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CARD DIVISION

FOREIGN ASSISTANCE ACT OF 1968

HEARINGS

4.S. Congress. House. BEFORE THE

COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES

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A BILL TO AMEND FURTHER THE FOREIGN ASSISTANCE ACT OF 1961, AS AMENDED, AND FOR OTHER PURPOSES

91-118

MARCH 26, 27, 28; APRIL 1 AND 2, 1968

PART IV

Printed for the use of the Committee on Foreign Affairs

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1968

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price 60 cents

COMMITTEE ON FOREIGN AFFAIRS

THOMAS E. MORGAN, Pennsylvania, Chairman

CLEMENT J. ZABLOCKI, Wisconsin
OMAR BURLESON, Texas
EDNA F. KELLY, New York
WAYNE L. HAYS, Ohio

ARMISTEAD I. SELDEN, JR., Alabama
BARRATT O'HARA, Illinois

L. H. FOUNTAIN, North Carolina
DANTE B. FASCELL, Florida
LEONARD FARBSTEIN, New York
CHARLES C. DIGGS, JR., Michigan
WILLIAM TOMURPHY, Illinois
CORNELIUS E. GALLAGHER, New Jersey
ROBERT N. C. NIX, Pennsylvania
JOHN S. MONAGAN, Connecticut
DONALD M. FRASER, Minnesota
BENJAMIN S. ROSENTHAL, New York
EDWARD R. ROYBAL, California
JOHN C. CULVER, Iowa
LEE H. HAMILTON, Indiana

JOHN V. TUNNEY, California

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BOYD CRAWFORD, Staff Administrator
ROY J. BULLOCK, Senior Staff Consultant

ALBERT C. F. WESTPHAL, Staff Consultant
FRANKLIN J. SCHUPP, Staff Consultant
ROBERT F. BRANDT, Staff Consultant
HARRY C. CROMER, Staff Consultant
PHILIP B. BILLINGS, Staff Consultant
MARIAN A. CZARNECKI, Staff Consultant
MELVIN O. BENSON, Staff Consultant
EVERETT E. BIERMAN, Staff Consultant
JOHN J. BRADY, Jr., Staff Consultant
JUNE NIGH, Senior Staff Assistant
HELEN C. MATTAS, Staff Assistant
HELEN L. HASHAGEN, Staff Assistant

LOUISE O'BRIEN, Staff Assistant

MARY M. LALOS, Staff Assistant

DORIS B. MCCRACKEN, Staff Assistant

JEAN E. SMITH, Staff Assistant

MARY BURNS, Staff Assistant

ROBERT J. BOWEN, Clerical Assistant

(II)

KF27 19684

F6

CONTENTS

LIST OF WITNESSES

Tuesday, March 26, 1968:

Grant, Hon. James P., Assistant Administrator for Vietnam, Agency
for International Development - - -

Habib, Hon. Philip C., Deputy Assistant Secretary of State for East
Asian and Pacific Affairs_

Steadman, Hon. Richard C., Deputy Assistant Secretary of Defense (International Security Affairs) for East Asian and Pacific Affairs.. Wednesday, March 27, 1968:

Grant, Hon. James P., Assistant Administrator for Vietnam, Agency
for International Development. - -

Habib, Hon. Philip C., Deputy Assistant Secretary of State for East
Asian and Pacific Affairs..

Steadman, Hon. Richard C., Deputy Assistant Secretary of Defense (International Security Affairs) for East Asian and Pacific Affairs.. Thursday, March 28, 1968:

Heinz, Vice Adm. Luther C., U.S. Navy, Director of Military Assist-
ance, Office of the Assistant Secretary of Defense for International
Security Affairs..

Page

575

591

594

617

629

633

694

Warnke, Hon. Paul C., Assistant Secretary of Defense for International
Security Affairs.

671

Monday, April 1, 1968:

Heinz, Vice Adm. Luther C., U.S. Navy, Director of Military Assist-
ance, Office of the Assistant Secretary of Defense for International
Security Affairs..

713

Warnke, Hon. Paul C., Assistant Secretary of Defense for Inter-
national Security Affairs....

723

Tuesday, April 2, 1968:

Lemnitzer, Gen. L. L., U.S. Army, Supreme Allied Commander,
Europe, and Commander in Chief, U.S. European Command_-----

747

Page

611

STATEMENTS AND MEMORANDUMS SUBMITTED FOR THE RECORD Memorandum submitted by Agency for International Development (AID) on popular support of the rural population for the Saigon Government__ Memorandum supplied by Departments of State, Defense, USIA, and AID, commenting on the Roche report...

618-629

Memorandum submitted by AID on French and Vietnamese language capability of USAID/Vietnam staff...

638-639

Memorandum supplied by AID on goals for pacification in Vietnam, 1967.
Memorandum supplied by AID on voluntary agency programs in Viet-

nam..

643

643-647

Memorandum submitted by AID on Vietnamese and U.S. health personnel in Vietnam___

647-648

Memorandum supplied by AID on use of excess property in Vietnam.. Memorandum submitted by Department of Defense on ARVN troops' return to duty during Tet offensive..

652

655-656

Memorandum supplied by AID on results of La Thanh Nghe and other
GVN Justice Department investigations___

659-661

Memorandum submitted by AID on French aspects of the Vietnam situation___

662

Memorandum submitted by AID on Vietcong and GVN recruiting-
Memorandum supplied by AID concerning intelligence procedures
Memorandum submitted by Department of State on ARVN desertion rate
following Tet offensive...

663

663

668

Memorandum supplied by Department of Defense on military aid to
Greece by other NATO countries...

Memorandum supplied by Department of Defense on total cost estimate
for countries receiving only training assistance..

Memorandum supplied by Department of Defense concerning "demo-
cratic" or "totalitarian" countries receiving military assistance under
the 1969 program..

Memorandum supplied by Department of Defense on costs to support
Latin American Milgroups..

Memorandum supplied by Department of Defense concerning MAP excess
recoveries in European theater_

Memorandum submitted by Department of Defense on financial aspects
of U.S. military withdrawal from France_

Memorandum supplied by Department of Defense concerning Brazilian
Indians__

Page

685

689

694

701

702

703

735-736

Memorandum submitted for the record concerning gold purchases by
Indians.

Memorandum supplied by Department of Defense concerning Italian sales
of M-47 tanks..

Memorandum supplied by Department of Defense on defense communications system programs in Southeast Asia and western Pacific areas... Memorandum supplied by Department of Defense on suspension policy for Greek MAP.

736

737

744

761-762

Memorandum submitted by Department of Defense on defense expenditures and international balance of payments, Western Europe.-Memorandum supplied by Department of Defense on number of dependents and balance-of-payments impact.-

Memorandum supplied by Department of Defense concerning Malta.............

762

766

773

TABLES SUBMITTED FOR THE RECORD

580

Vietnam aid program.

582

Tet offensive damage survey..

French and Vietnamese language capability of USAID/Vietnam staff_
Costs to support Latin American Milgroups..
MAP excess recoveries in European theater...

638

701

702

CHARTS SUBMITTED FOR THE RECORD

Accelerated rice production goals, 1968, Vietnam..
Republic of Vietnam: Tet offensive damage survey..

581

583-584

FOREIGN ASSISTANCE ACT OF 1968

TUESDAY, MARCH 26, 1968

HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,

Washington, D.C.

The committee met at 10:40 a.m. in room 2172, Rayburn House Office Building, Hon. Thomas E. Morgan (chairman of the committee) presiding.

Chairman MORGAN. The committee meets this morning for the continuation of the foreign aid bill, H.R. 15263, a bill on further amendment of the Foreign Assistance Act of 1961, as amended, and for other

purposes.

Our witness this morning is the Honorable James P. Grant, Assistant Administrator for Vietnam, Agency for International Development. With Mr. Grant is the Honorable Philip C. Habib, Deputy Assistant Secretary, Bureau of East Asian and Pacific Affairs, Department of State, and the Honorable Richard C. Steadman, Deputy Assistant Secretary of Defense (ISA) for East Asia and Pacific Affairs, Office of the Secretary of Defense.

Mr. Grant, we are glad to welcome you again to this committee. You have been before this committee many times. Most of us remember you, and we are glad to welcome you back here today. Mr. Grant, you have a prepared statement, and you may proceed, sir. STATEMENT OF HON. JAMES P. GRANT, ASSISTANT ADMINISTRATOR FOR VIETNAM, AGENCY FOR INTERNATIONAL DEVELOPMENT

Mr. GRANT. Thank you, Mr. Chairman. It is very good to be back here again. I have had a 3-year sabbatical in Turkey since appearing last before this committee.

With your permission, I would like to submit my statement for the record, and then just highlight certain points in it.

Chairman MORGAN. Mr. Grant, your statement will be made part of the record, and you may proceed as you wish.

Mr. GRANT. Thank you.

(The statement follows:)

STATEMENT OF HON. JAMES P. GRANT, ASSISTANT ADMINISTRATOR FOr Vietnam,

AGENCY FOR INTERNATIONAL DEVELOPMENT

Mr. Chairman and Members of the Committee, I appreciate the privilege of appearing before this Committee today to present the FY 1969 Vietnam Program of the Agency for International Development. Our efforts in Vietnam is the largest and most intensive undertaking in one country in the history of A.I.D.

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