Evening star., 1961-05-26
TEXT OF KENNEDY LETTER
Foreign Aid Bill Explained

i President Kennedy's letter
u he sent to Congress today:
lvelopment cannot be achieved
by annual, Short-term dispen
sations of aid and uncertaint!
as to future intentions. tt
make investments in economic
development more effective
the terms and conditions Of tht
investment should be related
to the establishment Of sounc
long-term development planl
and the achievement Of specific
targets.
While the methods proposed
represent a departure from
previous patterns in economic
aid programs, they conform tt
the traditional techniqueS o!
numerous other governmental
operations. These methods art
essential to our new approach
to development assistance anC
to the effectiveness Of that ap'
proach.
Military Aid Plans
The International Peace ant
Security Act will continue th'
program of military assistance
which constitutes an integra
part Of our whole security anc
defense posture. 1t is essentia
that this program be main
tanned and continued in th'
present international climate.
Appropriations will be sought
to provide for the United
States share Of maintaining
forces that already exist, Il
complete undertakings initiated
in earlier years, to give in.
creased emphasis to interna
security, and to provide for &
limited and selected moderni'
zation of forces in areas under
particular duress.
I envisage a continuous re-
view and assessment of tht
needs for military assistance
around the world and continu'
ing discussions with our allie
and associated nations to de-
termine the extent to which
expenditures for defense car
safely be lessened. Such ad'
justments necessarily may not
be accomplished overnight, and
| in any case, neither we nor oul
allies can afford a relaxation
in the maintenance Of an ef-
fective collective deterrent Il
armed aggression.
The increasing problems oi
internal security with which we
are confronted reflect an ex-
panded utilization Of the tech
nique Of indirect Subversior
which demands new and more
vigorous counter measures Il
the spread Of internationa
communism is to be prevented
Assisting developing countrie!
to create and maintain an en-.
vironment of security and sta
bility is essential to their more
rapid social, economic and po-
litical progress.
Organization Needed
The achievement Of our goals
requires effective organiza-
tional arrangements to execute
these programs.
In this regard. section 604 OF
the Mutual Security Act OF
1860 placed two requirements
upon the President: Cd TC
have a study made Of thu
functions of, and the degree O.
coordination among, agencies
engaged in foreign economic
activities, with a view of provid'
ing the most effective means
for the formulation and i'm
fermentation Of United States
foreign economic policies and
(2) to include in his presenta-
ton of the fiscal year 1867
mutual security program tc
the Congress his findings and
recommendations resultin
from that study.
To fulfill the first require
ment, at the request Of the
President the Bureau Of the
Budget conducted a study OF
the existing situation and pre-
pared a descriptive and analyt-
ical staff report. That report
and the results Of studies initi-
ated by this administration
have been available to execu-
tive branch officials concerned
with foreign economic affairs,
The recommendations which
follow constitute my response
to the second requirement.
The Decisions
My decisions on foreign af-
fairs organization are predicted
on the following principles:
First, authority for the con-
duct Of activities which ad-
vance our foreign policy OBJ
jectives should be vested in the
President or other officials pri-
marily concerned with foreign
affairs.
Second, international activi-
ties of domestic agencies should
be clearly either Cd necessary
extensions of their normal do
mestic missions or CID UNDER
taken on behalf Of and in sup