizations eligible to receive military assistance under this chapter. Notwithstanding any other provision of this Act, funds made available pursuant to this section may be used only for the purpose of this section. In addition, the unexpended balance of the prior appropriation made pursuant to section 542 of the Mutual Security Act of 1951, as amended, is authorized to be continued available for the purpose of this section until expended and to be consolidated with the appropriation authorized by this section. SEC. 106.. CONDITIONS APPLICABLE TO MILITARY ASSISTANCE.-(a) Military assistance may be furnished with funds appropriated under this chapter to any nation whose increased ability to defend itself the President shall have determined to be important to the security of the [8] United States and which is otherwise eligible to receive such assistance. Equipment and materials so furnished under this chapter shall be made available solely to maintain the internal security and legitimate self-defense of the recipient nation, or to permit it to participate in the defense of its area or in collective security arrangements and measures consistent with the Charter of the United Nations. The President shall be satisfied that such equipment and materials will not be used to undertake any act of aggression against any nation. (b) In addition to the authority and limitations contained in the preceding subsection, the following provisions shall apply to particular areas: (1) In order to promote an integrated defense of the North Atlantic area and to support concrete measures for political federation, military integration, and economic unification in Europe, equipment and materials of the value programed and obligated for fiscal years 1954 and 1955 for nations signing the treaty constituting the European Defense Community shall, pending the coming into force of the treaty, be delivered only to such of these nations as have ratified the treaty, and have joined together in or are developing collective defense programs in a manner satisfactory to the United States as determined by the President. (2) Military assistance furnished to any nation in the Near East, Africa, and South Asia to permit it to participate in the defense of its area shall be furnished only in accordance with plans and arrangements which shall have been found by the President to require the recipient nation to take an important part therein. [9] (3) In furnishing military assistance in the Far East and the Pacific and in carrying out the provisions of section 121 of this Act, the President shall give the fullest assistance, as far as possible, directly to the free peoples in that area, including the Associated States of Cambodia, Laos, and Vietnam, in their creation of a joint organization, consistent with the Charter of the United Nations, to establish a program of self-help and mutual cooperation designed to develop their economic and social well-being, to safeguard basic rights and liberties, and to protect their security and independence. (4) Military assistance may be furnished to the other American Republics only in accordance with defense plans which shall have been found by the President to require the recipient nation to participate in missions important to the defense of the Western Hemisphere. or (c) The Secretary of Defense shall insure that the value (as determined pursuant to section 545) of equipment, materials, and services heretofore furnished under military assistance programs authorized by Acts repealed by this Act or hereafter furnished pursuant to section 103 (a) to nations [10] organizations in each of the four areas named in this subsection shall not exceed the total of the funds heretofore made available for military assistance in that area pursuant to Acts repealed by this Act plus the amount herein specified for that area: (1) In the European area (excluding Greece and Turkey), $617,500,000. (2) In the Near East (including Greece and Turkey), África, and South Asia, $181,200,000. (3) In the Far East and the Pacific, $583,600,000. (4) In the Western Hemphere, $13,000,000. (d) Whenever the President determines it to be necessary for the purpose of this title, equipment, materials, and services of a value not to exceed 10 15 per centum of the sum of (1) that portion of the unexpended balances referred to in ɛection 103(a) which was available on June 30, 1954, to furnish assistance in any of the areas named in subsection (c) of this section, and (2) the amount specified in the applicable paragraph of subsection (c) of this section for additional assistance in such area, may be furnished in any other such area or areas, notwithstanding the limitations set forth in subsection (c) of this section. Funds heretofore obligated or programed or hereafter made available solely for the purpose of section 104 (pertaining to infrastructure) or section 105 (pertaining to the development of weapons of [11] advanced design) shall not be included in the total fixed for each such area. Funds heretofore appropriated for military |