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December 15, 2016
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November 14, 2003
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February 2, 1954
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Approved For Release 2003/12/02 : CIA-RDP75-00001 R000200310002-0 Fc,rt'most among those waging this struggle were Sons. Morse, i STAT T t ?'~ Fraci; .ausche, D-0., Bourke Hickenlooper, R-1a., Stuart Syming s` L d tui:, 1)-,?io., Allen Ellender, D -La., and Jack Miter, .-Iowa. L ILI J do inistration spokesmen were Sen. J. William Fulbright, D ci.w.irntan of the Foreign Relations ;Committee, and Mike i .Mutu oite D-Okla. QED r", at Ed. in rallying the surprisingly close vote against. the ad in tra bill, the opposition made five major points, as follows: ivy ROBERT S. ALLEN and PAUL SCOTT sen. Lausche: "IDA is completely free from any conditions orl E"ew i?ccale Know It. Cut 5ena;e i QS Voted i'cstractions contained in the (regular) foreign aid program....' On the one hand, we created conditions supposedly in the interest * T, C F A:,4 A Pr-ti" n f' c a WASHINGTON-The chances are 100 to 1 you aren't',' 1}e other hand, we are giving a free rein to IDA." aware of it, but a big chunk of foreign aid spending al- %en. 1-lickenlooper: "This bill would permit IDA to do more ready has been voted by the Senate. fu nding to countries 'for purposes which Congress either has not While Congress (after some six weeks) is still await- authorized, or which Congress has specifically prohibited - for. example the giant steel mill in India." .ins the recommendations of President Johnson's special Sen. Symington: "The World Bank has accumulated $813 mil-' 'interdepartmental committee to "reorganize" the widely- lion in reserves, and this is being augmented every year by more. assailed foreign aid program, the administration has , than $100 million. Are we to make additional appropriations to the trammed through the Senate a $312 million foreign aid bill. 'World Bank for its 'soft loan. winddw,' which is in fact what we are This approximately one-third of a billion dollars is in additior. asked to do through IDA, when this Bank already has ample re-' to the $3.4 billion the President listed for economic and military for- serves to take care of expected 'soft loan' commitments for the' eign aid in. his budget message last week. next three-year period. Why do we have to continue with such a The $312 million is to increase this country's share of the funds heavy surplus in the World Bank, while' at the same time adding to' of the Independent Development Association-a "soft loan" agency this 'soft loan' set up? The directors, the officers, and the entire of the World Bank, structure are the same for both the World Bank and the IDA." Established in 1960 with a $1 billion fund, of which the U. S. Sen. Jack Miller: "It is very important to point out that a num- put up $320 million and other World Bank members $423 million, her of these nations are delinquent in their UN assessments. For. IDA so far has loaned $554 million - most of it ($300 million) to example, Chile had received outstanding credits for $19 million India. The new money is to increase IDA's funds by $750 million, from IDA. Chile also had received millions of dollars in foreign aid with other nations contributing $438 million, from our citizens. Nevertheless, as of the end ? of last December,, Avowed purpose of IDA is to help so-called ""underdeveloped" Chile was delinquent 'in'the amount of more than $670,000 in its. countries. It makes 50-year interest-free loans, with a 3/4 of one per UN assessments." +cent annual service'. charge. (It costs the U.S. Treasury around 4. - Sen. Ellender: "These IDA loans are virtually a give-away, per cent to borrow money.) But virtually all IDA borrowers because they are for 50 years without interest. Also, under this bill, : 'already are receiving large amounts of U.S. economic,and military countries borrowing from IDA can use the money to purchase goods aid, as follows: Pakistan, Turkey, South Korea, Formosa, Jordan, ? whenever they decide. They can 'do that at a time when our gold'' `Chile, Colombia, Haiti, Ethiopia, Sudan Tunisia. reserves are in critical state and when our balance-of-payments All these countries, including India, are in arrears on United is a very grave problem." Nations assessments. As of Dec. 31, 1963, they owed more than $16 Sen. Morse also stressed that countries obtaining Interest-free! million. IDA loans are re-lending money in their own countries at interest; A bipartisan group of senators made a determined fight to hold rates up to 12 per cent. up action on the $312 million bill on the ground it should be con- sidered as, part of the whole foreign aid program. MYSTERIOUS SHIFT "What's the rush and why the' hurry?" demanded Senator,' Career diplomat Livingston Merchant, with the permanent rank ,Wayne Morse, D-Ore. "We ought to stop and take a longer look. ?of, ambassador, has taken a high-level job in the Central Inteli- We should not pass this bill until we make our decision later this lgence Agency: Merchant has been working on negotiations involving year' on the whole foreign assistance program. We should look atf:the multilateral nuclear force launched by the late President Ken- ?it as a total package, and not segmentize it in this way. This is ai reedy. There has been no announcement of Merchant's switch to serious mistake,' because not a single senator, including the ma-i,CIA, and all inquiries are met with silence. . . . Rep. HoWard jority leader, know what the administration's program for foreign,; Smith, D-Va., dour chairman of the powerful Rules Committee, has. aid is. told Speaker John McCormack he will report out 'the long-stilled STEA'IIROLLING THE OPPOSITION area redevelopment bill whenever the administration is ready to: Sell. Morse's motion to send the measure back to the Foreigt'? have it considered by the House. The 'measure. passed the Senate Relations Committee was defeated 37 to 33 - 'a significantly close 'last year, but has been held up in the House because of lack of votes margin, that bodes ill for the President's proposed $3.4 billion for- to put it over., So far' the administration is short at least 20 votes... eign aid budget. . - ;'Sen. Albert Gore, D-Tenn., a leading opponent of-the $11 billion' While the administration's steamroller was able to ram the $312 tax-cutting bill, admits there is, no ?chance of blocking It. He' will' million bill through.the Senate; the outlook for the9 big appropria-continue to battle it in the Senate, but is telling colleagues he tion is not promising: The President has his work cut out for him Icnows the measure will be passed 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. y ig n or oregn u, the United States in the administering of foreign aid, and on,' Approved For Release 2003/12/02 : CIA-RDP75-00001 R000200310002-0