HUGE U.S. AID BILL SOUGHT FOR ASIA

Press, Volume XCI, Issue 27640, 22 April 1955, Page 13

HUGE U.S. AID BILL SOUGHT FOR ASIA

(Rec. 8 p.m.) WASHINGTON, April 20. The timing of President Eisenhower’s foreign aid message, sent to Congress today with an urgent plea for support of the Asian allies, was keyed to Communist antiAmerican attacks at the African-Asian conference now in progress at Bandung.

Mr Eisenhower said in a special statement before the Bandung conference opened that the sole concern of the United States—in spite of Communist charges of “subversion”—was to "intensify its co-operation with the free Asians in their efforts to achieve economic development and a thing standard of living.” In outlining United States determination to carry forward this objective, the President today asked Congress to approve a world-wide foreign military aid programme of 3 530,000,000 dollars (about £1,271.000,000) for 1955-56, with about two-thirds of the over-all total, and most of the economic assistance funds involved—earmarked for the “free arc of Asia.”

This arc extends from Afghanistan and Pakistan to Korea and Japan. Mr Eisenhower today did not disclose exactly -how he proposed to allocate the requested appropriations on a regional basis. But it was expected that at least 915,000.000 dollars in economic aid and 1,225,500,000 dollars in direct and indirect military aid, would be devoted to strengthening Asia’s resources to fight poverty and subversion.

The balance of the funds would be shared between Western Europe, Latin America, and the'Middle East. Throughout his message, Mr Eisenhower expressed his satisfaction with the success of Western Europe’s economic recovery and his deep concern for the “critical” military and economic situation in Asia, where, he said, the immediate threat to world security ’and stability was now centred. “President’s Fund” In addition to normal economic aid funds for Asia, Mr Eisenhower suggested that 200,000,000 dollars be set aside for the establishment of a “President’s fund for Asian economic development” to develop the abundant resources and the fertile lands in the region. Apart from suggesting the creation of this special fund, Mr Eisenhower did not give a regional breakdown for the 3,530,000,000 dollars requested for economic and military aid to the overseas allies.

His specific requests for the 1956 fiscal year included: 712,500,000 dollars for economic aid, including 172,000,000 dollars for a continuation of technical programmes, 175,500,000 dollars for special programmes, 165,000,000 dollars for development assistance. 200,000,000 dollars for the special President’s Fund, 100,000,000 dollars for a world-wide contingency fund, 1,000,300,000 dollars for defence support to serve economic and defence "purposes by supplementting the efforts of the allies, particularly in Asia, to carry out their defensive measures beyond their current financial capacity, 1.717,200,000 dollars for military assistance and direct forces support. President Eisenhower said the Asian programme would encourage private overseas investment and private enterprise abroad, foster and increase cooperative effort and emphasise loans rather than grants wherever possible. He added: “I consider the programme an indispensable part of a realistic and enlightened national policy. ‘"Hie fixed, unwavering objective of that policy is a just, prosperous, enduring peace. “The immediate threats to world security and stability are now centred in Asia. Within the vast arc of free Asia, which extends from the Republic of Korea and Japan to the Middle East, 770.000,000 people, one-third of the world’s population, reside. Most of them are citizens of newly independent States. Some have been engaged in recent war against the Com-

munists. All are threatened. Capital is very scarce. “Now is the time for accelerated development of the nations along the arc. The major responsibility must necessarily lie with the countries themselves.

“At best foreign capital, as well as foreign aid, can only launch or stimulate the process of creating dynamic economies. In this light, the United States has the capacity, the desire and the concern to take the lead in friendly help for free Asia.” The President said Britain, France, and the other original Marshall Plan countries would receive no economic aid in 1955. United States military assistance to Europe would take the form of military supplies and supplementary funds to ease the burden of rearmament.

President Eisenhower made it clear that the economic development programme for Asia emphasised loans rather than direct grants.