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New Methods Offered To Aid Poor Nations
Editor's Note: A change has been proposed in U.S. methods of helping friendly underdeveloped nations. The administration wants to put this aid on a long-term loan basis. The idea has won approval of a bipartisan majority of the Senate. The House Foreign Affairs Committee, however, voted to limit the program to one year instead of three as President Eisenhower proposed.
The following dispatch tells how the new plan would work. It was written by John B. Hollister, director of the International Cooperation Administration for the past two years.
By John B. Hollister
WASHINGTON, July 2—(UP)President Eisenhower's proposal to shift the emphasis of U.S. economic assistance to friendly foreign nations to loans instead of gifts should be welcomed by every American taxpayer.
In brief, the President has asked Congress to appropriate 500 million dollars out of this year's mutual security program to establish a development Loan Fund. To operate effectively, this fund must have adequate money and adequate planning time. Therefore, the President has also asked Congress to authorize the government to borrow from the Treasury up to 750 million dollars in each of the two following years to finance the fund in those years. This three-year total of up to two billion dollars represents less than one-half of one per cent of our own yearly gross national product, which is running at the rate of 420 billion dollars.
If this fund fulfills its purpose of speeding economic development among almost a billion people, the dividends to the United States will far exceed the investment. These proposals of the President's are now before Congress. The Senate has already authorized these requests in full.
The new proposals signify a fundamental change in emphasis from the practice of past years and would accomplish the following important improvements:
1. The American taxpayer would know how much money was going toward helping the economic development of friendly nations, and would know that all of it was on a loan basis.
2. Foreign nations will know that the U.S. has certain limited funds (two billion dollars over three years) available for loans for really worthwhile projects that will contribute significantly to building economic strength.
This, I am convinced, is the sound, business-like way for free nations to work together. The very creation of the fund will inspire borrowing nations with a greater sense of zeal and responsibility. Loans, rather than gifts, will encourage self-reliance, and the long-term availability of the fund will encourage thoughtful long-term planning rather than frantic emergency action. What Is the Purpose Of The Fund?
3. All parties will know this money is available until used—and not, as in the past, for a limited number of months.
About a billion people—almost one-third of the world's population live in the underdeveloped areas, particularly in the Middle East, Africa, and Asia. The average income is about 100 dollars a year, in contrast to about 2,500 dollars in the U.S. Malnutrition, poverty, sickness take such a toll that their life expectancy is about 30 years, in contrast to 70 in the U.S.
Nineteen of these nations have achieved political independence since World War II. They are determined to achieve economic growth and independence too. However, they do not have adequate capital and foreign exchange to begin essential development in roads, dams, railroads, utilities—the very sinews of economic growth. They must turn to the outside for help. Notwithstanding the blandishments of the Communist bloc, most of these new countries turn to us, and other industrialized nations of the free world, for this help.
The purpose of the fund is to provide the most economical and effective way for the United States to assist in these nations' own efforts to progress.
How Would The Loans Be Made? Within the International Cooperative Administration, I would expect to appoint a manager of the Development Loan Fund, and provide
him with a small staff of
um with a small staff of experts. Nations wishing to borrow will present to the fund manager projects for which they are requesting loans. These proposals would be fully documented by engineering and economic studies and similar justification. The requests would then be screened against these three criteria, which are specified in the proposed legislation:
1. Could the financing be obtained elsewhere in the free world on reasonable terms? This would insure that the fund's financing complemented, rather than was a substitute for, financing available from other sources.
2. Is the proposed activity of transaction economically and technically sound?
3. Does it give reasonable promise of contributing to economic growth as a sound investment should?
And I should add, as does the proposed bill, that the fund would be administered so as to support and encourage private investment.
The fund would be much more directly an instrument of our foreign policy than is the export-import bank. That is why the President recommends that the fund be administered by ICA, under the policy guidance of the State Department.
However, just as with a regular bank, the obligation to repay would be unequivocal; although undoubtedly a substantial number of the loans would be repayable in local currencies. The terms in general would be long and frequently interest also would be paid in local currency.
will Cooperate With Private Banks I wish to emphasize at the fund will not compete in any way with regular banking institutions. Rather, it will cooperate with them to the hilt. Suppose country "X" has known rich iron ore deposits, and needs loans to exploit them. Regular banks might finance such loans, but only if there was a railroad line to get the iron ore out and down to a port. The fund might make a loan to build the railroad, then the regular bank would make a loan to develop the mine. Thus, such a loan would be "seed" money to get private economic sources into development activities and get these under-developed nations onto their own economic feet.
We want these countries' growth to go forward rapidly enough so that they can finance an increasing part of their development programs out of their own production and from normal financing sources.
Senate Committee Votes Opens Files
If we can do this, the requirement for the fund's resources will eventually be diminished, and eventually, as the fund revolves from its own earnings and repayments, no new funds will be needed.
WASHINGTON—(UP)—The Senate Judiciary Committee unanimously approved Monday a bill to limit the effect of a recent Supreme Court decision opening FBI files to defendants in certain criminal cases.
Sen. Joseph C. O'Mahoney (D-Wyo.) said he would report the bill to the Senate today and push to get it passed this week.
The administration-backed bill would let federal judges examine the FBI files and submit to defendants only such material as is relevant to a particular case.
The House Judiciary committee meets on similar legislation today. Pending before it are the Administration Bill and a stiffer measure drafted by Rep. Francis E. Walter (D-Pa.) and approved by Walter's subcommittee. Rep. Kenneth B. Keating (R-N.Y.) is expected to try to substitute the Administration bill
The Supreme Court ruled June 3 in the so-called Jencks case that the government must make available to defendants in criminal cases FBI reports supplied by informers used by the government as witnesses in a trial. Otherwise, the court ruled, the government must drop prosecution in such cases.
The bill approved by the Senate Committee today provides that after a government witness testifies on direct examination, the defense may ask the right to examine any statements he had made to the government.
If we do less than this, the requirements for new funds will continue unabated. I submit that unending assistance is wasteful assistance.
Not only that, but it will probably be ineffective assistance. For it will fail to meet the very real threat to our national safety which exists in the less developed areas. Therefore, to do its job, the fund must have adequate financing for an adequate time right from the start.
How Has Congress Greeted
How Has Congress Greet The Fund' Proposal?
Congress consists of 531 different individuals with as many individual opinions. You cannot predict what will happen until the final authorization is approved and the final appropriation made.
The special Senate committee to study foriegn aid recommended that development funds be put on a loan basis, and the Senate has already approved this part of this year's mutual security bill. This has been a recurring recommendation in almost every study made of the mutual security program. It is in the national interest to help other newer nations become strong and stay free—for our mutual benefit.
In order to organize the Rough Riders for service in the Spanish-American War, Theodore Roosevelt resigned as assistant secretary of the Navy.
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Tuesday. July 2. 1957
Stars Lack Glamour Today
HOLLYWOOD-(UP)-The world's leading example of glamour has decided the new young stars of Hollywood don't have any.
Marlene Dietrich, who pales even Ava Gardner and Rita Hayworth when it comes to true glamour, isn't quite sure what glamour is. She thinks "it has something to do with authority."
But whatever the ingredient is, the new beauties of the screen don't have it, she observed with a shrug.
There are no glamorous stars today because the people who give glamour to these women are not around—producers such as Irving Thalberg, L. B. Mayer," reflected Dietrich.
"They took those little girls and did something with them.
"Now," she sighed, "they measure them.
"This bosom business is a national American disease. It has spread everywhere, to England, to Italy. Like, Coca-Cola.
"The real glamour women in the history of movies are very few. There have not been many, just a handful. Today the French actresses probably have glamour, but the stars here just don't."
"Except for Audrey Hepburn—she's in a class by herself! She's European. It's very reassuring and wonderful that with all these girls there still is Audrey.
The 1906 earthquake in San Francisco began at 5:15 a.m. April 18.
Dietrich's Glamour, Too,
Was Created
Mayer and Thalberg created glamour for Jean Harlow and Greta Garbo. Director Josef Von Sternberg was credited with building the fabulous creature that is Dietrich—a slender, blonde, husky-voiced woman now twice a grandmother but unequaled in her class.
In "Witness for the Prosecution" Marlene wears a mamish, slouch hat. It's an exact copy of the hat she wore when she first arrived in Hollywood in 1930. In measurements and face as well as hat, she still looks the same.
These day Marlene is working on her most important and most dramatic role in many years, the title role for "Witness for the Prosecution," which independent producer Arthur Hornblow is making from the stage hit.
"I wore the hat then in publicity stills, but this is the first time I have worn it in a film," she said. "I usually play shady ladies in feathers."
Parking Free With Meters
CORAL GABLES, Fla. — (UP) — Traffic engineer William Wellons said motorists have taken the city for $7,000 in recent months. They have discovered, he said, they can make parking meters register by shaking them instead of using coins.
United Press entered the picture field in 1952 with 292 clients. The total was 639 in 1957.
BASEBALL
The most popular outdoor game in America is
And the most popular checking account is one in which no minimum balance is required, called
ThriftyCheck
available in this area only at
Douglas County State Bank 900 Mass. "The Bank of Friendly Service"
202 West 6th