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December 16, 2016
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June 28, 2005
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October 1, 1974
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October 1, 1974 the House to the Senate amendment No. 5 to H.R. 4861, 6,nd that the Senate re- cede from aniendments numbered 3 and 4 to the 6fOresaid bill. The Motion Was.' agreed to. Mr. BIBLE. Mr. President, I move that the action which has just been taken be reconsidered. ?Mr. MANSFIELD. I move to lay that niotion on the table. The motion to lay on the table was agreed to. Mr. HUMPHREY. Mr. President, I yield to the Senator from Ohio. '531-11 Approved For Release 2005/07/13 ? CIA-RDPL9-0,957A000100030042-1 CONGRESSIONAL RITCORD ? SE NAI S 17949 SENATE RESOLUTION 416?SUBMIS- SION OF A RESOLUTION REGARD- ING 'nig 1974 MEETING OF THE BOARDS OF GOVERNORS OF THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK GROUP Mr. TAFT. Mr. President, I call up a resolution at the desk expressing the sense of the Senate regarding the 19'14 meeting of the Boards of Governors of the International Monetary Fund and the World Bank Group, and ask for its Immediate consideration. The ?RESIDING OFFICER. The res- olution will be stated by title,. The legislative clerk read as follows: A resolution (S. Ites. 416) expressing the sense of the Senate regarding the 1974 an- nual meeting of the Boards of Governors of the International Monetary Fund and World Bank Group. Mr. TAFT. Mr. President, I yield to the distinguished majority leader. Mr. MANSFIELD. Mr. President, I object to its consideration today. The PRESIDING OrriCER. Did the Senator from Ohio request immediate consideration? ' Mr. TAFT. Yes, I asked for immediate consideration. Objection has been made by the majority leader. The PRESIDING OFFICER. Objection is heard, and the resolution will go over under the rule. The resolution, with its preamble, is as follows: S. RES. 416 Expressing the sense of the Senate regarding the 1974 Annual Meeting of the Boards of GOVSTTIOPS of the International Monetary Fund and World Bank Group ' Whereas world economic stability is pres- ently threatened by the drastically increased transfer of Wealth to oil producing nations and by other international economic devel- opments; ? Wheress these developments txuald have devastating effects on some of the world's less developed nations; Whereas disruptive flows of monetary re- serves threaten to imperil world financial institutions and to overwhelm International capital markets; Whereas the present governmental and private financial institutions may not be able to recycle funds to oil importing nations in a manner which minimizes the economic im- pact of increased oil import prices; Whereas government policies designed to mitigate the effects of international eco- nomic problems in a particular nation often worsen the economic sitration in other na- tions, ultimately to the detriment of the na- tionS involved; and Whereas possible methods of alleviating these problems *ill be e major ttmic of the The PRESIDING OFFICER. Without 1974 Annual Meetings of de Boards of Gov- n, it is so ordered. ernors of the Internale. Al Monetary I Now th.ero and the World Bank GIV.,1p: be it resolved, That it ; ; the sense ai the Senate that: (1) The present ecotr,mie situa de- rounds greatly increase(, internatio eco- nomic cooperation &GUY 4 nations; (2) The Internationa, Monetary id be supported in its efforts 1-, discourage eral economic actions vhich cmil ? ;effect other nations' economic ituations a ersely, including its guidelines ,r goverTUri man- agement of floating exr:,ange rat rd its promotion of the Vain ary Decl ion on Trade Measures; (3) The Annual Meet tgs shout he ur- gent and detailed consnieration t e ade- quacy of present anc: pr posed int Monal facilities for providing necessary ncing to oil importing nations in view o.0th the' short-term and long-ti' -m econ c pros- pects of these nations.; (4) The Annual Meet ,,gs shoul ecognize fully the emergency ne of the ? cat oil importing nations; (5) Other types of in ternation coopera- tion to help alleviate La prese. ' .nomic situation should emit: :elle to pursued vigorously. QUORUM CALL Mr. MANSFIELD Mr. P suggest the absence a qu The PRESIDING c? will call the rill. The second assist f legi proceeded to call thi roll. Mr. MANSFIELD, Pr unanimous consenthat t the quorum call be tescin The PRESIDING i1.tori objection, it is so cy tered... Mr. HUMPHREY Mr. President, I yield to the distingt .hed Senator from West Virginia, the r jority whip. dent, I m. e clerk ve clerk dent, I ask order for d. . Without ORDER FOR Aar: )URNMENT TO 10:30 A.M. '1', MORROW Mr. ROBERT C. E`,' RD. Mr. President. I ask unanimous co a sent that when the Senate completes II business today it stand in adiournm-at until the hour of 10:30 a.m. tomoi row. The PRESIDING cwriCER. Without objection, it is so or,Jered. ORDER FOR arct), INITION OP SEN- ATORS CURT. McCLURE, AND EASTLAND, DESTI1NATING PERIOD FOR THE TRANF ACTION OF ROU- TINE MORNINc- BUSINESS AND FOR RESUMPTI:- N OF THE INFIN- ISHED BUSINES:1 TOMORROW FOREIGN ASSISTANCE ACT OF 1974 The Senate continued with the con- sideration of the bill (S. 3394) to amend the Foreign Assistance Act of 1961, and for other purposes. Mr. HUMPHREY. Mr. President, in order to expedite our action on this matter today, I first ask unanimous con- sent that the committee amendment be agreed to and that the bill as thus amended be considered as original text for the purpose of further amendment. The PRESIDING OV.ViCER. Without objection, it is so ordered. The committee amendment, which was to strike out all after the enacting - clause and insert new language, is as follows: That this Act may be cited as the "Foreign Assistance Act of 1974". FOOD AND NUTRITION SEC. 2. Section 103 of the Foreign Assist- ance Act of 1961 is amended? (1) by inserting the subsection designa- tion "(a)" immediately before "In"; (2) by striking out "6291,000,000 for each of the fiscal years 1974 and 1975" and insert- ing in lieu thereof "$291,000,000 for the fiscal year 1974, and $491,000,000 for the fiscal year 1975"; and (3) by adding at the end thereof the fol- lowing: "(b) The Congress finds that, due to rising world food, fertilizer, and petroleum costs, human suffering and deprivation are grow- ing in the poorest and most slowly developing countries. The greatest potential for signifi- cantly expanding world food production at relatively low cost lies in increasing the productivity of small farmers who constitute a majority of the nearly one billion people living in those countries. Increasing the em- phasis on rural development and expanded food production in the poorest nations of the developing world is a matter of social Justice as well as an important factor in slowing the rate of inflation in the industrialized coun- tries. In the allocation of funds under this section, special attention should be given to increasing agricultural production in the countries with per capita incomes under $300 a year and which are the most severely af- fected by sharp increases in. worldwide com- modity prices." POPULATION PLANNING SEC. 3. The Foreign Assistance Act of 1961 Is amended as follows: (1) In section 104-, strike out "$145,000,000 for each of the fiscal years 1974 and 1975" and insert in. lieu thereof "$145,000,000 for the fiscal year 1974, and $165,000,000 for the fiscal year 1975". (2) In section 292, strike out "$130,000,- 000" and insert in lieu thereof "$150,000,000". Mr. ROBERT C. Is RD. Mr. President, I ask unanimous Di )sent that after the two leaders or then iesignees have been recognized under ti standing order to- morrow, the follow lig Senators be rec- ognized, each for n to exceed 15 min- utes and in the ordi stated: Mr. CURTIS, Mr. MCCLURE, and TAT'. EASTLAND; that there then be a pi 3d for the t:^ansac- tion of routine mori ing business of not to exceed 15 minutf , with statements therein limited to E, ainutes each, at the conclusion of whic - the Senate resume the consideration of the unfinished business. EDUCATION AND HUMAN RESOURCES DEVELOPMENT SEC. 4. Section 105 of the Foreign Assist- ance Act of 1961 is amended by striking out "$90,000,000 for each of the fiscal years 1971 and 1975" and inserting in lieu thereof $90,000,000,000 for the fiscal year 1974, and $92,000,000 for the fiscal year 1975". HOUSING GUARANTIES SEC. 5. The Foreign Assistance Act of 1961 Is amended as follows: (1) In section 221, strike out "6305,000,- 000" and insert in lieu thereof "$405,000,000". (2) In. section 223(1), strike out "June 30, 1975" and insert in lieu thereof "June 30, 1976". Approved For Release 2005/07/13,: CIA-RDP79-00957A000100030042-1 S 17950 Approved For Release (A./NM SIONAL RECORD- SENATE October 1, "(1) with respect to an excess defense article, the actual value of the article bitnot less than 33% per ceintum of the araoun the United States paid at the Deno the de tense article was acquired by the United States;". lAceet cwtioainisieltlidantidle Iploreofoth,emAucittaryentitleds Act, and for other purposes", approved Janu- ary 12. 1971 (89 Stat. 2053), as amended, are re pealed. 1/07/13 : CIA-RDP79-00957A000100030042-1 INTERNATIONAL ORGANIEATIONs AND pROORANT1 Sec. if, Section 302(a) of the Foreign As- sistance Act of 1961 is amended by striking out "for the fiscal year 1175. 4159,000,000" and inserting In lieu thereof for the fiscal year 1973, e186,900,000". SEILTrARY ASSISTANCE AUTHORIZATIONS SEC. 7. Section 1504(a) 01 the Foreign A-- sistance Act of 1961 is amended by shekel.: out "$512,500,000 for the fiscal year 1974" and inserting in lieu thereof "Ile30,000.0ne for the fiscal year 1975." SPECIAL AUTITORTTY Sec, 8. Section 508 of the Forele Ass:: anCe Act of 1961 is repealed. 1/11XrAiry ASsISTANcE AUTHOREEATIoSs ?Os south vier:eels Sec. 9, Section 613 of the Foreign Aoe ance Act of 1961 is amended as tollews. (1) Strike out "Thailand and Lao." in II caption and insert In lieu thereof ' 1 helix io Laos, and South Vietnam". (2) At the end thereof add the Miley:if:, new subsection: "(c) After June 30, 1975, no military IL.- &stance shall be furnished by the United States to South Vietnam directly or throueh any other foerign country unites that as- sistance is authorized under this Act or t Foreign Military Sales Act." EXCESS DEIT.Nbs ArricLE.i Sec. 10. (a) Chapter 2 of part 11 of tile Foreign Assistance Act of 1961 is amended by adding at the end thereof the following new section: 'Sac. 514. LIMITATION ON THE GRANT ok' Excess Deserese Airmiths.- (a) The value of any excess defense article furnished to a for- eign country or internatimial orgaidzatkel by any agency of the United States Govern- ment shall be considered to be an expendi- ture made from funds appropriated under section 504 of this Act. UnleSS such agency certifies to the Comptroller General of the United States that the excess defense article ft is ordering Is not to be transferred by any means to a foreign country or international organization, when an order Is placed for it defense article whose stock statue is times, at the time ordered, a stun equal to the value thereof (less amounts to be transferred under section 632(d) of teas Act) than (1) be reserved and transferred to a suspense account, (2) remain in the suspense ac- count until the excess defense article es either delivered to a foreign country or in organization or the order there- for is canceled, and (3) be transferred from the suspense account to (A) the general fund of the Treasury upon delivery of such article, or (S) the appropriation made under section 504 of thle,Act for the current thecal year upon cancellation of the order. Such sum shall be transferred to the appropria- tion made wider section 504 of this Act for the current fiscal year, upon delivery of such article, if at the time of delivery the stock status of the article Is determined in accord- ance with section 644(g) or (En) of this Act to be nonexcess. "(b) The President shall promptly and fully inform the Speaker of the House ol Representatives and the Committee on For- eign Relations and the Committee on Appro- priations of the Senate of each decision to furnish on a grant basis to any country ex- cess defense articles which are major weap- ons eystems to the extent such major weap- on system was not included in the presen- tation material previously submitted to the Congress. Additionally, the President than also submit a quarterly report to the Con- gress listing by country the total value of all deliveries of excess defense articles, deo clredug both the agregate original acquisi- tion cost and the aggregate value at the ' time of delivery." (b) Section 1344(in)(1) of the Foreign As- sistance Act of 1961 is amended to read as 1 fellows; briber amended by adding at the end there- t of the following new section: t "Sec. 517. Teraanearrors or AuTIloRrry.- - I a) Il) The President shall gradually reduce assistance (other than military trebling) provided under this chapter so that, not later than September 30, 1977, no assistance (other than military training) shall be provided under this chapter. "(2) Paragraph (1) of this subsection shall not apply to funds obligated prior to Octo- ber 1, 1977. "(b) For each of the fiscal years 1975, 1976. and 1977, the President is authorized to _finance-procurements of defense articles and defense services (other than military train- ing) by any foreign country receiving defense articles or defense services during fiscal year 1974 under this chapter on terms providing for payment to the United States Govern- Merit In United States dollars (1) of the ealue of such articles and services which tolue shall not exceed during each such fiscal year the value of such articles and services t other than military training) furnished that country in fiscal year 1974 under this chap- ter, (2) at a rate of interest of not less than four per centum a year, and (3) within ten years after delivery of the defense articles or tendering of the defense services. e(c) (1) By not later than September 30, 1977, all the functions of a military assist- slice advisory group, a military mission, or other organization of the United States Gov- ernment in a foreign country performing ac- tivities similar to any such group or mission, shall be transferred to the Chief of the teethed States Diplomatic Mission to that country. Upon the transfer of such func- tions, that group, mission, or organization, as the case may be, shall cease to exist. "(2) On and after October 1, 1977, the total number of military attaches assigned or de- tailed to the United States Diplomatic Mis- (eon of a foreign country shall not exceed by more than twenty-flve per centum the total member of military attaches authorized to be assigned or detailed to that mission on June 30, 1974. "(3) On and after October 1, 1977, no mili- tary assistance advisory group, military mis- sion, or other organization of the United States Governs:newt in a foreign country per- forming activities similar to any such group or mission, shall be established or continued unless such group, mission, or organization is authorized by law specifically for that country." Ib) Effective October 1, 1977- (1) the heading of chapter 1 of part II of the Foreign Assistance Act of 1961 is amended to read as follows: "Coesanni 1-Pa0VEDING MELITART TRAINING": (2) sections 501, 502A, 514, and 516, subsec- tion (g) of section 644, of the Foreign As- sletance Act of 1861 are repealed; (3) section 502 of the Foreign Assistance Aet of 1961 is amended by striking out the caption "Utilization of Defense Articles and Services" and inserting in lieu thereof "Pro- viding Military Training", by striking out of the text "Defense articles and defense serv- ices" and inserting in lieu thereof !Military training", and by striking out the last sen- teeeee 4) the heading of chapter 2 of part II of the Foreign Assistance Act of 1961 is amended to read as follows: "CELAPTEa 2-MILITARY TRAINTING?', sections 603-505 of the Foreign Assist- roues Act of 1961 are stricken out and the fol- lowing Inserted in lieu thereof: 'Sac. 503. Giansame Atrrnoarre.-The Pres- ident is authorized to furnish, on such terms anti conditions consistent with this Act as the President may determine, military train- ing to any foreign country or international organization. Funds for such training shall be appropriated for each fiscal year pursuant o authorization for that fiscal year. After ,T5 IiPILING OE 1ALVENIRC ARTICLES FOR Foak/Gt. rooNTRIBES SEC. II Chapter 2 of part II of the Foreign Aesieteeice Act of lien, an amended by sec- tion 10(a) of this Act, le further amended by adding at the evil thereof the following new section: "Sec 515. Sro? Kee lou OE DEFENSE ARTICLES row' Foarion Cotornues.--(a) Notwithstand- ing any other provision of law, no funds, other then furien made available under this chapter or section we (a) of Public law 89- 367 180 Stat. 37), or any subsequent cor- reeptinding legislation, nifty be obligated for the purpose of stockpiling any defense article or war reserve metenal. Including the ac- q Mel 'eon, storage. or . maintenance of any e'er reierve equipmene secondary items, or munitlens. if such article or material is set aside, reserved, or In any way earmarked or ItO eadeti for future use by any foreign coen- try under this Act or such section. ? ( b I The oust of any such article or mate- rut; set aside, reserved, or in any way ear- elm-laid or intended by the Department of Defense fi r future Use by, for, or on behalf of the country reterrec to in 'section 401(a) (1) or Public Law 89-3137 180 Stat. 37) shall Sc' charged waited the lineation specified in such F.E( tion or any ealbsequent correspond- ing les:illation, for the fiscal year In which such Et.illc/c or material is set aside, reserved, or otherwise earmarked or intended; and the "Ott rf ny such LtrElc!c or material set aside, -eserved or In any way earmarked or intend- ed for nittire use by, for, or on behalf of any ot hfr toreign country shall be charged (gee nst funds authorized under this chapter for the ferret! year In which such article or material le set aside, reserved, or otherwise earnietked No such r-rtIcle or material may ensde avedlable to or for use by any for- eign country unless Itch article or material has been charged 'gallant the /thiltation ,.peeleed 1II such tectlon, or any subsequent corresponding legisIaTic n. or against funds stithorieed under this chapter, as appro- priate. "i ce This section shell not be conetrued as co.lterrIng any authority to stockpile de- fense articles or War materials under this Act or such section 4411(a), or subsequent /-3rreSpondIng legislation." 3.111.11AR y Amor:1ST/4NET ALVISORT GROG: ws AND NDISIONEI err. 12 Chapter 2 of part n of the Foreign Assistance Act of 1961, as amended by sec- tions Ilea) and 11 of this Act, Is further amended by adding at the end thereof the following new section: "Sac. 516. MILITARY ABBINTANCr. ADVISoitY GRoops A'1) Mrsaxonse-An amount equal to each sum expended under any provision of law, other than section 504 of this Act, with respect to any military assistance advisory group. military mission, or other organize- tem or the United etates performing ac- tivities similar to such group or mission, shell be deducted from the funds made avail- able wider eucla section 504, and (1) U ram- ble:Demerit of such amount is requested by the agency of the United States Govern- ment making the experditure, reimbursed to has agency, or (2) if no suer) reimbursement 13 requested, deposited in the Treasury as nisceilaneous receipt's: TERMENATTON OW ArTtiOarrY 3E.c. 13. (a) Chapter 1: of part II of the t'oreign Assistance Act of 1951, as amended y sections 10(a), 11, end 12 of this Act, Is b September 30, 1977, no such training shall be coeducted outside the United States except y specific authorization of law."; Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 O'ctober 1, 1974 CONGRESSIONAL RECORC6A?REI-Isi s 17951 (6) section 511 of the Foreign Assistance (C) Section. 251(c) is e mended to read as not to exceed $10,000,000 may be made avail- Act of 1961 is amended by striking out of the follows: able for the purpose of providing military as- section caption "Assistance" an 1 inserting in "(c) The authority of - ction 610 may be sistance (including credit sales and the face lieu thereof "Training", and by striking out used to transfer funds trade available for amount of guranties). of the text "military assistance" and "such thLs title only to funds ,sade available for Approved For Release 2005/07/13 - P 57A000100030042-1 POLICY WITH RESPECT TO INDOCHINA ' assistance" and inserting in lieu thereof title I of this chapter." SEC. 20. (a) The Congress finds that the "military training" and "such training", re- (D) Section 302 (b ) (2 ). is amen-dad by cease-fire provided for in the Paris Agreement spectively; rstrilsing out "or 614(a)". on Ending the War and Restoring Peace in (7) section 636(g) (1) of the Foreign As- (E) Section 610(b) is Amended by strik- Vietnam has not been observed by any of the sistance Act of 1961 is amended by striking ing out "sections 451, 509, and 614" and in Vietnamese parties to the conflict. Military , out "defense articles and defense services on sorting in lieu thereof "fs.ction 451". . operations of an offensive and defensize na- ture continue throughout South Vietnam. thereof "military training"; and - out "or 614(b)". In Cambodia, the civil war between insurgent (8) section 644(m) of the Foreign. Assist- (0) Section 652 is assended by striking forces and the Lon Nol government has in- ane() Act of 1961 is amended by striking out out "section 506(a) , 610; s), or 614" and In- subparagraph (1) and by striking out of serting in lieu thereof "EC' Aim tensified, resulting in widespread human suf- 610(a)". subparagraphs ' (2) and (3) "nonexcess" (11) Section 653(b) is it mended by strking fering and the virtual destruction of the wherever it appears. out "and may not be wit i red under the pro- Cambodian economy. visions of section 614(a) of this Act". (e) The Congress further finds that con- TERMINATION OF MILITARY ASSISTANCE TO tinuation of the military struggles in. South ' SOUTH KOREA ACCESS TO CERTAIN MIL) , SET BASES ABROAD Vietnam and Cambodia are not in the inter- SEC. 14. Chapter 2 of part n of the For- SEC. 17. (a) Chapter 3 of part In of the est of the parties directly engaged in the con- eign Assistance Act of 1961, as amended by Foreign Assistance Act of 1961 is amended by filets, the people of Indochina, or World peace. sections 10(a), 11, 12, and 13(a) of this Act, adding at the end theses c the following new In order to lessen the human suffering in In- is further amended by adding at the end section: dochina and to bring about a genuine peace . thereof the following new section: "Ssc. 659. ACCESS Tr. CERTAIN MILITARY there, the Congress urges and requests the i "Eine. 518. TERMINATION OF MILITARY ASSIST- BASES ABROAD.?None of 1.0e funds authorized President and the Secretary of State to un- ANCE To Sorrrx KOREA.?(a) The total of (1) to be appropriated for foreign assistance dertake immediately the following measures: , the amount of funds obligated under this (including foreign milites y sales. credit sales, (1) to initiate negotiations with sense- ' chapter to furnish assistance to South Korea, and guaranties) under any law may be used ' sentatives of the Soviet Union and the Peo- - ' and (2) the value of excess defense articles to provide any kind of Si f 'stance to any for- ple's Republic of China to arrange a mutually ' "(A) $91,500,000 during the fiscal year 1975; eign. country in which a military base is lo- agreed-upon and rapid de-escalation of mill- furnished to South Korea under this chapter, cated if? tary assistance on the part of the three prin- shall not exceed? "(1) such base was cc sstructed or is being cipal suppliers of arms and material to all "(B) $61,000,000 during the fiscal year 1976; maintained or operated sith funds furnished Vietnamese and Cambodian parties engaged and by the United States; an rc in conflict; "(C) $30,5000)0 during the fiscal year "(2) personnel of the United States carry (2) to urge by all available means that the 1977. . out military operations fr sm such base; Government of the Khmer Republic enter . '(b) The aggregate total of credits ex- unless and until the P-esident has deter- into negotiations with representatives of the ' tended, including participations in credits, mined that the governrssnt of such country Khmer Government of National Union for and the principal amount of loans guaran- has, consistent with see srity authorized ac- the purpose of arranging an immediate cease- teed, under the Foreign Military Sales Act cess, on a regular basis, to bona fide news fire and political settlement of the conflict; with respect to South Korea shall not ex- media correspondents (IS the United States and to use all available means to establish coed? to such military base" contact with the Khmer Government of Na- "(1) $42,450,000 during the fiscal year 1975; (b) Section 29 of the Foreign Assistance tional Union and to urge them to participate . "(2) $28,300,000 during the fiscal year 1976; Act of 1973 is repealed. in such negotiations. The United States and ' . ? s anosnraTtsm POTIrE TRAINING should urge all.Camboclian parties to use the ' "(3) $14,150,000 during the fiscal year 1977. SEC. 18. (a) Chapter s of part III of the good offices of the United Nations or a re- sistance(c) On and after October 1, 1977, no as- spected third country for the purpose of Foreign Assistance A et .. f 1961, as amended shall be furnished South Korea un- bringing an end to hostilities and reaching by section 17(a) of slits Act, is further der this chanter, and no credits, including participations in credits, shall be extended, amended by adding at 'the end thereof the a political settlement; (3) to utilize any public or private forum and no loans shall be guaranteed, under title in e followg new section: Foreign Military Sales Act with respect to , "SEC. 660. PROHIBITING POLICE TRAINING.? to negotiate directly with representatives of South Korea. The Preceding sentence shall la) None of the, funds made availeale to the _Democratic Republic of Vietnam, the not, apply with respeot to funds obligated carry out this Act, anS none of the local Provisional Revolutionary Government, and currencies generated a der this Act, shall the Republic of Vietnam to seek a new cease- prior to such date." be used to provide trail fog or advice, cr pro- fire in Vietnam and full compliance with the Sacurays supsonTnsc ASSISTANCE vide any financial sup esrt, for police, psis- provisions of the Paris Agreement on Ending SEC. 15. -Section 532 of the Foreign Assist- one, or other internal Es- urity forces for any the War and Restoring Peace in Vietnam, in- ance Act of 1961 is arnended by striking out foreign government or any program of in- eluding a full accounting for Americans miss- "for the fiscal year 1974 not to exceed $125,- ternal intelligence or usrveillance on behalf lug in Indochina; 000,000, of which not less than $50,000,000 of any foreign governme .it within the 'jnited (4) to reconvene the Paris Conference to shall be available solely for Israel" and in- States or abroad. seek full implementation of the provisions of sorting in lieu thereof "for the fiscal year "(b) Subsection (a) of this section shall the Agreement of January 27, 1973, on the 1975 not to exceed .$585,500,000". not apply? part of all Vietnamese parties to the conflict; TRANSFER BETWEEN ACCOLINTS "(1) With respect ts assistance rendered and SEC. 16. (a) Section 610 of the Foreign As- under section 515(c) of the Omnibus Crime (5) to maintain regular and full consulta- sistance Act of 1961 is amended as: follows: Control and Safe StreeI ., Act of 1968, or with tion with the appropriate committees of the ' (1) In subsection (a) , immediately after respect to any authority of the Drug Enforces CongreSs and report to the Congress and the "any other provision of this Act", insert (ex- ment Administration or the Federal Bureau Nation at regular intervals on the progress cept funds made available under chapter 2 of Investigation which related to crimes of toward obtaining a total cessation of hos- of part II of this Act)". the nature which are unlawful under the tilitie,s in Indochina and a mutual reduction (2) Add at the end thereof the following laws of the United Stets: : or of military assistance to that area. new subsection. "(2) to any contras, entered into prior PRINCIPLES GOVERNING ECONOMIC AID TO INDO- " (0) Any funds which the President has to the date of enactme es of this section with . CHINA notified Congress pursuant to section 653 any person, organize-Li sn, or agency of the SEC. 21. (a) Congress finds that, after ex- that he intends to provide in military assist- United States Govern.ssmt to provide per- pending over a billion dollars in funds for ance to any country may be transferred to, sonneI to conduct, or sssist in cond acting, economic purposes in Indochina last year, arid consolidated with, any other funds he any such program. and vast amounts in previous years, little in has notified Congress pursuant to such sec- Notwithstanding clouts (2), subsectisn. (a) lasting economic benefit remains. A large pro- tion that he intends to provide to that coun- shall apply to any renes sl or extension of any portion of the funds expended have been used try for development assistance purposes." contract referred to in such paragraph en- for consumable Items related to hew ar (b) (1) Section 614 of such Act is repealed. tered into on or after such date of enact- effort. Very little of our money has found its (2) Such Act is further amended as fol- ment." way into capital investments of a lasting lows: . ? (b) Section 112 of such Act of :1961 is productive benefit to the people. Congress (A) In section 109, strike out "sections 610 repealed, calls upon the President and Secretary of "(a) and 614(a)". and insert in lieu thereof LIMITATIONS UPON ASSITTANCE TO on FOR CHILE State to take immediately the following ac- "section 610(a)". SEc. 19. Notwithsta sling any other pro- tions designed to maximize the benefit of (B) In section 210(c) , strike out thEI corn- vision of law, the total amount of assistance United States economic assistance: ma and "nor may the authority of section that may be made avasable for Chile. under (1) to organize a consortium to include 614(a) be used to waive the requirements of this or any other law Suring fiscal year 1975 multilateral financial institutions to help this title". may not exceed $65,00S,000, of which amount plan for Indochina reconstruction and de- Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 S 17952 Approved For Releas.ep5/07/13 : CIA-RDP79-00957A000100030042-1 . ithssiONAL RECORD ?SENATE October 1, 19744 ielopment; to coordinate multilateral and bilateral contributions to the area's ecemouitc recovery; and to provide continuing advice to the recipient nation on the use of their own and outside resources; (2) to develop, in coordination with the re- cipient governments, other donors, and the multilateral financial institutions, a compre- hensive plan for Indochina reconstruction and economic development; (3) to develop country-by-country recon- struction and developments plans, includilie detailed plans for the development of ireii- vidual economic sectors, that can be used to identify and coordinate specific econosnie development projects and programs and U. direct United States resources illIO areas 01 maximum benefits; (4) to shift the eraphasm of United State. aid programs from consumption-oriented es- pendItures to economic development; (6) to Identify possible structural ecorioni p- reforms in areas such as taxation, exchanee rates, savings mechankros, internal pricine. Income distribution, land tenure, budgetary allocations and corruption, which should he Undertaken if Indochinese eseamorsic develop- ment is to progress; and (6) to include In Indochina economic pie 1.- ning and programming specific performame criteria and standards which will enable the Congress and the executive branch to judge the adequacy of the recipients' efforts and V. determine whether, and Woat amounts o, continued United States funding is justideo (b) This section Is not meant to imply continuation of a United States financial commitment beyond the authorization inti- VIded .for in this Act or amendments made by this Act. INDOCHINA POSTWAR arycnsraucrioN Sec. 21. Section 802 of the Foreign Assist- ance Act of 1961 Ls amended to read as 10 - lows: "Bac. 802. AIITHORIZAT/ON -There are au- thorized to be appropriated to the Preeidem to furialah assistance for the relief and eecoruftruction of South Vietnam, Cambodia. and Laos as authorized by this part. so addition to funds otherwise avelisible f such purposes, for the fiscal year 1974 no; to exceed $504,000,000, and for the fiscal year 1975 not to exceed *550,000,00U Of the amount appropriated for fiscal year 1975-- "(1) $420,000,000 shall be available on' for the relief and reconstruction of South Vietnam in accordance with section 806 of this Act; "(2) *70,000,000 shall be mailable only for the relief and reconstruction of Cambodia In accordance with section 807 of this Act; "(3) $45,000,000 shall be available only for the relief and reconstruction of Laos in ae- Cordanee with section 808 of this Act; "(4) 13,750,000 shall be available Daly for the regional development proarestao and "(5) $11,250,000 shall be available only for Support costs for the agency primaiily re- sponsible for carrying out this part. Such amounts are authorized to rernalo available until expended... ASSISTANCE TO &OCTET VIEINAMESI CHILDREN Sec. 23, Section 803 of the Foreign Assist- ance Act of 100 is amended as follows: (I) 112 subsection (a), strike out 'rights, particularly children fathered by United States citizens" and insert In lieu thereof "rights". (2) In subsection (b), between the second and third sentences. Insert the following: "Of the sums made available for South Vietnam under section 802(1) of this Act for fiscal year 1975, *10,000,000, or its equivalent in ideal currency, shall be available until ex- eended solely to carry out this section.", LIMITATIONS WITH RESPECT TO BOOTH inarwais S arnetded by adding at the end thereof the followir.g new section: "Sec. 806. LIMITATIONS WITH RESPECT TO ROUTH Vneraram.--4 a) Notwithstansting any other provision of law, no funds authorized to be appropriated by this or any other law may be obligated in any amount in excess of *1,280,000,000 during the fiscal year ending June 30. 1975, for the purpose of carrying out directly or indirectly any economic or military assistance, or any operation, project, or program of any kind, cr for providing any goods, supplies materials, equipment, serve Mee. personnel, or advisers in, to, for, or on behalf of South Vietnam. Of that amount, there shall be erstirible during such fiscal year? " ( I) $700,000,000 for inintary assistance: "12) *180,000.000 only to carry out the Agricultural Trade Development and Assist- ance Act of 1954, and "(3) $420,000,000 osly for economic Iftesist- some, of which there shall be available-- - ( A) $95,000,000 for humanitarian assist- ance, of which there shall be available? "Ii) $68,500,000 for tefttime relief; "(Ii) $8.200.000 for child care; s(iii) *10,300,000 for health care; and "(iv) $10,000,000 for the City-to-Farm program; "(B) $188.000.000 f ef agricultural assist- ore. of which there he available? "( $160,000,000 for fertilizer. POL, and pesticides; $20.000.000 for rural credit; "Ili') $10,000,000 for canal dredging; ( iv) $4,000.000 for low-lift pumps; and ) 44,000,000 for fish farm development; aCi *96,600,000 for industrial develop- ment amistance. of which there shall be mud able-- " (1) $85,000.000 for commodities: "(Ill $10,000.000 [Cr Industrial credit; and "(ail) $600,000 for development planning; and -if)) *41.400,000 for miscellaneous assist- sues, of which there snail be available? "Ii *30,000,000 for transportation; and "(Ill $11,400,000 for technical support. "(b) ( I) No funds made available under paragraph (2) or (3) of subsection (a) may be trensferred to, or csneclidated with, the fonds made available ender any other para- graph of such euheeetion, nor may any funds made available under 'subparagraph (A), 113), (C), or (D) of paragraph (3) of sularetion (ai of this section be trans- ferred to, or consolidated with, the funds made available under any other such sub- paragraph. "(21 Whenever the President determines it to he nreteseery in cerrying out this part, any funds made available under any clause of subparagraph (A), (3), (C), or (D) of rubeect1on (a) of this section may be trans- ferred to, and consolidated with, the funds made available under any other douse Of that same subparagraph. "(3) The President shall fully Inform the Speaker of the Rouse of Representatives and toe Committee on Foreign Relations of the Senate of each transfer he intends to make tinder paragraph (2) of this mfasection prior to making such transfer. , *-1 c) In computing the $1.280,000,000 limitation on obligailenal authority under subsection (a) of this sectaon. with respect to such fiscal year, there shall be included in the computation the value of any goods, supplies, materials, equipment, services, personnel. or advisers provided to, for, or on behalf of South Vietuoro In such fiscal year by gift, donation, loan, lease, or otherwise. For the purpose of this subsection, 'value' means the fair market value of any spode, supplies, materials, or equipment provided to, for. or on behalf of South Vietnam but ti no case lees than Ldits per centum of the amount the United Stales paid at the time REC. 24. Part V of the Foreign Aseistance such goods, supplies, materials, or equip naent were acquired by the United-States. "(d) No funds may be obligated for any of the purposes described in subsection (a) of this_ section in, to, for, or on behalf of South Vietnam in any fiscal year beginning after June 30, 1976, unless such funds have been specifically authorized by law enacted after the date of enactment of this section. In no case shall funds in any amount in excess of the amount specifically authorized by law for any fecal year be obligated for any such purpose during such fiscal year. "(e) After the date of enactment of this section, whenever any request is made to the Congress for the appropriation of funds for use in, to, for, or on behalf of South Vietnam for any fiscal year, the President shall furnish a Written report to the Congress explaining the purpose for which such funds are to be used In such fiscal year. "(f) The President shall submit to the Congress within thirty days after the end of each quarter of each fiscal year, beginning with the fiscal year which begins July 1. 1974, a written report showing the total amount of funds obligated in, to, for, or on behalf of South Vietnam during the preceding quarter by the United States Government, and shall include in such report a general breakdown of the total amount obligated, describing the different purposes for which such funds were obligated and the total amount obligated for such purpose. "(g) ( I ) Effective six months after the date of enactment of this pectlon, the total number of civilian officers and employees, including contract employees, of executive eflencies of the United States Government who are citizens of the United States and of members of the Armed Forces of the Jolted States present in South Vietnam shall not at' any one time exceed four thousand, rest more than two thousand live hundred of whom shall be members of such armed forces and direct hire and contract employees of the Department of Defense. Effective one year after the date of enactment of this section, such total number shall not exceed at any one time three thousand, not more than one thousand five hundred of whom shall be members of such armed forces and -direct hire and contract employees of the Depart- ment of Defense. "(2) Effective six month after the date Of enactment of this section, the United States shall not, at any one time, pay in whole or in part, directly or indirectly, the compensation or allowances of more than eight hundred individuals In South Vietnam who are citizens of countries other than South Vietnam or the United States. Ef- fective one year after the date of enactment of this section; the total number of toehold- mils whose eompensation or allowance is so paid shall not exceed at any one time five hundred. "(3) For purposes of this subsection 'ex- ecutive agency of the United States Gov- ernment' means any agency, department, board, wholly or partly owned corporation, instrumentality, commission, or establish- ment within the executive branch of the United States Government, "(17) This section shall not be construed as a commitment by the United States to South Vietnam for its defense." LIMITATIONS WITH RESPECT TO CAMBODIA Sec. 25. (a) Part V of the Foreign As- sistance Act of 1961, as amended by section 24 of this_ Act, is further amended by add- ing at the end thereof the following new section: "Sic. 807. LIMITATIONS WITH RESPECT TO CAMBODIA.?(a) Notwithstanding any ether provision of law, no funds authorized to be appropriatiated by this or any other law may be obligated In any amount in excess of $347,000,000 during the fiscal year end- ng June 30, 1975, for the purpose of carry- Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 o' Approved Forii&Aii4; N-20215:1117-Ettkif#_a_RREF4MIt957A000100030042-1 S 17953 shall not eiceed at any eke time one hundred "(d) No hinds may be obligated ear any October 1, 1974 CON lag out directly or indirectly any economic or military assistance, or any operation, pro- ject, or program of any kind, or for provid- ing any goods, supplies, materials, equip- ment, services, Personnel, or advisers in, to, for, or on behalf of Cambodia. Of that amount, there shall be available? "(1) $200,000,000 for military assistance; "(2) 07,000,000 only to carry out the Agricultural Trade Development and Assist- ance Act of 1954; and "(3) $70,000,000 only for economic as- sistance, of which there shall be available? "(A) $20,000,000 for humanitarian assist- " (B) $31,000,000 for commodity import as- sistance "(C) $17,500,000 for multilateral stabiliza- tion assistance; and "(D) $1,500,000 for technical support and participant training. , "-(b) No funds made available under para- graph (2) or (3) of subsection (a) of this section may be transferred to, or consoli- dated with, the funds made available under any other paragraph of such subsection, nor may any funds made available under any subparagraph of paragraph (3) of subsection (a) of this section be transferred to, or con- solidated with, the funds made available under any other such subparagraph. "(c) In computing the $347,000,000 limita- tion on obligation authority under subsec- tion (a) of this section with respect to such final year, there shall be included in the goods, sup- the value of any ana seventy-five, of the purposes described in subsection (a) "(2) The United Stats1 shall not, at any of this section in, to, for, or on behalf of one time, pay in whole a in part. direct.y or Laos in any -fiscal year beginning after indirectly, the compensssion or allowances June 30, 1975, unless such funds have been of more than eighty-five edividuals in Cam- specifically authorized by law enacted after bodia who are citizens ..1 countries other the date of enactment of thissection. In than Cambodia or the 1_, ,ited States. Effec- no cape shall funds in any amount in excess ' tive six months after tip date of enactment of the amount specifically authorized by law of this section, the total number of individ- for any fiscal year be obligated for any such -uals whose compensatia or allowance is so purpOse during such fiscal year. paid shall not exceed al any ooe time sev- "(e) After the date of enactment of this enty-five. section, whenever any request is made to the "(3) For purposes of this subsection, Congress for the appropriation of funds for !executive agency of the Tinted States Gov- use in, to, for, or on-behalf of Laos, for any ernment' means any es- ency, department, fiscal year, the President shall furnish a board, wholly or partly ewried corporation, written report to the Congress explaining instrumentality, corrotn Son, or establish- the purpose for which such funds are to ment within the execs" -ve branch of the be used in such fiscal year. United States Cloverrimor,G. "(f) The President shall submit to the "(4) This subsection =hall riot be cons Congress within thirty days after the end strued to apply with ressect to any inclivids of each quarter of each fiscal year beginning ual in Cambodia who (r, is an employee or with the fiscal year which begins July 1, volunteer worker of a volisatary private, non- 1974, a written report showing the total profit relief organizatios or is an employee amount of funds obligated in, to, for, or or volunteer worker cs the International on behalf of Laos during the preceding - Committee of the Red =;TOBS, and (B1 en- quarter by the United States Government gages only in activities providing humani- and shall include in such report a general tarian assistance in Ca mbodia. breakdown of the total amount obligated. "(h) This section sIssI not be construed describing the different purposes for which as a commitment by tan United States to such funds were obligated and the total Cambodia for its defens. ? amount obligated for such purpose. (b) Section 655 and eS6 of such Act are "(g) This section shall not be construed repealed. as a commitment by the United States to Laos for its defense." LIMITATIONS WITH nESPECT TO LAOS Computation plies, Materials, equipment, services, per- SEC. 26. Part V of the Foreign Assistance sonnel, or advisers provided to, for, or on Act of 1961, as amende ?1 by sections 24 and SEC. 27. Part V of the Foreign Assistance behalf of Cambodia in such fiscal year by 25(a) of this Act, is ' irther amendad by Act of 1961, as amended by sections 24, gift, donation, loan,lease or otherwise. For adding at the end ther. -I the following new 25(a), and 26 of this Act, is further amended the purpose of this subsection, `value' means section? by adding at the end thereof the following the fair market value of any goods, supplies, "Ssc. 808. LIMITA-10 - Wrist RESPECT TO new section: materials, or equipment provided to, for, or LAOS.?(a) Notwitlutar ,ling any other pro- "Ssc. 809. TRANSFER OF FUNDS.--(a) The on ,behalf .sf Carribodia but in no case lessvision of law, no funds ;Puthorized to be aP- authority of section 610 of this Act shall not MEWS, 31-/a per centum Of the amount the propriated by this or r" y other law may be apply with respect to any funds made avail- United _States paid at the time such ffnoas, obligated in any aroma, S. in excess of $100,- able to South Vietnam, Cambodia, or Laos. supplies, materials, or equipment were ac- 000,000 during the fiessl year ending Juno "(b) Any funds made available under any quired by the United States. 30, 1975, for the plane) e of carrying out di- provision of this or any other law for the - "(d) No funds may be obligated for any rectly or indirectly any ?conomic or military purpose of providing military assistance for of the purposes deacribed in subsection (a) assistance, or any oper e,ion, project, Cr pro- South Vietnam, Laos, or Cambodia may be of this section in, to, for, or 011 behlaf of gram of any kind, or fry providing any goods, transferred to, and consolidated with, any -Cambodia in an fiscal year beginning after supplies, materials, .ripsoment, services, per- funds made available to that country for June 30, 1975, unless such funds have been sonnel, or advisers is, I's for, or on behalf of war, relief, reconstruction, or general eco- specifically authorized by law efiaeted after Laos. Of that amount, here shall be avail- nornic development." the date of enactment of this section. In no able? MIDDLE EAST ASSISTANCE case shall funds in any amount in excess of "(1) $55,000,000 for SEC. 28. (a) The Foreign Assistance Act of the arnount specifically authorized by law and 1961 is amended by adding at the end there- for any fiscal year be obligated for any such "(2) $45,000,000 (ail of the following new part: , purpose during such fiscal year. ance, of which there sl , . ?)(e) After the date of enactment of' this "(A) $13,000,000 for "PART VI seetion, whenever any request is made to the ance; "Ssc. 901. GENERAL AUTHORITY FOR ASSIST- , Congress for the apPropriation of funds for "(B) $9,900,000 for i 1 ANCE TO THE MIDDLE EAST.?The President is nee in to, for, or on behalf of Cambodia velopment assistance: authorized under section 902 cd this Act to - for any fiscal year, the President shall fur- "(C) $17,500,000 10, furnish, by loan or grant, assistance author- ized by this Act, and to provide credits and ?echnical support. "(b) No funds riside ,vailable under para- graph (2) of subsecties (a) of this section may be transferred to sr consolidated with, the funds made asail sole under paragraph (1) of such subsectio nor nosy any funds made available under ,ny subparagraph of paragraph (2) be Sr'sferred to, Crcon- solidated with, the .1-1d.s made available under any other SUCI subparagraph. "(c) In compuSin the limitations on obligation authority seder subsection (a) of this section Wills , spect to such fiscal year there shall be Inc ' .ded in the computa- tion the value of any soods, supplies, mate- rials equipment, Se r vices, personnel, or TRANSFETt OF FUNDS military assistance; for economic assist- ,11 be available? larmanitarian assist- construction and de- stabilization assist- plainirig the purpose' for which such funds "(D) $4,600,000 for guaranties authorized by the Foreign Mill- are to_be used in such fiscal, year. tary Sales Act. Any such assistance, credits, , . S(f) The President shall submit to the ance with all the purposes and limitations , applicable to that type of assistance under Congress within thirty days after the end ?of eaCh quarter of each fiscal year, beginning this Act and applicable to credits and guar- 1974, a written rePait' ShoWing the Antal anties under the Foreign Military Sales Act. With the fiscal year vytrich begins July 1, . . . . "Ssc. 902. Assocanows.?(a) Of the funds behalf - of Cainbodia, -diming -the- preceding appropriated to carry out chapter 2 of part 6ALtiunt of funds obligated' in, to, for, or on quarter by the 'United -states Onvernment, II of this Act during the fiscal year 1975, not arid ehall. iricIude ill _ such report a general to exceed $100,000,000 may be made avail- breakdown eilm the 'total amourit obligated, able for military assistance in the Middle East. describing the different' PurpOSes for which such funds' were obligated arid the total "(b) Of the funds appropriated to carry amount' obligated for suds Piripose. s' ' out chapter 4 of part II of this Act during the fiscal year 1975, not to exceed $577,500,- 000 may be made available for security sup- porting assistance in the Middle East. "(c) Of the aggregate ceiling on credits and guaranties established by section 31(b) of the Foreign Military Sales Act during the fiscal year 1975, not to exceed $330,000,000 shall be available for countries in the Middle East. "SEC. 903. (a) SPECIAL REQUIREMENTS Furia?There are authorized to be appro- priated to the President for ,the fiscal year and guaranties shall be provided in accord- "(g)"(11) The total number 6ecivflian offis: - , eels and employees, including contract em- advisers provided, to. for. or on behalf of ployeeS, of executive agencies of the United Laos in such fiscal sar by gift, donation, States Government who are citizens of the loan, lease or otherwi For the purpose of United. States and of hien-there of the An-lied this subsection, 'Yes .se' means the fair Forces of the,Useited States (excluding such market value of any soocis, supplies, mate- members 4Arbi1e, actually engaged in air on- rials, or equipment rrovided to, for, or on era-4?ns in OS over Cainboala Which Originate behalf of Laos but in eo case less than 331/s Ontside Cambodia) plea-6M in Cambodia at per centum of the amsunt the United States - any onetime shall not eireeechtivo hundred, paid at the time such .nods, supplies, mate- Effective six _Months after the date of enact- rials, or equipmerit vssre acquired by the merit of this subsection, auCh total nfirilbee United States. APPrgved For Release 2005/07113: CIA-RDP79-00957A000100030042-1 S 17954 Approved For ReleasA,20,05/07/13 ? CIA-RDP79-00957A000100030042-1 t.A.fliNtoctowuniAL RECORD ? SENATE October 1, 192'4 1975 not to exceed 11011,000.000 to steel" set Mal requirements arising from thme to time for the purpose of providing any type or asehrtanee authorized by part I of this Ace In addition to funds otherwise avaliebh fig - such plapoSe. The funds authorieed to be up propitiated by this section alma be svallatee for Me by the President for iessinaise? /herbed by this Act In ems:tin:hunt with the pressiatons applicable to the furnoldzig ul such assistance. Such funds are authorized to remain avaUs.ble until expended. "(b) 13se Pmeident shall keep the Cum. mitten Ma Foreign Relations and the Men- mittee on Appropriations of the Suede atel the Speaker of the House of Representeaftea currently informed on the prograraing auci obligation of funds under subseetien (a). "(e) (I) Prior to obligating any sanottet. In excess MI $1,000.000 from I ands made available under this section. the Presideet ehisil transmit a written report te the Spam- Or of the Haase of Repreeentethes and the Committee on Foraihm aelations ol Ghe ?so- Ste on the same day giviug a complete ex- planation with respect to such prove/Lod ob- ligation. Raab report shall include an in- planatien relating to only one eropmee obligator. "(2) (A) The Fee:Adelt may make ewe, obligation thirty days after the retort leo been So transmitted unless, before the IILLe4 Of the first period of thirty calendar clays oentinuous mission of Congress after the date on which the report is tranakettece aliens House adopts a resolution disappro leg the proposed obligation with respect to ahem 22se report Is made. "(Be For purposes of eubparagreph (A; Cf this paingraph? "(1) the continuity of is seesiou Le brokee only by an adjournment of the Congress sine Me; and "(II) the days on which either Rona is net In seselon because or an ndjournnieot ce snore than three days to& tiny certain we exelledets In the computation 01 the titterer-dee maker. "(8) Paragraphs (4) through (II) of thi eabseettion are enacted by Congress? - any other seershrtion with respect to the same obligation which lam been referred to th (remmittee "44S) A motion to discharge may be made only by an bedielittes1 teeming the resolution -ii hirhly pennitseed (except that It may no be made after the Committee has reported resolution with respect to the same proposed obliration), and detente thereon is limited to not snore than one hour, to be divided equally between those favoring and those opposing tee rettolution An amendment to the motion le not in order, and it Is not to order to move to reconsider the yore by which the motion is agreed to or disagreed to if the rnotior to ft lecherge is agreed to, or diseereed to, the motion may not be re- newed, nor may another motion to discharge the committee he 71" role with respect to any other resolution "'eh respect to the same oblige t Ion. "fin When the committee has reported, or hos been ditschoreed front further consider- wtion of, a rewslutien with respect to an obligation, It is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the tomitleratIon of the rem- Melon The metkes Le highly privileged and Ls not debatable An emendnumt to the mo- tion Is not in order, and It Is not in order to move to reconettler the vote by which the motion is agreed to or disagreed to. "(t) Debate on the resolution Is limited to not more than L%70 hours, to be divided equally between theme favoring and those 01-teoesee the resolution 4 motion further to ilmit debate is not debetable. An amend- ment to, or motien to recommit. the rem/li- nen is not in order, mei it is not In order to move to reconsider the vote by which the retolution agreed to or disagreed to "(10) Motions to postpone, made with re- spect to the disnharee from eommittee, or the emeideratton of a resolution yeah re- epees to an obligatien, and motions to pro- ceed to the oonsideratIon of other business. so dee tied without debate. 11) Appeals from the decisions of the Chair r -listing to the aPPlicetion of the rules If the Senate or the House' of Representa- tives, a the ease may be, to the procedure item to a resolution with respect to an alai tga ti ea are decided without debate," or) thm 620(pI of such Act is re- po .4. within a period not to exceed ten years after e the delivery of =Me articles or the rendering of such services; and '(n) Internet on the unpaid balance of that , obligation for payment of the value of such t artiCies or services, at a rate equivalent to a the current average interest rate, as of the last May of the month preceding the nnanc- big of such procurement that the United States Government pays on outstanding marketable obligations of comparable ma- turity, unless the President certifies to Con- pose that tete national interest requires a lesser rate of interest and 'notes in the cer- tification the lesser rate so required and the lustiacation therefor." (4) In subsections (a) and (b) of section 14, the parenthetical phrase in each is intended to read as follows: "(excluding hit ted States Government agencies other .han the Federal Financing Bank)". (5) Section 24 is amended by adding at he mad thereof the following: "(d) The President may guarantee under -hls section only those payments for any de- ems article or defense service which are due --(Rhin ten years after that defense article is Ritvered or that defense service is rendered, t xcept that such guaranty may be made for vett more than twenty years if the President certifies to Congress that the natdonal in- t 'rest requires that the period of guaranty le longer than ten years, and states in the eTtinCeLICTIT the country or international trganization on whose behalf the guaranty I to be made, the period of the guaranty, and the justification for the longer period." (8) In section. 31? (A) in subsection (a), strike out "6325,- ? )0,000 for the fiscal year 1974" and insert hi lieu thereof "4455,000,000 for the escal yar 1975"; and (B) in subsection (b)--- (I) strike out "8730.000,000 for the fiscal y or 1074" and LT1ECTL ill lieu thereof "3872,- 5'10,00(i for the fiscal year 1975"; and (ti) add at the end thereof the following n lxv sentence: "Of the funds made available u ider subsection (a) of this section, 8100,- 0(0,000 shall first be obligated with respect Is financing the procurement of defense ar- t/ :les and defense services by Israel under a ation 23 of this Act, except that Israel shall bo released from contractual liability to ee- s the United States Government foe the *Masi articles and defense services so tenced." POLTTECAL FRISONEMS Sac, 30. Section 32 of the Foreign Amist- at AM Act of 1973 is amended by adding at the ene thereof the following new sentence: "4 ommencing with respect to 1974, the Presi- dent shall submit annually to the Speaker of the Rouse of Representatives and the Corti- na ttee on Peretten Relations of the Senate a- written report setting forth fully the steps In hue taken to carry out this section." GOECAS MEMORIAL INSTITUTE exe. 81. The first section of the Act en- titled "An Act to authorize a permanent au- nt al appropriation for the maintenance anti operation of the Gorges Memorial". approved Day 7, 1926, as -amended (22 U.S.C. 278), is ea ended by striking out "$500,000" and in- setting In lieu thereof "$1,000,000". ZETERNATrONAL COMMISSION Or CONTROL AND sometritssornite VIETNAM 32. (a) There are authorized to be ap- prepriated to the Department of State for Seal year 1075 not to exceed 416,526,000 for Mtenents by the United States to help meet e4onses of the International COMMISS1011 of Co strol and Supervision In Vietnam, Fends aretropriated under this subsection are auth- ort ted to be made available for reimburse- to the Agency for International De- velepment of amounts expended by the Agency during fiscal year 1075 as interim trn ted States payments to help meet ex- pet see of the International Commission of Mittrol and Supervision. "(A) as an exercise of the rulereanine pbwer of the Senate and the -Reuse a Rep- resentatives, reeipectively, and as meth thm are deemed a part of the rules of each Ileum, respectively, but applicable only wets respec. to the procedure to be foliewed tic tic; Hotta& In the ,casi of reanbtrions described by the. subsection; Ned they supersede Mien rake. only to the extent that they Are inetemist, ent therewith; and "(B) with full recognitiou of the cenetile- tkinal right of either Beene to change Let rules (so far as relating to the preceLlure ol That House) at any time, In the same manner, ancl to the same extent as iii the cue of am other rale of that HOUSe. "(4) For purponee of paragrapha (2) through (11) of this subsection. lea...tenon' Means only a resolution of either House tei Coegress, the matter atter the resolving clause of which is as follow.. 'Tame the -- does not approve the obligateou for said explained In the report truesualeted to Congress by the President on --, the first blank apace thertin be- ing filled with the name of the reniving House, the second blank ammo tie:lea. being filled with the name of the foreign ciuntry or organization on whose behalf the oblige- tion is to be incurred, and the other blank spices therein being appropriately filled with the date of the transmittal of the report; but don: not include a resolution specifyin ; mon, tha:L one proposed obligation. "(5) /f the committee, to which has Men refeered a resolution disapproving 1. pro- posed obligation, has not reported the reaolu- term at the end of ten calendar days, alter its introduction, it is In order to move either to discharge the committee trent furthe- con- sideration of the resolution or to diseharge the committee from further consideration of 1.J.6.111?..N MILITARY SALES ACT AMENDMENTS hwc ee. The Foreign Military Sales Act is amended as follows: II) Motion 8(d) H amended to read as fellows: -en A country shall remain ineligible in Crtma.,CC with tsubsection (cc of this see- n/el until such time as the President de- teremie, that such vielation has ceased, that the country concerned has given assurances fatiffactery to the President that such viola- tion will not recur, mid that, If such viola- tion involved the transfer of sophisticated weepone without the consent of the Presi- cent, stels weapons lave been returned to the country concerned." (e) Renton 22 in enneded by adding at the end thereof the ft:Howe-1g new subsee- t ice : e) No sales of dennse articles shall be mace to 'he governs:neat of any economically developed country under the provisions of this eection if such articles ire generally available for purchase by such country from sOlioX1 in the United States." le) /notion 23 is amended to read as follows: ' Ero. ii. CE17,71T Seiss.?The President is meteorized to finance procurements of de- fume articles and deetese services by friendly foreign countries and international organiza- tion, on tome requiring the payment to the United Metes Government in United States (Jolters of ? "; I) the value of such articles or services Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 0. ? Approved EgafiesilitiNFVfliihek-RpMett957A000100030042-1 S 17955 elected represeritativef If the Amereean flation. The committee has acted in a people have always co -? to the conchi- responsible manner to help in that effort. sion that continuatior of a foreign as- Before I explain the major provisions sistance program is in the national . of the bill, a few words of background terest and a part of our national security are necessary. Last year Congress ap- effort. Within that, t ajority there is proved a 2-year authorization for for- much argument about t orm and content eign economic development assistance, but there is no substar L ,ial disagreement but only a 1-year authorization for min- over the Nation's obla! tion and indeed tary grants, military credit sales, secu- our desire to help the world's poor. rity supporting assistance, and only 1 The bill recommen{ ed to the Senate year for economic aid to Indochina. The principal purpose of the bill be- fore the Senate is to provide a number of supplemental authorizations for eco- nomic development programs and to pro- vide new authorizations for the pro- grams which were authorized for only 1 year during the last session' of Con- gress. In addition, the bill contains au- thorizations of appropriations for a Middle East contingency fund which was requested by the President and the Sec- retary of State, and for U.S. contribu- tions to the International Commission of Control and Supervision in Vietnam which was set up under the Paris Agree- ment. For many years the Committee on For- eign Relations has urged that military and economic assistance authorizations be considered in separate bills. In re- porting a bill containing authorizations for both economic and military assist- ance, the committee recognizes that, on the surface, its action appears inconsis- tent with its traditional position. How- ever, this is a unique bill where military and economic aid issues are inextricably combined. In Indochina, for example, hers. Those staff me e hers made an in- the committee believes that the Senate tensive study of our foreign assistance should consider the total flow of U.S. program in the Indot t ma area. resources to South Vietnam, Cambodia, The staff membert, brought back rec- and Laos. ommendations to us and those recom- It would be inadvisable and confusing mendations were re esented to every to try to deal with policy toward those member of the eon, mittee. They were countries in separate economic and mili- discussed in coma ittee and, subse- tary aid bills. Similarly, in the Middle quently, amendment were drawn from East, the committee's singling out this some of those recome Lendations. region for special attention has resulted I am proud to so: that a num oer of in a mix of economic and military aid those recommendatams I offered as authorizations. Next year the committee amendments so that they could be in- fully expects to deal with foreign assist- eluded in the proptaed legislation now ance authorizations in two separate bills, before us, the Far{ I m Assistance Au- as outlined in section 9 of the State De- " -74 partment/USIA Authorization Act, S. October 1, 1974 . (10 There are anthorized to be appropri- ated to the Department of State not to ex- ceed $11,-900,000 for reimbursement to the Agency for International Development of amounts expended by the Agency for Inter- national Develotunent to help meet expenses of the International CommisSion on Control and Supervision in fiscal year 1974. (a) Iteirnbitrsements received by the Agency for International Development un- der, this section may be credited to applicable apprbpriations of 'the Agency and shall be available tor the purpOses for which such ap- propriations are authorized to be used dur- ing fiscal year 1975. HU1VrPHREY. Mr. President, I ask unanimous consent that Dan Spiegel of my staff, and Norvill Jones, John Hitch, Robert Dockery, and Richard Moose of the staff of the Committee on Foreign Relations be permited to remain In the Chamber during the remainder of the Senate's consideration of S. 3394. The Prmsmrco OFFICER. Without objection, it is so ordered. Mr. HUMPHREY. Mr. President, it is my responsibility to bring the foreign assistance authorization bill, S. 3394, to the Senate. This follows, of course, our extended discussion on the continuing resOlution with all of its amendments. I am hopeful that during the consider- ation of this bilt into which a great deal of work by the Committee on Foreign Relations has gone; we Will be able to expedite the consideration of amend- ments. There are several Members of this body with other pressing duties who have amendments to offer, and we have had much debate already on most of the items which will be brought up for considera- tion. Actually, I have a feeling that we are going to see- what they call in foot- ball parlance some instant replay here, and I am fully aware of what the score ? Is going to be On the instant replay. It was mY judgment that we should have proceeded with the foreign assist- ance authorization bill, S. 3394, prior to the continuing resolution, but there were those in the administration who felt that -Was not desirable. can understand their concern. But that is the past, and we shall preceed now with this proposed legisla- tion. Let me add that the foreign assistance by the committee, by L. vote of 11 to 5, will bring an end to on major aspect of the foreign aid prograra I wish that this Chanber were better occupied today, so 11 et my colleagues would know the impoi lance of this par- ticular action. The aaret of the foreign aid program to be d ationtinued is the military grant a,seisteac.e program. For many years the Correeittee on Foreign Relations has sought a bring about ma- jor changes in foreir aid policy. Last year significant irnprosements were made in the economic aid pregram. and I want to compliment in part{ ular our esteemed colleague from Vermot le (Mr. AIKEN) for his help in this effort, - joined with Sen- ator AIKEN in designt g that bill. Ie was designed to insure that the benefits of American tax dollar reached the rice bowls and bread bask sis of the poor and did not lodge in the rrrckets of the rich or the corrupt. This e ear the committee has continued its wert: at reform, con- centrating on the nub t. Lry assistance pro- gram and aid to /ad -.;:sthina. And may I add that the dispatched to Indochina two of its rT)st able staff :nem- . authorization bill before us is greatly thoriza io . different from other legislation that we This year, as Thal L said, we continued 3473, now in conference, which requires have adopted ' in this area on other our efforts at imam, , e_ment and reform consolidation of future requests to Con- occa,.siOns. -1-- ' t and fiscal discipline. , gress for foreign affairs and foreign as- Fereign aid* bills, Mr. President, have The bill recomrdei ded by the commit- sistance authorizations. never been popular. I believe that is tee would authorize a total of $2,527,- Mr. President, I ask unanimous con- probably the understatement of the year. 626,000 in approm I tions for certain sent to have printed in the RECORD at this ' Blit in this time of galloping inflation, foreign assistance pi ,)grams in the 1975 point three tables: the first showing the belt tightening bY every American, and fiscal year. This rep tesents a reduction authorizations proposed by the execu- a Mounting Federal budget, the task of of $724,600,000--or t.'2 percent?in the tive branch and the recommendations defendiu this bill in the Senate is less executive branch's n tuests for these pro- by the Foreign Relations Committee; the palatable than ever'. But, as distasteful grams. second showing the executive branch's as foreigi aid is to most Amerie,ans, year I submit that no i tl. has been brought foreign assistance request, including pro- in and year (int since the beginning of before the Senate that has hal that grams already authorized; and the third, the Greek-Turkish aid program, every much reduction ape Led to it. We went a country-by-country breakdown of all CongreSs 'arid every President have over every item in tis bill, and I hope foreign assistance programs proposed by agieeei that foreign aid is a key element that my colleague{ will take the time the executive branch for the 1975 fiscal In America's foreign policy. Congress as they consider V. Is measure to look year. may grumble -and groid, and indeed it at what we have 1-me. 'The President There being no objection, the tables does, and it has, and I have done my has called for Corigr ,ss to exercise fiscal wereprdered to be printed in the RECORD, share. But, in'the end, a majority of the restraint to help in I he fight against in- as follows: - Apprbved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 S 17956 40. Approved For Release 2005/07/13 ? CIA-RDP79-00957A000100030042-1 kAiivraRk.SIONAL RECORD-SENATE October 1, 1974 TABLE L-609(1834 ASSISTANCE AITINIONATIONS INCOMMENDED 81' THE COMMITTEI OK FOREIGN MIAT10NS {la tonsande W doilies] I- find and WW1= 2. Rapidan planning siI Imalth 8. Education and human resomais develop inept _ 4. GormeMersorial--Ranarna.. b. INowbowi organisation and programs__ b. lodachina postern rocoostruction Y. Security supporting assistance 'Supplemental to current authorization. 1001 taloroncia sada request 006bost 1 25:4 30u -55, 400 ft middia East special requiren nits funds__ 000 +20,000 -1-2,000 _ 9. Military assistance program. 10 Foreign rather, credit sales. . +500 it _ Werner onat Commission ft Cordrol and +33;600 Supervision in Vietnam_ 335, 560 58 -389100 tzua, ou IOW Racal year Committee 1975 sateen- recornmen- Difference from Matto request dation request 100, MO 985, 000 555, 000 27,726 3, 252, 226 100,000 550,000 ? 455, 000 -435,000 -100,000 27,726 2, 527, 626 -124,600 7.4811 0 --COMPARATIVE DATA Fly-el yen r 1974 _ Autbmize- Appropria- tion Soo SleveWirani assistance: and nutrition 291, UC) 34,0(L1 Revelation planning end health _ 145, trOa 115,06u ,Edscatian end human faSUtileta__ 90. 003 YedoStod devehipmeat problems._ 53, (03 43,502 Sdoesd countries and organi- sations__ 39,003 36, soa TAM, donctional development issiolonco 610,000 580, OW loternedarml orderdzab014 811gresilliod yaw programs _____ Mainsns Basin Development Find lea is Rasta davoloproard Fund 1LN. Inewencooit fund and 30f tids amount, poo,000.coo to be in the eater* of a grant to Israel. 09IEIGN .AMISTATICE ACTIVITIES, FISCAL Y tRS 1974 AND 1975 fin thomends of dollarsi faced year 1975 mosesi - - Demarrilee ppropMe? Ai/Morin- Meermnsa- tie* ten deliao At, 300 5 255, 396 145,000 -- 90,360 . 53,460 Snfret droved relief ? 200, IMO Disinter rebel and recorstructron_ 026,000 Administrative esperism, AID '2,0(0 Administrative and ocher expense , 32, 003Total, davalopinent assist - Indeelmm postwar reconstruction_ _ . WO .256,300 4 at 6011 Sucerrity support* Isar dance - - -- - /diddle Fast Special Requirement Fend. 15E. LX, Cat SRL " 3, 900 6) 2,000 300 14, 510 9.00. .4 506 2, CX 2.001 7, 50, 16, GU& lout hdereational cream- mtions awl programs. __ 16,6, 51t 14S, 506 1.2 ter6 90= Americas 'Awls and Itcopitals abroad_ 19,000 19,03 Contrnmucy fund 30, 0_10 Is, 00t Association Partnere of the ..... - Abaft Schweitzer Hospital__ _ 1 WO 1, 630 . 934 756 600 A, GOO ____ ......... ... . fiscal year 1974 Fiscal year 1975 request' Committee Aerlhoriza? Appropria. Appropria- Authorize- recommen- tion don tion lion dation 75,000 186,000 45, 003 20,000 150,000 40,000 45,000 4,000 5.960 990,434 000 906,050025. 000 '499,000 112, 500 1, 142, 800 '259,200 = 258,900 939.800 939,800 550, 000 385, 500 385, 500 585, 500 100,000 100,000 100,000 Total AID.. _ .. 1, 684, 434 1,597, 550 Marimbas:I rearceues antral. . _ 42,500 . 42,500 Oversees Pfister, Investment Cor proration (rammer)_ (I) 25, 000 midowywnewerwe premaniOeitriP). 512,5439 7450, (101) foreign military credit sales_ ..._ 325, 000 325,000 Einetgency security assistance: hovel 2 200 000 2, 200,000 Cambodia. 8150, 000 2, 568, 100 1.684, 500 1 494, 400 42,500 25.000 985, 000 985, 000 550, 000 550,000 555.000 455,000 loreiva asrastanCe dents . 4, 764, 434 Oran Memorial Instrtme.. (I) International Comeussioe of Con- trol sod Supervision in Vietnam 4,500 4, 790, 050 4, 175,600 3,224, 500 2, 499, 400 500 500 (0) 500 '27, 726 027, 726 "27,726 Grand total__ ........ _ . 4, 766. 234 4,790, 550 4, 203, 826 3, 252, 226 2, 527, 626 I Romrest includes the fallowing ad ditional summits not isis i,.dct in itic year 25 bad transmitted to the Congress or; fob. 4, 11/4. InJothisur postwar soussestrectissa, ; sonority supporting a; ststance 5327 500,000_ Marcie r as. vocial sequiremeefl. foreign military credit ;les. 9243,300,300, mil 1..i) 4,sisteute s wands, 140,0011,0011. I to erdst ng authorization. Ott moms* authorized by Ar of 1767 Var.! Tale e 851,266,00d) Lich: ArethorieNt by Public Law 93-188 which flair aaa.abtu I,,,,,Lt6,060 rood, minima d. TABLEIll--U.S. corm 611: AS:it:, to 'ILI, MILIIAI4Y 436137A2NGL, AND CREDIT SALES P6OGRAMS IIOPOSED FOR FISCAL YEAR 1975 Pernweent itedkortration for nab Sonia as mat be necessary. 'Includes $49,000.000 suppler**, gal appropriation. ' tediums 1250.000,003 in dotes., stocks provided to Cambodia under sec. 506 of the FAA Gt 1001. *Not authorized. ?Perineumf enthoriaalion of 53L 1,0013 per anourn. eche $05, 905,526,000 for Meal year 1975 contribution to the ICCS sad $11,200,000 Ii rein- borsoossol to MO For fiscal year 18 '4 expanses of lb* ICCS. Tater economi Ila theirs:Ids of dollars] Rowe* Mbetenc? preprint snidiery rreistinca and arse sales Total ecenomer Desistence AID Petits e Law, ? 4905 kiter- ethane' imicatice control lommery Parke, tate ,ia_ SotOwana dirron8 . . .... - ........ Ga simmen Central African Republic Chad. Collo (9012Mtriffe) Dahomey Ethiopia Gabon Gambia Ghana Gahm Ivory COM, 0368,736 293, 753 1,400 1, 736 425425 1, 313 260 448 412 499 42, 938 530 442 15,666 333 2,091 I 4, 72, 226 251,443 1,493------1,409 i, 7 1. 311 _ 200 418 4 4 32.0li 530 442 15,026 333 2.481 . 2, 842, 415 16/1.01 12.256 995,828 42, 500 26, 803 56,13 25.897 13,746 394 1,842 - 825 486 139 121 --------- 444 4 412 . MS III 3. Z 1.804 225 /87 1,187 fla 333 1,463 622 Military assistance and credit sates programs Total it dairy min Same and credit soles Military assists/ma maids (MAR) Foreign military credit sales Tufts defense articles Military assistance service funded 3. 463, 500 1,024, 000 872,500 150,000 1,450,000 42,285 14, 785 24, 500 3,000 It 900 11,300 5;000 2,600 70 70 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 October 1 1974 CONGRESSIONAI RECORD SENATE S 17957 Economic assistance prograt - -I- , Total Military assistance and credit sales programs KIJITOM1C .. and Total ilitary military stance liter- assistance Military Foreign Military -end Tolal Public national and assistance military Excess assistance Credit economic Peace Law, narcotics credit grants credit defense service - Sales assistance AID Corps 4801 co Aral sales (MAP) safes articles funded Trenya I, 951 S, 951 7, 493 1, T.15 299 -Lesotho :1, 739 1,739 98 1, 641 Liberia 8,.62.6 9,026 7, 206 1, 352 458 600 100 500 Malagasy 168 168 198 Malawi 410 410 _ 351 50 Mali 1, 286 1,236 _ Mauritania 290 290 Mauritius _ 1,219 1,219 Morocco 49, 182 34, 322 Niger 3,957 1,957 Nigeria 6, 133 6, 133 Rwanda 2, 947 2,947 Senegal 1,870 1,845 Seychelles 26 26 Sierra Leone 2,566 2,566 Sudan 15, 960 15, 910 Swaziland__ 572 572 Tanzania_ 12,054 12, 054 Togo 2, 089 2, 089 Tunisia 21, 368 17, 468 ' Upper Volta 2, 230 2, 230 Zaire 15,294 11,494 Zambia 8 8 Economic regional programs: Central West Africa and Sahel 26, 874 26, 874 26, 874 East Africa 1,563 1,563 1,563 Southern Africa 10, 123 10, 123 10, 123 Africa regional 21, 988 21, 988 20, 527 Self-help projects 1,700 1, 700 1, 700 Regional military costs 30 356 880 50 50 54 236 79 1,140 15, 210 1,331 117,781 14, 860 860 14, 000 1,061 897 3,682 151 2300 2,500 _ 447 606 1,739 25 25 26 11,655 911 10,850 5,090 50 50 452 120 00,659 1.395 1 061 1,o28 5,809 1 072 10, 587 _ 3,800 2,000 1,500 400 529 1710 6,013 5, 14f 335 _ 3, 800 300 3, 500 8 30 30 Asia total 4,792 069 2, 086, 017 1, 375, 949 V,67' 680, 746 14, 198 2,676, 052 787, 902 318,000 120, 150 1, 450, 000 Afghanistan .Bahrain angladeah ritish Salomon Islands unna -Cambodia -China (Taiwan) Cook Islands_ Trus 17,185 16,985 14,467 I, 29 1.175 50 200 200 83 83 8 104,669 104,669 65, 220 116 116 2- 5,000 5, 000 5,000 550, 761 187, 011 u 110, 000 77, 011 , 363, 750 362, 500 1,250 80, 400 80, 400 400 80, 000 14 14 1 571 571 606 606 60. !filbert and Ellice Islands_ 21 21 2 reece 71, 000 71, 000 71, 000 ? I ndia 1113,894 1113,794 75, 500 21 30,1)03 _ 100 100 Indonesia 221, 369 192, 469 71, 460 120, 909 100 28, 900 22, 700 Iran. _ _ - 0569 1569 159 )(area 436,108 182,068 25, 176 1,90 054,90') 234,300 161,500 52,000 20,800 . Laos 143, 505 57, 405 ?56 000 ,,!53 1, 152 86, 100 85 200 900 - Lebanon 10, 150 10, 150 150 10, 000 Malaysia 12 938 2, 653 2, 41- T 156 10, 285 285 10, 000 Micronesia 1, 061 1,000 1, 0, `Nepal ? 6, 991 6,956 5, 721 8 r 402 35 35 'Oman - 161 181 1i Pakistan - 123, 074 122, 794 78, 745 43, 299 750 280 280 PhilipTines 103, 715 78, 315 49, 844 Z 1 t 26, 043 250 25 400 17, 900 5 000 2, 500 _ t audrArabia -220 220 220 Sri Lanka (Ceylon) 18, 801 3.8,706 8, 000 _ 10, 786 15 15 'Thailand - - 88 587 14, 087 6, 005 1 2 ", 6, 864 74, 500 56000 Tonga ' 338 338 3 ' 'Turkey 232, 492 27,452 23,064 ------4,396 32 205,000 80,000 90, 000 35, 000 _ Vietnam 2 396, 553 991, 553 a 751, 000 _ 160, 553 1, 485 000 35, 000 1450 000 Western Saito 321 321 3 i Yemen Arab Republic 13, 734 13, 734 11, 496 1 Z 078 , t manic regional program 25, 365 25, 365 24, 251 1, 1., -'Regionaf military cos(s_ 417 39, 449 92 6,200 18, 500 417 417 Latin America, total 92 306 372, 206 267, 461 ' 1997, 78, 137, _ 6, 630 220, 100 18 250 200, 000 1 850 Argentina 30,900 - 200 200 38 700 700 38 000 Belize (British Honduras) 275 275 2 ' Bolivia__ 35, 959 29, 459 22, 239 45 , ' 8 300 3, 000-- 64,976 63, 676 26, 035 3, 2 178 7 175 66,, 850000 200 Brazil 800 68 000 'Chile - 69, 309 8 508 2 800 9, 986 243 28 21, 300 800 20, 500 . 37 097 Colombia 700 17, 000 Casio _. _ 2, 147 35 148 21, 908 2, 147 834 2, 209 537 17, 700 Dominican Remiblic __ , _ __ 15 8554 0 5 456 1F150 ' Ecuador - . 18 976 17 07565 2, 050 1 7, 888 _ 3, 327 , 1' 430?0? 500 50 12, 500 El Salvador 17 381 12, 731 9 833 326 12, 900 8 500 50 Guatemala 21, 305 - , 18 955 11, 561 4 650 11? 17, 090 1, 781 2,350 1, 300? 1,000 50 Guyana 8 624 3, 624 8 550 _ 74 Haiti _ 11, 055 10,055 8,179 2 - , 669786 200 200 H0ndpras 28, 152 23, 502 22, 038 I, 100 3, 500 50 Mexico 10,100 5,000 8, 450 1, 1, 558 5,00034 _ 4,650 6,100 100 5,000 Jamaica 11, 399 11, 399 Nicaragua 33, 558 29, 108 27, 826 57 688 4,4501, 100 3,000 350 Paraguay 7, 770 5,420 4,756 338 18 3656? 500 . 50 Panama 22 266 21, 716 21, 360 Peru 38,631) 17, 330 13, 489 1, ; 2,51369 10 2,0 500 450 93 21,800 1, 400 800 20, 500 - -- , Trinidad and Tobago 16 16 16 - -- - ruguay - eepezitela?,1, 857 Caribbean 6,486 786 775 19,557 rational 6, 443 6 4 Central America regional (ROCAP) 1, 674 1: 67443 16, 69304? Inter -American prngradta 17, 650 17, 650 17, 650 _ tconadiTc re - Farogtanrs 23,646 23,646 22,281 ' Regrany military-tosls 350 rooiri;oiei?iii title. ' --- 33 11 4,700 1,600 2,500 600 43 17,700 700 17,000 ----------------- -- 350 350 d For Release 2005/07/13 : CIA-RDP79-00957,A000100030042-1 S 17958 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 CONGRESSIONAL RECORD ? SENA TE October 1, 1974 TABLE 111.--U.S, ECOI4OMIC ASSISTANCE, MILITARY ASSISTANCE, Alin CREDIT SALES PROGRAMS PROP0SED FOR FISCAL YEAR 1975?teathang pa taainseds el dating Economic assistance province Total ecomereic and milltarr assirtaric end Medd sofas Total 'commove assisterice Peace AID Corps Public Les 4801 Inter- national part:oho control Military assistance and credit sales programs TMal military .siStance and credit sales Military assistance [grants (MAP) Foreign military credit sales Excess defense articles Military assistance service funded Middle East, total 969, f.,5d 519, 807 478,175 Egypt 259,144 153144 250, 000 Israel 378,21 14.211 '50. gm Jordan., 217,04", 44,45? I 78 175 Middle East Special Requirements Fund . 100,00u 100. OW 100,000 Europe, total Austrie Finland Matta Portugal Spain Regional military costs .. 41,632 449, 243 94, 243 330, 000 3,144 28211 300, 000 300,000 10, 277 149, 243 94, 243 30,000 25, 000 25,000 1$, 15,053 12, 522 12, 500 22 .24 .. 24 24 ...... ..... 24 24 9, 52, 9 522 *9500 22 841 4,60F OW * 3 000860 860 1,600 1,600 2,531 2.531 23 23 Other 821, XS- 721, 079 6397338 f 20, 529 r 139, 540 '21, 672 .06,289 '106,289 U.S. contributions to international financial in stitutirens. total 909, 47 African Development Bask Spemal Fond .. 15,000. International De mlopment Association 32(j, min Inter-American Development Bank; Paid-in capital Callable capital FUN Itif Special operations .590, ot.,) Asian Development Bank: Pald-in capital_ Callable capital Special funds_ 900.127 15 000 39n CAM 50030) 24,171 24 177 (36, 503 (96 50") 50,009 50 000 'Public Law 480 estimates are planning Livers Viki,11 Oftli reexamined :ate hi the VOlf I'- light Of revised price estimates. U.S. commodity asslamIthe'' ind 'sapient co nit's reouiremene if ovaslabilities permit, _a title I concessional 5.11,115 :romans mai tie pimmeri Pu Guires, Includes pfM,000,000 U.S. ContribUfiona IC inturnationst finsizaal institutions, 4 Largely or wholly funded from security suoporirg ass.s:eace or Indochina postwar recon- struction accounts. includes West Bank at the Jordan River anc Gare. Includes the following: American schools and Lospitsts Woad. 110,410t IO mrs,tats,rnsvs expenses, AID, 147,100,000; State, $5,900,000; ventingety fund, $30,000,000, intanationg Mr. HUMPHREY. I ask also that there be printed in the REcoso a StiallillarY of the major policy provisions of S. 3394 as reported by the Foreign Relations Com- mittee: There being no objection, the sum- Mary was ordered to be printed in the Recoeto as follows: Str:dmaRY or MAJOR POLK Y Fitovisiores sir TIM WILL I. ItesOCICIN 1. Policy.--States a Congressional policy concerning the political/military sItuatio. in Indochina and ,principles to guide the 17.S. economic assistance program. 2. Spending Ceilings.--Iniposes fiscal year 1975 ceilings on obligations for assistance to IraloChina: $1.28 billion for South Vietnam; $347 million for Cambodia; and $100 million for Laos. 3. Project and Program Authorisations:- Authorizes foods for economic assistance to South Vietnam, Cambodia. and Laos 1.iy spe- cific project or program. 4. Personnel Ceiling in South Vietnam.-.-- Imposes a ceiling on US. direct hire ai.d con- tract personnel in South Vietnam of 4,000 to De readied within six months after enact- ment and a fUrther reduction to nos more than 3,000 by the end of fiscal year 1976. 5. Personnel Ceiling in Carnhorgfa,?.Re- duces the ceiling on U.S. direct hire or cons- tract personnel in Cambodia from 200 to 175. Contract personnel of humrinharlan re- lief agencies are evertipted from the ceiling. O. Transfer authority.?Allows military aki funds to be tised for economic assistance Morposes. U. MILITARY ASSISTANCE 1. PitaSe Out of Military Grant Assistance and Military Missions.--Requires a phase out orgrazations and programs. $200,100,000; operafing costs, $123,400,000; interregional popula- tinn program, $50,400,000; and ohm interregional programs, $69,100,000. ? locludee worldwide soPPert. 4.600,000; Peace Corps share of action support, $13,300,000. Includes emergency reservesfoliaged title II, $35,300,000; ocean freight, $103,200,000; grants of title I currencies under Sc. 204 of title II, 91,000,000. I Includes International organza-ions, $5.100,000; interregional programs training and support costs, $6,700,000; unprogranied. $.4800,000? . locludes administration, $75,210,000; supply operations, 378.700,000; inspection, general, $175,000; storage and maintenance stockpile, 31,000,000, over a chree-year period of military grant us....istalice and United States military aid r, foreign countries. 2. CoAs of Military Missions.?R,equires that all r!ostu of United States military mis- sions abronct must be charged against appro- priation.; for military grant assistance. 3. war Resecce Stockpile for Foreign Conra- --,tequires that any stockpiling of mili- tary equiprnaent or austerial for foreign coun- :rico ;re nuanced, out of funds appropriated for milliary assistance. No material can be provided to a foreign country from previ- ously stockpiled materials unless the cost of the materials Is charged against funds appro- priated for the regu'ar military twat:stance provrtim or military eld to South Vietnam, 4. Aurttnrity to Orate on Defense Stocks.? Repeals the authority to draw on Depart- rnent nr Defense stocks for the purpose of providinir additional military grant assist- ance to foreign countries. 5 Excess Defense tirtichrs.?Tighterts re- atriction; on the use of excess defense arti- cle% for foreign military aid by requiring that all crania of excess articles be charged against funds for military aid at not less than one-third the acquisition cost of the article. 6 Military Aid to Korea ?Imposes a ceil- ing on military grant aid and credit sales to Korea of not more thin three-fourths the FY 1974 level and phases out such assistance over a three-year period. 7 Arms Sales Throtigh Commercial Chan- iblts government procurement of arms for economically developed countries If the equipment or material Is available through commercial channels. 8. Interest Rate Oa Credit Sales.?Im- poses a rignimura interest rate on credits ex- tended to foreign coma-ries for purchases of arms under the Forelan Military Sales Act of not less than the interest rate paid on 'Treasury borrowings of comparable maturity. Ur. GENERAL 1. Chile.?Imposes an FY 1975 ceiling of not more than $65 million of which not ntore than $10 million can be in military credits or grants. 2. Waiver Authority.?Repeals the Presi- dantS general authority to waive restric- tions In the Foreign Assistance Act. 3. Police Training.?prohibits use of for- at aid funds for training foreign police, prison, or internal security forces. Mr. HUMPHREY. In its work on the Ptesident's foreign aid request the com- mittee's primary focus was on two major ategories: the military grant assistance program and assistance for Indochina. I1 . addition, the committee gave con- siderable attention to the provisions con- cerning assistance to countries in the Middle East. I will comment briefly about the committee's action in each of these al cos. I will not burden the Senate with a description of all of the other pro- visions recommended by the committee. The details are contained in the corn- m.thee report. I commend to Members of the Senate ar d to the public a careful reading of that committee report. First, on military assistance: The committee approached its consideration of the proposed military assistance pro- grim for fiscal year 1975 with the long- held belief, expressed in committee re- po ts of past years, that the United States should provide grant military aid to for- Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 October 1, 1974 CON'OIMS'SIONAL Ittr:01M ? SENATE S 17959 eign countries not as a habit, but only importance, I would litvle" that our sol- can; always authorize military grants or In specific instances where such assist- leagues would take not ei the fact that? concessional credits on a case-by-case ance is clearly warranted by U.S. if they read the RECOR1, and we presume basis whenever a country's circumstances security or foreign policy interests, that such is done in preparation for im- warrant such aid, as was done in the case At Present, the farflung network of portant votes?we mail a reduction of of Israel last year. U.S. Military missions gives bureaucratic 44 percent in foreign 'solitary assistance. INDOCHINA momentum to the perpetuation of an ex- No other committee ha', made reductions Now, I turn to the provisions in the bill tensive program, the rationale of which of the size that the F oreign Relations relating to Indochina. The Foreign Re- has become Increasingly more dubious Committee has made in this foreign as- lations Committee has acted to reduce each year, in the view of the majority sistance program. This seems to be the the scope of U.S. involvement in South of the committee. Through this bureauc- desire of the Senate, e ed we have tried Vietnam, Cambodia and Laos to estab- racy, the United States continues to to comply with that judgment. lish guidelines for future U.S. activities dispense' hundreds of millions of dollars In addition to reduce ' g the authorize- and programs in that region. In weapons each year in pursuit of such tion for military grant id and providing To place a clear and definite limit on vague goals as "stability," "balance," for a 3-year phaseout 'f the grant pro- our financial involvement in Indochina, and the "maintenance of friendly rela- gram and overseas ne -sions, the corn- the committee imposed a ceiling for each tions." Vet, there is little evidence that mittee closed off auliary sources of country on all U.S. obligations for for- Mich general purPoses have actually been military assistance wl Ich have allowed eign assistance purposes. In addition, the served by this extravagant program. for greater volumes of military aid than bill establishes a ceiling on U.S. person- 'Experience indicates that the avail- could be clearly perce eed either by the nel in Vietnam and lowered the current ability of grant military aid induces re- Congress or the Amen sari people. In ad- personnel ceiling for Cambodia. cipient countries to maintain larger dition to regular military grants and To establish guidelines for future m- end more expensively equipped military military credits, milit ' ey assistance has tivities, the committee approved state- forces than they would otherwise find been provided in the past by the follow- ments of policy relating to both military necessary or prudent. By encouraging Ing means: and economic assistance. On the military recipient countries toward increased Military Assistance :service-Funded? side, the policy statement calls upon the militarization, the program not only es- MASF?a Defense Dsoartment budget President and the Secretary of State to calates the destructive potential of in- category now used on e for military aid take new initiatives to bring about an ternatiOnal conflict but also enhances the to South Vietnam; effective cease-fire throughout Indo- relative power of the military within Defense Depart:net s funding of most china, reduce arms shipments to the those societies. Thus, it often serves to of the costs of U S. military missions area, and conclude a lasting settlement stifle - the very democratic processes abroad; of the issues which have fueled the past which the prograrn, in its origins, was Grants of "excess sefenee articles"; quarter century of tragic conflict. Intended to defend. and On the economic side, the committee Only Congress is in a position to put Grants of weapons and equipment incorporated in the bill specific guidelines an end to the near-additive habit which drawn from Defense e:epartment stocks, designed to promote the effective utilize- the military aid program represents. Like which are replenish ii through subse- tion of any economic aid Congress may all longstanding programs, this program quent appropriations provide for the countries of Indochina has been institutionalized, and it is simply The committee deal , with each of these and authorized aid on a program or proi - in the nature Of things that the State four categories. ect basis. The committee believes that Department and our embassies abroad The bill requires that Department of the specific plans and performance cri- will want to perpetuate the status quo Defense funding of mi Itary aid to South teria called for in the guidelines and rather than risk offending a foreign gov- Vietnam end on June 30, 1975, and that specific allocations are essential if U.S. ernment, even if an objective evaluation any subsequent DAIL try assistance to assistance is to be used wisely. These indicates that the program no longer South Vietnam be fe ided through ap- plans and criteria will also provide a basis serves a useful ptirpose. Corigreas, how- propriations for the 1 , sulfa military as- for future evaluation of the effectiveness -ever, cars ease the potential diplomatic sistance program. of the program approved for this fiscal problem by requiring reductions which It also requires th it all expenditures year. give the executive branch no alternative relating to support c'S military missions and th relieve it of the embarrassment be charged against tle appropriation for For South Vietnam, the committee has uS established a fiscal year 1975 ceiling on of beinz 'importuned by foreign govern- military assistance. merits ,for a continuation of aid. Under the bill all " scans defense arti- obligations of $1.28 billion. Within this 1,, t year, the Foreign Relations Corn- cies" must be valued at a minimum of ceiling, the committee has recommended $420 million for economic assistance, mittee made significant reductions in the one-third acquisition 'mat and all grants 1160 million for Public Law 480 corn- amount requested for military grant aid of such articles chair sed against appro- - arid also added a requirement that the priations for military eid; and modities, the amount programed by the eri,ire _program, Including the overseas Finally, the bill rer eals the basic au- i ' -executive branch; and $700 million in network Of Military missions, be phased thority which has eel netted Defense De- military assistance, the amount approved oat over a period of 4 years. Regretably, partment stocks to ts used EIS a supple- by both the Senate and the House in the teem ' the cominittee's view, the Senate,, mental source of milieiry aid. Department of Defense appropriations provisione-This year the committee re- ment of these prosisiees will have a salu- bill. The $700 million is compared to $1.45 by a narrow margin, voted to strike that The committee bs ieves that enact- sleeved it's efrorthe reducing the executive tary effect by makh 7t the annual mill- billion that was requested by the execu- branch's authorization request from $985 tary assistance appropriation a more ac- tive branch. Millieri to OM million, and added a re- curate measure or the actual cost to the The $420 million approved by the corn- satireneent ilia thientire military grant American taxpayer ' ' military aid dur- mittee for economic aid to South Viet- aid progra, other than grants for train- hie the phaseout per sid. nam is $330 million below the adrninis- _ eme, Ing, and all military missions be phased I wish to emphasi e that the phaseout tration's request. ent over a wrind of 3 years. During the of the military gran- assistance program For Cambodia, the committee estab- phaseout' period, the committee author- will, by no means, e suire a total cessa- lished a ceiling of $347 million. Within d linilted_eoncessional credits to coun- tion of all U.S. nil] i ary assistance ac_ this ceiling, the committee allocated $70 j'teS 'Where "giant programs- are being tivities. The foreign 'military credit sales million for economic assistance; $200 -terminated.program will contin e- so that American million for military assistance; and $7'7 ' lit was inflnivilege tonialethe motion arms and equipment ?ill be available on million for Public Law 480 commodities, ve ,CII. -t 5-8 lion requested for favorable credit tf developing fins to ' he- $ 5 Mil 'the amount programed by the executive What we 'call the inffitary grant aid pro- countries after they lave carefully ana_ branch. The $70 million recommended - grain t6'5 Minion. That is a reduction lyzed their security ii'leds within the con- by the committee for economic aid is $40 _ _ , Of WI Million. straints imposed h normal budgetary million below the administration's re- Aji& again talkingtO a. relatively empty considerations. Also grant aid for miff- quest of $110 million. rn e e svhich, rthink, is most unfortu- tary training will - till continue. And, In the committee's view, Cambodia has . ., nate as we"Consider-legislation of this after the phaseout i completed Congress long since ceased to have a national - . Approved For Release 2005/07113: CIA-RDP79-00957A000100030042-1 I. Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 S 17960 CONGRESSIONAL RECORD?SENATE October 1, 1974 econrinty, and the amount appeoved is in economic aid for Israel, which, by the dres of Congress and the American pea- Intended simply to sustain Cambodiretui- %say, was overwhelmingly supported ele that Vietnam, Cambodia, and Laos UI a cease-fire can be arranged between today as an amendment to the con- ;boulder a greater share of their own tlie Phnom Penh government and 14.1O Uniting resolution inancial burden and that our presence Khmer insurgents. The reductiatz in tlie It. also specified that, of the $300 mil- n Southeast Asia be further diminished. Cambodian economic request also re- lion in military credit sales to Israel, Thus, the Foreign Relations Committee fleet the elimination of ,what the commit- ale? million shall be forgiven and, thus, decided to make substantial reductions tee believes to have been padding in the be in the nature of a grant. The commit- :n many of the act's funding categories. proposed Prograne tee believes that Israel's serious CO-e I have already reported, Mr. Presi- The committee made a reduction of Wade siutation Justifies this additional tient that the committee has reported a $191 million in the request for military aesistance. In approving the special re- bill authorizing $2.5 billion for foreign aid to Cambodia. The war in Cambodia euirements fund, part of which may be tannery and economic assistance for is more clearly than ever a civil war, one used for Syria. the committee prohibited fiscal 1975. This represents a reduction In wbich the United States is. in sig- use of the fund for military assistance 14 22 percent, or $724.6 million from nificant measure, supplying the fortes and added a requirement that Congress the President's original request. These on both sales, Of the military ale pro. be notified in advance of significant corn- ravings were achieved by rather sharp grain proposed by the executive branch. mitments from the fund. i eductions in the following areas: some $300 million would have been used coneetencee One hundred million dollars from the solely for ,ameawaition, allowing con- Mr. President in its consideration of erogram of foreign military credit sales,I epresenting a cut of 18 percent. tinuatinn of the present extravagent ratethe foreign aid bill the Foreign Relations of consumption. The committee bellevee committee was Pour hundred thirty-five million dol- well aware of the serious that the $200 million authorized should problems afflicting our economy and of lers from the military assistance pro- be ample for military aid if some meas- the need for budget austerity. We b ram, representing a reduction of 44 e- ure of discipline is exercised by the gov- iieve, Mr. President, in recommending i ercent. eminent forces, which far outinunber the this bill to the Senate And $389.8 million from the Indochina. the committee insurgents. It will serve neither ow inter- has attempted to strike a responsible to.stwar reconstruction program, rep- resenting a cut of 41 percent. eats nor those of the local population for compromise between the need for con- the y e United States to continue to sustain tenuity in American foreign policy and The action taken b the Committee on Foreign Relations is fully consistent with both the wa,steful practices of the gov- the pressing need for reductions in the ernment forces and the arms needs of the fiscal year 1975 Federal budget, both of tie President's desire that Congress re- insurgent.s. which have been stressed by President gard no budget as sacrosanct and that itmake every effort to cut Government For Laos, the committee established a Ford. The comm that committee believes at S. calling of $100 million for the 1975 fiscal 3394. az recommended, represents a re- &sending in a responsible fashion. year. Within this ceiling, the committee spunsthie compromise between those : The committee has carefully examined a ha.s reCOrorrteniied $45 million for eco- objectives. te total foreign assistance budget. We nomie Resistance and $55 million for I." wee that it be approved by the e iminated all of the waste and padding military aid, representing reductions al: Se:iaLe. se could find. In addition, we made $11 million and $30 million, respectively. Now. Mr. Preeicient, let me just em- spending reductions where we believed frren? the eXecutive braiach's requeste. etiesize a little bit some of the work I that they could be sustained without ad- U.S. economic aid in Laos is used pri- oeneve went into this. I say this with verse effects on the foreign policy in- merely to support the economy of the some personal feelings. tt rests of the United States. No one can fleet capital city, Vientiane. The $45 inillion I have given, as one Senator, a great the committee for its generosity to approved should be sufficient to 1/CCOLL- deal ix attention to the subject of our olie program or one area of the world Plish that objective. On the militate economic aaeletarice program, or our When additional funds were added to , side, the committee could find no valid foreign assistance program, because I tite bill it was done only after close and Justification for the administration's think we need one, but we need one cereful scrutiny of established need. An ' proposal to provide more military as three ted toward the appropriate objec- anample of this is the committee s action ' sistance during a year of expected cease- elves. tc supplement the administrations re- fire than was provided during the part The Foreign Relations Committee has quest for security supporting assistance far Israel by $200 million. The original year, reported to the Senate a foreign aid bill request of $50 million was insufficient in saminx =ET AID for fiscal year 1975 which is prudent In Let me explain briefly the provinops its spending recommendations IL ht of the very great burdens on the . construe- relating to assistance to countries in the they in its policy statements and mind- Israeli economy following the October Middle East. Administration officiati>. in- f ul of (Jur humanitarian responsibilities wit and the continued flow of Russian eluding Secretary of State Kissinger in 3 WOm Id beset by poverty and growing aims into Syria and Iraq. have placed great stress on the import_ food stiertages. Mr. President the Committee on For- ance Of U. foreign assietance in fur- Le other words. I say with a sense of el tri Relations spent a great deal of time therIng peade in the Middle Ease The that this is a responsible bill aid effort on the sections of this act committee has demonstrated its support and this is a good bill. It deserves strong re1ating to Indochina. In face the com- of the administration's initiatives in the bipartisan support for the new and re- m etee's actions on the Indochina pro- region by approving all of the amounts spon.sible principles it enunciates and grams represent new policy departures in requested for assistance in that area. for the strong policy guidelines it has the ever-evolving economic and military And it has approved additional funds established for the administration of se nation in Southeast Asia. I personally ' for Israel. American economic and military imist- was involved in the committees work The administration's r as cencerning our aid programs in Vietnam, equest w for a afire- total of $907.5 million in assistance for As I have noted already, the Leos, and Cambodia and would like to adminis- nations of the Middle East?$807.5 mil- tration originally requested that the di ;cuss the legislation in some detail. it Hoe in allocations by country end $100 Congress authorize $3.2 billion for for- was clear to many members of the million for a Middle East special re- eign assistance. Such a sum would be Ccmmittee on Foreign Relations when quirements fund. excessive in view of our present drepeetic wt began to consider the administra- The proposed allocations y wary economic situation. In addition, the very tit n's economic assistance request of $939 , b cc were as follows: First, Israel?$50 mu- substantial increases in the president's million for Indochina and the $482.2 lion in economic aid and $300 million I fiscal )eeir 1975 request for military as- 'ninon military program for Cambodia n military credit sales; second, Egypt-- sistance over the previous fiseal year are and Laos that we had an obligation to $250 million in economic aid; and third, out of line with the actual needs of the do more than simply approve or reduce Jordan?$100 million in militate* gram recipient countries and the external thae spending recommendations. eid, $30 million in military credits aeni threats which they face. We had an obligation to begin to for- e/7.5 million in economic aid. The coin- And the eery large Increases requested initiate an American policy for Indo- mittee approved these allocation, and for economic and Military assistance to rh DA We have done this. It is now 21 iinthorized an additional $200 million Indochina clearly run counter to the de- months following the signing of the Paris Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 October 1, 1974 CONGRESSIONAL RT:CORD SENATE S 17961 which causes triple digit inflation. It is questionable which will come first--the total economic or military collapse of the Cambodian Government. The losers in this sorry amalgam of poor planning, waste, corruption, and military conflict are the people of Viet- nam and Cambodia?and especially the poor in cities and in rural areas. The refugee populations in both countries face unending economic hardship with the tragedy that those who manage to obtain resettlement may soon become refugees again or remain immersed in abysmal poverty and deprivation. . In light of the very depressing eco- nomic situation in Indochina and the failure of our Government to come to grips with the situation, the Committee on Foreign Relations adopted a series of six economic directives which are badly needed to maximize the benefit of our assistance. They are as follows: First. Organize a consortium to in- clude the multilateral financial institu- tions to help plan for Indochina recon- struction and development; to coordi- nate multilateral and bilateral contribu- tions to the area's economic recovery; and to provide continuing advice to the recipient nations on the use of their own and outside resources. Second. Develop in coordination with the recipient governments, other donors and with multilateral financial institu- tions a comprehensive plan for Indo- china reconstruction and economic de- velopment. Third. Develop country-by-country re- construction and development plans, in- cluding detailed plans for the develop- ment of individual economic sectors, that can be used to identify and coordinate specific economic development projects and programs and to direct U.S. re- sources into areas of maximum benefit. Fourth. Shift the emphasis of U.S. aid programs from consumption oriented ex- penditures to economic development. Fifth. Identify possible structural eco- nomic reforms in areas such as taxation, exchange rates, savings mechanisms, in- ternal pricing, income distribution, land tenure, budgetary allocations, and cor- ruption, which should be undertaken if Indochinese economic development is to progress. Sixth. Include in Indochina economic planning and programing specific per- formance criteria and standards which will enable the Congress and the execu- tive branch to judge the adequacy of the recipients' efforts and to determine whether, and what amounts of, continued American funding is justified. I recognize that there is no way to force the President and the Secretary of State to implement these proposals. However, I believe that unless they take action and seriously consider these guide- lines, the economic situation in Indo- china will further worsen. In addition, Congress will be unwilling to consider another substantial authorization for Indochina in fiscal year 1976 in the face of continuation of past practices and policies. The economic aid levels we have de- termined suitable for Indochina will not prove to be an undue hardship for Viet- Peace Agreement. We must wait no longer. In fact, it is almost 22 months. The administration's aid programs do not constitute an acceptable substitute for American policy for an area of the world where our Nation has sacrificed so much. To be sure, the provision of bil- lions of dollars to Vietnam and Cambodia represents a continued commitment to the preservation of the political and eco- nomic status quo in these countries?but little else. The programs and amounts proposed do not represent a positive or construc- tive solution to the problems posed by the failure of the Paris agreement to bring peace and a political settlement to Viet- nam. Neither do they represent an accept- able alternative to the never-ending tragedy of Cambodia civil war. And our billions do very little to alleviate directly the widespread human suffering which is compounded daily in Indochina. Frankly, as I said, we have no policy In Indochina today that looks 6 months Into the future, let alone 1 or 2 years down the'road. We are adrift. The Amer- ican people know this, the Congress knows this and certainly Communist insurgents throughout Indochina are keenly aware of this policy vacuum. But I do not believe that providing billions in foreign assistance constitutes an acceptable American policy in Indo- china. Nor do I believe that funding maxi- mum military confrontation indefinitely is what the American people want our Government to do. Nor should our billions of assistance be used to perpetuate corruption, oli- garchy, and ? 'este in the name of humane relief and reconstruction. The policy vacuum existing in Indo- china is a direct result of the preoccupa- tion of many American foreign policy- makers with urgent problems elsewhere In the world. This is understandable,- but it is still a factor. Congress shares part of this blame. Too often, past congressional actions re- lating to Indochina have constituted either simple acquiescence to executive branch polices or obstructionism. But we cannot be accused of obstructionism or acquiescence in our handling of the Indochina section of the Foreign As- sistance Act of 1974. We had a choice to make. We could have continued to fund these programs at the high levels recommended by the administration, knowing full well that these rftmds were not an effective sub- stitute for policies which might bring true peace to Vietnam and Cambodia. This would have been the path of least resistance. We could have continued to ignore gaping loopholes in the law which allowed the executive branch to greatly Increase Indochina funding in violation of the intent of the Congress. Instead, we acted with restraint and responsibility in reducing the flow of dollars to Indochina, specifying where the funds should be spent, closing the loopholes and propos- ing specific "economic and political pol- icies to be taken by the President and the Secretary of State which could lead to the cessation of hostilities and decreasing amounts of Americal assistance in the years to come. Even before we comidered the Foreign Assistance Act, the committee agreed to an amendment I had 3ffered to the State Department authorial :;ion bill, requiring the administration to develop a detailed plan for future economic and military assistance to Vietnarr hat would include a specific timetable for the phased re- duction Of such assistance. I realize that the administration be- lieves that the restri,:tions contained in this bill on aid to Imiochina amount to unnecessary congres5i onal interference in an area of executive branch jurisdic- tion. However, I wan to remind my col- leagues that the Committee on Foreign Relations took this unusual step of de- priving AID with bro:td program flexibil- ity in Vietnam in order to assure : that American aid dollars ',ere spent for those who needed them roost and on viable economic projects which would result in tangible benefits for the people. In the past, great portions of our funds were used for consumable :7-erns related to the war effort, with far tee few dollars going for capital investmen is of a lasting pro- ductive nature. While we recognize the severity of our budgetary and program restrictions, they are warranted Ixr con- tinued reports of a lack of adequate plan- ning, waste, and mismanagement of U.S. assistance funds in Vietnam. It was the committee's judgment that the administration's Fiscal year 1975 aid Plans for Vietnam o iffered little from past strategies. Uridee the title of "vcon- struction and devel mment," the Con- gress was asked to approve large sums of money in order tr) fill the trace and budgetary gaps of a faltering Vietnam- ese economy. I do not doubt thm economic solvency is critical to the military capabilities of the South Vietnamese Armed Forces. And I am convinced that ihere can be no real reconstruction and development in a country whose national economy has Vi- tally disintegrated. Unfortunately, roliance on massive foreign exchange groats and crisis man- agement rather than serious economic planning have characterized the think- ing of both the Vietnamese and the American officials. Nor has there been any serious Americao initiative to have the South Vietnapase undertake the type of structural reforms in their eco- nomic life which will enable them to achieve greater self-sufficiency and a more equitable dist ibUtion of economic benefits to their people. The American program has been superimposed on an economic structure still geared to mar sive dollar flows of the past and the puo:ence of a large U.S. military establishmcht. The Vietnamese economy is in a precarious siimation today. The situation in Cambodia is even more alarming, with the near total col- lapse of the Canotaldian economy now taking place as a result of the heavy fighting and the inability of the Lon Nol government to prevent the separation of heavily populated a eas such as Phnom Penh from rice growing areas and sea- newts. The CambocVan capital is under- going slow ecoucmic strangulation Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 S 17962 CONCRESSIONAL RECORD ? SENAT:i October nem. Cambodia and Laos. I recognize that our spending recommendations are austere. But austerity is needed to ad- vance economic self-suelelencY and structural economic reform. Without It there is no other way to begin what I am sure will be a painful political and economic process. We have an obligation ?a moral obli- gation?to help the people of Indochina rebuild their war-torn countries. But somehow we seem to have lost sight of this worthy goal. The process of recon- struction and alleviating human suffer- ing is a long way from our current pro- gram which now only postpones through reliance on the generosity of America the hard economic and political choices which the Vietnamese and Cambodians have to make. The legislation before us provides the adminietration with a clear anti Precise way to reorient our foreign economic assistance in Indochina. At present, beyond the infusion of American capital into the faltering econ- omies of Vietnain and Cambodia, the United States refuses to adopt policies which deal with the two most critical Issues in Indochina: The failure of the Paris Agreement to halt the fighting in Vietnam; and the approaching collapse of the Lon Nol government In C'embodia. After years of war, the struggle con- tinues. After millions of words about the "lessons of Vietnam," we ignore the most Important lesson that political battles cannot be resolved by force of arms. We learned this lesson at great Jeer's flee to our Nation. Yet our policymakers now are engaged in a course of action which does not recognize this basic reality of Indochina. The Malted States has em- barked upon a comae of encouraging the funding of maxinnun military confron- tation, hoping that somehow those we are supporting can Prevail. By dint of unlimited U.S. funds, the Thieu government has managed to hold its own, and the Lon Nol government still manages to exist, though its posi- tion is steadily deteriorating. But what about the future? How can the policy of military confrontation be sustained when it is clear that neither the Congress nor the American public are willing to fund the wars in Vietnam and Cambodia at high levels for the indefinite future? The Ford administration must open its eyes to the political reality in America and the military reality in Southeast Asia. The Secretary of State has said that, as a signator of the Paris agreement: The United States committed itself to strengthening the conditons which rask_e the cease, fire possible and to the goal of the South Vietnamese people's right to se.f de- . termination. I share Secretary Kissinger's assess- ment of our obligation and commitment. But I know that we cannot accomplish ? the goal of achieving a cease-fire through fueling continued military confrontation. And as to the noble cause of Vietnamese self-determination, this can be had only if the fighting stops and a political set- tlement is allowed to evolve which will reflect the realities of the current Viet- namese scene. I receanize that a large portion of the blame for the failure to obtain a real cease-ere in South Vietnam rests cue the North Vietnamese and those who supply Hanoi with arms and materieL But 21 months after the cease-fire, the issue now is not who violates the cease-fire, but how we can help bring about a new cease-fire and stop the incessant warfare which has. since January 1973. killed more than 13,500 South Vietnamese and 51 North Vietnamese and Vietcong. Unfortunately, I have received no in- dication, either privately or Publicly, that the United States is currently en- gaged in any efforts whatsoever to re- negotiate a cease-fire and peace settle- ment in South Vietnam. Once again, our leaders look mistakenly to the battlefield for a solution which must be found at the conference table. A policy which amounts only to large doses of military assistance and rhetoric from Washington is doomed to failure. In reality, it is a. nonPolicy. It is a fen- t asy to expect that somehow the Paris Agreement will work without further ef- forts to make it work. The problem will not go away and no Vietnamese parte to the Paris Agreement will abide by Its terms unless the United States and other nations are willing to begin inten- sive diplomatic efforts to scale down the flow of supplies and get the Parties to the conference table once again. As I stated earlier, the military situ- alien in Cambodia is even more preca- rious than in Vietnam. Ames-leans serv- ing in Cambodia at the highest levels and visitors who come away from the be- leaguered capital of Phnom Penh report that it is only a matter of time before the Lon Nol government collapses totallY and completely. A continuation of the military struggle In Cambodia is a hope- less exercise In futility, Yet our Govern- ment seems unwilling to recognize this fact and fails to use all of its eleills and talents to bring to the conference table all tile parties to the conflict. We cnntin- ;lowly hive avoided any official or pri- vate contact with the Khmer insurgents as we witnessed the economic, military, and political position of the Lon Nol gov- ernment disintegrate_ It may be too late to reverse the process and avoid a total collapse and overthrow of the govern- ment before negotiations can begin. Aware of these many factors govern- ing the political and military situation in Vietnam and Cambodia, the Foreign Re- lations Committee has urged President Ford and Secretary saiesinger to under- take certain measures that we believe may being peace to Indochina. Let me read the five steps voted by the commit- tee: First. Begin negotiations with repre- sentatives of the Soviet Union and the People's Republic of China toward a mutually agreed upon and rapid deesca- ;anion of military assistance on the part of the three principal suppliers of arms and materiel to all Vietnamese and Cambodian parties engaged In conflict. Second. Take all necessary measures strongly requesting that the Government of the Kilmer Republic enter into nego- tiations with representatives of the Khmer Government of National Union which will lead to an immediate cease- 1, 1974 fire and political settlement of the con- flict. Use all available means to establish contact with the Khmer Government of Notional Union and to urge them to par- ticipate in such negotiation. The United States should urge all Cambodian par- ties to use the good offices of the United Notions or a respected third country for the purpose of bringing an end to hostili- tits and reaching a political settlement. Third. Utilize any public or private fo elm to negotiate directly with repre- sentatives of the Democratic Republic of VI Allem, the Provisional Revolutionary Government and the Republic of Viet- nam to seek a new cease-fire in Vietnam and full compliance with the provisions of the Paris Agreement on Ending the W ir and Restoring Peace in Vietnam. ?aourth. Reconvene the Paris confer- en w to seek full implementation of the provisions of the Agreement of Janu- ar', 27, 1973, on the part of all Vietna- m se parties to the conflict. seifth. Maintain regular and full con- sultation with the appropriate commit- ters of the Congress and report to the Congress and the nation at regular inter- va, s on the progress toward obtaining a tot al cessation of hostilities in Indochina aril a mutual reduction of military as- slisance to that area. The only possible way to stop the fight- ine in Vietnam and Cambodia, the only way to reduce the large expenditure of American aid dollars which currently support the war efforts, is through the process of political negotiation.- This is what the Committee urges and recom- mends to the President and Secretary of Sts te. We ask for negotiations at mane diferent levels and in many different forums. But the process must begin soon, nt is clear that the Soviet Union and the People's Republic of China are criti- cal of this negotiating process. They are the. principal sources of economic and mlitary assistance to North Vietnam. It makes little difference which out- side power or powers give more aid to Its Vietnamese client. The issue is how all three aid suppliers can mutually agree to lmit their military assistance in a way to ;top the fighting. I recognize that this will not be an easy objective to attain. However, the Soviet Union and the Peo- ple's Republic of China appear anxious to naintain the improved relations with tilt United States and the many eco- nor ale benefits which are derived from detente. It 13 virtually important to in- form these countries most strongly of ow belief that their cooperation in Malang peace to Indochina is a critical element in the further normalization of relations with the United States. In this cornection, we must also convince them of inn* readiness to allow the Vietnamese and Cambodian people to work out their oral destiny, provided Hanoi's allies will do; lie same. If negotiations are to begin and then be. successful, they must involve the di- me; and personal participation of Sec- retory Kissinger. I do not believe that he has given the situation in Vietnam and Carnbodia the personal attention it me_its. I say this with full understand- ing that he has been preoccupied with a very dangerous situation in the Middle Batt and in the eastern Mediterranean, Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 October 1, 1974 CONGRESSIONAL RECORD ? SENATE wa o co n m Or iv at he has The policies of Ei.,_hard Nixon brought been able to achieve in Other areas Of about the withdra v-v al of American troops the world where he has invested his time 4 long years after he took the oath of and attention. But he and the Depart- office. But the flglrng still continues and merit of State now InUat tnrn their at- our Nation still i., spending billions of tention Once again to Indochina. Fur- dollars in Southeast Asia as yet another thermore, President Ford must involve President urges th, American people to himself intimately in this process. stand firm and support policies which Finally, in advance of any negotia- mean only more it,fiting and destruction tons, the United States must make con- in Indochina. tact with the leadership in Hanoi arid This is not a murse which I support. the leaders of the Provisional Revolu- This is not the course the Senate should tionary Government in South Vietnam. support as the ele 'led representatives of There is absolutely no reason why the the people. I urge adoption of the corn- United States should not maintain more mittee's approach to the development of regular contact with, the North Viet- American policy tc.vard Indochina as the namese. I call upon the President to take only viable path if peace in that trou- this step. In the Cambodian context, bled part of the A orld. there is little chance for suceessful nego- Our proposal dote not represent a cop- tiations unless our government makes out. It does not epresent retreat. It Contact with the Khmer insurgents and represents respons I 1e planning and or- Prince Norodom Sihanouk. We are de- ganization of our aF Astance. luding ourselves that a negotiated settle- Let us seek tin. path of negotiation merit is possible in Cambodia without once again. Let us stop this official self- early and high level contact with these delusion which saz,'3, "just a little more, elements of the Khmer insurgency, and victory will be i I was personally dismayed that Presi- dent Ford has chosen the path of opposi- tion to what the Committee on Foreign Relations has done in reference to Indo- china. I hope that opposition has by now , moderated. Mr. President, I am saddened that he has not seized the opportunity to an- nounce a new departure in American policies in Indochina. Instead, he has urged the Congress to increase American economic and military assistance to Viet- nam, following the course of his pred- ecessor. I have supported the administration in the field of foreign policy when I thought It was doing the right thing. That, in- deed, has meant that I have supported a good deal of what this administration has wanted in the foreign field area. But I will not support any amend- ments offered to restore the aid levels the committee has reduced. This would be fiscally irresponsible and detrimental to the chance of a true political settlement In Cambodia and Vietnam. It is unfortunate that neither the President nor the Secretary of State has recognized what the Committee on For- eign Relations was trying to do in its treatment of the Indochina portions of the Foreign Assistance Act. I hope, again, may I say, that we have their support in this bill. We were saying to Mr. Ford and Mr. Kissinger that we recognize a serious Mr. President, I and here as one who went through 4 years of the kind, of self- serving rhetoric, and I supported the pol- icies of that achnirjstration. I have paid my price. I heard again and again, "Just a little more and vi tory will be certain." Mr. President, we have heard that since 1961?"Just ,a little more, and. vic- tory will be certain' Let us turn our ai.;tention to obtaining political settlements in Indochins, so that we can end the expenditure of billions of dollars in Vietnam arid Cambodia while widespread starvation and poverty rage throughout the developing world. I know this task i not easy, and I am not one to pretend f or a moment that it will be accomplished quickly. But it is absolutely essential that we lend every effort toward the diplomatic and politi- cal solutions which are the only solutions that we ought to bc giving our attention to. Commonsense, if nothing else, should tell us that our policies need to be re- thought and options reevaluated after years of fruitless war. Mr. President, a .1:ttle later I am going to be offering an an- ndment that relates to the Portuguese African territories. It is a policy statemen I. As a matter of fact, I doubt that there be any objection to it at all. That amendment merely calls upon the President and the Secre- tary of State to take actions that will make clear the U.S. support of Portugal's policy vacuum caused by rnany factors, policy of independel: ce for African terri- and we were ready to make our contribu- tories. This amendvient is supported, of tion to the formulation of American pol- course, by the respc,,,sible officials in our icy in Indochina. We were offering to Government. cooperate and to share in the responsi- Mr. President, I -,hall also offer an bility in ending the nightmare of con- amendment that re' ittes, as a statement tinued conflict in Indochina. I refuse to of policy, to assistance to Africa. It has sit back and help perpetuate the delusion been my judgment ihat in our .foreign that massive American military aid some assistance program u are have had no real how will end the fighting, policy toward Africa.. We have had some I sat at Lyndon Johnson's side during financial assistance _ a moderate and in- , his years of agony over Vietnam. I sup- deed modest degree. 3ut we have had no ported his policies because I believe they policy. would bring peace to that country and Mr. President, 1 l'.. Ave an amendment allow its people to determine their own at the desk that is known as the Hum- political destiny. But President Johnson's phrey-McGee ament intent on Portuguese policies did not bring peace to Vietnam. African territories.: will send it to the S 17963 desk now. and I am not asking for its immediate consideration because the Senator from Idaho has an amendment which is pending, but I ask to have this amendment printed. It is a statement of policy on assist- ance to Africa. We shall take that amendment up tomorrow. The PRESIDING OFFICER. The amendment will be received and printed. Mr. HUMPHREY, So, Mr. President, I have tried to lay before the Senate, on behalf of the Committee on Foreign Re- lations, which recommends this bill to us by a majority of 11 to 5, the arguments for S. 3394. I consider this piece of pro- posed legislation the most responsible effort that we have made in recent years in the area of foreign economic and military assistance. I yield the floor. Mr. McGEE. Mr. President, as the Senate begins consideration of the For- eign Assistance Act of 1975?S. 3394?one can expect a debate which will be marked by emotional appeals either to reduce drastically the funding levels approved by the Committee on Foreign Relations, or to abandon our foreign assistance pro- grams altogether. The traditional foes of foreign assist- ance in the Senate will seize upon our domestic economic difficulties as compel- ling reason enough to abandon the inter- national community. We will be told that the largess of the United States is already too great. Under this guise of concern for the American taxpayer, we will be asked to cloak ourselves in the indifference of Isolationism. While the Congress of the United States is under considerable fiscal re- straints this year, I would hasten to point out that the Committee on Foreign Rela- tions has responded in a meaningful and responsible manner to our domestic con- cerns. S. 3394 contains an authorization level of $724.6 million less than the executive branch's request, or a cut of 22 percent. No other authorizing com- mittee in the Senate has cut so deeply into proposed fiscal 1975 programs before floor action than the Committee on For- eign Relations. However, those of us who are members of the committee and who support this bill are fully cognizant that we bring this legislation to the floor after slashing the request to a bare-bones level. Those of us who supported reporting S. 3394 to the floor realize that while this legislation will allow us to pursue an effective foreign policy, further cuts will only undermine our ability to do so. Thus, it is in this context that I want to address myself to the issue of what the United States is actually doing in the way of foreign assistance, particularly in the area of economic development. I do so as an effort to clarify any misrep- resentations of U.S. largess which will most certainly be argued throughout the course of debate of S. 3394. Since 1949, there has been a distinct downward trend in foreign economic aid programs when seen in relation to total Federal budget outlays and the U.S. gross national product. The figures recently reported by the Organization for Eco- nomic Cooperation and Development on Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 ? Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 S 17964 CONGRESSIONAL RECORD?SENATE October 1, 1974 official development assistance are some- what startling when we compare U.S. efforts to those of other free-world in- dustrial nations For purposes of this debate, Offic1-1 Development Assistance con.lets only of grants and loans at con- cessional terms which are extended to developing nation'. In 1949, when the _Marshall plan was Implemented. foreign economic develop- ment assistance nmounted to 11.5 per- cent of the Federal budget Teday, this share is less than 1.5 percent. In 1949, economic development staist- ance represented 2.78 percent of our gross national product, and has moved downward ever since. By 1973, the figure had fallen to 0.23 percent The declining trend is also evident when measured in relation to the eco- nomic assistance provided by other in- dustrialized nations in the free world. Of the 17 member nations of the De- velopment Assistance Committee? DAC?the United States ranked set ond in 1964 in value of economic development aaaistance expressed as a percentage of erten national product. Since then, the downward drift has been steady. Accord- ing to OECD figures, our position had dropped to 14th by last year. In 1963, some 62 percent of the total dollar value of aid from DAC country sources came from the United States. This share has also fallen steadily. In 1973, while the value of U.S. economic ski still exceeded that provided by any one of the other DAC member nations, I t represented 32 percent of the total value of DAC assistance. It is interesting to note what other oDAfacCiaitanidnteionsvaneldopamreeandtolasntgshiseitniarnatchiede ifinwam(vim_y of Parkon to. the United States. First. de- maln rge spite economic difficulties of much greater magnitude than our own, other DAC nations have restated their deter- mination to make all possible efforts to developing countries and to improve the terms of their aid Other DAC nations have also expressed their determination to extend relief assistance in various forms to the poorer developing countries which have been most seriously affected by the prices of oil and other essential Imports and, hi channeling their aid, to give priority to countries whose needs are the greatest and most urgent. It is interesting to note that. In 1973, the poorset nation in Europe, Portugal, contributed more than three times what the United States contributed in official development assistance as a percentage of _ gross national product. While the U.S. official development assistance in 1973 represented 0.23 percent of our GNP, Portugal's contribution was more than 0.70 percent of their GNP for official development assistance, both bilateral and multilateral. Other nations which contribute a lareer share of their gross national prod- uct to official development assistance than the United States include France, Sweden, the Netherlands, Belgium. Den- mark, Norway, Australia, Canada, the United Kingdom, the Federal Republic of Germany, New Zealand. and Japan. Particularly noteworthy are the fol- lowing observations by the OECD: DAC Members as a whole moved away from the 0.7 percent of GNP target which the United Nations Iss.s recommended that each donor achieve by 1075. Dee Member" have oaken various po.itiong with rerard LO this argot. Four of them (the Netherlands. Bd - g111111. Sweden, and ,Norw:k .1 ha ? c accepted it without reservation; eight (Australia, Den- mark, Frauce, Canada. (lerniciny. Japan. New Zealand. and the United Kingdom) have ac- cepted a date after 197f rknd ave nave not Fetheeribed to it at all Eight DAC Members act leved some prog- ress in their aid effort sia measured in terms of ODA (Office Development Assistance) to OSP ratio?Austria, Denmark. Germany, Italy, Japan, Norway, New Zealand, and Sweden Flut a ran In this ratio for some of the major donors (France. the Netherlands. the United Kingdom. and the United Mates) outweighed this progress. and the DAC aver- age declined. In parlictdAr, the United States, which IS the largest donor (32 peroent of DAC Members combined ODA in 1973). re- corded a fall In its provision of ODA. not only In relation to 0141'. but also in absolute value. Our largess as a nation also pales in comparison to the fact that with only 6 percent of the world's population, the United States consumes 30 percent of the rarth'S resources By virtue of this :act, the leas developed nations have ever right to expect the United States to do more in providing official develop- ment assistance. Yet, we are doing less. In essence, while our economic devel- opment assistance programa are aimed et helping those countries less fortunate than ours, we also have a vital stake in the success of these efforts over the long term. Today, we exist in a very fragile in- ternational economic system. A uni- lateral withdrawal from the world on the part of a major industrialized na- tion, such as the United States, can only provoke a further deterioration of this system. We would pay heavily for the ensuing chaos as the interdependent nature of the global community has never been more evident than now. The A can oil boycott of last year and the con- sequences of a fourfcild increase in petro- leum prices demonstrates that the United States cannot insulate Itself from dependence upon the international com- munity if our own economic viability Is to be maintained. Therefore, if opponents of foreign as- sistance are serious in their efforts to doom the program, then it is incumbent upon them to explain to the American People and their constituents the conse- quences of this action. If we withdraw Into isolationism, then it should be abso- lutely clear that we do so fully cognizant of the economic peril we bring upon our people. While our present domestic eco- nomic situation is working a hardship on many Americans, will we ask our people to endure much greater suffering as a price for the folly of the U.S. Senate should we reject S. 3394. Thus, the fate of S. 3394 is directly tied to the question of whether the U.S. Senate can actually function, or is even capable of functioning, as a respon- sible partner in the foreign policy formu- lation of this Nation. The price of world stability and peace does not come cheap- ly. Yet, if we are no w g pay s prim , the inevitable consequences will be much more costly for all of us. AMENDMENT NO. 1923 Ms CHURCH. Mr. President, I call up my emendment No. 1923, and ask for its burr edi ate consideration. Tile PRESIDING OFFICER. The am* edment will be stated. The second assistant legislative clerk rent) as follows: At the end of the bill add the following new section: roR13691 ABSMTANC2 cITLING SE:. 34. Notwithstanding any other pro- vision of law, the total amount which may be ?Weeded during fiscal year 1975 under the Pore_gri Assistance Act of 1961, the Foreign Mliii ary Sales Act, the Agricultural Trade Dew loprnent and Assistance Act of 1954. and section 401 of Public Law 99-367 providing military assistance to South Vietnam, may not exceed $5.000,000,000. Tae PRESIDING OFFIt-eat. The time on this amendment is limited to 40 min- utes, equally divided. Who yields time? M BILLION CIMINO ON MOLL TZAR 1915 IPOREIGN am IV:1;. CHURCH. Mr. President, I believe tha; most of the Senate recognizes that the aggregate U.S. foreign aid program, which totals in excess of $8 billion as proposed by the executive branch for fe- cal year 1975, bears very little relation to the high-blown claims which are made for it as being a carefully modulated con- trit?ution to international peace, order, ant justice. To be sure, a certain num- ber of foreign assistance activities can be iustified; but for the most part, the U.E. foreign aid program as it is now con- stituted is best described as the coagula- tion of old assumptions, outdated poll- cia4 bad habits, and bureaucratic iner- tia At a time of such serious economic cot ditions in our own country, Congress sinaPlY cannot countenance such a vast and ill-considered expense as has been ',reposed by the executive branch. I have therefore introduced an amend- ment to S. 3394, Mr. President?amend- ment No. 1923?which will serve the very useful purpose of keeping a lid on for- eign aid spending during the current fis- cal year. My amendment relates to all foreign aid provided under the authority of the Foreign Assistance Act, under which economic grants and loans and military grants are made; the Foreign Military Sales Act, under which military credits are given; Public Law 480, un- cle which grants and loans are made for boll economic and military Purposes; ani, finally, the military aid program in So eth Vietnam, which is financed this year through the Defense Department appropriations bill. In short, my amend- ment concerns all U.S. foreign aid, with but two exceptions: the Peace Corps and Anierican contributions to the interne- ticnal financial institutions such as the W erld Bank. What my amendment does is to place a ceiling of $5 billion on all fo reign aid obligations during fiscal year 1175, with the two exceptions I cited: the Peace Corps and international financial Institutions. Now, how does this $5 billion ceiling Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 October 1, 1974 relate to the expenditures which would be made without such a ceiling? Mr. President, I ask unanimous consent to have printed in the lIEC0111) at this point a table which answers this question quite clearly: Such a table Isalso &Venable to Senators on their desks. There being no objection, the table was ordered to be printed in the Ra:coaa, as follows: CHURCH AMENDMEN? T ProvisiOns: Places a $5 billion ceiling on total P'71975 foreign aid obligations (except for the Peace Corps and 17.S. contributions to the 'international financial institutions such as the World Bank). - Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 CONGIUSSIOTsfAt 1 CO-11.1)'--- :SENA:It 4 Fiscal year 1975 (as Fiscal year Fiscal mg thus far 1974 (actual) (proposed) the ;eilate Economic: AID - Public T_aw 480?. Military: Erants - Credit pales $1,929 $2,885 1,152 996 I. 1, 679 2,474 325 555 $2,695 996 1,289 455 --- .. 6'084 6,910 5;435 I goes not include 2 expenditures of a 1-time nature: emer- gency aid to Israel and emergency drawdown for Cambodia. . , Effect of amendment: (1) Reduces spending by an additional $43$ million, whileallowingEnie cut i v e BBranch'!3Q331.e Ilexiby in determining where tdo econairk* can 'best be rile& ' J) 1mitS spendin4 to the It' 474 level aPproximatefy), thereby holding the line against thcinfiationayx spiral. 'cirt11. Mr Pr?dent, not colinting the Peace Corps and -contribu- tions to the international financial In- stitutions, which are not covered by my ceiling,, the foreign aid program p poged by the administration totals a.; Freria, that, $0.9 billion request the 8enate has 'aIreadV made reductions totaling approximately $1.45 billion. These cuts came in two places: in mili- tary aid to Vietnam, which was cut $0 znalton,in the DO appropriations bill;; and anether $760 inillion-in military and economic aid whichhaa b,een eliminated thus far from the bill POWrbefore u s. These reductions, totalling $1.45 ion, IeaYe 41,P, year 105 program at a What my amendment will do paging a eeiling Of $5 billion, Is to require a further savings ofover $490 million$435 b ,to exact. level of? approximately" $5.45 billion. Where these rectuctiens, will b- made will he .left to the AdrnipiStratio: to decide. Allowing the executive branCbranchthisd _cretion, Mr. President, Is, I arri ie ft.a.novagage, contrary usual ' Pnt,in this case 1-bleilieve al- lowing _ some executive fieidbility is justified. With my amendment, what the Senate Will have done is m6.9akbeile. total cut of $1.9 billion?from $6.9 down to $5 billion?but, to specify only $1.45 million of those c the administration To id bra. ilThowead flexibility In determining where the final $435 million Insavings could best be achieved, out total cost billion. This, I believe, is a reasonable and arid think justifiable concession to ex- ecutive flexibility. Briefly again, Mr. President, I shall summarize the overall effect of the l Approved For amendment: 'the- ainiaration pro- posed foreign aid Programs for fiscal year 1975 totalling $6.- billion, not count- ing the Peace Coma and the interna- tional financial instil Aions. The Senate thus far has made sr( ,-;ific cuts of $1.45 billion. My amendme rt would reqt.ire a further reduction of S,L35 million, bring- ing total expenditures town to $5 billion, but would allow the ad ministration flexi- bility, in determining where that final $435 million in sa,vin4::; will be achieved. Mr. President, t sli., dd point out that $5 billion Was the l at of foreign ex- penditures actually it-,ade during fiscal year 1974. Thus ttN amendment, in addition, to saving ,.:ver $400 million, would serve to make e -lear statement to the Arberican people ',hat the Senate is prepared to take sub tantive action in the fight against the I liationary spiral? that at least vie are ttr Tared to hold the line this year againsi a further expan- sion of the foreign atl. program. Unless the amendrnont is adopted, Mr. President, we will be I tifying a program that is, substantially lk :ger than the cur- rent level of apenclilii_i-rthat is to say, substantialfy larger the amount spent on these Very Programs during fis- cal 1974, One ,would njc that, with the economic problems tI?,t face this coun- try, with an infietioi that is now run- ning out of control, Wt h a Presidens who Is asking that the budget be balanced, the very least the Set. ,.te might want to do would be to hold the line against ex- tending foreign aid above last year's level of spending. There is little HIM that needs to be said, Mr. President confused and misguided purpose oil much of our vast and largely outdate(- foreign aid pro- gram is now manif ast, The sad state of the American econom t is clear for every- one to see. The only ,ii.e.stion which re- mains is whether Cot :Tess, which holds the purse strings of Fi.e.ral spending, has the will to take corre,-.tive action. I believe that my aidendment, by plac- ing a responsible limit, on foreign aid ex- penditures, constitute, such action; and I urge its adoption b:,- the Senate today. Mr. President, I reserve the remainder of my time; but I say to the distinguished manager of the bill th t I am prepared to yield back My time, :f he is prepared to yield back the remaining time available to him, in order that :ve might expedite a vote. The PRESIDING ( OFICER. Does the Senator from Minneta yield back his time? Mr. HUMPHREY. r. President, I will take a moment or ta, k, in which to state the case. Mr. CHURCH. In t IA event, Mr. Pres- ident, I withhold Ivh, .ever time may be remaining to me. Mr. HUMPHREY. ilfr. Presidem, the point I should like L. make is that we have sought?and no one has been more vigorous in this than the Senator from Idaho--to get congre,,donal control over these authorizations aid appropriations. For example, as I redollect, the Senator from Idaho subniitt: I an amendment last year that gave Congress, in lag year's bill, authority 7,0 get control, over the recycling of fund and not to leave it in the discretion of the executive. priation bills. Under the approach taken Release 2005/07/13: CIA-RDP79-00957A000100030042-1 S 17965 rt the amendment proposed by the Senator from Idaho were agreed to, it would result in a $435 million cut in U.S. bilateral assistance for fiscal year 1975. I simply have to ask the question: Where does the Senator think that the administration will make those cuts? They are not going to make any cuts In Indochina, because they already want more. They are not going to make any cuts in military assistance, because we have -already cut $45 million out of military assistance. I think we are going to see the cuts made out of African pro- grams, which are so minimal. We are go- ing to see the cuts made out of the Public Law 480 programs. r really believe that, no matter what the desire may be of the Senator from Idaho for further reduction, this blanket authority is simply saying to the Presi- dent or to the Secretary of State or to the Aft Administrator, "Von go ahead and now decide where you want to take off another $435 million.? It is really turn- ing back everything we have tried to do. We have set country ceilings in this bill. We have denied transferability in this bill. For example, we have placed in this bill, under military assistance, that even If there are excess articles taken out Of the Department of Defense, they have to be charged to the military assistance program. Up until now, substantial amounts of so-called excess military equiPment were shipped here and there at ridiculously low cost to the military aid program. They just declared it excess and said that we really did not need to charge very much for it. I wish just to state the argument that this amounts to giving up a large share of congressional control over how our bilateral assistance money should be spent. The ceiling that is set is $435 mil- lion lower than the committee recom- mendations, and it leaves the executive branch to decide where the cuts are going to be made. I think that is the wrong policy, even though the objective may seem desirable to certain Senators. I believe we have been a responsible committee in cutting as we did. We cut this bill $724 million; in military assist- ance grants and credits we cut it $535 'ninon. We made a 22-percent reduction in assistance overall. We have, I think, demonstrated the kind of fiscal disci- pline and responsibility that was asked for. No other authorization has come out of any committee of this Congress with a 22-percent reduction, and we have per- formed that. I believe it ought to stand. STATEMENT CONCERNING THE CHURCH AMEND- MENT RE CEILING ON OBLIGATIONS FOR FOR- norr An) Mr. President, the amendment offered by the Senator from Idaho would put a ceiling of $5 billion total obligations for several specified foreign aid activities? AID economic aid programs, the military grant and credit programs, and the Pub- lic Law 480 program. This is the wrong way to go about cut- ting foreign aid. If the Senate wants to cut the programs covered by the Sena- tor's amendment, it should reduce the amounts in this authorization bill and in the foreign aid and agriculture appro- S 17966 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 CONGRESSIONAL RECORD?SENATE October 1, 1974 In the Senator from Idaho's amendment. the Senate would, in effect, pass the buck to the President as to where cuts Were to be made. This is not responsible deci- sioiunaking. This is decision avoidance. For a number of years the Senate hae slowly, but surely, taken steps to regal, n Its proper role in the setting of national policy. The Senator from Idaho has often spoken eloquently of the need for the Senate to reassert itself in order to re- store a proper baiance between Congress and the executive branch. But the amendment goes in the opposite direc- tion. It would say to the President: "We think that no more than $5 billion should be spent on these programs, but we do not know enough?or care enough-- about where the cuts should be made. You do it." In this bill the committee has taken a number of important steps to take away discretionary power that Congress In the past, has given to the President over foreign aid matters. The adoption of this amendment- would be contrare to the basic thrust of this bill And, oi greater significance, it would be con- trary to the spirit of much that we have tried to do to restore the integrity of this body over the last several years. forone, do not believe that we should give the President discretionary author- ity to nullify decisions that Congress takes in authorizing and appropriating funds for specific foreign aid activities If Congress decides to appropriate x amount for food assistance, for exemple, that should not mean "x minus what- ever amount the President wants to cut out." If Congress thinks that a foreign aid activity should be supported at a cer- tain appropriation levet, then it should stand by that decision. The Senator from Idaho's amendment would give the Presi- dent the power to pick and choose which programs to fund at some lesser level than the amount Congress authorizes and appropriates. Under the Senator's amendment the President could, if he chooses, make the supporting assistance or military credit sales programs bear much of the burden of the additional cuts necessary. Sen- ators Can appreciate the effect this could have on a country like Israel_ We simply do not know what the ramiecations would be from the Senator's amendment. /n this bill we are dealing only with authorizations for a portion of the over- ail foreign aid program. We have made significant cuts. I am confident that the Appropriations Comraittee will recom- mend further reductions in programs al- ready authorized?as well as those in this hill But the way to make further reduc- tions is by offering amendments to re- duce the specific authorizations in this bill and specific items in the foreign aid appropriation bill. The pending amend- ment is not the appropriate way to go about it. I hope that the amendment will be rejected. Mr. President, I ask unanimous cop- sent to have printed in the Reseal) a "Summary of the Impact of a Ceiling Reduction on all foreign aid programs:' Reduction on all Foreign Aid Programs." There being no objection, the summary was ordered to be printed in. the Amon, as follows: see:smear or sae rare= or a CLUZING Bz- oUcrz? OF ALL PoRZIGN AM PIIIOGEAMS 1. The reduction is totally aebilzary and without reference to the merita of the many and varlotis activities included in the cate- gorization 2 The Congress has full opportunity to oonirider the merits of individual appropria- tion requests. Imposition of a blanket ceiling reduction subsequent to Congressional re- view of thaw programs obscures the merits r)feacti and undercuts original Congressional intent 3. The reduction applies to an "apples and oranges" calegorlastkin of programs cutting wrest separate authorization bills, program purposes and organizational jurisdictions. It would, tberefeee, be exceedingly difficult to administer in a rational manner 4. In the context of deep reductions al- ready taken in individual appropriation re- quests, the additional 11435 million cut would Tall most heavily on: Development assistance to small fanners and the rural poor in countries facing major food shortages and possible famine; Research on Improving agricultural pro- duction. maw:ling *Ceres to Improve the ef- fect ivenesa of fertilizer. seeds and ptiticides and thereby cope with the world food crisis; Harnanttaria.n assistance to the Salielian nations In their struggle against drought, famine and the oegreciation of their fragile envIronnient; Assistance to poor countries in their ef- forts to deal with the critical problem of un- constrained popitlatipn growth and to pro- vide iteen with :he basic family planning services Assietsnee to 13.5, and overseas private and volunteer organteatiois designed to engage these liostitutione in the development proc- ess- and tap their conliderable skills and ex- Food coral1U.)01ms under PL 480 to pri- vate and voluntary organizations for over- sew distribution to needy children and to young nursing mothers; Food assistance to such countries as Ban- gladesh, the Sabellan nations and Pakistan to help them deal with short run shortages, crop failures and possible starvation: L'S. .utributions to multilateral and in- tentational organizations--the UNDP, the the UN Fund for Population, the Or- ganization for American States--which would seriously affect their capacity to con- tinue critically important development as- sistance programs: Probli.ble reductions in: overseas Peace Corps ac, mules, U.S. narcotics programa de- signed to curb illegal trafficking In narcotics, the capshility of the U.S. to respond to nattiral disasters (the Honduran floods, Cyprus, floods in Bangladesh). Mr. AIKEN. Will the Senator yield? Mr. HUMPHREY. I yield to the Sena- ter from Vermont. Mr. AIKEN. I wish to say that the committee spent about 5 months with this bill, from the time of its introduc- tion in April. I think we did a pretty good job on it. I did not agree with every- thing that was done, but I realized that it must come to the floor, and also go to conference later. M the Senator from Minnesota has said, we reduced the total amount by 22 percent, If we accept the amendment of- fered by the Senator from Idaho, that will make about a 30-percent reduction, which I believe is too much for 1 year. The 22-percent reduction the committee arrived at is very substantial. I hope that we do wit reduce Public Law 480, and I ii pe that the Senator from Idaho does net intend to do that, because that plants a seed for over $20 billion in eeports of /nod commodities from this country to other countries. I think that we had better take what the committee recommends at this time. I know that other countries, particu- larly in the Middle East, are undertaking to grow more of their own food. I think that is true also of southeast Asia. We should help them do that, because they *ill live better, and, as they live better, perhaps they will like us better. I shall not go along with the amend- m ent offered by my friend from Idaho as. this time. The PRESIDING 01.eICER. who yields time? Mr. HUMPHREY. I yield to the Sen- se or from New York. Mr. JAVTTS. Mr. President, it seems to me, I might say to My colleague manag- ing the bill, that the real problem with this amendment is that it is premature and aborts the work of the Senate. We are taking great pride en the fact that w s. are now running the show more and more?a budget committee, a war powers resolution, much greater attention to de- tell, the President's papers, Watergate, and many other things. Here we are asked to make a meat-axe tee without any regard to our deter- mining the priorities. Every Member of ti e Senate will be able to vote as he shes on any amendment for any par- tieular item, whatever it may be. But simply to cut right off the top and then torn it over to the Executive is going es actly the other way from what we want to do. There is no reason in the world why, If Members wish to make this $5 billion oi $4.8 billion or $4 billion, they cannot do it. They can do it and they should do It. if that is the will of the Senate. But it ought to be done with a scalpel and not a meat-axe or a cutlass. That is what this is all about. I believe every one of us is under the gem on the economy, but people have sent us here to use our heads, not blind- ly to vote on everything that anybody says is economy. I ask my colleague, is It not a fact that this is really a test of this program? If we believe that the United States has no interest in its own security, in equating foreign aid with any other expenditure in the budget, then vote against the whole thing. Throw it out in the ashcan. We should not de it. - If we do vote for it because a certain pretion of our substance needs, in our men interest, to go in this direction, then we should do it prudently, not in &Vance and not without ourselves tak- ing responsibility for what we want to et t. * Those are the reasons, Mr. President, that I shall personally vote against the amendment. I think it should be rejected. The PRESIDING OFFICER. Who yields time? Mr. CHURCH. Mr. President, in re- , ? seonse to my good friends and col- ic tlitte.s on the Senate Committee on Foreign Relations, I take no issue with the proposition that the committee and Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 October 1, 1-974 the Senate, as a whole, should exercise trtah Mfr. Moss) , the tor from Ala- tries. In the past, money from a variety Approved' For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 CONGRESSIONAL RI COED ? SENATE S 17967 as flinch control over the foreign aid bama (Mr. SPARKMAN) and the Ser.ator of programs was ploughed into both Viet- program Is- feasible. We have done from Georgia (Mr. TA ,IADGE) are neces- nam and Cambodia, sometimes without this in the bill that the committee has sarily absent. the approval of Congress. The result was reported out on the floOr; which we are Mr. GRIFFIN. 1 e ,nounce that the that our economic and military expendi- presently debating. Senator from Terme. ee (Mr. BAKER), tures in this area of the world ran into However; I pbInt out that if this the Senator from On, noma (Mr. BELL- the billions of dollars a year. amendmentwere adopted, the total cut Mow). the Senator 1 rom Utah (Mr. The most severe funding cut in this In foreign aid expenditures from the BENNETT) , the Senah., from Tennessee year's bill is for Cambodia, both for mill- level requested by the administration, (Mr. Smelt) , the .aator from New tary and economic aid. It is the commit- tee's view that it is pointless to contem- plate spending huge amounts of money with little prospect that the Phnom Penh government can survive in the long run. Instead the committee hopes, by cutting funds, to stimulate a negotiated end to the warfare there. In the meantime the committee supported further humani- tarian aid and wants to encourage humanitarian relief agencies to continue their work. For Vietnam the administration re- quested economic aid in the amount of $750 million. The U.S. Agency for Inter- national Development contended that this dollar level would help in the rede- velopment of Vietnam. The committee agrees that a good program is needed, but it reduced the request from $750 million to $420 million in economic assistance. Of more far reaching significance, I be- lieve, is an amendment I proposed that was approved by the committee. In the past the Congress has been asked to vote funds for foreign aid with only the sketchiest idea of how these funds would actually be spent. While AID and the State Department provided some justifi- cation for their requests, it was impossible to tell from the categories presented to the Congress exactly what the United States was doing and why. Much of our aid, quite frankly, was used to Prop up client governments without much thought of what those governments did with the money we gave them. It was clear to me that such an ap- proach made no sense at all. At my direction my staff and the staff of the Foreign Relations Committee spent many weeks trying to untangle our Indo- china AID program and look for ways to $6.9 billion, would be $1.9 billion. All but 20 percent of that cut is mandated ? by the Congress. Only the last 20 per- cent Would be left open to the Presi- dent, giving him the flexibility to make the, sayings where the State Department feels, and the ADD Agency and the other Government departments concerned with these programs feel would be best. I do not think we are abandoning the principle of congressional control at all in passing this amendment. ?r have observed in my years in the Senate that whenever one is opposed to an ainendment, it is a meat-ex amendment. Whenever drie'IS- in favor of it, it is a scalpel. I do not knew 'Whether these phrases are really hanfii.I. The object of this arnendinent is simply to hold the line ? on foreign expenditureSrIt is simply to- ? preVett a further expansion of the pro- grain above last- year's level of spending. I think that is highly responsible, in -view of the State of the American econ- omy and -our need toeffect an -end to the deficit spending, which all economists agree is adding further fuel to a very Serious inflation. That, is my purpose In offering this arnendment, and I would hope that the Senate would support the amendment, arid thus', if it is not Prepared to cut back on foreign aid spending this year, at least btoadcaSt the message to the Amer- ican people that it is prepared to hold the line against furthiir increases in foreign aid above the level of spending in fiscal year 1.07-4L-a very Modest objective, Mr. President, eminently reasonable consid- Be.kiear 'ering the present state of the American BaJlmon ecOrioniY. Beiniett York (Mr. Bucia.Ky ), he Senator from Kentucky (Mr. CooK) , the Senator from Colorado (Mr. Damn' ,cit) , the Senator from Maryland (Mr. 7,1".ATFITAS) , and the Senator from Oregor (Mr. PACKWOOD) are necessarily absent I also announce the t the Senator from Illinois (Mr. PERCY) 1 ', absent on official business. The result was al? ounced--yeas 62, nays 21, as follows: 1 No. 440 .eg] YEAS- 'i2 Abourezk Gra vel Iviu.skie Allen Gurney Nelson Bartlett Hansen Nunn Beall Hartke Pastore Bentsen Haskell Pearson Bible Hatfield Pell Bidert Helms Proxmire Burdick Hollings Randolph Byrd, liuddlest ,u Rtbicoff Harry P., Jr. Hughes Roth Byrd, Robert C. Jackson Schweiker Cannon Johnston Scott, Chiles Long William. L. Church Ma gnli so , Stafford Clark Mansflel c Stennis Cranston McCI ell 93 Stevensor. Curtis McClure symington Dole MeGo ver , Thurmoni DOrflelliCi McIntyre Tunney Eagleton Metcalf Weicker Fannin Metzenbt rn Goldwater Montoya Aiken Brooke Case Cotton Eastland gong Griffin I, therefore, urge the Senate to ap- Brock Buckley prove the amendment. Mr. President, I am prepared to yield So Mr. back the remainder of my time. agreed to. ?Mr. HUMPHREY. Mr. President, un- Mr. CHURCH. MI President, I move less there are others who wish to speak, to reconsider the ote by which the I am prepared to yield back the re- amendment was agm,c1 to. d f time Mr HATHAWAY. r move to lay that _ limitation on the Call of the toll? motion to la on the table was Let me tell you a little al3out the pro- NAYS 21 Hart }lathe we - Hrusk a Humplm JavitE Kennedy McGee Mondale Scott, Hugh Stevens Taft Tower Williams Young NOT V CYI Cook Moss Dominic, PackwoOd. Ervin Percy Fulbrigh Sparkma Inouye Talmadge make it a sound program that will ac- Mathlas ?complish the goals AID proposed for it. Cimacif! amendment, was The result was the committee agreed to four general programs for Vietnam, Cambodia, and Laos and approved a number of subprograms which, under the committee's bill, will be carefully audited by Congress to insure the pro- my President, do we have any time motion on the table. grams are really carried out. _ grams approved under m3r amendment. ['he 'The PAESI:61*o -01VICElt: No: 15 agreed to. The chief programs are humanitarian Minutes. Am toil /No0cPITNA .aE POREMN AM RILL IN assistance, agricultural assistance and Mr. HUMPHREY. I yield back the re- Mr. CASE Mr. Pr( sident of particular industrial development aid. The main mainder of my time. interest in this yea, ' AID bill are the thrust of the humanitarian assistance ' The PRESIDING OFFICIM.. (Mr. provisions on econor c assistance to the program is to resettle war refuges on METZENBATIM) . All remaining time having countries of Indochb , 1. The action taken reasonably good farmland that will en- been yielded back, the question is on by the Foreign Fl. ' 1 ations Committee able them to be self-supporting. Where agreeink to the amendment of the Sena- represents, I belicve a major change in possible, the program emphasizes the re- tor Irerri Idaho (Mk. Cimacit). On this the congressional a t proach to foreign turn of families to their own home vii- question, the yeas and naVs have been aid?and it deserves -c- belie, a careful lages. This program also provides for , . . _ believe, orderd, an-a, the clerk will call the roll, hearing by the full S4, late. child care services and health care. The 'The asst..?ant teki40,tive clerk called The committee hal taken a number of agricultural assistance program is de- sfgnificent steps: r st. the committee signed to make Vietnam, once the rice- the re ET Cf. E7E/3. I announce macle Mardi ''etfiiciuk.riti in the level of bowl of Southeast Asia, selfsufficient in eriator -froth Indiana (Mr.' dollar aid to .both r-anbOdia and. Viet- rice and other food commodities in the &riagiqrOriilTorth Carolina nam, and a lesser c-ii" in our aid to Laos. shortest possible time. And the industrial the-genatailign' Aikansas rn Making these redi'etions the ccmmit- development program is designed to help ? (Mr. nr..esi4tt);tlie 'Senator frcim Ea- tee for the first Um'. set ceilings on how the country begin to produce goods which wall(Ivtr. IivoUYE), the Senator from much can be spent 1 -11 any of these coun- can be sold for foreign exchange, thus Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 S 17968 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 CONGRESSIONAL RECORD SENATE October helping to make the economy of South Vietnam more viable and leas Laiittni otasiffe aid. If properly administered and vit.ilanti:, watched by Congress, I think these gro- gram have a fair (thence of paying off. And if they fail, then there is not much point to continuing to give economic as- sistance to Vietnam or to Indochina gen- Americans are a generous people but the time has come. I believe, when they (Mite rightly want to knoll, how then money is being spent abroad-- they want and deserve an accounting so they can determine where we stand. On the suc- cess of our effort to build these features Into the AID bill this year rides. I believe, the future of the foreign aid program. Mr. President I ask unanimous con- sent to have printed in the RECORD an excerpt on assistance for Indochina from the Foreign Relations Committee report on the Foreign Assistance Act of 1974. There being no objection, the excerpt was ordered to be printed in the Rscoao, as follows: futresaire Section 20. Statement of policy? Indochina Section 20, initiated by Senator Humphrey, Is a statement of policy by Congress relative to the situation In Indochina. Congress finds that the cease are pi mettle gated in the Paris Agreement on Ending the War and Restering Peace In Vietnam heo not been observed by any Vietnamese party to the conflict. Ineallitles of an offeneive and derroodve nature still continue in South Vietnam. in Cambodia, the conflict between insurgent forces and the Lou Nol govern - Meat has iliterialited resulting in widespread human suffering the near total collapae Of the CAM national economy. ;The Congress further Ands that coatiral, &Bon of the Military trustles in South Viet- nam and Cambodia is net In the interest or the parties directly engaged in the conflicts, the people of Indochina or world peace. In Order to lessen the human suffering in ludo- China and to bring about a true peace there, the Congress hereby urges and requeets the President and the Secretary of State to un- dertake Immediately the following measurep. (1) Begin negotiations with represent*, lives of the Soviet Union and the People's Republic of China towards a mutually agreed upon and rapid de-escalation of military ate .-iirriasucc on the part of the three principal suppliers of arms azie material to all Viet- namese and Canexellan parties engaged in conflict 12) Take all necessary measures strongly requesting that the government of the Khmer Republic enter into negotiations with repreeeetetivee of the Khmer Got:err:anent of Me tonal Union which will lead to an imme- diate cease-fire and eontical settlement of the conflict. Use all available means to as- tabitsh contact with the Khmer Government or National Union and to urge them to par- ticipate in such nermtlation, The United States should urgeedi Cambodian parties to use the good offices of the United Nations or a respected third party for the purpose of bringing an end to hortilltles and reaching a political settlement. (3) 'Utilize any puh'ic or private forum to negotiate directly with representatives of the teemeenio ic Republic of Vietnam, the Provi- &Leonel Revolutionary Government and the Republic of Vietnam to seek a new cease-fire In Vietnam and full compliance wth the provisions of the Parte Agreement on Ending the War and Restorin4 Peace in Vietnam. (4) Reconvene the Paris Conference to seek full implementation of the provisions of the Agreement of January 27, 1978 on the part of all Vietnamese parties to the conflict (5) Maintain regular and full consultation with the appropriate committees of the Con- grese and report to the Congress and the Na- tion at regular intervals on the progress toward tile-gloms i total cessation of hos- tilities ill 111CIOChlEllt and a mutual reduction of milatery assistance to that area. Section zt. Statement of principles to govern U.S. economic red to indochina Reetion 21, Initiated by Senator Humphrey, in a policy statement by Congress concerning the prineiples which should guide US. eco- nomic assistance programs to Indochina, Congress finds that after expending over a billion dollars in funds for economic pur- preen In Tndoehina last year, and vast ntreetmet In previous years, that little in last- ing economic benefit remains. A large pro- pe-tion of the funds expended has been used for consernable Items related to the war ef- fort Very little of our money has found its way into capital Investments of lasting pro- ductive benefit to the people. ongress calls upon the President and Sec- retary of State to take immediately the fol- lowing actions designed to maximize the benefit of United statei economic assistance. (1) Organize a consortium to include the multilateral financial institutions to help INDOCHINA ECONOMIC ASSISTANCE 1, 1974 pan for Indochina reconstruction and devel- opment; to coordinate multilateral and bi- le-tenet. contributions to the area's economic reeevery; and to provide continuing advice tc the recipient nations on the use of their as :n and outside resources. (2) Develop in coordination with the re- defeat governments, other donors and the maltilateral financial institutions a compre- hensive plan for Indochina reconstruction ard economic development. (3) Develop country-by-country recon- st uction and development plans, including &tailed plans for the development of had!- vi Wel economic sectors, that can be used to id-ratify and coordinate specific economic de- veopment projects and programs and to di- re-t U.S. resources into areas of maximum be nett. (4) Shift the emphasis of United States all programs from consumption oriented ez*enditures to economic development. (5) Identify poasible structural economic re orms in areas such as taxation, exchange ra es, savings mechanism, internal pricing, income distribution, land tenure, budgetary aCocatIons, and corruption, which should be sir dertaken if Indochinese economic devel- opment is to progress. :6) Include in Indochina economic plan- ni ig and programming specific performance criteria and standards which will enable the Congress and the Executive Branch to judge the adequacy of the recipients' efforts and to de :ermine whether, and what amounts of, coetinued American funding is justified. 2,Tone of the foregoing Is meant to imply coetinuation of American financial commit- mi nt beyond the authorization provided for in this legislation. Se lion 22. Authorization of economic assist- ance for South Vietnam, Cambodia, and Laos election 22 amends section 802 of the For- eign Assistance Act to authorize appropria- tic us for Decal year 1975 to provide economic aselstance, other than Public Law 480 as- set ance. to Indochina. The Committee rec- ommends an authorization of $550,000,000 for fiscal year 1975, a reduction of $389,800,- 00e from the Executive Branch request, of ESE 9.800,000. This is an increase of $46,000,- 001 above the authorization for fiscal year 19t4. 4449,000,000 was appropriated for this pti 'pose in lineal 1974. !.`elate table below compares the Committee's ref ammendations with the Executive Branch request and the program for fiscal year 1974: Program Executive branch Committee request, fiscal recommendation, Fiscal year 1974 year 1975 focal year 1975 Reduction in executive branch reques Seger Vietnam Cambodia._ Laos rat programs support costar Total 1 Includes a $50.00h.000 dreitooment loan. 'The pm eft ;hare of Allies worldwide techneal and administrative activities what' support the Indochina program. Separate is-country AID :-.upport costs ass included in the country amounts. Election 23. Assistance to South Vietnamese children This section Insures that $10.000.000 will be available for assistance to child care pro- grams In South Vietnam in fiscal year 1975. e5,000,000 increase in the earmarking for that purpose from the fiscal year 1974 re- quirement. Funds for the child care program can be derived from a combination of Amelia Mado available through the authorization in this bill and local cturencies. The Com- mittee has approved a specific line Item at I 1399, 000, 000 95,000,000 1750. 000, 000 IRI, 000, 000 1420, 000,000 70,000,000 ?$334, 000,000 ?40,000,000 0,000,000 55, 200, 000 45, 000, 000 ?io, 200,000 2,000.000 9, 400. 000 3,750,000 ?5, 650, 000 13, 000, MO 18, 700, 000 11,150, 000 ?7, 450, 000 549, 000,000 .943,300,000 550, 000,000 ?393, 300, 000 a lasted.' 13,560,000 in nimble sevens and recoveries. 0.200,000 for child care programa Thus, an additional $1,800,000 must be made avail- able in local currencieS. One of the most haste results of the In- dochina war Is the plight of millions of dis- advantaged children len in its wake. The orphaned, the maimed, and the ha:eider:a are continuing victims of the violence In Indo- china. The Committee has noted the aflimaative response of AW to the COSigreesional man- date of last year. ?Atelier: 24, Limitations with respect to South Vietnam Section 24 contains limitations relative to Soot& Vietnam which will be added as a new sec eon 806 to the Foreign Assistance Act. 'lbs new subsection (a) of 806 establishes a ceiling of $1,280,000.000 on amounts that Mae be obligated in fiscal year 1975 for the purpoee of providing economic or military asspetan.ce to South Vietnam. Under that ceiling Up to $700,000,000 can be for military asesesuce, $160,000,000 for Public Law 480 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 I Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 October 1, 1974 CONGRESSIONAL RECORD- SENATE S 17969 commodity assistance, and $420,000,000 for economic assistance as specified in the bill. COMPARATiVE DATA ON THE CEILINGS rOR SOUTH VIETNAM tin millions of dollars] Executive Committee branch recom- Pimate, proposal, mendation fiscal year fiscal year for fiscal 1974 1975 year 1975 South Vietnam: 1. Military assistance (MAS F) l 2. General economic assist- ance (IPR) 2 9. AID loan 4. Public Law 480 864.5 1, 349.0 50.0 104.7 485. 0 750.0 160.6 700.0 420. 0 160.0 Total, South Vietnam_ 1,568.9 2,395.6 1, 280. 0 New obligational authority and excess defense articles. 2 Includes supplemental appropriation of $49,1100000. Similar ceilings have been enacted in the past for Laos and Cambodia. They were gen- erally effective in both instances. Whereas actual U.S. expenditures in Laos had consist- ently been almost twice what had been pre- viously reported to Congress before the ceil- ing was imposed. Thereafter spending stayed substantially within the limits prescribed. The ceiling was effective in Cambodia but it was allowed to lapse in fiscal year 1974. The Executive Branch subsequently grossly ex- ceeded the overall amounts projected at the beginning of the year for all categories of aid to Cambodia. Public Law 480 deliveries esca- lated, for example, from a $30 million projec- tion to $194 million. For military assistance, the Administration originally requested $167,200,000. A total of $399,300,060 was ulti- mately used for that purpose, including $250,- 000,000 in materials taken from Defense De- partment stocks. In Vietnam, the accounting under the Mili- tary Assistance Service funded (MASF) pro- 'gram is now acknowledged to have been in- accurate over the years. No one really knows how much was spent in Vietnam for military support between 1966 and 1973. When this fact came to light, the Senate Committee on Armed Services acted decisively to correct the many loopholes in the management and accounting for this program. The inclusion of military aid in the ceiling for South Viet- nam is intended to complement the actions taken by the House of Representatives and the Senate on the Department of Defense Ap- . e propriation Bill. - Paragraph (3) of 806(a) provides authori- zations by major categories and by program or project under each of these categories. This provision and the specific authorizations for Cambodia and Laos were initiated by Sena- tor Case. The Committee has approved four major programs for economic assistance to South Vietnam. These are: (A) Humanitarian As- sistance; (B) Agricultural Assistance; (C) Industrial Development Aid and (D) Miscel- laneous which includes funds for purchase of petroleum and for support of 'the USAID Mission. in Vietnam. Each of these four categories is complete in itself. No transfer of funds between these four general categories is permitted except that petroleum procured in Part D of the ? authorization may be used for the support of any of the other three major programs. Transfers within any of the subcategories of the four maker categories of a reasonable kind of response to changing circumstances are permitted provided timely notice is given to Congress before any transfer is carried forward. . Under an amendment, also initiated by Senator Case, approved by the Committee, funds available for military assistance to In- dochina may be transferred for humanitarian relief and economic development programs within each country, on a country-by- country basis. Transfers ::tinnot be made from one country to another This discretionary. feature of the bill should assist further the development of humariliarian assistance pro- grams the Committee de ims crucial for Viet- nam. The most crucial of the programs approved for Vietnam is that for aumanitarlan relief, for which the Committ,-,2 has allocated $95,- 000,000. The Comm:Ate r hopes that e, con- certed effort will be made to prevent the use of United States fun& for the support of so-called refugees activities which have di- rect political or military objectives. One way in which this can be dorm is to begin to pro- vide more United Stair- e support to eolun- tarp and international agencies working in the refugee field. This ti largely a local cost program and the Conn attee seeks to insure that both dollars and the piasters which they generate are used for the intended pur- pose. Assistance in agricritural production is -the next most valid need in South Vietnam. The Committee has recommended that $188,- 000,000 be used for tire purpose. The Com- mittee is of the view that AID should move away from placing t'l.rther emphasis on capital intensive agriculture. Additional data concerning the Commit- tee's recommendations 'ollows; I. Humanitarian assistance Millions A. AID recommended 'budget: Refugee relief mug resettlement.. $86.5 Child care_ 8.2 Health care_ .. 10.3 City to farm program 30.0 Total AID recemmendations_ 135. 0 B. Committee authorisation: Refugee relief at rl resettlement.. Child care Health care City to farm proeram 66. 6 8.2 10. 8 10.0 Total authorization 95. 0 The Committee appeeved the full requests made for child care Er d health care. Child care funds should be 'argeted to help pro- vide immediate necessities such as food stuffs and training supplies, e,foreover, every effort should be made to lar eg child care concepts to foster homes whicli are in dire need of upgrading. Every effort should also be made to find ways to make child care centers self- sufficient if possible. Urban squalor, both. in Saigon and other urban centers, is a re :tilt of years of war. Hundreds of thous= is of refugees try to make a living as beer they can under the circumstances. While this was possible when large numbers of Amer can soldiers a:ad sup- port personnel were in llietnam, it is far more difficult today. Sof-rine inflation and a de- pressed economy am the continuing war make the urban poor a very real threat to the regime. If it is pessible to work out a land acquisition program to relocate many formerly agrarian people, such an effort should be supported. ! fowever the prospects for a rapid transfer co' poor urban families to the country side sec ins dim. Consequently, only past of the request for the 'City to Farm" program is approved in this recom- mended budget. The problem faced by the South Viet- namese government cc -teeming refugees and the urban masses wl summarized in this way in a recent repot by the Committee staff: "The refugees and urban unemployed pres- ent a real dilemma tie the Vietnamese gov- ernment. If the peop7e remain in ttee camps and cities, they preseet a political problems as well as a further welfare burden on an already over-extendeD national budget. Mov- ing them to rural areas, as proposed, would shift the economic support burden from the national budget to the people themselves and to the natural resources of the land- presuming land is available. However, the transfer of people out of camps and the cities creates a population control problem by ex- posing them to contact with the Viet Cong. The conipromise between military control and economic survival is the placement of war victims on previously uncultivated land in government controlled or marginally con- trolled areas. But these new lands require large amounts of capital investment for roads and land clearing to make them ac- cessible and arable. The losers are the war victims themselves who see destined to suf- fer no matter where they are." II. Agricultural assistance A. AID recommended budget: Millions Fertilizer, OL, and pesticides $185 Rural credit 60 Canal dredging 10 Low lift pumps 4 Fish farm development 4 Salt water intrusion 11 Total AID recommendations 274 B. Committee authorization: Fertilizer, POL, and pesticides 150 Rural credit 20 Rural credit 20 Canal dredging 10 Low lift pumps 4 Fish farm development 4 Total authorization 188 The Republic of Vietnam has the capacity to become self-sufficient in -essential food- stuffs and, even with its increased popula- tion, a major exporter of food products and forestry products such as raw and finished lumber. But radical change will be needed for this to come about. A significant problem is the continuation of the war which makes the development of the forestry and rubber industries virtually impossible. The war also diminished the amount of available crop growing land-especially rice areas-and in- terrupted the food distribution system. Even in light of these conditions progress has been made in expanding food produc- tion, especially rice, through the introduc- tion of hybrid rice plants which require fertilizer and pesticides for growth. The United States should encourage South Viet- nam to continue to work toward self-suffi- ciency in food production. Less funds than were requested are being made available for the purchase of fertilizer, POL, and insecticides as an inducement to the Government of South Vietnam to work toward converting the currently subsidized agricultural system to self-sufficient system. III. Industrial development A. AID recommended budget: Millions Commodities for industrial pro- duction $155. 0 Industrial credit 40. 0 Industrial park 5.0 Urea plant 80. 0 Export processing zone 5. 0 Highway construction 3.4 Development planning .6 Total AID recommendations 289.0 B. Committee authorization: Commodities for industrial de- velopment 85. 0 Industrial credit 10.0 Development planning Total authorization 98,6 The Committee has made substantial re- ductions in the industrial development este- Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 S 17970 Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 CONGRESSIONAL RECORD ?SENATE October gory. In the Committee's view, humanitariao and agricultural needs are the most im- portant to the Vietnamese and Mauer:el development is of far less significanoe when It comae to deeding how to divide tee limited funds available. IV. Miscellaneous Wiens Transportation $30. U Support of AID mission_ IL a The last category 1s assistance to help pro- vide fuel and other conunodit7 support to Vietnam's transportation system and to pay for the costa of AID's aclenntstostive and Sec/Intent activities which are not directly chargeable to a specific project. Implementation of ceiling The new subsections (c), (d) and (e) con- tain further epeciiics conoerniag the coiling Unposed on spending for liouth Vietnam. New subsection (c) provides that In com- puting the limitations on obligation author- ity under subsection (a) with respect to an lime year, there shall be included in te. computation the value of any goods, sup- plies, materials, equipment service, person- nel or advisers provided to, for, or on behalf of South Vietnam in the decal year by gift, donation, lona, lease or otherwise. enr the purpose of the subsection, "value" moons the the fair market value of any goods, supplies. materials, or equipment provided to, for, or on behalf of South Vietnata but In Ile case lees than 383 per eentum of the amount the United Stater paid at the time the goodo. supplies, materials, or equipment were ac- quired by the United Stales. New subsection (d) provides that no funds May be obligated for any of the purposes deecnbed in aubsectkai (a) in, to, for, or on behalf of South Vietnam in any lime year neginning after June 30, 1975, uoleas the funds have been specifically authorized by law neap:en rater the date of enactment of thla section. In no case shell funds In any amount in excess of the account specillcalle &Unionised by law for any nscal year be obli- gated for any purpose during the fiscal year. New aubaection (e) states that after the date of enactment of the section, whenever any request Is made to the Congrese 10t the appropriation of funds for use 1.12, for, or on behalf of South Vietnam for any fiscal year, Ins President shall lumina a written report to the Congress explaining the purpose for Which the funds are to be used in the fiscal year. New subsection (I) requires the President 10 submit to the Congress within thirty days after the end of each quarter of each fiscal year, beginning with the Ilscal year which begins July 1, 1974, a written report showing the total afeetillt Of funds obligated in. lots or on behalf of South Vietnam during Use preceding quintet by the United States Gov- ernment and specifies that It shell include a general brealtdrown of the total amount Obligated, describing the different purposes for which the funds were obligated and the total amount obligated for each purpose. New Subsection (g) Z.imitations on U.S. Personnel in Vietnam.--Subseetion (g) es- tablishes ceilings on the number of Arnie- leans and enonment of this hill. This ceiling applies to both direct hire and personnel em- ployed by government contractors. 'Further reductions In the ceilings are to become ef- fective twelve months thereafter, Within the selling on American personnel a subcelling is Imposed on the number of members of the U.S. armed services and all direct hire and contractor personnel of the Department of Defense. The intent of the Committee is that these limitations shall apply to both perma- nently authorised and so-caned temporary duty personnel. The ceilings are as follows: DOD 3r1 country Overall personnel saunas As of t risoaUu Item soul- merit As 12 morreeniern grid- ANNUL 4. WO 3, 004 2. 503 1, 500 $00 500 Of the 5,200 total personnel who were In South Vietnam as of May 1974 some 3.850 were military or DOD; of these approximately WO were civilian direst hire DOD employees. 2,800 were DOD contractors and 200 were uniformed meitery (50 attaches and 150 Marine guards). The Committee was in- formed a year ego that by January 1974, all DOD direct hire personnel and all but 2,000 riontractors Would be phased out. It was fur- ther assured that 'vet y soon thereafter" con- tratcor personnel would number only 500. As indicated, these pledges have not been met. The principal reason for this is that 17.8. perecnne lire continuing to provide substan- tial direct maintenance and operational sup- port to the Vietnamese armed forces. By this time, the contractors were to have trained eolith Vietnamese to take over their jobs but this has not occurred. Imposition of these ceilings should stimulate the turnover to the Vietnamese of jobs that are now being per- formed by The progressively declining ceiling for U.S. vupported third country national personnel is also intended to foster South Vietnamese self-suflietency Unleas the so-called "TCans" ere controlled. departing Americans will "imply be replaced with other foreigners. Olean the skill and resourcefulness of the South Vietnamese and their long exposure to American training and example, there Is no justification for continuing this practice. New subsection (h) statee that nothing in the new Lion [shall be construed as a com- mitment by the United States to defend South Vietnam, cl v,it 25. Ltmtrations with respect to Cambodia Section 25 would ride a new section 807 to the Act providing for limitations with respect to Cambodia. The new subsection (a) would set a ceiling of 1347,000,000 In fiscal year 1975 on obliga- tions for the purpose of providing economic or military *Assistance to Cambodia. It fur- ther specifies categories of assistance within Liao overall ceiling as follows: military assist- anoe 4200 000,000; Public Law 480 commodity Resistance 577,000,000; and economic assist- ance 570.100,000: LUMPARATIkE DA1A rbefenteitie Ten CEILING FOR EAMBOOIA fin million: .51 dollars! Emote, Conerdits? breech woo- Elliman. rattiest. meodafion Baal year fiscal yew fiscal year 1974 1975 1975 CmeMiclie- %Mary assotenc01 39.9. 3 391. 3 200. 0 Geeefel economic sexist- mem (11/5) 95.0 110.0 70.0 PeeliC la* del ISe. 2 77.0 77.0 Totel Crrildnlia ... _ . OIL 5 575,3 347.0 Includes pp ly operations aril excess dnne articles. Includes 1250,00C.000 in Department of Defense eons. The Committee bee .specrined four areas of approved programming for use of the $70,- 000,000 in economic aseistance recommended for Cambodia. These are humanitarian, com- modity Imports, multilateral stabilization and technical support. Meetly the most urgent of these is humanitarian relief for 1, 1974 *latch the Committee has allocated $20 mil- /tote Unfortunately, both the Executive Eranch and the Cambodian Government hive been slow to respond to the human!- Simian needs of the Cambodian people. At p-esent almost all relief work in Cambodia is being carried out by voluntary agencies. Tee Committee strongly approves of this means of providing relief and will expect the Annecy for International Development to provide the maximum possible support to witch agencies, including the International Committee of the Red Cross, from the funds wathorized. In this connection, the Commit- tee has written into the bill a provision wnich exempts voluntary agency personnel fr 7m the ceilings on American and third- country national personnel. The Committee has reduced the eommod- It .? Import authorization for Cambodia from $71 million to $91 million. Even the most casual observer in Phnom Penh is keenly aware that, while the mass of the Cambodian pc pulation is suffering intensely from the wen Cambodian government officials and bosinessmen are enjoying an improved Mon/lard of living?which can only have cern. from one source?the U.S. taxpayer. Osmbodia, is perhaps the outstanding ex- tunple of the failure of the "trickle-down" en which U.S. aid to Indochina appears to be predicated. ECONOMIC ASSISTANCE CATEGORIES, CAMBODIA fin millions of dollars' Executive Branch proposal Committee reCOM- mendation Hut anitarian 20.0 20.0 Corimodity import. ...... 71.0 31.0 laeleideral stabilization 17.5 17.5 Tecinical support and Partici- p int training Li 1.5 Total 110.0 70.0 'nee new subsection (b) prohibits the newsier of economic assistance or Pu.blic Law 481, funds for use for military aid purposes and also prohibits transfers within the four categories of economic assistance. ?he new subsections (c), (d), (e) and (f) re see to the implementation of this ceiling on obligations for Cambodia requirements identical to those explained in the analysis of .he new section 808. The new subsection (g) reduces the cur- ref t ceiling on U.S. personnel in Cambodia from 200 to 175 and on U.S. ilnanced third- cos ntry national personnel from 85 to 75. It wo IDA exempt personnel of voluntary relief agencies in Cambodia from the ceiling. Lane gunge Is included to make it clear that the cening on U.S. personnel includes contract personnel. The reductions contained in subsection (g) are designed to reduce our official invo:ve- me it in Cambodia and to begin the process of eliminating Oambodian dependence on the Uit ted States. They parallel the Committee's action In reducing the level of US. military expenditures in Cambodia. In the event the was is still going on in Cambodia neat year the Committee expects to lower the person- nel ceilings still further in len 1976. While it would appear that the Embassy In Phnom Penh has made an effort?not 51- ways successful?to remain within the letter of she personnel restrictions, it Is evident that; American personnel have become in- cressIngly Involved In a vast range of sup- per and advisory efforts, generally not in- chiding tactical military advice, designed to ooze pensate for the inadequacy of the Cam- bad .an Government. This expansion of the Annirican role in Cambodia is contrary to the Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 f.?uoet 1, 1974 Approved For Release 2005/07t13 : CIA-RDPZ9A0957A000100030042-1 CONGRESSIONAL 1t7CORD ? SENATE S 17971 osealleintent Of the Original Congressional person- ' ' ECONOMIC ASSISTANCE CATEGORIES, LOSS met restriction. The Committee believes that by limiting the number of Americans in Cambodia the degree of American involve- ment in Cambodian affairs can be more ef- fectively controlled and, thus limits can be put on Cambodia's dependence upon the U.S. Government. iris now evident that the Com- mittee underestimated the energy and re- sourcefulness of 200 Executive Branch rep- resentatives in Phnom Penh. While reducing the level of U.S. personnel in Cambodia, particularly the military, the Committee also adopted an amendment offered by Senators Case, Symington, and . Humphrey, designed to encourage expansion of private relief activities in Cambodia. At present these are being carried out almost exclusively by American voluntary nonprofit organizations and by the International Com- mittee of the Red Cross. The Committee has been informed that these organizations are willing to expand their operations in order to meet the increasing humanitarian needs of the Cambodian people. In order to do so, however; the relief organizations need U.S. funds to support their personnel since they have now reaohed the limit of their own re- sources. To date; AID has been unwilling to provide personnel support funds to the relief agencies since, if it did so, the personnel supported would be subject to the personnel ceiling's. The Committee questions the ap- propriateness of the Embassy's decision to give priority in its personnel allocation to military personnel, who now account for 124 of the authorized total of 200, rather than to increasing the number working on relief programs. The new subsection (h) carries over the provision from subsection 655(g) which States that the section shall not be con- strued as a commitment by the United States to defend Cambodia. Subsection (b) of section 25 repeals sec- tions 655 and 656 of the Foreign Assistance Act since they will become obsolete upon the enactment- of this act. Section 26. Limitations with respect to Laos Section 26 will enact a new section 808 to the Foreign Assistance Act of 1961 which will establish a ceiling on and specify the dis- tribution of ft-tilted States assistance to Laos for fiscal year 1975 Subsection (a) of the new section 808 imposes a ceiling of $100,- 000,000 on? obligations for the purpose of providing military and economic assistance to Laos in fiscal year 1975. Under the ceiling, $55,000,000 is allowed for military assistance and $45,000,000 is allowed for economic as- sistance, which is allocated into four cate- gories. The table below provides comparative data on assistance for Laos. ASSISTANCE TO LAOS [In millions on dollars' 1. Humanitarian 2. Reconstruction and de- velopment 3. Stabilization 4. Technical support Executive branch C smmittee request recommendation 9.5, 300, 000 SI? , 000, 000 400,000 900, 000 17, 500, 000 1, 500,000 (6, 300, 000) I., 600,000 Total 5,200, 000 45, 000, 000 The Committee has uot reduced tie Lao program in proportion to other Indochina programs. Laos alone among the Indochina states has reached a political settlement and the Lao people deserve encouragement and assistance in making their government work. The amount approved reflects the Emit of what they can effectit =ay absorb. It will not be sufficient, however, to sustain Vientiane society in the mariner to which it 'became accustomed in the days of the massive Amer- ican presence. The rectuction made in the Lao program came pri !fierily out of 'recon- struction" where AID requested $11 million to build two dikes, nel Pier of which required any dollar inputs. The AID request for dollars for this purpose apottared to be 'out an effort to obtain additional free foreign ex- change for Laos from the Congress. United States polka' in Laos is designed to facilitate the estabhshment of peace and national reconciliation. To this end, United States assistance mix r operate within, the terms of the agreements on a cease-Ore and a coalition governmen t signed by the Laotian parties in February-. raid September, 1973. Since that latter akri?ement establishes a Provisional Grovernmo it of National Union, American aid should be channeled to the extent possible through that government. Also, insofar as is pcssible. U.S. programs for humanitarian assistance, recontruction; and development shot, Id be available to all areas of Laos and shalt Id be directed wherever the need is greater t and the assistance desired. The new subsectior (b) prohibits transfer of economic assistanctt funds authorized for Laos for use as militsry assistance. Military assistance funds mfot be transferreel to and The PRESIDING OFFICER. The re- port will be stated by title. The assistant legislative clerk read as follows: The committee of conference on the dis- agreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 12471) to amend section 522 of the United States Code, known as the Freedom of In- formation Act, having met, after full and free conference, have agreed to recomMend and do recommend to their respective Houses this report, signed by a majority of the conferees. The PRESIDING OFFICER. Is there objection to the consideration of the con- ference report? There being no objection, the Senate proceeded to consider the report. (The conference report is printed in the House proceedings of the CONGRES- SIONAL RECORD of September 25, 1974, at page H9525.) The PRESIDING OrriCER. The ques- tion is on agreeing to the conference report. The report was agreed to. Mr. HRUSKA. Mr. President, as a conferee on this bill, I have seen several significant changes made to the bill which, in my view, makes it a more work- able measure. However, I do not believe that these corrections go far enough. While we were in conference, the President sent a letter to the conferees pointing out his objections to the bill. The provision that appears to concern the executive branch the most is the sec- tion of the bill that places the burden of proof upon an agency to satisfy a court that a document because it concerns military or intelligence secrets and diplo- matic relations is in fact properly classi- fied. If the court is not convinced that the agency has adequately carried the burden, the document will be disclosed. Yet, while this bill transfers the au- thority to declassify documents from used in the economic assistance categories the executive branch to the courts, it in accordance with One new section 809. provides no standards to goven the re- There shall be no transfers of funds between view of the documents. The judge is the four economic assistance categories, given the documents and then is cast The new subsection (c) through (1) relate upon a sea without any lighthouses or to implementation of this ceiling for Laos, buoys to point out the shoals and rocks and are identical to 1 hose explained in the to make his decision whether the docu- analysis of section 13,15. ments are properly classified. The new subsection (g) states 'Ghat the No standards are created to guide a new section shall nol le construed as a com- judge in reviewing the documents. He mitment by the 171 ted States to defend Laos. can release the documents if, in his own " Section 27. Trdnsfer of Func:s view, they are not properly classified, even if the Secretary of State, the Score- - Section 27 add:, a ,iew section 809 to the - Committee Foreign Assistance Act. tary of Defense, or any other agency Executive moon. Subsection (a) prohibits use of the tram- head cerf,ifies that the documents are 'classified. This is a provision ot only distrustful in nature; it asonable, ident Ford, in his letter to the rees cited these concerns and said: simply cannot accept a provision that uld risk exposure of our military or ni- telligence secrets and diplomatic relations because of a judicially perceived failure to branch menda- er authority of section 610 of the Act to proper Estimate request tion r fiscal fiscal fiscal add to, or take away, from, the funds appro- that i ear /ear Tear priated. for assistan e to South Vietnam, is Lao';.974 975 975 Cambodia, or Lao';. Laos: Military assistance 1, 81.0 E 90.9 General economic assist- twice (IPR) 40.6 55.2 l 6 Public Law 480 .3 Subsection (b) liaiated by Senator Case, co provides that any fl ids made ava:lable for '55.0military assistance low South Vietnam, Laos 45.0 or Cambodia may he used for war r reconstruction, or go -lieral Total, Laos 125. 2 146. 4 100.0 satisfy a burden of proof. My great respect ment purpose,s,40e for the courts does not prevent me from I New obligational authority and excess defense articles. , Military assistance service funded. , Includes supply operations and excess defense articles. FQ*11r categories of assistance authorized for Laos are: humanitarian; reconstruction and development; stabilization; and tech- nical support. For these categories the Com- mittee recommends the following: observing that they do not ordinarily have FirthEvom OF INFORMATION ACT the background and expertise to gauge the AMENDMENTS -CONFERENCE RE- ramifications that a release of a document PORT may have upon our national security. The Constitution commits this responsibility and Mr. KENNEDY Mr. President, I sub- authority to the President. mit a report Of tie committee of con- ference on H.R. ,_ .471, and ask for its Despite these strong words and valid Immediate consideration. -concerns, the majority of the conferees Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1 ease 2005/07/13 : CIA-RDP79-00957A000100030042-1 NGRESSIONAL RECORD ? SIENAlla October 1, .i,. the Withholding was olitiout (a) reaecn- rasy be Identified must be protected In order able basis In law- if t he complainant so re- nr tt severely hamper our efforts to combat quests. If such a find ng n3ade, the court cr me. Is required to direct ic aarney to suspend I am, however, equally concerned that an that employee withoi t pay or to take dig- cipltnarsr or Corrective ie ti in agaloQ hint Although I hate do:a5tr, ab,ot the anpro- priatanag_, of CAI/gnaw the direction of ne- gation Irons the disco) ure of information to carecr-affesiting disciplinary hearings about te ,ployee toed ice I rue most can- reamed with the InhiNtinc? effect tivn the eigioroug soil effective conduct of official duties that this potential personal liability will have upon employees responsible fer the exercise of these judgments. Neither the best Interests of Governuaut nor the public would be served by subjecting an employee W this hind of personal liability for the perform:Ince of his offleisi duties. Any patential ham oi to successful com- plainants Is more appropriately rectified by the award of attorney fees to Iram P'urther- more, placing In 'he judiciary the require- ment to initially determine the appropriate- ness of an employee's conduct and to initiate discipline is both unprecedented and unwise. Justahente eoncerninE employee discipline MDR% in the Interests of both fairness and effective personnel management, be made Initially by his supervisors and judicial in- voivement should thee follow In the tradi- tional form of review. There are provialons in both bills which would place the burden of proof upon an agency to satisfy a court that a document classified because It concerns military or In- telligence (including Intelligence sources and methods) secrets and diplamatic tele- :awn is, in feet, properly clasailled, following an in camera =spectacle of the document by tee court. If the court Is not convinced that the agency has adequately carried the burden. the docunient will be disclosed. !simply can- net accept a provision that would risk ex- poeure of our military cir intelligence secrete and diplomatic relistioits because of a Judi- dolly perceived failure to satisfy a burden of proof. My great respect for the courts does not prevent me from observing that they do not ordinarily have the background and exper- use to gauge the reedit:aeons that a reissue, of a document may have upon our national accurity. AMENDMENT OF 'lila NATIONAL 'rho cOstustibution commits this nal- ANK ACT, THE FEDERAL DE- Witty and authority to The president. I un- POSIT LNSURANCE ACT, AND THE tiereasuad that the purpose of this provision ATIONAL HOUSING ACT is to provide a means whereby Improperly /Ir. TOWER Mr. President, I &SE classified information may detected and reieeked the This obp,otive unerdmous consent that the Senate re- can support as long as the means seieeted con eider the vote by which S. 3817, a do not jetroa.relize our matioaal security in- bill to amend the National Bank Act, the terms I could accept a provision with an Federal Deposit Insurance Act, the Na- exPreos PaeouniPtion that the alliesilleation tior al Housing Act, the Small Business wee proper and with ta camera judicial re- Inletment Act, and for other purposes, ,Iew wily after a review of the evidenee did was passed. isot bxlicate thet the matter bad been Yea- iadverten tly when the bill was sseeibly clussified in The Interests or our1.1 isaaloeul seeurity, pas -ed, the we page was left off and the ullowlng this review, the court could then bill passed without opposition. It has disclose the (Meal Mein U :t finds the claini- been- agreed to. It does affect interest limotiun to have been seethes-3a capricious, rate s in three States, Montana, Tenne- or without a reasonable Oasis. It must also be see and Arkansas, so it is not contro- clear th.a.t ails procedure does not usurp my verde). Onastitutional zesporusibilltles as Command- Mr. HUMPHR.EY. Was this matter S 17972 Approved For R!,10 ref ased to change the Prevision vesting a power in the courts to declassify docu- ments classified by a Government agency. Mr. President, I realize that there are some mista.kes in judgment about clas- sification and that there are some abuses of the elltem. But there are adrainistra- tive procedures for dealing with these mistakes and abuses. U a citizen wants access to a classified document, he may request declassification under Executive Order 11652. If his request for declassifi- cation is refused, he may appeal to the head of the agency. If his request is again refused, he can appeal to tile InteragencY Classification Review Committee?e. committee designed to correct erroneous eliasettleetions and in general, be u watchdog over the classification system. This bill, however. Ignores this admin.- istrative mechanism and vests in the courts the power to declassify documents and release them to all the world. The President, in his letter to the con- ferees, said that he could not accept a provision that would risk ekPesure of our national defense or foreign relations secrets. I cannot accept such a provision either. Mr. President, I ask unanimous con- sent that the text of President Ford's August 20 letter be printed in the Racole at this point. There being no objection, the letter wee ordered to be printed the RECOED, as follows: Tea werrre Wafh,ington, Aug. 20, 1374. Senator EDWARD KENNZDY , US: Senate, WaShington, DO. DEAR Tan: I appreciate the time you have given me to study the amendments to the Freedom' of Information Act (Hla. 12471) prenatal' before you, so that I could provide you my peritonea views on this bill. I share your concerns for Improving the Freedom of Information Act and agree that now, after eight years In existence, the time is ripe to reassess this profound and worth- while legislation. Certainly, ito other recent legislation more closely encompasses my ob- jectives for open Government than the philosophy underlying the Freedom of Infor- mation. Act. Although many of the provisions that are now before you in Conference will be expen- sive in their implementation I believe that most would more effectively assure to the public an open Executive branch. I have al- ways felt That arimmistrative burdens are not by themselves suffIclent obstacles to pre- vent progress in Government, and I will Therefore not comment on those aspects of the tell. There are, however, more significant costs to Government that would he exacted by this bill?not in dollar terms, but relating more fundame,unilly to the way Government, and the Executive brunch in particular, has and must function. In evaluating the costs, I must take care to avoid seriously impaoring the Government we all seek to make snore open. I am concerned with some of the pro- visions Which are before you as well to tonic Which I understand you may not have con- sidered. I want to share my concerns with you so that We may accommodate our reser- vations achieving a common ?Weeder. A provision which appears In the Senate version of the bill but not in the lioulie ver- sion requires a court, Whenever its decision grants withheld documents to a complain- ant, to identify the employee responsible for the withholding and to determine whether le ihriduata right to privacy would not be appropriately protected by requiring the dis- t, of Information contained In an ln- ve aleatory !Ile about him unless the invasion of Individual privacy is clearly unwarranted. Al :hough I intend to take action shortly to aedress more comprehensively my concerns with encroachments upon Individual privacy, / oelleve now is the time to preclude the Praedom of Information Act from diselos- ine information harmful to the privacy of inelviduals. I urge that you strike the words "clearly unwarranted" from this provision. ,sinally, while I sympathize with an in- de idual who is effectively precluded from exercising his right under the Freedom of Iniormation Act because of the substantial is of litigation, I hope that the amend- me ole will make It clear that corporate inter- ests will not be Subsidized in their attempts to increase their competitive position by using this Act. I also believe that the time limits for agency action are unnecessarily restrictive in that they fail to recognize sev- eral 'valid examples of where providing liwitiffity in several specific instances would peemit more carefully considered decisions in special cases without compromising the primiple of timely implementation of the Act. /-gain, I appreciate your cooperation in &feeding me thin time and I am hopeful that the negotiations between our respective stars which have continued in the interim ell be successful. I have stated publicly and I reiterate here That intend to go more than halfway to acCommodate Congressional concerns. I have fon wed that commitment In this letter, ant / have attempted Where I cannot agree wits certain provisions to explain my reasons ant to offer a constructive alternative. Your aceaptance of my suggestions will enable us to move forward with this progressive effort to Teske Government still more responsive to the People. Sineerely, GERALD POEM sesoffalise Uist this provision clea red with the majority? is seconionly not, before you in Conference, Mr. TOWER This was cleared with bat the cluierIn provisions g pvisions of Me afford, . I bellese. grounds to secaerunodate our mu- the distinguished Senator from Montana toal luterests and concerns, who has a personal interest in the matter. The Senate but not the BoUSE, version Mr. HUMPHR.EY. I know he has a Very amends the esemption concerning invent- irnpartant public interest in that matter. etstory Llesi compiled for law enforcement Mr. TOWER It has been cleared with purposes. 1 ani concerned With any provision the committee. which would red deal withaolme. Thie amendment Could havYe Mr. ROBERT C. BYRD. Would the trust effect it the 410USEet 03 Information or Sem tor include in his tasanienous-con- the Information remit are disclosed. These sent request that the bill be returned to Jources and the leformenon by which they secoad reading, the amendment adopted, Approved For Release 2005/07/13 : CIA-RDP79-00957A000100030042-1