Evening star., 1951-08-09
Billion Foreign Aid Cut
With Agency Revision
Backed by Committee
By the Associated Press

A House committee repeatedly
had agreed tentatively to lop 81
billion from President Truman's
$8.5 billion foreign aid program
and place the entire program
under a new high-level official.
The deciSion-Subject to posi-
BILE reversal later-waS reported
last night by members of the
House Foreign Affairs Committee.
Although some members were alb
sent when the agreement was
reached yesterday at a closed
door session. those present said
they didn't expect a reversal.
The committee plan would
place both economic and military
aid under a new administrator,
appointed by the President and
confirmed by the Senate. He
would be responsible only to the
President but would work closely
with the State and Defense De-
partmentS.
May Gain G. o. P. Support.
Such plan could be expected
to gain support from Republican
forces which have been pressing
for removal of foreign aid direc-
tion from Secretary of State
AcheSon.
Committee members said the
proposed money cuts would hit
both military and economic aid.
So far. most of the talk in Con-
gress has centered on reductions
in the economic side of the
program.
Meantime, a brisk Senate fight
appeared brewing over the Presi-
dents program of military and
economic aid to Formosa, island
stronghold of the Chinese Nation
aliStS.
Chairman Connally of the For.
elgn Relations Committee, hold
ing hearings on the administra-
tion's foreign aid plan, said
fatty:
Il don't think Formosa needs
military aid as long as Chang
kai-Shek is there. If Chang can't
protect F'ormosa, he can't protect
much"
Nor does Senator Connally
favor as much FormoSan economic
aid as called for in the 5000 mil
lion military economic program.
he told reporter.
On the other hand, Republi- |
can member of Senator Con- |
nally'S group, Senator Knowland,
of California, indicated support
of the administrations Formosa
program.
I'VE just can't afford to let the
back door to one of the most
vulnerable spots in Asia stand
open to the Communists, Senator
Knowlaud told a reporter.
The two Senators voiced their
opposing views shortly after Sen
ator McCarran, Democrat, of Ne
vada appealed for a vigorous pro-
gram of aid for the Chinese Ma
tionaliSt government. He called
it the present center of future
hopes for a democratic, nom
Communist Asia"
Senator McCarran, who heads a
watchdog" committee on foreign
aid, made public staff report
urging that I'VE should spare
nothing in the way of arms or
other military aid" to Formosa.
The Senate Foreign Relations
and Armed Services Committees,
meantime. called Gen. Omar N.
Bradley, chairman of the Joint
Chiefs of Staff, to testify at their
Joint closed door hearings on the
foreign aid proposal
Seek Views on Aid to Israel.
Chairman Connally said he also
hopes to receive from Senators
Taft, Republican, of Ohio and
Douglas, Democrat, of Illinois tes-
timony concerning features of
proposed United States aid to
Israel.
during yesterdays committee
session, R. Allen Griffin, director
of the Economic Cooperation Ad-
ministration's Fart East program
division, urged approval of the
tull Far East program proposed
by Mr.. Truman.
Formosa, he said, has had to
take in hordes of Chinese refugees,
who fled to the island before the
Chinese Communist forces. The
island cannot, without United
States aid, he said. support itself
plus the Nationalist government
and its military forces, and the
refugees, despite big program of
self-help.
Senator Connally said DR.. Grit
I'm, at the closed hearing, warned
that the Formosa government has
virtually exhausted" it's gold re-
serves and cannot balance its
budget.
DR.. Raymond Meyer, head of
the ECA mission to Formosa, Loid
the Senators the island govern
ment in 1850 sWelled its revenues
800 per cent above 1949."