CHARTS AND TABLES Votes on passage by the House of the Mutual Security Acts of 1952 through Bloc technicians in less developed countries, July 1-December 31, 1958- ICA obligations, cumulative through December 31 as percent of program Page 84 204 205 206 209 218 Investment guaranty program_. 220 ICA overseas employees by legal residence and region as of January 31, 1959__ 266 Midwestern contractors_ 267 Economic assistance/population_. 269 MUTUAL SECURITY ACT OF 1959 MONDAY, MARCH 16, 1959 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met, pursuant to call, at 10:35 a.m., in room 362, Old House Office Building, Hon. Thomas E. Morgan (chairman) presiding. Chairman MORGAN. The committee will come to order. This is the opening hearing on the authorization for the mutual security program for the fiscal year 1960. Without objection, the draft bill will appear in the record at this point. (The draft bill is as follows:) A BILL To amend further the Mutual Security Act of 1954, as amended, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Mutual Security Act of 1959". CHAPTER I-MILITARY ASSISTANCE MILITARY ASSISTANCE SEC. 101. Section 103 (a) of the Mutual Security Act of 1954, as amended, which relates to military assistance, is amended by striking out "1959" and "$1,605,000,000" and substituting "1960" and "$1,600,000,000", respectively. CHAPTER II-ECONOMIC ASSISTANCE DEFENSE SUPPORT SEC. 201. Section 131(b) of the Mutual Security Act of 1954, as amended, which relates to defense support, is amended by striking out "1959" and “$810,000,000" and substituting "1960” and “$835,000,000", respectively. DEVELOPMENT LOAN FUND SEC. 202. Title II of chapter II of the Mutual Security Act of 1954, as amended, which relates to the Development Loan Fund, is amended as follows: (a) In section 203, which relates to capitalization, strike out “(a)"; and insert before the period at the end of the second sentence ", and for advances to the Fund beginning in the fiscal year 1960, not to exceed $700,000,000”. (b) In section 204 (b), which relaties to fiscal provisions, strike out (a)" in the second sentence. (c) Amend section 205, which relates to management, powers, and authorities, as follows: (1) In subsection (b), strike out "three" in the second sentence and substitute "four". (2) In subsection (c), strike out the last sentence. TECHNICAL COOPERATION SEC. 203. Title III of chapter II of the Mutual Security Act of 1954, as amended, which relates to technical cooperation, is amended as follows: (a) In section 304, which relates to authorization, strike out "$150,000,000" and "1959" and substitute "179,500,000" and "1960", respectively. (b) Amend section 306, which relates to multilateral technical cooperation and related programs, as follows: (1) In subsection (a), which relates to contributions to the United Nations Expanded Program of Technical Assistance and related fund, strike out "$20,000,000" and "1959" and substitute "$30,000,000" and "1960", respectively. (2) In subsection (b), which relates to contributions to the technical cooperation program of the Organization of American States, strike out "1959" and substitute "1960”. (c) In section 308, which relates to the International Development Advisory Board, insert "or officers" after "officers" in the first sentence and strike out "to administer this title" in that sentence. SPECIAL ASSISTANCE AND OTHER PROGRAMS SEC. 204. Title IV of chapter II of the Mutual Security Act of 1954, as amended, which relates to special assistance and other programs, is amended as follows: (a) In section 400 (a), which relates to special assistance, strike out "1959" and "$202,500,000" and substitute "1960" and "$271,800,000", respectively. (b) Insert after section 400 the following new section: "SEC. 401. UNITED NATIONS EMERGENCY FORCE.-The Congress of the United States, recognizing the important contribution of the United Nations Emergency Force to international peace and security, declares it to be the policy of the United States and the purpose of this section to support the United Nations Emergency Force. The President is hereby authorized to use during the fiscal year 1960 funds made available pursuant to section 400 (a) of this Act for contributions on a voluntary basis to the budget of the United Nations Emergency Force." (c) In section 402, which relates to earmarking of funds, strike out "1959" in the first sentence and substitute "1960". (d) In section 403, which relates to responsibilities in Germany, strike out "1959" and "$8,200,000" in the first sentence and substitute "1960" and "$7,500,000", respectively. (e) Amend section 405, which relates to migrants, refugees, and escapees, as follows: (1) In subsection (c), strike out "1959" and "$1,200,000" and substitute "1960" and "$1,100,000", respectively. (2) In subsection (d), strike out "1959" and "$8,600,000" and substitute "1960" and "$5,200,000", respectively. (f) In section 406, which relates to children's welfare, strike out "11,000,000" and "1959" and substitute "$12,000,000" and "1960", respectively. (g) In section 407, which relates to Palestine refugees in the Near East, strike out "1959" in the first sentence and substitute "1960". (h) In section 408 (c), which relates to the North Atlantic Treaty Organization, strike out "four" and substitute "five". (i) In section 409 (c), which relates to ocean freight charges, strike out "1959" and "$2,100,000" and substitute "1960" and "$2,300,000", respectively. (j) Section 410, which relates to Control Act expenses, is repealed. (k) Amend section 411, which relates to administrative and other expenses, as follows: (1) In subsection (b), strike out "1959" and "$33,000,000" and substitute "1960" and "$39,500,000", respectively. (2) In subsection (c), strike out ", not to exceed $7,000,000 in any fiscal year,"; and insert before the period", and for expenses of carrying out the objectives of the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611): Provided, That, in addition, funds made available for carrying out chapter I of this Act shall be available for carrying out the objectives of the Mutual Defense Assistance Control Act of 1951 in such amounts as the President may direct". (1) Amend section 413 (b) (4), which relates to encouragement of free enterprise and private participation, as follows: (1) In subparagraph (B) (ii), insert before the semicolon ", revolution, insurrection, or civil strife arising in connection with war, revolution, or insurrection". (2) In subparagraph (F), strike out "$500,000,000" and substitute "$1,000,000,000". (m) In section 419 (a), which relates to atoms for peace, strike out "1959" and "$5,500,000" in the second sentence and substitute "1960" and "$6,500,000", respectively. CHAPTER III-CONTINGENCY FUND SEC. 301. Section 451 (b) of the Mutual Security Act of 1954, as amended, which relates to the President's special authority and contingency fund, is amended by striking out "1959" and "$155,000,000" in the first sentence and substituting "1960" and "$200,000,000", respectively. CHAPTER IV-GENERAL AND ADMINISTRATIVE PROVISIONS SEC. 401. Chapter IV of the Mutual Security Act of 1954, as amended, which relates to general and administrative provisions, is amended as follows: (a) In section 505(b), which relates to loan assistance and sales, strike out the third sentence and substitute the following: "United States dollars received in repayment of principal and payment of interest on any loan made under this section shall be deposited into miscellaneous receipts of the Treasury. Foreign currencies received in repayment of principal and payments of interest on any such loan may be sold by the Secretary of the Treasury to United States Government agencies for payment of their obligations abroad and the United States dollars received as reimbursement shall also be deposited into miscellaneous receipts of the Treasury. Foreign currencies so received which are in excess of the requirements of the United States in the payment of its obligations abroad, as such requirements may be determined from time to time by the President, shall be credited to the Development Loan Fund, and, notwithstanding section 1415 of the Supplemental Appropriation Act, 1953, or any other provision of law relating to the use of foreign currencies or other receipts accruing to the United States, shall be available for use for purposes of title II of chapter II of this Act." (b) In section 516, which relates to prohibition against debt retirement, insert before the period ": Provided further, That in the event the President determines that use of a specified amount of counterpart in any particular country for purposes other than that prohibited by this section would adversely affect economic and financial stabilization of that country, such counterpart may be used without regard to the restrictions of this section". (c) In section 527(b), which relates to employment of personnel, strike out "sixty" and "thirty-five" in the first sentence and substitute "seventy-five" and "fifty", respectively. (d) Amend section 537, which relates to provisions on uses of funds, as follows: (1) In paragraph (5) of subsection (a), strike out "$3,300" and substitute "$3,800". (2) In subsection (c), strike out "$26,000,000" and substitute "$27,750,000". (e) In section 543 (d), which relates to saving provisons, strike out the words between "repealed" and "shall" in the first sentence and substitute "subsequent to the time such funds are appropriated"; insert "or subsequent Acts" after "1957" both times it appears in the second sentence; and strike out the last sentence. (f) Section 549, which relates to special provisions on availability of funds, is repealed. CHAPTER V-INTERNATIONAL COOPERATION IN HEALTH; COLOMBO PLAN COUNCIL FOR TECHNICAL COOPERATION INTERNATIONAL COOPERATION IN HEALTH SEC. 501. The Congress of the United States recognizes that large areas of the world are being ravaged by diseases and other health deficiencies which are causing widespread suffering, debility, and death, and are seriously deterring the efforts of peoples in such areas to develop their resources and productive capacities and to improve their living conditions. The Congress also recognizes that international efforts are needed to assist such peoples in bringing diseases and other health deficiences under control, in preventing their spread or reappearance, and in eliminating their basic causes. Accordingly, the Congress affirms that it is the policy of the United States to accelerate its efforts to encourage and |