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1st Session

CENTRAL AMERICA AND THE CARIBBEAN

AREA

(CUBA, HAITI, DOMINICAN REPUBLIC, PANAMA, COSTA RICA, NICARAGUA, HONDURAS, EL SALVADOR, GUATEMALA, AND MEXICO)

REPORT

ON

UNITED STATES FOREIGN ASSISTANCE
PROGRAMS

PREPARED AT THE REQUEST OF THE

SPECIAL COMMITTEE TO STUDY THE

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FORMER MUTUAL SECURITY AGENCY CHIEF IN PORTUGAL (Pursuant to S. Res. 285, 84th Cong., and S. Res. 35, 85th Cong.) Survey No. 9

88984

MARCH 1957

Printed for the use of the Special Committee To Study the
Foreign Aid Program

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1957

14

SPECIAL COMMITTEE TO STUDY THE FOREIGN AID PROGRAM (Created pursuant to S. Res. 285, 84th Cong., 2d Sess., and S. Res. 35, 85th Cong., 1st Sess.)

MEMBERS FROM THE COMMITTEE ON FOREIGN RELATIONS

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EXECUTIVE COMMITTEE OF THE SPECIAL COMMITTEE TO STUDY THE FOREIGN

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PREFACE

By Theodore Francis Green, Chairman, Special Committee to Study the Foreign Aid Program

The Special Committee to Study the Foreign Aid Program was created under the authority of Senate Resolution 285, agreed to July 11, 1956. The committee is composed of all members of the Committee on Foreign Relations and the chairman and ranking minority member of the Senate Committee on Appropriations and the Senate Committee on Armed Services.

Pursuant to the terms of the resolution, the special committee was instructed to make

exhaustive studies of the extent to which foreign assistance
by the United States Government serves, can be made to
serve, or does not serve, the national interest, to the end that
such studies and recommendations based thereon may be
available to the Senate in considering foreign aid policies for
the future.

In the conduct of its study the committee was also instructed to make

full use *** of the experience, knowledge, and advice of private organizations, schools, institutions, and individuals. It was authorized to enter contracts for this purpose, and not to exceed $300,000 was made available to meet the expenses of the committee. Since the special committee was instructed to transmit the results of its study to the Senate not later than January 31, 1957,1 and in view of the shortness of time available for its work, a small executive committee was constituted to supervise the detailed research work for the full committee. The executive committee upon instructions from the full committee outlined a number of research projects to be undertaken by private institutions in the United States.

In order to supplement those research projects, the executive committee made arrangements with ten individuals to conduct "on-thespot" surveys of foreign aid programs in different regions of the world. The individuals concerned were asked to submit a report dealing with--

the fundamental aims of American foreign policy in the area
visited, the extent to which those aims are valid in terms of
the national interest, the effectiveness or ineffectiveness of
the foreign aid programs in advancing those aims, and the
ways in which the interests of the United States might be
promoted by changes in the programs now in progress or pro-
posed for the future.

1 By Senate Resolution 35, adopted by the Senate on January 30, 1957, the time for reporting by the special committee was extended to June 30, 1957, and $75,000 of the $82,000 left over from the original fund was made available for the work of the committee.

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Listed below are the regions of the world which were covered by the "on-the-spot" surveys and the individuals who undertook the assignments:

1. Former Ambassador Norman Armour: Countries-Greece, Turkey, and Iran.

2. Mr. Hamilton Fish Armstrong, editor of Foreign Affairs: Countries-Lebanon, Iraq, and Jordan.

3. Former Ambassador David K. E. Bruce: Countries-Peru, Chile, Argentina, Uruguay, and Brazil.

4. Former Ambassador Jefferson Caffery: Countries-Portugal,
Spain, France, Italy, and England.

5. Dr. John A. Hannah, president, Michigan State University:
Countries-Korea, Japan, Formosa, and the Philippines.
6. Mr. William Randolph Hearst, Jr., president, Hearst Consoli-
dated Publications, Inc., and editor in chief of Hearst News-
papers: Countries-Norway, Denmark, and Western Ger-

many.

7. Mr. Clement Johnston, chairman of the board of the United
States Chamber of Commerce: Countries-Burma, Thai-
land, Cambodia, Indonesia, Laos, and Vietnam.
8. Dr. Lewis Webster Jones, president, Rutgers University:
Countries-Pakistan, India, Afghanistan, and Ceylon.
9. Mr. James Minotto, former MSA Chief in Portugal: Coun-
tries-Cuba, Haiti, Dominican Republic, Venezuela, Pan-
ama, Costa Rica, Nicaragua, Honduras, El Salvador,
Guatemala, and Mexico.

10. Mr. Allan B. Kline, former president, American Farm Bureau Federation: Country-Yugoslavia.

This report, the ninth of the on-the-spot survey reports to be submitted to the special committee, was prepared by Mr. James Minotto, former MSA Chief in Portugal, who studied the foreign aid programs in Cuba, Haiti, the Dominican Republic, Panama, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, and Mexico.

I anticipate that the special committee may wish to make this report the subject of a public hearing. In that way it will be possible for committee members to test the soundness of the conclusions and recommendations of the report.

This is a report to the Special Committee to Study the Foreign Aid Program, and does not necessarily reflect the views of the committee or of any of its members.

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