Of primary concern in this article are the long range qualitative effects that the recent Congressional cutbacks in appropriations for the 1969 educational and cultural exchange programs will have upon the national interest. Brief introductory sections cite the historical background of the American commitment to these exchanges and the immediate quantitative effects of the cutbacks on the overall program. The major portion of the document examines the effects of the Congressional action in terms of such program purposes and long range national goals made implicit in the 1961 Fulbright-Hays Act as (1) promoting international cooperation for educational and cultural advancement, (2) broadening the base of national decision making, (3) strengthening the nation's capacity to participate in world affairs, (4) humanizing international relations in the interest of peace, (5) contributing to a better understanding between the United States and other countries, and (6) supporting long range foreign policy goals. Also included are suggestions for legitimate reductions in program spending as well as recommendations for budget expansion. For a companion document see FL 001 301. (AF)