LETTER OF TRANSMITTAL THE LIBRARY OF CONGRESS, Hon. THOMAS E. MORGAN, Washington, D.C., March 18, 1975. Chairman, Committee on International Relations, Washington, D.C. DEAR MR. CHAIRMAN: The following report, "Congress and Foreign Policy: 1974," has been prepared by the Foreign Affairs Division of the Congressional Research Service in response to your request for a summary of congressional activities relating to foreign policy during the past calendar year. The study describes congressional activities in 16 functional and geographic areas, and highlights significant events. Marjorie Niehaus, Analyst in International Relations, coordinated the research. Sincerely, (V) LESTER S. JAYSON, Director. INTRODUCTION During 1974 Congress continued to reassert its role in the conduct of foreign policy. Among the ways in which congressional action altered the direction of foreign policy were the limitation of aid to Indochina, the cutoff of aid to Turkey, the regulation of trade with and financing for nonmarket economy countries, and the limitation of the commitment of U.S. military power. Vietnam assistance was cut by Congress in the Defense appropriations act which provided $700 million in military aid to South Vietnam-$300 million less than the authorization. This act also cut the authorized number of U.S. military and civilian employees in South Vietnam by 10 percent. The Foreign Assistance Act of 1974 restricted economic assistance to South Vietnam to $449.9 million and set a ceiling of $377 million in total foreign assistance for Cambodia and $70 million for Laos. Congress showed concern for the human rights of individuals in foreign countries and for the special needs of those in the less developed countries. Section 46 of the Foreign Assistance Act required the termination or substantial reduction of security assistance to any government that grossly violates the rights of its people, and section 49 stated that a special effort should be made to provide more assistance to the least developed countries that are in Africa. In light of Turkish use of U.S.-supplied arms and materiel during its July invasion of Cyprus, the Congress passed legislation requiring a halt to military aid to Turkey on the grounds that that country was in violation of the Foreign Assistance Act of 1961 and the Foreign Military Sales Act. The President was permitted to delay the cutoff until February 5, 1975. Congressional action on economic legislation had substantial impact on U.S. foreign policy. In the Trade Act of 1974 trade benefits for the Soviet Union, as a result of congressional insistence, were made conditional upon more liberal Soviet emigration policies. For the extension of nondiscriminatory treatment to the Communist countries Congress also required bilateral trade agreements to be approved by a concurrent resolution of Congress. Congressional demand for closer oversight of the Export-Import Bank's operations resulted in a $300 million ceiling on its total loans and guaranties to finance exports to the Soviet Union. The Export-Import Bank amendments stipulated that any loan to a Communist country of $50 million or more required a separate determination by the President that the loan was in the national interest. One of the most vital areas in which Congress attempted to strengthen its role in shaping foreign policy was in the building and commitment of U.S. military power. Although it passed the largest defense appropriations act in the nation's history ($82.6 billion), Congress had cut the request by $4.5 billion. Congress also terminated the Formosa Resolution which had granted the President the authority 49-667-75- -2 |