WASHINGTON (Jul. 27)
The Senate Foreign Relations Committee voted today 12 to 6. to restrict U.S. Government financing of credit to underdeveloped nations for arms purchases. The measure would make it more difficult for the State Department to supply arms to nations like Jordan.
The Committee approved a proposal by Sen. Frank Church, Idaho Democrat, to delete from the Foreign Aid Bill a section providing a revolving fund for arms sales. Sen. Church said that the military aid program’s revolving fund was used to guarantee repayment of loans extended by the U.S. Export-Import Bank and private banks.
He said removal of the fund would “impose reasonable restraint” on the program for arms sales. The sale of arms to Jordan came under criticism when it emerged that U.S. arms were used against Israel in the recent war.