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• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000600170003-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 22
• Document Creation Date: December 9, 2016
• Document Release Date: August 24, 2001
• Sequence Number: 3
• Publication Date: June 25, 1973
• Content Type: OPEN

Approved For Release 2001/08/30 ; CIA-RDP751300380R000600170003-9
June 25, 1973 CONGRESSIONAL RECORD ? SENATE
AUTHORIZING ML/TART ASSISTANCE ADVISORY
GROUPS AND MISSIONS
SEC. 2502. On and after July 1, 1977, no
military assistance advisory group, military
mission, or other such organization of the
United States Government in a foreign
country Shall be established or continued
unless such group, mission, or organization
is authorized by law specifically for that
country and the foreign country agrees to
reimburse the United States Government
for the entire cost of suCh group, mission,
or similar organization.
Chapter 27.?Supporting Assistance
GENERAL AUTHORITY
SEC. 2701, The President is authorized to
furnish supporting assistance to foreign
countries, eligible to receive assistance under
this Act on such terms and conditions as he
may determine, in cases in which irnportant
security interests of the United States are
involved.
AUTHORIZATION 01' APPROPRIATIONS
? SEC. 2702. (a) There are authorized to be
appropriated to the Secretary of State to
carry out this ehaPter, not to exceed $95,-
000,000 for the fiscal year 1974, which sum
shall be allocated and made available to?
or for each of the following foreign coun-
tries and not in excess of the amount spe-
cified for that country:
Country; Amount
(1) Israel $50, 000, 000
(2) Jordan 35, 000, 000
(3) Thi
_ 7, 000, 000
? jo,,,,ve 000
#01??????
? ? ?
- ?
) No part of any appropriation
available to carry out this or any other
shall be used to conduct any police trainin
or related program for a foreign country.
de
Cha
V.?MISCE ? _ *II PROVISION
?
?General Li
I ?
TRANSFERS OF MILITARY VESSELS AND BOATS
SEC. 3102. Notwithstanding any other pr..
vision of law, no vessel or boat of the United
States Government (including, but not lim-
ited to, any battleship, aircraft carrier,
cruiser, destroyer, or submarine) may be
sold, loaned, leased, given, or transferred by
any other means to a foreign .country or
international organization only in accord-
ance with the provisions of this Act and, in
the case of any battleship, aircraft carrier,
cruiser, destroyer, or submarine, only if such
transfer is specifically authorized by law.
? USE OF UNITED STATES ARMED FORCES
SEC. 3102. The making of any sale, credit
sale, or guaranty, or the furnishing of any
assistance, under this Act shall not be con-
strued as creating a new commitment or as
affecting any existing commitment to use '
Armed Forces of the United States for the,
defense of any foreign country.
FAILURE TO PROVIDE REQUESTED INFORMATION
SEC. 3103. (a) None of the funds made
available pursuant to the provisions of this
Act shall be used to carry out any provision
of this Act in any country or with respect
to any project or activity after the expiration
of the 35-day period which begins on the
date the General Accounting Office or any
committee of the Congress charged with con-
sidering legislation, appropriations, or ex-
penditures under this Act has delivered to
the office of the head of any agency of the .
United States Government carrying out such
provision a written request that it be fur-
nished any document, paper, communication,
audit, review, finding, recommendation, re-
port, or other material in its custody or
control relating to the administration of such
provision in such country or with respect
to such project or activity, unless and until
there has been furnished to the General
Accounting Office, or to such committee, as
the case may be, the document, paper, com-
munication, audit, review, finding, recom-
mendation, report, or other material so re-
quested.
(b) The provisions of subsection (a) of
this section shall not apply to any communi-
cation that is directed by the President to
a particular officer or employee of any such
agency or to any communication that is di-
rected by any such officer or employee to the
President.
? PROCUREMENT
SEC. 3104. (a) Funds made available under
this Act may be used for procurement out-
side the United States only, if the President
determines that such procurement will not
result in adverse effects upon the economy
of the United States or the industrial mo-
bilization base, with special reference to any
areas of labor surplus or to the net position
of the United States in its balance of pay-
ments with the rest of the world, which out-
weigh the economic or other advantages to
the United States of less costly procurement
outside the United States, and only if the
price of any commodity procured in bulk is
lower than the market price prevailing in
the United States at the time of procure-
ment, adjusted for differences in the cost
of transportation to destination, quality, and
terms of payment.
(b) No funds made available under this
Act shall be used for the purchase in bulk
of any commodities at prices higher than
the market price prevailing in the United
States at the time of purchase, adjusted for
differences in the cost of transportation to
destination, quality, and terms of payment.
(c) In providing for the procurement of
any agricultural commodity or product
thereof available for disposition under the
Agricultural Trade Development and Assist-
ance Act of 1954, as amended, for transfer by
grant under this Act to any recipient coun-
try in accordance with its requirements, the
President shall, insofar as practicable and
when in furtherance of the purposes of this
Act, authorize the procurement of such agri-
cultural commodity only within the United
States except to the extent that such agri-
cultural commodity is not available in the
United States in sufficient quantities to sup-
ply emergency requirements of recipients un-
der this Act.
(d) In providing assistance in the procure-
ment of commodities in the United States,
the United States dollars shall be made avail-
able for marine insurance on such commodi-
ties where such insurance is placed on a com-
petitive basis in accordance with normal
trade practice prevailing prior to the out-
break of World War It, except that in the
event a participating country, by statute, de-
cree, rule, or regulation, discriminates against
any marine insurance company authorized
to do business in any State of the United
States then commodities purchased with
funds provided hereunder and destined , for
such country shall be insured in the United.
States against marine risk with a company
or companies authorized to do a marine in-
surance business in any State of the United
States.
(e) No funds made available under this
Act shall be used for the procurement of any
agricultural commodity, or product thereof
outside the United States when the domestic
price of such commodity is less than parity.
(f) The President shall take all appropri-
S 11915
ate steps to assure that, to the maximum ex-
tent possible, United States-owned foreign
currencies are utilized in lieu of dollars. Dol-
lar funds made available under this Act shall
not be expended for goods and services when
United States-owned foreign currencies are
available for such purposes unless the ad-
ministrative official approving the voucher
certifies as to the reason for the use of dol-
lars in each case. The President shall also
take all appropriate steps to assure that, to
the maximum extent possible, countries re-
ceiving assistance under this Act contribute
local currencies to meet the cost of con-
tractual and other services rendered in con-
junction with such assistance.
SMALL BUSINESS
SEC. 3105. Insofar as practicable and to the
maximum extent consistent with the ac-
complishment of the purposes of this Act,
the President shall assist American small
business to participate equitably in the fur-
nishing of commodities, defense articles, and
services (including defense services) financed
with funds made available under this Act by
causing to be made available to suppliers in
the United States, and particularly to small
independent enterprises, information, as far
in advance as possible, with respect to pur-
chases proposed to be financed with such
funds.
SHIPPING ON UNITED STATES VESSELS
SEC. 3106. The ocean transportation be-
tween foreign countries of commodities and
defense articles purchased with foreign cur-
rencies made available or derived from funds
made available under this Act or the Agri-
cultural Trade Development and Assistance
Act of 1954, as amended, shall not be gov-
erned by the provisions of section 901 (b)
of the Merchant Marine Act of 1936, as
amended, or any other law relating to the
ocean transportation of commodities on
United States flag vessels.
TERMINATION OF ASSISTANCE
SEC. 3107. Assistance (including sales) pro-
vided under any section of part U or part
III of this Act, may, unless sooner terminated
by the President, be terminated by concur-
rent resolution of Congress.
PUBLIC LAW 480
SEC. 3108. Section 101(c) of the Agricul-
tural Trade Development and Assistance Act
of 1954, as amended, is amended by striking
out the semicolon at the end of such section
and inserting in lieu thereof a comma and
the following: "except that nO agreement
may be entered into under this subsection
(c) unless such agreement has been specifi-
cally authorized by legislation enacted after
the date of enactment of the Foreign Mili-
tary Sales and Assistance Act;".
SOUTH VIETNAM, LAOS, AND CAMBODIA
SEC. 3109. (a) After June 30, 1973, no sale,
credit sale, or guaranty of any defense ar-
ticle or defense service shall be made, or any
military assistance (including supporting as-
sistance) furnished to South Vietnam or
Laos directly or through any other foreign
country unless that sale, credit sale, or
guaranty is made, or such assistance is fur-
nished, under this Act. The provisions of this
subsection shall not apply to funds obligated
prior to July 1, 1973.
(b) Any sale, credit sale, or guaranty made,
or assistance provided under this Act to Soutlt
Vietnam, Laos, or Cambodia shall be made
or furnished with the objective of bringing
about peace In Indochina and strict imple-
mentation of the cease-fire agreements in
Vietnam and Laos and any cease-fire agree-
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8 11916 CONGRESSION A: RECORD-- SENATE
anent that may be reached in the fermre with
respect to Cambodia.
(c) Armaments, munitions, and ever Inaba
rials may be provided to South Vietnam and
Lace under any provision of the; Act only
for the purpose of replacing, on the basis of
piece for piece and with armaments, niun-
tnens, and war materials of the same charac-
teristics and properties, thoee are ailments,
munitions, and war materials destroyed,
damages, worn out, or used up (1) in tile
case of South Vietnam, after January 27,
1973, and which are Included on lists previ-
ously furnished by the Government of South
Vietnam to the International Commission of
Control and Supervision for Vietnam, and
(2) in the case of Laos, after February 21,
1073, and which are included on lists previ-
ously furnished by the Government of Lacs
to the International Commission ol Control
and Supervision for Laos.
(d) If a cease-fire agreement is entered
into with respect to Cambodia, then, com-
mencing with the date such agreement be-
comes effective, armaments, munitions, Exid
war materials shall be provided Cambodia
under this Act only and strictly in accord-
ance with the provisions of such agreemenis
(e) Armaments, munitions, and war ma-
terials may be provided to South Vietnam
without regard to the provisions at subsec-
tion (c) of this section if the President finds
and reports to Congress that the Agreement
on Ending the War arid Restoring Peace ia
Vietnam, signed in Paris on January 27, 117e,
is no longer In effect. No armaments, muni-
tions, or war materials may be provided in
accordance with this subsection, however,
until the President has reported such fintimg
to Congress.
(f) The President shall submit to Congres,s
within 30 days after the end of each quarter
of each fiscal year, a report on (1) the nature
and quantity of all types of foreign assist-
ance provided by the United States Govern-
ment to South Vietnam, Laos, and Cambodia
under this or any other law, (2) the nuneeer
In, or who are involved in providing such
assistance to, such countries and who are
paid directly or indirectly with funds of ehe
United States Government, and (3) the gen-
eral status of the implementation of all
cease-fire agreements with respect to Indo-
china. For purposes of this subsection, "for-
eign assistance" and "provided by the Unieed
States of Government" have the same mean-
ings given those terms under section 3301
(d) of this Act.
ACCESS TO CERTAIN Al/LITARY BASES ABROAD
SEC. 3110. None of the funds authorized to
be appropriated by this Act may be used to
provide any kind of assistance to any foreign
country in which a military base iE locaued
It?
(1) such base was constructed or isbeing
maintained or operated with funds furnished
by the United States; and
(2) personnel of the United States carry
out military operations from euch tare;
unless and until the President has deter-
mined, and informed in Congress in writine,
that the government of such country has,
consistent with security, authorized aceesS,
on a regular basis, to bona fide news mediis
correspondents of the United States to etch'
military base.
Chapter 33?Reports and Information
ANNUAL FOREIGN ASSISTANCE Revolve
Sra. 3301. (a) In order that the Congress
and the American people may be better end
more currently informed regarding the vol-
ume and coat of assistance extended by the
United States Government to foreisn coun-
tries and inter eatianal organizations, and in
order that the Congress and the American
people may be better info-rued regarding the
sale of arms to foreign countries and inter-
national organ hat; ens by private industry of
the United States, not later than December
31 of each yea* the President shall transmit
to the Congress an: annual report, for the
Decal year ending prior to the fiscal year in
which the report i transmitted, showing--
(1 ) the aggre gate dollar value of all foreign
assistance provided by the United States
Government ty any means to all foreign
countries and helernaticnal organizations,
and the aggregate (loner value of such assist-
ance by category provided by the United
States Government to each such country and
organization, during that fiscal year;
(2) the total amounts of foreign currency
paid by each foreign country or interna-
tional organiz silo a to the United States
Government it. sum a fiscal year, what each
payment was made for, whether any portion
of such payment wee returned by the United
States Government to the country or orga-
nization from which the payment was ob-
tained or whethee any such portion was
transferred by i he United States Government
to another foreign eountry or international
organization, end, if so returned or trans-
ferred, the kind el' assisearice obtained by
that country Or organization with those for-
eign currencies and the dollar value Of such
kind of assistatee;
(3) the aggregate dollar value of all weap-
ons, weapons systems, munitions, aircraft,
military boats, miletary vessels, and other
implements of war and the aggregate dollar
value of each late gory of such implements
of war, exported under any export license,
to all foreign countries and international
organizations, and to each such country and
organization, daring that fiscal year;
(4) all expor oS significant defense arti-
cles on the United States munitions list to
any foreign government, international orga-
nization, or ?tier foreign recipient or pur-
chaser, by the Unieed States under this Act
or any other authcrity, or by an individual,
corporation, paetnerehip, or other association
doing business in the United States, includ-
ing but not limited to, feel information as to
the particular defense articles so exported.
the particular rernpient or purchaser, the
terms of the export, including its selling
price, if any, and such other information as
may be appropriate to enable the Congress to
evaluate the distrnnation of United States
defense articles abroad; and
(5) such oth.0 matters relating to foreign
assistance provided by the United States
Government as tie, President considers ap-
propriate, inch din1 ! explanations of the In-
formation require S. under clauses (1)
through (3) of this subsection.
(b) All information contained in any re-
port transmitted u Icier this section shall be
public inforraaiion However, in the case of
any item of information to be included in
any such report that the President, on an
extraordinary .)0.91.1, determines is clearly
detrimental to the security of the United
States, he shall exp: sin in a supplemental re-
port why pub': catien of each specific item
would be- detrlineiree to the security of the
United States. A s mplement to any report
shall be transmitted to the Congress at the
same time that the report is transmitted.
(c) If the Congress is net in session at the
time a report or supplement is transmitted
to the Congress, the Secretary of the Senate
and the Clerk el the House of Representa-
tives shall accept the report or supplement
on behalf of their respective Houses of Con-
June 25, .1,/973
gross and present the report or supplement
to the two Houses immediately upon their
convening.
(d) For purposes of this section? i
) "foreign assistance" Means any !tangi-
ble or intangible item provided by th(e Uni-
ted States Government under this er any
other law to a foreign country or interna-
tional organization, including, but not lim-
ited to, any training, service or teehnalal ad-
vice, any item of real, personal, or !mixed
property, any agricultural commodity!, Uni-
ted States dollars, and any currencies owned
by We United States Government of any
foreign country; and
.;2) "provided by the United States Gov-
ernment" includes, but is not limited to, for-
eign assistance provided by means of gift,
loan, sale, credit, or guaranty.
QUARTERLY REPORTS
SEC. 3302, Commencing with the fiscal year
which begins July 1;1973, the Secretary of
State shall transmit to the Speaker Of the
House of Representatives and to the.Com-
mittee on Foreign Relations of the Senate,
within 30 days after the end of each:quar-
ter of each fiscal year, a written report with
respect to such quarter on-
1) (A) sales, credit sales, and guaranties
made to or on behalf of each foreign clearitry
under chapter 11 of this Act, giving in detail
each country to or on whose behalf such
sales, credit sales, and guaranties were ex-
tended, and the terms and conditions of such
sales, credit sales, and guaranties (includ-
ing the guaranty fee and the person extend-
ing the credit so guaranteed), (R) forecasts
of sales, credit sales, and guaranties te that
foreign country for the remainder of the fis-
cal year in which the report is transmitted
and the next succeeding fiscal year, and (C)
the. balance remaining to be paid by that
country on each loan made or guaranteed
under such chapter;
(2) the total value for each foreign .coun-
try of all deliveries of excess defense articles,
including a specification for each country
of the aggregate original acquisition, costs
and the aggregate value at time of delivery
of ouch articles;
(3) the total value of all defense articles
and defense services provided each fereign
country under this Act or any othet pro-
vision of law, specifying separately Lot each
such country (A) the total value of defense
articles and the total value of defense serv-
ices provided that country. and (B)! each
provision of law under which such articles
and services are provided and the total
value furnished under each such provision;
and
(1) (A) the number of United States Gov-
ernment personnel detailed or assigned to
each military assistance advisory group,
military mission, or other organization of
the United States Government in each for-
eign country performing activities similar to
any such group or MISRion, (B) the number
of such personnel detailed or assigned to
the Chief of the United States Diplcirnatic
Mission to that country performing primarily
military advisory duties, (C) the number of
such personnel so detailed or assigned to each
such group, mission, 'organization, and diplo-
matic mission on the first day of thei fiscal
year with respect to which such report per-
tains, and (D) the number of such person-
nel so detailed or assigned to each! such
group, mission, organization, or diplomatic
mission on the last of the quarter of the
fiscal year with respect to which that report
pertains.
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CONGRESSIONAL RECORD ? Hu u 11:6731
move from a nonmilitary, phase in
Southeast Asia, it is quite obvious that a
reasonable degree of stability is needed
in South Vietnam. The commodity im-
port program is a major way to provide
that stability, and a drastic cut at the
level proposed would wreak havoc in an
area where we do have continuing
obligations.
Mr. Chairman, I hope the amendment
Is defeated.
The CHAIRMAN. The question is on
the amendment offered by the gentle-
man from New York (Mr. BINGHAM).
The question was taken; and an a divi-
sion (demanded by Mr. BINGHAM) there
were?ayes 10, noes 79.
So the amendment was rejected.
AMENDMENT OFFERED BY MR. HARRINGTON
Mr. HARRINGTON. Mr. Chairman, I
offer an amendment.
The Clerk read as follows:
Amen... - ? ???????-- RINGTON :
, line 10, after the period, s
No assistance shall be furnished under this
section unless the President receives assur-
ances satisfactory to him that no assistance
furnished under this part, and no local cur-
rencies generated as a result of assistance
furnished under this part, will be used for
support of police, or prison construction an
administration, within South
nse : o o? any appropriation
made available to carry out this or any other
act or local currency generated through com-
modity sales programs shall be used for pub-
lic safety programs, police training, support,
or advisory programs, prison construction,
or prison administration within South
Vietnam."
(Mr. HARRINGTON asked and was
given permission to revise and extend his
remarks.)
Mr. HARRINGTON. Mr. Chairman, I
think it might be appropriate to briefly
describe the difference in the language
once again in somewhat less formalistic
terms. We adopted in committee the lan-
guage which was first read, which was
largely discretionary on the part of the
President and deals only with the sub-
stance of this legislation before us as far
as the ability to withhold from South
Vietnam any of those moneys in this bill
for the purpose of using them for public
safety programs.
My amendment needs no presidential
discretion. It involves any piece of legis-
lation in which any sums of money may
be found for the purpose of carrying out
public safety programs and, in general,
is aimed only at attempting to deal with
the problem of our allies in the use of
American funds for the suppression of
political activities in South Vietnam. The
amendment in the committee was deci-
sively defeated. I am not under any par-
ticular illusion that that is going to be
any different in debate this afternoon.
I do feel, though, that if we look at the
figures and attempt at least to see again
the problem presented, those who are
even remotely concerned about the prob-
lem might think it makes good sense.
The total amount for public safety
that is in our own legislation is about $1.3
million. The Department of Defense,
however, in legislation which will be
forthcoming later this year, has re-
quested a total of $10.6 million for the
purpose of carrying out public safety ac-
tivities on the part of the South Viet-
namese. I suspect that if the events of the
last few days are any indication of our
awareness in general of other programs,
there are other sums of money which we
in general are not aware of and other
pieces of legislation which are being used
for analogous or similar purposes.
I do not know that we can establish
for the benefit of those who want it to
say that we, in general, would not sup-
port someone who is more responsible to
civil liberties, but I think there has been
enough documentation; doc,pmentation
in such variety so that there should be
some appropriate concern that we not
use the funds from any source to provide
ability on the part of the Thieu govern-
ment to maintain any kind of public
safety apparatus which is directed to po-
litical pressure.
I do not think there is any particular
reason to try to embellish on this fund.
There are a variety of ways of dealing
ith the situation in which we find
urselves, historically and somewhat
rangely applied. I think it is useful in
me stage, that we are attempting to
ye some help to broaden the restric-
-ons already in the bill.
It is for that reason that I offer the
amendment, and I hope it might be
favorably considered.
Mr. MITCHELL of Maryland. Mr.
Chairman, I rise in support of the
amendment.
(Mr. MITCHELL of Maryland asked
and was given permission to revise and
extend his remarks.)
Mr. MITCHELL of Maryland. Mr.
Chairman and colleagues, there is some-
thing very abhorrent to me about the
idea of this Nation supporting and un-
dergirding a government which has sup-
pressed all forms of democracy under
the guise of providing police assistance.
My colleague from Indiana (Mr. DEN-
NIS) earlier stated his concern about our
meddling into the internal affairs of
countries, apropos of the amendment of-
fered earlier by my colleague from
Georgia.
,My feeling is that the more we involve
ourselves in trying to shore up unpopular
governments through the means of sup-
porting and sustaining police operations,
the more we run into danger of once
again being sucked into a kind of terrible
situation. The facts are very, very clear.
Under the public safety program of
the U.S. Agency for International Devel-
opment, the Vietnamese police force was
converted from a modest civil agency
of 19,000 men?Mr. ABOUREZK uses
10,000?in 1963 to a hugh paramilitary
organization of 120,000 men in 1973. U.S.
spending on this effort amounted to $155
million between 1967 and 1972?$85.7
million in U.S. Agency for International
Development funds and $69.6 million in
defense funds.
Under Central Intelligence Agency or-
ganized, and U.S.-financed, Operation
Phoeniz?purportedly designed to elimi-
nate the Vietcong infrastructure-
20,587 Vietnamese civilians were assassi-
nated between January 1968 and May
1971. Another 28,978?other sources say
46,695?were imprisoned without trial.
Source of figures is William E. Colby,
former head of Civil Operations and
Revolutionary Development Support?
the U.S. pacification program?and Di-
rector-designate of the Central Intelli-
gence Agency.
Let me cite one other thing here. The
first vice speaker of the House of Repre-
sentatives recently contacted one of our
colleagues, Congressman STARK, asking
him for support for the Government of
South Vietnam. I think Congressman
STARK'S reply was very meaningful, and
I would like to read it:
The HONORABLE D. B. XUAN MINIS: I re-
gret that I cannot accept the spirit or sub-
stance of your recent letter. You speak of
"freedom" when your country has been a
stage for the world showing kidnapping, im-
prisonment, and torture. The leaders of the
opposition parties are nowhere visible. Your
"democracy" seems to have no more credi-
bility than its paper claims of civil rights
and liberties for all!
Can you dispute that in January, 1973,
deputy Ho Ngoc Nhuan of your national
assembly disclosed a new version of what we
knew previously as "Operation Phoenix"? Is
it not true that under this plan anyone with
allegiances to the opposition is subject to
arrest and indefinite imprisonment?
There is widespread belief in this country
that our own civilian advisors are now serv-
ing as counsel to the national police special
branch in Saigon and the provincial interro-
gation centers. Can you deny the truth of
this rumor?
This prevailing philosophy that denies all
civil liberties is only one aspect of your gov-
ernment that I distrust. Far more serious,
I believe, is your utter disregard for the
humane priorities of all other "free socie-
ties." War orphans in South Vietnam number
in the hundreds of thousands and adequate
care is visibly lacking. Your population is
now one of refugees and yet little viable
planning has been developed for their sup-
port.
The vast amount of American foreign aid
you receive does not go to the support of
these people so critically in need of assist-
ance. We subsidize, instead, your military
needs and the social habits of government
officials. Such a blatant disregard for basic
humanitarianism is totally unacceptable to
me.
You may be certain that I will do all with-
in my power to see that all future American
aid to your country is suspended. I cannot,
under any circumstances, see the justifica-
tion for such misuse of desperately needed
dollars. This money must be used for the
support of oppressed people in our own
country and Vietnam who must depend on
their fellowman for assistance. You do not
provide this assistance.
American dollars should be spent abroad
for the good of people most sorely in need.
I believe that many thousands of the peo-
ple of your country fit this category. Until
all the world can witness that they are truly
being rehabilitated, you should not be per-
mitted the luxury of misappropriating and
abusing our aid.
FORTNEY H. STARK, Jr.,
Member of Congress.
JUNE 28, 1973.
Under the terms of the January 1973
agreement on the ending of the war and
restoring peace in Vietnam, we pledged:
Not to "impose any political tendency
or personality on the South Vietnamese
people" (article 9).
To remove "personnel associated with
the pacification program" (article 5) .
To prohibit "all acts of reprisal and
discrimination against individuals or
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organizations that have collaborated
with cne side or the other" (article 11).
While the Agency for International
Devekipment claims that they have dis-
continued aid to South Vietnamese pris-
ons and police, we find the following
items in the Agency for International
Development fiscal year 1974 budget:
A. I1DOCHINA POSTWAR RECONSTRUCTION
ASSISTANCE mown:zit
One, $869,000?for computer training
of 200 national police command Per-
sonnel.
Two, $1,505,000?for police telecommu-
nications system--U.S. Agency for Inter-
national DeVelopment project '130-11-
995-380. Of this, $985,000 will be for 24
U.S. civilian advisors.
Three, $256,000?for training of 64 po-
lice commanders--U.S. Agency for Inter-
national Development project 730-11.-
799-372.
B. 17NLIOUIDATED OBLIGATIONS ACCOUNT
One, $1, 285,000?for public tafety
communications?project 730-:i1 -710--
299
Two, $2.472,000--for National police
support?project 730-11-710-352.
Three, $30,000 for corrections cen-
ters?project 730-11-710-353.
Other?no Agency for International
Development Fund.
C. MILITAEY .ASSISTANCE SERV: cr FUNDED
PROGRAM
Expenditure of $3.8 millior by Depart..
merit of Defense to replenish police am-
munition and supplies---permissible un-
der peace agreement as "piece-by-piece'
supply tnansactione
D. PIASTER BUDGET SUPPORT PROGRA7/1
United States will transfer $50 mil-
lion from U.S. accounts to the GVN
budget, Senator KENNEDY tIstifled
on June 4, 1973, that on February 21,
1973, the United States obligated $100,-
000 in piasters for support of the prison
system, Many of the piasterE in teis ac-
count came from sale of agricultural pro-
ducts under the Public Law 480 food
for peace program.
Total: Except D, $15.2 milion desig-
nated for fiscal year 1974 support of Viet-
namese police and prisons.
From, press conference, January 2,
1973:
Chi Boa (Prison) is like South 'Vietnamese
society in miniature. There is everything
Irons former presidential candidates, Budd-
hist monks, women and children who have
never commited any offense, to the most
hardened criminals and, drug addicts. There
are countless children in South Vietnamese
prisons. Often a mother is arrested too
quickly to find anyone to care for her chil-
dren, so the children are arrested and im-
prisoned too.
On November 11, 1973, Thieu's nephew,
Hoang Due Nha, claimed that the Saigon
government arrested 50,900 political op-
ponents and killed 5,000. Source: OBS
Evening News.
The Saigon ministry of information
reported that the police made 7,200 raids
against political critics between Novem-
ber 8 and 15, 1972.
On June 11, 1973, Dr. John Champlin,
a former U.S. Air Force medical officer
with several years experience in Vietnam
told the House Foreign Affairs Commit-
tee that a gi oup of 124 Vietnamese citi-
zens suffernits from n permanent physi-
cal injures i ustained as a result of their
confinement in gun prisons reported that
they "had all been examined more than
once by An military Physicians
while in prison but they denied having
received so . nuch as an aspirin during
their confine ment." None had seen evi-
dence of U.S. efforts to "develop better
health fa les" in GVN prisons.
A fact sheet on the prisons in South
Vietnam follows:
A Fnor ii..SEET ON THE PRISONS OF
5017TH VIETNAM
MASS NATIONAL PRISONS
( 1) CM aoa, ?10,000 prisoners.
pi Phu Qms.--40,000 prisoners.
(3) Thu Dui --8,000 prisoners.
(4) Tan Hie' s-10,000 prisoners.
(5) Con Sons-15,000 prisoners.
OTHPE NATIONAL PRISONS
) 10 iN>)i( e priscns?-3,000 prisoners.
(2) Cer tral Intell igence Office prisons
300 prisoners.
(3) Cho Qua r.-500 prisoners.
(4) Americas Prison,
(6) past? for youth under 20-2,000
(strictly politi'al prisoners).
Military Pr..!on.s-- opponents may claim
these have bee i shut down.
(1) Go V ap-- - 15,000 prisoners.
(2) Military Secrel, Service Prison-71,000
prisoners.
(3) Army II telligence Officer-500 prison-
ers.
OV1NC7AL PRISONS
(1) 11 Saigon District Prisons-5,000
prisoners.
(2) 50 Provn ward Prisons---60,000 prisoners.
(3) 48 Pr ovix cial Police Prisons.
(4) 48 Mee of Military Security Prisons.
(5) 48 :leg] mid Headquarters Prisons.
(6) 48 A nen can Intelligence Centers.
( '7) 260 :Dist let Prisons.
Source: Viet lain News and Reports (April-
May 1973).
By: Mr. Ngo Cong Duc, former Deputy of
the Saigon Assembly and former President of
a Saigon rewspaper Association.
Mr. MORGAN, Mr. Chairman, I rise in
oppositior to the amendment.
Mr. Chairman, Use language the gen-
tleman would strike out is:
No assistance shall' be furnished under
this section unie the President receives as-
surances sitisf- sftory to him that no assist-
ance furnis bed under this part, and no local
currencies generated as a result of assist-
ance furnished under this part, will be used
for support of rolice, or prison construction
and administri ion, within South Vietnam.
The committee put that in. Of course,
the gentleman now comes along to strike
that out, bind he would insert:
No part of :lay appropriation made avail-
able to carry out this or any other act or
local currency generated through commodity
sales programs iball be used for public safety
programs, polise training, support, or ad-
visory programs, prison construction, or
prison adm ration within South Vietnam.
This makes it pretty plain. Let us look
at what haimened ilk South Vietnam.
AID has withilravvn its public safety ad-
visors in Sou Ii Vietnam, in accordance
with the cease-fire agreement of January
22, 1973, and has terminated its pro-
gram of Assistance to South Vietnam
prisons. Theinfore, I see no reason for
the amend me: it.
I tmderstani that DOD has some plans
from its appropriations to supply some
ilia!, 26, 19ill
replacement equipment and commodities
to the National Police Force. These are
supplies that are vitally needed.
I believe the :language of the present
bill will give flexibility to the: President
to make the determination about what
is needed to be supported and .1 ask that
the amendment be rejected.
The CHAIRMAN. The queition is on
the amendment offei ed by the gentleman
from Massachusetts (Mr. HARRINGTON).
The question was taken; and on a divi-
sion (demanded by Mr. HARRINGTON)
there were?ayes 23, noes 57.
So the amendment was rejected.
The CHAIRMAN. The Clerk; will read.
The Clerk read as follows:
U.S. EXPORT DEVELOPMENT CREDIT FUND
Sam 25. (a) The Foreign Assiista.nce Act of
191, as amended by section 24 of this Act.
Is amended by adding at the end thereof the
following new part:
"Pairs VI
"Sso. 90t. GENERAL AUTHORITY.?(a) In the
interest cs! increasing United States exports
to the lowest income countries, thereby con-
tributing to high levels of employment and
income In the United States and to the
establishment and maintenance of long-
range, growing export markets, while promot-
ing develdament of such countries; the Presi-
dent shall establish a fund, to be known as
the 'United States Export Development Credit
Fund', to be used by the President to carry
out the authority con allied in this part.
"(b) The President is authorized to pro-
vide extensions of credit, upon reasonable
assurances of repayment, for the purpose of
facilitating the sale to the lowest income
countries of United States goods and serviees
which advance mutual development. The
provisions of section 201 (d) of this Act shall
apply to extensions of credit under this
part. The authority contained in this part
shall be used to extend credit in connection
with the :rale of goods and services which
are of developmental character, with due
regard for the objectives stated In section
102(b) of this Act.
"(c) The receipts and disbursements of
the Fund in the discharge of its functions
shall be treated for purposes of the budget
of the United States Government in the same
fashion as the receipts and disbursements
of the Exuort-Import Bank of the United
States under section 2(a) (2) of the Export..
Import Bank Act of 1945.
"SEC. 902. PINANCING.?( a) As May here-
after be srovided in annual appropriation
Acts, the President is authorized to borrow
from whatever source lie deems appropriate,
during the period beginning on the date of
enactment of this part and ending on Decem-
ber 31, 1177, and to Issue and a sell such
obligations as he determines necessary to
carry out the purposes of this part. The
aggregate amount of such obligations out-
standing at any one time shall not exceed
one-fourth of the amount specified In sec-
tion '7 of the Export-import Bank Act of
1945 on July 1, 1973. The dates of issuance,
the maximum rates of interest, and other
terms and conditions of the obligations is-
sued under this subsection will be deter-
mined by the Secretary of the Treasury with
the approy al of the President. Obligations
issued under the authority of this section
shall be obligations of the Government of
the United States of America, and the full
faith and credit of the United States of
America is hereby pledged to the, full pay-
ment of principal and interest thereon. For
the purpose of any purchase of the obliga-
tions issued under this part, the 'Secretary
of the Treasury is authorized to: use as a
public debt transaction the proceeds from
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"PART V
"CHAPTER 1. POLICY
"SEC. 801. STATEMENT OF POLICY.,--T1 is the
purpose of this part to, (1) authorize immedi-
ate high-priority humanitarian relief assist-
ance to the people of South Vietnam, Cam-
bodia, and Laos, particularly to refugees,
orphans, widows, disabled persons, and other
war victims, and (2) to assist the people of
those countries to return to a normal peace-
time existence in conformity with the Agree-
ment on Ending, the War and Restoring the
Peace in Vietnam, the cease-fire agreement
for Laos, and any cease-fire agreement that
may be reached in Cambodia. In this effort
United States bilateral assistance should
focus OA Critical ',problems in those sectors
which affect the lives of the majority of the
people in Indochina: food, nutrition, health,
population planning, education, and human
resource development. United States assist-
ance should be carried out to the maximum
extent possible through the private sector,
particularly those voluntary organizations
which already have ties in that region-
"CHAPTER 2.?GENERAL AUTHORITY AND
AlTriaosizaTioN
"Sac. 821. GENERAL AUTHORITY.--rThe Pres-
ident is authorized to furnish, on such terms
and conditions as he may determine, assist-
ance for relief and reconstruction of South
Vietnam, Cambodia, and Laos, including es-
pecially humanitarian assistance to refugees,
civilian war castle, ittea, and other persons
disadvantaged by hostilities or conditions re-
lated to those hostilltie,s in South Vietnam,
Cambodia, and Laosp10 assistance shall be
furnished under this, section to South Viet-
nam unless the President receives assur-
ances satisfactory to him that no assistance
furnished under this part, and no local cur-
rencies generated as a result of assistance
furnished under this 'part, will be used for
stipport of police, or prison construction and
adininistration, within South Vietnam.
' "Sze. 822. Atrutoaizartow.?There are au-
thorized to be appropriated to the President
to carry out the purposes of this chapter, in
addition to funds otherwise available for
such purposes, for. the fiscal year 1074 not to
exceed $632,000,000, which amount is au-
thorized to remain_ available until expended.
"Sac. 823. CRNTER FOR PLASTIC AND RECON-
STRUCTIVE STJEGERY IN SAIGON.?Of the funds
' appropriated pursuant to section 822 for the
fiscal year 1974, not less than $712,000 shall
be available solely for furnishing assistance
to the center for Plastic and Regonstructive
Surgery in Saigen.
"Sze. 824. ASSISTANC.E TO SOUTH VIETNAMESE
CHILDREN.?(a) It is the sense of the Con-
gress that inadequate provision has been
made (1) for the establishment, expansion,
and improvement of day care centers, or-
phanages, hostels, school feeding programs,
health and welfare programs, and training
related, to these programs which are designed
for the benefit of South Vietnamese chil-
dren, disadvantaged by hostilities in Viet-
nam or conditions related to those hostilities,
and (2) for the adoption by United States
citizens of South Vietnamese children who
are orphaned or abandoned, or whose parents
or sole surviving parent, as the case may be,
has irrevocably relinquished all parental
rights, particularly children fathered by
United States citizens.
"(b) The President is, therefore, author-
ized to provide assistance, on terms and con-
ditions he considers appropriate, for the pur-
poses described in clauses (1) and (2) of
dubsection (a) of this section. Of the funds
appropriated pursuant to section 822 for fis-
cal year 1974, $5,000,000,0r its equivalent in
local currency, shall be available until ex-
pended solely to carry out this section, Not
More than. 10 percent of the funds made
available to carry out this section may be
-expended fox the purposes referred to in
clause (2) of subsection (e.i. Assistance pro-
vided under this section shall, be furnished,
to the maximum extent practicable, under
the auspices of and by international agencies
or private voluntary agencies.
"CHAPTER 3.?CONSTRUCTION WITH
OTHER LAWS
"SEC. 831. Auxiwairy.?All references to
part I, whether heretofore or hereafter en-
acted, shall be deemed to be references also
to this part unless otherwise specifically pro-
vided. The authorities available to administer
part I of this Act shall be available to ad-
minister programs authorized in this part.".
MEANING OF REFERENCES
? Sac. 25. All references to the Foreign As-
-siatance Act of 1961 and to the Agency for
International Development shall be deemed
to be references also to the Mutual Develop-
ment and Cooperation Act and to the Mutual
Development and Cooperation Agency, re-
spectively. All references in the Mutual De-
velopment and Cooperation Act to "the
agency primarily responsible for administer-
ing part I" shall be deemed references also
,to the Agency for International Development.
references to the Mutual Development
and Cooperation Act and to the Mutual De-
.velopment and Cooperation Agency shall,
where appropriate, be deemed references also
to the Agency for International Development,
respectively.
FOREIGN MILITARY SALES
SEC. 26. The Foreign Military Sales Act is
amended as follows:
(a) Add the following new subsection at
the end of section 3 of chapter 1, relating to
eligibility:
"(c) No sophisticated weapons, including
Sophisticated jet aircraft or spare parts and
associated ground equipment for such air-
craft, shall be furnished under this or any
other Act to any foreign country on or
after the date that the President de-
termines that such country has violated any
agreement it has made in accordance with
paragraph (2) of subsection (a) of this sub-
section or section 505(a) of the Mutual De-
velopment and Cooperation Act or any other
provision of law requiring simlliar agree-
Ments. The prohibition contained in the
preceding sentence shall not apply on or
after the date that the President determines
that such violation has been corrected and
Such agreement complied with. Such coun-
try shall remain ineligible in accordance
With this subsection until such time as the
President determines that such violation has
ceased, that the country concerned has given
-asturances satisfactory to the President that
Such violation will not reoccur, and that, if
Such violation involved the transfer of so-
phisticated weapons without the consent of
the President, such weapons have been re-
turned to the country concerned.".
(b) In section 23 of chapter 2, relating
to credit sales, strike out "ten" and insert
in lieu thereof "twenty".
(c) In section 24(a) of chapter 2, relating
to guaranties, strike out "doing business in
the United States".
(d) In section 24(c) of chapter 2, relating
to guaranties:
(1) strike out "pursuant to section 31"
and insert in lieu thereof "to carry out this
Act"; and
(2) insert "principal amount of" imme-
diately before the words "contractual liabil-
ity" wherever they appear.
(e) In section 31(a) of chapter 3, relating
to authorization, strike out "$400,000,000 for
the fiscal year 1972" and insert in lieu there-
of "$450,000,000 for the fiscal year 1974".
(f) In section 31(b) of chapter 3, relating
-Le autherivation, strike out "(excluding
credits covered by guaranties issued pursuant
to section 24(b) ) and of the face amount of
guaranties issued pursuant to sections 24
(a) and (b) shall not exceed $550,000,000
for the fiscal year 1972, of which amount not
H 6753
less than $300,000,000 shall be available to
Israel only" and insert in lieu thereof "and
of the principal amount of loans guaranteed
pursuant to section 24(a) shall not exceed
$760,000,000 for the fiscal year 1974, of which
amount not less than $300,000,000 shall be
available to Israel only".
(g) In section 33(a) of chapter 3, relating
to aggregate regional ceilings:
(1) strike out "of cash sales pursuant to
sections 21 and 22.";
(2) strike out "(excluding credits covered
by guaranties issued pursuant to section 24
(b) ), of the face amount of contracts of
guaranty issued pursuant to sections 24(a)
and (b)" and insert in lieu thereof "of the
principal amount of loans guaranteed pur-
suant to section 24(a)"; and
(3) strike out "$100,000,000" and insert
in lieu thereof "$150,000,000".
(h) In section 33(b) of chapter 3, relating
to aggregate regional ceilings:
(1) strike out "of cash sales pursuant to
sections 21 and 22,";
(2) strike out "(excluding credits covered
by guaranties issued pursuant to section 24
(b) ), of the fact amount of contracts of
guaranty issued pursuant to sections 24 (a)
and (b)" and insert in lieu thereof "of the
principal amount of loans guaranteed pur-
suant to section 24(a)".
(1) In section 33(c) of chapter 3, relating
to aggregate regional ceilings:
(1) strike out "expenditures" and insert
In lieu thereof "amounts of assistance,
credits, guaranties, and ship loans";
(2) strike out "of cash sales pursuant to
sections 21 and 22," and
(3) strike out "(excluding credits covered
by guaranties Issued pursuant to section 24
(b)), of the face amount of contracts of
guaranty issued pursuant to sections 24(a)
and (b)" and insert in lieu thereof "of the
principal amount of loans guaranteed pur-
suant to section 24 (a) ".
(j) In section 36 of chapter 3, relating to
reports on commercial and governmental
military exports, strike out subsection (a)
and redesignate subsections (b) and (c) as
subsections (a) and (b), respectively.
(k) In section 37(b) of chapter 3, relat-
ing to fiscal provisions, insert after "indebt-
edness' the following: "under section 24(b)
(excluding such portion of the sales pro-
ceeds as may be required at the time of dis-
position to be obligated as a reserve for pay-
ment of claims under guaranties issued pur-
suant to section 24(b), which sums are
hereby made available for such obligations) ".
REVISION OF SOCIAL PROGRESS TRUST FUND
AGREEMENT
SEC. 27. (a) The President or his delegate
shall seek, as soon as possible, a revision of
the Social Progress Trust Fund Agreement
(dated June 19, 1961) between the United
States and the Inter-American Development
Bank.
Such provision should provide for the?
(1) periodic transfer of unencumbered
capital resources of such trust fund, and
of any future repayments or other accruals
otherwise payable to such trust fund, to?
(A) the Inter-American Foundation, to
be administered by the Foundation for pur-
poses of part IV of the Foreign Assistance Act
of 1969 (22 U.S.C. 290f and following);
(B) the United States Department of
State to be administered by the Mutual De-
velopment and Cooperation Agency for pur-
poses of sections 1 and 2 of the Latin Amer-
ican Development Act; and or
(C) subject to the approval of the De-
partment of State, to the United States
Treasury for general uses of the Government;
and or
(2) utilization of such unencumbered
capital resources, future repayments, and
other accruals by the Inter-American Devel-
opment Bank for purposes of sections 1 and
2 of the Latin American Development ,Act
(22 U.S.C. 1942 and 1943) in such a way that
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CONGRESSIONAL RECORD? HOUSE July 26, 19i.i
the resources received in the currencies of
the more developed member countries are
utilized to the extent possible for the bene-
fit of the lesser developed member countries.
(b) Any transfer of utilization under this
section shell be in such proportions as may
be agreed to between the United States eird
the Inter-American Development Bank.
(c) Any transfer under subparagraph ,; A)
of subsection (a) (1) shall be in the amounts,
and in mailable currencies, determined in
consultation with the Inter-American Peens-
dation, to be required for Its program
purposes.
(d) The revision of the Social Progress
Trust Fund Agreement pursuant to this sec-
tion shall provide that the President or his
designee shall specify, from time to time,
after consultation with the Inter-American
Development Bank, the particular currencies
to be used in masking the transfer or utiliza-
tion described in this section.
(e) Not later than January 1, 1974, the
President shall report to Congress on his ac-
tion taker, pursuant to this section.
SEC. 28. Notwithstanding any other provi-
sion of law, no funds authorized by this Act
shall be expended to aid or assist in the re-
construction of the Democratic Republic of
Vietnam (North Vietnam), unless by am Act
of Congress assistance to North Vietnam is
specifically authorized.
'The motion was agreed to.
The Senate bill Was ordered to be read
a third time, was read the third time,
and passed.
The title was amended so as to read:
"To amend the Foreign Assistance Act
of 1961, and for other purposes."
A motion to reconsider was laid on the
table.
A similar House bill (H.R. 4360) was
laid on the table.
AUTHORIZING CLERK TO COR-
RECT SECTION NUMBERS AND
PUNCTUATION IN ENGROSSMENT
Mr. MORGAN. Mr. Speaker, I ask
unanimous consent that in the engross-
ment of the House amendment to S. 1443,
the Clerk be authorized to correct section
numbers, punctuation, and cross-refer-
ences.
The SPEAKER. Is there objection to
the request of the gentleman from
Pennsylvania?
There was no objection.
GENERAL LEAVE
Mr. MORGAN. Mr. Speaker, I ask
unanimous consent that all Members
may have 5 legislative days in which to
revise and extend their remarks on the
bill just passed.
The SPEAKER. Is there objection to
the request of the gentleman from
Pennsylvania?
There was no objection.
PROVIDING FOR THE CONSIDERA-
TION OF S. 1989
Mr. MADDEN, from the Committee on
Rules, reported the following privileged
resolution (H. Res. 512, Rept. No. 93-
407) which was referred to the House
Calendar and ordered to be printed:
H. RES. 512
Resolved, That upon the adoption of this
resolution it shall be in order to move that
the House resolve Itself into the Committee
of the Whole Heuse on the State of the
Union for the co nsideration of the bill (S.
1989) to amend section 225 of the Federal
Salary Act o:! 1907 with respect to certain
executive, legislative, and judicial salaries.
After general debate, which shall be con-
fined to the bill and shall continue not to
exceed one Ileum to be equally divided and
controlled le 7 the chairman and ranking
minority mer abet of the Committee on Post
Office and Chil S rvice, the bill shall be read
for amendment under the five-minute rule.
At the conclusion of the consideration of
the bill for wee/lament, the Committee shall
rise and report ehe bill to the House with
such amndntentm as may have been adopted,
and the previus auestion shall be considered
as ordered on :Me bill and amendments
thereto to fimal passage without intervening
motion except one motion to recommit.
PROVIDING FOR THE CONSIDER-
ATION OF S. 1697
Mr. MADDEIr? from the Committee on
Rules, reported the following privileged
resolution ca. Fes. 511, Rept, No. 93-406)
which was referred to the House
Calendar and orderedd, to be printed:
lf. Res. 511
Resolved, That upon the adoption of this
resolution it shall be in order to move,
clause 27(d) (4), Rule XI to the contrary
notwithstancing that the House resolve it-
self into the Committee of the Whole House
on the State of the Union for the considera-
tion of the bill (S. 1697) to require the
President to feunish predisaster assistance
in order to vert or lessen the effects of a
major disaster in the counties of Alameda
and Contra Cost:: in California. After general
debate, which shall be confined to the bill
and shall continue not to exceed one hour,
to be equalle ditided and controlled by the
chairman and ranking minority member of
the Committee en Agriculture, the bill shall
be read for amendment under the five-
minute rule. It :Mall be in order to consider
the amendment in the nature of a substitute
recommendel Im the Committee on Agricul-
ture now printei in the bill as an original
bill for the r urp ose of amendment under the
five-minute rule. At the conclusion of such
consideration, the Committee shall rise and
report the bill to the House with such
amendments as may have been adopted, and
any Member ma e demand a separate vote in
the House on any amendment adopted in the
Committee of the Whole to the bill or to the
committee rmendment in the nature of a
substitute. 'She previous question shall be
considered as ordered on the bill and amend-
ments thereto to final passage without inter-
vening motien except one motion to recom-
mit With or without instructions.
PERMISSION TO FILE CONFERENCE
REPORT ON H.R. 8825, DEPART-
MENT OF HOUSING AND URBAN
DEVELOPMENT APPROPRIATIONS,
1974, UNTIL MMIGHT FRIDAY
Mr. BO:IANTD. Mr. Speaker, I ask
unanimous coasent that the managers
may 'have until midnight Friday to file a
conference report on the bill (HR. 8825)
making appropriations for the Depart-
ment of Homing and Urban Develop-
ment; for space, science, veterans, and
certain oilier independent executive
agencies, boaris, commissions, and cor-
porations for the fiscal year ending June
30, 1974, and far other purposes.
The SPEAKER. Is there objection to
the request of the gentleman from
Massachusetts?
There was no objection.
PERMISSION TO PILE CONFERENCE
REPORT ON H.R. 8947, PUBLIC
WORKS AND ATOMIC ENERGY
COMMISSION APPROPRIATIONS,
1974
Mr. EVINS of Tennessee. Mr. Speaker,
I ask unanimous consent that the man-
agers may have until midnight tonight
-to file a conference report on the bill
(H.R. 8947) making appropriations for
public works for water and power devel-
opment, including the Carps of Engi-
neers?Civil., the Bureau of Reclamation,
the Bonneville Power Administration and
other power agencies of the Department
of the Interior, the Appalachian regional
development programs, the Federal Pow-
er Commission, the Tennessee Valley Au-
thority, the Atomic Energy Commission,
and related independent agencies and
corn-Missions for the fiscal year, ending
June 30, 1974, and for other purposes.
The SPEAKER. Is there objection to
the request of the gentleman from Ten-
nessee?
There was no objection.
CONFERENCE REPORT (H. REPT. No. 93-409)
The committee of conferen Se on the dis-
agreeing votes of the two Houses on the
amendments of the Senate to the bill (H.R.
8947) "making appropriations for public
works for woter and power development, in-
cluding the Corps of Engineers?Civil, the
Bureau of Reclamation, the Bonneville Pow-
er Administration and other power agencies
of the Department of the Interior, the Ap-
palachian regional development programs, the
Federal Power Commission, the Tennessee
Valley Authority, the Atomic Energy Com-
mission, and related independent agencies
and commissions for the fiscal year ending
June 30, 1974, and for other purposes,', hav-
ing met, after full and free conference, have
agreed to reeornmend and do recommend to
their respective Houses as follows:
That the Senate recede from its amend-
ment numbered 1.
That the House recede from its disagree-
ment to the amendments of the Senate num-
bered 5, 7,-9, and 14; and agree to the same.
Amendment numbered 2: That the House
recede from its disagreement to the amend-
ment of the Senate numbered 2, and agree to
the same with an amendment, as follows: In
lieu of the sum proposed by said amendment
insert "81,714,263,000"; and the Senate agree
to the same.
Amendment numbered 3: That the House
recede from its disagreement to the amend-
ment of the Senate numbered 3, and agree to
the same with an amendment:, as follows: In
lieu of the sum proposed by said amendment
insert "$622,2'75,000"; and the Senate agree
to the same.
Amendment numbered 4: That the House
recede from its disagreement to the amend-
ment of the Senate numbered 4, and agree to
the same with an amendment, as follows: In
lieu of the cum proposed by said amendment
insert "656.142,000"; and the Senate agree to
the same.
Amendment numbered 6: That the House
recede from its disagreement to the amend-
ment of the Senate numbered 6, and agree to
the same with an amendment, as fellows: In
lieu of the turn proposed by said amendment
insert "$878,589,000"; and the Senate agree
to the same.
Amendment numbered 8: That the House
recede from its disagreement to the amend-
ment of the Senate numbered 8, and agree
to the same with an amendment, as follows:
In lieu of the sum proposed by said amend-
ment insert "6409,125,000"; and the Senate
agree to the same.
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June 29, 1973 CONGRESSIONAL RECORD - SENATE S 12559
210,361; Utah, $1,001,394; and Washing-
ton, $3,631,496.
Do I here argue against inclusion of
the hold-harmless provision in the fiscal
Year 1974 Labor-HEW Appropriation bill
and in the continuing resolution now
before us? No, I do not. I am sympathetic
to the situation faced by some States
confronted with a drastic reduction in
title I funds because of population
changes revealed by the 1970 census.
They require some cushion. What I argue
here is that some modification must be
made in the hold-harmless provision so
that States are cushioned against precip-
itous reductions in title I funds but
also, so that States with increased num-
bers of disadvantaged children might
receive additional title I funds reflecting
to some degree that increase. This could
be done by a phasing mechanism of 80
percent hold harmless, for example.
It is my intention to seek just such a
change in the fiscal year 1974 Labor-
HEW appropriation bill, a measure which
provides $1.81 billion for title I, ESEA,
and to which the figures to which I have
alluded apply. I do not believe it appro-
priate to seek to amend the bill now be-
fore us, as the continuing resolution
holds title I-A funding at a level of some
$1.5 billion, the fiscal year 1973 level,
and, hopefully, the continuing resolution
will be applicable for only a brief interim
before enactment of the fiscal year 1974
Labor-HEW appropriation bill.
This, it seems to me is a most reason-
able approach. It is fair. The provision
for hold harmless contained in the ap-
propriation bill is neither reasonable nor
fair.
Mr. President, I ask unanimous con-
sent that there be included at this point
in my remarks a chart utilizing data pro-
vided by the U.S. Office of Education
indicating how the States are affected
by the hold-harmless provision in the
fiscal year 1974 Labor-HEW appropria-
tions bill approved by the House and
now pending before the Senate Commit-
tee on Appropriations.
There being no objection, the tabula-
tion was ordered to be printed in the
RECORD, as follows:
State
Fiscal year Fiscal year
4974 ESEA I, 1974 ES EA I,
part A part A
estimated estimated
allotments allotments
with without
1972 floor 1972 floor
Alabama
Alaska
$42, 202,
4,108,
992
676
Arizona
11, 523,
805
Arkansas
26, 470,
169
California
151, 796,
957
Colorado
14, 061,
868
Connecticut
17, 099,
599
Delaware
3, 649,
464
Florida
39, 837,
839
Georgia
42, 188,
006
Hawaii
4, 636,
313
Idaho
3, 977,
755
Illinois
82, 549,
907
Indiana
20, 487,
387
Iowa
16, 645,
654
'Kansas
12, 478,
897
Kentucky
38, 302,
224
Louisiana
37, 989,
922
Maine
6, 549,
274
Maryland
24, 61,223
Massachusetts
33, 505,
700
Michigan
65, 576,
522
Minnesota
23, 183,
881
Mississippi
44, 154,
990
Missouri
28, 547,
584
Montana
4, 379,
638
$22, 685, 091
4,745, 528
93,047, 637
13, 383, 963
183, 335, 748
16, 598, 162
20, 457, 938
4, 212, 224
40, 721, 904
32, 050, 692
5, 594, 705
4,307, 637
100, 027, 048
24, 353, 714
12, 594, 561
11, 930, 161
23, 014, 304
31, 943, 897
7, 617, 589
29, 564, 565
40, 254, 091
78, 255, 320
22, 160,878
22, 829,237
24, 025,663
4,425, 127
Loss or gain
under hold
harmless
Percent
of
formula
allot-
ment
with
fiscal
year
1972
floor.
'
State
Fiscal year
1974 ESEA I,
part A
estimated
allotments
with
1972 floor
Fiscal year
1974 ESEA I,
part A
estimated
allotments
without
1972 floor
Loss or gainear
under hold
harmless
Percent
of
formula
allot-
ment
with
fiscal
11972
floor
+19,517,901
186.04
Nebraska
$8, 461, 135
$7, 789,028
+672, 107
108.63
-636,852
86. 58
Nevada
1, 666, 084
1, 950, 597
-284, 513
85.41
-1,523,832
88.32
New Hampshire
2, 801, 095
3, 304, 210
-503, 115
84.77
+13,086, 200
197.78
New Jersey
60, 773, 155
73, 044, 917
-12,271,762
83.20
-31, 538, 791
08.80
New Mexico
11,203, 896
10, 614, 276
+589,620
105.56
+2, 536, 294
84.72
New York
255, 282,719
309, 962, 830
-54,680,111
82.36
-3,358,339
03.58
North Carolina
61, 621, 074
35, 255, 652
+26, 365, 422
174.78
-562,700
8664
North Dakota
5, 447, 877
4, 140, 123
+1,307,754
131.59
-884,065
97.83
Ohio
51, 107, 359
61, 063, 079
-9,955,720
83.70
+10,137,314
139.63
Oklahoma
20, 300, 817
17, 010, 041
+3, 290, 776
119.35
-958, 392
82.87
Oregon
12, 858, 310
15, 009, 650
-2, 151, 340
85.67
-329, 882
92.34
Pennsylvania
74, 563, 599
88, 482, 429
-13,918,830
84.27
-17,477,141
82. 53
Rhode Island
6,041, 948
7, 252, 309
-1,210,361
83.31
-3, 866, 327
84. 12
South Carolina
37, 107, 533
18, 991, 562
+18,115,971
195.39
+4,051,093
132.17
South Dakota
6, 870, 494
4,632, 141
+2,238, 353
148.32
+548, 736
104. 60
Tennessee
38, 712, 613
20, 021, 999
+18,690,611
193.35
+15,287,920
166. 43
Texas
93, 439, 492
81, 923, 055
+11,516,437
114.06
+6, 046, 025
118.93
Utah
5, 302, 785
6, 304, 179
-1,001,374
84.12
-1,068,315
85.98
Vermont
3, 014, 806
3.268, 002
-253, 196
92.25
-4, 943, 342
83. 28
Virginia
37, 084,416
29; 347, 081
+7,737,335
126.36
-6,748,391
83. 24
Washington
19, 676, 262
23, 307, 758
-3,631,496
84.42
-12, 678, 798
83. 80
West Virginia
21, 681, 593
12, 118,337
+9;563, 256
178.92
+1, 023, 003
104. 66
Wisconsin
19, 931, 228
23, 752, 279
-3,821,051
83.91
+21,325, 753
193.41
Wyoming
I, 821, 060
1, 891, 064
-7, 004
101.59
+4,521,921
118.82
District of Columbia
13, 478, 984
16, 197, 598
-2, 718, 614
83.22
-45,489
98. 97
The PRESIDING OFFICER. What is
the will of the Senate?
Mr. GRiterIN. Mr, President, I suggest
the absence of a quorum.
The PRESIDING 'OFFICER (Mr.
DoiviEptici) . The clerk will call the roll.
The second assistant legislative clerk
proceeded to call the roll.
Mr. ROBERT C. BYRD. Mr. President,
I ask unanimous consent that the order
kr the quorum call be rescinded.
The PRESIDING OFFICER. Without
objection, it is so ordered.
AUTHORIZATION FOR COMMITTEES
TO FILE REPORTS UNTIL MID-
NIGHT
Mr. ROBERT C. :BYRD. Mr. President,
I ask unanimous consent that all com-
mittees may be authorized to file reports
until midnight tonight.
The PRESIDING OFFICER. Without
objection, it is so ordered.
AUTHORIZATION FOR COMMITTEES
ON COMMERCE AND LABOR AND
PUBLIC WELFARE TO FILE RE-
PORTS ON FRIDAY, JULY 6, 1973
Mr. ROBERT C. BYRE). Mr. President,
I ask unanimous consent that the Com-
mittees on Commerce and Labor and
public Welfare may be authorized to file
'reports on Friday, July 6, between the
hours of 10 a.m. and 3 p.m.
The PRESIDING OFFICER. Without
objection, it is so ordered.
Mr. ROBERT C. BYRD. Mr. President,
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk
will call the roll.
The second assistant legislative clerk
proceeded to call the roll.
Mr. ROBERT C. BYRD. Mr. President,
I ask unanimous consent that the order
or the quorum call be rescinded.
? The PRESIDING OFFICER (Mr.
HELMS) . Without objection, it is so
ordered.
EXTENSION OF LAWS RELATING
TO PAYMENT OF INTEREST
, Mr. ROBERT C. BYRD. Mr. President,
ask the Chair to lay before the Senate
a message from the House of Representa-
tives on Senate Joint Resolution 128.
The PRESIDING OFFICER (Mr.
HELMS) laid before the Senate the
amendment of the House of Representa-
.tives to the joint resolution (S.J. Res.
,128) to provide for an extension of cer-
tain laws relating to the payment of in-
terest on time and savings deposits,
which was in lines 5 and 6, strike out
""December 1, 1974" and insert "Au-
gust 1, 1973"."
Mr. ROBERT C. BYRD. Mr. President,
I have been asked by the distinguished
Senator from Alabama (Mr. SPARKMAN)
to move that the amendment, of the
House be agreed to. I have cleared this
also with the Senator from Texas (Mr.
TOWER) .
Mk. TOWER. Mr. President, I have no
objection. \
The PRESIDING OrriCER. The ques-
tion is on agreeing to the motion of the
Senator from West Virginia.
The motion was agreed to.
QUORUM CALL
Mr. ROBERT C. BYRD. Mr. President,
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk
proceeded to call the roll.
The second assistant legislative clerk -
proceeded to call the roll.
Mr. FULBRIGHT. Mr. President, I
ask unanimous consent that the order ,
for the quorum call be rescinded.
The PRESIDING 0101.1.CER. Without
objection, it is so ordered.
Mr. FULBRIGHT. Mr. President, I
send to the desk an amendment.
The PRESIDING OFFICER. The Sen-
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CONGRESSIONAL RECORD ? SENATE June
ate will please be in order so the Senator
can beht4eti.
Mr. FUtBRIGHT. Xi. -President, I of-
fer an amendment and ask for its im-
mediate consideration.
The PRESIDING OlvisiCER. The
amendment will be stated.
The amendment was read as follows:
On page 10, strike Sec. 109 and insert in
lieu thereof the following:
"Sec. lir). Notwithstanding any other pro-
vision of law, on or after August 15, 1973, no
funds herein, heretofore or hereafter appro-
priated may be obligated or expended to
finance the involvement of tfrthed States
military forces in hostilities in or over or
from off the shoree of North Vietnam, South
Vietnam, Laos, or Cambodia."
Mr. MBRIGHT. Mr. President, I
hope we nistar have order.
The PRESIDING OFFICER. The Sen-
ate will be in order, please.
Mr. FULBRIGHT. Mr. President, this
Is a very important statement dealing
with a subject which this body has 'eeen
concerned with for more than 10 years
now, I hope I may have the attention
of the Senate.
Mr. President, the Committee on For-
eign Relations has today agreed, by a
vote of 15 to 2, to a, committee amend-
ment to be offered to the pending con-
tinuing resolution. This amendment
would prohibit the continnation of hosti-
lities by U.S. forces anywhere in Indo-
china?and I eMphaWe anywhere in
Indochina?after August 15, 1913.
The arriendment.which will be offered
of
theasusPute to sections 108 and 09
5 as
/Notwlth;ta. any other provision
law, on 01 fter August 15, 1973, no fun
herein heretofore, or hereafter appropriated
may be obligated or expended to friance the
involvement of United States military forces
in hostilities in or over or from off the
shores of North Vietnam, South Vietne
os, or Cambodia-
rellAtatt.M.Spga..1.51? irressen ce,
the res s, a commodation of the
views ot the committee and the White
Hbuse following a meeting this P1017411g.
The committee is gratified that thiscom-
promise was Promptly agreed opon and
as a result, it now appears that the
executive and legislative branches will, at
last, act in a coordinate Manner to bring
to a close this tragic episode in our lqa-
tion's history.
The committee's decision to eubinit
this amendment to the Senate for its
consideration followed extensive discus-
sion in the course of which a number of
understandings were reached with re-
gard to the interpretation. Among these
were the following:
The acceptance of an. August 15 cut-
off date should in no way be intepreted
as recognition by the committee of the
President's authority to engage tr.s.
forces in hostilities until that date. The
view of most members of the committee
has been and continues to be that the
President does not have auch authority
In the absence Of specific conn'ess:onal
approval.
While a majority of the committee
strongly preferred an immediate cutoff
of bombing in Carabodia it was recog-
nized that an effort to insist upon an lin-
mediate cessation of hostilities in the
face Of strong bjection from the Presi-
dent Might ?arecipiate a serious confron-
tation between he two branches of Gov-
ernment which would result in severe
hardships for many. The committee felt
that it had solemn responsibility to do
all within it; power to avoid such a con-
frontation, provided a compromise could
be found which would reaffirm the
proper constitutional role of the Con-
gress with regard to the warmaking
power and which would specify a date
certain for a total end to the involvement
of the United States in the war in Indo-
china
It was de ar13 understood by all those
supporting the amendment that its effect
would be ti preclude after August 15
any reSUiription of hostilities by U.S.
forces without the express approval Of
both Houses of Congress.
The committee offers this amendment
assuniing that the interval between now
and August 15 will not be the occasion
for an escalation of U.S. bombing in
Cambodia or for its resumption any-
where else in Indochina unless provoked.
As exPressed by one member of the com-
mittee's view or. this matter is that "un-
der this authority all efforts should be
made' consistent with the limited mili-
tary objecnves involved, to minimize
damage to civilian life and property."
The committee'.; expectation in this mat-
ter has been communicated to the White
House and assurances have been received
in return that these guidelines are ac-
ceptable.
The committee's expectation in this
matter has been communicated to the
White House and assurances have been
recented in return that these guidelines
are acceptable. In reaching agreement
upon the terms of this amendment, both
the executive tianch and the commit-
tee receded in part from positions which
had been strongly held over a number of
years. More important than any of these
concessions, however, is the fact that the
war Will end, that a proper con.sistitu-
tional balance will have been restored,
and that a new era of national unity and
positive aceonsplishment will now be
possible.
Mr. SCO1T of Pennsylvania. Mr. Pres-
ident,, will the distinguished Senator
Yield?
FULBRIGHT. I yield to the dis-
tinguished minority leader.
Mr. SCO'IT of Pennsylvania. Mr. Pres-
ident, the d stinguished chairman of the
committee has correctly stated the agree-
ment in conitnio.tee, of course. His state-
ment reflects the views of a majority of
the committee, and in many respects re-
flects the views of nearly everyone on the
committee. There are some statements
made, of course, where there have been
disagreements within the committee, but
I agree , with what the distinguished
chairman t,,s si cd, and it is essential that
some ,concessions be made on the part of
the executh e and on the part of the leg-
islative branch; and we have met sin-
cerely in ar eflort to achieve an end to
the hostilities in Indochina.
I hive undertaken, as the distinguished
chairman has noted, to secure assurances
that there wou.7c1 be no escalation in the
29, 1973
bombing during this intervening ?period,
that great care would be taken to avoid
damage to civilian persons and property.
That point was raised by several Mem-
bers. We have received that assurance
from the White House. I have revealed to
the committee the persons with whom I
have discussed it.
I think we all approach this with a
feeling of immense relief, a relief so great
as not to be quantified even in Ordinary
language. The distinguished chairman
knows I have already made statements
regarding my view that we ought to find
a, way to end the bombing in Cambodia
not later than tomorrow night, mid--
night. I have had this personal agony
that we have all shared in the ,Senate.
It is my view that we have arrived at
a solution which ought to be gladly ac-
cepted by the Congress and by the Exec-
utive because I think it is in the interest
of the Nation, although I know there are
those in the Executive who feel that the
negotiation stance has been hampered?
and I suppose it has. And there are those
who feel?and I can understand their
feeling?that this continues the right, at
least, to continue the bombing until Au-
gust 15.
However, had the constitutional crisis
evolved and the vetoes continued, con-
sequences would have flowed far beyond
the contention here. Moreover, bad the
executive prevailed over that period of
time, because of the understandable de-
sire of Congress that the other functions
of government continue, the right of the
Executive to continue the bombing Indef-
initely would have been made nossible,
at least, through lack of effective action
by the Congress.
Therefore, for those who would be
tempted to say?and I can understand
it?that this does continue. the right to
do things which are distasteful to them
in the extreme until the 15th of August,
they should, be reminded that the right
would have continued for a much longer
time had the Executive prevailed,
So I think we made a good decision
when we consider that there were many
points of view. Some of the points of
view the chairman read were not agree-
ments that under other circumatances,
I would have been a party to. I think all
of us together have really wrought as
well as we could considering the com-
plexity of the problems and the necessity
for the finding of an immediate solu-
tion, if we possibly could, and I congratu-
late the chairman.
Mr. FULBRIGHT. Mr. President, I
congratulate the distinguished minority
leader for his words. I should like to raise
one question. I do not recognize the con-
stitutional right or power of the Execu-
tive to continue bombing. Many of us do
not believe he has a constitutional right
to do this in Cambodia. But that does not
answer the question. What we are seek-
ing is a practical end to the war in Viet-
nam.
I appreciate very much what the Sen-
ator from 1?ennsylvania said. All of us
can express reservations. I would much
prefer, as others do, that the bombing
stop now. I wish it had been stopped 5
years ago. But we were involved in it.
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CONGRESSIONAL RECORD ? SENATE S 1257,9
?
and the minority leader here, there
Would not be the slightest difficulty in
overriding a veto. That, in itself, would
be equally effective, in my opinion, if the
President wished to take that kind of
action, which I do not believe he will. If
he does, then I do not think there would
be KW doubt that both Houses would
easily override.
Mr. HARTKE. Mr. President, I do not
believe the Senator from South Dakota
or the Senator from Indiana in any way
question the veracity of the statements
made. I think we are determining def-
initely that the Foreign Relations Com-
mittee acted on representation of con-
versations which were made by the
minority leader who, in turn, relied on
statements made by the minority leader
of the House, who in 'turn claimed that
he had a conversation with the President.
Is that correct?
Mr. FULBRIGHT. The Senator is in-
sinuating?but that is correct?that in
sortie way or other the President has not
given his assurance. Let me say to the
Senator from Indiana that we have been
on this matter all day long, and if the
Senator wishes to delay the Senate?as
I have delayed it myself some times?I
hope that he will--
Mr. I-IART'KE. Could we not put the
vote, over until tomorrow and have the
President make a statement to the
Nation ?
Mr, ItULBRIGHT. That would be un-
wise. We have so much to do. The Sen-
ator knows the problems of the leader-
ship. Of course, that is not my respon-
sibit
liY?
HARTKE. I would be glad per-
so to see that we could vote at a time
certA tomorrow. I do not know of any
reasan. Why this is a matter of such ur-
geney that we have to rely on statements
madeby the Foreign Relations Commit-
tee on behalf of the minority leader or
on representations made by the minority
leader of the House.
Mr. MANSFIELD, If the Senator from
Indiana would yield, may I say that in
all my years in the Senate I have, with-
out ttuestion, accepted the word of every
Senator when that word was given. That
word, of course, applies to the distin-
guished minority leader.
Mr. HARTKE. With all due deference
to the distinguished majority leader, for
whom I have the highest respect and
have admired tonight, especially, more
deeply than I probably ever will in my
life, and I say that with great respect
for what he has done and for his stead-
fastness on this question, but I know that
I was here when the Gulf of Tonkin was
passed and I also know that representa-
tions were made on the floor of the Sen-
ate about that. I do not claim that any-
one at that time purposely misled the
Benebut I know that I was very much
colg ? ; and if I had had the slightest
o? t, as a result of my vote on that
regOilltion, it would result in over 50,000
Americans dying in Vietnam, I would not
have done so. I feel that in view of what
Is going on in this country at this mo-
ment, we have to rely on third-hand in-
forra.ation, which is certainly indicative
of the surrender we are about to partici-
pate in tonight, and I would?
SEVERAL SENATORS. Vote! Vote! Vote!
Mr. HARTKE. I am not ready to vote.
Mr. ABOUREZK. Mr. President, will
the Senator from Indiana yield?
Mr. HARTKE. I yield.
Mr. ABOUREZK. Mr. President, I only
wanted to say that I never meant to say
I did not accept the word of the minor-
ity leader or of the assistant minority
leader. What I am merely saying is this,
and I want to make it very clear: That
when the minority leader said he talked
to Mr. Laird, I believe him. All I am
asking for is that we hear from the
President and not from Mr. Laird. I
think that is not too much to ask. I
know that earlier this week, some
spokesman at the White House an-
nounced that as soon as John Dean was
done testifying, the President would
take to television and speak to the
Watergate issue. But after that was
over, the White House denied that was
ever said.
All I am saying is, we should hear
directly from the President. This is an
important matter, much too important
to rely on an aide in the White House?
albeit a highly placed aide?it is much
too important to rely on anyone but the
President. That is not too much to ask
for.
Mr. FULBRIGHT. Well, for whatever
it is worth, this is on the ticker, it oc-
curred on the floor of the House today,
as follows:
Minority Leader Ford-1--I have just talked
to the President for 10 minutes and he as-
sured me personally that everything I said
on the floor was a commitment by him, Ford
said. Ford had earlier told the House, based
on the conversation with President Nixon,
with domestic adviser Laird, that the Presi-
dent would accept the August 15 termination
date.
Unless the Senator questions FORD'S
word, he said he personally had talked
to him.
Mr. ABOUREZK. I wonder whether
anyone might be able to answer?and I
see the distinguished minority leader is
present in the Chamber now?perhaps
he can answer it?why it is that the
President cannot make a very important
statement directly for himself? Why is
he not able to do that?
Mr. SCOTT of Pennsylvania. Mr.
President, I would say to the Senator
from South Dakota, whom I greatly re-
spect and who has not been here as long
as some of us, that we normally do not
have on the Senate floor the presence of
the President of the United States, nor
do we, as a rule, require Senators to take
an oath that they have talked to the
President or with Members of the House.
I believe that the Senator has been
assured the President telephoned the
minority leader of the House of Repre-
sentatives and that this agreement was
satisfactory to him. I received a call from
Mr. Melvin Laird and I made some ref-
erence to it, without calling his name
earlier, and affirmed that the President
had said it. Now, if the Senator from
South Dakota wants any affidavits, I
will be glad to make them, but barring
affidavits, I must confess that I am a
little bit at a loss to know why the Sen-
ator is making such a big thing out of
whether the President has said it.
I said that the President said it. GERRY
FORD told the House of Representatives
that he said it. I am therefore content to
rest on that and I leave it to the Senator
from South Dakota to make his own
decision as to the veracity of the Mem-
bers of either body.
Mr. ABOUREZK. Mr. President, I wish
to apologize to the distinguished minor-
ity leader for making such a big thing
out of stopping the bombing in Cam-
bodia. I sincerely wish to apologize for
that.'
Mr. SCOTT of Pennsylvania. The Sen-
ator from South Dakota misunderstood
me. I did not say that, nor did the Sena-
tor say that prior to the talk?
Mr. ABOUREZK. I did not dispute the
minority leader's word. Had he, been in
the Chamber, he would have heard me
say that. As a matter of fact, I believe
the minority leader when he said that he
talked to Mr. Laird. However, my ques-
tion is: Is there any reason why the
President cannot make a statement to
the Nation so that everyone can hear it?
Mr. HARTKE. Let me say to the Sena-
tor from South Dakota that I asked that
question early this evening. At that time,
there was some confusion?I say this to
the chairman of the Foreign Relations
Committee?and I then looked for some-
one on the floor to find out on what au-
thority we could rely. I do not think there
is any question that the minority leader
speaks probably the truth, that he talked
to Mr. Laird and Mr. Laird said what
FORD said that the President said, that?
What was it? Does the Senator know
what he said? I do not know what he said
on the floor. I was not on the floor of the
House.
Mr. SCOTT of Pennsylvania. The
President has indicated that he would
sign that resolution if it is adopted by
both House. I think that is sufficient. I
did not talk to the President. I talked to
Mr. Laird.
Mr. HARTKE. Is that what Mr. FORD
said on the floor? Did he say that he
indicated that he would or that he 'said
he would? What is it that the President
allegedly told Representative FORD?
SEVERAL SENATORS. Vote! Vote!
Mr. SCOTT of Pennsylvania. I do not
think that warrants an answer.
Mr. HARTKE. Senators can yell
"Vote!" all night. I am not going to sit
down?and I have been chastised by this
President and former Presidents?with-
out understanding what we are going to
vote on tonight.
Many Senators here have opposed this
war for a long time; many of us have
taken a long time to debate the Eagleton
amendment; and tonight we have to
hurry it through, as we did with the Gulf
of Tonkin resolution, on representations.
The Senator from South Dakota has
stated it accurately: What denies the
Senate the right to hear exactly what the
President has said that he would or
would not do? Is there any reason why
we cannot hear that? If there is any
reason why we cannot hear it, we can
go ahead and talk awhile, because I think
we are going to be here awhile otherwise.
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CONGRESSIONAL RECORD ? SENATE bine 29, 19'3
Mr. SCOTT of Pennsylvania. /dr.
President?
Mr. HARTKE. I have saki repeatedly
that I do not intend to sit down. I have
the floor, and if the Senator wants to an-
swer that question, that is all right.
Mr. SCOTT of pennsylvania. The Sen-
ator wants to answer.
Mr. HARTKE. I will be glad to listen.
Mr. SCOTT of Pennsylvania. The Sen-
ator has asked a question: What is it the
President has agreed to do? The answer
is that the President has agreed to sign
the joint resolution.
Mr. HARTKE. Has he agreed to stop
the bombing on August 15?
Mr. SCOTT of Pennsylvania. The Pres-
ident has agreed to sign the joint resolu-
tion which has been explained by the
chairman of the.Fore.ign Relations Com-
mittee and by Members of the House of
Repreeen tatives.
Mr. HARTKE. Does he agree to stop
the bombing by August 15?
Mr. SCOTT of Pennsylvania. I think
that the answer to that is that the Presi-
dent has agreed to accept what Congress
does in connection with the woi ding
which has been agreed to. That has been
thoroughly explained by the distin-
guished chairman of the Foreign Rela-
tions Committee as regarding an end to
the bombing on the 15th of August.
I do not know. how much more the
Senator from Indiana can ask, unless the
Senator is asking something which is be-
yond my ability to supply.
Mr. HARTKE. I think the Senator cor-
rectly stated the sub:ect. I do not think
the minority leader can give an answer
on his own. I agree with that. I think
the President can.
I ask the chairman of the Foreign Re-
lations Corilmittee--has the president
assured him that he will stop the bomb-
ing on Or before .August 15?
Mr. FULBRIGHT. I have not com-
municated with the President.
Mr. HARTKE. In other words, we :nave
no assurance whatsoever tonight that
the bombing is going to be stopped on
or before August 15. All we have is an
assurance that he will sign a docu-
ment which says something to the effect
that we are not going to have any money.
Is that right?
Mr. SCOTT of Pennsylvania. I believe
the distinguished chairman of the For-
eign Relations Committee has read the
statement on the teletype from Repre-
sentative Foal) of Michigan. I have said
it with all the sincerity and assurance I
can command?and I have asked the
Senators to accept it with full credibility,
and I believe that, generally speaking,
they have shown that desire.
I interpret this as stopping the bomb-
ing on the 15th of August. If the dis-
tinguished Senator from Indiana wants
more than Members of the Senate can
supply him, I know of no way to do it
other than what we are doing. We are
supposed to make our own decisions here,
based on the information giver. us. That
Information is that the President ac-
cepts the resolution in that form. We
have an agreement pending, if the Sen-
ate and the House of Representatives
wish to adopt It Muter that agreement,
the bonging will stop on August 15. The
President undei:ta,ncle. that; the Senator
from Indiana understands it, I hope;
and the Senator from Pennsylvania un-
derstands it.
Now, what more the Senator wants is
absolutely beyond me, and I am totally
mystified by this line of questioning.
Mr. HAFTEE. I want the killing
stopped tonight
Mr. scan' of Pennsylvania. Then,
the Senator she uld vote according to his
conscience.
Mr. GRIPIPIN. Mr. President, as the
Senate proceed, to a vote on this con-
tinuing resonition, I shall vote for it with
a settee of deep concern.
Others in the sourse of this debate have
expressed the concern that, the amend-
ment which cuts off funds for bombing
and other military action in 45 days will
not bring peace soon enough. They de-
mand peace none
My concern is that, instead of a step
toward peace, this action on the part of
the Senate ;onight could be a step away
from peace.
If this action should seriously weaken
the position of our negotiators as they
bargain witn respect to Southeast Asia
or with respect to Europe and the world,
It could serious damage the opportun-
ity for a general= of peace that is be-
fore us as a re ealt of President Nixon's
diligent efforts.
The greatest danger, I suggest, is that
the action we lake here could result in
miscalculation--that is. maybe misin-
terpreted in other parts of the world as
a sign of weakness.
I believe it should be said, in the con-
text of this debate, that the United
States as a Government is not turning
its back on its obligations or responsi-
bilities as a Armed leader by adopting this
amendment.
Like others who will vote for this
measure tonigt t, I want this action to
be a contrinuticn toward peace?not a
step toward hoitility and more killing.
It can be a ssep toward peace if there
is no miscidcu ation in 'other parts of
the world as to the meaning of our
action.
It can be a stop toward peace if others
In the world understand that the United
States as a nen.= continues to expect
and insist upc n compliance with the
treaties and other solemn obligations to
which it is a patty.
It should be clearly understood that
adoption of thii resolution; particularly
the amendmens relating to military ac-
tivities in Southeast Asia, does not elim-
inate the ability of our Nation to
meet its obligations under the Paris
agreement of January 27; and does not
terminate the ability of our Nation to
carry out its n iponsibilities under that
and other international agreements.
As a nation, despite this amendment,
we continue to expect and insist upon
good faith cam:Hance with such agree-
ments.
If that meseege is understood around
the world, then this step tonight can
truly be a step toward world peace.
SEVERAL Snoelk CORS. Vote! Vote!
The PRESIDING OteraCER. The
question is on agreeing to the amend-
ment of the Senator from Arkansas.
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On this question, the yeas arid nays
have been ordered, and the clerk Will call
the roll.
The legis:ative clerk called the roll.
Mr. ROBERT C. BYRD. I announce -
that the Senator from Texas (Mr. BENT-
SEN) LS necessarily absent.
/ further announce that the Senator
from Iowa Mr. CLAR:K) , and the Senator
from Delaware (Mr. Rumen are, absent
on official business.
I also announce that the Senator from
Mississippi (Mr. STENNIS) is absent be-
cause of illness.
I further announce that, if present
and voting, the Senator from Iowa (Mr.
CLARK) would vote "nay."
Mr. GRIFFIN. I announce that the
Senator from New Hampshire (Mr.
Conner) is absent because of illness in
his family.
The Senator from Vermont. (Mr.
STAFFORD) is necessarily absent.
The Senator from Idaho (Mr. Mc-
Came) and the Senator from New York
(Mr. Jams) are absent On official busi-
ness.
Also the Senator from Arizona (Mr.
GOLDWATER:1 and the Senator from South
Carolina (Mr. THURMOND) are neces-
sarily absent.
If preser.t and voting. the Senator
from New York (Mr. JAVITS), the Sena-
tor from Vermont (Mr. STAFFORD), and
the Senator from South Carolina (Mr.
THURMOND) would each vote "yea."
The result was announced?yeas 64.
nays 26, as follows:
i ken
Allen
Baker
Bartlett
Beall
Bellmon
Bennett
[No. 260 Leg.]
YEAS- 64
Ervin
Fannin
Fong
Fulbright
Griffin
Gurney
Hansen
Bible Helms
Byrd, Hollings
Karry F., Jr Hruska
Byrd, Robert C. Huddleston
Cannon Humphrey
Case Jackson
Chiles Johnston
Church Long
Cook Magnuson
Cranston McClellan
Curtis McGee
Dole McGovern
Domenici McIntyre
Dominick Metcalf
Eastland Montoya
Abouresk
Bayh
Brock
Brooke
Buckley
Burdick
Eagleton
Gravel
Hart
Bentsen
Tilden
Clark
Cotton
NAYS? 26
Hartke
Haskell
Hatfield
Hathaway
Hughes
Inouye
Kennedy
Mansfield
Mathias
;gelson
Nunn
Packwood
Pastore
Pearsoii.
Pell
Percy
Proxmire
Roth
Saxbe
Scott, Pa.
Scott, Va.
Sparkni an
;Stevens
Stevenson
Symington
Taft
Talmadge
'Tower E
Wiuiards
Young
Mondale
Moss
Muskie
Randolph
]Ribicol
iSchweilser
Tunney
Weickci?
NOT VOTING--I 0
Goldwater
Javits
McClure
Stafford
Stennis
'ThurmOnd
So Mr. FULBRIGHT'S amendment was
agteeo.
Klik"'ULBRIGHT. Mr. President, I
Move to reconsider the vote by which the
amendment was agreed to,
Mr. McCLELLAN. I move to lay that
motion on the table.
The motion to lay on the table was
agreed to.
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Iowa"
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May 7, 1973 CONGRESSIONAL RECORD?SENATE
Military capability and to greater self-re-
liance by the armed forces of such coun-
tries. .
(2) encourage effective and mutually bene-
ficial relationships and enhance understand-
ing between the United States and friendly
foreign countries in order to maintain and
foster the environment of international
peace and security essential to social, eco-
nomic and political progress; and
(3) promote increased understanding by
friendly foreign countries of the policies and
objectives of the United States in pursuit
of the goals of world peace and security.
"Sec. 542. GENERAL ATJTHORITY.?The Pres-
ident is authorized in furtherance of the
purposes of this chapter, to provide military
education and training by grant, contract, or
otherwise including?
(1) attendance by military and related
civilian personnel of friendly foreign coun-
tries at military educational and training
facilities in the United States (other than
the Service Academies) and abroad;
(2) attendance by military and related
civilian personnel of friendly foreign coun-
tries in special courses of instruction at
Schools and institutions of learning or re-
search in the United States and abroad;
(3) observation and orientation visits by
foreign military and related civilian per-
sonnel to military facilities and related ac-
tivities in the United States and abroad; and
(4) activities that will otherwise assist
and encourage the development and im-
provement of the military education and
training of members of the armed forces and
related civilian personnel of friendly for-
eign countries so as to further the purposes
of this chapter, including but not limited
to the assignment of noncombatant mili-
tary training instructors, and the furnish-
ing of training aids, technical, educational
and informational publications and media
of all Muds.
"Sze. 543. AUTHORIZATION.--Appropriations
to the President of funds to carry out the
purposes of this chapter are hereby author-
ized. Such appropriations are authorized to
remain availble until expended.
"Sm. 544. ANNUAL BEroars.?The Presi-
dent shall submit no later than December
81 each year a report to the Congress of activ-
ities carried on and obligations incurred
during the immediately preceding fiscal year.
In furtherance of the purposes of this chap-
ter each such report shall contain a full
description of the program and the funds
obligated with respect to each country con-
cerning which activities have been carried on
in furtherance of the purposes of this chap-
ter."
(b) The Foreign Assistance Act of 1961, as
amended, is amended as follows:
(1) Section 503(d) of said Act, relating
'to general authority, is amended by striking
out the comma and the words "including
those relating to training or advice".
(2) Section 504(a) of said Act, relating
to authorization, is amended by striking out
"(other than training in the United States) ".
(3) Section 510 of said Act, relating to
restrictions on training foreign military
students, is repealed.
(4) Section 622 of said Act, relating to
coordination with foreign policy, is amended
as follows:
(1) In subsection (b), immediately after
the phrase "(including civic action)" insert
the words "and military education and
training";
(ii) Subsection (c) Is amended to read as
follows:
"(c) Under the direction of the Presi-
dent, the Secretary of State shall be respon-
sible for the continuous supervision and
general direction of economic assistance,
military assistance and military education
and training programs, including but not
limited to determining whether there shall
be a military assistance (including civic
acton) or a military education and training
program for a country and the value thereof,
to the end that such programs are effectively
integrated both at home and abroad and the
foreign policy of the United States is best
served thereby.".
(5) Section 623, relating to the Secretary
of Defense, is amended as follows:
(i) In subsection (a) (4), immediately
after the word "military," insert the words
!'and related civilian";
(ii) In subsection (a) (6), immediately af-
ter the word "assistance", insert a comma and
the words "education and training".
(6) Section 632, relating to allocation and
reimbursement among agencies, is amended
by inserting in subsections (a), (b) and (e)
iminediately after the word "articles",
wherever it appears, a comma and the words
"military education and training";
(7) Section 636, relating to provisions on
uses of funds, is amended as follows:
(i) in subsection (g) (1), immediately
after the word "articles", insert a comma
and the words "military education and
training"; and
(ii) in subsection (g) (2), strike out the
word "personnel" and insert in lieu thereof
the words "and related civilian personnel".
(8) Section 644 of said Act, relating to
definitions, is amended as follows:
(1) subsection (f) is amended ,to read as
follows:
"(f) 'Defense service' includes any serv-
ice, test, inspection, repair publication or
technical or other assistance or defense in-
formation used for the purposes of furnish-
ing military assistance, but shall not include
military educational and training activities
under chapter 5 of part IL"; and
(ii) there is added at the end thereof the
following new subsection:
"(n) 'Military education and training' in-
cludes formal or informal instruction of for-
eign students in the United States, contract
teohnicians, contractors (including instruc-
tion at civilian institutions), or by corre-
spondence courses, technical, educational, or
information publications and media of all
kinds, training aids, orientation, and mili-
tary advice to foreign military unite and
forces.".
(c) Except as may be expressly provided
to the contrary in this Act, all determina-
tions, authorizations, regulations, orders,
contracts, agreements, and other actions is-
sued, undertaken or entered into under au-
thority of any provision of law amended or
repealed by this section shall continue in
full force and effect until modified by ap-
propriate authority.
(d) Funds made available pursuant to
Other provisions of law for foreign military
educational and training activities shall re-
main available for obligation and expendi-
ture for their original purposes in accord-
ance with the provisions of law originally
applicable thereto, or in accordance with
the provisions of law currently applicable
to those purposes.
ADMINISTRATIVE PROVISIONS
SEC: 14. Section 625 of chapter 2 of part
III of the Foreign Assistance Act of 1961, re-
lating to employment of personnel, is
amended by adding at the end thereof the
following new subsection:
"(k) (1) In accordance with such regula-
tions as the President may prescribe, the
following categories of personnel who serve
In the Agency for International Development
shall become participants in the Foreign
Service Retirement and Disability System:
"(A) Persons serving under unlimited ap-
pointments in employment subject to sec-
tion 625(d) (2) of this Act as Foreign Serv-
ice Reserve officers and as Foreign Service
staff officers and employees; and
"(B) A person serving in a position to
which he was appointed by the President,
S 8319
whether with or without the advice and con-
sent of the Senate, provided that (1) such
person shall have served previously under an
unlimited appointment pursuant to said
section 625(d) (2) or a comparable provision
of predecessor legislation to this Act, and (2)
following service specified in proviso (1)
such person shall have served continuously
with the Agency for International Develop-
ment or its predecessor agencies only in
positions established under the authority of
sections 624(a) and 631(b) or comparable
provisions of predecessor legislation to this
Act.
"(2) Upon becoming a participant in the
Foreign Service Retirement and Disability
System, any such officer or employee shall
make a special contribution to the Foreign
Service Retirement and Disability Fund in
accordance with the provisions of section
852 of the Foreign Service Act of 1946, as
amended. Thereafter, compulsory contribu-
tions will be made with respect to each such
participating officer or employee in accord-
ance with the provisions of section 811 of
the Foreign Service Act of 1946, as amended.
"(3) The provisions of section 636 and title
VIII of the Foreign Service Act of 1946, as
amended, shall apply to participation in the
Foreign Service Retirement and Disability
System by any such officer or employee.
"(4) If an officer who became a participant
in the Foreign Service Retirement and Dis-
ability System under paragraph (1) of this
subsection is appointed by the President, by
and with the advice and consent of the Sen-
ate, or by the President alone, to a position
in any Government agency, any United
States delegation or mission to any interna-
tional organization, in any international
commission, or in any international body,
such officer shall not, by virtue of the accept-
ance of such an appointment, lose his status
as a participant in the system.
"(5) Any such officer or employee who be-
comes a participant in the Foreign Service
Retirement and Disability System under par-
agraph (1) of this subsection, shall be man-
datorily retired (a) at the end of the month
in which he reaches age seventy or (b) ear-
lier if, during the third year after the effec-
tive date of this subsection, he attains age
sixty-four or if he is over age sixty-four;
during the fourth year at age sixty-three;
during the fifth year at age sixty-two; dur-
ing the sixth year at age sixty-one; and
thereafter, at the end of the month in which
he reaches age sixty: Provided, That no par-
ticipant shall be mandatorily retired under
this paragraph while serving in a position to
which appointed by the President, by and
with the advice and consent of the Senate.
Any participant who completes a period of
authorized service after reaching the manda-
tory retirement age specified in this para-
graph shall be retired at the end of the
month in which such service is completed.
"(6) Whenever the President deems it to
be in the public interest, he may extend
any participant's service for a period not to
exceed five years after the mandatory re-
tirement date of such officer or employee.
"(7) This subsection shall become effec-
tive on the first day of the first month
which begins more than one year after the
date of its enactment, except that any officer
or employee who, before such effective date,
meets the requirements for participation in
the Foreign Service Retirement and Disabil-
ity System under paragraph (1) of this sub-
section may elect to become a participant
before the effective date of this subsection.
Such officer or employee shall become a par-
ticipant on the first day of the second month
following the date of his application for ear-
lier praticipation. Any officer or employee
who becomes a participant in the system un-
der the provisions of paragraph (1) of this
subsection, who is age fifty-seven or over, on
the effective date of this subsection, may re-
tire voluntarily at any time before manda-
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S 8320 CONGRESSIONAL RECORD ? SENATE May 7, 1.973
tory retirement under paragraph (5) of tale
subsection and receive retirement benefits
under section 821 of the Foreign Service Act
of 1946, as amended.
"(8) Any officer or employee who is sepa-
rated for cause while a participant in the
Foreign Service Retirement and Disability
System pursuant to this subsection. shall
be entitled to benefits in accordance wial
sabsections 637(b) and (d) of the Foreinn
Service Act of 1946, as amended. The :pro-
visions of section 625(e) of this Act shidl
apply to participants in lieu of the provi-
sions of sections 633 and 634 of the Foretm
Service Act of 1946, as amended."
Sec. 15. Section 637(a) of chaptei 2 of pert
III of the Foreign Assistance Act of 19e1,
relating to authorizations for administra-
tive expenses, is amended by striking out
"for the fiscal year 1972, $50,000,000, and
for the fiecal year 1973, $50,000,000" and in-
serting in lieu thereof "for the fiscal year
1974, $53,100,000, and for the fiscal year 19Y5,
$53,1430,000".
SEC. 16. Section 639 of chapter 2 of pert
III of the Foreign Assistance Act of 1951 is
amended to read as follows:
"Sec. sas. Famine and Disaster Relief. Not-
withstanding the provisions of this or any
other Act, the President is authorized to
furnish famine or disaster relief or rehabil-
itation or related assistance abroad on tinols
terms and conditions as he may determine."
INDOCHINA POSTWAR RECONSTRuCTIoN
Sec. 17. The Foreign Assistance Act of 1981
is amended by adding at the end thereof
the following new part:
"PART V
"CHAPTER 1. POLICY
"SEC. Eitl. STATEMENT or Pomer. The Con-
gress, recognizing the impcntance cd a stable
peace in Indochina to the achievement of
a lasting peace in Asia and throughout the
world, believes that the United States can
further these objectives by contributing to
healing the wounds of war and by assisting
the countries and peoples of Indochina in
the realization of human aspirations in a
peaceful manner. It is the sense of Congress
that the otrjectives of a stable and lasting
peace would be served by a program of
humanitarian relief and reconstruction as-
sistance in Indochina_
"CHAPTER 2. GENERAL AUTHORITy AND
AIITHortizAITON
"$Nw. 821. GENERAL AuTHORITY. 'The Presi-
dent is authorized to furnish, on such teens
and conditions as he may determitie, assist-
ance for nilief and reccnstruction of South
Vietnam, Cambodia and Laos, including
humanitarian assistance to refugees, civil-
ian war casualties and other persons dis-
advantaged by hostilities or conditions relat-
ed to those hostilities in South Vietnam,
Cambodia and Laos.
"Sac. 822. Authorization. There is author-
ized to be appropriated to the President to
carry cut the purposes of this chapter, in
addition to funds otherwise available for
such purposes, for the fiscal year-1974 not
to exceed 3632,000,000, which amount is au-
thorized to remain available until exper
"CHAPTER 3--00155TRUCTIO11 WITI-X omen )4WS
"Sze. 831. Authority. All references to part
I, whether heretofore or hereafter enacted,
shall be deemed to be references also to this
part unless otherwise specifically provided.
The authorities available to administer part
I of this Art shall be available to administer
programs authorized in this pare".
FaREiGN MILITARY SALES
Szc. 18, The Foreign Military Sales Act,
as amended is amended as -followe:
(a) In seetion 23 of chapter 2, relating to
credit sales, strike out "ten" and incest in
lieu thereof "twenty".
(b) In section 24(a) of chapter 2, relating
to guaranties, strike out "doing business in
the United States".
(c) In section 24(c) of chapter 2, relating
to guaranties:
(1) strike out "pursuant to section 31"
and insert in Lieu thereof "to carry out this
Act"; and
(2) insert "orbacipal amount of" immedi-
ately before tie words "contractual liability"
wherever they appear.
(d) In section 51(a) of chapter 3, relating
to authorization, etrike out "$400,000,000 for
the fiscal year 19'7:r and insert in lieu there-
of "$525,000,000 for the fiscal year 1974".
(e) In section 31(b) of chapter 3, relating
to authorization, strike out "(excluding
credits covereC. by guaranties issued pursuant
to section 34(b) and of the face amount of
guaranties Issued pursuant to sections 24(a)
and (b) shall not exceed $550,000,000 for the
fiscal year 19'f2, of which amount not less
than $300,000,000 shall be available to Israel
only" and insert In lieu thereof "and of the
principal amount of loans guaranteed pur-
suant to section 24 a) shall not exceed $760,-
000,000 for the fiscal year 1974",
(f) In section 33(a) of chapter 3, relating
to aggregate nisei:sal ceilings:
(1) strike cut ''df cash sales pursuant to
sections 21 and .21i,";
(2) strike out ' (excluding credits covered
by guarantiea is used pursuant to section
24(b) ), of tits faits amount of contracts of
guaranty issusd pursuant -to sections 24(a)
and (b)" and insert in lieu thereof "of the
principal amcunt of loans guaranteed pur-
suant to section 14(a)"; and
(3) strike oat "$100,000,000" and insert in
lieu thereof `i5150.000,000".
(g) In section (b) of chapter 3, relating
to aggregate regional ceilings:
(1) strike cut "of cash sales pursuant to
sections 21 and 12,";
(2) strike out ' (excluding credits covered
by guarantier issued pursuant to section
24(b) ), of the fitee amount of contracts of
guaranty issued aursuant to sections 24(a)
and (b)" and irisait in lieu thereof "of the
principal amount of loans guaranteed pur-
suant to section 24(s)".
(h) In section Lia(c) of chapter 3, relating
to aggregate regional ceilings:
(1) strike (nit "expenditures" and insert
in lieu thereof "a mounts of assistance, cre-
dits, guarantia s, aval ship loans";
(2) strike cut "of cash sales pursuant to
sectanne 21 ant 22,7; and
(3) strike out (excluding credits covered
by guaranties iseued pursuant to section
24(b) ), of the five amount of contracts of
guaranty issued pursuant to sections 24(a)
and (b)" and insert in lieu thereof "of the
principal amcunt of loans guaranteed pur-
suant to section 24(a)".
(1) In _section 1? of chapter 3, relating to
reports on commercial and governmental
military exports, subsection (a) is hereby re-
pealed and stbseclions (b) and (c) are re-
designated as (a) and (b), respectively.
(j) In section 87(b) of chapter 3, relating
to fiscal provisions, insert after "indebted-
ness" the following: "under section 24(b)
(excluding swill portion of the sales proceeds
as may be require' at the time of disposi-
tion to be obligated as a reserve for pay-
ment of claims under guaranties issued pur-
suant to section 24(b), which sums are
hereby made as ailable for such oblige-
tions)".
A SECTION-By-S:cTION ANALYSIS OF THE
PRopoSED Poise:Ma ASSISTANCE AcT OF 1973
I. INTRODUCTION
The proposed 'Foreign Assistance Act of
1973 (hereinafter referred to as the "Bill")
is an amendnient to the Foreign Assistance
Act of 1961, as amended (hereinafter re-
ferred to as tie "'set"). The Bill also amends
the Foreign Military Sales Act (hereinafter
referred to as "the FMEIA").
The principal new substantive provisions
of the Bill are: a new Part V dealing with
Indochina Rec onatruction, (b) a new chapter
In Part II providing :for a program .of In-
ternational Military Education and Triebaing,
(c) a new provision permitting persoanel of
the Agency for International Development
("A.I.D.") to participate in the Foreign
Service Retirement System, and (d) provi-
sions permitting greater flexibility in the
conduct of disaster relief activities, 'opera-
tions of the Overseas Private Investment
Corporation, and Foreign Military Sales
programs.
The Bill makes authorization for twie years
for all development accounts and Mr nar-
cotics control, and provides a one year au-
thorization for Indochina reconstruction
and security assistance programs.
PROVISIONS Or THE EILL DEVELOPMENT LOAN
FUND
Section 2(a)?Authorization
(1) and (2). These provisions amend sec-
tion 202(a) of the Act to provide authoriza-
tions for fiscal years 1974 and 1975 for devel-
opment loans in the amount of $201;400,000
for each year.
(3) and (4). These provisions make appli-
cable through fiscal year 1975 the second
proviso in section 202(a), requiring that not
less than 50 percent of the funds appropri-
ated for development loans be used to en-
courage economic development through pri-
vate enterprise.
Section 2(b)?fiscal Provisions
This subsection extends the provisions of
section 203 through fiscal year 1975.
Technical Cooperation and Development
Grants
Section 3 (a) ?Authorization
This subsection adds the word "directly" to
the sentence which limits to forty the num-
ber of countries to which technical-assist-
ance may be furnished under title H. The
purpose of ibis amendment Ls to make
clear that the forty country limitation ap-
plies only to bilateral assistance furnished
directly by the government of the United
States to the governments of less developed
countries and is not applicable to assistance
to private organizations, such as the Inter-
national Executive Service Corps, which
conduct programs in COUntries to which the
United States government does not furnish
bilateral assistance. The amendment is also
intended to make clear that programs of re-
search and experimentation authorized
under section 241 of the Act are not con-
sidered assistance to countries within the
Meaning of section 211 or any other :seetion
of the Act.
Section 3 (b ) --.Authorization
This subsection amends section 212 of the
Act to authorize the appropriation of $165,-
650,000 for fiscal year 1974 and $165;650,000
for fiscal year 1975 for technical coopera-
tion and development grants.
Section 31:c)?American Schools and
Hospitals Abroad
(1) This provision amends section 214(c)
of the Act to provide authorizations in the
amount of $10,000,000 for fiscal year 1974
and $10,000,000 for fiscal year 1975 for as-
sistance to American schools and hospitals
abroad. It also eliminates unnecessary lan-
guage pertaining to expenditures of funds
appropriated for fiscal year 1970.
(2) This provision repeals subsection 211
(d) which pertained to authorization of ex-
cess foreign currency appropriations ,for fis-
cal year 1970 and is no longer necessary.
Housing G uaranties
Section 4( a) --Worldwide Housing Guaranties
This subsection amends section 221 of the
Act by increasing to $480,000,000 the (amount
of worldwide housing investment guaranty
authority.
Section 4(b)?Housing Projects in Latin
American Countries
This subsection amends subsection 222(c)
of the Act by increasing to $594,900,000 the
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arnoUnt of Latin American housing guaran-
ty authority.
? Section 4(c) ?General Provisions
This subsection amends subsection 223(i)
of the Act to make housing guaranty author-
ity available through June SO, 1976.
Overseas Private Investment Corporation
Section 5(a)?Risk Management and Risk
Sharing
This section amends section 231(d) to
strengthen OPIC's existing mandates to con-
duct its insurance Operations with due
regard to risk management and to share its
Insurance risks by confirming that OPIC's
risk-sharing may be with other insurers, pub-
lic or private, and by committing OPIC to
seek in future insurance underwritings to
assure that the costs of the program will
be fully covered over the long term by the
private users of the program.
Section 5 (b)?Economic Interests of the
United States
'this section amends section 231(1) of the
Act by specifying U.S. employment interests,
as well as U.S. balance-of-Payments interests,
in the consideration of the effects of a pro-
posed project on the U.S. economy.
Section 5(c) ?Stock Rights
This section amends section 234(c) of the
Act to permit the Corporation to acquire in
its financing operations, warrants and other
rights to acquire stoek, but provides that
such rights may not be exercised while held
by OPIC. This change was adopted by the
Senate in the Foreign Assistance Act of 1972
which for other reason was delayed in its
enactment by Congress.
The amendment would not allow OPIC
to purchase stock. Under present law, ?plc
may acquire debt securities convertible to
stock (for example, convertible debentures)
end sell them to investors, but may not con-
vert them to stock while they are held by
OPIC. OPIC has found that rights to ac-
quire stock are more flexible and more pop-
ular as a financing tool than convertible debt
securities and that borrowers in less devel-
oped countries are often reluctant to issue
convertible debt securities because of the
legal technicalities associated with them.
With broader latitude as to the form of
stock rights OPIC could obtain and sell, OPIC
would be able to spur private local partic-
ipation to OPIC-financed projects because
potential purchasers could be offered a choice
of an equity or debt position is a project.
This would be especially attractive to small
financial institutions which might be reluc-
tant to purchase debt securities containing
Complex conversion features.
The amendment also would make it clear
that the authority to receive convertible debt
securities and rights to acquire stock ap-
plies to all of OPIC's financing operations,
that is to investment guaranties as well as
direct loans.
Section 5 (d)?Issuing Authority
This section would amend section 235(a)
(4) of the Act to extend OPIC's investment
insurance and guaranty authority from June
80, 1974 until June 30, 1976.
The Foreign Assistance Act of 1969, which
was enacted December 30, 1969, authorized
extension of the 25-year old political risk
Insurance program and the extended risk
guaranty program for five years from June
30, 1969 and provided for the establishment
of the Overseas Private Investment Corpora-
tion to operate these programs. The five-year
extension of the insurance and guaranty pro-
grams was intended to provide a reasonable
period for testing of the management of the
programs by a public corporation and to de-
termine the feasibility of further steps to-
ward private management and financing of
some or all of OPIC's services.
Because of the delayed enactment of the
legislation and the further delay of one year
In establishing OPIC the actual period of
testing will be only about three years when
OPIC is scheduled to submit a report to the
Congress next March and only three and
one-half years when the present insurance
and guaranty authorities expire on June 30,
1974. More time will be needed to establish
a record of the new OPIC policies on which
to base negotiation of possible arrangements
for transferring parts of the program to pri-
vate organizations, and to permit informed
judgment of whether and how the program
should be recast in long-term legislation.
Consequently, an interim extension of two
years is proposed, to June 30, 1976, con-
sistent with the two-year extension of other
chapter 2 programs sought by this Bill. (In
addition, as provided in section 5(g) of this
Bill, the deadline for OPIC's submission of
a report to Congress analyzing the possibility
of transferring all or part of its activities to
private United States citizens or organiza-
tions would be extended 11 months, to no
later than February 1, 1975. This would allow
time for consultation and legislation based
on the report before expiration of the au-
thorities.)
Section 5 (e) ?General Provisions and
Powers
This section would amend section 239(d)
to clarify and expand OPIC's authority to
enter into coinsurance and reinsurance
agreements with private insurance companies
and others, and to enter into pooling ar-
rangements with other national or multi-
national insurance and financing agencies.
The first part of this provision is similar to
the authority contained in the Export-Im-
port Bank Act of 1945, as amended. Inter-
national risk-pooling arrangements can
serve common interests by strengthening
deterrence against confiscatory treatment of
foreign investors. Risk-sharing with private
United States insurance companies is an es-
sential element of experimental steps toward
private participation in OPIC's operations,
now being discussed with the U.S. insurance
Industry. >-
Section 5(f) ?Agricultural Credit and Self-
Help Community Development Projects
This section would amend section 240(h)
to extend for two years?to June 30, 1975?
the authority for OPIC to establish pilot loan
guaranty programs in five Latin American
countries to encourage private banks and
other local credit institutions to make agri-
cultural and community development loans
to organized groups and individuals who
have been unable to obtain credit on reason-
able terms. Experience in two years of pilot
operation demonstrated the need for the
participation of central banks in the pro-
gram in order to assure increased lending
capacity and to induce private banks to
engage in such small scale lending. The
extension would allow time to test the new
system, which could not be installed until
early 1973.
Section 5 (g) ?Reports to the Congress
This section amends section 240A(b) to
extend for 11 months, to no later than Feb-
ruary 1, 1975, the deadline for submission
to the Congress of an analysis of the pos-
sibilities of transferring ? all or part of
OPIC's activities to private United States
citizens, corporations, or other associations.
The reasons for this change are set forth in
the analysis of section 5(d) above.
ance to $86,100,000 for each of the fiscal
years 1974 and 1975.
Programs relating to population growth
Section 7?Authorization
This section amends section 292 of the
Act by continuing for fiscal years 1974 and
1975 the requirement that at least $125,000,-
000 of all funds made available for carry.
lag out Part I of the Act be available only
for programs relating to population growth.
International organization and programs
Section 8?Authorization
(a) This subsection amends subsection
302(a) of the Act by authorizing the ap_
propriation of $124,800,000 for the fiscal year
1974 and such sums as may be necessary
for the fiscal year 1975 grant contribu-
tions to international organizations.
(b) This subsection amends subsection
302 ( b ) (2) by authorizing the appropriation
of $15,000,000 for each of the fiscal years
1974 and 1975 for grants for Indus Basin
Development. ?
Contingency fund
Section 9?Authorization
(a) This subsection amends section 451 of
the Act, relating to contingency funds, by
authorizing $30,000,000 for fiscal year 1974,
and $30,000,000 for fiscal year 1975.
As in the past, disaster relief and recon-
struction assistance furnished under this
title would be limited to short-term assist-
ance designed to alleviate and repair the con-
sequences of a natural or man-made
catastrophe rather than providing for long-
term development assistance.
(b) This subsection provides a permanent
authorization for appropriations for dis-
aster relief assistance in the case of
extraordinary disasters of large magnitude.
This authority. would permit prompt appro-
priations of funds to meet emergency re-
quirements in those cases where the assist-
ance required is in excess of the amounts
made available by the Contingency Fund or
by other accounts.
International narcotics control
Section 10?Authorization
This section amends section 482 of the act
by authorizing the appropriation of $42,-
500,000 for international narcotics control
for the fiscal year 1974 and such sums as may
be necessary for the fiscal year 1975.
Military assistance
Section 11
(a) Authorization. This subsection amends
section 501(a) of the Act to authorize the
appropriation of $652,000,000 for the fiscal
year 1974.
(b). Special Authority. This subsection
amends section 506(a) of the Act to extend
without fiscal year limitation the Presi-
dent's special authority to order defense
articles and defense services subject to sub-
sequent reimbursement. This authority has
previously been renewed from year to year in
annual authorization acts.
(c) Local Currency Deposits. This subsec-
tion ,repeals section 514 of the Act which
requires recipients of grant military assist-
ance, including excess defense articles, to
deposit in local currency an amount equal
to ten percent of the value of such assist-
ance for use by the United States to pay
its local currency official costs in that
country.
Security supporting assistance
Section 12?Authorization
This section amends section 532 of the Act
to provide an authorization for security sup-
porting assistance for fiscal year 1974 of
$100,000,000.
International military education and training
Section 13
(a) International Military Education and
Training Chapter.
Alliance for progress
Section 6?Authorization
(a) This subsection amends subsection
252(a) of the Act by authorizing the appro-
priation of $236,100,000 for fiscal year 1974
and $236,100,000 for fiscal year 1975 to carry
out development lending and technical as-
sistance in Latin America.
(b) This subsection amends subsection
252(a) of the Act by limiting the amount
of the total Alliance for Progress authoriza-
tion which may be used for technical assist-
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This subsection adds to Part II of the Act
a new chapter establishing a program of
international military edit-cation and teain-
ing, separate and distinct from the military
assistance program which will henceforth
be concentrated on materiel assistance. The
chapter consists of four sections.
Section 511 contains a statement of the
chapter's purpose, which emphasizes the dif-
ferences between objectives of this new
program and those of the military assist-
ance program.
Section 542 authorizes the President to
provide military education and training by
grant, coneract, or otherwise and desceibes
the kind cf activities that can be engaged
in under this chapter. These act:.vities in-
clude attendance by foreign military per-
sonnel and related civilians at U.S. and
foreign military facilities for education or
training purposes. This includes interna-
tional military educational facilities such as
those under NATO auspices, Also permitted
is attendance by- such foreign personnel at
pertinent courses of instruction at nonmili-
tary public and private educational and re-
search institutions. In addition, observation
and orientation visits by foreign military and
related civilian personnel Would be provided
under this chapter. Filially, section 542 pro-
vides for other activities to further the pur-
poses of the chapter, such as the f urnishing
of noncombat military training instructors,
media aids and publications.
Section 543 authorizes the appropriation
of funds to the President to carry out the
purposes of the chapter. Consistent with the
establishment of a new, permanent authorisy
for international military education and
training, the authorization is not subject ;0
a dollar ceiling or fiscal year limitation.
Section 544 requires the President to sub-
mit annual reports to the Congress concern-
ing the activities carried on and obligations
incurred for international military education
and training on a country by country basis.
(b) Amendments to the Foreign Assistanee
Act.
This subsection amends the Act to elimi-
nate all references to training from chapter
2 of Part III, which deals with military assist-
ance, because military education and train-
ing programs will no longer be conducted
as military assistance. Thus, for example,
statutory requirements and restrictions ap-
plicable to "military assistance" (e.g. section
51.4, section 1553, etc.) would not be applicable
to military education said training programs
under this chapter. The subsection alo
amends Part XII of the Act, Containing gen-
eral, administrative, and miscellaneus pre-
visions, to clarify the application of dime
provisions to the new chapter on interna-
tional military education and training. The
specific amendments made by this sujasection
are:
(1) This provision deletes the references
to training or advice from section 503(d) of
the Act, which authorizes the assignment of
members of the U.S. Armed Forces to non-
combatant duties.
(2) This provision deletes the exclusion of
"training only" countries from the 'Iforty
country limitation on the number of coun-
tries that can receive military assistance con-
tained in section 504(a) cf the Act.
(3) This provision repeals the restriction
on the number of foreign military students
to be trained in the United States. Accord-
ing to section 510 of the Act, this number
cannot exceed in any fisc,e1 year the number
of civilians brought to the United States in
the previous fiscal year under the Mutual
Educational and Ctfitural Exchange Act of
1961.
(4) This provision makes clear that thc(
roles of the Chief of the United States Dip-
loinatic Mission and of the Secretary cia
State with respect to international military
education and training will be the same ea
they are for railitsry inaleriel assistance pro-
grams. This is achieved by inserting a ref-
erence; to military education and training
after the reference to military assistance in
subsections (b) Ind (c) of section 622 of
the Apt.
(5) This provi eon estends the supervi-
sory respons; billies of the Secretary of
Defense uncles seetion 623(a) (4) of the Act
to military-m late(' civilian personnel, con-
sistent with ;he scope of the new chapter
on international military education and
training. It also makes the supervisors, re-
sponsibility on the Secretary of Defense over
Department of Defense functions relating
to military a ssistance expressly applicable
to military education and training as well.
(6) 'e'his provision makes the provisions
of section 632 of the Act, concerning reim-
bursement anions, agencies, expressly appli-
cable to military education and training in
the same mar nee as that section applies to
military mate lel assistance.
(7) This provision amends sections 636(g)
of the Act to empire that Part II funds are
available for administretive, extraordinary
and operating expenses incurred in furnish-
ing military el-in:talon and training. It also
makes Part II tunas available for reimburse-
ment of expe ases of military-related civil-
ian personnel in connection with orientation
visits, consistent with the scope of the new
chapter on in em ttional military education
and training. .
(8) This prove ion modifies the defini-
tion of defens3 service in section 844(f) of
the Act so as eo seclude references to train-
ing. BY this change, the authority to fur-
nish training as military assistance under
chapter 2 of Fart It of the Act will be ter-
minated. In addition, the definition of train-
ing formerly ince:Med within the definition
of defense service is made a separate sub-
section, subsection 644(n), which will apply
to the new chaptsir on international mili-
tary educatior aid training, The changes
made by this :movision are not intended to
affect the sale if teiiining as a design service
under the FNMA.
(c) Preserva Von of Existing Actions.
This subsection makes clear that the
amendments to, the Act affected by this sec-
tion will not call into question the con-
tinuing validitr of actions taken under au-
thority of any provision amended or repealed
by this section, :etch as regulations and
contracts.
(d) Interim Fur ding.
This subsection authorizes funds here-
tc(fore made a vaiteble for activities which
will be funded in I he future under the new
international militcry education and train-
ing chapter to be obligated and expended
either in accoriam:e with the orignally ap-
plicable authority or under the new author-
ity.
Admil:istrative provisions
Section 14--Er1eloyment of Personnel
This section aclOgea new subsection 11c)
o section e25 of the Act to authorize the
participation in the Foreign Service Retire-
ment and Disabilite System of certain cate-
gories of AID. Pc-reign Service Personnel.
Under existing ' aw, all A.I.D. employees, both
Civil and Fore gn Service, are participants
in the Civil Servicc Retirement System.
The subsection equalizes conditions of
overseas career service among the foreign
affairs agencies. Of the three principal agen-
cies, States. U;3IA, and AID., only AID,
foreign service personnel do not participate
in the Foreign Seriece Retirement System.
This amendment would not create a per-
manent foreign assistance career service and
would not prejudice any future action that
the Administration ar the Congress may wish
to take with reaps it to foreign assistance_
Paragraph (I.) (II designates the cate-
gories of personnel serving in the Agency
for Internationd Development who would
participate in the Foreign Service Retirement
and Disability System. Included among these
categories are Foreign Service staff officers
and employees who are serving under unlim-
ited appointments. The Department of State
is submitting proposed legislation that would
eliminate a ten years prior service require-
ment for Foreign Service staff personnel in
the Department of State and USIA. The Bill
is consistent with that proposed legislation.
It is the intention of this subsection to
achieve comparable standards for retirement
participation by Foreign Service &toff per-
sonnel in the Department of State, USIA
and A.I.D.
Paragraph (k) (2) provides that persons
who become participants in the Foreign Serv-
ice Retirement System shall make a special
contribution to the Foreign Service Retire-
ment and Disability Fund in accordance with
.section 852 of the Foreign' Service Act of
1946. This means that such persons' prior
contributions to another Federal retirement
system, generally, the Civil Service Retire-
ment System, will be transferred to the For-
eign Service Retirement and Disability Fund.
Thereafter, the normal compulsory contribu-
tions will be made to the Foreign Service
Retirement and Disability Fund.
Paragraph i:k) (3) provides for the appli-
cation of section 636 of the Foreign Service
Act of 1946, as amended, to the A.I.1D. par-
ticipants in the Foreign Service Retirement
System. Section 636 provides for the volun-
tary retirement of a participant who has at-
tained the age of 50 years and who has
rendered 20 years of service.
Paragraph (k) (4) continues a partici-
pant's coverage under the Foreign Service
Retirement System- w:henever such partici-
pant might be assigned to positions not cov-
ered by the system. This authority is similar
to that contained in section. 571(b) of the
Foreign Service Act of 1946, as amended.
Paragraph (k) (5) is a transitional provi-
sion. It provides for the gradual retirement
over a 7-year period of participants in the
system who are above the Foreign Service
mandatory retirement age at the time they
become partictpants in the system. The in-
terim schedule for the gradual transition to
the Foreign Service Retirement System is
similar to the transition formula authorized
when the staff personnel of the State De-
partment were transferred to the Foreign
Service Retirement System pursuant to the
Foreign Service Act amendments of 1960,
and when U.S. Information Agency Foreign
Service Information Officers, Foreign Service
Reserve Officers, unlimited, and staff officers
and employees were transferred under the
provisions of Public Law 90-494, enacted in
1968. A proviso exempts Presidential ap-
pointees confirmed by the Senate, while so
serving, from the otherwise applicable man-
datory retirement age.
Paragraph (le) (6) provides that the Presi-
dent may, whenever he deems it to he in the
public interest, extend any participant's
service for a period not to exceed 5 years after
the mandatory retirement date for such par-
ticipant. It is anticipated that this author-
ity will be del agated to the Administrator,
A.I.D.
Paragraph (k) (7) provides that the sub-
section will become effective on the first day
of the first month which begins more than
one year after the date of enactment. It also
provides that an eligible Foreign Service Re-
serve Officer or staff officer or employee may
elect to become a participant before the
mandatory req uirements a the subsection
become effective. Finally this paragraph pro-
vides for another transitional provision sine-
iliar to that provided for Foreign Service staff
personnel of the State Department in 1960,
and for USIA Foreign Service information
Officers, Foreign Service P,eserves Officers,
unlimited, and staff officers and employees in
1968.
Paragraph (k) (8) provides that an A.I.D.
participant in the Foreign Service Retire-
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May 7, 1973 CONGRESSIONAL RECORD ? SENATE S 8323
meat System who is ge arated: for cause shall
be entiled to the S,kLcxi in sub-
f thlEereir Serv-
e caul. y, these
rider which
ryice Retire-
be refunded
si?1Thwing separa-
?par-- Oh also provides
,?fTiority contained in
As) of the foreign Assistance
to A.I. participants in the
Retirement System rather
than 4-eut authority contained
in the WI Service Act of 1946, as
amended,
-
ion 15?Administrative Expenses
Tb, section amends section 637 of the Act
by Oroviding an authorization for admin-
istalitive expenses for the agency administer-
in Part I of $53,100,000 for fiscal year 1974
d $53,100,000 for fiscal year 1975.
Section 16?Famine and Disaster Relief
This section amends 639 of the Act to give
the President greater flexibility in carrying
out programs of famine and disaster relief.
Section 639 In its present form permits
faraine and disaster relief assistance in cases
in which It would otherwise be prohibited.
The section recognizes that humanitarian
concerns in such cases over-ride the political
considerations which, in some circumstances,
should prevent the conduct of ordinary as-
sistance programs.
The purpose of the proposed provision is
to facilitate such humanitarian activities
where operating procedures suitable in
normal cases would unduly curtail them.
Thus, for example, the provisions of the
Merchant Marine Act of 1936 requiring trans-
portation by American flag carriers would net
apply in disaster situations when their use
would result in delay in alleviating the con-
sequences of the disaster. Similarly, the new
authority would eliminate delays encount-
ered in the past in responding swiftly and
effectively to disaster situations because of
the necessity of complying with such sections
of the Act as 636(1), relating to vehicle pro-
curement and section 604, establishing rules
applicable to ordinary procurement activities.
Indochina Reconstruction
Section 17
This subsection adds a new part to the Act
to provide for reconstruction of the war torn
countries Of Indochina. The new part con-
tains four sections.
Section 801 is a statement of policy. It rec-
ognizes the importance of humanitarian re-
- lief and reconstruction assistance to the real-
ization of a lasting and stable peace.
Section 821 authorizes the President to
furnish assistance to South Vietnam, Laos
and Cambodia. The assistance authorized may
be furnished on a loan, grant, or other basis.
Such aid may be used for a broad range of
economic assistance activities, including re-
lief, reconstruction, and -development rang-
ing from the most urgent emergency relief
requirements, through programs to stabilize
temporarily unsettled politico-economic
conditions, to longer-range reconstruction
projects designed to help the countries
covered to resume their interrupted develop-
ment. The provision contemplates that a full
range of assistance mechanisms, including
project, program, and technical assistance,
may be utilized, and that such assistance
may be furnished directly by the United
States, or through private, regional, multi-
lateral, or international organizations.
Section 822 authorizes appropriations for
the purposes spelled out in section 821;
$632,000,000 is atuhorized for fiscal year 1974.
This figure does not include any amount
for assistance to North Vietnam. The section
makes clear that, while this part will be the
principal source of funds for economic as-
sistance for Indochina, funds otherwise
sections 637(b
ice Act of 19
subsections
contribut
meat an
or contin
tion f
that
sub
Ac
available for these purposes, such as funds
and authorities of the Overseas Private In-
vestment Corporation (OPIC), may also be
used. The funds authorized by this section
may be appropriated to remain available un-
til expended.
Section 831 provides that authorities for
the performance of functions under part I
of the Act shall also be available for carry-
ing out this part of the Act. Some of those
authorities in the Act are available to ad-
minister both part I and part II, "while
others are available for only pelt I. It is the
intention of this section to make available
for the administration of part V all author-
ities available to administer any part I pro-
gram.
Foreign military sales -
Section 18?Foreign Military Sales Act
(a) Credit Sales Terms. This subsection
amends section 23 of the FMSA by extend-
ing from ten to twenty years the length of
time for which credit may be extended.
(b) Guaranties. This subsection amends
section 24(a) of the FMSA by eliminating
the requirement that guaranties be issued
only to financial institutions doing business
in the United States. This change will per-
mit the utilization of overseas sources of
financing military exports at times when
banks in the United States are unable to
provide fully for such financing.
(c) This subsection amends section 24(c)
of the FMSA in two respects:
(1) This provision is related to amend-
ments contained in subsections (e), (f) (2),
(g) (2), (h) (3), and (j) of this section of the
Bill. Together, these amendments permit the
sale and guarantee of promissory notes gen-
erated by credit sales under section 23 of the
FMSA without additional charge against the
current appropriation or the current pro-
gram ceiling. Such direct credits are already
charged against both the appropriation and
the prograrh ceiling in the year they are ex-
tended. These changes are intended to facili-
tate the Treasury Department's debt man-
agement functions and would not increase
the amount of the FMS program.
(2) This provision is related to amend-
ments contained in subsections (e), (f) (2),
(g) (2), and (h) (3) of this section of the
Bill. These amendments clarify the computa-
tion of the 25 percent guaranty reserve es-
tablished by section 24(c) of the FMSA in
conformity with the practice of the Export-
Import Bank. The amendments specify that
the principal amount of the loan guaranteed
will be charged against the program ceiling
and that 25 percent of that principal amount
will be charged against the current appro-
priation for the guaranty reserve.
(d) Authorization. This subsection
amends ,section 31(a) of the FMSA by au-
thorizing the appropriation of $525,000,000
for the fiscal year 1974 to carry out the pur-
poses of the FMSA.
(e) Aggregate Ceiling. This subsection
amends section 31(b) of the FMSA by es-
tablishing for the fiscal year 1974 a ceiling
of $760,000,000 on the aggregate total of
credits and guaranties which can be issued
under the FMSA. It also makes technical
amendments to section 31(b) which are ex-
plained above in the analysis of subsection
(c) ?
(f) Latin American Ceiling. This subsec-
tion amends section 33(a) of the FMSA by
removing cash sales from the ceiling on ag-
gregate military assistance and sales to
Latin America. It also makes technical
amendments to section 33(a) to bring it
into conformity with the amendments ex-
plained above in the analysis of subsection
(c). In addition, this subsection raises the
Latin American ceiling from $100,000,000 to
$150,000,000.
(g) African Ceiling. This subsection
amends section 33(b) of the FMSA by re-
moving cash sales from the ceiling on ag-
gregate military assistance and sales to
Africa. It also makes technical amendments
in section 83(b) to bring it into conformity
with the amendments explained above in
the analysis of subsection (c).
(h) Waiver of Regional Ceilings. This sub-
section amends section 33(c) of the FMSA
to bring its terms into conformity with the
amendments made by subsections (c), (f)
(1) and (2), and (g) of this section of the
Bill.
(1) This subsection repeals section 36(a)
of the FMSA, which requires the Secretary
of State to submit semi-annual reports to
the Congress of exports of significant de-
fense articles on the United States muni-
tions list. Section 657 of the Act, which was
enacted in 1972 in? Public Law 92-226, now
requires the submission of annual reports
containing all of the information included
in the reports submitted under section 36
(a) of the FMSA.
(j) This subsection amends section 37(b)
of the FMSA to permit the deposit of a por-
tion of the proceeds from the sale of promis-
sory notes into the guaranty reserve. This
change is related to the amendment made
by subsection (c) (1) and its purpose and
effect are explained in the analysis of that
subsection.
By Mr. BEALL (for himself and
Mr. MATHIAS) :
S. 1712. A bill to amend title II of the
Social Security Act to provide a special
rule for determining insured status, for
purposes of entitlement of disability in-
surance benefits, of individuals whose
disability is attributable directly or in-
directly to menningioma or other brain
tumor. Referred to the Committee on Fi-
nance.
Mr. BEALL. Mr. President, I am send-
ing to the desk, in conjunction with my
distinguished colleague (Mr. MATHIAS)
a bill that would provide a special rule
for determining disability insured status
for individuals who are disabled directly
or indirectly by meningioma or other
brain tumors.
Mr. President, this bill is identical to
S. 686, which Was introduced into the
92d Congress. This legislation resulted
from information provided to us by Mrs.
Irene C. Heap of Silver Spring, Md. Mrs.
Heap has summarized her situation in a
letter addressed to the Members of Con-
gress, and I ask unanimous consent that
the text of this letter be printed at this
point in the CONGRESSIONAL RECORD fol-
lowed by the text of this legislation.
There being no objection, the letter
and bill were ordered to be printed in
the RECORD, as follows:
HONORABLE MEMBERS OF CONGRESS:
I, and the other Brain Tumor Victims in
same predicament as I, have the Constitu-
tional Right to be represented by Disability
Laws; therefore, I request prompt enact-
ment of the Brain Tumor Bill re-introduced
in Congress. This Bill is necessary because
Social Security Administration's Director of
Appeals Council wrote me, as follows: "there
would appear to be no basis on which the
claim could be.pursued under existing law."
Your so-called "Definition of Disability"
Laws deny that my fifteen (15) year Brain
Tumor existed prior to emergency brain
surgery because man-made machines failed
to detect it even one year prior to brain
surgery; thus, I was supposed to have worked
while growing it.
HEW turned down the previous Brain
Tumor Bills because other disabling excluded
diseases don't have special provisions cover-
ing them. Denying Disability Benefits to
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I hose who have survived brain surgery once
and may undergo it. again is Murder by Con-
gress of the disabled and is not represents-
tion.
I demand justice!!!
Mrs. IRENE C. HEAP,
SILVER SPRING, MD.
S. 1712
De it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That (a) sec-
tion 223 of the Social Security Act is amend-
ed by adding at the end thereof the follow-
ing:
?'Special Rule for Determining Insured Status
(e) Any applicant for.disability insurance
benefits, who for the month in which appli-
cation for such benefits is filed does not
satisfy the requirement of subsection (a) (1)
(A), shall, nevertheless, be deemed to satisfy
such requirement for such month if--
"(1) such applicant is Under a disability:'
"(2) the disability of such applicant is,
attributable, directly or indirectly, to the
condition (whether past or present) of
meningioma or other brain tumor;
-(3) prior to such month and prior to
the date such applicant was first medically
determined to suffer from meningioma or
other brain tumor, such applicant experi-
ence.d symptoms consistent with those pro-
duced by rneningioma or other brain tumor;
and
" (41 such applicant would have satisfied
the requirement of subsection (a) (1) (A) for
the month during which such applicant first
experienced the symptoms referred to in
clause (3), or. if later, the month following
the month during which such applicant last
engaged in any substantial gainful activity."
(b) The amendment made by subsection
(al shall apply: with respect to monthly ben-
efits under tit.e II of the Social SecurIty Act
for months after the Month in which this
Act is enacted, but only on the basis of
applications for such benefits filed in or after
the month in which this Act is enacted.
By Mr. McGOVERN (for himself.
Mr. ABOUREZK, Mr, CLARK, MI.
HATHAWAY, Mr. HUMPHRE't, Mr.
INOUYE, and Mr. Moss) :
S. 1714. A bill to establish a task force
within the Veterans' Administration to
advise and assist in connection with, to
consult on, and to coordinate all pro-
grams pertaining to veterans of the Viet-
nam era. Referred to the Committee on
Veterans Affairs.
By Mr. McGOVERN (for himself,
Mr. ABOT_IREZK, Mr. CLARK, Mr.
HART, Mr. HATHAWAY, Mr. HUM-
PHREY, Mr. INOUYE, ane. Mr.
Moss)'
S. 1715. A bill to amend title 10 of the
United States Code to establish inde-
pendent boards to review the discharges
and dismissals of servicemen who served
during the Vietnam era, and for other
purposes. Referred to the Committee on
Armed Services.
By Mr. MeGOVERN (for himself,
Mr. ABOUREZIE, Mr. CLARK, Mr.
HARTKE, Mr. HATHAWAY, Mr,
HUM PHREY, Mr. INOUYE, Mr.
Mose, and Mr. CRANSTON)
S. 1716. A bill to amend chapter 49 oi
title 10, United States Code, to prohibit.
the inclusion of certain information on.
discharge certificates, and for other pur-
poses. Referied to the Committee on
Armed Services.
By Mr. .VIcOOVERN (for himself
Mr. ASOUREZK, Mr. CLARK, Mr.
HART, M ' INOUYE, and Mr.
Maas) :
S. 1717. A bill to amend chapter 34 of
title 38, United States Code, to provide
additional edueati anal benefits to Viet-
nam era veterans. Referred to the Com-
mittee on Vete/ ans' Affairs.
By Mr. Me0OVERN (for himself
Mr. AROIIiEZK, Mr. CLARK, Mr.
? INC:$=11. and Mr. Moss) :
S. 1718. A bill to amend chapter 34 of
title 38, United States Code, to permit
eligible veterans Pursuing full-time pro-
grams of education to receive increased
monthly educetics cal assistance allow-
ances and have 'bleb: period of entitle-
ment, reduced propartionally. Referred to
the Committee on Veterans' Affairs.
FR1802,7E1:3 OF peece
Mr. McGOVERN, Mr. President, there
is a discordant not; amid the cheers and
accolades for our prisoners of war. The
peace with honor we hear so much about
appears more and nore to have left tens
of thousands oi other veterans prisoners
of peace.
All of us have been moved by the sight
of our returning pilsoners of war. Their
arrival has been -extensively televised;
their ordeal has been anxiously recorded;
their freedom has been joyously cele-
brated; their future has been a cause of
concern from the Whiee House to the
boardrooms of great corporations, and
in every community across the Nation.
Nothing has been so indelibly imprinted
on the American eonsciousnesS in the
first moments of peace as the sight of
those men walking off the planes that
brought them home from Hanoi.
Yet for many others who served in
Indochina, these days have been bitter-
sweet. Like all of Us, they welcome the
release of the pi isoliers of war. But these
veterans also wonder how long the coun-
try will continue to tell others who have
done so much and ntet so much, simply to
ask what they c in do for themselves.
What of the it5,003 paraplegics, quad-
raplegics, and elia,ltered men who left
their strength on it distant battlefield?
One of them said, as he sat in a hospital
ward:
"When I saw tie P.O.W.'s I cried. I cried
Out of self pity. I remember getting off the
plane when I rats rne I, and nobody met me.
I envy the prisoners lecause they can walk.
They were prisoners Mr five years and eight
years, but IM a :)risoner within myself be-
cause I'm a prisoner in this wheelchafx.
In hospitals ant homes across this
country there are young men without
legs or arms or faces; men mangled or
paralyzed who will never walk or father
a child. No bands payed for them. They
came quietly back to a land that scarcely
noted their return.
Almost 3 million ternericans fought in
Southeast Asia. rive 'nundred came home
in the bright lights of television from the
jails of North Vietnam. But 50,000
others came home ie coffins--not to the
cheers of a grateful country, but to the
bitter teats of feel/ families. And hun-
dreds of thousands have come home to a
dark night of frustration and deprivation.
They are free /fern the dangers of war,
but not from the indifference of peace.
They are condemned to undergo addic-
tion, to forego edueetion, to go without
employment. They are among the best of
America's young, but often they have
not even received adequekeamedical care
or treatment for drug adcfrtion. The Na.
tion found thein when it needed them
to fight; but now that we ed,a not need
them; they cannot find the help they
need from the Nation. They are fathers
and sons, veterans, and citi**--.44-nO
they are also the prisoners of reUet
of ,would
never abandon the prisoners
Our leaders swore that they
we But
they have neglected the prisonera of
peace.
Over 300,000 Vietnam-era vateraii,s.
ages 20 to 29, were unemployed at the
beginning of 1973?nearly a third of ? -
million men without jobs.
In February of this year, unemploy-
ment among veterans age 20 to 24, was
10.4 percent compared to 6.6 percent for
nonveterans of the same age. The rate
of unemployment among nonwhite vet-
erans of that age bracket is much higher
still.
As distressing as these figures are,
they account for only the technically
unemployed veteran?the serviceman
who registers at; a public employment of-
fice and maintains an active file. These
unemployment figures do not include
tens of thousands of others who have
never registered nor those who have
given up on public employment services
and subsequently had their files deac-
tivated. We really do not know how
many hundreds of thousands of these
Vietnam-era veterans are without jobs.
A Harris survey published in early 1972
indicated that the actual unemployment
rate for Vietnam veterans at that time
was between 11 percent and 15 percent,
with the figure as high as 21 percent for
nonwhite veterans and 31 percent for
those who are not high school graduates.
Mr. President, on various visits to
Vietnam over the last 7 or 8 years, I was
always impressed with the rather siz-
able number of these veterans who have
not even completed high school. Yet, it
is among that group, with deprived edu-
cational experience, that we find figures
running up as high as one-third who are
unemployed. So they are not only with-
out adequate educational levels, but also
without unemp:.oyment. I suppose that
among this group we have the most seri-
ous cases of need.
One of the major problems faced by
veterans seeking employment is what
they refer to as "bad paper." Bad paper
is a phrase used to describe a less than
honorable discharge, and nearly 185,000
Vietnam veterans were turned out of the
Armed Forces under these conditions?
not with dishonorable discharges, but
with what has been described as less than
honorable. Most of these bad discharges,
or bad paper, as they are referred to by
the veterans?about 6 out of 7--are un-
desirable discharges, and are issued ad-
ministratively, 'without the saieguatrcla
required at a court-martial, such as the
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a "blue law" that limits liberty without any
social justification. The dollar is no longer
on the gold standard and gold is no longer
tied to a doller standard. It is high time for
the Senate to take the leadership in sign-
ing the final divorce decree between gold
and the dollar. It is also high time for the
"land of the free" to catch up with the
more than seventy countries that allow its
citizens to hold gold.
Second, it is necessary to evaluate the eco-
nomic benefits and costs of legalizing gold.
To only legalize gold?to increase its de-
mand without at the same time increasing
the supply of gold?would result in need-
less costs to the consumer in higher prices, to
the manufacturer and retailer in less volume
and lower erriployment, and to the govern-
ment in a billion dollars hi-balance-of-pay-
ments losses. It would result in an unwit-
ting "foreign aid" program for the Soviet
Union, South Africa, and international gold
speculators. The Russians would end up
giving us fewer ounces. of gold for more tons
of wheat. It has been estimated that the
price of gold might soar to between $100 and
$1.50 per ounce. This would threaten the
"official price" of gold of $42.22 causing un-
settling speculation as to the value of paper
currencies and the current international
monetary arrangements. Even gold producers
would be threatened, in that long-term pro-
duction plans would be subjected to the
danger that the world's central bankers?
who hold fifty times the annual production
of gold?might suddenly begin to unload
their monetary gold stocks and bust the
market.
Thus, to provide an orderly market and
eliminate speculative excesses, it is neces-
sary to increase the supply as well as the de-
mand for gold. At the "official price" of gold,
the U.S gold stock is about $12 billion; at
current market prices ($90 per ounce), it is
worth more than $25 billion. As I stated in
my speeches in the Senate (January 16 and
March 28, 1973), I am proposing that the
Treasury begin an orderly disposal of this
surplus gold by a free market auction of no
less than 10 million ounces per year. This
Is only about 3 per cent of the existing stock
and will leave the Treasury enough gold for
'emergencies" past the year 2000. This move
on the supply side will keep a more stable
price of gold at between $50 and $100 per
ounce for the next decade?and insure both
a healthy incentive for gold producers in
the 'U.S. as well as a more stable price for
gold users.
As I pointed out in March 28th speech: ?
(1). This legislation will fight inflation for
,gold users and their customers, affecting
such things as wedding bands and class
rings, other jewelry uses, dental and elec-
tronic needs. The high school and college
graduate will not have to pay nearly double
the price for his class ring.
(2) It will provide jobs to the gold in-
dustry whose 1700 firms and 65,000 em-
ployees are affected by inflated gold values
and the restricted volume_of production.
(3) It will improve the 'U.S. balance of
payments by anywhere from $500 million to
one billion dollars U.S. industry now im-
ports about 6 to 8 million ounces of gold an-
nually at R cost to the balance of payments
of more than $500 million.
(4) It will increase government revenues
and reduce the need for a tax increase. The
government has already begun 'disposing
of its stockpile of more than $10 billion in
other "surplus commodities". But the biggest
"stockpile" of them all?the $25 billion in
gold?represents a lot of "tax savings" that
should not be forgotten. I am sure the
American citizen would rather use his money
for gold instead of taxes. (I might add
reference here to my bill for the issuance of
a gold "American Revolution Commemora-
tive Coin" that would honor the revolution,
soak up inflationary purchasing power, and
certainly be more popular than a tax in-
crease.)
ANSWERING ANY OBJECTIONS TO THIS BILL
The arguments for this legislation appear
to be so obvious and over-powering that one
has to look hard to find any objections to
it?the arguments for the bill embrace na-
tional goals ranging from freedom and em-
ployment to fighting inflation, improving
the balance of payments and increasing
Treasury revenues to head off tax increases.
One objection by the Treasury has been
that an "understanding" with certain Eu-
ropean governments prevents the Treasury
from selling gold outside the "official tier"
of the "two-tier" system set up in 1968. The
basis of this understanding is a simple "com-
munique of finance ministers" five years ago.
This understanding has no legal status in
international law: (1) As virtually every
other paragraph in this communique has
been altered by the signatories, the para-
graph limiting gold sales may also be
changed, having depended on the continu-
ance of the other paragraphs; (2) under the
doctrine of clausula rebus sic stantibus, the
understanding is dead in international law?
that is, the events of August 1971 and early
1973 have so changed the world of inter-
national finance, especially in the incovert-
ibility of the dollar, that any earlier agree-
ment based on a different world of facts La
no longer binding.
In a choice between risking the personal
feelings of one or more European finance
ministers and in reducing the freedom and
finances of the American public, the choice
should be perfectly clear.
The other objection, that of timing of the
legislation, I think is answered by the im-
plementation date being set at January 1,
1975?or earlier upon the option of the Presi-
dent. Instead of being a hindrance to the
government in its negotiatioss this summer
leading up to the September meetings of the
World Bank and International Monetary
Fund in Nairobi, this legislation should give
the President the tool that he needs. In this
way it is analogous to the Administration's
trade legislation, in that it enhances the Ad-
ministration's bargaining power. Thus the
Administration can assert the Congress has
given it only to December 31, 1974?the end
of the 93rd Congress?to resolve the inter-
national monetary issues. Thus, this gener-
ous date should help, not hinder, the bargain-
ing process. Above all, it gives the Admin.:
istration and world the clear "sense of the
Senate" as to its wishes.
ALTERNATIVE PROPOSALS BEFORE THE COMMITTEE
Other proposals before this Committee are
not necessarily inconsistent with the pur-
poses of my bill but are from a different per-
spective and fall within a different time
frame. The distinguished Senator from Rhode
Island has advocated the viewpoint that the
Treasury should immediately begin to sell 8
million ounces of gold annually to the in-
dustrial users of gold by the auction method
that prevailed before March 1968. I have no
objection to this as a first step within the
context of .the passage of my bill to insure
the right of all Americans to hold gold and to
participate in Treasury auctions of gold: As
the distinguished Senator from Rhode Island
has already cast his vote for eventual legal-
ization of gold holding by Americans, I be-
lieve he would join in this view.
There need be no dispute between the gold
producers, the gold users, or for that matter,
the Treasury and the American public. We
all believe that gold is too beautiful to be
left in the ground or in vaults where it no
longer functions as money. Squirrels May
prefer to dig up nuggets in one place and
bury them in other places; but people should
be smarter than squirrels. Now it is our tithe
to prove it.
S. 1681
IN THE SENATE OF THE UNITED STATES
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled,
Section 1. (a) Sections 3 and 4 of the Gold
Reserve Act of 1934 (31 U.S.C. 442 and 443)
are repealed.
(b) No provision of any law in effect on the
date of enactment of this Act, and no rule,
regulation, or order under authority of any
such law, may be construed to prohibit any
person from purchasing, holding, selling, or
otherwise dealing with gold.
(c) The Secretary of the Treasury is au-
thorized and directed to sell each year, from
reserves held by the United States, not less
than ten million ounces of gold by auction
to bidders who are citizens of the United
States.
Sec. 2. This Act shall become effective on
January 1, 1975, or on the effective date prior
to January 1, 1975, established therefore by
the President and published in the Federal
Register.
By Mr. HARTKE (for himself, Mr.
CRANSTON, Mr. Huai, and Mr.
MCINTYRE) :
S. 1682. A bill to amend the Foreign
Assistance Act of 1961 to prohibit foreign
assistance to those countries listed, not
taking adequate measures to end illicit
opium production, and for other pur-
poses. Referred to the Committee on For-
eign Relations.
Mr, HARTKE, Mr. President, I am to-
day introducing legislation to prohibit
foreign assistance to those countries
which refuse to take adequate measures
to end illicit opium production.
Mr. President, section 481 of the For-
eign Assistance Act authorizes the Pres-
ident to suspend military and economic
assistance to those nations which he de-
termines have not taken adequate steps
to suppress dangerous drugs. The Presi-
dent fully embraced this responsibility
on September 18, 1972, when he pro-
claimed, "Any government whose lead-
ers participate in or protect the activities
of those who contribute to our drug prob-
lem should know that the President of
the United States is required by statute
to suspend all American economic and
military assistance to such a regime. I
shall not hesitate to comply fully and
promptly with that statute."
Apparently the President feels that
there are no nations which continue to
be lax in their control of heroin and
other related hard drugs. And he most
certainly must not suspect that some
governments are completely ignoring
drug traffic. The Congress, however,
knows better. The existing situation de-
mands application of those sanctions
outlined in the Foreign Assistance Act
if we are to be conscientious in our effort
to end the drug problem in America.
Congressional study and journalistic
research have brought forth incontra-
vertable evidence that a number of gov-
ernments are simply not complying with
the requests of the U.S. government
to vigorously suppress drug traffic. Yet
no action has been taken by the Presi-
dent. In fact, the White House denies
that their program of piecemeal efforts
In insufficient, claiming that there have
been "important breakthroughs?
and huge seizures." These huge seizures
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amount to confiscating 29 tons of opium
in Laos, South Vietnam, and Thanand.
In the face of the total prod.uctien of
illicit opium in this area, the seizures
amount to only 3 or 4 percent.
Congress gave the power to terminate
economic and military assistance to the
President only because we know that
Customs agents and border patrols can-
not single-handedly reduce smuggling of
heroin. A General Accounting Office re-
port stated, in reference to Customs op-
oils, , a --
Although these effort:: may deter amai;eurs
and smelt-scale smugglers, they have not had
and probably cannot have any real impact
on the organized groups engaged in large-
scale heroin smuggling.
Customs does act as a strong deterent,
but it simply cannot ;stop the main bulk
of heroin reaching the streets of Amer-
ica, addicting our citizens, filling the
coffers of organized creme, and account-
ing for nearly half of the crimes comn-
mitted in our cities. Profits in the drug
trade are enormous. A $100,000 invest-
ment by stateside financiers can yield $2
million within 6 months. Ten or 15 tons
of heroin, originally costing $3 million
will make a turnover for American deal-
ers of $9.8 billion. With profits as high
as this, as long as there is a source and
a reasonably safe route of transit, there
will most assuredly be successful smug-
gling of heroin into the United States to
feed the veins of American addicts.
The logic behind ,mection 481 of the
Foreign Assistance Act was to stop heroin
at its source. Perhaps the flaw in our
legislation has been that the President
alone is left to decide whether or not a
government's cooperation has been ade-
quate. As we know many of the countries
in violation, this amendment hits them
as offenders and automatically removes
American economic and military assist-
ance from them. It leaves the President
to bear the burden of proof?proof that
these countries are not in violation of
our foreign assistance guidelines bel ore
he can resume assistance to them.
Gen, Lewis W. Walt, USMC (re-
tired) , as head of Special Task Force on
the World Drug Situation, stalled that
Southeast Asia is providing 10 or 15 per-
cent of the total drug traffic coming into
this country. Because of its tremendous
potential, however, Southeast Asia could
eventually replace Turkey as the largest
producer Of opium in Asia with approxi-
mately 400 tons. Laos, however, ac-
counted for nearly 100 tons, and Thai-
land for almost 200 tons annually. Ac-
cording to the State Department, heroin
imports from Southeast Asia's "gulden
triangle" te the :United States doubled
from 1969 to 1971. These countries not
only produce opium, but are the homes
for many of the laboratories which con-
vert opiuth into that more valuable and
much deadlier commodity?heroin.
General Walt went on to say that--
We know as a certainty that a lot of
opium entering the illicit market is grown
ir the 'golden triangle,' or in Turkey, Erin,
Afghanistan, Pakistan, E nil Mexico
Iran stopped opium production in 1955,
but resumed in 1969. Iran has a large
addict population and this action was
taken to stop traffic from Afghanistan
and Pakistan es well as other economic
reasons. The Iranian representative to
the United Na :eons Narcotics Commis-
sion said, 'Ote' economic situation has
been so Warman we have been forced to
take a unilateral decision" to resume
production. The Shah has stated that
Iran Will eni pm oduction when its neigh-
bors do.
Afghanistan, however, continues to
supply Iran with large amounts of smug-
gled opium. Pi kistan, too is a major
smuggler of illicit opium, feeding markets
in India, and Inn. While these countries
are involved in localized traffic, rather
than internatioral traffic to the United
States; the Cab net Committee on Inter-
national Narcotics Control of July, 1972,
voiced a warning that the trade is well
organized, and-- -
If illicit sappliss of opium from other
sources in the world are cut back, these
channels have i he potential for moving
South Asian opliun into the international
market.
The Turkish Government has taken
decisive action II banning all opium pro-
duction after 19"2. This should effectively
dry up Tur:tish sources. Mexico is the
source of approximately 10 percent of
the heroin smuggled into the United
States and ii the route of transit for 15
percent. The Mexican Government has
established rem Ines under the Agrarian
Reform Law for those who plant or per-
mit the planting of opium. Penalties in-
clude confiscatkin of land and livestock.
In addition, they have mobilized 10,000
troops for arti-c rug operations, destroy-
ing more thin 2,500 hectares of poppy
fields.
Michel Lamt erti, coauthor of "Les
Grandes Manoeeves de l'Opium," after 2
years of stulying all opium producing
countries has sai 5:
Any undercIntel. iped country with a large
unemployed labor force man start produc-
tion. This cOU d bs the case, say, for various
South American countries.
If we are to :leter these underdevel-
oped countries from realizing their po-
tential as opium producers and distribu-
tors, we must act boldly and decisively.
Some have suggested paying subsidies to
those foreigr farmers who agree not to
grow opium as re have done in Turkey.
But from the Ws s.hington Post of Febru-
ary 18, 1973:
American tin ancial contributions to Turkey
as part of the core iderable political pressure
to stop the cultivittion of the opium poppy
after 1902, offers :so encouragement to other
opium producing countries. Turkish au-
thorities had estlir ated that stopping opium
production woidd iiost the country $432 mil-
lion; U.S. coniribuTdons have amounted to
$35 million.
Obviously, ehe cost of such subsidies to
fully pay for opium produced in all coun-
tries would beconme extreme. Threats to
begin production by those countries not
now engaged !night also become common-
place. We would be paying a tribute to
tyranny?the tyrinny of drug traffickers.
The only practicse and honorable deter-
rent to illicit opium production and sales
is the impositior of penalties on those
nations which refuse to cooperate. And
the only penany 'so can impose on a sov-
ereign nation Is the removal of American
assistance. This line of reasoning was.ac-
cepted by Congress when it gave the
power of suspending foreign aid to coun-
tries not taking adequate steps', to end
year. By enacting this amendment to the
illicit drug traffic to the President last
Foreign Assistance Act of 1961, we will be
vastly improving the procedural processes
of the act, and serving notice to orga-
nized crime and governments which have
not taken vigorous action against drug
traffic that we will no longer tolerate the
financial, human, or social costs that il-
_Mit drugs have brought to our people.
Mr. President, I ask unanimous con-
sent that the text of the bill be printed
in the Reaper) following my remarks.
There being no objection, the bill was
ordered to be printed in the Recoen, as
follows:
8
Be it enacted by. 1
t1218
eSenate and House
of Representatives of the United States of
America in Congress assembled, That Chap-
ter 8 of Part I of the Foreign Assistance Act
of 1981 is amended at the end thereof by
adding the following section:
-Src. 482. ilnsTarcnorirs ON reraers OPIUM
PRODUCERS.?Bro foreign assistance shall be
furnished (other than chapter 8 Of part I.
relating to international narcotics control),
to Iran, Afghanistan, Pakistan, Burma, Thai-
land, and Laos.
If the President finds that any of the for-
eign countries referred to above has taken
adequate steps to prevent the production and
sale of illicit opium, he may ask Congress to
waive the foreign assistance restrictions, and
if Congress concurs, the restricAons shall not
apply to that ,country.
"Foreign assistance" means any tangible
or intangible item provided by the -United
States Government (by means of gift, loan,
credit sale, guaranty, or any other means) to
a foreign country.
ADDITIONAL COSPONSORS OF BILLS
AND JOINT RESOLUTIONS
S. 31
At the request of Mr. Hoixibtes, the
Senator from Maryland (Mr. 1VIAnnss)
was added as a cosponsor of 'S. 1;1, au-
thorizing the Secretary of Defense to
utilize Department of Defense resources
for the purpose of providing medical
emergency transportation services to
civilians.
S. 136
At the request of Mae Scriwenere, the
Senator from Maine (Mr. HATHAWAY)
was added as a cosponsor of S. 1.36 to
authorize financial assistance for oppor-
tunities industrialization centers.
S. 400
At the request of Mr. lIerserin the
Senator from Tennessee (Mr. BAKER)
was added as a cosponsor of S. 400, to
'amend the Federal Property and Admin-
istrative Services Act of 1949 so as to
permit donations of sunnus property to
public museums.
S. 440
At the request of Mr. Jellies, the Sen-
ator from Louisiana (Mr. JOHNSTON) was
added as a cosponsor of S. 440, the War
Powers Act.
S. 755
At the request of Mr. PELL, the Sen-
ator from Alaska (Mr. Gemmel was
added as a cosponsor of S. 795, to amend
the National :Foundation on the Arts and
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petroleum and its products from the burdens
and harmful effects and monopolies which
result from the operations of persons in the
marketing of petroleum products combined
with operations in production, refining, and
transportation of petroleum and petroleum
products.
SEC. 2. As used in this Act?
(a) The term "person" includes one or
more individnals, partnerships, associations,
corporations, legal representatives, joint-
stock companies, trustees and receivers in
bankruptcy and reorganization, common-law
trusts, or any organized group, whether or
not incorporated.
(b) The term "commerce" means trade,
traffic, or transportation among the several
States or within the District of Columbia, or
between any point in a State and any point
outside thereof, or between points within the
same State but through any place outside
thereof.
(c) The term "production" means the de-
velopment of oil lands within the United
States and the production of crude petroleum
and natural gas thereon, the storage of crude
petroleum and natural gas thereon.
(d) The term "transportation" means the
transportation of petroleum products by
means of pipe lines, railroads, or tankers.
(e) The term "refining" means the refin-
ing, processing, or converting of crude pe-
troleum, fuel oil, or natural gas into finished
or semifinished products. It shall include the
.initial sale with transfer of ownership of re-
fined petroleum products to customers at the
refinery.
(f) The term "marketing" means the sale
and distribution of refined petroleum prod-
ucts, other than the initial sale with trans-
fer of ownership to customers at the re-
finery.
(g) A person shall be deemed to be an
affiliate of another if such person controls
or is controlled by or is under common con-
trol with such other person.
(h) The term "control" means actual or
legal power or influence over another person,
whether direct or indirect, arising through
direct or indirect ownership of capital stock,
interlocking directorates or officers, contract-
ual relations, agency agreements, or leasing
arrangements where the result is used to af-
fect or influence persons engaged in the mar-
keting of petroleum products.
SEC. 3. It shall be unlawful for any person
directly or indirectly to be engaged in com-
m-rce in the marketing of refined petroleum
products while such person or affiliate of such
person is also engaged in one or more of the
other three branches of the petroleum in-
dustry, namely, production, refining, and
transportation.
SEC. 4. Any person knowingly violating the
provisions of this Act on or after January 1,
1974, shall upon conviction be punished by
a fine of not to exceed $100,000 for each such
offense committed.
SEC, 5. It shall be the duty of the Attorney
.General immediately to examine the relation-
ships of persons now engaged in one or more
branches of the petroleum industry and to
institute suits in equity in the United States
district courts for the issuance of mandatory
injunctions commanding any person to com-
ply with the provisions of this Act.
SEC. 6. The United States district Courts
, shall have exclusive jurisdiction of violations
of this Act and of all suits in equity and ac-
tions at law brought to enforce any compli-
ance with or enjoin any violation of this Act.
Any criminal proceeding may be brought in
the district wherein any act- or transaction
constituting the violation occurred. Any suit
or action to enforce compliance With or en-
join any violation of this Act may be brought
in any district wherein the defendant is
found or is an inhabitant or transacts busi-
ness, and process in any such cases may be
served in any other district.
SEC. 7. This Act shall be known as the "Pe-
troleum Marketing Divorcement Act of 1973".
- By Mr. CHILES:
S. 2083. A bill to amend the Foreign
Assistance Act of 1961, as amended. Re-
ferred to the Committee on Foreign Re-
lations.
Mr. CHILES. Mr. President, I am in-
troducing today a bill to amend the For-
eign Assistance Act of 1961 to give it
greater focus on the problems of poor
people in developing countries, espe-
cially health, nutrition, education, family
planning and small farm agriculture.
The bill also introduces language to as-
sure a phase out of each aid project au-
thorized within 3 years, host country
financing of all our aid projects to the
extent of 20 percent and an end to the
"follow on" character of many of our
loans where one project leads to another.
My bill also contains language which
would require the aid agency to more
tightly relate aid to specific program
purposes, intermediate goals and defined
time periods so that results, or the lack
of them, will be more visible.
I ask unanimous consent that this bill
and the testimony I will present to the
Foreign Relations Committee today be
printed in the RECORD at this point.
? There being no objection, the bill and
testimony were ordered to be printed in
the RECORD, as follows:
S. 2083
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That sec-
tion 201(b) of the Foreign Assistance Act of
1961, relating to the Development Loan
Fund, is amended by striking out the first
sentence and "In so doing," at the begin-
ning of the second sentence and inserting in
lieu thereof the following:
"The President is authorized to make loans
payable as to principal and interest in United
States dollars on such terms and conditions
as he may determine in order to be respon-
sive to efforts in developing countries to ad-
dress the problems of the poorest people, em-
phasizing projects in health nutrition, edu-
cation, family planning and small farm ag-
riculture. In so doing, the President shall
see to it that, in order to assume that host
country interest and initiative exist and that
there not be endless funding by the United
States, (A) the host country participate in
the financing of the project to the extent
01 20 percent of the total cost, (B) the phase-
out period of the project not exceed three
years with efforts being made to find local
and other international sources of financing
both during and after the three year period,
and (C) projects not have a "follow on"
character which necessarily links one project
to another.
SEC. 2. Section 211(a) of the Foreign As-
sistance Act of 1961, relating to technical
cooperation and development grants, is
amended by striking out the first sentence
and "In so doing" in the second sentence
and inserting in lieu thereof the following:
"The President is authorized to furnish
assistance on such terms and conditions as
he may determine in order to be responsive
to efforts in developing countries to address
the problems of the poorest people, with
emphasis upon health, nutrition, education,
family planning and small farm agriculture.
In so doing the President shall see to it that,
in order to assure that host country interest
and initiative exist and that there not be
endless funding by U.S. assistance, (A) the
host country request the technical assist-
ance before it is authorized, (B) the host
country finance 20 percent of the costs of
technical assistance and grant aid projects,
(C) that any given technical assistance and
grant aid be phased out within three years
with efforts being made to find local and
other international sources of financing both
during and after the three year period, and
(D) that grant aid projects not have a "fol-
low on" character whioh necessarily links
one grant to another; and"
SEC. 3. Section 251 of the Foreign Assist-
ance Act of 1961, relating to Alliance for
Progress, is amended as follows:
(1) Strike out the last sentence of subsec-
tion (a) and insert in lieu thereof the
following:
"The President is authorized to furnish
assistance on such terms and conditions as
he may determine in order to be responsive
to efforts in Latin America to address the
problems of the poorest people, with empha-
sis upon health, nutrition, education, family
planning, and small farm agriculture."
(2) In subsection (b) strike out the first
sentence and 'In furnishing assistance under
this title," in the second sentence and in-
sert in lieu thereof the following:
"Assistance furnished under this title shall
be directed toward the development of hu-
man as well as economic resources. In fur-
nishing assistance under this title the Presi-
dent shall see to it that, in order to assure
that host country interest and initiative exist
that there not be endless funds by U.S.
assistance, (A) the host country paxticipate
in the financing of the project to the extent
of 20 per centum of the total cost, (B) the
phase out period of the project not exceed
three years with efforts being made to find
local and other international sources of fi-
nancing both during and after the three
year period, and (C) that projects not have a
"folibw on" character which necessarily links
one project to another; and"
SEC. 4. (a) Subsections (a) and (b) of
section 621A of the Foreign Assistance Act of
1961, relating to strengthened management
practices, are amended to read as follows:
"(a) The Congress believes that United
States foreign aid funds could be utilized
more effectively by developing program pur-
poses in objectively measurable terms with
stated time periods for achievement, together
with a management system which pro-
vides for systematic in-house evaluation of
the progress made toward such purposes by
knowledgeable officials who have no respon-
sibility for program management. The man-
agement system should provide for the appli-
cation of advanced management decision-
making, information and analysis techniques
such as systems analysis, automatic data
processing, benefit cost studies, and informa-
tion retrieval.
"(b) To meet this objective, the President
shall establish a management system that
includes: the formulation of program aims,
objectives, goals and targets, both final and
intermediate, in objectively measurable terms
with defined time periods for accomplish-
ment; the development of a comprehensive,
unified plan for each separate overall pro-
gram, and for each country or region to
which program resources are directed?not
in relation to a single budget year but in
terms of intermediate and final program aims
setting forth the final program aims', ob-
jectives, goals and targets which have been
or are to be achieved, together with the
strategy and aggregate financing require-
ments for achievement of the program pur-
poses; and the development of mission orient-
ed budgets. All requests presented to the
Congress for authorizations and appropria-
tions for fiscal year 1975 and subsequent fis-
cal years to carry out programs under this
Act shall be formulated in accordance with
the management system required to be estab-
lished by this subsection."
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(b) Section 644 of the Foreign Assistance
Act of 196 l, is further amended by adding the
following new paragraphs immediately below
paragraph (in ) :
"(n) 'Program aim' means the final or ul-
timate purpose of a given program.
"(0) Program objective' means the final or
ultimate ptirpoee in a given country or region.
"(p) Program goal' means an element in a
plan to accomplish a stated objective.
"(q) 'Program targe; means an element
in a plan to accomplish a stated goal.
"(r) Program purposes' includes program
aims, program objectives, program gosh; and
program targets."
TESTIMONII, SENATOR LAWTON CHILES, COM-
MITTEE ON FOREIGN RELATIONS, JUNE 27? 1973
Mr. Chairman, I am honored to have this
opportunity to testify before the Committee
on Foreign Relations on our foreign aaast-
ance programs. I share a strong ..nterest in
Latin America with ;several members of this
committee but I am also con.ceraed about
our overall foreign assistance effort world
Wide. Many of our constituents aire increas_
!ugly worried about what this nation is in-
volved in abroad and how much of our re-
sources are going into foreign court Mies Nut1:11-
out us getting any visible results from it.
I think we have to pay increasing attention
to what the people are thinking about aid.
We in the Congress need to take a new look
at what the aid program is doing and decide
what's worth the taxpayer's money and what
is not.
The time has come for the Comptes to
act. We have gone on now a year and a half
on the basis of Continuing Resolution Au-
thority instead of an authorization bill. This
provides the executive agencies wish the op-
portunity to go on doing what they have been
doing in the past the way they want with-
out any new direction or guidance frone*the
Congress on where to go. This can't go on.
Times h.ave changed. The present pro-
gram is rooted in the thinking of the years
immediately after World War II. The Marshall
Plan approac?h is not viable in the 1970's. We
now have a new understanding of the limits
of our owe, power. We find ourselves in very
different economic circumstances where Eu-
rope and Japan have become strong competi-
tors instead of friends in need. We are no
longer the only big guy on the Inc-ek with
change in his pocket. We, no longer find our-
selves locked into a gang war with the Bo_
viet Union trying to divide up the world be-
tween us.
We are also at a moment in history when
we in the Congress must take a stronger hand
in setting the priorities and direction the
nation must take. The Constitution is like
the Bible. It is overlocked because it was
written a long time ago. Foreign aid is both
a budget and a foreign policy matter. It is
both these areas that the Constitution gives
to the Congress clear authority to act. The
time has come, Mr. Chairman, when to pre-
serve the role of the Congress in oar system
of government, we must act. And the foreign
aid program is one place we can begin, as the
Chairman of this Conunittee has so forth-
rightly done in the military aid and sales
program and just yesterday in putting for-
ward an economic assistance bill.
A. AID FRAMEWORK
What we most need to do in the Congress
Is to provide a framework for the kinds of
changes we want to see so the Executive has
a clear idea of where we want them to go
and perhaps most of all where we don't want
them to go.
Before I go into some specific aspects of
the legislation, I would like to make clear' ray
outlook on aid?the framework within which
I think specific changes in legislation should
be made.
The basic problem of our economic aaciet-
ance has been that it was born from the
notion that We the United States, could
bring about chaege in the world if we cinly
put some money. men and ideas to work
on the world's peoblerns. We could make the
world safe for democracy with our military
might and male the world economically
viable through mer wealth.
So we got eurssives spread thin in our aid
program to developing countries. Our aid
ranges across timisportation, power, indus-
try, mining, agr culture, health, education,
community development, communications.
You name it and we were into it.
If you take '20,000 employees and ask them
what can be dorm to achieve more develop-
ment in pool em retries, you are going to get
into everythiag. There are limitless numbers
of things we can do to help development in
underdeveloped eountries. Unless some re-
etrictions are pm; on what we set out to do,
we can go on pot ring more and more money
into endless nun hers of activities in a host
of different countries.
Mr. Chairman,, this still goes on. The other
day I was loc kin; at the ten new loans AID
Is taking final action on in the closing clays
of FY 1973 to taw tune of over $100 million.
These loans were for such things as a Sav-
ings and Loon E:ousing Program in Bolivia
($6 million), telmommenications in Male-
gasy ($2 mill:on), power projects in Afghan-
istan ($5 miltioni and the Philippines ($4.5
million), roads it Nepal ($7 million) and an
industrial bask in Turkey ($9 million). It's
endless' the y laces and kinds of things AID
Is doing.
These 10 loans provide a good sample to
show what is gcing on. Take the loan to
Malagasy, for example. Here is the AID de-
scription of the loan.
This loan is a follow-on to a $2.0 million
loan project which A.I.D. initiated in 1967 to
expand and modernize Malagasy's telecom-
munications system. The activity involves
the purchase and lestallation of materials re-
quired for construction and rehabilitation of
main telephone Munk lines and local links
to these line; in rural areas in the Western
and Southern ?regions of the Malagasy
Republic. Ain-financed materials will al-
low for dove iopieg 90 miles of additional
telecommunie atic ns facilities and replace-
ment of 622 ranee of inadequate 50 year old
lines.
Because many of the communities in. the
areas served by these lines do not have all
weather road connections and are thus iso-
lated during :Sart M each year, the planned
facilities will serve to alleviate the effects of
such isolation.
Mr. Chairman, if we as a government are
going to take upen ourselves responsibility
for alleviating the isolation of rural folk in
western and southern Malagasy, we are In-
deed prepared to take on responsibility for
the fate of all men everywhere. This is non-
sense.
So we have to place some very real restric-
tions on what girds of activities aid can be
spent on arm what the goals of our aid
should be. Otaerv;ise we are going to be all
over the map whieh gets us nowhere. This
kind of program loesn't give our taxpayers
any sense that anything they can get a
handle on is I eirm done with their money,
Mr. Chairmi,n, I call your attention to the
fact that the alalaea,sy loan was a "follow on"
loan in a previous AID loan. Two of the ten
loans in this green were "follow on" loans.
The other one has a classic description. Bear
with me while I read another Al]) loan
description.
Afghanistan-1C:ijakai transmision ($5
million)
This is a fellow-on to SLI FT 1970 AID
power project which did not include sufficient
funds to finance cernplementary transmission
facilities. The Afghan's attempts to fund
that aspect of the overall endeavor from other
sources failed: the Asian Development Bank,
World Bank and Federal Republic of Ger-
many declined to finance that part of the
project. Thus, in late 1972 they made a direct
appeal to the Administrator of AID for finan-
cing of the transmission facilities.
After careful study of the alternatives,
AID concluded that the only practical way to
limit an otherwise long hiatus between pow-
erhouse completion and transmission sys-
tem completion (both integral pasts of the
system) was to undertake the latter as an
AID project. This supplement ($5,000,000)
to the original loan is for the purpose of con-
structing the transmission line.
Now, Mr. Chairman, I am sure you agree
this is the precise opposite of the kind of aid
we should be giving. AID financed part of a
project that couldn't show results unless the
other part was financed. Instead of AID
financing being a means 1 bringing in local
financing or getting the international devel-
opment banks on to something they might
not have picked up, AID was left holding the
bag. AID had to put good money after bad.
One AID loan triggered another,
Mr. Chairman, I strongly believe that fu-
ture AID loans should be carefully designed
for the purpose of triggering other sources of
financing and effort. The role of our aid
should be to bring other people and institu-
tions to bear on an activity which would have
otherwise gone unheeded. Our bilateral
economic assistance should principally be
"front end money" with someone else picking
TIP on our initiative and making it their own.
Successful development is self generated not
foreign financed. Our aid can stimulate and
assist. But it should not substitute, for the
effort others might make.
So we need a clear phase-out principle to
guide our aid program. Legislation' by the
Congress should, in my opinion, insist that
the purpose of aid be to trigger not to finance.
Part of tins would be to see that efforts
are made by the aid agency (in both its
public programs and through its volunteer
service and private agency programs to get
a mixing of AID funds with financing by
other groups. AID shouldn't be going in and
paying for things when others more directly
concerned are not willing to pitch in. Even
U.S. private groups who work in developing
countries shculd seek to elicit collaborative
financing and effort rather than to move
forward on their own.
The whole idea of development is to ener-
gize and activate people in ways which will
enhance the quality of their lives. ,Paying,
providing and pushing is not the way people
and institutions from the outside can help.
Only by getting people to act on their own
behalf can our aid do any good. Otherwise
we just leave is project in place but the people
remain just as unable to change their own
lives as before.
The establishment in legislation of phase
out as the guiding principle of our bilateral
economic assistance ifi the central .recom-
mendation I would make to -this Committee,
I would further recommend that language
also be put into the legislation requiring AID
seek to nag its own investment with funds
from local or other foreign sources to the
maximum extent possible.
S. 'TYPES OF ASSISTANCE
My philosophy of how AID should operate
is probably :nowhere better born out in
practice than in the emergency relief pro-
grams run by AID. These efforts make a major
impact abroad not only in the individual
coutries affected by natioeal disaster -but in
the world at large, We are helping people in
tangible ways when they are at their moment
of most acute, need. We move in efficiently
with significant resources and skills, The
United States is known as being a generous
and effective contributor when disaster
Strikes. Our emergency relief programs carry
out the American people's desire to be of
help.
At the same, time, these programs are not
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permanent give away programs which com-
mit us as a government to financing an end-
less string of apparently worthy projects.
When relief gives way to reconstruction,
other sources of funds frequently are and
should increasingly be drawn in. Relief aid
can be the perfect trigger to a larger national
effort toward development more broadly sup-
ported by diverse international agencies and
different countries. I am hopeful that this
will be the case in Nicaragua, for example.
So I very Much feel that emergency relief
is one area where-our bilateral economic as-
sistance should continue to be strongly
supported.
' Another type of assistance which does not
provide a bottomless pit for our money to
go down is technical assistance. Technical as-
sistance is a way we can share the great
reservoir of knowledge built up over the
years in this country in government, in the
private sector and in our universities with-
out becoming a worldwide dole. Through
technical assistance, problem areas can be
pinpointed and new approaches can be sug-
gested. The multiplier effects and trigger po-
tential of technical assistance is very high.
Through technical assistance, along with
some seed money for pilot projects, we can
lead others to the trough without being the
major source of funds ourselves.
Technical assistance should play a deter-
mining role in where capital assistance goes
rather than technical assistance comple-
menting a capital project. Instead of the AID
thrust mostly being in the funding rather
than in the ideas and skills, technical assist-
ance should increasingly point the way for
the financing. In this way it can be, like
emergency relief, a means of implementing
the phase out and triggering philsophy I
have advocated.
I believe that technical assistance must
relate to needs of the developing country and
respond to requests by them rather than re-
flect the priorities of our aid agency. Again
it is only if there is some initiative within
the host country to seek change in a par-
ticular area that change will actually occur.
It is only if there is some leadership there
in the country to use the technical assist-
ance we offer and continue on after our as-
sistance has ended that anything will really
come of our efforts.
Unless technical assistance is responsive
to in-county requests it is all too easy that
it become paternalistic and bureaucratic the
way our capital assistance became. Also, if
the host government were required to pay
some portion of the cost of technical assist-
ance this would assure that the request was
real and the need valid rather than some-
thing trumped up to cover a requirement
for in-country requests. All of this speaks
to the need for a collaborative and coopera-
tive style of assistance rather than the high-
handed, we-know-what's-best-for-you style
we have adopted in the past.
Finally we can't just stop providing capital
assistance altogether. We need to continue
to have a capital assistance program to pro-
vide the trigger for other spending sources
and to try out new approaches resulting from
our technical assistance efforts.
Again I think we should be clear about
what the restrictions should be on this kind
of money. I don't think there should be any
lump-sum transfers to other governments,
what are called program loans, to help them
achieve their broad growth and import goals.
We need to require that AID be more spe-
cific requiring the agency to link its loans
to activities that generate the most jobs and
help the most people. Our aid needs to be
increasingly people oriented trying to reach
people in poverty, hunger and disease. The
American_ people are frustrated at being
privileged in a world, where the majority of
mankind is poor and yet being unable to
find a way to reach out to poor people abroad
without interfering in the internal affairs
of other countries or lining the pockets of
the rich.
One way to reach poor people abroad is to
focus more of our aid on health, nutrition,
education, population, small farm agriculture
and the like. This will bring more emphasis
to the real problems affecting poor people
abroad. With mixing requirements and a
phase-out principle in our aid program, it
can serve as a means of bringing more local
local and world resources to bear on the poor
in developing countries.
In this regard, I find myself very much in
agreement with the priorities established in
the House Foreign Affairs Committee bill
which, among other things, seeks to focus
more priority on the areas I have mentioned.
I strongly support the general philosophy
and overall direction of the House bill. This
seems to me to be a very positive initiative
from the Congress which is the kind that is
increasingly needed by the legislative branch
in foreign affairs.
C. BUDGET CONTROL
But whereas I am in basic agreement on
the priority activities emphasized in the
House bill I do not think that the five ac-
tivities or programs in the House bill (agri-
culture, rural development, and nutrition;
population planning and health; education,
public administration, and human resource
development; transportation, power, indus-
try, and urban development; select countries
and problems) sh6uld be the categories for
funding. The liberal transfer authority of
the House bill as between these different
categories is desirable only if the Congress
has tighter control in the amount of money
available for the three types of assistance
I mentioned before, namely
1. Emergency Relief Assistance.
2. Technical Assistance.
3. Development Assistance.
a. Loans.
b. Grants.
Only if the Congress has good control over
these categories can we assure that the
Congress does not continue to authorize a
sweeping give-away program through grants
rather than put our principal effort on tech-
nical assistance and seed capital loans.
Furthermore, while I am in agreement that
the first two categories in the House bill
namely, (103) agriculture, rural development
and nutrition, and (104) population planning
and health, as well as education (105), I
am very much less comfortable with the
broad categories of (105) public administra-
tion and human resource development and
(106) transportation and power, industry and
urban development and the program loan
authority under section (107). These latter
categories are either too broad, such as
human resource development, or represent
the kind of sectors that the international
development agencies like the World Bank
are involved in and that AID should get out
of, especially transport, power, industry, and
public administration. These areas have to
do with the economic struoture or the gov-
ernment of the country and not poor people
per se. As I indicated at the outset, if we
don't narrow down the aid program to de-
finable objectives there is no end of things
we can do to promote overall economic
growth or political development. If we focus
hard on health, education, nutrition, small
farm agriculture and population aimed at
bettering the lives of low income earners we
will have given some more people-content to
our foreign assistance and reduced our goals
to specific programs rather than broad ob-
jectives for countries as a whole. This way
;the Congress can look at the health pro-
grams or the nutrition programs that we
finance to see how concrete the goals are,
whether there is matching of funds, whether
there is a phase out date, whether the goals
are being achieved and so on. Our assistance
will become more concrete, more visible and
hopefully more effective and justifiable.
One of the basic problems with our aid
program has been that it has been linked to
goals which are too broad and too grandiose.
Development assistance by the U.S. up until
now has been linked to the overall goals of
nations as a whole?to accelerate economic
growth, promote democracy, achieve social
justice. Helping nations achieve these goals
has been part of our foreign policy of seeking
peace and stability in the world.
Once the foreign assistance program has
been linked to these grand goals of foreign
policy there is no end to the number of
projects that can be judged as serving those
ends. In my view, Mr. Chairman, this is where
our aid program has gone off the track. The
rationale for U.S. foreign assistance has been
to serve the broad goals of U.S. foreign policy
which is not a rigorous or specific enough
criteria to ever say no?this project or this
program doesn't meet the rules the Congress
has established.
Mr. Chairman, I respectfully submit to you
today for the consideration of the Committee
a bill to amend the Foreign Assistance Act
of 1961 to establish in clear language.
the phase out principle.
the host country financing requirement.
the end of "follow on" loans.
definition of more specific goals and pro-
grams.
I am hopeful that the language I put for-
ward for your consideration meets the need
for a mere sensible aid policy that reflects
more clearly public sentiment concerning the
use of taxpayer funds and helps give the
program more specific policy guidance from
the Congress to the Executive.
By Mr. BELLMON:
S. 2084. A bill to amend the Truth in
Lending ?Act to prohibit discrimination
on account of sex or marital status. Re-
ferred to the Committee on Banking,
Housing and Urban Affairs.
Mr. BELLMON. Mr. President, T am
today introducing a bill to amend the
Truth in Lending Act to prohibit dis-
crimination against ? individuals seeking
credit on account of sex or marital status.
The time fo rthis statutory change has
long since passed. If we act today on this
bill, we will still be acting too late, for
right now in various segments of the
economy, women, both married and sin-
gle, are being discriminated against when
they seek credit, either in the form of
retail credit, the issuance of credit cards,
or bank loans. My bill would insure that.
women receive equal treatment and are
held to equal standards when they seek
credit.
In an economy which is increasingly
dependent on credit, it is patently unfair
and unjust to deny any segment of the
population equal treatment under the
law. The necessity of this legislation has
been clearly documented in the findings
of the National Commission on Consumer
Finance and is increasingly a matter of
public concern. This amendment would
extend the rights and privileges now en-
joyed by the male segment of our pop-
ulation to the female segment, by an
extremely simple mechanism which pro-
vides for both criminal and civil liability
in a statutory scheme already in exis-
tence. The credit-Worthy woman should
not be barred from economic transac-
tions merely because of her sex or marital
statue. This amendment to the Truth in
Lending Act would insure the rights of
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CONGRESSIO NA L RECORD ? SENATE Jane 27, 1973
women in seeking credit by providinn a
vehicle which clearly defines the rights
of women and provides a mechanism for
judicial enforcement of those rights.
I urge_ the Senate to extend to women
the rights presently accorded men in cur
society by -adopting this bill.
Mr. President, I ask unanimous
on-
sent that the complete text of this bill
be printed in full in the RECORD at the
conclusion of my remarks.
There being no objection, the bill was
ordered to be printed in the RESoiln, as
follows:
S. 2084
Be it enacted by the Senate and, House of
Representatives of the United States of
America in Congress assembled, That--
Sec. 2. Chapter 2 of the Truth in Lending
Act (15 VS.C. 1631 et seq.) is amended by
adding at the end thereof the following new
section:
"? 135. Prohibition of Discrimination Against
Individuals Seeking Credit on Ac-
count of Sex or Marital Status.
"(a) It shall be unlawful for any eredi;or
or card issuer to discriminate on account of
sex or marital status against any Individual
with respect to the approval or denial of
credit or terms of credit in connection With
any consumer credit sale whether or not nn-
der an open end credit plan, any consumer
loan, or any other extension of consumer
credit, or with respect to the issaance, re-
newal, denial, or 'terms of any credit card.
"(b) (1) Any creditor or card issuer who
discriminates against any individual In a
maruier prohibited by subsection (a) is liable
to such individual in an amount equal to the
sum of?
"(A) in the case of an individual action,
not less ratan $100 nor more than $5,000, or
"(3) in the case of a class action, not more
than $100,000, and
"(C) in the case of any successful action
to enforce the foregoing liability, the costs
of the action together with a reasonable at-
torney's fee as determined by the court.
"(2) Any action under this section may be
brought lam isny eseurt of competent jurisdic-
tion during, the one-year period commerteing
on the date of occurrence of the violation.'.
Sec. 3. The amendment made by this sec-
tion shall take effect On the sixtieth day' a ter
its enactment.
By Mr. CHILES:
S. 2088. A bill to require that all politi-
cal contributions of money in excess of
$50 to or for the benefit of candidates
for nomination for election, or for elec-
tion, to Federal office be made by bank
check drawn on the account of the per-
son making the contribution, or be ac-
companied by the name, address, and so-
cial security number of the contributor.
Referred to the Committee on Rules and
Administration.
Mr. min FS Mr. President, elections
are the key device in democratic gov-
ernments for regulating official decision-
making. When working properly, they
help to assure that officeholders remain
responsive to the greatest possible num-
ber of citizens. Though no one can Pro-
vide a simple answer to the question,
"Does money win elections?" it is un-
deniable that money does play a major
role in winning. It does not guarantee
victory, but in some cases the amount
collected and spent can be deesive.
Money cannot totally obliterate the in-
fluence of issues and candidates' party
orientation on voting decisions, but it can
and often does make a difference.
In a democracy the voters choose the
major policy oificials in free and rela-
tively freqt ent elections. The crucial
factor deteimining whether or not we
consider a gavetnment democratic is not
how much p ower the public officials have.
but rather how 3ublic officials secure and
retain their offic es.
Events sunny:incline the last general
election hate teen and will, no doubt,
continue to be etamined and investigated
in an effort to determine the source of
enormous amounts of campaign moneys.
Coupled with the investigation will be
repeated cries for reform, for changes in
the law coneerning campaign financing.
And surely some changes are in order.
I think Amen i :isms are aware that cam-
paign costs are mounting. And though
there is a scant amount of reliable data
on the cost of l'UnninIS for office in this
country, I believe we were all shocked at
the findings made during the hearings
about the teeme?ndous amounts of cash
the Commitee -.4) Re-elect the President
had. on hand, Accounts of suitcases
stuffed and afc s spilling over with dol-
lars surprised many of us and alerted us
all that something had to be done to get
some kind of centrol over the complex
matter of financing campaigns.
Some Americans view public policy-
making as a sordid process where the
wealthy control elected officials. And
while there is serne corruption, I believe
its reputaticn for moving the wheels of
government is lar greater than its per-
formance. But money can twist policy in
subtle ways--ancl any effort we can make
to erect a barrier between the direct
translation of money into policy decisions
must be made. The bill I am introducing
today is such an effort.
My bill aims at making contributions
traceable. It would require that any con-
tribution of $50 or more be made by
check, drawa on the account of the in-
dividual mating the contribution, or ac-
companied by the name, address, social
security nurnbe7 and occupation of the
contributor. The language of this pro-
posal in no Way places a new limitation
on the aggregate amount of money al-
lowed as a contribution, but simply would
make the mono traceable.
.,In a goveinment whose level of citizen
trust is at an all-time low, there is an
obvious need to reestablish governmental
accountability /.0 the people. A recent
Harris poll disclosed that 81 percent of
the public is convinced that corruption
In Washington :s "serious" and the num-
ber with high respect for the Federal
Government comes to no more than 27
percent. Pee pie are more suspicious than
ever before ef their government and their
cynicism is min nurtured by the lack of
accurate and dependable information
concerning campaign contributions?
There hat been much comment about
the dramatic rise in the high cost of
politics in recent years. It has been esti-
mated that $400 million was spent in
1972 for all elec live and party politics in
this country at all political levels, in
campaigns for nominations and for elec-
tion. My bill, making contributions di-
rectly traceable if they are in amounts
over $50 recognizes the high cost of cam-
paigns, but recognizes also the need for
knowing who the big contributors are
and how much they gave?and to: whom.
I strongly urge my colleagues to sup-
port this measure.
Mr. President, I ask unanimous con-
sent to have the text of the bill printed
at this point in the Recoan.
There being no objection, the bill was
ordered to be printed in the RECORD, as
follows:
S. 2085
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress as.,embted, That (a)
chapter 29 of title 18. United States Code, is
amended by adding at the end thereof the
following new section:
"I 614. Form of contributions of money
"(a) No person shall make any contribution
of money to Dr for the benefit of any candi-
date or political committee in excess of $50,
in the aggregate during any calendar year,
u nless?
" (1) such contribution is made by means
of a check from a National or State bank,
drawn on the account of the person making
the contribution and identifying that person
by name and bank account number: or
"(2) the person making the contribution
furnishes in writing to the recipient thereof
his full name and address, and, in the case
of an individual, his social security number.
"(b) (1) Violation of the provisions of this
section is puseishable by a fine of not to ex-
(said $1,000, imprisonment for not to exceed
1 year, or both.
"(2) Willful and knowing violation of the
provisions of this section is punishable by a
fine of not to exceed $3,000, imprisonment for
not to exceed five (5) yew s, or both."
(b) The table of sections for such chapter
is amended by adding at the end thereof the
following new item:
"614. Form of contributions of money,"
(e) Section 591 of title 18, United States
Code, is ame eded by striking out "and 611"
and inserting "611, and 614".
By Mr. HARTKE:
S. 2087. A bill to amend title 38 of the
United States Code relating to basic pro-
visions of the loan guaranty program for
veterans. Referred to the Committee on
Veterans' Affairs.
EAV GOES TO COLLEGE
Mr. HARTKE. Mr. President, the
unique readjustment problems confront-
ing veterans of the Vietnam era have
been well documented. The amelioration
of these difficulties seems to beharapered,
however, by the distrust with which these
young Americans often view the so-called
establishment.
As chairman of the Committee on Vet-
erans' Affairs, it has become apparent to
me that organizations wishing to gen-
uinely assist the current generation of
veterans must assume an active stance.
We must dispel the young veterans'
cynicism and reach out in a sensitive,
responsive, and tangible fashion.
I am particularly encouraged by the
efforts of the Department of Indiana,
Division of Disabled American Veterans,
to encourage Vietnam veterans to help
themselves. Last fall, the Indiana DAV
chartered Indiana University campus
chapter 35, which is actively participat-
ing in a broad range of campus affairs.
In addition, meeting in statewide con-
vention Saturday, June 23, 1973, the In-
diana DAV elected a Vietnam-era veteran
and a member of chapter 35 to the post-
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