order to avoid confusion, in all instances where this or similar phraseology is used, the word "health" be substituted for the word "medical." In summary, this association endorses and offers its support of the purposes of Senate Joint Resolution 41. We believe the short title, "The Health for Peace Act" is entirely descriptive and appropriate. The framers of this legislation have selected for action an area in which there is both a vast need and an abundant opportunity. The need is for assistance and leadership in mobilizing a universal attack on human disease and disability. By seeking to fulfill this need, our country will have availed itself of an unequaled opportunity to strengthen its foreign policy by demonstrating to the world America's concern for the health and well-being of all people. RESOLUTION Adopted by the house of delegates of the American Dental Association, November 1958, approving the principles embodied in Senate Joint Resolution 41 27. Whereas the advancement of knowledge and understanding of human diseases depends primarily upon the efforts of persons devoted to research in the health sciences; and Whereas the barriers to scientific exploration and discovery of the causes of human diseases can be considerably lessened by (1) financial support for scientists engaged in health research, regardless of national boundaries, and (2) improved methods for interchanging information in the health sciences among the nations of the world; and Whereas the universally high prevalence of dental diseases and disorders would be a particularly appropriate target for a worldwide research attack: Therefore, be it Resolved, That the plan sponsored by Senator Lister Hill and Representative John E. Fogarty for establishing a National Institute for International Health Research within the National Institutes of Health be approved in principle. The CHAIRMAN. Now, Mr. Whatley, did you wish to file a statement, sir? STATEMENT OF DAVID WHATLEY, WASHINGTON, D.C. Mr. WHATLEY. Senator, I would be grateful for 5 minutes, if you had the time. The CHAIRMAN. All right, sir. Mr. WHATLEY. I have several brief recommendations on the bill itself, and I would appreciate your hearing me as a private citizen, representing no organization. And I should like to suggest first, in line with the suggestion of the previous witness, that the name of the organization might effectively be changed in the bill to "The National Institute on World Health Research." The name "World Health" has been popularized by the international reputation of the World Health Organization. The addition of the word "Research" to the title would differentiate the two organizations. The words "National Institute" would indicate definitely that this would be an organization of the U.S. Government and not an intergovernmental organization, and I believe it might more effectively describe the activities of the proposed organization, which, as I understand, will have as a substantial part of their duties, in addition to research on diseases through more effective international utilization of research personnel, diseases that are prevalent in this country, such as heart, cancer, and so forth, but, and this is, I think, exceedingly more important, the research upon the diseases that are not prevalent in this country, such as trachoma, malaria, and even tuberculosis. As a layman, I am not qualified to speak on the potentialities of those research requirements or the effectiveness of them, but I have been told by scientists who are familiar with the work in those fields that the potential in many of these diseases is extremely vast, that there have been well thought out proposals for research projects already submitted to our Government that are in the files of our Government-perhaps one very promising research project by a noted entomologist to eliminate trachoma, which is such a drawback upon the economies of so many countries, and in some countries where a majority of the population are partially or totally blinded by it at some part of their lives. I think that the new organization may very well achieve vast good in addition to the fondest hopes of its proponents, some of the previous witnesses, and even the distinguished chairman. I suggest that it might serve to be one of the greatest monuments to his memory and to the memory of the activities of the U.S. Government in the 20th century in the humanitarian field. I should like to advert briefly, if I may, since this subject has been raised by other witnesses, to the possible use of foreign currency. I have given considerable study to this. And as the chairman may recall, last year I got his attention and support in behalf of an amendment which was then pending in the House and went to conference upon this, to permit and facilitate the use of Public Law 480 currencies for health purposes-this was achieved, with the chairman's support, in the conference committee-in which report the Congress directed the executive branch to utilize the authority already existing in section 104 D and E, together with the last proviso of 104, to channel additional Public Law 480 currencies into health service projects. This, of course, would be supplemental to the addition of section 104K, which occurred in the mutual security bill, 104K being directed entirely to health research. Pursuant to the conference report, there has been, since its adoption, approximately $60 million allocated in three countries, where the Bureau of the Budget has agreed there is a surplus of these Public Law 480 currencies to U.S. needs, namely, Pakistan, India, and Yugoslavia, those amounts being 15 percent of the total sales agreements. Those, then, are made as grants to those countries upon the recommendation of the conference report that loans of these currencies were not suitable for such purposes, because they were not income producing, were self-liquidating, and there is a collossal potential there, in my opinion, to utilize currencies in those particular countries, which fortunately happened to be the underdeveloped countries in such great need of these funds to supplement the appropriations that your subcommittee on appropriations would make to this new Institute. I suggest, sir, that at the moment there has been no proposal from the Bureau of the Budget, and I am informed no proposal from HEW to the Bureau of the Budget, to utilize additional currencies under 104K. I had hoped that your committee in its report on this bill would recommend that the executive branch survey more intensely the potentialities of the use of these currencies where they are available in such surplus supply for both health research under 104K and health services under 104 D and E, so that many worthwhile projects might that might be too costly to finance under a dollar basis from your appropriations might be practical if they were supplemented by the surplus Public Law 480 currencies existing in certain countries. I will give you one brief example of that, if I may. In the field of nutrition research, India is now doing considerable research in developing a so-called multipurpose food from their indigenous prodduct, which they call ground nuts, which in our country is called peanuts. They are not able to purchase the peanuts with the Public Law 480 currencies in those countries, because they are not eligible, under 104A, for market development, since the potential exports of peanuts to India from this country would be infinitesimal. But under 104E, with the surplus of currencies they have available there, the very infinitesimal small amounts of dollars that might be appropriated under this National Research Institute could be supplemented by the vast Public Law 480 currencies under 104E, to purchase the equivalent of millions of dollars worth of rupees worth of peanuts in India, make them available on a control basis, properly processed to ascertain their nutritional requirements in relation to other types of feeding. I have one other point, if I may, on the surplus foreign currencies. There has been an excellent document, which I will submit for your files, published by the ICA after considerable study by three wellknown industrialists, It is not generally available nor generally known. It goes in great detail into this question of surplus foreign currencies. It says that they are not surplus in many countries, but in others they are surplus to a collossal extent, which almost becomes controversial. I will not mention the figures; but on page 39 they have a paragraph which, if you have time, I will read, in regard to its use for health, education, and so forth. The CHAIRMAN. How long a paragraph is it, Mr. Whatley? The CHAIRMAN. You are going to leave us that document? All right. Mr. WHATLEY. I will submit the paragraph for the record. It describes the potentials of foundations. The CHAIRMAN. If you will leave that with us, we will certainly appreciate it. The paragraph referred to, from the volume, Accumulation and Administration of Local Currencies, a special report to James H. Smith, Jr., Director, International Cooperation Administration, follows:) 4. FOUNDATIONS The United States has utilized the unique investment device of the tax-free foundation for benefiting mankind, especially in the fields of education, health, and welfare. These great eleemosynary institutions such as the Carnegie, Ford, Rockefeller, Guggenheim and other foundations have contributed so much internationally, that they have carried the message of American generosity and friendship throughout the world. Therefore, it seems very appropriate to create this same type of institution as a living reminder of the mutual security program of the United States in the underdeveloped areas. To do this, we recommend a program along the following lines: The United States could advantageously use its local currency holdings to establish a foundation in the foreign country to be jointly administered by the latter and the United States. For reasons of maintaining a permanent reminder of the source of the official grants, it would seem desirable that the name of the foundation include the words "United States" or "America," as well as the name of the host country; for example, the Pakistan-American Foundation for Agricultural Research" or the "U.S.-India Foundation for Scientific Advancement," et cetera. The actual management of the foundation should be by qualified personnel, trained in such work, and under the supervision of a board of trustees of six or eight or more members, half to be appointed by the foreign government and half by the United States, these to select an additional member as their own chairman. Probably some qualified person from the U.S. embassy could be appointed as a trustee to insure a certain amount of continuity of interest and direction. The investment of the local currency funds of the proposed foundations offers an interesting opportunity to support and encourage private enterprise in the host country through the medium of purchasing shares of local compaines. The bylaws of the proposed foundations could permit great freedom to the management in its investment policy. The income from the foundations could be used for the creation and/or support of such organizations as would be permitted under its bylaws. These should be drawn to fit the peculiar needs of each country. Mr. WHATLEY. Finally, Mr. Chairman, I should like to submit another table published by ICA, which shows that up to the middle of last year there had been less than $1 million of Public Law 480 currencies used for health purposes, and the reason for that no longer exists, as a result of the addition of 104K and of the new authority in the conference report. (The table referred to follows:) |