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SUPPLEMENTAL FOREIGN ASSISTANCE, FISCAL

YEAR 1966—VIETNAM

FRIDAY, JANUARY 28, 1966

UNITED STATES SENATE,

COMMITTEE ON FOREIGN RELATIONS,

Washington, D.C.

The committee met, pursuant to notice, at 9:05 a.m., in room 4221, New Senate Office Building, Senator J. W. Fulbright (chairman) presiding.

Present: Senators Fulbright, Morse, Gore, Church, Symington, Clark, Pell, McCarthy, Hickenlooper, Aiken, Williams, Mundt, and Case.

The CHAIRMAN. The committee will come to order.

OPENING STATEMENT

The committee is meeting this morning to consider S. 2793, which would authorize an additional $415 million in foreign economic aid for the current fiscal year. Of the $315 million requested for supporting assistance, $275 million is for Vietnam; and much of the $100 million requested for the President's contingency fund will undoubtedly be used in that country.

(S. 2793 referred to follows:)

[S. 2793, 89th Cong., 2d sess.]

A BILL To amend further the Foreign Assistance Act of 1961, as amended, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 402 of the Foreign Assistance Act of 1961, as amended, which relates to supporting assistance, is amended as follows: (a) Strike out "$369,200,000" and substitute "$684,200,000".

(b) In the first sentence, after "President" insert ", without regard to section 649,".

SEC. 2. Section 451 (a) of the Foreign Assistance Act of 1961, as amended, which relates to the contingency fund, is amended by striking out "$50,000,000" and substituting "$150,000,000".

SEC. 3. Funds made available pursuant to section 1 of this Act shall be available for transfer for expenses authorized by section 637 (a) of the Foreign Assistance Act of 1961, as amended, and incurred in connection with programs in the Republic of Vietnam.

The CHAIRMAN. A related question, not formally before the committee, is the manner in which military assistance to Vietnam will be authorized in the future. The Secretary of Defense has proposed that the financing of South Vietnamese and Korean forces in Vietnam be transferred from the military assistance program to direct funding from regular military appropriations.

These requests for additional aid cannot be considered in a vacuum, but must be related to the overall political and military situation in Vietnam.

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I am sure that this hearing will be helpful to the committee and to the public in gaining a better understanding of fundamental questions concerning our involvement in the war.

We are pleased to have as a witness this morning the Secretary of State, who is accompanied by the Administrator of AID.

TIME OF MEETING

Mr. Secretary, I want to apologize for the procedure which has required you to come so early in the morning. As you know, it has grown out of the difficulty on the floor of the Senate. I had to change our meeting time last night at a very late hour, having received word that there might be objection on the floor to our meeting while the Senate is in session.

That, however, is still not definite. You have had very long experience in these affairs, I know. We are very pleased to have you this morning.

Would you care to open up with a statement, a short statement? STATEMENT OF HON. DEAN RUSK, SECRETARY OF STATE; ACCOMPANIED BY HON. DAVID E. BELL, ADMINISTRATOR, AGENCY FOR INTERNATIONAL DEVELOPMENT, AND HON. RUTHERFORD M. POATS, ASSISTANT ADMINISTRATOR, FAR EAST, AGENCY FOR INTERNATIONAL DEVELOPMENT

Secretary RUSK. Thk you very much, Mr. Chairman, and members of the committee; I am pleased to be here this morning, and I understand very fully the circumstances with regard to our schedule. I am especially glad to have Mr. David Bell, Administrator of AID, with me because, among some other things, he has spent some time in southeast Asia; in South Vietnam and in Laos and in Thailand, three countries that make up a very important part of this proposed supplement.

I am pleased to appear before the committee to support the President's request to authorize appropriation of supplemental funds. A major portion of this request, $275 million in supporting assistance funds, arises from the continuing and bitter struggle in Vietnam.

In March 1947 in connection with our then assistance to Greece, which was under guerrilla attack, President Truman stated:

I believe that it must be the policy of the United States to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures.

That is the policy we are applying in Vietnam in connection with specific commitments which we have taken in regard to that country. The heart of the problem in South Vietnam is the effort of North Vietnam to impose its will by force. For that purpose, Hanoi has infiltrated into South Vietnam large quantities of arms and tens of thousands of trained and armed men, including units of the North Vietnamese Regular Army. It is that external aggression, which the north has repeatedly escalated, that is responsible for the presence of U.S. combat forces.

While assisting the South Vietnamese to repel this aggression, the United States has made persistent efforts to find a peaceful solu

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