Mr. LABOUISSE. I understand that, and I think that some of the foreign governments are very often misled on it, and if we can get over to them the idea that they do not need intermediaries other than, as you say, in such cases as counsel, it would be all to the good. So far as private enterprise is concerned, we certainly do not have in mind that the purpose of the bill is to aid private enterprise; that is not our objective as such.

We do hope that we can utilize private enterprise in attaining the objectives we are seeking, and that we can, in a sense, have a partnership to the extent that this is practicable. But we look at it primarily from the point of view of an assistance program; that is our major preoccupation.

I fully agree with your last point on the question of sending materials, the right things to the right places. This is one of the things we have been trying to emphasize, the necessity for making enlightened decisions as to what is needed in a particular country, whether it is a silo or a certain kind of training.

(The information requested is as follows:)

In response to Senator Morse's questions, we are submitting the following: (a) Pie chart: Loans and grants.

(b) Pie chart: Fiscal year 1962 program by function.

(c) Development loans.

(d) Economic assistance to State enterprise.

(e) Payment of irregular or unnecessary commissions.

(f) Providing assistance adapted to a country's stage of development.

(g) Assistance under the act for international development is required to advance our foreign policy interests and not for the purpose of subsidizing American industry.

The primary tool to assist economic development will be long-term development loans. For this purpose, the President has requested that the Congress provide him with the authority to borrow funds from Treasury over a 5-year period. Under his proposal, $900 million would be made available for development loans in fiscal year 1962 and $1.6 billion in each of the years from fiscal year 1963 through 1966. This would amount to $7.3 billion over the 5-year period. In addition, it is proposed that the repayments and interest payments on certain earlier loans made by the U.S. Government would be authorized for development lending. These repayments are estimated at about $300 million annually. The total amount to be available for development lending is therefore approximately $8.8 billion for the next 5-year period.

ESSENTIAL FEATURES OF DEVELOPMENT LOANS

The essential features of the development loan proposal are:

(1) Development loan proceeds will be used to promote long-term growth in free world developing countries. Financing will be provided for those purposes and activities which make the most effective contribution to growth in the

The primary tool to assist economic development will be long-term development loans. For this purpose, the President has requested that the Congress provide him with the authority to borrow funds from Treasury over a 5-year period. Under his proposal, $900 million would be made available for development loans in fiscal year 1962 and $1.6 billion in each of the years from fiscal year 1963 through 1966. This would amount to $7.3 billion over the 5-year period. In addition, it is proposed that the repayments and interest payments on certain earlier loans made by the U.S. Government would be authorized for development lending. These repayments are estimated at about $300 million annually. The total amount to be available for development lending is therefore approximately $8.8 billion for the next 5-year period.

ESSENTIAL FEATURES OF DEVELOPMENT LOANS

The essential features of the development loan proposal are:

(1) Development loan proceeds will be used to promote long-term growth in free world developing countries. Financing will be provided for those purposes and activities which make the most effective contribution to growth in the