MUTUAL SECURITY ACT OF 1959 TUESDAY, APRIL 14, 1959 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 10:35 a.m., in room G-3, U.S. Capitol, Hon. Thomas E. Morgan (chairman) presiding. Chairman MORGAN. The committee will come to order. This is a continuation of the hearings on the mutual security legislation authorizing funds for the fiscal year 1960. We meet in executive session. Our witnesses are the Honorable William M. Rountree, Assistant Secretary of State for Near Eastern and South Asian Affairs; Leland Barrows, regional director for Near East and south Asia operations, ICA, and Rear Adm. E. B. Grantham, Jr., U.S. Navy, regional director for Near East, south Asia, and Africa, Office of the Assistant Secretary of Defense for International Security Affairs. Mr. Rountree has a statement he wishes to give in open session. Admiral Grantham and Mr. Barrows each have an unclassified statement and a classified statement. Mr. Rountree will proceed with his open statement first. You may proceed, sir. STATEMENT OF HON. WILLIAM M. ROUNTREE, ASSISTANT SECRETARY OF STATE FOR NEAR EASTERN AND SOUTH ASIAN AFFAIRS Mr. ROUNTREE. Mr. Chairman and members of the committee, it is a pleasure to appear again before you with my colleagues from the International Cooperation Administration and the Department of Defense in support of the proposed fiscal year 1960 mutual security program proposals for the Near East and south Asia. I should like to commend to your careful review the presentation book for this area. Much long and careful effort has gone into its preparation. It sets forth the accomplishments of the mutual security program in the Near East and south Asia during past years and makes clear why we must carry forward these activities. I hope the committee is finding the presentation book as informative and convincing as I believe it to be. Mr. Chairman, I would like to make some relatively brief general remarks supplementing the material set forth in the book before you. My colleagues will comment on specific and detailed aspects of the several activities under the mutual security program for which their agencies are responsible. This committee is familiar with the fundamental facts relating to the political, economic, and military problems of the area. Let me merely reiterate that our basic foreign policy objectives remain unchanged. In simplest terms, we seek stability within which freedom, peace, and progress, based upon respect for the dignity and worth of the individual, may be sought and found. As you are aware, this part of the world is beset with internal problems and tensions between nations and peoples. Underlying these tensions is the revolution of rising expectations on the part of the peoples to which Mr. Dillon and others have referred. These factors make difficult the achievement of conditions of stability. The situation is further exacerbated and capitalized upon by the pressures of the Sino-Soviet bloc and the machinations of international communism. Last year, when I appeared before this committee in support of the fiscal year 1959 mutual security program, I called attention particularly to the fact that— *** the Near East and south Asia, in spite of its ancient history, is flexible and changing with new problems arising daily and old ones suddenly becoming critical. The events of the past year have demonstrated not only the necessity of the mutual security program as an instrumentality of effective U.S. foreign policy in the area, but in many respects the difficulty in setting forth in specific terms the needs we must meet. With few exceptions, the specific needs which we presented to you required fulfillment. In addition, as you will note from the presentation book, developing situations and changed conditions necessitated adjustments in some of these anticipated programs and utilization of contingency funds for requirements not specifically foreseen. EVENTS OF THE PAST YEAR I should like to review briefly some of the events in the Near East and south Asia during the past year which are of particular significance to our foreign policy objectives and to the utilization of the mutual security program. Early last spring, internal tensions and pressures in Lebanon exacerbated by external pressures developed to such an extent that the continued independence and integrity of that country was threatened. The United States responded to the urgent request of the duly constituted Government of Lebanon for assistance. U.S. forces were dispatched to Lebanon. At the same time the United Kingdom responded to a similar request from the Hashemite Kingdom of Jordan. The United States utilized the facilities available under the mutual security program to provide further assistance to both countries. These moves contributed to the fact that peace and stability were maintained. Also important, however, was the demonstration that the United States acts upon its obligations of friendship and support. In July a new government came into power in Iraq through a revolutionary military coup d'etat. The United States has sought to maintain friendly relations with this government, as it has with all Near Eastern states. There are certain problems, however, with respect to U.S. Government and private interest relations with Iraq, as well as questions relating to previous American assistance programs. Following the termination of the Iraqi-Jordan federation after the change of regime in Iraq, the succeeding months have seen a restoration of general calm in Jordan whose King is visiting the United States at the present time. The United States continues to support and to contribute to the maintenance of the independence of this strategic state. Instability in Jordan could conceivably result in regional turmoil from which only communism would benefit. THE BAGHDAD PACT In the north and east there were significant developments in those nations associated together in the Baghdad Pact. As you will recall, the pact council ministers, meeting in London on July 28 shortly after the coup d'etat in Iraq, joined together in a declaration reaffirming their determination to cooperate in their security and defense. The United States, in joining in the declaration, similarly reaffirmed its support for this principle and expressed its willingness to enter into agreements to give further effect to our cooperation. On March 5, 1959, the United States entered into bilateral executive agreements with Turkey, Iran, and Pakistan at their request. These agreements were based upon the Middle East resolution and the Mutual Security Act. They have had the effect of strengthening the determination of the Middle East members of the pact to cooperate in building internal economic strength and defense against the threat of external aggression. The agreements have contributed to making the pact an even stronger instrumentality of collective security. The signing of the agreements was preceded by extreme pressure on the three countries, and particularly Iran, by the Soviets. These nations have again demonstrated that they have the courage of their convictions and faith in the free world. Iraq has, since the change in regime last summer, been a nonparticipant in the Baghdad Pact and on March 24 officially notified the other member governments that Iraq was as of that date withdrawing from the Pact. This move was not unexpected, nor has it weakened the determination of the other members of the pact to continue their cooperation in the association. We and other nations are firmly committed to the principle of collective security but this is not a principle which is forced upon any nation; rather, to be effective it must be founded upon acceptance of the principle of wholehearted cooperation. The Middle East members of the pact require help in continuing to build defensive and economic strength-strength which is important to the free world. It should be remembered as well that Turkey is also associated with us in NATO and Pakistan in SEATO. Turkey faces severe economic problems as that nation strives to develop and strengthen its economy while carrying the heavy military burdens which is so important to free world security. The better to gain these ends, she is now engaged in a far-reaching economic stabilization program. This has been made possible by the joint efforts of Turkey's international friends, including a variety of types of assistance from the United States, consultation and advice of the International Monetary Fund and the help of Turkey's partners in the organizations for European economic cooperation. The mutual security program is the principal means by which the United States is aiding Turkey in this common effort as well as in the continuing tasks of maintaining armed forces and achieving economic development. Iran, too, in spite of its oil revenues, is struggling in it efforts toward an effective pace of economic development while maintaining forces essential to its defense and security. It is still the victim of massive Soviet propaganda. American interest in the security and well-being of Iran is well known. The mutual security program provides an essential means of our aiding this friendly and important country, occupying such a key position in the free world. In October, Pakistan experienced a peaceful military coup d'etat. The new regime is dedicated to improving the nation's economic health as well as its defensive capability. While committed to the earliest practicable reestablishment of constitutional and representative government, the new regime has embarked on measures intended to stabilize and develop the nation. In this task it is faced with difficult and perplexing economic problems which we must assist in meeting. SOUTH ASIA Let me turn briefly to happenings in other nations in south Asia during the year. India particularly has been troubled by an economic crisis, largely the result, paradoxically, of her efforts to develop. Tremendous activity, both in the private and public sectors, in seeking to achieve the goals of the second 5-year plan, has strained the nation's internal and external resources. The importance to the free world of India's success in its development program is too evident to warrant detailing. Twice during the year-in October and just last month-some of the more fortunate free world countries met under the auspices of the International Bank for Reconstruction and Development to marshal resources to assist India. These efforts have helped considerably, but major problems lie ahead. While Afghanistan did not face a major crisis during the year, its internal economic problems and its exposed geographic position remained. The United states continued to assist Afghanistan in laying solid foundations for economic growth, emphasizing transportation and communications facilities to link Afghanistan with the free world. The overall U.S. effort stressed the primary objective of help in preserving and strengthening Afghan independence while assisting the Afghan Government in raising the education and living standards of its people. I believe that you will be particularly interested in noting that the King of Nepal promulgated a constitution on February 12 which gave Nepal a constitutional monarchy under a parliamentary system of government. Nationwide elections for the new Parliament under universal, adult suffrage have just been peacefully concluded in spite of extremely difficult administrative conditions created by the inaccessibility of large parts of this mountain kingdom. The success of Nepal's first elections is indeed heartening news for all freedomloving countries. Ceylon has had and still has internal problems of major significance to the nation's economic health. Its well-being continues to be very much in the free world's interest. I should also note that, unfortunately, the basic problems as between some of the nations of south Asia which lead to continued tensions remain unresolved. But I should also note that there are hopeful signs that progress is being made with the assistance of the IBRD looking toward resolution of the problems of Indus waters as between Pakistan and India. Although Tibet is not geographically a part of the Near Eastern and south Asian area, the peoples of the region, particularly in India and Ceylon, have reacted vigorously to the Red Chinese Communist brutal suppression of religion and, indeed, the very way of life of the Tibetan people. They have also noted that Peiping in its aggressive designs has callously disregarded its formal obligation to respect the autonomy of the area. Turning to the other side of the area, Greece remains a staunch free world ally and member of NATO in need of continued assistance to maintain its hard won strength. During the year the nations concerned-Greece, Turkey, and the United Kingdom, and the representatives of the people of Cyprus-demonstrated statesmanship of a high order in arriving at a mutually acceptable solution to the problem of Cyprus. All men of good will are happy that peace has at last come to the long-troubled island, which will soon gain its independence. OTHER NEAR EASTERN MATTERS I have already touched upon some of the events in the Arab world. On March 4, our Ambassador to the United Arab Republic presented his credentials to the Imam as Minister to the Yemen, and since March 16 we have had a resident chargé of our mission in Taiz. Thus progress has been made in improving the diplomatic representation of the United States to this nation at the mouth of the Red Sea. Prompt action by the United States in responding to an emergency request for wheat for the Yemen 2 months ago had a very salutary effect on our relations. The situation in Saudi Arabia has remained calm during this period. Progress has been made in the field of financial reform. U.S. economic projects agreed to in 1957 are going forward. In the Sudan the regime was overthrown during the year by a peaceful military coup d'etat. The Sudan, as a newly independent nation with major economic problems based largely upon its dependence upon one crop, cotton, for external earnings, is striving to establish conditions of stability and the foundations for economic development. Our programs are designed to help in this important objective. A new development in the area is the deterioration in relations between the United Arab Republic and Iraq. The United Arab Republic is turning its attention actively to the very real problems of its under |