Eisenhower Asks Congress for $100,000,000 Fund for Middle East, Africa

President Eisenhower, in his foreign aid message to Congress, today asked for a special fund of $100,000,000 for use in the Middle East or Africa at the discretion of the President. This was seen in some quarters as a device conceived by the State Department to gain funds for the Aswan dam development in Egypt while evading the necessity for going directly to Congress for this specific controversial purpose.

Mr. Eisenhower explained his request for the special fund as follows: “The Middle East and Africa are areas in which it is especially important to build new strength friendly to us. There is need for an adequate fund which can be used to assist in meeting special economic problems that may arise in those regions. The United States must be in a position to act promptly to help the governments in this area in their efforts to find solutions for economic and social problems. I therefore recommend creation of a special fund of $100,000,000 to be available for use in any part of the Middle East or Africa for non-military mutual security programs which will advance the cause of free world security and economic strength.”

The President said that “in Asia and the Middle East, serious risk of aggression still exists.” His program recommends aggregate military assistance of approximately $1,640,000,000 for countries in these regions. It was indicated that Iraq was included. The sum of $63,000,000 was requested by the President for development assistance in 1957 to countries in the Near East and Africa. Continued support was recommended for the United Nations Relief and Works Agency which provides relief and rehabilitation to the Arab refugees from Palestine. Carry-over authority was asked for the estimated unobligated balance of $45,300,000 in fiscal year 1956 funds for Palestine Arab refugees.