FOREIGN ECONOMIC ASSISTANCE, 1973 TUESDAY, JUNE 26, 1973 UNITED STATES SENATE, Washington, D.O, The committee met, pursuant to notice, at 10 a.m., in room 4221, Dirksen Senate Office Building, Senator J. W. Fulbright (chairman), presiding. Present: Senators Fulbright, Pell, Aiken, Case, and Javits. OPENING STATEMENT The committee this morning begins consideration of legislation to authorize appropriations for foreign economic assistance. There are three bills before the committee. S. 1711 is the executive branch's formal request. S. 2026, introduced by several of my colleagues on the committee, would authorize funds on an activity or sector basis to replace the existing development lending and technical assistance programs. It would also authorize a new program to expand exports to developing countries at subsidized interest rates. It is my understanding that the executive branch supports the basic provisions of this legislation. Yesterday I introduced a bill, S. 2059, not for the purpose of obtaining action on it this session, but in order to stimulate public discussion of foreign assistance issues. There is, I believe, general agreement that the traditional foreign economic aid program does not command the support of Congress or the public. What is needed, in my opinion, is not a cosmetic job to make foreign aid a more salable package to the public and Congress, but a thorough study of the entire spectrum of our Nation's economic relationships with the developing countries, of which foreign aid is only a small factor. For the last 9 years matters relating to the war and the restructuring of executive-legislative relationships have dominated the interest, energies and time of the Committee on Foreign Relations. Hopefully, the war is now behind us and the committee can turn its attention to long-neglected policy areas such as foreign assistance and the entire spectrum of our Nation's relationships with the poorer countries. I hope that the committee will devote itself to this task in the months ahead. We e are pleased to have as a principal witness this morning Dr. John A. Hannah, Administrator of the Agency for International Development. He is accompanied at the witness table by Mr. Robert Nooter, Assistant Administrator for Supporting Assistance, AID. I understand that representatives from the various AID regional bureaus and the office for population and humanitarian assistance are available to answer specific questions involving their areas. [Text of S. 1711, S. 2026, S. 2059 and additional materials follow:] (1) 93D CONGRESS 1ST SESSION S. 1711 IN THE SENATE OF THE UNITED STATES MAY 7, 1973 Mr. SCOTT of Pennsylvania introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To amend the Foreign Assistance Act of 1961, and for other purposes. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Foreign Assistance Act 4 of 1973". 5 6 DEVELOPMENT LOAN FUND SEC. 2. Title I of chapter 2 of part I of the Foreign 7 Assistance Act of 1961, relating to the Development Loan 8 Fund, is amended as follows: 9 10 11 (a) In section 202 (a), relating to authorization: (1) immediately after "fiscal year 1972," strike out "and"; 1 2 3 4 5 6 7 8 (2) immediately after "fiscal year 1973," insert "$201,400,000 for the fiscal year 1974, and $201,400, 000 for the fiscal year 1975"; (3) immediately after "June 30, 1972," strike out "and"; and (4) immediately after "June 30, 1973," insert "June 30, 1974, and June 30, 1975.". (b) In section 203, relating to fiscal provisions, strike 9 out "for the fiscal year 1970, for the fiscal year 1971, for 10 the fiscal year 1972, and for the fiscal year 1973” and in11 sert in lieu thereof "for the fiscal year 1974 and for the fiscal 12 year 1975". 13 14 TECHICAL COOPERATION AND DEVELOPMENT GRANTS SEC. 3. Title II of chapter 2 of part I of the Foreign 15 Assistance Act of 1961, relating to technical cooperation and 16 development grants, is amended as follows: 17 18 19 20 21 22 23 24 25 26 (a) In section 211 (a), relating to general authority, in the last sentence immediately after the word "assistance”, insert the word "directly". (b) In section 212, relating to authorization, strike out "$175,000,000 for the fiscal year 1972 and $175,000,000 for the fiscal year 1973" and insert in lieu thereof "$165, 650,000 for the fiscal year 1974 and $165,650,000 for the year 1975". fiscal (c) In section 214, relating to authorization for Amer ican schools and hospitals abroad: 1 2 (1) subsection (c) is amended to read as follows: "(c) To carry out the purposes of this section there is 3 authorized to be appropriated to the President for the fiscal 4 year 1974, $10,000,000, and for the fiscal year 1975, $10, 5 000,000, which amount are authorized to remain available 6 until expended."; and 7 8 9 (2) subsection (d) is repealed. HOUSING GUARANTIES SEC. 4. Title III of chapter 2 of part I of the Foreign 10 Assistance Act of 1961, relating to housing guaranties, is 11 amended as follows: 12 (a) In section 221, relating to worldwide housing guar13 antees, strike out "$205,000,000" and insert in lieu thereof 14 "$480,000,000". 15 (b) In section 222 (c), relating to Latin American 16 housing guarantees, strike out "$550,000,000" and insert in 17 lieu thereof "$594,900,000". 18 (c) In section 223 (i) relating to general provisions, 19 strike out "June 30, 1974" and insert in lieu thereof "June 20 30, 1976". 21 22 OVERSEAS PRIVATE INVESTMENT CORPORATION SEC. 5. Title IV of chapter 2 of part I of the Foreign 23 Assistance Act of 1961, relating to the Overseas Private In 2 2 2 2 2 2 6 25 vestment Corporation, is amended as follows: (a) In section 231 (d), relating to insurance operations, 26 immediately after the word "risks" insert the words "with |