SENATE APPROVES FOREIGN AID BILL WITH BIG CUT, 61‐23
Sen, 61-23, approves foreign aid bill authorizing $1.14-billion in econ and humanitarian assistance; votes, 45-12, to more than double prevailing interest rates on long-term loans to poor countries outside Latin Amer despite Adm warnings that action will put $250-million in development loan funds out of reach of developing countries; provision will eliminate present 10-yr 'grace' period in which borrowing countries pay 2% interest and abolish 3% rate charged thereafter; calls for over-all rate at least as high as cost of money to US Treas, which is about 6 1/8%; vote follows warning from AID that poor countries could not afford to borrow on such terms; Javits warned that developing countries are already paying in debt service of about $5-billion annually; HR adopts by voice vote continuing resolution to keep aid program alive until end of yr; measure would extend spending authority of AID at last yr's level of $2.6-billion until adjournment of present session of Cong; Sen Ellender tells newsmen that he will not call meeting of panel to consider HR-approved extension although it contains funding authority for several other Fed agencies that have yet to receive their regular appropriations; Mansfield, in softening of position, says he will not oppose extension resolution if it is ltd to funds needed to pay AID salaries and operating expenses
