In reviewing the results of the first year's program, the committee reported itself * * in the encouraged by the substantial progress that has been made face of difficulties perhaps more trying than those confronted by any state in the European recovery program. In conference, title II of the Senate bill became section 107, but the substantive provisions were unchanged. (See Foreign Economic Assistance Act of 1950 for dates and documents.) 5. CHINA In the China Aid Act of 1948 (title IV of the Foreign Assistance Act of 1948, Public Law 472, 80th Cong.), the Eightieth Congress authorized the appropriation of $338,000,000 for economic assistance to China, but only $275,000,000 of this amount was actually appropriated. This appropriation, which had been only partially spent, was due to expire April 3, 1949. Section 12 of the Economic Cooperation Act of 1949 (Public Law 47, 81st Cong.) continued the availability of this unobligated balance to February 15, 1950. As that date approached, the House added an amendment to the Korean aid bill (Far Eastern Economic Assistance Act of 1950, Public Law 447, 81st Cong.) further continuing the funds to June 30, 1950. The Senate concurred in the House amendment. At that time, approximately $104,000,000 of the $275,000,000 appropriated in 1948 was still unspent. When the committee considered the Foreign Economic Assistance Act of 1950, it was estimated that this unexpended balance would only be reduced to $94,000,000 by June 30, 1950, when, under then existing law, it was again scheduled to expire. The committee, accordingly, approved a further extension of the funds to June 30, 1951. Its report said: The committee believes that conditions in China and the Far East are so fluid that it would be inadvisable at this time to do more than continue the availability of these funds for another year. It emphasized the flexibility of the program under which the President has considerable latitude not only with respect to the area where the funds could be spent, but also with respect to the terms and conditions under which the aid may be made available. Provisions. As finally passed, these provisions with respect to China became the China Area Aid Act of 1950 (title II of the Foreign Economic Assistance Act of 1950, Public Law 535, 81st Cong.). The funds for China were earmarked as follows: 1. Not less than $40,000,000 for assistance in areas in China (including Formosa) "so long as the President deems it practicable." 2. Not more than $8,000,000 additional for relief through the Red Cross or other voluntary agencies in any place in China suffering the effects of natural calamity. (This was designed for famine relief.) 3. Not more than $6,000,000 to remain available until spent, for aid to Chinese students in the United States. 4. The balance of approximately $40,000,000 was not specifically earmarked and could be used at the discretion of the President for economic assistance "in any place in China and in the general area of China which the President deems to be not under Communist control." Congressional action.-These provisions passed both Houses as part of the omnibus foreign economic assistance bill and occasioned no special discussion. (See Economic Cooperation Act of 1949 and Foreign Economic Assistance Act of 1950 for dates and documents.) 6. TECHNICAL ASSISTANCE-POINT 4 Background.-The United Nations General Assembly on December 4, 1948, approved a resolution creating an international program of technical assistance for the underdeveloped areas of the world. The following month President Truman in his inaugural address listed as the fourth point in his basic elements of American foreign policy: a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas. Thus the general program of technical assistance came to be known as Point 4. In June 1949, the President followed up his inaugural address with a message to Congress requesting legislation authorizing the extension of technical assistance, directly and through the United Nations, to underdeveloped areas. The committee considered the program during March and April 1950 when draft legislation on the technical assistance aspects of the program (as distinguished from aspects concerned with the guaranty of American investments abroad) was offered as a committee amendment to the pending omnibus economic assistance bill (S. 3304). The committee limited the program strictly to technical assistance and approved authorization of $45,000,000 for the first year, of which $10,000,000 would be for the Institute of Inter-American Affairs and the programs of the United States Information and Exchange Act of 1948. The technical assistance program, the committee declared in its report should be regarded as one part of a broad fourfold interrelated program of the United States designed to attain peace and to assure personal freedom in the world. The other three are (1) unfaltering support of the United Nations, (2) continuing efforts at world economic recovery, and (3) strengthening of the freedom-loving nations to enable them to resist aggression. Legislative action. The point 4 amendment to the ECA bill was the subject of considerable debate on the Senate floor. Senators Saltonstall and Millikin offered a substitute providing for the appointment of a bipartisan commission to study the various proposals for technical assistance, as well as the already existing programs. The substitute was rejected by a vote of 33 to 41, and the committee amendment was approved by a vote of 37 to 36. The comparable title in the House bill was similar in many respects to the Senate version but contained in addition, language relative to guaranties for American investments abroad. A substantial part of this language was accepted by the conference committee and was the subject of opposition on the Senate floor when the conference report was called up. After 3 days of debate, however, the report was agreed to by a vote of 47 to 27. Dates Message from the President, June 27, Reported to Senate, April 4, 1950----- Documents House Document 263. Printed hearings. Senate Report 1371, part 2 (dated See Senate debate on the Foreign Passed Senate as amendment to Foreign Passed House as part of the Economic Conference report adopted, Senate, Conference report adopted in House, House Report 1802, part 4 (dated See House debate on the Foreign See Senate debate on the Foreign 7. PALESTINE REFUGEES Background. As a result of the Arab-Jewish fighting in Palestine in 1948 several hundred thousand refugees, mostly Arabs, fled to nearby Arab States where they lived in acute need of food, clothing, medical supplies, and other relief. The acting mediator for Palestine described the refugee problem in October 1948 as extremely critical and urged immediate assistance. On November 19, 1948, the General Assembly of the United Nations unanimously adopted a resolution sponsored by the United States, the United Kingdom, Belgium, and the Netherlands requesting the Secretary General to appoint a Director of United Nations Relief for Palestine Refugees and urging member states to make voluntary contributions to a UN relief fund. Committee action.-The Foreign Relations Committee held hearings January 25, 1949, on the proposed draft of a joint resolution authorizing American contributions to the fund. A subcommittee headed by Senator George, was appointed to redraft the resolution, and the subcommittee greatly simplified the text without changing the substance. Provisions. As finally passed, the resolution authorized an appropriation of $16,000,000 as a United States contribution to a total projected UN program of $32,000,000. An RFC advance of $8,000,000 was also authorized, pending the appropriation. Legislative action. The resolution (S. J. Res. 36) was reported to the Senate February 8, 1949, and was passed by a voice vote February 21. The House followed suit March 16. 1950 LEGISLATION Early in 1950, the committee, after considering a careful study by the United Nations Economic Survey Mission, reported a bill which authorized an American contribution of $27,450,000 to the United Nations Relief and Works Agency for Palestine Refugees in the Near East. This new UN agency, which had been established by the General Assembly in December 1949, is to put into operation a program which will place more emphasis on work relief and permanent rehabilitation and less emphasis on direct relief. The total UN project extends over 18 months and is expected to cost about $54,900,000. While this bill (S. J. Res. 153) was pending on the Senate calendar, the committee decided to incorporate it as title IV of the omnibus foreign economic assistance bill. This was done and the bill became law as title III of Public Law 535. As had been done in 1949, a further RFC advance of $8,000,000 was authorized, pending the appropriation. Senate Joint Resolution 153 reported in Senate, Senate Report 1275. (See also Foreign Economic Assistance Act of 1950.) 8. INTERNATIONAL CHILDREN'S EMERGENCY FUND Background. The International Children's Emergency Fund was established on a temporary basis by the United Nations General Assembly in December 1946, principally for the purpose of providing relief and rehabilitation for children of countries which had been the victims of aggression, and member states and individuals were invited to contribute to the fund. In the Foreign Relief Act of May 1947, Congress authorized American contributions of up to $40,000,000 for the fund, provided that after the first $15,000,000, American contributions could not exceed 57 percent of the total budget. Title II of the Foreign Economic Assistance Act of 1948 continued the availability of the unexpended portion of these funds to June 30, 1949, and authorized an additional appropriation of $60,000,000, thus increasing the total amount authorized for American contributions to $100,000,000. A proviso was inserted that American contributions could not exceed 72 percent of all contributions made after May 31, 1947. Seventy-five million dollars were appropriated for the fund. Legislative action.-Contributions were not made to the full extent appropriated and, as the unexpended balance was to have reverted to the Treasury on June 30, 1949, the matter again came before the committee in the Eighty-first Congress. The House on June 7, 1949, passed H. R. 2785 continuing the availability of the funds to June 30, 1950. This bill was reported by the Senate Foreign Relations Committee June 28, and passed the Senate June 30. In its final form, the legislation contained a proviso that "it is the expressed intention of Congress that such participation by the United States shall cease on June 30, 1950." The subject again came up in connection with the Foreign Economic Assistance Act of 1950. The committee took no action, but an amendment continuing the unexpended funds for still another year, to June 30, 1951, was offered on the Senate floor by Senator Taft for himself and 18 other Senators. The amendment was adopted without debate when Chairman Connally agreed to take it to conference. The conference committee amended this provision to authorize a specific appropriation of $15,000,000 and to make it available, in the discretion of the President, for contributions to a permanent UN agency that might be established for children's welfare work. No funds, however, have been appropriated for this purpose in the Foreign Aid Appropriation Act of 1950, nor in the Supplemental Appropriations Act. To provide funds for the International Children's Emergency Fund pending a future appropriation, Senator Wiley on September 19, 1950, introduced Senate Joint Resolution 206 to authorize the Reconstruction Finance Corporation to advance up to $10,000,000 for international children's welfare work. The resolution, however, did not pass before the Congress adjourned. H. R. 2785 reported in House, May 11, House Report 569 (minority views, pt. 1949. II). Congressional Record, June 7, 1949. Congressional Record, June 30, 1949. Public Law 170. (See also Foreign Economic Assistance Act of 1950.) 9. INSTITUTE OF INTER-AMERICAN AFFAIRS Background. Since 1942 the Institute of Inter-American Affairs and its predecessor agencies, acting for this Government, have concluded bilateral agreements with a number of other American Republics providing for the development of cooperative programs in the fields of public health, sanitation, agriculture, education, and in related fields. In 1947, the present Institute was chartered as a Government-owned corporation (Public Law 369, 80th Cong., 1st sess.), which was to operate until 1950. The Institute and its predecessors have, between 1942 and 1949, made grants to other American Republics of about $72,000,000, and those Republics, on their part, have made expenditures of about $61,000,000 on the programs. The committee in its report on legislation proposed in 1949 to extend the life of the Institute for 5 years stated that the Institute is a "prime instrument" in helping "Latin America establish an economic and social foundation for the practice of political democracy and the frustration of subversive ideological penetration." Legislative action.-Draft legislation sent to the Congress by the President on February 21, 1949, was referred to a subcommittee of the Foreign Relations Committee under the chairmanship of Senator McMahon. Due to conflicting schedules, however, hearings were held before the full committee, which reported the bill (S. 1250) favorably with an amendment reducing the amount requested by the President for a 5-year period from $50,000,000 to $25,000,000. While this was a 50-percent cut in the request, the programs could nevertheless still be continued on the same basis as for the immediately preceding years. The committee did not believe the programs should be expanded until further consideration had been given to the Point 4 proposal. |