Evening star., 1961-08-17

billion to So billion, but none OF
the cut was applied to the first
year installment of $1,187, ,0O0,-
900. The vote was 81 to 43.
The other amendment re-
duced grants for military aid
to allies by $3.50 million, from
$1.8 billion to SIS billion. This
carried 81 to 81.
Without mentioning these
Senate cuts, President Kennedy
urged the House to reverse its
action as a demonstration that
this Nation is still united in
its determination to meet its
responsibilities and halt the
spread Of communism and
Castroism by every available
means"
The President added that
when Asia and Africa are
poised between economic de-
velopment and chaos. when Mr.
Khrushchev is probing the West
for any sign that our resolve
is weakening, I cannot believe
that the bipartisan support al
ways given this (foreign add
program is at this crucial mo-
ment to be abandoned"
Hoped to Avert Setback
Administration leader S,
knowing they we're in trouble
in the House, had hoped to
avert a serious setback by NOV
ing in with a compromise of
their own.
Offered by Representative
Morgan, Democrat of Pennsyl-
vania, chairman of the House
Affairs Committee, the compro-
mise would have reduced the
loan program from five to
three years, and the overall
amount available from $8.8
billion to about SIS billion. Al
though 1t included a requires
ment that Congress be given
so days to review all loans be-
fore they are made, it would
have preserved the technique of
borrowing aid money from the
Treasury instead of coming to
Congress for appropriations.
Unexpected Turn
But the situation took an un-
expected turn when Represent
ative Saund, a native of India,
offered a substitute which
struck out all reference to long
term authority and provided
only $1.2 billion, enough for
one year Of economic loans.
Even this amount would have
had to clear House and Senate
Appropriations Committees be-
fore it became available.
At the height of the debate
Representative zablocki, Dem
ocrat of Wisconsin, supporting
the Presidents bill, said he
could not recall that Mr.. Saund
had objected when long-term
programs were proposed for
India.
This brought Mr.. Saund to
his feet, shouting that Il am
an American citizen, and when
I took out naturalization papers
I renounced allegiance to
India" His reply brought a
roar of applause.
linda to Get Big Loan
In the hearings on the bill
it was testified that India is
one of the areas that will
receive a substantial part of
the economic loan program
for the coming year.
There have been reports in
Capitol cloakrooms that the
administration asked to finance
the economic loan fund with
Treasury borrowing to get the
program out of the reach of
the House Appropriations Sub
committee on Foreign Aid,
headed by Representative
PaSsman, Democrat of Louisi-
ana, who has consistently
advocated appropriations below
the amount authorized by
Congress each year.
Observers noted that the
administration compromis e
offered in the House yester-
day did not mention the House
Appropriations Committee as
one of the groups that could
review loans. 1t specifically
listed the Appropriations and
Foreign Relations Committees
of the Senate, but provided
that on the House side the
loans should be transmitted
to the Speaker, who presum-
ably would decide where to
refer them.
D. c. Zoning Included
The District got into the
picture briefly in the House
yesterday when Representative
Kearns. Republican of Penn
sylvania. tried to amend the
aid bill to require foreign
embassies and legations here
to observe the District of
Columbia zoning regulations"
by building chanceries in busi-
ness instead of residential
areas. The move was ruled out
as not germane.