296. Editorial Note
In his Annual Message to the Congress on the State of the Union of January 30, 1961, President Kennedy said that “we must never forget our hopes for the ultimate freedom and welfare of the Eastern European peoples.” He asked Congress to amend the Mutual Defense Assistance Control Act of 1951, commonly known as the Battle Act (P.L. 82-213, approved October 26, 1951; 65 Stat. 644), to allow him more discretion in using economic tools “to help reestablish historic ties of friendship” with Eastern Europe. He also said he hoped “to explore with the Polish Government the possibility of using our frozen Polish funds on projects of peace that will demonstrate abiding friendship for and interest in the people of Poland.” (Public Papers of the Presidents of the United States: John F. Kennedy, 1961, page 26)
President Kennedy submitted the proposed bill with letters to President of the Senate Lyndon B. Johnson and Speaker of the House of Representatives Sam Rayburn on February 21. (Department of State Bulletin, March 27, 1961, pages 444-445) The bill permitted grant aid to any nation, excluding the Soviet Union and the Communist-held areas of the Far East (Communist China, North Korea, and North Vietnam). In his statement before the Senate Foreign Relations Committee in support of the bill on April 25, Under Secretary of State for Economic Affairs Ball referred to the possible use of accumulated Polish currency as an example of such aid. (Ibid., May 22, 1961, pages 775-776) The Senate amended and passed the bill on May 11 (S.1215, 82d Cong.). It was referred to the House Foreign Affairs Committee on May 15, but the House of Representatives failed to act on it.