HOUSE TO SHELVE AID REFORM PLAN FOR THIS SESSION
HR Foreign Affairs Com announces decision to shelve Nixon's foreign-aid reorgn plan for present session of Cong following 3 days of hearings; is expected to extend present law for 1 yr with similar fund appropriation as for current fiscal yr; Repr Morgan tells White House study group head R A Peterson that aid program must have new image if it is to survive; notes there are only 60 days remaining in this fiscal yr and questions whether that is enough time to decide whether Nixon's proposal puts foreign aid on 'businesslike basis'; Peterson concedes that 2 mos is not enough time for com to discharge its legislative responsibility regarding proposal; says he hopes com will continue working on proposal during remainder of current session; Repr Frelinghuysen says rept is making it far more difficult for program to survive; says decentralizing of aid machinery has been overdramatized by proposal to dismantle AID and replace it with development corp and separate tech assistance institute; Repr Culver cites figures from AID showing that 98% of its expenditures went for goods and services in US to support his contention that 'only beneficiary of aid program and domestic programs is Amer businessmen'; Gen R Wood, questioned by Repr Fraser to name single underdeveloped country in which US has 'vital security interest', says US has vital security interest in any country where its armed forces are present but notes he could think of no country in Africa or Latin Amer