Part XII THE MUTUAL SECURITY AND RELATED [NOTE: The Agricultural Trade Development and Assistance (Public Law 480) program is documented in Section E of Part XI, ante.] A. The Mutual Security Program 390. REQUEST FOR APPROPRIATIONS FOR THE MUTUAL SECURITY PROGRAM FOR FISCAL YEAR 1961: Message From the President (Eisenhower) to the Congress, February 16, 1960 (Excerpt)1 THE PROPOSALS FOR FISCAL YEAR 1961 The form and general structure of the mutual security program for fiscal year 1961 remains essentially that which has stood the test of experience. In the administration of the various mutual security programs, changes have been instituted in organization, programing, and management controls. It was in part for the purpose of analyzing and making recommendations for improving the administration of the program that I appointed last year a distinguished group of citizens headed by General Draper. Many of the recommendations that they made have already been put into effect. We are constantly seeking additional management improvements to meet the program needs and difficult problems of operating these diverse programs on a worldwide basis. The categories of activity are the same as those with which the Congress is familiar. Adjustments in the nature and dimension of activity are proposed which reflect and are responsible to the changes in the world scene, in the degrees of need and of capability for self-help. These adjustments also are consistent with an 1H. Doc. 343, 86th Cong. (text as printed in the Department of State Bulletin, Mar. 7, 1960, pp. 369-375). 2 See American Foreign Policy: Current Documents, 1959, pp. 1549-1551, 15811588, and 1665–1667. analysis of future needs and of future changes and capability for selfhelp. This forward analysis was, in part, conducted in conformance with the requirement of law that plans of future grant economic assistance be developed and presented to the Congress. The detailed plans and conclusions on future assistance will be submitted to the Congress in the near future.* MILITARY ASSISTANCE 3 For military assistance I am requesting in the pending Department of Defense budget an appropriation of $2 billion. This is more than was requested, or than was provided for fiscal year 1960. The request for a larger appropriation is not made in order to increase the proportionate share of U.S. participation in the common defense. Nor does it reflect an intent to embark on a vast expansion of the military assistance program. The amount requested for military assistance within the Defense budget is in my considered judgment, and in that of the Joint Chiefs of Staff, a need for our defense equally compelling and of equal importance with the needs of our own services provided for elsewhere in the Defense budget. The amount requested is the result of careful and detailed review of the needs of our allies to enable them to maintain the level of combat effectiveness made possible by previous military assistance and to provide, mostly on a cost-sharing basis, for certain essential force improvement projects. Without adequate provision for maintenance, the moneys previously spent would be largely wasted. And without force improvement, without the provision of more advenced weapons, the free world forces would inevitably fall behind in their ability to counter modernized aggressor forces. The fact, if it is a fact, of reductions in Soviet military manpower," does not alter the need for the maintenance of our collective defense. Soviet military power, as Mr. Khrushchev's own statements make clear, remains great. Our plans have never attempted to match Soviet armed manpower; they have been and are designed to deter aggression. Of special importance is the maintenance of a strong and effective deterrent posture in the NATO alliance. As indicated earlier, the improving economic position of Western Europe as a whole makes it possible for Europe to share increasingly in the cost of the common defense, and for certain major European countries to maintain their defense efforts without U.S. assistance. At the same time, the requirements for modernization and improvement are of such dimension that our participation in joint cost-sharing projects with certain European countries over the immediate future is still essential. Provision for such contributions is included in the proposed program. The amount requested for fiscal 1961 is consistent with the recommendations of the bipartisan committee of distinguished citizens 3 Pursuant to sec. 503 (c) of the Mutual Security Act; see ibid., pp. 1633-1634. 'See the unnumbered title, infra. 5 See ante, doc. 327. headed by General Draper, which I appointed last year to review our policies and programs. This committee strongly urged the maintenance of a delivery program of approximately $2 billion annually. In recent years, annual deliveries have averaged about $2.2 billion. Deliveries in fiscal year 1960, however, reflecting the reduced appropriations of recent years, will fall back to $1.8 billion or less. Unexpended balances carried over from previous years have now been reduced to a minimum and deliveries in future years will closely approximate the annual appropriation level. In my considered judgment, an appropriation of $2 billion for fiscal year 1961 is the minimum amount consistent with the maintenance of a firm and adequate collective defense posture. Anything less in effect precludes essential modernization and improvement of forces and limits us to a bare maintenance program. ECONOMIC ASSISTANCE Defense Support For 12 of the nations with whom we are joined in collective or matual security arrangements, we have for some years been contributing not only military resources required in the common defense but economic resources in the measure needed to permit the maintenance of such defenses without incurring political or economic instability. This category of resource contribution we term "defense support"economic resources to assure a defense posture. These 12 countries maintain forces of over 3 million men, more than the total number in the U.S. Armed Forces, and each of these underdeveloped countries, except for Spain, is part of the exposed land and offshore island belt that forms the immediate southern and eastern boundary of the SinoSoviet empire. Requirements in this defense-support category have decreased somewhat; for fiscal year 1961 I am requesting for these programs $724 million or $111 million less than I asked for last year. This reduced requirement reflects in some measure a gradual but perceptible improvement in the economic situations in these countries. More than half, 56 percent, is for the three Far Eastern countries of Korea, Taiwan, and Vietnam, which have the common characteristics that they are divided countries facing superior Communist forces on their borders, forces which the Communists previously have demonstrated their willingness to use, thereby compelling these frontier nations to support armed forces far in excess of their unaided capacities to maintain. The amounts requested for these purposes represent the least we can contribute and retain confidence that adequate defenses will be maintained. Special Assistance Another category of international cooperation in the mutual security program is the provision of economic resources to other nations where such resources are essential to the maintenance of their freedom and stability. This category of cooperation we term "special assistance." I am requesting $268 million for these purposes in fiscal year 1961. Such provisions will enable us, for example, to continue aid to the young nations of Morocco, Libya, and Tunisia, to strengthen the stability of Jordan and the Middle East, to combat the encroachment of Communist influence in Afghanistan, and to undergird the economies in Bolivia and Haiti. Special assistance will also enable our continued participation in such vital programs as the worldwide antimalaria campaign. Aid to Development The achievement of economic progress, of growth, depends on many things. Through collective security arrangements, through defensive measures, by giving military aid and defense support, we and other nations can achieve a measure of security and stability within which the process of development is possible and can be fostered. The primary and essential prerequisite internally is the determination to progress and take the actions needed and to make the sacrifices required. No matter how great the determination, however, there will remain tremendous needs for both technical improvement and capacity and for development capital. If a pace of development is to be achieved which will meet the essential demands of these peoples, outside help is a necessity. Technical Cooperation Through our long-established program of technical cooperation and by our contributions to the United Nations activities in the technical assistance field, we make a major contribution toward the satisfaction of this thirst and need for growth in knowledge and technical capacity. The mutual security program proposed for fiscal year 1961 continues these vital activities and provides for the enlargement and extension of our technical assistance programs in the newly emerging nations of Africa. For bilateral technical assistance I request $172.5 million; for our participation in United Nations technical assistance programs I ask $33.5 million; and to supplement our much larger bilateral program with our neighbors to the south, I ask $1.5 million for the program of technical assistance which we conduct in cooperation with them through the Organization of American States. Africa Of inescapable interest to the United States in the world today is the increasing assumption of self-government by the peoples of the great continent of Africa, especially in the area south of the Sahara. This vast area deserves and commands the full attention and assistance of the free world if it is to develop its institutions and its economy under freedom. While the needs of Africa south of the Sahara for development capital are real and can be expected to grow, there is an imperative and immediate requirement for increased education and training. The request for appropriations for special assistance includes an amount of $20 million for a special program to be instituted for the improvement of education and training in Africa south of the Sahara, with particular emphasis to be given to the meet 690-494-64- -57 It ing of needs which are common to all the countries of the area. is my belief that this initial effort must grow significantly in the immediate years ahead and complement similar efforts on the part of other free world nations so that the capacity of the new and other developing nations in Africa to manage and direct their development can be strengthened and increased rapidly and effectively. Without such strengthening and development of education and training, the preconditions of vigorous economic growth cannot be established. Development Loan Fund In the field of development assistance, the Development Loan Fund is proving to be an increasingly effective instrument for response to those needs which cannot be satisfied from private investment, the World Bank, or other like sources. It has assisted in the installation of basic facilities, such as power and transportation, necessary for growth in the less developed areas. Particularly important are the expanded activities of the Development Loan Fund in the field of private enterprise. The Development Loan Fund is opening new opportunities to build an effective partnership with American private enterprise wherein the private resources of the country can make an increased contribution to development in the less developed nations. The history of the Development Loan Fund activity over the past 2 years indicates that the flow of such loan capital has tended to respond to the degree of need and of capability. In other words, those areas where the determination and the will to progress are greatest and the capacity to use such resource effectively is the greatest, have been the leading recipients of loan assistance from the Development Loan Fund. I request $700 million for the Development Loan Fund for use beginning in fiscal year 1961. South Asia Over the past 2 years a major share of Development Loan Fund loans have been made to the two great nations of south Asia—India and Pakistan-where half a billion people are deeply committed and irrevocably determined to develop and maintain institutions of their own free choice, and to raise their standards of living to levels of decency. The force and drive of this great effort is unmistakable: it warrants the full and warm support of the free world. We have joined with other nations in helping these countries; we envisage the total public and private effort to assist south Asia not only continuing but expanding. An increased amount is expected to be devoted to this great cause from the resources requested for the Development Loan Fund for fiscal year 1961 as these countries increase even further their own self-help efforts. The Indus Basin Development A development of major significance in south Asia is the substantial progress being made under the auspices of the World Bank to effect a solution to the complex and difficult problem of the use of the waters of the Indus River Basin as between India and Pakistan. Vital in |