Evening star., 1949-08-14
Reports Of RFC
Financing Arms
Aid |rk Senators
Opposition Develops;
Officials Of Agency
Called to Hearing
By J. A. O'Leory


Any move to finance a Substan-
eign arms program through the
eign arm program through the
Reconstruction Finance Corpora
ton appeared headed for trouble
in Congress last night.
Chairman Maybank of the Sem
ate Banking and Currency Com
mittee called a public hearing for
1890 am. tomorrow to ask RFC
officials about unofficial reports
that this method of providing
funds for about half of the pro-
gram until the January session Of
Congress is being considered.
The pending arms bill is merely
an authorize ton, and would have
to be followed by a separate ap-
preparation bill to make the money
available In its present form. the
authorizing measure calls for an
advance of only $125. 100000 from
the RFC, but Senator Maybank
began inquiring into the subject
Yesterday following published re-
ports that consideration might be
given to enlarging that figure.
Connally to Oppose Move.
Meanwhile. Chairman, Connally
Of the Senate Foreign Relations
Committee made it plain that he
will oppose any move to give the
North Atlantic Advisory Council
authority to distribute arms fur
nished by this country. That pro-
posal is expected to be made in an
amendment being drafted by
Senators Vandenberg. Republican.
of Michigan. and Dulles of New
York, Republican.
Senator Connally said he thinks
that this country, as the only fur
nisher of supplies, must retain the
deciding voice in their assignment.
The proposal of the two Repub-
licans would bring the arms dis
tribution under control Of the
council when it goes to work. The
council, to be set up by the II
nations who signed the Atlantic
Treaty. will have charge Of plan
ming defense of the arka.
Senators Dulles and Vanden-
berg argue that since the council
has the duty of recommending q
unified defense it should have
authority over the distribution OF
arms.
Aid to Congress Seen.
With Congress already facing
weeks of work to finish its pro-
gram for this session, the advant-
age of ,RFC financing would be
to expedite the arms program once
the authorization is passed and
allow Congress to wait until
January to consider the appropria-
ton bill if it so desired.
Senator Maybank told a press
conference, however. this would
mean "short-circuiting the Appro-
priation Committees.
Senator Maybank also expressed
fear it might hamper the passage
of a bill pending in the Banking
and Currency Committee to in
crease the lending authority OF
RFC from $500 900 900 to $5,000,-
000, 900 to help encourage private
housing. small business develop
ment and other domestic pur-
poses.
This development came as the
House Foreign Affairs Committee
prepared to take final action on
the arms bill tomorrow. The
Senate Committees on Foreign
Relations and Armed Services.
voting as a unit, also may report
out the bill this week, but the
House. is expected to take it up
first. probably before the end Of
the week.
Division of Funds.
The bill is designed to increase
the security of the United States
by strengthening the defenses OF
cooperating nations, as follows:
For Western Europe, under the
North Atlantic defense pact, ST.
160, ,990, 900: for further aid to
Greece and Turkey, $211,370.000
for military assistance to Iran,
Korea and the Philippines, ST.
$40, 700.
A preliminary move to cut the
bill in half failed on a tie 8-to-8
vote in the House Committee last
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