The recommendations in this letter were developed by Acting Assistant Secretary of State and Acting Administrator for the Mutual Defense Assistance Control Act, Philip H. Trezise, and are concurred in by other interested agencies. Respectfully submitted, THE PRESIDENT, The White House. GEORGE W. BALL DEPARTMENT OF STATE WASHINGTON, D.C., April 21, 1964 THE HONORABLE J. WILLIAM FULBRIGHT Chairman, Committee on Foreign Relations SIR: The President on March 25 and April 15, 1964, determined, pursuant to Section 103 (b) of the Mutual Defense Assistance Control Act of 1951, that United States aid be continued to Belgium, Denmark, France, the Federal Republic of Germany, Italy, Japan, Morocco, the Netherlands, and the United Kingdom. The President noted that under the terms of Section 620 (a) (3) of the Foreign Assistance Act of 1961, as amended,24 no funds authorized by that Act have been or will be used to furnish assistance to the United Kingdom or France after February 14, 1964.25 Cessation of other aid provided to these countries, and not subject to Section 620 (a) (3), would, however, clearly be detrimental to the security interests of the United States and, as indicated above, the President directed continuation of such aid. The President, in his letter directing that aid be continued,26 also directed that we inform you of his determination, in compliance with the reporting requirement of Section 103(b) of the Control Act. this purpose this letter, with enclosures, is sent. Very truly yours, Enclosure: G. GRIFFITH JOHNSON Letters dated January 29 and April 9, 1964. Το NOTE.-Identical letters sent to Chairmen of Senate Committees on Armed Services and Appropriations, and House Committees on Foreign Affairs, Appropriations, and Armed Services. Text in American Foreign Policy: Current Documents, 1963, pp. 1196-1244. 25 See ante, doc. III-19. 26 Not printed. E. The Food for Peace Program-Agricultural Trade Development and Assistance Under Public Law 480 Document XI‐31 "The Department of State Strongly Supports the 5-Year Extension of P.L. 480": STATEMENT MADE BY THE UNDER SECRETARY OF STATE FOR POLITICAL AFFAIRS (HARRIMAN) BEFORE A SUBCOMMITTEE OF THE HOUSE COMMITTEE ON AGRICULTURE, FEBRUARY 28, 1964 1 Document XI-32 The Agricultural Trade Development and Assistance Act of 1954, AS AMENDED THROUGH PUBLIC LAW 88-638, APPROVED OCTOBER 8, 1964 2 Document XI-33 Extension and Amendment of the Public Law 480 Food for Peace Program Until December 31, 1966: SUMMARY OF PROVISIONS OF PUBLIC LAW 88-638, APPROVED OCTOBER 8, 1964 3 The Public Law 480 extension legislation, Public Law 88-638, approved by the President on October 8, 1964, amends the Agricultural Trade Development and Assistance Act in the following respects: 1. Provides 2-year extension through December 31, 1966, for both titles I and II. (Titles III and IV do not have expiration dates and therefore did not require extension.) 2. Authorizes $2.7 billion (plus carryovers and reimbursements to CCC from sales of foreign currencies for dollars), to cover extended period for title I. (The previous authorization was $4.5 billion for Department of State Bulletin, Mar. 30, 1964, pp. 507–509. In his farm message of Jan. 31, 1964, to Congress, President Johnson recommended a 5-year extension of titles I and II of the Agricultural Trade Development and Assistance Act of 1954, as amended (cited infra) ; see The New York Times, Feb. 1, 1964. Legislation on Foreign Relations, With Explanatory Notes, February 1965 (Joint Committee print of the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs, 89th Cong., 1st sess.), pp. 183–203; also, 7 U.S.C. §§ 1691-1736. For the text of Public Law 88-638, see 78 Stat. 1035, summarized infra. H. Doc. 130, 89th Cong., transmitted Mar. 31, 1965, pp. 96–97. Cited supra. 5 Titles I and II of this act were due to expire on Dec. 31, 1964. Under title I-the principal authority for the Food for Peace Program-sales of agricultural commodities are made for foreign currencies. Under title II grants of food and other agricultural commodities are made to needy people abroad. Title III provides for donations of surplus food for domestic distribution and for distribution overseas by nonprofit U.S. voluntary relief agencies and intergovernmental organizations. It also provides for barter of Commodity Credit Corporation (CCC) commodities for strategic and other materials. Title IV of Public Law 480 provides for the financing of export sales of U.S. agricultural commodities for dollars. the 3 years ending Dec. 31, 1964, and did not provide for carryover.) The annual limit of agreements signed continues at $2.5 billion. ୫ 3. Provides an annual authorization of $400 million (plus carryover), for title II. (The previous authorization was $300 million per year-plus carryover-for the period ending Dec. 31, 1964.) 4. Prohibits sales under title I to any Communist country (e.g., Poland and Yugoslavia), or any country whose ships or aircraft are permitted to go to Cuba,10 but provides that such countries shall be eligible for sales under title IV. (Any country otherwise ineligible under title IV because of Battle Act, e.g., Poland, would be restricted to 5-year credit. The Battle Act [Mutual Defense Assistance Control Act of 1951, as amended], otherwise prohibits aid including Government credits to countries which knowingly permit the shipment of strategic materials to any nation threatening the security of the United States, including the Soviet bloc and Communist China.) 11 5. Prohibits sales under title I or title IV to any country determined by President to be an aggressor against any country having diplomatic relations with the United States or using funds from the United States for purposes inimical to the United States. 6. Limits financing of ocean-freight charges on certain shipments under agreements signed after January 1, 1965, to differential by which U.S.-flag rates exceed foreign-flag rates.12 Recipient country must pay the balance in dollars. (The effect of this amendment will be to approximately double the amount of foreign exchange which recipient countries will need for the payment of these oceantransportation expenses.) 7. Requires exchange rates for title I sales to be highest legally obtainable and no less favorable than those obtainable by any other nation. 8. Establishes executive-legislative advisory committee to make recommendations on use of foreign currencies and improving administration of act. Committee must be consulted with respect to policies on economic development loans, private enterprise loans, the degree of convertibility to pay U.S. obligations, and related matters. 9. Provides that proposed use of foreign currencies for grants (except military grants under sec. 104 (c),13 or proposed use of loan repayments for any purpose, must be submitted to the Senate and House Committees on Agriculture with the right of either committee to disapprove within 30 days (60 days if Congress not in session).1* 10. Increases the minimum amount of title I foreign currencies sub 8 Reference to title I of Public Law 87-128, approved Aug. 8, 1961; 75 Stat. 294. 'See ante, doc. V-6. 10 See ante, docs. III-19 and XI-30. 11 See ante, docs. XI-27-30. 18 Authorizes use of foreign currencies from sales of surplus agricultural commodities "to procure equipment, materials, facilities, and services for the common defense including internal security." (7 U.S.C. § 1704 (c).) 14 See infra. ject to appropriation process from 10 to 20 percent for the 2-year period 1965-66. 11. Requires title I foreign currencies to be convertible "to the extent consistent with the effectuation of the purpose of the act", and, in any event, to the extent necessary to meet obligations or charges payable by U.S. Government agencies (e.g., Suez Canal charges). 12. Requires title IV credits to bear interest at not less than minimum rates required for development loans under Foreign Assistance Act (1 percent up to 10 years and 2 1/2 percent thereafter).15 13. Requires title I foreign currency loans under sales agreements entered into after the effective date of the bill to bear interest at not less than cost of funds to the United States, unless the advisory committee recommends lower rate, and the President so designates.14 14. Authorizes use of $7.5 million per year of CCC funds under title II to purchase title I currencies to support more effective use of food made available under titles II and III. 15. Removes 25 percent ceiling on amount of foreign currencies which may be used for private enterprise loans under section 104 (e),16 and substitutes provision that currencies shall be available to the maximum usable extent. 16. Authorizes sales of foreign currencies to U.S. citizens for travel or other purposes. (This item provides for the incorporation in Public Law 480 of sec. 612(b) of the Foreign Assistance Act of 1961, as amended.) 17 17. Authorizes use of foreign currencies for activities in support of counterinsurgency programs. 18. Extends authority to pay general average contributions to shipments of commodities donated under section 416 of title III 18 and related statutes as is now provided for shipments under title II. 19. Provides that title I shall be used to assist friendly nations to be independent of trade with the Communist regime in China as well as with the U.S.S.R. 20. Changes the reporting requirement under the act from a semiannual report to an annual report. 21. Permits food commodities donated abroad under section 416 of title III to be used for self-help activities. 22. Requires expenditures under Public Law 480 to be classified in the budget as expenditures for international affairs and finance. 23. Directs CCC to make extra-long-staple cotton available for export at world prices as long as it is in surplus. These exports are not 15 See post, doc. XII-9. Provides for grants to foreign governments and international organizations for economic development, for loans to U.S. private enterprise for business and trade expansion in the foreign country, and for loans to U.S. and foreign firms aiding in the sale and consumption of U.S. agricultural products abroad. 17 Reference to section 104 (t) of the Agricultural Trade Development and Assistance Act of 1954, as amended, which extends the authority under section 104(s) for sale of foreign currencies for dollars to U.S. tourists and authorizes sales of excess currencies acquired under various programs, including Public Law 480, to U.S. citizens "for travel or other purposes." (7 U.S.C. § 1704(t).) 18 See footnote 6 above. to be considered, however, in setting future acreage allotments and marketing quotas. (This section supplements other authorities and is not an amendment to Public Law 480.) Document XI-34 Opposition to Certain Legislative Limitations on the Food for Peace Program: STATEMENT MADE BY THE PRESIDENT (JOHNSON) ON SIGNING THE BILL EXTENDING THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT, INDIANAPOLIS, OCTOBER 8, 1964 19 I am very happy to sign this bill.20 It will extend for 2 years legislation of enormous importance both to the United States and to the rest of the free world. It authorizes continuation of the Food for Peace program. This program makes possible the sharing of our abundance on a scale unparalleled in the history of the world. It stands as a monument to the miracle wrought by the American farmer and to the generosity and practical wisdom of the American people. The Food for Peace program authorized by this law will permit us to use our agricultural abundance to combat malnutrition and hunger in the less developed countries and to promote their economic growth. At the same time, this program will help us to attain vitally important economic and foreign policy objectives. It benefits all of the people, directly or indirectly. During the past 10 years we have shipped $12.2 billion in food to needy people, under Public Law 480. Our food has gone to over 100 countries. It has relieved the hunger of many millions of men, women, and children. Most of us, in this rich land of ours, find it difficult to imagine what food assistance really means to the half of the people in the world who have too little to eat. This kind of assistance means a noon meal for 40 million foreign schoolchildren. It means emergency supplies when catastrophe strikes drought, floods, hurricanes, earthquakes. To millions of people it means the difference between an inadequate and barely adequate diet. Our food also promotes economic growth in the less developed countries. It helps control inflation. It generates local currencies, which the United States can grant to less developed countries, to help them build their industry, their agriculture, their communications, their schools, and their hospitals. The United States is also a prime beneficiary of the program. The Food for Peace program authorized by Public Law 480 makes constructive use of the abundant production of our farmers and ranchers, thereby increasing their incomes. It stimulates business for American industry and creates jobs for American workers. It builds, 10 Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1963-64, vol. II, pp. 1249-1251. |