IRY 1 1963
"ItnIlE MICHIGAN UATU.V
A. Assis63 Undrdelpe uMntrI 1 fl7Aies
AID Assists Underdeveloped Countries
PAC
By The Associated Press
WASHINGTON - Responsibil-
y for the billions of dollars
ven annually by the United
tates in foreign aid have passed
new hands.
When Fowler Hamilton, who
as headed the Agency for Inter-
ational Development since Sep-
mber, 1961, resigned to return
) private business, he was re-
aced by former Budget Director,
avid Bell.
Hamilton said he resigned for
purely personal reasons. But there
were reports that he quit because
of criticism of his resistance to
heavy foreign aid spending by
some members of the Kennedy
administration.
Main Load
The United States is still carry-
ing the main burden of assisting
underdeveloped nations.
T h e Development Assistance
Committee, an international group
whose aim is the coordination of
all aid programs, reported last
July the United States supplied
$4.41 million of the total $5.9 mil-
lion disbursed by the 10 industrial
nations forming the DAC. This
figure covers long-term financial
aid, and does not include "private
flow," the term applied to all non-
governmental aid.
In millions of United States dol-
lars, the report shows the follow-
$3,414,000,000
"-r
afs]
K:x
contributes ST T
nearly 60% UNITED
of.foreign aid
given through
Development
Assistance r ty r, f:
Committee ".Yrljr ~tY<'1Z t' tl r
UNITED KINGDOM
--ITALT
" 1 " X"V ."
.: J
A $ 500,000,000 AP Newseatures
ing contributions by other DAC
countries:
List Nations
Belgium, $106.4 million; Can-
ada, $61 million; France, $952.7
million, with most going to her
former colonies; West Germany,
$573.6 million; Italy, $68.2 million;
Japan, $231.6 million; Nether-
lands, $69 million; Portugal, $31.5
million, and the United Kingdom,
$445 million.
Following announcement of his
resignation, Hamilton dropped
plans for a two-week trip to Paris,
Bonn, Rome and Brussels where
he intended trying to convince
several industrialized nations to
undertake a larger share in the
aid programs. This task will
probably be assumed by his suc-
cessor.
When Hamilton undertook the
job, AID was a newly-formed
agency designed to replace the
International Cooperation Admin-
istration and the Development
Loan Fund in order to consoli-
date almost all foreign aid func-
tions.
Social Reform
Major task of AID is to per-
suade countries which get United
States aid to use the money on
projects which would promote
their economies and to adopt so-
cial reforms. Hamilton reiterated
this policy when his resignation
was announced.
Hamilton favored shifting most
United States aid from grants to
a loan program. These loans, with
interest rates gaing down to zero,
are supposed to be repaid some-
time in dollars.
During his tenure Hamilton's
recommendation was that 80 per
cent of the funds go to 15 coun-
tries where there is a reasonable
basis for bringing stability to the
economy. The rest of the money
would go out mainly for good will.
The Development Assistance
Committee serves as a major arm
of the Organization for Economic
Cooperation and Development, the
European trade group which links
the six-nation Common Market
and the "Outer Seven" group. It
is a clearing house where foreign
aid problems are discussed and
it gathers information on how
member nations can best help
underdeveloped areas. In 1961
James W. Riddleberger, former
United States ambassador to Yug-
oslavia and Greece, was named
DAC chairman.
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SUPREME COURT:
Featherbedding Awaits Fate
< .y-
By NORMAN WALKER
Associated Press Staff Writer
WASHINGTON-A man can get
fairly excited over the prospect
of a wage change. But he will fight
like a tiger if his job, his whole
livelihood, is in danger.
That's the crux of the big rail-
road featherbedding dispute. It
explains why five unions are
fighting tooth and nail against
and job reduction in their work
of operating the trains, appealing
all the way to the United States
Supreme Court.
The railroads are saddled with
a business that is losing ground to
competing modes of transporta-
tion-the truck, automobile, pipe-
line and barge. Naturally the
roads want to cut expenses.
Make Claims
They claim they could save $600
million a year by firing employees
who hold jobs that management
contends are not needed. Feather-
bedding is the popular term for
such employment.
The situation has all the mak-
ings of a natural fight. The unions
are scrapping to preserve worker.
jobs, the carriers to keep their'
financial heads above water. A'
showdown has been progressively
postponed for several years, but
the moment of truth with its pos-
sibility of a nationwide rail strike
is surely coming, and it likely will
come in early 1963, despite the
union's appeal.
As in all labor disputes there is
an eventual middle ground. This
one is so bound up in emotions-
each side having thoroughly wrap-
ped itself in a mantle of self-
righteousness-that a compromise
will be difficult.
Probable Compromise
But there undoubtedly will be
one, and it probably will favor the
railroads more than the unions.
The labor organizations are fight-
ing a rear guard action. Hoary
job and worker practices must ul-
timately give way, as a White
House board of experts pointed
out last spring after a detailed in-
dustry study..
Rightnow the dispute is stalled
in court litigation. Two levels of
the United States courts have rul-
ed with the carriers-that they
have a right to go ahead and
make the manpower economies
they want since they couldn't
reach agreements with the unions.
The latest ruling, by the United
States Appeals Court at Chicago
Nov. 28, sided with the industry.
The court said any strike against
such job reductions may well in-
vite public indignation leading to
application of the anti-trust laws
to the rail labor unions. Then the
unions, got a stay until Jan. 9
from Justice William 0. Douglas.
Seek Review
The unions seek a supreme court
review. President Johnt F. Ken-
nedy is awaiting the outcome but
once 2, strike is imminent, he can
invoke emergency provisions of
railway labor law to delay a walk-
out for at least 60 days. This in-
volves naming another board to
recommend a settlement formula
followed by a period of required
negotiations.
The five unions involved are the
engineers, firemen, conductors,
trainmen and switchmen. They
have about 180,000 working mem-
bers.
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