Jamaica, an Export Industrial Development project in Central America, and a Private Sector Industrial Infrastructure project in the Eastern Caribbean Islands. Several regional activities will promote wider regard for human rights and democratic principles and practices, and Frivate voluntary organizations will be supported through new projects in a number of countries.

Economic Support Funds will continue to play an important role in supporting the countries of the Caribbean Basin to undertake sound economic stabilization and recovery programs. Most ESF funds will provide part of the substantial balance-of-payments support needed by Costa Rica, El Salvador, Guatemala, Honduras, the Dominican Republic, and Jamaica. The remainder will be directed at specific project activities in Haiti and the Eastern Caribbean. The foreign exchange made available from ESF resources will be used primarily to facilitate the financing of key imports by productive private enterprises. Local currency generations will primarily support credit requirements of these enterprises. They will also provide some counterpart contributions for key infrastructure projects essential for the long-run growth of the private sector; essential public services; and the activities of private voluntary organizations, cooperatives

and similar groups.

Concluding Observations

The continuing sluggishness of the world economy has

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aggravated the economic crisis in Latin America and the Caribbean. There is growing concern that some countries in the region might default on their external loans and that popular discontent with falling living standards may lead to political violence. These would be tragic developments, both for the people of the region and for the interests of the United States.

Latin American and Caribbean countries are in great need of more external assistance from official sources, as their access to private capital markets has been diminished. Our national interests require that we

respond quickly and adequately to this challenge. We will continue to concentrate our assistance on those countries which have demonstrated a willingness to implement sound policies that will lay the groundwork for a sustained, broadly-based econonic recovery within a framework of economic and political freedom. The Development Assistance and Economic Support Funds we are requesting, as well as enactment of the remaining portions of the Caribbean Basin Initiative, would greatly facilitate this kind of recovery.

Thank You.

ASIA

STATEMENT OF CHARLES W. GREENLEAF, JR., ASSISTANT

ADMINISTRATOR

Senator KASTEN. Mr. Greenleaf.

Mr. GREENLEAF. We are continuing to address this Agency's mandate to meet basic human needs in the nine nations and two regional programs that our Bureau works with.

Our funding will continue basically in the same functional category that we had in the past, two-thirds in the agricultural area, approximately 22 percent in health and population assistance.

Also I would say in our program we are continuing to pursue four basic priorities of the administration: technology transfer, institution building, policy dialog, and the private sector.

I think that rather than go into individual countries, I will stop there.

Senator KASTEN. Thank you.

[The statement of Mr. Greenleaf follows:]

PREPARED STATEMENT OF CHARLES W. GREENLEAF, JR.

ASSISTANT ADMINISTRATOR, BUREAU FOR ASIA

AGENCY FOR INTERNATIONAL DEVELOPMENT

Mr. Chairman and Members of the Subcommittee:

I appreciate this opportunity to appear before you to present the Asia Bureau's budget request for FY 1984. The Development Assistance request is for $386 million for major programs in India, Bangladesh, Indonesia, Sri Lanka, Philippines, and Thailand, and somewhat smaller programs in Nepal, Burma, South Pacific and region-wide. ESF funding of $280 million is requested for development programs in Pakistan, Philippines, and Thailand. addition, $353 million in PL-480 Titles I, II, and III are programmed for integration with DA and ESF resources for maximum development impact.

In

In the remarks that follow, I would like to discuss the development context within which this funding request is made, to highlight key elements of the FY 1984 request and offer some

illustrations of how our aid programs address the basic human needs of poor people in Asian countries.

ASIAN OVERVIEW

Asia's high political significance to the world can only continue to increase as the Asian nations achieve greater economic growth. Helping to meet the challenges of Asian development is a key test for A.I.D. in its dual roles of supporting U.S. foreign policy and helping poor people through economic growth.

Asia is important strategically. For example, the Philippines hosts major U.S. air and naval installations and Pakistan looks