Foreign Assistance Programs Message to the Congress.

To the Congress of the United States:

In the years since World War II, the United States has encouraged economic development throughout the world through a variety of economic assistance programs.

Most of our efforts have succeeded. Some have failed. Now we have the opportunity, as with many of our domestic programs, to learn from our experience, and to improve our policies in the future.

Members of my Administration are now testifying in support of our approach to foreign assistance. I am sending you this message to explain some of the principles behind our program--especially, to outline the lessons we have learned about foreign assistance and the goals we now hope to achieve.

The future of the United States will be affected by the ability of developing nations to overcome poverty, achieve healthy growth and provide more secure lives for their people. We wish to join with other nations in combining our efforts, knowledge, and resources to help poorer countries overcome the problems of hunger, disease, and illiteracy. We are seeking important improvements in our program, some of which reflect changes in emphasis and approach:

--We will ensure that lending agencies attach adequate self-help conditions to their loans so that borrowing nations will make effective use of the funds they receive.

--We will make certain that the Congress is able to exercise its legitimate responsibility to monitor the effectiveness of our aid programs.

--We will encourage other wealthy nations to contribute a greater share to the multilateral aid effort, and we will reduce our own share where it has been too high.

--In close cooperation with the Congress we have made sure that our concessional aid goes to those who need it most; we will continue this approach.

--We are now reforming the policies which have, on occasion, awarded liberal grants and loans to repressive regimes which violate human rights.

--We will root out mismanagement and inefficiency where they exist in our foreign assistance programs in order to guarantee that benefits will always be delivered to those for whom the programs were designed.

--We recognize that salaries and living styles of some employees have been too lavish, and we will insist that the international programs we support do more to control their administrative overhead.

--I will work closely with the Congress to see that our aid efforts are more closely correlated to international economic and political circumstances and talk frankly to American citizens about the economic, political, and security benefits we receive from our foreign assistance programs.

Close cooperation and support from the Congress is essential to the effectiveness of our efforts. In a few areas the program I have submitted requires a significant increase in. funding--but I have asked for this only where I am sure that the increase will be worthwhile.

To achieve our goals of helping the people of the world toward economic self-sufficiency, relieving the victims of disasters, investing in a healthy world economy, and supporting the security of friendly nations, I ask your favorable consideration for the following:

--Multilateral Development Assistance. International financial institutions such as the World Bank group--in particular the International Development Association--and the Inter-American and Asian Development Banks are major sources of assistance loans to the world's poor nations. These institutions have been highly professional in their work. They help remove political considerations from development efforts, and they encourage developing countries to pursue sound domestic policies. They enable many donors to pool their efforts--including some of the oil-exporting nations. An initial, modest U.S. contribution to the African Development Bank will provide our encouragement to this promising regional effort.

We are asking $540 million in supplemental appropriations for fiscal year 1977 to fulfill past pledges to the international financial institutions, and $2.7 billion in new appropriations for fiscal year 1978. This is an increase (of approximately one-third) for an effort which has proved to be very effective. The largest single expenditure is for U.S. participation in the 5th replenishment of the International Development Association, which makes loans on favorable terms to the world's poorest nations.

The United Nations Development Program, which provides important technical assistance to the developing world, has also proven its effectiveness and worth. We are seeking an appropriation of $130 million for fiscal year 1978, a 30% increase over last year.

--Bilateral Development Assistance. Congress has played a major role in developing our bilateral programs, which provide direct American support for development programs in the poorer countries. Through these programs we have shared our expertise and our resources with other countries. Our bilateral programs are directed at the poorest people in these countries' populations; they emphasize food and nutrition, population and health, education and human resource development, and science and technology, including energy development.

We have certain expectations of the countries which we help. We have no intention of running their governments or their economies, but we expect them to mobilize their own resources in the effort to develop, to ensure that the poor share in the benefits, and to respect basic human rights.

I am asking the Congress to provide $1.3 billion for the bilateral development assistance program for fiscal year 1978. This is a 20% increase over the amount provided for fiscal year 1977, which I believe is clearly worthwhile.

Last year, the Congress, on its own initiative, appropriated $5 million to help develop a comprehensive long-term recovery plan for the Sahel region, which had undergone a disastrous drought. As the first major U.S. contribution to this program, I am requesting $50 million for fiscal year 1978. We will cooperate with other interested nations in making further contributions to the Sahel development effort in the future.

--The PL-480 Program. The enormous vitality of U.S. agricultural production permits us to share a portion of our bounty in the form of food aid. Our PL--480 programs should not only help the poorer countries improve the quantity and quality of their nutrition, but also encourage self-help programs that will improve their capacity to feed their people in the future. And these programs let us offer relief from famine and privation in the wake of natural and man-made disasters. In fiscal year 1978, our food aid programs will distribute $1.4 billion in agricultural commodities.

--Security Assistance Program. Only where peace and security are assured can free nations devote their full energies to development. Our security assistance programs are keyed to these goals, and to advancing the security interests of the United States in cooperation with our friends and allies. Nearly two-thirds of the funds requested for security assistance will be for economic supporting programs. I have increased the amounts proposed by the previous Administration for the Middle East; this will strengthen the economic underpinnings so essential to achievement of our goal of peace and stability in this vital region.

For FY-1978 the major elements of my program on security assistance are:

• Grant military aid--$284.6 million to eight countries, in most of which we also have U.S. military facilities essential to our global interests. This includes $224 million in programs plus $60.6 million in general and administrative costs, most of which will be reimbursed from other sources.

• Grant military education--$35.7 million to train future military leaders.

• Financing for foreign military sales-$708 million, which will finance $2.2 billion in loans to help foreign governments eventually to meet their essential security needs by themselves, instead of depending on U.S. handouts.

• Security supporting assistance--$1.9 billion to finance programs for countries whose economic condition is a factor in our efforts to assure international security. The two areas where most of these funds will be used--Middle East, and depending on events, Southern Africa--testify to the significance of these programs.

These proposals are fully consistent with my wish to limit budget increases to essentials. My assistance program is part of an effort to combine support of our country's economic interests and security with compassion for the impoverished millions of fellow human beings who share the world with us.

I hope that the economic assistance program now before you will receive your careful, prompt, and sympathetic attention. It represents a vital step toward partnership in a peaceful and equitable world order.

JIMMY CARTER

The White House,

March 17, 1977.