U.S. finance difficulties

Press, Volume CXII, Issue 32848, 23 February 1972, Page 17

U.S. finance difficulties

(By MICHAEL KRAFT, A.A.P.-Reuter correspondent)

WASHINGTON, Feb. 22.

Money is due to run out today in two controversial areas of American foreign policy: temporary finance for overseas aid, and the two radio stations broadcasting to Eastern Europe.

Sharp differences in Congress about a SUS3OOOm aid programme, and about the two radio stations, Radio Free Europe and Radio Liberty, have prevented agreement on future funds.

The aid programme was delayed by the Senate’s surprise rejection of a Nixon Administration bill last October, since when it has been limping along under a temporary measure which expires at midnight tonight Earlier this month, the Senate did pass an aid bill, but it still has to work out a final agreement with the House of Representatives over differences in the legislation passed by each Chamber. A joint Senate-House conference committee is due to hold a closed meeting this afternoon to attempt to settle the differences, but Senate and House sources say that there is little chance of a quick reconciliation. As a result, the agency for International Development will go without funds for at least a few days—as it has

twice before since the Senate temporarily derailed the foreign aid programme by its October 29 vote.

Both Houses of Congress have approved slightly more than SUS3OOOm for foreign aid for the fiscal year ending in June—a sharp reduction in the Administration’s request of SUS4343m. But the Senate, which generally dislikes direct military aid, cut SUS2OOm from the House bill’s military assistance programme. However, it reinstated the sloom that the House cut from the United Nations Development Fund, partly in a reaction to the expulsion of Taiwan from the world body. The House is expected to approve today SUSI96Om in United States contributions to the Inter-American and Asian Development Banks and International Development Association, a World Bank affiliate.

The Senate may complete Congressional action on the measures, which contain provisions for blocking loans to countries which expropriate American - owned property without adequate compensation, or refuse to help to end illegal drug trafficking. One point of dispute is the Peace Corps: the Senate is trying to restore the full SUS77m approved for it in the authorisation bill that sets the ceiling on spending. The House cut SUS9m from it; and the Peace Corps thereupon gave a warning that it might have to withdraw vol-

unteers from as many as 15 countries. While the Senate-House

committee is meeting on the Foreign Aid Appropriations Bill, no further sessions have been arranged yet by a separate committee dealing with money for Radio Free Europe and Radio Liberty. The committee met once last month, but failed to reach a compromise.

Until last year, the two stations were supported by the Central Intelligence Agency. The Senate Bill would provide SUS36m for them for the rest of the fiscal year, under State Department supervision, while the House measure would continue the radio operations for two years under a nine-man supervisory panel. Senate leaders appealed yesterday to Senator William Fulbright, the chairman of the Foreign Relations Committee and head of the Senate members of the conference committee, to arrange another meeting. Senator Fulbright said last week that he felt the two radio stations were relics of the past.