Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-04-27
s. Foreign Aid Administration


The field supervision of 1000 economic aid projects
scattered about the globe prodgous undertaking 1t
involves the ALLEGATION Of large quantities of grant aid
(mone it involves engineering and technical assistance
Qualified specialists to manage and operate so many for
egn projects OF widely varying nature impossible to
obtain.
On the planning and policy level in the ICA and the
Department of State the practical experience of the per-
sonnet has not qualified them to manage what is actually
the largest engineering supplying and banking operation
in the world. Men who would be able to handle such
Jobs enjoy good positions in private enterprise and are
unwilling to under the direction of Federal bureau
Gratis.
In the past decade the agency administering economic
aid has had its changed several times quite possibly
in the hope that the American people would forget its
past record. During that time the economic aid agency
has had eigh directors No director has held Office for
more than ~ years and one served only few months.
This rapid turnover results in the directors becoming
captve of what is recognized seIf-perpetuating
bureaucracy 1t operates the principle that no matter
how waSteully money SPENT if enough spent it will
do good This lack of competent personnel has
suited in innumerabe instances of waste running into
many billions OF dollars
few among numerous examples will illustrate:
total of So billion foreign aid funds has been granted
to foreign powers to help reduce their national debts
and to balance their budgets. To extend this aid we
ironically had to borrow the money
There instances of u. S. Government checks hav-
ing been turned over to foreign officials for budget
support with record of how the money was spent.
Foreign aid has given more than 81 billion to govern
ments that hostile to the United States This in
cludes the Soviet Union, Yugoslavia, and Poland
To build an American exhibit in Moscow to be COM
peted in July 1859, $50 million foreign aid has been
authorized
Last year India received 1928 million in foreign aid
substantial part Of this aid given to support In
das second five year plan. Our dollar credits enabled
the Indian DIrChaSa with
limited Indian commitments to buy American goods.
Point ~ originally established export American
"knowhow" to the underdeveloped countries Instead
Point " has become inextricably involved with indus
trial development lush engineering contracts and
veyS that have relationship the original purpose
From an official report foreign aid to oil rich Iran
the
United States aid and technical assistance programs
in Iran which, between 1851 and 1856, totaled
quarter billion dollars were administered in loose
HitfbOd and RabRfiae5Iike manner -. it is now
fmboinbfe - wHb any aeearacy-fo tell wb1 be.
came OF these tRsG5."
The official in charge of Iran foreign aid later pro-
NOTED and is head of foreign aid in Korea where
our spending obligations are greater
In 1858 our government made S745 million, almost %
OF d billion dollars available for the support of the
French and their allies in the prosecution of the ndo
China War. Our arrangements with the French for the
control and accounting for this money cumbersome
and loose. Only part of the $745 million had been
spent when the French surrendered Because of poor
accounting and auditing the United States does not know
how all OF the $745 million was spent. After many
months of attempted audit and negotiation the United
States was able to recover only $95 million.
Our financial support Of the British military aircraft
program in the fiscal years 9535455 was approximately
$3.50 million. The planes being financed were unduly
delayed in development By the time full production was
achieved the planes obsoescent The London Fnan
Cia Times wrote in December 1854 that our ofShore
these British
clumsy method of making grant of cash. Actually part
of this cash served make possible British government
Subsdizaton of its commercial Jet transports in competi-
ton with United States manufacturers.
A New York Times dispatch from Karachi Pakistan,
dated February 49, 1859 dcloses that corruption and
imitation rampant; that of the $3.50 million received
by Paistan in foreign aid of which S703 million came
from the United States only S1S6 million according to an
official admission was utilized on constructive works
The Development Loan Fund is new foreign aid
device for extending development assistance foreign
countries 1t will make what amounts to second mortgage
loans and accept soft local currenCe in payment for loans
in dollars. The Development Loan Fund also lends
money to assist American business in the establishment
of overseas factories.
The ICA will provide insurance coverage on private
investments against certain exchange losses and
appropriation and other risks Thus American taxpayers
dollars substitute factories the products of which
compete with those of our American workmen.
Inc falrleSS Committee, which was appointed by the
President in 1857 10 evaluate the foreign aid program
adversely criticized the concept of the Development Loan
Fund and soft currency loans
No comprehensive and independent audit Of foreign
aid expenditures seems TO bare been instituted!
The Congress votes foreign aid appropriations; the
Executive Branch of the government handles the appor
tionment and disbursement of funds Once funds are in
the hands of Executive Branch it appears that the
Congress exercises almost no control management
expenditures and projects.
The Congress has responsibility to its tax paying
constituents 1t should assert control expenditures
of foreign aid appropriations 1t should make its appro
pratons specific 1t should further limit the power
of the Executive to effect the transfer of foreign aid
funds. Too much hexibiy amounts to writing blank
check.
The Congress should create bipartisan Congressional
Committee or Hoovertype Commission with sufficient
funds to conduct thorough investigation of foreign aid
This should include check the ptograming and
pendtures for foreign aid projects and should continue
until all foreign aid is terminated.