ALLEN-SCOTT REPORT FEW PEOPLE KNOW IT, BUT SENATE HAS VOTED A PRETTY BIG CHUNK FOR FOREIGN AID

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73-00475R000300070001-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 27, 2016
• Document Release Date: January 27, 2014
• Sequence Number: 1
• Publication Date: February 2, 1964
• Content Type: OPEN SOURCE

STAT
? Declassified in Part - Sanitized Copy Approved for Release 2014/01/27: CIA-RDP73-00475R000300070001-7
FEB 2 1964
(???\
LAS VEGAS SUN
ALLEN-SCOTT
11-TO
By ROBERT S: ALLEN and PAUL SCOTT
Few Peopie Know It. But Senate Has Voted
A Pretty Big Chunk For Foreign Aid
?
WASHINGTON?The chances are 100 to 1 you aren't':
aware of it, but a big chunk of foreign aid spending al-
ready has been voted by the Senate.
While Congress (after some six weeks) is still await-
ing the recommendations of President Johnson's special
interdepartmental committee to "reorganize!' the widely-
assailed foreign 'aid program, the administration has
'rammed through the Senate a $312 million foreign aid bill.
This approximately one-third of a billion dollars is in addition
to the $3.4 billion the President listed for economic and military for-
eign aid in his budget message last week.
The $312 million* is to increase this country's share of the funds
of the Independent Development Association?a "soft loan" agency
of the World Bank. "
Established in 1960 with a $1 billion fund, of which the U. S.
put up $320 million and other World Bank members $423 million,
IDA so far has loaned $554 million ? most of it ($300 million) to
India. The new Morley is. to increase IDA's funds by $750 million,
with other nations contributing $438 million.
' Avowed purpose of IDA is to help so-called "underdeveloped"
,countries. It makes 50-year interest-free loans, with a 3/4 of one per
icent annual service charge: (It costs the U.S. Treasury around 4.
per cent tci . borrow* money.) But virtually all IDA borrowers
:already are. receiving large amounts of U.S. economic,and military
aid, as follows: Pakistan, Turkey, South Korea, Formosa, Jordan,
Chile, Colombia, Haiti, Ethiopia, Sudan Tunisia.
All these countries, including India, are in arrears on United
,Nations assessments. As of Dec. 31, 1963, they owed more than $16'
'million.
'A bipartisan group of senators made a determined fight to hold
up action on the $312 million bill on the ground it should be con-
sidered as, part of the whole foreign aid program. ?
"What's the rush and why the hurry?" demanded Senator
Wayne Morse, D-Ore?: "We ought to stop and take a longer look.
We should not pass this bill until we make our decision later this
year' on the whole foreign assistance program. We should look at
?it as a total package, and not segmentize it in this way. This is a
serious mistake; because not a single senator, including the ma-
jority leader, know what the administration's program for foreign;,
aid is.". ? ? :`
STEAMROLLING THE OPPOSITION'
Sen. Morse's motion to send the measure back to the Foreign;
Relations Committee was' defeated 37 to 33 ? a significantly close ?
.margin, that bodes ill for the President's proposed $3.4 pillion for-
eign aid budget.
While the administration's steamroller was able to ram the $312
million bill through .the Senate; the outlook for th9 big appropria-
tion is not pronfisin,g: The President has his work cut out for him
getting it through the House and Senate unscathed..
On the basis of this Senate clash, the odds are against him. . ?
An important factor' in this portentous battle Was the. .bipartisan',
complexion of the opposition.
-nremost among those waging this struggle were Sens. Morse,
i Fro ih Lausche, D-0., Bourke Hickenlooper, R-Ia.. Stuart Syming-
ton, 1)-Mo., Allen Ellender, 134.a., and Jack Miler, R-Iowa.
Administration spokesmen were Sen. J. William Fulbright, D-'
,'\1?.. c;tairman of the Foreign Relations ,Committee, and Mi'.e.e.'
M9iironey, D-Okla. .
In rallying the surprisingly close vote against the administra-
tion's hill, the opposition made five major points, as follows: '
. l
Sen. Lauschei "IDA is completely free from any conditions or
restrictions contained in the (regular) foreign aid .program. . . .'
- On the one band, we created conditions supposedly in the iaterest
of the United States in the administering of foreign' aid, and on:
the other hand, we are giving a free rein to IDA."
Sen. Hickenlooper: "This bill would permit 'IDA to do more
lending to countries 'for purposes which Congress either has not
authorized, or which Congress, has specifically prohibited ? for
example the giant steel mill in India." .
Sen. Symington: "The World Bank has accumulated $813 mil-
lion in reserves, and thiS is being 'augmented every year by more
than $100 million. Are we to make additional appropriations to the
World Bank for its 'soft loan, window,' which is/ii fact what we are
asked to do through IDA, when this Bank alr ady has ample re- ?
serves to take care of expected 'soft loan' crmitments for the
next three-year period. Why do we have to continue with such a
heavy surplus in the World Bank, while' at the same time adding to,
this 'soft loan' set up? The directors, the officers, and the entire
structure are the same for both the World Bank and the IDA." .
Sen. Jack Millet: "It is very important to point out that a num-
ber of these nations are delinquent in their UN assessments. For,
example, Chile had received outstanding credits for $19 million
from IDA. Chile also had received millions. of dollars in foreign aid ,
from our citizens. Nevertheless, .as of the end ? of last December,,
Chile was delinquent .in 'the amount of more than $670,000 in its.
UN assessments." ? .. .
? Sen. Ellender:. "These IDA loans are virtually a give-away,
because they are for 50 years without interest. Also, under this bill,
countries borrowing from?IDA can Use the money to purchase goods
whenever they decide. They can 'do that .at a time when our gold'
reserves are in critical state and when our balance-of-payments'.
is a very grave problem." , ? ,
Sen. Morse also stressed that Countries obtaining interest-free
IDA loans are re-lending money in their own countries at interest
rates up to 12 per cent.
MYSTERIOUS SHIFT. ?
Career diplomat Livingston Merchant, with the permanent rank
f, ambassador, has taken a high-level job in the Central Intelli-
gence Agency: Merchant has been working on negotiations involving
the multilateral nuclear force launched by the late President Ken-
nedy. There has been no announcement of ,Merchant's switch to
CIA, and all inquiries are met with silence. . . . Rep. Howard
D-Va.; dour chairman of the powerful Rules .Committee, has.
told Speaker. John McCormack he will report out the long-stalled
area redevelopment bill whenever the administration is ready to'
have it considered by the House. The 'measure passed the Senate
last year, but has been held up in the House because of lack of votes
to put it over., So far the administration is short at least 20 votes....
Sen. Albert Gore, D-Tenn., a leading opponent of ..the $11 billion'
tax-cutting bill, admits there is ,no -chance of blocking it. He. will
.continue to battle it in the Senate, but is telling colleagues he
knows the measure will be passed. , ' .
Declassified in Part - Sanitized Copy Approved for Release 2014/01/27: CIA-RDP73-00475R000300070001-7