Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-04-08
Dulles Submits
New Proposals
0nHand|ingAid
Would Put Military
Help Under Defense,
And Stress Looms

A new approach to foreign aid
in which military funds would
go into the defense budget, and
greater emphasis put on loans
for economic aid, was outlined
by Secretary of State Dulles to-
day.
He told a special Senate CON-
lmittee reviewing foreign aid
that the program should be in
"a form which will enable the
American people to understand
it and to sponsor 1t with con-
Iviction. He indicated the
changes also would stress the
fact that military aid is designed
essentially to promote this coun-
Itry'S own security.
Mr.. Dulles did not rule out all
grants for economic aid, but
recommended the creation of an
economic development fund
from which loans would be
made. probably at the rate of
about $3.50 million year even-
Itually He gave no exact figure
for 1858 but doubted that the
fund would reach such proper
tions in the first year.
The Secretary also emphasized
that the basic changes in the
program would not increase the
Presidents $4.4 billion foreign
aid estimate submitted in jan
uary. but in fact might mean a
little less.
Fulbright Halls Proposals
The proposed changes were
favorably received by most DEM
ocrats. Senator Fulbright. DEM
ocrat of Arkansas. who a few
months ago took the lead in
criticizing Mr.. Dulles handling
Of the Middle East situation,
congratulated him on the new
approach.
Chairman Russell Of the SEN
ate Armed Service Committee
sounded one discordant note,
however. by predicting the
United States will never be able
TO terminate economic aid to
under developed countries I'M
less it spells out the exact goal it
it trying to achieve by such aid.
Senator Russell wanted to
know If our purpose is to raise
the economy OF these other coun-
tries to the American level or to
any other given level.
Mr.. Dulles replied that we
have no objective that can be
stated in mechanical terms, as
was true Of the Marshall Plan
to revive Western Europe after
the war. The Secretary said our
goal is only to raise these coun-
tries to a point where they will
mot turn to the Communists for
support.
Objective Demanded
Senator Russell replied that he
does not see how the United
States can ever stop short OF
raising them to our level or
lowering ourselves to their level
unless we fix an objective"
Mr.. Dulles said he can foresee
a time when further aid will not
be needed. but he could not put
a date on it.
In recommending that military
aid funds go in the defense bud
get, the Secretary said:
1T is our view that the So
called defense support should
hereafter comprise only the as
sistance required to meet SC
much OF the economic burden OF
military defense as the country
cannot itself afford. Appropria-
lions for military assistance anc
for this REDEEMED category OF
defense support would then bt
authorized on a continuing basis
and hereafter appropriated an
nually to the President in APP
preparations for the Department
of Defense.
1--WE believe that this way Of
treating military assistance
which also is recommended by
many Of the recent studies or
the subject. would avoid a wide
degree of misunderstanding
abroad and at home by makinI
apparent the degree in which
we wish our aid to serve military
defense.
Deep Aid Cut Plan
Before the Secretary testified
there was a general feeling OF
Capitol Hill that current drives
to reduce the $73.3 billion Essen.
hover budget might fall heavil!
on the foreign aid bill. which ha'
not yet been considered.
1t was apparent in his testi'
mony today that Mr.. Dulles wa
moving to reduce opposition Il
foreign aid by basic changes il
the handling of it.
Several Senator's indicated
See AID, Page Al