Kirchwey, Freda, vice chairman, Committee for a Democratic Spain__ Kohler, Hon. Foy D., Assistant Secretary of State for European Lemnitzer, Gen. Lyman L., Chairman, Joint Chiefs of Staff_ McConaughy, Hon. Walter, Assistant Secretary of State for Far McGrath, Joseph B., director, governmental affairs, National Associa- Nathan, Lt. Col. Aubrey P., Defense Coordinator, military assistance program, congressional presentation, OASD/ISA, Department of Neuberger, Paul, attorney, New York City--- Nystrom, J. Warren, U.S. Chamber of Commerce__. Palmer, Gen. W. B., Director of Military Assistance, Department of ✔ Sandri, Henry J., aid programs adviser, Department of State___. Shaw, Markley, military assistance controller, International Security Shriver, R. Sargent, Jr., Director of the Peace Corps-- Simpson, Lt. Col. Robert H., Office of the Director of Military Assist- Stevenson, Hon. Adlai, U.S. representative to the United Nations Stine, Leo C., member, General Board of Christian Social Concerns, Taylor, Mrs. Ann Richards, Washington, D.C.. 1032 Voelker, Walter D., Friends Committee on National Legislation, Phil- 1053 Williams, Hon. G. Mennen, Assistant Secretary of State for African 443 Inserts on— ✔ Text of S. 1983, Act for International Development.. 25 52 Statement on total capital flows to less-developed countries and multi- Expenditures of private American organizations in foreign aid and U.S. loans outstanding and estimated dollar repayments, fiscal year 116 Sino-Soviet credits and grants extended to less-developed countries 176 Contributions to less-developed areas by members of the Development Assistance Group and their relation to gross national products-‒‒‒ Projects discontinued under the foreign aid program__ Loans and grants, fiscal years 1961 and 1962 programs (chart). Providing assistance adapted to a country's stage of development---- Assistance under AID is required to advance our foreign policy interests and not for the purpose of subsidizing American industry- Selected economic and defense expenditures data on European NATO countries and United States, calendar 1960 (table)-- Tax burden as percent of GNP (table). Department of Defense military personnel and dependents located in foreign countries and annual costs to appropriated funds (table)__ "U.S. Dilemma on Haiti," article in New York Times, May 29, 1961--- Statement on whether Japan can have an unlimited army, unlimited Telegram to Senator Fulbright from Clyde T. Ellis, general manager, Statement of Brig. Gen. W. A. Enemark, Regional Director, Western Hemisphere Region, Office of the Assistant Secretary of Defense for Statement of Hon. Kenneth B. Keating, U.S. Senator from New York, on Disbursements under grants and loans to Africa by members of Develop- Memorandum on the President's program for a decade of development___ Estimates of gross national product__ 1131 Statement by Walter Reuther, president, industrial union department.. Statement of Felix M. Putterman, national legislative director, Jewish Statement on behalf of the Presbyterian Church of the United States___ 1194 1203 INTERNATIONAL DEVELOPMENT AND SECURITY WEDNESDAY, MAY 31, 1961 UNITED STATES SENATE, COMMITTEE ON FOREIGN RELATIONS, 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, PART I CHAPTER 1-SHORT TITLE AND POLICY 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 1 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. CHAPTER 2-DEVELOPMENT ASSISTANCE TITLE I-DEVELOPMENT LOANS 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 |