The Government of Nicaragua has effected a similar credit through the Export-Import Bank of Washington in the sum of $3,700,000 for highway and bridge construction which is now under way, and for which the Public Roads Administration is furnishing bridge designs, some surveys, and a limited amount of supervision of construction. The Government of El Salvador has recently completed arrangements for an extension of credit sufficient to build the section of the Inter-American Highway lying within its borders between San Miguel and the frontier of Honduras by way of the important port of La Union. The building of this section will provide a bituminous paved road entirely through the Republic of El Salvador, a distance of 181 miles. OTHER PAN-AMERICAN HIGHWAY ACTIVITIES In South America, the Republic of Ecuador negotiated a relatively small loan to construct roads in the southern part of the country in the direction of the Peruvian frontier and to give access to a large potential rubber area near the northwest coast. The Public Roads Administration is furnishing assistance in connection with this project, which is being handled direct by an American contracting firm. The Republic of Bolivia, through the Department of State, has requested the assistance of an economic mission to study the larger production of foodstuffs for domestic consumption and the possibilities of greater and more economical production of tin and other minerals essential to the production of valuable alloys. The Public Roads Administration has been requested to furnish two engineers in order that the road system of the country may be properly developed to serve the potential agricultural areas and the existing and projected mines, so that the services of the economic survey may be adequately accomplished. The engineers for this work are now going into the field. The Cuban Government has negotiated a loan, through the ExportImport Bank of Washington, which will provide, among other projects, for the reconditioning of the Central Highway in Cuba, approximately 750 miles long, and the construction of a considerable mileage of lateral roads in connection with the establishment of subsistence farm areas, land redistribution, irrigated areas, and newly established rural hospitals. The Public Roads Administration has already made a detailed report and laboratory tests incident to a study for rehabilitating the main highway, and is expecting to furnish considerable additional assistance when this project is put actively under con"truction. AMOUNT AUTHORIZED FOR PROJECT Mr. WOODRUM. Under this item, $100,000 is authorized to be used from other funds. Tell us something about the progress you are making on that, Mr. MacDonald. Also we would like to have for the record a statement of the expenditures made under this authorization. Mr. MACDONALD. I have prepared a summary statement. Mr. MACDONALD. There had previously been $1,000,000 appropriated for construction, Mr. Chairman, up to the time of the new bill that was passed recently which carries an authorization of $20,000,000 for cooperation on a two-thirds-one-third basis. Mr. FITZPATRICK. Is that the road from the Atlantic to the Pacific? Mr. MACDONALD. No, sir; that is the Inter-American Highway. Mr. STARNES. Has that bill been approved by the President, Mr. MacDonald? Mr. MACDONALD. Yes, it has. I have a series of maps here showing progress in each country, but you will not wish to go into detail. Mr. WOODRUM. No; unless some member particularly wants to ask certain questions as to the details. Mr. MACDONALD. The maps indicate the progress that is being made. I will say that about half of the road from Laredo to the Canal is all-weather road now and work is proceeding in the other countries very well. Mr. HOUSTON. What was there to the statement that was made, when I was in Central America recently-I will not mention the country-that they were charging about $50 to $60 a cubic yard for excavation, that an American engineer was sent down there, and found that the cost ran anywhere from 60 cents to $3, and they threw him in jail. They let him out when we were down there. Have you run across any scandal like that? Mr. MACDONALD. I would not know how to account for a statement of that kind. The work in Panama, on the Trans-Isthmian Road, has been handled under the direct supervision of the Public Roads Administration. That is a road across the Isthmus. In Costa Rica, the work has been handled under an engineer of the Public Roads Administration. It has all been handled on a force account basis. There have been no contracts let on the work in Costa Rica, and the same thing is true in Nicaragua, where we also have engineers of the Public Roads Administration. The only way that I could account for that would be some old contract that had been let in some previous year. Otherwise, there is no substance to that. Mr. HOUSTON. You are not familiar with the incident at all? ADMINISTRATION OF PROJECT Mr. STARNES. How is it contemplated that the administration of this Inter-American Highway will be handled, as well as the actual construction of the road, particularly since it seems that we are to put up the money for most of it? Mr. MACDONALD. Very similar to the way we are cooperating with the States, through the State highway departments. In each country they have a public works administration. Public Roads supplies a field engineer or engineers, to cooperate with the public works administration of the country, which also provides the labor and the labor supervision. We do not supervise directly any of the labor in those countries. We provide engineering and pass on the bills for expenditure. Mr. STARNES. You approve the project when it is through, do you? Mr. MACDONALD. Yes, sir. We have a division of the Public Roads Administration called the Inter-American Regional Office which is set up to take care of the details of these projects. AMOUNT AUTHORIZED AND AMOUNT EXPENDED Mr. WIGGLESWORTH. How much has been authorized for this road? Mr. MACDONALD. There has just been passed a bill authorizing $20,000,000 to cooperate with the various countries. Mr. WIGGLESWORTH. Is that the total that has been authorized for this purpose? Mr. MACDONALD. We had $1,000,000 appropriated for construction previously, and the cost of the work that has been carried on so far has been supplied by the countries, outside of the limited engineering assistance that we have provided and paid for. Mr. WIGGLESWORTH. How much are we authorized to spend for this purpose and how much have we spent to date? Mr. MACDONALD. We were authorized to expend $1,000,000 on construction. Mr. WIGGLESWORTH. How much have we spent? Mr. MACDONALD. We spent the $1,000,000. Mr. WIGGLESWORTH. Where does this authorization for $100,000 come from? Mr. MACDONALD. That is for engineering assistance. Mr. WIGGLESWORTH. Where is the authority for the $100,000 expenditure that you are now requesting? Mr. WOODRUM. I imagine that it would be the general authority of the Public Roads Administration to administer any acts, giving them the money for administrative expenses. Mr. MACDONALD. Yes, sir. This is not an additional appropriation. This is authority to use our administrative funds. Mr. WIGGLESWORTH. When will this road be completed? Mr. MACDONALD. The work could be completed in about 5 years, carrying it on at a normal rate. ASSISTANCE IN CONNECTION WITH LOANS TO CENTRAL AND SOUTH AMERICAN COUNTRIES MADE BY EXPORT-IMPORT BANK Mr. WIGGLESWORTH. In your justification, you state that the purpose of this authorization is to pay the salaries and expenses and other necessary expenses of engineers and their assistants in connection with the Inter-American Highway and for assistance in connection with loans to the Central and South American countries made by the Export-Import Bank. What does that mean? Mr. MACDONALD. The Export-Import Bank has been loaning Central American countries, and some of the South American countries funds for various purposes, including the building of highways. The Public Roads Administration has been brought in to provide engineering assistance to the Export-Import Bank. Mr. WIGGLESWORTH. That is covered under your general authority? Mr. MACDONALD. Yes, sir; we have general authority to do engineering work for any department of the Government. Mr. DIRKSEN. Does the basic act give you authority to undertake a survey for the purpose of promoting uniform traffic rules? They have left-hand driving in Panama and also in the Argentine as well as in a number of other places. I can imagine difficulty in the future for some of our people on that account. Has any negotiation been t on foot that would have in mind working out uniform standards y the time this highway is completed? Mr. MACDONALD. No, sir; but I think that is a very good idea. I think we ought to take that up. It is possible that could be brought about in connection with the opening of this new Trans-Isthmian Highway. There would be a possibility of danger, because of the number of people from the United States who are likely to be using this road. Mr. DIRKSEN. They invariably get into a jam down there; I saw several. Mr. MACDONALD. Yes. We will take that up to see what can be done about it. Mr. DIRKSEN. You do have authority in the act? Mr. MACDONALD. Yes; we have authority to undertake research in connection with highway improvement and highway use. FEDERAL-AID SECONDARY OR FEEDER ROADS Mr. WOODRUM. We will take up the item, Federal-aid secondary or feeder roads, which is as follows: For secondary or feeder roads, including farm-to-market roads, rural free delivery mail roads, and public-school bus routes, $6,000,000, to be immediately available and to remain available until expended, which sum is a part of the amount authorized to be appropriated for the fiscal year 1942, by section 2 of the Act approved September 5, 1940. Mr. MACDONALD. The following is our justification statement on this item. Federal funds for participation in the cost of improving secondary or feeder roads were first provided under the National Industrial Recovery Act of June 16, 1933 (48 Stat. 200), and subsequent emergency highway appropriations. Section 7 of the Hayden-Cartwright Act of June 16, 1936 (49 Stat. 1521), authorized for the first time an appropriation of regular Federal-aid funds, as distinguished from the emergency funds, for the construction of secondary or feeder roads. (Details included in general statement.) This policy has been continued in subsequent Federal-aid authorization acts. The act of September 5, 1940 (54 Stat. 868), authorized an appropriation of $17,500,000 for each of the fiscal years 1942 and 1943. (Exhibit D.) As of June 30, 1941, 30,639 miles of secondary or feeder roads had been constructed with regular and emergency funds in cooperation with the State highway departments, and 2,989 miles were under construction or approved for construction. As with projects on the Federal-aid highway system, the initiation of projects and immediate supervision of the construction of secondary or feeder roads rest with the State highway departments, and engineers of the Public Roads Administration make frequent inspections and approve all work from the inception of a project until its completion. AVAILABLE FUNDS, 1942 The sum of $15,000,000 was appropriated in the Independent Offices Appropriation Act of 1942, which covered the full amount authorized for the fiscal year 1941. (Exhibit E.) ESTIMATE FOR 1943 The amount requested for the fiscal year 1943 is $6,000,000, which is a part of the amount authorized for the fiscal year 1942. Mr. WOODRUM. You are asking $6,000,000 for 1943 as against an appropriation for 1942 of $15,000,000. Tell us about this, Mr. MacDonald. Mr. MACDONALD. Mr. Chairman, this fund, like the Federal-aid fund, can only be used on projects that are certified as defense projects and where met with State funds. Mr. WOODRUM. You are still following the same procedure that you outlined under the Federal-aid highway system? Mr. MACDONALD. Yes, sir. Mr. STARNES. You have $25,000,000 additional funds that can be used on this particular program under defense roads; do you not? Mr. MACDONALD. Many of the access roads fall into the secondary classification and for that there is available an authorization of $150,000,000. Mr. STARNES. An authorization; how much money is actually available? Mr. MACDONALD. This bill refers Mr. STARNES. This bill carries $6,000,000 as an estimate for 1943. Mr. MACDONALD. Yes, sir; but in addition to this $6,000,000, which can be used for that class of roads and a good many roads of that category have been built from this fund-there is in addition a $150,000,000 authorization, of which $75,000,000 is in cash and $50,000,000 in contractual authorization. Mr. STARNES. There is an actual cash appropriation of $75,000,000 that can be used on what you would properly classify as secondary roads? Mr. MACDONALD. Yes, sir; for access roads. Mr. STARNES. Which are access roads for military purposes? Mr. MACDONALD. Yes, sir. Mr. WIGGLESWORTH. Is it also true that every cent of this $6,000,000, if spent, will be spent on roads deemed essential to national defense? Mr. MACDONALD. That are certified; yes, sir. ELIMINATION OF GRADE CROSSINGS Mr. WOODRUM. The next item is "Elimination of grade crossings," as follows: For the elimination of hazards to life at railroad grade crossings, including the separation or protection of grades at crossings, the reconstruction of existing railroad grade-crossing structures, and the relocation of highways to eliminate grade crossings, $22,000,000, to be immediately available and to remain available until expended, which sum is a part of the amount authorized to be appropriated for the fiscal year 1941 by section 3 of the Act approved June 8, 1938 (52 Stat. 634). JUSTIFICATION OF ESTIMATE Mr. MACDONALD. We offer the following justification of this item. Regular Appropriation, 1942 Act......- Base for 1943.. . Increase_ Total estimate for 1943.. $10, 000, 000 |