Evening star., 1962-09-18
AID
Drain on U. S. Cited
In Committee Report
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administration for economic
and military assistance for the
fiscal year which began on
July 1.
Agencies Included
Actually, the overall cut
from the administrators rec
Concentrations for mutual Sc
curity programs and various
related agencies amounted to
$1,378,177,000. This resulted
from inclusion Of appropria-
tions for the Peace Corps. In
ternational Monetary Fund,
Export-Im Bank. a United
States Information Agency ra-
dio project, the Foreign Claims
Settlement Commission and
State Department expenses for
international conferences and
organizations.
As for economic and military
assistance, the committee rec
commended q total Of $3,630,-
10000 This was a cut Of more
than $1.1 billion from the SAT
billion ceiling set by Congress
in an authorization bill last
July.
This amount for the mutual
security program also repre-
sented a cut Of $2s4 million
from the $50 billion appro-
priated by Congress last year
for economic and military as
sistance.
The bills overall total was
$5,356.852. 900 for all programs
and purposes.
Most Items Trimmed
The PassInan subcommittee's
report which the full commit
tee approved today trimmed
practically every major item. II
also bristled with criticism OF
many foreign aid activities and
policies. The cut for economic
and military assistance alone
was enough to shock and sur
prise sponsors of the Admins
tration's original bill and Of the
Foreign Affairs Committees au-
thorization bill, which the
House approved last July.
The magnitude of the cut
proposed by his own subcom-
mittee also may have surprised
Mr.. PasSman. He had predicted
a slash Of at least 81 billion
and had indicated it might
reach $1.3 billion. It was learned
unofficially after a subcommit-
tee meeting last night, that the
foreign aid cut would be in the
lneighborhood of SIS billion,
This information turned out
to be substantially correct on
the basis Of a comparison be-
tween economic and military
aid cuts and the authorization
bill ceiling for the same pro-
grams,
The subcommittee report to-
day, however, based its COM
parsons mainly on requests
sent to Congress early this year
by President Kennedy fol-
mutual security programs and
numerous related activities
This accounted for the listed
cut Of more than $1.6 billion.
Reductions Listed
Major reductions included:
Economic assistance cut S1.1
billion from a requested .S3.4
billion; military assistance, cut
5000 million from a requested
SIS billion; development loans
cut $475 million from $1.2 bill.
lion; development grants, cut
$l10 million from a requested
$685. million; supporting as
sistance, cut $131 million from
a requested $481 million; con.
tingency fund, cut SITS mil.
lion from q requested $400 mil.
lion. Alliance for Progress, cut
SIS million from a requested
$500 million; and Peace Corps
cut $11 million from a re.
quested $73 million.
The subcommittee report ex.
planned that the foreign aic
appropriation bill this year at.
tempted to put together al
readily identifiable sections
OF this country's foreign aiC
operations.
"The foreign aid program a.
presented to Congress by thu
President is scattered through.
out the budget" the report
complained. Parts Of it arr
found under funds appropri,
ated to the President, a portion
is found in the Defense Depart.
ment, and other parts arr
found under the Treasury
State and Health, Education
and Welfare departments.
I'm addition to this bill
other segments of the foreign
aid program are the use Of sur.
plus agriculture commodotie
and the use of local currencie
abroad. An indetermate bu
not inconsequential element o
the program is the cost to Dor
) row money which is so freel,
given away"
Gold Flow Noted
Noting that the balance o
payments and the out-go golt