Foreign Assistance Act of 1968

91-302

A BILL TO AMEND FURTHER THE FOREIGN ASSISTANCE
ACT OF 1961, AS AMENDED, AND FOR OTHER PURPOSES

MARCH 11, 12, 1968

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APR 92 1963

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WASHINGTON: 1968

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countries, and particularly those that we help-to get at it just the other way around.

Now, it is true there has been inflation in South Vietnam. Inflation this past year was held to an annual rate of 35 percent. Under the war-torn conditions of that country, that is not too bad. A good many of our funds have gone into an economic stabilization program: the commodity import program, for example; and Public Law 480 assistance, in order to try to maintain some reasonable protections against inflation. But given the circumstances of that war-torn economy, it has not been possible to keep it under direct control.

Again, Senator, the responsibility for the refugees and for the high inflation and for the distresses that are present in South Vietnam surely lies at the door of those who are trying to seize South Vietnam by force, who have been so unresponsive to efforts to bring Southeast Asia to a peaceful conclusion. We tend to forget who and what are in the background. South Vietnam has everything that it takes for a prosperous country except peace. It has a highly intelligent people. It has a favorable climate, important resources, good geographic location. Its basic infrastructure is there-it has not been destroyed by the war in general. It could rebound very quickly if there were peace.

That is the tragedy of the situation. If only these people in Hanoi would accept the fact that the South Vietnamese and the Laotians and the Thais and the others have a right to live their own lives and make their own decisions-and that is the decision they will eventually have to come to-then progress could be very fast indeed in that part of the world.

Senator AIKEN. Well, I am trying to get away from Hanoi and talk about foreign aid.

Secretary RUSK. Yes, I understand, sir.

WHERE DOES CRIME LEAVE OFF AND REVOLUTION BEGIN?

Senator AIKEN. I think there is a tendency on the part of the Administration to judge food values by the number of dollars spent rather than by the results obtained. And that leads me to another question. Our supporting assistance given to different countries in the world is often for the very laudable purpose of oppressing banditry and all kinds of criminality. But sometimes what starts out as banditry or raiding grows to the proportion of a revolution. Now, is it our policy to support revolutions in countries in which we initially helped to control crime? How do you tell when crime leaves off and revolution begins!

Secretary RUSK. We have not taken on a general responsibility in

this field.

I do think that it is fair to say, Senator, that the United States is among the authentically, revolutionary forces in the world: by example, by ideas, and by strong emphasis upon attention to the needs of the common people.

The Alliance for Progress is revolutionary in character. It has been our view that revolution was inevitable, in any event because the ordinary people of the world know that their miseries are not imposed upon them by Providence and that something can be done about it,

and they see that in the developed world a good deal can be done about it. So this entire development effort is revolutionary in character.

Now there are different kinds of revolutionaries. Some of them are supported and fed from the outside, and in certain countries we have given help to help deal with that problem. But we do not take on a general responsibility with regard to the internal affairs of the countries with which we are associated.

REPAYMENT RECORD OF DEBTOR COUNTRIES

Senator AIKEN. We have been carrying on aid programs for a long time. We have given aid in the form of grants, loans, longtime credit on sales, and so forth. What is the record of repayment on the part of the countries to whom we have given longtime credit? Has any group been more conspicuous than any other in meeting their obligations? Secretary RUSK. There have been very few defaults indeed, Senator. I will be glad to put in the record figures on that. (The following information was later supplied:)

Country and loan number

AID LOANS IN DEFAULT (DOLLAR APPROPRIATIONS) AS OF DEC. 31, 1967