674 



technology on critical problems. This requires flexibility, imagination and a 

 minimum of red tape. If we can provide this Institute with the operational flexi- 

 bility enjoyed by our private foundations, we can make a major contribution to 

 the lower income countries at modest exi)ense. 



An Institute, so organized, could 



— 'Concentrate U.S. scientific and technological talent on the problems of 

 develoipment. 



— Help to develop research competence in the lower income countries 

 themselves. 



— Help develop in^itutional competence of governments to plan and manage 

 their own development programs. 



— ^Support expanded research programs in population. 



— ^Help finance the programs of U.S.-sponsored Schools, hospitals, and other 

 institutions abroad. 



— Carry out a cooperative program of technical exchange and reimbursable 

 technical services with those developing countries that do not require finan- 

 cial assistance. 



— Cooperate in social development and training programs. 



— Administer our technical assistance programs. 



— Permit greater reliance On private organizations and researchers.^ 



One innovation proposed by the President that had not been in the 

 Peterson Report was the suggestion that : 



As a long-run contribution to the funding of development, the U.S. wiU seek 

 the utilization of revenues derived from the economic resources of the seabed for 

 development asssistance to lower income countries. I have recently proposed that 

 all nations enter into a treaty to establish an international regime for the ex- 

 ploitation of these vast resources, and that royalties derived therefrom be uti- 

 lized principally for providing economic assistance to developing countries parties 

 ipating in the treaty.^'' 



Assertedly, the new foreign assistance institutions which are pro- 

 posed to replace the existing AID structure, would also coordinate the 

 funding activities of the various overseas credit institutions supported 

 by the United States. These new institutions would also relate to the 

 assistance operations of the United Nations, and to its lending opera- 

 tions. And, in addition, the evolution of regional institutions (such as 

 .the 'Central American Common Market, the Alliance for Progress, 

 etc.) and regional credit institutions (Central American Bank for 

 Economic Integration, Caribbean Development Bank, Andean Devel- 

 opment Corporation, Inter- American Development Bank, Asian De- 

 velopment Bank, etc.), implies the eventual need for a relationship 

 with U.S. institutions for foreign assistance. It se-ems like a heavy 

 burden of policy planning, for the same agency to administer three 

 sets of relationships, toward three sets of national, regional, and 

 global objectives. 



SOME FUTURE PROBLEMS IN TECHNICAL ASSISTANCE 



The issue of multilateral versus bilateral aid is complicated by a 

 practical political consideration. Some of the objectives ascribed to the 

 early Truman program, still persuasive for some groups, are largely 

 incompatible with the patterns of cooperation essential in a multi- 

 lateral program. A multinational program of assistance is likely to find 

 few friends and fewer sponsors. It may be easier to win political sup- 



138 U.S. President (Richard Nixon.) "Foreign Assistance for the Seventies: The Presi- 

 dent's Message to the Congress Proposing Reform of the United States Foreign Assistance 

 Program." September 15, 1970. WeelJly Compilation of Presidential Documents, (September 

 21. 1970), pages 1220-21. 



^ Ibid, page 1224. 



