the formal creation (on 31 March 1942) of the Institute of InterAmerican Affairs, a U. S. Government agency with responsibility for providing technical assistance to the Latin American countries.

At the end of World War II, the United States participated in the United Nations Relief and Rehabilitation program (UNRRA) and met the Communist threat to Greece and Turkey with the "Truman Doctrine" of economic and military assistance.

The European Recovery Program, popularly known as the Marshall Plan, was initiated in 1948 to provide American financing of food, raw materials, machine tools and other equipment to revive the war-torn economies of Western Europe and help those countries maintain political stability.

Economic assistance was extended to the Far East in the late 40's and early 50's under special programs authorized by the Congress to meet new challenges created by the intensification of the Cold War.

In his inaugural speech of 20 January 1949, President Truman proposed a new approach to U. S. foreign assistance efforts. The "Point IV" program of U.S. technical assistance subsequently was launched with the passage by Congress of the first Act for International Development.

Over the years, economic and social development programs were administered successively by the Institute of Inter-American Affairs, the Economic Cooperation Administration, the Mutual Security Agency, the Technical Cooperation Administration, the Foreign Operations Administration, the International Cooperation Administration (ICA), and the Development Loan Fund (DLF). The latter was created by the Congress at the request of President Eisenhower in 1957 to supplement American technical assistance programs by providing the capital needs for long-term development.

In 1961, President Kennedy asked the Congress to establish the Agency for International Development (AID), which would

be charged with launching "A Decade of Development, on which would depend, substantially the kind of world in which we and our children shall live." The Foreign Assistance Act of 1961 created the Agency for International Development, combining the economic and technical assistance programs previously carried out by ICA, the loan activities of the DLF, and local-currency lending functions of the Export-Import Bank. All AID activities are directed toward a single goal: To assist other countries that seek to maintain their independence and become self-supporting.

The American investment since World War II in the recovery and development of 28 countries is completed and the returns are plainly visible. We now have prosperous, strong allies who share with us in helping others.

Our investment in the continued independence and the progress of the less-developed countries is still under way. This is a longterm investment because development is a much more difficult challenge than recovery.

At the same time, at home this nation is concerned with poverty in America, with that considerable minority of Americans who do not share either the opportunity or the affluence of our time.

Then why have a foreign assistance program?

Because we are also concerned with poverty abroad, where the proportions are reversed. The poor countries contain two-thirds of the Free World's 2.2 billion people. It is the affluent who are in the minority in today's world.

In this shrinking world, the goal of American policy is a world community of independent nations cooperating to achieve a decent life for their people. Such a world community will not end problems between nations, but it offers the chance to solve them peacefully.

There are things foreign aid cannot and is not designed to do. The purpose is not to win friends, earn gratitude, or gain votes in the United Nations. AID serves American interests in other ways than these.

The President in his February 1972 report to Congress made the following comments:

"A New Approach for the 1970's. The first step was to understand clearly the objectives of our foreign assistance effort. Under the existing structure, development, humanitarian, and security assistance had been combined under the Foreign Assistance Act. Economic and social objectives had tended to become entwined with security objectives. Some attempted to justify development assistance on the grounds that it could win friends, convert nations to our way of thinking, and thereby serve our security needs. Others justified security assistance on developmental, as well as security, grounds. And while there are situations in which these justifications have merit, presentation of the program in this way confused their main purposes.

"There are three types of foreign assistance, which can effectively serve three main objectives:

Security assistance (including military aid and economic supporting assistance) is vital to help friendly countries develop the capability to defend themselves.

Humanitarian assistance helps countries struck by natural disasters or the human consequences of political upheaval.

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Economic aid assists lower income countries in their

efforts to achieve economic and social progress.

"In order to enable us to distinguish between these objectives and fix program responsibility for each, it was essential to present them clearly and establish an administrative and policy structure for each. In my April 21 message to the Congress, therefore, I proposed two bills: one for International Security Assistance and the other for International Development and Humanitarian Assistance-thereby separating them for the first time. To assure more effective policy control and management, I proposed that a Coordinator of Security Assistance be established in the Department of State, and that responsibility also be centralized for coordinating humanitarian assistance program.

"Multilateral Assistance. A necessary complement to the more effective bilateral program we are attempting to build, and a major element in my new approach to foreign assistance, is a broader international sharing of responsibility for the development assistance effort.

"We will need the same degree of international cooperation in development assistance as is necessary in the areas of monetary and trade policy. We fully support a strengthened international effort for development through our membership in the multilateral development institutions and various consortia and consultative groups, through United Nations specialized agencies and the United Nations Development Program, and through our continued participation in the Development Assistance Committee of the OECD.

"The assistance we provide through the multilateral institutions is of special importance to the development effort. These institutions have made outstanding progress in providing vitally needed aid and in assuming an effective leadership role. We are committed to continue to provide assistance through these institutions as they continue to progress. I have requested, and I urge the Congress to provide, $320 million per annum over the next three years for the International Development Association of the World Bank. These funds--which are more than equaled by contributions from other countries--enable the Bank to provide low interest loans to the poorest of the developing countries.

"I have also urged the fulfillment of our commitment to the Fund for Special Operations of the Inter-American Development Bank and the soft loan window of the Asian Development Bank. The funds channeled through these institutions represent an important contribution to regional development in these areas and to assisting their poorest countries. Work continues to go forward on creation of the African Development Bank's Special Fund. And the hard loan funds which I have requested for the World Bank and the regional banks will enable these institutions to balance their lending by making long terms loans on terms closer to commercial rates to countries which can afford them.

"This Administration will work cooperatively with Congress with a view to reaching affirmative answers to these questions. The

failure of this, the world's richest nation, to assist adequately the world's poor nations in their development efforts today and in the decade ahead would be one of the great human tragedies of history. Just as would a failure to confront poverty, hunger, and disease in our own country, it could not but make this a less desirable world. This nation has the resources and the know-how to make a vital contribution to the efforts of developing nations to improve the quality of life of their people. At a time when we are asking all nations to share in the responsibility for building world peace, we must do our part to ensure that all nations share in the world's prosperity.

In transmitting his foreign aid program to the Congress on May 1, 1973, the President said:

"One of the most important building blocks in erecting a durable structure of peace is the foreign assistance program of the United States. Today, in submitting my proposed Foreign Assistance Act of 1973, I urge the Congress to act on it with a special sense of urgency so that we may continue the important progress we have made toward achieving peace during the past year.

"In recent years, as we have sought a new definition of American leadership in the world, assistance to other nations has remained a key part of our foreign policy. Under the Nixon Doctrine of shared responsibilities, we have tried to stimulate greater efforts by others. We want them to take on an increasing commitment to provide for their own defenses, their security and their economic development. Most importantly, we hope they will assume greater responsibility for making the decisions which shape their future.

"We must not, however, try to shift the full weight of these responsibilities too quickly. A balance must be struck between doing too much ourselves and thus discouraging self-reliance, and doing too little to help others make the most of their limited resources. The latter course would spell defeat for the promising progress of many developing nations, destroy their growing selfconfidence, and increase the likelihood of international instability. Thus it is critical that we provide a level of foreign assistance that