FOREIGN AID RY U.S.

Press, Volume XCV, Issue 28268, 4 May 1957, Page 11

FOREIGN AID RY U.S.

“Need For Long Time To Come ” (Rec. 9 p.m.) HARRIMAN (New York), May 3. Mr Douglas Dillon, Deputy Under-Secretary of State for Economic Affairs, said last night that the United States would have to provide foreign aid “for a long time to come.” In a speech before the American Assembly he said that so long as international communism existed in its present form, challenging the existence of the Free World by direct military threats or economic penetration and subversion, the United States must maintain some form of mutual security programme. It was in the United States’ own interest to help the underdeveloped peoples to resist the Communist drive.

Mr Dillon explained some of the details of the new plan announced by Mr John Foster Dulles, the Secretary of State, last month to place the military portion (approximately threefourths) of the mutual security programme under the Defence Department where it would be added to the cost of the armed forces of the United States. The economic assistance part of the programme would coma under an economic development fund.

The economic development fund, which would be established with some 750,000,000 dollars a year, would differ from the World Bank in that projects would not necessarily have to develop the foreign exchange required for prompt repayment in dollars, he said.

“It is probable that many of the loans from the development fund would be repayable largely in the currency of the borrowing country; for example, a loan to India might be repaid in rupees.”