175. Editorial Note
During 1963, Congress strongly resisted the Kennedy administration’s proposals for military and economic assistance. For background of these proposals, see Document 164. At his news conference on August 20, President Kennedy remarked that the House of Representatives had already cut his request for $4.5 billion by $850 million, but he was somewhat heartened that the bill appeared to have bipartisan support for a $4.1 billion authorization. For the transcript, see Public Papers of the Presidents of the United States: John F. Kennedy, 1963, pages 629-630. Subsequently, however, the House of Representatives approved only $2.8 billion in foreign assistance, or $1.7 billion below President Kennedy’s earlier request, and the Senate version called for about $3.3 billion. After Congress authorized only $3.0 billion in new funding, President Johnson issued a statement on December 14 urging Congress to increase the funding levels. For text of the President’s statement, see Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1963-64, pages 55-56.
Documentation on the Agency for International Development’s efforts to defend and promote the foreign assistance program in Congress is in Washington National Records Center, RG 286, AID Administrator Files: FRC 67 A 1530, Foreign Assistance Legislation, FY 1964.
On December 16, President Lyndon B. Johnson signed the Foreign Assistance Act of 1963 (P.L. 88-205; 77 Stat. 379). He claimed in a signing statement that the $3 billion authorized in the legislation “reflects a dangerous reduction in funds and a consequent dangerous reduction in our security.” He also indicated that he had asked AID Administrator Bell “to put our foreign operations on a sounder basis—to insist on maximum effort by aid recipients—and to intensify our efforts to eliminate excess or ineffective personnel. We will resist reorganization for reorganization’s sake—but we do intend to present to the Congress next year a more effective, efficient aid program.” For text of the statement, see Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1963-64, pages 58-59.
On the same day, President Johnson called for the creation of an Executive branch committee under the chairmanship of Acting Secretary of State Ball to examine the foreign assistance program. Formally known as the President’s Committee To Examine the Foreign Assistance Program, this group was asked to develop recommendations for the President by January 15, 1964. Documentation on the work of this committee is in Department of State, Central File AID (US) 1, and ibid., S/S Briefing Books: Lot 66 D 219, Executive Branch Committee on Foreign Aid.
With the appointment of this interagency committee, final reports on military and economic aid planning, which had been mandated in [Page 392] NSC Record of Action No. 2447 (Document 130) and NSAM No. 159 (Document 141) and were still in preparation, were taken over by the interagency committee. This action was requested in a memorandum from Benjamin H. Read to McGeorge Bundy, January 7, 1964. Notations on the memorandum confirmed White House approval of the request. (Washington National Records Center, RG 286, AID Administrator Files: FRC 67 A 1530, National Security Council)