NATIONAL SECURITY :POLICY


existing Point Four legislation in such' la case would have rtobe
justified as applying practically to Latin America alone. It, therefore,
seems desirable to merge the existing Point Four program with those
proposed for the Philippines, the continuation of STEM programs in
South East Asia, the program for India, Pakistan and Ceylon and for
STEM type programs in Iran and other areas of the Middle East.
The programs now being conducted by the ECA in Dependent Over-
seas Territories of the ERP participating countries are of a similar
nature with similar objectives. They, too, should be covered under the
same title.
   The merging of all programs for underdeveloped areas in one title
should in no way restrict a full discussion before Congress of the
problems in each country and region and lany special strategic
importance which they may have to us.
   The proposed programs for the Philippines and for India and
Pakistan ('and perhaps Ceylon) contain a considerable'amount of heavy
capital investment items. It seems doubtful if Congress would accept
programs of this magnitude on a grant basis as a general or continuing
type of aid in support of economic development. The programs in
these particular countries, therefore, should be justified as requiring,
temporarily, additional capital items on a grant basis on the ground
that in these particular countries rapid deterioration with consequent
political repercussions will take place unless food production and
certain other economic activities can be greatly expanded during the
next few years. These countries are not in a position at this time to
borrow the necessary funds and their strategic position makes it vital
for us to go beyond the general type of program which is proposed
for underdeveloped areas. The fact that these are specially justified
would also tend to ease the political repercussions which might occur
in other underdeveloped areas which were not recipients of grant
funds for capital purposes. It may be desirable or necessary to have
the programs for these countries put into a separate section of the
"underdeveloped area title" or alternatively to have some limitation
on the total amount available for underdeveloped areas which could
be used for large capital items. The problem of definition is a serious
one in this regard and further study would need to be given to it.
  Because of the fact that the program for Korea and for Palestine
refugees involve contributions to the United Nations and consequent
special legislative provisions it seems doubtful if Congress would be
willing to include funds for them in a general underdeveloped areas
title. Each of these programs, therefore, should be included in a
separate title.
  The legislation should, authorize appropriations to the President
rather than to any particular agency or agencies of the.Government.


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