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Section 271 authorizes the President to furnish assistance to southeast Asia through multilateral institutions and through multilateral and/or bilateral programs or projects which serve regional development purposes. The furnishing of assistance under this title would, of course, be subject to appropriation requests to the Congress, based on specific programs.

While it is not possible at this time to indicate specific magnitudes of funds for which appropriations will be sought under the proposed authority, the executive branch considers favorable action by the Congress to be of particularly timely importance.

We feel that the establishment of a separate title and special authority for assistance to southeast Asia has the unique advantage of demonstrating this emphasis as a new departure thereby drawing the interest of other countries and encouraging their contributions to multilaterally administered funds for development in southeast Asia. Increased involvement on the part of developed nations in the future of southeast Asia is an important objective of the President's new approach to the problems of the region.

The criteria set forth under section 272 of the new title are designed to encourage Asian initiatives in development and to stimulate cooperative efforts in solving common problems. Thus, funds used for the purposes of this title could be made available to the International Bank for Reconstruction and Development and the Asian Development Bank under their supervision, employing their criteria and procedures instead of those of AID. This would insure that these two Banks could operate as truly independent international institutions and administer effectively multilateral funds made up of contributions from more than one country.

Section 273 of the new title authorizes appropriations to the President for each of the fiscal years 1967 through 1971 of such funds as may be necessary to carry out the purposes of this title. However, no appropriation under this title is being requested at this time for fiscal year 1967. The executive branch will seek funds under this authorization as additional programs are developed. In fiscal year 1967 the initial portions of the expanded southeast Asia development program will continue to be carried out on a limited basis with technical cooperation and supporting assistance funds, to the extent those funds are available for such activities.

The executive branch would, of course, be available for further examination of the program by the committee. This would permit the committee to make informed recommendations regarding the course of AID programs under title VIII.

Mr. POATS. We did have the difficulty, as I said, of trying to determine what would be appropriate each year for a 5-year period in this new multilateral effort in southeast Asia with all the uncertainties we face there.

Mr. FRELINGHUYSEN. For that very reason since there are so many uncertainties, why are you asking for authority for so long a period? I think that question deserves an answer. If you really cannot foresee the extent of the commitments that this country may want to make in its own interests in southeast Asia, if you lack sufficient clarity to look 12 months ahead, why are you asking for a 5-year authorization? Mr. POATS. I think the answer is largely procedural. This is part of a 5-year authorization request. It had to be fitted into that

structure.

Mr. FRELINGHUYSEN. That raises questions about the justification for the entire theory. I gather that this is simply a ploy. You are hoping to get something more than a 1-year authorization by asking for 5. It doesn't make much sense, but it is understandable. It doesn't make much sense that you want to spend less time with this committee, and we will not be relieved of many responsibilities unless we shirk our job.

Mr. POATS. We would expect to come before the committee and have the committee express its judgment and this would have effect on the Appropriations Committee.

Mr. FRELINGHUYSEN. How can we have any chance to influence in any major way what you are planning?

Mr. POATS. You would influence our conduct of operations and the appropriation amount.

Mr. FRELINGHUYSEN. We won't influence it if we have already authorized an open-ended amount. This is what has been traditionally our function, to try to influence what the Appropriations Committee would make available.

Mr. POATS. We would come before you and say "in connection with this open-ended amount we would request so much more for that item-what is the committee's judgment"?

Mr. FRELINGHUYSEN. I don't mean to impose on the committee's time or the witnesses' but it disturbs me very much that we should be arguing for a 5-year program when we can't even see 12 months ahead. We cannot know what type of program we may need and what kind of commitments we may want to make.

Chairman MORGAN. Mrs. Bolton.

Mrs. BOLTON. Thank you, Mr. Chairman.

I want to ask you a little bit about the health business. The President emphasizes it constantly. I read in the paper, I think yesterday, that there are four times as many rats in Vietnam as people. Is that so and if at all so what are you doing to clear out the rats?

Mr. POATS. I think we have a record of having set up a program there of pesticides, which as of last count had produced the tails of something like 38 million dead rats in 1964, rats which could have consumed 95,000 tons of food. I recall a period of one

Mrs. BOLTON. Are they very prolific?

Mr. POATS. Rat poison is one of the principal requirements of the so-called provincial operations work. We stockpile insecticides and pesticides and provide them to the agricultural workers.

Mrs. BOLTON. You are working at it?

Mr. POATS. Yes.

Mrs. BOLTON. The newspapers state there are 400 cases of plague. Mr. POATS. Plague is a matter of concern. We have immunization programs in these areas where plague outbreaks occur.

Mrs. BOLTON. I do know something about a kitchen and wonder how are you going to make these people like proteins when they have been accustomed to rice?

Mr. POATS. We have several experimental projects on now to introduce high protein content biscuits, crackers, and cereals, run by the voluntary agencies and through the Government welfare program. We had some experience in Latin America on the fortification of milk. This is now a basic AID program.

Mrs. BOLTON. There is much milk in Vietnam?

Mr. POATS. One of the major Vietnamese imports is sweetened condensed milk, which normally comes under the Public Law 480 program.

Mrs. BOLTON. It has to be imported?

Mr. POATS. Yes. Some is now being produced in Vietnam.

Mrs. BOLTON. In Africa we had a difficult time with the proteins. Thank you very much, Mr. Zablocki and Mr. Chairman and you gentlemen.

Chairman MORGAN. Mr. Zablocki.

Mr. ZABLOCKI. Thank you, Mr. Chairman.

I would like to join Mrs. Bolton and express my appreciation for the testimony that was presented to the committee this morning, and the fact that the statements were made available without being labeled "Secret" or "Confidential." I don't believe our AID program is getting enough attention in the press. We read a lot about our military activities in Vietnam but not enough of what the United States is doing in the economic, psychological, and political field.

To that extent I am very happy that the chairman has agreed to permit the Subcommittee on the Far East and the Pacific to hold hearings after the Easter recess specifically on the question of U.S. activities in these fields-in Vietnam and southeast Asia. The hearings will be specifically limited to economic assistance and matters other than military. What we do and how well we use the lessons we learn in Vietnam is most important. I feel we can win military battles and still lose the political war.

Then, too, our AID program is frequently severely criticized, therefore, it is refreshing to read where a person who has had an opportunity to learn about the AID program for example, in Vietnam, has nothing but praise for it.

Mr. Chairman, I would like permission to insert in the record a letter that was sent to the USOM personnel in Vietnam by a resident of Wisconsin which I believe is indicative of the attitude of most Americans when they realize what we are doing there.

Chairman MORGAN. Without objection, it is so ordered.

(The letter of Maureen Rinzel, above referred to, is as follows:)

"GERMANTOWN, WIS.

"DEAR FELLOW AMERICANS: After reading an excellent article about the tremendous job the men of USOM are performing in Vietnam, I decided to take some time and extend my praise to you personally. All of you are doing work which certainly cannot be measured in true worth on this earth. It is through your actions and blood that the war in Vietnam shall be won; and as a fellow American my thoughts are constantly over there with you and my prayers are always behind you.

"I think one has to be dedicated to the betterment of society before one can be truly convinced that all wars aren't won by bombs, militia, guns, etc. Being a teacher myself, I know what a great feeling it is to see a child grin from ear to ear over some accomplishment. Being a home economist, I see even better how the improving of the social and economical problems can open the door to a really better place a better Vietnam. This truly would be a great accomplishment. I, myself, hope that someday I can give my services such as you are doing. God love all of you; you're a great group of Americans.

"Sincerely,

"MAUREEN RINZEL."

Mr. ZABLOCKI. Secretary Bundy, concerning the $28 million fund from the Philippine War Damage Claim Act to be used for joint education programs. I would appreciate if you would put in the record a statement how this money really should be used and a status report on the negotiation for its use?

Mr. BUNDY. I am thoroughly familiar with it, of course. This is a matter that under the appropriate legislation calls for an agreement between the two Presidents on the use to be made of this money.

We have put a broad memorandum of understanding, draft memorandum in front of the Philippine Government, and have not had their firm response.

My understanding is that extensive efforts are underway in the Philippines to get a picture of what use it might go to as between pub

lic universities and private universities, various types of projects that will fall within the spirit and intent of the provision.

Just as soon as we get that draft memorandum worked out, we can proceed to wrap up the projects. How it will proceed from there I don't know. We are going to operate within the legal provisions that require ultimate consent by our President to the uses that are proposed. Mr. ZABLOCKI. Are we going to accede to the recommendations of the conference that the $28 million be made available to the Philippine Government for its sole programing?

Mr. BUNDY. I don't think we have legal power to do so, nor would we think that would be a wise provision. This is a question where from to time the question of our depositing money in the interim without putting it under their control to assist them, the Treasury believes this is not within the powers as the money was appropriated, so this is not being done.

Mr. ZABLOCKI. Mr. Chairman, just one brief question of Mr. Poats. At the top of page 12 of your statement you say that U.S. AID personnel are working in the rural areas of Laos. Can you tell the committee if any Lao Government personnel are working with AID and IVS personnel in these villages and what do they do? This you can supply for the record if you would.

Thank you.

(The information follows:)

LAO GOVERNMENT PERSONNEL INVOLVEMENT IN VILLAGE CLUSTER PROGRAM AID community development advisers and IVS personnel work closely at provincial levels with provincial Governors and district officials in the development of rural programs. Tassangs, the equivalent of our elected township supervisors, and Naibans (village chiefs) are often the center of planning activity. Agents of several Royal Lao Government ministries provide services in the villages. Among these are the Agricultural Extension Service, the Lao Veterinary Service, the Forestry and Water Service, and the Public Works Department. In addition to the provision of teachers for the school system, the Education Ministry provides trained "basic educators" who work with villagers in the areas of adult education, sanitation, simple construction, and home economics. Public Health Ministry medics provide basic medical services. The Lao Army also runs some civic action programs in rural areas which are similar to those of the basic educators.

One of the main objectives of the rural development program in Laos is to maintain and increase popular support for the Royal Lao Government. Lao officials are intimately involved in the direction of the program at all levels. An indication of the interest in this area is that the Prime Minister also holds the rural affairs portfolio.

The Royal Lao Government is working rapidly to strengthen its extension programs in rural areas. Due to a lack of skilled manpower, many of these programs are currently on a pilot basis and do not yet cover all of Laos. In fact, Lao Government participation in development is actually more intensive in areas where a formal program such as the AID-assisted village cluster program operates.

Chairman MORGAN. Mr. Bundy, in your annex at the back of your statement, the table for military assistance for fiscal year 1965, shows a total figure of $194.6 million. Is this a mistake?

Mr. BUNDY. It certainly is. I will correct that as fast as I can add the column.

Chairman MORGAN. Thank you, Mr. Secretary, Mr. Poats. The committee stands adjourned until 10 a.m., Tuesday morning. (Whereupon, at 1 p.m., the committee was adjourned, to reconvene at 10 a.m., Tuesday, March 29, 1966.)

4-MAY- 5

U.S. Congress. House. Cony

HEARINGS

BEFORE THE

1966

COMMITTEE ON FOREIGN AFFAIRS-1
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 POLICARD DONTY,

AND GENERAL WELFARE OF THE UNITED STATES BY
ASSISTING PEOPLES OF THE WORLD IN THEIR EFFORTS
TOWARD INTERNAL AND EXTERNAL SECURITY

60-929

MARCH 29, 30, 31, AND APRIL 5, 1966

PART II

Printed for the use of the Committee on Foreign Affairs

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1966

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