Wrong View Possible On U.S. Aid

Press, Volume CII, Issue 30092, 28 March 1963, Page 15

Wrong View Possible On U.S. Aid

(Nif A.-Reuter—Copyright) NEW YORK. March 27. The “New York Times” today warned that narrow interpretations of the Clay report on United States foreign aid could lead to a new form of “dollar diplomacy” which would impede the progress of many nations.

The executive director of the special Presidential com-' rnittee has also disputed interpretations which said its report on foreign aid had called for an immediate cut of about 500 m dollars Genera! Lucius Clay, former Un ted States commander in Berlin, led the group which made the report

The leading article, premised for the West Coast and Pans editions but not published in New York because of a - wspaper strike, said the report contained manv constructive for improving and strengthenms the scope of American aid 'But its prevailing 'one and emphasis, its insistence that we have attempted to do too much for too many will encourage xH those who seek to cut the orogramme. the article said Administration

•It is the administration not the principle of aid. t-na* requires a new look. the newspaper said ‘ Mistakes have been made, but as ’he -enort pmn’s du' much of ’he wasre has been concentrated in military sss-stance to such countries

as Portugal and Spain “The Clay report usefully suggests definitive economic yardsticks for granting aid whether or not the aid commitment is based on economic grounds “But narrow interpretation of its recommendations could mpede development of many nations by imposing a new form of dollar diplomacy •■While we of course, want to encourage private enterprise where it is appropriate not every under-developed country meriting aid could or should adopt the kind of -ar>ital <r '” svsten- suitable ,r our advanced society.” the ’New York Times” said Misinterpretation The executive director of rhe Presidential committee Mr W Dentzer said a reference in the committee’s report to a 500-million dollar -eduction apparently had led most news organisations tb m-■’interpret the report The committee’s report had said: "The Agency for Inter■tatior.al Development informs us that if our criteria were now in effect, present programmes would be reduced by approximately 500-

million dollars, and there would be additional reductions m the following years Mr Dentzer said the committee had not considered certain new programmes which have been proposed and which could add hundreds if millions of dollars to the aid programme He declined to estimate what total his commi"ee believed adequate President Kennedy has sked for 490 C-million dollars for foreign military and economic assistance tn his 1963-ft Budget No Cuts Specified The committee did not propose any immediate specific cuts It urged graduated, future reductions, tightening of criteria for assistance and reassessment of administration procedures and personnel Associated Press said

These steps, it contended, were necessary to strengthen th: programme which the committee felt was essential to security of the United States and the non-Com miinist world

The only Clay committee member to dissent was the union leader. George Meany He said the funds should be •substantially increased ” He complained the report might be “disastrously used” by critics of foreign aid Without reference to proposed reductions. President Kennedy has said in a statement that the report was “very heartening” because of the committee’s “expression of support for properly administered mutual defence and development programmes.”