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Taylor, Mrs. Ann Richards, Washington, D.C..


Voelker, Walter D., Friends Committee on National Legislation, Phil-
adelphia, Pa____


Williams, Hon. G. Mennen, Assistant Secretary of State for African


Inserts on—

✔ Text of S. 1983, Act for International Development..
Letter from President Kennedy transmitting S. 1983_-_.
Statement on number of jobs attributable to the foreign aid program_



U.S. loans outstanding and estimated dollar repayments, fiscal year


Sino-Soviet credits and grants extended to less-developed countries
of the free world, January 1, 1954-December 31, 1960---

Bloc economic and military aid commitments..


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Statement of Hon. Kenneth B. Keating, U.S. Senator from New York, on
freedom of the seas provision in the Act for International Development. 1185

Disbursements under grants and loans to Africa by members of Develop-

ment Assistance Group, calendar 1960_--


Statement on behalf of the Presbyterian Church of the United States___
Statement by the Unitarian Fellowship for Social Justice__.







Washington, D.C.

The committee met, pursuant to notice, at 10 a.m., in room 4221, New Senate Office Building, Senator J. W. Fulbright (chairman) presiding.

Present: Senators Fulbright, Sparkman, Humphrey, Gore, Lausche, Church, Wiley, Aiken, Capehart, Carlson, and Williams.

The CHAIRMAN. The committee will come to order, please.

(S. 1983 and a letter from the President, dated May 26, 1961, follow :)

[S. 1983, 87th Cong., 1st sess.]

A BILL To promote the foreign policy, security, and general welfare of the United States by assisting peoples of the world in their efforts towards economic and social development and internal and external security, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,



SEC. 101. SHORT TITLE.-This part may be cited as the "Act for International Development of 1961".

SEC. 102. STATEMENT OF POLICY.-The Congress of the United States reaffirms its belief that peace in the world increasingly depends on wider recognition, both in principle and in practice, of the dignity and interdependence of man, and that the survival of free institutions in the United States can best be assured in a worldwide atmosphere of expanded freedom. To this end, the United States has in the past provided assistance to help strengthen the forces of freedom by aiding peoples of less developed countries of the world to develop their resources and improve their living standards, to realize their aspirations for justice, education, dignity, and respect as individual human beings, and to establish responsible governments. The Congress declares it to be a primary necessity, opportunity, and responsibility of the United States, and consistent with its traditions and ideals, to renew the spirit which lay behind these past efforts, and to help make a historic demonstration that economic growth and political democracy can go hand in hand to the end that an enlarged community of free, stable, and selfreliant nations can reduce world tensions and insecurity. In addition, the Congress declares that it is the policy of the United States to support the principles of increased economic cooperation and trade among nations, freedom of navigation in international waterways, and recognition of the right of all private persons to travel and pursue their lawful activities without discrimination as to race or religion. Accordingly, the Congress hereby affirms it to be the policy of the United States to make assistance available under this part in scope and on a basis of long-range continuity essential to the creation of an environment in which the energies of the peoples of the world can be devoted to constructive purposes, free of pressure and erosion by the adversaries of freedom. It is the


sense of the Congress that assistance under this part should be complemented by the furnishing under any other Act of surplus agricultural commodities to the maximum extent possible, and that increased disposal be made of excess property and stockpile materials under this part and other Acts.

In order to achieve these basic goals, to the extent practicable, assistance should be based upon well-conceived plans; be directed toward the social as well as economic aspects of economic development; be responsive to the efforts of the recipient countries to mobilize their own resources and help themselves; be cognizant of the external and internal pressures which hamper the transition to growth; and should emphasize long-range development assistance as the primary instrument of such growth. In order continually to increase the effec tiveness of development assistance, intensive research should be carried on into the techniques of such assistance. Since economic and political stability are indispensable to economic growth and to social progress, it is further the policy of the United States to provide assistance to countries and areas in order to support or promote such stability. The Congress also recognizes the important contribution of the United Nations and its specialized agencies, and of other international organizations and agencies, to the attainment of these goals, as well as to relief of human distress and to scientific progress, and declares that it is the policy of the United States to provide for contribution to those activities of such organizations and agencies which are directed toward such objectives and goals. Finally, the Congress urges that all other countries able to contribute join in a common undertaking to meet the goals stated in this part.



SEC. 201. GENERAL AUTHORITY.-(a) The President is authorized to make loans repayable in United States dollars on such terms and conditions as he may determine, in order to promote the economic development of less developed countries and areas, with emphasis upon assisting long-range plans and programs designed to develop economic resources and increase productive capacities. In so doing, the President shall take into account (1) whether financing could be obtained in whole or in part from other free-world sources on reasonable terms, (2) the economic and technical soundness of the activity to be financed, (3) whether the activity gives reasonable promise of contributing to the development of economic resources or to the increase of productive capacities in furtherance of the purposes of this title, (4) the consistency of the activity with, and its relationship to, other development activities being undertaken or planned, and its contribution to realizable long-range objectives and (5) the extent to which the recipient country is showing a responsiveness to the vital economic, political, and social concerns of its people, and demonstrating a clear willingness to take effective self-help measures. Loans shall be made under this title only upon a finding of reasonable prospects of repayment.

(b) The authority of section 610 may not be used to decrease the funds available under this title, nor may the authority of section 613 (a) be used to waive the requirements of this title.

SEC. 202. CAPITALIZATION.-(a) The President is authorized to issue, during the fiscal years 1962 through 1966, notes for purchase by the Secretary of the Treasury in order to carry out the purposes of this title. The maximum aggregate amount of such notes issued during the fiscal year 1962 shall be $900,000,000, and the maximum aggregate amount of such notes issued during each of the fiscal years 1963 through 1966 shall be $1,600,000,000: Provided, That any unissued portion of the maximum amount of notes authorized for any such fiscal year may be issued in any subsequent fiscal year during the note issuing period in addition to the maximum aggregate amount of notes otherwise authorized for such subsequent fiscal year. Such notes shall be redeemable at the option of the President before maturity in such manner as may be stipulated in such notes, and shall have such maturity and other terms and conditions as may be determined by the President. Payment under this subsection of the purchase price of such notes and repayments thereof by the President shall be treated as public-debt transactions of the United States Government.

(b) United States dollars which are derived directly or indirectly on or after the effective date of this Act from payment of obligations under which the United States Government may require payment exclusively in United States

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