ment of the Senate to the following bills The Senator from North Carolina [Mr. SENATE of the House: GRAHAM], the Senators from Alabama [Mr. HILL and Mr. SPARKMAN]. the Sena TuESDA Y, APRIL H. R. 1861. An act for the relief of Eliza 25, 1950 beth and Lawrence Wong; tor from Wyoming [Mr. HUNT], and the H. R. 4857. An act for the relief of Mrs. Senator from Florida [Mr. PEPPER] are ADVERTISING OF LI~UOR, · BEER, AND an editorial entitled "Regulatory Madness," There being no objectjon, the resolu WINE-LETTER .- FE.OM MRS. : R. H. published in the Bos.ton Herald of April 17, tion was ordered to be printed in the SORJ.i!NSEN 1950, which appears in the Appendix.] RECORD, as follows: [Mr. LANGERt asked and obtailled leave PORT AND PLAYGROUND OF THE SOUTH- "Resolution relating to extension of Wiscon to have printed in th& RECORD a letter from .WEST-ARTICLE FROM THE HOUSTON _sin Central Airlines temporary certificate Mrs. R. H. Sorensen, and an article enclosed, CHRONICLE of public convenience and necessity with regard to advertising ot liquor, beer, [Mr. JOHNSON of Texas asked and ob "To the Civil Aeronautics Board: and wine, which appears in the Appendix.) tained leave to have printed in the RECORD "The Wisconsin State Aeronautics Com ORR OIL WELL-EDITORIAL FROM THE an article entitled "Port and Playground of .mission respectfully requests that favorable v.-ooD COUNTY DEMOCRAT the Southwest," written by Don Hinga, and consideration be given to the application of published in the April 12 issue of the Hous Wisconsin Central Airlines for renewal or [Mr. MARTIN asked ·and obtained leave ton Chronicle, which appears in the Ap extension of its Temporary Certificate of to have printed in the RECORD an editorial pendix.] Public convenience and Necessity, on a regarding the Orr oil well, from the Wood permanent basis, or on such other basis as County Democrat, of Quitman.. Tex., the RENEWAL OF FRANCHISE OF WISCONSIN the board may deem advisable. issue of April 20, 1950, whtch appears in CENTRAL AIRLINES "The Wisconsin State Aeronautics Commis the Appendix.] Mr. WILEY. Mr. President, there is sion firmly believes that Wisconsin Central DECLINE IN AMERlCAN SHIPPING now pendi115 before the Civil Aeronau Airlines bas demonstrated in a very posi ARTICLE BY J. S. ARMSTRONG tics Beard, an important matter vital to tive manner the value of interstate feeder airline service,. to Wisconsin, and the obvi [Mr. O'CONOR asked and obtained leave the future of my State-t~e renewal of ous potential that exists for this type of to have printed in the RECORD an article the temporary certificate of public con service. The Wisconsin State Aeronautics relating to the decline in American ship venience and necessity of Wisconsin Commission further believes that it would ping, written by J. S. Armstrong, financial Central Airlines. The Badger State has be a tragic mistake to deny the extension of editor of the Sun, and published in the always been aviation-minded, and fur Wisconsin Central Airlines' Certificate, and Baltimore Sun of April 23, 1950, which nished more a via tors to the Army Air would do irreparable harm to air transporta appears in the Appendix.] Forces during the war than did any tion in Wisconsin and the -Nation. MEETING OF AMERICANS AND RUSSIANS other State in the Union except the "This company, which commenced sched AT THE ELBE-STATEMENT OF JOSEPH much more populous State of Texas. uled operations hardly more than 2 years ago, has provided a remarkable and continu P. POLOWSKY Moreover, Wisconsin business is avia ally expanding air transportation service to [Mr. DOUGLAS asked and obtained leave tion-minded,.recognizing that air freight the people of Wisconsin, in spite of ex to have printed in the REcbRD a statement and air travel are indispensable to the tremely limited airport fa.cillties, over which entitled "The·-Oath at the Elbe," by Joseph America of 1950 and of the years to it has had no control. P. Polowsky, together with an introductory come. "When Wisconsin Central Airlines began statement by hlm which · appear in the I have been in contact, therefore, with operations, the company was compelled to Appendix.] the Civil Aeronautics Board on behalf use a small type of aircraft adaptable to the of the permanent renewal of the fran existing airports rather than a larger air THE OWEN LATTIMORE CASE-EDITORIAL craft which would have been more suitable FROM THE RAP~D CITY JOURNAL chise because it is unthinkable that Wis for· the traffic potential available. [Mr. MUNDT asked and obtained leave to consin should be denied this crucial "At the time operations were started, only have printed in the RECORD an editorial feeder air-line service. five of nine airports to which the company entitled -"Not Disloyalty, Just American During last year, 33,000 passengers inaugurated service in Wisconsin had paved Tragedy,'' from the Rapid Gity (S. Dak.) were carried by the company. Twenty runways; two of the nine airports had lights; Journal, which appears in the Appendix.) iv:-o thousand ton-miles of express was and only three of the nine airports had per manent administration buildings. COMMUNISTS IN GOVERNMENT carried. Wisconsir. Central Airlines has, moreover, now in operation a complete "After certification of Wisconsin Central [Mr. MUNDT asked and obtained leave to Airlines, and establishment of service by the have printed in the Appendix o~ the RECORD network of radio and navigation aids company,_the municipalities served were en .an editorial regarding Communists in Gov which enable it to assure safe, unbroken couraged to proceed with airport improve ernment, from the Aberdeen (S. Dak.) Ameri service to some 26 cities through 20 air ments for which they had plans but did not can-News, which appears in the Appendix.) ports, including 5 cit~es in the Upper feel warranted in making until scheduled air service was assured. TRIBUTE TO THOMAS JEFFERSON BY Peninsula of Michigan. "During the past 2 years, WJsconsin cities HARRY H. SCHLACHT The company employs 207 people, of whom 81 percent are veterans of World on the airline routes have been carrying out [Mr. WILEY asked and obtained leave to their plans for needed improvements for have printed in the RECORD an editorial pay War II. better service, so that now seven of nine air ing tribute to Thomas Jefferson, by Harry H. Folks from all the cities served by Wis ports have paved runways and the remaining Schlacht, which appears in the Appendix.} consin Central have appealed to me and . two will be paved by August 31, 1950. All to other - members of the Wisconsin nine airports now are lighted; five airports REGULATION OF THE MOTION-PICTURE ~elegation for the franchise renewal. have permanent airline station facilities, and INDUSTRY-STATEMENT BY SENATOR For -example, the city of Stevens Po.int one facility will be constructed this year; WILEY has invested-including Federal, State, plans have been tentatively considered at [Mr. WILEY asked and obtained leave to and local funds---$245,000 in money to two other airports. have printed in the RECORD a statement pre assure the finest possible airport service "By the fall of 1950 the handicaps which pared by him regarding an invitation to faced Wisconsin Central Airlines in 1948 with for Wisconsin Central; and that situa respect to airports will be removed, which appear before the Committee on Interstate tion is paralleled by other community and Foreign Commerce to testify, which ap will enable the company to utilize more suit pears in the Appendix.] efforts throughout Wisconsin. All the able aircraft to develop the potential on its cittes on the route-Eau Claire, Wiscon routes that is known to exist." SOIL CONSERVATION DISTRICTS ARE sin Rapids, Menomonie, Marinette, Moved by Dr. L. O. Simenstad that the fore DEMOCRACY AT GRASS ROOTS-EDI· Wausau, Rhinelander; Green Bay, Clin going resolution be adopted by the St at e TORIAL FROM THE SAN MARCOS REC· tonville, Oshkosh, Superior-Duluth, Mil Aeronautics Commission, and that copies ORD waukee, Madison, anci. so forth-depend thereof be sent to the Civil Aeronautics Board, Wisconsin Congressional Representa [Mr. JOHNSON of Texas asked and ob· vitally on this service, and their eyes are tives, all cities on the routes of Wisconsin tained leave to have printed in the RECORD on the Civil Aeronautics Board. Central Airlines, and all dally newspapers in an editorial entitled "Soll Conservation Dis I have received a resolution, conveyed Wisconsin. tricts Are Democracy at Grass Roots," pub by George B. Burdick, assistant secre Motion seconded by Dr. Alvin G. Sell. lished in the April 21 issue of the San Marcos tary, adopted by the Wisconsin State Carried unanimously. Record, which appears in the Appendix.] Aeronautics Commission; appealing for CERTIFICATION REGULATORY MADNESS-EDITORIAL the franchise renewal. I ask unanimous I hereby certify that the foregoing reso FROM THE BOSTON HERALD consent that this resolution ·may be lution is a true and correct copy of the reso . [Mr. JOH~SON of Texas asked and ob· printed at this point in the body of the lution adopted by the Wisconsin State Aero tained leave to have printed in the RECORD RECORD. nautics Commission, meeting in regular '5678 CONGRESSIONAL RECORD-SENATE APRIL 25 ~ession at Madison, Wis., on Friday, April 14, give support. I am afraid such a failure guished themselves by their progress toward 1950. would be picked up and used to the discredit national stability and a self-sufficient GEORGIA B. BURDICK, of the United States. economy. Assistant Secretary. I am acquainted with many who have a More so tlian any other nation in the world, MADISON, WIS., April 17, 1950. close personal knowledge of the fund's or let it be emphasized, has Israel discharged ganization and the work it is doing. I am its humanitarian responsibility with regard CHILDREN'S AID BILLS-EDITORIAL COM· impressed with the businesslike and efficient to the unfortunate displaced persons of the MENT AND COMMUNICATIONS way in which this humanitarian undertak· Jewish race who were the object of such Mr. HENDRICKSON. Mr. President, ing is carried on. I doubt if our country harsh treatment and such untold sufferings on behalf of my colleague, the distin has ever spent money to a better cause than at the hands of both Nazi Germany and it has done in getting milk and other aid Soviet Russia. guished senior Senator from New Jersey to millions of children throughout the world. It would be too much to expect that, in [Mr. SMITH], I wish to invite the atten Your help in this matter will be appre the span of 2 years and in the face of the tion of the Senate to an editorial printed ciated. tremendous difficulties encountered on in the April 3 edition of the Hudson Dis Sincerely yours, every hand, Israel would now be free of patch, of Jersey City, entitled "Crowley EDWARD P. CROWLEY, troubles. As a matter of fact, there is grave Urges United States Back UN Children's President. concern among its inhabitants and its friends throughout the world over the reported Aid Bills." feverish rearmament program of the sur In the same connection, I call the APRIL 4, 1950. Hon. ALEXANDER SMITH, rounding Arab states. Following inquiries to attention of the Senate to two commu United States Senate, the State Department, I am informed that nications addressed to my distinguished Washington, D. c. · there need be no concern in this respect, that colleague; one under date of March 31 · DEAR SENATOR SMITH: The General Feder both Israel and her Arab neighbors are free from the Jersey City Junior Chamber of ation of women's Clubs has been very much to import arms and munitions necessary for Commerce, over the signature of the interested in the United Nations agency, internal security. . President of that body, Mr. Edward P. UNICEF. We understand that this spring Nevertheless, the feeling persists in Israel Crowley; the other under date of April 4, UNICEF will practically go out cf existence, and elsewhere that the Arab states have far . although some of its funds may be available greater access to supplies of arms, and are over the signature of Dorothea D. Buck, for use for another 6 months. importing implements of warfare in quanti president of the General Federation of we agree with those who are advocating ties which would seem far beyond any rea Women's Clubs. the setting up of a perm:.ment agency for sonable requirements of internal security, I ask unanimous consent that both of children in the United Nations. Such a pro It is to be hoped that the officials of our State these communications, together with the gram surely must be carried out, but such Department, and O'Qr representatives in· the editorial to which I referred, be placed things move slowly, and while the agency is United Nations, will watch . this particular in the body of the RECORD at this point being organized we fear that work for the phase of tl;le Near East situation closely, to children may suffer in · the interim. There the end that the uns.table and' uneasy peace in my remarks. fore, we should like to ask that appropriations now prevailing there be not permitted to ex There being no objection, the matters for UNICEF be granted for one more year. plode into a conflagration that might easily were ordered to be printed in the REC · The work for children seems to me ex engulf the whole world. ORD, as follows: · tremely important from every point of view, Ou such an occasion as this it affords me even including that of containing com the , utmost satisfaction to accord to the [From the Hudson Dispatch, Jersey City, leaders and the· people of Israel sincere felici· N. _J., of April 3, 1950] munism. Of course, some of the emergency for children is over but the worlr that will tations on the extraordinary progress that CROWLEY URGES UNITED STATES BACK UN be don~. if UNICEF is retained for another has been made, and to extend to them the CHILDREN'S AID BILLS year, would be in such areas perhaps as utmost good wi~hes for increased progress warning against a walkout by United southeast Asia, where the condition is and continued security. States from United Nations' International chronic. Having visited these areas myself Long Iive Israel. Children's Emergency fund, Edward P. Crow recently, I know the need of American aid ley, president of Jersey City Junior Cham ·in order to actually combat communism Mr. O'CONOR. Mr. President, in the ber of Comrperce, yesterday threw full sup_ from taking over those underprivileged parts editorial columns of the New York Times port behind two bills now before Congress of the world. of Sunday, April 23, 1950, deserved trib bearing upon the fund's future. . I earnestly hope that you will use your in ute was paid to the signal accomplish These bills, S. 2920 and H. R. 7743, intro fluence in having UNICEF supported for one ments of the State of Israel in the 2 years duced respectively by Senator ROBERT A. more year, or until such time as a permanent of its existence. TAFT, Of Ohio, and Representative ABRAHAM organization can be set up within the United I ask unanimous consent that the edi A. RIBICOFF, ·of Connecticut, would make Nations. torial from the New York '.Times be re available for another year an outstanding Sincerely yours, authorization of $25,000,000 for the continu DORTHEA D. BucK, printed in the RECORD .. ation of the fund's world-wide work for Mrs. J. L. Bl~.ir Buck, There being no objection, the editorial needy, sick and homeless children. President. was ordered to be printed in the RECORD, "Let it n;-ver be said of the people of the SECOND ANNIVERSARY OF INDEPEND· as follows: United States," said Crowley, "that they were ENCE OF ISRAEL ISRAEL'S SECOND BIRTHDAY the first to withdraw their support from Today Israel celebrates the second anni this international effort that has already Mr. O'CONOR. Mr. President, I ask versary of its establishment as a free and made an honored name for itself throughout unanimous consent to have printed in independent state. Born in the. fires of war, the world. It has had very little to spend, the RECORD a statement I have prepared surrounded by enemies, attacked by neigh· relatively speaking, only the smallest part congratulating Israel on the second an bors, this little country has earned its place of the money expended by our country for in the world through the courage, endurance, foreign-aid programs, but it has made that ni,versary of her independence. There being no objection, the state and devotion of its people. Its first 2 years little go a long way in getting relief to chil have been tempestuous; and while Israel's dren. And, in doing · the job it has built ment was ordered to be printed in the difficulties and sacrifices are by no means up an enormous store in the world's good RECORD, as follows: over, there is no longer doubt-if there ever will, in which the United States shares." STATEMENT BY SENATOR . O'CONOR was any-that here is a nation founded upon In these times of internal unrest when RO rock and not upon sand. THE JERSEY CITY JUNIOR ·many long-established nations are finding it In the last 12 months, perhaps the develop CHAMBER OF C ')MMERCE, extremely difficult to rehabilitate and stabi ment of most immediate significance to Jersey City, N. J., March 31, 1950. lize their economic and political economies, Israel has been the stabilization of the mili The Honorable H. ALEXANDER SMITH, there would seem to be special significance tary situation. The armistice agreements Senate Office Building, · to the week-long celebration now being ob have held firm; and if there is no peace, at Washington, D. C. served throughout the United States to mark least there is no war. But of greatest long MY DEAR SENATOR SMITH: We understand the second anniversary of the proclamation range importance to the new state is the that Senator TAFT has introduced a bill (S. _of independence of Israel. As one of the human tide of immigrants that has con 2920) in support of the United Nations Inter newest nations of the world, Israel has made tinued to sweep through its open gates. national Children's Emergency Fund. We remarkable progress during the 2 years of its Israel now has nearly 1,300,000 people, of trust you will lend your support to this formal existence. Despite the scars left by whom almost 400,000 have ari'ived since the measure for the fund which, in the opinion the bitter struggle to defend her borders, and spring of 1948. of many of us, has done a rt:.murkably fine under the further handicap of a constant The pressures on this infant nation-not job in the international field. flow of immigrants from the displaced-per least of which is the military threat from its It would be a pity if this work came to an sons camps of Europe, and elsewhere, the Arab neighbors-have imposed an almost un end through the failure of our Congress to leaders and the people of Israel have distin- bearable strain on its economy. .Outside 1950 CONGRESSIONAL RECORD-SENATE 5679 help is still essential. That help has been CONFIF..MATION OF NOMINATIONS TO procedure in the courts, their nomina freely given, both from private sources and THE TAX COURT tions should follow the regular order. from such public bodies as the Export-Import Mr. GEORGE. Mr. President, as in But in view of' the statement of the dis Bank, which has made a $100,000,000 loan to tinguished Senator from Georgia, for Israel. Industrial and agricultural produc executive session, I report favorably from tion is increasing; but there is still a long the Committee on Finance the nomina whom I have the profoundest respect, in economic row to hoe. Meanwhile, the prob tions of three of the judges of the Tax the emergent situation he sets forth I lem of earning a living has not blinded the Court, and I ask unanimous consent for shall not interpose objection at this time, state ·to its first responsibility: its children. the present consideration of the nomina and therefore do not object to the im Education ls now compulsory for all, Arab tions, for the following reasons: medjate consideration of the nomina and Jewish, between the ages of 5 and 13. The three judges nominated are the tions. While Israel has not been faultless in every Mr. GEORGE. Mr. President, I thank aspect of its relations with the UN, it must Honorable John W. Kern, of rndiana, be recognized that it has been forced to live Hon. Charles R. Arundell, of Oregon, the Senator. I would not make this re almost from one crisis to another, and in a and Hon. Clarence V. Opper, of New York. quest if the judges were not already in bitterly hostile environment. Israel is un Each of these judges is now in service, service, and if they had not heretofore questionably a shining outpost of democracy and has been in service for quite a length been confirmed. in the Middle East, a proud and independent of time. They have been endorsed by The VICE PRESIDENT. Without ob nation . to which its many friends in the the Senators from the States from which jection, the clerk will state the nomina United States wish a happy birthday, with they come, and since the court has an tions. long years of peace and prosperity to come. enormous volume of work before it, and The legislative clerk read the nomina Mr. KILGORE. Mr. President, I ask has to assign hearings in different parts tion of John W. Kern, oi L~diana, to be unanimous consent to have printed in o.r the country, it is of course proper and a judge of the Tax Court of the United the RECORD a statement I have prepared advisable, and almost necessary, that the States. on the second anniversary of the inde nominations of these present judges be The VICE PRESIDENT. Without pendence of the state of Israel. confirmed at the earliest possible time objection, the nomination is confirmed. There being no objection, the state in order that they may go to the various The legislative clerk read the nomina ment was ordered to be printed in the parts of the country to which they have tion of Charles R. Arundell, of Oregon, RECORD, as follows: been assigned. to be a judge of the Tax Court of the One of the golden threads in the fabric of The nominations of these three judges, United States. American history has been American aid and all of whom are now in service, as I have The VICE PREDIDENT. Witho12t ob support for oppressed peoples who would said, were unanimously reported favor jection, the nomination is confirmed. fight for their freedom. Our own independ ably by the Committee on Finance. No The legislative clerk read the nomina ence was won with the aid of foreign blood objection has been filed, and I therefore tion of Clarence V. Opper, of New York, and treasure sacrificed in the universal cause ask unanimous consent that as in execu of freedom, and we were still a young and to be a judge of the Tax Cour11 of the struggling nation when Benjamin Franklin tive session the nominations may be United Sta'~ 3S. said, "Where liberty is, there is my country." presently considered, and, if confirmed, The VICE PRESI!JENT. Without ob It is altogether fitting and proper, there that the President be notified at once. jection, the nomination is confirmed; fore, for Americans to salute one of the great The VICE PRESIDENT. Is there ob and, without objection, the President will anniversaries in the history of human free jection? be immediately notifJd of the confirma dom. Two years ago, another nation con Mr. WHERRY. Mr. President, will the ticns. ceived in liberty and dedicated to the propo distinguished Senator from Georgia tell sition that all men are created equal was the Members of the Senate whether it WINNING THE COLD WAR IV born. After an interval of 20 centuries, the is absolutely necessary that the . judges Mr. FLANDERS. Mr. President, to Jewish people kept their rendezvous with destiny when the state of Israel declared its be confirmed today, rather than that the day, April 25, is the fifth anniversary of independence. nominations take the regular procedure? two of the greatest events in the lifetime In all history no nation had ever assumed Mr. GEORGE. I am able to say that o! any now living. Five years ago today so heavy a burden. Yet this new struggling it is very proper. The chief judge has the United Nations Conference held its state was not content merely to fight for advised me that assignments have al-· opening session in San Francisco. Five survival in war and to find bread for its ready been made, bu~ that the . judges years ago today a patrol group of the immigrants. In the spirit of the great ren would hesitate to go to hear cases, or he American Army and a small detachment dezvous to which it was dedicated, it under would hesitate to request them to go, of Russian soldiers met and clasped took at the same time to build the political until their nominations were acted upon. hands on the banks of the Elbe River in cornerstone of the ·new state. It dared to convene a constitutional assembly. It dared I therefore think it is necessary that the Germany, It was a strange chance, and to write a new constitution. Senate act at this time. it should turn out to be a happy chance, One might have expected that the con Mr. WHERRY. Was there a full that these great events took place simul stitution would be some makeshift affair, membership present when the unani taneously. some loose "Articles of Confederation" to ac mous reports were ordered by the com · There came into my office last Friday commodate the many shades of political mittee? and again this morning, former Pvt. opinion in Israel. One might have expected Mr. GEORGE. A reasonably full Joseph Polowsky, of Chicago. Mr. the constitution, born in time of war, to membership. Polowsky was one of six Americans com exalt military authority, to exact conformity, Mr. WHERRY. So that the distin manded by Lt. Albert L. Kotzebue who in the name of patriotism, to subordinate guished Senator would say there was no made that first unofficial but historic individual freedom to the security of the opposition? fledgling state. But Israel is no comfort to contact w;th our eastern allies. the expectations of the narrowly practical, Mr. GEORGE. There was no opposi It was a tragic meeting in view of the cautious, the calculating, the realistic. tion. This is the fourth appointment on mistakes which had led the Russians to That constitution is another achievement the bench of Judge Arundell; Judge bombard a group of refugees, crowded at in human freedom, a beacon not only for Opper, of New York, I think, has received the water's edge, the night befor:;. But the oppressed peoples of the Middle East, two appointments; and Judge Kern, of on the other hand, it was a happy and but for all the world. Blended in the con Indiana, has also served two terms, or is joyous meeting of young men :r 1l of the stitution are the ethical values of ancient serving his second term. He is now the exhilaration of victory. · Far more sig Judea, that exalt the fundamental dignity presiding judge of the court. nificant than that. however. W'.l.S the ex of the person made in God's image; the Mr. WHERRY. Mr. President, I shall guarantees of freedom of speech and con pressed determination that a war like science, of modern democracy, and a recog depart from my regular course about this must never happen again. nition of state responsibility for providing confirmations of . appointees. I still In Mr. Polowsky's words: opportunity for a decent livelihood in this maintain that the nominations of all The greetings took place in the midst or age of world-wide economic fluctuation. judges of civil courts should follow the some 200 corpses of old men, women, and All freedom-loving Americans will join in regular procedure. I stated once on the children. After the preliminary greetings, the hope.that the bond of sympathy between Senate fioor, and I wish to repeat, that the Americans and Russians looked down at America and Israel will grow ever stronger when -it comes to the appointment of the bodies, and fragments of · bodies-espe~ .with. tpe years.. · Federal judges, who handle the judicial cially the body of a child with blue eyes 5680 CONGRESSIONAL RECORD-SENATE · APRIL 25 anrt long brown hair, clutching crayons in the Soviet Union commemorate, with appro responsibility of leading the world to the one hand, a doll in the other. priate ceremonies, the anniversary of April ways of peace, there is no-other factor more At this historic moment of the meeting of 25, 1945, when their armies at the Elbe River important to our own national well-being the nations, all of the soldiers present- and their Governments at San Francisco met than the selection of men of competence and Americans and Russians-swore that they as friends to help open up a peaceful world; integrity for those offices which direct the would do everything in their power to prevent recommends that other states members of destinies of our military establishments. such things from ever happening again, the United Nations join in the commemora swore that the nations --vould and must live tive ceremonies." Mr. President, that utterance is as true at peace. today as it was a year ago. Thus, I again The ti.i;ne has come for the nations to re Mr. President, that great organization take great comfort and encouragement affirm that solemn oath at the Elbe. from which we hope for so much, the in the fact that in selecting a successor As one of the six American infantrymen United.Nations, seems to be resting and to the Under Secretary of the Army, Mr. to make the boat crossing over the Elbe 5 i·usting. In default of making precious Voorhees, the President of the United years ago, ~s one of the American and Rus advances toward international comity, States has so quickly noted the compe sian soldiers to take the oath at the Elbe, I we are watching a tremendous building tence and integrity which I predicted Mr. believe I voice something of the thoughts arise on the shores of the East River in and feelings of all of us on this fifth anni Alexander would bring to his present vernary. New York. We are reading about plans high post. I therefore join in calling upon the 11a for developing the neighborhood which In the light of my prior unqualified tions for a new birth of conciliation and surrounds it. Foiled of spiritual achieve recommendation of this fine American. it friendship, that the oath sworn on the ment, we are trying to take refuge in a will not be difficult to understand why I blood-soaked historic ground at the Elbe great material monument of hopes that feel a sense of genuine satisfaction over River shall not have been taken in vain. have been well nigh abandoned. the fact that Mr. Alexander's nomination Is it inappropriate, Mr. President, to Meanwhile the delegates to the United is before this body for an even higher Nations Conference were meeting in San call the attention of the Senate and of post than the one he is now filling so ably. its Foreign Relations Committee again I predicted a year ago that we of the Francisco. Addressing the delegates at to the resolutions presented by some of that initial meeting, the chairman of the Senate, who had the privilege to act oper.ing session said: its members who are not satisfied to see affirmatively on Archie Alexander's prior the United Nations lose force, lose faith, nomination, would be able to take pride We approach our task humbly, ~ut with and fail of achievement? Senate Reso in the fact that we were adding new united resolution. The prayers of the i;cople 133 of the world are with us. They are spoken lution still rests in the files of the vision. strength, and courage to our in many tongues and in the words of many Foreign Relations Committee. Perhaps Nation's leadership. creeds. But they are as one voice, rising from it is not the best way to reconstruct that So today, Mr. President, as I urge the the tragedy and suffering of war, in prayer great Organization to do something more unanimous confirmation of the nomina for lasting peace. Thus fortified, and with useful and more effective. Perhaps none tion of Archibald S. Alexander to be the guidance of Aln:ighty God, we must and of its provisions are applicable to this Under Secretary of the Army, I say with shall fulfill the purpose for which we have present period of stagnation and decay. come together. · · complete confidence that by again honor If something better can be conceived, if ing him, we also do honor to ourselves. In his message to the United Nations something better can be done, by all For the purpose of the RECORD, Mr. Conference, President Truman asserted means let it be presented and offered President, I ask unanimous consent to that-- for our consideration. The inexcusable include in my remarks the full text of we hold a pc,werful mandate from our thing is that we should allow this cher my statement of last August 8. · people who believe we will fulfill this obli ished dream of peoples of the world to There being no objection, the state gation. We must prevent, if human mind, fade away into unsubstantial mists and ment was ordered to be printed in the hearts, and hope can prevent it, the repeti leave not a wrack behind. RECORD, as follows: tion of the disaster from which the entire But something of hope, something of world will suffer for years to come. strength, and something of practical STATEMENT BY SENATOR HENDRICKSON If we should pay merely lip service to in achievement which was present at that Mr. President, in these trying and turbu spiring ideals and later do violence to sim lent days when our Nation is confronted ple justice, we '\70Uld draw down upon us historic meeting on the Elbe still re with the terrific responsibility of leading the bitter wrath of generations yet unborn. mains today. That was not a meeting the world to the ways of · peace, there is We must not continue to sacrifice the of diplomats. That was not a meeting no other factor more important to our own flower of our youth merely to check madmen, of rulers. That was a meeting of ordi national well-being than the selection of those who in every age plan world domina nary man. Governments did not speak men of competence and integrity for those tion. The sacrifices of our youth today must to governments. People spoke to people. offices which direct the destinies of our mili l~ad, through our efforts, to the building Let us remember that these same men tary establishments. Thus, Mr. President, it for tomorrow of a mighty combination of who spoke to each other, and the hun is not only comforting but it is most en nations founded upon justice and united for couraging to note that the Senate now has peace. dreds of thousands and millions of men, before it for consideration, the name of women, and children who were behind Archibald S. Alexander for the post of As Mr. President, if we look at the world as them, whether in Russia, in Europe, or sistant Secretary of the Army. it lies before us today with too myopic a in North America, have still the same Without reflection upon anyone hereto vision, if we scan the omens with too ma desires-to live in a peaceful world as fore appointed by the President to high terialistic an examination, both these brothers. Let us still remember that office, I know of no nomination made during gre&t events tak:~ on the guise of tragic there are here and there, in spite of re the Truman administration which is more commendable. Colonel Alexander comes failures. Surely cynical disillusion must peated discouragements, fruitful rem from an old and distinguished New Jersey have come first and strongest to the dis nants of a faith that the thing can be family and througP.out his life, he has re appointed youth who fought and suffered done. On that memorable day on the flected the fine traditions of that family. and many of whom died in that conflict Elbe those soldiers talking to soldiers As the one who was privileged to oppose which was to bring peace to the world. swore an oath that it should be done. Colonel Alexander as a candidate for the Yet Joseph Polowslty today has not lost Mr. President, let us, as people talking to United States Senate in the senatorial cam his faith. Again, in his own words, let people, swear the same oath and the paign of 1948, I was not long in discovering thing will be done. that my opponent was a formidable foe. me present his earnest suggestion: This was so because his strength was in his Five years ago today the soldiers of the NOMINATION OF ARCHIBALD S. ALEXAN character, integrity, and his fine gentlemanly world handed the oath of dedication and DER TO BE UNDER SECRETARY OF THE qualities. It is probably safe to say that friendship, sworn in blood, on to the states ARMY there was never a political campaign in the men of the world meeting together at San history of the State of New Jersey which Francisco. The United Nations has been en Mr. HENDRICKSON. Mr. President, was waged on a higher level than the one trusted with the obligation of taking the on August 8 last, in urging the Senate of to which I refer and for this, Colonel Alex· initiative in carrying forward every means of the United States to confirm the nomina ander deserves much of the credit. By train bringing us closer to a peaceful world. It tion of my good friend and neighbor ing and experience, in peace and in war, must be the fervent hope of the nations of Archibald S. Alexander, for the post of Colonel Alexander, as has been indicated, is the world that the General Assembly of the eminently fitted for the high office to which United Nations, as ·it reconvenes in session, Assistant Secretary of the Am1y, I said, he has been nominated. will approve a resolution to the effect that: among other things: In urging the unanimous support of his "The General Assembly recommends that In these trying and turbulent days when nomination by the Senate, I have every each year on April 25 the United States and c1.1r ~ation is confronted with the terrific confidence that the day is not far distant 1950 CONGRESSIONAL RECORD-SENATE 5681 when those of us who enjoyed the privilege On page 56 of the Senate engrossed amend on this subject for a number of years, of acting upon this appointment, will be ment, line 15, strike out "eight" and insert and who, in the last Congress, presented able to take pride in the fact that by our in lieu thereof "fifteen". affirmative vote on this nomination, we On page 57 of the Senate engrossed amend the so-called Kem amendment, which added new visi'on, wisdom, strength, and ment, lines 6 and 7, strike out "one on March was a step toward the final legislation courage to our Nation's leadership. 1, 1953, one <'< March 1, 1955, and one on which is now presented. Commendation March l, 1957" and insert in lieu thereof should also go to the distinguiushed Sen AMENDMENT OF ECONOMIC .COOPERA- "one on May l, 1956; one on May l, 1961, ator from Massachusetts [Mr. SALTON TION ACT OF 1948 and one on May 1, 1966". STALL], and to the chairman of the The Senate resumed the consideration On page 57 of the Senate engrossed amend Armed Services Committee, the Senator of the bill (S. 3304) to amend the Eco ment, line 8, strike out "eight" and insert from Maryland [Mr. TYDINGS], who have nomic Cooperation Act of 1948, as in lieu thereof "fifteen". On page 57 of the Senate engrossed amend given much thought and very helpful at amended. ment, beginning with line 18, strike out all tention to this proposed legislation. Mr. WILLIAMS. Mr. President, I down to and including line 2 on page 58. Many worth-while suggestions have been suggest the absence of a quorum. On page 58 of the Senate engrossed amend made by the Senator from Oregon [Mr. The . PRESIDING OFFICER gress on ·the Marshall plan. This was VII. A MISSOURIAN TAKES ). "SHOW-ME" LOOK have been tried. They show no indications the inception of the plan. AT THE MARSHALL PLAN IN OPERATION of working now in Europe. Trade restric tions, unbalanced budgets, rationing, priori The President said: Recently a number of Missouri farm ties, allocation of matel'.ials, and over-valua In developing this program, certain basic ers returned from an agricultural· tour tion of currencies, all are hindering recovery. considerations have been kept in mind. of several Marshall-plan countries. The These socialistic devices interfere with the .tour was sponsored by radio station natural course of production and commerce, According ~o Mr. Truman: ·KCMO, of Kansas City. rendering futile any help on our part. Any Fir.st, the program is designed to make J. L. Snyder, of Holden, Mo., wrote me further aid we send will also go down the genuine recovery possible within a definite .a very interesting letter about his ob drain unless these countries discard their period of time, and not merely to continue nationalization schemes. relief indefinitely. servations as an on-the-spot observer of -the Marshall plan. The Truman-Marshall plan is conditioned Mr. President, let me repeat that state on a program of self-help by the borrowing Mr. Snyder wrote: governments. But these 16 nations have ment: The purpose of the trip was to study Euro given no indication that they intend to dis First, the program is designed to make pean agriculture, trade relations, and to learn ·card the socialistic practices which have genuine recovery possible within. a definite the ·facts about the Marshall-plan money. I nullified our aid thus far, and which will as .period of time, and not merely t<;> .continue paid 9my own expenses; and therefore I am surely continue to parnlyze economic recov relief indefinitely. free to express my own opinions. ery in these countries. The Truman-Mar Mr. Snyder said that he was greatly shall plan would only defeat its own end by The period of time set for this genuine encouraging the ill-conceived policies which recovery was 4 years. surprised to find Europe, as a whole, in are at the root of western Europe's economic I am confident that we all want to get better condition than he had been led to troubles. · western Europe off our backs, to use Mr. think. Hoffman's expression, just as soon as He wrote: Mr. President, th2..t was said by me in possible. But even the Administration It was a very great disappointment to us the debate in 1948. The words are as now admits that the Mar~hall plan is to find that the people of the middle or lower appropriate today r.s they were then. not bringing about genuine recovery in classes knew absolutely nothing about the Certain of the Marshall-plan countries western Europe. On February 21 last, generous gifts of our money. Those we had have balanced their· budgets and de hoped would be friendly because of our fi valued their currencies. These steps Secretary of State Acheson testified be nancial aid were antagonistic. They claimed fore the House Committee on Foreign that it had been a detriment tp them. In have had desirable effects. Affairs on the foreign aid bill. During -France, the wealthy have become wealthier, But the so-called dollar shortage still the course·of his· testimony Mr. Acheson and the poor liave become poorer. plagues the Marshall-pian countries. ·was asked this question by Representa The principal reason for this condition .tive RIBICOFF, of Connecticut: Mr. Snyder then said: is the fact that most of the Marshall We had been led to think that with finan p1an countries persist in making use of Mr. Secretary, do you think that aid to cial aid we have been selling democracy and Europe will end in 1952? helping to keep communism down. In this a hodgepodge of trade restrictions, ·al we have definitely been "taken for a ride." locations, rationing, priorities, bilateral M;r., ·Acheson replied:· treaties, government planning, price fix No; I do not think that all American a-id, Mr. Snyder asks how our aid can help ing, profit fixing, ·wage fixing, imprirt _certainly in the world and certainly to some promote democracy if the leaders of the prohibitions, multiple currencies, and parts of Europe, will end in 1952. (House countries and the men who administer hearings •. p. 19) any number of similar socialistic devices the aid are the only people in that coun whose net effect has been regimentation It is clear, then, that instead of being try who know where the money comes of the European economy, and extreme a genuine recovery program, to use Mr. from. economic nationalism. ' Truman's language, the Marshall plan He expressed concern over the fact that Marshail-plandollars are beingused Mr. Hoffman has admitted several has become merely another of a !Ong times recently that the situation is a series of foreign relief programs since to !:mild up foreign competition. He said: serious one. He has stated that Europe the war, most of which are now unhon "must bring these barriers down" and Belgium and Holland are exporting dairy ored and unsung. must create a free market ·or there will VI. MARSHALL PLAN FUNDS HA VE NOT BEEN pro'ducts, and like the other countries, have become our competitors in the world market. be no permanent road to prosperity USED WISELY OR EFFECTIVELY after 1952. Now for another of the. President's ob Mr. Snyder was not at all convinced . But cles:Jite certain efforts which have jectives. Mr. Truman said: that Marshall-plan countries would be of been made by ECA to bring about so Second, the program is designed to i'nsure value to us as allies in a war with Russia. called integration of the European mar that the funds and goods which we furnish He said: ket, the situation has become steadily will be used most effectiv.ely . for European It is my opinion that in case of war with worse. recovery. Russia, we cannot count on France or Italy as an ally. But if. we build a national de As Representative LODGE, of Connecti Instead, the Marshall plan has been fense excelled by no other country on earth, cut, stateu during the House committee used as a dumping chute for hundreds they will know that by joining us they will hearings: of millions of dollars' worth of things, be on the winning side. Economic nationalism in Europe is ramp making no contribution at all to effective Our only hope is to build a nation so ant (House hearings, p. 607). European recovery. strong both economically and militarily that For instance, the sum of $270,000,000 no power on earth will dare attack us. Then Henry Hazlitt, contributing editor of has been spent for tobacco to be sent to no American boy will have to lie in the ceme Newsweek magazine, anrt author of its Europe under the Marshall plan. In teries over tl:ere because we thought of business column, told the House com other words, more than a quarter billi,m Europe first. mittee: ·dollars, taken from the American tax VIII. MARSHALL-PLAN COUNTRIES HAVE USED OUR The sad fact is that our Government payers, under the taxing. power, have DOLLARS TO EXPERIM.>NT WITH SOCIALISTIC foreign-aid program has had exactly the been used to send gifts of tobacco to DEVICES OF A DISTRESSING NUMBE! AND opposite effect of the one its supporters western Europe under a so-called recov - VARIETY hoped for. It has slowed down the pace of ery program. Mr. President, during the debate in economic recovery instead of increasing it. the Senate in 1948 on the original ECA It has set back economic freedom instead Recently a Greek scholar visiting in of promoting it. the United States remarked that the autilorization bill, the following state Marshall plan is choking itself to death ment was made: This, then, Mr. President, is the situa on nylon stockings, lipsticks, plastic All of the dollars in the world cannot of tion which our efforts have created. combs, and canned tuna fish. themselves cure the economic. ills of the 16 The Marshall plan participating coun · In his view, the insistence of the Marshall-plan countries. Whether they solve tries have used our dollar gifts, not in .United States on shipping. finished prod thei.r basic economic problems depends not accord with any over-all plan of inte on the. amount of our ~id but upori the ac ucts, antj things that are unnecessary to tions of their own governments. These na grated recovery, but instead, with the life in_Greece, is stifling Greek economy tions at the present time are carrying out notable exception of Belgium, the Mar arid making the Greek people lazy and vast socialistic exp.eri~~n~s which have been shall-plan countries have used our ' dependent. unsuccessful every time and everywhere they dollars to promote, with costly results..! XCVl--359 5684 OONGRESSIONAL RECORD-· SENATE experiments with socialistic devices of suggest to the American taxpayers fi our own Government is tottering on the a distressing number and variety. nancing his give-away plan ·that· it is brink of bankruptcy-, · and when we con Imagine the chaos that would result "immoral" to ask the Socialist Govern sider the fact that the needs of our own if each 1 of our 48 States suddenly ment of Britain to accept a loan instead people are being neglected to prop up undertook to put into effect socialistic of a gift; he now tells us that they can Socialistic governments abroad, the re nightmares originating in the fertile and not expect Europe to regain her eco duction called for by the proposed disturbed brains of government planners nomic feet for 50 years, which is exactly amendment is modest, indeed. from Marx to Cripps, and to regiment the reverse of all the Administration's Mr. President, . the American front all trade with neighboring States in soothing utterings about "genuine re line is not on the Rhine or in the torrid accordance with 3-, 5-, or 10-year plans. covery" in 1952. jungles of Burma: it"is in a sound Amer This is exactly what has happened in X. MARSHALL PLAN SHOULD BE TERMINATED IN ican economy, and a strong national de Europe-and its activation has been AN ORDERLY YET SPEEDY FASHION fense. made possible by Marshall-plan dollars. Nevertheless, we have embarked on In 1879 Gladstone said: IX. THE MARSHALL PLAN IS OPERATING IN REVERSE this costly and, as I believe, unwise pro- The first thing is to foster the · strength of The original ECA authorization bill, gram. • the empire by just legislation and economy passed early in 1948, provided that of a The American taxpayers have a right at home. • • • Here is my first principle total of about $6,000,000,000 authorized, to expect that the investment already .of foreign policy: good government at home. $1,000,000,000 should be available only made will not go completely for naught. The greatest contribution we can in the form of loans or guaranties. Last They have a right to expect that the make to the peace of the world is to year the amount made available for Marshall plan should be terminated in show the people of other countries that loans was .reduced to $150,000,000 of a a speedy yet orderly fashion. the great experiment in self-government total authorization of about $4,000,000,- I do not advocate an immediate termi launched on this continent some 150 000. nation of our aid to western Europe. Our years ago can be made to work. The pending authorization bill specif aid should, however, be reduced sharply Are we making it work by spending ically limits none of the amount author~ this year, and terminated completely by billions of .dollars more than we take in ized to loans. Instead, it has left to the the end of the fiscal year 1952, as origi from taxes? discretion of ECA Administrator Hoff nally contemplated. Furthermore, steps Are we making it work when we run man the amount to be allocated in the should be taken to insure that the re the printing presses 24 hours a day, turn form of loans. mainder of the program is administered ing out I O U's to be paid when? By On Tuesday, February 21, Mr. Hoff;. in a manner more economical to our tax our children, or our child:r:en's children? man testified before the Senate com payers and in a manner designed to pro Mr. ~resident, during ·the debate •on mittee. During the course of his testi mote and encourage genuine recovery in the original Marshall plan authorization mony, the following- colloquy occurred western Europe. bill in 1948, I made the following state between the senior Senator from Wis In order that these objectives may be ment: · consin [Mr. WILEY] and Mr. Hoffman: attained, I suggest that the pending bill The emotional interest exhibited In some Senator WILEY. Is there any of this loaned be amended in certain particulars. I quarters today in favor of distributing among to any country under the terms of the act do not say that other amendments would the peoples of foreign lands the wealth ac or is it given? not be desirable, but I have offered three cumulated in this country by many genera Mr. HOFFMAN. The present proposed bill amendments to the pending bill. tions of thrifty and frugal-minded people, would leave it optional, but there would be First. An amendment to reduce the appears to be one of .those strange emotional very little in the way of loans; some loans. authorization for the next fiscal year by manias, or moral epidemics, which have ex Senator WILEY. So it is virtually an out cited the minds of men from time to time at $1 ,000,000,000. various periods in the world's history. and-out grant; is that right? Second. An amendment to terminate M -· . HOFFMAN. Yes; I think there might aid to any country participating in the An interesting book on this subject has be $75,000,000 in loans out of the $2,950,- been written, strangely enough, by an 000,000, but that would be about all that program which in the future nationalizes should be placed. or socializes ·additional basic industries. Englishman'., L. C. Mackey. It is entitled Third. An amendment to terminate "Extraordinary Popul~r Delusions and Mr. President, it occurs to me that aid to any country participating in the the Madness of .Crowds." this situation is antithetical to sound program which continues to funnel war The author says: international economics. The Marshall materials from the United States to Rus In reading the history of nations, we find plan seems to be operating exactly in sia and her satellites. that, like individuals, they have their whims reverse. If it is a genuine recovery pro I shall discuss at another and appro and their peculiarities; their seasons of ex gram, as we were told by the President priate time the second and third amend citement and recklessness, when they care in 1947, if the plan has brought about ments to which I have referred. - not what they do. a substantial increase in production in Mr. President, the pending bill would I should like to repeat that statement, western Europe, as stated by Mr. Hoff authorize the expenditure of $2,950,000,- Mr. T'resident: man now, then sound economics de 000 ~o continue ECA another year. The We find that {nations) like individuals, mands that the proportion of loans to amendment to which I am now address • • • have • • • their seasons of outright grants be increased, not de ing myself would reduce the amount au excitement and recklessness, when they care creased to the vanishing point. thorized by $1,000,000,000. not what they do. We find that whole com Mr. Hoffman, in his testimony before Mr. TAFT. Mr. President, will the munities suddenly fix their minds upon one the House Committee on Foreign Affairs Senator yield? object , and go mad in its pursuit; that mil on Febru!'trY 24, offered an interesting, Mr. KEM. I am about through with lions of people b<:come simultaneously im and, I may say, a novel explanation of pressed with one delusion, and run after it, niy prepared statement, which I should till their attent ion is caught by some new his position on the matter. He said: like to complete before yielding. I shall tally more captivating than the first {preface, To ask them to take loans instead of be very glad to yield to the distinguished p. xix). grants is to ask them to commit what I Senator from Ohio when I am through Every age has its peculiar folly; some think is an immoral act. (House hearing!!, with my statement. scheme, project, or fantasy into which it p. 77.) If the Senate sees fit to adopt the pro plunges, spurred· on either by the love of gain, the necessity of excitement, or the mere force Mr. Hoffman then said-and I ask posed amen:iment, ECA will still° have of imitation. Failing in these, it has some particular attention to this language, Mr. available for distribution to Europe next madness, to which it is goaded by political or President- year one thousand nine hundred and religious causes, or both combined. Every It will take 50 years for Europe to come fifty million dollars, plus an estimated one of these causes influenced the Crusades, back, in my opinion, to where she is earn $149,000,000 which, it is expected, will and conspired to render them the most ex ing enough to handle what she needs in a. be carried over from this year's appro traordinary instance upon record of the ex given year and service the debt she now has priation. tent to which popular entlrnsiasm can bE} (House hearings, p. 78). carried {p. 354). When we consider the fact that a con If two or three persons can only be found Mr. Hoffman says it will require 50 siderable portion of ECA funds have to take the lead in any absurdity, however years. been used for purposes making no effec great, there is sure to be plenty of imitat ors. In other words, Mr. President, Mr. tive contribution to genuine European Like sheep in a field, if one cleats the stile, Hoffman not only has the temerity to recovery, when we consider the fact that the rest will follow (p. 613) • 1950 CONGRESSIONAL. RECORD-SENATE 5685 This book originally published in 184L from Nevada submitted them for the Mr. MALONE. Mr. President, if the was reprinted in America in 1932. For RECORD last year. I examined them, and Senator will permit, let me say that I do this American edition a special preface I think they are an important contribu not see in the treaties anything which was written by a distinguished American. tion to the study of the funneling of the limits the application of such agree the Honorable Bernard M. Baruch. Mr. materials and goods produced by the ments. The treaty between Great Brit Baruch wrote: American people through the countries ain and Russia, for instance, merely says. The migration of some types of birds; the of western Europe to Russia and the in article VII: incredible mass performance of the whole satellite countries. Each high contracting party undertakes species of ocean eels; the prehistoric tribal Mr. MALONE. Mr. President, will the not to conclude any alliance and not to take humun eruptions from central Asia; the Senator yield further? part in any coalition directed against the Crusades; the medieval dance craz~s; or, other high contracting party. getting closer to economics, the Mississippi Mr. KEM. I yield. and South Sea Bubbles; the Tulip Craze; Mr. M:ALONE. Does the Senator from Mr. KEM. Does not the preamble of e:1d (are we too close to add?) the F1orida Missouri take into consideration the fret the treaty between Great Britain and boom and the 192S market-madness in Amer thaii today France and England, 2 of the Russia say something about aggression ica and its sequences in 1930 and 1931- 16 Marshall-plan nations, have nonag by the Hitler government or its suc all these are phenomena of mass action un gression treaties with Russia still in good cessor? der impulsions and controls which no sci standing, which so far as I know are still ence has explored. They have power un Mr. MALONE. Here is the opening expectedly to affect any static condition or in force; at least, we have not heard language of the British-Russian treaty: anything or received any notice to the so-called normal trend. For that reason, His Majesty the King of Great Britain, they have place in the consideration of contrary. I submitted those treaties for Ireland, and the British Dominions beyond thoughtful students of world economic the CONGRESSIONAL RECORD in March 1949. the seas, Emperor of India, and the Pre conditions. One of them was dated 1942, and was sidium of the Supreme Council of tho Union Mr. Baruch did i:wt do so, but he might signed by Anthony Eden, for the British of Soviet Socialist Republics; Empire, and by V. Molotov, for Russia. well hav·~ included the infamous Salem Desiring to confirm the stipulations of the witchcraft persecutions as another ex With the Senator's permission, I should agreement between His Majesty's Govern . like to read briefly from it: ment in the United Kingdom and the Gov ample of mass action under impulsions ernment of the Union of Soviet Socialis·t Re ARTICLE VI and controls, or moral epidemics. publics for joint action in the war against Mr. President, on the great seal of the The high contracting parties agree to render Germany, signed at Moscow on the 12th State of Missouri there is wr~tten: "Salus one another all possible economic assistance July, 1941, and to replace them by a formal populi supr..:ma lex esto"-V;t the wel after the war. treaty. fa:;:e of the people be the supreme law. ARTICLE VII Each high contracting party undertakes The formal treaty takes in more ter The welfare of our own people-that is, ritory. It came later and could well ap the welfare of the people of the United not to conclude any alliance and not to take part in any coalition directed against the ply to any other nation attacking either States, and not the people of any for other high contracting party. of the contracting parties, as the case eign land across the sea-shot!ld be the might be. first concern of the people of the United Now let me refer to the French-Russian Mr. KEM. The Senator from Nevada States. treaty, signed by Bidault, for France; would know more about that than I Mr. MALONE. Mr. President, will and by Molotov, for Russia. The treaty would know. I was under the impres the Senator yield? was signed in Moscow on December 10. sion that the treaty had to do particu Mr. KEM. I am glad to yield. 1944. It was also mentioned by me in larly with aggression by the government Mr. MALONE. ::=-rom the well thought the same address in the Senate, and both of Germany. In any event, it is clear out address which the distinguished these nonaggressio11 treaties were printed that the treaty constitutes a military al Senator from Missouri has just made, I in the CONGRESSIONAL RECORD in March liance between Great Britain and understand that he intends to offer or 1949: Articles V and VI of the French Russia. has offered to the ECA extension bill an Russian treaty read as follows: Mr. MALONE. Mr. President, if the amendment prohibiting the payment of ARTICLE V money or the sending of goods to nations· Senator will further yield, I should like The high contracting parties undertake to call his attention to a joint resolu which are assisting Communist areas. not to conclude any alliance and not to take Mr. KEM. I have offered such an part in any coalition directed against ci ther tion which the junior Senator from amendment, to be printed and lie on the of the high contracting parties. Nevada introduced in the Senate on table. I propose to discuss that amend January 24, 1950. I understand that the ARTICLE VI Senator's amendment corresponds to the ment tomorrow. The high contracting parties agree to ren Mr. MALONE. I should like to ask der each other every possible economic as joint rnsolution introduced by the junior the Senator whether he recalls that in sistance after the war, with a view to facili Senator from Nevada. I had intended March 1949, I listed, in a speech I made tating and accelerating reconstruction of to submit an amendment to the ECA bill in the Senate, 85 trade treaties which the both countries, and in order to contribute to in line with my joint resolution of Janu 16 Marshall-plan countries then had the cause of world prosperity. ary 24, 1950, but now I "intend to sup made with Russia and the iron-curtain I should like to ask the distinguished port the amendment which has been countries, under which treaties they were Senator from Missouri whether he has submitted by the distinguished Senator shipping to Russia and the iron-curtain any kno·.vledge of these nonaggression from Missouri which I understand, will. countries all kinds of goods, such as ball treaties, particularly as to whether they if accepted, accomplish the same bearings, tool steel, heavy farm machin have been abrogated in the meantime. purpose. ery, construction equipment, farm ma Mr. KEM. I have no knowledge as to Mr. KEM. I am glad to have the dis chinery, railroad cars, locomotives, and that. As I recall, the treaty between tinguished Senator from Nevada join practically everything necessary for the Great Britain and Russia has to do with me in that matter. waging of a third world war against us aggression from Hitler or from some suc Mr. MALONE. The first paragraph and to consolidate their gains in Europe cessor of the Hitlerian government. I do of the joint resolution which I introduced and in Asia. on January 24, 1950, as it appears on I also would like to know whether the not recall the circumstances relative to the treaty between France and Russia. page 818 of the CONGRESSIONAL RECORD, Senator recalls that on January 24, of reads as fallows: this year, in bringing the list of such At any rate, they are 20-year military treaties up to date, I said there are 95 alliances; and in case of war between Joint resolution to prohibit financial aid such treaties in good standing as of that Russia and the United States, it seems to any foreign country engaging in trade to me that the governments of Great with Russia, her satellite countries, or any date. other area dominated or controlled by Russia. In view of the amendment the Senator Britain and Frane;e would be required to bas submitted, I am inquiring whether make a det.ermination as to which of its Mr. President, I ask unanimous con or not he has considered this feature of allies it would associate itself with sent tJ have appear in the RECORD at this our relations with the nations of Europe. whether it would join the cause of Russia point the joint resolution introduced by Mr. KEM. I was very much inter or whether it woult.1 join the cause of the the junior Senator from Nevada, pro ested in those treaties when the Senator United States. hibiting assistance to such countries. 5686 CONGRESSIONAL RECORD-SENATE APRIL 25 There being no objection, the resolu between ECA countries and countries behind sion today. i: · expect· to· discuss that tion was ordered to be printed in the the iron curtain. phase of the matter tomorrow. RECORD, as follows: Metal-working tools, steel, ball bearings, electrical machinery and apparatus, grain Mr. TAFT. ·Mr. President, will the Joint resolution to prohibit financial aid to mills, heavy road machinery, farm machinery, Senator yield? any foreign country engaging in trade with and assembled motor vehicles are ·a few of The PRESIDING OFFICER. Does the Russia, her satellite countries, or any other the many items being sent to Russia's sat Senator from Missouri yield to the Sen area dominated or controlled by Russia ellite countries from ECA nations. ator · from Ohio? Whereas one of the alleged basic purposes It is the opinion of informed people that Mr. KEM. I yield. of the Marshall plan is the restoration or Russia cannot process and manufacture Mr. TAFT. Has the S~nator offered maintenance in European countries of prin goods fast enough to keep her satellite his amendment to cut the appropriation ciples of individual liberty, free institutions, countries contented, and without our help by $1,000,000,000? and genuine independence through a joint Russia will fail in her aggression. It is par program based upon self-help and mutual co adoxical that only with our help can Rus Mr. KEM. I have not asked that it be operation; and sia defeat us. taken up. I offered it. It lies on Whereas Russia and other Communist Is there a cold war? Let us make up our the table, and it has been printed. dominated and controlled countries and minds. If there is no cold war, let us trade Mr. TAFT. I wonder whether the areas have refused to participate in such with Russia openly and freely. If there is Senator should not off er it. joint program; and a cold war, on the "other hand, if we are Mr. President, a parliamentary inquiry. Whereas Communist actions have endan fighting communism, let us stop all assist The PRESIDING OFFICER. The gered world peace; and ance of every nature to those countries as Whereas certain participating nations un sisting Russia or in the Communist area. Senator will state it. der the Marshall plan by trading with Russia It is downright silly to say there is a cold Mr. TAFT. May I ask whether any and other Communist-dominated and con war and at the same time help our enemy amendment is pending at this time? trolled countries and areas and through non in that cold war to consolidate her gains, to. The PRESIDING OFFICER. There is aggression pacts and treaties are violating help our enemies fight world war III. no amendment pending. . the basic principles of the Marshall plan Mr. MALONE. Mr. President, I wish Mr. KEM. I should be very glad to and are aiding and fostering communism call up the amendment which I pre in other areas of the world through furnish to commend the Senator from Missouri ing the necessary equipment, machinery, and for his amendment and his address be viously submitted, to reduce the authori supplies to consolidate Communist gains in fore the Senate today. It is high time zation in the pending measure by eastern Europe and in Asia; and that we made up our minds which side $1,000,000,000. Whereas such nations are furnishing Rus we are on. Mr. TAFT. Mr. President, I am very sia and the Communist areas necessary .much interested in cutting the appro equipment, machinery, and suppi°ies for In other words, now we- are furnish ing to the 16 Marshall-plan countries priation. I fully agree with the Sena world war III; and tor's warning that we are facing this Whereas it is the sense of the Congress raw materials and money and industrial and t.he basic policy of the Marshall plan machinery. In truth, we are furnishing year a deficit of $6,000,000,000, and next and its enabling legislation that assistance a very large amount of machinery, raw year, a deficit of six or seven billion dol to any participating country which fails in materials, and money to the 16 Mar lars. It seems to me we must cut every any way to meet its obligations to sustain shall-plan countries; and the fact is phase of Government operation. Cer and strengthen the principles of individual tainly there is no reason that I can see liberty, free institutions, and genuine inde as shown by the 95 trade treaties made by the 16 Marshall-plan countries with for not making a cut in the aid to for pendence, through cooperating with such eign countries. I can see some reason Communist nations and areas, should be ter Russia or with satellite countries, with minated: Now, therefore, be it ·which we claim we are in a cold war at perhaps for not cutting appropriations Resolved, etc., That on and after the date this moment-that much of those ma for the American armed forces, but aside of the enactment of this joint resolution, no terials and supplies is going from the from that, it seems to me that if those financial aid shall be given by the United Marshall-plan countries to Russia or the in charge of the Government take the States or any agency or officer thereof position that this appropriation for a (whether by loan, grant, lend-lease, or in satellite countries on the first bounce. We ship the materials to the Marshall gift to many foreign nations cannot be any other manner) to any foreign country cut, then I cannot see how we can hope which engages in trade or commerce on or plan countries an·d that machinery is in after such date with Russia, her satellite stalled and is used for the manufacture to cut domestic expenditures. It seems countries, or any other Communist-domi of the products and commodities later to me the place to begin, if we are going nated or controlled area in any other country. shipped to Russia and her satellites-it to reduce the budget, is here-to begin SEc. 2. It is the sense of the Congress that whenever we come to anything on which no moneys shall hereafter be appropriated is a manufacturing in transit rate. we can begin. As a matter of fact, in the case of the and no loans shall hereafter be made and So I have every sympathy with the no equipment or supplies of any kind shall treaty between Great Britain and Rus be furnished to any nation engaging in such Senator's desire to cut the budget. I sia, which was placed in the CONGRES have no desire to destroy the ECA pro trade or commerce or permitting its nationals s10NAL RECORD in March 1948 by me, the to do so. gram in any way. I wonder whether first item covered in that treaty was 1,100 the Senator has given any consideration Mr. MALONE. Mr. President, if the locomotives, needed desperately by Rus to the basis on which the amount of the Senator from Missouri will permit, I ask sia for any war with us-either cold or program is predicated, and what the unanimous consent to have inserted at hot. basis is for the $3,100,000,000. Does the this point in the RECORD a release issued We say that nothing which can be Senator know why $3,100,000,000 was by me on January 24, 1950. used for waging war or in any way to used rather than $2,100,000,000, or There being no objection, the release strengthen these nations for that pur $2,600,000,000? was ordered to be printed in the RECORD, pose will be shipped by us to those areas. Mr. KEM. I suppose that an effort as follows: On the other hand, I ask the distin guished Senator from Missouri whether will be made to justify the amounts be OUR INTERNATIONAL STUPIDITY fore the Appropriations Committee. This country is now arming Russia. he was motivated, in offering this But I cannot help recalling the justifi We censured ourselves for permitting a amendment, by the fact that not only cations which were made before the short-sighted administration to send scrap are these treaties in existence and being committee last year. For instance, we iron and oil to Japan before Pearl Harbor, fultUed at this time, but that England, were told that certain sums would be "but today we are treating the Communists India, and other nations within the ster paid out in this country for American much better; we are seeing to it that they ling bloc have recognized Communist get, not scrap, but finished products. We wheat. The amounts stated by Mr; China, and are daily increasing such Hoffman before the Appropriations Com bowed our heads in shame over our permit shipmen.ts to Communist China, thus ting scrap iron to be sent to Japan. Now is mittee were far in excess of the pur the time to bow our heads in shame again. consolidating the Communist gains as chases actually made. Apparently this "Aid which we are sending to ECA coun well as preparing for war? is, to some extent at least, merely win tries is finding its way in finished products Mr. KEM. I think that is a very im dow dressing; the figures are picked out to the Communist countries," said MALONE, portant consideration, and I thank the of the air, and the ECA Administrator and to back up this serious charge he sub Senator from Nevada for the important feels no moral compulsion whatever to mitted a list of 95 recent trade agreements contribution he has made to the discus- follow the figures which he so glib~y re- 1950 CONGRESSIONAL RECORD-SENATE 5687 cites before the Appropriations Commit- United Kingdom during the following · Mr. TAFT. I am afraid I do not know. tee. . year. I had not thought so, but I have not Mr.· TAFT. I have tried to analyze, Mr. KEM. I think that is a very per checked it. The Senator will find in the from such documents as are available, tinent suggestion. Was the statement of budget estimates submitted by the ERP the advances to the United ~ingdom Sir Stafford Crirps made in the House the same figure of $687,000,000 for Great contained in the bill, because there are of Commons? Britain, and it is reached on the basis somewhat better statistics available as Mr. TAFT. It was. of the balance of payments. In that is to the United Kingdom than as to other Mr. KEM. Does the account which the estimated the amount of imports and countries·. But, taking the United King Senator has before him indicate how the payments for services, exports, and re dom, for example, the table on country statement was received by the Members ceipts for services. It seems fairly clear aid programs shows that, of the total of of the House of Commons? Did they that the estimated balance for 1949-50 $2 , 025 , COO,OOO~the balance I think is for show any marks of satisfaction? has not taken into account the change in shipping and other things-$687,000,000 Mr. TAFT. Oh, yes; they applauded. the British balance-of-payment situa is to go to the United Kingdom. I shall I do not have before me that particular tion brought about by devaluation, and ask permission later to put the figures account, but Sir Stafford was greatly a11- the amount figured for Great Britain's in the RECCRD. Of the total, $326,000,000 plauded, particularly from the minis balanc3 in 1949-50 is probably over is for agricultural prod"Jcts, and about terial benches, as having accomplished stated by at least $200,000,000. How $3 ~ 6 . 000,000-strange to say, exactly the a great feat-and it was a great feat. much the 1950-51 estimate is over same figure-is for industrial products. He points out as one of the most impor stated is, I suppose, a matter of conjec Whether that is a mere chance, or tant reasons for the result- ture, but I at least wish to suggest to the whether that figure was merely picked, The reduction in the United Kingdom's own Senator and to the Senate that we re or the sum merely happened to be divid expenditure on imports from the dollar area, examine the situation and ask for a re bringing it now within the rate of $1,200,- estimate by ECA for the coming year in ed up in that way, I do not know. With 000,000 a year, which we have laid down in transportation, $34,000,000, ·added, the the light of the developments of the Brit our program. • • • This major achieve ish balance of payments today. total is $687,000,000. Does the Senator ment is a triumph of cooperative effort by commonwealth countries of the sterling area. It is quite possible they have had a know whether that total is reached by balanced budget for the past 6 months, providing certain commodities which are Mr. KEM. Does the Senator recall and that situation may be only tempo needed, or whether it has to do with the whether Sir Stafford Cripps made any rary. Perhaps they cannot balance it for so-called dollar balance or dollar deficit aclrnowledgment of the assistance given the next 6 to 9 months, but certainly it of the British Government? him by his American friends in accom must be much closer to balance than Mr. KEM. I do not know how the plishing this result? when the estimate was made last fall by figures were arrived at, but I can say · Mr. TAFT. Oh, yes. The golden-dol the ECA. The bill is stili based in its with assurance that it is improbable lar balance has been built up by ECA amounts on the estimate made before the there will be any relationship between money to more than $2,000,000,000, which condition developed which has been those figures and the final pui:chases is considered the safe point. They do shown by the statement of Sir Stafford made, in the event the bill is passed and not like to go below that point, which is, Cripps. the appropriations made. We have I think, a reasonable position to take. I am interested in ascertaining what learned that from the past. But what interests me is the justification is the amount the authorization in the Mr. TAFT. I wonder whether the for advancing to the British $687,000,000, bill can be reduced. I am sure the es Senator has read the statement made by if, in view ·of devaluation, they are able timate can be cut and can still accom Sir Stafford Cripps in the House of Com to pay their own way. The devaluation plish the purposes of ECA, but whether mons, on Tuesday, April 4. I will read has injured us. It enabled England to it can be cut a billion dollars, a billion the essential feature of it. He said: sell goods in competition with American and a half dollars, or a half-billion dol I should like to give to the House the fig goods in all parts of the world. It has lars, I do not know. There is nothing ures on our gold and dollar position for the built up their exports, and it has enabled in the hearings, so far as I have been first quarter of this year. During that period them to ship goods to this country more able to ascertain, that can enlighten the the sterling area earned a net gold and dol cheaply, Slnce they have that advan Senate. I think we have a right to ask lar surplus of $40,000,000 compared with a tage over us, and have taken it, why of those who advocate this tremendous deficit of $31,000,000 in the fourth quarter should we go on advancing additional expenditure that they tell us the rea- of 1949, a deficit of $539,00(),000 in the third quarter of 1949, and a deficit of $330,000,000 sums to the British in any amount? . sons for the large amount required. in the corresponding-that is, the first Mr. KEM. Particularly in view of the Why do they have to have so many quarter of 1949. We received assistance un current deficit j.n our finances. pounds of wheat and so many pounds der the EUropean recovery program, largely Mr. TAFT. Particularly in view of of cotton? This is the most vague es in the -form of reimbursement for expendi the deficit in our own finances, and .the timate that I know of among all the es ture already incurred by us, amounting to fact that the British budget is balanced. timates submitted to the Senate. As to $229,000,000, and we also drew on the Can a It is rather interesting that in present their· domestic expenditures, the state dian credit to the extent of $27,000,000. ing the budget Sir Stafford Cripps is ask ment is presented in detail and we can Thus the gold and dollar reserves rose by $296,000,000 during the quarter, so that, on ing for the same tax levy, but he is re check it. But why should we give $687,- · the 31st of March 1950 they stood at $1 ,984,- ducing the income tax during the coming 000,000 to the British instead of $300,- 000,000, compared with $1,688,000,000 on the year as to lower incomes. That has to 000,000? I can find nothing in my 31st of December 1949, and $2,241,000,000 on be made up by taxes on gasoline, for the studies to answer that question. the 31st of March 1948, immediately before most part. r,:Ir., KEM. Do I corre~tly understand the European recovery program was put into Mr. KEM. Does the account which is the Senator to say that the British Gov operat ion. before the Senator indicate .whether the ernment has balanced its budget both in .The Senator will see that that means allocations for food subsidies to the Brit ternally and externally as of today? that the sterling area, during the 6 ish people are being reduced in any way? Mr. TAFT. · In the past 6 months it months beginning the 1st of October of Mr. TAFT. No. My recollection is }:-_as balanced its external budget. So that the subsidies are about the same. far as its internal budget is concerned, it last year and ending the 1st of April, There has been a little shuffling of the may be balanced with some American this year, actually had a net surplus, subsidies. · assistance, because counterpart funds are without assistance from the E6A, of Mr. KEM. Am I correct in my under used to some extent to help to balance $9,000,000. Because of the devalu ... tion standing that the subsidies enable Brit the budget. of the pound, therefore, the British Gov.:. ish housewives to buy items of groceries Mr. KEM. Am I correct iri under ernment has balanced its international for far less than their American counter standing. that $500,000,0DO of the coun budget. The question which occurs to parts pay in this country? terpart funds· have bee.n used to retire me is whether that fact has been taken · Mr. TAFT. I do not think it is far the British internal debt? into account. I think obviously it has less, but it is less. · Mr. TAFT. That is what I understood not been taken into account by the ECA~ Mr·. KEM. · Is it not true that on some last year, yes. I wonder why, if' the British Gover'n items the· prices in England are as little Mr. KEM. Under those circum ment is able to bR.lance its dollar budget, as one-fourth of the prices paid by Amer- stances, does it not seem that the pur We should advance anything to the ican housekeepers? · poses of the original ECA Act have been 5688 CONGRESSIONAL RECORD-SENATE APRIL 25 accomplished, so far as England is con immediately before the European recovery we and the rest of the ~terling area have cerned, and so far as gifts from America program was put Into operation. made a further . advance in our long and It ls not possible so soon after the event arduous campaign to close the dollar gap. are concerned? to give a complete explanation of these But we must not be complacent as to these Mr. TAFT. I am not quite certain. changes in our position. In broad terms the results or o\lerestimate the· progress which That is what I should like to know. It various causes are known well enough, but has been made. To-the extent that the last has been suggested in the statement of their relative importance will not be able to quarters results benefited by a seasonal in Mr. Cripps that the situation is only be assessed until a good deal later. Look crease in income, we must expect that a temporary, due to certain things ·which ing at the position over the past 6 months correspo:Q.ding seasonal decline will affect may not recur, but he said that as to the since devaluation and comparing it with adversely the results of the months imme last quarter of 1949 whatever temporary the difficult situation we faced in the sec diately before us. Some of the saving on ond and third quarters of 1949, I think it dollar purchase throughout the sterling area conditions there were continued even can be said that two main types of in may also have been seasonal or temporary more strongly in the first quarter of fluence have been at work in bringing about in character. To this extent it may be bal 1950. So I do not know. It may be that an improvement in our affairs. The first anced by higher dollar imports later in the a hearing will show that there will clearly type consists of those factors which are out year. We have also still been enjoying some be a deficit in the balance of payments side our own control and which cannot be of the temporary after effects of devaluation, during the coming year, but I am quite relied upon to continue; and the second ts altho~ght latterly to a smaller extent than certain that if so, it must be smaller than the result of policies which we have adopted previously; these effects, unlike the more the ECA thought it would be when it to meet our difficulties and which may, we permanent benefits of devaluation, will hope, have a more lasting effect. Under the quickly pass. Nor can we be certain that made the budget 6 months ago. first heading, factors .outside our control, the present level of demand for exports from Mr. KEM. Does the Senator's study which reversed tendencies that had worked the rest of the sterling area to the dollar of the figures indicate that important so strongly against us last summer, I would area will be indefinitely continued, or that discrepancies, or, shall we say, differ refer to the two most important- their prices will be maintained. ences, exist between the estimates pre 1. The renewed lnfiow of dollars and the In looking forward we must bear in mind sented by the Administrator to the Ap resumption of buying which had been held that the substantial gains over the last 6 propriations Committee and the actual up in anticipation of a possible devaluation; months followed a period in which we lost and nearly a third of our reserves of gold and purchases made? 2. The increased demand from the dollar I dollars. Our policy ts so to order our affairs Mr. TAFT. So far as can figure, the area for many sterling area goods. This fol that when the European recovery program budget estimate submitted, to the extent lowed a further expansion in industrial ac ends, in the middle of 1952, we can stand that it is based on an estimated balance tivity in the United States, and the rebuild· on our own :leet, without exceptional external of payments for 1949-50, is at least 1ng of their stocks of commodities. Its ef aid. To that end we must maintain a rigor $2,000,000,000 wrong today, We have fect has been the more marked since it has ous economy in dollar eftpehdlture and covered three-fourths of the period. As coincided with the normal seasonal increase encourage the maximum - dollar earning to whether the estimates for next year in dollar· earnings from some of the major throughout the sterling area. We must con are correct, I have no means of checking sterling area exports such as wool and cocoa. serve our strength and rebuild our resources Under the second category which covers until they are strong enough to withstand at the present time. the results of policy decision, I mention the wbatever strain the difficult and uncertain Mr. KEM. How about purchases as following as the most important: future may bring. between different commodities in this (a) The reduction in the United King country? Have the estimates been fol dom's own expenditure on imports from the Mr. TAFT. Mr. President, I ask unan lowed closely? dollar area, bringing it now within the rate imous consent that there be printed in Mr. TAFT. That I do not know. That of $1,200,000,000 a year, which we have laid the R1i.:CORD a break-down of the .United is in the hearings, on page 27, as to what down in our program, together With similar Kingdom's allocation of $687,000,000. successful action by our partners in the 'i'here being no objection, the break they estimate for next year, but how sterling area, in accordance with the under closely the estimates have been followed standings reached at the Finance Ministers' down was ordered to be printed in the I do not know. meeting last July. This major ~chievement RECORD, as follows: If the Senator does not object, I should ls a triumph of cooperative effort by Com Estimated EGA-financed 'PfOgram, by com like to offer a number of matters for the monwealth countries of the sterling area. modity group, in the fiscal year 1950-51 RECORD. On its maintenance in the period imme [!n millions of dollars] Mr. KEM. That will be an important diately ahead of us depends much of our United Kingdom contribution to the RECORD. hope for the future balance of our payments with the dollar area. .Requested 'PfOgram Mr. TAFT. Mr. President, I ask unani (b) The improvement in our position fiscaZyear1950-51 mous consent to have inserted in the . with such hard-currency countries as Bel Food and agricultural imports: RECORD at this point the statement by gium, Switzerland, and Persia, which has Food------119.4 Feed and fertilizer------12. O the Chancelor of the Exchequer on resulted mainly from our better competitive Natural fibers ______123. 0 Britain's reserve position, which is dated position following devaluation. Other agricultural products______72. 0 April 4, 1950. (c) The substantial improvement of the There being no objection, the s~ate United Kingdom's position on invisible ac Total food and agricultural count, due in large measure to a reduction . ment was ordered to be printed in the products_~------326.4 in expenditure over a wide range of trans RECORD, as·follows: actions. APRIL 4, 1950. Industrial imports: ( d) Finally, the recovery in our earnings Fuels ------90. 0 BRITAIN'S RESERVE POSITION from United Kingdom exports to the dollar Industrial raw materials ______150. O TEXT OF THE STATEMENT MADE BY sm STAFFORD area. Capital equipment ------66. 4 CRIPPS, CHANCELOR OF THE EXCHEQUER, IN The explanations which I have given apply Other manufactures and raw ma- THE HOUSE OF COMMONS ON TUESDAY, APRIL broadly to the whole period since devalua terials------20. 0 4, 1950 tion. There have, of course, been changes I should like to give to the House the within that period. In the early part, as I Total industrial imports ______326. 4 figures on our gold and dollar position for made clear in my statement on the results the first quarter of this year. During that for the fourth quarter of 1949, the immedi· Total commodity imports ______652. 8 period the sterling area earned a net gold ate and short-term effects of devaluation Transportation ------34. 3 and dollar surplus of $40,000,000, compared were particularly noticeable. Since then with a deficit of $31,000,000 in the fourth these .more temporary effects have naturally Total ECA-f.nanced program___ 687. 1 quarter of 1949, a deficit of $539,000,000 in declined in importance. But this decline has Total allotment from fiscal year the third quarter of 1949, and a deficit of been offset, and indeed more than offset, in appropriation ______687. 1 $330,000,000 in the corresponding, that is, the the first 3 months of this year by those other first, quarter of 1949. We received assistance factors, which I have already mentioned, Mr. TAFT. Mr. President, I ask unan under the European recovery program, largely such as the increased demand for sterling imous consent that there be inserted in in the form of reimbursement for expendi area exports and the further reduction in the RECORD at this point a statement of ture already incurred by us, amounting to our imports from the dollar area. Our net the various country aid programs mak $229,000,000, and ·we also drew on the Ca payments in gold and dollars to nondollar ing up the total of $2,925,000,000, in nadian credit to the extent of $27,000,000. countries and some of our payments on tn cluding the British estimate -of $687,- Thus, the gold and dollar reserves rose by vlsibie account have recently been at a par $296,000,000 during the quarter, so that on ticularly low level. 000,000. March 31, 1950, they stood at $1,984,000,000, TM results of these last 6 months are un There being no objection, the state compared with $1,688,000,000 at December 31, doubtedly gratifying. Whatever the results ment was ordered ·to be printed in the 1949, and $2,241,000,000 at March 31, 1948, of a more detailed analysts, they reveal that RECORD, as follows: 1950. CONGRESSIONAL RECORD-SENATE 5689 Country aid programs, first 15 months, Country aid programs, first 15 months, Mr. TAFT. Mr. President, I ask unan 1949-50 and 1950-51 1949-50 and 1950-51-Continued imous consent that there be inserted in (Millions of dollars] (Millions of dollars] the RECORD at this point a copy of the April 1948- April 1048- l!J49-50 I l!J50-51 I 1949-50 I 1950-51 2 Economic Cooperation Administration's June 1949 1 June l!J49' budget estimate covering the United Austria______280. 0 +166. 4 · +124. 4 Norway______101. l +90.0 +67.1 Kingdom for three periods, which ap Belgium______2Gl. 4 +2E6. 9 +142. 8 Portugal______------+31.5 +23.5 II-125 Denmark______126. 2 +87. 0 +65.1 Sweden______45. 4 +48.0 +34.3 pears on page of the budget esti Trie~t<'------17. 9 +13. 4 +10. 0 Turkey______49. 0 +59.0 +44. l mate. :I<'ranre______1,313.4 +673.1 .+502.8 United Kingdom. 1, 61!J. 7 +919. 8 +687.1 Germany______613. 5 a +740. 3 +552. 9 There being no objection, the estimate Greece______191.7 +15fi.3 +148.8 TotaL ____ _ 5, 953. 0 3 +3, 953. 2 +2,925.0 Iccl~nd______8. 3 +7. o +5. 2 was ordered to be printed in the RECORD, Ireland______86. 3 +44. 9 +33. 5 Italy______668. o +364. O +wo. 6 1 Fifth report to Congress of the Economic f1oopcration as follows: Netherlands______571.1 +295:6 +rn2. 8 Administration for the period Apr. 3-June 30, 1949 • . 2 ECA appropriations jnstificntions, 1951. See footnotes at end of table. ~Includes OARIO A assistance of ~ 3!!7,900,000. Economic Cooperation Administration-Coim try, United Kingdom-Estimated balance of payments in gold and dollars and all currencies !Million dollars and dollar cquivalontsj 1948 1949-50 1950-51 Item Total all cur Total all cur Total all cur United Tot::il gold rcncies (ex United Total gold rencics (ex United Total gold rencies (ex States and dollars eluding own States and dollars eluding own states and dollars eluding own DOT) DOT) DOT) 1. Imports.------· -GS!l.O -1, 644. 0 -6, 390. 0 - 628. 9 -1, 400.1 -ll, 031.8 -G64.G -1, 204. 5 -5, 748. 2 2. Payments for services.------254. 0 -739. 0 -1, 8i8. !) - 225. 0 -338. 0 -1, 211. 0 -224.0 . - 339. 0 -1, 148.0 3. Ex ports ____ ------+262.0 + 6'.l l.O +s, 462. !l +240. 0 +u75.o +s, 300. 1 +268. 5 +755. 5 +5,2!!7.2 4. Receipts for services.------+338. 0 +504. 0 +2, 3SO. 9 +239. 0 +243.0 +1, 613. 0 +248.0 +25!l.O +1,810.0 5. Current account balance._------"·------340. 0 -l, 188.0 -425. l -374. 9 -820.1 -329.1 -372.1 - 529. 0 . +211.0 6. Settlements (neO------10.0 -323. 0 ------·------6.0 -246. 0 ------>+10. 0 -165.0 7. C:apit:il oprral ions (net)------+210.0 + 606.0 ------+2.0 +110. 0 --·------80.0 -30.0 8. -80.0 -905. 0 -378. 9 -956.1 -442.1 -724. 0 Balance of paymcuts. _------: - ~------METHOD .OF FINANCING 9. Chanve in reserves.------+220. 0 ------+36. 3 ------13.1 1 +50.0 }~ : ~iaP~1J~.:~:~_ !~::~:::::::: :::::::::::::::::: :::::::::::: ------+685:o- =:::::::::=::: =::::::::::: ------+iiiii:s· :::::::::::::: :::::::::::: +687.1 Mr. TAFT. I also ask that there be ments on current and capital account Mr. MALONE. Mr. President-- inserted table 7, on page 17, from the with all areas. Mr. KEM. Mr. President, I yield to There being no objection, the table the Senator from Nevada. British Economic Survey for 1950, show was ordered to be printed in the RECORD, Mr. MALONE. :i: was very much in ing United Kingdom balance of pay- as follows: terested in .the colloquy between the senior Senator from Ohio and the junior 'IABLE 7.-United K fngdom balance of payments on curreut and capital account with all areas 1 Senator from Missouri. The PRESIDING OFFICER. Will the Second Senator suspend for a moment? The Year l!l47 Year 1948 First half lmlf l!l49, Year 1949, Chair would like to suggest that Sena- · l!l49 provision.al provisional tors observe the rules they make. ------1-----1----- Mr. MALONE. Will the Chair outline A. CURRENT ACCOUNT to us just what rule to which he is re I. Dollar area: £ million £ mitlicn £ million £ million £million Imports (f.o .b.)______561 405 204 236 440 ferring? Exports and re-exports (f.o.b.)------119 176 91 88 179 Mr. CONNALLY. A Senator may not ------1----1---- yield except for a question. Visible balance_----- __ ------ -442 -22!! -113 -148 -261 Invisibles (net).------113 - 51 -22 +8 -14 Mr. HENDRICKSON. Mr. President, ------1-----1----- as I understand, the Senator from Mis - 555 - 280 -135 -140 -275 souri yielded the floor to the Senator II. Rest of world: from Nevada. Imports (f.o. b) ______------r.67 1, 365 758 772 1, 530 Exports and re-exports (f.o.b.) ______974 1, 378 814 797 1, 611 Mr. KEM. I did not yield the floor. I ------1-----1----- yielded for a question. Visible balance.------+1 +rn +56 +25 +81 -52 +162 +64 +oo +124 Mr. MALONE. I should like to ask Invisibles (net).------1-----1----- the Senator the question. I was very Surplus<+> or deficit(-) on current account. ___ _ -45 +175 +120 +85 +205 ======l=====I===== much interested in the colloquy which III. Total: ensued between the senior Senator from Imports (f.o. b.) ______------__ ------_ l, 528 1, 770 962 1, 008 1, 970 Ohio and the junior Senator from Mis Exports and re-exports (f.o.b.)------1, O!J3 ---1, 554 _____005 ,_____ 885 ,____ 1, _ 700 souri, and how the committee arrived Visible bnlance_ ------_------4~5 -216 -57 -123 -180 at the amount of money involved in the In visiblcs (net). __ ------165 +111 ----+42 1-----+68 1-----+no ECA bill. I should like to ask the Sena - 600 -105 -15 -55 -70 tor from Missouri if he does not believe that the same method of arriving at the B. CAPJTAL ACCOUNT amount at this time-and it is admit (1) Gold and dollar deficiL------1, 024 423 239 142 381 tedly the trade balance deficit-was ar (2) Net decrease in United Kingdom external capital assets 2______------______-295 -105 -99 1-197 '-296 rived at in the same way the deficit ad <3) Net change in sterling liabilities: mittedly was arrived at in March 1948? (a) Nonsterling area countries ______------247 -27 37 10 34 - 98 ' 73 -25 I have before me a table which was sub (b) Sterling area countries ••• -· --~------129 mitted for the CONGRESSIONAL RECORD Net overseas disinvestment______coo 105 15 55 70 March 4, 1948, by the junior Senator from Nevada. It shows each of the 16 1 The figures in this table are revisions of those in Command 7723. Details will be shown in the white paper on the United Kingdom Balance of Payments, to be published shortly. Marshall-plan nations listed alphabeti 2 This item is explained and amplified in Balance of Payments white papers (e.g. Command 7793). It inc:udcs cally. It shows their total imports in overscns inn·stment (mainly in the sterling area), sale of overseas assets (e. g., Argentine railways in 1948) and repay dollars, their total dollar earnings, and ment of Joans by the United Kingdom. a Of which, -GO revaluation payments, matched by +Go in item B (3). earnings from sources other than the 5690 CONGRESSIONAL RECORD-SENATE APRIL 25 United States, and then the United gation of Great Britain to buy wheat in support of tlie debate on this subject, States funds to be made available to from Canada. It resulted, as might would like to ask unanimous consent to them under the Marshall plan. They have been anticipated, in purchases of have inserted in tpe RECORD a table pre add up to a total. of $6,860,000,000. I wheat from the United States far below pared in March 1949. showing the $5,360,- assume the Senator remembers the de the estimates made by Mr. Hoffman be 000,000 trade-balance deficit of the 16 bate at that time. That amount was fore the Committee on Appropriations. nations, corresponding tu our_appropri for a 15-month period. For the 12- In other words, we lost going and coming, ation for that year, showing that that month period, which was later adopted, We put up the money, but we did not very simple method is being used-in the figure corresponding to the $6,860,- sell the goods. other words, we simply pick up the check. 000,000 was $5,360,000,000, which was Mr. MALONE. Will the Senator fur I ask unanimous consent to have the the approximate amount of the funds ther yield for another question? table included in the RECORD at this point. actually appropriated. The trade-bal Mr. KEM. I am glad to yield further. There being no objection, the table ance deficit, clearly, is added up each Mr. MALONE. If the Senator will was ordered to be printed in the RECORD, year, and that must have been the way permit, the junior Senator from Nevada, as follows: the present amount was arrived at. I will inquire of the Senator from Mis so·1ri if he agrees with the junior Sena Allocation ~~=f ~;0~~~~- Financial tor from Nevada, that the fallacy of Country Population Area under Marshall- tion (l937 =100 aid per plan (12-month unless other- capita such an estimate is that we have no con period) wise noted) trol over the purchases of the 16 Euro pean Marshall-plan countries. In other Square miles words, if the beneficiary countries have .Austria______7, 000, 000 32, 369 $142, 000, 000 150 $20.3 earned more than was estimated, they Belgium and Luxemburg______8, 687, 000 '12, 774 252, 000, 000 2 84 29.0 Denmark·------4, 024, 000 lfi, 575 128, 000, 000 a 117 30. 9 have simply purchased more goods. The France __ ------39, 700, 000 212, 659 1, 119, 000, 000 4106 28.2 deficit then would remain the same. Greece._------7, 788, 000 50, 257 145, 000, 000 & 75 ' 18. 7 Iceland______127, 800 39, 709 10, 000, 000 (6) 78. 0 Would it be a weakness in the whole Ireland______2, 989, 700 27, 137 119, 000, ooo 7 109 40.0 system, in the judgment of the Sena Italy __ _------45, 800, 000 119, 800 680, 000, 000 8 80 14.8 tor from Missouri, that we have no con Netherlands------9, 090, 000 12, 862 550, 000, 000 g 90 61.0 NorwaY------~------2, 937, 000 124, 556 27, 000. 000 7122 9.2 trol whatever over their purchases, and Portugal__------8, 132, 900 35, 466 None (10 11) that if we could theoretically make up Sweden______6, 674, 000 173, 347 26, 000. 000 7107 3.9 the existing balance they could increase Swi~~~~~t~::::::::::::::::::::::::::: ----~~~~·-~~------~~·-~~~------~~~~ ------iiiifoi -: :::::::::::::: them at any time at their own option Import------" ------____ L______1213 105 •• : .~------· by additional purchases? TurkeY------18, 971, 300 294, 416 None (1'.U) ------Unit.ed Kingdom______47, 889, 000 94, 279 1, 3781 000,000 1115 · 29.-8 Mr. KEM. I think it is a very decided Western Germany (United State'!, · weakness. We found that to be the United Kingdom, French zones)____ 45, 417, 200 96, 300 16 784, 000, 000 7 11 42 17; 3 situation in the case of purchases· of TotaL------259, 495, 600 1, 348, 243 5, 360, 000, 000 American wheat. Mr. Hoffman ap peared before the Committee on Appro 1 State Department, European Recovery Plan, Country Studies, Austria. Estimate, 1947. 2 Monthly Bulletin of Statistics (United Nations, January 1948 issue): September 1947. priations and said that he was going to a International Financial Statistics, January 1948; p. 63. · buy certain specific quantities of Ameri 'International Financial Statistics, September 1947. · a State Department, European Recovery Plan, Country Studies, Greece (1939=100). can wheat. Then Sir Stafford Cripps 6 No data. and Mr. Ernest Bevin came to the United 1 Hearings, Senate Foreign Relations Committe~ pt. 3, p. 1222: (Figures: End ·of 1947.) s State Department, European Recovery Plan, uountry Studies, Italy. · States and had their dollar talks with 1 State Department, European Recovery Plan, Country Studies, Netherlands (second quarter, 1947}. the State Department. As a result, they 10 State Department, European Recovery Plan, Country Studies. (No general industrial index available.) 11.- FuJI capacity. decided to use $175,000,000 of Marshall. 12 House Committee on Foreign .Affairs Publication, entitled "Background Information on European Countries.'! plan money to ·pay for wheat which {Re~trictcd.) Aug. 21, 1947. Great Britain had previously contracted 131938=100. u State Department, European Recovery Plan, Country Studies, Turkey. to buy in Canada. There was no men ta Above prewar. tion in the authorization, and there was 16 Including Saar. no mention in the hearings before the 11 United States zone, 48; United Kingdom zone, 37. Senate Committee on Appropriations, of Mr. MALONE. I should like to ask Recapitulation of tables showing illustrative any authorization of ECA money to pay further permission of the Senator from composition of imports of commodities anci for wheat bought by Great Britain in Missouri to have included at this point in services from Western Hemisphere and pos Canada. I anticipate that if the Ad, the RECORD another table, prepared at sible sources and distribution of financing, ministrator had disclosed to the com the same time, showing the $6,860,000,000 Apr. 1, 1948, to June 30, 1949 mittee that he intended to use $175,000,- trade-balance deficit for the 16 nations 000 of American taxpayers' money for for the 15-month period, which corre [.At July 1, 1947, prices) that purpose, he would have encountered sponded to the 12-month period just violent opposition. · Possible sources of mentioned. It also shows the total im financing I give the Administrator credit, be ports in dollars into those countries, the cause I do not think that at the time he total earnings in dollars, and it shows Total. Sources appeared before the Committee on Ap that the amount which each one of these im- other New propriations he had the slightest idea of nations was to receive of the $6,860,000,- ports 1 Dollar than United earn n~w States using $175,000,000 of his funds, or any 000 for the 15-month period, which was .ings 2 funds, for the purpose of mak1ng pay later reduced to '.1 12-month. period and ~~~~~ funds a ments.on wheat contracted to be bought $5,360,000,000, and · corresponds almost funds by Great Britain from Canada. Not exactly to their trade-balance deficits. ------1------Mils. of Mils. of Mils. of withstanding that, and relying on cer I ask unanimous consent to have the dols. dols. dols. tain weasel words in the appropriations table included in the RECORD at this .Austria ______----- 233 39 12 182 Belgium-Luxemburg_Denmark ______853 334 196 323 act, the Administrator, in order to assist point. - 237 45 28 164 in the dollar talks, devoted $175,000,000 There being no. objection, the table France ____ ------1, 931 369 128 1, 434 for that purpose. He allocated $175,~ was ordered to be printed in the RECORD, Greece __ ------262 67 9 186 Iceland._------23 10 13 000.,000 to be used in payment of. an obli- as fallows: · Ireland •• ------192 40 152 1950 CONGRESSIONAL RECORD-SENATE 5691 Recapitulation of tables showing illustrative There being no objection, the article discussion of the pending measure is composition of imports of commodities and was ordered to be printed in the RECORD, concluded. services from Western Hemisphere and pos as follows: Mr. WHERRY. Mr. President, will sible sources ar:d distribution of financing, Apr. 1, 1948, to June 30, 1949-Continued WAR GOODS SMUGGLED TO EAST VIA GERMANY the Senator yield? FRANKFURT, GERMANY, April 5.-Western Mr. KEM. I yield to the Senator from [At July 1, 1947, prices) officials said today that west Germany had Nebraska. become a funriel for war materials smuggled Mr. WHERRY. Mr. President, I Possible sources of into Communist satellite states. financing should like to ask the distinguished Sen Soviet Russia is believed master minding ator from Missouri whether, in a study of the war shipments through deals with pri Total Sources vate firms and international gangs, they said. the evidence in support of the authoriza im- other New The war goods are bought in some west tion which the Senate is now consider ports t Dollar than United European countries and in west Germany, ing, he finds any evidence which would earn new States ings 2 the officials asserted. indicate that Great Britain is eliminat ~f~~~ funds 3 Communist gangs recently were reported ing the trade barriers in her dealing with funds sniping at west Germany's economy by flood other ECA countries, as well as other ------1---1------ing the country with black-market goods. countries outside of ECA; and, further Mil-s . of Mils. of Mils. of Officials said they buy the war materials and more, whether Great Britain is attempt Italy ______dols . dols. dols. critical items with dollars and marks ob 1, mo 1!!3 108 869 tained through illegal cigarette and coffee ing, in the convertibility of currency, to Notherlamls_ ------ 1, 13fi 271 HiO 705 aid countries which are recipients of ECA 2fi3 l!i3 56 34 sales. Portug;alNurway_ __- ··______------_ Allied regulations strictly forbid shipments funds, or whether, on the other hand, Sweclon ____ _ ------__ !~i !~; -----43------33 of war materials or strategic items to the Switzerlaml______Great Britain is attempting to force to Turkey ______5:l5 5~5 ------eastern countries except under license. But trade with her countries which formerly Unite
<<