: 1949 · CON(iRESSl.ONAL ~· RECORD-SENATE 12601 In the name of the Master who taught­ PRIVATE "BILLS ·AND RESOLUTIONS lands and to lease certain other land to us as never man taught; we· pray Thee Under clause 1 of rule· XXII, private MilwaUk:ee County, Wis. to inspire our country to become alto­ On September 3, 1949: . bills and resolutions were introduced and S. 1250. An act extel_lding the Institute of gether worthy to :Pursue life, liberty, and . severally referred as follows: Inter-American A1fairs. happiness. Glory be to Thy holy name. By Mr. BEALL: Amen. MESSAGE FROM THE HOUSE-ENROLLED H. R. 6164. A bill for the .relief of Mabel K. JOINT RESOLUTION SIGNED The Journal of the proceedings of Fri­ Young; to the Committee on the Judiciary. day, September 2, 1949, was· read and By Mr. SABATH: A. message from the House of Repre­ approved. · H. R. 6165. A bill for the relief of Karel sentatives, by Mr. Maurer, one of its Klein and Vera Klein; to the Committee on reading clerks, announced that the MESSAGE FROM THE SENATE . the Judiciary. Speaker pro tempore had affixed his sig­ A message from the Senate, by M,:. nature to the enrolled joint' resolution Carrell, one of its clerks, announced that

hereafter in the United States the control "S~ c. 331A. Administration of 'l'rade Agree­ "(6) The probable extent and duration of over American import duties now subject to ments. changes in production costs and practices; international agreements. "(a) All powers vested in, delegated to, or "(7) The degree to which normal cost re­ RESTATEMENT OF EXISTING IMPORT DUTIES otherwise properly exercisable by the Presi­ lationships may be affected by grants, sub­ sidies, excises, export taxes, or other t axes, or SEC. 2. Title I, paragraphs 1 to 1559, in­ dent or any other officer or agency of the United States in respect to the foreign trade otherwise, in the country of origin; and clusive, of the Tariff Act of 1930, are hereby any other factors either in the United amended by repealing the classifications and agreements entered into pursuant to section 350 of the Tariff Act of 1930 are hereby trans­ States or in other countries which appear rat es therein contained and substituting likely to affect production costs and com­ therefor the classifications and rates ob­ ferred to, and shall be exercisable by the Au­ thority, including, but not limited to, the petitive relationships. taining and in effect on , 1949, by "(c) Decreases or increases in import du­ reason of proclamations of the President right to invoke the various escape clauses, reservations, and options therein contained, ties designed to provide for fair and reason­ under section 350 of the Tariff Act of 1930 able competition between foreign and do­ or otherwise. and to exercise on behalf of the United States any rights or privileges therein provided for mestic articles may be made by the Authority FORMATION OF FOREIGN TRADE AUTHORITY the protectirn of the interests of the United either upon its own motion or upon appli­ SEC. 3. Title III, part II, section 330, of States. cation of any person or group showing ade­ the Tariff Act .of 1930 is hereby amended "(b) The Authority is hereby authorized quate and proper interest in the import to read as follows: ' and directed- duties in question: Provided, however, That no change in any import duty shall be or­ "PART II-FOREIGN TRADE AUTHORITY " ( 1) to terminate as of the next earliest date therein provided, and in accordance with dered by the Authority until after it shall "SEC. 330. Organization of the Foreign Trade the terms thereof, all the foreign trade have first conducted a full investigation and Authority. , agreements entered into by the United States presented tentative proposals followed by a "(a) Membership: The United States Tar­ pursuant to section 350 of the Tariff Act of public hearing at which interested parties iff Commission shall be reorganized and re­ 1930; have an opportunity to be heard. constituted as the Foreign Trade Authority "(2) to prescribe, upon termination of any "(d) The Authority, in setting import.du­ (hereinafter referred to as the 'Authority') foreign trade agreement, that the import ties so- as to establish fair and reasonable to be composed of six directors to be here­ duties established therein shall remain the competition as. herein provid~d, may, in or- after appointed by the President by and with same as existed prior to such termination, der to eff~tuate the purposes of this act. the advice and consent of the Senate. · The and such import duties shall not thereafter prescribe- ~cific duties or ad valorem rates • original directors of the Authority shall be be · increased or reduced except in accord­ of duty upon the foreign value or export the same· persons now serving as Commis­ ance with the Tariff Act of 1930, as amended, value as defined in sections 402 (c) and 402 sioners of the United States Tariff Commis­ by this act." · (d) of the Tariff Act of 1930 or upon the sion, each such person to serve as a director United States value as defined in section 402 of the Authority until the date when his PERIODIC ADJUSTMENT OF IMPORT DUTIES ( e) of said act. term of office as a Commissioner of the SEC. 6. Title III, part II, section 336, of the "(e) In order to carry out the purposes of United States Tariff Commission would have Tariff Act of 1930 is hereby amended to read this act, the Authority is authorized to expired. Thereafter the term of office of any as follows: · transfer any article from the dutiable list to successor to any such director shall expire 6 "SEC. 336. Periodic Adjustment of Import the free list, or from the free list to the duti- - years from the date of the expiration of the Duties. able list. . term for which his predecessor was appointed "(f) Any increase or decrease in import except that a director appointed to fili a va­ "(a) The Authority is authorized and di­ duties ordered by the Authority shall be­ cancy occurring for any reason other than rected, from time to time, and subject to the come. effective 90 days after such order is the . expiration of a term as herein provided limitations hereinafter provided, to prescribe announced: Provided, That any such order is shall be appointed only for the remainder of and establish import duties which will, first submitted to Congress by the Authority the term which his predecessor would other­ \ ·ithin equitable limits, provide for fair and and is not disapproved, in whole or in part, reasonable competition between domestic wise have served. Directors shall be .eligibl~ by concurrent resolution of Congress with­ for appointment to succeed ·themselves if articles and like or similar foreign articles in 60 days thereafter. otherwise qualified therefor.. No person shall in the principal market or markets of the "(g) No order shall be announced by the be eligible for appointment as a director un­ United States. A foreign article shall be Authority under this section which increases less he is a citizen of the United States, and, considered as providing fair and reasonable existing import duties on foreign articles if in the judgment of the President, is pos­ competition to United States producers of a the Authority finds as a fact that the do­ sessed of qualifications requisite for develop­ like or similar article -U the Authority finds mestic industry operates, or the domestic ing expert knowledge of tariff problems and as a fact that the landed duty paid price of article is produced, in a wasteful, inefficient, efficiency in administering the provisions of the foreign article in the principal market or extravagant manner. this act. Not more than three of the direc­ or markets in the United States is a fair "(h) The Authority, in the manner pro­ tors shall be members of the same political price, . including a reasonable profit to the vided.for in subdi'"?isions (c) and (f) in this party, and in making appointments members importers, and is not substantially below the section, _may ·impose quantitative limits on of different political parties shall be appoint­ price, including a reasonable profit for the the importation of any foreign article, _in ed alternately as nearly as may be practi­ domestic producers, at which the like or such amounts, and for such periods, as it cable. similar domestic articles can be offered to finds necessary in order to effectuate the " ( b) Chairman, vice chairman, and salary: consumers of the same class by the domes­ purposes of this act: Provided, however, That The President shall annually designate one tic industry in the principal market or no such quantitative limit shall be imposed m3.rkets in the United States. contrary to the provisions of any foreign trade of the directors as Chairman and one as Vice " ( b) In determining whether the landed Chairman of the Authority. The Vice Chair­ agreement in effect pursuant to section 350 duty paid price of a foreign artfcle, includ­ of the Tariff Act of 1930. man shall act as Chairman in case of absence ing a fair profit for the importers, is, and or disability of the Chairman. A majority "(i) For the purpose of this section- may continue to be, a fair price under sub­ " ( 1) the term 'domestic article' means an of the directors in office shall constitute a division (a) of this section, the Authority quorum, but the Authority may !unction article wholly -or in part the growth or prod­ shall take into consideration, insofar as it uct of the United States; and the term 'for­ notwithstanding vacancies. Each director finds it practicable- eign article' means. an article wholly or in shall receive a salary of $12,000 a year. No "(1) The lowest, highest, average, and part the growth or product of a foreign director shall actively engage in any business, median landed duty paid price of the article country; vocation, or employment other than that of from foreign- countries offering substantial "(2) the term 'United States' includes the serving as a director." competition; several States and Territories and the Dis- "(2) Any change that may occur or may trict of Columbia; - APPOINTMENT OF SECRETARY reasonably be expected in the exchange SEC. 4. Title III, part II, section 331 (a), of "(3) the term 'foreign country' means any rates of foreign countries either by reason empire, country, dominion, colony, or pro­ the Tariff Act of 1930 is hereby amended to of devaluation or because of a serious un­ read as follows:. balance· of international payments; tectorate, ,or any subdivision or subdivisions "(a) Personnel: The Authority shall ap­ "(3) The policy of foreign countries de­ thereof (other than the United States and point a secretary who shall receive a salary signed substantially to increase exports to its possessions); of $9,000 per year, and the Authority is here­ the United States by selling at unreasonably "(4) the term 'landed duty paid price' by empowered to employ and fix the com­ low and uneconomic prices to secure addi­ means the price of any foreign article after pensations of such special experts, examiners, tional dollar credits; payment of the applicable customs or im­ clerks, and other employees of the Authority " ( 4) Increases or decreases of domestic port duties and other necessary charges, as as it may find necessary for the proper per­ production and of imports on the basis of represented by the acquisition cost to an formance of its duties." both unit volume of articles produced ·and importing consumer, dealer, retailer, or man­ articles imported, and the respective per­ ufacturer, or the offering price to a consumer, ADMINISTRATION OF TRADE AGREEMENTS . centages of each; dealer, retailer, or manufacturer, if imported SEC. 5. Title III, part II, of the Tariff Act " ( 5) The actual and potential f-uture ratio by an agent. , of 1930 is amended by adding ·at the end of of volume and value of imports to volume "(j) The Authority is authorized to make section 331 the following new section: and value of_ production, respectively; all needful rules and regulations for i;arry- 1949 CONGRESSIONAL RECORD-SENATE 12605

1ng out its functions under the provisions of STATISTICAL ENUMERATION free access to American markets which this section. SEC. 10. Title IV, part Il, section 484 (e), they want, and the remaining countries "(k) The Secretary of the Treasury ls au• of the Tariff Act of 1930 ls hereby amended would also have the free trade which thorized to make such rules and regulations to read as follows: · they want, through the multilateral as he may deem necessary for the entry and "(e) Statistical enumeration: The Chair­ declaration of foreign articles with respect man of the Foreign Trade Authority is au­ most-favored-nation clause, and could to which a change in basis of value has been thorized and directed to establish from tim'e also come in with their low-wage living made under the provisions of subdivision to time, after consultation with the Secretary stanqards and further divide the Ameri­ ( d) of this section, and for the form of of the Treasury and the Secretary of Com­ can markets. invoice required at time of entry." merce, a statistical enumeration of imported Mr. LUCAS. Mr. President- AMENDMENT OF SECTION 337 articles in such detail as he may consider Mr. MALONE. Mr. President, I should necessary and desirable to effectuate the SEC. 7. Title III, part n, section 337, of the like to conclude my statement. If the purposes of this act. As a part of each entry majority leader wishes to enter an ob­ Tariff Act of 1930, is hereby amended as there shall be attached thereto or included follows: therein an accurate statement giving detalls jection, we will let it be a matter of (a) Subdivision (a) thereof by striking out .i.·equired for such statistical enumeration. record. the word "President" and substituting there­ The Secretary of Commerce is hereby au­

re~trictlve associations and cartel practice• I would like to add this-that there are 11ively, you wm ftnd that the competitive and the like. signs that some of the workers 1n the na­ position of Britain in the world can be just as . Summing it all up, I'd say the indict ment tionalized industries, particularly the coal strong in the future as it has ~en in the past. liteertainly true; though !>efore anything can ra~her mines, . are disappointed about the Whe~ is aid unnecessary? be done about it, it's necessary to understand form nationalization has taken. They have the h_istoricai and other reasons why it'• asked for nationalization for a generation Quest~on. When, in your opinion, might happened. . . and they always Imagined that in some vague help from the United States become unnec­ Question. Does socialized industry seem way, that I think they never really defined essary? able to discipline labor? to themselves, when the Industry was na­ Answer. I don't think I'd like to predict Answer. We're in a poor position to- judge tionalized it would belong to them. Now that at all. If you want to be a cynic you yet. If you're to judge by what has happened they discover that it does not belong to could give the answer that American help during the past 2. years, the answer must be: them-it belongs to the state, and from their will cease to be necessary on the day that it Quite definitely, no. But then tho&e 2·years point of view that ls quite a different thing. stops. There is alwayB a tendency, 'so long· have been a period of full employment when To use what, I believe, is Trotskyite lan­ as help is forthcoming, to talk about doing the employers ·are always at a disadvantage guage, what is happening in this country is the things that it will be necessary to do in in imposing discipline and when the trades that · we are not getting socialism, we are the future, rather than doing them now. unions have an enormous bargaining ad­ getting state capitalism, and that ls rather Question. Would a cut in the value of the vantage. And I don't know that you could a difference. I would not emphasize that pound solve, or tend to solve, Britain's really establish that the nationalized indus­ because I do not think it ls any more than problem? tries have been any weaker than anybody else a passing phase of disappointment among Answer. I don't think you can use the in that period. On the record, however, the some people who expected too much. In word "splve." I think it might help. It's evidence tq date certainly is that they are general the answer is that you would have difficult to be sure, but my personal view is weak collective bargainers. to have a pretty powerful microscope to de­ that if done at the right moment it would Question. Does there seem to be any limit tect very much difference in the psychology help quite a bit. But it wouldn't be by any to the demand the public will make for so­ of the workers after nationalization. means a solution, because when one talks cial services? Question. Does it seem likely that the about a cut in the value of the pound one Answer. Oh, the limit is when they realize trend to socialism can really be reversed? means a cut in terms of the dollar. There ls that they've got to pay for them. That real­ Answer. Reversed? That, I think, would no question, I think, of the pound falling in ization began to dawn on the country with be very difficult. It would be very difficult value relatively to the other currencies of Sir Stafford Cripps' last budget. And I think to denationalize industry-to unscramble the the world, and yet it is in those other cur­ tivents will drive that lesson home quickly. eggs-if only because I don't see where you rencies that we must do by far the greater Then you will have a most ineresting and are going to find the private capitalists who part of our trade. difllcult problem in which the citizen as tax.. will have enough money in the first place ta A cut in the value of the pound will make payer will be demanding cuts in expenditure put up to buy an industry back, and who, our goods cheaper in the United States, but while the citizen as beneficiary of social serv­ secondly, would have the courage to do so won't make them cheaper in Germany, or in· ices is demanding that there shall be no cuts. when they know that that particular indus­ France, or in Africa, or in Asia, or in Aus­ And it wlll be difficult for him to make up try has been nationalized once, and could be tralasia, or in the other places, where, in his mind which of his two incompatible de­ nationalized a second time. fact, we sell most of" them. No, it's a help, mands is the one that he really insists upon~ Some of the smaller nationalization plans but it does not really absolve us from the could be reversed. For example, the Con­ necessity of doing the basic thing, and that Social security's ceiling servative Party say that they wm abolish is, reducing our costs of prOductlon expressed Question. That leads into ariother ques­ the cotton-buying commission and reopen in the po~d sterling here at home. tion: If social security is so popular politi­ the Liverpool cotton exchange. Well, I think More dollar loans opposed cally, can there really be any end to the rise in that there probably are enough of the old Question. Would you say that new and cost? · Liverpool cotton brokers still in existence for Answer. Well, I would expect that the way larger loans are to become necessary from that to be possible. But for the big basic the United States? in which the social-security state wm work is industries, once they are nationalized, I think that you wm have long periods of gradual, Answer. It would be a mistake on every­ as a technical operation it would be very body's part to think in terms of further· steady i~crease in . expenditures alternating difficult to reverse engines. with sharp periods of crisis when the .com­ loans. You remember that one quarter of munity realizes that it has gone a bit too Britain can come back Marshall aid ls in the form of loan rather far, and therefore with much pain ·and grief Question. Is it likely that Britain can than grant. , And there was great unw1lling­ and political groanlngs goes through the busi­ again earn her way in the world? ness in this country to accept that, simply ness of making sharp cuts. Answer. Oh, I thin!.;: so. I am not a pessi­ on the grounds that if you take a loan you Then it will feel a great deal better and mist about that. ·I noticed ~ piece in a recent promise to repay, and it ls really extraordi­ will enter into anoth~r period of adding tO copy of United States News and World Re­ narily difficult to see how this country ls ever the bills until another crisis blows up. I port-I'm not sure if I can find it immedi­ going to be able to repay further dollar loans. don't think you can expect, when you mi}C ately, but I believe I can-where a sentence If gold's price were raised­ social security with democratic government, that caught my eye said: "British troubles, as far as anybocty can see," are unsolvable." Questlon. Is there something to be gained a steady and regular development. It wlll be 1f the United States would ,raise the pri~e of an erratic one. ' Well, I just don't agree. I think that we have a difficult problem on our hands now, gold? Workers' attitude unchanged that somehow or other we have got to reduce Answer. A higher price for gold would be Question. Do the workers in the socialized the cost of proctuction of our industries. But, of great value to South Africa and industries seem to work harder, do they feel once we've done that, I believe our basic posi­ and the other gold pro-duce.rs of the world. happier, is there some sign that they think tion in the world is very sound. And since it would put more dollars into that they are working for themselves in their If you want a simple analogy, I would say circulation in the world it would, therefore, own industries? Britain is like a man whose brain and con­ at least indirectly, assist the United King­ Answer. I remember that when the rail­ stitution are stlll perfectly sound and ef­ dom. But I don't think I would advocate ways were nationalized, in the first week or ficient, but who has got into a very bad habit, a rise in th~ price of gold simply for its own two, the newspapers sympathetic to the La­ shall we say, of drinking or taking drugs, or sake. bor Government were full of reports to the something of that sort. He's going to find If it can be used as a lubricant, so to speak, effect that the porters at Waterloo station it a pretty difficult job to break himself of 1n some much wider world-wide plan of were working more willingly than they had that habit. But, once he has broken him­ financial reconstruction, well and good. been before. But, for myself, I was unable self of that single bad habit, then I believe Taken by itself, it strikes me far too much tu notice very much difference. that he wm be fully able to earn his living as a piece of special pleading for the benefit In the coal mines, where you've got actual in the world as before. of the gold producers. statistics of voluntary absenteeism-two long After all, the basic, the historical advan­ Question. What is Britain to do when words meaning staying at home when you tages of Britain in the world still exist. We Germany really gets back into production· feel like it--nationalizatlon, if it has made are stlll an island which can import its foOd and when Japanese industry ls fully re­ any difference at all, has made a difference and raw materials from the ends of the earth stored? Does it seem likely that that will for the worse (though that can perhaps be more cheaply than they can be shipped from add to the present problems? explained by other reasons) • one State of the United States to the other Answer. It will. I have heard.it said that If you ·take other industries that have by rail. We stlll have a skilled and homo­ there is more reason for Britain to be scared been under public ownership for a longer geneol;lS population. We stm have a body of a lack of competitive power relative to time, for example, the post office, I don't of capital equipment which, though inferior Germany than relative to the United States. think the ordinary observer would. say _that to the American, ls superior to that of any­ Britain and America are not, broadly speak­ the post-office employee · works noticeably body else. We stlll have the commercial ing, competitive countries. We don't ·sell more willingly than ot:Q.er people; indeed, know-how. . W~ stlll have a great deal ot the same things in the same places. But. you might argue that he works less willingly industrial skill. Britain and Germany are compe~itors and than other i;>eople. On the whole, I cJon 't Once we can cure ourselves of this bad have been in the past. We do sell very much really th.ink there' ls veri much difference. h abit of trying to sell our goods too expen- the same things in the same places. 12610 CONGRESSIONAL RECORD-· SENATE SEPTEMBER 7 Part, at least, of the reason why our ex­ To begin with, we in Europe continue to British people's belief in giving value for ports are now 50 percent by volume higher hope that you AmeriGans will go on with the money. Now it's easy to say that, but how than they were before the war is that G~r­ good work of the last 15 years in reducing can you do it? How can you reduce costs of many for the time being is out of the world's your tariff rates. The rates of protective production, how can you restore a belief in export markets, and, if Germany comes back tariff that you still charge on many British the value of money? We shall have to tackle we're going to have a pretty hard fight on and European goods are very high. it in a number of different ways. our hands. And the same, in perhaps only In addition to the actual tariff duty, I don't :f'or example, I've got into a lot of trouble slightly smaller degree, applies to Japan. know that Americans realize that the net­ in this country recently for saying that so Eastern Europe a small market work of customs regulations, practices, and long as we have such a total absence of un­ procedµres that have to be got through be­ employment as we have now, you can't ex­ Question. Do you see any way out that fore you can actually bring goods into the pect people to work as well as they might do. would involve an end of the barriers of trade United States is a far thicker maze · than I'm not advocating a recurrence. of the mass with Russia? What can Russia offer in east­ anything that exists in any other country. unemployment that we had in the 1930's. ern ·Europe to help Britain? Anybody who tries to sell goods to the But unless a man has a certain healt'hy ap­ Answer. Broadly speaking, there never has United States finds that the tariff duty he has prehension of losing his job, you can't expect been very much trade between Great Britain got to pay is almost the smallest of the him to work as well as he might do. Well, and eastern Europe and I don't think the obstacles that he has to overcome. There that's one thing. possibilities are very great-even if there is an immense amount of pure bureaucratic The second is to review the activities of weren't the well-known political difficulties red tape and obstructionism. We like to the State. Taxation is so heavy now that in the way. think that someday Americans will wake there really is very little reward for anybody It is a favorite idea, particularly of. opinion up to that and do something about it. to work any harder. And I'm not only talk­ on the left wing of the Labor Party, that even But even when everything has been done ing about the high-income executive; I'm if difficulties in trading with the United that can be done about the American tariff talking about the ordinary workingman. He States become very great, they can be com­ and customs practices, the basic difficulty knows that as soon as his earnings exceed pensated for by additional trade with eastern that you have mentioned wm still remain: about $30 a week for a single man (rather Europe. To my mind that is almost com­ How can Americans be expected to buy foreign more for a family man) as much as 36 per­ pletely an illusion. I don't think that any g:iods wher. they can produce the same goods cent is deducted in tax off any additional such trade could be done, certainly not in cheaper themselves? · money that he makes. Well, that is quite large volume. Cheaper goods needed a considerable disincentive to work. Question. Does this situation seem to boil "Too easy to lead a soft life" down to long-term United States investment Well, of course, the answer to that is that abroad? the foreign goods must be made cheaper, if Next, the social services. Though I'm not they are not cheaper now. In the long run of their most convinced advocates, I think Answer. Well, that's one of these large the value of the dollar relative to other _cur­ they've been allowed to run riot in this questions that it's a little bit difficult to an­ rencies will have to rise. There is always country. It's been made a little too easy to swer briefly. I feel quite sure that one of the some· price at which goods can be sold, and lead a soft and easy life, and in various wars big continuing problems before the world is for myself I don't know that that process we have got to put that right. how to solve the problem of the American .would have to go very far. . . . ·. One could go on :µiaking a number of oth'.f-r balance of payments-I .said "American" and After all, the goods that foreign countries sugges:tions of this general sort, but basica,ly I mean "American." sell to the United States are in most cases what is needed, I think, is what you can We have been talking about the British a quite tiny fraction of the American market. almost call a moral revolution. We have balance of payments, which is chronically in If you leave aside the foodstuffs and the raw slipped in the last generation in England deficit, . but there is .equally a problem about materials that are bought by America and into believing that the world not merely the American balance of payments, which is confine yourself to manufactures, I think you owes us a living but that the world will meet chronically in surplus. And, of course, will find that the total imports of manufac­ its obligations and provide us with a living. throughout the world as a whole all the sur­ tures into the United States are not much And the old Victorian belief that a high pluses must equal all the deficits. more than 1 percent of the total of manu­ standard of living comes from a high stand­ A problem to which American statesmen factures sold in the United States. ard of production, or, to quote another fa­ are giving their minds and will continue to Now it wouldn't take very much cheapen­ mous slogan, that "He who does not work, have to give their minds is how the world ing of sterling or other currencies, so it would neither shall he eat," has · been allowed to can be provided with enough dollars to buy seem to me, before one or two additional slide too much into the background.. And the goods from the United States that it products got past the line and became without going back fully, or even as mu~~h wants to buy and that America wants it to cheaper than the corresponding American as halfway, to th~ old doctrine of hard w01k buy. When you suggest that can be solved by products. And if the fraction were raised and self-help, we have got to make some a large program of investment by America, from 1 percent ' to 2 percent, that would moral return in that direction. then there are further difficulties. hardly be noticeable to anybody in America, We have got to be willing to face the Investment requires the payment of inter­ but it would make a very great difference to uncomfortable fact that the world values est over the years and eventually a repayment the balance of payments of the European the services of the British people less highly of the principal. Now those payments to the nations. than they value them themselves. There lender, that is to say to the United States, Question. I take it that you do regard really is no escape from that. There is no can only be made in goods. Therefore it is tariffs and related duties and regulations still appeal from the verdict of the world market possible to envisage investment by the United to be a major barrier to selling in the United place. Until we are prepared to make that States in other countries only where you can States? moral adjustment, it's no good talking about see the loan leading to the development of Answer. I think tariffs and the regulations economic remedies. such resources as will enable the borrowing are a barrier, undoubtedly, but I think- we But once that moral readjustment is made, country not merely to increase its exports are deceiving ourselves, on both sides of the then I think the economic policies will fol­ generally, but to increase its exports to the Atlantic, if we think that even the total low by themselves, that they will be rela­ United States. abolition of the United States tariff would tively easy, and that they will not cause Now there are some such projects-new solve the problem. one-tenth part of the pain and grief that ones can be thought of every year..:_but I very No; you have a real economic problem­ people expect. for which there is no precedent in past his­ much doubt whether remunerative invest­ THE SITUATION IN THE FAR PACIFIC ment projects in that sense can be thought of tory-of a country, the United States, whose in sufficient volume to solve the problem of demand for other co~ntries' goods is so rela­ Mr. KNOWLAND. Mr. President, last tively low, and the demand of other coun­ the chronic surplus in the American balance week I submitted for printing in the REc­ pf payments. tries for whose goods is so relatively high, that it is a problem of the greatest technical ORD the first of a series of articles by Mr. United States: se~ler who doesn't buy difficulty to see- how the two sides of the David Sentner, which consisted of an Question. The United States might buy account can be made to balance. interview with General MacArthur rela­ more abroad, but how can it be induced to "Healthy" fear of losing job tive to the situation in the far Pacific. I do so when its industries can produce the Question. In summing up, Mr. Crowther, ask unanimous consent to have printed same goods more cheaply at home? have you in mind for Britain a plan of action, in the RECORD at this point as a part of Answer. I agree that is a very difficult prob­ or would you suggest a few priorities in ~he my remarks three subsequent articles lem. And when I talk about the chronic order of their importance? dealing with the same subject, and also problem of the surplus in the American bal­ Answer. It seems to me that there is one a copy of an article entitled "White ance of payments that ls what I have in thing that needs doing in this country that mind: the great difficulty of the rest of the is so much more important than any other Paper: Acheson's Conclusion," written world in selling enough to America. But I that it can be allowed to stand almost by it­ by Walter Lippmann and published in think lt would be defeatist to say there was self, and that is to reduce costs of production. the Washington Post of September 6 un­ nothing that can be done about it. Or, to put it in another way, to restore the der the title "Tod.ay and Tomorrow." 1949 CONGRESSIONAL RECORD-SENATE 12611 There being no objection, the articles · the possibllity of a turn· of the tide in favor Chiang Kai-shek, swinging along toward the were ordered to be printed in the RECORD, · of the Chinese anti-Red fol'ces. front lines. , Inasmuch as a friendly and independent These recruits in their cocky khaki visors as follows: was vital to American security, the appeared in high spirits and hard and:. fit. (From the New York Journal-American of question of how to aid any and all anti­ This stream of fresh troops gave the lie August 31, 1949] communist forces in China should receive to the Communi~t-spread propaganda that MACARTHUR SAYS UNITED STATES MUST HOLD intensive consideration, he said. the Olmo was holding out on reinforcements JAPAN, STOP RED GRAB-LAND REFORM OUT­ If a decision were made to help China, to build up a personal bodyguard army. MANEUVERS COMMUNISTS-PROGRAM ALLOWS he suggested, it should be on a moderate HID GUN SHORTAGE FROM POPULACE 2,000,000 TENANTS TO PURCHASE FARMS scale lest we deplete our own resources and However, one out of each three soldiers go­ (By David Sentner) also to determine the effect of our contribu­ ing to the front carried. no rifle. They must Japan is America's secmity key to the tion before going deep~r. The General emphasized that the Chinese wait until a comrade is killed or wounded critical Chinese Communist problem. before inheriting his weapon. In the face of a Communist China, the problem was directly linked to the effort in When reinforcements moved through Can­ United States must control Japan or have Europe to stem the march of Moscow-direct­ ton in sunlight, I saw that trucks loaded its neutrality guaranteed to keep it out of ed communism. with rifles accompanied them, thus hiding the hands of the Soviet Union. "The fight against communism is global," from the popUlace the dire shortage. he said, "and China and Asia cover half the Japan must now be occupied indefinitely" For this chance a~ a rifle, these young by American forces. globe." . Chinese soldiers were getting two silver This historic concept for a new Pacific The -General dismissed the theory that the dollars a month, all that the Nationalist · strategy-the forging of Japan as America's United States could not fight a two-front or Government can now afford. front line against the threatened expansion even a three-front war. The generalissimo is doing his utmost to of the Chinese Red flood-was outlined. to "We did it in World War II," he declared. fill .the crying need for small arms. He is me by General MacArthur. We 9hatted about the warping of Ameri­ turning out about 7,000 rifles a week from can public opinion on the Chinese situa­ UNITED STATES WILL NOT REARM JAPAN his arsenal in Formosa. . tion by Communist propaganda-the steady It is only a trickle in modern warfare but I have asked the military hero of the Pa­ undermining of the Chinese Nationalist each new gun is welcomed like a cannon dific how Jane and John Public could be made Government and the persistent misrepre­ by the hard-pressed, under-equipped Na­ to understand that events in far away China sentation of the Kremlin-directed Chinese t ionalist forces. might mean so much to them and their Communists as liberal agrarian reformers. country. The General remarked that the land re­ "WE WILL FIGHT WITH OUR NAKED FISTS" The general made it clear he .was speak­ form program in Japan, sponsored by the If there were any further doubt as to ing unofficially, an over-the-lunch-table con­ American occupation authorities, had vir­ China's will to fight the Communist flood, versation. tually knocked the props from under the it was removed when I talked to Marshal He had believed .several years ~go that Communist movement there. Yen Hsi-shan, a Chinese premier. Russia would consent to the signing of a The program permits 2,000,000 Japanese He rose from a sick bed in his residence peace treaty with Japan and that by this tenant farmers to purchase about 80 per­ at Canton to grant me an interview. He time American troops could have been with­ ·cent of the land they formerly cultivated ae· wore a long blue kimono instead of the uni­ drawn. tenants. ·form of one of China's recognized great "The face of the Japanese occupation has JAP FARMERS IGNORE REDS ·generals. . been completely changed by developments in The Communists, who are making much In his early sixties, Marshal Yen's kindly Ohina," General MacArthur added. "The of the Red successes in China, ask the Jap­ · eyes, scholarly tortoise shell spectacles, and Japan of 1949 is not the Japan of 1948. anese farmers if they wouldn't like to own · businessman's gray mustache, screening his "The United States never did intend to past record as one of the earliest lieutenants rearm Japan as Russia apparently expected. · their own land, the General said. The Japanese farmers reply, "we do," and to Dr. Sun Yat-sen, rather of the revolution. However, we must make certain that Japan "We are planning a counter offensive," he does not fall into the lap of the Soviet turn their backs on the Reds. said quietly. "We are going to fight for Union. In the event of a Communist China, Thus ls Japan, now a critiCal holding op­ Canton-with our naked fists, if necessary." this is essential." eration, being built into a democratic dike against the Red flood pressing toward the Marshal Yen, also president of the execu­ JAPAN IS HINGE IN UNITED STATES DEFENSE tive Yuan, equivalent to the Cabinet of the Pacific. shores of America. · United States, sipped his medicine. "We must remain in Japan until such And General MacArthur, faced with yet time as we can trust the Soviet Union to "Perhaps we shall be pushed back," he another vital task, is stfoking on the job to continued. "But we will fight until our backs negotiate a. treaty providing for the true again serve his beloved country. neutrality of Japan." are against the last mountain in the north- The new American Pacific line of defense west provinces. · against a Communist China must be Japan [From the New York Journal-American o! "Then our children will continue to fight and the littoral or coastal islands off the September 2, 1949} until China is free." Chinese coast, General MacArthur said. PREMIER YEN URGES MAcARTHUR HEAD UNITED ASKS MAC ARTHUR TO HEAD MISSION TO CHINA As long as the United States controls this STATES MisSION TO CHINA-GENERAL WOULD "China will never go Communist. It will frontier any amphibious preparation for an GET WIDE POWERS-NATIONALISTS PRESS take more than Moscow to change the heart invasion of Japan could be knocke~ out in FIGHT ON REDS DESPITE DIRE ARMS SHORTAGE of China for freedom. A 5-year-old Chinese the preliminary stages by the Air Force and (By David Sentne;r) child is as stubborn in his desire for indi­ Navy. Free China presents the modern version vidual freedom as Stalin is adamant for the The new American security line based on o.f beating plowshares into swords in its epic slave state." Japan would run from Formosa t_hrough battle against the Red scourge. Like acting President Li, the Chinese prime Okinawa and down to the. island of Hainan. Deserted by its old friend America, whose minister urged that General MacArthur be While General MacArthur was not spe­ secret Yalta Pact with Russia had so much given the task of supervising a military and cific, he indicated that any attempt of the to do with strengthening the Chinese Com­ economic mission to China. • Chinese Communists to invade Formosa or munists, the Nationalists are scraping the "The Chinese Government would give the Hainan-both now under the control of the bottom of the barrel for fighting weapons. widest authority and the closest c_ooperation Chinese national government-would be con­ In Lanchow, hemmed in by the Red army, to such a mission," he asserted. "I am cer­ sidered an attack on the American front line a factory turned out bayonets from auto tain that the generalissimo would reiterate of defense. · springs worth their weight in gold in a land my statement." The recent State Department white paper o! poor communications and sparse motor "The combination of MacArthur, a mod­ on China in warning the Chinese Commu­ transport. erate shipment of arms to the Chinese north­ nists against any attempt at expansion was In Chungking, they are working over 20,000 west :fighting front, and the opening of eco­ vague on the geographical limitations. rusty captured Japanese riftes of 6.5 milli­ nomic warfare against the Reds would The revelation by General Mac~thur that meter caliber for which there ls no fitting definitely defeat communism in China,'' he advocated a neutralized, democratic, un­ ammunition. They are turning them into Marshal Yen asserted. militarized Japan as a balance in the Pacific 7.92 millimeter guns, the standard Chinese "This would not cost America very much," to Soviet-Communist influence, confutes the bore for rifles. he added. "It would prove the best invest­ charge of his leftist critics that he was plan­ Junk heaps are being raked for old Japa­ ment the United States could make for world ning to rearm Japan. nese and German shell cases which are being peace and American national security .... ADVOCATES NEUTRALIZED JAPAN recharged. Like all shades of leadership in free China, While blueprinting an American defense As Canton slept, through the narrow ar­ Marshal Yen feels that the State Depart­ front against a Communist, Sovietized China, caded streets I saw columns of new young ment's white paper was a stab in the back GenN""al MacArthur was not pessimistic about troops, trained in Formosa by Generalissimo while China was battling for its life. 12612 CONGRESSIONAL RECORD-SENATE SEPTEMBER 7 "Why wasn't it issued before the Commu­ ton to beg a small amount of ammunition mortars, walkie-talkie equipment, and a nists captured Peiping?" he inquired earn­ from the dwindling stock pile of the Na­ dozen reconnaissance planes to give eyes to estly. "Then we would not have hoped for tionalist forces defending the capital. his mountain cavalry. American aid and could have followed a dif­ If America within the next 10 days would ferent strategy of conserving our military fly him 10,000 rifles and 5,000 carbines with [From the Washington Post of September 6, and economic resources." . · ammunition, his troops would cut the Com­ 1949} Whitey wmauer, head of Major General munist invaders into pieces, the bearded Chennault's Civil Air Transport, postwar suc­ Ma Pu-fang told me. TODAY AND TOMORROW cessor in China to the Flying Tigers, told me He pleaded with the United States to make (By Walter Lippmann) how Marshal Yen swore he would commit a new survey of free China's capacity to roll WHITE PAPER: ACHESON'S CONCLUSION suicide and stay to the death in Taiyuan back the Communists. The white paper on China deals with a when the capital of his northern province He was the third outstanding leader of the diplomatic disaster- perhaps the greatest was surrounded by the Red Army early this Chinese Nationalist Government, all with that this country has ever s~ffered. But year. Taiyuan, the Pittsburgh of China, later unassailable records for honesty and reform after working his way through the thousand fell to the Reds. programs in their provinces, to urge that pages the reader is left to wonder what the Yen h ad set up an airdrop of food to his General MacArthur supervise a mission· to State Department has learned from the dis­ besieged people. This Chinese model of the China. aster it foresaw and could not avert. Berlin airlift was operated by the three air WOULD PAY FOR ARMS WI'~'H VITAL EXPORTS The record shows that Chiang's defeat was transport lines working in China. Acting President Li and Chinese Premier recorded as probable 5 years ago, that it was AffiLIFT PILOTS KIDNAP PRIME MINIS'IER YEN Yen had previously made similar requests. deemed most probable by General Marshall The airlift ran from Tsingtao to Taiyuan, "General MacArthur is a very great soldier when he returned from China to become Sec­ an air run of 400 miles each way, under the and administrator," General Ma said. "I retary of State more than 2 years ago, and worst possible flying conditions. Th~ turn­ would like to fight for him." that it was judged to be certain when he around was so fast that pilots ordered their General Ma counted off the probable cost rejected the recommendations made by Gen­ one meal by radio. of an immediate plane shipment of small eral Wedemeyer in his report to the Pre15ident Generalissimo Chiang Kai-shek decided arms on each of his strong fingers. on September 19, 1947. There has been a:qiple that Yen was more useful to his country for He would be in good shape, he said, if time, therefore, to do what Amba.ssador · his administrative genius than as a dead he could get 1,000 rounds a weapon, which Jessup and his colleagues ~ave just been hero. would cost 5 cents a round. appointed to do-ample time to think aqout He estimated 10,000 rifles ·cost a half mil­ how to protect American interests ~nd to He sent Chennault's crew of American ex­ salvage American influence as Nationalist Marine and ex-Navy fliers into Taiyuan to lion dollars and 5,000 carbines $250,000. China was losing the civil war and when the bring out the prime minister. The northwest provinces might eventu­ Communists had, as foreseen, won the clvll Yen refused to leave, so Chennault's pilots ally pay for these weapons with such prod­ war. . . kidnaped h im into a C-46 and brought him ucts as the United States market called for­ But the white paper contains no evidence back to Canton. tin, bristles, and so forth, he added. that the mountai~. which should have been Marshal Yen has built up a good regime in General Ma, who has never received Amer­ in· labor for 2 years, has brough.t for~h even his home province of Shansi, developing a ican military aid. in the past and is accus­ a mouse. The big fat book does not even progressive road-building, agricultural, and tomed to using second-hand weapons, even ask, much less does it answer, the crucial industrial program. suggested that there might be a shipment questions. Why, at the zenith of American He has written many times on how to beat available from the captured Nazi rifles lying power and prestige ~as the Americ,an influ- communism. The underlying idea is to idle in United States arsenals. . ence in China paralyzed and why did the give the people a · break, something he has "The northwest provinces are the cork in American interest founder so quickly, and practised. the bottle of China," said General Ma. "Chi­ why is the Nation which we have championed -.His ~honesty 1s, unquestioned and even the na is not in any way defeated. Our north­ turned against us, and why as we have multl­ Chinese Communists respect him. west armies have taken a heavy toll out of plieq. our enemies hav_e we also lost our . He is a :firm believer in having American the Red Army. · friends? capital develop the rich untapped resources "Until we get more guns and- ammuni­ These are the questions on which ·prlv?-.te _of China's northwest. tion we are making a strategic ret'reat ·and citizens might well reserve judgment -until keeping our forces intact." those who are ·responsible for our foreign [From the New York Journal-American of He pointed out on a map how his own policy have spoken.. But though the white September 3, 1949] troops. and the forces of General Ma-Hung­ paper contains evidence for judging them, kwei; his brother Mohammedan, Governor bf the Secretary. of State does not discuss them. RIFLES ASKED Now To LOCK CHINA'S BACK Ningsia, were in a position to conduct ·a In fact Mr. Acheson takes the view that really DOOR TO REDS-GENERAL MA URGES MAC• pincer movement on the Red Army as it there ls no point in asking whether American ARTHUR MISSION moved through Kansu, the middle north­ policy was sound. Since the inevitable hap­ (By David Sentner) west province. pened unavoidably in China, what America For the cost of a few new post office build­ RED ADVANCE LAID TO FOOD SHORTAGE did or might have done, did not and could not have made any difference in the out­ ings America could contain the Red tide in "As soon as we get more ammunition, we China. come. We did the best we could. Had we will have the Red bear by the tail," General done more, had we done less, had we acted Fresh out of ammunition, China's tough Ma said. Moslem fighting troops clutch their empty differently or not at all, we should still be Neither the Japanese nor the Communist where we are today. rifles in futility as the Red Army moves army has been able to escape defeat in the through the mountainous northwest prov­ "The unfortunate but inescapable fact is past from the rugged forces of Gen. Ma that the ominous result of the civil· war in inces to open a back door to Russia. Pu-fang with their hard-riding cavalry. Russia wants northwest China so it can China was beyond ·the control of the Govern­ The risky Red invasion of the Chinese ment of the United States. Nothing that this consolidate its supply line to China and save north, sufficient from rich fields of wheat 4,000 miles from the current difficult route country did or could have done within the and rice, was also attributed to difficulties reasonable limits of its capabilities could from the Soviet Union via Manchuria. the Red Army is undergoing in feeding the It is part of the Kremlin master plan for have changed the result; nothing that was population of occupied territory. left undone by this country has contributed the rapid transformation of China into a Floods, the Nationalist coastal blockade, Red satellite, Asiatic arsenal and manpower to it." This is tantamount to saying that peasant rebellions against produce seized there was no such t.hing as a sound or an un­ reservoir to further the expansion of com­ for the Red Army, and a break-down in food mupism throughout the Pacific. sound, a right or a wrong, a wise or an un­ distribution to large cities are contributing wise, policy toward the Chinese civil war. The projected Russian-Chinese artery to the Communist food problem. would further serve to sever the anti-Soviet All policies were equally futile. For since The Soviet Union, 1n addition, has been Chiang's defeat was inevitable, the whole crescent running from Turkey across a Mos­ known to be eying the incalculable unde­ lem belt flanking both the Soviet Union and conduct of American policy in China was veloped mineral resources of the Chinese irrelevant. Siberia as well as the European Soviet sat­ northwest, where deep deposits of uranium ellites. But that is to beg the question. We fol­ have been reported. lowed a policy in which American interests COULD ROUT COMMUNISTS IF HE HAD MORE ARMS As long as the fanatically anti-Commu­ in China, American prestige in China, large The Chinese northwest provinces of nist. northwest is held there is a springboard quantities of American arms and of American Tsinghai, Kansu, and Ningsia are the easte.rn fr.om which to launch a counter offens.ive _money, were lost in what the State Depart­ anchor of this great anti-Communist belt against the Reds. ment bad long since decided was the inevi­ extending from a point in across American military authorities in tb,e Far table defeat of Chiang. Mr. Acheson is en­ central Asia, the Middle East, and north East estimate that an expenditure of only titled to argue that the outcome of the Chi· Africa. to the Atlantic Ocean. $5,000,000 for . the indomitable nor~hwest nese civil war was inevitable and beyond our Gen. Ma Pu-fang, model governor of forces would definitely check the Red Army. control. But the Secretary of State cannot Tsinchai, where the mountains make the They would supplement Gen: Ma Pu-fang's cont.end that our own actions and commit­ American Rocky's look small, came to Can- modest request for a few thousand rifles with ments in relation to that civil war were also 1949 CONGRESSIONAL RECORD-SENATE 12613 inevitable and beyond our control. He for an accounting. I have no particular . These undisposed-of lands are now induct­ might just as well argue that having bet on interest in this part of the bill though I ed in grazing districts under the Taylor Graz­ a spavined horse which we knew would fall think it is entirely appropriate that this au­ ing Act and furnish the necessary basis of the down, no question need be asked about the thority should be given. My interest is in stock-raising interests of western Colorado. wisdom of the bet. We must think only the amendment which was introduced in the The Taylor Grazing Act specifically provides about the horse and that the horse did in Senato and concurred in by the House. It that no Indian reservation land may be in­ fact fall down as predicted, and that it would will be necessary to give a summary of the cluded in a grazing district; consequently if have fallen <,iown even if we had tripled facts to show the character of this amend­ these lands are subject to the Wheeler-How­ our bet. ment. ard Act the entire program inaugurated Advocacy of that kind may dispose of Con­ Pursuant to a treaty accepted and ratified under the Taylor Grazing Act to restore to a gressman JUDD. But it does not dispose of by the act of , 1880 (21 Stat. 199), sound condition the grazing lands in west­ the main question which is how and why we the confederated bands of Utes ceded to ern Colorado would have to be abandoned. got intt' a posit.ion where we felt we had to the United States a large part of the area To meet this situation, after a conference bet our . whole position in China on a gov­ which had comprised their reservation in with the attorney for the Ute Indians, Sen­ ernment which we regarded as hopelessly in­ the State of Colorado. This cession was a ator THOMAS of Utah, who sponsored the bill competen·;: to protect our position or ·to consequence of what was known as the in the Senate, the amendment in question achieve the stabilization of China and a set­ Meeker massacre which rendered it neces­ was prepared, introduced, and approved. tlement in the Far East. sary both for the welfare of the white citi­ The amendment seeks to do three things: We can, I think, best come to grips with zens and the Indians that there be a rear­ ( 1) To set aside and transfer to the Southern that question by examining the Wedemeyer rangement of Indian lands. The Indians Ute Indians 30,000 acres of land adjourning report and Secretary Marshall's decision to were given ill exchange other lands. They the Southern Ute Indian Reservation in­ reject it. For that was the crucial decision. were also gi'~en certa1n cash payments and cluded in one of these withdrawal orders. There all the main issues came to a head and annuities. In addition, it was agreed that This gives to the Ute Indians lands which Secretary Marshall was face to face with the the net proceeds of the sale of the ceded they would not receive if the Secretary of the predicament in which our China policy had lands, after payment of governmental ex­ Interior ls legally without authority to make ended. He found that though we could not penses and certain payments to the families these restoration orders, which I think is help Chiang to survive, we had nevertheless of men who were massacred by the Utes, correct. (2) To set aside and annul the to remain entangled in his inevitable defeat. should be paid to the Utes. attempted restoration to the Utes of 8,000 ~y the summer of 1947, therefore, we had The treaty with the Indians and the statute acres of land in Gunnison. This land being lost our 'diplomatic independence. We were of ratification declared the ceded lands to be remote from any Indian settlement and in ~rapped, unable to work with Chiang and un­ public lands of the United States. This was the midst of country settled and cultivated able to work without him. further specifically decl!tred by the act of by white citizens, it would be most unfortu­ , There is a story here which needs to be July 28, 1883, in which it was said "That all nate to have it under the occupation of the pieced together. It is the story of how our of that portion of the Ute Indian Reserva­ Ute Indians or their lessees. (3) It definitely championship of China became a fatal en­ tion in the State of Colorado lately occupied disposes of the controversy by declaring the tanglement as the choices open to us were by the Uncompahgr!'l and White River Utes lands contained within the· former Ute In­ narrowed down to a point· where we were be, and the same is hereby, declared to be dian Reservation which have not been dis­ ~amn,ed if we did and damned. if w.e didn't. public lands of the United States • • • ." posed" of, ~o be ~he absolute property of the The ·statute recognized the right of the United States. TRIBAL PROPERTY RIGHTS OF UTE Indians to receive the proceeds from the sale Before drawing the amendment, I con­ INDIANS . of the lands, but made it entirely clear that sulted. with Mr. William, ·Zimmerman, Jr., Mr. BUTLER. Mr. President, on July lands were public lands in which the In­ Assistant Commissioner of Indian ·Affairs. dians had no right or title. Mr. Zimmerman ·stated that he thought . a 26, 1949, the distinguished Senator from somewhat different legal situation existed as Utah [Mr. WATKINS] inserted 'in the . The Wheeler-Howard Act of , 1934, authorized "the Secretary of .the Interior, if to a strip of land at the extreme southern RECORD on page 10140 some material in he shall find it to be in the public inter­ portion of these lands than prevailed as to connection with the bill, S. ·2329, entitled est • • • to restore to tribal ownership the greater . portion thereof. Accordingly, "To grant the Ute Indians the right to the remaining surplus lands of any Indian the amendment declaring title of the United States to be absolute was limited to lands, retain certain tribal property . rights reservatio~ heretofore ope11ed, or authoril?led to be opened; to sale • • •." north of and including ·range 35 so that all' of taken by the act of June 28, 1938, or the Southern Ute Indian Reservation which otherwise, by the United States." Among There are many Indian reservations in the lies south of range 35 was left subject to other things, he inserted a portion of United States which were open to settlement but.which continue to be Indian reservations, the provisions of the Wheeler-Howard Act. the letter, dated June 18, 1938, from the It may be of interest to know that there late Senator Adams, of Colorado, to the to which this language of the Wheeler-How­ has been heretofore paid or credited to these ard Act applied. bands of Ute Indians from the sale of lands Director of the Budget. · · However, the lands formerly owned by the On checking into this' matter, I have wit~in the former reservation over $6,000,000. Ute Indians in Colorado no longer constitute They have been paid the value of all lands discovered that the full text of the letter a part. of an Indian re~ervation. They had included within forest reserves and within from Senator Adams gives additional been ceded and absolutely disposed of by the oil reserves as weir as the payments received facts which may throw a somewhat dif­ Utes under the treaty and for adequate con­ from sales of lands. If the Indians have a ferent light on this subject. I, there­ sideration. claim by reason of setting aside the grazing fore, ask unanimous consent to insert a Failing to distinguish between the legal districts or other use of these lands, such complete. copy of this letter in the body situation in the case· of Coforado Ute Indian claims would under this act be adjudicated lands and those in Indian reservations which by the Court of Claims under most liberal of the RECORD. . were subject to 'the terms of the Wheeler­ There being no objection, the letter provisions. Howard Act, the Secretary of the Interior is­ It would be most unfortunate if this act wa.s ordered to be printed in the RECORD, sued two orders purporting to restore to should not be approved. as follows: · tribal ownership cerain undisposed of por­ Congressman TAYLOR, in whose district UNITED STATES SENATE, tions of the former Indian lands in Colorado. The amount of land sought to be revested in these lands lie, is very deeply interested in COMMITTEE ON PUBLIC LANDS the matter and would unquestionably, if he AND SURVEYS, the Indians by these orders was approxi­ mately 38,000 acres, 30,000 acres of which ad­ were here, earnestly urge the approval of this June 18, 1938. act. Hon. DANIEL w. BELL, join the present reservation of the Southern Utes, and 8,000 acres in Gunnison County, Sincerely yours, Acting Director, Bureau of the Budget, ALVA B. ADAMS, Department of the Treasury, Wash- Colo., located far to the north and remote ington, D. C. · from all Indian settlements. POLICY ON USE OF MILITARY AIRCRAFT These restoration orders have caused great MY DEAR MR. BELL: I am interested in H. R. Mr. THOMAS of Oklahoma. Mr. 3162, a bill conferring jurisdiction upon the alarm and uneasiness in western Colorado. United States Court of Claims to hear, exam­ There are. over 4,000,000 acres of lands form­ President, on yesterday, Secretary of ine, adjudicate, arn;l render judgment on any erly belonging to the Ute reservation which Defense Louis Johnson signed a direc­ and all claims which the Uncompahgre, Uin­ remain undisposed of. The civilization of tive or. Department of Defense policy on tah, and White River bands of the Ute · the entire Fourth Congressional District •·1 the use of military aircraft. The head­ Indians may have against the United States, Colorado ts built around and upon these ing of the directive or statement is and for other purposes, which is now before former Indian lands. It is not the particular you for consideration. order of restoration which is our concern, but "Policy. on use ·of military . aircraft." I The purpose of the bill when introduced the fact that the principle u:i;tderlying it that ask unanimous consent that a copy of was to authorize certain bands of Ute In­ if the Secretary of the Interior can restore the 'directive be printed at this point in dians, which formerly held. lands in Colo­ 38,000 acres of ·1a.nd to tribal ownership, he the RECORD, in conneetion with my re- rado, to bring suit against the United St.ates can restOre all of the 4,000,000 ·acres. marks. . . . XCV--795 12614 CONGRESSIONAL. RECORD-SENATE SEPTEMBER 7 There being no objection, the directive a suggestion which I could not make blll, or we accept a progressive downgrading was ordered to be printed in the RECORD, otherwise. It has been my belief for a of the caliber of personnel of the armed as follows: long time that our military aircraft have services. I am sure you will agree. with me that the international position of the United DEPARTMENT OF DEFENSE, been and are being used for purposes not States makes the acceptance of the latter OFFICE OF PullLIC INFORMATION, in the public inte~est. But I did not hazardous in the extreme. I Washington, D. C., September 6, 1949. wish, out of a clear sky, to make a sug­ I am sure, when I ask you to give this par­ Secretary of Defense Louis Johnson signed gestion to the Secretary and tell him ticUlar legi.slation every opportunity at your a directive on Department of Defense policy what I thought his duties might- be. command in the Senate, I speak for every on use of military aircraft: However, when I got an opportunity­ member of the armed forces, and for their "POLICY ON USE OF MILITARY AmCRAFT and he gave me one-I caused a situa­ families. "For trips that are in the national interest tion to arise whereby I got a directive. Sincerely, and necessary to the conduct of Government The directive has now been offered for OMAR N. BRADLEY. business, military aircraft may be used by printing in the RECORD. It is fair. It THE POLISH SITUATION · authorized officials of the Federal Govern­ ment. This applies to otncials of the De­ means that any Member of Congress­ Mr. O'CONOR. Mr. President, there partment of Defense to the same extent, and any Representative or Senator-who has has been so much dfscussion and consid­ in the same manner, that it applies to offi­ any business in the public interest can eration of the necessity of a stabilized cials of other Government agencies. make application for aircraft transpor­ world economy as a basis for a lasting "The more detailed statement of policy on tation; and if he indicates the nature of peace that the world seems to have for­ this subject, which was promulgated on De­ his mission and if it appears to be in the gotten the human values involved in any cember 31, 1948, remains in effe-:::t. Among interest of the public, no questions will other things, this policy provides as fol­ just settlement of world affairs. lows: 'Requests for travel, without reim­ be asked, and the plane will be made Reestablishment of economic self­ bursement, by Members of Congress.or high available. sufficiency in the war-ravished countries Government officials, whose travel is pri­ But I am of the opinion that the direc­ of Europe undoubtedly is an essential to marily of official concern to . the National tive will prevent the making of a number any lasting world order. .When, in the Military Establishment (now the Department of requests, and that in that respect a period of seeking and working for such of Defense) should be screened and ap­ considerable saving will be made to the rehabilitation, the world permits, and by proved by the chairman of the cong~essional Treasury. its lack of condemnation tacitly approves committee (or Military Subcommittee, in Mr. WHERRY. Does the Senator the case of the Appropriations Commit­ of, a continuing condition of enslavement tees) upon which the Member of Congress from Oklahoma feel that definite an­ for whole populations, entire nationalis­ is serving, or in the case of officials of other swers will be made to the questions which tic groups, it seems to me that we are Government agencies, the head of the gov­ were asked in the letter written by the laying an insecure foundation, indeed, ernmental department to which the official is distinguished Senator? I ask that ques­ for . any peace or national agreements attached, and the request then forwarded, tion because I was very much interested that may finalry ·be developed. preferably in writing, by su~h committee in the letter, and I was interested in the The American people have been re­ chairman or department head • • • .' information which I thought wotlld be "The requests referred to in the passage minded during the past week that it was obtained. Or does the Senator now con­ 10 years ago that Nazi Germany un­ set out above will be acted on as speedily sider it to be a closed incident? aa possible, and on a just and equita~le leashed its armed might and its world basis. The statement of a committee chair­ Mr. THOMAS of Oklahoma. So far ambitions upon its neighboring state of man or department head that a trip is in as I myself am concerned, I consider it a . But 10 years is a long time, and the national interest and necessary to the closed incident. memories are short. Few, indeed, I ven­ conduct of Government business will nor­ THE MILITARY-PAY BILL-LETTER FROM mally be a sufficient basis for approval. of ture to say, among the millions of read­ the requested trip. . GEN. OMAR N. BRADLEY ers of the various articles in the press "Where· a trip is in ·the national interest Mr. LUCAS. Mr. President, I have be­ and elsewhere, have stopped to consider and necessary to the conduct of Govern­ fore me a letter addressed to me from the vast sufferings and injustices that ment business but is not primarily of official Gen. Omar N. Bradley, dealing with the hav ·e been heaped and still are weighing concern to the Department of Defense, nor­ military-pay bill. I ask unanimous con­ heavily upon the distressed people of that mal governmental appropriation and ex­ unfortunate country. . penditure procedures apply, and in such cases sent that the letter may be printed at the Department of Defense is reimbursed this point in the body of the RECORD, be­ Still less has there been any ·concerted by the department or agency primarily con­ cause of its importance. demand that the democratic nations of cerned with the trip." There being no objection, the letter the world rise in righteous wrath and de­ was ordered to be printed in the RECORD, mand freedom for Poland or even the Mr. WHERRY. Mr .. President, I ask as follows: lightening of the burden of oppression unanimous consent that I may ask a which now rests · so heavily upon the question of the distinguished Senator THE JOINT CHIEFS OF STAFF, Washington, D. C., August 29, 1949. brave people of Poland who fought so from Oklahoma. Hon. SCOTT W. LUCAS, valiantly, all alone, to stem the tide. of The PRESIDING OFFICER. Without United States Senate. Nazi brutality and oppression. objection, it is so ordered. DEAR SENATOR LUCAS: For several months In those 10 years the people of Po­ Mr. .THOMAS of Oklahoma. I am the men and women in the armed forces have land-those who · survived--have had glad to yield. been watching with great interest the prog­ various dictators, first the Russians, then Mr. WHERRY. I should like to ask· if ress of the Career Compensation Act in the the Na,zis, and finally the Moscow-domi­ reply was made to the letter which was Congress of the United States. Actually, they have been waiting for 4 years for some. nated Communist leaders who still rule directed to the Secretary of Defense, in further equitable adjustment in the pay Poland with an iron and brutal hand. which letter the Senator from Oklahoma scale. We have urged them to wait patiently Those of us who, on happy occasions asked certain questions relative to the for enactment of the bill that all of us have before the war, have joined with the use of airplanes under the jurisdiction of studied, and your own committees have en­ Polish groups in our midst to rejoice with the Department of Defense. dorsed. Everywhere the Joint Chiefs of Staff went them in the prospering condition of their Mr. THOMAS of Oklahoma. I take beloved homeland, are sad indeed at it that this directive is an answer. during our recent trip to Europe, we were Mr. WHERRY. Does it give the in­ asked the same question: "Will Congress pass their condition now, particularly. when the pay bill at this session?" we recall the contribution made by the formation the distinguished Senator re­ In the minds of the members of the armed valiant Polish people in the early days quested? forces and their families, it has become more Mr. THOMAS of Oklahoma. No. than just a deserving pay raise and a revi­ of World War II. How sadly has the Mr. WHERRY. I myself was very sion of an antiquated structure. It is ap­ world failed them, since their fair land much interested in that letter. parent, from what they have to say, that was first overrun and despoiled by the Mr. THOMAS of Oklahoma. A num­ they believe it has become a mark of un­ Nazi hordes in September of 1939. ber of persons were. certainty as to the regard which the Con­ Is it not time that the world reawakens gress and the people. hold for those in the Mr. WHERRY. Does the Senator in­ service. to its responsibilities with regard to these tend to pursue his inquiry? · t arrive at one inescapable conclusion: hapless people? Is it not about time that Mr. THOMAS of Oklahoma. Mr. either we place the armed services in a bet­ the whole free world demand, through President, I took advantage of an occa­ ter position to attract and retain competent our accredited representatives in the sion to make to the Secretary of Defense individuals by enacting the milita1·y-pay :United Nations, that the bonds of slavery .1949 CONGRESSIONAL Rl~~CORD-SENATE 12615 be lifted from the people of Poland, and It was not until nearly a year after the pressure against independent . newspapers, that once again th~y be allowed the free­ fall of Poland that Nazi Germany was suffi­ Government control of all radio broadcasting, ciently recovered to resume its aggressive war, and similar phenomena would tend to abate. dom of action and of thought and .of the and although France then fell. in its turn the Whether this ls correct is problematical; cer­ practice of. religion which so rightfully island fortress. of England held, and Hitler tainly the situation of the two great dailles­ should be theirs? was doomed. La Prensa and La Nac16n-has not yet be­ An editorial in the Baltimore News­ But after Hitler was dead and Germany come easier with the waning of the authority Post of September 6, 1949, recounts ~n itself was ·rubble, Poland stayed on in its of !APL But much remains to be seen. In graphic fashion the fate of the Polish chains under the surviving partner of the the meantime, a great many people, both Ar­ people during this tragic 10 years. It is criminal alliance . which began the war and gentines and Americans, are grateful to Mr. made it wanton. Bruce for both his accomplishments and his a record that cannot be. impressed too Why has the free world so long forgotten efforts. · deeply upon the Members of the Congress and abandoned Poland? or uoon the people of these United States. No other nation made so total a contribu­ EXTENSION OF RECIPROCAL TRADE I ask unanimous consent that it be tion Of its resources and Of the lives Of its AGREEMENTS ACT printed herewith as a supplement to my people to the world peace ultimately achieved. The Senate resumed the consideration remarks. The tenth anniversary of the start of the of the bill (H. R. 1211) to·extend the au­ There being no objection, the editorial war, and particularly the years of peace fol­ lowing tte war, could mean so much more thority of the President under section 350 was ordered to be printed in the RECORD, to the free world if the crimes against Poland of the Tariff Act of 1930, as amended, and ·as follows: were at an end; and all such anniversaries for other purposes. [From the Baltimore News-Post of will be. mockeries until Poland is free again. Mr. GEORGE. Mr. President, before September 6, 1949] RETffiEMENT OF AMBASSADOR BRUCE discussing the unfinished business, I ask REMEMBER POLAND unanimous consent that Mr. Winthrop The second great world war began with Mr. O'CONOR. Mr. President, when G. Brown; from the State Department, the coordinated assault on Poland by the an official representative who has may sit here in the Chamber during this armies of Nazi Germany and Soviet Russia. brought to a difficult position a real de­ debate, or in his absence, another repre­ The most wanton phase of the whole war sire for service, and proven capabilities sentative from the State Department. was the laying waste of the entire Polish and qualifications for the post, retires, it The PRESIDING OFFICER. Without nation by the combined German and Rus­ is fitting indeed that due recognition be sian Armies and their deliberate slaughter of objection, it is so ordered. a large part of the Polish people and taken of his efforts and of his accom­ Mr. GEORGE. Mr. President, the un­ enslavement of the remainder. ·plishments. finished business, House bill 1211, the After the devastation and destruction of Mr. James Bruce, who, 2 years ago, bill to extend the Trade Agreements Act, Poland was complete, the Germans and Rus­ entered upon the duties of United States is finally before the Senate. From every ·sians ·met on a border-roughly in the center -Ambassador to Argentina, did so with reasonable point of view, it should · be ·of the country, previously agreed upon by full realization of the difficulties likely to ·passed quickly, after due consideration, Hitler and Stalin, and they fraternized there be encountered in that post. Today's and without amendment. In fact, the as allies and friends. New York Times, in an editorial, "An delay Which already has occurred has Thereafter, for the duration of the Hitler­ Ambassador Retires," portrays accurate­ Stalin alliance, the two occupying powers raised serious doubts in our own country exchanged goods across the Polish border ly the situation which then existed and and abroad as ta the continuation of a and fattened themselves upon the Polish the skill and devotion with which Mr. basic aspect of our foreign policy. nation, much as well-gorged birds of prey Bruce sought -the objective of improved This morning, the very crucial discus­ when the carrion is plentiful. relations between the two countries. · sions regarding Britain's rapidly dwin­ But eventually; as is the habit and nature Those of us who have had.opportunity dling financial reserves commenced be­ of preying creatures, they fell to quarreling to know intimately Mr. Bruce and the tween our representatives and the repre­ . over the dwindling spoils, and first Hitler other members of that well-known fam­ sentatives of the Canadian and British ran the Russians out of the despoiled land ily who have been. so outstanding in and then Stalin ran the Germans out-and Governments. The British crisis has to this day the Polish people are the slaves Maryland affairs these many years will been caused by many factors; but it is · Qf their despoilers. join wholeheartedly in congratulating clear to me that if we had not had a In the beginning it did not make any dif­ Mr. Bruce upon the results of his efforts workable trade-agreements act in the ference to the Poles whether they were in.the in Argentina, and wish him unbounded past, the crisis would have come sooner German zone of occupation or the Russian success in the years to come. and in an even more critical form than it zone, for they were mere beasts of the field I ask unanimous consent that the edi­ appears today. It is only by lowering the to both. torial from the New York Times be print­ barriers to world trade that we can hope In the later phases of the war it did not make any difference to the Poles whether the ed in the body of the RECORD as a part of to create the kind of world in which these ·Germans held the whole country or the Rus- my remarks. recurring crises can be minimized and, •sians, for in either case the lucky Poles were There being no objection, the editorial it is hoped, eventually eliminated. House -those who died quickly and the un.Jilcky ones was ordered to be printed in the RECORD, bill 1211 is very pertinent indeed to the were those who· lived on in torment and as follows: talks which commenced this morning despair. [From the New York Times of September 7. in the city of Washington. Finally, it has never made any difference to 1949] This bill does not provide for any radi­ the Poles that the war ls over, for though cal innovations in our approach to or peace and liberation and the opportunities AN AMBASSADOR RETIRES for rehabilitation came to most of the rest James Bruce served 2 years as United States handling of tariff matters. Fifteen of the world, even to the defeated enemy na­ Ambassador to Argentina, and, taken on the years ago the Congress passed the Trade tions, the occupying Russians still remained whole, relations between the countries are Agreements Act of 1934 in essentially the in Poland and the people of Poland still were .the better for it. Bringing what he himself same form as it comes before the Senate slaves-and_ still are to this day of accusinc described as the "approach of a businessman today. In June of 1937, th.e authority .memories. to a very important economic problem," Mr. was extended for another teqn of 3 years, Today there ls not an inch of Polish soil Bruce sought first and foremost the freeing and again in 1940. In 1943 the authority that is free, and in the whole of the anguished of the Argentine economy from controls and land there ls not a man or woman or child restrictions which he felt hampered the na­ was extended for 2 years, and in 1945, for of Polish blood with the right to be free, al­ tion's progress as much as it exasperated all 3 years, with a broadened power to re­ though freedom ls their heritage. foreign and most domestic traders. While duce rates. Commencing as a new and And we have just observed the tenth an­ opposing on principle some of the major untried method of modifying tariff rates, niversary of the Great War, which began in agencies of the Peron regime-notably IAPI, the act and the resulting program car­ Poland, and has ever since been waged so the Argentine Institute for Trade Promo­ ried out under the act have gradually wantonly, first by the Germans and the Rus­ tion-he retained the unmistakable friend­ won the understanding and support of sians in their evil partnership, and later and ship of the President. This was a notable the great majority of thoughtful Ameri­ even now by the Russians alone. achievement in a country where, as Mr. Bruce The free world was once proud of Poland fully realized, criticism ls often taken as cans in all walks of life. for standing against the invaders until its stiffiy as opposition itself. Today the administration of the trade cities were rubble and its people were help­ It was Mr. Bruce's opinion that, once the agreements program is recognized as an less in their chains, and it was grateful to Argentine economy was liberalized, the in­ outstanding example of efficient coopera­ Poland for the precious time given at this ternal circumstances in general would tend tion between the various agencies and de­ terrible price fo. .- defense preparations. · to improve. As a natural sequel, he felt, partments of the Federal Government 12616 CONGRESSIONAL RECORD-· SENATE. SEPTEMBER 7·_ and the public. The procedures which cannot proclaim the results of the nego­ some competition in the present-day have been developed over 15 years· make tiations to be in effect as they concern world. In all Europe no country has use of a wealth of information and facts the United States tariff rates. Every day ever mastered the art of mass produc~ gathered by not one, but eight separate that passes without passage of this bill tion, save Germany alone.' Germany agencies or departments of the Federal adds credence to the fears of :(oreign and Japan most nearly approached the Government. The procedures provide countries that we preach world coopera­ mastery · of the art of mass production. for public hearings, at which any inter­ tion, but do not intend to make it real Without mass production Europe cannot ested member of the public may submit in terms of concrete performance. be a dangerous competitor to us at the additional facts; and for the dissemina­ The total stake of the United States present time. tion of these facts to the responsible offi­ in foreign. trade is immense, aggregat­ Even the current rate of imports is cials who make the final recommenda­ ing over $20,000,000,000 per annum. Last said by some persons to threaten the very tions to the President. Careful study year our exports totaled $12,600 ,000,000. existence of American industry and and painstaking analysis over a period of During the current year our exports are American agriculture. It cannot be as­ months by experts, who.have spent years running at a rate slightly in excess of sumed that the ideal solution would. in this work, precede final decision. the 1948 rate. So far this year our ex­ be to reduce our imports still further, to, Actual determination of tari:fI rates has ports are running at the annual rate of say, about half their present level, con­ been completely divorced from politics in $13,000,000,000. TLese exports are of tinue exports at the current rate, and the old sense for the first time in Ameri­ vital importance to every section of the make up the difference by granting larg­ can history. country. er dollar appropriations to the Euro­ Modifications of the tariff have been Last year $1,300,000,000 worth of wheat pean recovery effort. made only on a selective basis after care­ was exported from our wheat-growing The fact that after 15 years of the ful scrutiny of all the available facts. States. One hundred and fifty million trade-agreements program imports are An escape clause has been incorporated dollars worth of milk and cream, $70,- still running at about 50 percent of ex­ in all recent trade agreements and will 000,000 worth of lard, $61,000,000 worth ports seems to indicate, at least, that the be incorporated in all future agreements. of dried and evaporated fruit, a half powers delegated to. the Executive in the This clause provides a positive assurance billion dollars' worth of cotton, $78,000,- original Trade Agreements Act of 1934, that American industries will "be pro­ 000 worth of peanuts and $200,000,000 have been used with moderation, not al­ tected against serious injury from in­ worth of leaf tobacco were sold to for­ ways, of course, to please individual pro­ creased imports resulting from conces­ eign countries. We shipped almost $300,- ducers in the United States. But on sions and from unforeseen events. The 000,000 worth of cotton cloth and over the whole, I repeat, these facts certainly administrative procedure established for $300,000,000 worth of iron and steel prod­ demonstrate that the powers given to the operations of the escape clause pro­ ucts to foreign customers. A $13 ,000,- the President in t:tie 1934 act and Ctim­ vides that investigation of any com­ 000,000 market for American farms and tinued under the several renewals to plaint under the clause shall be made American factories at a time when sur­ which I have referred have been used by the Tariff Commission,. reporting pluses are appearing in many areas of with very great moderation. directly to the President. the economy is a matter of vital concern At no time during the life of the trade­ The Wall Street Journal, never re­ to everyone. If we were entering a boom agreement program has this country garded as an apologist for ·the present period in the United States, with a large, been swamped by imports, and I -can administration, in an editorial on June effective demand unsatisfied, exports see no indication on the basis of what 22 said: would not assume the significance they has happened in the past 15 years that We think it is safe to assume that the do at the present time. in the foreseeable future under this pro-. escape clause can be made effective to pre­ Concessions from foreign countries gram, using the tried and tested pro­ vent serious injury if our Government uses have been won, under the trade-agree­ cedures prov:i.ded for in House bill 1211, it, and is known to be ready to use it, ment program, for almost every major imports will seriously injure or threate~ promptly and with vigor. American product which requires export serious injury to domestic producers. · ·· If any criticism can be directed at markets. Duty reductions, enlargement Despite this record, last year the the Government in respect to the use of tariff quotas, and guaranties not to Eightieth Congress paid heed to the oft­ made of the escape clause, it may be said raise rates, have been obtained for thou­ repeated but groundless expression of the Government has not at all times sands of items. Under the · general fears by the opponents of the trade~ indicated its purpose vigorously and agreement, a commitment has been se­ agreements program. A significant pro­ promptly to use the escape clause. cured from 22 countries not to raise their cedural change was incorporated in the The results achieved under the pro­ preferences against American goods and Trade Agreements Extension Act of 1948 gram speak for themselves. Trade to gradually lower the margin of prefer­ and the authority was renewed only for agreements have been concluded with 42 ence as they reduce their duties. These 1. year. This procedural change requires foreign countries which, with the United are important advantages for American the Talii_ff Commission to make a so­ States, in 1947, accounted for over four­ industry in the years ahead, and should called peril-point report to the Presi.. fifths of total world trade or commerce. never be underestimated. dent. It is expected that an amendment The most recent achievement is the So much for the export side of the sit­ will be offered for the retention of this General Agreement on Tariffs and Trade uation. In order to sell anything like important procedural change, first made concluded at Geneva in 1947 among 23 this vast amount abroad, our foreign last year. · Therefore, before the amend­ of the principal trading nations of the customers must have access to dollars. ment is offered, I should like to say that world. The general agreement is con­ They can get these dollars by earning I believe the peril-point report is to­ sidered to be the most comprehensive them or by our giving them. . We prefer tally unnecessary, that the computation and successful effort to reduce world to have these customers earn their it calls for cannot .be done with scien­ tariff barriers that has ever been made. dollars. But at the present time we are tific accuracy, and that the requirement It represents the culmination of years of importing only at the annual rate of that it be done is heavily slanted toward planning, training and experience under $6,500,000,000, about half as much as we the protectionist, and only the protec­ the trade agreements program, and is export. tionist, aspect of the trade-agreement an outstanding example of the results of The recent decision of the British Gov­ program. It will be a very significant American leadership in the postwar ernment that they are required further fact if all the traditional opponents of world. to curtail purchases from the United the program agree to support thi$ A week ago last Saturday, in Annecy, States is a very important indication of amendment. They consider it a step in France, American negotiators with ex­ what will happen to our exports if we con­ the right direction. What direction? perts representing 33 other countries tinue to import half as much as we ex­ Certainly not forward. Certainly it is concluded the technical phase of a 5- port. In order to sell we must buy. a backward step, if the world is to trade month effort to expand the general In order to discontinue gifts to Eu­ and if it is again to effectuate a com­ agreement and bring under its provi­ rope we must. give Europe -the opportu­ plete recovery. sions 11 additional countries. Passage nity to earn. Surely the world's gr~at­ During th,e. fust 6 months of this year, of House bill 1211 is a vital necessity to est producing Nation, .and, at the same in many areas of our economy, the sell­ the completion of their wQrk. Without .time, t_he world!s greatest credito.r, has ers' mark;et which had ~:xiste~ so Jong the authority of the act, the President no fear, or ~hould have no fear, of whole- tµrned into ~ buyers' m~rket---a . ~Qng:- 1949 CONGRESSIONAL RECORD-- SENATE 12617 expected adjustment. Some prices de­ to come, that 1f this bill is passed this Na­ very serious international economic and clined as a result and there was some tion will be .on the upgrade financially, eco­ politipal problems which confront us in unemployment. These developments nomically, and commercially within 30 days, the months ahead. . and that wit~in .a year from this time we affected certain regions of the country shall have regained the peak of prosperity The solution of these problems is inti­ more seriously than others. However, and the position we lost last Octobez:. mately connected with this bill. The the fundamental factors in our economy trade agreements program cannot be were sound and there are now unmistak­ The quotation I have read was from considered in isolation from the Euro­ able indications, multiplying every day, Senator · Watson, of Indiana, a gentle­ pean recovery program and the Atlantic that the downward spiral has been ar­ man of whom I think in a kindly way Pact. All three are intrinsic and co­ rested and that in most of the industries always. hesive parts of our over-all foreign policy. which were affected; the trend is upward Mr. ROBERTSON. Mr. President, will All three are designed to create the basis again. Men are being called back to the the Senator from Georgia yield? · pf that economic and political stability factories, new orders _are coming in ~ · 1:\fr. GEORGE. I yield to the Senator without which there can be neither peace prices have firmed .and in many in­ from Virginia. nor progress toward peace. Let no one stances actually increased. The over:-all Mr. ROBERTSON. Instead of being belit.7e for a moment -that the purpose picture is again a favorable one. on the upgrade in 30 days, is it not a fact of the Atlantic Pact can be attained with­ There has been much talk and many that within 30 days about 30 nations had out a solid basis of economic health. claims that imports were the primary started retaliation against us that put Reduction of trade barriers and the ex.:. cause for the price declines and othe:r: dif­ us and the whole world definitely on the pansion of world trade are basic pre­ ficulties which faced some industries a downgrade? ·' - requisites to the solution of the economic couple of months ago. I wish emphati­ _- Mr. GEORGE. The enactment of the problems facing the "free world." Hun­ cally to refute these claims. To my Smoo~-Hawiey tariff did im.questionably gry, unemploy_ed, and poverty-stricken knowledge-and I have been close to tar­ provoke retaliation, and retaliatory s~eps peoples can never become . dependable iff matters for a great many years­ were taken in all quarters of the globe. allies in the crises that may lie ahead. · there is little evidence in some cases and To say the least of the Smoot-Hawley we·are being carefully watched today absolutely no evidence whatsoever . in Tariff Act, it was like a fire bell in the from all the capitals of the world. The most cases that imports were in any way n_ight, that c;ontributed very largely to bill before us is not just a domestic responsible for the recent probfems faced the sµbsequent depression through which measure, but a very important interna­ by various industries throughout the we passed. tional step toward a reasonable solu­ country. Imports are a convenient arid popular . tion to the dollar shortage problem, the Representatives of the textile indus­ scapegoat on which to hang the blame for sterling problem, and the continuation try, to take just one example with which the results of bad business judgment, of of our own prosperity. I hope we shall I am more familiar than I am with most overexpansion .of certain productive fa­ have the wisdom to meet this issue other industries, exhibited considerable cilities, and· of competition both within squarely, and without partisan prejudlCe. concern about imports. Their produc­ a domestic industry .and between similar . - Mr. President, I wish to revert for a -tion declined moderately. from the peak products of two domestic industries. Im­ . moment to the importance of e~port reached a year or so ago and, ·of course, ports have ev~n been blamed for drops in markets today. This country is so imports were cited as a cause. ·On the sales actually· caused by consumer re­ blessed with abundance of physical. and 14th of June the Journal of Commerce sistance to ·high prices. One of the pri­ financial resources, and-with such a gi- carried an article which stated that mary causes has been the lack of effec­ . gantic productive machine, that little United States textile imports in April tive purchasing power, and natural con­ thinking goes into our foreign trade prob­ dropped to a new postwar dollar low and sumers'· resistance _to prices that were lems. We ~re reminded that our exports showed a -decline in nearly all items from high, are l}igh, and even now are tl:lreat­ are insignificant and amount to only .$74,000,000 a year ago to $48,000,000 this ening to take an upturn in the case of about 9 percent of our .total production. year. some commodities and articles. · As ·I said in the opening of my . re­ The· trend of imports as revealed by As s.oon as some section of an industry marks, if we were entering a boom period, . the April figure could hardly be c