Calendar of Events|
Nancy Dykes will be Our Delegate
Two Delegates from Hawaii?
Continuing Responsibility - Loyalty Security
Report of the President (Jeannine McCullagh)
Report on Units (Nan Lowers)
Report on Finance or We Went Visiting (Lila Grossman)
Report on State Study Item (Iris Timmerman)
Report on Local Study Item (Anne Miller)
Report on National Study Item (Idell Brownlie & Nan Lowers)
Funds for I.D.A.
Funds for I.D.A.
As you know, after receipt of a "Time for Action" from National the Honolulu League wrote to all three of our representatives in Congress stating that we were in favor of authorization of funds for the International Development Association. You also know that the bill was passed in the Senate but voted down in the House.
We received replies to our letters from each of the men. Both Mr. Matsunaga and Mr. Gill voted for the bill and for similar reasons. We quote Mr. Matsunaga: "I spoke in support of the bill and regretted its defeat, for our contribution to the International Development Association is truly an investment in the future--not merely in the future of the developing countries of Asia, Latin America, and others who depend on the kind of financing that the IDA provides--but an investment in the future growth of world trade and of international prosperity, in which the U.S. could share materially.
Senator Fong also voted for passage of the bill in the Senate. His letter lists some of the questions that arose in regard to it and we quote:
"The U, S, has subscribed (given) $320 Million, 43% of all funds IDA has received. Under S. 2214, the U.S. would contribute another $312 Million, which is 41% of the proposed total increase of $750 Million for IDA. Meanwhile, our voting strength in IDA would remain at about 26%, despite the 40%-plus of funds we contribute.
"During Senate debate on S. 2214, it became clear that many important questions relative to IDA had not been thoroughly examined by the Foreign Relations Committee, which held only two days of hearings on the bill...
"In view of the large U.S. budget deficit and our balance-of-payments deficit, the question arose as to whether nations that are well-to-do like France and Germany could contribute a larger share than proposed so that the U.S. share could be reduced from 41%.
"It was brought out that, in order to make, the $312 Million contribution to IDA, the U.S. Government would have to borrow the money and pay nearly 4% interest on it. Meanwhile, IDA is making loans repayable in 50 years without charging any interest to countries which in turn are re-lending the money at between 4 to 12% and requiring repayment in periods as low as 7 to 15 years.
"It was further disclosed that safeguards Congress had imposed on U.S. foreign aid programs do not apply to IDA loans. IDA can lend money to countries for purposes which Congress has not authorized, indeed may have forbidden. IDA loans can also be made to countries that expropriate American property without compensation. IDA loans can be made to Communist countries.
"These are fundamental policy questions which deserve greater study and attention than the Foreign Relations Committee had given them. In view of all these vital considerations, I was convinced the bill should be returned for further Committee study and improvement. In fact, almost half of the 17 Members of the Foreign Relations Committee also thought the bill ought to go back to the Committee for further examination.
"The recommittal vote was rejected by 37 nays to 31 yeas indicating the majority of the Senate was satisfied with S.2214. Faced with the alternative of either to pass the bill or to defeat it, I voted to pass it, as I favor IDA and had in 1960 supported legislation authorizing the U.S. to participate. …" End of Quote. Our thanks to Senator Fong, and Congressmen Matsunga and Gill for their letters.
|March 1964||Top Home Newsletters||May 1964|