be 16 U.S. military personnel, and that is about an increase of 4 over what we had previously. Senator BROOKE. Now, since you have to-I understand-have specific authorization, do you intend to make that request? General FISH. Yes, sir. Under the Foreign Assistance Act of 1961, we must ask for specific authorization, and we did in the past administration process, a request which was approved by President Ford, and that is being reexamined right now. But I know of no concern over this particular act. It would be something that will be reviewed by the administration. Senator BROOKE. What followup in fiscal year 1978 do you anticipate for this program other than what you have here? PROGRAM UNDER REVIEW General FISH. We do have a program that is under review right now by the administration. I hesitate to say the amount, pending our present review. Senator BROOKE. According to information I received from the Department of Defense on drafting, what is meant by the term "loan" as used, and do you anticipate that the United States will receive this material? If not, how is it going to be paid for? General FISH. Sir, tanks and APC's on 16-month loan; we also have loans of T-38 aircraft on an 8-month loan. It will be necessary to either withdraw the equipment at the end of the period, which is the end of fiscal year 1977, or request additional moneys for continuing the loans. That is one option, or we could grant the equipment and request the Congress in the 1978 budget for sufficient funds to leave the equipment there as a grant. Or the third option would be for the Portuguese to purchase the equipment. I think, in the more likely event, we would prefer it be left there as a grant. Senator BROOKE. I would hope so. I just do not think they are in a position to pay for it. I think, realistically, it is going to have to be a grant. At least you recognize the reality which we felt and which we are in. We might want to continue the loan for a period. I guess you understand. General FISH. We are loaning this equipment under the Foreign Assistance Act. The MAP funds are provided under section 503 of the act. No funds are being withdrawn from the economic development for this loan. Senator BROOKE. Mr. Ericson, has the Carter administration given assurances to the Government of Portugal that the United States will support a Portuguese military organization in the NATO framework? Mr. ERICSON. Yes; our Ambassador, on behalf of the Carter administration, has. Senator BROOKE. Can you agree to provide us any specifics to such assurances? Mr. ERICSON. Not at this time. Mr. ROWELL. The specific assurance we gave the Portuguese Government after the new administration entered was to confirm to the Por tuguese Government that we were prepared to go ahead to request necessary funding of the Congress. This program was developed late last year. The Portuguese understood it was the United States Government, quite apart from whichever administration was in office, that proposed to go with this NATO program to help Portugal. This is simply a reaffirmation of our intent to do so. Mr. ERICSON. I can add one thing also, Senator, on this question. During a telephone conversation with the Portuguese Prime Minister on January 27, Vice President Mondale assured support of the Carter administration for the democratic government in Portugal. The Portuguese interpreted this as being support in their overall effort, including military. I am sorry-it was just pointed out to me that the Vice President also made a specific assurance of continued U.S. support of economic assistance and military modernization within the NATO framework. MILITARY COMMITTED Senator BROOKE. How much prestige can the Portuguese military leaders Mr. ROWELL. They are totally committed to the modernization effort. The total Portuguese leadership, Senator, as I know you know, in installing this new democratic government and voluntarily withdrawing the armed forces from active political participation and moving toward a legitimate, professional, nonpolitical military mission, in effect have staked their careers and prestige on carrying out this change. It is a change that cannot be carried out without the assistance of the other allies. These democratic leaders would suffer if the NATO organization, and ourselves as a part of NATO, fail to come through with the support for the program they pledged themselves to. Senator BROOKE. The elements of the Portuguese society would like to see this fail, and can you provide some details? Mr. ERICSON. To provide a general statement, yes, there are the same forces almost took over the Government, 112 or 2 years ago they are still there and are still in a position of hoping they will eventually come to power. And the details, I think, Mr. Rowell will have to furnish. I said the same forces are, in effect, still there waiting in the wings, hoping their time will come. Any details, I think, Mr. Rowell will have to supply. Mr. ROWELL. I could add-the Communist Party of Portugal is still there and is still strong. It still has some of the support that developed during its heyday in 1975. This Government has had to take on a major task in attempting to eliminate from the bureaucracy Communist sympathizers who were installed while the Communists were influential. We also note that in the recent municipal elections the Communists recouped some of the ground they had lost earlier. They have managed to retain a very strong position in the labor structure. Given the economic problems that the country is facing and the need for austerity measures which this government is going to undertake, there will be, obviously, some reductions in real income for Portuguese workers; and the Communists, as strong as they are in the labor sector, are quite likely to take advantage of it. Senator BROOKE. Have there been any recent disruptions, bombs, the elections have you heard anything recently? Mr. ROWELL. Senator, I am not aware of anything very recently, but I would have to check the record. SUBCOMMITTEE RECESS Senator BROOKE. The subcommittee will stand in recess until 10 a.m., Monday, February 21, 1977, when we will proceed with our fiscal year 1978 hearings. Officials from the General Accounting Office will appear on that day to discuss pertinent matters concerning the foreign assistance appropriations bill. Thank you, gentlemen. [Whereupon, at 4:35 p.m., Thursday, February 10, the subcommittee was recessed, to reconvene at 10 a.m., Monday, February 21.] FOREIGN ASSISTANCE AND RELATED PROGRAMS APPROPRIATIONS FOR FISCAL YEAR 1978 MONDAY, FEBRUARY 21, 1977 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met at 10 a.m., in room 1114, Everett McKinley Dirksen Office Building, Hon. Daniel K. Inouye (chairman) presiding. Present: Senator Inouye. GENERAL ACCOUNTING OFFICE STATEMENT OF J. KENNETH FASICK, DIRECTOR, INTERNATIONAL DIVISION, GENERAL ACCOUNTING OFFICE ACCOMPANIED BY: CHARLES D. HYLANDER, DEPUTY DIRECTOR OPENING REMARKS OF SENATOR INOUYE Senator INOUYE. The subcommittee will please come to order. I am pleased to welcome J. Kenneth Fasick, Director of the International Division of the General Accounting Office. The subcommittee has found the General Accounting Office to be a valuable ally in our struggle to insure that congressional directives are carried out and that our foreign assistance programs are executed in a prudent and cost-conscious manner. We look forward to an improved and even more productive relationship with GAO. PREPARED STATEMENT I would like to welcome you, Mr. Fasick, personally. I have read your prepared statement, and without objection, it will be made a part of the record at this point. Perhaps we can begin by having you summarize that statement, sir, or whatever way you want to proceed. [The statement follows:] (67) |