Senate Curb On Pentagon

Press, Volume CVII, Issue 31450, 17 August 1967, Page 13

Senate Curb On Pentagon

(N.Z.P.A.-Reuter—Copyright)

WASHINGTON, August 16.

The Senate yesterday voted to bar the Pentagon from guaranteeing loans to developing nations for the purchase of United States arms.

Senators voted 50 to 43 against the Pentagon’s controversial role as an arms banker, in spite of considerable pressure from the Administration for its continuation. The powerful Senate Foreign Relations Committee, led by Senator William Fulbright, a critic of the Vietnam war, had recommended this brake on the Pentagon’s powers while demanding a one-third cut in the $596 million that the Administration

has requested for foreign military assistance this year. Amid complicated parliamentary manoeuvring the close Senate decision could still be overturned in a later rote on the whole $3460 million Foreign Aid Bill. As it stands, the decision svould do away with a Pentagon fund that has been used aver the last two years to guarantee covert Exportimport Bank loans to less dereloped countries seeking United States tanks, guns and urcraft. The Senate opposed the fund, in spite of fears raised >y Administration supporters hat Israel might be left in a >ad position to secure arms :or its future defence.