Senator WILEY. Did I understand you to say that all except 10 percent of the funds would be spent in this country? Secretary RUSK. That is the present estimate. BREAKDOWN OF COUNTRY FIGURES Senator WILEY. Will you give us a statement for the record showing the estimated breakdown of what you expect to spend by country for the first, second, and third year? Secretary RUSK. We will submit that for the record, sir, for the 3year period. I am not sure that we have the estimates on the third year, but we can give you the best we have. (The information referred to is as follows:) We expect that our lending programs will total $1.2 billion in fiscal year 1962 (including $300 million in loan repayments); $1.9 billion in fiscal years 1963 and 1964. It is not possible to break out these programs in advance by geographic area at this time. However, it is known that for fiscal year 1962 India, Pakistan, and Brazil will account for a very large share of the development lending. In executive sessions on Thursday and Friday, we will be prepared to go into further detail on the individual country eligibility for development loans. BENEFITS OF PROGRAM Senator WILEY. Is it a matter of history that the Marshall plan has practically resulted in the recovery of our allies, like Britain, France, and others and they are economically sound again ? Secretary RUSK. This is one of the most far-reaching facts of the history of the postwar world, yes. Senator WILEY. Is it also believed that the aid that we have given in the past has resulted in keeping us out of a third world war? Secretary RUSK. It has helped a great deal in building a world community which is moving toward a peaceful society, working through such organizations as the United Nations. Had the disorders which followed World War II been continued indefinitely without massive help from us, we could easily have been in world war III by this time and had these newly independent countries not been given some chance in many cases to get off the ground and start their forward movement in economic and social development, I think the disorders and the unrest might easily have drawn us into a war. Senator WILEY. I hope I can be here Tuesday when you come back. This morning I have three subcommittees meeting at the same hour. I want to go into executive session with you on specific territories and ask some questions that I don't care to ask publicly and that I think are very pertinent. I feel if there is anything that needs to be done it is to make the American people aware of what you have testified to this morning-first, your statement, which I think is a very brilliant statement of the reasons for foreign aid; and secondly, your replies to my questioning showing that the foreign aid is really domestic aid, insofar as America is concerned. It has been keeping us out of war, keeping the economy healthy, keeping men employed, keeping industry busy and keeping the farm products going out. All of those things, in my opinion, are arguments in favor of this program that you are now presenting. Thank you, Mr. Chairman. The CHAIRMAN. The Senator from Minnesota. PROGRAM ADMINISTRATION Senator HUMPHREY. Mr. Secretary, I wish to join with Senator Wiley in commending you on the splendid statement. It is a very thoughtful statement. I am moved to say that if the music of administration is as good as the lyrics of presentation, we have some program here. I am hopeful that that will be the case. I join with the chairman in saying that our problem in the committee, in the Congress, and in the Nation, resides pretty much in what has appeared to be some of the abuses of administration and management of this program, which is very worthwhile insofar as its objectives are concerned. I was impressed with the fact that you wanted to keep this program to the areas that seem to cooperate with its objectives. As the chairman indicated, we have spread it pretty thin in the past; maybe so thin it hasn't been able to do the job. I have a few questions, and I am looking forward to discussing this program in detail with you. My main interest is in the subject of administration. I have never had any doubts as to the objectives of the program or the motivation of those who have operated or administered the program. I would like to ask that the discussion that you had with Senator Wiley as to the impact of the foreign aid program or the Act for International Development and the military assistance program on our economy be detailed in the record. You have given us some generalized statements but I know the opposition to this program will insist on more specific information. Secretary RUSK. I shall be glad to, Senator. Senator HUMPHREY. I want it quite clear also that the figure of 750,000 employees does not relate to the number of people employed by ICA, but to the number of jobs created in our economy. I have been around here long enough to know what can happen when words are left suspended in midair. Secretary RUSK. Thank you, sir. PROGRAMS OF OTHER NATIONS Senator HUMPHREY. I Would like to have for our record what the other nations are doing in the field of foreign aid. You said in your testimony that some of our more prosperous and affluent allies should make greater contributions, and that we are determined to get a multilateral approach to the foreign aid program. Therefore, would the State Department and the aid administration provide for us what France is doing, what Great Britain is doing, what Germany is doing, what the other countries are doing, and what they are doing in terms of public grants, loans, private investments, technical assistance. I don't think we need that detailed today, because it will take some time to collect, but I would like to have it for the record. (The information referred to is as follows:) Total capital flows to less-developed countries and multilateral agencies by number of the development assistance group and other OEEC industrialized countries [Based on disbursement data whenever possible. Figures in millions of dollars] 1956 |