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except to furnish money to the overall organization. Since we do not do that except for expense money any place in the world, the committee might feel that the best thing to do would be to leave this law as it is.

Mr. EICHHOLZ. My only comment is that if that is the committee's position, there are a few minor drafting problems that I think we could straighten out.

Mr. VORYS. No; what I mean is that we could just simply say, "Let's sit tight on the Middle East." There is going to be up to $40 million that could be picked up somewhere and shifted around and used there, 20 million per country in addition to that, 20 million to be used for an interim organization.

One thing the committee has to think of is that since this unsatisfactory situation of having this hodge-podge of laws is before us, we would rather rock along with them as they are and leave it to reorganization and to the new drafting, rather than to invite debate on changes. That is one line of thought that is going on in the committee, but not necessarily anyone of us being committed to that. When in doubt, our temptation is going to be to let it alone and keep the bill short. If we left it alone, everything that is in the wind would have money enough authorized. You might have to pick it out of one place and use it in another, but you would not be hamstrung. Mr. EICHHOLZ. Not completely.

Mr. VORYS. Thank you.

Mr. FULTON. Commenting on the insertion of this new idea of the Middle East into the bill, I would say there has been no use of the words "Middle East" in the legislation, so there is no legislative history on it. Second, on introducing the new idea on the Middle East Command basis, you are bringing up something within this bill that is new, so you are really defining a new set of terms that you might use later.

Mr. EICHHOLZ. If your committee report made it clear that your conception of Middle East was somewhat broader than what had heretofore been defined as the Near East.

Chairman CHIPERFIELD. Thank you, gentlemen. [General discussion followed.]

Mr. CRAWFORD. Page 14, line 4, (b), “Special use of funds."


Mr. BATTLE. Mr. Chairman, I will reserve the right to place an amendment at the end of line 13. It is regarding the $100 million which the President would be allowed to spend. I am not worried about it. If he desired to send ball bearings behind the Iron Curtain, he could do so if he thought it would be to our advantage, desregarding the Mutual Defense Assistance Control Act of 1951 [the Battle Act] which this committee set up to stop shipments of strategic materials and war materials from going behind the Iron Curtain.15 I

The Mutual Defense Assistance Control Act of 1951, also known as the Battle Act (Public Law 213, 82d Cong., 1st sess.), provided for control by the United States and cooperating foreign nations of exports to any nation or combination of nations threatening U.S. security or that of a cooperating state. Hearings on the Battle Act are to be found in vol. XIV of this historical series.

do not know that I will submit that, but I thought I would like to reserve the right to do so.

[General discussion followed.]


Chairman CHIPERFIELD. Mr. Crawford.

Mr. CRAWFORD. "(c) Guaranties-To amend section 520." [General discussion followed.]

Mr. MERROW. I would like to reserve the right to offer an amendment at the proper time to section 511 [of the Economic Cooperation Act of 1948, as amended] setting forth certain conditions in reference to the economic aid to be given to the various countries around the world.

Chairman CHIPERFIELD. All right.

Mr. FULTON. Could I have, too, a request that in the report there be put a request by the committee, if the committee feels it advisable, that a guaranty program be pressed, because previously the Department has always held back and put so much redtape in that no one has felt it has been worthwhile to go through with the guaranty. I had recommended the guaranty to a particular country. By the time they got through, they were just about ready to quit. Chairman CHIPERFIELD. Mr. Crawford.

Mr. CRAWFORD. Reading on page 15, line 5, "Termination of program."

[General discussion followed. During this general discussion, Mr. Vorys and Mr. Richards indicated their preference for leaving the termination clause as it was, especially in view of the fact that it was anticipated that the entire question would be examined by the committee in the following year.]

Chairman CHIPERFIELD. Mr. Crawford.

Mr. CRAWFORD. "Underdeveloped areas-add the following new section 548."

[Mr. Westphal was called upon to explain the new section.] Chairman CHIPERFIELD. Mr. Crawford.

Mr. CRAWFORD. "Use of Local Currency."

[Mr. Westphal explained the revisions referred to.]


Mr. BURLESON. Unless someone more influential will do it, I expect to introduce an amendment proposed by the Farm Bureau_dealing with farm surpluses that will deal with foreign currencies. I do not know how it is going to affect this situation here; it will probably tie into it. I think, from the best I can tell, the proper place for it would be right on the end of the bill. How it is going to revert back to this thing here and what effect it may have, I do not know. Maybe that will be developed in discussions.

Mr. FULTON. Is that in connection with commodity credit transactions or surpluses?

Mr. BURLESON. Yes. It is a different form than anything we have had before.

Mr. FULTON. And different than your billion dollar amendment? Mr. BURLESON. Yes. It charges nothing to this program, but it is in excess of it.

[General discussion followed.]

Mr. FULTON. I would suggest an amendment so that it would read "administrative counterpart funds.”

Chairman CHIPERFIELD. Will you work up something on that, please?

Mr. JAVITS. I would be glad to offer that also.

Mr. BURLESON. When you do have opportunity, Dr. Bullock, I think Mr. Westphal has a draft of that, and if you would look at it and have it in mind.

Mrs. BOLTON. There was an amendment from the Subcommittee on the Arab Refugees. I reserve the right to make an amendment on this point.

Chairman CHIPERFIELD. Mr. Crawford.


Mr. CRAWFORD. "Section 606. The Mutual Defense Assistance Act of 1949, as amended-Assistance to NATO countries."

[General discussion followed.]

Chairman CHIPERFIELD. Mr. Crawford.

Mr. CRAWFORD. Page 17, line 24, "Excess equipment."

[General discussion followed. Mr. Crawford reminded the members that the staff was prepared to assist in duplicating copies of amendments they might wish to propose.]

Chairman CHIPERFIELD. Mr. Crawford.

Mr. CRAWFORD. Page 18, line 9. "Dependable undertaking procedure."

[General discussion followed.]

Chairman CHIPERFIELD. The committee will redraft this amendment by tomorrow.

Mr. JAVITS. I would be for striking this section of the bill on sales of military equipment.

Mr. VORYS. At this point, where we are looking forward to redoing the whole thing within 7 months, there is no use for making it so permanent. The termination date provided ought to be the same on this, I believe.

[General discussion followed.]

Mr. JAVITS. Roy, maybe you could just amend this for the moment. All the administration comes up with is stuff to provide exactly what you said, that where it is in aid of maintaining equipment which the United States has provided or is replacing or something like that, that this provision shall be as they write it. Then that satisfies them for the moment. When the administration comes up with the final thing, we can look it over again.

Mr. VORYS. When some country says we are afraid at some date in the dim future we will be unable to buy replacements, then I would be willing to see it changed.

Chairman CHIPERFIELD. Mr. Crawford.

Mrs. KELLY. I have an amendment after line 2 on page 19. Insert a new section:

(e) Jet aircraft-Amend section 411 (a) by inserting before the period at the end thereof the following: "or any jet propelled aircraft, in the case of assistance furnished under this Act to a nation which is entitled to such assistance only by reason of a determination made by the President under section 101(a) (1) of the Mutual Security Act of 1951."

Reletter subsection (e) as subsection (f).

Chairman CHIPERFIELD. Mrs. Kelly, when we go over this bill, we will consider that. While you were absent we discussed whether the way to get at the thing that you want to do is not just cut out the amount and then tell them that is for jet aircraft to Yugoslavia. Then you may want to offer your amendment.

Mrs. KELLY. I want it in the law.

Chairman CHIPERFIELD. You can offer it in the morning if you care to.

Mr. Crawford.

Mr. CRAWFORD. "(e) Loans of equipment."

[General discussion followed.]

Mr. JAVITS. Could you make some limitation, such as loans incidental to test and study, some very limiting language so it cannot be used as a program?

Chairman СHIPERFIELD. Mr. Crawford.

Mr. CRAWFORD. Section 607. (a) "Terms of guaranties," and (b) "Guaranties."

[General discussion followed.]

Mr. JAVITS. Mr. Chairman, I move you remove the unnecessary language in respect of (a) and (b).

Chairman CHIPERFIELD. Without objection, it will be so ordered, and you have got the amendment.

Mr. Crawford.

Mr. CRAWFORD. "(c) Counterpart loans."


Chairman CHIPERFIELD. Mr. Richards made an excellent suggestion a little while ago, and I think he will probably make a motion now or in the morning. We have gone over the provisions of this bill for 2 days now. When amendments are offered, he thinks we ought to go under the 5-minute rule, and I do, too.

Mr. RICHARDS. Mr. Chairman, I will make that motion now. I will move that in the morning when we proceed on the consideration of this bill, that anyone having an amendment to offer be placed under the 5-minute rule and not make a speech any longer than that.

Chairman CHIPERFIELD. All those in favor of the motion will indicate by saying "aye."

The motion is carried.

Mr. BURLESON. May I call attention again to the amendment I propose to offer, and I assume it will go at the end of the bill unless I am otherwise advised. I believe every member has a copy before him, and I hope that you will have interest and time to look at it.

Mr. VORYS. As I understand it, Mr. Burleson, you will offer a substitute simply extending the unexpended balances, and then $1 billion for farm products; is that correct?

Mr. BURLESON. No, I would like to, but I will not.

Chairman CHIPERFIELD. No one will be precluded from offering any amendment, but I think we ought to proceed as rapidly as possible in as orderly a way as we can.


Mr. FULTON. In the Armed Services Committee, they have a rule that when the funds expended are over a certain amount for installation, it shall be subject to the approval of the Armed Services Committee chairman. The trouble with using counterpart funds is that it has not been watched closely enough. Would there be any objection on your part to having an amendment that would put it under the chairman of the Foreign Affairs Committee of the House, the Foreign Relations Committee of the Senate, and the two Appropriations Committees that they can object or veto if it is over a certain amount? You do not have to look at them all, but you can nevertheless object. So if any of us see things we do not like, we can come in and ask you to hold that.

Chairman CHIPERFIELD. Perhaps we can work out something on everything it reported to the committee. I think the chairman has enough responsibilities without going over every item of counterpart funds and how they are spent.

Mr. FULTON. I do not mean that you look at every one, but if any of us have an objection, we report it to you and then you could veto any item. Any one of these four chairmen could veto an item if it were over a certain amount. You might never use that power.

Chairman CHIPERFIELD. I doubt very much if you want to have a veto power in any one person.

Mr. FULTON. They have that in the Armed Services now.
Mr. RICHARDS. I think that is unconstitutional.

Chairman CHIPERFIELD. You can think it over overnight and we will see how it looks, and I will talk to some of you people about it. Mr. Vorys.

Mr. VORYS. Mr. Chairman, the staff drafted a letter, and in going over it I had another suggestion. It has been dictated over the phone to Mr. Thruston Morton's office, and we have not heard from him, but I thought it would be well to get a tentative clearance from the committee today in case there is a time element involved. If there is not a time element involved, it can be brought back tomorrow. It is not a matter of legislation, but purely a matter of expression. I wondered if the committee would care to hear it now.

Chairman CHIPERFIELD. If you will read it, Mr. Crawford.

Mr. CRAWFORD. The draft of a letter to the President and a proposed committee resolution.

[General discussion followed.]

[See pp. 153-154 for text of the President's letter, the response of the committee chairman, and the resolution approved by the committee.] Mr. VORYS. If the committee will agree, in response to this note we have just received regarding Mr. Morton's wishes, we will take out the reference to the Export-Import Bank.

Mr. FULTON. I move we consider the resolution in the morning. Chairman CHIPERFIELD. The committee will adjourn until 10 o'clock tomorrow morning, and I hope everybody will be prompt. [Whereupon, at 4:55 p.m., the committee adjourned until 10 a.m., Thursday, June 11, 1953.]

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