Evening star., 1963-03-24
Much Foreign Aid Money Wasted, Clay Asserts,
Citing Surprises Resulting From Close Look

A@N~Auo ~ N4uy Ddlu To-
DAY Il feel that a lot Of money
has been wasted" in the United
States foreign aid programs,
and he added In an interview:
ITS got to be tightened I'D.
To continue to give economic
assistance to countries that
have done little or nothing to
help themselves is throwing
money away"
Which counties come in
this category?
Gen. Clay declined to identi-
~ any for publication. But he
said David E. Bell. foreign aid
administrator, knows what we
think Of every country receiv-
Ing assistance"
90 Gen. Clay is chairman of a
presidential committee study
ing the vast, many-sided
American aid program, which
Is now in its 18th year and
has distributed nearly 500 bill
lion. The committee's report
was submitted to President
Kennedy today.
Thinks Report Fair
- In the report, the words
reductions" "cilrtailnent "
sharpening. up" should be
terminated" Tightening up"
and phase out appear re-
peatedly.
- II don't know II you would
call 1t q tough report" Gen.
Clay said, but I think it's q
fair one" IL
The report says AmericanI
aid is necessary and would
continue to be so even II "all
our outstanding differences
with the Communists were to
be resolved tomorrow"
In spite Of his own long ex-
perience with foreign prob
; lems. Gen. Clay said several as
poets Of the present program
J surprised him when he took q
close look ct it.
II was surprised by the num-
Der Of countries, to which we
are giving assistance" he said.
i didn't realize how far 1t had !
spread. /
e Il was surprised by the |
amount Of aid some are getting
In proportion to Others" He 9
said the amount going TO !
Southeast Asia Is very high" 9
2 Another surprise, Gen. Clay I
said, was to discover how much Q
american money has been GO
ing to countries with wealth. 8
producing resources Of their ;
own. z
Witnesses Heard In
The study began with hear q
ings to which representatives Of !.
the aid program, the State De- !, :
partment, and the military were !. :
called 10 testify. :, =
= "The new director (Bell) has =
had the benefit Of these hear =
ings," Gen. Clay said. Hes on :,
top Of 1t now. He has the de- y =
termination and he has the y
ability to put this program 4
where It belongs" = :
~ Gen. Clay said he believed
the report would be more un- Z,
derstandable II we could have q
referred to specific countries" a,
70 illustrate specific points in n
the recommendations. Only a +
few nations are identified by n
name. But he said Mr.. Bell u
knows the committee thinking /.
that underlies the recommen.
dations IN each case.
The committees next step.
Gen. Clay said, is to take q n,
close look at organization and n
personnel In the administration =
Of the program. He said bothlT,
the quantity and quality Of the a
people involved win be exam n
ined. OF the level Of efficiency, .,
Gen. Clay said: In,
Very mixed. Some Of the n
people are able, qualified, GAL N
liant. But the staff has been
built up rapidly and there Is A,
an unquestionable need for up q
grading. II our recommends N
tons are carried out 1t viii re- q
suit In q reduction Of people n
and programs" C
Z Overall Reductions Seen =,
+, OF the overall effects Of the ic
report, Gen. Clay said: pl
IF they follow our recon- III
mendations, ] would say that d.
ever the next three years 1t Sc
would result in substantial re- d
auctions Of the cost Of foreign rs
aid, even though there may be 81
additions to the whole program. II
The only way you can keep te
foreign aid going is to con-
vince the American people it's Il
IN their national interest. And :
you can't do that If they think
their money Is being thrown a,