try, the development of processing plants, the developing of the marketing system and that sort of thing that has to do with the general economy. That in a very, very broad way is what we are trying to do in those areas. Chairman CHIPERFIELD. Are there any questions? Mr. JAVITS. What is this 32 to 1 figure? Is that the figure of supplies to actual technical assistance? Mr. ANDREWS. And the program for next year runs about 1 to 1. The 1954 program will run about 1 to 1. Mrs. BOLTON. 1 to 1 what? Mr. ANDREWS. $1 spent for supplies to back up the $1 spent for technicians. Mr. Wood. That does not include the special economic assistance which Mr. Gardner has discussed, the $140 million for the area. It is just related to the regular technical progress and development. Mr. VORYS. That is, the $140 million would make it just about 10 to 1; would it not? Mr. ANDREWS. I am not speaking to that point at all. Mr. VORYS. Now, Mr. Chairman, I suggest this: We are undergoing what may be a sort of transition period during the hearings on this bill. By Reorganization Plan No. 7, it is proposed that, from now on, the technical assistance and the economic aid will all be administered under the new Foreign Operations Office, so that, insofar as this committee is concerned, it does not do us any good to refer to the past, since it is all before the committee and all comes out of the same taxpayers' pockets, to say, "Well it is economic aid in the country but it is running two divisions." Now, for the future it is all going to be put in together. There is not much point to our hearing about technical assistance, what the supplies are in the technical-assistance program, if $140 million of supplies is to go into the same area, or country, in the same program. These two things are now to be administered, together. Mr. MORANO. Under the new reorganization proposal, there will be constituted a Foreign Operations Administration? Mr. VORYS. Foreign Operations will include massive economic aid and technical assistance. Both of the things that are being presented as two programs, here, are all to be in the same administration next time. They have always been in the same bill before us. Mr. MORANO. When you refer to economic assistance, do you mean defense-support payments? Mr. VORYS. Defense support and developmental and progress money, and all the different kinds of nonmilitary spending. Mr. MORANO. What is your idea that we should lump it all together in these hearings, now? Mr. VORYS. They have always been before us in the same bill. They are to be put together administratively. It is of no help to the committee any more to say "Well, these are two different things." At least it seems to me that way. Mr. JAVITS. I would like to finish my questions, if I may, Mr. Chairman. You said something about $43 million for this area being 31⁄2 to 1, and then you say the 1954 program is 1 to 1. Mr. CHATHAM. We had that complete earlier. Mr. JAVITS. I withdraw the question. Mr. CHATHAM. We have these experts here and, if we are going to argue items of highest policy and propaganda, and so forth, I cannot waste my time. I want to hear what these men have to say. Unless we are going to listen to that, I will just have to be a reader and not a listener. I want to make that explanation to the chairman. Chairman CHIPERFIELD. Mr. Chatham, I am trying my best to try to proceed as rapidly as possible with this program. Mr. Andrews, I believe has completed his statement. If there are no further questions, we will proceed with whoever Mr. Wood has next. Mr. ANDREWS. I think it would be well for the committee to put this bunch of tables in the record which does give all of the breakdowns of the money in the countries. Chairman CHIPERFIELD. Without objection, that will be done. (The tables referred to are as follows:) TABLE 1.-Technical cooperation and special economic aid-Summary, all TCA 1 Includes $4,595,800 proposed as a supplemental estimate for fiscal year 1953. Of which $30 million for Palestine refugees is requested only as an authorization. It is not planned to request an appropriation for this $30 million at the present session of Congress. TABLE 2.-Bilateral technical cooperation programs under the Act for TABLE 3.-Technical cooperation and special economic aid, worldwide-Comparative summary of obligations by major project category 1 Includes $4,596,000 proposed as a supplemental estimate for fiscal year 1953. Contribution to UNRWA for Palestine refugees. Wheat grant to Jordan. Wheat loans to Afghanistan ($1.5 million) and Pakistan ($15 million). TECHNICAL COOPERATION ADMINISTRATION-1954 BUDGET SUBMISSION General introduction A. Technical cooperation___. Bilateral Multilateral, United Nations and Organization of Amer- $130, 984, 500 117, 234, 500 13,750,000 Technical assistance is an essential part of the United States effort for building up the strength of the free world. It is a basic instrument of United States foreign policy. In the Middle East, Southeast Asia, and Latin America nearly a billion people— two-thirds of the free world-are struggling to find new ways of life that will raise them above the poverty, ignorance, and disease of many generations. Their aspirations are rooted in normal instinctive desires-for sufficient food, healthier bodies, and a chance for their children to have better things than they themselves could enjoy. The appeal of communism, especially in underdeveloped areas is the promise of better food and rising living standards for the masses. United States policies must take the initiative from empty Communist promises and slogans by joining with other peoples in tangible cooperative development programs which will visibly bring steady improvement in living conditions and build confidence in free economic institutions. The principal objective of the technical cooperation program is to share with the peoples of underdeveloped areas the knowledge and skills they need to develop their own abilities and resources. This is done by sending United States and other skilled experts into the cooperating countries to train the native peoples, and by bringing selected local leaders and technicians to the United States for advanced training. To be convincing, teaching must be backed up by results. Consequently, limited supplies and equipment are provided to insure persuasive results from each project. United States technicians work side by side with the ordinary people of other countries. They teach by demonstration and example. Their aim is to improve the skills and understandings that local workers use in their daily activities. The fruits of such technical cooperation multiply by geometric progression, starting slowly and gaining momentum as more and more people learn to help themselves and in turn teach others. Once the door to the productive capacities of a people is unlocked, economic and resource development tends to proceed at a constantly accelerating pace. Outside assistance is needed less and less. B. Special economic aid for critical areas. Near East. South Asia_. $264, 400, 000 170, 000, 000 94, 400, 000 In some underdeveloped areas, however, poverty and unrest among large numbers of the people dangerously expose political and economic institutions to the planned aggression of organized communism. In these less stable situations, pressures are great and time is short. Extra effort is required. In most countries, under more favorable circumstances, initial capital for development of natural resources is normally furnished by private investors, local taxation, or other regular sources of national and international credit. But where political and economic instability are great and the needs of the people urgent, these sources may not be enough. The modest economic assistance that goes with technical cooperation may need to be stepped up and supplemented by special United States financial aid. Technical cooperation and special economic aid for critical areas are in general closely related, yet distinct, devices for encouraging economic development, free and democratic institutions, and improved international understanding in underdeveloped countries. Where this emergency aid is necessary, it must be closely integrated with technical cooperation. Special economic aid need not change the essential character of technical assistance as a program of self-help and selfdevelopment. Instead it should serve to increase the effectiveness of technical assistance by providing additional opportunities for the people to make use of their new and growing skills. Such special economic aid is recommended in certain strategic regions of the Near East and South Asia, because of conditions that are immediate, compelling, and urgent. Although technical cooperation and special economic aid are integrally interrelated, each has its own character and each is a device to meet a particular need. Consequently, they are presented as separate components of the fiscal year 1954 budget submission, separately justified and based on separate legislative authority. C. General objectives of technical cooperation.-Technical cooperation has the long-range objective of helping the people of underdeveloped regions to help themselves, by sharing with them modern skills, methods and scientific discoveries that will enable them to develop their own resources. The objective is not for the United States to develop economic resources for the host government, but to teach the people how to do the job, and how to get started. Fundamental needs get first attention-increased food production, better health and sanitation, improved elementary and vocational education. More complex problems are undertaken only as the people accustom themselves to changed ways and increased personal responsibilities, and can make use of new skills and new tools. Point 4 technicians emphasize self-help methods in getting their jobs done. Projects must be truly cooperative cooperatively planned, administered, and financed-so that the people and their government will feel a sense of responsibility and participation. Therefore, TCA fits its services into the overall economic and social programs of the host government. United States knowledge and experience support programs which the people of the country later will be able to finance and operate by themselves. The host government must always request assistance in projects undertaken. TCA specialists do not go where they are not invited. And the participating country is required to contribute its "fair share" of the cost of the joint program. TCA encourages the maximum local contribution, though this may take the form of labor, services and materials as well as funds. Our experience shows a steady increase in money, effort and popular support from the host countries as individual projects get under way-until United States support can eventually be withdrawn entirely and the host country can take over the entire operation. TCA uses various techniques for achieving joint planning and execution. In some countries cooperative service agencies, jointly staffed and administered by United States and local technicians, are set up as bureaus within the ministries of the host government. These agencies are financed by contributions from the governments to a common pool. Withdrawals can be made only upon agreement of the principal United States technician and the minister concerned. In other countries a joint fund may be established for the whole cooperative program or for segments of it, even if no joint agency is set up. Or joint planning may be accomplished by committees including both host government officials and officers of the TCA mission. In day-to-day operations, our technicians are partners with their local opposites at all levels. The Director of the TCA mission deals with the host government at its highest levels of authority. His senior staff works closely with the heads of ministries. Other technical staff members, as advisers to local officials, work right in the villages in community development projects, visit farms with local extension workers, help devise new implements or demonstrate their uses, or demonstrate new and improved methods and practices. In addition to the TCA program the United States has contributed approximately 60 percent of the cost of multilateral technical cooperation carried on by the United Nations and its specialized agencies, and the Organization of American States. TCA personnel coordinate their activities with U. N. agencies (FAO, WHO, etc.) to avoid duplication and to increase the effectiveness of both. Private agencies also have their fieldworkers in many underdeveloped countries, and TCA cooperation with them has been increasingly effective. Major emphases.-Technical cooperation programs vary from country to country according to needs, but most programs start with agriculture, health, and education. The underdeveloped countries are predominantly agricultural, but their people are always hungry. Despite the disproportionately large number of farmers, the countries are deficient in food production. Food must be imported, using funds which could go into capital goods (essential to development) which also must be imported. Technical cooperation gives high priority to improvement of farm practices, better seed, more fertilizer, and improved tools. Disease contributes to low productivity. Disease saps energy and weakens whole populations even more than it kills and cripples. Joint public health and sanitation projects aim at control or eradication of such diseases as malaria, dysentery, tuberculosis, yaws, and schistosomiasis. |