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COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES

EIGHTY-NINTH CONGRESS

SECOND SESSION

ON

H.R. 12449

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

AND

H.R. 12450

A BILL TO PROMOTE THE FOREIGN POLICY, SECURITY,
AND GENERAL WELFARE OF THE UNITED STATES BY
ASSISTING PEOPLES OF THE WORLD IN THEIR EFFORTS
TOWARD INTERNAL AND EXTERNAL SECURITY

60-929

MAY 10, 11, 12, AND 17, 1966

PART VI

Printed for the use of the Committee on Foreign Affairs

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COMMITTEE ON FOREIGN AFFAIRS

THOMAS E. MORGAN, Pennsylvania, Chairman

CLEMENT J. ZABLOCKI, Wisconsin
OMAR BURLESON, Texas
EDNA F. KELLY, New York
WAYNE L. HAYS, Ohio

ARMISTEAD I. SELDEN, JR., Alabama
BARRATT O'HARA, Illinois

L. H. FOUNTAIN, North Carolina
DANTE B. FASCELL, Florida
LEONARD FARBSTEIN, New York
CHARLES C. DIGGS, JR., Michigan
LINDLEY BECKWORTH, Texas
HARRIS B. MCDOWELL, JR., Delaware
WILLIAM T. MURPHY, Illinois

CORNELIUS E. GALLAGHER, New Jersey
ROBERT N. C. NIX, Pennsylvania
JOHN S. MONAGAN, Connecticut
DONALD M. FRASER, Minnesota
RONALD BROOKS CAMERON, California
BENJAMIN S. ROSENTHAL, New York
EDWARD R. ROYBAL, California

JOHN C. CULVER, Iowa

LEE H. HAMILTON, Indiana

ROY H. McVICKER, Colorado

FRANCES P. BOLTON, Ohio

E. ROSS ADAIR, Indiana

WILLIAM S. MAILLIARD, California
PETER H. B. FRELINGHUYSEN, New Jersey
WILLIAM S. BROOMFIELD, Michigan
J. IRVING WHALLEY, Pennsylvania
H. R. GROSS, Iowa

E. Y. BERRY, South Dakota
EDWARD J. DERWINSKI, Illinois

F. BRADFORD MORSE, Massachusetts
VERNON W. THOMSON, Wisconsin
JAMES G. FULTON, Pennsylvania

BOYD CRAWFORD, Staff Administrator
ROY J. BULLOCK, Senior Staff Consultant

ALBERT C. F. WESTPHAL, Staff Consultant

FRANKLIN J. SCHUPP, Staff Consultant
ROBERT F. BRANDT, Staff Consultant
HARRY C. CROMER, Staff Consultant
PHILIP P. BILLINGS, Staff Consultant
MARIAN A. CZARNECKI, Staff Consultant
MELVIN O. BENSON, Staff Consultant
JUNE NIGH, Senior Staff Assistant
HELEN C. MATTAS, Staff Assistant
HELEN L. HASHAGEN, Staff Assistant
LOUISE O'BRIEN, Staff Assistant

MARY M. LALOS, Staff Assistant

DORIS B. MCCRACKEN, Staff Assistant
JEAN E. SMITH, Staff Assistant

ROBERT J. BOWEN, Clerical Assistant

NITED STATES OF AMERICA

CONTENTS

Tuesday, May 10, 1966:

LIST OF WITNESSES

Caldwell, Chancellor John T., North Carolina State University at
Raleigh, chairman, International Affairs Committee, National
Association of State Universities and Land-Grant Colleges..
Eberly, John H., General Brotherhood Board, Church of the Brethren.
Hicks, W. B., Jr., executive secretary, Liberty Lobby____.

Smith, Hon. Neal, a Representative in Congress from the State of
Iowa...

Wednesday, May 11, 1966:

Page

896

915

919

891

Baker, Rex G., Jr., vice president, National League of Insured
Savings Associations_

934

Bennett, Hon. Charles E., a Representative in Congress from the
State of Florida__.

927

Jacobson, Mrs. Mortimer, national president, Hadassah, representing
the Hadassah Medical Relief Association, Inc..

941

Wolff, Hon. Lester L., a Representative in Congress from the State of
New York

960

Thursday, May 12, 1966:

Bayh, Hon. Birch, a U.S. Senator from the State of Indiana____. Tuesday, May 17, 1966:

969

Gaud, Hon. William S., Deputy Administrator, Agency for Inter-
national Development..

1010

Gurney, Hon. Edward J., a Representative in Congress from the
State of Florida___

997

STATEMENTS AND MEMORANDUMS SUBMITTED
FOR THE RECORD

Letter to Hon. Thomas E. Morgan, Chairman, from Hon. Douglas Mac-
Arthur II, Assistant Secretary of State for Congressional Relations,
concerning H.R. 5255, relating to establishment, strengthening and
maintenance of programs on foreign development by colleges and uni-
versities, etc.

List of members of the National Association of State Universities and
Land-Grant Colleges...

893-894

914-915

Document prepared by Library of Congress on United Nations aid to
Communist countries__

931-932

943

948-960

Memorandum supplied by Hadassah on amount of money collected for Hadassah projects, fiscal year ending June 30, 1965....... Information submitted by national president, Hadassah, on the medical program of Hadassah Medical Relief Association, Inc.. Memorandum supplied by Hon. Birch Bayh, U.S. Senator from Indiana, on U.S. imports of selected steel mill products from Japan, 1958-65--- 971 Report submitted by Hon. Birch Bayh of inspection by AID in Saigon, of galvanized flat and corrugated iron sheets originating from Korea. 972-973 Memorandum supplied by Hon. Birch Bayh concerning prices paid by AID for corrugated steel sheets---.

Memorandum supplied by Hon. Birch Bayh relating to AID questionnaire to Korean steel producers concerning f.o.b. prices of galvanized iron and steel sheet___

973

981

Correspondence between Hon. Thomas E. Morgan, Chairman, and Agency for International Development, concerning the Bayh amendment relating to procurement of iron and steel sheet products for Vietnam. 990-994

FOREIGN ASSISTANCE ACT OF 1966

TUESDAY, MAY 10, 1966

HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,

Washington, D.C.

The committee met at 10:20 a.m. in room 2172, Rayburn Building, the Honorable Clement J. Zablocki, presiding.

Mr. ZABLOCKI. The committee will come to order. The committee meets this morning to resume hearings on the foreign aid bills, H.R. 12449 and H.R. 12450. We are indeed privileged and honored in having one of our colleagues before us this morning, the Honorable Neal Smith of Iowa.

You may proceed, sir.

STATEMENT OF HON. NEAL SMITH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF IOWA

Mr. SMITH. Mr. Chairman, I appreciate the opportunity to be here. I have a prepared statement. If I may I will submit it for the record. Mr. ZABLOCKI. Without objection, it is so ordered. (The statement referred to is as follows:)

STATEMENT BY CONGRESSMAN NEAL SMITH TO THE HOUSE FOREIGN AFFAIRS

COMMITTEE IN SUPPORT OF H.R. 5255

Mr. Chairman, I appreciate having this opportunity to testify in support of H.R. 5255 which I recommend either be passed as a separate bill or included in H.R. 12449. One of the reasons I introduced this bill is because one of the leading universities in the country, Iowa State University, is in the District I represent and conversations that I have had with the President of the University and professors at the University have convinced me that performance and accomplishment at the present time are less than they would be under the longer term institutional arrangements provided in the bill.

This bill authorizes the creation and maintenance of foreign development centers at universities which are engaged in foreign technical assistance projects. At the present time contracts with universities for advice, counsel and help concerning development projects in a particular country, are usually for a period of not to exceed three years. Quite often the university accepting the contract finds it difficult to find competent professional personnel to carry out the contract on such a short-term basis. Therefore, they often recruit a substantial part of their personnel for the contract and since the personnel recruited cannot be offered tenure, it is often difficult to attract the most competent individuals away from some other position which would include tenure and security.

If a university could plan to specialize in the problems for a certain country or area for a period of ten years, it could not only attract more competent people but could also utilize the experience gained to a much better advantage for the government. When someone finishes a short-term contract and then moves on to some other area of responsibility without even leaving associates in a continuing program fully exposed to the knowledge and experience he gained, it cannot help

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