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100580 1 (1976-02-21)

handle is hein.gao/gaobadxti0001 and id is 1 raw text is: 



DOCUMENT PEESUME


  00580 - (A0751394)
  rGAO Observations tf Scme United States Foreign Affairs
  Operations]. February dl, 1976. 29 pp.
  Testimcny before the Senate Committee on Appropriations: Foreign
  Operations SuL-.ommittee; by J. K. Fasick, Director,
  International Div.
  Issue Area: International Economic and Military Programs (600).
  Contact: International Div.
  Budget Function: International Affairs (150).
  Organization Concerned: Agency for International Development;
     United Nations: Food and Agriculture Organization;
     Export-Import Bank of the United States; International Labor
     Organization; World Health Organization; ACTION: Peace
     Corps; United Nations: Educational, Scientific and Cultural
     Organization.
 Congressional Relevance: Senate Committee on Appropriations.
     Foreign Operations Subcommittee.

          Middle East countries receive the major portion of the
 appropriations for security supporting assistance, which is not
 signi:.icantly greater that appropriations fcr development
 assistance. Egypt could not provide the necessary manpower,
 local currency support, and mrnagement resources to handle the
 volume and type of U.S. assistance that was planned. Rather than
 provide sirely needed rz.w material and commodity assistance,
 capital projects were programmed uith consequent severe strains
 on Egyptian capab3lities. Policy considera.ticns relating to
 Middle Ea1st jil and peace arl at the hecrt f the bilateral
 relation with Sauidi Arabia. The enormous volume of sales is due
 Trgely to infrastructure prograbs, rather than lethal arms,
 which were rel.tivly unsophisticated in Saudi. Arabia. The
 executive branch is Lt organized to assure effective
 participation in U.N. organizations, having no scund policy
 objectives and needing improvement in program planning,
 budgeting, and evaluation. Food shortage prcblems are due in
 part tc postharvest handling and storage. Study so far has
 indicated that providing family planaing services alone may not
 be the univer.,al answer to the population problem; people must
 first be motivated to want to limit their families. AID and the
 Export-Import Bank loans-to-foreign-countries prcgrdms should be
 reassessed, since there are a number of outstanding loans to
 countries with bad credit reputations. The Bank is working on
 solutions and AID could develop trade policy with these
 countries, who have fixed their economic growth prospects on the
 financial resources -'hat expand trade. Despite recent
 initiatives to liberalize trade through tariff preferences and
other mechanisms, the lesser developed countries have been
unable to find sufficient outlets for their expcrts. (SS)

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