FOREIGN RELATIONS, 19 5 0, VOLUME I


private organizations, both profit and non-profit, to the maximum
extent possible.6
  2. The House Foreign Affairs Committee took no action by the
end of the first session of Congress. In the intervening 'period repre-
sentatives of the Government met with business and philanthropic
groups and members of Congress. As a result of these discussions a
new bill was developed which had wide acceptance and on January 188,
1950 Judge Kee and Representative Herter introduced identical bills
in Congress.7 Further hearings were held by the House Foreign Af-
fairs Committee on this "compromise" bill and after some additional
modifications the bill was favorably recommended as a part of the
Foreign Economic Assistance Act of 1950.8 The Bill was passed by
the House with two or three minor amendments and one amendment
reducing the amount authorized for technical assistance programs in
the first year from $45,000,000 to $25,000,000.
   3. The Bill as finally passed by the House dealt with both technical
 cooperation and with the problem of fostering capital flow. The princi-
 pal provisions contained in the Bill are as follows: 1. A finding on the
 part of the Congress (a) that the United States and other nations
 have a common interest in the freedom and economic and social prog-
 ress of all people, (b) that the efforts of people living in economically
 underdeveloped areas of the world to develop their resources can be
 furthered through a cooperative endeavor of all nations to exchange
 technical knowledge and skills and (c) that technical assistance and
 capital investment can make maximum contribution only where there
 is mutual confidence and respect for the legitimate interests both of the
 investor and peoples of the 'underdeveloped countries. 2. A declara-
 tion of policy on the part of the United States to aid the efforts of the
 people of economically underdeveloped areas to develop their resources
 through technical assistance and fostering the flow of capital invest-
 ment "to countries which provide conditions under which such
 technical assistance and capital can effectively and constructively con-
 tribute to raising standards of living, creating new sources of wealth,

    Documentation on this 1949 phase is found in the 'Department of State
central
 indexed files, series 800.50 TA.
    For the House Hearings both in 1949 and 1950, see 81st Congress, 2d Session,
 House of Representatives, Act for international development ("Point
IV" pro-
 gram), Hearings, 81st Congress, first and second sessions, on H.R., 5615,
H.R.
 6026, H.R. 6834, H.R. 6835 and H.R. 7436, before the -Committee on Foreign
 Affairs.
   8 In theHouse phase it was decided to include the Point IV legislation
in an
 omnibus foreign aid bill. There was vigorous discussion both within the
Depart-
 ment 'of State 'and between the Department and the Eeonomic Cooperation
Admin-
 istration as to the merits or otherwise of such a :consolidated economic
aid bill.
 Documentation is found in file series 800.00-TA (1950) and in Lot file 54-D291,
 Drawer 48. For the House Report, see 81st Cong., 2d sess., Report and Supple-
 mentary Report to accompany H.R. 7797, House Report No. 1802, Part 4.


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