Evening star., 1961-07-21
Kennedy Wins Foreign Aid Victory,
Backed on 5-Yeor $8.8 Billion Plan
By ]. A. OTEARY
Star Staff Writer

The Senate Foreign Relations
Committee today virtually COM
pleted work on q foreign aid
bill which gives President Ken
-nedy nearly all that he asked
for.
Although the committee
trimmed $436 million from the
total requested for the current
fiscal year, it left unchanged
the heart of his new approach
authority to borrow $8.8 bill
lion over the next five years for
srepayable economic loans to
underdeveloped countries.
Chairman Fulbright, Demo-
'crat of Arkansas, said he does
not anticipate any further
changes when the committee
meets Monday to vote on re-
porting the revised draft to the
Senate.
A last minute amendment by
Senator williams, Republican
of Delaware, was adopted to-
day requiring the Treasury to
keep more complete records of
the amount of foreign curren-
cies acquired by this country
in connection with the aid pro-
gram.
AS the bill now stands it gives
Mr.. Kennedy $4,326, 500, 900 for
this year, which is $436 million
less than he requested. This
includes the first installment of
about $1.2 billion toward the
. five-year borrowing program.
Chief Weapon
The bill also authorizes him
to borrow an additional SIG
billion over the next four years
for the economic loans, which
will be repayable in dollars and
will constitute the chief weapon
in trying to prevent spread of
communism in Latin America,
Asia and Africa.
The $436 million cut out last
night came mainly from mill
tary items and was regarded as
only a minor setback for the
administration when compared
to the victory in establishing
the long-range approach to
economic aid.
The bill still has a long road
to travel through the Senate
and House. and Democratic
leaders expect further attempts
to change it along the way. But
they are hopeful the principle
OF long-range borrowing will be
sustained, even if one or both
houses change the size or dura-
tion Of the program.
Contingent Fund Cut
The biggest cut the Senate
group made was in reducing the
Presidents contingent fund,
for use in unforeseen situations.
from $500 million to $500
million. But this is still $50
million above last years figure.
The ceiling on military aid
to allies was shaved by $85
million to $1.8 billion, and the
related item Of defense support
was cut by $3l million to $3.50
million. Senator Capehart Re-
publican Of Indiana, was beaten
by a tie vote in trying to cut
military aid more deeply.
Z The President also asked for
discretionary power to trans.
fer UP to $400 million of equip
ment from this country's own
= defense establishment to foreign
aid, and the committee pared
this figure to 5000 million.
This item is not counted in
:. the total of the bill.
Predicts "StrOng Bill"
Senator Humphrey of Min
uesota, assistant Democratic
! leader. said there may be some
further cuts on the floor, but
predicted the Senate will pass
a good strong bill that will
: please the President"
The House Foreign Affairs
Committee has not yet voted
on the major parts of the pro-
! gram.
On motion of Senator Morse,
Democrat of Oregon, the COM
mittee put a limit of SIS mil
lion on military aid to Latin
!. America, to guard against use
. Of American aid to keep
, dictatorial regimes in power.
Senator Morse also secured an
amendment requiring a person.
al decision by the President
before military aid can be sent
to a Latin American country
for internal security.