RECORD VOTE

Press, Volume XCV, Issue 28178, 17 January 1957, Page 9

RECORD VOTE

Foreign Aid Spending

(N.Z. Press- Association—Copyright) (Rec. 10 p.m.) WASHINGTON, Jan. 16.

President Eisenhower proposed in bis 1957-58 Budget message today to increase foreign, military and econoinic aid programmes by 600 m dollars, to a total of 4400 m dollars, in the new fiscal year.

The President estimated that Government spending in 1957-58 would jump to 71,800 m dollars—the largest peace-time Budget in United States history. But he said that he expected a Government income of 73,600 m dollars, and he predicted a surplus of 1800 m dollars for the fiscal year ending June 30. 1958. as compared with the currently estimated surplus of 1700 m dollars for fiscal 1956-57.

He proposed to Congress that the surplus should be used to reduce the national debt and not to reduce taxes.

“By far the largest part oi the Budget—63 per cent.—will be devoted to maintaining and improving our own defences and to strengthening the defences and economies of other nations m the interest of collective security and world peace,” President Eisenhower said. Economic Aid Economic aid programmes were estimated at 1800 m dollars The overall aid total of 440Uin dollars was compared with 3804 m dollars actually appropriated by Congress for similar programmes in the current fiscal year, and included a 200 m dollars programme for the Middle East in 1957-58.

A two-year, 400 m dollars economic assistance programme for the Middle East was proposed by the President earlier this month as one of his proposals to oppose Communist aggression and subversion in the area.

The President dealt briefly with the effects of the Suez Canal crisis on Britain’s economic position.

He said that the international monetary fund would be the major source of dollars to strengthen Britain's gold and dollar reserves, but he asked Congress to re-write the British and United States loan agreement to permit the administration to waive the payment of 81m dollars in interest due from Britain last month. Atomic Energy The President estimated that spending on development' and control of atomic energy would be 2300 m dollars, an increase ol 400 m dollars over the estimate for the current fiscal year. Social services and other domestic programmes accounted for 24 per cent., and the national debl and other fixed charges accounted for >he balance.

Mr Eisenhower renewed his appeal to labour and industry to help check inflation by using seltrestraint in seeking wage and price increases. If they did not. there was not much the Government could do in a free society at a time like this to prevent inflation, he said.

He had deferred certain government programmes because of their inflationary threat, he said.

3000-year-old Pendant.—Archaeologists who explored a series of copper workshops dating back to the 13th century 8.C., which have been unearthed in the ancient city of Alasia, near Famagusta. Cyprus have found a beautiful gold pendant more than 3000 years old.— London.

Fight For Fullmer.— The world middle-weight boxing champion, Gene Fullmer, will meet Wilf Greaves of Pittsburgh in a nontitle 10-round fight in Salt Lake City on January 28.—Salt Lake City, January 14.