Foreign Relations of the United States, 1977–1980, Volume XXX, Public Diplomacy

116. Memorandum to the Files¹

Washington, December 17, 1977

SUBJECT

• Meeting in Congressman Paul Simon’s Office to Discuss the Possible Use of Counterpart Funds for Educational Exchange Programs

PARTICIPANTS

• Congressman Paul Simon; Leonard Marks; John Reinhardt; William M. Jones, General Counsel of the Committee on Government Operations; Keith Gartner, Congressional Fellow—Cong. Simon’s Office; Darrell Carter

Mr. Simon started the meeting by saying that it was instigated by Mr. Marks, who, he said, had good ideas and would work for them.

Mr. Marks then explained his interest, since 1966, in forming a Foundation(s) primarily to be funded from counterpart funds for educational exchange programs. He said that in 1966, when he was Director of USIA, the creation of a Foundation failed at the last minute because of domestic Indian politics. Nevertheless, he said he still believed in the idea and thought that the time might be right to try again. Mr. Marks thought that (1) a Foundation should function similarly to Binational (Fulbright) Commissions; (2) the U.S. Ambassador and the appropriate local Ministry should name a Foundation’s governing board to be made up of U.S. citizens and nationals of the host country; and (3) major funding for the programs should come from counterpart funds but appropriated money would be required.

Some of the problems of obtaining counterpart funds for exchanges were reviewed. It was noted, for instance, that the country of origin would have to agree to the expenditure of the funds and that Burma, for example, had never been willing to use funds for exchanges. The difficulties of obtaining U.S. Government concurrences for employing counterpart funds also were mentioned but not dwelt upon.

The group agreed that steps should be taken to see if the objective might be achieved. Congressman Simon suggested legislation. Instead of separate legislation, Janean Mann recommended that it be included in the Agency’s FY 1979 authorization bill. She thought that would be the fastest means to the end, and that support would at least come from Fascell, Buchanan, and Meyner of the authorizing subcommittee.

Rather than legislating for specific countries, basic legislation was recommended. However, since Egypt and India have counterpart funds, and are politically significant, they would be logical choices for programs.

Congressman Simon ended the meeting by asking Janean Mann and Keith Gartner to draft possible legislative language. He requested William Jones to inform Congressman Jack Brooks of what was being done and Janean Mann to pass the word in the International Operations Subcommittee. Future actions, he added, should be coordinated with Mr. Reinhardt.

No mention was made of the need or desirability to coordinate House plans with the Senate.

There was passing reference to getting the necessary appropriations if the programs were authorized. Mr. Marks said he thought he could get funding support from Cong. John Slack, Chairman of the Appropriations subcommittee, which deals with the Agency’s budget.

NOTE: Cong. Fascell approved the plan after discussing it with Mr. Marks.

1. Source: National Archives, RG 306, Office of the Director, Executive Secretariat, Secretariat Staff, Correspondence Files, 1973–1980, Entry P–104, Box 151, 7705210–7705219. No classification marking. Drafted by Darrell Carter (I/R) on December 20. Copies were sent to Reinhardt, Schneidman, Glass, Silverman, Nalle, and Morton Smith. Reinhardt and Miller initialed the memorandum, indicating that they saw it.