EXTENSIONS of REMARKS 2555 Individuals on Its Staff and to Make Such Behalf of a Commission Employee, and Reg Presiding Officer Appointed Mr

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February 7, 1968 EXTENSIONS OF REMARKS 2555 individuals on its staff and to make such behalf of a Commission employee, and reg Presiding Officer appointed Mr. SPARK rules and regulations as are necessary for ulations of said Administrator for the ad MAN, Mr. PROXMIRE, Mr. MusKIE, Mr. the conduct of its business, except as herein ministrative control of funds shall apply to BENNETT, and Mr. HICKENLOOPER con otherwise provided. appropriationsof the Commission. The Com SEC. 306. ADMINISTRATIVE ARRANGEMENTS. mission shall not be required to prescribe ferees on the part of the Senate. (a) The Commission is authorized, without such regulations. regard to the provisions of title 5, United (e) Ninety days after submission of its ORDER OF BUSINESS States Code, relating to appointments in the final report, as provided in section 304 (b), competitive service or to classification and the Commission shall cease to exist. Mr. BYRD of West Virginia. Mr. Pres General Schedule pay rates, to appoint and SEC. 307. AUTHORIZATION OF APPROPRIA ident, I suggest the absence of a quorum. fix the compensation of an executive direc TIONS.-There is hereby authorized to be ap The PRESIDING OFFICER. The clerk tor and the executive director, with the propriated such sums not in excess of $1,500,- will call the roll. approval of the Commission, shall employ 000 as may be necessary to carry out the pro and fix the compensation of such additional visions of this title. Any money appropriated The assistant legislative clerk pro personnel as may be necessary to carry out pursuant hereto shall remain available to the ceeded to call the roll. the functions of the Commission, but no Commission until the date of its expiration, Mr. BYRD of West Virginia. Mr. Pres individual so appointed shall receive com as fixed by section 306 (e) . i.:ent, I ask unanimous consent that the pensation in excess of the rate authorized TITLE IV-SEVERABILITY order for the quorum call be rescinded. for G&-18 under the General Schedule. The PRESIDING OFFICER. Without (b) The executive director, with the ap SEc. 401. If any provision of this Act is proval of the Commission, is authorized to judicially held to be invalid, that holding objection, it is so ordered. obtain services in accordance with the pro does not necessarily affect the validity of any visions of section 3109 of title 5 of the other provision of this Act. United States Code, but at rates for indi And amend the title so as to read: "An ADJOURNMENT viduals not to exceed $100 per diem. Act to safeguard the consumer in connection Mr. BYRD of West Virginia. Mr. Pres (c) The head of any executive depart with the utilization of credit by requiring if ment or independent agency of the Federal full disclosure of the terms and conditions ident, there be no further business to Government is authorized to detail, on a of finance charges in credit transactions or come before the Senate, I move that the reimbursable basis, any of its personnel to in offers to extend credit; by restricting the Senate stand in adjournment until 12 assist the Commission in carrying out its garnishment of wages; and by creating the o'clock noon tomorrow. work. National Commission on Consumer Finance The motion was agreed to; and (at (d) Financial and administrative services to study and make recommendations on the 5 o'clock and 24 minutes p.m.) the Sen (including those related to budgeting and need for further regulation of the consumer ate adjourned until tomorrow, Thursday, -accounting, financial reporting, personnel, finance industry; and for other purposes." February 8, 1968, at 12 o'clock meridian. and procurement) shall be provided the Com mission by the General Services Administra Mr. BYRD of West Virginia. Mr. Pres tion, for which payment shall be made in ident, I call up this matter at the re advance, or by reimbursement, from funds of quest of the distinguished Senator from CONFIRMATION the Commission in such amounts as may be Alabama [Mr. SPARKMAN]. At his request, Executive nomination confirmed by the agreed t=.pon by the Chairman of the Com I move that the Senate disagree to the Senate February 7, 1968: mission and the Administrator of General amendment of the House and request a Services. The regulations of the General Serv NATIONAL AERONAUTICS AND SPACE ices Administration for the collection of in conference with the House thereon and ADMINISTRATION debtedness of personnel resulting from er that the Chair be authorized to appoint Thomas 0. Paine, of California, to be Dep roneous payments shall apply to the collec the conferees on the part of the Senate. uty Administrator of the National Aero tion of erroneous payments made to or on The motion was agreed to; and the nautics and Space Administration.

EXTENSIONS OF REMARKS U.S. Dilemma in Vietnam Corps, finished a year of duty in Vietnam In "A virtual dictator," Dr. Brashear ex September, 1967. He finished his active duty plained, "the chief is able to keep power so at Ft. Campbell and has returned to Central long as he is not killed by a rival, V.C., or HON. THRUSTON B. MORTON Qity to resume general practice. what is worse, becomes so corrupt and so The physician said the U.S. government overbearing that he is rounded up by the OF" KENTUCKY Is confronted in South Vietnam with three Viet Cong and killed in the vlllage square to IN THE SENATE OF THE UNITED STATES main problems: the hand clapping of every peasant in the Wednesday, February 7, 1968 Unsolvable weakness in the central gov district." · ernment in Saigon. INNOCENT SUFFER Mr. MORTON. Mr. President, not long Tough guerrilla forces in rural areas. The chief, if he is effective, keeps the Viet ago Dr. James S. Brashear, of Central Aggression and support of guerrllla forces Cong population down by offering a bounty City, Ky., returned after 2 years' service from Hanoi. to informers-The going rate was reported as in Vietnam. His impressions of that serv The government weakness and the effect high as $150 per Viet Cong. The problem ice, as related to Dr. M. David Orrahood, of the war extend into and disrupt all facets here was identifying the V.C. Thugs· were of civilian life in Vietnam. known to take advantage of this situation were contained in an article published in For instance, a prostitute makes several and who was to say whether the people they the Owensboro, Ky., Messenger and In times as much money as a college profes killed were Viet Cong or not? quirer of February 1, 1968. sor, physician, soldier or government official. Most of Dr. Brashear's time in Vietnam was I commend it to all Senators, and ask WON'T WORK ON WEEKENDS spent at the 12th Evacuation Hospital at Cu unanimous consent that it be printed in "The Vietnamese lack personal pride and Chi district about 30 miles northwest of the Extensions of Remarks. respect for life," explains Dr. Brashear. "The Saigon. Considered a model example of the There· being no objection, the article Viet Cong can severely beat a South Viet U.S. pa.ciflcatton program, the area 1s desig namese Army unit on Friday noon, but come nated militarily secure. Yet it was the site was ordered to be printed in the REcORD, of a recent mortar attack that killed 20 peo as follows: Saturday, they (the South Vietnamese) still take off for the weekend and do no work ple and wounded many others. The Viet Cong MUHLENBERG DOCTOR SPEAKS ON U.S. or fighting until Monday." sustained no losses. Thus, despite two years DILEMMA ON VIETNAM Dr. Brashear pointed out that the village of major effort, the U.S. and Saigon govern (By Dr. M. David 0rrahood) chief, as the only arm of authority for the ments have not been able to say to the peas "The U.S. dilemma (in Vietnam) steii15 Saigon government, collects the taxes and ant~ "You are safe to go about your daily from a rice-growing peasant who make $1.00 pays hi3 own expenses by taking a "cut", affairs." It is the same situation in the rest a month in a country that has been at war :which could average as much as $700 a of the country. for 20 years or more and who is thus fiercely month, veritable fortune there. a FRUSTRATION COMPOUNDED BY SNIPERS indifferent to his plight." · With this money, the chief buys loyalty So stated Dr. James S. Brashear, a Muhlen for himself, the Saigon government and the Seeing comrades fall as a result of sniper berg County physician who completed two U.S. government. And, according to 'the fire or hidden land mines 1n relatively "se years of active duty with the Army Medical Muhlenberg physician, the more ruthless and cure" areas is another source of frustration Corps January 29. · .. corrupt a v1llage chief the more effective he to the military. This ls especially true since Dr. Brashear, a captain in the Medical is. it is impossible to tell the friendly v11lager 2556 EXTENSIONS OF REMARKS February 7, 1968 from the deadly Viet Cong, and search op Lake Sharpe eastward to enhance the velopment of the nation-one area of mod erations are almost always fruitless. future development of the natural re ern ac~ivity being found in the Reclamation O]:>serving casualties taken in this manner sources in this area. Aqt of 1902 and subsequent legislation re day after day frustrates the military and lating to the development and construction disturbs the peasants. As a result, the popu The resolution passed by the South of multi-purpose water use projects; and lation is extremely slow to rally to either Dakota Legislature is ftled. Whereas, the officers and directors of the Saigon or the U.S. cause. The resolution follows: Lower James Conservancy Sub-District recog Yet, concludes Dr. Brashear, "Our presence HOUSE CONCURRENT RESOLUTION 3 nize the inherent right and ob!igation of the in Vietnam has made a Viet Cong victory im Concurrent resolution memorializing the people within the Sub-District, with or with possible. They live and fight under unbeliev Congress of the United States to provide out the assistance of the United States gov able conditions. It is impossible to under sufficient funding for a study to be made ernment, to dev·elop fully their water and stand their motivation to continue the con- of the possibility of the construction of a land resources in accordance with sound filet." pipeline from Lake Sharpe, including con basic principles of conservation development; MEDICAL CARE IMPROVING struction costs involved, and a determina and Over 6,000 in-patients and countless out tion of the amount of all arable lands Whereas, the problem of proper land use patients were treated at the 12th Evacuation which may be served through the trans and water supply, quality, distribution, and Hospital at Cu Chi in the ten month period portation of water to the Lower James reuse are of considerable importance to the Dr. Brashear served. Patients included Amer Conservancy Sub-District and adjacent arabl•e areas that may be served by a prop ican military, Vietnamese military and civil areas erly planned water distribution system; and Wh·ereas, a sound water resources develop ian and Viet Cong. Treatment was mainly Be it resolved by the House of Represent limited to acute illnesses, the majority of ment program is dependent, in large measure atives of the State of South Dakota, the Sen on continued and coordinated investigation, which were injuries sustained as direct re ate concurring therein: sult of war. planning, research, and coru;truction pro Whereas, one CYf the objectives of the Lower grams by the several federal agencies con Dr. Brashear said the surgical capabilities James Conservancy Sub-District is the com of the doctors serving with him were excel cerned wi.th water resource development; and plete development of the land and water re Whereas, the accomplishment of these pro lent, and that the service rendered by the sources within its boundary; and helicopter pilot and crew in evacuating the grams calls for adequate appropriation by Whereas, future development of the nat the Congress of the United States and the use wounded was "excellent beyond belief." ural resources in the Sub-District will be He recalled that the lives of three young of other funds from whatever sources avail- dependent on the importation of water which able; _ men with heart injuries were saved while may be used for irrigation purposes, to aug he was there. All three were in surgery with Now, therefore, be it resolved, by the Forty~ ment present inadequate municipal water third Session of the South Dakota Legisla in 15 minutes of being wounded. "These and supplies, to aid in the recharge CYf ground many others would have died had their ture, tha·t it memorialize the Congress of th& water, to furnish that which is needed for United States to provide sufficient funding treatment been delayed even a few minutes recreation, and to sustain fish and wildlife longer," the physician stated. for a study to be made of the possibility of habitat; and construction of a pipeline from Lake Sharpe, SUPPLIES A PROBLEM Whereas, there is considerable acreage of including construction costs involved, and Dr. Brashear said supplies were always a arable land within the Sub-District which a determination of the amount of all arable problem, and that laboratory and X-ray fa are highly productive for agricultural pur lands which may be served through the trans cilities were very poor when the hospital poses; and portation of water to the Lower James Con started operation, but improved slowly as Whereas, the stability of the economy servancy Sub-District and adjacent areas; time went on. within the Sub-District is dependent on its and The Central City physician was in the agricultural production which is subject to Be l:t further resolved, that copies of this original group that· reactivated and set up climatic influences and variable rainfall, thus resolution be transmitted to the Governor of the 12th Evacuation Hospital at Cu Chi. The contributing to its economic instabilfty; and the State of South Dakota, the members of unit had not treated any war casualties since Whereas, the need for supplemental water the South Dakota Congress-ional delegation, World War·rr. during the critical growing season has been the Secretary of the Department of Agricul When he left the unit in September of amply demonstrated, particularly in years of ture, the Secretary of the Department of 1967, he said hospital facilities were still be short rainfall, at a time when one or more the Interior, the Commissioner of the Bureau low what could be expected, but he em applications of water, through irrigation, of Reclamation, and the Corps of Engineers. phasized that the situation was "undoubted would have meant the difference between a Adopted by the House of Representatives ly better" than in any previous war. bumper crop and one of complete failure; January 17, 1968. Concurred in by the Senate and Whereas, portions of the Conservancy January 16, 1968. Sub-District have received only a reconnais JAMES D. JELBERT, sance survey made by the Bureau of Recla Speaker of the House. South Dakota House Concurrent mation prior to the preparation of Senate Attest: Resolution 3 Document 191 which was included in the PAUL INMAN, Flood Control Act of 1944; and Chief Clerk of the House. LEM OVERPECK, Whereas, even though the Bureau of Rec President of the Senate. HON. E. Y. BERRY lamation is making a river basin reconnais Attest: OF SOUTH DAKOTA sance survey in eastern South Dakota, there NIELS P. JENSEN, is still need for a more complete study of Secretary of the Senate. IN THE HOUSE OF REPRESENTATIVES the drainage areas covered by the Lower Wednesday, February 7, 1968 James Conservancy Sub-District and of that area lying between the Sub-District and the Mr. BERRY. Mr. Speaker, it is my Missouri River by an appropriate federal privilege to call to the attention of my agency to determine the areas of potential Science Policy Confrontation colleagues in this body, House Concur multi-purpose water use and development; rent Resolution 3, passed by the South and Dakota State Legislature. Whereas, it is believed that a pipeline, if HON. JOSEPH E. KARTH The resolution memorializes Congress built eastward from Lake Sharpe on the OF MlNNESOTA to authorize and appropriate funds for a Missouri River to serve the Conservancy IN THE HOUSE OF REPRESENTATIVES Sub-District and adjacent areas, would min feasibility study for construction of a imize maintenance costs and evaporation Wednesday, February 7, 1968 pipeline from Lake Sharpe to transport losses in transporting water for delivery to a water eastward to the Lower James Con modern distribution system when designed Mr. KARTH. Mr. Speaker, in the mid servancy Subdistrict and adjacent and built to supply water for various pur dle of January a highly important inter areas. poses including municipal water supply, do national meeting was held in Paris under I heartily endorse this resolution and mestic and industrial use, recreation develop the auspices of the Organization for Eco its goal of developing the land and water ment, irrigation, incidental recharge of nomic Cooperation and Development- resources in South Dakota. ground water, and other uses; and OECD. As most Members know, this Whereas, the cost and feasibility of con organization, consisting of representa The Bureau of Reclamation is now structing a pipeline such as envisioned for conducting a broad reconnaissance sur the transportation of water from the Mis tives from all of the world's developed vey in eastern South Dakota to evaluate souri River to an area of potential use has countries--21 of them-outside the Iron the land and water resources of the not been determined; and Curtain, is one of the most important area. This will serve as a basis for seeking Whereas, the United States government, and effective existing today. While its congressional authorization for a detaUed since its inception, has recognized its re primary mission is the promotion of in· feasibility study of piping water from sponsibility to encourage the economic de- ternational economic well-being, much February 7, 1968 EXTENSIONS OF REMARKS 2557 of its work necessarily deals with the When OECD was still the Organization for to say what they wish and worship how they utilization of technology toward that European Economic Cooperation it used the want. How can we worship at all without confrontation technique as a powerful in being discriminated against when we say end. struiri.ent for securing cooperation in the use the name of God in public? How can we truly The recent OECD meeting involved a of Marshall Plan funds in the postwar res practice our American rights if a restriction confrontation of the U.S. delegation with toration of the European economy. The tech is put on religion and prayer? How can we respect to the application of technology nique has since been used to exchange in learn history in school without learning to economic matters. It followed a long formation and criticisms concerning policies about the God who began this history? How study by a team of OECD examiners, who and practices in scientific and technical edu can a na.tion exist without a God to help it? spent weeks in the United States last cation. The January confrontation was the How can this God help us if we do not even eighth in a series of science policy reviews. recognize Him? Is the United States being year studying American science policy. It provided an influential group of pollcy ruled by the minority? The chairman of the Committee on makers with an intensive seminar on U.S. I read that the word "God" has been with Science and Astronautics, the gentleman policies and on their interpretation by ditfer drawn from a popular kindergarten poem: from California [Mr. MILLER]. served ent examiners. The published records will be as the congressional representative on available to a wider audience. The policy re "We th:ank you for the flowers so sweet, the American delegation. His work there views are one of the means OECD is using to We thank you for the food we eat; help member countries understand each We thank you for the birds that sing; has been reported as of the highest order. We thank you God for everything" Mr. Speaker, I include for the RECORD an other and their interrelationships more clearly. Thank who? God is dead. We are kllling editorial published in the February 2, Him and now there is no one left to thank. 1968, issue of Science magazine, which When God dies, the nation dies also. I would deals with this matter: Youthful Gift of Perception gladly give my life for my country because SCIENCE POLICY CONFRONTATION I love it, but I love my God more. Please, On 11 and 12 January, at the Paris head try to help me and millions of other people quarters of the Organization for Economic HON. BENJAMIN B. BLACKBURN who feel the same way. Cooperation and Development, the science OF GEORGIA Sincerely, policies of the United States were critically LYNN POPE, examined by the 20 other OECD countries. IN THE HOUSE OF REPRESENTATIVES Gordon High School. OECD science policy reviews have two pur Wednesday, February 7, 1968 P .S. Thank you for reading this letter. I poses: to help the country being reviewed realize that it will take more than just a assess its own policies and to build up a use Mr. BLACKBURN. Mr. Speaker, it has few letters to help change laws, but please, ful body of knowledge concerning science pol been said that youth has wisdom and per tell me if there is anything else I can do to icy for its member countries. ception which far exceeds that of the help. I know that the people must be pleased, In preparation for the January confronta older generation. At times, we allow our but God is more important than all the tion, U.S. officials had to examine our own thoughts to become decadent and old. people put together. Thank you once again. science policies and help the OECD secre tariat prepare a descriptive account. Four ex We fail to see things that are happening ternal examiners then visited this country to us and our great Nation. and prepared reports of their findings (Sci Recently, I received a letter from Miss ence, 12 January). Lynn Pope, a 16-year-old girl who has Legislation To Provide Flexible Interest At the culminating confrontation, a team a gift of perception which exceeds that Rates for-Mortgages Insured by the Fed of American experts (Donald Hornig, Ivan of persons three times her q.ge. I believe eral Housing Administration Bennett, William Carey, Philip Handler, Con that my colleagues and the American gressman George Miller, Herman Pollack, and people should read this letter. I there James A. Shannon) explained and defended American policies and discussed 20 issues on fore insert the following letter into the RECORD: HON. FERNAND J. STGERMAIN which they were quizzed by the four external OF RHODE ISLAND examiners (H. G. B. Casimir, director of the DECATUR, GA., Philips Research Laboratories; Theo Lefevre, January 29,1968. IN THE HOUSE OF REPRESENTATIVES DEAR CONGRESSMAN BLACKBURN; I just former Prime Minister of Belgium; Pierre Wednesday, February 7, 1968 Masse, chairman of the board of Electricite finished reading the Feb. 5 issue of U.S. News de France; and C. H. Waddington, professor and World Report, and I found an article, Mr. ST GERMAIN. Mr. Speaker, on in the Institute of Animal Genetics, Edin "New Decisions on Prayer and Anarchy", Monday, February 5, I introduced legis burgh) and other representatives of the quite disgusting. I always felt the United lation to provide flexible interest rates OECD countries. States would fall and now I know it will. Years ago, when Pilgrims came to America, for mortgages insured by the Federal From the review the U.S. has gained the Housing Administration. benefit of an objective and candid analysis of they thanked God for this wonderful and how its science policies look to a group of prosperous land. George Washington prayed This action was predicated upon and knowledgeable foreign critics. Much of what to God for guidance so that he would lead stimulated by the glaring necessity to they had to say was complimentary. Some the nation in the right way. Great men like minimize high discounts and attract of it was envious. And some was fairly sharp Nathan Hale and John Paul Jones died for more mortgage money to FHA-VA loans. ly critical. Disagreements, among the review this country. Men fought for independence A very pertinent article appeared in ers or between the reviewers and the U.S. leading the way for other countries and they the February 6 edition of the Washing representatives, provided points for fruitful created and built a constitution which be discussion at the confrontation. came a pattern for other constitutions. Men ton Post which I insert into the RECORD. The role of science in governmental and have built this country, stood for it, and As the article notes, private money to economic affairs is basically much the same died for it, and we are slowly tearing it down. finance veteran mortgages "will dry up in all developed countries, but the forms of This great country is truly God-given and unless Congress removes the 6-percent government of these countries differ and so we should be thankful for our rights as interest limit on such loans." do the details and the manner of develop citizens in a great country, but we are not. I commend this article to the atten ment of their science policies. Much of the We continue protesting and asking for more tion of all my colleagues that they may January discussion took shape from the fact freedom and burning draft cards and flags, that Europeans often do not appreciate the and we are destroying the nation men have become more a ware of the seriousness diversification of responsibility that exists in llved and died to build. of this matter and will, I hope, conse the U.S. and do not fully understand how Is Congress really going to take "In God quently lend their support to my legis Congress differs from the parliaments with we trust" off the U.S. money? Is the word lation: which they are more familiar. Fellow dele "God" going to be taken from the pledge to [From the Washington (D.C.) Post, gates especially praised Congressman Miller's the flag and out of school books and out of · Feb. 6, 1968] important U.S. addresses? Will the Lord's explanations of the way Congress works, and GI LOANS RATE RAISE ADVOCATED comments following the confrontation indi Prayer not be taught to my younger brothers cated that the American delegation had ex and sisters a.s it was taught to me? Will A spokesman for home builders warned plained U.S. policies effectively and had people stop saying grace and praying for the yesterday that private money to finance gov cleared away some of the confusion and mis boys in Vietnam? When will they ever realize ernment backed mortgages for veterans will interpretation concerning these policies. Le that this nation was borne of God and will dry up unless Congress :o-emoves the 6 percent Figaro, for ex;:l.mple, quoted M. Lefevre as say perish without Him? interest limit on such loans. ing that the American policies were an ex As a teenager in the Mormon Church, I Lloyd E. Clarke, president of the National ample to Europe and not a threat (as was see this all as a big waste. The words "United Association of Home Builders, also told a implied in the written report) unless Europe States" has always represented to 1ne, a House veterans affairs subcommittee hearing chose not to understand their meaning. great democracy where people have the right that the $7,500 maximum mortgage that the CXIV--161-Part 2 2558 EXTENSIONS OF REMARKS February 7, 1968 government will guarantee should be raised THE WORLD LOOKS AT THE UNITED f?TAT¥S OF granted by the man WhO knows the art Of . to $10,000. AMERICA: AMERICA'S AMAZING POWER To "qrganizin~," that is, Of establishing the ma Lifting of the interest rate and the in CREATE terial and human processes capable of trans creased guarantee level were both recom (By Jean Fourastie, tra:t?-slated from forming nature to meet the needs of man mended to President Johnson in a recent L'Express, Paris) kind. This creative power, the basic generator message to Congress on proposed veterans of wealth, is nothin3 but "informed deci legislation. (NOTE.-Although it sharply criticizes the sion." The man capable of deciding takes French and praises the U.S. almost fulsome CITES HIGHER MARKET coznmand; this is the "seizure of power." ly, the book Le deft ai?ericain ["The Ameri Serva-n-Schreiber bases· his judgment on Clarke said the market rate for home can Challenge"], by editor Jean-Jacques these facts. First, concerning the seriousness mortgages is now about 7 percent, which has Servan-Schreiber, hit the top of the French of tl>e facts: it is probable that the few years created a competitive disadvantage for gov best-seller lists just days after publication. separating us from 1975 will be decisive. If ernment backed home loans for GI's. Atheneum plans early spring publication in the gap between the United States and Eu "To continue the existing ceiling in the the U.S. For the competitive European it could be a stirring call to action. For the rope which began appearing around 1962 is face of today's credit market will not only not stabilized, if the Europeans continue to prevent many veterans from buying homes, concerned American battered by Vietnam and urban upheaval it may come as a startling let the Americans take the initiative in the it may also result in permanently disaffecting "big operation," the two civilizations will many leading institutions from the pro morale booster. Below ATLAS prints a review by France's greatest economist, Jean Fouras begin to diverge not quantitatively but qual gram," said Clarke. itatively. We will reach the point where infor Rep. Charles E. Bennett (D.-Fla.) , also tie, from Servan-Schreiber's own magazine L'Express.) mation will be available to us long after it urged the subcommittee to act favorably on has become only trivia to them, and even three bills he has introduced to liberalize a I have just finished Jean-Jacques Servan worse, if we do get our hands on such mate veterans,. liability when he sells ,his home Schreiber's Le deft amertcain 1 ["The Ameri rial, it will be incomprehensible.... and the purchaser assumes the GI s Govern can Challenge"]. It reads like a novel, like Given this grave situation, Servan-Schrei ment-backed mortgage. one of those novels of adventure and history ber believes the problem is essentially "a URGES GREATER EFFORT that ravish us when we are young and want political problem." He is right. The processes action, which lead us to discover something Meanwhile, Rep. Wright Patman (D.-Tex.) of ignorance, indifference and inertia which about men and ourselves, which multiply separate us from the Americans cannot be told savings and loan representatives here tenfold our desire to live. In a word, it is that they would have to put forward a great overcome by a small elite, by the initiative a story, our story: what is happening to us of a few corporation heads, not even by the er effort to win passage of the Federal while we think about other things and satisfy Chartering Bill (H.R. 13718). entire employer class together with the ourselves with other pastimes. French trade unions. The bill would allow S & Ls and state Raymond Aron recently observed that we chartered mutual savings banks to apply for This can be demonstrated by examining are rapidly changing our image of the United education or "ma.nagement." If the executive Federal charters under which they would States from that of a sleepy country, digest enjoy broader investment and lending function, as we now say, is the key to the ing old wealth, entangled in reactionary alli econoinic revolution, how are we to put an an<:es, brought to a standstill by long-fester po;::~an told a conference of the U.S. Sav end to the low regard in which it is generally ing conflicts, on the verge of being over held in France? How can we restore the em ings and Loan League that "your enemies whelmed and outclassed by the U.S.S.R. and the American Bankers Association and its ployer to his proper role? How to absolve China; to a new image, that of an awaken him of the fundamental charge that he ex big bank members-are already at work. ing adolescent youth, master of an immense Under the ABA plan, the bill would never ploits his fellow man? There is only one way: heritage, possessing above all a virile energy, through a genuine revolution in political see the light of day." - instrument of a surprising future. But what Commercial banks have complained that thought. is it really like? What are the consequences The publisher-editor of L'Express then entry of S & Ls into the consumer loan busi for us Frenchmen, for us Europeans who in ness, under Federal ch:>.rters, would consti turns to a study of the French Left which 1 the course of the last decade hoped to main would consider severe if it were not balanced. tute unfair competition. tain or regain the front ranks of civilization? b,y his even harsher view of the Right.... Servan-Schreiber's book is, first of all, a Servan-Schreiber is justified in appealing to documented report, secondly a judgment and the Left. If it comes to hold power, it will a call to action.... To begin with, we learn have the job of renovation. Now its duty is The World Looks at the United States from this book that Europe is regressing, not to awaken an ignorant public opinion and a advancing. The great national projects (the government which still believes in a Europe cOlllputer plan, rockets, the atom) and the made up of Fatherlands. great European projects (the Concorde, Eura What actually must be accomplished? HON. PAGE BELCHER tom) are not merely partial in character but OF OKLAHOMA First, a real Europe must be created, a Eu too narrow in scope, and because they lack rope made of units capable of large-scale op IN THE HOUSE OF REPRESENTATIVES breadth they are doomed to instability in erations; a federated Europe, able to accept stead of consistent progress. . . . Europe, "a unified policy of science and technique." Wednesday, February 7, 1968 which shoUld devise "a unified policy of sci "This integration," states Servan-Schreiber ence and technique," is only lowering tariffs accurately, "will be subject to the constraints Mr. BELCHER. Mr. Speaker, I would and increasing interest rates. like to call to the attention of my col of a total strategy on the part of the big Yet, the large-scale actions which the American firms if Europe does not gain con leagues a very interesting commentary Europeans do not undertake are possible: trol of the process itself." on our American way of life and its social "The Americans are executing them." Fur It is impossible for me in a brief review and industrial significance in world thermore, if we do not begin them in the to give an adequate account of a book which society. It is in the form of a book review next few years the Americans "will do so." poses such important questions. It is equally published in the January issue of Atlas, Right now, "the Americans are landing in impossible to predict that the appeal it and asserts that America is the world's Europe," a terrain on which they can evolve makes to the politicians first, and then to advanced techniques while the Europeans the nation as a whole, will be heard quickly driving force. It attributes this not to still develop classical methods .... But then, material wealth, as those who would enough to inspire the renovations that can "why them and not us?" Many Frenchmen, spare us from subjugation.... More gen deprecate us are often wont to do, but epitomizing our country and period, im erally, we should ask ourselves what doini to our philosophy and unique rapport mediately answer: "because they are rich." nates all these factors of progress now ex between Government and industry. One of the book's primary merits is that it ploding in the United States, in a revolu What is most interesting to me is that proves something quite different. The Ameri tion more brilliant than the previous revolu the, review is a translation from the Paris cans do not act like "capitalists," as our old tions of steam, electricity, and the atom? Marxist formulae would have us believe; they Organization of the firm? Yes, of course. L'Express and the book being reviewed act like "entrepreneurs," like innovators; is bestseller in France: "Le Defi Amer "Cross-fertilization"? Certainly. The elec they have the "power to create." The power tronic and information industries? Com icain"-"The American Challenge"-by to create does not come from money; on the puters?. Yes! Yes! Education? Permanent editor Jean-Jacques Servan-Schreiber. contrary, money is a product of the power to training? Research? Of course. The book is planned for spring publica create. It is not with their money, but "with But I believe there is a method that brings tion here, and in the midst of the cur o'urs" that the Americans are establishing this all to life, that doininates the ferment rent pessimism as to our country's moral themselves in Europe. What is the source of of Western civilization, that distinguishes and social fiber, this reassurance from this creative power today? I refer the reader it from all other civilizations that have to the book .... existed or exist on the face of the earth, that a foreign observer should be most wel Today, "he is rich who knows how to in come. I include the review, entitled "The gives it its efficiency and guarantees its suc vent and accomplish." success is an enter cess: the experimental, scientific mentality. World Looks at the United States of prise, the power to create, is taken for The "post-industrial" society should have a America: America's Amazing Power To new name--"the scientific society." The con- Create," by Jean Fourastie, at this point 1 Le Deft Americain by Jean-Jacques Ser- dition of econoinic development is the ac- in the RECORD: van-Schreiber Denoel: Parts. quisition of the experimental scientific spirit. February 7, 1968 EXTENSIONS OF REMARKS 2559 Servan-Schreiber's book describes this new [Transcript of "Labor News Conference,'' BIEMILLER. Well, I would say that there was society and provides us With the means of Mutual Broadcasting System, Jan. 2, 1968] grea!t success on some matters that most understanding it and thereby taking action. THE 90TH CONGRESS, FIRST SESSION people may not have recognized of impor tance. Guest: Andrew J. Biemiller, Director, AFL For example, the passage of the sound Meat CIO Department of Legislation. Inspection Bill. Now, for the first time, we Panel: Neil MacNeil, chief congressional are really going to inspect all meat in the Labor News Conference correspondent for Time magazine; Kenneth United States. This was a sleeper in one sense Crawford, contributing editor and columnist It was a bill that most people didn't think for Newsweek magazine. had very much chance. All of a sudden, the HON. JAMES A. BURKE Moderator: Frank Harden. bill got rolling and hurrah, we've got a good, OF MASSACHUSE'rl'S HARDEN. Labor News Conference. Welcome sound bill. to another edition of Labor News Conference, IN THE HOUSE OF REPRESENTATIVES A comparable thing that happened during a public affairs program brought to you by the closing days of the Congress was the rela Wednesday, February 7, 1968 the AFL-CIO. Labor News Conference brings tively good Poverty Bill that came out of this together leading AFL-CIO representatives Mr. BURKE of Massachusetts. Mr. Congress. That, though, was the kind of vic and ranking members of the press. Today's tory that I was talking about when I said Speaker, in a recent interview on the guest is Andrew J. Biemiller, director of the that it was a defensive Congress, because Mutual Broadcasting System, Andrew J. AFL-CIO's Department of Legislation. there was a stage of this Congress in which I Biemiller, legislative director for the The first session of the 90th Congress-one frankly despaired of any Poverty Bill coming AFL-CIO and a former Member of this of the longest sessions in recent years-ad out--particularly from the House of Repre House, from Wisconsin, said that one of journed a little over two weeks ago. Here to sentatives. question Mr. Biemiller about how the AFL But, we did manage to salvage a bill that the biggest disappointments for the la CIO rates this session of Congress and what bor movement in the last session was se is, if anything, better than the old law, and he sees as major issues in the second session, with a slightly higher appropriation. vere curtailment of welfare programs- which convenes January 15, are Neil MacNeil, CRAWFORD. Mr. Biemiller, overall, wouldn't particularly aid to dependent children. chief congressional correspondent for Time you say that the difficulty-the principal Many of us agree. Possibly even more of magazine, and Kenneth Crawford, contrib difficulty with this Congress--was that the us would agree with Mr. Biemiller that uting editor and columnist for Newsweek magazine. Your moderator, Frank Harden. old programs were not fully funded? Is that effective answers to the urban crisis- And now, Mr. Crawford, I believe you have true? job creation, housing, education, civil the first question? BIEMILLER. That is what I was getting at rights, and all the rest-are major chal CRAWFORD. Mr. Biem1ller, President Johnson a few moments ago, when I said that in the lenges that must be faced this year. Mr. seems to be of two minds about the first appropriations field, we actually lost ground. Biemiller's views would, I think, be in session of this Congress. He has criticized it The authorizations that we were so proud teresting and informative to all of us. for what it did not do, but at the same time, of that were passed in the 89th and previous he has called it a medium-productive Con Congresses never became fully funded. Therefore, I include at this point in the You know, I think the American people RECORD the transcript of "Labor News gress. How do you view it? BIEMILLER. I'd say, Mr. Crawford, that the forget that to Win permanent possession of Conference," as broadcast on the Mutual President is a little more charitable in his a law in the Congress of the United States, network, as follows: estimate of the achievements of the first you have to win it 10 times. You have to win, LABOR NEWS CONFERENCE session of the 9oth Congress than is the first of all, in the substantive subcommittees and full committees in both Houses. Then Revival of the conservative coalition in the AFL-CIO. In our opinion, the first session of the 90th you have to go through the same thing in House of Representatives last year halted new the appropriations committees. Then you progressive legislation and even forced some Congress was primarily a defensive one in which the Administration and people like the have to win in conference and on the floor. retreats in appropriations for existing pro Then you have to get the bill signed. grams. AFL-CIO were attempting to defend the gains that were made during the 89th Congress. I suppose it could best be explained ~ That's the AFL-CIO appraisal of the first something like the trophies in some bowling session of the 90th Congress, given to report This became particularly true in the con tinuing fight over appropriations. And, very tournaments or golf tournaments-you have ers by Andrew J. Biemiller, orgahized labor's to win the trophy 10 times to get permanent chief lobbyist. frankly, I think that in t'hat area, we lost ground. possession. The AFL-CIO director of legislation, inter MAcNEIL. Mr. Biemiller, what, in labor's CRAWFORD. I think you are right that most viewed on Labor News Conference, broadcast view, would be the biggest failure-what people don't recognize that what is author Tuesday at 7:35 p.m. EST on the Mutual would you count as the biggest failure for ized is frequently not what is appropriated. Radio Network, said labor was forced on the labor in the session? You are apt to take the authorization figure defensive in 1967, recalling that the biggest BIEMILLER. In terms of a rather narrow and say that is what you have. But you don't fights were to save existing programs rather definition of labor's aims, we would have to have it until you get the appropriations. than shape new ones. say that the biggest failure was the fact that MAcNEIL. There are some Congressmen who Biemiller said that "in terms of the gen Congress took no action on the Situs Picket vote for all authorizations and against all eral welfare,'' the Social Security welfare ing Bill-the bill which would give the build appropriations. amendments were "one of the biggest disap ing trades union members equal picketing Mr. Biemlller, let me follow this up a little. pointments" for labor. "We think that they rights With industrial union members. You mentioned the Meat Inspection Bill. It set back the welfare system of the country by MACNEIL. What happened to 14(b)-the seems to me that a great deal of consumer about 100 years," he said. He took sharp issue repeal of that section of the Taft-Hartley oriented legislation was passed this year, and with the cutback of funds for aid to de Law? Have you abandoned that? that this was a new phase in the Congres pendent children, which, he said, means that BIEMILLER. No effort was made to push the sional attitude toward things. For example, the states will now decide "whether they are repeal of 14 (b) in this session of the Con the Fabrics Bill-the Flammable Fabrics going to sterilize mothers or starve children." gress, because we knew, very frankly, that Bill-interest rates, and so on. Biem1ller said that, despite official GOP we didn't have the votes. There is no point in BIEMILLER. On interest rates, we've still got claims to the contrary, there was a revival of trotting out a bill that you know is fore trouble. the Southern Democrat-Republican coall doomed to failure-doomed before you start MAcNEIL. It's not finished, but it is a long tion in the House. "The Senate has saved on it. way along the road. I am just wondering if this Congress from being the real throwback Now, I'd like, though, to say that in terms you think there is a new attitude on Capitol that the House leadership of both the South of the general welfare of the country, I Hill toward the consumer? ern Democrats and the Republicans would think one of the biggest disappointments BIEMILLER. Yes, I think that is a fair state like it to be," he asserted, adding, "the that the labor movement had was the welfare ment, Mr. MacNeil. I think there is a grow Senate st111 has a working liberal majority." provisions of the Social Security legislation ing attitude that we had better pay some Job creation in both urban and rural areas,· that passed. attention to consumer problems. a major attack on housing problems, stronger We are very disturbed by those provisions. This is one of the reasons why President education programs and additional civil We think that they set back the welfare Johnson is reasonably generous in his assess rights legislation wlll be areas of major Capi system of this country by about 100 years. ment of this Congress. He is proud of the tol Hill battles in the second session that We certainly don't like tbe idea that we now fact that it became consumer-oriented in opens January 15, Biemiller said. have to, as President Meany put it, let the many ways. The AFL-CIO "will be in there fighting to states make a decision as to whether they However, I will be completely convinced pass the soundest legislation that we can,'' are going to sterilize mothers or starve chil that it is a good consumer-oriented Congress he declared. dren, as a result of the cutback of the funds when I see final action on the Truth-in Biemiller was questioned by Kenneth for aid to dependent children. Lending Bill. Crawford, contributing editor and columnist MAcNEIL. May I ask you a follow-up ques You are aware, I am sure, Mr. MacNeil, for Newsweek magazine, and Neil MacNeil, tion on that? Again in terms of labor, what that is the bill that former Senator Paul H. chief congressional correspondent for Time were the biggest successes for labor in the Douglas (D-Dl.) started many years ago. It's magazine. last Congress--the last session of Congress? a very simple little bill. 2560 EXTENSIONS UF REMARKS February 7, 1968

All it says is that those people who have who has the tactical and parliamentary skill going to act. The AFL-CIO, at its recent con dealings with the public--dealings that in that he had-nor the prestige. I just wonder vention, again urged the Oongress to pass a volve interest rates-must give the public 1f that played a major role ln various suc surtax bill. We have some ideas on how we the full, true annual interest rates they are cesses? The Poverty bill is one, -and the Edu think the President's bill ou_ght to be re paying. cation Bill is another. · written, in part. But, we do believe that it Now, this year, the Senate did pass a rather BIEMILLER. I am quite willing to admit that is very important to pass a surtax bill. good bill. But, it has been hung up in the the disappearance of Judge Smith from the MAcNEIL. Isn't there a paradox here? This House-in the House committee. In the Sen House of Representatives has weakened the Congress-particularly the House-has been ate, too, for that matter. We found that the Southern bloc-there isn't any doubt of that. voting for the appropriations they have ap committees knocked out coverage of depart Judge Smith was, without any question, one proved, while complaining about the size of ment stores revolving accounts. This happens of the ablest legislators of our time. I don't the deficit, and booause of that, pe.rtially, to be, in our opinion, the key to the whole mean to infer that I wish he were back. I'm are refusing to increase taxes until they get matter, because this is where all of the dif delighted he is no longer there as an oppo the President, of all people, to cut the appro ficulties show up. I have found, time after nent. priations still.!urther. Do you agree? time, in asking my friends who have revolv But, on the other hand, when you start BIEMILLER. I think that is oorrect. I found ing accounts at department stores, "Do you talking, for example, about the Education 1t a great p'Rradox. But, this happens to be know what interest rate you are paying?" Bill, we think there was some retrogression the attitude which the Chairman of the Ways that they say, "Yes, we are paying one-half there this year. And, it was largely a result and Means Oommittee, Oongressm'Rn Wilbur of one percent, a very reasonable rate." I ask, of the Southerners being unwilllng to go D. Mills (D.) of Arkansas, has adopted. And, "Do you realize that is one-half of one per along with the original bill, wbich gave more I don't know a m{)l'e powerful person in the cent per month, and, that in many cases, it power to the Office of Education than the House of Representatives than the Ch'Rirm.an is one-and-one-half percent?" bill which just passed the House. of the Ways and Means Committee. That is what it usually is, in fact. The one MAcNEIL. It was a remarkable bill, in terms MAcNEIL. ~Y I ask you for a political half percent rate is a very rare thing: that of the loss of your liberal Congressmen in judgment here? What would be the price would come out to a six percent annual rate. the '66 elections, wasn•t it? the President would have to pay, if he met The one-and-one-half percent rate comes BIEMILLER. But, it was saved in large part the oonditions that ·the conservatives in the out to 18 percent per year. That is the thing by the Senate. I would go one step further House are demanding-the price for his tax we would like people to understand-that it was saved in large part by Senator Wayne bill, in cutting a.pproprlaitiom;? they are being charged that kind of interest. Morse (D-Ore.), who handled that blll "Very Presumably, they would oome in the do CRAWFORD. Mr. Bi-emiller, you spoke of your skillfully. He did an excellent job on it. mestic area. apprehensions about getting any Poverty CRAWFORD. Mr. MacNeil, I wonder if the BIEMILLER. Well, about a $4 billion cut has Bill through the House. The House has been difference between the coalition now and the now been made, as a result of actions by the the sticky point here. How do you account old coalition is 'that it now isn't a conscious Oongress acceded to by the Administration. for that? Why is it, in these days, that the working relationship-rather it is that "Ike Another couple of billion dollars were shaved Senate seems so much more liberal than the and Mike think allke"-and when you come off some of the original esttma..tes. House? to voting, they vote alike? · I think that Whet the conservatives i:n the BIEMILLER. Well, two days after the elec MAcNEIL. I see another difference, and I'm House want is to double-that--to get·the t:uts tion in 1966, I sat down with AFL-CIO Presi going to .ask Mr. Biemiller about it. That is, up to around a $10 billion figure, instead of dent George Meany and AI Barkan, the head it seems to me that the Republican leaders this $4 to $6 billion figure that seems -to have of our Committee on Political Education. We ln the House-traditionally a very conserva been reached. counted the House that had just been tive group-have changed their strategy on Furthermore, I think they want some kind elected. We came to the conclusion that we bills. For example, in the education fight, of a prom1Be thlllt in ·future budgets, "there had a net loss of 41 liberal Congressmen. And they sort of gave up the question of whether will be cu.rta.ilment. I think 'th&t too many that, in the boldest terms I can put it, is or not the federal government should be people .read just the first two paragraphs of what's wrong with the House of Representa involved, did they not? They are really fight .Mr. M1lls' .statement. In the third and fon.rth tives today. ing over how it should be involved. They are paragraphs he went on to say tha.t .he also The 89th Congress had an actual working trying to put the programs onto tne state wants some W>Burance that the ronstant ex majority of good, sound, liberal Congress level, which, I think, is the thing you are pansion of government programs will come men. That has been cut way down-it is complaining about, isn't it? to a halt. down to about 185 now-about 185 people BIEMILLER. Well, I think this ls partially MAcNEIL. If the President p.aJ.d this price whom we feel we can count on in the House true,. yes. Melvin Laird, for example, the to g-et his tax bill, wouldn't thil! cost him of Representatives. Chairman of the Republican Conference eDJOrm.ously in his own effort toward re And, I'm not talking about only labor is Congressman Melvin R. Laird .from Wiscon election---e.nd the efforts of his fellow Demo sues. I mean broad social issues as well. Each sin-is trying bis level best to send federal crats-the liberal Democrnt.s you are so time, you have to reach out a-nd pick up a revenue back to the states wlthout any anxious to get back? considerable number to get the 218 it takes strings, or with very few strings, on the BIEMILLER. That is certainly our vieW. This for a majority. This is exactly what the prob money. The argument has been that the is what we h'Rve been advising the Admin lem was on the Poverty Bill. states can do it better. istration all year long. We were delighted CRAWFORD. Well, in other words, the old Well, this plays right into the hands of when the President :took out, .at our .conven Southern Democrat-Republican coalition has the Southern bloc, after all. The Minority tion, on the Republican leadership and mDSt been reconstituted in the new House of Rep Leader, Jerry .Ford, can talk all he wants to of the Republican members of the Congress. resentatives. Right? about not wanting to have a coalition, but A handful of Republicans, we think, have BIEMn.LER. That is precisely what I said in I would agree with Mr. Crawford-as a prac been voting in the peoples' interests. But, the the statement I m'Rde in the AFL-CIO News a tical matter, there is a coalition. great bulk of them haven't. ORA I Mr~ few weeks ago. As evidence of that, I would suggest that WFORD. take it, Biem.iller, that the MAcNEIL; Mr. Biemiller, do you really be you take a look at the roll call on the first AFL-CIO has just about the ..same view as the lieve that--that this is the old, working session, which the AFL-CIO has gotten out. President--tha.t the failur-e to get a .surtax was one of the great failures of this Congress? conservative coalition? The House Republi I'll be glad, by the way, to send a copy of can Leader, Congressman Gerald R. Ford, Jr., that to anybody who wants it, if they will BIEMILLER. Yes, indeed we tbink lt was. (Mich.) has specifically alienated his party write the AFL-CIO. You will find that on We think, for example, that just one area from the Southerners. The thing that strikes the key votes, particularly on appropria in which the surtax is important, is 1n keep me-for example, on the Poverty Bill-is that tion matters, the Southerners and .the Repub ing down interest rates. We are v.ery dis the real reason for the success there for the licans are voting almost solidly together. turbed by the constant upping of interest Administration was the breakdown of any Tates in the country. We think there is a real coalition. They were stumbling-they And that's where the trouble has been- direct relationsh.J,p bere. . were fumbling-they made a terrible mesls cutting appropriations. Rent supplements, Furthermore, we would agree with the of it. As a result, the bill came through. for example, is one illustration. Originally, J>Olnt that Mr. MacNeU made a moment ago, the House wouldn't vote a penny. Well, the BIEMILLER. They made a terrible mess of 1t, tnat if you~re as serious as we are about because the Republicans in charge of that Senate came back with the -$~0 Inlllion which funding the great social programs, they have bill insulted the Southerners on the opening the President had requested, and it finally "to 'be paid for. We recognize that. We have day and they became very angry. I think wound up around $15 Inillion. always said it. that far from proving my thesis incorrect, Now, that is the result of the jockeying. .:And, our th'ird point, not to be overlooked, it proves it correct, because this is the one The Senate has saved this Congress from is that this is the only war- ln history in ou~tanding example of where the South being the real throwback that the House -which there hasn't been a special tax levied erners did stick with the Administration ln leadership of both the Southern Democrats to prosecute that war~ We feel very strongly considerable numbers. As a result, the coali and the Republicans would like it to be. The that there ought to be a special tax to prose tion couldn't cut the Poverty Program way Senate still has a working liberal majority~ oeute the w.ar. down. MAcNEIL. May I turn to the o.ther 111de of CRAWP!ORD. 'This 1s also tne unly war in MACNEIL. The point I am 'trying to get to, appropriations, which is taxes. -and get your -which yoo. hav.e not h-ad wage and price con Mr. Blemlller, is tbat -the ·Southerners in the judgment on just where tl:il.a't ·stands at th!l.s :trols, whicb 'X take tt, you .are not in sym House no longer have a real leader. Judge point? pathy with? Sinith (former Congressman Howard W. BIEMILLER. I still have grave doubts that Mr. BIEMILLER. We have said repeatedly Sinith, D-Va.) is gone, and there is no man the House Ways and Means Committee is that if the President believes that controls February 7, 1968 EXTENSIONS OF REMARKS 2561 are needed, we will back him in a program going to emer~e as a bigger issue than the ploy.ees to strike. This bill has nothing to that would put controls across-the-board war. do with the right to strike but merely no~ only wages and prices, but also corporate Now, on the -war, you know our position allows union omcers to present grievances salaries, interest rates and all the other we are behind Johnson all the way. We are on behalf of their members without re phases of our economy. not flinching on it. If he comes up with a program that has But, we have a strong feeling that the straint or reprisal and sets up an or true equality of sacrifice, we will back him. domestic issues are going to get a tremen derly procedure for so doing. MACNEn.. Mr. Biemiller, just what do you dous amount of attention during the sec Mr. Speaker, it would be my hope that see as the major issues of the next session ond session of this Congress. this legislation could be considered by and what is the outlook for those fights? HARDEN. Thank you, gentlemen. Today's the appropriate committee as soon as BIEMn.LER. Well, I think that the next ses Labor News Conference guest was Andrew possible. It is time to make a long sion of Congress hE>..s to face, very seriously, J. Biemiller, director fo the AFI.r-CIO's De given promise a reality. the urban crisis. partment of Legislation. Representing the It has to face, first of all, the creation of press were Kenneth Crawford, contributing jobs. There is still a hard core of unemployed editor and columnist for Newsweek maga in our urban areas-and in our rural areas, zine, and Neil MacNeil, chief congressional GJlnS, Butler, and Whipped Cream, Too as well-for whom jobs are not available. We correspondent for Time magazine. This is strongly favor the effort that has been made your moderator, Frank Harden, inviting you by Congressman James G. O'Hara (D.) of to listen again next week. Labor News Con HON. ROBERT H. MICHEL Michigan, and some 70 or so other members ference is a public affairs production of the OF ILLINOIS of the House-which was picked up in part AFL-CIO, produced in cooperation with the IN THE HOUSE OF REPRESENTATIVES by Senator Joseph L. Clark (D-Pa.) and Mutual Radio Network. others in the Senate-to try to get job crea Wednesday, February 7, 19.68 tion by the federal government for these Mr. MICHEL. Mr. Speaker, in the early people who are otherwise unemployable in Federal Labor-Management Relations the various services. days of this current session, it seems to Secondly, we think there has to be a very me that the word "priorities" has ap serious attack made on housing. We wou1d peared in a great deal of the writing and like to see a program of 2¥2 milllon units HON. ROBERT V. DENNEY conversation regarding the expenditure a year, including at least 300,000 units of OF NEBRASKA of Federal funds. public housing a year for the next two years, IN THE HOUSE OF REPRESENTATIVES Unfortunately, talking about establish and 500,000 a year after that, for another five years. Wednesday, February 7, 1968 ing priorities and actually doing so are We think that until this attack is made, Mr. DENNEY. Mr. Speaker, today I am two different things and I have seen no we are going to have trouble in our cities. introducing legislation designed to give real interest or inclination on the part MAcNEIL. What about civil rights? of the administration to impose a mean BIEMILLER. I'm coming to that. the benefit of law to a long-established ingful and realistic schedule of priorities Now, it also means that in the urban administrative practice. Under Executive in assigning funds for the various de crisis, you've got to strengthen the educa Order No. 10988 issued on January 17, partments and agencies of Government tion programs-the vocational education 1962, postal unions and the unions of for fiscal year 1969. · system needs further strengthening. other Federal employees were recognized. This whole question of ever-increasing In civil rights, President Meany has testi However, as my colleagues know, con fied for the full Housing B1ll, and for tbe Federal budgets resulting from approval tinued recognition is subject to the whim of a never-ending series of programs by right of protection of person for anyone of the President unless sanctified by trying to exercise his civil rights. The Sen the Congress is a problem which I know ate will start on that latter b111 as soon as .statute. has troubled a good many of my col it gets back and we expect to see a real civil Mr. Speaker, since taking omce 1n leagues-and especially those of us who rights fight start in the Senate of the United January of 1967, several cases involving have opposed some of these programs States. We'll be in there fighting to pass the Federal employees have been called to on the basis that while they may be de soundest legislation that we can. my attention. In some of these cases, sirable, they are not vitally necessary and CRAWFORD. But, realistically, Mr. Biemiller, serious doubts were raised in my mind you wouldn't expect very much more of the could be set aside until our .fiscal picture second session of this Congress than you as to whether the individuals involved is a bit more clear than it is at present. got out of the first? had received a fair and equitable adjudi Along those lines, a co1umn by Mr. BIEMILLER. In the Senate, you can't get cation of their rights and grievances. Jenkin Lloyd Jones appeared . in the anything more, as long as Sena tor EVERETT M. Take for example the Post omce Depart Washington Evening Star, Saturday, DmKSEN (R-lll.) takes his intransigent atti ment. Under existing procedures, they February 3, 1968, and I indude that tude. With the Minority Leader saying he will act as prosecutor, judge, jury, and execu article at this point in my remarks: not help break a filibuster, it's almost im tionerA Although additional relief can be possible to break one in tbe Senate. secured through the Civil Service Com GUNs, ~UTTER. WHIPPED CREAM, Too But, I am delighted that -the Majority mission, it also is an arm of the execu If most of us keep insisting on getting Leader, Senator MIKE MANSFIELD (D-Mont. . ) .WhBit we want regardless of the consequences, is bringing the bill up. We will find out who tive branch. As a former trial attorney, we're all going to get it-in the neck. We can is who on the question of civil rights in my sense of fairness is offended by such wreck this broad, beautiful and ricb country. the Senate of the United States. a .system designed to handle employer We have all made a pretty good sta.rt ·at 1t. MAcNEIL. Mr. Biemiller, I'd like to ask you .and employee grievances. -The doTiar is in troub1e. Washington is at another question on election poss1b1lities-- My bill, H.R. 15185, is entitled the ..Ia.st .alarmed .at the dra.ining away of our gold the kind of men you would like in Congress. ''Federal Employee Labor-Management .reserves. The Presidentllas urged Congress to What is the effect of Senator EuGENE Mc pass 1egdslat1on that would discourage travel CARTHY's (D-Minn.) campaign for the pres Act of 1968." Many times I have heard some of my colleagues state that the Fed outside the Western Hemisphere, dry up .fur idency? Isn't this hurting the Northern lib ther foreign investments by American corpo erals? eral Government should be a model for rations and make the profits of subsicLI.a.ries BIEMn.LER. Well, I am told by many of the rest of the country in the field of abroad lmmediately taxable. These measures the members of the Congress that they do labor-management relations. But, 1n would hel~ little. not welcome the McCarthy campaign, par practice, it has been the pr-ivate sector But a.lmos.t simultaneously, Vice Preskl.ent ticularly in those states where he will be who has been the leader in the areas of Humphrey was making a speech to African involved in primaries. It is going to cause -wages, working conditions, and labor nations in A.dBoston, 13 of these promotion opportunity with their male Widow of Thomas W. Streeter, she has Reserve platoons were established as part of counterparts. Attending the East Room cere three sons, Frank S. of New York City, Henry the men's Organized Reserve units in major mony were servicewomen of the past and S. of Boston, Mass., Thomas W. of Plainfield, cities throughout the country. Women mem present, including Colonel Barbara J. Bishop, and a daughter, Mrs. Britton Chance of Phil bers attended regularly scheduled drill ses Director of Women Marines, and all but one adelphia. sions, and participated in the 2-week Reserve of her predecessors. Significant among the Celebrations will be held throughout the summer field training program, just like the President's remarks that day was the state country in observance of the Women Ma men. ment: rines' 25th anniversary. A luncheon is KOREA "Our Armed Forces literally could not op planned for Saturday, Feb. 10, at the Free Reservists joining the women's platoons erate effectively or efficiently without our hold Battleground Country Club by the certainly could not have foreseen that they women. . . . So, both as President and as the Women's Marines Assn. would soon be living up to the World War II Commander in Chief, I am very pleased and A collection of personal correspondence motto, "Free A Marine To Fight." But, in the very proud to have this measure sent to me and other papers of Women Marines will be summer of 1950, when the Korean War broke by the Congress." added to the manuscripts' collections of the out and the Marine Corps Reserve was called Such high tribute to their worth stands Marine Corps Museums at Quantico, Va. The up, Women Reserves were mobilized-for the as inspiration to all Women Marines as they dedication ceremonies will take place on Feb. first time in history-to answer their coun enter their Silver Anniversary Year. But, with 12 with Mrs. Streeter making the first pres try's call to the colors. or without recognition-and this truth they entation. By August 1950, all 13 Organized Woman have already proved-so long as today's Ma Simultaneous religious services will be Reserve Platoons had reported-as units rines must defend freedom by force of arms, held Sunday, Feb. 11, with Mrs. Streeter par for duty at major posts and stations. In today's Women Marines will stand fast in the ticipating in the principal service at Head numbers, they did not approach the strength tradition that is as old as their service, free quarters Marine Corps in Washington, D.C. of the Women Reserves of World War II; but, ing Marines to fight! To some, the Women Marines are ap they accomplished their mission by stepping proaching their 50th birthday. During World into jobs for which their reserve training had PROUD To BE JUST MARINES War I, 305 women served briefiy in the Ma prepared them. Like the women of two previ rine Corps, but after the war turned in their ous wars, they freed Marines for combat duty. (By Anna Nagy) uniforms and returned to civlllan life. Ladies MORRIS TWP.-The Army had its WACS; POST-KOREA disappeared from the military scene until the Navy, its WAVES; and the Coast Guard, Nov. 7, 1942, when the formation of the U.S. Following the Korean War, 7 new Organized its SPARS. Marine Corps Women's Reserve was ap Woman Reserve Platoons were added to the "We were proud to be called just Marines," proved. 2566 EXTENSIONS OF REMARKS February 7, 1968 Congressman Cahill's Leadership attention automobile insurance is now re have developed tremendous public hostility ceiving in the Congress. towards the industry. During the course of The Judiciary Committee, on which I ha~e investigating complaints of constituents, my HON. JOSEPH M. McDADE the honor of serving in the House of Rep office discovered numerous instances where resentatives, has already published and ap the elderly, the young and members of mi OF PENNSYLVANIA proved its staff report, and I, along with nority groups had their policies cancelled or IN THE HOUSE OF REPRESENTATIVES several other members, have urged the Chair otherwise terminated for reasons unrelated Wednesday, February 7, 1968 man to appoint a special investigative sub to individual driving abilities. committee to commence hearings forthwith. Such classification practices have not only Mr. McDADE. Mr. Speaker, recently Chairman Cellar, however, has agreed that required motorists to pay costly "high risk" our colleague, the gentleman from New investigation is called for but has indicated rates but have critically affected the opera Jersey [Mr. CAHILL], appeared in Hart a preference for assigning this important tion of State assigned risk plans. AB recently ford, Conn., to spe,ak before the bar asso task to the Federal Trade Commission. indicated by North Carolina's insurance com ciation. of that State. In the Senate, Senator Hart, Chairman o! missioner: the Senate Subcommittee on Anti-Trust and "Something is wrong with the automobile The subject of his presentation was Monopoly, has announced his intention of assigned risk plan. Seventy-five percent "A Call for Public Dialog: Auto Insur scheduling hearings in early 1968. At the (75%) of the people in it are safe drlvers, ance." same time, Senator Magnuson, Chairman and there is no excuse for packing people The gentleman from New Jersey is the of the Senate Commerce Committee has re into assigned risk at the rate the insurance first Member of Congress of the United quested the recently established Department companies are packing them in." States to point out the need for reform of Transportation to examine the present sys Third, in the past decade, despite State in this area. tem of traffic accident compensation, the licensing and c-apital reserve laws, InOre than His leadership in this field has led to effectiveness of existing governmental regu 100 companies writing automobile lla..bility action in the other body, in the Judi lation of automobile insurance, and the pos insurance have become insolvent. The results sible alternatives to the existing system of have been tragic for more than 300 thousand ciary Committee of this body, and most compensation. policyhold·ers and victims of automobile ac recently by the President of the United In addition to these major efforts, sub cidents who hold pending claims in excess of States. committees of the House Commerce and one-half blllion dollars against total assets The gentleman from New Jersey's Senate Judiciary Committees have become of the insolvent companies of less than $25 statement in Hartford outlines the prob involved in aspects of the automobile in million. One State alone, Pennsylvania, has lem, discusses its causes, and suggests surance problem. However, the enormity and had more than 20 insolvencies in the past importance of the problem is perhaps best several years. What good, therefore, to pay a method of solution for those interested demonstrated by the specific inclusion o! in the problems confronting the consum premimns for protection throughout the this subject in the recent State of the Union years only to find when coverage is needed, it ers of this country in relation to auto Address by the President of the United is not available. What answer is given to the mobile insurance, I recommend the gen States.1 legless victim of a negligent driver when the tleman's speech. What has happened in the United States insurance carrier has no assets. The factual I salute him for showing the way to to bring about such universal concern and situation argues more forcefully than my both Congress and the President in this concentrated effort in the area of automobile words that supervision has been inadequate. important area. liability insurance? In my judgment, there Fourth, delays in receiving oompensation The address referred to follows: can be no precise and specific answers to this under the present automobile insurance sys question. Unlike a mathematical equation tem hav·e provided another major dissatisfac AUTO INSURANCE--A CALL FOR PuBLIC DIALOG which follows quantitative laws, the auto tion. Protracted settlement negotiations and (Statement by WILLIAM T. CAH:ri..L) mobile insurance system depends on social conges-ted court dockets generally require It is indeed an honor to be present here ~nd economic pressures as well as human that an injured claima.nt wait from two to today. As the Representative of New Jersey's error. six years before compensation l:s granted. 6th Congressional District and a member o! Thus, like care for the elderly, education Every prac111.cing lawyer in the United the House Judiciary Committee, it is my for the young, and job opportunities for our States is thoroughly aware of the major con hope that this dialogue, debate and forum adult population, automobile liability insur gestion in our crowded Court calendars. will ultimately contribute to the solution of ance presents a social problem which must While the backlog varies according to area, the grave probleiUS confronting the Nation be resolved in accordance with modern real in most states a period of at least two years with respect to automobile liability insur ities. And in 1966, the realities principally elapses between the filing of the complaint ance. involved were as follows: 102 Inilllon licensed and assigninen.t of the case for trial. As a The importance of this subject is perhaps drivers operated 96 million registered ve result, many injured viotims, recognizing the best ilustrated by the rare agreement of the hicles 935 miles. During this operation, 14 delay, settle their cases for inadequate Bar, the insurance industry, and Representa million accidents resulted in 53 thousand amounts without, or against, the advice o! tives of government that a crisis presently deaths, 3.7 million injured and 24 million counsel. On the other hand, insurance com exists in the automobile insurance system. vehicles damaged, with a total loss to the panies find the delay to their advantage and Such agreement has been widely evidenced. American public running into the billions of decline to pay a realistic value in settlement Consider, for example, the statement of Brad dollars. until they are at the courtroom steps. Addi ford Smith, Jr., Chairman of the Insurance Despite the difficulties inherent in specify tional judges have not solved.. the problem. Company of North America, which has ap ing the problem, however, it has been my The previously described aspects of the peared in a nationally circulated advertise observation that it has been brought into automobile insurance crises, however, do not ment: sharp focus and has merited national atten exhaust the number of defects which Inight "For the past several years, it has become tion for the following reasons: be presented. In my judgment, they do sug clear that the present automobile insurance First, the cost of automobile liability in gest the major reasons for the present wide system in America is not working to the surance to the consumer has soared during spread effort and concern. satisfaction of anyone, neither the consumer, the past few years. Nationwide, average Having indicated the nature and dimen the insurance companies, nor the State and premium rates for "regular" liability cover sions of this social problem, it would be well Federal Governinent." age have increased a staggering 55% during to present an indication of its origins and In the informative and comprehensive cov the past decade. Moreover, disproportionate causes. I think it is fair to say that the prob erage of the problem in The America-::1 Trial rate increases in urban·and other areas of the lem had its inception in 1944 as a result of Lawyers Association magazine of October country have made it increasingly difficult the decision of the United States Supreme 1967, Craig Spandenberg was quoted as for motorists to afford insurance protection. Court in the case of U.S. v. Southeastern follows: Second, arbitrary and selective risk classi Underwriters Assn., 322 U.S. 533. This case "Automobile insurance has become a na fication practices of the insurance industry originated in 1942 when the attorney gen tional problem ... (which) ... has de eral of Missouri commenced an investiga veloped into a severe national headache." 1 The day following the presentation of tion that resulted in a criminal indictment Moreover, in a report on automobile insur this speech in Hartford, the President, in in Georgia against the Southeastern Under ance which was approved by the full House his message to the American consumer, writers Assn., 27 of its officers and 198 mem Judiciary Committee, staff investigators stated: ber companies. Two violations were charged, reported: "While many proposals have been made price . fixing and agreement to monopolize. "By any objective standard, the perform to improve the [automobile insurance] sys The United States District Court, following ance of the automobile insurance business in tem, many questions remain unanswered. precedent established in 1869, dismissed the the United States is unsatisfactory. The sys The search for solutions must be pressed. case on 'the ground that insurance business tem is slow and expensive and the companies "I propose legislation to authorize the was not commerce and thus was not subject involved are doing a poor job." Secretary of Transportation to conduct the to regulation under the Sherman Anti-Trust _ Any remaining doubt that a problem does first comprehensive study of the automobile Act. On appeal, the United· States Supreme indeed exist, that it is national in scope, insurance system. He will undertake this Coui:t, by a four to three decision, reversed that it is of deep concern to the American review with the· full cooperation of the Fed and affirmed the supremacy of the power of public and that some solution is mandatory, eral Trade Cominission and other appro Congress to regulate insurance in the public should be dispelled by a recognition of the priate agencies o! the Executive Branch." interest. The Supreme Court said: February 7, 1968 EXTENSIONS OF REMARKS 2567 "Our basic responsib111ty in interpreting ligence and data gathering systems. Apart cent years as the result of the study of the co-mmerce clause is to make certain that from the inadequacies o! state administra Professors Keeton and O'Connell. The wide the power to govern intercourse among the tive and supervisory agencies, in many states, spread discussion of their plan obviates the states remains where the constitution placed state- officials have proved unduly responsive need for further discussion by me. Suffice it it. That power as held by this Court from to the interests of the insurance industry to say· that the Kemper Insurance Group, the beginning is vested in the Congress, avail and, for political reasons, seem to have sub which originally retained Professors Keeton able to be exercised for the public's welfare stituted cooperative arrangements for arm's and O'Connell as consultants, is now the as Congress shall deem necessary. No com length dealings. It has only been in recent chief critic of their recommendations. While mercial enterprise of any kind which con years that public rate increase hearings have the obvious defects of the plan have been ducts its activities across state Unes has been been held and public defenders appointed to arliculated by persons more knowledgeable held to be wholly beyond the regulatory cross-examine the experts, to present argu than myself, I am convinced that Professors power of commerce under the commerce ments against the application and to rep Keeton and O'Connell have rendered an out clause. We cannot make an exception in the resent the public. I would thus caution, in standing service to the country, to the insur business of insurance." the words of the House Judiciary Commit ance companies, to the plaintiff's lawyers and Immediately, the insurance indust ry and tee: to the general public by focusing the search State commissioners were presented with a "All these factors add up to inadequate light of publicity on the problem and de decision. That decision was to either change protection to public interest and too great veloping a dialogue, of which this forum is completely existing practices or to obtain. a reliance on an industry that is all too will but a single example, which hopefully will legislation in the Congress negating the ing to assist the processes of its own regu develop a workable, feasible and equitable Court's decision. Actually, the decision had lation." solution to the problem. been anticipated and legislation was, 1:n fact, A second major effect of the McCarran The present system of adversary proceed pending in Congress when the decision was Ferguson Act is that the exemption of the in ings for the establishment of fault and the announced. Thus, to nullify the Supreme surance industry from Federal Anti-Trust jury verdict have been in effect in this coun Court's decision, the National Association of jurisdiction has proven contrary to the best try since the first claim for injuries was Insurance Commissioners immediately interests of the public. As national concern filed. To say that it is without defect would undertook action to obtain enactment of with the automobile insurance industry in be ridiculous. To say that it should be re that legislation and, as a result, on August creases, it has become apparent that the in placed by another system because it has 29, 1944, the hurriedly and inadequately de dustry has frequently attempted to maximize faults is equally ridiculous. I recall my first bated McOarren-Ferguson Act became Public profits without regard to the public interest. term in Congress. I was a.ppa.lled by the sen Law 84 of the 79th Congress. In effect, the Under exemption from the Sherman and iority system. I determined to criticize it McOarren-Ferguson Act, by vesting primary Clayton Acts, the industry has preferred to publicly and to urge its complete elimination. responsib1lity for insurance regulation in the request rate increase through collaborative Fortunately for me, I confided my intention states and by exempting the insurance in rating bureaus rather than on the basis of in an older member. He said to me: dustry from Federal Anti-Trust jurisdiction, the individual competitive perfot:mance of "What is your alternative? Will your al reestablished the legallty of the practices suc companies. Accounting methods designed to ternative be better than the present system? cessfully challenged in the Southeastern indicate operational losses rather than the How do you know it won't create more prob Underwriters case. true earnings picture and general marketing lems than it eliminates? Don't you believe However, the effect: o! this monumental inefficiencies have also been characteristic. that a system that has been in existence for legislation on the public interest was not Further, it is my understanding that in generations must have merit? Wouldn't it be immediately apparent. rrnllke today, auto surance companies without exception have wiser to fight to eliminate the abuses than to motive transportation during wartime 1944 resisted any effort by State Commissioners eliminate the system?" was extremely limited. Cars were not being to include investment income in the consid I would, therefore, urge upon those who produced and those pre-war vehicles avail eration of rate increase applications. I have would completely change the system that able for civilian use were not capable of personally argued before the New Jersey serious thought and mature judgment is indi the 300 horsepower of modern machinery. Commissioner that two elements of invest cated lest more problems, at more cost, at Slmllarly, highway construction projects ment income are essential for inclusion in greater injury to the public result. Yet, re were limited to providing defense and eco fixing premium rates. These are the incomes form and improvement is absolutely neces nomic infrastructure. Thus accidents were earned on the investment of prepaid-un sary. The cost of insurance must be kept at a minimum. With the tremendous in earned premium reserves and of claims re within the reach of the average man's pocket crease in America's dependence on automo serves. It is impossible, in my judgment, to book. The injured victim must be given tive transportation, however, the problems argue with any logic that this income should speedy, just compensation. The insurance inherent in the McCarren-Ferguson Act of be eliminated from the consideration of companies must make a reasonable profit. 1944 have become evident: State Commissioners in their determination Our courts must operate more efficiently and First, State Governments generally have of what is a reasonable profit for companies. more expeditiously and, therefore, we must proved 111-prepared, incapable or unwilUng The day is coming, in my opinion, when in act now! to effectively regulate insurance in the pub surance companies who are licensed and, I determined when I came to Hartford lic interest. Under the McCa.rren-Ferguson therefore, have a privilege granted on the today that I would follow the suggestion of Act's delegation o! supervisory authority, basis of public need ~ must recognize that all the well-known Father Kelter and that I the several s.tates have established diverse income must be considered in determining would attempt "to light a candle rather than systems o! insmance regulation and licens whether or not. a price increase is necessary. curse the darkness." Therefore, in order to ing requirements. These, then, are the apparent effects of promote and develop the dialogue, I suggest However, with respect to ratemaking pro the McCarran-Ferguson Act. While the im some personal views on this problem. I have cedures, a maJority have adopted some form pact on the motoring public cannot be meas become personally convinced that Federal of the 1947 All Industry Commissioners ured with precision, it is clear that the re jurisdiction is essential because of the nature model bill drafted by the NAIC. Generally, sults of this legislation and its implementa of the problem. It is just as foolish to expect this approach permits individual companies tion have been higher premium costs, the States to regulate automobile insurance or, alternatively, rating organizations to file arbitrary classification of motorists as "high as to regulate airplanes, Failroads., trucks and applications !or rate increase. The standard risks" and insurer insolvencies. However, in busses in interstate business-for truly the applied by the state supervisory authority my judgment, it would be unfair to place the automobile is a vehicle engaged in. interstate is to determine whether rate increases are blame for these results solely with the in~ commerce. "excessive, inadequate or unfairly discrimi surance industry. The contention of the in I, therefore, favor immediate Federal leg natory." Under this fragmented system of dustry that higher jury verdicts, more costly islation along the lines of the Federal Deposit regulation, separate determination of the repair expenses, and soaring hospitalization Insurance Corporation to insure against in "reasonableness" o! rate increases by indi and physician fees contribute to the problem solvencies of insurance companies, laws re vidual state authorities has proved a vexa seems well founded. Likewise, increased acci quiring minimum national standards of cov tious and inconsistent procedure. Generally, dent rates, inadequate safety design of cars, erage so that a Connecticut resident wm be the state insurance commissions have been and inadequate high Nay safety engineering protected by the negligent driver of an out ill-equipped in terms of budgets, staffing undoubtedly provide contributing causes. of-state car, laws requiring minimum stand and expertise to gather and analyze the data Yet, despite these higher costs and causes ards in regard to capitalization and reserves indicating the "reasonableness" of premuim of claims, in my judgment, there is no jus with Federal authority to make certain they increases. Largely this inability results be tification by the insurance industry of its aFe maintained, laws spelling out basis for cause under conditions of modern-day auto performance. Similarly, there is no justifica cancellation and refusal to renew policies, motive transportation, rate reasonableness tion for the apparent ineffectiveness of the and legislation eliminating discrimination in depends on the nationwide profit and loss present regulator,;) structure. relation to age, nationality, and color. experience of insurance companies, their in Throughout this discussion, it has been And now, so. that the dia:logue begun by ternal corporate structure and overhead, and noted that the problem. and its causes are Professors Keaton and O'Connell may be con the frequency and seriousness o! interstate imprecise. Yetr since the first automobile tinued, I should like to propose a plan to automotive accidents. Certainly, the state collision occurred, the problem o! accident which I have given some thought. and con commissions have been at a disadvantage in compensation has, to some degree, been sideration. I have become convinced in an dealing with centralized insurance rating recognized. However, the first maj.or nation active practice in tl'le. trial COl:Uts that a basic bureaus which employ specialized personnel wide effort to change. the. existing· system ot problem lies with the small claim. It is anct impressive nationwide BtatistJcal intel- ne.gligence Uabiltty has. occurred only in re- neither profitable for the claimant, the at- 2568 EXTENSIONS OF REMARKS February 7, 1968 torney nor the insurance company to litigate. The determination of the agency would in Congress to insist on an early publlc hear It clutters the court calendars. The small not be conclusive on the claimant. No appeal ing by an appropriate committee of the claim is costly to the insurance carrier and would be provided for from the Federal United States House of Representatives or a losing proposition for the practicing at agency. Thus, the claimant could take the the Senate. torney. I am, therefore, persuaded that one award, which would foreclose him from any of the first steps indicated is to find some furth-er proceedin~. or he could refuse the way of removing the small claim from litiga award and go to the State court. However, Mrs. Clark Thompson Is Honored tion. the converse would not be true. A claimant Any defense lawyer Will concede that he disappointed in a State court by a judgment charges an insurance carrier approximately which is res judicata could not enter the Fed the same fee per hour for discovery pro eral forum. HON. JACK BROOKS ceedings and for court appearances in the An accident victim would th-er-efore be OF TEXAS small case, as he does in the large case. Any confronted with a choice of remedies. If his IN THE HOUSE OF REPRESENTATIVES claim of injuries is minor, it is unlikely that plaintiff's lawyer wlll admit that, With rare Wednesday, February 7, 1968 exceptions, the small case in his office is he will choose the State court system wh-ere unprofitable and is nothing more than a recovery depends upon negligence, compli Mr. BROOKS. Mr. Speaker, Dr. Tru service to an established cllent or one whom ance with rules of evidence and stringent man Blocker, president of the University it is hoped will become an established cllent. proof as to damage'S. Rather, it is believed of Texas Medical Branch in Galveston, If the publlc, therefore, can be provided a that the many traffic victims with small way to adjust satisfactorily and quickly and claims who are now forced into the State recently disclosed that the university will cheaply the small claim, everyone should court system would choose the easier, name its new Basic Sciences Building af profit. There are several methods available quicker, surer and cheaper route to compen ter Libbie Moody Thompson. which provide substantial promise of success. sation. Mrs. Thompson, wife of our former col The first which I would suggest is the arbi Financing the plan would require careful league, Clark W. Thompson, is known by tration of claims which is working success investigation and development of actuarial many of us, therefore, we know how well fully in many areas of the country. Bar As data and statistics in order to determine deserved is this honor. She has over the sociations, either on a voluntary or paid both the initial and operating funds neces basis, under a rotating appointment system sary. However, as demonstrated by the recent years distinguished herself in many civic by the courts, have demonstrated a substan Federal legislation with r-espect to flood in and philanthropic causes. tial capablllty to dispose of small claims with surance, the cooperative efforts and resources As the wife of my highly respected equity and dispatch. of the Federal Government and private in predecessor as Representative of the The second alternative suggested is the dustry would seem the best method of fund Ninth Congressional District of Texas, Widespread availabillty of insurance coverage ing and operation. Several methods recom she earned the esteem and affection of all which would compensate policyholders with mend themselves for development of the out regard to fault for their own injuries and Federal share of the costs. These include, of my constituents. Those of us who have losses arising out of automobile accidents. inter alia, an annual Federal tax on motor the pleasure of knowing Libbie Thomp Surely the resources and imagination of the vehicle registration, use of gasoline taxes and son, know that this is a fitting tribute insurance industry can provide an innova other sources which further dialogue might to a great and lovely lady. tive coverage which would promptly compen prove f-easible. An article which appeared in the Gal sate the policyholder for his medical ex Admittedly, there remain many questions veston Daily News on February 1, penses, loss of wages and perhaps even his with respect to the establishment and the follows: pain and sufi'ering. operation of such a plan. However, I would The third suggestion is one to which I hope its presentation will at least bring BASIC SCIENCES BUILDING NAM'ED FOR have given some thoughtful consideration, about further discussion and that it may MRS. THOMPSON and which I submit not with any pride of have some contribution to make in the ulti The new Basic Sciences Building at The authorship but With the hope that it will mate solution of the overall problem. There University of Texas Medica: Branch w111 be further develop the dialogue now taking remain too many questions, too many un named for Libbie Moody Thompson, known place. I would thus urge careful investiga known variables and too little objective data to many as "the first lady of Galveston." tion and analysis of a plan establishing a in the present search for solution to this The building is now under construction. Federal agency that wouK compensate vic major social problem to suggest any defini Mrs. Thompson, Galveston native, is the tims of automobile accidents regardless of tive solutions. wife of Clark W. Thompson, longtime U.S. fault for their out-of-pocket expenses. Claims However, as one who has a strong belief in Congressman, and daughter of the late Mr. would be limited to a maximum of $2,500. society's ability to determine its best direc and Mrs. W. L. Moody Jr. Thus, unencumbered with questions of fault, tions and course, I believe that thoughtful Commenting on the new building, she said, the agency in ex parte proceedings could ex and considered publlc dialogue will indicate "Dr. Truman Blocker and I have worked peditiously treat the minor claims that pres such solutions. many months to perfect the transaction ently comprise a major portion of the court's In conclusion, let me say I am equally con which brings about the Libbie Moody dockets. The present court system would vinced that, initially, implementation of in Thompson Basic Sciences Building." then be able to devote its attention to the dicated reforms will depend on the imagina In announcing the new building, Frank refined and deliberate process of adversary tion and initiative of the parties concerned. C. Erwin Jr., chairman of the board of re trial in major causes of action where the However, if the Bar refuses to discuss the gents, said Mrs. Thompson has provided an plaintiff's claims of pain and suffering and possibility of som-e loss of cllents and income; initial gift of $1 million in memory of her loss of future earnings require such care if the industry falls to clearly and objec daughter Libbie to The University of Texas ful scrutiny. tively discuss investment income on reserves for the use of the Medical Branch at Gal Under the plan, claimants could recover and its underwriting and risk classification veston. for hospital, medical and drug bills, loss of practices; if insurance agents and companies earnings and other out-of-pocket expenses fail to discuss marketing procedures; if State "Mr. Thompson and I plan to erect a suit to be specified in the legisl81tion. There would insurance commissioners fail to do their job; able plaque, probably in the auditorium of be no award for pain and suffering and, since then, I am certain more severe action will be this new building, to commemorate this me most automobiles are covered by collision in demanded by the publlc and ultimately leg morial gift," Mrs. Thompson said. surance which currently provides adequate islated by its Representatives in government. "Our Libbie, in whose memory this gi.ft to protection, property damage to automobiles I am further convinced that solution to the Univ-ersity of T-exas was made, was a would not be included. the problems of automobile insurance can native Galvestonian, educated in th-e public While it appears that Congress has the come only after full discussion before a single schools of Galveston, and during her entire power to take the automobile accident prob public forum, presided over by qualified and life a work-er in behalf of the betterment of lem out of the courts (The Moses Taylor, 4 impartial arbiters aided by specialized staff the community. I feel that this gUt to the Wall. 411 (1867), and NLRB v. Jones and and adequate funds. Only in such a forum, Medical Br.anch is a :fitting memorial to her." Laughlin Steel Corp., 301 U.S. 1, 48 (1937)), where all interested parties may present their The facility will be located across from the and proclaim an exclusive Federal adminis views and the subject considered on a prior Gail Borden Building between Avenues Band trative remedy insulated from judicial re ity basis, can their differences be justly re C, and will houae the departments of physi view, (Switchmen's Union v. National Media solved. That forum is the Congress of the ology, biochemistry, m-edical el-ectronics, tion Board, 320 U.S. 297 (1943)), such coercive United States. medical photography, m-edical 1llustration, action seems unnecessary. The anticipated The Department of Transportation is not audio visual servic·e, and the print shop. superiority of the agency relief should allow the answer; the Federal Trade Commission Also included in the one-half block struc the plan to operate efilciently on a voluntary is not the answer. These routes to solution ture will be teaching laboratories for bio basis. Thus, submission of a claim to the are dilutory in nature, will produce statistics chemistry, physiology, and pharmacology and Federal agency would be completely elective not dialogue, observations not legislation, a completely equipped closed circui·t teaching under the plan and the claimant would lose avoidance not decision. At best, considera tel-evision studio. no presently-held negllgence recovery rights. tion of the problem by these agencies gives The building is being constructed at a cost Rather, the agency would be established in the insurance industry an opportunity to of approximately $4.4 million, including ar addition to present court remedies and put its house in order prior to effective public chitects f-ees, equi·pment and miscellaneous would be given concurrent jurisdiction with hearings being convened. Those seeking a exp-enses. the State and Federal courts. solution should urge their Representatives Many of the teaching fac111 ti-es are being February 7, 1968 EXTENSIONS OF REMARKS 2569 made available by a $731,000 National Insti- Since the time of the establishment of through a congenital opening in the unclosed tutes of Health Grant. · school safety patrols in 1922, the tramc cranium. Commenting on the new facility, Dr. The study plan at GWU calls for selecting Blocker, UTMB president, said, "This build death rate for this group has continued to decrease to nearly one-half, while the patients in five categories according to the ing will enable the Medical Brand~ at Q-a.l following priorities: (1) Patients who are veston to continue and to expand its program death rate of other age groups has prac pregnant and who used LSD before concep of basic science in research and teaching. tically doubled. tion; (2) Pregnant patients who used LSD I am especially pleased that it will carry the during pregnancy; (3) ·LSD-using fathers name of Mrs. Libbie Moody Thompson-a gra of babies with no maternal exposure to the cious lady who has contributed much of her drug; (4) Fathers of babies with some charm to the city and The University of More Evidence for Need of Legislation maternal exposure to LSD; (5) Females with Texas Medical Branch at Galveston." exposure who are planning to become preg The Thompson's daughter is survived, in To Curb LSD Use nant. addition to her parents, by her son, John The study protocol consists of the screen Walker of Galveston, two granddaughters, ing of patients for history and clinical con Margaret and Libbie Thompson Walker, and a HON. PAUL G. ROGERS firmation of LSD exposure. Blood tests are brother, Clark W. Thompson Jr., of Houston. made to determine if there is any chromo OF FLORIDA somal damage to either mother or father, IN THE HOUSE OF REPRESENTATIVES or both. An attempt is to be made to obtain Wednesday, February 7, 1968 a sample of the LSD that was used and to National School Safety Patrol Week identify the father. Mr. ROGERS of Florida. Mr. Speaker, The difficulty of finding the fathers and last year I introduced a bill with the the unwilllngness of hippies to disclose HON. RICHARD FULTON sponsorship of 24 of my colleagues on sources of the lllegal drugs that were used the House Interstate and Foreign Com are hampering the study, Jacobson said. OF TENNESSEE Besides blood samplings, skin biopsies are IN THE HOUSE OF REPRESENTATIVES merce Committee that would establish criminal penalties for persons using or to be made of both parents if a cellular Wednesday, February 7, 1968 effect is found in the blood. Prenatal evalu possessing LSD. ations of electrocardiograms will be made Mr. FULTON of Tennessee. Mr. Speak At that time there was evidence that bimonthly of the developing fetus. er, it has been my pleasure today to in the use of this dangerous drug had And at delivery of the child or its abortion troduce a joint resolution· calling for the definite physical effects on the user as as series of many complicated tests will be designation of the second week of each well as psychological effects. made. In this morning's Washington Post, Jacobson said he expected that he and his May as "National School Safety Pa.trol colleagues wlll publish a full report by June, Week." there is an article that further spells.out perhaps in the Journal of the American My colleagues, I am sure, are a ware of the dangers of this drug. Primarily it Medical Association. the tremendous work done by the school points to the hazards passed to the off Monday night's staff meeting was open to safety patrols--66 of them introduced spring of women who have used the drug the press to further publicize the hazards resolutions similar to mine. I hope they during pregnancy. of taking LSD. will join with me in adding their names I would include the article for the in In a previously reported case, Drs. Joseph to the growing list of sponsors for the formation of my colleagues and urge that Egozone and Samuel Erwin, of the Univer sity of Oregon Medical School in Portland, resolution I have introduced this after they join with me in calling for the fast reported the first appearance of the "Phila noon. est possible enactment of my proposed delphia-L" chromosome disorder in the off The school safety patrol movement bill, H.R. 14096. spring· of an L.SD user. That baby had an has grown tremendously since its origin · The article follows: inborn intestinal blockage. Another report in the early 1920's. Today, it is a national LSD FOUND To DEFORM BABIES on the effects by LSD on a hippie mother's institution-a vital force in the im (By Nate Haseltine) baby showed the baby had an enormous portant work of protecting America's skull, the two halves unclosed and a double Ten hippies, young women who became row of front teeth. children from the hazards of modern pregnant after or during "trips" on the mind tramc. bending drug LSD, are under special care at More than 900,000 boy and girl pa.trol George Washington University Hospital here. members in the United states daily help Two of the ten have already given births to to protect 19 million schoolchildren en infants whose bodeis showed broken chromo My Flag and Country rolled in thousands of schools. In cities somes. A third lost her deformed fetus the and towns, in rural areas, and on school seventh week after conception. buses, the school safety patrol serves The status of a special study on the effects HON. EDWIN D. ESHLEMAN of LSD was outlined at a staff meeting for OF PENNSYLVANIA to remind schoolchildren of hazards of hospital obstetricians and gynecologists on street and highway crossings on their Monday night by Dr. Cecil B. Jacobson, a IN THE HOUSE OF REPRESENTATIVES way to and from school. geneticist, Macy faculty fellow and clinical Wednesday, February 7, 1968 This "nation on wheels" can well be instructor at the Medical Center. proud of the work that these young citi The two who gave birth to the babies with Mr. ESHLEMAN. Mr. Speaker, one of zens are doing. broken chromosomes were unmarried and my constituents, and a former veteran, Educators regard the patrol movement had "only hazy recollections" of the identi Mr. Harold F. Mohn of Myerstown, Pa., ties of the fathers. Both conceived while has been moved to compose the following as an excellent school activity, as well as under the effects of LSD, Jacobson said. The a method to help develop a sense of re dangers of chromosomal disarrangements as poem to register his concern over recent sponsibility, character, and positive use effects of LSD effect are already well known, demonstrations, draft card burnings, and fulness for community living. Commen having been documented in animal tests and refusals to serve our· country in the cru dation for patrol work is universal. It clinical experience. cial period of world history. I include it comes from parents, educators, police, Chromosomes are packets genes, the hered in the RECORD: and other outstanding public omcials, all itary beads of life that direct every phase of MY FLAG AND COUNTRY of whom, along with the American Au body development from the womb to the grave. For every broken chromosome, Jacob I hold two things above else tomobile Association, contribute so much son said, perhaps a hundred genes are lost or Most cherished and most dear. to the program. caused to malfunction. There are my flag and country, One of the biggest recognition cere In the case of the two babies, studies showed I treasure and revere. monies is held here in the Nation's Capi they possessed the "Philadelphia-L" chromo I'd glady give this life of mine tal each May. I am speaking of the some derailment. The same derangement To keep both always free, school safety patrol parade down Con shows up in persons in the final phase of And in this heart and mind of mine stitution Avenue by over 20,000 boys and humans wtih fatal myelogenous leukemia. I love them passionately. girls from more than 20 States. Despite their broken chromosomes, found I promise to defend and give It is a proud day for the youngsters. in a great variety of their body cells, Jacobson All that is part of me It should be a day for saying "thanks" said, the infants showed no structural defects No sacrifice will be too great, after the first three months of life. Both have by the people of this country to a group been adopted and their adoptive parents An honor it wlll be. which has been at least partially re were informed about the circumstances. Where'er in freedom's hallowed name sponsible for the improvement of the In contrast, the seven-week-old fetus had My c()Untry's forced to fight, tramc death rate of children 5 to 14 years an encephalocele, a detect of the central I willlngly wlll take up arms, of age. nervous system, a herniation of the brain Her cause is just and right. 2570 EXTENSIONS OF REMARKS Febr1!-(1ry . 7, 1968 National Maritime Needs: Opposing States from the foreign oil areas of the world, dustry needs? If the industry does not want u.S. flag tankers carry only three per cent ·or to join DOT, and if Oongress doesn't think Views the total. Our waterborne commerce has in it should, does this mean that it should be creased by 31 per cen·t or more in the last bled white? What about the public interest? six years, but our ship capaci~y has increased The nation requires a strong m.ar1time in HON. WILLIAM S. MAILLIARD by only four and one-hal! per -eent. There is dustry, be it a part of the Commerce Depart OF CALIFORNIA an overlying reason for those melancholy ment or DOT, or an independent agency as facts, and that is the matter of cost. many in the industry and in Congress want IN THE HOUSE OF REPRESENTATIVES It has been said that because of low labor it to be. Let's not lose sight of the over-all Wednesday, February 7, 1968 costs abroad, three ships can be built in a needs of the nation. foreign yard for the price of two in the United As we said above, we really don't know the Mr. MAILLIARD. Mr. Speaker, on States. The result is that enterprises here at rea.wn for the cut in maritime funds. It is Monday, February 5, I inserted in the home can receive a subsidy from the federal interesting to note, however, that the total body of the REcoRD remarks entitled governm~nt when they build vessels here that proposed budgetary reduction for the Com "American Shipping: Scuttled Again," have in&tallations oi certain defense facili merce Department with all its diverse oper in which I pointed out the substantial ties. But only 13 vessels wlll be built in Amer ations came to about $160 million, or just cuts made by the President in merchant ican shipyards this fiscal year. All of them the amount that maritixne is being sliced. It's ship construction for :fiscal year 1969. I must be subsidized. dj.fficult to believe that the Maritime Adxnln There is the problem of the cost of operat istration is the only segment of the Com included in those remarks portions of ing American ships. By law our ships must merce Department that lends itself to cost various press reports indicating that per hire a substantial percentage of American reduction. Particularly at a time when the haps these reductions were made in a :fit seamen. Foreign-flag vessels, by and large, President is trying to get Congress to pass of pique by the administration over ef can sign on anybody available in the sea a tax surcharge and Congress balks until forts to keep the Maritime Administra men's market-Fllipinos, Chinese, East In government spending is cut further. tion out of the Department of Transpor dian lascars-at lower wages and with lower Further, it is known that a couple of years tation and without regard for our na Living standards aboard ship. Their shipown ago whEm the industry and the administra ers, therefore, can quote cheaper rates to tion were having a dispute over government tional interest. shippers everywhere. plans, the industry was told that if it didn't Accordingly, I am inserting at this We must then ask ourselves, if in spite of get in line it would be "budgeted to death". time two press reports-the :first from such conditions of economics, we want to We can understand Mr. Boyd's desire to the Oakland Tribune of January 21, maintain an American merchant marine that convince maritime leaders of the wisdom of carrying the synqicated column of the comports with the prestige and the commerce joining DOT (some are on record as recom distinguished and senior Republican of this country. Do we want to make certain mending such a move) . It would bring the Senator from Dlinois, pointing up the that in time of international difficulty we whole transportation system under one roof need t\l revitalize the American mer will have an adequate merchant marine? and facilitate planning. As Senator Mon Should we use public funds to subsidize it? roney notes, "there can be no ooordina tion chant marine; the second, an editorial The answer must be, indeed, yes. of an over-all transportation system when from the Journal of Commerce of Feb one of the major segments is on the outside." ruary 7, entitled "Budgeted to Death?" [From the New York Journal of Commerce, Yet, what would happen if the industry de which raises some very thought-provok Feb. 7, 1968) cides to stay out of DOT and can continue to convince members of Congress not to make ing questions concerning the apparent BUDGETED TO DEATH? any changes? We would hope that the admin hostile attitude of this administration If maritime industry executives thought toward our maritime industry. Each istration would not forget the importance that when they won the battle to keep the of the maritime industry to the nation. In speaks for itself in presenting its respec industry out of the Department of Trans or out of DOT, the nation cannot afford a tive views on our maritime industry, its portation they had won the war, they had a weak maritime industry. It is an industry too national importance, and support, or lack rude awakening last week. While the Mari important to be sacrificed to the expansionist of support, for its much needed revital time Adxnlnistration is s•till part of the De political plans of Mr. Boyd and his associates. partment of Commerce, it is obvious that ization. I therefore commend to the at continuous pressure is to be applied to the tention of my colleagues the following indus.try to get it to "see the folly" of its articles: ways and seek inclusion into DOT. President's Message on Veteran Benefits [From the Oakland (Calif.) Tribune, The pressure is the kind that really hurts Jan. 21, 1968] a slowdown in funds for new vessel construc A SENATOR'S NOTEBOOK tion, amounting to approximately $160 mil HON. JOHN J. McFALL lion. This n~spaper has been calling for OF CALIFORNIA (By EVERETr McKINLEY DmKSEN) cuts in the budget and, as we stated last What do we Americans want to do about week, felt that President Johnson could, and IN THE HOUSE OF REPRESENTATIVES the sad state of the out-of-date, lagging should, have cut deeper into most spending Wednesday, February 7, 1968 United States merchant marine? plans. However, the cut in maritime funds Here is a Inighty country with power and raises a very serious question. Is the pro Mr. McFALL. Mr. Speaker, in the Feb richness unsurpassed, whose ports ship and posed cut a result of a legitimate desire to ruary issue of the Torch, the official pub receive goods and products to and from reduce spending? Or is it being used as a lication of the veterans of World War everywhere on the globe. You would ·think, club to influence industry leaders? If the I, an article appeared by National Com then, that our merchant fleet would also be answer is the former, that is one thing. I! mander Philip F. O'Brien. I would like unsurpassed. Well it is not. it develops that the slowdown is a pres During World War II it was the largest sure move then we think that a grave in to commend the commander's comments merchant fleet in the world. Wh&e do you justice is being done both to the industry to my colleagues, which are as follows: think we rank today in world ship construc and the public. And unfortunately, there is PRESIDENT'S MESSAGE ON VETERAN BENEFITS tion? The Soviet Union, Japan, Germany, growing evidence that it might be the latter. The President's message to Congress, con Great Britain, France, among others, are out At a major transportation industry meeting tents of which I know you have read in the sailing us and outbuilding us. We rank 14th held a day afrer the President's budget mes press, are of great benefit to the servicemen as builders of ships. sage, Alan Boyd, secretary of transportation, discharged from service, and certainly every When we were a new na-tion of 13 states, and Senator Monroney indicated that the World War I veteran is tremendously pleased we were a truly maritime nation. Ocean com maritime industry might not have done so with the program that the President has merce was brisk and our merchant sailing badly money-wise had it been in the Depart outlined. There isn't very much doubt but vessels navigated all of the Seven Seas. When ment of Transportation. Maybe so, but is what Congress will go along with the pro pirate ships and the ships of other nations the converse true? Did it get clobbered be gram and wholeheartedly support such vet harassed or attacked our oceangoing com cause it wasn't in? erans' legislation. merce, American fighting ships hunted them Asked to comment on the transportation It was my privilege to be briefed on this down and put an end to it and we were re aspects of the budget, Mr. Boyd said the message before it was released to the press, spected. Sub&tantial shipyards developed maritime industry "keeps saying things and as I listened, my mind went back to along the eastern coast and the whole nation couldn't be worse ... maybe now they ought 1919-discharged from the Army with the was enriched by our maritime success. to be willing to move over to DOT." big sum of $60, no civilian suit to wear, and Now look at us. Although the operations Senator Monroney said the maritime cut no job to come home to; signs in some res of the various American oil companies in for back was xnade because the industry is "com taurants read, "No soldiers or dogs allowed", eign fields are enormous and require a huge pletely disorganized" and "voluntarily black and I could not resign myself to the fact that fleet of tankers, and although our Navy must balled itself" from DOT. That well may be, the Veterans of World War I never were given be supplied wherever it may be, the American and perhaps the Department of Transporta any consideration when they were discharged merchant tanker fleet now averages about 15 tion could be a more efficient operation if from the service. At the age of 73, even years of age per tanker. It is the oldest tanker the maritime industry were made part of it. though they h ave been on the pension rolls fleet in the world. But, and we think this is a big but, isn't many years prior, they are still forced to fill Of all the petroleum brought to the United something being Inissed? What about the in- out an income questionnaire to receive a February 7, 1968 EXTENSIONS OF REMARKS 2571 small pension. Certainly no veterah at the The story in the Inquirer will, in time, erty," he said. "They did the demolition, age of 73 with the disabilities of old age, be the story of thousands of people who much of the carpentry work, the painting." doctor b1lls and drug b1lls, would be able to will live decently in homes they can call "It not only created jobs for them but it increase his income. So, we as Veterans of made them part of what's happening here. Word War I ask the question, "Why impose their own. They're the interpreters of the change in these added hardships and worry onto these I insert this story at this point in the their community." - · veterans when this will not cost the govern RECORD: ment one penny?" On the contrary, it will [From the Philadelphia (Pa.) Inquirer, Jan. save the government many, many thousands 27, 1968] of dollars in processing these income ques OLD HOUSE BECOMES A MODEL UNDER While the Farmer Gets Less, the House tionnaires. REHABILITATION PLAN We also ask the question, why a pauper's wife Pays More oath is required at the age of 73 to a vet Carolyn Harris is coming home. eran wishing to go into a Veterans Admin Not to the home she left eight years ago istration hospital when beds are available. near Birmingham, Ala., but to the house at Again, this would not cost the government 523 Douglas st., in West Philadelphia, next HON. MARK ANDREWS much. If the generals and admirals can go to "Mom and Pop Fager," where she lived for OF NORTH DAKOTA into government hospitals at $1.00 a day, three years untill965. IN THE HOUSE OF REPRESENTATIVES why should not the veterans at age 73 be The James D. Fagers of 521 Douglas st., allowed the same privilege. . Again we say are the same--except that they're three years Wednesday, February 7, 1968 that these laws which have been on the books older now. "I'm 74 and worked 50 years for Mr. ANDREWS of North Dakota. Mr. for many years, should be written off. the railroad," says Fager. But the house is different. Much different. Speaker, it is my custom from time to Also, the matter of drugs. It was advo time to report to the people of my dis cated by the Members of Congress when the DREARY STRUCTURE trict on my activities as their Repre Social Security Bill was being debated, that When Miss Harris, 25, and a b1lling clerk drugs should be furnished free to those un for the Sears Roebuck and Co., on Roosevelt sentative in Congress, and to express my der Social Security. This was defeated by blvd., lived in the house a few years ago, the views on a nwnber of matters facing only two (2) votes. Again, we maintain that solid old brick row home was a dreary struc Congress. In the report I am sending to the Veterans of World War I should receive ture on a dreary street. day, I am discussing the farmers' dimin drugs free of charge. The amount of their Paint was peeling from the walls, the ishing share of the conswners' food dol drug b111 in many, many cases eats up prac wooden steps in the three-story house were lar, and the budget for fiscal year 1969. tically one third of the income they receive rickety, the plumbing sometimes worked and Under unanimous consent, I place it in from pensions. sometimes didn't, and big cracks around the the RECORD at this point: foundation, windows and doors made it im possible to heat properly. WHILE THE FARMER GETS LESS, THE HOUSE "Sometimes in the winter we couldn't even WIFE PAYS MORE Decent Housing for All Americans come downstairs--it was horribly cold," ex [From the Farmer] plained Miss Harris, an attractively slender, Farm prices self-assured young woman dressed in a light plaid suit. "I was living then with my sister, JANUARY 1948 HON. WILLIAM S. MOORHEAD Jewel, and my niece, Cynthia (now 3), and Hogs: OF PENNSYLVANIA we would go over to the Fagers a lot just Top of market __ hundredweight __ $27.75 to warm up." Average, barrows and gilts-do ___ _ 27.62 IN THE HOUSE OF REPRESENTATIVES Steers: Wednesday, February 7, 1968 NEW COAT OF PAINT Choice ______do ___ _ 34.25 Sunday, however, the house at 523 Douglas Good slaughter ______do ___ _ 29.25 Mr. MOORHEAD. Mr. Speaker, one of st., and the corner Fager house next door, Medium ______do ___ _ 23.00 the major problems this Nation faces is were sporting a coat of fresh pastel green Heifers: the need for decent housing for all Amer paint on the brick exteriors. 750 to 900 pounds, good to icans. The problem is especially acute for Inside, unneeded partitions have been choice ______do ___ _ 29.50 ripped out, ceilings plastered, steps repaired, families of low income who make their Cows:Good ______do ___ _ homes in the older inner city areas. wiring and plumbing improved, hardwood 19.75 floors laid, and the walls covered with spar Canners: Typically these sections are blighted or kling new paint. Cutters and common cows_do ___ _ 14.50 deteriorating, and the hope of individual "It was impossible to live in before," said Bulls: families for better housing is frustrated Miss Harris, pointing to the attractively fur Good ______do ___ _ 21.50 by the lack of adequate financing at nished house. "And now just look at it." Calves: terms these families can afford. That's what people were doing. Looking Veal, good to choice ______do ___ _ 31.50 at it, from 2 to 5 P.M., as executives and em Stocker and feeder steers: This is a problem which is receiving Good to cholce ______do ___ _ special emphasis from the Federal Hous ployes of the Philadelphia Housing Develop 23.75 ment Corporation showed visitors around the LambS: ing Administration. Some encouraging "model home" and first of a group of 18 re Good to choice ______do ___ _ 23.40 early signs are indicated in a recent FHA habilitated houses to be readied for sale to Wool: report. low-income families. Bright, % comb., grease_pound __ .51 The Federal Housing Administration "I WANT ONE" Wheat: said that more than 50 percent of its No. 1 dark northern _____ busheL_ 3.02%, There were people like the elderly woman, No. 1 amber durum ______do ___ _ home mortgage insurance on existing supporting herself with a cane as she walked 2.99~ properties now is on homes in the cities. Corn: in with her husband to sign a guest register. No.4 yellow, nominaL ____ do ___ _ 2.49%, This is a signal that something is being "I sure want me one of these houses," she Oats: done to alleviate the problems of housing said. "My, but they're pretty." No. 3 white ______do ___ _ 1.32%, in the inner city and that decent housing "Gorgeous, ain't it?" a younger woman Rye: is being built, rehabilitated, and pur whispered to her husband, nudging him with No. 2------do ___ _ 2.797'2 chased. her elbow. Barley: I was especially gratified to note an According to Augustus Baxter, director of Nominal range ______do ___ _ 2.29 article in the January 26 edition of the Community Services, PHDC, Miss Harris will Flaxseed: pay only a $200 down payment and $64.53 a No. 1------do___ _ 7.00 Philadelphia Inquirer which related a month with a low 3 percent interest on the Soybeans: story of a woman and her family who $11,600 home when she moves in about April. No. 2 yellow______do ___ _ 4.16 were to move into their own home with Financing is through the Federal Housing the aid of FHA's 221 (h) program. Authority. JANUARY 1968 This program, which offers homeown Miss Harris' family will include her mother, Hogs: Mrs. Alice B. Harris, and her niece. St. Paul, barrow and gilt ership to lower income families, helps average _____ hundredweight__ 17.15 nonprofit sponsors to salvage sound but COMMUNITY PRIDE Steers: rundown houses to upgrade neighbor "One of the good things about all this," St. Paul, choice ______do____ 25.75 hoods, and to work with low-income Baxter said, "is that the program doesn't Good ------do____ 23.50 families to achieve their goal of success stop just with helping a low-income family Heifers: ful homeownership. Under the program, to buy its own home. It revitalizes the whole· St. Paul, good and choice_do____ 23.25 community--develops community pride." Cows: deteriorated homes are acquired by spon He pointed out to several young men, some St. Paul, utility and com- sors who refurbish them and sell them to in tattered work clothes, standing about. mercial ______do____ 17.00 low-income families. "These fellows helped rehabilitate the prop- Canner and cutter______do____ 15.00 2572 EXTENSIONS OF REMARKS February 7, 1968

Farm prices-Continued Farm prices-Continued and such comparisons mean little to most JANUARY 1968-continued JANUARY 1968-continued Americans, however, and that's why I asked Bulls: Flexseed: the Li-brary of Congress to provide me with the . records and advertisements reproduced St. Paul, cutter to commer- Minneapolis No. L-----_busheL. $3.14 cial ______hundredweight __ $20.50 Soybeans: . above. Minneapolis, No.1 yellow.• do____ 2.58Y:! Clearly, to remain in business, farmers Vealers: Soybean meal: must get a fairer share of the consumers' food St. Paul, choice and prlme.do____ 32.00 Minneapolis, 44 percent dollar. Also, since over half of the wheat we Stocker and feeder steers: bulk, wholesale ______ton___ 75.30 grow must be sold overseas, we must have an St. Paul, good and choice.do____ 27.00 expanded and more aggressive Food for Peace Slaughter lambs: According to the Chicago Tribune, food ads Program and we must make sure that our St. Paul, choice and prime.do____ 23.50 showed these meat prices: farm products don't get frozen out of world January 1948: Pound markets by restrictive trade agreements en Feeder lambs: Pork loin ______$0.43¥2 St. Paul, good and choice ..do____ 21.00 tered into by our Government. (Wheat sells Sirloin steaks______.69 Wool: for $3.50-$4 per bushel in Europe, but re Minnesota farmers ____ pound ___ _ Standing rib roast______.47 strictive import fees charged U.S. wheat were Wheat: January 1968: allowed to continue after the Kennedy Round Pork loin______.69 of trade negotiations.) Finally, we must work Minneapolis, No. 1 dark no. Sirloin steak______1.29 ~spring ______busheL. 1.60Y:! for the approval of a workable national Agri Standing rib roast______.89 cultural Bargaining Act to give the farm Minneapolls, No. 1 hard amber durum ______do____ 2.02 segment of our economy the collective bar All of us from agricultural areas sense in gaining power enjoyed by the rest of our Corn: our bones the cost-price squeeze farmers are Nation's economy. Minneapolis, No.2 yellow.. do____ 1.12 experiencing. The index of prices received by THE BUDGET Oats: farmers dropped 14 points in 1967 and the Minneapolis, No. 2 extra parity index, showing the ratio between farm This is the time of budget decision, the heavy whlte ______do____ .72 prices received and the farmers' cost, is at" time the President presents the budget to the lowest point since such records were Congress. I felt you'd be ·interested in these Barley: started 30 years ago. The consumer price actual budget figures as presented by the Minneapolis, No. 3 or better ______do____ 1.15 .Index continues to rise and is currently at President. You can get an indication of the 145% of the 1947-49 average, while the farm expansion of Federal spending and, to some Rye: ers' share of the food dollar has declined from degree, see where this expansion is concen Minneapolis, No. 2 ______do____ 1.15 51¢ to below 40¢ over the same period. Indexes trated.

BUDGET OUTLAYS BY FUNCTION [In millions of dollars)

Expenditures Expenditures Description Description 1967 1968 1969 1967 3968 1969 actual estimate estimate actual estimate estimate

National defense: Commerce and transportation: Department of Defense-Military: Air transportation ______------__ ------__ ------Water transportation ______945 950 1, 282 Military personneL ______------19,787 21 , 800 22,793 792 855 1, 000 Operation and maintenance ______19,800 22,260 Ground transportation ______------______Procurement______19,000 Postal service ______4, 050 4,385 4,420 19,012 21,470 23,445 1,141 1, 087 767 Research, development, test, and evaluation ______7,160 7, 200 7, 800 Advancement of business ______------189 160 153 Military construction and other ______2,650 3, 590 508 Area and regional development______137 312 425 Regulation of business_------lOI 100 107 Subtotal, military------_____ 67,608 73,860 76,806 Adjustments 1_____ ------_ -48 -156 -157 Military assistance _____ -----______------___ 1, 943 1, 675 1, 853 Atomic energy ___ ------__ ------2,2.64 2,334 2, 546 Total, commerce and transportation ______7,308 7,695 7,~ Defense-related activities ______--_ -14 115 242 Adjustments 1 ______------____ ------1,706 -1,491 -1,654 Housing and community development: Aids to private housing ______-225 -539 -457 Total, national defense ______70,095 76,491 79,792 Public housing programs ______------_____ 251 297 350 Urban renewal and community facilities ______504 865 1, 432 International affairs and finance: National Capital region ___ ------Conduct of foreign affairs ______66 90 104 366 559 438 Proposed legislation ______------14 Economic and financial programs: Adjustments 1____ ------______------:.::ig -15 -14 Development loans __ ------_: ______662 625 670 Supporting assistance ______------_ 587 602 621 Total, housing and community development______577 697 1, 429 Alliance for Progress ______511 465 516 Technical cooperation ______------224 203 216 Health, labor, and welfare: Other ______------533 522 541 Social insurance ____ ------____ ------27,117 29,946 33,706 Foreign information and exchange activities ______245 256 255 Medicare and medical assistance ______4, 762 7,061 8,183 Food for Freedom ______------1,452 1,315 1,444 Other health services and research ______2,010 2,393 2,497 Adjustments 1______------__ --- -469 -217 -224 Public welfare (excluding medical assistance) ______3, 041 3,484 3,605 Economic opportunity programs ______1, 485 1, 853 1,997 Total, international affairs and finance ___ : ______4,110 4,330 4,478 labor and manpower programs ______1, 069 1, 326 1, 492 SchoolOther ______lunch, special milk,__ and______food-stamp programs______418 500 586 Space research and technology: Manned space flight ______365 479 593 3,649 3,166 2,993 Adjustments 1 ______------755 -646 -714 Space science and applications ______796 698 644 Space technology ______440 420 . 425 Total, health, labor and welfare ______39,512 46,396 51,945 Aircraft technology ______------89 113 120 Supporting activities ______------__ ---_--- 452 411 394 Education: Adjustments 1______------; --- -2 -4 -3 Elementary and secondary education ______1, 859 1, 930 1, 931 Hi~her education __ ------______------711 1, 057 1, 065 To.tal, spate research and technology ______5,423 4,803 4,573 Science education and basic research ______4J5 456 480 Other aid to education ______628 730 905 Agriculture and agricultural resources: Adjustments 1____ ------__ ------11 -15 -16 Farm income stabilization ______------2,267 3,428 3,459 Financing farming and rural housing ______-10 26 32 Total, education ______------3,602 4,157 4,364 Financing rural electrification and rural telephones ______12 13 13 Agricultural land and water resources ______353 362 350 Veterans benefits and services: Research and oth.er agricultural services ______570 623 662 Veterans service-connected compensation ______2, 310 2, 435 2,461 Adjustments •------__ ------37 -39 -42 Veterans non-service-connected pensions ______------___ 1,893 2, 063 2, 101 Veterans hospitals and medical care ______1, 391 1,458 1, 546 Total, agriculture and agricultural resources ______3,156 4, 412 4,474 Veterans education ____ ------__ _----, ------280 502 604 .--- Other veterans benefits and services ______999 843 931 Natural resources: Proposed legislation ______-18 land and water resources ______·____ 2,335 2, 465 2, 536 Adjustments 1______------___ -508 ---:.::soz -494 Forest resources ______------482 518 493 Mineral resources ______------122 133 131 Total, veterans benefits and services ______6, 366 6, 798 7, 131 Fish and .wildlife resources------136 153 158 Recreational resources ______------194 245 309 General government: General resource surveys and administration ______275 250 239 Legislative and judicial functions ______254 280 300 Adjustments 1______------____ ------1,432 -1,348 -1,382 Executive direction and management______25 31 35 Central fiscal operations _____ ------968 1, 007 1,104 Total, natural resources ______------2,113 2,416 2,483 General property and records management______620 629 648 Footnote at end of table. February 7, 1968 EXTENSIONS OF REMARKS 2573

BUDGET OUTLAYS BY FUNCTION-Continued lin millions of dollars]

Expenditures Expenditures Description Description 1967 1968 1969 1968 1969 actual estimate estimate estimate estimate

General government-Continued Central personnel management ______Allowances for: 191 212 218 Civil!an an~ military pay increase ______1,600 Law enforcement and justice------426 462 529 Contmgencles ______------_ -----ioo 350 Other general government______213 203 205 Undistributed intragovernmental payments: Adjustments '---______---_------___ ------246 -207 -211 Government contributions for employee retirement ______-1,735 -1,913 -2,007 Interest received by trust funds ______-2,287 -2,678 -3,042 Total, general government______2,452 2,618 2, 827 lnteresL------12,548 13,535 14,400 Total, expenditures and net lending ______153,238 169,856 182,797

'Adjustments are for interfund and intragovernmental transactions and proprietary receipts. As usual, however, the figures don't tell teemed gentleman from Wisconsin, was a bipartisan accomplishment. So was the entire story. HENRY S. REUSS, has introduced legis draft extension. And the cutting of foreign Anticipated Federal income, for instance, lation to establish the Travel Incentive aid had been building up for years. will be $8 b111ion short of covering these The war in Vietnam, which has been held expenditures, even assuming the President's Act whereby tr.avel incentive stamps out as the prime issue in this election year, 10% surtax request is approved by Congress would be made available to Europeans was not even mentioned. Another leading is to become effective January 1, 1968 for corpo visiting the United States. sue, crime in the streets, was only indirectly rations and April 1, 1968 for individuals. The This legislation is designed to im mentioned, and passage of the gun control deficit for the current fiscal year is now esti prove our balance of payments by ex bill might just as well be thought of as a mated at $20 billion. panding world travel rather than re blow against organized crime. The public The figures don't reveal the fact that, in mind as revealed in this poll is as confused this time when our government needs to stricting it as the proposals made before as that of the Congress they hold so low. tighten its financial belt, the budget pro the Ways and Me.ans Committee yester The political meaning of all this is no Vides for an increase of 45,600 full time fed day by Secretary Fowler would certainly easier to deduce. During the last five years, eral employees--as mariy new federal em tend to do. Congress was held in lowest esteem in 1963, ployees as there are farmers in the entire I find Mr. REuss' proposal to be a more when it 'was given a score of 35 positive to state of North Dakota. In the four years since acceptable and beneficial solution to the 65 negative votes. Yet President Johnson the end of fiscal 1965, full time permanent travel aspect of the balance-of-payments swept the country and a Congress of his employees in the Executive branch of govern party with him on the record in 1964. On the ment wm have increased by 454,747 to a total problem and would at this time like to other hand, the highest Congress rating in of 2,687,500, a more than 20% increase. urge the Members of this body to give the same period of 71 to 29 in 1965 was fol The Administration's contention that nec this legislation their close attention and, lowed by the biggest loss the Democrats had essary war spending is the sole culprit caus I hope, vigorous support. sustained in the 1966 by-election-a net loss ing the ever-increasing size of the budget of 47 House seats. and the increasing national debt just doesn't Almost one wonders if issues are the guid hold water. Defense costs in Vietnam have in ing influences we think they are in elections. creased by $25,681 m1llion over the period from fiscal 1965 to fiscal 1969. Over the same Public Views Congress period other government spending has in creased $25,175 million. All of us who had hoped the President's HON. TOM STEED Fino Introduces Legislation To Prevent budget proposals would reflect genuine fiscal OF OKLAHOMA Any Decedents Estate Cash From Going restraint have again been disappointed. In the IN THE HOUSE OF REPRESENTATIVES months ahead, those of us on the Appropria to Nationals of Countries Not Allowing tions Committee will be hearing the testi Wednesday, February 7, 1968 U.S. Heirs To Collect mony of the various Department heads as Mr. STEED. Mr. Speaker, the ability they attempt to justify their planned outlays of your tax dollars. to see ourselves as others see us is a goal HON. PAUL A. FINO We all recognize that our nation faces a that helps any who can achieve it, espe financial crisis and that we live in a troubled cially Congress. In this year of great OF NEW YORK world. Because of the problems arising not problems and politics, the discussion of IN THE HOUSE OF REPRESENTATIVES only in Vietnam but also now in Korea and how the public views Congress contained Wednesday, February 7, 1968 perhaps shortly in the Middle East, our mili in the attached editorial holds special tary expenditures may well escalate. Cer interest. I am sure all Members will find Mr. FINO. Mr. Speaker, today I am in tainly, our nation must stand behind our this editorial of more than passing in troducing legislation to prevent the fighting men committed abroad. estates of American decedents from be Most North Dakotans accept and acknowl terest. The editorial, published in the edge the necessity of cutting back and post Lawton, Okla., Moming Press, on Feb ing distributed to nationals of any poning federal programs and activities while ruary 4, is as follows: country which the Secretary of the the emergency exists. This belt tightening, PuBLIC Vmws CONGRESS Treasury shall determine which does not however, must be preceded by a thorough ex Congress may be held in the lowest esteem permit U.S. heirs to collect from estates amination of all our domestic programs so in five years, as shown in the latest poll by of local decedents. that those which are wasteful, inefficient or Louis Harris, but anyone trying to find a Every year, thousands of Americans definitely postponable receive the sharpest broad reason for this View would be very leave estates to relatives in Iron Curtain cutbacks and the needed, workable programs much confused. For the criticisms and cheers wm be allowed to go on. countries-Poland, Russia, Hungary, and of those polled do not jibe. Romania in particular. Our Government This, after all, is only common sense. Specific criticisms of the first session of the 90th Congress were directed at failure to pa88 permits these legacies to be paid, and a gun control bill, cutbacks in aid to cities, tens of millions of dollars leave the failure to pass an open housing law andre country. Unhappily, however, the dis The Proposed Travel Incentive Act ductions in funds for the poverty program. tributees of these estates usually do not The gun bill may be connected to crime in get the money; it is purloined, sur the streets. The rest may be part of the Great charged, or confiscated by Communist HON. FERNAND J. ST GERMAIN Society program. central banks, exchange control authori OF RHODE ISLAND But when it comes to the positive side, the ties, and other bureaucrats. Thus, these public cheered refusal to pass the income tax IN THE HOUSE OF REPRESENTATIVES surtax, for increasing Social Security bene funds are usually just a dollar gift to Wednesday, February 7, 1968 fits, for extending the draft and for cutting international communism, a drain on foreign aid funds. Without a surtax, there U.S. gold and dollar soundness and a Mr. STGERMAIN. Mr. Speaker, my would be no funds for the Great Society contribution to a balance-of-payments colleague on the House Banking and measures the Congress was criticized for not deficit. None of the Soviet bloc nations CUrrency Committee, the highly es passing. Increasing Social Security benefits extend similar rights to U.S. heirs. CXIV--162-Part 2 EXTENSIONS OF REMARKS February 7, 1968 I might also add that Communist the language and cultural problems of six served in this study is the Headstart Program. nations are not the only ones involved. and a half million Americans of Mexican Children develop language habits, articulate, Many non-Communist nations with descent, in the context of eleven Inillion and respond in meaningful situations with Spanish speaking Americans in the United teachers who have empathy. Language com strict exchange controls do not let local States, have never been properly researched, petence was not enough. Empathy and feel estates distribute bequests to U.S.-named documented, and published. Despite the ad ing for people were as important to this suc distributees. vances of electronic technology, neolinguistic cess, that is, for comxnunication, as pronun All in all, this loophole in our laws sciences, and innovations of pedagogy and ciation and vocabulary. It is hoped that FLES lets millions of dollars leave the Nation methodology, the linguistic problems of the (Foreign Language . in the Elementary each year; dollars which are crucial to Mexican-American people of the United Schools) programs will correlate and coordi our worsening balance of payments. Yet States have never been the preoccupation of nate with bilingual and ESL (English as a a major government effort. Language handi Second Language) programs in order to the President has not announced any caps and cultural maladjustment, neverthe widen the focus of the target language prob corrective program; he would rather tax less, have contributed materially to the pov lem, and recognize at the same time, the American tourists than cut this dollar erty, illness, and ignorance of many Spanish enormous talents and skills of the bilingual pipeline to unfriendly nations. My bill speaking American citizens. For over one child which should be developed in the Na would correct this by requiring the Sec hundred years, the problems and needs of the tional interest. retary of the Treasury to determine Mexican-American comxnunity in Arizona, In summary, linguistic research and ad which foreign nations permit the dis California, New Mexico, Colorado, and Texas vancement in the United States has by tribution of estates of decedents therein have never been understood from the point passed the linguistic problems of Mexican of view of the responsibility of government American and other Spanish speaking to distributees residing in the United nor the educational practices addressed to bilinguals. Language problems are at the States; and then require the Secretary these Americans. root of econoinic, social, and political handi to cut off all estate distributions except This research confirmed the adherence of caps. Cultural concepts exist which must to residents of such countries. the Mexican-American community to the be respected because they are part of our I intend to urge the House Banking concept of "Cultural Pluralism" and not the American birthright. Financial resources, Committee to hold immediate hearings "Melting Pot" concept. The former respects scholarly expertize, and government coop on this measure. I think it has important cultural differences as an historical and in eration are needed to correct the language herent reality of American heritage. The deficiences of Spanish speaking Amer potential. latter adheres to the belief that cultural dif icans, in our war against poverty, disease, ferences are impediments to American in and ignorance. New College and university terests. Indeed, the diversity and vitality of curriculum to train teachers concerning Linguistic and Cultural Pluralism in many ethnic and national groups of American Mexican-American problems is needed, as society have contributed vitally to the en well as new textbooks, laboratories, audio America's Southwestern States richment of the heterogeneous mainstream visual aids, readers, etc. Research has con of American life. The Mexican-American peo firmed speculative opinions concerning bi HON. EDWARD R. ROYBAL ple, by and large, subscribe to this social linguals and their problems, particularly in philosophy, and for that reason, proudly the area of psychological confiicts which OF CALIFORNIA respect their traditions and citizenship. _In stem from Anglo and Hispano value sys IN THE HOUSE OF REPRESENTATIVES deed, not only do they wish to preserve the tems. Mexican-Americans who already have Wednesday, February 7, 1968 Spanish language and customs, but they contributed taxes, labor, and their life in aspire complete bilingualism as the objective War, aspire educational opportunity which Mr. ROYBAL. Mr. Speaker, with the of first-class American citizenship. Com will improve their economic opportunity, and enactment last year of the Bilingual Edu mand of the English language is of primary for that reason, they call upon their govern cational Act, of which I was one of the concern, but not at the expense of their ment to help them acquire language profici heritage. ency and first-class American citizenship. original authors, and the inclusion of Research confirmed the fact anthropol this act as the new title VII of the ogists have repeatedly stated that mothers Elementary and Secondary Education who speak Spanish to their children give Amendments of 1967, there has been a their children language habits, skills, and most encouraging increase in scholarly capacities. This criterion must be reckoned Blatnik and the Two Harbors Furor attention being focused on the question with when a decision must be made to in of improving educational and economic struct in Spanish or in English. In fact, six HON. JOSEPH E. KARTH opportunity for the Nation's millions of teen categories have been found of diverse language development, but of these, four OF MINNESOTA citizens with limited English-speaking seem practical for classroom instruction: 1) IN THE HOUSE OF REPRESENTATIVES ability. monolingual Spanish, 2) mono,lingual Eng Wednesday, February 7, 1968 For many years, Dr. Manuel H. Guerra, lish, 3) bilingual Spanish-English, 4) semi associate professor of Spanish at the bilingual. However, care should be taken not Mr. KARTH. Mr. Speaker, I am University of Southern California, has to segregate children in language classes, for pleased to insert in the CONGRESSIONAL studied the linguistic and cultural situa purposes of linguistic expediency, along RECORD the following editorial from the tion in our southwestern States, and has ethnic lines, because segregation deprives Minneapolis Tribune of February 6: written extensively on his findings and non-Spanish speaking children from contact and learning experiences which the Spanish BLATNIK AND THE TwO HARBORS FuROR observations. speaking child often can provide, and the Refreshing is the word for Representative Dr. Guerra has just completed a most monolithic impression upon the Spanish John A. Blatnik's ready admission that he interesting and thoughtful summary speaking child distorts the focus of a demo pressured the Small Business Adininistration analysis of a research paper covering cratic society within the classroom and de in 1964 to win approval of a $13.3 million some aspects of his recent studies in this prives him of the contribution of his Anglo Federal contract for the now defunct Uni field. classmates and peers. Special instruction, versal Fiberglass Corporation of Two Har Because of its importance as a contri both in laboratory and reading programs, bors, Minnesota. may circumvent this problem, if adequate It is refreshing because politicians do not bution to a better knowledge of this vital equipment and textbooks are used. Thus, often own up to their role in plans that go and complex area, and, particularly in while Mexican-American language and cul sour. In this case, Blatnik was performing a light of congressional enactment of the tural problems are unique in many ways, normal and expected political function in 1967 Bilingual Education Act-the first solutions must not compound the problem trying to help a new business get going in substantial effort on the Federal level but be found within the framework of com an economically depressed area. to deal effectively with this field of na petent American education. Members of Congress often boast of hav tional concern-! include in the RECORD This research confirmed that De Facto seg ing infiuence in Washington, of being able regation among Mexican-American children to get defense contracts for their districts, of the text of Dr. Guerra's summary analy deprived all children of the fullest educa prodding a Federal agency to assist a con sis: tional experience in the classroom, play stituent, but they usually duck for cover ANALYSIS OF MExiCAN-AMERICAN PSYCHOLIN ground, and hallway. This study confirmed when a deal backfires. GUISTIC AND SOCIOLINGUISTIC PROBLEMS AND that children learn from children far more Blatnik and other Democrats are coining TALENTS than imagined, and that ironically, where under criticism from Republicans, including (By Manuel H. Guerra, Ph. D.) classroom Spanish instruction failed in the Governor LeVander, for the State and Fed This research confirms the following facts: elementary school classroom, it succeeded eral arrangements on behalf of the company. Despite the great advancement of the Modern out on the playground when children played This is to be expected now that the public Language Association of America, the Lin with children. agencies are left. with unpaid loans and an guistic Society of America, and the Foreign Perhaps one of the most successful lin uncompleted contract. Language Division of the United States Office guistic enterprises, concerning Mexican LeVander says, "It stinks." But this has the of Education, from World War II to this date, American children in the United States, ob- advantage of hindsight. The prospect of a February ?', 1968 EXTENSIONS OF REMARkS 2575 new company beginning operations in 1965 His martyrdom in our common cause would For example, the President's budget was viewed as a sign of economic hope for be appropriately memorialized by this action. Two Harbors after the closure of iron ore MARVIN RICH, assumes that the war in Vietnam will docks. Republicans Val Bjornson, State Executive Director. cost $26.3 billion. This may be at least Treasurer, and Stafford King, Auditor, joined $4 billion low just as the 1968 estimate Democrats on the State Executive Council in has proven to be. Also, the President approving $232,000 in State loans for the House Republican Policy Committee has asked for only a 10-percent increase firm in 1964 and 1965. With that kind of bi in grants to the States for public assist partisan support at the time, it seems rather Pledges Action To Establish Priorities, ance. In each of the last three budgets, inconsistent now for Republicans to try to Reduce Spending and Revise and Re the administration's estimate has been make a partisan issue out of the case. off several hundred million dollars. In form Existing Programs fiscal 1968 the administration has had to ask for an increase of some 26 percent Support for Hospital Name HON. JOHN J. RHODES over the original request. OF ARIZONA The overall expenditure estimates of the past three budgets have been incredi IN THE HOUSE OF REPRESENTATIVES bly wide of the mark. In 1966, the first HON. JONATHAN B. BINGHAM Wednesday, February 7, 1968 administration estimate was a full $10.4 OF NEW YORK Mr. RHODES of Arizona. Mr. Speaker, billion less than actual spending. In 1967, IN THE HOUSE OF REPRESENTATIVES the deepening fiscal crisis at home and the spread between the original and final Wednesday, February 7, 1968 abroad demands courage, leadership, and estimate was $10 billion. This year's candor. budget document projects a $4 billion Mr. BINGHAM. Mr. Speaker, since Unfortunately, the Johnson adminis increase over last January's estimate and the announcement of my intention to tration has failed to demonstrate any of fiscal 1968 is only half over. Also, the offer an amendment to H.R. 150 to these qualities. Instead, it has sown the original estimate for the deficit in fiscal name the Veterans' Administration hos seeds for yet another spending explo 1968 was $8 billion. Now the President pital in honor of the late Medgar Evers, sion. The proposed expenditures of estimates that the deficit may be $19.8 I have received many indications of sup $186.1 billion in the 1969 budget and the billion with a tax increase and $22.8 bil port for this proposal. Two of these re estimated deficit of $8 to $21.2 billion lion without. sponses, one from the American Vet are evidences of a Government slipping It is little wonder that the chairman erans Committee and one from the out of control. Action must be taken by of the House Appropriations Committee Scholarship, Education, and Defense this Congress to impose spending priori has warned: Fund for Racial Equality, I insert here ties, reduce governmental expenditures, History strongly cautions us to assume with for the information of my col and reestablish fiscal credibility. that the budget will turn out for the worse leagues and other readers of the RECORD: The spending policies of the Johnson than the better; that it is wise to hedge ·AMERICAN VETERANS COMMITTEE, administration have fed the inflationary against the uncertainties, the slippages, the Washington, D.C., February 6, 1968. failures. Hon. JONATHAN BINGHAM, fues, skyrocketed interest rates, and Cannon House Office Building, created large deficits. They have led to The dramatic increase in spending Washington, D.C. a marked reduction in the purchasing under the Johnson administration is re DEAR CONGRESSMAN BINGHAM: The mem power of the dollar, caused a catastroph flected in the fact that in fiscal 1965 the bers of the American Veterans Committee ic drain on the gold supply of this coun administrative budget expenditures to endorse your excellent suggestion that the try, and endangered the world mone taled $96.5 billion. At that time, defense VA Hospital in Jackson, Mississippi, be tary system. costs were $50.2 b111ion. In fiscal 1969, named after the martyred victim of racial Secrecy, improvisation, and politically administrative budget expenditures are hatred Medgar Evers, who was a member of inspired estimates have become the hall estimated to total $147.3 billion. Of this AVC's National Board at the time of his assassination. mark of the Great Society economic amount, $76.9 billion will be for defense. AVC's Jackson, Mississippi Chapter, which planning. While defense costs have increased by he headed at the time of his death, was The Johnson administration has stub $26.7 billion from 1965 to 1969, nonde renamed the "Medgar Evers Chapter, AVC." bornly insisted that this country could fense spending has increased $24.2 bil recently the AVC Chapter was commended fight a major war and escalate nonde lion. Thus, on a percentage basis, both by the VA for its volunteer services to the fense spending. The results---devastating defense and nondefense spending have Jackson VA Hospital. inflation, a dollar under attack, proposed increased by 52 percent from 1965 to We cannot think of a more appropriate controls on travel and investment 1969. tribute to Medgar Evers ·and the cause of abroad, a plea for a 10-percent surtax, In 4 years, full-time permanent em civil rights, for which he died, than to name the Jackson VA Hospital after him. the threat of wage and price controls, ployment in the executive branch will AVC, once more, repeats its opposition to and a request that the 25-percent gold have increased by 454,747 to a total of the naming of any VA installation after the cover be removed. 2,687,500 civilian employees. This repre late Congressman Rankin. To name a VA Under the new unified budget concept, sents an increase of more than 20 per Hospital after an avowed racist would be an the President proposes expenditures of cent. In this period employment has de insult to all servicemen and veterans, and $186.1 billion in fiscal 1969. If Congress creased in only one agency, the National particularly those of minority groups. We enacts his tax proposals, he anticipates Aeronautics and Space Administration trust that the members of Congress wilJ not revenues of $178.1 billion and a deficit of and then by only 1.5 percent. Now, in insult the veterans of this nation by naming $8 billion. Without the tax increase, a a VA installation after a man who stood for spite of the fiscal crisis, the budget an intolerance and bigotry. deficit of $21.2 billion is forecast. ticipates a further increase in 1969 over We firmly support your efforts to have the Under the 1969 Budget, new obliga 1968 of 4'5,600 full-time permanent em Jackson, Mississippi, VA Hospital named tional authority would increase by near ployees in the executive branch. after Medgar Evers. ly $18 billion compared to an increase Certainly no significant effort has been Sincerely yours, of $7.4 billion in the current year. Total made by the Johnson administration to EUGENE D. BYRD, D.D.S., budget authority would increase by over restrain other Government spending National Chairman. $15 billion compared to less than $4 bil when Vietnam defense costs were clearly lion in the current year. Net obligations escalating. On the contrary, in 1965 and ScHOLARSHIP, EDUCATION, AND DE incurred would increase by $15.7 billion again in 1966 when the Republicans were FENSE FUND FOR RACIAL EQUAL compared to $10.8 billion in the current outnumbered 2 to 1, President John ITY, INc., year. son and his rubberstamp Democratic New York, N.Y., February 7, 1968. Based on the pattern of the past, there majority in Congress hastily enacted a Hon. JONATHAN BINGHAM, is reason to believe that the 1969 budget :flood of new and extremely costly pro House Office Building, Washington, D.C. may present a misleading picture both grams. The next installments on these DEAR CONGRESSMAN BINGHAM: Urge Vet as to income and outgo. Thus, even with programs are now due. erans Administration hospital in Jackson, the enactment of the surtax, the budget This then may be the true measure of Miss., be named for Medgar Evers, a great deficit may be nearer $15 billion than the 1969 budget as well as the Johnson American working to secure justice, dignity, the $8 billion the President has pre administration. It is a business as usual and America's heritage for all Americans. dicted. approach. It is characterized by fast talk 2576 EXTENSIONS OF REMARKS February 7, 1968 and glib promises. It is so committed to Of course, this cannot be a one-man instant coffee, produced under conditions the Great Society programs and in operation, and the appointment of a that American and other competitors regard creased spending that it has neither the Consumer Counsel cannot be permitted as unfair to them. What Washington calls a stand for the principle of fair competition will nor the competepcy to face up to to detract in any way from the programs seems to Brazilians a stand for protectionism, our mounting economic problems and our and activities for consumer protection dangerous precedent and a breach of the new and pressing needs. within the various Federal agencies. The American promise to help Latin-American In the first session of the 90th Con Consumer Counsel will undoubtedly need countries diversify and industrialize. gress, Republicans were instrumental in all the help he can get, not only from President Johnson agreed at Punta del saving the American taxpayers $4.1 bil within the Government, but from those Este last April to "provide incentives for the lion in proposed spending and in cutting individuals and groups outside the Gov industrialization of agricultural production" $5.8 billion from the President's new ernment who have done so much to focus and boost "exports of processed agricultural goods." That is what Brazil has done in appropriation requests. A Republican ex public attention, and the attention of building six soluble coffee plants, three with penditure limitation of $131.5 billion was Congress, on the need for greater protec American aid counterpart funds. Brazil's adopted by the House of Representatives. tion for consumers. share of the American instant coffee market In a series of 23 rollcall votes on specific has soared from less than 1 per cent in 1965 reductions, Republican Members of the to 14 per cent last year, alarming American House of Representatives averaged 85 m anufacturers of soluble. percent support while Democrats aver The Coffee Problem Brazilian soluble manufacturers buy aged only 17 percent support. "grlnders"-broken beans whose export Brazil bans-at four cents a pound. American com In the second session, we pledge an petitors must pay several times that amount even greater effort to establish priorities, HON. F. BRADFORD MORSE OF MASSACHUSETTS for the African coffees from which their in reduce spending and revise and reform stant is largely made. Brazil also levies a stiff existing programs. This country must IN THE HOUSE OF REPRESENTATIVES tax on exports of green coffee by way of con win the battle of the budget so that it Wednesday, February 7, 1968 trolling supply, but classes soluble as a man may emerge from the present fiscal crisis ufactured product exportable tax-free. These strong and better equipped to meet its Mr. MORSE of Massachusetts. Mr. factors explain the unfair competition charge. obligations and challenges at home and Speaker, several months ago I called to They do not justify American insistence that abroad. the attention of this House the dispute the new coffee agreement include what between the United States and Brazil on ultimately is a unilateral protectionist device. the production and export of Brazil's,in After much argument, Brazil finally did consent to a number of compromises, includ President Johnson Provides Sound Lead stant coffee. At the time of that writing, ing a freeze on additional soluble plants and the International Coffee Council had not action to tax soluble exports and raise the ership for American Consumers yet held its meetings in London to begin price of broken beans for "Brazilian processors. negotiations to renew the International Brazil also will accept international arbitra Coffee Agreement which expires on Sep tion of disputes about fair competition. But HON. EMANUEL CELLER tember 30, 1968. At this writing, several the United States insists on spelllng out the OF NEW YORK weeks of meetings are over, with no ultimate right of unilateral action, the one IN THE HOUSE OF REPRESENTATIVES visible progress in reaching an agree point to which the Braz111ans will not agree. Given Brazil's promised concessions, it is Wednesday, February 7, 1968 ment. Negotiations to renew the Coffee time for some American fiexibllity. An inter Mr. CELLER. Mr. Speaker, President Agreement have received a serious set national mediation team is now in Washing Johnson issued a call to action to protect back with the inability to come to a com-. ton and will also visit Brazil in an effort to the rights of the American consumer. promise conclusion on the problem of break the deadlock before negotiations The President has again shown his soluble coffee. resume in London on Feb. 15. A decision that deep awareness of the needs of America We are faced with the following facts. could mean life or death for this important Brazil has already consented on anum effort at international cooperation should be consumers and of their increasing desire made at the highest level in Washington and to have these needs met by effective Gov ber of points with no reciprocal com not by an American delegation that has ernment action. Many of us in Congress promise by the United States. There is shown iminense sensitivity to protectionist have been surprised-and speaking for great need to renew the ICA, which is an forces on Capitol Hill but little for the deep myself, at least, pleasantly surprised important instrument of international feelings of poorer countries about industrial by the amount of popular interest and cooperation. We must recognize the development. support for the wholesome meat legisla pledges made by the United States at tion, passed in the last session, and the Punta del Este for economic growth and truth-in-lending bill, which is now going diversification in developing countries. to conference. Our State Department has come out Threat to Freedom The President's consumer message strongly opposed to protectionist pres contains several useful legislative pro sures in other areas. This is an impres posals which I believe will evoke similar sive roster, and it gives strong support to HON. JAMES H. (JIMMY) QUILLEN popular support. For example, there is the editorial comment in the New York OF TENNESSEE certainly no reason why the improved Times that "it is time for some American IN THE HOUSE OF REPRESENTATIVES flexibility." I submit the entire editorial system of meat inspection we have just Wednesday, February 7, 1968 enacted should not be extended to fish for the attention of my colleagues: and poultry products. Consumers have as [From the New York Times, Feb. 6, 1968] Mr. QUILLEN. Mr. Speaker, because much right to protection against un THIS PROBLEM Is SOLUBLE of my continuing concern about the dis wholesome fish and poultry as against A bitter dispute between the United States respect for law and order which we see unwholesome meat, and I am sure that and Brazil has imperiled renewal of the In around us every day, I wish to call the the affected industries would themselves ternational Coffee Agreement, which has been attention of my colleagues and the read be the gainers when consumers can place vital in supporting the economies of many ers of the RECORD to the following edi the same reliance in the quality of their developing countries. Both sides are at fault, torial, which recently appeared in the but if the agreement collapses the United products that they now place in meat .States, as the richest country on earth and Johnson City, Tenn., Press-Chronicle: products. the biggest coffee consumer, will get most THREAT TO FREEDOM We should not overlook amid these leg of the blame. · Is disorder a threat to freedom? islative proposals the President's an The 65-nation agreement, due to expire in If respect for law breaks down, can respect nouncement of the creation of the posi September, divides up the coffee market, with for the individual person hold up? tion of Consumer Counsel in the Depart quotas for each of forty exporting countries. What happens to nations when they lose ment of Justice. While this administra Twenty-five importing countries agree to pay their values and give way to every wind that tion has compiled an outstanding record substantially higher than free-market prices blows? in the area of consumer protection, there to stabilize the trade and to help the produc John W. Gardner, retiring secretary of the ing countries diversify their economies in Department of Health, Education, and Wel is still a continuing responsibility to see order to lessen their dependence on coffee. fare, made a thoughtful comment on this that these interests receive adequate con Washington demands inclusion in the general subject in a recent address before sideration in decisionmaking at every agreement of a provision giving it the uni the American Statistical Association. He said: level of government. lateral right to curb imports of Brazilian "We are in deep trouble as a people. No Febriwry 7, 1968 EXTENSIONS OF --REMARKS 2577 - society can live in constant tumult. We will as Japan, which we have aided immeasur view, some of our courts, notably the Su have either a civil order in which discipline a;bly i.p. the past, should, and I think will, preme Court, in their zeal to protect the is internalized in the breast of each free and use a certain amount of self-restraint in rights of individuals have gone farther than responsible citizen, or sooner or later we will competing here with our basic industries. they should and have added to the ·already have repressive measures designed to re · Also, I am very much opposed to selling burdensome problems of our law enforcement establish order. The anarchist plays into the any type of war materiel to countries that . officers. hands of the authoritarian." are assisting North Viet Nam. MY VOTES ON SOME RELATIVELY MINOR ISSUES We agree 100 per cent. When people be ISOLATIONISM come unable to govern and discipline them 1. Subversive Control Board-! voted (in selves, somebody or some force comes along It must be evident from my comments effect) against the Board. I believe that the to fill the vacuum. The result is loss of in on Vietnam, Foreign Aid, the United Nations FBI can keep track of communism in this dividual freedom and establishment of dic and Trade that it is my conviction we cannot country without the Board's doubtful help. tatorship. pull into our shell and ignore the world It has accomplished nothing in seventeen around us. years except to provide a $26,000 a year job FRANCE for the husband of one of LBJ's secretaries. The President has ways at his disposal, 2. Mrs. John F. Kennedy-It seems to me Yearend Summary which he should use, tci enforce the payment that, after four years, and bearing in mind of France's World W•ar I and II indebted her considerable personal wealth, it should ness to us. no longer be necessary for the taxpayer to HON. CHARLES M. TEAGUE pay $14,000 a month to provide_Secret Serv OF CALIFORNIA OFFICE OF ECONOMIC OPPORTUNITY (WAR ice protection for Jacqueline Kennedy and AGAINST POVERTY) IN THE HOUSE OF REPRESENTATIVES her children. I do not consider this to be In spite of the serious problems in many of an anti-Kennedy stand in -any sense of the Wednesday, February 7, 1968 our cities and in some rural areas, the Anti word. Mr. TEAGUE of California. Mr. Speak Poverty Program has not, for the most part, 3. Adam Clayton Powell-! have little use provided meaningful answers. There have er, I call to the attention of my colleagues for this man. However, as a matter of prin the following yearend summary, as fol been some exceptions, but the overall effort ciple, I believe that the House made a mis has not justified the cost. Far too much take in refusing to seat him. We should have lows: money has gone for administrative expenses. seated him and then censured and fined WASHINGTON REPORT FROM CHARLES M. Management of the programs in many areas him, as recommended by the special com TEAGUE, YOUR CONGRESSMAN has been atrocious. There are numerous in mittee on which I served. By the a·ction DECEMBER 15, 1967. stances where officials seem more interested taken, 500,000 people have been deprived of DEAR FRIENDS: I am about to complete in fat salaries, large expense accounts, par representation in Congress and many of t'hir.teen years as your Representative in tisan politics and in organizing labor than them think (although this definitely is not Washington. This Report will take the form in aiding the poor. true) that the reason is tha-t Powell is a of an accounting to you of my stewardship FEDERAL AID TO EDUCATION negro. together with a number of observations This is a better answer to our poverty 4. Subsidies tor Electric & Telephone Co some general and some rather specific. I problems. Very few persons with high school operatives-! am opposed to, and believe that realize my views will be considered too "lib educations cannot get jobs if they really wish I had some part in blocking, an increase in eral" by some, too "conservative" by others. to. Since our local school taxes are about as these subsidies. This type of legislation However, I like to think that my positions high as the traffic can bear, I cannot con comes tinder the jurisdiction of the Com are in the best overall interests of my con ceive of a better way to spend federal taxes mt.ttee on Agriculture of which I am the sec stituents and our Country. than in helping to improve our schools. ond-ranking Republican member. One of the problems an elected Repre When I first came to Congress, I voted against CIVIL RIGHTS sentative of the people has: Must he always most federal aid to education bills. Obviously, I agree with Richard Nixon's s·tatement vote for wha-t he considers to be the major my position has changed. ity view of his constituency or may (or can) that: "The violent few do not speak jor the FEDERAL SPENDING to he use his own judgment if he disagrees Negroes, but they are speaking them every with ·that majority view? I believe that Uncle Sam is spending considerably more day, planting the seeds of hatred." I see no whether our form of government is best than he can afford. This fact is contributing need for additional major federal legislation described as a -"republic" or a "democracy", to inflation and has created a huge national in the civil rights field at the present time. most persons expect their Congressman and debt which our children and grandchildren What is needed is to encourage people to other elected representatives to use, at least must pay. This is not fair to those living on take advantage of current educational and training programs. This y.rill qualify them to some degree, independent judgment. If fixed incomes or our descendants. Interest they did not, we might as well have a na alone on this debt is in the order of $15 for -the employment opportunities now open tional plebiscite on every issue of the day. billion a year. Where cuts can be made: (1) to them under federal non-discrimination The following, in capsule form, are my eliminate farm subsidies; (2) reduce, at least guarantees. stands on some very controversial issues I until VietNam commitments are less, space, VOTING RECORD have faced during these thirteen most inter model cities, rent supplements, poverty, My response to roll call votes in 1967 was esting years: public works and foreign aid programs; and about "par" for me-98%. The only votes I VIETNAM (3) cut back federal employment, at least by missed were minor and occurred during my not replacing some of those employees who three quick trips to California. In general, I support our involvement in resign or retire. Vietnam and the· "limited war" concept. RE-DISTRICTING However, I believe that if the present escala TAX INCREASE In my first eight years in Congress, I rep tion had occurred sooner and had included I realize that my position here is ex resented Monterey, San Luis Obispo, Ven the bombing or mining of Haiphong Harbor tremely unpopular. Nevertheless, it seems to tura and Santa Barbara Counties. Now, due (after notice to the non-bel11gerents), lives me that if we still are facing inflation and a to the population increase, it is just Santa on both sides would have been saved and sizeable deficit after all possible and rea Barbara and Ventura. But, under pressure the war would now be over. sonable spending cuts are made, the respon from the courts, our present District will be FOREIGN AID sible thing to do is to raise taxes back to· enlarged to include portions of West ·where they were in 1963. I believe that, inso ern Los Angeles County. This means that I In spf.te of disturbing waste and ineffici far as possible, we should "pay as we go". I (or someone else who might defeat or suc ency, I consider this program to be not only still consider that I made the proper decision ceed me) will have, after the 1968 election, a contribution to the betterment of man in voting against that 1964 federal income the responsibility of representing about 700,- kind, but an important part of our struggle tax reduction, in view of the crushing budget 000 people. By 1972 it will approach 1,000,000. against international communism. It is in deficits that have followed. The average district should be less than our self-interest anci is not simply a "give THE DRAFT 500,000 in population, which means, of away" to what some people term an inter course, that our District is much bigger than national Community Chest. I believe that it should be possible to re it should be. The "one-man, one-vote" rule, place the draft with a voluntary, well paid which contends that the vote of one citizen THE UNITED NATIONS military force. The additional pay would be Although I am often disappointed at the should have no more weight than the vote off-set by the terrific savings which would re of another, will not apply to the 13th. Con lack of effectiveness of the UN, we must con sult from a drastically reduced "turnover". gressional DiStrict until 1972. But the all tinue our support and endeavors to make it Huge sums of money are wasted in training a more than just an international debating wise court has ruled! society. man for just two years' service. I shall send this Report to a few people TRADE RIOTS AND CRIME in "our" (or someone's) enlarged 13th Con I am for the general principle of reciprocal Perhaps some strengthening of federal laws gressional District. trade, but I believe that we should insist is needed, but I consider this problem to be Sincerely yours, on more "give" and less "take" by our trad primarily a state and local one. Very few CHARLES M. TEAGUE, ing partners. In other words, nations such people want a national police force. In my Member of Congress. 2578 EXTENSIONS OF REMARKS February 7, ·1968 When the U.S. Oil Industry Looks Ahead With this extra. output, American com PRESSING OUR LUCK panies were able to replace imports of Arab How long could the stepped-up output have oil lost to the U.S.-e.bout 3 per cen-t of been continued from U.S. wells? HON. GEORGE BUSH domestic oil requirements--and to increase Says an oil executive: "I think we could U.S. oil exports sharply to help meet fuel OF TEXAS have continued it through 1967 and maybe needs in Western Europe. over into 1968, but we woul'd have been press IN THE HOUSE OF REPRESENTATIVES A TEST IS MET ing our luck." Wednesday, February 7,1968 Says an oil-company president: If such a drain on domestic wells had con tinued for a long period, the balance be Mr. BUSH. Mr. Speaker, in view of "The challenge was so well met that most Americans weren't aware of what was hap tween proved reserves and consumption the undebatable iml>Ortance of the oil pening. They did not notice that a massive would have been thrown out of balance. industry to all Americans, I am sure this disruption in oil supplies had taken place, Notes a petroleum geologist: article from the January 15, 1968, issue let alone becoming involved or concerned." "Our oil reserves are like a bank account. of U.S. News & World Report, "When the A few figures tell the story. We draw on them, but at the same time we U.S. Oil Industry Looks Ahead," will During the whole five-year period 1962- make deposits in them by finding new 66, crude-on exports from the U.S. had aver supplies. be of interest to all Americans. I am "The thing that concerns us is the ratio of delighted to see such a reputable repre aged only about 1.5 milUon barrels a. year. All of a sudden, exports of crude oil jumped new deposits to withdrawals. That ratio used sentative of the fourth estate publish to 1.8 million barrels for the single month of to be 12 to 1 between our proved reserves of such an excellent article and I commend June, 1967. oil and our annual pumping of oil from the them for it. In this time when the oil in In July, they rose to 8.5 million barrels, ground. Now the ratio is down to about 10 dustry is under such heavy fire, I hope and stayed at almost that level in August. to 1. We have been drawing out more oil my colleagues will pay close attention to Then they tapered off in September as the than we have been depositing, and that can this enlightening report. Arabs' embargo on oil was lifted. not go on over a long period of time." The article follows: The three-month export figure was 18.5 THE WIDENING GAP milUon barrels-more than twice the total WHEN THE U.S. On. INDUSTRY LoOKS AHEAD Over the past 10 years, demand for oil and for the past five years. gas in this country has risen about 44 per _Latest developments in the U.S. petroleum SUPPLYlNG A WAR cent. But proved reserves of those forms of outlook raise crucial quel:ltions for a key in All of this happened at a. time when de energy have gone up only 15 per cent. dustry. A decade ago, in 1957, a total of 14,700 wm drilling of new wells keep up with mand for oil by U.S. forces in Vietnam was running high. exploratory wells were drilled. In 1967, the soaring demand? Is Congress likely to change figure had fallen to 8,62Q-a decline of 40 the tax rules on oil depletion? What if an The average Army combat division in Viet nam burns up about three times as much percent. other world crisis cuts output? Here is a "And you have to remember that this drill fresh look at petroleum's problems. fuel as its counterparts in World War II and the Korean War. ing represents high-risk ventures,'' an oil . This country dependS on oil to move its executive says. "On the average only 3 out people and goods. The Middle East had been supplying about 200,000 barrels o! oil a. day to Vietnam. This of every 100 wells drilled in search of new Large numbers of U.S. homes are heated fields represent a. profitable discovery." with oil or natural gas. Much of the energy supply was abruptly cut off. The extra. bur den was taken over by U.S. producers. It's when oil authorities look ahead that that powers industry comes from petroleum. they get increasingly worried about trends As a raw material, oil is vital to the huge Transportation problems arose. Supply lines by sea. were stretched to double their in exploration and output. chemical and plastic industries. "At the moment," one executive explains, United States oil companies, with more normal length by the closing of the Suez Oanal. Tanker rates soared. "the U.S. is consuming about 12.7 million than 100 billion dollars invel:lted here and barrels of oil a. day. By 1980, that demand abroad, now are facing a set of crucial prob Still, oil dellveries were made on schedule as output was stepped up not only in the will have risen to 17.5 or 18 million barrels lems as they look to the future. a day. This takes into account the increas The oil industry has emerged successfully U.S., but in Iran, Venezuela. and other non Arab countries of the free world. Thus an ing use of other forms of energy, including from one dramatic test. It surmounted a nuclear power. challenge by Arab nations that shut off vast attempted blackmail of the U.S. and Western Europe by some Arab nations was thwarted. "If that is the case--and it is the basis shipments of Mideat:ltern petroleum to the on which we are making our plans-we've U.S. and parts of Western Europe last sum More recently, new unsettlement in the Mediterranean area, where Russian naval got to discover in that interval 78 billion mer. barrels of oil. St111 ahead are a cluster of different but vessels are deployed, has made American petroleum experts increasingly nervous. A "By contrast, 81 billion barrels have been equally stubborn problems-- produced in the U.S. in the entire 108-yea.r How to meet energy demands that by 1980 drive is on to seek out new reserves o! oil in less vulnerable areas. history of the on business up to now." Will be 50 per cent larger than they are Can this vast amount of new on be today; FOR FUTURE: DOUBTS found? How to counteract a sharp drop in explora Now oil-industry executives see trends that "Yes," replies an industry economist. "The tory drilling for new oil reserves; cause them to doubt whether the industry U.S. Geological Survey estimates there are How to meet a squeeze between rising pro can retain its ability to cope with fresh emer still more than 300 billion barrels of oil duction cost~ and relatively fixed selUng gencies, or even to meet the coming growth waiting to be discovered in this country. The prices; in demand. big problem is finding it." How to deal with a threat in Congress to One reason is that the search !or oil in HIGH COST OF EXPLORATION change the special tax treatment for pe the U.S. is declining at a. time when demand troleum and other mineral resources that, is going up. The search will take vast amounts of oilmen say, is essential to spur further ex The second is growing pressure to change capital. One conservative estimate is that ploration. tax laws in a. way that, the industry says, will U.S. oil companies will have to spend rough THE RUSSIAN THREAT discourage oil discovery and development ly 115 bilUon dollars worldwide between now within the United States. and 1980 to meet increasing demand for oil. On top of these worries, there is conoern This figure makes no allowance for steadily about the oil pact between Russia and Iraq, As oilmen explain it, the U.S. was fortunate rising costs. announced just a. few weeks ago. Many in to have substantial "built-in" reserve capac Behind the downward trend in oil-well the industry view this as a. setback for the ity to handle the sort of emergency that arose drilUng in recent years has been a severe cost West, because it gives the Soviet Union its last summer. price squeeze on producers. first foothold in the strategic Persian Gulf. This reserve capacity consists of oil in the Prices of oil-field tools and machinery went As they face up to all these problems, au ground-resources that have been discovered up by about 7 percent between 1957 and thorities on the petroleum business say the but not drawn upon. 1966; of oil-well casing, 12 percent. Aver full story of recent developments, and the Most of these underground U.S. supplies age hourly wages for oil and gas field work risks and rewards that lie ahead, has not are in Texas, Louisiana and California. In the ers climbed more than 32 percent. been fully told. first two of those States, regulatory commis Meanwhile, crude-oil prices were going in Consider the world-wide crisis the petro sions decide how much oil shall be drawn the opposite direction. leum industry recently weathered: out at any particular time. In 1957, the average price of domestic In reprisal for what Arab nations charged This system of production quotas or "al crude was $3.09 a barrel. In 1967, accord was Western intervention in the Arab-Israeli lowables" is partly a below-ground conserva ing to preliminary figures, it was down to war, Egypt last June closed the Suez Canal, tion measure, and partly a way to prevent $2.91, a. drop of 5.8 percent. It should be and the Arab states embargoed oil shipments above-ground waste of oil. noted, however, that crude-oil prices were to the U.S. and to much of Western Europe. Increases in the State-authorized output abnormally high in 1957 and 1958 because Overnight, U.S. oil companies were forced of regulated domestic wells during the Mid of the Suez crisis of that period. to jump into the. breach. eastern crisis kept American consumers from The retail price of gasoline between 1957 Domestic oil production was boosted by feeling any- pinch, and saved Europeans from and 1967 rose only fractionally-from 22.11 about a. million barrels a day. the prospect of rationing. cents a gallon to 22.55 cents a gallon, on February 7, 1968 EXTENSIONS OF REMARKS 2579

the average. Combined State and federal abundance, in degree of risk involved in are good that he will_ abandon school and taxes on gasoline over the same period rose hunting for them, and in the amount of formal education for the remainder of well over 20 percent. capital needed to .find. them. What of the criticism in some quarters In the case of petroleum, many wells that his life. that the petroleum industry does not pay are drilled turn out to be "dry holes." They The President recognizes the imme its share of taxes because of "benefits" or yield no oil at all. So the wells that do diacy of the problem and has urged the "write-otis" of one kind or another? produce oil must help carry the total cost funding of the 'bilingual program as SURVEY BY BANK of exploration. early as possible. America, always a The depletion provision in the tax laws A study by Chase Manhattan Bank shows haven for the deprived of other lands, permits an oil producer to recover, tax-free, must aid those who seek to·help them that 29 major U.S. oil companies paid taxes of the value of the underground oil in the wells all kinds exceeding 4 billion dollars in 1966, that have proved to be productive. Thus, the selves through education, especially about equally divided between income and producer can use these tax savings to help when they are thwarted by classes con operating taxes. This included taxes paid to pay the cost of searching- for new oil sup ducted in a language they cannot yet foreign countries. plies. comprehend. For when they have finally U.S. laws permit an American company While the law permits an oil company to become bilingual, they no longer have to get credit on its domestic income taxes deduct up to 27¥2 per cent of the gross reve time for all the learning they missed against taxes paid to a foreign government. nue from -each producing property, there is The oil industry also has been active in while lost in a haze of "no comprendo," an over-all limitation of 50 per cent of net or "non capisco," and other sad remind trying to ward off attacks on its depletion income derived from the property. r.ate of 27¥2 per cent. If the depletion rate were cut below pres ers of lost opportunity. This is a tax feature that critics charge is ent levels, some oilmen believe, the tendency a "loophole" in the tax law and an "unwar would be for oil-well operators to sell out ranted benefit" for oil producers. at a capital-gains ra.te, retire from business Depletion is a complicated and controver and refrain from exploring for fresh reserves. East-West Trade--The Dangerous sial subject and has been under attack fre "The plain fact is," one executive notes, quently during the years the rules have been "that you cannot force people to invest in Illusion in effect. any business, whether it be steel or autos or Actually, criticism centers not so much on oil. And you cannot get them to take the the idea of a depletion allowance itself as on risks inherent in the oil business unless the HON. EDWARD J. DERWINSKI the existing rate that applies to petroleum. rewards look commensurate with the risks." The subject will continue to be aired OF ILLINOIS in Congress this year, but legislative observers SPUR TO DIVERSIFICATION IN THE HOUSE OF REPRESENTATIVES doubt that there will be any change in the The depletion controversy has had one law in 1968. additional effect: It has spurred the oil in Wednesday, February 7, 1968 When income tax rates first reached a dustry's efforts to diversify and broaden its Mr. DERWINSKI. Mr. Speaker, the substantial level during World War I, Con base of activity. Subcommittee on Europe of the Foreign gress set up a system of permitting discovery Work is afoot to develop the vast reserves value as the basis for computing depletion of petroleum locked in oil shale and in tar Affairs Committee, on which I serve, is for minerals. sands, and programs are in progress to ex- commencing hearings on the subject of This proved to involve too much guess tract oil from coal. · East-West trade. The fundamental issue work. There had to be a market-value deter Some oil companies are also hedging their involved in this subject has been in mination for every new discovery. So, in bets on the longer-range future by investing tensely debated for some time. To keep 1926, Congress adopted the less cumbersome in uranium deposits or nuclear-oriented the Members appraised of the funda regulations that now apply. companies. mental facts of the matter I insert into . An oil-industry expert·comments: But in the years just ahead, oilmen are "The depletion question comes up every hopeful that tax policies, import regulations the RECORD an article which appeared in time there is a tax bill. Over and over again, and conservation policies will encourage the July 1967 issue of the American Congress has reviewed the issue, and each wider exploration for conventional sources Legion magazine by the then Legion na time has reaffirmed the value of the provi of oil in this country. tional commander, John E. Davis: sion." "If we learned one lesson from last sum EAST-WEST TRADE-THE DANGEROUS ILLUSION Sonie members of Congress, now urging mer's Middle East crisis," an oil authority broad reform in the whole U.S. tax structure, recently declared, "it should be the need for A proposed "East-West Trade Relations have proposed cutting the depletion allow maintaining a great measure of independ Act" is receiving serious consideration in the ance. ence from foreign supplies that might be cut Congress, and is backed by the Administra In rebuttal, oilmen say that, far from being off without warning." tion. It would encourage and simplify much a special tax privilege, the depletion allow broader trade relations between the United ance is vital to encourage the search for States and the Communist-bloc n,ations. The new supplies. American Legion is officially opposed to this "Actually," says an oil-company president, concept, and we have both short-range and ·"the rate ought to go up to 33 per cent or The Gift of Tongues for All Children long-range objections. more to provide really equitable tax treat in Need In our short-range objections, our National ment for the industry and to make possible Executive Committee this May called on the huge capital investments that will be Congress to prohibit further trade between needed between now and 1980." the United States and any Soviet-bloc coun HON. HUGH L. CAREY try "which is providing North Vietnam with on/s SPECIAL PROBLEM OF NEW YORK assistance of any form that can increase the This executive adds that the oil business IN THE HOUSE OF REPRESENTATIVES war-making potential of the enemy.... " di'ffers from industry generally in that it re We need explain nothing further to justify quires a continuous and unbroken stream Wednesday, February 7, 1968 that objection. Any such trade amounts to of new discoveries so that it can maintain Mr. CAREY. Mr. Speaker, in his posi trading with the enemy in time of war. In and increase its capacity to produce. That is the short run, we can only express amaze because an oil field contains only a limited tive education message, President John ment that East-West trade should be ad quantity of oil. son has recommended the full authoriza vanced while hostilities backed by the entire It cannot be replenished like the water in tion of the bilingual education program, Communist world continue in Vietnam, and a well. recently added to the Elementary and have since taken on a new dimension in the "All the low-cost oil and gas fields in this Secondary Education Act. Congress ac Nea~ East. country already have been discovered," he knowledged When it accepted the pro Our long-range objections are better re points out. "From here on, the risks and gram that an ignorance of English can flected in the action of our last National Con costs are to climb steadily higher. The essen vention, which opposed trade with the Com tial requirement is a continuous and enor ruin a child's entire academic career in munist bloc except in specific cases in which mous fiow of capital available to those who our public school system, and subse concrete advantage to us could be spelled have the necessary combination of know quently his adult life. No matter how out. So long as the Cold War continues, even how and willingness to take risks." great his intelligence, an ignorance of in the absence of armed conflict, we believe The average cost of drilling an oil well the language in which lessons are con that should be the absolute limit of trade ·today is about $56,000---whether the vent'ilre ducted will place him at a disadvantage agreements with the Communist bloc. Here is a success or a failure. from which he may never recover-even we recognize that trade might be used as a Depletion benefits are available not ·only once he has mastered English. By that means of weakening the cohesiveness of the to oil producers, but to other prOducers of Soviet bloc, that our trade might be helpful natural resources such as sand and gravel, time his achievement in school will be in causing a member country of that bloc to coal,_metals, sulphur and-· :uranium. lagging far behind the norm. And with weaken its ties with the Soviet power centers. The percentage of tax deduction varies in all the obstacles with which he must con We have, for instance, engaged in limited each case,· because the resources differ in tend--especially poverty-the chances trade with Communist Poland and Yugo- 2580 EXTENSIONS OF REMARKS February 7, 1968 slavia in such hopes. in the case of Poland, upon trade as a political weapon and use out, "[Sen.] Dick Russell took off for Europe even Senator _Fulbright has bad to admit it as such. -So long as this is true, we should when the election campaign was going on that its leaders have actually drifted toward attempt to deny it to them." and he could been campaigning for the a greater reliance on the Kremlin while en These are hard, demonstrated !acts, none white man. And every time a nigger is elected joying favorable U.S. trade relations. of which are met by saying "Bridges of to office Little Herman [Talmadge] has to We have possibly made some headway in Friendship." take him down to his !arm for a chitterling encouraging Yugoslavia's visible spirit.of in dinner and pig ear salad." dependence from Soviet domination with But Craig, as it turns out, isn't the only some small trade, though that isn't con Staffing the Model Cities Program Klansman who will have some control over clusive yet. Whether we succeed or fail in the taxpayers' dollars in the Atlanta pro such ventures, they are at least tied to a gram. Under the federal government's plans very clear purpose, in which we are trying to HON. JOHN M. ASHBROOK to increase "citizen participation" in various use trade instead of bullets as a weapon in projects, some 59 residents in Adair Park in the Cold War. OF OHIO Atlanta were able to pick J. D. Newberry to But the proposals for a general broadening IN THE HOUSE OF REPRESENTATIVES sit on the model cities 14-member executive of our trade with the Communist world Wednesday, February 7, 1968 board, of which Mayor Ivan Allen is chair totally escape any practical purpose. They man. prevent us from using trade as a weapon, by Mr. ASHBROOK. Mr. Speaker, it will This executive board, an Atlanta model simply extending it freely in broad terms. be remembered that some time ago the cities spokesman told Human Events, will "set The very arguments in favor of broader East House Committee on Un-American Ac policy and determine expenditures" for the West trade are dreamy and generalized. The Atlanta program. Unlike Grand Dragon commonest one of all is that we would be tivities held extensive investigations on Craig, Newberry is expected to receive pay "building bridges of friendship." On the rec the Ku Klux Klan and its activities in for his special services. ord, trade is a game of advantage, not friend recent years. One of the many members Newberry, in case the taxpayer is inter ship. Right up to the eve of War, Hitler and of the various Klan organizations to take ested, was identified by HCUA investigators the Japanese Empire traded with those they the fifth amendment before the House as Georgia's Grand Klabee (treasurer) Of the attacked in WW2, and as we well know, they Committee on Un-American Activities United Klans of America and Klabee of the traded most earnestly in whatever would was Georgia's grand dragon of the Nathan Bedford Forest Klavern No. 1, also best strengthen them for the coming con United Klans of America, Calvin Craig. located in Atlanta. Newberry also refused to flict. respond to committee members' questions ~ Last December, Assistant Secretary of State In addition to Craig, J.D. Newberry was to his Klan connections and as to whether he Katzenbach argued that proposed East-West identified by the House Committee on took money from the UKA and transferred it trade would be in consumer goods, therefore Un-American Activities investigators as to his personal account. it could not be expected to bring any advan Georgia's grand klabee, or treMurer, of Newberry still won't say whether he's a tage to the Soviet military thrust. He went on the United Klans of America and klabee Klan officer, but his own heating company to cite an Italian Flat agreement to build a of the Nathan Bedford Forest Klavern has advertised in the "Yellow Pages" of the compact car plant in the Soviet Union as an No: 1 in Atlanta. Atlanta telephone directory: "Newberry Heat example of the kind of profitable trade we Co., KKK-Klean, Kozy, Koinfortable." are losing in the absence of an East-West One of the objections of some of the While some people tend to laugh off the trade agreement. Federal poverty programs pertains to the Klan as a clownish outfit, the UKA is a far . I find such argument to be frightening. selection of personnel to administer or from funny organization. The HCUA has When our own President is embarrassed by participate in the programs. People with established beyond doubt that the UKA is burdens that military operation in Vietnam their own axes to grind have distorted composed of unsavory characters bent on ·impose on his domestic program, how can our the intent of the program for their own terrorizing the Negro and other minority government argue that the same principal if groups . . does not apply in the Soviet Union? Anything selfish ends. And the case of Craig and Founded in 1961 with the aid of Craig, the that we do to provide consumer satisfaction Newberry is any indication, it would UKA has had among its highest officials mem .in the Soviet Union frees Soviet energies and .seem that the model cities program will bers of the American Nazi party and other resources for their aggressive external pL'J! ... be subjected to the same danger. Cer extremist organizations. Furthermore, Klan cies. The point is so obvious that I am not tainly there are available persons better members take instruction in the fine art of really arguing it, but simply pointing out the disposed to participate in this program demolition. Craig, himself, attended and ap bankruptcy of the rationales in favor of than those associated with the KKK. proved of explosive courses in which it was broad East-West trade. Even in the case of From a personnel standpoint alone, this demonstrated how to blow up cars and the Fiat plant, we now have been approached integrated restaurants. Klan members have to lend Flat the money for machine tools Federal venture will experience rough also been implicated in numerous killings. through the Import-Export Bank. Obviously, sailing if the qualifications of its par Two members of the UKA in Georgia were the Soviets w111 not release sufficient capital ticipants are not more discriminating. convicted on federal conspiracy charges for from their offensive programs even to ac I include the article "Klan Haven," the wanton killing in 1964 of Lt. Col. Lemuel quire such an asset. They will be happy in from the February 10, 1968, issue of Penn, a Negro. United Klan members in stead to see us help capitalize this plant in Human Events in the RECORD at this Georgia were also responsible for discharging Russia for the benefit of Russia and Italy, buckshot pellets into the face of a 13-year-old while they save what capital they can to foot point: KLAN HAVEN Negro girl. war in Vietnam, the Middle East, Latin As a result Of these disclosures, some con America, etc. LBJ's Model Cities program, a .sort of super gressmen would like to know more about the The present move toward East-West trade grade urban renewal program, is rapidly model cities program. They just can't under traces to a report in favor of it by the Com becoming a sanctuary for exalted mem stand why an Administration so intent upon mittee for Economic Development issued bers of the Ku Klux Klan. yanking federal subsidies from schools and in May 1965. A minority report in the same As revealed in these pages last week, Cal hospitals that are not desegregrating at a fast study, drafted by committee member Robert vin Craig, Georgia's Grand Dragon of the enough pace to suit federal bureaucrats is E. Kleberg, should have received more at United Klans of America, the largest and somehow eagerly willing to foster grants to tention. Wrote Kleberg, in part: " ... it most powerful Klan organization in exist projects that will be partially directed by would be unrealistic to hope that mutually ence, was recently elected an officer in the members of the violence-inciting UKA. useful trade could be developed with the :flederally sponsored model cities plan in Communist countries under present circum Atlanta, Ga. The $16,000 executive direc stances. We would receive little benefit from tor of the project is Johnny C. Johnson, a such trade and would expose the Western Negro, who hopes "to be in many close meet . world to some or all of the following haz- ings with Mr. Craig and establish some type Response to "Pueblo" Seizure ards: of communication." " ( 1) An increase in Communist propa Craig will have a say in policy even though, ganda and subversion in Latin America un according to the House Committee on Un HON. FRANK E. EVANS der the guise of trade. American Activities, Georgia's Grand Dragon OF COLORADO "(2) An opening of the trade barriers has incited racial incidents, 1s fond of "in IN THE HOUSE OF REPRESENTATIVES which we have attempted to impose around creasing racial tensons" and has encouraged Wednesday, February 7, 1968 Cuba. violence-prone individuals to join the UKA. "(3) A further detriment to our balance Craig, who took the 5th Amendment be Mr. EVANS of Colorado. Mr. Speaker, of payments position as a result of the c=ed fore HCUA, has also attended and author the Denver Post is· one of the great news its which we would have to extend to Com ized Klan courses in the use of shotguns, papers of this Nation. munist countries. handguns and explosives. In 1965 Craig said I wish .to commend to the attention of "(4) An increase in the :flow of our tech he_ was going after white politicians "who .nical information and know-how to the have done nothing but give lip service to my colleagues an editorial which ap Communist world. . _ the white man while they went to bat for peared ·in the ·nenve~ Post on Friday, "In short, Communist governments look the niggers." "Just remember this," he barked January 26. This editorial intelligently February 7, 1968 EXTENSIONS OF REMARKS 2581'- analyzes the actions taken by President ing Act of 1968. He calls on all of us to ment occurring simultaneously with the ris Johnson in response to the seizure of the give the young men and women of this ing demand for skilled man:Power. There was U.S.S. Pueblo, a vessel which was com country the tools which they need for a drop of 772,00(} workers in low skill manu my gainful employment after they are grad facturing· occupations between 195'7 and missioned last May and named after 1962. Yet, it was estimated that there would home city of Pueblo, Colo. uated from high school. be a 40 percent increase in the number of Mr. Speaker, the Post praises the In recent sessions of the Congress, we jobs for professional and technical workers President, both for calling up reservists have done much to support vocational by the 1970's. in case they are needed and for avoiding education. A wide variety of bills has In response to this shift in manpower a rash response which could endanger been passed. needs, the ·congress reviewed the operation the lives of the Pueblo's 83 crewmen and But we are still charged with the con of existing laws and enacted the Vocational Education Act of 1963. The new funds were also could spark a wider conflict. stant need for examining these legisla to be expended for State and local voca Mr. Speaker, I offer this editorial to be tive enactments to help our State and tional education programs under six broad printed in the RECORD: local governments keep pace with the categories; it was designed to fit individuals L. B. J.'s CoURsE Is THE RIGHT ONE changing demands of our economy. for gainful employment, including business In the crisis arising from North Korea's The President's message on education and office occupations not covered by the seizure of the Pueblo off the port of Won recognized this fact: a high school di previous laws. In FY 1965, $123,500,000 was ploma, to be valuable, must be accom a:ppropriated for operation of. programs under san, President Johnson's decision to call up this law; FY 1968 appropriations were 14,600 Air Force and Navy air reservists is panied by skills that allow any graduate $199,310,000. a sensible and constructive one. to get and keep a good job. Under the Vocational Education Act of It improves the power and the flexibility When the Committee on Education and 1963, the number of vocational students in of the United States to deal with contingen Labor reported the Vocational Education secondary schools rose by 1,504,000 from cies that may arise wtihin the next few Act of 1963, we made a strong start 1964-1966. or these 1,238,000 were persons weeks either in the Korea area or in Viet toward giving our schools the means to who were trained in a business occupation. nam. Of the remaining increase of 266,000 persons, It makes clear the seriousness with which lower unemployment in this country. Still, we can do more for, in coming 200,000 were trained in trades and industries the United States reg.ards the incident and occupations. The number of post-secondary demonstrates its capacity to call additional years, employment opportunities for our vocational students rose by 907,000; 798,000 forces into play in the event they may be young men and women will continue to of which took training in business education needed. broaden. The schools must be helped to and 70,000 of which were trained in trades It offers some relief-though perhaps not meet these changing trends in our econ and industries occupations. enough-to the pent-up flood of national omy. In the next few years, employment oppor indignation which might have forced the The President has given us a realistic tunities in the professional, semi-profes President to take still stronger action. assessment of the problem and a partial sional, and technical fields will continue to The - call-up of the reservists puts the solution. Those of us committed fully to increase. Demand in the public service field United States in a better position to act, alone exceeds labor supply by 5 to 1. The without committing it to action prematurely, providing the fullest possible educational technological breakthroughs that have been needlessly or unwisely. opportunities for our young men and witnessed in the passed five years have led This is still the time for fact-gathering women are heartened by his call to to greater and greater demands for trained and analysis, for pursuing the matter action. personnel in scientific research, development, through diplomatic channels, for seeking the At this point, Mr. Speaker, I offer a production and services in all fields of ap return of the seized vessel and its crew useful summary of this legislation which plied science. At present, it Is estimated that through peaceful means. has been prepared by the U.S. Office of there should be 2 technicians to every engi A rash act by the United States at this neer or professional physical scientist; there Education. I would like to call the atten should be 6-10 technicians for every medical stage could cost the lives of the 83 men tion of other Members to it. seized with the Pueblo and bring about the doctor or professional researcher in the destruction of the ship. The summary follows: health fields and 4-5 for each professional A rash act could also broaden the scope of FACT SHEET: PARTNERSHIP FOR LEARNING AND biological scientist. our Asian war and impose new demands on EARNING ACT OF 1968 The job of our Nation's schools is particu our military resources before we are ready BACKGROUND AND NEED larly critical in view of these new and emerg to cope with them. ing occupations and the resultant demands The 1917 Smith-Hughes Vocational Edu to be faced by the labor force. Broader train President Johnson has acted with both cation Act was enacted to meet the demands ing must be offered to high school students forcefulness and restraint. He has sent the of an economy just reaching industrial ma in vocational education; students must be aircraft carrier, Enterprise, to the trouble turity. Dominant allotments went to voca encouraged to· stay in school and to under area. He has called up reservists. He has tional agriculture and home economics; pro take technical training or other occupational taken steps to seek the return of the Pueblo. visions were also included for training in work at the post-secondary level. Adults must But he has wisely refrained from opening up trades and industry. be retrained to assume the duties of 3-4 new a treacherous new theater of war in the Far The 1946 George-Barden Act was intro careers per lifetime predicted for the future. East. duced to meet changes in labor force de The call-up of the 14,600 reservists would mands over the nearly thirty year period. PROPOSAL have made sense even -if the Pueblo had not Support for vocational education was in Title /-Exemplary programs or projects in been molested off North Korea. The growing creased and a new category of occupational vocational education Communist threat in Vietnam justifies the support was added. During the war years A program of grants for Exemplary Pro preparation of new manpower and new air preceding 1946, agricultural productivity grams or Projects to State vocational boards, power to meet dangers that might arise in had jumped from an annual increase of 1 local educational agencies, and public and the next few months. percent to an annual increase of 5 percent. private agencies, organizations and institu The President, in short, has acted wisely This rising farm productivity had freed labor tions would be established. The programs thus far from every point of view. He has from agriculture for industrial purposes. A and projects would serve as models for qual again demonstrated his capacity to keep his heavy emphasis on the need for industrial ity vocational education. Examples of pro head in a dangerous situation. If other workers during the war had also caused the grams which Inight be supported are: Americans will keep their heads as well as public schools to establish new training pro Exploratory occupational education pro grams for industrial contribution to the war he, a second war may well be avoided' in effort. More than 7 million persons had left grams; Asia. farm and fireside to work in the factories and Programs or projects to provide students industrial complexes. The Act added support educational experience through part-time for vocational education in the distributive work to assist in their maximum develop The Partnership for Learning and Earning occupations and increased support for exist ment and to help link school and employ ing categories. Ten years later two new cate ment; Act gories were added-training in the fishery Guidance and counseling to assure that all trades and industry and practical nurse students' interests and capabilities are de training. · veloped in relation to career objectives and HON~ AUGUSTUS F. HAWKINS The American economy continued to to ease the transition from school to work by initial job placement; OF' CALIFORNIA change over the next few years and man power needs shifted considerably. A chang Improvement of curricula to stimulate IN THE HOUSE OF REPRESENTATIVES ing industrial and occupational mix and a broad-scale innovative changes to provide Wednesday, February 7, 1968 more sophisticated technology led to a shift more realistic vocational education. programs from a primarily blue-collar and agricultural for youth and adults at all skill levels. Mr. HAWKINS. Mr. Speaker, the Pres labor force toward the white-collar employ Beginning with Fiscal Year 1971, the funds ident recommends that Congress enact ment. The labor market became character appropriated for exemplary programs would the Partnership for Learning and Earn- ized by a paradox of persistent unemploy- be apportioned among the States and outly- 2582 EXTENSIONS OF RE·MARKS February 7, 1968 ing areas as follows: $150,000 would be appor educational agencies in the State had reason known to prevent the continuation of the tioned to each State and not more than 2 able notice ~nd opportunity for public hear destructJ.on of nature's renewable resources, percent would be reserved for outlying areas, ings on the State plan. in detriment of the universal biological bal and the remainder would be apportioned ac The National Advisory Council would ad ance and, as a consequence, also in detriment cording to population aged 14 through 19. vise the Commissioner on regulations and of mankind. Fifteen million dollars would be authorized policy matters, including procedures con The important Department C1f Scientific for Fiscal Year 1969. cerning the approval of the State plans as Affairs of the Pan American Union was rep Before making a grant to a State or local well as exemplary programs and projects. It resented by Mr. Felipe Sanfuentes, Editor of educational agency, the Commissioner must would also submit an annual report to the the magazine "Inter-American Science"; the find that in planning and carrying out the President and the Congress on administra Technical Center of the Inter-American Press project, local manpower agencies, employers, tion of the vocational education programs Association--of so much significance for the labor organizations, and community groups in the country. free and modern journalism-by Mr. Guil will be involved. No project may be approved The provisions for lead-time and advance lermo Gutierrez, Vice President and Manag if the State board for vocational education funding authorized in P.L. 90-247, the Ele ing Director of that Oenter, and the Round disapproves. mentary and Secondary Education Amend Table had as Technical Director the Brazilian T itle 11-Consolidation and improvement of ments of 1967, would be broadened to in scientist Jose Candido de Melo Carvalho. The existing programs clude vocational education programs under Brazilian hosts added to their friendly cordi the Partnership for Learning and Earning ality, technical and practical facilities so that The proposed legislation would consolidate Act of 1968. the Braz11ian scientists and those of other in Fiscal Year 1970, existing authority for vo The Commissioner is authorized to enter countries who exposed problems concerning cational education programs under the into contracts to collect and disseminate the conservation of nature could Ca.JTry out Smith-Hughes and George-Barden Acts. The information on vocational education pro their mission successfully. earmarking by purpose of uses of funds under grams in order to measure the effectiveness The journalists of different Latin American section 4(a) of the Vocational Education Act of the program and make available materials countries and of the United States who at of 1963, such as the 25 percent minimum ex and technical assistance to State boards and tended this Second Round Table of Informa penditure for construction and/or post-sec local educational agencies or institutions of tion About the Conservation of Nature's Re ondary vocational education would also be higher education initiating or expanding sources, received with interest the brilliant removed. Non-occupational homemaking vocational education programs. expositions of the technicians and were all would receive an independent program The Federal share for the cost of the pro in agreement with the pressing need to create authorization. gram in the Trust Territory of the Pacific public awareness-through an adequate dif Starting in Fiscal Year 1970, 25 percent of Islands would be 100 percent. fusion-about the conservation of nature's the funds appropriated for the consolidated Title III-Adult education resources, so that the devastating unbalance vocational education authority above the ap that results from this destruction not take propriations level for Fiscal Year 1969 would The proposal would lower the minimum place. Everything in the universe has been be earmarked for vocational programs .specif age eligibility requirement for participation ordered in such a way by the Creator that ically designed for the disadvantaged. in the Adult Education program from 18 when the extinction of the species takes The proposed legislation would remove the to 16 years of age. place artificially, the devastation of forests, requirement for separate matching purpose The proposal would also increase the vari or the loss of water, for example, the damage by-purpose and project-by-project and in able percentage for the set-aside for special is of incalculable proportions for all. stead nrovide for overall statewide match projects in Adult Education to from 20-40 percent. Very meritorious was the work done by the ing. The proposal would provide more fiexi Department of Scientific Affairs of the Pan b111ty in that varying proportions of Federal American Union, by the lAPA Technical funds could be used in matching State and Center, by the Brazilia.n Foundation for the local funds. Federal funds could then be di Inter-American Cooperation for Conservation of Nature, and by the journal- rected to areas of greatest need. . ists, who not only heard the excellent exposi The proposal would also amend the Voca Conservation tions of the scientists, but who also expressed tional Education Act of 1963 to establish their points of view about the way in which a National Advisory Council on Vocational the governments and society in general Education to be appointed by the President HON. DANTE B. FASCELL should contribute to the necessary main and to provide for a broadly representative OF FLORIDA tenance of nature's renewable resources. State Advisory Council on Vocational Edu cation in every State. IN THE HOUSE OF REPRESENTATIVES The proposed legislation also includes the Wednesday, February 7, 1968 requirement, effective in FY 1970, that every State subm-it a State plan each year which Mr. FASCELL. Mr. Speaker, recently President's Crime Message Lays Founda would contain, in the first year, a 5-year a conference was held in Brazil to dis plan-specifying long-range objectives for cuss ways in which the inter-American tion for Congressional Action vocational education in that State-to be nations can best work together for the supplemented and updat ed in the State purpose of conserving our natural re plans for subsequent years so as to always sources. This is but another example of HON. LESTER L. WOLFF extend over a 5-year period. the many ways the nations of the West OF NEW YORK The State plan for each year would also contain an operational annual program plan ern Hemisphere cooperate for their mu IN THE HOUSE OF REPRESENTATIVES tual benefit. which would set forth detailed program in Wednesday, February 7, 1968 formation for the school year and relate an I commend to my colleagues the fol nual objectives to those set forth in the 5- lowing editorial which appeared in the Mr. WOLFF. Mr. Speaker, I wish to year plan. distinguished Spanish-language news commend the President for his message Each State advisory council on vocational paper Diario las Americas, which com on crime. I consider it an excellent state education would advise the State board for ments most favorably on the Brazil meet ment of the crime problem facing our vocational education on the development of ing: Nation today and the steps which must the State plan, including long-ran~e and an nual program objectives. Each State ad PUBLIC INFORMATION ABOUT THE CONSERVATION be taken to cope with it. The message visory council would also submit to the OF NATURE has laid the foundation for congressional State and to the National Advisory Councll, Last December, in the city of Rio de action. an annual detailed report and evaluation Janeiro, was held the Second Round Table of One area of the President's message of vocational education programs in the Information About the Conservation of Na which deserves special emphasis is that State, including recommendations for ture's Resources, for which invitations to of curing the abuses which now exist in changes considered necessary. journalists and scientists were issued by the The State plan should indicate each year Secretary General of the OAS, Dr. Jose A. our drug laws. To point out an example, that consideration had been given to the Mora. That Round Table was sponsored, in under present laws the possession of the State advisory council's recommendations. addition to the Pan American Union, by the mild hallucinogen marihuana is punish The State plan would also include detailed Technical Center of the Inter-American Press able as a felony while the sale of the more information on the extent to which State Association and by the Braz111an Foundation potent and dangerous LSD is a misde vocational education programs are utilizing for the Conservative of Nature. The Brazilian· meanor. The use of LSD must be con the experiences and knowledge gained from Academy of Science gave all its support to trolled. Its use has been linked with Exemplary Programs and Projects. The State this event. plan would contain assurances that all pol Th-e result of this Second Round Table was psychosis and undesirable personality icies and procedures concerning administra what was called "Quinta da Boa Vista Plan." changes. The American public and more tion of the vocational education programs Ten points covered the recommendations particularly the young adult population would be a matter of public record and be made to the OAS, to the IAPA Technical Cen should and must be protected from the made reasonably available to the public. The ter, to the scientists and to the journalists in evils of LSD and other dangerous drugs. State plan would also indicate that all local gener.a.l, so that all that is necessary be made I urge action on the President's proposal February 7, 1968 EXTENSIONS OF REMARKS 2583 to make the illegal manufacture, sale, or Th~ partnership is not a one-way deal, ern criminal procedures would result in distribution of LSD punishable as a Boren said. "More important than the dollar more effective local police departments. felony. and cents tag are the personal intangibles Educational programs and more ade that are involved when people work d~rectly quate compensation for training person With people, not with the focus or charity but on self-help which includes the element nel would attract professionals of high Idahoans Expand Alliance Program for of dignity." . caliber into this essential field of public Latin Americans also are making contri service. More Aid to People of Ecuador butions to the United States, he said. In the We cannot allow the minority of per Little Roc}t, Ark., public schools, two Bolivian sons who engage in criminal conduct to teachers are setting up a Spanish program, deprive other Americans of the benefits HON. GEORGE HANSEN while art exhibits from several Latin Amer of our society. Congress must act prompt~ OF IDAHO ican countries have toured the U.S. A Brazil ly on the President's proposals. ian composer will soon present a premiere IN THE HOUSE OF REPRESENTATIVES performance of an original symphony in Wednesday, February 7, 1968 Maine, Boren cited. The key to all Partners projects is self-help Mr. HANSEN of Idaho. Mr. Speaker, Boren said. The Latin Americans do all they H. H. H. Didn't Tell Whole Story the Partners of the Alliance, a non can do on a project, then their American Government portion of the Alliance for partners help with the rest. Progress, is one of the best people-to Projects are outlined by the committee in HON. EDWARD J. DERWINSKI the Latin American country and forwarded people good-will programs of which I OF ILLINOIS have knowledge. I am proud of the ex to the U.S. committee in the state involved, tent to which Idaho has participated in he said. In Idaho's case, the state committee IN THE HOUSE OF REPRESENTATIVES Will look at Ecuadorean projects in January Wednesday, February 7, 1968 this program of self-help involving our and then apportion them to civic clubs and neighbors in South and Central America. other organizations which might want to Mr. DERWINSKI. Mr. Speaker, while Mr. Speaker, the following article, from help. we all recognize the spontaneous elo the Idaho Daily Statesman of December "Any civic club, any high school student quence of our esteemed Vice President, 5, 1967, published in Boise, Idaho, gives body, neighborhood bridge group or any in a thoughtful commentary on the incon a graphic account of Idaho's latest par dividual who want to do something construc sistency of some of his recent pro ticipation in this most worthwhile pro tive can do it through the partner program," nouncements was carefully noted in the gram: Boren said. "The only limits are the limits to the imagination of the people involved." following article in the Aurora, Dl., IDAHOANS EXPAND ALLIANCE PROGRAM FOR The Partners program adds a much needed . Beacon-News on January 19, written by MORE AID TO PEOPLE OF ECUADOR "grass roots" facet to the Alliance for Prog Dumitru Danielopol, the outstanding in (By Jerry Gilliland) ress, he noted. "We have not in the past ternational columnist of the Copley Idahoans took steps Monday to step up had the means to respond to the small self Press. foreign aid to the South American country help projects in the villages, we just were H. H. H. DIDN'T TELL WHOLE STORY of Ecuador. not geared for the $).50 to $200 project." The steps were an expansion of the. Idaho (By Dumitru Danielopol) Partners of the Alliance to include a state WASHINGTON.-"We have supported ma wide representation. A visit to Ecuador some jority rule, human rights and self determina time in January is the next step for some tion tru-oughout the world," said Vice Presi members of the group. Safe Streets dent Hubert H. Humphrey on his African Idaho industrialists Robert Hansberger, tour. president ·or Boise Cascade Corp., and J. R. I wish this were so. Simplot, head or the J. R. Simplot Co., were HON. WILLIAM J. GREEN "We Will not abandon them in the sou.th hosts for the meeting in Boise which in OF PENNSYLVANIA ern sixth of Africa," the vice president con cluded active members of the Idaho Part IN THE HOUSE OF REPRESENTATIVES tinued taking a swipe at Sou.th Africa, ners of the Alliance and other interested Wednesday, February 7, 1968 Rhodesi.a and Portugal and their minority persons. and colonial rules. James Boren, Washington, D.C., director Mr. GREEN of Pennsylvania. Mr. What a.bout other parts of the world par of the national Partners of the Alliance Pro Speaker, the President today sent to the ticularly the Communis·t world? grams, spoke at the session, describing some Congress his message on the challenge The Johnson-Humphrey administration of the work other state organizations are of crime to our society. I can think of no has abandoned them for a.t least 100 million doing to assist Latin American countries. problem for which the public is demand people living in Eastern Europe. "CHANNEL" SOUGHT Our record regarding these countries is ing more immediate attention. dismal. "People in this country are ready to re The acceleration in the commission of Apart from the fact that the United Na spond to the self-help projects of the people serious crimes in the United States is a tions charter, of which the United States is of Latin America," Boren said, "they only matter of utmost concern to every citi one of the flr&t signatories, specifically need the channel to do it." guarantees human rights to all peoples, the The "channel" in this case is the Partners zen. Statistics indicate that the risk of becoming a victim of a serious crime is U.S. has other obligations, too. of the Alliance Programs, a non-government It signed peace treaties in 1947 With Italy, portion of the Alliance for Progress, he noted. constantly increasing. This unfortunate Bulgaria, Romania, Hungary and Finland. In effect, the Partners program involves trend of disregard for law and order is a All have human rights clauses. the use of statewide committees in various problem of national proportions requir Article 2 of the Treaty with Hungary says: states dealing directly With committees in ing the full attention of the U.S. Con "Hungary shall take measures necessary to Latin American countries. Idaho's partner is gress. While a majority of the crimes secure to all persons under Hungarian juris Ecuador, Boren said. committed in this country-assault, rape, diction, Without distinction as to race, sex, Boren, himself an employe of the U.S. language or religion, the enjoyment o:( hu Agency for International Development, said burglary, armed robbery, and murder are matters of local cognizance, the Con man rights and of fundamental freedoms, in an interview that only $500,000 in tax including freedom of expression, of press dollars has been spent so far on the four stitution does not prohibit the Federal and publication, of religious worship, o! year-old Partners program. Government from assisting the States in political option and public meeting." FUNDS AID TRANSPORTATION discharging their responsibilities in law The same text figures in Article 3 of the The money is used for transportation of enforcement. treaty With Romania and Article 2 of the program development teams and volunteer The President's Safe Streets and Crime Bulgarian treaty. assistance, he said. So far, the state com Control Act is designed to provide Fed These are equally binding to all signa mittees have contributed $9 million in the eral assistance to State and local law en tories, including the United States, the So form of hospital equipment, generators for forcement agencies to promote the co viet Union, France and Britain. village community centers, pumps for wells ordinated development of comprehensive For more than 20 years these rights and and other such assistance, Boren noted. law enforcement plans. liberties have been denied the peoples of Idaho has "had a very excellent and suc Bulgaria, Hungary and Romania by the sat cessful beginning" in its partners program, It can be anticipated that the result ellite regimes brought into power by Russia. he noted. The Gem State group has collected ant programs would provide greater pub Has the United Nations done anything such things as several thousand innoculation lic security from crime in our homes, and about this? needles, sewing machines, equipment for a in streets and other public places. The Why hasn't the U.N. voted sanctions rural hospital, an irrigation system, and training of local law enforcement officers against the Communist regimes, as it did equipping an Ecuadorean school. in techniques necessary to combat mod- against Rhodesia? 2584 EXTENSIONS OF REMARKS February 7, 1968

Why hasn't the United States insisted aren't the standard combat situations that ap ove 10 million and to absorb so many that the rights and liberties of the peoples lend themselves to spectacular and easily people of so varied backgrounds caused con of Eastern Europe be respected? understood reporting. In the rare instances siderable problems in the host countries all It may also be pertinent to recall that it where such situations do arise, they are over the world. This must have been the was President Johnson who on Oct. 7, 1966, often brought directly into our living reason why some fifteen years ago in West cast aside the last vestige of U.S. opposition rooms--live and in color. Competing against ern Europe a somewhat tongue-in-cheek to Communist regimes in Eastern Europe. thB~t kind of live action, the war correspond definition was coined which sounded like In a New York speech, he announced a ent has a troublesome time winning the t h is: policy of "peaceful engagement" that readers• or listeners' attention with reports "A refugee is a man who has lost absolutely abandoned the high principles of the At on pacification, nation building, and social everything except his foreign accent." lantic Charter, the ideals of the United Na and econoinic progress. This was certainly our case when my wife tions Charter and the obligations of the peace "Why is this a difficult war for every Amer and I arrived in the United States some treaties of 1947. He called it recognition of ican? Well, in the first place the public, too, eighteen years ago. Yet today when we are "the realities of today." would prefer to read about the Reinagen not refugees anymore-being the proud and It was also President Johnson who ac bridges and the Guadalcanals. We would like happy citizens of the United States of cepted a Communist as president of the our viotories to show up as well-defined lines America, and the parents of two American United Nations General Assembly. on a Inap. But the thing which causes every born children-! feel that eighteen years And it is the Johnson administration American the greatest difficulty is simply the ago _there still was one valuable item among which is advocating massive economic help n ature of the whole Vietnam problem. our meager belongings with which we arrived to the Communist countries of Eastern Eu "Because of its impact on the future of free in the New World. This item had no mone rope. men and woxnen everywhere, Vietnam is one tary value and could not be confiscated by Let's tell the whole story. Let's not pose of the most imposing problems that has faced guards on the boundaries of the Iron Cur as supporters of "majority rule, human our nation. It is a problem because its solu tain because it was invisible and intangible rights and self determination throughout tion demands special un.derstanding, convic it was the first-hand experience which I the world." tion, and support from the America.n people. brought with me from three years of struggle, The enemy knows this and attempts to ex observation and contact with the highest ploit every opportunity that presents itself." echelons of Communist leadership. American Aims and Objectives in South On November 6, 1947, Mrs. Nyaradi and I were sitting in a reserved box of the "diplo Vietnam matic row" in Moscow's Bolshoi Theater. The International Communism: A Study in occassion was the thirtieth anniversary of the HON. JOHN 0. Bolshevik revolution and the speaker was MARSH, JR. Designs and Intrigues Vyacheslav Molotov-at that time foreign OF VIRGINIA minister of the Soviet Union. IN THE HOUSE OF REPRESENTATIVES HON. JOHN R. RARICK Besides the usual outbursts against Wednesday, February 7, 1968 "Western imperialism" and "capitalistic en OF LOUISIANA circlement" Molotov's speech contained two Mr. MARSH. Mr. Speaker, without IN THE HOUSE OF REPRESENTATIVES highly important aspects. First he announced doubt tl:fere has been a great deal of mis that the atoinic bomb ceased to be an Amer understanding about the American aims Wednesday, February 7, 1968 ican monopoly and then he wound up his and objectives in South Vietnam. Re Mr. RARICK. Mr. Speaker, more voices address with a rather ominous statement declaring that "World ·War I has brought cently, there appeared an editorial in the are being raised to alarm the American the victory of Communism in Russia; World Staunton News-Leader that addresses people ag,ainst the designs and intrigues War II resulted in the Communist takeover itself to this doubt and misunderstand of the godless, materialistic philosophy of the half of both Europe anci Asia and ing, and seeks to put it in its proper of communism. World War III will inevitably result in the perspective. Many of the warnings come from the victory of Communism all over the world." Because I feel this editorial, which increasing number of citizens from Hearing this I turned toward General Wal draws on the comments of General John former free countries, from men who ter Bedell Smith, the American ambassador, son, the Chief of Staff of the Army, sets have seen the forced application of un who was seated in the adjoining box with his diplomatic family and_ asked him about out the basic reasons for our commit workable Bolshevik theories and propa his opinion concerning the Molotov state ment, I would like to bring it to the at ganda and their rejection by awakened ments. General Smith dismissed them with tention of the other Members. peoples. a shrug of the shoulder as "mere propa The article follows: Such was the speech of Prof. Nicholas ganda" and I understoOd that this was also ANSWERS QUESTIONS ON WAR Nyaradi, former Minister of Finance of the opinion of most Western diplomats who Hungary and presently chairman of the were accredited at that time in the Soviet Among major causes of opposition in this capital. country, and probably abroad, to the war in School of International Studies, Bradley Vietnam are misunderstand·ing of the con University, Peoria, lll. Th.e following day I had one of my sev duct of that war, and failure to grasp the eral meetings with First Soviet Deputy Prime His statement is invaluable to any Minister Anastas Mikoyan who was my menace of Communist aggression to free peo student grasping to understand the go ples everywhere. In a recent address to a counterpart in those long and tedious dip group of newspaper men, Gen. Harold K. ings on, direction and intentions in the lomatic negotiations which brought me to Johnson, chief of staff of the U.S. Army, made restless world, and I include Professor Moscow. Using the unfortunate Potsdam what would be a valuable contribution to Nyaradi's speech following my com agreement as a lever, Ru.ssia lodged a 200 million dollars claim of war reparations popular understanding of both of these fac ments: against Hungary and l-as the Minister of tors, were it possible to get the text of his THE COMMUNIST PARTY IN INTERNATIONAL address to all Americans. Finance of the Republic of Hungary-was AFFAIRS trying desperately to whittle down this out Because what Gen. Johnson said is so rageous amount which threatened my coun informative and to the point. The Leader (By Prof. Dr. Nicholas Nyaradi, former Min ister of Finance of Hungary, and chairman try with immediate economic collapse. (Aft er Papers begin today a serial publication of of the School of International Studies, seven months of bickering with Mikoyan I his address. I.t is probably too long to attract Bradley University, Peoria, Ill.) was finally able to reduce this claim to less the readership it merits if published in one than one fourth of its original amoun-t--to take. The following initial chapter will be fol The Bolshevik revolution in 1917 signaled the beginning of the greatest mass exodus 45 million dollars. While I feel that I must be lowed by installments which can be easily the only living person on earth who ever and quickly read. We urge all who wish a of human beings the world has known since the migration of peoples in the early Middle succeeded in taking out 155 million dollars better underst.anding of the war to read each from Stalin's own pocket this still did not one: Ages. The stream of refugees from Commu nism started with millions of Russians fleeing do me too much good. A few months later "VIETNAM: QUESTIONS AND ANSWERS the red terror the Bolsheviks have established when I had to flee Hungary for my life "'(By Gen. Harold K. Johnson, Chief of Staff, in their homeland and continued with the Stalin was able to take back not only the USA) mass movement of Poles, East Germans, 155 million dollars, but unfortunately, the "One: This is a difficult war for journalists. Czechoslovaks, Hungarians, Romanians, whole of my native land. Two: It is a diffi.cul t war fm- every American. Yugoslavians and Bulgarians to reach its While diametrically opposed to each other "Why is this a difficult war for journalists? climax during the last decade in the flight of in ideas and philosophy Mikoyan and I have To start with, it is a war without front North Vietnamese, North Koreans and Cu developed some kind of a grudging and re lines-without key terrain features-without bans. luctant respect toward each other which a Remagen bridgehead to seize, a Guadalcanal The total number of those who were not ! believe-was based mostly on mutually to assault, or a Pusan perimeter for a valiarut permitted to vote in their own countries so recognizing each other's training and expe stand and dramatic breakout. There just they chose to "vote with-their feet" is well rience in the field of economics and finances. February 7, 1968 EXTENS10NS OF REMARKS. 2585 Under such conditions I have asked apathy and in the taking for granted atti When after the Bolshev.ik revolution the Ml.koyan point blank about the meaning of tude of those· they want to destroy-our new Soviet government was crumbling as a Molotov's statement concerning the atomic selves! consequence of the severe food shortage in bomb. Mikoyan's answer was just as brief When I try to ·analyze Communist aggres Russia, it was the large scale charitable-ven and to the point when he told me that sion I speak not only on the basis of history ture of a thoroughly great American-Her Molotov meant exactly what he said. books or research. My professor in Commu bert Hoover-which saved Russia from the Shortly after my flight from Hungary the nist aggression was no less an authority than threat of famine and Lenin's government "Saturday Evening Post"-an im.portan.t Joseph Stalln. My teacher in Soviet foreign from collapse. American magazine--asked me to write for policy was Vyacheslav Molotov and I re American engineers and technicians were them three articles about my diplomatic ex ceived :first-hand lectures in the :field of So instrumental in the large scale industrializa periences in the Soviet oopital and in which viet economics from Anastas Mikoyan. I have tion of Russia during the first :five year plans I also mentioned my oonvers·ation with watched closely Nikita Khrushchev as he between 1928 and 1938, while at the same Mikoyan and expressed my opinion that the muscled himself into power by treachery time their Soviet counterparts enjoyed the Soviets have already developed an atomic and deceit and I knew personally Alexander help and the hospitality of American auto bomb. Kosygin-the present Soviet Prime Minis mobile factories where they studied American After the articles were published in the ter- from the time he was the Finance Min mass production techniques and procedures. Spring of 1949 I was deluged by letters from ister of Russia and my counterpart in the Intellectuals · !n the United States openly readers who accused me of scare tactics and Soviet government. (As a matter of fact I praised Communism and Communists dur alarmist propaganda at a time when Ameri still have reason to believe that Kosygin ing the 1930's and 1940's and an American can authorities declared that Russia will is not much more than a figurehead in the president proudly declar~d that he has sev not possess usable atomic weapons for an present power structure of the Soviet Union. eral Communists among his best friends. other :five-or even ten years. However, this I have always known him as a well estab In October 1941 United States Ambassador :fiood of critical letters suddenly stopped lished technical expert in the :field of :finances W. Averell Harriman signed the so-called when in September of 1949 President Tru and economics, who, however, was then-and "First Moscow Protocol" in which the United man tersely announced that the Soviet I believe is today-a political nonentity. So States pledged to give large scale lend-and Union has detonated its first atomic device. I feel that if Kosygin is today the real po lease aid to Russia at a time when America lltical boss of Russia then I just as well was still a neutral country, as the Japanese Today-almost two decades later-West could be either the Patriarch of Constanti attack on Pearl Harbor did not take place ern chancelleries st111 dismiss important nople or the Grand Mufti of Jerusalem). only until two months later-in December Communist foreign policy statements as It was this background over which I have 1941. "mere propaganda" or as "talking to the built my present position. as an American The 21 billion dollars worth of lend-and gallery." However, I feel that perhaps the college professor and college administrator lease aid (valued at 1938 wholesale prices) most important lesson I have learned in my as well as a proud and grateful citizen of the did not only provide Russia with enough seven months ordeal in Moscow was the dis United States of America. I keep in close military equipment to keep some 180 Soviet covery that one cannot draw a dividing line contact not only with many of my friends divisions :fighting during the war but also between Communist propaganda and Com who are statesmen, diplomats or business constituted a long range investment in the munist foreign policy: the two are closely leaders in the free countries of the world but industrial-military capability of the Soviet linked and feed on each other. also watch closely the developments in the Union. Railroad rolling stock, blast furnaces In spite of the spectacula;r success of Com United States as I am a member of the Task and openhearth furnaces, machines and ma munist aggression in the last decades the Force on the Conduct of Foreign Policy of chine tools which were received from the remaining free part of the world still stub the Republican Party. United States were used in the Soviet Union bornly closes its eyes and ears to the increas From this vantage point of observation it for a long time after the war came to an ing danger signals of Communist conquest was not too difficult for me to establish the end and provided Russia with the solid foun and domination. main objective of Russian and Chinese for dations which were needed to develop the When Lenin came to power in 1917 in eign policy which is, was and will remain country into the industrial giant it is today. Russ·ia he succeeded with the help of a the destruction of the United States of Amer (A member of the Soviet delegation I was handful of supporters-less than one tenth ica. negotiating with was the former head of of one percent of the total population of The Soviet Union and the People's Repub the Soviet lend-lease purchasing commission Russia. And today this small group-as well lic of China need desperately new areas, new in the United States. He told me how the as their heirs and successors-dominate 13 sources of raw materials, new industrial po Soviet Union received blueprints, patents and .countries which include the forty percent tential in order to sustain and expand their information on American industrial produc of the population and one-third of the land political, social and economic systems. As tion and I myself-when visiting a large area of the world. long as this power potential is available in automoqile plant in Moscow-counted some More than one b1llion people in 13 differ the United States, neither Russia nor Red 900 various pieces of machinery which were ent countries all over the world llve under China can hope to dominate permanently the marked "Made in Pittsburgh" or "Made in Communist governments today-and there North American continent-and the rest of Detroit"). was not one single case in which these gov the free countries of the world-from several The Teheran, Yalta and Potsdam agree ernments would have been establlshed by the thousand miles of distance. ments which resulted in handing over the freely expressed will of these different na The very existence of the United States countries of Central and Eastern Europe to tions-as these Communist governments were today is a roadblock to Communist aggres the tender mercy of the Soviet Union did all establlshed by force, violence, armed ag sion exactly as the ":fieet in being" was the not only cause--at least indirectly-the en gression and subversion. (The only exception cornerstone of the "Pax Britannica" in the slavement of 100 m1llion cultured, civilized was the small Indian state of Kerala where 19th century. Once the United States is de and God-fearing people, but these agree the elected Communist government misman stroyed not only its allies-like Great Britain ments -are also responsible for the consider-· aged the affairs of the state to such an extent or Western Germany-would go down the able increase in the Russian mllitary poten that even the Sociallst Prime Minister Nehru Communist drain, but even the existence of tial because of the inclusion of these highly of India had to use federal power to oust the outright neutralistic countries like Switzer industrialized countries into the Soviet Communist criminals from the Kerala gov land or Sweden would be put in jeopardy. orbit. ernment). (And while certain strains exist today-in my In 1946-at a time when the anti-commu Communist aggression has succeeded to opinion regrettably enough-in American nist members in the Polish, Czechoslovak subjugate in less than a half century such South African relations, even the future of and Hungarian coalition governments were large areas and populations that, compared the Republic of South Africa depends to a already fighting with their backs against the to this success, all the past conquerors, dic great extent on how the United States will wall the constantly increasing Communist tators and aggressors of world history-the be able to repel, contain or discourage world pressure in their countries-General George Alexanders, the Neros, the Genghis Khans, wide Communist aggression). C. Marshall wanted to persuade Generalis the Napoleons, the Hitlers and the Tojos Yet, in spite of this important role and in simo Chiang Kai-shek to participate in such look as fumbling amateurs compared to the spite of the tremendous sacrifices in lives, a coalition government with the Chinese leaders of Moscow and of Peiping. as well as in gold, the United States was will Communists. And when Chiang-seeing the Yet, the great tragedy of our times lles in ing to bear in order to repel Communist ag fate of these coalition governments in Eu the fact that this success was achieved not gression--stlll oddly enough it was the same rope--rejected General Marshall's suggestion in the name of an invincible doctrine and · United States which in so many instances the United States punished him by cancel victory was not won by Communist demigods came to the aid of various Communist gov-· ling its economic and mllitary aid to China, ten feet tall. I have known personally, per ernnients when they were about to crumble which then led directly to the Communist haps, more Communist government leaders under the burden of their own shortcom take-over on the Chinese mainland. than any other statesman or diplomat of the ings and contradictions. In the Korean war General Douglas Mac West and I came to know them as men who While it cannot be stated in good con Arthur requested several times the author were riddled with fear and inferiority com science that this was all part of a precon ity to smash the Red Chinese invaders in plexes trying desperately to make an un ceived plan, yet historical facts point clearly their "privileged sanctuary" behind the Yalu workable system work. towards the important role the United States river. 'Today we know that at that time the The key to the success of Communist has played-unwill1ngly and unwittingly-in Chinese Communists were totally unpre aggression can be found-incredibly enough building up the Frankenstein monster of pared to meet such a challenge and Red -in the ignorance, the indifference, in the Communist aggression. China's military power could have been de- 2586 EXTENSIONS OF REMARKS February 7, 1968 strayed before it reached its present fright from the island. When Nikita Khrushchev While this argument has a strong appeal ening proportion. Instead, General Mac insisted that Fidel Castro is "unwilling" to to the idealistic state of mind of the aver Arthur was relieved of his command by Pres permit such international inspection, the age American, yet one hears more and more ident Truman for "insubordination"-and United States was satisfied to photograph about the so-called "domino theory" which the United States has settled for a status Soviet freighters which were hauling large in view of the past record of Communist ag quo, making the Korean conflict the first tarpaulin-covered cigar shape objects as gression-contains a strong element of real war 1n American history which did not end proof of the removal of the Soviet missiles. ism too. According to this theory an Ameri with a victory for the United States. This was the time when rumors started in can withdrawal from South VietNam would When in 1956 the Hungarian revolution various capitals saying, in effect, that if the not only result in the Communist takeover shook the Kremlin in its foundations and United States is unwilling to enforce its own of that country, but would encourage Com threatened with collapse the Russian and conditions at 90 miles to the south of its munist aggression against other countries the Chinese Communist empires, we should border, how will it come to the rescue of an too, which would topple-like falling dom just remember Mao Tse-tung's frightened ally which was attacked 5000 miles away? inoes--in a chain reaction. Or, as I have de speech at that time ... ("let a thousand In 1963 large scale sales of American grain scribed this situation recently in one of my flowers bloom, let a thousand thoughts pre to Russia saved the Soviet government from classes at Bradley University: "If we with vail") the United States limited herself to the consequences of an acute food shortage draw today from VietNam, in two years we denouncing the Soviet brutality in Hungary and from the resulting popular discontent. would have to fight in Thailand, in five years with strongly worded speeches in the United Yet, at the same time, Russia's attitude to in the Philippines, and in ten years either in Nations. There is strong evidence today that ward the United States-both in words and Hawaii or at the Golden Gate Bridge in San if the Hungarian .,.freedom fighters would deeds--was as unyielding as ever and even Francisco." have received only token help from the West the anti-American demonstrations and de Several prominent politicians and public in 1956 then not only the other captive nunciations of the allegedly defunct Stalin opinion leaders in the United States, who nations of Europe would have risen against ist era were· reactivia ted as an instrument of oppose President Johnson's policy in Viet their Soviet masters-and it would have Soviet foreign policy. Nam, question the validity of the domino been impossible for Russia to subdue the While this brief documentation of United theory, but the past tragic record of appease simultaneous revolutions of 100 million peo States help to governments, the main purpose ment of both Nazi and Communist aggres ple in eight different countries--but there of which still remains the destruction of sion certainly supports it. I-for one-am a were also serious signs of mutiny among the America, is impressive, the great majority of staunch believer in the "domino theory", as Soviet troops deployed in Hungary. There Americans do not believe that this interest I happen to be the native of a country Hungary-which was one of the twelve was, however, at least one imp~rtant voice ing pattern was the part of conscious or de in America which stated that the United liberate planning. The overwhelming opin "dominoes" which fell to Communist aggres States went far beyond "non-intervention" in ion of Americans is that we-in our constant sion during the last two decades. Hungary. Representative Michael Feighan quest for peace-have made unintentional There would be, of course, a third-and (Democrat of Ohio) read into the CoN mistakes and that our frequent support of very forceful-argument to support the GRESSIONAL RECORD, VOlume 106, part 14, page Communist governments and their objec American stand in Viet Nam. Would it be 18785, a telegram which was sent by the State tives was motivated by good intentions. possible that one day the free world will (There was perhaps only one-now forgotten recognize the fact that if we would continue Department on November 2, 1956 to Josip on the tragic road we were walking ever since Broz Tlto, President of Communist Yugo but important-dissenting voice in this con nection: that of the late James Forrestall, the end of World War IT-constantly retreat slavia in which the opinion was expressed ing, constantly . compromising, constantly that the United States does not look with the first Secretary of Defense of the United States. He once said that if so many of our giving away our rights and the rights of favor upon the establishment of unfriendly others-then, finally, we would be pushed governments to the Soviet Union on the actions were the results of mistakes, then how is it possible that all these mistakes al against the wall and we still would have to borders of the Soviet Union. It is interesting fight. But by that time I am afraid we would to note that by that time the Hungarian ways turned out to favor our adversaries and never ourselves?) have nothing left to fight with and we revolution was completely successful, the would have nothing left to fight for. Russian occupation troops were retreating It is clear, however, that the stand which the United States takes at the present, when While the pattern of Communist aggres from Hungary and the Soviets--obviously it opposes Communist aggression in Viet sion was clearly established during the last worried about the possibility of Western Nam, is quite different from the general pat decades--first in the foreign policy of the intervention in Hungary-were negotiating tern of the last three decades. While the war USSR and then later in the official attitude in Budapest with the Imre Nagy government aims of the United States in Viet Nam seem of the People's Republic of China, it is inter about Hungary's withdrawal from the War to be just as limited as they were in Korea esting to observe the perfect co-ordination saw pact. (containment of aggression without clear between these policies and the various Com However, if Congressman Feighan's state cut military victory), yet the American munist parties and Communist sympathizers ment was based on correct facts-and to my bombings of Communist military installa all over the world. knowledge the existence of such a telegram tions in North VietNam, as well as the con During the first 21 months of World War was never denied-then this message might spicuous absence-until now at least-of II, when Britain was staggering under the :Qave alleviated the Soviet fear from Ameri Chinese "volunteers" show a considerably blows of the Nazi war machine, Communist can intervention. Two days after the tele harder line of American policy than was the Russia and Nazi Germany were co-operating gram was dispatched a Soviet army of 200,- case in any previous confrontation with with each other in full harmony under the 000 men and 6,000 tanks invaded Hungary Communist aggression. terms of the Ribbentrop-Molotov agreement. on November 4, 1956 and crushed the revolu We have also to state that in spite of past As late as in June 1941 American Commu tion in a blood bath. Under such conditions mistakes and in spite of the increasing efforts nists were picketing the White House and it would seem plausible that this telegram of the "New Left•• in the United States, the demonstrating against the possibility of the might have been the green light which great majority of the American people are United States entering the war on the side prompted the Soviet invasion of Hungary genuinely worried about Communist aggres of Great Britain. When Germany suddenly at the time of the greatest crisis in the sion and are willing to bear the necessary invaded Russia on June 21, 1941 the same Communist world. And if this telegram real sacrifices both in American lives and in Communist demonstrators--still carrying ly expressed the official position of the American gold to oppose this aggression. their signs which read: "Let God save the United States government it would not seem While the Vietnamese war is certainly not King, the Yanks are not coming"-were sud exaggerated to say that it not only prevented popular with the American people, yet the denly withdrawn, only to reappear a few this way the destruction of the Soviet colo great majority of Americans support the hours later demanding America's immediate nial empire in Europe but perhaps also the President in the stand he takes against Com entry into the war on the side of Russia and collapse of Communism in Russia and even munist aggression. If criticism is voiced it is Great Britain. tually in China. not so much because of our stand in Viet During the thirties and the forties left The ill-fated landing at the Bay of Pigs Nam, but because the people would like to wing elements all over the Western world in Cuba in 1961 has ultimately helped Fidel see the war ended by the full use of Ameri were busy in explaining that the Russian Castro to tighten his grip on this newly can technical power and military superiority. people under its Soviet masters live con established Communist military, economic (This was clearly demonstrated in public siderably better that it did under the Czar and propaganda base in the Western hemi opinion polls taken at the end of June 1966 and that the Chinese Communists are ideal sphere. And while the late President John and which showed that President Johnson's istic "agrarian reformers." The Communist F. Kennedy in 1962 successfully called the sagging popularity had increased after the take-over of Cuba was greatly fac111tated Soviet bluff in the Cuban missile crisis, new American air attacks on oil installations through the successful propaganda in the America's unwillingness at that time to in the previously "off limits" Hanoi United States, depicting Fidel Castro as the eliminate the Communist power base in the Haiphong area were announced). best hope for democracy in Latin America. Western hemisphere might have been the The general explanation and justification Turning our attention to more recent first factor which started the slow disin of the American stand in Asia is the guaran events, which clearly prove the close connec tegration of the North Atlantic Treaty Or tee which three Presidents of the United tions between Soviet and Red Chinese for ganization. The original American condition States (Messrs. Eisenhower, Kennedy, and eign policy on one side and the activities of to lift the "naval quarantine" around Cuba Johnson) have given to the people of South the world-wide Communist parties on the was that international inspection should Viet Nam in order that they should be able other, we have to look only at the statement certify the removal of the Soviet missiles to preserve their right of self-determination. of Dr. Leone! Alonso, which he made recently February 7, 1968 EXTENSIONS OF ·REMARKS 2587 at a press conference in Miami, Florida. Dr. subcommittee said in a report on hearings Even if we believe that the overwhelming Alonso, who defected from his post as Castro's held last year, "from planning to the final majority of the VietNam w~r critics in the ambassador to Lebanon only last summer, effort to proselytize young people." United States are not Oommunists or Com told how he and other Cuban diploinats dis · Seventy-eight pages of previously secret munist-influenced, yet it is tragic to observe tributed millions of dollars all over the world testimony, made public with the report, dealt how the clever Communist propaganda has to the local Communist parties, financing in with the Free-Speech movement at the Uni blinded these otherwise honest and goodwill this way Communist revolts and anti-g~vern versity of Ca!ifornia, and with war protests people to accept the Communist propaganda inent activities in various countries. (As the there and at the University of Wisconsin. line of confusion and double standards. former Cuban envoy made it clear that much The subcommittee inquiry also covered the Today many American politicians, public of this money came from Soviet sources, it is W. E. B. Du Bois Club and the report said opinion leaders, students and professors con somewhat difficult to understand why so there is "an official link of the Communist demn what they call "American intervention" many leaders in the Western world still Party, through Du Bois Clubs, with campus in VietNam. Yet most of these distinguished doggedly believe that the Soviet government activities directed against policies of this people were conspicuously silent when Soviet has become a moderate, peace-loving group country with respect to Viet Nam." tanks crushed the revolt of the East-Berlin of gray-fiannei suited business executives, The hearings were held May 17 and 18, 1965, work·ers on June 17, 1953. whose only concern is to maintain order and amid demonstrations on campuses around Many clergymen-and the World Council equilibrium all over the world .. It is also the country. of Churches-call the American resistance interesting to note that the present methods · "These demonstrations seemed spontane to Communist aggression immoral. Yet, not and organization of Communist espionage ous at first," the report said. "But a pattern as much as a whisper was heard from these and sabotage activities-as revealed in Dr. emerged, on campus after campus, which same circles when Communists overran Tibet Alonso's statement--fits exactly into the pat made it unmistakably clear that · the Com in 1958 and forced the Dalai Lama-the tern which I have described in my book, My munist Party, USA, and its front organiza spiritual leader of Buddhism-iiito- exile. Ringside Seat in Moscow, some fifteen years tions were playing a key role in organizing When last winter a fanatic American ago). them. pacifist burned himself to death in front of During last summer, when a rash of so "It became increasingly evident that the the Pentagon, protesting the American in called race riots hit several large American Communist Party in both fomenting and ex volvement in Viet Nam, nobody asked the cities and in many cases the National Guard ploiting campus unrest was laying the question why not one single "pacifist" dem had to be called out to quell the disorders, groundwork for a concerted drive to recruLt onstrated in front of the Soviet Embassy in the General who commanded these troops in youth to its cause." It went on: Washington in November 1956, when the Cleveland, Ohio said that "we are fighting a "A traditional tool of the Communists is Sovi·et army murd-ered tens of thousands of guerrilla war". While there was widespread infiltration, and it was used to the hilt on freedom fighters in Hungary. concern that these riots followed a clearly campus after campus. Students-body griev The double standards in this connection established pattern with trained agitators ances were either fraudulent, created, stimu are so obvious that one cannot but quote including Communists-organizing the in lated or exaggerated as a catalytic means of the words of the old American adage: "What surrection, the United States Government setting off mob explosions. is sauce for the goose, should be also sauce steadfastly denied the existence of such in "Once aroused, students' energies were for the gander." As long as these double fiuences. However, the New York Times pub channeled and directed by professionals and standards will exist, questions will continue lished a report on August 26, 1966 according their disciples into forums, rallies, protests, to pop up if not about the goodwill and the to which Mayor Ralph Locher of Cleveland resolutions, defiance of law and out-and-out honesty of the non-communist supporters "wholeheartedly" agreed with grand jury law violations." of this cause, but at least about their knowl findings that recent riots in his city had been Among the most vociferous anti-Viet Nam edge and understanding of the lessons of fomented by trained agitators, assisted by demonstrators are the members of the so history and the nature and pattern of Com Communists. It should be also noted that the called W. E. B. DuBois Clubs--a student munist aggression. so-called "civil rights movement" in the group which was recently placed by the U.S. The clever cooperation between official United States should be strictly a matter of Attorney General on the list of subversive Communist foreign policy and party prop internal policies and should have nothing to organizations. The Communist. affi.liations aganda has by now regrettably resulted in do with international relations. Yet, several of this group became evident in the follow a king-size confusion of the Western mind. leaders of this movement made it clear, in ing statement made by 9-us Hall, the leader It would be difficult to deny that a consider many instances, how they condemn the of the Communist Party of the United able tension exist today between the Soviet stand which the United States takes in Viet States: "Quite naturally we have the closest Union and Red China yet nobody dares to Nam opposing Communist aggression. ties with the DuBois Clubs since they occupy predict the Soviet attitude if and when "the · Of course one should not say that all op a Marxist position. ~ny of the members of chips would be really down". The painstak position to the Viet Nam war in America the DuBois Clubs have joined our party. ing desire of Washington to keep the Viet comes from Communist or Communist-in "The fact that youths are coming into the Nam war localized and limited stems from fiuenced elements. Yet, there is ample evi Communist party of the United States is a the uncertainty that nobody seems to know dence that this relatively small but ex most important distinguishing feature of our how the Soviet leadership would react to a tremely vociferous and often articulat~ group time." spreading crisis in Asia. Great-power politi was strongly used by the Communists in While the role of Communist parties carry cal interests of the Soviet Union obviously order to achieve their over-important goal: ing out Russian and/or Red Chinese instruc would not favor large scale Chinese gains in first to discredit and then to paralyze Amer tions all over the world is extremely danger this area, yet the significant and increasing ican resistance to Communist aggression. The ous in itself, it can become an outright trag Soviet military aid in anti-aircraft weapons House Committee On Un-American Activities edy in case of war. When I visited the Kutu to Hanoi seems to indicate that Communist of the Congress of the United States held zov Military Academy in Moscow (the Soviet ideological solidarity still supersedes Russian hearing recently on a proposed bill which equivalent of West Point or Sandhurst), the power political interests. would prevent American citizens from giving commanding general of the school explained At the same time the Western world still moral or financial aid to the enemy in an to me how his officers are being trained not desperately clings to the wishful dream con undeclared war-in this case the Viet Cong only for "horizontal" but also for "vertical" cerning the "moderation" and "mellowing" and Communist North Viet Nam. The op warfare. of Soviet foreign policy. While there isn't ponents of the bill not only made shambles Following my question he explained that an iota of real evidence for such a change of the hearing room with their unruly be until the establishment of the Communist except for certain minor changes in Russian havior (a relatively mild example of this was rule in Russia the world knew the classical strategy and tactics-we still stubbornly talk the statement of one of the witnesses when form of "horizontal warfare"-the opposing about "Chinese Communist aggression in he refused to answer the Committee's ques armies meeting head-on in the field on the Asia" while we constantly try to convince tions on the ground that "the question "horizontal" level. However, now the Com ftussia about the possibility of a fruitful co nauseates me and I would vomit all over the munist parties in the various free countries operation between the Communist and the table") but several of these opponents possess a "vertic·al" potential and can pene non-communist world. It almost looks as if openly admitted that they are Communists, trate deeply into the social, economic and we would draw a dividing line between the or "Marxist-Leninists". It would be difficult industrial structure of their countries--help "bad Communists" in Peiping whom we have to deny the similarity between the behavior ing this way actively the attacking Com to resist and the "good Communists" in of these anti-VietNam war demonstrators in munist forces in "vertical warfare." Moscow with whom we can co-operate! 1966 and the attitude of the Communist I also remember once having told a high The greatest-and most dangerous-suc pickets in front of the White House in June ranking Soviet official in Moscow that in of 1941. cess of brain washing and propaganda, how view of the overwhelming industrial power ever, consists in the fact that by now most In this connection, it is extremely interest of the United States the Soviet Union would of the people in the free world sincerely be ing to examine the recent findings of the not have a chance in winning a miUtary con lieve that anybody who calls their attention Internal Security Subcommittee of the frontation with America. Hearing this, he to Communist aggression is either a war United States Senate. The committee charged sm.iled and answered with an ixonic expres monger or an extrem.i&t--if not outright a that Communists have played a key role in sion on his face, "Mr. Minister, even the most Fascist or a Nazi. The wartime coalition of organizing campus demonstrations against compUcated American machines will grind the great democracies with the Soviet Union the war in South VietNam. to a halt if a few grains of sand will be has crea;ted a curious sta-te of mind: be "The Communist Party, USA, brand may dropped betw.een their wheels. And believe cause of the World War II confrontation of be found upon every phase of the rallies," the me, we have the men ·to do this job." powers the subconscious belief still lingers 2588 EXTENSIONS- OF REMARKS February 7, 1968 that anti-communism is necessarily identi since the administration's travel tax plan I am joined today in this determination cal with Fascism. Yet · the · proudest badge has been made public. While critics are by a partisan group of House Members I am still wearing as a consequence of my including: Mr. BARING, Mr. BRASCO, Mr. high office in Hungary consists o.f the fact notoriously fickle, on this issue however, that the Fascists there didn't miss an op there ·has been more consensus than BROWN of Michigan, Mr. CAHILL, Mr. portunity to call me· a Communist, or at usual..:_and I believe for good reason. As DANIELS, Mr. DE LA GARZA, Mr. DERWIN least a fellow-traveler, while the Commu a means of substantially cutting into SKI, Mr. DICKINSON, Mr. FOLEY, Mr. nists branded me as an American spy and the balance-of-payments deficit the GOODELL, Mr. KYROS, Mr. McCLORY, Mr. an agent of the imperialists. travel tax represents more of a nuisance McCLURE, Mr. O'KoNSKI, Mr. PHILBIN, The desire for a lasting peace is deeply than a serious formula for even a partial Mr. POOL, Mr. RIEGEL, Mr. ROGERS of rooted In the hearts of free people every where. They stlll have to learn yet that peace cure. Moreover, the particulars of the Florida, Mr. SMITH of New York, Mrs. can be neither achieved nor defended by measure are so riddled with exemptions, SULLIVAN, Mr. VANDER JAGT, Mr. WHAL weakness, hesitation and appeasement. and so arranged that the middle-income LEY, Mr. WHITTEN, and Mr. WIDNALL. I have known, personally, more Soviet traveler is hardest hit-the rich can af leaders than perhaps most Western states ford it no matter what, and the poor men and diplomats. And I have known these would not be going in any case--that I leaders as men who understand-unfortu nately enough--only one single language: believe the individual tourist tax ap Congressional Summer lntem Program the language of iron determination, as every proach to be faulty and more burdensome thing else they mistake for weakness. The than the value of the added revenue. best way for us to maneuver ourselves into Following is a recent editorial from HON. WILLIAM V. ROTH, JR. the horrors of World War III would be to the Newark News: OF DELAWARE create the false impression in the minds IN THE HOUSE OF REPRESENTATIVES qf the leaders of Moscow and of Peiplng that TAXING TOURISTS we are weak, that we are afraid, that we The tax on tourists' overseas spending, Wednesday, February 7,1968 want peace at any price. In this case I can which President Johnson has proposed to Mr. ROTH. Mr. Speaker, I was, as assure you that we would witness the ex help reduce the unfavorable balance of inter plosion of Soviet and Red Chinese nuclear national payments, attempts to meet pro were many Members, deeply disap warheads over the cities of the free world. tests against unduly burdening teachers, pointed in the House's action when it The only way to avoid World War III is to students and others traveling on small eliminated funds to continue the con let these leaders know that we are ready, budgets. gressional summer intern program. Not able and willing to fight if they ever would A student prepared to spend $600 in a two withstanding the very real need to cut force us into it. Never before In world his month European stay-based. on Treasury S'pending, I believe the proven worth of tory was the 2000 years old Roman adage Secretary Fowler's report that $10 a day is as true as it is today: "sl vis pacem, para typical-is hardly likely to cancel because of the intern program justifies its continua bellum"-lf you want peace, be ready and a $27 tax. Nor is a traveler who has long tion. prepared for war. been dreaming of a three-week tour at a House Resolution 1008, introduced by In this connection there cannot and should modest $15 a day likely to be upset by a levy Messrs. MACHEN and CLEVELAND last year, not be any difference between free nations of $25. As for the rich, they are not likely is presently pending before the House all over the world. It is certainly not within to be stopped by the proposed tax. Administration Committee. It is my my competence and jurisdiction to discuss Even though the tax rate doubles on understanding the committee plans to certain divergencies which exist between the spending of more than $15 a day, the total official foreign policies of The Republic of effect still may be more nuisance than deter take up the proposal in the next few South Africa and the United States of Amer rent. Similarly, the proposed 5 per cent excise weeks, and I hope passage of the resolu ica. But as a private American citizen I be tax on plane and ship fares would probably tion can be achieved soon. lieve I have the right to state that when it provide little or no restraint. The beatniks, hippies, and flower chil comes to Communist aggression then South The President himself acknowledged as dren, who capture the headlines and Africa and the U.S.A.-as well as all the free much in predicting, i~ his State of the Union generate expressions of concern over the nations of the world-find themselves in the message, that even under the proposed limi younger generation, are by no means same boat. Whether it is in the lovely capi tations Americans wlli travel more overseas tal city Pretoria or in my home town of this year than ever. Furthermore, the $500 representative of America's young peo Peoria, Illinois, U.S.A., we face the .:;arne m1111on by which the President hopes to ple. On the contrary, I find the young dangers and share the same hopes and as slow tourist spending is only about one men and women I meet increasingly pirations. Besides courage and determination seventh of the deficit in the balance of aware of the problems confronting us as our mightiest weapon is the fact that truth payments. a nation, and more alert to the chal is on our side. The half century record of So what Congress is asked to approve is a lenges and responsibilities of citizenship. Communist aggression speaks so loudly for form of tourist harassment that at best We, in Congress, I believe, ought to en itself that it is frustrating and discouraging would have a negligible effect on the balance. to see the great obstacles and difficulties courage intelligent and industrious which seem to stand in the way of drawing young people to take an even greater in the inevitable conclusions from this record. terest in the affairs of their country and Would it be possible that the words of the France Must Pay Its Debt to devote a part of their considerable American philosopher, George Santayana, energies and talents to public service. can be applied to us who said that "those Recognizing the educational benefits who are unwilling to learn the lessons of HON. THEODORE R. KUPFERMAN derived from working and studying on history are bound to repeat it?" OF NEW YORK Capitol Hill, a number · of colleges and There is no question about it that a fog IN THE HOUSE OF REPRESENTATIVES universities have for a number of years of Ignorance, of indifference, and of apathy supported a summer-in-Washington has descended upon the hearts, the minds, Wednesday, February 7,1968 and the souls of free people all over the program on their own. Reports indicate world. If we will not be able to lift this fog, Mr. KUPFERMAN. Mr. Speaker, I that many of these young scholars have it wlll inevitably lead to blindness. And in have today joined with Congressman given valuable assistance to individual this connection we cannot but remember LESTER WOLFF-see the CONGRESSIONAL Members who have set them to work on the 3000 year old Greek adage: "If the gods RECORD of February 1, at page 1779-and research projects. want to destroy someone, first they strike the more than 100 Congressmen who The individuals interning under these him with blindness." have signified their desire by concurrent privately sponsored programs will not, resolution that France be called upon to of course, be affected by our failure to pay its World War I debt to the United fund the Congress' own summer intern Tourist Harassment States of over $5 billion still in default program. But, hundreds of bright young both as to principal and interest. people interested in government and While among friends debts can be for politics attending the vast majority of HON. PETER W. RODINO, JR. given, for we sometimes ask to forgive schools which do not support their own OF NEW JERSEY our debts as we forgive our debtors, intern program will be foreclosed from IN THE HOUSE OF REPRESENTATIVES France, as personified by Gen. Charles de taking advantage of this unequaled edu cational opportunity as a result of the Wednesday, February 7.. 1968 Gaulle has indicated a determination to breach the traditional ties between that House's action. Mr. RODINO. Mr. Speaker, numerous country and ours. Accordingly, we should Last summer I had two interns for 5 editorials and other expressions of in expect to be compensated in the full weeks each. They· did not have much terest have been appearing steadily amount due. time to learn the ropes here on the Hill, February 7, 1968 EXTENSIONS OF REMARKS 2589 but both young men, John Stoppelman joyed certain ta~ ·concessions that·rn them -Europe on $7 a Day and Vincent Poppiti, plunged into their selves.represented an indirect contribution ro work with enthusiasm and were of great the arts from the economy's public sector. . When in 1965 .the National Foundation of HON. BOB WILSON help to me~ I have had to put oft the re Arts and Humanities. was founded, ita birth quests of other young men and women was accdmpanied by a great deal of goodwill, OF CALIFORNIA who wish to work here on the Hill this but also a. certain healthy skepticism. This, IN THE HOUSE OF REPRESENTATIVES summer in the hope that the House will after all, was not the American way of finan Wednesday, February 7, 1968 continue the intern program, if only at cing the arts, and this new Government body a limited level. I should like to say yes had to prove itself in a number of areas. Mr. BOB WILSON. Mr;· Speaker, now to one or two of them. First, was it. efficient.? Did it know where to that the a.dminintration ·has-unveiled. its pass the buck. where it. was most needed? plan for taxmg foreign travel by Ameri The highly publicized activities of a Second, was it-impartial? In Europe, the con small number of interns last summer cans as a so-called solution to reducing cept of a nonpolitiqal but government our balance-of-payments deficit, it be should not cause us to abandon such a financed agency is more easily accepted than worthwhile and successful program as in the United States. hooves us to examine this proPOsal very this. Rather, it is incumbent upon Mem The foundation has set a record of which carefully. In my opinion, the administra bers themselves in the selection. and su it can be proud. Born part of despair and tion has not made a sufficient case for a pervision of their interns to instill in disbelief, it has established for itself in the travel tax. It is incredible that each time them a respect for the Congress and its world of the arts a reputation not only for the adminiStration finds itself in a def traditions to prevent a repetition of last fair dealing but also for perceptivenets. The icit. situation, it calls for more taxes. foundation also has proved itself extremely First, we are asked to levy a surtax on summer's unfortunate incidents. :flexible in its ope.rations, recognizing that arts subsidies in the United States cannot be income to help reduee our budget defi slavishly based on European models, but cit. Now, the call is for a travel tax to The New York Times Praises Performance must meet American needs. help stem our dollar outflow abroad. Yet. After three years of' trial the foundation the administration is doing nothing to of Arts and Humanities Foundation is awaiting House debate on renewal of its attack the more basic causes of the bal lffe for the next two years. The United States ance-of-payments problem such as re HON. JOHN BRADEMAS now gives less Government support to the ducing our own Government expendi arts than any other civilized country in the tures overseas or limiting our spending OJ!' INDIANA. Western world. In view of the need to restrict programs at home. IN THE HOUSE OF REPRESENTATIVES. spending in every sector, thould Congress cut back? It is not without relevance that At this point, I would like to introduce Wednesday, February 7, 1968 devaluated Britain, in her hour of greatest in the RECORD an editorial from the Mr. BRADEMAS. Mr. Speaker, within financial stringency, has just promised not Wall Street Journal which also points the next few weeks the house will con less, but more, for the arts. out that one of the serious side effects sider legislation to continue and expand of the proposed travel tax is that it a program of great significance to the would clearly interfere with every Ameri quality of our national life. I refer to Seven Million Americans Benefit by can's right of free movement: the National Foundation on the Arts Increase. in Minimum Wage EuROPE ON $7 A DAY and the Humanities ~ established in 1965 The striking thing about the Adminis to encourage progress and scholarship tration's proposed travel tax is that it is in the various branches of the arts and HON. EDWARD R. ROYBAL intentionally designed to interfere with the humanities. OF CALIFORNIA liberties of American citizens. IN THE HOUSE OF REPRESENTATIVES That the tax will inhibit the ability of Mr. Speaker, as a nation marked by ordinary Americans to travel to Europe is continuing scientific and technological Wednesday, February 7, 1968 not merely an unfortunate side effect. The advancement, we must also direct our whole purpose of the proposal is to allow the Mr. ROYBAL. Mr. Speaker, for the Government, in its ultimate wisdom, to con energies and concern much more vigor past 30 years, the Federal minimum wage ously to the development of our cultural trol the movement and spending of its law has been an effective instrument for citizens. resources. insuring human decency in America. It is all very well for the Administration Congress recognized this need in creat Today, the value of this law is espe to cloud the coercive intentions of the tax ing the National Foundation, which for cially great as we fight an all-out battle with deductions and other gimmicks. Yet In the past two and a half years has per against human disadvantage in the doing so it paints a curious picture of its formed with wisdom and imagination in cities, towns and hamlets of our country. own notions of social worth. It allows a $7 administering grants to support projects On February 1, 1968, new increases in daily allowance free and taxes the next $8 in the arts and humanities across the the Federal minimum became effective. a day at half the ordinary SO % rate. country. The intention, apparently, is to avoid 111- They· mark a milestone in the economic terfering with the dirty shirt set, skylarking Mr Speaker, in an editorial on Febru history of the United States. students and other minimal spenders. But ary 6, 1968, the New York Times offered More than 7 million men and women the modest American who . has . put aside high p:raise for the prqmising record many of them family breadwinners-will $1,000--say, $200 a year for five years-for established by the National Foundation realize pay hikes because of these in the expenses of three weeks in Europe wm so far and support for its extension by creases in the Federal minimum wage: find he now needs about 15% more, which the Congress. 5.9 million persons covered by the law will prove painful if not prohibitive. As noted by the Times: To help enforce these elevated and dis before the 1966 amendments to the Fair criminating notions, the traveler is faced The United States now gives less Govern Labor Standards. Act will now.receive at with elaborate methods of repression. Report, ment support· to the arts than any other least $1.60 an hour; and 1.3 million newly justify and post bond before you can be civilized country in the Western world. covered employees will receive at least released from the U.S. We can do no less than to build upon $1.15 an hour. It is also very well for the Administration the small beginning we have made in This means that millions of citizens to say the tax will expire in two years if public support for the arts by approving will be able to share a little better in the Congress enacts it at all, but that is one abundance of America. It also means, we have heard before. Our own morning line the bill to reauthorize the program of ha.s. very long odds on this tax passing from the Nationar Foundation for another 2 that $2.3 billion will be added this year the national scene any time before the cur years. to personal income. rent Administration does. I insert the text of the New York Neither the beneficiaries of the higher Especially so since the Administration is Times editorial at this point in the minimum wage nor the rest of our doing nothing to attack the more basic RECORD: citizens will ever be the same for the causes o! the balance-of-payments problem. welcome change set in motion by the 1966 It is not in. any significant way cutting back.. NATIONAL ARTS FOUNDATION Fair Labor Standards Act amendments. on its own overseas commitments, which lie Public, as opposed to private" subsidy o:t: I think history will be very kind to the much nearer to the heart of the problem the arts is something new in this country, than tourism does. Nor is it pursuing the or at least overt subsidy is. For some con farsighted-and humanitarian-legis Governmental austerity at home which is siderable time the arts have enjoyed founda lators and President who were respon the only internationally proven cure for pay tion support, itself an oblique public tubsidy, sible for these-increases in the minimum ments deficits. At the same time it proposes and patrons of the arts have for long en- wage. the travel tax it pre.sents a budget with a CXIV--163-Part 2 2590 EXTENSIONS OF REMARKS February 7, 1968 deficit, if everything goes well, of some $8 A Delta. Airliner was mired In the mud off Capt. Edward J. Burke, chairman of the blllion. the same runway. The co-pilot :flying the Air Line Pilots Assn.'s all-weather :flying The travel tax, then, is merely the latest TWA plane has said he heard a. thud as he committee, was asked if all-weather :flying edition of a weary story. For the mistakes of passed the mired plane and aborted the :flight was here yet. "Yes," he said. "It's still in the their governors, the people will pay, not only which resulted in the crash. experimental stage the same as it was in Gen. with their money but with their freedom. Capt. McDonald is chairman of the Air Doolittle's time in 1929.'' Line Pilots Assn.'s enforcement procedures Burke discussed proposed new lower :flying study committee and has been active in acci minimums. He said some airports had sur dent investigations. He said sliding off run face detection equipment (radar) which Cincinnati Air Safety Conference Packs ways is one of the worst things facing pilots would show the entire surface of the airport, District Court-Participants Agree today. "One major carrier had 11 planes go including a. man on a bicycle in a fog. off runways last year," he said. "They've just decommissioned it and now is Large Expenditure Needed George Gary, eastern regional director of when we need it," he said, and said. the Federal Aviation Agency, was asked if "We've had cases where people drive out on the FAA certified airports. He said the FAA runways in autos, strangers visiting air HON. ROBERT TAFT,JR. did not, that it was left up to local govern ports. You ask me to take 150 people down OF OHIO ments. that runway?" IN THE HOUSE OF REPRESENTATIVES McDonald said that because it does not A former FAA official said the decision was certify airports the FAA does not require based on economic factors. Wednesday, February 7, 1968 them to have fire fighting equipment. Noting Burke, asked if huge, complex new planes Mr. TAFT. Mr. Speaker, on Sunday, that the Greater Cincinnati Airport has a. have put too great a. stress on pilots, he said fire department, he said, "~ lot of airports yes. Burke, stressing the need for new safety February 4, 1968, Congressman DoNALD do not even have a bucket of sand and yet air equipment in planes for landings and take D. CLANCY and I cosponsored an Air traffic is authorized into those airports." He offs said, "Less money is spent on instruments Safety Conference in Cincinnati, with said most everyone associated with aviation than on the entertainment factor on air · the express purpose of educating the is certified and airports should be, too. craft.'' public, their elected officials, and of ex Carl B. Rubin, Cincinnati attorney who In a. discussion on noise abatement, it was posing areas that might require addi moderated the panel, asked Capt. McDonald suggested airports buy more acreage to re whether most fatal crashes occur near air move homes from the vicinity of airports tional congressional study and possible ports. McDonald said the largest number of legislation. We were delighted with the where landing and takeoff noise is greatest. fatalities are near airports. "The most haz Byron Dickey, general manager of the large numbers of Cincinnatians who ardous part of the trip is the takeoff and Greater Cincinnati Airport said the airport came to the conference to hear from the landing," he said. used to talk about a. total of 3000 acres but the various government and private air Wallace Power, Cincinnati utilities direc now is aiming for 8000 acres by 1970. He said safety experts. tor, said after years of discussion Cincinnati it's a. question of whether it is financially now has a. small amount of money for plan feasible. It was obvious that there was little ning a. firehouse at Lunken Airport. "All it general agreement among participants takes is money," Power said. as to the best method of attacking the Robert Monroe, who represented the Air (From the Cincinnati (Ohio) Enquirer, problems of air safety, although all craft Owners and Pilots Assn., said incidents Feb.5, 1968] agreed that additional further expendi of fires are fewer than 150 per year. pANELISTS AGREE $5 BILLION NEEDED FOR tures would be needed. Cincinnati Post Monroe said his organization is opposed to AIR SAFETY & Times Star Reporter Dick Rawe, and a use charge to help finance improvements at (By Bob Brumfield) ·cincinnati Enquirer Reporter Bob airports. He said people in general aviation, The 1968 Air Safety Conference held in which excludes the military and major air Cincinnati Sunday proved that Ohio's con Brumfield have written in.tertsting ac lines, pay their fair share through purchase counts of the conference. Their articles gressmen and a. blue ribbon panel of avia of goods and services at airports. tion experts are vitally interested in :flight follow: Gary said the total investment in airports safety but don't know where to get $5 billion. today is $5.5 billion, according to FAA rec [From the Cincinnati (Ohio) Post & Times It also indicated that airline pilots disagree Star,Feb.5, 1968] ords. He said in order to bring airports up to expected FAA standards in the next seven with general aviation pilots, both disagree WHO PAY? EXPERTS DON'T KNOW, BUT Am years it would cost another $5 billion. "The with air traffic control personnel, everybody SAFETY IS GOING To BE COSTLY question then is, how would this be paid," is sore with the Federal Aviation Authority and airport managers are caught in the mid (By Dick Rawe) he said. Plane crashes at the Greater Cincinnati He said there are 10,000 civilian airports, dle. Airport weren't supposed to be discussed at of which 7000 are unpaved and unlighted Fortunately for the cause of air safety, the Cincinnati Air Safety Conference, but and only 1200 of the 10,000 have runways in airing their differences of opinion on just they came up for discussion anyway, if only 5000 feet long or longer. He said 6300 are about every facet of :flying, the spokesmen for indirectly. privately owned and added, "Unless some the various associations and agencies repre Experts from all fields of aviation agreed thing is done we are going to lose some fine sented at Sunday's meeting pointed up the that bllllons of dollars must be spent in the airports." many problems involved and the various op future in aviation and much of it for air The safety conference was sponsored by tions available for solving them. safety. They didn't agree on who should foot Reps. Robert Taft Jr. and Donald D. Clancy And according to Reps. Robert Taft Jr. and the blll. of Cincinnati, who participated in the first Donald D. Clancy (R., Cincinnati), co Financing of larger, better equipped air panel, "Public Responsibility," with Rep. sponsors of the conference, that was the ports, new instrumentation in planes and Donald E. Lukens (R., Hamilton), and Rep. idea of having it in the first place-to inform better trained personnel in aviation came into William E. Minshall (R., Cleveland). the public and their elected officials. each of the 45-minute panel discussions held Minshall, who has a. private pilot's license, Since the meeting featured four congress yesterday during the safety conference at the said: "The sky literally used to be the limit, men-Rep. Donald E. Lukens (R., Hamilton), U.S. Postoffice and Courthouse. v·a.st and uncluttered." He said we are head Rep. William E. Minshall (R., Cleveland) and During a discussion on "Airport Construc ing toward a crisis in the air and likened it Representatives Taft and Clancy, it could tion and Modernization," Capt. John McDon to highway traffic today if no expressways have developed into a political show. It ald, a. United Airlines pilot who files out of had been built. Minshall, Wllo is on the didn't. Detroit said, "I cannot disagree, safety does House Appropriations Committee, said a The legislators spoke briefly at the begin cost money. But, the lack of taking safety move must be made in the future to spend ning of the conference, sticking strictly to precautions costs more." billions on aviation and aviation safety. aviation and :flight safety, then turned the He then explained a standard which sug During the panel on Air Traffic Control, meeting over to Cincinnati attorney Carl B. gests compaction of soil on paved runway Byron Hood, chairman of the Ohio Chapter, Rubin, who served as chairman for panels shoulders to a distance one-third the width Air Traffic Control Assn., said the FAA in the on air traffic control, uniform standards for of the runway. This would mean soil compac past three or four years has been "trying to airport certification, airport construction and tion 50 feet wide on either side of a. 150-foot run the ball team without a. bench." He said modernization, flight crew training and all wide paved runway. more air controllers had been hired recently weather :flying and noise abatement proce The cost of "one accident you may have but they need training before they become dures. had already because of the lack of this fea effective. He also said more equipment is Panelists included representatives !,rom the ture would pay for this (compaction) at needed. Federal Aviation Administration, Air Line every airport in the state of Ohio. You spend Capt. Joseph H. Bartling, of the Air Line Pilots Association, City of Cincinnati, Greater it in destruction of the airplane, in loss of Pilots Assn., said pilots want an electronic Cincinnati Airport, Flight Safety Founda income from that airplane, in litigation. Why collision avoidance system installed in planes, tion, Aircraft Owners and Pilots Association not spend that money for something to pre leaving this phase of air safety up to the and Air Traffic Contr-ol Association. vent accidents?" he said. pilots. It was explained the electronic sys The basic needs, as revealed by the panel He was referring to the Nov. 8 crash in tem gives pilots on a collision course with ists, are familiar ones--more people to oper which a TWA Boeing 707 slid off the west another plane positive instructions such as ate more and better equipment at better air end of the east-west runway at the airport. telling one to turn right, the other left. ports, all paid for by more money. February 7, 1968 EXTENSIONS OF REMARKS 2591 Maj. Gen. Joseph D. Galdera, USAF (Ret.), the. subject "World Peace Through Law," us spent many hours explaining the nature president of Flight Safety Foundation, Fecently given_by Judge Philip M. New and extent of the program, the program not termed the present air traffic control system.. man, of Los Angeles. only has been endorsed and approved by the which is under the jurisdiotion of the FAA, conservative American Bar Association, but it totally inadequate to handle the present, In emphasizing the vital importance has become its strongest backer. At every and future needs of aviation. of equal justice for all as the key to meeting that I have attended in Washing Byron Hood, chairman of the Ohio Area p'eace, both here at home, as well as ton, the past and present president of the Chapter, Air Traffic Control Association, and. throughout the world, Judge Newman A.B.A. have been present and very active in control to,wer operrutor at Greater Cincin stresses. the need to continually reex the furtherance of the program. nati Airport, sa.id the big problem in air traf amine our own systems of administration The bar associations of many states~ in fic control is the small number of trained of justice· to assure that this worthy goal cluding the State Bar of California., have people available. He said the FAA simply is, sponsored legal assistance offices, applied for hasn't done much hiring in past years, and in fact, being achieved. and received grants from the Office of Eco that now control towers must operate with As a member of the National Advisory nomic Opportunity and are supervising their "no bench." Committee for the Federal Office of Eco operation in many neighborhoods where the Hood also said a computer assistance sys nomic Opportunity's legal services pro poor cannot afford the necessity, nor the tem for airport control radar is needed, and gram, Judge Newman illustrates how luxury, of the services of a lawyer. The pro tha.t the- FAA has been very remiss in pro this program, with the active support of gram has benefited the legal profession in viding such equipment. the American Bar Association and bar as that it has removed the burden of handling Thomas Basnight, director of regulatory sociations in many States, including the charity cases, and also making the public matters for the Air Line Pilots Association, aware of their rights and channeling clients disagreed with Hood, arguing that the need State bar of California, is making a sig who do not qualify financially for the free is not for more manpower on the ground, nificant contribution toward realizing legal services to the practicing attorney but for utilization of space age technology the objective of equal justice before the through the referral systems of the bar as and placing the decision-making function law for every citizen, regardless of finan sociations. The neighborhood legal offices do for collision avoidance "in the cockpit" with cial ability to afford the services of a not accept cases that "generate" a fee, such the pilot. lawYer. as personal injury cases, workmen compen "Yeah, but we still get blamed for crashes,:• By demonstrating that the legal serv-· sation claims etc. The client that is accepted countered Hood. ices program is in the highest traditions must be within the minimum standar.ds and Robert Monroe, representing Aircraft guidelines as to income and assets. I consider Owners and Pilots Association, said a new of our system of jurisprudence, Judge this contribution by the legal profession very method for controlling air traffic must be Newman outlines brie:fly the steady pro significant towards equal justice and as. I found, but added': When there is such a good gression from the signing of the famous. said before, towards tranqu11ity. economic justification, why use the safety Magna Carta, to the adoption of the U.S. Let us examine the state of the law, the argument?" Constitution, to our present nationwide administration of justice, in the criminal law He said more people die from therapeutic effort to provide each and every citizen field. Much has been said and written. about accidents in doctors• offices than in airplane the full protection of our laws. the developments. in the application of con accidents. It is. this continuing effort to improve stitutional rights to persons accused of the On the subject of airport modernization commission of a crime. The Magna Carta, and construction, Capt. John McDonald the administration of justice in America that famous document that the English peo called for certification of airports and air that will aid the cause of an orderly, law ple forced King John to approve in 1215, haS' port managers by the FAA. He said that some ful and peaceful society in this country, been called "the cornerstone of English airports do not even require fire fighting while contributing greatly to our ulti liberty". It marked the beginning of democ equipment, and stated that many airport mate goal of peace throughout the world. racy in England. It was the first document managers are qualified for the job only in Judge Newman's address follows: that promised certain rights to all tree men. that they are the brothers of the wives of Since 1789 the people in the United States may.ors. WORLD PEACE THROUGH LAW have been guaranteed certain rights by the Byron Dickey, manager of Greater Cin (By Judge Phllip M. Newman) Constitution. The states have in turn adopted cinnati Airport, replied that he was not the A few weeks ago when I was in Washington, their own constitutions. The right to coun brother of the wife of any mayor, but that where I go four times a year, as a member of sel, the protections against unreasonable he knows that most airports can't modern the National Advisory Committee of the·Legal search and seizure and self-incrimination, ize properly within the current. budget for Services Program, which is part of the Waz the right to a speedy and public trial, right Congress. on Poverty, I saw a poster in one of the gov to reasonable bail have been guaranteed by McDonald said air safety does not cost ernment offices that I visited. This poster ap the "Bi11 of Rights" which were the first money. "Lack of air safety costs money," he peared to be a formula and it reminded me of ten amendments which have been in force stated. my commitment to address this group. I since 1791. He cited the cost that one airplane crash copied the formula for this purpose. The observation and preservation of these imposes on insurance companies and the The formula to which I refer is: Truth, rights will be conducive to equal justice owners of the arrcraft involved, saying that plus justice, plus freedom, plus love, equal which in, turn will result in tranquUity. If this cost would more than pay for air safety peace. This is attributed to the late Pope the philosophy· that orig:nated with the equipment at an airport. John. • Magna Carta. and was furthered by the And so the meeting went, through all the Eloquent as the formula is, it is my belief United States Constitution would prevall in various panel topics, always arriving at the that justice is perhaps the greatest of these every community it would by necessity spread same question: Where does the estimated $5 virtues, and includes the other virtues. It over the world. billion needed for air safety during the next therefore, has to follow that with true justice In. the Los Angeles area, I can say without 12 years come from? there is peace. fear of contradiction and with pride, we If the aviation industry is to have ade You have undoubtedly heard the rather enjoy· one of the best systems of administra quate airports, satisfactory noise abatement, trite saying that charity begins at home, but tion of justice in the world. This is not just improved simulators for training-, closerscru I must add that this is even truer when we my personal opinion. The Christian Science tinization and certification by the FAA, so speak of justice. Justice that prevails in the Monitor recently conducted a national study phisticated new control equipment, improved local community will be reflected and will and survey of the courts of the United States, instrumentation for aircraft--in short, air prevail in the greater areas of the states, the and it was their conclusion that this County safety-who's going to pay for it? nation, and the world. Many of the present had the most efficient and effective court Nobody at the conference volunteered' to and past conflicts have had their seeds sown organization. The poor are furnished legal pick up the check. in injustice. This may be social, political or representation in all stages of criminal pro economic injustice. ceedings, in felonies and misdemeanors, in Justice that is not equal is not justice. We accordance with the principles of the Con as lawyers and judges, and you as associates stitution. The accused are promptly arraigned World Peace- Through Law of our profession, have to examine and re and have a reasonable bail set, and brought examine our own systems of administratiop. to trial in a speedy and public trial. By ob of justice in order that we can contribute in serving and preserving these rights, the legal HON .. EDWARD R. ROYBAL our own way towards the goal of equal jus profession and the judiciary are making their OF Ci\LIFOBNIA tice. contribution to an orderly, lawful and peace As I mentioned in the beginning, I have ful socie:ty. IN THE HOUSE OF REPRESENTATIVEs· been connected with the Legal Services Pro One additional factor which must be em Wednesday, February 7, 1968 gram since my appointment by Sargent phasized and furthered is respect for law and Shriver in March of 1966. This program has order. Unfortunately today, there is a dis Mr. ROYBAL. Mr~ Speaker, I would been misinterpreted and misunderstood. The regard for the rights of others and an ignor like to take this opportunity· to introduce immediate. reaction of the legal profession tp ing of the supremacy of the law. It is true in the CONGRESSIONAL RECORD the text Of the introduction of the program was the cry that law should be a. means to an end, and a most thought-provoking address on of "Socialization of the Law." After many of not an end in itseU, but without respect for 2592 EXTENSIONS OF REMARKS February 7, 1968 the law, civilization cannot endure. The in the businessman of breadth and imagination, ess. The payoff in trade accrues to those who dividual who expresses his dissent and pro it opens new horizons. For the self-satisfied carry through to the market. tests unlawfully, the large business concerns and the stand-patters, it poses a peril to Japan illustrates the point. Japanese in who 111egally conspire to stifle competition markets and customers which can no longer dustry spends relatively little on basic re and to establish monopolies, the taxpayer be taken for granted. For the lawyer, it calls search.5 It adapts and builds upon the re who defrauds his government, the person for adaptation and change at a rate fast sults of foreign research and development, who sees a victim of a crime and turns away enough to foster the new yet moderate both through the purchase of technical not wanting to get involved, all this con enough to preserve a responsible measure of know-how and through production by for tributes to the breakdown of law and order, stability and respect for the virtues of values eign-owned subsidiaries. For example, the and must be avoided and eliminated, if we which have endured the tests of experience. United States, the original source of tran are to make our contribution to world peace The dynamic tradition of America wel sistor technology, sold $10 million worth of through law. comes the challenge of technology. Four of radios in world markets in 1966 but bought its aspects bear directly upon transnational $94 million in transistor radios from Japan business and, hence, upon the lawyer with alone.0 ellents dealing across nationa! lines: ( 1) the Some people say that when a nation runs "Transnational Transactions, Technology impact on trade; (2) the psychological-polit a deficit in its technical balance of pay ical-practical imbroglio it creates between ments-meaning royalties, licensing fees, and and the Law: An Analysis of Current the United States and Europe; (3) the other payments for technical know-how-it promise it can hold for the economic prob suffers both economic and trade disadvan Trends," by Hon. Lawrence C. Mc lems of the less developed world; and (4) tages as against nations with technical pay Quade, Assistant Secretary for Do the legal and institutional framework needed ments surpluses. This type of simple analysis to foster more effective use of technology is faulty because ~t overlooks the compensat mestic and International Business, U.S. transnationally. · ing benefits of resulting import savings and Department of Commerce I. INTERNATIONAL TRADE export gains. These are often difficult to First, science and technology keep chang quantify but if measured and put into the ing the pattern and relative progress in in payments vs. receipts equation the balance HON. JOHN BRADEMAS ternational trade. The impact of technology of advantage may be found to be with the receiver of the technology rather than the OF INDIANA on the pattern and progress of international seller.7 IN THE HOUSE OF REPRESENTATIVES trade has never been stronger than in this new era of astronautics, electronics, and nu Japan, with a continuing deficit in its Wednesday, February 7, 1968 cleonics. technical balance of payments, is enjoying Obviously this is true in the case of faster a rate of economic growth that substantially Mr. BRADEMAS. Mr. Speaker, I be 8 and better communications and transport. exceeds that of the United States. The fact lieve that many members of Congress, Containerization, refrigeration, pipelines that it has succeded in becoming one of the especially lawYers and more especially and other new transport technques keep world's leading trading nations appears to those interested in our international eco altering practicalities, costs, and trade disprove the assumption that a technical nomic relationships, will find most useful patterns--opening up new opportunities on payments deficit must be a disadvantageous a recent article written by the Honorable a worldwide basis for the businessman in in factor in international commerce. Japan's Lawrence C. McQuade, the distinguished land areas like Denver-and threatening experience indicates that it is not necessary those who fall to keep up with the times. for a country to spend large sums on basic Assistant Secretary for Domestic and In research in order to succeed in export. It can ternational Business of the U.S. Depart Science and technology, of course, contin ually alter the kind and quality of goods attain excellent results simply by buying ment of Commerce. and services which enter into international foreign technology-possibly at less expense. Mr. McQuade's article, which was pub markets. Close to half of the dollar volume Moreover, it demonstrates that follow-up ef lished in the summer 1967 issue of the of our expanding United States exports, for forts by management are essential to exploit Denver Law Journal, a publication of the example, now consists of such "high tech fully the commercial advantages of new nology" products as machinery, transport scientific and technological developments. University of Denver College of Law, fol For this genius we look to the American lows: equipment, and chemicals :~_an made by highly skllled, highly paid American work businessman to pursue world markets with TaANSNATIONAL TaANSACTIONS, TECHNOLOGY ers. The dynamics of this process have pro the same zest and intelligence he displays AND THE LAW: AN ANALYSIS OF CURRENT found effects upon our trade balance and athome. · TaENDS our trade pattern. n. POLITICS, TECHNOLOGY TRADE, AND (By Lawrence C. McQuade, Assistant Secre For those in and out of Government con INVESTMENT tary for Domestic and International Busi cerned with the health of the nation's bal The second Lssue relevant to transnational ness, U.S. Department of Commerce.) ance of payments, this dynamic has impor business operations raised by technology is (NoTE.-Mr. McQuade's article is an elabo- tant implications.2 As a practical matter, the political and psychological as well as eco ration of a speech he delivered at the Western world-wide involvements of the United nomic. Resting on the alleged superiority of Regional Conference on Transnational Trans States mean that we need, over a period of the United States in matters of science and actions, held at the University of Denver Law time, a trade surplus on the order of $5 bil technology, this political phenomenon is ex Center in April 1967. In it he discusses the lion or more in order to pay for recurrent pressed in graphic terms, "Brain Drain" and outlays for the national security, overseas impact of technological change on society. "Technological Gap." 9 These terms lend He examines four aspects of technology which travel by our citizens, and the like. But, our emotion rather than clarity to the genuine bear directly on transnational business, and balance of trade has met this objective in feeling that the United States somehow has suggests that the need for a legal and instLtu only two of the last five years. In addition, an unfair advantage over others simply be tional framework which will promote more the United States share of the total value of cause of technological excellence. effective transnational use of technology free world trade has been declining, from poses a challenge to the lawyer to make full 22.5 percent in 1954 to 19 percent in 1966.3 Recently a British profesor called upon and beneficial use of his creative talents.) the United States to prohibit American com Technological innovations and applica panies from recruiting skilled manpower "The discovery of phlogiston is but a first tions support our broad effort to expand our abroad. The numbers of European research step toward an endless march of scientific exports and reduce the deficit in our bal ers, scientists and engineers leaving for progress and social turmoil." ance of international payments. In 1965, the greener American pastures are counted with -Axophinius, circa fifth century B.C. United States earned an estimated $650 mil alarm and it is noted that fewer American lion from other countries in royalty pay INTRODUCTION scientists have gone to Europe to do re ments fdr technical know-how, patents, and The dynamics of the law reflect--some search. The net loss is regarded as further other intangible property licensed abroad evidence that the "gap" is getting wider, times too slowly-the dynamics of society. about 4Yz times the $144 million we paid Nowhere does this idea manifest itself more and "if allowed to continue, jeopardizes Eu others.' rope's economic future." 1° For example, clearly than in the era of science and tech Furthermore, technology, by raising pro nology. The iconoclasm of science at its best Amintore Fanfani, Italy's Foreign Minister, puts society on its mettle. American business ductivity and lowering costs per unit of pro has called for a ten-year cooperative plan duction, helps American industry compete for technological development to help re men, at least, accept the challenge with skill more effectively in world markets. Produc and pleasure. They pour forth ingenuity, or dress the alleged technological imbalance tion efilciency contributes to our high ex between American and European industry.u ganization, and energy to move science's by ports of such products as aircraft, comput products into the stream of our economy. In ers and pharmaceuticals. To add to the confusion, there are facts this process of creativity, the law has a re stemming from the size and effectiveness of sponsibility to facilitate these economic and Technology is one of the elements of com many new American investments in Europe social processes by providing a degree of order petitive strength in world markets. But the which are disconcerting to many Europeans. within which creativity can prevail over developer of the technology may or may not For example, the total sales of General Mo confusion. win the prizes. Research and development tors has exceeded the Gross Nationa! Prod Out of technology-that vigorous offspring comprise only a part of the innovative proc- uct of Belgium.12 In Germany, Americans of science-flows an impluse to change and own over 40 percent of the petroleum indus innovation in commerce and industry. For Footnotes at end of article. try. The preeminence of the United States in February 7, 1968 EXTENSIONS OF REMARKS 2593 computers is but feebly challenged so far by _petition from European businessmen in research and development in military, space, any other country.13 United States owned -or many world markets. Neither does it explain atomic energy, and other fields has been controlled companies produce over one-third why the United Kingdom economy, with rel made accessible to anyone in the United of Europe's auto sales,14 yet our total invest atively higher research and development States or abroad. Unless the . information is ment in Western Europe is modest,l5 and we expenditures than other European countries, specifically related to our national security account for only a minor percentage of total has advanced less rapidly than its conti- or has been developed by industrial con business in any single European country. To . nental colleagues. Europe does not in fact tractors on their own, it can be purchased at compound things further, American com suffer any great dearth of technological in nominal cost from the Commerce Depart panies enter into overseas markets with the novation and know-how. Some European ment's Clearing House for Federal Scientific same vigor they use at home. In some indus . firms enjoy large foreign currency earnings and Technical Information. The Clearing tries, the arrival of energetic, iconoclastic from the United States and elsewhere for House was set up expressly to make govern American management techniques into Eu the use of their technological know-how and ment research and development results avail rope has rudely jolted the comfortable car services.21 If there is a lag, it lies in the . able as widely as possible. tels with their "breakfast-table agreements" application rather than in the possession of However, even a technology-sharing pro and old-fashioned, gentlemanly courtesies technology. gram cannot really solve Europe's problems among competitors. Such disparities as may exist between if it turns out to be basically non-techno All of these various ingredients somehow European and American industry cannot be logical. If entrepreneurial, oapitaliza.tion, or relate to each other. While still a murky properly considered except in the context other dimculties are involved, only the Euro phenomenon and related to more than tech of other differences between Europe and pean nations themselves may be able to take nology, a European attitude of concern to United States: for example, in (1) amount corrective action. There are clear signs that ward United States firms and toward the of capital·investment per worker; (2) degree the real nature of the problem is understood United States exists. Both American busi of mechanization; (3) availability of re by many Europeans, but their efforts tend nessmen and the American Government need sources; (4) size of business enterprises; (5) to be overlooked in the vain hunt for facile to worry about it. Europeans ascribe the so productivity; (6) development of mass mar solutions.23 It is a question of practicality called "gap" to the . disruption of World kets; (7 size of the educational base; and not of willingness or unwillingness to co War II, the postwar "brain drain," and the (8) work habits and attitudes. operate. Our most useful contribution in this advanta,ges accruing to United States tech Industrial management policies and ini instance may be to help identify the real nological progress through our large mass tiative in using known-how as factors in disparities and their fundamental causes, so market, our extensive resources, and-espe technological progress may well be the cru that it will be possible to determine what cially--substantial United States Govern_ cial factors, as the Japanese example sug kind of a.ction is most appropriate. ment support of military and space research gests. A speaker from abroad broached this III. GROWTH OF LESS DEVELOPED COUNTRIES view at the Symposium on Technology and and development. They say they cannot The third major transnational business maintain their economic growth rate in the World Trade, held at the National Bureau of future if the "technological gap" continues Standards last November. He said: aspect of science and technology is its im or widens. The Europeans obviously are con "To my mind there is ·a gap, but I'm not pact upon the economic growth prospects cerned, and the issues they raise are of con certain that the reason the gap is there is of the less developed countries.24 It is quickly cern to us and warrant our careful study to be found in the technological field. I be apparent that the greatest "gap" in tech and attention. lieve that the fundamental reason for the nology and its dimensions is that between the industrialized countries of the world on As a startihg point, the President has gap is more a question of mentality and at charged Dr. Hornig, his Science Advisor, to titude.... the one hand and the less developed coun head a group within the Government to "Science and technology are -and have been tries on the other. One of our national pol study the real meaning of the so-called present in Europe many years. What we icy objectives is to contribute to the eco "technological gap." Under Secretary of Com would like is the attitude necessary for the nomic growth of these developing nations. merce J. Herbert Hollomon serves on this creation of more big industries with leaders As President Johnson has repeatedly em group. The Organization for Economic Co who know how to make use of science and phasized, we want to help these countries help themselves. One way to do this is to operation and Development (OECD) has technology." 22 also started its own study. Out of these ef help them achieve the technological progress It is reasonable to assume that our current they want and need to advance their eco forts should emerge some facts to supplant studies will uncover some "technological the histrionics currently in vogue and point nomic development, living standar~s, and gaps"-some of which may be in favor of international trade. Sturdy, self-reliant, pro the way to answers as to whether there is an Europe-but I doubt that we will find many, across-the-board "technological gap," as the gressing states contribute to greater stability if any, which can be defined as strictly "tech and security in the world. Their progress Europeans seem to think, or whether there nological." My guess is that the basic dim are various kinds and degrees of technologi , serves our own and other nations' best in culties may be outside the -area of tech terests. It expands the opportunities for cal disparities. The answer certainly does not nology. lie in mere scientific or technological terms.1G mutually profitable trade and investment. As to remedies, some people have advanced What can be done to raise the level of A test based on spending on research and the idea that our Government might engage development--amounting to about 3 percent technology in the less developed countries? in a give-away program of technology. This, As an early objective, create an economic of our GNP-indicates that United States of course, is out of the question. It neglects industry is much more oriented in this environment conducive to innovation. This to take account of the private ownership of means change-and change can be painful. direction than its European competitors. most United States industrial technology -and While the United Kingdom spends a healthy As of today, the kind and amount of tech 2.6 percent of its GNP on research,l7 France fails to come to grips with what probably is nology that can effectively be put to work is spending barely half this amount and one of the basic problems: the limitations vary from country to country, industry to in on effectively and economically transplant dustry, even product to product. The needs, other European countries spend a good deal ing United States technology outside the less.18 The percentage differences seem less objectives, and development stage of each significant, however, if you consider that United States market and resource context. nation must be taken into account. about half of our research and development Except for the results- of government For example, a licensing agreement has expenditures serve military and space pur financed research and development, private been signed in Mexico for float glass produc poses, while Europeans spend relatively little enterprise owns and controls United States tion which will give Mexico a factory that in this fl.eld.10 On the measure of expendi technology. It is often protected by patents is far more modern than some glass plants tures for research and development which but just as often it is unpatented know-how, we have in the United States. The float proc are of direct benefit in upgrading the tech developed and perfected by its owners. The ess for making glass is a capital-intensive, nical level of the industrial sector of the Government could not give it away. high-technology technique that might be economy, we are probably fairly even with On the other hand, we have long cooper completely unsuited to the needs, skills, and the Europeans. There is, of course, some ated with the European nations in many resources of some other countries. Many de spin-off from United States military and fields of activity, including the sharing of veloping countries could benefit much more space research and development as well, but technology: (1) in the OECD; (2) in the ex from technological investment in agriculture. its impact on the economy in this regard is change of scientific and technical informa Indeed, the miracle of progress in American inadvertent and perhaps less than is gen tion through NATO; (3) in close coopera agriculture outstrips our success in industry. erally assumed. Moreover, it is a costly way tion about atomic energy through the Euro This is the forthcoming frontier in the less to introduce new technology into industry.20 pean Atomic Energy Commission (EUR developed countries, which are rapidly be There is no direct correlation between the ATOM); (4) in the European Nuclear Energy coming more, rather than less, dependent on size of such expenditures and rate of eco Agency; ( 5) in the European Space Research non-domestic food supplies. Latin America, nomic growth or trade expansion. Research Organization; and (6) in the European Africa, and Asia exported a net annual aver and development spending obviously cannot Launcher Development Organization. We age of 5 million tons of grain in 1934-1938. explain why many European economies have share peaceful scientific data and techno Today they import some 78 million tons a logical know-how with other nations, includ year. grown faster than our United States econ ing the European countries, through the For some less developed countries, the pur omy in recent years, or why our United United Nations and its specialized organiza chase of technological know-how-through States exporters are encountering stiff com- tions, and through many other international patent royalty and licensing arrangements, groups. joint ventures, and capital investment by the Footnotes at end of article. Furthermore, much government-financed business .firms of other countries-might be 2594 EXTENSIONS OF REMARKS February 7, 1968 the easiest, quickest, and least expensive way lished by the U.N. General Assembly last the President in 1965 to study ways "to to obtain the desired results. Others may December to replace the U.N. Center for In en~;~ure that the patent system will be more simply want to buy the products of foreign dustrial Development. UNIDO is an action effective in serving the public interest.... " 37 technology. Absolute technological equality group. Under its Special Industrial Services Ten leading citizens representing the busi is not essential. From the standpoint of trade Program, it sends trained consultants out to ness, scientific and academic communities expansion, it is not even beneficial. If every less developed countries requesting assistance and the bar served on the Commission to country were as advanced in computer tech on specific problems, such as plant manage gether with representatives of the Secretary nology as the United States, for example, ment and quality control. The U.N. has pro of Commerce, the Secretary of Defense, the there would be little trade in computers. vided such technical assistance in the agri Administrator of the Small Business Admin Technological inequality in the sense of dif cultural and health fields for many years. istration, and the Director of the National fering fields of specialization actually stim Now it is extending its effort into the in Science Foundation. The Report of the Com ulates trade. dustrial area. mission testifies eloquently to the fruitful What is essential is the opportunity to ob UNIDO is also organizing an international ness of interaction between informed busi tain and develop technology. The less devel symposium on industrial development which nessmen, the bar, and members of other oped countries say the technology they des will be the first international meeting of gov disciplines. Based on the practical experi perately need exists in the world, but it is ernments to concentrate on the problems and ence of their companies, the business mem too often available to them at a cost and on prospects of industrial development. The bers were able to delineate lines of approach terms they cannot meet. The technology they three-week symposium, open to all U.N. mem in the interest of simplification and im want is owned largely by private companies, ber nations, will be held in Athens, starting provement of industrial property rights pro so the opportunities for government action November 29, 1967. In March 1968, in New tection which heretofore did not always by the United States and other industrialized Delhi, another U.N. meeting, the second coincide with the preferences and traditions free-enterprise countries are necessarily United Nations Conference on Trade and which mold the pateht lawyer's opinion on limited. Development (UNCTAD), will focus on the these issues. A. Private investment in less developed problems of the less developed countries in Acting Under Secretary of Commerce Hollo countries expanding their exports and obtaining tech mon, urging enactment of the patent pro nological know-how.so posals, pointed out that basic revision of the There is a wide array of ways by which system was essential "for it to serve effec the United States encourages American pri IV. A LAWYER'S MENU: PATENTS, TRADEMARKS, tively to stimulate the development and pub vate investment in the less developed coun STANDARDS lic disclosure of new technology and to pro tries. In addition to the AID program, the A fourth issue is how to enact laws and vide incentives rather than barriers, to Commerce Department sends out trade mis build institutions which will maximize the international trade." as sions to develop business and investment op benefits which science and technology-to a portunities for American industry, circulates great extent through business-can make B. Trademarks trade and investment leads to American available to people. Here is where many of the In the trademark field, we are exploring businessmen, and provides many other busi lawyer's skills come into play.31 the possibility of developing a sound and ness services that contribute to the transfer workable international program that will of American technology to less developed A. Patents provide better protection than is now avail countries. There may be possibilities for ad Variations in patent law and practice from able. We must have adequate protection for ditional action. Last year the National Ex country to country often result in duplica United States trademarks. They are valuable port Expansion Council, which advises the tion of efforts, uncertainties, and unneces export assets.a11 Secretary of Commerce on international sary expenses which impede, if not discourage Th·e most important aspect of the problem business policies and programs, formed an patent protection, thereby delaying the is the number of jurisdictions in which a Action Committee to come up with sugges transfer of technology from one nation to proposed mark must be searched, cleared, tions. Recently the proposals of this Action another.32 and filed. Separate actions in more than 150 Committee on U.S. Trade and Investment in The Convention of Paris for the Protection different jurisdictions are required for Ameri Developing Countries were approved by the of Industrial Property (Paris Union) ,ss of can companies to extend protection of a NEEC and made public.25 which the United States has been a member brand name to the rest of -the world.~ An The Committee suggested, among other since 1887, sets forth the basic rights of international filing procedure, commonly things, that (1) United States firms should patent applicants in the member states, re called the Madrid Arrangement, was estab step up the level and quality of their trade gardless of an applicant's country of origin. lished in 1896 under the Madrid Agreement and investment efforts in the less developed But in today's world trade it is not practical for International Registration of Trademarks, countries. Since 70 percent of the world's to continue to operate on the principle of but the United Sta·tes is not a member of total population lives in less developed areas, territoriality which necessitates separate ap this treaty. The filing system is still operating the Committee considers it short-sighted to plications in each country in order to obtain successfully for 21 countries, principally Eu give them marginal attention. (2) The less adequate protection of those rights. ropean, but a United States trademark owner developed countries themselves should make The United States is participating with can obtain registration under the system new and objective reviews of the unique con other nations and with BIRPI,84 the Secre only if he has a bona fide industrial or com tributions of capital, technology, and skills tariat for the Paris Union, in expanding in mercial establishment--branch or subsidi which business firms from the United States ternational patent cooperation to make it ary-in a member country .u and other industrialized countries can make easier to obtain inadequate patent protection C. Standards to their development objectives. In the light in both domestic and foreign markets. For of these reviews, their governments should example, active steps are being taken to de The American businessman who has been then seek to develop programs which will velop a patent cooperation treaty to provide kept out of a foreign market because his act to minimize barriers and maximize in for a single international filing which could product--quality and performance notwith centives to potential foreign private invest be utilized in lieu of the multiple, duplicate, standing--does not meet foreign standards is ment.28 foreign national filings now required. In ad well aware that standards can be a crucial dition, the United States Patent Otnce is en factor 1n 1ntern·ational trade. Various groups, B. International assistance to less developed gaged in a series of search exchange pro including the Panel on Engineering and countries grams with a number of other countries. Commodity Standards of the Commerce Of all the things the less developed coun Patent Office experts are also studying the Technical Advisory Board (the LaQue Com tries can do to improve their investment international classification system, to see how mittee) ,a have suggested that the role of the climate, one of the most important is to it and the United States system might be Uni.ted sta,tes in international standardiza provide basic legal protection for industrial harmonized. Other programs, developed to tion should be strengthened. Unlike the other property rights.27 To this end, the United assist the United States Patent omce, and industria,lized countries, the United States is International Bureau for the Protection of American attorneys and businessmen, could not represented otficially by government dele Intellectual Property (BIRPI) has developed also benefit their counterparts in other coun gates in international standardization orga a Model Law for Developing Countries on tries. Present activity in the field of docu nizations. This means that we cannot effec Inventions.28 Any less developed country can mentation, which includes plans for im tively encourage the international adoption adopt or adapt this model law. There are proved accessib111ty of published technologi of standards which would be more harmoni options on controversial questions, so each cal data, is one example of such programs. ous with American technological and indus country can frame the law to fit its own In order to provide a sui table basis in our trial practices. Legislation has been proposed needs. BIRPI has also prepared a model domestic patent law for this program of oo improve this situation. An international trademark law, which will soon be published. expanded international patent cooperation, standardization bill pending in Congress Especially adapted to the needs of coun and to modernize the United Sta.tes patent would provide grants to qualified standard tries with basically non-industrialized econ system, President Johnson has proposed a ization organizations for participation in the omies, the model covers trademarks, trade general revision of the patent laws. The international standards process and for in 211 names and unfair competition. Patent Reform Aot of 1967,36 transmitted by formation activities.43 Another new international effort to help the President to the Congress on February 21, the less developed countries is being made 1967, would bring about the first xnajor re D. Institutions through the United Nations Industrial De vision of these laws in more than 130 years. Free trade arrangeinents and common mar velopment Organization (UNIDO), estab- The proposals are based upon the Report kets provide anOither important possible step of the President's Commission on the Patent toward faster use of technology to raise Footnotes at end of article. System.ae The_Commission was appointed by eoonoinic levels. The European Economic February 7, 1968 EXTENSIONS OF REMARKS · 2595

Commund:ty and European Free Trade Area 7 The Secretary-General of the United Na 19 The McGraw-Hill survey of 1966 research in Europe have opened up wider ma.rkets, as tions has initiated a study of the role and and development expenditures revealed that we hope the proposed Latin American Com impact of international licensing arrange federal financing accounted for 54 percent mon Market will do in Latin America. Such ments in the establishment and development or $8.4 billion of the industry total. More markets provide a non-technical but very im of selected industries in various countries. Fi than half the research and. development is portalllt booe·t to technically based agricul nancing of Economic Development: Promo concentrated in two industries: aerospace, ture or industry. Within these markets, much tion of Private Foreign Investment in De and electrical machinery and communica can be done by legal reform to make condi veloping Countries-Summary and Conclu tions. Washington Post, May 12, 1967, at D8, tions suitable for innovation to succeed." sions, U.N. Doc. E/ 4293 (1967). cols. 4-5. See also ORGANIZATION FOR ECONOMIC Attorneys in private practice and lawyers of 8 The percentage increase per year in real COOPERATION AND DEVELOPMENT, THE RE the EEC Commission staff are coping with Gross National Product for 1960-1965 was 4.7 SEARCH AND DEVELOPMENT EFFORT IN WEST antitrust problems as the European Common percent for the United States and 9.7 percent ERN EUROPE, NORTH AMERICA AND THE SOVIET Market moves ahead toward unification of for Japan. For comparative data on other UNION, ch. IV. national laws.46 Common Market lawyers are countries, see Table 29 in CouNcn. OF Eco 20 Sixteen percent of companies surveyed also working toward a Coinmunity-wide cor NOMIC ADVISORS ANN. REP., accompanying by McGraw-Hill answered yes and 84 percent poration law,441 a common patent law and a ECONOMIC REPORT OF THE PRESIDENT, at 171 no when asked if they had been able to common trademar'k law.'7 This year work is (1967). take advantage of new technology resulting being started to harmoni:ze taxes under a 9 A bibliography could be compiled on from federally financed research and devel common system of tax on the value added at these tWO terms alone. ORGANIZATION FOR opment, Washington Post, May 12, 1967, at eaoh stage of manufacture.48 ECONOMIC COOPERATION AND DEVELOPMENT, D8, col. 5. On DeCember 17, 196, the U.N. General As THE RESEARCH AND DEVELOPMENT EFFORT IN 21 Impressive testimony to this effect will sembly acted una..n.imously to establish a WESTERN EuROPE, NORTH AMERICA AND THE be found in advertisements which Imperial United Nations Commission on International SoviET UNION ( 1965), provides an objective Chemical Industries, of the United Kingdom, Trade Law to unify and harmonize divergent evaluation of the pros and cons of tech has been running in the British press. ICI na.tional laws in this important field. The nological disparities. (Summarized in Re says: "We do a brisk trade in brainwaves- Commission will hold its first session in 1968. search and Development: A Major Atlantic the ideas thought up by our backroom boys. Since i.t will be working in fields affecting Issue, EuRoPEAN CoMMUNITY, Mar. 1966, at Last year these earned us £37,000 a day. both national law and trade practices, its 8.) For a good round-up of the relevant is sues see Guccione, That U.S.-European Tech That's what other people paid us for our activities merit close attention by the cor manufacturing know-how and the rights to pora.te bar and lawyers generally.'9 nology Gap: It Stems from Deep European Roots, CHEMICAL ENGINEERING, May 8, 1967, make our products-and they paid most of CONCLUSION at 90; Technology Gap Upsets Europe, N.Y. it in foreign currencies." 72 NEW STATESMAN Changes through the world are vastly en Times, Mar. 12, 1967, at 1, cols. 2 and 4. 311 (Sept. 2, 1966). llll Robert Major, Director of the Royal Nor larging the dimensions of international law 10 U.S.-Europe Gap in Science and Tech and the role of the international lawyer. The nology Widening, EUROPEAN COMMUNITY, wegian Council for Scientlflc and Industrial scientific and business ingenuity of the Nov. 1966, at 10, 11. Research, quoted in NAT'L BUREAU OF STAND United States has helped us achieve our pre 11 N.Y. Times, Oct. 8, 1966, at 12, col. 5. ARDS, Misc. PuB. No. 284. TECHNOLOGY AND eminent position in world trade. We need 12 According to STANDARD AND POOR'S STAND WORLD TRADE: PROCEEDINGS OF A SYMPOSIUM these export earnings to help pay for our ARD CORPORATION DESCRIPTIONS 8657 (1966), 107-08 ( 1967) . broad international responsibilities. Differ General Motors' 1965 sales exceeded $20 bil 23 A realistic diagnosis of the ailment and ences in industrial effectiveness between the lion. The GNP of Belgium was $16.7 billion. a prescription for its cure will be found in United States and Western Europe merit !NT'L FINANCIAL STATISTICS, Mar. 1967, at France, "Technology Gap" Demands "Hard thoughtful analysis so we can better under 54. Choices" of Europe, EuRoPEAN CoMMUNITY, stand some of the resulting political and eco 13 The computer industry has been watched Mar. 1967, at 18. Defense Secretary McNamara nomic implications. Much greater effort needs closely as a sign that "European countries has cited education as a handicap to Euro to be spent toward bringing the benefits of risk being squeezed out of the science-based pean economic growth, pointing out that science to bear upon the econoinic needs of industries.'• The Wilson Community, 222 THE 40% of the United States college-age popula the less developed countries. The legal pro ECONOMIST 197 (Jan. 21, 1967). The Econo tion is attending college, as against 10% in fession has much to contribute toward build mist comments: "It is not surprising that the U.K., 15% in France, and 7% in Germany ing the laws and the institutions within American corporations have virtually taken and Italy. Address by Secretary McNamara, which science and industry can raise produc over the computer industries of Germany, Millsaps College Convocation, Jackson, Mis tivity and better serve our own people and France and Italy, and nearly knocked out the sissippi, Feb. 24, 1967, reported in 33 VITAL the transnational world in which we live. British industry too in 1964." Id. However, SPEECHES 357 ( 1967) . Never before has the international lawyer the explosion in the technological applica uSee generally The Encouragement and had a more challenging opportunity to make· tion of computerization is probably unique. Protection of Investment in Developing full and beneficial use of his creative talents.GO For a summary of the development and tech Countries, 11 INTERNATIONAL AND COMPARA FOOTNOTES nical extension of the electronic computer TIVE LAw QuARTERLY [INT'L & CoMP. L.Q.] see U.S. DEP'T OF LABOR, BULL. No. 1474, TECH 1 SUPP. PuB. No. 3 (1962). In 1966, United States export perform NOLOGICAL TRENDS IN MAJOR AMERICAN IN 211 Contained in Report of the Action Comm. ance was particularly strong in products in DUSTRIES 3 (1966). of the Nat'l Export Expansion Council, Trade corporating advanced engineering features, u Based on· statistics from Automobile and Investment in Developing Countries, such as computers, heating and cooling Manfacturers Association, Inc., Statistical Apr. 3, 1967. equipment and pumps. Shipments of these Dep't, World Motor Vehicle Data 1965, Nov. .26 New studies of the nature of technologi items rose from 20% to 30% over the pre 1966, at 22-64. vious year. The increases might have been cal change, and of the transfer process are 15 The total direct long-term private invest appearing rapidly. The U.N. Conference on even larger had not military requirements ment was $13.9 billion in 1965. See Pizer & and civilian demand in the United States the Application of Science and Technology Cutler, Foreign Investments, 1965-66, SURVEY for the Benefit of the Less Developed Areas market reduced export capabilities. Exports oF CuRRENT Bus., Sept. 1966, at 30. Set Rapid Pace But Trade Surplus Shrinks, produced a valuable series of papers on the INT'L CoM., Feb. 20, 1967, at 50. 1a Guccione sums it up in the following subject from technical specialists, planners 2 The balance of payments dimension is terms: and policy-makers. The United States papers outlined in McQuade, Corporate Voluntary "In essence, it is small markets, small com for the Conference have been published (U.S. Balance of Payments Program and the panies, relatively little availab111ty of risk Government Printing Office 1963) . On the "Lawyer, in PRIVATE INVESTORS ABROAD-STRUC capital, old-fashioned management practices, methodology of technological change, see M. TURES AND SAFEGUARDS 205 (V. Cameron ed. resistance to change on the part of both pro Boretsky, Comparative Progress in Technol 1966). ducers and consumers, basic weaknesses in ogy, Productivity, and Economic Efficiency: 3 Hearings Before the Subcomm. on Anti educational systems when it comes to science U.S.S.R. vs. U.S.A., in NEw DmECTIONS IN THE trust and Monopoly, 89th Cong., 2d Sess., pt. and technology, and deb111tating anti-trust SOviET EcoNOMY, studies prepared for the 1, at 59. and fiscal policies that are the reasons for an JOINT ECONOMIC COMM., 89th Cong., 2d 8ess. 4 See Travaglini, Licensing U.S. Know-How unhappy European state of affairs. The tech (1966). Abroad Is Increasing, INT'L CoM., July 25, nology gap is merely a symptom of it." Z~ The Role of Patents in the Transfer of 1966, at 2; reprinted in U.S. DEP'T OF CoM Guccione, supra note 9, at 92. Technology to Developing Countries, U.N. MERCE, FOREIGN BUSINESS PRACTICES at 26 17 In 1964-65 Britain. spent £756.6 million Doc. E/3861/Rev. 1 (1964). · (Apr. 1967). ($2,118.5 million) or 2.6 percent of the GNP .'18 UNITED . INTERNATIONAL BUREAUX FOR THE 5 $10.6 million in 1964, which represents on research and development. CouNcn. FOR PROTECTION OF INTELLECTUAL PROPERTY, 1.7% of national income. See The Japan De SCIENTIFIC POLICY, REPORT ON SCIENCE POLICY, BIRPI PuB. No. 801(E), MODEL LAW FOR DE velopment Bank, Facts and Figures on the CMND. No. 3007, HMSO (1966). VELOPING COUNTRIES ON INVENTIONS (1965). J ap anese Economy, 1966, at 167. 18 For detailed consideration of comparative 29 See Offner, Draft Model Law for Devel 6 U.S. BUREAU OF THE CENSUS, U.S. IMPORTS expenditures for research and development, oping Countries on Marks, Trade Names, In OF MERCHANDISE FOR CONSUMPTION, REP. FT see Quinn, Technological Competition: Eu dications of Source, ancL Unfair Competi 125, at 159 (Dec. 1966); (U.S. EXPORTS, REP. rope vs. U.S., HARV. Bus. REV., July-Aug. 1966, tion--An Appraisal, 56 THE TRADEMARK REP. FT 410, at 398-99 (Dec. 1966) . at 113. 831 (Nov. 1966). 2596 EXTENSIONS OF· REMARKS February 7, 1968 30 A general statement on the problems and 46 See Gaudet, The Common Market and the Discrimination Against Taxpayers some possible solutions in this area is pre Law, INFORMATION SERVICE OF THE EUROPEAN sented in the U.N. report preparatory to the COMMUNITIES, COMMUNITY TOPICS No.4 (re first UNCTAD Conference, Towards a New printed from ANNALES DE DROIT ET DE SCIEN HON. JOHN R. RARICK CES PoLITIQUES, Tome XVI, No. 2, Brussels, Trade Policy for Development, U.N. Doc. _ OF LOUISIANA - E/CONF. /46/3 {1964). 1961; Grisoll, The Impact of the European 31 For a study of the innova t1 ve process and Economic Community on the Movement of IN THE HOUSE OF REPRESENTATIVES the legal and other circumstances which the Unification of Law, 26 LAw & CoNTEMP, Wednesday, February 7, 1968 foster invention and Innovation, see DEP'T o:r PROB. 418 ( 1961) . COMMERCE, TECHNOLOGICAL IN_NOVATION: ITS 46 INTERNATIONAL LAW ASSOCIATION, REPORT Mr. RARICK. Mr. Speaker, the ines EN-viRoNMENT AND MANAGE;MENT (1967) {re OJ' THE 45TH CONFERENCE at 43 (1952); Con capable conclusion that our present tax ferred to as the "Charpie Report" after the ard, Corporate Fusion in the Common Mar program gives $800 per year to keep il name of Robert A. Charpie, Chairman of the ket, 14 AM. J. CoMP. L. 573 (1965-1966); legitimate children but allows only $600 Panel, an advisory committee of private citi Thompson, The Project for a Commercial per legitimate child as a tax deduction zens reporting to the Secretary of Com Company of European Type, 10 INT'L & CoMP. merce). L.Q. 851 (1961); Legal Disparities Obstruct is but o-ne of the inequities of our great 32 The importance of patent policy In over Intra-Community Mergers, EUROPEAN CoM centralized government. ail corporate planning is described in Ship MUNITY, June 1966, at 6: Fligler Multination I recently introduced H.R. 14676 to man, International Patent Planning, HARV. al Public Enterprises, International Bank for contribute in the battle against poverty Bus. REV., Mar.-Apr. 1967, at 56. Reconstruction and Development, June 1967. by assisting poor taxpayers through an 33 Convention for the Protection of Indus Continental European literature on this increase in the tax deduction per de trial Property, Mar. 20, 1883, 25 Stat. 1372 SUbject is extensive. E.g., EUROPEAN ECONOMIC pendent from $600 to $1,200 per year. {1887-1889), T.S. No. 3'79; revised at Lisbon, COMMUNITY, SUPP. BULL. No. 9/lQ-1966, Editor G. Norman David of the Den Oct. 31, 1958 [1962] 1 U.S.T. 1, T.I.A.S. No. MEMORANDUM BY THE COMMISSION OJ' THE ham Springs, La., News recently offered 4931. EUROPEAN ECONOMIC COMMUNITY ON THE Es 81 Bureaux Internationaux Reunis pour la TABLISHMENT OF EUROPEAN COMPANIES; WANG, several additional arguments to over Protection de la Propriete Intellectuelle, DIE EUROPAISCHE AKTIENGESELLSCHAFT IN DER come the lopsided discrimination against Geneva, Switzerland, the administering body E.W.G. (1964); Dorat des Monts, Vers un droit parents and taxpayers. of several industrial property and copyright europeen des societes commerciales, 39 JuRIS Mr. Speaker, I include the clipping conventions. CLASSEUR PERIODIQUE, LA SEMAINE J'OUSDIQUE from the Denham Springs News and 115 S. 1042, H.R. 5924, H.R. 6043, 90th Cong., 1-1896 (Mar. 3, 1965); Fikentscher & Gross H.R. 14676 following my remarks: 1st Sess. {1967). feld, The Proposed Directive on Company DISCRIMINATION AGAINST TAXPAYERS aa PRESIDENT'S CoMM'N ON THE PATENT SYS Law, 2 CoMMON MARKET L. REV. 259 (1964); TEM REPORT, To PROMOTE THE PROGRESS OF .•• Lecourt & Chevallier, Comment progresse le (By G. Norman David) USEFUL ARTS IN AN AGE OP' ExPLODING TECH rapprochment des legislations europeenes?, I was shown the following discourse in . NOLOGY {1966). See O'Brien, An Appraisal of RECUEIL DALLOZ-CHRONIQUE 24 (June 30, of all things ••• the Virginia Journal of the Report of the Presid.ent's Commission on 1965); Patry, La Societe Anonyme de Type Education. the Patent System, 49 J. OF THE PATENT OF E.uropeen, ETUDES DE DROIT COMMERCIAL EN They said they got it from the North Caro FICE Soc'Y 139 {1967), which includes the L'HdNNEUR DE PAUL CARRY 29 (1964); Rault, lina Education magazine, who, in turn, didn't text of the legislation proposed and a sec Pour Za creation d'une societe commerciale know where it originated •.• tional analysis. de type europeen, 13 REVUE TRI:MESTRIELLE DE But, read it •.. and see 1:f you don't think a1 Exec. Order No. 11,215, 3 C.F.R. 123-25 DROIT COMMERCIAL 741 (1960); Sanders, Vers it touches on some real good questions: {Supp. 1965). une Societe Anonyme Europeene? REVISTA "Hey, Uncle, how much does it cost to rear as Statement of J. Herbert Hollomon, Act DELLE SoCIETA 1163 (1959); Thibierge, Le a child? tlng Under Secretary of Commerce, Hear Statut Des Societes Etrangeres, LE STATUT DE "You allow us taxpaying parents only $600 ings on H.R. 5924 before Subcomm. No. 3, L'ETRANGER ET LE MARCHE CoMMUN, 57TH a year to feed, clothe, house and train a House Comm. on the Judiciary, 90th Cong., CONGRESS OF FRENCH NOTARIES, Tours (1959); youngster. In your Federal Job Corps you 1st Sess. (1967). Vasseur, A Company of European Type, 1964 · spent $7,000 a year! This is quite a differ llll See E. OFFNER, INTERNATIONAL TRADEMARK JOURNAL OF BUSINESS LAW 358 and 1965 id.., ence! PRoTECTION (1965); Lightman, Trademarks 73; Vasseur, Quelques Arguments pour une "Now, which is the correct figure? Either as "Silent Salesman," INT'L Cow., Oct. 28, Societe de Type Europeen, 83 REvuE DEs So we're allowing too much or you're not allow 1963, at 2. CIETES 18 ( 1965) ; Willemetz, Une Societe de ing us enough . .o See St. Landau, The Handling of Trade Type Europeen, 21 REVUE Du M.ARCHE CoM "You allo-w taxpaying parents a $600 deduc marks Abroad by United States Companies, MUN 38 ( 1960) • tion for the care and feeding of each child. 56 THE TRADEMARK REP. 207 (Apr. 1966). " 1 A summary analysis of the proposed "Yet under the Cuban refugee program 41 Consideration is being given to United European Patent Law is set out in 45 J. OF you assume minimum upkeep requires $1,200 States adherence. The positions for and THE PATENT OFFICE SOC'Y No.3 (Mar. 1963). a year-and if the Cuban boy or girl is at against adherence are propounded in 56 THE See also Restrictive Practices, Patents, Trade tending school-an extra $1,000 a year. TRADEMARK REP. No. 5 (May 1966). (See es Marks and Unfair Competition in the Com "How come you shortchange the home pecially Allen, A Report on the Madrid Agree mon Market, 11 INT'L & COMP. L.Q., SUPP. folks? ment, at 290, for a discussion of the advan PUB. No.4, at 153 (1962). ''In the austere environs of a Federal prison tages of adherence to American industry, the 48 Community Draws Nearer to Economic you have discovered that it costs-to main effect on domestic trademark practice, and Unity: EEC "Value Added" Tax System, First tain one person, with no frills, no luxuries, cost implications; and Ladas, The Madrid. Medium-Term Economic Program Approved, and no borrowing Dad's car--$2,300 a year. Agreement for the International Registration EuRoPEAN CoMMUNITY, Mar. 1967, at 30. "By what rule of thumb do you estimate oj Trademarks and the United States, at 346, • Stravropoulos, The United Nations Com that Mom and Dad can do it for one-fourth for a position against adherence.) mission on International Trade Law, 4 U.N. that amount? 42 The major recommendation of the indus Monthly Chronicle 89 (No. 4, 1967) . "Under Social Security you will pay $168 try group was to establish a new federally a month to maintain the elderly. What makes liO Cf. Graupner, Some Recent Aspects of the chartered Institute to coordinate voluntary Recognition and Enforcement of Foreign you think we can maintain our young'uns standardization activities in the United Judgments in Western Europe, 12 INT'L & on $50 a month? States. The report of the panel ("The La CoMP. L .Q. ( 1963) ; Nadelroann, Assumption "And, Uncle, your VISTA program (Volun Que Report") is available from the Clearing of Bankruptcy Jurisdiction Over Non-Resi teers in Service to America) spent $3.1 mil house for Federal Scientific and Technical dents, 41 TUL. L. REV. 75 (1966); and Stein, lion last year to train only 202 trainees. That Information, U.S. Dep't o:f Commerce, Spring Assimilation of National Laws as a Function indicates that the cost of maintaining and field, Virginia 22151 (Rep. Nos. PB 166811 training one youth :for one year ls more tha n of European Integration, 58 AM. J. INT'L L. and PB 166812). 1 (1964). The subject-matter of the fore $15,000. "Then how come we taxpaying parents •a S. 997, 90th Cong., 1st Sess. (1967). . going articles illustrates some of the prob "Among other innovations, the Central lems and challenges. Widening U .S. partici get an exemption of only $600 to maintain American states, for example, have entered pation in unification-of-law activities, re and train one youth for the year? into a treaty permitting "integration indus sulting from U.S. membership (since 1963) "Or let's see how much you spent upkeep ing one youngster in military uniform. tries" and making valuable privileges avail in the Hague Conference on Private Inter able to companies operating in the area. Con House, $55.10 a month. Food, $30.27 a month. national Law and the Internatioal (Rome) Clothing upkeep, $4.20 a month. That comes v:enio sobre el Regimen de Industrias Centro Institute for the Unification of Private Law, ~mericanas de Integracion, signed by Guate to $1,074.84 a year. Are -:;hey not cheaper mala, El Salvador, Honduras, Nicaragua and is a major development which will have by the dozen? Costa Rica, June 10, 1958; Protocol, Jan. 29, growing significance to businessmen and "How in the world do you expect parents 1963; INSTITUTO INTERAMERICANO DE ESTUDIOS lawyers concerned with interna.tional private to provide all these things, plus clothes, JURIDICOS INTERNACIONALES, INSTRUMENTOS law and practices. For materials on the .range recreation, books, meqiclne--for $600 a year? RELATivOS A LA INTEGRACION EcONOMICA EN of problems see the symposium, Unification With your figures, you adroit it _can't be AMERICA LATINA 57 (1964). - of Law, 30 LAW & CoNTEMP. PRoB. 231 (1965). done. February 7, 1968 EXTENSIONS OF REMARKS 2597 "Is it possible, Uncle, that you expect us (c) -Section 4(a) of such Code (relating to delegate, which shall be in lieu of the tax parents to manage more efilciently than you, n:umber of exemptions) is amended by strik required to be deducted and withheld under because -we usually do. ing out "~he tables in section 3" and' insert subsection (a). The tables prescribed under "With all our expenses, we American in _ing in lieu thereof "the tables ln section 3 this subparagraph shall correspond in form dividuals have more than enough -savings to (a) and.3(b) and the tables prescribed under -to the wage bracket withholding tables in offset our debts; you don't. section 3 (c) ". subparagraph (B) and shall provide for "With all our prosperity, you Uncle, are (d) Paragraphs (2) and (3) of section 4(c) amounts of tax in the .various wage brackets still spending per year $2.9 billion more for of such Code (relating to husband or wife approximately equal to the amounts which relief than during the depths of the depres filing separate return) are amended to read would be determined if the deductions were sion. So it may be that you are uncommonly as follows: made under subsection (a) . extravagant. "(2) Except as otherwise provided in this "(B) At the election of the employer with "But however we try to rationalize and subsection in the case of a husband or wife respect to any employee, the employer shall explain you, it is st111 a hurtful affront when filing a separate return, the tax imposed by deduct and withhold upon the wages paid you allow us hard working dues-paying home section 3 shall be- to such employee before January 1, 1968, a folks only $600 a year to rear a legitimate " (A) for t aJ(able years beginning in 1964, tax determined in accordance with the fol child-while you, under ADC, will pay more the lesser of the tax shown in Table IV or lowing tables, which shall be in lieu of the than $800 a year to upkeep an illegitimate Table V of section 3 (a) , tax required to be deducted and withheld one. There's something rotten here--and "(B) for taxable years beginning in 1965, under subsection (a):". we're not in Denmark!" 1966, or 1967 the lesser of the tax shown in (c) Section 3402(m) (1) of such Code (re Table IV or Table V of section 3 (b), and lating to withholding allowances based on H.R. 14676 "(C) for taxable years beginning after De itemized deductions) is amended by striking A b111 to amend the Internal Revenue Code cember 31, 1967, the lesser of the taxes shown out "$700" and inserting in lieu thereof of 1954 to increase from $600 to $1,200 the ·in the corresponding tables prescribed under "$1,300". personal income tax exemptions of a tax section 3 (c). SEc. 4. The amendments made by the first payer (including the exemption for a "(3) Table V of section 3(a), Table V of two sections of this Act shall apply only with spouse, the exemptions for a dependent, section 3 (b), and the corresponding table respect to taxable years beginning after Dec and the additional exemptions for old age prescribed under section 3(e) shall not apply ember 31, 1967. The amendments made by and blindness) in the case of a husband or wife filing a sep section 3 of this Act shall apply only with arate return if the tax of the other spouse respect to remuneration paid on and after Be it enacted by the Senate and House of is determined with regard to the 10-percent the first day of the first calendar month Representatives of the United States of standard deduction; except that an individ which begins more than ten days after the America in Congress assembled, That (a) the ual described in section 141(d) (2) may elect date of the enactment of this Act. following provisions of the Internal Revenue (under regulations prescribed by the Secre Oode of 1954 are amended by striking out tary or his delegate) to pay the tax shown "$600" wherever appearing therein and in in Table V of section 3 (a) , Table V of sec serting in lieu thereof "$1,200": tion 3(b), or the corresponding table pre (1) Section 151 (relating to all-owance of scribed under section 3(c) in lieu of that tax Something for Everybody Politics deductions for personal exemptions); shown in Table IV of section 3 (a) , Table IV (2) Section 642(b) (relating to allowance of section 3(b), or the corresponding table of d-eductions for estates); pr-escribed under section 3 (c) , as the case HON. PAUL FINDLEY (3) Section 6012(a) (relating to persons may be. For purposes of this title, an election OF ILLINOIS required to make returns of income) ; and made under the preceding sentence shall be IN THE HOUSE OF REPRESENTATIVES (4) Section 6013(b) (3) (A) (relating to as treated as an election made under section sessment and collection in the case of cer 141(d) (2) ." Wednesday, February 7, 1968 tain returns of husband and wife) . (b) The following provisions of such Code (3) Section 4(f) (4) of such Code (cross Mr. FINDLEY. Mr. Speaker, as re are amended by striking out "$1,200" wher references) is amended by striking out "and quired by law, the President has submit Table V in section 3(b)" and inserting in ted his annual budget to the Congress ever appearing therein and inserting in lieu lieu thereof ", Table V in section 3(b), and thereof "$2,400": the corresponding table prescribed under for authorization and subsequent appro (1) Section 6012(a) (1) (relating ·to per section 3 (c) ". priation of funds. The $186.1 billion in sons required to make returns of income) ; total budget outlays is viewed by the and (f) The last sentence of section 6014(a) (2) Section 6013(b) (3) (A) (relating to <>f such Code (relating to election by tax President as a "barebones budget." He assessment and collection in the case of cer payer) is amended to read as follows: "In maintained that this is a "sensible tain returns of husband and wife) . the case of a married individual filing a sep budget," that we have great responsibil SEC. 2. (a) Section 3(b) of the Internal arate return and electing the bene.fits of this ities, that we have the capacity to meet Revenue Code of 1954 (relating to optional subsection, Table V of section 3 (a) , Table V those responsibilities, and that "the ques tax if adjusted gross income is less than of section 3(b), and the corresponding table prescribed under section 3(c) shall not tion before us is whether or not our will $5,000, in the case of taxable years begin apply." · and determination match that capacity." ning after December 31, 1964) is amended- The billion administration (!) by striking out "After December 31, SEc. 3. (a) Section 3402(b) (1) of the In $186.1 1964" in the heading and inserting in lieu ternal Revenue Code of 1954 (relating to budget represents an increase of $10.4 thereof "In 1965, 1966, and 1967"; percentage method of withholding income billion from the current fiscal year. The (2) by inserting "and before January 1, tax at source) is amended by striking out administration contends that "almost all 1968," after "beginning after December 31, the table and inserting in lieu thereof the following: of this increase is accounted for by rais 1964,"; and ing outlays for defense and for relatively (3) by striking out "After December 31, "PERCENTAGE METHOD WITHHOLDING TABLE fixed charges under present laws." In 1964" each place it appears in the tables and other words, they have tried to create the inserting in lieu thereof "In 1965, 1966, and Amount of impression that the budget is austere, 1967". "Payroll period one with (b) Section 3 of such Code .is further holding and that the rising tide of expenditures amended by adding at the end thereof the exemption is inevitable because of the war and ris following new subsection: ing interests rates. "(c) TAXABLE YEARS BEGINNING AFTER $25.00 What the administration tries to say 50.00 DECEMBER 31, 1967.-In lieu of the tax im Semimonthly =______======:: ======: __ =______======_= _= is, that the steadily mounting expendi Monthly~~:~~~y: ______~ ~ =~ =~ _ 54.17 posed by section 1, there is hereby imposed 108.33 ture levels are inevitable. This is an elec for each taxable year beginning after Decem- Quarterly ______-·- ______325.00 tion year, and the war in Vietnam pro . ber 31, 1967, on the taxable income of every SemiannuaL ______• ______650. 00 individual whose adjusted gross income for AnnuaL ______1, 300. 00 vides a convenient excuse for not taking such year is less than $5,000 and who has Daily or miscellaneous (per day of such period) __ 5. 55" decisive action in striking a blow for fis elected for such year to pay the tax imposed cal responsibility. by this section, a tax determined under (b) So much of paragraph (1) of section In October 1966, the noted columnist, tables which shall be prescribed by the Sec 3402(c) of such Code (relating to wage DavidS. Broder, wrote an article which retary or his delegate. The tables prescribed bracket withholding) as precedes the first clearly illustrates the fact that the Pres under this subsection shall correspond in table in such paragraph is amended to read ident's budgets are finely honed and well form to the tables in subsection (b) and as follows: calculated to build political support for shall provide for amounts of tax in the vari "(1) (A) At the election of the employer ous adjusted gross income brackets approxi with respect to any employee, the employer his administration. Mr. Broder has at mately equal to the amounts which would shall deduct and withhold upon the wages tached to the President's budgetary be determined under section 1 if the taxable paid to such employee after December 31, strategy the label ~·something for every income were computed by taking the stand 1967, a tax determined in accordance with body" politics. In his article he quotes ard deduction." tables prescribed by the Secretary or his Samuel Lubell as saying: 2598 EXTENSIONS OF REMARKS February 7, 1968 The instrument that Johnson wielded with selves with the cause of the Kennedys on the scale a technique that had kept the Demo truly revolutionary political impact was the ~her. · crats in control of Texas for generations. Federal budget. No previous budget had ever None of this is news, of com-se, but the SOMETHING FOR EVERYBODY been so contrived to "do Something" for rudimentary facts must be set down as a The Johnsonian technique involves more _every major economic i~terest in the Nation. _preliminary to the examination of cause and than just the standard political wisdom of effect. I hope to outline in the next few pages staying in the middle of the road. What That observation is more pertinent to a theory-and Sldmittedly, it is no more than day, when we are faced with the highest makes it unique is its willful effort to expand a theory--of what might be called the rise, personal and party support to the point level of expenditures in the United the flourishing, and the decline of Lyndon where the opposition is left with nothing to States than at any other time. The hard Johnson's "consensus politics." organize except fringe-group sentiments. choice' which vie must face today is be The hardest thing for a journalist to do is When the opposition obliges as nicely as tween political popularity on ~he one to recognize a genuinely unique occurrence. the Republicans did in 1964, the technique hand and fiscal and political responsibil so many events are just variants in the fa can be dazzlingly successful. miliar pattern that we tend to seek out re The Model-T-for-Texas Democratic Party ity on the other. The easiest course of semblances and ignore what is original. The action would be for the Congress to "sit that emerged with a landslide majority from Johnson era in Democratic politics is, I be the 1964 election was a different creature on its hands and bask in shortrun popu lieve, unique. Let us begin with a simple but from what it had been up until that time. larity as our Nation's economy founders little-noted fact. Lyndon Johnson is the first Not all the differences were understod by the upon the rocks and shatters. The choice President in our lifetime and longer who Democratic omceholders, officials, and workers is clear and it is difficult. comes from a one-party state. The pressures who cheered Lyndon Johnson's inaugural. Will we continue the "something for of nominating-convention politics normally Nor was there any reason why any of them operate to produce presidential candidates except the Texans should have been able to everybody" politics? Or will we live up from the swing states with big blocs of elec to the trust which has been placed upon guess what the consequences would be. For toral votes, where the two-party competition it was that rare thing-something new in us by the American people? is most fierce-men like Dewey and Roose politics. Mr. Speaker, I am pleased to call to velt of New York, Stevenson of IlUnois, Nixon With the experience of almost three years our colleagues' attention this important of California, and Kennedy of Massachusetts. of Johnsonian politics now behind us, we can article by David Broder and hope that Lyndon Johnson is the product of a very see at least five distinguishing characteristics we will act with great urgency to restore different kind of politics. While Texas has of his leadership techniques and their effects voted occasionally for a Republican presiden on the Democratic Party. First, his consensus our Nation to its usual position of eco tial candidate and currently has one Re nomic strength: politics is based on support from diverse ele publican senator, the affairs of the state, in ments of the electorate. To hold this wide (From the· Atlantic Monthly magazine, both Austin and Washington, have been variety of support, the President as party October 1966] managed throughout Lyndon Johnson's life leader must provide some sort of incentive CONSENSUS POLITICS: END OF AN EXPERIMENT time almost exclusively by and through the or reward to each of the major groups in his Democratic Party. The real power struggles assembly. (By David S. Broder) in Texas politics have been resolved, not be The conversation was in the tiny anteroom Thus, Mr. Johnson was required last Janu tween the parties, but within the Democratic ary, even in a time of rising defense expendi just off the formal Oval Omce. It is a place Party-and for thirty years Lyndon Johnson where Lyndon B. Johnson likes to relax with tures, to lay before Congress a broad-front has had an ever increasing role in resolving program of domestic proposals: from civil a cool drink for an hour or two dm-ing his them. long working day. It was Friday evening, rights, to improvement of cities, to health I believe that the President's "consensus and education measures, to repeal of right August 21, 1964, the_Friday before the open politics" is rooted in his Texas experience. ing of the Democratic convention which to-work laws, to reform of election and cam In Texas, the Democratic Party for years has paign spending regulations. Not all these pro would demonstrate to all the world that this included most of the major elements found remarkable man, twice frustrated in Demo grams, by any stretch of the imagination, in the national Democratic Party: labor, were of vital importance to him at the mo cra,tic conventions, now controlled the the Negro and Mexican-American minori Democratic Party, lock, stock, and pork bar ment, but each of them had significance, at ties, farmers, small-business men, and the least as a symbol, to one or more of the rel. Lyndon Johnson had become the Demo less prosperous portions of the middle class. crats' President by the acts of two other groups that supported him. As Samuel Lubell But in addition to all these groups, the wrote, "The instrument that Johnson wielded men-John F. Kennedy and Lee Harvey Texas Democratic Party has also included Oswald-but in this next week he would put with truly revolutionary political impact was and effectively represented big-business men, the federal budget. No previous budget had the indelible stamp of his personality on that oil and gas men, banking and insurance men, party in everything from the choice of the ever been so contrived to 'do something• for . the educated, the wealthy, and the well every ~ajor economic interest in the na vice presidential nominee to the decorations born-the groups that in two-party states in Atlantic City's Convention Hall. tion-medicare for pensioners, tax rebates for provide the money and manpower for the business, loosened production controls and a Now, on the eve of what he knew would Republican Party. In fact, the Texas Demo subsidy boost for farmers, antipoverty grants be his triumph, he was indulging his favorite cratic Party includes many who are in every for Appalachia and for Negro slums, edu sport of reSiding his public opinion polls to thing but their nominal allegiance Republi- cational aids for a generally school-conscious two callers. He rattled off his percentages . cans. public." The President had so many irons in from this state and that, and then remM"ked I well remember my shock when, as an out the fire, one Democratic congressman re on what seemed to him the most significant sider, in the spring of 1960 I attended the marked, "he damn near put the fire out." finding of them all. state Democratic convention in Austin Such prodigality is necessary, for a consensus "You see," he saJ.d, jabbing his finger a,t which endorsed Lyndon Johnson as favorite President cannot concentrate on one goal at one page of the bulky report on a Midwestern son candidate for President. The members a time without seeing his coalition split. state, "right here's the reason I'm going to of the Dallas County delegation were openly A second characteristic of Johnson-style win this thing so big. You ask a voter who wearing Nixon buttons on their lapels, but politics is that it depends for its success classifies himself as a liberal what he thinks so flexible was the definition of a Democrat largely on the skill, negotiating ability, and I am, and he says 'a liberal.' You ask a voter in Texas, even a Democratic convention dele maneuvering of the President. Only the top who calls himself a conservative what I am, gate, that no one challenged their right to man is in touch with all the diverse ele and he says •a conservative.' You ask a voter be there. Four years later, when Mr. Johnson ments of his coalition. Only he knows how who calls himself a middle-roSider, and that's was finally on the ballot for President, many strong the civil rights bill must be to keep what he calls me. They all think I'm on their of those old Nixon-Democrats worked for him Martin Luther King pacified, whether the side." and helped him carry Dallas. auto manufacturers will or will not put on Mr. Johnson fashioned his campaign for It is no exaggeration to say that Repre all their pressure to kill reimposition of the the presidency on that premise and won the sentative and Senator Johnson and his col excise taxes, whether George Meany will real most sweeping popular-vote victory in leagues in the Texas Democratic Party for ly cut off funds to Democratic candidates if American history. Before and after that elec many years suppressed the emergence of a 14(b) is not repealed. "This is," a veteran tion, he tried to make the Demoora,tic Party Republican Party there by taking in and politician told the Associated Press's Saul a home for all those voters who thought giving service and satisfaction to the business Pett, "the most personalized presidency in Lyndon Johnson was "on their side," and in groups and others who normally would have our history." so doing, he markedly changed the character financed and supported the Republican COURTING THE LEADERS of that party. Party. A third characteristic, closely related, is Today the polls make far less pleasant . Thus, when that same Lyndon Johnson as that in consensus politics the President's reading for the President. The consensus he President of the United States said he viewed relationships with "group leaders" are more sought is orumbling visibly. His pa;rty is in the Democratic Party as "a great big tent," crucial than his relationship to the general serious dimculty in the major states, and a big enough to hold Henry Ford II and Walter public. The tip-off to Johnson-style politics breach appears to be opening between the Reuther, Martin Luther King and Orval came in the parade of personages through President and his Vice President on one side, · Faubus, John Connally and William Fitts his White House omce in the first shattering and younger De~rats ~ho identify them- Ryan, he was simply applying on the national days after the assassination-foreign rulers February 7, 1968 EXTENSIONS OF REMARKS 2599

first; then the rulers of the various doJhestic NO PARTISANSHIP livered his celebrated speech on "old myths domains, the congressional satraps, the gov The fourth general characteristic of con and new realities." ernors, the labor leaders, the top business sensus politics stems directly from the basic This was long before their serious split on men, the civil rights spokesmen, and, not Johnsonian technique we have been de Dominican and Vietnam policy and at a point least, the clergymen. Everyone with an iden scribing. His politics automatically mini where Fulbright's purpose was nothing more tifiable constituency was drawn in to support mizes the degree of partisanship that is per or less than to reopen the basic assumptions the President in those first few critical mitted and reduces the role of the party or of American foreign policy to critical public weeks-and none of them has knowingly ganization in government. Partisanship, like examination. As the senator tells it Mr. John been cast out since. race prejudice or class warfare, is the enemy son's remarks were in the vein of "Bill, old Several, of course, have left of their own of consensus. The decimation of the Demo pal, you know my door is always open to volition, some because they disagreed with cratic Party structure-the abolition of the you. There's no need for you to go soundin' the President's policies, others for more per ·centralized voter-registration effort that was off on the Senate floor if you've got some sonal reasons. Mr. Johnson tends to be de the keystone of t h e Kennedy campaign, the little old thing that's troublin' you. You just manding of those who profess unquestioned 50 percent cutback in manpower at the Dem trot on down here, and we'll see if we can't loyalty but is accommodating to those who ocratic National Committee, the collapse of take care of it for you." show signs of resistance. The turnover in his communications between Washington and Abhorrence of public debate has its neces personal staff has been high. The rate of state party chairman-all these things have sary concomitant in the effort to enforce attrition in personal friendships among old been described by critics as an expression of strict secrecy and to keep the press out of and intimate political allies like Senator the antagonism to party organization that the way during the decision-making or ne Mike Mansfield and Governor John Connally has been growing for eighteen years in Mr. gotiating stages of policy formation. The has been equally severe. But it is significant Johnson, ever since he ended the first phase technique is a useful, almost necessary de that neither of these men, nor any of the of his political career as a loyal Roosevelt vice for a consensus President. But, as with labor, business, or minority group leaders agent within the Democratic Party. Fulbright, it involves serious risks of alien who have shown an inclination to wander The man who fought the Democratic Na ating not only those who disagree with the off the LBJ ranch from time to time, has been tional Committee openly in Paul Butler's day final decisions but also those who disap allowed to stray far away. Mr. Johnson's has told its current proprietors, "I'm damned prove of the methods by which they are politics do not permit him to indulge in the if I can see why one guy and a couple of reached. luxury of letting personal feuds imperil vital secretaries can't run that thing." Under him, Simply to describe such a system is to in political alliances. the national party is beginning to resemble dicate how far it diverges from the sort of His reaction is always to reach out for the Texas party, where the formal struc presidential leadership and party leadership the enemy and bring him back into camp. ture of state and county chairman exists only we have known in the past. Indeed, it is so In the midst of the 1964 campaign, Mr. John on paper. alien to the concepts and patterns of mod son went straight from a partisan rally in In Texas, the governor runs the state con ern American politics that it seems remark downtown Indianapolis to a private lunch vention, just as Mr. Johnson ran the 1964 able in retrospect that President Johnson eon with the city's archconservative pub national convention. Officeholders and can could make it work at all, let alone flourish lisher, Eugene Pulliam, a close personal didates build their own personal organiza as brilliantly as it did from his accession in friend of Barry Goldwater's. (He called on tions. Sometimes they use them to help each 1963 through the end of the 1965 congres him again when starting his 1966 political other and sometimes to war on each other. sional session. I know of no other explana forays in Indianapolis.) The President will When a party campaign must be organized tion for its success than the genius of the do political business with anyone, and partly in a presidential year, the work is done by man for this peculiar style of poll tics-and as a result of that fact, he commands deep lawyer-lobbyists, men on loan from the big "genius" is, I believe, the proper word. felt attachment from few. companies and union business agents. That Entering office in a time of national shock Here we come to a crucial difference--cru is the way Lyndon Johnson staffed the key and grief, he refused to permit the nation to cial in its implications for the Democratic spots in his national presidential campaign. be paralyzed by its emotions, but instead Party-between the Johnson leadership and These part-time lawyer-lobbyists are his sub harnessed them for a great forward thrust that of a Roosevelt or a ~ennedy. who based stitute-in-readiness for the party organiza in the field of social legislation and civil their power on their personal popularity witl). tion which the Kennedys had begun to build rights. In the 1964 campaign, if he did not millions of individual voters. Their leader and he has methodically torn down. generate mass adulation, he concocted a sub ship necessarily involved the alienation, from But all this, I believe· reflects something stitute for it, blending fear-of-Goldwater themselves and their party, of millions of more fundamental that the "Texanization" with his own superenergized appearance as others. Some historians have suggested that of the party structure. A party organization, circus barker-cum-preacher-cum-polltician Roosevelt practiced a form of consensus poli in textbook terms, functions on vertical lines cum-handshaker-cum-haranguer, that regis tics in his first term and even later, when to unite the purpose and power of the Presi tered as strongly at the polls as if it had he included Republicans in his wartime Cab dent and his national committee with those been a genuine ground swell of affection. In inet. But, like Kennedy (who was auto of Democratic governors and their state com 1965, he whipped through the Congress the ma.tically alienated by religion and the civil mittees and local Democratic officeholders greatest mass of social legislation in thirty rights issue from millions of voters) , he rev and their committees. But consensus politics years, so great that it all but destroyed a gen eled in the opposition of businessmen and operates on horizontal lines, with the Presi eration of theoreticians' strictures about the freely invoked the rhetoric of party loyalty. dent reaching out, across party barriers, for inability of Congress to keep pace with the Both men were loved for the enemies they other leaders, who in turn bring along their country's needs. made. Mr. Johnson is not. The enthusiasm followers to his cause. Thus, it is almost in THE SQUEEZE IS ON he stirs in the public at large is negligible. evitable that a consensus President from a He would .not, as Roosevelt did, think that one-party state would ignore the party orga The President has come a cropper, it now he could appeal to the mine workers over nization. appears, on Vietnam. The rising cost of that the head of John L. Lewis. In this summer's war, in human terms and in treasure, is forc frustrating airlines strike, his appeals were NEGOTIATION BUT NO DEBATE ing the consensus President to do that which always to the Machinists' Union officials, not Fifth and finally, consensus politics em is most difficult and politically dangerous for the rank and file. His technique is to court phasizes decisionmaking by private negotia him and his party: to assign priorities and the leaders-George Meany, Martin Luther tion, not public debate. Debate only arouses choose between goals. In h is salad days of King, the members of the Business Council, strong feelings and tends to lock people into 1964 and 1965, President Johnson managed and, not least, Everett Dirksen-and count on antagonistic positions. Consensus politics almost literally to keep everybody happy. So them to keep their constituents in line. In tries to minimize such feelings and encour long as profits stayed high, what did busi Texas they had a saying; "Lyndon Johnson ages everyone to maneuver his group into nessmen care if he squandered, as they put doesn't have an organization; he uses every position for a compromise. The President's it, $2 billion in a war on poverty? If income body else's." It recognized the history of his favorite plea "Come, let us reason together" taxes were being reduced for the young · ~ ever shifting alliances within the state, but does not mean "Let us gather in our schools, father, what did he care if the Presiden t si more profoundly, it reflected the funda our legislative halls, or even around our tele multaneously was boosting benefits and add mental nature of his leadership-that Mr. vision sets and hear our wisest men debate ing Medicare for the elderly? Johnson does not deal with The Public; he the issue, that we may arrive at a reasoned But now the squeeze is clearly on. All year deals with a great many little publics, and judgment." Rather, it translates, "Come, let long the Administration has been walking he deals with them thro~gh their leaders. us act like the practical men we are, sit down the tightrope on a tax increase or a Reserve That is why, even though he advocates and around the table, shut the doors, and work call-up, either of which would signal an enacts programs of far-reaching social con this thing out on a basis we can all live with." end to domestic business as usual. In avoid sequences, this President is fundamentally, There are hundreds of Washington anec ing them, it has resorted to economic policies · like almost every other Texas politician, an dotes, from his days as Senate leader right that have brought both tight money and Establishment man. He recognizes as legiti up to hls latest devices for avoiding press inflation. Politically, the once happy allies mate other men's claims to power in the area conferences, which illustrate Mr. Johnson's of the Great Society consensus are chewing they control. He seeks solutions to problems inherent antagonism to public debate as a on each other. Labor is angry over the failure that will permit them tO prepare their positive function of democratic decision to repeal 14 (b) ; the farmers are blaming power base as he preserves his. He is protec making. My own favorite story concerns the Freeman for allegedly trying to slow the tive of their status and interests, and they in phone call he made to Senator J. W. Ful rise in food prices; the South is sore at the turn tend to protect him. bright two years ago, after Fulbright had de- school desegregation "guidelines"; and even 2600 EXTENSIONS OF REMARKS February 7, 1968 the freshman Democrats elected on Mr. to achieve. The consequences for his party lived political artistry of Lyndon Johnson's Johnson's coattails are chafing ·visibly at and, indeed, the future of our politics are 1963-1965 experiment in consensus politics. the rubber-stamp label. likely to be substantial. Look back on it in wonder; we shall not see As Alan L. Otten pointed out in the Wall More serious than the war itself, in polit its like again. Even the Democrats now real Street Journal, the stance Mr. Johnson was ical terms, is the spreading doubt about the ize that, like it or not, two-party politics is forced to take in Congress this year was President's capacity to end it on terms ac returning. For my taste, it will not be a difficult to defend. He told Congress first ceptable to the American people. If our view moment too soon. "that it cannot cut any of his proposals a of Mr. Johnson is correct, if he is a political penny, because every cent is urgently needed leader whose power rests not on widespread to overcome long-accumulated and burden popular affection but on his capacity to solve some national deficiencies, but, second, that the problems that threaten to disrupt the it cannot add a penny to what he has asked society, then his failure to resolve the pro Address by Richard M. Nixon because that would aggravate inflationary longed conflict !n Vietnam is certainly costly. pressures." What kind of problem-solver is it who can Mr. Otten noted, "This does not sit well not solve the biggest problem of them all? HON. JAMES G. FULTON with Congress. Many Senators and Repre The aura of omniscience and omnipotence OF PENNSYLVANIA sentatives feel the President cannot reason so carefully cultivated during the 1964 cam IN THE HOUSE OF REPRESENTATIVES ably expect to have it both ways.... Many paign, the "Let Old Lyndon Take Care of have turned Mr. Johnson's two-edged argu .Your Needs" psychology, once damaged will Wednesday, February 7, 1968 ment to suit their own purposes, rather than be hard to restore. Mr. FULTON of Pennsylvania. Mr. his. If filling unmet needs is as important as In visible ways, the Johnsonian system of Speaker, I include the following address the Chief Executive says, most lawmakers consensus politics is coming unstuck. Debate, can't see why they shouldn't take care of a which he sought to stifle, is raging in the 'by Richard M. Nixon before the 72d few of their own constituents' needs along Senate, in the universities, and in the polit Congress of American Industry of the with the President's.... Alternatively, if in ical campaign. The Republicans he sought National Association of Manufacturers flation is as ominous as the President por to disperse or co-opt are regaining their iden on December 8, 1967: trays it when attacking increases in his tity and their sense of direction. Business ADDRESS BY RICHARD M. NIXON budget, many Congressmen would be glad to leaders, civil rights leaders, labor leaders, and help combat this dire threat by spiking a farm leaders, finding him preoccupied with As we meet here this evening, the word few of the innovations he's proposed." the one great unsolved problem of Vietnam, "war" has only one meaning for us--Vietnam. The slippage of control must be galling are seeking independently to make their own Certainly Vietnam is on our minds--and to Mr. Johnson, especially when added to political arrangements. rightly so. We owe support to our brave fight the frustration he frequently expresses at Younger Democrats, resentful of what they ing men. We must understand the true stake the obduracy of the other side in the Viet take to be his insistence on rigid support for in the struggle--not merely the fate of a nam war. The President's whole political his policy in Vietnam, are forsaking his lead small, remote country, not even the future technique is geared to resolving issues, not ership. Their disaffection is heightened by his of freedom in Asia, but above all the possi letting them drag on. But here are those habit, essential to his operations as a con bility that by halting aggression now in a damned Communists, and neither bombings sensus President, of dealing with the politics limited war, we may avoid the risk of a cata nor diplomatic blandishments will bring of Congress and the fifty states on the strophic world war during this last third of them to the conference table where men can seniority principle, favoring men of his own the twentieth century. "reason together." generation over the ambitious youngsters on Vietnam is not the only battleground on While Vietnam is the source of the Presi their way up. The 1966 campaign among which America is being tested. Our forces dent's miseries and the Democrats' political Democrats has turned out to be much more and commitments circle the globe, holding problems, I am inclined to believe that if of an every-man-for-himself struggle for sur ground for the cause of freedom. None of consensus politics had not foundered there, vival than the ratification of the Great So these testing places--not in Europe, not in it would have been impaled on some other ciety President Johnson had in mind. Latin America, not in Asia--is of more vital foreign crisis. The flaw in the system is that How all this will end no one can know. importance than the ground we are stand in this world no man's antennae, not even But it seems to me unlikely that consensus ing on. Lyndon Johnson's, are sensitive enough to politics will prove to be more than a passing · The ultimate testing-place of America is warn him away from all the places where phenomenon. ·America itself. All of our power and prestige collisions can occur. An exceptionally smart There is a change in generations coming and ability to ·keep the promises that keep politician can play the angles and maintain in American politics, more likely in 1972 than the peace--everything we stand for and the delicate balance of forces inside Texas. in 1968, but coming certainly. The struggle dream of-rest in the end on the unity and He may even, for a time, under fortuitous that is emerging is a battle for the allegiance strength of America. If we are divided, if we circumstances, keep his equilibrium amid of the intellectuals and the young between default on the promises we have made to the shifting currents of the American econ the Kennedys and their allies in the Demo ourselves, the foundation on which we are omy and national politics. But the world will cratic Party, on the one hand, and the bright attempting to build a better future will not hold still for the Johnson treatment. new faces of the Republican Party-the crumble. Philip L. Geyelin points out in his excel Evanses, the Chafees, the Hatfields, and their I believe this foundation is in grave danger. lent book, Lyndon B. Johnson and the World, like--on the other. The President _barely If we do not see clearly and act quickly, that an essential ingredient of his success speaks the language of this new generation. recognizing the war-in-the-making within as a Senate leader, and in domestic politics, His methods of politics are not likely to be our society, it will not matter what happens was his "sense of timing that told him the carried over into their era of ascendancy. in Vietnam and elsewhere. moment was not propitious." But, Mr. Geye But even before these men in their forties Consider what is happening. Even a.s Amer lin correctly notes, no President, not even have their turn, the politics of consensus will ican troops attempt to pacify hamlets in this one, can set the timetable for other na probably go into decline. Presuming that Mr. Vietnam, special Army teams are now tour tions or command international decisions to Johnson is willing and able to run again in ing scores of our cities, making contingency wait "until he has his ducks in a row." In 1968, he would clearly be the favorite. But plans for their pacification next summer. the Dominican crisis and others, Mr. John never again, I daresay, even if he serves a When Harlem erupted, and then Watts, the son was forced to act hastily and saw spur second full term, will his rule be as unchal nation reacted with a shock born of surprise. of-the-moment decisions turn sour. lenged as it was in his first two years in But now we expect the terrible drama to be A second factor noted by Mr. Geyelin is office. repeated, and we train and deploy troops as Mr. Johnson's lack of intimate knowledge of Should he give way in 1968, it would prob if girding for war. I use the word "war" ad the players and methods of international ably be to one of four men in their fifties visedly. A riot is a spontaneous outburst. A politics. "The trouble with foreigners," he Hubert Humphrey, George Romney, Richard war is subject to advance planning. quotes him as saying in a wonderfully John Nixon, or Ronald Reagan. All of them, it Year by year, the violence in our cities sonian remark, "is that they're not like the might be noted, come from the normal presi takes on more of the aspects of guerrilla folks you were reared with.'' Finally, by deep dential breeding ground of competitive two war-and the rhetoric of its prophets esca est instinct, Mr. Johnson is a mediator of party states, and none of them seem remotely lates accordingly. In Detroit last summer, conflict, a reactor to other men's initiatives. capable of adopting the peculiar Johnsonian spontaneous rioting provided cover for or But the United States is not the middleman style of consensus politics. ganized sniping and arson. Now the revolu in world affairs; it is the most powerful na At some future date, we may conceivably tionaries are boasting that their war plans tion and must take actions that other coun · have a President who is a super-Johnson for next summer's riots include strikes at tries may find objectionable. This consensus with the background and skill for manipu public utilities, at urban expressways, and at President, some of his former advisers have lating the entire spectrum of domestic in other nerve centers of our complex and vul said, lacks the confidence in his own in terests, plus the personality to attract genu nerable society. stincts on foreign affairs to play the role ine mass support, plus a sure touch in for These men, educated and articulate, are assigned to him by the circumstances of eign affairs. Such a combination sounds guerrilla leaders in the classic pattern. The history. more like a messiah than a President, how violent few do not speak for the Negroes but THE BIGGEST PROBLEM OF ALL ever, and I for one do not expect to see him. they are speaking to them every day, plant Be that as it may, Vietnam has shattered Meantime, even at this short remove, I find ing the seeds of their hatred. Not for a cen the consensus which the President labored myself marveling at the unique and short- tury, not since the Civil War, has our nation February 7, 1968 EXTENSIONS OF REMARKS 2601 been so divided, our citizens so apprehensive Anything less than total mobilization of ga.ged; and it is here that the business of toward one another. . our resources would risk defeat. American business is America. Are we two nations, black and white, con We have listened too long to the extremes What can be done? fronting each other at opposite poles, sepa-· of the new left and the old right. America Government must do more to provide tax, rated by irreconcilable issues and poised for needs today to hear the voice of the broad credit and other incentives for business to irrepressible conflict? There can be only one and vital center. go where the need is. But business itself answer-we are not. We are, and must ever This vital center is under savage attack. must act from a greater sense of urgency remain, one nation and one people. It must be held at all costs. This vital cen than the normal pursuit of profit. For these In the bleak winter of 1862, Abraham Lin ter embraces a core of beliefs which focus are not normal times. coln said in a message to Congress, "The on concern with the lives and welfare of Business can reach out, for example, to re dogmas of the quiet past are inadequate to individuals, with their right to liberty, to cruit the hopeless in the slums where they the stormy present. P. -: our case is new, so we private property, to the pursuit of happiness. live. Men who have given up on themselves must think anew and act anew." Fundamental to our system is the morality must be shown that others have not. Busi Difficult and tragic as was Lincoln's war, of nonviolence. We welcome dissent, we ness can re-think production processes, so the conflict we confront at home today is welcome change, we welcome progress--but that the job can be fitted to the man rather equally tragic and more complex. Then, the we hold firmly that it must be achieved by than the man to the job. Business can great side which had the most men and the most non-violent means within the context of ly expand its training and retraining pro weapons was eventually bound to prevail. individual rights. Our system is based on the grams. It can do more toward anticipating Today, while adequate police forces are part premise that reason, not force, is our tool the difficulties faced by the poorly educated of the answer to the short-range problems, of change. and the culturally alienated, as they enter the long-range problems will not yield to These are the basic beliefs that have pro the competitive world. superior force alone. pelled this nation further, faster than any Gerald Phillippe this noon pointed out We must think anew and act anew. The other natioL in the history of the world. many more directions in which business can place to begin is to put racial violence in These are the foundations of a society that move. Your own organization's forward look its proper perspective. has provided-in a greater measure than ever ing STEP program is a solid example of busi We must speak with a new candor. before--individual freedom, material pros ness moving-and successfully. All across Under the illusion of the government's perity, and personal security. These are the the country hundreds of business firms are unlimited power to remake society, extrava beliefs which have been responsible for the recognizing the urgency of the urban crisis gant promises have been made to the Negro. most successful war on poverty civilization and they are not waiting for a Federal call to He has been encouraged to believe that his has ever known. In 190 years we have not arms. They are enlisting now. historic injustices would be righted, his only become by far the world's wealthiest It was many years ago that the philosopher burdens lifted, and the obstacles to his nation-but that wealth is more widely Alfred North Whitehead declared: "A great progress removed-immediately. Worse than shared than in any other great nation. And society is a society in which men of business not keeping a promise is making a promise we must never forget that American progress think greatly of their functions." that cannot be kept. Much of the bitterness has resulted not from what government did America is in a deepening crisis today. But of the Negro slum dweller is the result of for people · but from what people did for there is hope. A new coalition is forming these false promises. themselves. the great silent center of the American peo The rule of law itself is under attack. We In his eloquent address to Amercans for ple, the vital center, has begun to speak and find growing acceptance of a doctrine wholly Democratic Action last September, Daniel is beginning to act. The beneficiaries of the inconsistent with a free society-the doc Moynihan held out a hand that true con free society are rising to its defense. The trine that when a cause is considered just, servatives should be quick to grasp. He same business community that retreated in any action, legal or illegal, is justified to warned his fellow liberals that they should confusion in the thirties is emerging with promote the cause. Protests for peace, for "see more clearly that their essential in confidence in the sixties. civil rights, for eduaction, whether in our terest iL in the stab111ty of the social order, American business, men like yourselves, cities or on our university campuses, in and that given the present threats to that built the cities of this nation; and American creasingly boil over into violence and law stability, it is necessary to seek out and business can rebuild them. The modern cor lessness. make much more effective alliances with poration is no longer simply an economic Dissent is a necessary instrument for political conservatives who share that con unit. It has become a social unit, an action change and progress. But the greatness of cern, and who recognize that unyielding unit, and its skills are needed where the America is that our governmental institu rigidity is just as much a threat to the con action is. tions provide the machinery for peaceful tinuity of things as is an anarchic desire for Without your help it cannot be done; with protest and peaceful change. In a nation change.'' your full enlistment the beleaguered cities of which provides for progress through the rule Let us not let the opportunity pass. this country can be transformed from a hos of law, there is no cause which justifies The answer to the militants is not to say tile front to a frontier of hope. resort to violence or lawlessness. "never"; it -is not a wave of repression; it is No one has a greater stake in preserving not an angry outburst of hate or the furious the rule of law than the Negroes in our great silence of despair. Rather, it is to seize the cities. initiative ourselves; to forge new alliances Removal of Interest Rate Ceilings on All The urban Negro is the chief victim of among the forces of progressive change, to urban violence. And if the trend toward accept the challenges that the disinherited FHA and VA Insured Mortgages racial guerrilla war runs unchecked to its have flung both to our conscience and to our tragic conclusion, the law-abiding Negro ingenuity. the great, quiet majority-w111 feel most cruelly and unfairly the weight of repression. Business belongs in the forefront of social HON. RICHARD T. HANNA We need to think anew and act anew. Ten progress--and more often than many realize, OF CALIFORNIA that is precisely where it is. When business years ago the first Civil Rights Act in a hun IN THE HOUSE OF REPRESENTATIVES dred years was signed into law by President men have acted on their own-when they Eisenhower. Since that time we have had a have identified their own interest with the Wednesday, February 7, 1968 period of revolution in the field of civil rights curing of our explosive social problems--they have forged far ahead of other sectors of the Mr. HANNA. Mr. Speaker, today six of legislation-and it has been a needed revo my colleagues and I join in introducing lution. In housing, jobs, education, voting, community. As Dr. Kenneth Clark said re public accommodations, barriers that stood cently, "Business is the least segregated, the a bill to permanently remove the interest for a hundred years have fallen. least disc·riminatory, most free of the areas rate ceilings on all FHA- and VA-insured But, after this decade of opening doors, of society-better than education, religion, mortgages. we need a decade of preparing people to walk unions or government." This measure is offered as a remedy through these doors. This is a reoord to be proud of and a record to build on. to the distasteful necessity of charging After a decade of revolution, we need a discount points on real estate transac decade of reconciliation. The Negro wants and rightly seeks many We must think anew and act anew. things--many of them long denied. But he tions. The problem of points has reached We must cease to speak of the new crisis cannot fully achieve them in this society, a heretofore unprecedented level. At pres with the old vocabulary. The question today until the economic stepping stones of mean ent, banks, savings and loan associations, is not just whether this party will triumph ingful and productive jobs are laid securely and other lending institutions are charg or that ideological point of view will prevail. in place. ing from 6 to 13 discount points on trans The old quarrels-between management No force on earth, none in the history of actions involving FHA- or VA-insured and labor, between Democrat and Republi man's experience, has ever shown the capac mortgage loans. can, between liberal and conservative--must ity for creating employment that has been The practice of charging discount be put on the back burner, until we decide shown by the private economy of the United together if the society itself is going to sur States. It is a mighty engine of social points comes into play when the interest vive. progress. rate ceiling does not provide the lender The war in Asia is a limited one with And it is here that business can make its with a competitive yield. To obtain a limited means and limited goals. The war at stand for the society of which it is so vital a competitive return on his funds when home is a war for survival of a free society. part. It is here that the vital center is en- lending to an FHA- or VA-insured mort- 2602 EXTENSIONS OF REMARKS February 7, 1968 gagor, the lender must find some way of rate which forces the seller to pay Once issued, these bonds are regularly equating the yield secured from the FHA onerous discount points works as an un traded at yields that compete with alterna tive investments. The 4's of 2/15170 were or VA-insured mortgage with the yield conscionable tax, a bar to alienation and quoted at 98.20 in late April to provide a obtained from altemative conventional a penalty on progress. competitive yield of 4.42 percent. They were mortgage investment opportunities. I do not agree with my well-intending quoted at 95 18/32 on November 21, 1966, to In California a conventional mortgage colleagues who contend that if dis provide a competitive yield of 5.51 percent. involving conditions similar to those in counts were abolished the problem would Thus, the discount is merely a means of ad cluded in FHA- and VA-insured mort disap'pear. The discount point system is justing the coupon rate to prevailing market ages would yield from to 7 percent. not inherently evil. It has no moral rates. 6¥2 This is a long-standing, and highly useful At present, lenders accepting FHA- and character. It is a mere contrivance de adjustment process in the nation's financial VA-insured mortgages cannot charge in vised to correct an anomaly in the mar markets. No one would expect savers to pur excess of the 6-percent ceiling. ketplace, an interest rate which cannot chase a 4 percent bond at par in today's It is axiomatic that lenders will not ac be varied to reflect the supply of and market. And, financial managers of savers' cept FHA- or VA-insured mortgages demand for mortgage credit. funds would not be fulfilling their responsi yielding 6 percent when conventional It is far better to correct the anomaly bilities if they did not obtain a yield com mortgage investment opportunities are than to outlaw the contrivance. This bill mensurate with the risk involved in the cur will do this by eliminating the interest rent market. available at 6¥2 to 7 percent. Lenders The discount mechanism would appear to have, by their actions, made it clear that rate ceiling on FHA-VA-insured mort be an equally judicious way of adjusting the they do not regard the Government gages. Once this is done the practice of coupon rate on FHA mortgages to prevailing backing of the obligation as being worth using discount points will be returned to market yields. Indeed, it is just that when the one-half to 1 percent income that its appropriate place, as a fine timing the discount adjusts yields on seasoned mort they would have to forgo to obtain it. device to be applied in a market in which gages to changes in market yields, adjusts The system of discount points has been interest rates on FHA-VA-insured mort yields to regional differences in mortgage gages are the prime indicators of the interest rates, or adjusts yields to differences used to close the gap between the market in terms or the quality of the underlying rate and the fixed FHA-VA rate. This cost of money. security. And, the mortgage discount works worked reasonably well as long ·as the An excellent article on discounts ap reasonably well when it is small, 2 points or variations were small fractions. However, peared in the July 1967 issue of the less. as the disparity between the market rate Mortgage Banker. I will have the same However, large discounts on mortgages and the FHA rate, limited by the absolute reprinted at this point in the RECORD. create market distortions and inequities for [The Mortgage Banker, July 1967] reasons that are not analogous to large dis ceiling, broadened; the point system be counts on outstanding securities. came less effective and the byproducts of EDITORIAL: FixED RATE8-FACT OR FICTION? 1. In the bond markets, discounts on new the point system ·became more distaste After the mortgage market crisis of 1966, issues are never large, because they would ful. can anyone seriously contend that fixing the require lenders to borrow amounts well in The evils of the point system are leg interest rate on FHA and VA mortgages bene excess of the amounts actually received. end. First, it is complex and, therefore fits the borrower? This delusion of more than The additional funds borrowed but not 30 years is revealed every time the fixed rate turned over by the lender would simply difficult for the potential buyer-borrower falls to meet the yield avallable on competi equalize the interest cost to the borrower. to understand. What the prospective tive investments. It was most transparent in However, the borrower would not be in the mortgagor does not understand he sus 1966 when the fixed rate bumped into the market if he did not place a greater value pects. The point system has caused many statutory ceiling. Prospective FHA and VA on current dollars than the prevailing cost of potential buyers to believe they are being borrowers found credit unavailable at the borrowing. fast-talked or flimflammed. This im fixed maximum rate. FHA and VA mortgages Aooordingly, large discounts are an unat pression which, from my observations, is could be obtained, but only if builders or tractive sacrifice of current dollars from the sellers were wllling to pay the discount nec borrower's viewpoint and are, therefore, rather common. It makes it very diffi essary to bring the maximum rate up to com cult for the real estate agent to establish avoided in pricing new issues. petitive market yields. When builders and Large discounts may occur on issues that the relationship of personal trust and sellers could no longer absorb the discount, have been outstanding for some time, but confidence which is basic to selling a they stopped building or took their houses these transactions involve two investors, home. off the market. The prospective buyer found both of whioh a.re operating in the same time A second and even more egregious evil fewer sources of credit and fewer houses to framework and market environment. Their of the inflexible interest-rate ceiling is chorn:;e from. As a result, he paid more for decisions do not in any way affect the posi the house he purchased or withdrew from tion of the original borrower. the burden it places upon the individual the market. who wishes to sell his home. The general These developments are not the result of 2. conversely, discounts on newly origi practice in marketing used housing is capricious decisions of builders, sellers, or nated FHA mortgages are often large. that the seller pays all, or nearly all, of lenders. They are decisions based upon mar They are not negotiated by lender and ket conditions, but the fixed rate is not fully borrower, but are determined by a fixed the discount points required to secure coupon rate that may have fallen far behind the FHA- or VA-insured financing re responsive to changes in market conditions and is not responsive at all when competitive the market. Unlike transfers of seasoned quired to sell his home. yields approach the statutory ceiling. Rather bonds or mortgages between investors, large In simple terms this may mean tha.t than looking elsewhere for scapegoats, we discounts on newly originated mortgages dis the seller will lose all the equity he has should recognize the fallacy of rate fixing tort the mortgage and housing markets and built up in the house. This amounts to a and reaffirm our confidence in the market impart inequities between the parties in tax on the seller of used housing. This system. We should acknowledge that lenders, volved-the builder or seller, the borrower, "tax" is unconscionable because it op however large, are the trustees of the savings and the investor. of millions of individuals, and their respon 3. The investor, as pointed out earlier, erates without regard to the equities of sibilities include putting those savings to must and does obtain competitive yields on situation. Seldom is the seller able to work in investments that minimize risk and FHA mortgage investments. make the question of discount a matter maximize return. These objectives hold for In past periods, when the discount mech to be bargained upon on an equitable financial . managers of any financial inter anism. was outlawed, he abandoned the mort basis. mediary, whether it is a commercial or sav gage market to seek investments elsewhere. Moreover, the operation of the "tax" ings bank, a savings and loon association, or When the discount is permitted and appro is contrary to two strong public policies: a life insurance company. Indeed, savers priate yields can be obtained, investors may themselves seek havens for their funds that still leave the market when discounts deepen The first favoring alienation of property produce maximum interest earnings. in order to avoid criticism. and, second, favoring economic prog Even the U.S. Treasury, the world's strong 4. The builder has learned to live with ress. The points system discourages est borrower, must meet the market's terms. small discounts. However, a large discount alienation of property by depriving po When the Treasury offered a 4 percent bond makes significant inroads into builder profits, tential new home buyers of the use of in January 1965, it chose a 4 percent coupon very often eliminating them entirely. accumulated equity as a downpayment for the convenience of fitting the issue into Whether large or small, prevailing regula on a new and larger home. It also dis the pattern of multiples of Ys of 1 percent, tions on discounts a.re inequitable because favors salutary business activity by se but the issue was priced at a small discount they force the builder to pay part of the to provide investors with a competitive mar buyer's cost of borrowing money. We would verely penalizing those homeowners who, ket yield for 5-year issues at 4.18 percent. Of hardly expect General Motors to pay lenders due to the high mobility of our society, the $4.4 billion issued, the Treasury-the bor any amount to reduce the borrowing cost to are forced to move to secure career ad rower-accepted somewhat less to provide a car buyers, as this inequity is enforced in vancement. In short, the fixed interest market yield. FHA home mortgages.