62 



While the cooperation of other nations should be sought in the 

 investment of capital to aid the poorer nations (said the President), 

 the United States was "preeminent in the development of industrial 

 and scientific techniques" which could be used effectively in areas 

 needing them. Eighteen months later, on June 5, 1950, the Act for 

 International Development, embodying the congressional response to 

 the President's request, received his approval. Its first funding was 

 further delayed until the end of August 1950. 



Summary of the legislative history of Point IV 



The first step in implementing the point IV proposal was the formu- 

 lation of a set of specifics. This task was undertaken by the Inter- 

 departmental Advisory Committee on Technical Assistance, com- 

 posed of agency and departmental administrators of assistance pro- 

 grams, acting in concert with the National Advisory Council, com- 

 posed of departmental chiefs concerned \\ath financial matters and 

 also nongovernmental spokesmen for the American business com- 

 munity. The enterprise was under the general direction of Assistant 

 Secretary of State Wiliard Thorp. The major product of these deliber- 

 ations was a program, issued in the form of a series of State Depart- 

 ment publications under the title: "Point Four: Cooperative Program 

 for the Development of Economically Underdeveloped Areas." 



On the basis of the recommendations in this series of publications, 

 the administration drafted two bills which were introduced as legis- 

 lative proposals in June 1949. One treated the provision of technical 

 assistance ^ and the other the establishment of safeguards for private 

 capital to finance a large part of the program.^ 



Segments of the business connnunity challenged the position taken 

 by the Administration in oft'ering a flexible aid program, urged a larger 

 role for private capital with stronger safeguards, and opposed the con- 

 templated role of the United Nations as partner in the program. Tln-ee 

 sets of hearings were held on the initial bills and on subsequent com- 

 promise measmes, before the Congress adjourned without taking 

 action. 



Deliberations between the executive branch and interested members 

 of the business community continued. Compromise legislation was 

 drawn up and introduced in an attempt to satisfy some of the criticisms 

 of industry. New hearings were held, during the first part of 1950, by 

 the Foreign Relations and Foreign Affahs Committees. The two 

 Houses acted on separate measiu"es, the House version calling for a 

 $25 million appropriations authorization, with a substantial role for 

 guaranteed private investment, and the Senate version limited to the 

 provision of technical "know-how," supported by a $45 million appro- 

 priations authorization with few guarantees to protect overseas private 

 investment. House and Senate conferees acquiesced essentially on the 

 House version. After much debate in the Senate, the Congress accepted 

 the conference report and the President signed the bill into law June 5.* 

 After further debate, the Congress appropriated $25 million to get the 

 program underway. 



The Act for International Development was a compromise between 

 the administration bills and counterproposals for a program of limited 



2 H.R. 5615, introduced in the House by Representative John Kee, chairman of the House Committee 

 on Foreign Affairs. 



3 H.R. 5594, introduced in the House by Representative Brent Spence and S. 2197, introduced in the 

 Senate by Senator Burnet R. Maybank, July 12, 1949. 



<Act for International Development, 1950, title IV, sec. 403. PubUc Law 535, 81st Cong., June 5, 1950. 



