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

• Document Type: CREST
• Collection: General CIA Records
• 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
• Publication Date: February 15, 1965
• Content Type: NSPR

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