ident downward to officials in the
National Council of Churches) telling us that the survival of our nation
depended on the President's getting all the foreign aid "authorization"
he wanted--most Americans remained silent, feeling that such
consequential and complicated matters should be left in the hands of our
chosen leaders.

By the end of August, the Foreign Assistance Act of 1961 had been passed
by both houses of Congress; and the Berlin crisis moved from front page
lead articles in the nation's newspapers to less important columns.

Thus, in 1961, as always, the foreign aid bill was a special project of
our invisible government, the Council on Foreign Relations. And, in
1961, as always, the great, tax-supported propaganda machine used a fear
psychology to bludgeon the people into silence and the Congress into
obedience.

President Kennedy signed the Act as Public Law 87-195 on September 4,
1961.

* * * * *

Public Law 87-195 authorized $10,253,500,000 (10 billion, 253 million,
500 thousand) in foreign aid: $3,066,500,000 appropriated for the 1962
fiscal year, and $7,187,000,000 Treasury borrowing authorized for the
next five years. The law does require the President to obtain annual
appropriations for the Treasury borrowing, but permits him to make
commitments to lend the money to foreign countries, _before_ he obtains
appropriations from Congress.

It was widely reported in the press that Congress had denied the
President the long-term borrowing authority he had requested; but the
President himself was satisfied. He knew that by promising loans to
foreign governments (that is, "committing" the funds in advance of
congressional appropriation) he would thus force Congress (in the
interest of showing "national unity" and of not "repudiating" our
President) to appropriate whatever he promised.

On August 29, the President said:

"The compromise ... is wholly satisfactory. It gives the United
States Government authority to make commitments for long-term
development programs with reasonable assurance that these
commitments will be met."

* * * * *

Former Vice President Richard M. Nixon (a member of the CFR) was happy
about the 1961 foreign aid bill. On August 29, Nixon, on the ABC radio
network, said that he favored such "long-range foreign aid planning,
financed through multi-year authorizations and annual appropriations."