LONG-RANGE PROGRAM OF FOREIGN AID URGED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00001R000200330022-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: October 19, 1998
• Sequence Number: 22
• Publication Date: March 21, 1957
• Content Type: NSPR

MAR 21 1957
(For Reea$e 1999/09/07` CIA-RDP7592
CPYRGHT,'
and foreign affairs specialist.
proposed yesterday a 10-year,
10-biliott-dollar loan.andlgrant
ail program to help underde-
veloped. nations mobilize their
resources, and start the "proc-
ess of growth" toward eco-
nomic 'self-sufficiency.
Milikan, now director of the
Center for International Stud-
les at Massachusetts -Institute
of Tecbuolog% .was tbst Arai
which will spend the next three
weeks on the meet intenelve
study of the aid program since
its inception.
The hearings were launched
at the time when foreign eco-
nomic aid was under its sharp-
est eangressional attack.
Congressional Aversion
Mlllikan s strongest appeal
came in precisely those areas
most objectionable to Congress:
economic aid; that `the Ad-
ministration must have wide
latitude and flexibility in
handling the outlays; and that
aid should not. favor nations
"who call themselves our allies"
as against "those who profess
neutrality."
This was his central thesis:
"We doubt whether without
help most of the underdevel-
oped countries can make the
transition from static, low-in-
Jeome economies to eodnomle
which can plow back enough of
their earnings to get them over
the hump and keep them grow.
g?"
sg
Rs*fe Tha
Millikan outlined a ltmg.
range plan based on strict eco-
nomic measurements, such as
capacity to Increase produc-
tivity by 2 to 3 per cent a year.
Og the total amounts Invested,
hb said some $D- per cent could
Isb in the form of loans, the
balance in grants.
The limited capacity to ab-
sorb development assistance
in the underdeveloped areas
Auoctatod Pros
MILLIKAN
most Used in congressional ei-
forte to, gut President Eisen-
hdw*M s regtsest for $4 billion
in now foreign aid approprio-
U&4 ' tea . year starting
July
Influential Senators of both
parties .am talking . privately.
of a reduction to $3 billion
or' so.
"Qrualal" ,to India
Asked by Green what would
happen it the United States
ended all its development as-
would probably mean - an in-Isistance aid, for shah economic
crease in present programs of
:fro more thin $1 billion to $L5
billion Milliken said.
Dr. Herbert W. Robinson
resident of the Council ot*
Economic and' Industry -Re-
search, Inc., agreed with Miili-
kan an major points. . He
warned the committee, headed
'by Sen. Theodore Francis
'Green (D-R.L) that. Bovist a
,_ UP
programs
our standards," Cady, , h+i y
"achieved some remarkable
political results."
Unpleasant Facts
"Moreover," he testified, "it
~i~e Fates 'tea hOd`d.? I not
lose sight of these unpleasasst
facts. The foreign aid program
is an important element in
our efforts, to achieve national
ssecurity and It should
well-tho tout pier to win
the cold war." of he
',foreiThe aid pro ~ "budget
, 8
'said, "seems often over-ernpha-
sized. " Basically, It nth ; Oat
CIA-RDP75009 1AA6020033-0022-6
power and the like, Millikan
said that underdeveloped na-
tions "would turn Increasingly
to the Soviet bloc* and would
be encouraged to ad t "totali-
tarian methods" of govern-
ment to squeeze more resources
from their own subjects. Small
as it has been ' Arnbrlcan -aid
has been "quite crucial" to:
countries lilos India, Mlllikani
said.
Loans for capital develop-
ment could tome in part from
the World ' Bank, he said, or
from the United States Treas.
ury. Other advanced nations
should take b share of the
load, perhaps adding 25 per
cent to the American assist-
Millikaa disagreed with find-
ings of the pruddent's own for-
eign Xmi.talft tudy, beaded by Ben-
Iamiteas, that private
apiover a major
share of the load. He also dis-
agreed with the Fairless pro-
vow 04 projects be
planned and appropriated 'for,
l'two_ Fears in advance. That..