In its annual report for 1957, the Committee for Economic Development boasted of some of its past accomplishments and its future plans.
Mr. Howard C. Petersen, Chairman of the CED's Subcommittee on Economic Development Assistance (and a member of the Council on Foreign Relations) said that his committee originated the idea of creating the Development Loan Fund, which was authorized by Congress in Section 6 of the Foreign Aid Bill of 1957, which Eisenhower established by Executive Order on December 13, 1957, and which may be the most sinister step ever taken by the internationalist foreign-aid lobby.
In 1956, when President Eisenhower requested an appropriation of $4,860,000,000 for foreign aid, he asked Congress to authorize foreign aid commitments for the next ten years. Congress refused the ten-year plan. In 1957, the internationalists' ideal of a permanent authorization for foreign aid was wrapped up in the Development Loan Fund scheme.
Only a few Congressmen raised any question about it. Below are passages taken from the Congressional Record of July 15, 1957, the day the Development Loan Fund was discussed in the House.
Congressman A. S. J. Carnahan (Democrat, Missouri) floor manager for the Foreign Aid Bill, rose to explain Section 6, which established the Development Loan Fund, saying:
"The United States, in order to provide effective assistance [to all underdeveloped countries of the world] ... must have available a substantial fund upon which it can draw. The fund must be large enough so that all of the underdeveloped nations of the free world will feel that they will have an opportunity to participate in it.
"We cannot wisely say that we should make a small amount available the first year and see how things work out. If we are able to offer assistance only to the select few, we will inevitably antagonize many other countries whose future friendship and cooperation will be important to us ... in addition to an initial authorization of an appropriation of $500 million, the bill includes authorization for borrowing from the Treasury $500 million beginning in fiscal 1959, and an additional $500 million beginning in fiscal 1960."
Thus, Congressman Carnahan, arguing for foreign aid, outlined some of the absurd fallacies of foreign aid: namely, if we give foreign aid at all, we must provide enough so that every foreign government in the world will always be able to get all it wants. We can exercise no choice in whom we give or lend our money to. If we give only "to the select few" we offend all others.
Congressman H. R. Gross (Republican, Iowa) asked a question:
"What interest rate will be charged upon the loans that are to be made?"