Evening star., 1961-08-04
Senate Starts
SS.S Billion
AidArqun1ent

Senator Fulbright, Democrat
Of Arkansas. opened the for
eign aid debate in the Senate
today with a vigorous denial
that Congress would surrender
its control of the purse strings
by giving President Kennedy
authority to borrow $8.8 bill
lion for economic loans over the
next five years.
The biggest threat to the
Presidents program is the
amendment of Senator Harry
F. Byrd, Democrat of Virginia,
to- strike out the borrowing au-
thority and require the Presi-
dent to come back to Congress
for an appropriation each year.
Senator Fulbright, chairman
of the Foreign Relations Com
mittee, laid great stress on the
point that a permanent law
known as the Government
Corporation Control Act-con-
tains an explicit provision that
the use of borrowed funds in
any agency may be limited by
Congress from year to year.
Power Seldom Used
Although relying on this law.
Senator Fulbright admitted
that, while there will be un-
questioned authority to reduce
or even eliminate funds avail
able for development lending,
lin practice the Appropriations
Committees in the past have
seldom exercised this authority
with respect to such Govern
ment corporations and agencies
as the Export-Import Bank"
The important point, Senator
Fulbright argued. is that under
the aid bill and the Government
Corporation Control Act it is
left to the Congress to deter
mine where the line should be
drawn in limiting the borrow
ing authority.
"In short" Senator Fulbright
continued, "the legislation be-
fore us does provide for re-
straints on the normal appro-
priations process, but it is'self-
restraint. This being so. there
can be no danger of executive
usurpation. Congress is indeed
being asked to give new au-
thority to the executive. The
commitment is a real one, but
it is also tentative, subject to
modification or withdrawal"
Repayable in Dollars
In support of the long-range
economic loans, the Senator
emphasized that they would be
repayable dollars whereas past
loans could be paid in foreign
currencies. He also emphasized
that a long-term authorization
would encourage the other pros
porous Western powers to join
the United States in meeting
the needs of the underdeveloped
nations.
Senator Fulbright was critical
of the amounts this country
has spent in Korea and For
mosa as against other areas,
and called for a thorough
going reappraisal" to avoid
letting the program be domin-
ated by sentimental attach
ments to old friends and lost
causes"
He said that if some of the
money spent in Korea and For
mosa had been invested in
India and Brazil those countries
would now in all probability
be considerably nearer to self
sustaining growth.
Senator Fulbright said the
new program contemplates aid
ing those areas that have
fulfilled the preliminary re-
quirements for growth and de-
velopment. On this basis, he
said three-fourths of the loan
funds in this bill are earmarked
for India, Pakistan and Brazil.
For the first year the bill
authorizes the President to bor-
row about $1.2 billion for eco
nomic loans. 1t also contains
appropriations of $3.1 billion
for military aid and economic
grants.
A surprising development
came yesterday in the foreign
aid fight when Senator Nc
Namara, Democrat of Mich
igan, a liberal, drafted a mo-
ton that would kill all eco
nomic foreign aid, including the
Presidents $8.8 billion loan
fund.
MY amendment has to do
with failure to solve the unem-
ployment problem, to make
proper provision for aged citi-
zens and to pass Federal aid to
education" Senator Mcnamara
told a reporter.