NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS, Hon. Toм CONNALLY, Chairman, Senate Committee on Foreign Relations, Senate Office Building, Washington, D. C. DEAR SENATOR CONNALLY: Since the President's inaugural address, the National Society of Professional Engineers has observed with keen interest the progress of his proposal to establish a program of technical assistance to the underdeveloped nations of the world. Appropriate committees of this organization and the members of its board of directors have made studies of the various proposals presented in the form of specific legislation, and representatives of the society have participated in State Department conferences and other meetings designed to further explore the possibilities and problems inherent in such a program. With this background, we would like to offer the following comments and suggestions to your committee as part of its current consideration of the point 4 legislation, and it is respectfully requested that this communication be made a part of the committee's record of hearings. Our studies of the point 4 program lead to the belief that it will of necessity be a program involving the use of engineering skills on an international scale never before contemplated. While other professional talents will be necessary and indispensable, we sincerely believe that the program must rest mainly upon engineering. With this thought in mind, it is appropriate to point out that the National Society of Professional Engineers is composed exclusively of engineers who are registered under State law, with a membership of more than 21,000 through 35 member State societies. The board of directors of the National Society of Professional Engineers has endorsed the principle of technical assistance to the underdeveloped free nations of the world. At the same time, it is felt that the point 4 program will be considerably strengthened and be a greater success if certain changes and additions are made to the pending legislation. We submit these recommendations with comment as to their desirability as follows: 1. The head of the proposed Institute of International Technical Cooperation should be a person who will administer the program with full appreciation of the fact that it is to be largely of an engineering nature. Therefore, we believe the administrator should be either a highly qualified engineer or one who is experienced in administration of programs and projects involving large engineering aspects. Selection of such a person will be considerable assurance that the program will be properly conducted on sound principles of analytical reasoning. Comment: The supporting principle for this recommendation is contained in the recommendation itself. We believe that the program of technical assistance must be administered with full appreciation of the engineering basis if it is to be truly successful. The pending bill, S. 2917, now provides that the President may appoint one person to head the Institute of International Technical Cooperation without any limitation or qualification except the advice and consent of the Senate. While we have confidence in the President's discretion and in the proper performance of their duty by the Senate, we feel it would not be amiss to write into the bill some requirement that the administrator have certain ability and experience in the technical as well as the administrative science. 2. There should be a principal advisory body to consult with the President and the administrator. This body should have adequate engineering representation on it, together with representatives of other professions which are involved in the program. Un Comment: The pending bill provides such a body of not more than 13 members, with the stipulation that the members thereof are to be "broadly representative of groups interested in the program." Specially named in this connection are the interests of business, labor, agriculture, and education. doubtedly these groups have an important interest in the program and should be reprsented o the advisory body. At the same time we wish to point out that the program of technical assistance is necessarily a basic engineering program and it is therefore doubly desirable that representatives of the engineering profession be placed on the advisory body. May we suggest that the word "engineering" be added to the other named groups. This addition will not hinder the President's appointive power in any degree, but it will serve as a congressional indication of the desirability of having representatives from a group most immediately concerned with the program. 3. The program should be carried out to the fullest possible extent by utilizing the services of private agencies and persons. The emphasis throughout should be on private enterprise including the fullest use of private engineering service. Comment: Section 4 (b) of S. 2917 fully supports the authority and principle of this recommendation, but it may be desirable to support this provision in the committee report with a strong statement to guide the administrator. 4. The contemplated authority for the administering agency to employ experts and consultants on a per diem basis is endorsed, but the proposed maximum figure of $50 per day is too low under present economic conditions and the prevailing fees for engineering services. We recommend that this figure be increased to a maximum of $100 per diem. Comment: While a $50 per diem limitation was appropriate and in line with current standards prior to the war, it is no longer a valid limitation in view of the substantial cost-of-living increase and the attendant expenses of professional consultants and firms. We note that the point 4 legislation passed by the House of Representatives raised the per diem figure to $75. While this is an improvement over the $50 figure proposed in the original bills, we feel that the proper maximum allowance and one necessary to attract qualified consultants is $100 per diem. Congress recognized this development in the professional consulting field in the Interior Department Appropriation Act for the fiscal year ending June 30, 1950 (Public Law 350, 81st Cong.), by raising the limitation for experts employed on a per diem basis under the act of August 2, 1946, to $100. Of course, this does not mean that the $100 per diem rate must be paid under all circumstances or when the task involved does not warrant the highest rate. It will leave discretion with the administrator to apply the proper rate but will at the same time permit proper payment in those cases in which the knowledge required and the work to be done indicate a higher figure. It is the desire of the National Society of Professional Engineers to provide any possible assistance to the committee in its study of this important subject. If we may supply the committee with further information on our views as cited above or in any other way, please do not hesitate to call upon us. Thanking you for your kind attention and consideration, I am, Very truly yours, PAUL H. ROBBINS, Executive Director. NEW YORK, N. Y., March 31, 1950. Hon. Toм CONNALLY, Chairman, Committee on Foreign Relations, United States Senate, Washington, D. C.: Retel March 30 Clerk O'Day relative hearings your committee Monday, April 3, point 4 legislation. As summarized below, the National Foreign Trade Council has expressed to House Foreign Affairs Committee its views on point 4 leading up to legislation now before your committee which we understand is identical in language to title III of H. R. 7797 presently being debated by Committee of the Whole House of Representatives. In view of that fact and press reports that amendments or new legislation may be introduced April 3, believe it unprofitable to occupy time of committee by personal appearance at this time. However, respectfully request this communication be placed before your committee and entered into record. The council has given active consideration to the point 4 program from time it was enunciated by President Truman. The fundamental views of the council, to which it still adheres, were presented during appearance of council's representative on October 3, 1949, before House Committee on Foreign Affairs, reference report Eighty-first Congress, first session, on H. R. 5615, pages 99 to 120. The council considered so-called compromise legislation H. R. 6834 and H. R. 6835 and, with approval of its board of directors, telegraphed Chairman Kee January 20 as follows: "Council wishes to record its gratification that your distinguished committee has given such extensive and earnest consideration to proposed legislation on the President's point 4 program. "We note with great pleasure that bipartisan approach has been exemplified by introduction of identical bills by yourself and Congressman Herter. These bills we regard as substantially more comprehensive and realistic than H. R. 5615 as originally introduced. Our conviction, reinforced by expressions of Thirty-sixth National Foreign Trade Convention, is that promotion of privateenterprise investment abroad is a fundamental of American foreign economic policy and of point 4 specifically. Realistic and consistent attention to securing congenial conditions will be necessary over appreciable period, and we have emphasized that this objective can be most effectively attained by negotiation with nations favorably disposed and conclusion of bilateral treaties. Council is not merely gratified that sections 2 and 3 express in acceptable form our conviction on this point but should prove useful in such bilateral diplomacy. We are somewhat disappointed that scope of Government activities in technical assistance is not more clearly defined and limited to fields in which government has demonstrated reasonable competence but believe that ultimate review and control of such activities may be effective through procedure as to appropriations and periodic reports to the Congress. We wish to record our sincere appreciation of the consideration shown by the Department of State and other executive departments concerned and of the splendid efforts of Congressman Christian A. Herter to develop a common ground of understanding and promotion of an essentially American pattern of foreign economic policy. We feel that this has been accomplished to a substantial degree as expressed in H. R. 6834 and H. R. 6835. Our board of directors has reviewed this legislation and considers it constructive.” The council studied H. R. 7346, which emerged from executive consideration of H. R. 6834 and, with the approval of its board of directors, telegraphed Chairman Kee on February 24 as follows: "On January 20, 1950, after devoting considerable study to H. R. 6834 and 6835 which were introduced following discussions between business representatives and representatives of the Department of State and after hearing the report and recommendations of the Council's special committee on point 4, we telegraphed you, upon instructions of the board of directors, that the board appreciated the consideration shown to such representatives and the efforts of your committee and others to promote an essentially American pattern of foreign economic policy. "We stated further that we thought this had been accomplished to a substantial degree in H. R. 6834 and H. R. 6835 and that our board of directors, having reviewed this legislation, considered it constructive. We are now disappointed to learn that these bills have been superseded by H. R. 7346 with substantial changes which weaken the emphasis on the development by this country through bilateral arrangements of an effective program of foreign economic assistance. We refer particularly to section 4, which makes it mandatory for the United States to accomplish the purposes of the act by participation in multilateral programs carried on by the United Nations and other international organizations wherever practicable and specifically authorizing contributions to these organizations for this purpose, limited only by the total amount of the appropriation. These and related changes substantially alter the bills referred to in our telegram and cause grave concern to our board because there is no assurance that the principles set out in sections 2 and 3 will be accepted and applied by agencies of the United Nations or other international organizations." H. R. 7797, now before the House, includes as title III the identical provisions of H. R. 7346 to which we carry forward the objections expressed in our above telegram to Chairman Kee. The specific language to which we had reference in our telegram of February 24 to Mr. Kee is now found in section 304 of title III of H. R. 7797 which provides "the United States shall participate in multilateral technical cooperation programs carried on by the United Nations, the Organization of American States, and their related organizations and by other international organizations, wherever practicable." Note that, whereas this language in section 304 is mandatory, the language in section 305 relating to bilateral programs is merely permissive. It is this mandatory provision which gives us greatest concern. NATIONAL FOREIGN TRADE COUNCIL. STATEMENT BY MAXINE Y. WOOLSTON, ON BEHALF OF THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN I wish to present the views of the American Association of University Women on legislation relating to what is generally known as the point 4 program of technical assistance to underdeveloped areas. The American Association of University Women, founded in 1882, is affiliated with the International Federation of University Women and for the past 30 years has had an ever-expanding program for international scholars and students. For many years the numerous AAUW branches have not only given time and money to expand the international grants but have also devoted intensive study to the problems relating to the promotion of international amity and well-being. On the basis of these years of study, and believing profoundly in the value of interchange of knowledge and experience, these branches have, through the association's democratic procedures, consistently expressed support for legislative measures to promote international economic cooperation for the purpose of expanding world trade, aiding reconstruction, and raising living standards. It is thus readily understandable why the association is so interested in point 4 legislation. From the outset of its enunciation the point 4 program was recognized throughout the civilized world as a long-range program which constituted a challenge to existing conditions affecting two-thirds of the world's population who live in economically underdeveloped areas. Primitive agricultural conditions and inadequate transportation so limit the growth and distribution of food alone that the average food intake for people in these areas is barely enough to support life. Disease, malnutrition, high mortality rates, illiteracy, social disorganization, civil unrest, all these conditions are associated with low productivity. Low living standards and low productivity reinforce each other in a vicious circle. For most of these people the horizon of knowledge is limited to their own small community and their opportunity for material advancement is no greater than their meager and elementary resources. Lack of capital and know-how are also crucial factors. The United States has a concern for the industrialization of these areas, not only for humanitarian reasons but also because such progress can further human freedom and promote mutually beneficial trade and the development of international understanding. It is true that the United States, acting through both private organizations and the Government, is already sharing its technological knowledge with other nations and participating in capital investment that assists in economic development. Moreover the proposal for the betterment of underdeveloped countries by international action both in its origins and in its fulfillment has been and remains the concern of the United Nations, and not merely a program advanced by one nation. Yet the magnitude of the objectives of the proposed program make it a new and positive step in a constructive American foreign policy. A great measure of responsibility for the success of the program lies with the United States as the largest donor in a cooperative program. It was one thing, however, to proclaim the general goals of this great program and another to devise in detail the means for effectively and practically carrying the ideas to a successful end. In this detailed planning the American Association of University Women hopes that the Congress will give serious consideration and concrete embodiment to the general principles suggested below. 1. The point 4 program should be executed and administered by the United Nations and its specialized agencies. Applicants for assistance are likely to prefer aid from an international organization of which they are members rather than aid from one nation alone. Moreover, a number of economic problems such as flood control and trade cannot be solved within the boundaries of a single country. Most importantly a clearing house of information and experience would enable the underdeveloped countries to draw upon the pooled intellectual and material resources of a number of countries. 2. An international program will require carefully though-out coordination and some mechanism for accomplishing the necessary coordination. The contributions which each country can make will be qualitatively as well as quantitatively different and will have to be pieced together to make an integrated, over-all approach. Economists have made clear the ineffectiveness of a one-sided approach whereby aid is offered in only one or two fields. There are economies in multiple development which are not achieved by small-scale industrial development. A piecemeal approach may easily be more harmful than useful. The project-by-project approach is neither broad enough nor sufficiently sustained. Justification for projects solely on the basis that they will be remunerative or cover costs is too limited; other projects may be necessary in order that the financially feasible enterprises may succeed. On the other hand, the capacity of underdeveloped countries to repay loans is limited and necessitates careful programing to observe the necessity sequences in industrialization plans. Reports of a number of the specialized agencies of the United Nations have emphasized that a comprehensive approach will be necessary. One such conclusion, to use only a single example among many, is that of the Director-Gen eral of the Food and Agricultural Organization, who pointedly reports : agricultural development and industrial development cannot go forward in isolation. Each is dependent on the other, and both are dependent on such related cooperative developments as provision for adequate financing of worth-while projects, establishment of better systems of commodity distribution, betterment of the condition of the world's labor force, and control of the debilitating diseases, such as malaria, which sap the strength and spirit of the workers." The work of one agency of the United Nations must thus be geared in with that of others concerned with similar problems. Coordination is difficult both because of the loose constitutional relationships of the United Nations and the specialized agencies, and also because of the proliferation of bodies concerned in one way or another with the economic development of backward areas. It is also necessary to establish working relationships between the reciprocal governments and assisting international agencies and between the programs of these agencies and the bilateral activities of individual countries. If existing agencies are to coordinate programs for underdeveloped countries there will need to be a central clearing house for requests made to various agencies and for consultation and comparison of arrangements of comprehensive programs information regarding needs and conditions must be pooled and systematized. 3. Some of the capital which is used in these programs must be provided by government, but every effort should be made to stimulate the use of private investment. To this end it will be necessary to reduce the risks peculiar to unstable political conditions resulting in loss of ownership without compensation; and to resolve balance-of-payments difficulties which lead to prohibitions of transfer of earnings and capital, and the imposition of various discriminatory restrictions by governments on the operation of foreign-owned industries. An experimental program of government guaranties for United States private capital newly invested abroad appears to be the most fruitful approach to these problems. Guaranties to investors need to be balanced by guaranties in the interest of the people whose resources and labor had helped to develop the industry. 4. Aid should be given in response to requests only. The program should emphasize helping others to help themselves. Assistance and encouragement from abroad can help, but real achievement will depend upon the will and determination of the people and the government involved. 5. Economic development is a long-term process; consequently the point 4 program must be viewed as a long-range program. Hon. Toм CONNALLY, YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF THE UNITED STATES OF AMERICA, NATIONAL Board, New York 22, N. Y., November 3, 1949. Chairman, Senate Foreign Relations Committee, United States Senate, Washington 25, D. C. DEAR SIR: After committee discussion extending over several months, the national board of the Young Women's Christian Association of the United States of America voted on November 2, 1949, to support participation by the United States in the cooperative endeavor of the United Nations for assisting in the development of economically underdeveloped areas of the world. In taking this action the national board wishes to register its concern that adequate appropriations be made by the Congress to enable the United States to do its full part in this world program. We also wish to urge that the point 4 program be implemented through the United Nations wherever possible. Our third point of emphasis is that, in carrying out the program, every precaution should be taken to safeguard and promote the interests of the people in the underdeveloped areas. We have noted that the Government of the United States favors the expansion of the work of private organizations related to technical cooperation. It is our earnest hope that the experience of YWCA's in many countries will be of assistance in carrying out the economic-development program. Very truly yours, CONSTANCE W. ANDERSON President. |