SENATORS REACT

Press, Volume CII, Issue 30291, 18 November 1963, Page 15

SENATORS REACT

Aid Halt Advocated

(N.Z. Press Assn.— Copyright) WASHINGTON, Nov. 16 United States Congressional leaders are calling for an immediate suspension of American aid in retaliation for Argentina’s cancellation of agreements with United States oil companies, according to the Associated Press. The demands for swift retaliation came although State Department sources said details of the Argentine action still were lacking. Unanswered as yet, sources said, was the key question: Whait compensation would be made to the American companies involved in the complicated decrees issued on Friday. The Senate Democratic leader, Senator Mike Mansfield, and the Republican leader, Senator Everett Dirksen, in separate interview’s. said that action should be taken quickly under existing law to suspend assistance. In Argentina’s case this has been about 100 million dollars a year in loans and grants. Senator Mansfield said aid should be suspended "pending a just settlement.” If there was no reasonable compensation made to the companies, he said, assistance should be terminated. Senator Dirkser said Argentina’s action would probably result in “pinching off our aid.” He said the United States recognised the right of expropriation but must insist on full compensation for the properties taken.