U.S. HAS LOST CONTROL OF AID TO VIET NAM, FULBRIGHT SAYS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP67B00446R000600210007-6
Release Decision: 
RIFPUB
Original Classification: 
K
Document Page Count: 
1
Document Creation Date: 
December 19, 2016
Document Release Date: 
September 12, 2005
Sequence Number: 
7
Case Number: 
Publication Date: 
February 15, 1965
Content Type: 
NSPR
File: 
AttachmentSize
PDF icon CIA-RDP67B00446R000600210007-6.pdf119.71 KB
Body: 
WASHINGTON 517AR Approved For Ifs%a1&2 /11/21 : CIA-RDP67BOO446ROO0600 007 . I By the Associated Press Sen. J. W. Fulbright says ? South Viet Nam is a "pretty horrible example" of how for- eign -aid can get out of the con- trol of the country that is pro- viding it. He meant that the amount and type of almost all U.S. aid to the Asian country now are dictated by political and mili- tary considerations not under U.S. control. "These programs have a way of getting us involved, and then it is hard to get out of these en- tanglements," t he Arkansas Democrat said in an interview. Hp said the U.S. connection with South, Viet Nam started with the Aid program, and he would not want to see a similar entanglement in the Congo. Fulbright, said this is' one of the things that prompted him to ;Announce that he would not act as Senate floor manager for the Johnson administration's annual ~ foreign' aid , authorization bill this year. { Changes Demanded Fulbright is only one of those .who calling this year for basic changes in the foreign aid pro- gram, which began 17 years ago wit1l, the Marshall Plan for help for postwar Europe. Another is Sen. John .Sherman Cooper, R-Ky., who wants to halt all aid until a thorough re- .view and assessment is made, s porter lf the principle of for eign aid. I u1bright, a foriyer= of Rhodes cho is, hairm -SK the Senate :Foreign Relations Committee and his influence is powerful in the "administration's foreign policy councils. Cocper was ambassador to India under President Dwi;ht D. Eisenhow- er. In the house, Rep. Thoriae. E. Morgan, D-Pa., chairman of the Foreign Affairs Con.inittee, fa- vors keeping the status quo. He noted in a separate inter- view that longterm. authoriza- tion for two major programs --- the Alliance for Progress and the development loan fund,-- expire at the end of the next fiscal year, June 30, 1966. "That is the logical time for a reappraisal," Morgan said. Fulbright said he has been urging a reappraisal for three or four years and "this year is a good year too." Passman Critical Criticism of the program also was voiced by Rep. Otto Passman, D-La., chairman of an appropriations subcommittee handling Aid financing. He said in an interview that unlgss there are some far-reaching changes in the pro ram, the United States not only will lose friends abroad but will be in serious economic trouble. lilt is time," Pas:3man said, "for the executive branch ' to tell the American, people that a very large percentage of oar dollar claims against forei;u :nations are long-term and un- collectible and also' to tell the .American people that foreign nations have waxed fat and Flc- cumulated, at oui expense, ishort-term dollar. credits :for. lagch they cathi, demand all of, our diminishing, gold reserves." "Unless all the spigots, of, foreign aid are drastically re-. duced," he 'said, "then the; dollar will be in even 'morel " ' , serious trouble . Administrator In Middle' Iii-the middle of the debate is' David E. Bell., administrator of the AID program, whose job is to present this year's $3.38 billion authorisation request to Congress. On the bill's prospects for trouble, Bell reminded a report- er that the House has many nev- Democratic members this year,' while the Senate makeup re! mains aboutthe same., "Sen., Fulbright has said he's not prepared to plead the ad-. ministration case in the Senate,' the situation looks a little betters in the House, and not so good in the Senate." Fulbright's minimum demand for a change in the program, this year was a complete sep-' aration of military assistance, and economic aid. But Morgan contends that, such a separation would leave' the economic portion of the aid program - funds for building dams and railroads aild-the like - an easy target. for opponents. So far he has blocked'success- fullythe separation 'idea. Fulbright, wants to see an end to U.S. loans to underdeveloped countries. "1C sit a difficult rela- tionship. It causes bad feeling," he said, as between debtor and creditor. ? Fulbright said those, loans should be handled throuxb. such agencies as the ;Internal Approved For Release 2005/11/21 : CIA-RDP67B00446ROQ0600210007-6