.l.!i. TO" HOW,A..tt.

LJ
Mr.
!.hi!' Secretary of Sta-to 1185 d1s4
p'!'rviously unpubUclzl!tl OP(ll'n
uc'" l;r t:r"", O!:TIce of the lTUlp(.'Ctor
:::lS,;Lllly called lOA. The publlc haa
!.':fcr;r;cd for the flrst time of the
accompUshment8 of Mr.
Deputy Inspec-
Assistance. Mr.
who, I am proud to 'say, was
00= ill BaITIlony, Mmn.;, ha.s, sinte 1963,
l::M. the job of policilig all foreign ttSSist
milita:ry.econorilic, Peace
C:;::"1];;. a!1d food for freedom. Both the
fi!';;:;iTeneso and the magnitude of his
c
can be judged by two recent art!
m the TwlnClt1es press by two re
themselves Mr.
W. 'Bailey, of theMlnneapoHs
Trlbune. and Mr. AlberlEisele, of the st.
PE,=l PIoneer Press,. '. I ask1UUUllmouS
C'Jr'u'\Tnt both of t.hose articles be
In the CoNGRESSIONAL RECORD.
There being no objection, the articles
'lI't''!'e ordered to bepl1ntedfn the REconn,
s.s fcHows: _ . 0
!Fromtbe MInneBPOlla Tribunel
lh ?toms AnOUNl) -nm' WCJRLD...,.,MmNEsoTA
NATIVE Is l!.8. SLEUTH
[By Cbar!es W. Ba.t1ey. Mlnneapol1llTrlbune
staff correspondent)
W\SBlNGTON. D.C.-Bomo people BrB born
With a sUver spoon. but Howard E, Raugl.lrud
had to walt 40 yeats'. and .:travel lm1twfl.y
the worldtoaqqu.1re llla.
R:mgerud's apoon. of: coul'lle; 2s not tho
lttnd that would _tit handily Into a babY'!i
rnO".lth. It'a anQverslzed. unadorned.
modol; Bomowhntcrudely Ontshell,
... thls uw-olDantlo insoriptIon on tho
",ctek: "To 11.8. HI1!1garutl. Tlrmn Dtrcct(JT lor
,'1rn-Mql Pf'Qjeots. UtlAID. Vtct Nom, 8{lt.ih'
.'rttrale Cas(J.IDIJO," .
But regn.rdleall. ofMllthljtto:tatllngo. the
Is n cherl8he4l1ouvenh' to the ntocky.
c:!l?"...!'-chewing Harmony. MInn na.tive, For
i. SJDlbolizes oue of theBlgnal successes in
= years of dogged but unpublic1zed sleuth
Ing all over the world inpunmlt at
agement, waste., and .corruptlonln the han';'
of programs.
Rallgerud; who .came here in 1956 to join
':!:!e stafi' of the'then-Sen, HDm!:RT HuMPHltEY,
tIllS served sllice 1963 as deputY Inspector
general of torefgn asslstance in the State
DE'pertment. .
In that job be bI\SPlI\Yed.Q j(ey rolo In
d<'7.ctlll lJr InveatlgntlollS o:Covorrtblng !rom
It!tlppy bnokkeoplns..to tho dllJnppoornnc(I of
2.,O{m.ODOb1tllhe)Q nt wbetlt,
Muff; rl'll'(lntl"HnttHt'tud l\lld bIll J.
itcnncth Mlltllltleld.b.tlVeboen luut1'\llnelttal
1:1 proddtng Inlutary andolvllll\n omclals to
crack down on ll.bUIIQ tn- Viet. Nam-Includ
ing in post exchange
supplies. profi.teer1ng
by Vietnamese merchants and theft Ol' other
diversion of U.S. goods .m!.pped'to theAsinn
.nation.
The silverspOOn. Is'
.
Since tlie chemical Is 'used p, '1l\r1iy for
mirrors, making pI10tog1" '" film
nutl!n some mediC'll s\'l'pUes, tllO 1arl>' ,'htp.
l'Jenls sccml)(\ udd, 0 :, -.,
"\11 on-the-scono. proilll' by t,i\o
",m'ral's mon l'flvcaJ"d thl't VletnnmolO
i)',yrm Wero moltIng dOWll t,l1o compound
:0 get pure 611ver-a ','lkCl''' be
CJ;\!Fe they }JOUgllt the ,nitraliC8.t> a. fa
.:rZlole pegged rateofxchange tJ,Dd, 'Wounl1
::p with 1nfiat1on-prooi jdre sUver.wlllcbls
nc
o
tua!1y more valuable in tl1oBl:!.ndpwy wQrld.
c: Asian commcrootbull Yank-oe dollars,
A ffimlllU' e!\tcll.....fWd PllQ With ove1\ more
nr!l't'nt h{tll'lnlt QU th" . WI.l' llItQrt. 1n Vlel,
1"11' 'l>r'-W (rum 1\ m
W'.c' hW/Jo lihlptnol\tl! of,
"f"hln't'Uk" t:!l<')l)Jit-nl emh\lO\Uld'lluPlJOIIeclly
1Z"llr.f' \(1 'Itl.,t. NUnl,f{\f u<;Q:tnnmk!ug
SC'J.!f!>d ".
n"U...(!tl a 50-tQn shlpmimt In n m1x1!d
,:T.ady en route' to Saigon.and after
.. c"lcnl:-.tion of how mU.!:ly'.'thousand
;P?.. _ _
CfJy ...... -",,-,\.;.
requested by the :nspeetor general-reVealed
that the eompmmd. called ''Un1eel'', Is 61
mcst as pcwe1"ful sn explosive as TNT. c'. '
stm:e ever the end
t.o
buye,s hn.';'E UC1?n aU but .
uthe1" Item i',::'tntro np b,Y the
f'!"al'" It. bntl to bo f\5!lUlllllICl.
lO111<'.U <.'f ,"nlN!i WOllld b.\Vo
t'he A;.:enry ttY!"
vC"1I;)rme-:-.'!,. bns
nr.tf
.. c! nttrnto. and }lQVII

t:r:i-.s-::"'<i nth",," programs end prolW"s am
!'(?!)im. - -,.
t!>e Jnsp!!ctJ;lr genel'!ll'8 otllct) b,M
nir!!oct no public ntt-entJQI). IJlnQo
J.t,ln 19t1l. it has lJ\V00p';
lrei>' tm(t 1:1>5, lutho words of Sl!ateto.!}'
,.! Dean sllved "man, mtUl6ll8
of
TI';! ..01(;" bM
=11, Jr.'." h,..- [0 "lIttspcnd an any pan of
ar.:: p!"r,<"": "<' opeTntt.m" l\OOl'l'toretsn_ld,
1''',''."" 0'>'1'-" {,:r
pr:'c;r:\."-" a1\ cn,caUgAt!OD.
1--:: 't" foree \\u\11'
In ,'r !be ordOrll froump"
t :"",:" ! }:t'"
11:". -,,-"1'1; !'1r t .. !} pffil'o Inrol\'H-UO\
.. tn.tob Ira thAi
whk:h O j'ar le-d to t"eCO'lery' Of
!rem thore responmb!e rm dlvendon
'_ wheat shipments. to Ana..
but- preTenth-e action..
F'':l:' Eltnm.p!e. YG st.opped AID f!oln
"'!Ping a $418.00'0 contract to study "tlle
efec: d tta1n1ng". on eCiODltmldc:
gcC;;-::l::; of nm!emevelopednations. .. , ..
10 "!{'-Jr:d" n million-dollar
tiorc5 C';'J!}lc laid uuder tb-o Med1teftaneMl
Il.'! r .-,r+ ef Il NATO project. but DOVIll'
'Ul!'".(':'t,
from tht'l 10 Of!'Ico haft, \'(f"
1,,,wcltlto<1 u.s. omolf1ll1 io un- tho
h">=" ,.',.c:' .. "r t"n,lttl\ Qun"nl!!d b\111l' UP.
but ".''''''1';), Ittle. \tltttt'-r l1'oolt..
Tho result: sa....ings In 1ie1r 1!.p-o.
whlch would othen9ke hMe
be--2'n .
In anothEr esse, the lG
fuod going to Wete
in severallangUagelr,.tac1udlng
in TUrklsh. NOw'tbe mark-.
:;re m tilelangnage:.of the P""1""'1:''''''''''''i5
M!l.1t '",n<:r " milltIlT}' I\ld pt"OgI'1\m. wlUl dig
cc"'cr"'11;-'nll' ntIused. ncsult: '!'he shoes nrQ
no", ;,ctng !oou'Xl and art) on :teet llUltcB4
1nc=":"1'S,
Fer H"m:re-?'Uo, nn Army pllot with .oorvlce
).!l We:-!d War n and Korea, hIS job haa meant
tilc<us:mns 0.1: mlles of tl'l1vel-more than
15G,C')O eITcs. at mat count,in tho past; year.
i: aU beE'n by nlr. Be rode canoes
an::! h:J= t.o vislt Peace Corps
Barn,,::> CeylOn. traveled by
and to mll1ta.ry
1...'1 f2o= z=thern Norway, and. bas
v;ith ffi'S = :S-am on repeated trips theN.
TOle :!ling to a.narrow scrape,Hau'''
ge. ",C' ""'75, =eonce in Viet Nam when the
p!:l.ne l::i9 In marted to land at an
al'!'st-:-!;>-(1!1!Y tmd itselr in the. mlddle of
a, ft!'efi3'h;;. I)e'ween U.S. IlndCOlDm\mlat

....'ben r:c nwny trom hlu $27.000-1\
year 1>"""';, )',"n>. R'mgerud Ill<esto head. for
the rnbIn in northern MInnesota, on
Mfhn. knewthllt Baugeruil bad gone
pretty fal" in stnce leaving their
to fight in the war back in 1042..
.'Dley knew he bad:m job with
tho department in WashIngton Ilnd
some of tbem even ]mew he had 60metblng
to do wlth eheddng up on America's forolgn
nUL .
BI.untU 1;!5t when the sta.te
lDent decided to take the wraps of! n llttle
known inve"Ugn.tlnJ ngeney. tbere weren't
- _ _ L _____ .a_ ....-J!' __"-,,_-'""'.... .......... ""
Is dcptlty In
spector general of foreign asalstnnce arut: tor
til'.) thmo .,enrs he'li! bOO!} travelIng all
ovcr tho worJd findIng how b1lUons ot
t:"xJ1fiYers' dollll.1'll Itrf;lcbolmJ
H,mgerurl, who lloldstbemnk
Bl!creta.ry ot mate and reports dIrectly to Sec..
retary or state Dean RUsk, and Inspector
General J. K. Mansfleld, has the job of polic.
tng all foreign lk"Slstance including -m1l1tary,
economic. the peace corps or food fol'
freedom.
L".st week, at the In-glng of congress, RllSk
rollY.!l!crl the first nlndown'of the herotoforo
flot!rtrt. {ltlll1"l,MQ1lI1 I)f tho "mco I)f fT'P.llC!ltol'
-!:<unrnol'tly "!l.1!",IIUA.
l!.1A '1\VOOtlt!'IUnl11t hI tI{lIU(I nr. 1)1)\mtrlM
Iltllrtl1ng fot-ll. nt.. tOVOl't
eh!JV1ed that Rince it WM fnrml'd thrl!8 yenrlJ
agO. lOA hIlS, among other things: .
Caused cancellation of 1\ 40-mUUan-do1l8l'
loan for a dam project in Nationalist China.;
D15C{)Vered a. submarine communIcations
cable bunt In the MedIt-erra.nean in 1956 for
nation and since forgotten;
Questioned plans -by the defense
ment and the agency for internationalde.
:Velopment to build a telecommUnications
system in Korea. resulting In ellm1nat1on of
a,proJect est1mated to CO$t 7 m!ll1on dollars;
Arranged for 5 million dollars In. U.S
,owned German m!U'ks, Which were lying Idle
inUhfa, to bo put l.Jloo IntcrosL-bc!U'lng bank
accQunt,ll;
Mnda nn annlysls of oobnter-ln6urgency
food shipments to VletnMl which resulted
in elimlna.tton at nlmost 5 million donnrS
of unnecessary
the more sensattonnlitelllll
In . the: report, lLDd according to Haugerud,
represent only "the tip of an Jceberg."But
taItentogcther. the IGA's power to investl.
gate and even stOP. entire forelgp. aid pro
grlUIt$ has saved mllUons of and more
tmPOJ'tIUU,l" bRII helpect moro {It OUr JDI'Ol,:n
atd to aoaompUsh tho VUl'pOIIO lor wllichH,
WM1ntended. . . ..
Buugerud, wbose ftlthcr sttll (IInna D{'!lr
Harmony and whoso brother Nell to sherIff
or FiHmoro county, perOODnlly 11l1oovorcd
lllI\ny ot tbo t1btUles cUed in thu report.
To do hfs sleutlUng, he estJ.mates ho trav..
eled. about' 150,000 miles ln8t; yonr. and cx"
pects to travel WI muCh this yonr. But. travcl
JsnotlJ1ng new to him, .
The HaugerUd left Barmony
When. he was 1'1. joIning the army all' corps.
After the war.,llew:cnt to Kansas Col.
tl)l" two years. got married to
.snd then wenj; back in the an:i:ty when
Korean eonfi1ct broke out. ,
spendlng three years in Europe nnd'
Far Ea.Bt;. he returned to illS homa state
doolded to' 1lnlsh oollege.Bt) went to
p'nlv8rs1tyof Minnesotl\- l\-lld studlC(1 po
.JournJlllam, gradulIt1ng
. workfliS for-tho DFt. party 1ri
ciurIDg hlacollege years; lli\ugcrud
..a111l!mT RUMl'HJmY, Who asked
him to join his stnft whe-nhs graduated.
Haugetud stayed on BUMPHBlJY'S stn.ff untu
1969, tl;len becMle a stl\1l' ot the
ernment operations subCOmmittee, '.
Reflila1ly got back to the. army in 1961
when he became. deputy. undersecretary fQr
InternatIonal aJfaJrs. ' Be JOined theinspector
general's omce In 1963. - .
EventhoJ!Sb. 'hehS& uncovered mnny
.the foreign aid program. Haugerud
believes deeply inthe program, .
'':Most people who admJntster our forelgn
8IIlIistance proeram in the field nre good, ..
dedicated Amer1C1lotlS trying to do n 3oodjol;J
under pretty atb'erse ClrcutnstttllceB." he
_. .',
"They tTy to do wtmt'o rlgbtand they tn.\e .
great. pride1n their JOba, Sure. you flud some
eJtceptions In Rny organlzlltlon, bllt gen
erally, they'ro pretty outs.tancl1ng. '
."Sometimes I think we expect too muoh
of our torelgn We cnn't OXpect it to be
our foreign pol1!lY although it certaInly can
atd:tt,. The peace corps Iq ana outfit wbere
out foreIgn AJd doUnr ft bolM very woll
nnd thO othor oro beIng tlel1t
enoel up cona1clernbly."
Ill. tho summer, ilnd. hia fnmlly
a few weeks at a lake nclU' Ely, Minn.,
be can enjoy bis only hobby, .fishing.
HIS oldest son, Mark, 19. attendS Mankato
its
__
Ji',x'.r.tr.NStOl'f OF
Cl"
JIM WRIGHT

IN TIlE BOUSE OF"lC.':!??.'1::!:.. i.
'I'uetldo,1J. JUTlf! tl. 1m
. Mr. WRTalfl'. Mr. mthe
Mn.y 30 IlllIOO tor thQ NlltlMlIll OW ttl'l'
al,pcQl't'G Uti tntpl'l"Ottng tlntmlN\Unlj
l\rt,lctc about the work (If A.
. omcc of the 1nspt:et.oY' 'l:!!'lm-al 0:
foreign uasistanee Pl'Olln'lm.
In a quiet Ilnd productive 'II!1I.Y.
blowing a. trumpet. before tbeI!L Hr.
Mansfield IUld his depnty. Hr. Hs:uarJd.
have been pel'formJng
work for this country ami Rs
Under. leave to extend my remIl'b:. I
include a.t1;fca.
l"%...\ws 15 .
WASlnNG'1'ON,
us 'till DIlan Rusk took W PtIir
clgn Relntions. Boy, then Wi:! 1'Ut.
llownrd !l pd
I)f sm.oko ns he lit a. <ia!'k
back. in t.he big brown hratl:!er to
dlsCWlS his job lUI deputy :il::tspee't<llr 81:-
of foreIgn assbit.n.nce. 5ln'Ce 1geI:::i:'e'la...'7 01:
State Rusk had pnsen.ted the f!:m't
henslve report of" the
amee to the l5e1late Fmeie"ll Bel.l!.t'!m:I$ Cizn
wan oW' firnt formal report. nithtllll!;h
WI1 Imvu beon koopJUIf tn tQuch With the
Mr. 11(mgsl"llCl tffl14. "We htl.vo
!1. 81.1([ of 2/i Impcotors ana JWO gonemlly fiend:
It team c.C two men c:in ench job. It's a. 24
hour task. a11 over the world. We watch tor
Indications of trOUble and we move in.'!
'l'lle inspectors. tnOflt of wbom are Cirawn
from the ranks ot:the FBI. the ForeIgn Sen.
tee, ana th!i General AccountnJg Omce,
amine the ()t1tfIow ot money and goods tor
mlUtary .assIstance; . the Pence Corps, the
Agency :for. International Development
(AID), and the FOod-fo:r-Preedam program.
. :It's not 'a; del!k Job for. Mr. Mansfield imd
Mr. tollow np inapectlons and
them themselves. The
two ha.ve covered over 4.500.000 mUes since'
the program. began In 1062, though theyal.
ways travel separately, "One of us 1a
1n Walllltng:ton to keep In wlthllllr.
nullk and lUll!' Bald Mr. lIangemd.
ROW (JO!!8 tlloofflco gel;. to tho bottoftlof
'forlllgnnid . troubles? Dy perusing nil' re
porta from vlJrJOUlItllIIIlstan<;o np;enclCIr atid
by Ol(!;ImntV41 IQotwPJ'Ic. "AU rnM6agM com"
WS in l.rom tbe !lold. to ttw Pcpnrt.
mont g/). through (!\If ofltllll," MI'. Hrwg!'1'nd
. "'rben too, p!\nplllc.,rnlnJ{ In tr(JIn.
auty, m'ly ftom tbo PORCO (loft/h for l1lBtattoct.
ctrDPln nrllltu.l/f. to lUI." , . .
otton theme 1ll'0 porsons 'whl) fifO <1111..
gruntled or unpl\tlenf. with the wny a 111'0*
gram. fa being run. "SO we1ialk to. them
and try to get lends 01;1 the trouble,"
BUt It .takes footwork to uncover cases
of the m.Iimse 0% Oovernmentfunds. that
mtght nevar:be rept1l'I;ed--cMes weh as the
11>1 jeeps bound f{Jl' Thlll1nnd thnt w!!I'Obelng
t'epll1ntoll !)Vcr. II. 11U6 tn.Qwry finleh to 1;110 '
tun" of AtmUl; 'H),OOI), or tbo crM"'II of lIur
pUtl! ff.rlf//l.JipClJIl nil In Ii. Dl\hol}\oy wllt.hOlfllO.
"f.\(,!'!lflMmoo yuuJuJlt hnvo to wnlktbft
rl(lulr!l t1J !IIIO 11 t,110 ntnl1 111 IWAIl IJ"ttlUIt,Ouli
"r t.llll oountl'Y," Mr, 1l1l\lgerU!1 (lala.. 'It"n
fMr, MANl!IIl'1ru.nJ Rnd t do thIs ()ften. r
walked t:/rem for two daYIl 1n New York last
SttmIl:I.el'. You tlnd an awful lot of stUff.
cartons ot powdered mllk.machlno. tools,.
sometimes vehicles."
Somettinee tootwprk leas the man iIt II
ctrcle. Mr.. Haugerud laughed, "When I
WIUI In the Pentagon (as deputy Un<le'.l'lIeCrew
tary of the Anny for lnteroatIonal attalra
from 1961 to 19(13]. I was.gettlng np a MUl
tary AssIStance Program :fQr a country which
I will leave Not too long ago I
found myaelf durlnglUl tour ask-
lng, 'What idiot started, thla?'... ..
To !late tbero te genemltmttsJaetlon on
Oapltol HUl with tho work I.It tho afllce. 83YI
nap. Tuo.", M0lW4l'i', Ponnaylvan1a Demo.
crat llnc:l-oltllirman (){ the HOU/le l"orelgn At.
1Mm who first lntrOllu.ced the
!den fn. ID62:"X thInk it IJJ veryelfectlve.
KIlN M4Ns!'D!lJ) has emphasized <-operation
with both tbe Sonateand the House and we
knoW they're dolllg a goodJob."
Mr. Baugerud: Is no
. We just felt weeould do a.
O? ;MAsSACHUSErl'S
m TREE'OUSE OF REPRESENTATIVES
Mag 28. 1968
-DONOHUE. :Mr. Speaker, I am
to include here. for the "'ider
eminentlymerits, a most inter
revealing article by the dis
columnist, Carl T. Rowan,
appeared in last Sur.days issue of
!ili!> Washin..utori Star outlining the ac
riUes of the personnel1n: the Inspector
eaera1"s office of the State Department
I Uyingto save tone hard-earned dollars
rthe lli...merican taxr..ayer for which these
tml.k servants a.re owed the deepest
::atUude..
Mr. Rowab.'s article is especially
meiy :LYJ.d thought provoking as the
ongre3S and the people face the chal
establishing priol-il;y spending
:2I:r,da:rn;i in order tomaintain the finan
cia! stability of this country. 'Inhel'ent
in this recital is the silent adnlOnition
to all custodians ofthe i;?-xpayers'
to "go now and and I
eamestly hope the admonition is clearly
heal'd and fully observed throughout tbe
/whole structu:re of our Government.
.The article follows:
(By
One day last May two from the
otnce of the State Inspector
General for Foreign \';e1"C wall>:ing
through a warehouse In Buenos Aires, Argen
tina'They found 18 large craies of Y.oo1 kits
that the Defense Department had shi.pped
to Paraguay's Ministry of National Defense
m.ore than nine earlier.
tIle Inspector General's Office {IGA}
the Defense t.he cmtes
reached their
inspectors
year c!iseovered that
national Development
the shipment to the nl)minllCaD
James Bond lunch-kits, dolls' eyes.. doTIs'
hair. cocktail ehampagn9 gias...."6.
chrome hub cap", tl>Y snekes. and bu;:fl>!e
gum. ..
There were $64.572 v;Ol:th of it=on these
VOll!:he1:5 that AID later determmed .,ere in.
-eligible for aM fo;: Whb."h AID
cla.i.med rc1mbursemeat trom t.ne Dom!niean
:Republiogovernment.
3une. IGA
docks of \'Veebawk!n.
tons of chains -that had
Pakistan in 1965. Tne cha.1ns
Pakistanlast. September.
Prob!lbly the tllost U!l;o'"1.l!lg
In the U.S, goyernmcnt are of
IGA. T:'le 23 men who work .1. Ken.
ne""&h ManSfield, the lnSproto: a.-m.
his deputy, Howard are the
scourge ,Of the v;orld
othem-to face
- The,. have. also enouzh
barrassmg situations in time for the3 be
corrected to. prevent "the entire fOZ"e:::::l a!:i
program froiD. going do:wn the drain. i" mis
economy-minded CO!1gress, only i;he =:.st
dramatio evidence that the State
15 elfec'".lvely policing our mllitary 'anc e:o
aid programs bils kept the afd
programs &tive--wea.k though they are_
'It wuan IGA ot!lcer who tipped of[ tmmer
Defense Secretary Robert l'.lci'laI!la=a
the . mllitary was shipping ridiculous
amountsot: whisky into Vietnam,
The chOicest brands of scotch. l!q:uO!'S.
and wines 'I!I'eI:p poured into SJl,lgon In such
profusion that nobody knew how much was
where. TJlen an IGA man came upon a
mountainous that the SO\1.th Viet
namese were about to auotlon off. Tnat;
brought the stream of wlJlsky for. Vietn:ua
to a slow trtckle. .
It was also-an IGA team which diseo?ered
that. although only 750 women in
were "eligible" to huy hairspray at U.s.
PXS. the Pentagon was shipping in
to200.000 enen month..
An IGA protest stopped these exorbitant
lihlpments-.-end deprived the GIs of a. fa.vor
Ite bargaining commodity ln Vietnamese fun
houses. .
These IDA otncers. who shun tlle t!me
light. are not always viewed as a plague by
our mb!sIous overseas. One team went to
Peru last year and raised some ha1:5h ques
tions about lavish plans for It student union
building a.t the L!l-MoUuaagricultu:rn.l Ul'..i
v!rsity. Not only were the top iStor'.es of
t!l.e building postponed, at a saving of. Sl.
250.000, l:nit a seDlor AID Ofiicl:ll m. Lmla
.
E..."'CTENSION OF RELV.Jt.RKS
OF
RON. EARLr: CABELL
OF TXii.S
IN THE HOUSE OF REPRESENTATIY1::.S
Monda:iJ,FearuaTY. 1967
Mr, CABELL. 1vIr. Speaker. r2Cfontly
Dallas had the pleasure of beinghos: t,:> a
alticulate and well-received
Department of .State. The EC'::l1
arable Howard E. Haugeruq. the DeP'lt:o
InspectOr"'Oe'ileia:rot1rorei1fu
addressed a convocation at Bishop OJ}
and also a. joint noon luncheon of the
and Rotary ClUbs. As you b,c-;;
1.fl'. Haugerud's office inspects and e,::1,l
uates military assistance, economic
sistance, and Peace Corps progra.'TIS &t!
o,er the World; and her...asa unique
portunity to be conStantly aware of
relative successes and failures of theViC::'
iOllS progrems. talks,' as vleU as hi:>
appearances on television andradio, vere
enlightening and gave many of the ffi:ti
zeus of our area'a better -insight hI;.:,
these uudertakfngs. A great marcy of 0::'1:'
people were delighted to learn tha.. 'we
had a l'ealistic and no-nonsensa mS.::l
such as Mr, Haugerud as a watcl:!.do;;;;
over these farflung programs. Du:::-ir_g
his visit he was interviewed by l,11'.1""11ko;'
One of our very fine editorial
writers on the Dallas Morning NeViS. ::.!r.
Engleman's stOry is one of the most suc
cinct and penetrating analyses of the
lGA office that has come to my atte!ltior"
tmd 1 recommend it to Members of Co::,
gress and to other readers of theREeD!'.::).
Under unanimous consent I include in i:
the AppendL'{ of tlie RECORD.
lIAuCERUD: LESs FAT FOr. FOllEnn. A,:>
(By Mike Engleman)
Until iate last May Howard E.
had a quiet,. but exhausting job.
Hallg<,rud's relatlve anonymlt.y Cfime i;;;> 3.
sudden end.
On May 23, Secretary of State Eu,,:;;
un,eU..,-d the of the ot::lce of I:l
SpEctor General of Foreign in
to the Senate Fore!gn Rela!;ioZ'-s COrr1.
The ofiice, explainad t:!1e.
taxpayer millions of donal'S."
Eaugerud is Deputy Inspector Oencza1 of
the office. Although thri areca ch!er is J.
Kenneth bo:th he an.d
ha,e the 9rune rank (assistant - or
state) and both make the stme
($27,O()O). This is beea.r.se one or the;,l
usually out of t.he country. EaM
165,000 air mUes a year (alwa-y's
economy cIasa) inspecting- theiar-f!\Ulg:
of our foreIgn-assIstanee missions.
Thelr smP.Jl, 40-.llllffi office {which
or,ly a third Qf its budget e-ach.
an impressive record since was
created upon the urging Of. Congress in 1960.
With SUCCe3ses like:
Discovering thHt an undersea cable be
tWe,::n Tunis and Eicllj.' built v..11:.h US. assist
ance for NATO has yet to ca!":y it.. tlrat:
,
..Uat!on. of a $40-mffiton d!lro
in '

Q:z-e:;;ti-:}:>::'.!-..!r.. E'):l!gerud. \,\wh:t'C is
erel o! tr.J:s nation's

A=,,,::-;
c:} "
how m1..:ch
tax,P::tyer
h":-,, b;;!'!l WlllbIe to c,)me
..,.. believe to be honest. re
b,,,, had figure" ranging from S50 to

""-,='.fld It be correct to
unusual .for an executive ollice to
hsn, tl.ds lU'e-or-death RIJ.!;hOrlty?
Ye;;o "If.! my Imowled.\;;e it Is unique ill aur

Aj;)p.:l.u:r..tly it is this autho:tlty that makes
so successful in cuttIng the fat
lara Why don't the in-
of othe:t .1'edercl de-
like the Department' of Agdclll.
this ga,me power?
not eompet,en-& to comment on how
operate. But 1.do know
the authority we had giv...n. us
oW' ".ork would be nluch more
might be l.1Seful In
is some:tblng Con-
our raspolls1bilif;:.les
N,'.. and ei."'ryone Who,
!s,w can uuderste.nd t.hr:m. Tl}fr
s-::::;r!ce know that a.. nUT:.l0i:r
oot:l'1.nl!ttEa chair<
n:e:1. h"l our 'V.-orl;:. and

the :YU!'Su and can
be an .agency it they ':JE-Ue-ve
c:pe<1.ting ma::dml1m
eccn::"z:l! a:::,;i e:::;clE:E",:'::T_
1..!cs:: llave p.luch larget'
'tX;.:"t you:-s
1 on tbe hllI [0=
cr _TLl=re. COn.gTe5'sIOn.f!1
::.:t:: s1;",:::-;3.1 ..:;,r('d. to t.he
we ::tte US!:ti t<c 't'.,,ork!ilg
t;.1!,. g-!3.:t:!ng tCgf c.. top.
:trs;!'d' anu'1:r:.oxir:.g '\";'hut
4'If :c.i,l do E'')
with. 40 l:"l?!l, 80 .:.nd
rts !nuch L1C:'lCV'T? TI..erc is S...
r:.lc:rlt to' tuts view, but the draw
i:.ltCks t:1.0' udYa:"!.'tcges :t
haye.
Does the talk ab<mt hll:nlng off
1i;;llts and saving. paper clips rer,l1y l':romote
much Economy in goverr.ment?
One of the that has b,'eil intcll
slyely 1"1e1ZJful to U-S in be:ng able to tighten
up vnrio\l:s is
Presldi'l1t Johnson's CDllH!luing pc:rsu114il in
sistence on 111uxin1.um economy z:nd Effectiye...
11ess.
Turning of! a few lightS in t:he Wbite House
may not t.ake very long, but the .
is not lost on these who are spending our
overseas",
There haS 'been a great. deal of comment
!ately on what appears t.o be great quantities
of US. gcoos ending'up on the black market
or in the hands Qf the Viet Cong in' Viet
Nam. How's this happening?
I think the sheer volume of materials
going into Viet Nam make w1.ne of this in
evitable. In the past; we tried t-::> d.,pend to
a great e.:>:tent on the Vietnnnl:se to handle
these commodities. They just did not have
the and capability to do so. Now
our military Is taking oyer th1$ function and
we have seen SOllle lInprovement in tIle past
I!lonths. .
As you know, our cmmnodityimpor!; pro
grarl1. ....ill probably run to more than $500
million, These are the items tbat are im
ported by Vietnamese busine..<:Slll8l1 for sale
to the p\lbliC at prices lUed to help stabilize
the economy. I speak now of commvdlties
such as roofing, cement, ms,cbinery. drugs,
stuffs and other items needed for Clay
consumption by the populace.
tlInes the diversion of these goods
exaggerated by the press and tele
reporters because of our marking
Heretofore, tIl.e AID handclasp
stenciled on or attached to all com
whether tbey were by grant, loan
import for sale, This led many reporters
believe that each time tliey saw the hand-
on an item for sale it was a part of
market.
We have now.recolnlllended that AID stell
ell below the handclasp the notation. "'I'his
item imported to be sold, on til0se items
Imported for sale. 'l'b.1s wlIl clearly Idelltt!y
Uien:t as goods to be sold and not or
loon items lost t<> tiie black
How much inAmerican goods 1$ lost to the
va and the black market?
is a; diflicUlt question. I can't, ingood
conscience. give a figure thl!t w01ud be ac
cura.te.
Would you say it was a lOth of all cn1'
imports?
I don't want to use .figures I can't StllJstan
tiate.
We have run Checks on
ties being mo,'ed between "nd the
va.'<'ious In many cases the losses
I menticmed earUer have 'b<aen
oom:pleted nnothey'such
cheek after mcde a llunlber of reco!n
mell.dat!ons a year and we find the .situ
ation nmch
These losses must not only be a.ttributed
to tbe but also to Viet
tbe pro;lnce level by
13493
CONGRESSIONAL RECORD - HOUSE
This Austr:lan grain ease is but one of
.. Qf TI1E I,N"SPECTOR OEN
the lllaD.,1 examples of the things the
9F'F9REQN
Inspeeoor General's staJf is doing to help
(Mr. MORGAN (at the request of Mr.
assure the w:i:re spending of our tnx
ALBERT) was gnmte<ipel'.ltlission to ex paye.--s' dollars.
tend his remarks at this point in the
CElAl!.GES 28 CoNcERNs DIvEllll"Ell
RECOllD and to include extraneous 113,'1 OF GRAINs Anmn FOB AlJS'rBlA
matter,)
NE'W YmtK.-The Government charged. 23
3.'11". MORGAN. Mr. Speaker. I insert
'With illegally diverting to unau-
In the REcoaD an article in today's WaH dest:l.nat1ons more than $13.7 mil
qfref't Journe.J. concerned with action
,lOIn of Government surplus t:arm CODllIlod1
1n.'.;r." by tht' Government til move to re
lCles that should been sb1pped to
1":,,'..1" nbuut. $3 mmion wm'th of
Gm-emment Is seeking. damages and
and p,'nulUf'S from 23 company!'!;
$3 million plus Interest In
cn:tr';I.'d with diverting more than $13.7
, c'!!Til suIt filed in Pederal Iilstrict court
mHH;:ln worth of U.S, B!l1'Plus farm cum
=n York.
modit!;:;:; tha.t were supposed to be
of the defendants were accused of
to Austria. but which never got fraUdUlent proof of ahipment to
, ,
._ or: the commodities. mainly
Ti,ts action represents the culmination
gra'::IS. were exported to East Ger
uf more than 2 years' of extremely hard
and CzeChoslovakia. the Government

work Us the Deptu'tment of state, the
_Th: commodIties Involved were Obtained
and the De- _t:he U.S, barter under
Ule concerns agreed to sell to the
I ten one part of I,his story which
strategiC minerals and other
I t_hink may be of parl.1cuiar interest tv lD excluu:lse for the surplus farm
Un'S RO'Jse. tinder thJs prQgrS.m. the baxter con
Yo'.! wnI reca.n that in 1961 the Com
L"aCtOn; "greed to ship the agriCUltUral com
!!l00tt'.es to Austrilt. w!:i1ch :ia one nation
mittee on Foreign AffaJrs of the House
IUl an eligible reclplent in the
. decided there was a need for a; top level
l>;U"".a' plan.
The ba:rter oontracts provide -that it the
aren't Bbipped to the proper
watehdog of foreign in the
the contn!.etol" ahaU pay the
executive braneh-,a.n omce which could
oversee the operations Of our economie
damligE!S oi 7or percent of the
and mi1"'uary assiSta.nce programs the
valnE o! Ute diverted goods.
Peace Corps. and Public La.w 480
Each o! the barter e<mtracting companies,
aet!ntles.oo
the suit said. authortzed and de&1gDated an
The eemrnittee. of which I have the
agent to recefve the commodities :from the
honor to be chairman, thereupon took Govl!'rn.ment.'s Commodity Credit Corpora.tion
to crea.te this office by on the com.panys behalf and to eltpOrt and
statUte. a.'1d It;. repoJ.-ts directly to the
oe11...8 the goods in accordance with the
Secretary of State.
..
Al..LEGA'l'IONS OUTLINED
The office. in other words, was created
Tce GCTI'.':l'nIllent outlined. the alleged v10
by the CongTess. It has also been run
h> separate causes Qf action in
br mer:.,no are alumni of the congres
-'-he SU:'C.
SIonal ",aft!=;_
:In t,he first, 21 concerns were accUlled
Mr. J. K. l'.fansfleld, the Inspectol'
2?8.736.93 metric tons of c ;onmodi
Genernl of Foreign ASSistance, ably
ties unauthorlzed dest:l.natlollB. The
served on t.be m:e1l of both the Joint drunage!; asked for the alleged Violation total
Committee on Atomic Energy and the.
GovernmEnt Operations Conunittee be
The seo:><::d eight 01. the barter
Ir,re talrJng on his present assignment.
mtl ... couqJal)1es shipped. 20,433,64.
metrIc U)DS 0:: staples to East and
Mr. ..K Raugerud. the Deputy
CzechQS.loF.Jrfa. without obtaining a license
reneriil;"a1S5'bad a distin
-.he Department oi Commer, aa re
grushed record of service as assistant to
quired by law. The Government the
our now Vice President and later as a aetfon of these eight concerns resulted. In
Senate committee staff member. damages o:fl243.08Q.
The Members of this body should know The third section charges three companies
that muel: of. the complicated detective
maldng "false and untrue" .representa
bons to GOYernment in attempts to
work reQuired tounrayei the facts of this
prove the com.modities were shipped to the
massive g:min diversion was done by thl'l
proper poi!:n;. Damages totaled $773,072, but
Qffice of the Inspector GeneraL
the asked 10r double damages.
was tbis Ofiiee which first
or $546,141), PLUS penalties. The penalties
thIS case to the attention of the would a;mrmn1; !.O $158,000. Artliur S. Ollck.
of Justice in early 1963. asststant U.s. said.
. Over lJlt': i'1'<tt 2.! years. the Omce of
the Inspector GenfuQ,! tl!' kTorelgn As
sistance of the Department Of state, a!ld
the Inspector General of the Department
?f have cooperated closely .
m a JOlnt lllvcstigation of this matter
bl:\s taken them on inl'eStiflatiollS
nlI ovt'r Eumpc in tl'acking down c!u!:'$.
. r t,hillk the Membt>rs of thi.<; How'!'
:'lln j,ake Jw;t j)l'id(> tn Lhe fa.ct that it hut!
.llt' fm'('lIwftL 1.0 the: Offlc{' of
!j", 11";1>",,1.01' Cit'IWI'lll.
ARE LISTED
The 21 concerns cbarged with diverting
.commocUtiesto unspecUied unauthoriZed
destl.natiOIlS, and the amount of damages
sought by the Government, are:
American Metal Climax Corp. $10,89&.63;
Assoolated CommodIty Corp.. $1li.000; AIlsoci
atell Metals 8&. Minerals Corp,. $32,598.87:
Ayrton Metal 8& Ore Corp. $8,70.1.17; CaJa
brian Co., $182.982.73; Ferro Metal.8& CbemI
cal Corp $2,286.81; 111. Golodetz 8& Co. $155.
046.4.Ii; Greg-Gary Corp:. $14.061.48; Huxley
Westfr1ed Carp.. $34.622.13; Interna.tional
Ba.rte:t1.ng Corp., $64,734.83; Leytess Metal 8&
Chem1ca.l Corp.. $31,170.39; Lieber and Solow,
:In<!.., $6,690.1'1; MreantUe Metal 8& Corp..
$53,613.15; 8& Chem1cala Phil1pp
Corp" $214,495.57; Overseas Metal & Ore
Corp .28.497.18; Henri Polak., $19,438.93;
Prtma:ry Metal & MIneral Corp" '41.598.26;
Leon Tempelsma.n & Co., $33.238.22; C. Ten
nant & Sons of New York. $45,751.66: Van
ltanie Corp., $4'1,'12UI1; and Harry Winston.
Ine" $43.596.63.
The- elgbt concerns charged with dlvertmg
commodIf,1es to East. Germany and Czecbo
slovall:1a without obtaining Commerce De
partment licenses. and the amount of dllm
88e& cla1med.
Assoela.ted Metals 8& Mlnerals $57.
2(14,10; A7rtOn :Metal 8& Ore Corp $13,419.62;
M.. -Golodetz 8& Co. $59,116.25; International
Ba.rterlng Corp" $31,268.28: Mercantllo Metal
8& Ore Corp., $13.728.03; l\/I1nera1.s 8& Cl:!emI
cats PhU1pp Corp Overseas Metal
8& Ore Corp., $12,949.22; and Leytess Metal 8&
Cbem1cs.I.Corp., $11.039.'11.
The tbree concerns that allegedly diverted.
. commoditIes to Ineligible foreIgn countries
and allegedly submitted to the qovernment
falsIfied proof of .shipment to A':1strla, and
the mngle damages claimed, are:
Louis Dreyfus Corp. $611.424.99; Interna"
tiona.l Bartering Corp., and
son-TeJcher Inter American Corp. $45.823.86.
The suit asks that each o! the three defend
ants be ordered to double these dam
ages, or single damn.ges plus "such other fur
ther reliet as the CQllrt may deem just nnd
proper." The penalties oJalmed agaInst
Louts Drey!us Corp; toml .132,000; against
International Barter1ng $24.000. Iffid against
Binason-Terober $2,000.
. C>.I'O HEELS 01"
The suit came on the be&ls of the
tencing o! C. B.Pox Co., New Orleo.ns. In
Federal court in New York on criminal
cb.llrges o! diverting t:eed grains that .should
have been sent to Aw;:t:ria.. The concern
pleaded guilty, ani! its sentor partner, WU
loughby Bares10rd Fox, pleaded no contest;
each was fined $10,000.
An official or the Federal district court In
New Orelans said yesterday Ii cIvll sutt slm
Unr to the New York sutt against the 2S
companies was filed against C. B. Pox Co
Also named as defendants were Willoughby
B. Fox, W. Brooke Fox and Richard B. Pol<,
A statement. isSued by American Metal Cli
max Jas1; night said. the compiUiY "doe&n't
expect to ultimately pay dlIIIlI!.ges as a result
of thl.s action, even If Ii diversiOn I.s found tc
have taken place." . The concern explained
that nnder the terms of its contl:ac.t with tbE
broker that acted for Ameriean Metal ClI.
max. as agent, "the JreSPQns1bU1ty lIes witb
the broker." The statement sald. "Ameri'
can Metal presently hilS ,no
whether the grain was in taot Imprnperll
dlverted_"
J ttst 7, 19(;9 CONGRESSIONAL RECORD SENATE 89385
Served I!.$ judge and fll:m.
CODJtestsfororganfza.ti.oll8. such as F,ann
Fillu..Founda.tiQn, Nat10naJ
Federation. Farm Bureau, Na.tionaJ. Xnter
fraternityOounctl.
IN ORG!!.l\fXZATxOm;
Ya.1e l3rOadcaat1ng Oom
plmV. lvyLeague Network,
l3oa:rd Mem.ber. Arrow, Inc.
Assooiationof American Indian Affairs,
Indian Coonoll Obicago, National Con
gress.of AmeI!l.ean. Indlarul.
Rot..al':lan.
:Miaoon.
National Republican J:>arty.
Oolumbia. University Club.
'I'rusI;ee and Lay Leader Church.
NeW York Boord Syracuse University
Alumni Atlsootation.
Farm Bureau Federa.tlon.
Na.tlnnaJ state and LooaJ Grange.
Boy.Scoutsof America.
College EcUtors Association.
College F.mternity secretaries Assoeiation.
Da.irymen's League Associa
tion.
New York Exten.stonServ1ee.
MidEastern Cooperatives.
New York Sta.te India.n Vlllage Associa
tions.
N'l"iV York Advertising Club.
AmericanF'u.nd Ralsing Council.
SyracUlle University, Sigma Delta Obi Jour
nalistic Ooopemtive Institute Assoclation.
Cl:lB.ir:!:nan of Board of Trustees. Zeta Psi
Educational Foundation.
FORMER AlI'FlLIATIONS
Form.er Cbail'lJ;:ul.n, Youth Committee, Na
tional MIlk Producers Federation. Preliently,
Chairman, Indian Committee, Na
tiona! Boy Scout Council.
OrganiZed.Indian Scout. Leadership Oonfer
ence 1969 (Uth year). Chairman, New York
State Rural youth Organization.
Cha1rman, Bul!iilessCommittee; Leg.Is1ative
and Ex.ecutive Oommitteeof Nationa.l Con
gress of American Indians.
1:950 NIt};!P1:W..
gress .American Indians. New YorkSl:;ate
D1rectorInd1an Youth
bet; State Oo.UMil.of
Council Of .Oh'l:1:rChes. RuralChuxCh. Insti
tute,National FellOWShip Of IndllmWoX'k
.. :E';tilSident, 8ix Nation Indian Association.
Obll-irma.:o., of Interior Kl"ug's Ad
visory Commltteeon Indian Affairs.
Member of Governor Dewey's Oommittee
on Indian Affa.irs. Member of Governor's
Comm1ttee on Mid-Oentury White House
Conference on children and
Assiste4 WlthorgaIllzhig National Ameri
can Indian youth Conference-.1961.
Oha.i:r:rl:miti, National Indian HollSiug Con
ference 1n Washington, D.C.
Former Pr"..l'ddent, Vice Pres1dent, Treas
urer, Regional Director and Ex,pansion
Ch!l1rman of Zeta Psi li'raternity of North
America.
Former Participant North AInerlcan Indian
Seminar, University of Toronto--1938.
Board Cooperatives.
NOTICE CONCERNING NOMINATION
B'lllFORETHECOMMITTEE ON THE
JUDICIARY
PreaiClent, the
following nomination.has been referred
to and is now peneling befQre the c<>m
mittee.Qll the Jndiciary:
Fred:erlckB. Lacey, of New Jersey, to
b? U.S.alitorney for the district of New
Jersey for the term of 4:yea:rs,vice David
M. Sam,Jr., resigning.
On.be1mlf of the Committee ontbe
Judicia.:ry,notice is hereby given to all
persGnslnterested in this nomination
tome with ;the oommittee, in writing.
on or befQre Tuesda;y. August 12, 1969,
any representations or objections they
may w:lsh to present concerning the a.bove
nominat1on, with a :further statement
whether it is their intention to appear at
any hearing Which maybe scheduled.
COMPLIMENT TO OFFICE OF IN
SPECTOR GENERAL OF FOREIGN
ASSISTANCE
Mr. JACKSON. Mr. PresIdent, it gives
me a good deal of pleasure to oo1latten
tion to an article on the Oflice of the
Inspector General. of Foreign Assistance
written by Mr. Blll Andronieos in this
week's Federal Times.
The. article rEWOrts on the activities of
Mr. J. KennethVan.sfield, the Inspector.
General, and Mr. Howard Haugernd, the
Deputy :In.spectOr General, and theiJ.'
highly competent statI. I am particula.rly
pleased to see this Offi.ce receive this kind
of recognition as I have hactlil>very close
personal as well as professional associa
tion with these two men over a. period of
many years..Both Mr. Mansfield and Mr.
Haugernd served wIth great distinction
on my SUbcommittee on National Polley
Machinery beginning in 1958. Mr. Hauge
rud remained on mY subcommittee staff
until 1961 when he was appointed Deputy
Under Secretary of the Army for Inter
national Affairs. Mr. Mansfield served
until 1962 when he was appointed the
InspectOr General of Foreign Assistance,
Congress and the taxpayers can be
grateful that we. have two .such dedicated
and talented men keeping an eye on our
far-fiung foreign assistance programs.
Mr. President,! ask unanimous con
sent to have the Federal Times article
,1nJ;Iertedin the CONGltESSIONAL RECORD at
tIll!li:romlL .. ...... ...
There being no objection, the article
was ordered to be Pr:lnted in the RECORD,
as innaws:
WA7CHnoo FOR FOREIGN AssIsTANCE
(By Bill Audl:onicos)
WASHINGTON.-Pl'obaJ::>ly one Otf .the m.ost
unsung group of people in the federal gov
ernment is the staff of 1;he Sta.te Depart
men.t's office of inspector generalOtfforeign
assistance (IGAl-the B001lrge of bureau
cratic incom.petenta abrOad.
Hidden awav on the 6th floor of the State
Department 'bUnding,IOA quietly has gone
abOut its a.uditing and 1nvest1ga.tivebUSinesS
of uncovarllig waste :in foreign a..osistance pro
grams without too muehfanfare.
.Aetua.lly, IGA first ma.de the heo.dJjnee 1n
1966 wben then Secretary of state Dean
Rusk gave theSena.te Foreign Relations
Committee the first comprehensive report
ever made by the iuspec:tQr general's ollice,
which had been founded in May, 1962..
It was tliat well-dooumented report .tha.t
took the Wl'aps oft' the little-known :invest!..;
gativeagenc:y. Until then, there were not
n:umy people--not even :in Washington-who
knew just what IGA did.
At the helm of the IGA office are two men
who eame to the State Department with
outstanding experience :in international af
fairs. They are J. Kenneth Mansfield, the
1nspeof;or general, and Bowaro. E. Hauge
rod, the deputy inspector general. Ea.ch
holds the title. of l'IoSSlstant secretairy at state,
Which carries with it a.saJary of .$88,000.
Mansfie1d" w1lD is 47 years Old, first came
to WflShington in 1950 1;0 serve as std di-:
rednr of the mmta.rv applleatiOlllll BUboom
n:llttee of the Joint cOngressional Committee
llIl AtQmie Energy.
Attar a three-year stint with Com,bustion
EDgineer1ng, Inc.. :in
returned to Washington :in 1959 1;0 serve ss
staff of the -Taekson Committee iJi
the Sens.te which 00Wlueted. a st;uiy of the
staJDng and. organ.iza.tion of the federal gOV
ernment lJ:l the a.rea Of Dationa.lSOO11dty.
Ma.nsfleld or1g1naJly balled :from. Chicago.
Ha.ugerud, 44 yea.rsold, had served as dep
uty under sec:reta.ry of the A;my for
national affairs before joining thl;) IGA Office
:in July, 1963. A natlve of Mtnnesota. Hauge
:rud clime to Washington :in 1956 to Join the
staff of the then Sen. l!ubert Irtunphrey.
In an interview, both menilldleated they
enjoy their work, uncovering abuses and _
waste in foreign i!l.!iS1stance programs. And
While Mansfield and Haugerud both log
about 185,000 air miles an:n.ua11y, they prefer
to praise the work of their staifmther than
talk about their own experiences.. .
l\!fsns:!!.eld boa.s:'".ed that IOA has "the most
pro:fessio;nal and competell>t staff :in govern.
ment." Haugerud p:rompbIy, added that "the
credit for our work m:ustgo to ourstafi."
AInongthe IOA staff of 38 employees _
23 inspectors who tmvel a.round the world to
exam:inethe outf!.owafmQlIl.ey and goods for
milltary ass15tan{le, the Interna,
tiona.!. Development, . the P,a.ee Corps, the
Food for Peace program and the like.
Most of the lGA tnspectors _ dra.wntrom
the ranks Otf the Federal Bureau of Investiga
tion, the Foreign .aervtee, the. General Ac
counting omee.. the legal. profession and the
armed servj.ces. Those Wlthex;perience in the
military investigate the military assistance
prograIllB.
Since May, 1962, Wilen Mansfield began
organJzing the lOA staff foilOWinghis ap
pointment, his personnal have :flown more
than 5 million mlles---aJways in tourist olas&.
With a travel sehedu'le of rrueh magnitude,
, there have to be ri.slts. Nevertheless, only two .
inspectors haw been lost toda;te--O.sea1- C.
Holder and Sidriay B. Jacques were a.board. a
Nepalese plane 1<ba.il struck a HimaJayrm
mountain peak:. a.t the beigb1; of a violent
storm.
:In out its .investlgative actlvities,
blgllly j;J:lstrumental in
prodcUng
erack down on abuses in Vietnam, where
there bas been black ma;:keting :in. post ex
change supplies, cUrrency manipumtion,
profiteering by VietDmnese merchants
the[t or other diwrsion of U.s. goods shipped
to that Aslan nation.
Actually, the IGA h.asa.uthority to "sus
pend an or any part of any project or opera
tion" under foreign aid, military aid and
the like,after conduMing an lnvestig&tion.
provided the in.speotor general has given
written notice to the Seeretary of Sta.te. This
authority WllfI !P'a.nted lOA by the Foreign
A.sslstance Act of 1961.
The suspension remains in force until
either the IGA or the Secretary of Sta.te
orders resumption of a particular project or
program. .
Whlle they have .found instances of foreign
assistance waste, both Mansfield and
Haugerud are a.lso proud of the ",ork .by
American federaJ.etnployes abrOad, par
:ticularly those in Vietnam who often carry
out their duties a.t the risk of injury or
death.
Mansfield said that during his OVenlen.s in
spectIontours, he had been "tretnendously
:impresaed by the quality of peoplevrorking
:in foreign assistal1ce.progrg,ros."
"They a.re a dedicated lot," Haugerud said.
"Most of them try to do a good job under
prettyadVBrse oond11;ious."
Butwful,t of the actual work of lOA? HoW
does tbeo1llce uncover fureign ald i;roUJ::>leli?
It does so, :Ma.nstleld &lld RaugCl"U(i explain,
bycarefUlsorutmy <!If BMl1ePOm from various
assistance agencies li.lldby exte;rJaiw foot
work.
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