Evening star., 1961-08-16
MajorChanges
Threaten Aid
Plan in Senate
BY J. A. OTEARY
Star staff Writer

BY J. A. OLEARY
Star staff Writer
The foreign aid scene of bat
tie moved from the Senate to
the House today as admins
tration leaders of the first
branch began searching for a
compromise to head off the
threat Of a major change in
the Presidents long-range eco
nomic loan program.
Speaker Rayburn confirmed
the fact that administration
forces were conferring on
amendments, but said he could
not discuss their nature at this
time.
From other sources it was
understood they were looking
for some language that would
head off a successful Repub-
lican-conservative Democratic
coalition either to reduce the
five-year duration or cut the
Presidents total borrowing au-
thority below $8.8 billion.
As the House began work on
amendments, the Speaker said
the crucial issue of the long
range borrowing authority
might be reached today, be-
cause it is one of the first pro-
visions in the bill.
Williams Plan Up
With both Houses working
simultaneously, the Senate was
pushing for a vote on the
amendment of Senator Will
liams, Republican Of Delaware,
to prevent Latin American
countries from re-lending
American aid money to their
own people at more than 8 per
cent interest.
Administration supporters
were reluctant to accept the
Williams amendment because
initiation has pushed up interest
rates in Latin America.
Chairman Fulbright of the
Foreign Relations Committee
offered a substitute prohibiting
excessive" rates, or more than
the legal rate in any country.
BY a tie vote, 46 to 46, the
Senate last night defeated a
move by Democratic Senator
Lausche of Ohio to reduce the
amount for economic loans over
the next five years from $8.8
billion to $7.3 billion.
The Senate began to make
progress on the bill late yes
terday after settling the con-
troversy over how Congress
should supervise the long
range economic loan program.
Administration leaders fl
nally went along with Republi-
can Leader Dirksen to put
through an amendment under
which Congress would get a
chance to examine and veto all
loans of more than IS million.
No Great Concession
The DirkSen amendment,
adopted 50 to A, was not a
great concession by the ad-
rninistration, because existing
law and the pending bill con-
tain another provision under
which Congress by concurrent |
RESOLUTION could cancel any
foreign aid program.
Senator Fulbright had stated
on Monday that lawyers ad-
yised him this general veto
power could have been applied |
to any one loan under the new
long-range program.
The Senate defeated moves
by Senator Ellender, Democrat
Of Louisiana, which would
have:
Reduced the fund for mill
tary aid to friendly nations
from $1.8 billion to $1.3 billion.
It failed, 81 to 38.
Limited the United States
share Of United Nations opera
lions in the Congo to 40 per
cent. This was beaten, 81 to
"A.
Insurance Ban Adopted
The Senate adopted a mo-
ton by Senator Lausche to
prevent the Government from
ihsuring normal business losses
Of American investors overseas.
The amendment leaves in the
bill a $1.1 billion fund to in
sure American investors against |
loss by seizure, appropriation
or inability to convert foreign |
currency into dollars.
There were growing indica-
tions that House Democratic |
leaders also might accept a key |
amendment which made no
major change in the Treasury |
borrowing provision but spelled |
out clear-cut assurance of close
congressional supervision over
leng-term development loans.
These leaders, however, did
not say whether they would
agree to the type of amend
ment sponsored in the Senate
yesterday by Senator Dirksen.
G. o. p. May Yield
There we're signs also in the
House that the Republican
leadership would modify its
earlier hard and fast stand
against what it called back
door spending" in the foreign
aid bill. G. o. P. Leader Hal
leck told reporters that a major
amendment was being prepared
for submission, probably by
Representative Judd, Republi-
can Of Minnesota. Mr.. Hslleck
said this would not go as far
as the Byrd amendment"
That amendment offered by
Senator Harry F. Byrd, Demo-
crat of Virginia, and defeated
in the Senate last Friday, would |
have required annual congress
sional appropriations instead of
the Treasury borrowing method