14058 CONGRESSIONAL .RECORD- HOUSE July 18 for printing and reference to the proper By Mr. O'HARA of Michigan: hospi_tal in SO\,lthern New Jersey; to the Com­ calendar. as follows: H.R. 12594. A bill to amend the Agricul­ mittee on Veterans• AJrairs. tural .Adjustment Act of 1938 to permit in­ By Mr. PUCINSKI; Mr. LANE: Committee on the Judiciary. ·creased. production of types or varieties of H.R. 12605. A bill to amend section 601 2.572. An act. tor the relief of the 1\lerritt­ s. wheat which are tn short supply; to the of t~e Federal Aviation Act to require ldenti- Chapma.n & Scott Corp.; without amend­ Committee on Agriculture. 1lcati.on markings on the underside of the ment (&ept. No. 1998). Referred to the wings of certain aircraft; to the Committee Committee of the Whole House. By :Mr. O'KONSKI: H.R. 12595. A bill to amend chapter 55 of on Interstate and Foreign Commerce. Mr. LINDSAY: Committee on the Judi­ title 10, United States Code, to provide ma­ By Mr. KEARNS: ciary. H.R. 11334. A bill for the relief of ternity benefits !or spouses of persons called H.J. Res. 826. Joint resolution to amend Mary J. Papwroth; with amendment (Rept. the act of April 29, 1942. establishing the No. 1999). Referred to the Committee of the to active duty on or after August 1, 1961, after the termination of their active duty, District of Columbia Recreation Board, to Whole House. and for other purposes; to the Committee provide for the restoration and use of the Mr. LINDSAY: Committee on the Judi­ Belasco Theater on Lafayette Square in the ciary. H.R. 10604. A bill for the relief of on Armed Services. H .R.12596. A bill to amend section 521 Nation's Capital as a municipal theater· as . Mr. and Mrs. Gordon C. Bryant; with amend­ to of tJ.tle 38, United States Code, to provide for proposed by President Kennedy in 1960, ment (Rept. No. 2000). Referred to the provide that su-ch theater shall be used solely Committee of the Whole House. the payment of pension to veterans of World war I who have 70 or more, but less than 90, as a children's .theater and art center so as to days of service; to the Commlttee on Vet­ provide cultural fare superior to many of the movies and television programs seen by PUBLIC BILLS AND RESOLUTIONS erans' Affairs. millions of children today. Jlnd to provide By Mr. BARRY: that such theater shall be known the Under clause 4 of rule XXII, public H .R. 12597. A bill to make the Civil Rights as Caroline Kennedy Children's Theater and bills and resolutions were introduced and Commission a permanent agency; to the Art Center; to the Committee on the District severally referred as follows: Committee on the Judiciary. of Columbia. l3yMr. JAMES C. DAVIS: By Mr. BURKE of Massachusetts: By Mr. SCHWENGEL: H.R. 12588. A bill to increase from $000 to H.R. 12598. A bill to amend the Tartif Act H. Con. Res. 503. Concurrent resolution to $1,000 the personal Income tax exemptions of 1930; to the Committee on Ways and authorize the printing as a House document of a taxpayer (Including the exemption for Means. the report of the Joint Committee on Ar­ a spouse, the exemption for a dependent, By Mr. LIBONATI: rangements to Commemorate the lOOth An­ and the additional exemptions for old age and H.R.12599. A bill to amend the Internal niversary of the First Inaugural of Abraham blindness); to the Committee on Ways and Revenue Codes of 1954: and 1939 to provide Lincoln; to the COmmittee on House Admin­ Means. for the elimination of certain tax inequities istration. By Mr. ABERNETHY: through the permissive taxatJ.on of certain. By Mr. COOLEY: - H.R.12589. A bill to amend the Smith­ jointly owned railroad terminal and switch­ H.. Res. 728. Resolution to provide funds Lever Act of May 8, 1914, as amended; to the ing facillty oorpora.tJ.ons as partnerships; to for the further expenses of studies and in­ Committee on Agriculture. the Committee on Ways and Means. vestigations authorized by House Resolution By Mr. CASEY: By Mr. RIVERS of South Carolina: 86; to the COmmittee on House Administra­ H.R. 12590. A bill to provide for the con­ H.R. 12600. A bill to amend the Railway tion. veyance of a certain tract of land in Hous­ Labor Act so as to authorize the President ton. Harris County, Tex., to the State of to establish boards to resolve Jurisdictional Texas; to the Committee on Armed Services. disputes in the air tra.ruwortation industry, PRIVATE BILLS AND RESOLUTIONS and for other purposes; to the Committee on By Mr. FARBSTEIN; Under clause 1 of rule XXII, private H.R. 12591. A bill to amend the :Bank­ Interstate and Foreign Commerce. ruptcy Act to increase the amount of wages l3y Mr. DINGELL: bills and resolutions were introduced and entitled to priority to $2,000, to provide that H .R. 12601. A bill to provide for a com­ severally referred a.c:; follows: pension, welfare, and other fringe benefits prehensive, long range and coordinated na­ l3y Mr. BAKER: shall be treated as wages. and to Increase tional program in oceanography. and for H.R.. 12606. A bill for the relief of Claude the priority period from a months to 12 other purposes; to the Committee on Mer- S • .Reeder and Reeder Motor Co., Inc.; to the months with respect to certain wage compo­ chant Marine and Fisheries. - Committee on the Judiciary. nents; to the Committee on the Judiciary. By Mr. O'BRIEN of New York: By Mr. HAGAN of Georgia: By Mr. JENSEN; H.R.12602. A bill to authorize reimburse­ H.R. 12607. A bill for the relief of Dr. H.R. 12592. A bill to provide for the de­ ment for certain moving expenses and prop­ Cheng-Tsuau Su and Angela Su; to the Com­ velopment of oxbow; ~and other facili­ erty losses to any person who is compelled mittee on the Judiciary. ties along the Missouri River between Sioux to relocate his home or business because of By Mr. HEALEY: City. Iowa. and Omaha. Nebr.• for public the acquisition of property by the United H.R. 12608. A bill :!or the relief of Abraham recreation. for fish an~ wildlife conservation, States; to the Committee on Public Works. Hershler and his brother, Zvi Hershler; to the and :!or other purposes; to the Committee on By Mr. PHILBIN: Committee on the Judiciary. .Public Works. H.R. 12603. A bill to make retrocession to By Mr. LINDSAY: By Mr. MASON: the Commonwealth of Massachusetts of ju­ H.R. 12609. A bill for the relief of Elisa­ H.R. 12593. A bill to amend the Internal risdiction over certain land in the vicinity of betha Kabsch; to the Committee on the .Revenue Code of 1954 to insure that the Fort Devens, Mass.; to the Committee on Judiciary. communications taxes will not apply to cer­ Armed Services. By Mr. WILSON of Cs.Ufomla: tain private ~unications services fur­ l3y Mr. GLENN: H .R. 12610. A bill for tlle relief of Shoko nished to common carriers; to the Com­ H .R.12604:. A blll to provide for the con­ Ara.1 Thomas; to the Committee on the mittee on Ways and Means. struction of a new Veterans• AdmlnistratJ.on Judiciary.

EXTENSIONS OF REMARKS

Foreign language~ and Federal Aid to tion," which was published in the May have come to understand more clearly than ever before the great importance to our Edacation 1962 issue of Publications of the Modern Language Association of America. country, in terms of national security If for The article is "based on an address no other reason, and there are other reasons, EXTENSION OF REMARKS of developing and maintaining a reservoir of which I was Privileged ro deliver on De­ persons skllled in the knowledge of modern OF cember 29, 1961, at the annual meeting foreign languages. Even a man of little HON. JOHN BRADEMAS of the Modern Language Association of political sensitivity could not fail; a few days America in Chicago,. ago, to have appreciated the immense impact .oF INDIANA m The text of the article follows: of the few words spoken in Spanish by Mrs. IN THE HOUSE OF REPRESENTATIVES Kennedy during the President's visit to Latin PolmiGN l.ANGuACD:s AND FEDERAL AID TO America. · · Wednesday, July 18, 1962 EDucATION I think. Mr. Chairman, that you and the Mr. BRADEMAS. Mr. Speaker. un­ (By JoHN l3B.ADEMAS, Congressn:tan from members of the association may be inter­ der unanimous consent, I should like to Indiana) ested to know the resUlts of a short survey include in the CONGRESSIONAL REOOltD the In the last several years,. 1n large pal't be­ that I arranged a tew months ago to deter­ text of an article entitled ..Foreign cause of the leadership ot the Kodern mine the ~owledge of foreign languages of Languages and Federal Aid. to Educa- Language Association. the ~erican people Members of the Congress of the United

\. 1962 CONGRESSIONAL RECORD- HOUSE 14059 States. Although a substantial number of prestige and power and infiuence is, with the scientists and educators from throughout the Members of the House and Senate . who single exception of activity in the Commu­ country to get their off-the-record views on responded said they had no foreign language nist Party, education. And, second, the what we should do. And I hope very much ability at all, a sizable number .of my col­ Soviets regard education as the key to the that Congress will act on legislation for leagues indicated that they had· at least economic, industrial, scientific, and military Federal assistance to strengthen colleges some capacity to speak or understand at development of their country. and universities this coming year. If we least 1 of 28 different foreign languages. I said they worked hard. We visited, as are going to "staff freedom effectively" in Their knowledge ranged from French and I think you in this group will be particularly the United States, we must invest far more Spanish and German at one end of the scale, interested to know, 1 of 14 experimental in higher education than we- have in the quite understandably, through a variety of language schools in the city of Leningrad. past. languages including Polish, Russian, Italian, This school taught English. Chinese, French, ·EDUCATION AND FOREIGN POLICY Swedish, Norwegian, Chinese, Croatian, Yid­ German, or Hindustani are taught in f0ur dish, Hungarian, Hindustani, and · Sioux other schools, and in the rest one can lea.rn Not only is it essential, however, that we Indian at the other. English. One begins at the second grade and invest more nationally in our colleges and universities in the United States, but our It is not primarily about languages, how­ continues the course through 10 or 11 grades. I was mightily impressed by the high caliber commitments elsewhere in the world mean, ever, that I wish to speak to you this after­ in my judgment, that we must also give far noon, but about higher education generally, of the students in this school, by the dedica­ tion and devotion of the teachers. greater attention than we have heretofore and in particular about the relationship be­ to the role of education in our foreign policy. tween the Federal Government and higher A second ma1or impression that I brought from the Soviet Union is this, that although Let me give you a specific example from some education. Although, as your chairman has personal experience. I want to offer to you indicated, I am a politician, I come to you as the Soviets are behind us today in many ways in the field of education, their totali­ the proposition that the universities of Latin a friend. A frustrated Hispanist, and former America have a ·crucial contribution to make college teacher, I now serve, as he has also tarian system gives them the capacity to train the kind of manpower, the collective to the development of strong and viable indicated, on the House Education and Labor democracies in the nations to the south of Committee and on two of the standing sub­ farmers, the lathe eyerators, the nuclear physicists, the teachers, the engineers that us. With his concept of a grand Alliance for committees of the three that deal with Progress, President Kennedy has, in effect, education. At the present time I am also their state planner believe are essential to building up the power of the Soviet state. rediscovered Latin America. We have J>een serving as chairman of the Advisory Group awakened to a new consciousness in our on Higher Education, the purpose of which I visited, for example, the Leningrad Peda­ gogical Institute in Moscow, where the di­ country today of the importance to us of is to provide by the end of January specific what happens in Latin America. And. as a , legislative recommendations on what Con­ rector told me with great pride that the 7-year plan called for him to admit to result of this awakening, we have, as citizens gress ought to be doing in the next session of this country, committed ourselves to help­ in the field of assistance to colleges and uni­ his institution, •that year, 1;500 freshmen who were later to become teachers. He said, ing in the urgent task of building democratic versities in the United States. Moreover, societies in our own heii1isphere. during the past year it has been my good using Marxist jargon, "We overfulfilled our fortune to have visited several universities plan. We admitted 1,550." At the Alexan­ VIS'IT TO ARGENTINA abroad-four in Argentina, two in England, der Herzen Pedagogical Institute in Lenin­ Last spring, with · Congressman RoBERT six institutions of higher learning in the grad I was told by the director that after the GIAIMO, of New Haven, Conn., I visited one Soviet Union, as well as a number of colleges students have graduated and are able to of the largest and most powerful countries and universities here in our own country. teach, if they are not required in Leningrad of Latin America, Argentina. While in Ar­ What I should like to do this afternoon is br in Kiev, in Moscow or in the big cities gentina I talked with the rectors of several discuss with you something of what I've where ,most Soviet young people would pre­ universities, with student leaders, with pro-· learned froin these experiences of · the last fer to stay, they are sent .off to Tashkent in fessors, with Argentine newspapermen, and · year and then to ·make bold as a .politician Central Asia, or to other parts of the coun­ television and radio reporters, with the to offer to you· as professors some ad­ try which are not so pleasant. This ,totali­ country's only Nobel prize winner, as well monitions for the coming year.· tarian system, therefore, gives the Soviets as with the Mi;nister of Education and with My thesis is a simple one and i~ is this: a kind of advantage in directing the flow President Frondizi of .Argentina himself. In a world more troubled than man has ever of national investment in education over us You aU .know the importance of our diplo:. - known, and with the United States more which, of course, we do not wish to match matic representatives abroad being equipped burdened with responsibility for leadership but which, nonetheless, poses a most serious with the languages of the countries to which than ever before, the American university challenge to us. they are assigned. I can only say that the community, indeed the American educa­ Third, the emphasis in the Soviet Union fact that my colleague, Congressman GIAMo, tional community generally, has a crucial . on education for science and technology, speaks Italian and that I can defend myself with its dramatic .results in increased indus­ contribution to mak~ in supplying that in Spanish ~eant · that we were able to leadership, and the university community is trial and military strength, ~s. I tnink, com­ have far more candid conversations in Argen­ not now doing enough. I do not for a II10- pelling evidence of the ruthless Soviet con­ tina than would certainly have been the case ment suggest that our failure to do an ade­ centration on building up national power. otherwise. This visit to Argentina per­ quate job of what S~nator JosEPH CLARK, The question we must .ask then, in as­ suaded us that the universities of Latin of Pennsylvania, has called in a very arrest­ sessing the Soviet educational system, is not America are an indispensable key to the eco­ ing phrase "the staffing of freedo.m" is pri­ whether the Soviets are ahead of tis today nomic development and the social reform marily to be charged, or entirely to be economically and scientifically but, rather, which these nations must have if they are to .charged, against the university cQmmunity. will their totalitarian system enable them to ·create d~mocratic societies and free political Clearly this is not the case. But some of pull ahead of us 5 or 10 or 20 years from .institutions that will endure. the fault does lie there. Particularly, my now? / The universities .of Latin America are going fellow humanists, it lies with you .rather Three or four weeks ago the Engineering ;to have to produce the engineers, the agricul­ than with the natural scientists. Manpower Commission in the United States tural specialists, and the technicians' required published a report which said that at the to fight hunger, poverty, and disease and to SOVIET CHALLENGE IN EDUCATION present time the Soviets are outproducing _move these countries in our own hemisphere First of all, let me tell you something of us in the field of engineers at the rate of onto the stage of the 20th century. Other­ what I learned during my visit to the Soviet 3 to 1. I think many of you in this room wise,· you and I c~n expect to see the spread Union a few weeks ago. I went· with other will be interested to see the National Science of Castro-like movements throughout Latin members of the House Education and Labor Foundation publication that will be com­ America. · Committee to · get some firsthand picture ing out some time next month by Prof. of what the Russians are doing in their Nicholas DeWitt of the Russian Research SHORTAGES IN LATIN AMERICA school systems. We visited Moscow, Kiev, Center at Harvard, in which he is going to As President Kennedy said in his great and Leningrad, and in those great cities delineate with careful statistics the situation Alliance. fol' Progress speech of last March, visited elementary and secondary schools, with respect to Soviet manpower and edu­ "We must .rapidly expand the training of technical institutes and universities. We cation at the present time. those needed to man the economies of rap­ talked with principals and students, with This Soviet challenge in science and tech­ idly developing countries. This means ex­ rectors and ministers of education. I have nical education is one of the major reasons panded universities, graduate schools, and no time here to detail for your our experience that the chairman of the House Education research institutes;". Latin America must in that remarkable land. But I can give you and Labor Committee in September named .have not only 'investment capital in the form these major conclusions from our visit. the bipartisan Advisory Group on Higher First, the Soviets are deeply committed to Education, to which I referred a minute of physical resources if it is to move ahead education. Both teachers and students take ago, the purpose of which is to develop in rapid economic and technical growth, education very seriously indeed, and they specific recommendations for what the Fed­ ·but it also needs highly trained and highly are working hard at it. They mean business, eral Government ought to be doing in the sldlled human beings, too few of which it and they take education seriously, I think, way of assisting the colleges and univer­ now has. The University of Buenos Aires, for two reasons. First, in a society where sities of our country. During the last sev­ for example, the largest university in a land there is essentially no private property, the eral. weeks we have been meeting, as famed for its, production of beef, seems far way to get ahead in terms of status and members of this group, with outstanding behind us in modern techniques of animal 14060 · CONGRESSIONAL RECORD- HOUSE July 18 husba,.ndry. A recent census. at -the Univer-. helpful· and . would also dramatize the im­ ·Government; ·with· limited resources, and sity of Buenos Aires, which has from 55,000 portance of professorships. By requiring priorities defined in terms of national policy, to 60,000 students, showed that nearly 20 that the Latins· send us some of their out­ must limit its assistance to teachers. Earlier percent were studying law, while only 2 standing scholars, we would make clear our this year, when considering revision of the percent were in the fields of agronomy and own desire to learn from them. And I would National Defense Education Act, a distin­ veterinary medicine. And the Latins, even add that these chairs might well be financed, guished classical scholar appeared before our the Argentines, are not that much more a not by U.S. Government funds, but either subcommittee. He did so to urge the in­ litigious people than we are. There are, through university to university arrange­ clusion of Latin and Greek in the language however, historical reasons for so many law ments or financing by American private section of the National Defense Education students· in Latin American universities. I business firms. This is just one suggestion ·Act. I advised this distinguished classicist have no time now to go into the reasons, that I would presume to offer as we try to that one of the Congressmen listening to his well known to many of you in this room. ·help the Latin Americans .train people in · testimony was of Italian origin and that The. fact remains that Latin America faces the skills and talents essential if they are another, ·which ·wa,s I, was of Greek not a grave shortage of lawyers but of people going to have a chance to make democracy ·origin.· I added . that both of us, nonethe­ trained in what I would call the strategic work. less, had .misgivings about his proposal. For fields, those fields that lead to rapid eco­ PROFESSORS AND PUBLIC POLICY the issue was not whether· the improved nomic and social progress. Now I have discussed briefly ,with you some teaching of Latin or Greek was advisable. Clearly it is advisable and is a self-evident EDUCATION AND ALLIANCE FOR PROGRESS facets of higher education in three _parts of case. The· issue, however, with which we as Now what can we in the United ·states the world, in the Soviet Union, in the United States, and in Latin America. I speak to legislators are faced, is whether the inclusion do tO help fill this technical gap and put of Latin and Greek under the National De­ some flesh on the bones of the· Ailiance for you as a politician with 'responsibility to help' frame legislative policies that are in fense Education Act would make any signifi­ Progress? First of all, I would argue tliat cant contribution to strengthening the in the shaping of our Alliance program_s we some measure related to all three of these areas. You may appropriately ask, "What teaching of modern languages as a contribu­ must give a ,high priority to ~id to higher tion to our national defense, the purpose of education in Latin America. And in par­ does all this have to do with us ln the edu­ the law. ticular we should strerig~hen what I have cational community, in the university com­ munity especiall~ , and even more particu­ I think that you humanists will be glad to just called :the strategic fields, agronomy, know that the issue of the relative emphasis engineering, econo:q1ics, the natural sciences, larly what does all this have to do with us in the field of the humanities?" And to this to be placed on assistance to the humanities and public administration. This does not and to science is a continuing preoccupation mean that we should oppose the develop­ question I make the following answer: American university teachers know far too of members of the House Education and ment of the humanities in Latin America, Labor Committee. This is something we but our resources in the United States are little about politics and particularly about governmental policies affecting higher edu­ wrangle about all the time, even as all of limited. We should, in my judgment, in­ you do. I also think it fair to say, and hope vest those resources where the dividends cation. Members of the American university community, especially in the humanities, it will not .be taken in a partisan vein, that make the maximum contribution to our President and Mrs. Kennedy have done more national policy goals. The goals are to have far too little understanding of the na­ ture of the political process, less of the re­ to invigorate national interest in the fine develop strong economies and strong democ­ arts and in the humanities in our country racies in these lands. In the long run, after lationship of the Federal Governme-nt to higher education, and, I fear, care not very than any occupants of the Wh~te House in all, only the universities of Latin America a long, long time. are going to be able themselves to train the much about their ignorance on either count. people that their countries require. We can­ The natural scientists, I might interject, do UNIVERSITIES' COOPERATION NEEDED not do that job for them. But we can help know their way around in the world of gov­ Now there. is a second and final reason them get started and we can help them get ernment and politics, and they have learned _that I think you should become more con­ startEld now. Let me make just one sug­ that Emerson's famous dictum, "in the right cerned with politics and public policy. It is gestion, which I think is particularly relevant state the scholar is man thinking," may be this. Enrollments in American colleges and for those of you· who teacl;l modern foreign too limited a view of the scholar's role in the universities in tp.e next decade will sky­ languages. I offer this suggestion on the world of the 20th century. All of you are · rocket. And there is little question that basis of my experience in Apgentina, and familiar with C. P. Snow's warning of the the universities will require more support offer it because of what appears to me to immense gulf that divides the natural scien­ from Federal funds, as well as from State be one of the major shortcomings of Latin tists from the humanists or from what Snow, and private sources, if they are going to meet American universiites. I refer, of course, to who is himself a dweller in both realms, the impact of these increased enrollments. the lack of full-time professors. The sug­ calls the literary intellectuals, which means The. university community, and the educa­ gestion is simply this: That we send more you. To Snow's argument I would add at tion community generally, therefore, have a of our top professors from the United States least two corollaries: first, that we politicians direct stake in the kind of programs that to Latin American universities. do not know enough about modern science; the Government develops. You, therefore, I do not oppose bringing Latin American and second, that those of you who teach . should not hesitate to make your voices undergraduates to this country, but I am arts and letters in American -universities do heard in Washington. Because if you fail frank to say that if there is a choice, the not know enough about either science or to, someone else will. Politics, like nature, priority should certainly go to sending more politics. It is this ignorance of politics on abhors a vacuum. And your voices have not of our professors to strengthen existing uni­ the part of the university. community that been loud. Your voices have not -been clear versities in those countries in order to build concerns me chiefly here this afternoon. on many matters directly affecting higher up strong departments there. Specifically, Professors should pay increased attention · education. Let me give you one example. I would urge the establishment of a new to gov~rnmental policies affecting higher I refer to the issue of the affidavit of dis­ system of exchange chairs or professorships education for two principal reasons. First, claimer in the National Defense ·Education between the United States and Latin Amer­ our universities today are being urged to Act. I · am not talking about the loyalty ica. · In Latin America, · in each country supply more trained leadership thap. ever be­ oath. I am talking about the affidavit of where such a chair would be set up, lt fore in the history of this Republic to meet disclaimer. And I am not even talking about could be known as the Franklin D. Roose­ our national needs both at home and abroad. which side · of the issue you happen to be velt Chair of American Studies, or the The Communist world is ranged against us on. I serve on the committee that deals Abraham Lincoln Chair, or ·the George scientifically and economically, as well as with this issue and I have several colleges Washington Chair, or the Thomas Jefferson mmtarily, and we need all the 'brainpower and universities in my district, yet in my Chair. Indeed, if you'll go along with a we can get for national survival. Indeed, it first 2¥2 years in Congress I did not receive John F. Kennedy Chair, 'I'd be glad to ac­ was primarily because of th_e widespread six letters on this subject-not six letters. cept a Dwight D. Eisenhower Chair. Such public acceptance of this fact that Congress Now if it be said by you in response that a chair might be established in each of half passed 3 years ago the National Defense Edu­ we in Congress should act, let's say, to re­ a dozen of the major- universities in Latin cation Act. Now I know that many of you in peal the affidavit of disclaimer, self-generated America and an outstanding professor from this room may be very unhappy about what by principle, then I would respectfully re­ the United States be named to fill it for 1 you feel to be the Federal Government's spond that Members of Congress have more year. In return, there should be established overemphasis on assisting science and tecll­ principles to champion than we have time in the United States an equivalent number nical education .and not doing :more for the for now. If the gro-ups most directly touched of chairs of Latin American studies, each humanities. Let me, however; respectfully by given issues do not themselves trouble to named after a leading Latin American hero, suggest that such an attitude may be due make their views known in Washington, is such as a Benito Juarez Chair, a Simon Bo- to a failure on your part to appreciate that it not reasonable for us to assume that they . livar Chair, a Bernardo O'Higgins Chair, or there are necessary limitations on the Gov­ really care little about them? Even in the because this year is the 150th anniversary of ernment's interest in supporting programs field of higher education Congress must take his birth in Argentina, a Domingo Faustino in the fie~d of education. For example, the into consideration a broad spectrum of what Sarmiento Chair. These chairs should not fact that the Federal Government seeks to we would call political issues. The affidavit all go to the major American universities; encourage ~he training of. more language of disclaimer raises some; civil rights, reli­ they should go to some of our excellent teachers rather than more language scholars gion, loans and grants, aid -to public. or p-ri­ smaller universities as welL The establish­ does not mean that scholars are not impor­ vate institutions-these are all issues that ment of these chairs would be mutually tant. What it does mean is that the Federal will affect· final 'legislation. So I urge you eO-NGJrnSSIONAL .RECORD- HOUSE 14061 not to be shy. Look at the-land gr$D.t uni­ ized. in nature so·I .am in mind to present substitute for . national independence, versities. 'They .:nave tor ~ny. years . c~ 'the case of one country in detail so that and Latvians dreamed of the daY when operated. very effectively with their Stat~ perhaps those who read the RECORD legislatures 1D. ·the 15haping of· education pol­ they .could ·set up an independent Icy. The university community ln our coun­ p:tight be just a little better .informed. country. . try must now help. the Fede.ral Government TP,e ·country I have. selected. is Latvia, a As the First World·War·drew to a close~ shape the Federal contribution to the _ ~er­ country that first won its independence the czarist regime ·in Riissia collapsed, lcan university. in the First World War. and Latvians saw a golden opportunity MODHN LANGUAGE ASSOCIATION'S CONTRIBUTIOB Today. there are barely 2 million . Lat~ to regain their national freedom. Dur­ Now I want to say very happl1y that the vians in the Latvian Soviet Socialist Re­ ing the war various gr,oups had been set Modern Langu~ge Association is an outstand­ public. Their neighbors, the EstonianS up to further the cause of Latvian free­ ing exception to this self-imposed isolatio~ and Lithuanians, are considerablY larger dom and national independence. of universi~y people from making known to ,Peoples. Yet the Latvians are one of the Among these groups was the Provisional govertu:nent their concern for programs in main racial groups of the Baltic area. National Council, whieh in October 1918 the field of education. The spadework that with a national history which can be merged with the democratic bloc to as­ was done during tbe mid-1950's by the. for­ traced back to the 13th century, when sure the establishment-of a government eign language progra~ of the Modern Lan­ guage -Association under . the imaginative the Latvian people embraced Christian­ for Latvia. On November 11,- Great leadership of your former executive secretary, ity. During the middle ages Latvia was Britain recognized this governing body as :Wllliaril Riley Parker, who, by the way, has first a principality of the Holy .Roman the proper government of Latvia. A had the good_)udgment to become a Hoosier, Empire. Then it was taken over by the few daJ':s later the Council proclaimed played a key role in the succe:;s of tbe for­ Teutonic knights., under whose rule the the independence of Latvia, and the eign language programs developed under the Latvians lived for· two centuries. Al­ cherished dreams of many centuries be- · National Defense Education Act. Kenneth though tbeir fate was in the hands of came reality. Mllclenberger continues to do all of' you of the Modern Language Association proud by German merchants and traders, the During the next two decades the free­ his outst~ding contribution to the modern Latvian community enjoyed an era of dom-loving Latvian people worked hard, foreign language programs in the U.s. Oftl.ce great prosperity during this period. It and despite innumerable handicaps of Education. And I would a.dd further that was at this time that the city of Riga managed to make their country a pros­ the testimony this year before the special became a leading Baltic port. perous and progressive democracy. The Education Subcommittee of . the House of When the Teutonic knights were de­ country was industrialized and the peas­ Dr. Stone, and Dr, Walsh, and Dr. Ferguson, feated by the Poles in the middle of the antry was allotted .su11icient land to all of the Modern Language Association, was carry on with the ancient and honorable Without question among the most valuable 16th century, the Latvians once again and inte111gent that we on that committee accustomed themselves to a new· set of life of providing the people with food. have heard. There is no question then. that foreign rulers. But the Poles were driven Latvians traded with the Soviet Union in helping shape the National Defense Edu­ .out of Latvia early in the 1 '7th century and the Western World. Yet even as cation Act language programs the Modern "by the Swedes, and for 100 years the they were immersed in the task of re­ Language Association has played a ma]or Latvians lived under Swedish rule. Dur­ building their beloved homeland, they . part in stimulating a rebirth of interest. in ing this period they enjoyed the greatest were constantly haunted by the danger language studies in the United States. freedom and prosperity of their history. of Russian commupism. Let me conclude by reiterating first that The peasants regained their lands and In 1939 these fears proved justified. higher education is increasingly significant in­ within our own country and in our foreign their freedom, and trade relations were Latvia, Lithuania, and Estonia were policy, both because of our own national established with France, England, and cluded in the so-called .zone of infiuence needs here at home and because of the con­ other western nations. The 17th cen­ acquired by the Russians through the tinuing challenge of the Communist world. tury is .often described as the "golden treaty signed by Hitler and Stalin in Second, let me reiterate that the .Federal age" of Latvian history. Latvian na­ 1939. After the agr~mep.t with Hitler, Government will necessarily, in the years tionalism can be traced back 'to thiS pe­ Russia demanded bases in all three Bal­ ahead, make a greater contribution to higher riod, and it was also an age of great cUl­ tic Republics. The Latvians were forced education. Finally, let me repeat that you of to sign a mutual assistance pact with the the university community must, for these tural and intellectual development. reasons, do -much more than you have in But the era of freedom, national unity, Soviet Union, which for all practical pur­ the past to make your voices heard in Wash­ and cultural growth was not destined poses .signed away their freedom and in­ ington in determining this policy. I once to last. Polish, Russian, and Swedish dependence. Latvia fell temporarily un­ had a tutor at Harvard College who was the troops pillaged the country during the der German control, but was recovered same man wlio tutored an undergraduate great Northern War of 1700-21. In 1'721 by the Russians and fully incorporated named John F. Kennedy. And I recall very Latvia was divided between Poland and into the Soviet Union. The happy days vividly how this pro~essor once startled a Russia, just as so many other countries. of the interwar period were gone and class on .-opening day by announcing, "First the Latvians fell once more under the of all, I ha.d better tell you what I believe. before and since that time have been I believe in three things: sweet reason, htgh .conquered by larger neighbors. Russia rule of forei~ers. . morality, and plenty of horsepower." If we seized a substantial part of Poland when In recent years the Soviet Union has in the United States are going to maintain that country lost its independence in promoted the industrialization of this b. free and humane society, we need all 1795. As a result of this expansion Rus­ former dairyland, and a substantial three--sweet reason, high morality, and sia acquired that part of Latvia which number of Russian factory workers set­ plenty of horsepower. And you in the uni­ was not already under her control. For tled in Latvia for this purpose. There versities must be largely responsible for sup­ are now ,500,000 Russians in the coun­ plying all three. Thank you very much. the next century and a quarter-from 1795 to 1918-Latvians suffered under try-26 percent of the total population. Russian rule, which they had not desired while before the war only 6 percent of and which they found almost unbearable. the population was Russian. . Yet they kept alive their historic tra­ Latvia has opened up to a certain ex­ What Happened in Latvia ditions of freedom and independence. tent since the death of stalin.' The Bal­ The Latvian language, culture, and na­ tic Republics of the Soviet Union are run EXTENSION OF REMARKS tional ideals were passed secretly from with less interference from Moscow than OF family to family, and from father to son. is the case in the other non-Russian re­ Each time there was a slight relaxation publics. Many functions of the all-union HON. RALPH F• . BEERMANN ministries in ·Moscow were transferred of the czarist rule, Latvians made the OF NEBRASKA . to the constituent republics after St.alin's most of it. As early as 1822, for exat:nPle, IN THE HOUSE OF REPRE~ENTATIVES death,- and the state administration of they were allowed to hiwe their own the Latvian· Republic was reorganized Wednesday,. July 18, 1962 . Latvian-language newspapers. Later and partly decentralized, Many Rus­ Mr. BEERMANN. Mr. Speaker, many they were pen;nitted to set up Latvian sianS were replaced by local Communists of my colleagu~s have taken the oppor-. schools. Thus the Latvian intellectual in the administrative work by the Lat­ tunity this week of introducing remarks traditions were maintained intact and vian Communist Party and the Govern­ into the R~coRD concerning Captive Na­ passed on fr_om one generation to the ment. The Latvian Regional Economic tions Week . . The remarks have-been ex­ next. Yet this partial success in main­ Council also enjoys· .considerable auton­ cellent .but iD. most cases rather gener&l- taining their identity, as a people was no omy from . Mosc;ow, -as well. as ~ 'hirge 14062 ,CONGRESSIONAL .RECORD- HOUSE July ·18 amount of financial aid . . The National a feeling of mellowed civilization in this ·and the great need to maintain- jobs for Republics were granted their national stately 760-y'ear-old city on the banks of our own people and the desirability of fiags-which to be sure differ only slight­ the Daugava River. with its quaint, nar­ fostering our own country above all ly from each other-and their national row lanes lined with medieval edifices others. Feeling as I do about rekindling anthems-which contain sirhilar lines and lovely· churches. Something of this the fires of patriotism and Americanism about the leading role of the great Rus­ atmosphere extends even to the modern ·in the hearts of our people, I have this sian people in the happy family of the quarter, which is alive with bustling day sent a message to the Department Soviet peoples. Ligo Day, a national shops and cafes and goOd food. of Defense on the subject of its recently holiday which had been condemned for Latvians have always been . a fine­ announced policy of buying American. a number of years as "an expression of featured and artistic people, and they The message is as follows and I hope bourgeois nationalism," could once more dress with more distinction than is cus­ that many other Members of Congress be celebrated. And in 1955 the city of tomary elsewhere in the Soviet Union. will agree with its pronouncement: Riga was opened to foreign visitors, well Soviet citizens of other nationalities JULY 18, 1962. ahead of the capitals of Estonia and coming to Riga tend to spruce up under Hon. ROBERT S. McNAMARA, Lithuania. the infiuence of /local standards. An­ Secretary ·of De]ense, Even . during these years the Russian other obstacle to total integration into The Pentagon, presence was a source of continuous the Soviet Union is the Latvian nos­ Washington, D.C.: . I wish to congratulate you on your buy­ irritation to the Latvians, who have not talgia for the West-what the Commu­ American policy as announced in the press forgotten their traditions as an inde­ nists call "unhealthy bourgeois tenden­ this week. This is as wise and commendable pendent people. But for a time disagree­ cies"-that can be seen in such things .as any decision that has been made by the ment could be expressed openly, even as Western dress, theater, and music. Kennedy administration. There has never inside the Communist Party. Latvian The churches of Latvia have provided been any justification for buying goods made publications refiected nationalism, de­ some of the most enduring ties with the in Timbuktu or in countries that may mands for greater respect for the indi­ past. Finally, Latvian is still the main possibly be under Communist influence when vidual, doubts about the official ideology, language of the ·country, although Rus­ those same goods can be purchased from our neighbors and friends right here in America. mistrust of the Communist leadership, sian has become common as a second If we do not take care of our own people and political indifference. The younger tongue. then we are worse than infidels according generation made use of the opportuni-· . The mayor of Riga recently told a re­ to the Bibl.e. ·The sooner we return to the ties for freer action to criticize authori­ porter from the New York Times that Americanism of our fathers the sooner we ties. "the national. question does not exist. It will achieve greatness, power, and influence But in Latvia, as elsewhere in the has been solved." Neither the reporter's for our country. One of ·the great needs of Soviet Empire, the new-found freedoms impressions nor the evidence which I the hour for America is full employment for have mentioned bears out this claim. every man and woman who is able and were not destined to last. Khrushchev willing to work but this will never be visited Riga in June 1959, harshly According to the Times: .achieved until we buy both steel and stove­ criticizing "various administrative short­ Latvian nationalist sentiment persists and pipes here at home and for wages 'that .will comings,'' and immediately thereafter there is grumbling about the unabated in­ go ·about doing good among the people· of large-scale shakeups were ordered in the flux of Russians into the city * * *. In the our own land. Latvian Communist Party, the trade privacy of their homes, members of the ·EuGENE SILER, unions, the Latvian Communist Youth· older generation reminisce about freedoms Member of Congress, League, as well as in literature and the that the young people have not experienced. Eighth District .of Kentucky. · arts. The so-called national Commu­ The same conclusion is suggested by nists were dismissed. A deputy premier an entirely different source: The first was removed from office for what was secretary of the Latvian Communist called "economic nationalistic 'bias." Party warned last year that the "effects Renewing America's Cities: A Study of Pravda charged the Central Committee of bourgeois nationalist propaganda Urban Renewal of the Latvian Communist Party with have not been completely liquidated even neglecting the interests of the Soviet now." Thus the Latvians remain rest­ EXTENSION OF REMARKS state "in favor of narrow local issues,'' less under Soviet rule, and there is every OF ' and there was much talk of "bourgeois reason to expect that the Latvian cul­ nationalism." As it turned out, there tural unity will survive, even while HON. ROBERT P. GRlFFIN was no return to the rigidly centralized political independence is gone. OF MICHIGAN rule of Stalin's days, and the Latvian It has been many years since the un­ IN THE HOUSE OF REPRESENTATIVES Regional Economic Council still enjoys happy Latvians have known freedom. considerable autonomy from Moscow. During the Second World War they Wednesday, July 18, 1962 But the Kremlin did decide that too suffered all the horrors and tragedies of Mr. GRIFFIN. Mr. Speaker, nearly much freedom had been made available that terrible confiict, hoping all the while every year the Congress is called upon to the Latvians, that things had gone far that the end of the fighting would be a to legislate on some phase of .the urban enough in the direction of "liberaliza­ signal for their freedom. But the Soviet renewal program. A few months ago we tion." The Soviet colonization of the. Union's reins over Latvia proved to be were asked to create a new Cabinet De­ country was renewed, despite improve­ tighter after the war than ever before, partment of Urban Affairs which would ments in the standard of living, the re­ and today these people are making the have included the activities of the Fed­ construction of a few historical monu­ best of a sad situation under a despotic · eral Government in this field. ments and national holidays and the and inhuman regime. The history of Federal urban renewal publication of the works of a few reha- makes interesting reading. A recent bilitated writers. · study, "Renewing America's Cities," Today Latvians must accept the rule brings together many significant and of the Soviet Union. They have become Buy American little-known facts about this program. accustomed to political circumstances This new book points·out that Congress which they do not control. Yet I would EXTENSION OF REMARKS authorized Federal slum clearance and like to c~all your attention to some . evi­ OF 'public housing over 25 years ago. as a dence that Latvians have not forgotten temporary unemployment relief meas­ their distinctive past. There are several· HON. EUGENE SILER ure; however, the Federal activity in reasons why the Russians have had dif­ OF KENTUCKY this field has not only continued over the ficulties in their drive to stamp out the IN THE HOUSE OF REPRESENTATIVES years but has expanded into what is national characteristics of the Latvian now known as urban renewal. people. Wednesday, July 18, 1962 This new study traces the history ·of · For one thing, Riga retains its Baltic Mr. SILER. Mr. Speaker, we spend urban renewal legislation and examines quality-which embraces German, Slav, the blood and treasure of our Nation in its impact upon constitutional concepts. and Scandinavian infiuences-althotigh time of war to preserve .it against for­ It 1tttemp~ to_put .the whole problem in it has now been integrated in the Soviet eign encroachments.. Theri ·in P.eace­ ~rspective by· reviewing what has been Union for over 20 years. There remains tinie we "forget ali about .Americimism aone and what is being done. The book 1962 CONGRESSIONAL RECORD- HOUSE 14063 also explains how the program works; from conflicting ideologies in this world in $46 billion, td which is being added new considers the basic causes of city-deterio­ which we live today. Your exercise of that _capi:tal at the rate of $3 billion every single ration, and suggests certain guidelines responsibility, as you have in the past, will year. Almost every American family, either assure to the electric power companies a directly or indirectly, owns a share in the for the future. bright place in the future of our Nation, just electric power industry. Four million !ami­ "Renewing America's Cities" was pub­ as your exercise of that responsibility will' also lies have direct ownership in your industry. lished by a nonpartisan research organi­ assure to our system and to our Nation a Untold millions of other families indirectly zation, the Institute for Social Science bright and abiding place to leadership in the own a sh~re in private power companies Research here in Washington. The au­ world. through their insurance policies, their sav- thors of this excellent book are Dr. We can be satisfied with no less than the ings accounts, their mutual funds. Thomas F. Johnson, Dr. James R. Mor­ finest and the, most efficient . elec:tricaf sys- It is the public confidence in your future ris, and Mr. Joseph d. Butts. tern in the world. and certainly, as the Presi- that makes it possible for 10 percent of the iF. ·dent of the United States said in his message total personal savings of the Nation to be Dr. Thomas Johnson has had long on resources last year, it is not a task which annually invested as new capital in the pri­ experience in the field of public policy should or can be done by the Federal Govern- vate electric power industry. research. He was assistant commis­ ment alone. Only through the full antic- An example from my own State of Florida sioner of the Federal Housing Adminis­ ipation and cooperation of private industry would show that the utility companies of tration in charge of research and legis­ can it be done wisely and effectively. America are worthy of that confidence; that lation from 1954 to 1958, during which I personally believe that private enter- they are, as they have always been, prepared time the urban renewal provisions of the prise should always remain the ba!)ic in.stru- to meet the great challenges our· country National Housing Act of 1954 were being ment of service to our people. In every case faces. With the consent of the Florida implemented. He has taught at the where it can accomplish the mission, private Power & Light co., the Florida Power enterprise should be permitted to do the job Corp., and the Tampa Electric co., I am to­ University of Virginia and Geor~e Wash­ and to do it alone. However, where in the day privileged to make the first public an­ ington University and is the author of interest of the public or the national interest nouncement that these companies will soon .· numerous publications. a job . must be done and private interest initiate construction ·of a multimillion-dollar ~ Dr. James R. Morris, a consulting doesn't want to do it or is at the time not joint project which, when completed next economist, was for a number of years en­ ready to do it, then we all must expect that year, will add 240,000 volts to the state's gaged in teaching and research at the the Government will step in and meet the high-voltage transmission system, feeding Universities of Illinois, Chicago, and Ar­ need. . world-renowned Cape Canaveral. These kansas. He is author of "Employment There will be times, as you and I both companies have joined together to provide, know, when the resources of both the Govern- solely frotp private enterprise, ample power Opportunities in Later Years," published ment and industry are necessary. We see for the :missile test center which will be the by the Foundation for Voluntary Wel­ this, for example, in the development of our earth terminal for our shots and probes to fare, and articles in numerous profes­ generation from nuclear energy. Already the moon, and beyond. sional journals. 6 nuclear power generating plants are in This new transmission line will be an 1m­ Mr. Joseph G. Butts, a member of the operation, with 10 more under construction portant link then' in the statewide intercon­ District of Columbia bar, was associated or in the planning stage, all financed largely necting power grid which blankets the entire for some years with the Washington law by private enterprise in cooperation with the State of Florida. The project will permit the firm of Gall, Lane & Howe. Formerly, Federal Government. All told, these great transfer of power all over Florida, so that all plants will have a capacity of 2 million kilo- the demand and uses can be met. It will he was administrative assistant to the watts. The progressive steps that you are make possible economy of operation with the late Representative John H. Kerr, of taking with each new project, the knowledge private producers which they will pass along North Carolina. Mr. Butts has contrib- . and experience you are gaining from actual to the consumers. uted numerous articles to legal jour­ operating experience as constant improve- We are, indeed, proud 0~ the tremendous nals and other publications .. ments are made will bring the United States · ~row~h of our f?tate, w:J;iich has moved us nearer to the goal of having this inexhaust- from the position of 20th in the Nation with lble source of power become competitive with respect to population up to ·where we are the cost of conventional fuels. In this American way we combine the re- ,now 9th. We _have grown some 76 percent Pursuing Common Goals sources and research of our Government il}, the past ,de9a.d~. Our modesty, like that of our sister States of Texas and California­ with the research, production machinery, well, some of them have not kept pace with EXTENSION OF REMARKS and the operating know-how of America's electric power companies, priv'ately owned us. I don't want to brag unduly here, today; OF however, I would like to say that we in Flor- for the betterment of all of our people. ida recognize California. It also calls itself HON. A. S. HERLONG, JR. Your progress has been nothing short of the Sunshine State, but the big difference OF FLORWA phenomenal; while you have increased elec- is that in Florida, you can see the sun shine. tric power production in the last decade by We like to remind our California friends IN THE HOUSE OF REPRESENTATIVES more than 140 percent, compared to a 40- percent increase in the Nation's gross na- that the abbreviation, "C-a-1-i-f." actually Wednesday, July 18, 1962 tional product, you have, over the past 30 means "Come and live in Florida." Mr. HERLONG. Mr. Speaker, last years, actually reduced the price per kilo- I am happy to say, and with some breach month my distinguished colleague, the watt-hour for residential service from 6 of modesty, that the total generating capa­ junior Senator from Florida, GEORGE A. cents in 1930 to o:p.ly 2Y2 cents in 1960. bil1ty of Florida power producers quadrupled Truly, electricity is one.of America's biggest during the past 10 years compared to the SMATHERS, _addressed the 30th Annual bargains. . Nation's increase of only 1Y2 times. Electric Convention of the Edison Electric Insti­ Today your industry produces nearly 40 sales quadrupled while, for the Nation, their tute, and in so doing not only paid trib­ percent of the world supply of electric power increase was only 1 ¥.l tinies; electric con­ ute to America's electric power com­ for our u.s. citizens, who comprise only. sumers were doubled compared to a net in- panies, but gave perspective to the roles 6 crease of only one-fourth. percent of the world population and, in the I know you will forgive me for 'this little qf,private enterprise and GGvernment in next decade, the power industry expects to the production of electrical power. . , · increase its generating 'capacity, so I am in- bit of bragging about home, particularly Under unanimous consent I include formed, by ano~her 135 million kilowatts. when you realize that t-he little that I have Senator SMATHERS' speech in my re.:. You already support an industrial complex said is a distinct compromise from what I · which has made it possible for the Ameri- · intended to say.· mar~s: ' can worker to turn out 3 times the average The story of our spate is just.one example. l • , , PURSUING COMMON GOALS . hourly p:coductio:t;L of the .European woi~er, ·. _pther , companies from other ~reas of the (By Ho~. GEORGE A. SMATHERS) and 7 times. that of the Japanese worker and Nation are forging ahead developi~g· t'he re- It's a real pleasure to talk to you gentle­ 10 times that of a worker in the soviet sources of our land so that the challenge of men who represent an industry which is in Union. It's no deep, dark secret that your this generation will not go unmet-the chal­ the vanguard of American progress and industry has kept the pace and, indeed, set lenge of t~e needs of our rapidly increasing development, an industry that has made a the pace for the American economy in gen- population and a challenge to the free world tremendous and dramatic contribution to eral. Your companies exemplify the broad, epitomized by the Sino-Soviet bloc. If we our way of life and an industry whose future public-ownership concept upon which rests ~re to remain the bastion of freedom, if we has widened the security of our Nation and the cornerstone of our econo~y. You have ·are to ~eet the Soviet challenge, if we are of our welfare of our people. built your companies on a solid base, attrac- to prov1de for the needs of our people, we You have achieved an enviable record in ti'~e to the investing public. You have must devote o~r full energies to a strong the great drama of the free-enterprise system, earned the confidence of the American pea- and exp~nding economy, and it is your in­ Vfhlch is the taproot of the American eco­ pie. For that reason, your industry is one dustry, gentlemen, upon which in the last nomic system. The responsible stewardship of the largest in America, by any standard of analysis such an · economy mus~ largely of private property sets our Nation apart measurement. It has a total invef!tment of depend. · · · :14064 CONGRESSIONAL RECORD_.. · HOUSE July .- 18

Just as the life substance of man pulsates we hear very much about the pl-a.ns that -y.ou can. tell you t.h.a.t. tor several w~eks, . there, through 65,000 miles of blood vessels and people are making. we were deluged with mail. I even heard arteries, so does ~e life substance o!. our I. believe the most important observation HUB]!:RT HUMPHREY, · the whip of the u.s. .economy--electric po:;ver-pulsate through tha't I could make today is to urge you to Senate, say 'that lie got over 30,000 letters some 304,000 miles of power transmission concentrate on presenting your views . to protesting this particular proposed action. lines throughout this Nation. Washington vocally, articulately and, if you · ·It's a very affirmative ·and persuasive way The amazing story of your industry under­ will, constantly. As the song goes, wishing .to influence the thinking of your legislators. . scores the vast dime_nslons of its role in our will not make it so. You must defend your ·I firmly believe that, if you muster the forces .country's social and . economic J;ramework. . point of view with the same vigor and at .In your favor, marshal the facts and present It emphasizes the importance of your.prog­ ,the same time 1n some instances with the your case, you will see tangible results for ,ress and your attitudes, your financial and, same commercial spirit that moves your .op­ yo:ur efforts. I know that inany of my friends it should be said, your political position in _position. Look to the areas where differences 'in the Congress think, just as I do, that pri­ the United States. · · · in point of view are most likely to occur. vat~ ent~rprise applies just as fully iri the This leads me to a point I know is some­ For example, consider. the new hydro proj­ ·area of electric power as it does in ·every what uppermost in your mind-that of pub­ ects, particularly in the West. Will they de­ other marketplace in America. lic power versus private power. The scene .mand generating stations be bullt by the - I would like to say, while on this general portrayed by some political cartoonists and Federal Government or by private com­ subject, that some of ·the rumors we hear other observers of the national scene is this­ panies? Will the Federal Government con­ today about the President of the United two close-ranked parties armed to the teeth struct future atomic energy electrical plants States being antibusiness are, in my humble and squared off, face to face, ready to charge such as the Hanford project, which was de­ judgment, baseless as some o! the empty into battle. About one group flies the banner feated in Congress last year, or not? Will claims made about you by your opposition. of private power and, above the othe·r, the the Government bulld certain high-voltage I have known John Kennedy since he and public power flag is unfurled. transmission lines which private companies I first came to the Congress, way back in . This type of thinking, is not only inaccu­ are ready and willing and able to bulld? 1946. We have been close, personal friends; rate; it is illusory. It is as illusory as the There are many Congressmem, there are I was at his wedding. I think I know some­ . story o! the whale that fell in love with a many Senators who have not made up their thing about the way he feels about many Polaris submarine off the cape. When the minds on these particular questions, so I subjects. submarine would go down and dive, the urge you to be your own advocate to present He is one of those men who believes what whale would dive; when the sub surfaced, the your views because, after all, this is your he says and says what he believes. I have whale got so that it surfaced and, when the right and this is the American way. never heard him utter any statement in my submarine finally fired a Polaris missile, the Another problem which we have had with long association with him that any fair­ whale went around passing out cigars. us for a long time is the preference clause minded man could interpret as being anti­ It is a giant fantasy to envision the polit­ which determines whether one customer business. He does say what he believes, as ical parties ne~tly lined up under· separate shall have the benefit of Government-subsi­ I said; he believes what he says, and I be­ banners on this particular issue. The truth dized power, while his neighbor cannot have lieve he made this statement just recently. is, there are too many extremists marching that. There must be some fairer way of He meant what he said and I quote him: under all banners. An intelligent look at the limiting or applying the preference clause "We want prosperity and in a free enter­ record shows the issue of public power versus so that available Government power is more prise system there can be no prosperity with­ private power is · primarily prescribed by equitably distributed to more users in the out profit. We want a growing economy, geographical lines, rather than by party lines. best interests of the general public. and there. can be no growth without invest­ I know some Republican Senators, mostly I know your feelings with respect to the ment that is if!Spired and financed by prof!t." from the West, who advocate strongly public positi6n of Government power from the A few weeks ago he spoke with equal power and, on the other hand, many of my standpoint of taxes, particularly income candor to the United Automobile Workers fellow Democrats from the East and practi­ taxes. There could be no realistic compari­ convention, right here in Convention Hall, cally all from the South oppose any use of son of electric rates between two systems and said, "I speak as President of the United Federal funds for power projects. where one system pays all the taxes and the States with a single voice to both manage­ These viewpoints are concerned with the other system pays little, if · any. I do not, ment and to labor when I say that your nor can anyone else I have met, come before States and areas which these gentlemen hi:we sense of responsibility, th~ sense of respon­ the honor to represent, rather than being you here and offer a lot of easy solutions to sibility of organized labor and of manage­ developed from their party or their plat­ these problems. I am convinced that the ment, is · the foundation upon which our forms, written in faraway places by anony­ thing for you to do is to state your point of hopes rest in the coming crucial years." mous faces. In recent months there has view fairly, factually, and persuasively over and over again to the people who represent In the interest of business and govern­ been some indication that, within this ad­ ment, we must remember that their interests , ministration, that more compromise is be­ you in Washington. I believe you will re­ do coincide far more than they clash, and . ginning to take place in working out the ceive a sensitive response. If your program controversies that arise between public power is best for the public interest, I think it will in this day of great challenge and ereat and private power. For instance, I have . ultimately prevail because I think that the change we must join our common interest noted that new transmission lines in the majority of the Members of the U.S. Con- in the pursuit of common goals. Business West wm be part private and part Federal, . gress, irrespective of their political affilia­ must act responsibly and fairly and with a instead of all Federal as they were originally tions, believe in the free enterprise system sense of public consciousness·, while the Gov­ planned, by this as well as the last adminis­ and want to do that which will best serve it ernment must remain a friendly referee, tration. and the Nation. objective and fair, never losing sight of the I know that many of you do not concur fact that our system is fundamentally a free I should like to make it clear, here and e:r:terprise system in which freedom of deci­ · with the compromise agreement; it is en­ now, that my suggestion that you visit your sion and choice is essential, and profit is not couraging to note, however, Secretary Udall's legislators more often was not directed to a dirty word. subsequent statement that the proposed in­ my friends in Florida. One or the other of tegrated system will do more to accomplish them keeps a chair warm in my office most This is the great challenge of the day the purpose of the project than would the . all of the time. I ha:ve thought about charg­ which we in Government and you in busi­ all-Federal system as it was originally ing them rent, but they plead that the new ness must together solve, and we look to planned. While the electric companies may · tax bill does eliminate any expenses for that you businessmen, particularly to an industry not be happy with the mixed system of kind of lobbying. They have a way, however, such as yours, to help solve this problem, private, Federal, municipal and cooperative . of wheedling a great deal of information · to help create a flourishing economy which ownership, it is fact of life and, since we from what they call a friendly chat, and will be as a deep, enlightening hope to all must live together, it is just good horse­ · they keep me and other legislat ors from the peoples of the world, drawing them into sense, it seems to me, to work together in a our area of the country fully up to date on the atmosphere of a free and democratic way that wm promote all of our best in­ what they are doing and plan to do in the ~conomy such as that to which we belong. terests. future. · There are, as you know, some groups which Remember, too, while you have only one favor the expansion of Federal power systems voice, your customers and your employees The Federal Home Loan Bank Board at the expense of your business and your and particularly your stockholders are num­ territory. To gain their ends, these groups bered in the thousands and hundreds of EXTENSION OF REMARKS make themselves heard loudly in Washing­ thousands, for that matter. When you en­ OF ton. They are not there for a courtesy call; list the ~upport and good will of all these they're on the job continuously, advocating people, you have gained the strongest pos­ HON. JAMES C. DAVIS what they honestly believe in. They are a sible ally to project your point of view. A vocal group, and we hear from them a.bout recent case in point was when the Federal ­ OF GEORGIA the great power supply that they plan for Savings and Loan Association did not like IN THE. HOUSE OF REPRESENTATIVES. our Nation_;_but we don't hear very much certain provisions of the tax bill which is Wednesday, .July 18, 1962 about the utllization of tax ·funds; or that now before my committee in the Senate. tax-qollecting, private power companies are They got their subscribers and policyho.ld­ Mr. JAMES C. DAVIS . . Mr. Speaker, ·competent and willing to do the job, nor do ers and their shareholders to write, and I as you are aware, I have been acutely

l 1962 ·CONGRESSIONAL RECORD-- HOUSE 14065 concerned with the operations of our ing the past 2 years. I specifically disclaim. ·tended hearings conducted by my ·subcom­ Federal Government agencies and de­ status as an expert; I have never managed mittee? partments for many .years. This con­ an association nor have I acted as an officer First, it is one of regulation and super­ cern, I believe, has been shared by my or a director of an association. Until the vision dominantly by the staff and the under­ colleagues. A few years ago the Con­ time of my selection to chair the Special staff of the Home Loan Bank Board and the gress actively dealt with the operations Subcommittee on the Home Loan Bank district banks. Board of the House Committee on Govern­ Second, the many instances of arbitrary of some of the so-called regulatory agen­ ment Operations by its distinguished chair­ and extralegal mandates of the Director of cies and it is hoped that there has been man, the Honorable WILLIAM L. DAWSON, of the Division of Supervision, Mr. John a resulting improvement in their opera­ Illinois, I had little interest in or active con­ Wyman. tions. For the past 2 years my distin­ cern for the problems of savings and loan as­ Third, the absence of regulation· to fore­ guished colleague, the Honorable JoHN sociations-whether State or federally warn against practices which are repeatedly E. Moss of California, has been chairman chartered. cited by supervision as the basis for the of the Special Subcommittee on the As a former active real estate broker I had extralegal demands or as in the case of Long Home Loan Bank Board of the House had occ·asion to do business with associa­ Beach, for the ultimate action of seizure. Committee on Government Operations. tions, and Of course my concern as a broker I am going to discuss the three points­ was in securing the necessary financing of but first let me say to you gentlemen that This special subcommittee has been mak­ , home-s for which I had secured buyers. I was I am not an· enemy of regulation of your ing a study and investig~tion of the Fed­ almost completely unprepared for the reve­ industry nor am I a person who feels that eral Home Loan Bank Board and its lations which unfolded almost immediately Government is always wrong and industry constituent agencies. This Federal upon a::;suming the chairmanship of this right. 'But I am a· firm' believer that neces­ agency, the Federal Home Loan Bank subcommittee. sary regulation must be fairly and equitably Board, has a supervisory and regulatory _ · You may recall that initially I launched applied and that those who are regulated responsibility and function over the sav­ an investigation into the then recent seizure have the absolute right and need to know ings and loan associations whose ac­ of the Long Beach Federal Savings and Loan the terms of regulation. 1\nd, as a Member counts are insured by an instrumentality Association in Long Beach, Calif. I under- of Congress, I will support this philosophy -took my investigative responsibilities without and I will oppose with all my strength, and of the Federal Government--the Federal any prejudice or preconceived notions -as to wisdom, and persuasiveness, a contrary Savings and Loan Insurance Corpora­ the merits of the seizure. I envisioned my course. tion. The savings and loan associations, role as that of a fact finder. I sought the op­ I have charged the understaff of the Board we are aware, are an integral and vital portunity to proceed cooperatively with the with arrogating unto itself the right to set part of the Nation's homebuilding then chairman of the Federal Home Loan policy and the right to determine the condi­ industry. Bank Board, Mr. Albert J. Robertson, his tions of supervision and I recognize that this The hearings of this ·special subcom­ two associates on the Board, and the Board's is a serious charge. So, I think it is incum­ staff. In consonance with that objective, I bent upon me to document, with the words mittee present a startling and amazing instructed my staff to extend the greatest co­ picture of some of the past operations of of supervision, some typical examples. operation to the Board in the development of In discussing with Mr. Wyman whether or this agency. There is apparently great the facts surrounding the Long Beach case. not two instances of early disbursement of need for reform and correction. It is A moment ago I mentioned the fact that funds to a builder constitutes a~d supports hoped that the present members of the I was unprepared for what shortly developed a charge of unsafe or unsound practice, I Bank Board will make use of the public as the Board's pattern of operation. Let me contended that it was not conclusive evi­ record to effect improvement. emphasize, gentlemen, in all sincerity that dence to support such a charge-that full On Monday, July 16, 1962, Congress­ I was totally unprepared. development of the facts were necessary to man Moss was the key speaker at the A reading of the first day's hearings with · :render a proper judgment. annual convention of the Georgia Sav­ the then chairman of the Board, Mr. Robert­ Mr. Wyman responded and _I quote: son, on the witness st~nd, I am confident will . ings and Loan League., held in Asheville, permit tJ;le reader full opportunity to share "I think we did a considerable develop­ · N.C. I feel strongly that all Members of with me the feelings of frustration and out­ ment of fact here. Again I made niy. state­ the House will find Congressman Moss' rage which I experienced on that day and in ment as to my view on :tl}is, and wherever address both interesting and informa­ the succeeding 11 days. · Chairman Robertson· any .such situation as this. has come to my entered plea of privilege; he was uncertain . personal attention; I have entleavored to tive and I ask permission to include it a stop it and I think we have stopped it, and at this point in the RECORD. whether it was executive .or judicia.I--or a combination of both; and he hadn't the to further restate the matter, unless and The address follows: slightest idea as to the basis for his ·plea. until the Board tells me to do otherwise, and AN ADDRESS BY CoNGRESSMAN JoHN E. Moss, But it became obvious that he did not want as long as I hold the position that I now CHAIRMAN, SPECIAL SUBCOMMITTEE ON THE to discuss the merits of the Board's case . hold, when I find this kind of thing I am HOME LOAN B:ANK BOARD, BEFORE THE against Long Beach-even though at that going to do my best to get it stopped." GEORGIA SAVINGS AND LOAN LEAGUE ANNUAL point it represented a case decided-a case I described as arbitrary and dogmatic his CONVENTION AT ASHEVILLE ,' N.C., JULY 16, closed. Seizure had taken place and a super­ judgment that the single or double occur­ 1962 visory agent was in charge of Long Beach rence on its face without having to probe I feel particularly privileged to have the Federal-a fact fully accomplished-without any more deeply, constitutes grounds for opportunity of appearing before the same affording the management of Long Beach charging unsafe and unsound. forum utilized by Mr. John Wyman in 1958 Federal the slightest opportunity to be in­ Mr. Wyman then said, and I quote: when he enunciated a Wyman doctrine as a formed of the specific nature of charges or "Well, that is where you and I don't agree guide to the regulation and supervision of affording an opportunity to protest. on it. I have stated my view on it, and it is savings and l9an institutions. . Congress in 1954 amended the basic act very definite, and as far as I am conce:r:ned I am also pleased to have the opportunity which- constitutes the charter of the Board. quite conclusive." to discuss with the Georgia Savings and Loan It specifically provided for hearings in ad­ At another point during the hearings we League the problems which have long been vance of seizure. A reading of the legislative were discussing with Mr. Wyman credit poli­ of concern to you and to the officers of your· history will confirm this, I think, except in . cies and practices of the association and league. Far too few of the leaders in the those instances of the most urgent nature, the relationship of slow. loans to such ·poli­ savings and loan field have taken the time where it is necessary to protect the interests cies and practices. to express their concern with the rather in­ of the institution and the interests of the ' Mr. Wyman insisted that the dollar formal procedures and policies which have shareholders. Long Beach was not such a amount of slow or delinquent loans was the for so long formed the 'basis fo:r supervision case. The extended hearings on Long Beach influencing factor · without regard to the and regulation of the great savings and loan ' were followed by hearings involving a mem­ assets or ·number of loans of the particular industry. I feel that I must take cognizance ber of the Georgia League;· hearings per­ association. Let me read the exchange I of the role played by your own executive taining to an association in Texas; and an­ had with Mr. Wyman on this subject, and I vice president, Mr. Ed Hiles, in giving voice other in Clovis, N. Mex. In addition, the quote: · to the concerns of your industry-in de­ investigations into the facts surrounding "Mr. Moss. If you make more loans, you manding the greater clarity and definity of instances of supervisory action against at are going to have more delinquencies, aren't regulation needed as a guide to those who least half · a dozen others throughout the you, regardless of how prudent you are? seek to faithfully conduct their businesses United States, have developed a record which "Mr. WYMAN. Well, I would say this to in the interest of the investing community. speaks most persuasively in support of the you, sir: We are not going to overlook the I want to make it very clear that my ap­ need for the definition of terms for the re­ dollar increase in the amount of delinquent pearance here today is as the chairman of an sponsible regulation of savings and loan loans. investigating subcommittee of the House of institutions by the Federal Home Loan Bank "Mr. Moss. I didn't say you should over­ Representatives, and that I will discuss in­ Board. look the dollar amount of delinquent loans. formation and knowledge gleaned as a result . What is the pattern which has been clearly "Mr. WYMAN. We are not going to look of the activities of this subcommittee dur- developed throughout the course of the ex- at the percentage to assets .only. We are 14066 CONGRESSIONAL RECORD- HOUSE July 18 going to look at the other aspect of the sound management and sound practic;:es, and .loan industry . . Now w~ are told that the matter." to request that they select, from among Board regards many of these activities and I expressed my opinion on this attitude themselves, a committee of three to d.evelop interests as constituting activities of in­ by the following statement and I quote: a program which could correct the matters terests in con1Uct with the impartial manage­ "Well, now, let me tell you something. of -supervisory concern and provide for the ment or the exercise of impartial judgment You k'}ep telling me what you are going to sound management and operation of the as­ in the operation of these associations. If do and what you are not going to do. Let me sociation. His letter required that the direc­ ·that be true, then here above all other areas make it clear to you that one of the purposes tors at that meeting in Little Rock establish the Board must, if it is to be consistent and of this inquiry is to develop exactly what · a committee of five directors, not three as it is to be responsible, define and give clear you do. And then I will be perfectly willing he had been instructed; and that the pro­ notice of activities which constitute conflict to see whether you are going to be the ·sole gram was to be approved by the Division of of interest or self-dealing. To apply, as they arbiter of what you do." Supervision. · do now, a standard of flexibility is to I am perfectly willing to concede the sin.­ Mr. Wyman demanded. This is very clear. countenance a standard highly discriminatory cerity of Mr. John Wyman. I am willing to He did not request, as he was instructed. Mr. to many who have spent years in developing concede the competence of Mr. Wyman. Wyman demanded, and his actions exceeded strong and constructive economic units in1 But--contrasted against these concessions is the specific instructions imposed upon him their community. the fundamental principle that we are aNa­ by his superiors, the members of the Fed­ I am told that .Mr. Wyman in 1958 gave you tion governed by law and that it is our right eral Home Loan Bank Board. He exceeded . his views as to the nature of some of the con­ to be governed by law whether we are a char­ his authority in that he required the em­ flicts or violations of fiduciary relationships tered group or an individual American. The ployment of a new managing officer and an on the part of officers or managers of associa­ wisdom of Mr. Wym,an and the sincerity of increase in the number of directors from 7 tions. lam also told that Mr. Creighton, the Mr. Wyman do not in themselves constitute to at least 11. Mr. Wyman specifically re­ Chief Counsel, in a speech in 1957, first un­ an adequate substitute for definitive rule or quired that the new managing officer and the dertook to define the Chief Counsel's post-. regulation. And nowhere in the law origi­ new directors be acceptable by and to the tion. But nowhere do I find the Board's nally creating the Board nor in any of the supervisory agent prior to appoi~tment or position--and it is the Board, not the Direc­ amendments to that law over the years is election. tor of Supervision nor the Chief Counsel who there any sanction for the role assumed by I think I have made my point and illus­ is charged with the responsibility of setting Mr. John Wyman. trated for you the almost contemptuous be­ policy, a responsib111ty given them by the Going back to the many instances of arbi­ havior of Mr. Wyman. He apparently had Congress with full authority to discharge it. trary and extra-legal mandates of the Direc­ not agreed with the Board instructions and It is to the Board we .must look for guidance, tor of the Division of Supervision, Mr. John so he undertook, on his own, to substantively and we have every right to expect, and I do Wyman: The staff of the Bank Board has change them in defiance-not in compli­ expect, that the Board will respond by laying gone into solvent associations in a number ance-with those instructions. down the guidelines which will permit you of instances and ordered the removal of di­ Now we really get down to the crux of the to operate-knowing fully that which is rectors, the substitution of management, whole problem. We are told that you can't expected of you. and changes in the numbers of directors. define by regulation these practices cited by The work of the subcommittee continues. A search of the statute discloses no sanction supervision as basis for supervisory actions Shortly we will be issuing reports based on for this action. ·In fact the Board's requests against these institutions. And speaking the hearings involving the Clovis, N. Mex., to the Congress for the authority to do these from 14 years of legislative background, I and Alice, Tex., associations. Included in things have been -denied over the years. assure you that I recognize the great diffi­ these reports will be recommendations Now in the case of Clovis, N. Mex., we culty encountered in the promulgating of which I have every confidence will rec.eive have an even more shocking example of the legal definitions and the spelling out of the full support of the Committee on Gov­ arbitrariness of this supervision which can guidelines in law or regulation. But I also ernment Operations. We have to complete best be mustrated by reading an excerpt recognize that in order to cite a practice as additional hearings in Washington with the from the minutes of the Federal Home Loan the basis for action against an association Board and its staff in order to complete our Bank Board instructing the Director of or its officers-that the citing itself consti­ work on the Atlanta case and issue a report Supervision, Mr. John Wyman, to do certain tutes a definition, and that the repeated on that. And shortly the subcommittee things, and I quote: citing of these instances of objectionable must decide which additional cases it will "The Board instructed the Director to practices leads to a series of instances of also hear. Obviously we can't· hear all of fully advise the board of directors of the definition and certainly after more than a the complaints received. We have at­ Clovis association as to the matters of super­ quarter of a century of operation, the Board tempted to select those which illustrate im­ visory concern arising from its management from its own records should now be able to portant basic problems and their relation­ and operations and to request the board of reduce to definitions the terms of manage­ ship to the Board and the industry itself. directors to provide the association with ment practices which it finds objectionable, We on the committee feel that we can best sound management and sound practices, and and give notice to the entire industry that discharge our responsib111tles to the Con­ to request that the board of directors select these, at least, will not be tolerated. Such a gress and to the public by carefully select­ a committee of three from among their definition or series of definitive regulations ing cases which develop a record supporting members who will be acceptable to the Di­ do not have to be exclusive. sound recommendations. rector and who will be authorized and di­ They can still provide for the unforeseen I want to express to you my confidence of rected promptly to develop a pz:ogram which development of conditions which might con­ the sincerity of purpose of the new Chair­ will correct said matters of serious super­ stitute another basis for charging unsafe man of the Board, Mr. Joseph McMurray, visory concern and provide for the sound or unsound practices. And certainly the and his associate, Mr. Joseph Williams, of management and operation of. the associa­ Board can, without any difficulty define rela­ Virginia. I can assure you that they are cog­ tion in a manner acceptable to the Federal tionships which constitute in their opinion, nizant of every development in the work Home Loan Bank Board." improper self-dealing or conflicts of interest of the committee. They have been ex­ Presumably acting on these instructions, on the part of officers or directors of asso­ tremely cooperative with the committee in Mr. Wyman called the board of directors ciations. facilitating its study of Board operations. of the Clovis association to Little Rock to The thing that has impressed me greatly as And I have the personal assurance of the meet with him and the supervisory agent. I have studied the problems of the past 2 present two Board members that the rec­ At this meeting, without prior discussion, years is the fact that the Board has a most ommendations of the committee will be they were read a nine-page letter setting contradictory attitude-accepting regularly most carefully considered by them, just as forth Mr. Wyman's findings of unsafe or un­ as it does applications for charters or for in­ I have the assurance of a number of the sound policies and practices, and they were surance of accounts from new or existing members of the House Committee on Bank­ told to sign a letter committing themseives associations, whose boards of directors are, in ing and Currency of their interest in the to full compliance with the-and I quote­ most cases, closely identified with activities work of the subcommittee and their desire "corrective action required." allied to the homeownership and home­ to cooperate in the sponsoring of necessary Mr. Wyman had been instructed "to ad­ building industry, are accepting those appli­ legislative changes which might constitute vise" and "to request"-not "require." cations without imposing any restraints. part of the recommendations of the sub­ Under that authority Mr. Wyman's letter The Board must certainly recognize that the committee. states and I quote: chief interest of th.ese people is to encourage I think it is important that the industry "It is imperative that conclusive steps now the wider ownership of homes in order to give careful thought to the recommendations be taken to put an end to the unsafe or un­ stimulate activity in their allied business of the subcommittee, that 1t familiarize itself sound operation of the association and to interests. As a matter of fact, from the very with the nature of information developed in the self-dealing relationships and practices beginning in the days when the Board had the many days of hearings and the thou­ which are the cause and the dominant pol­ to go out and encourage the formation of sands of pages of testimony which ha& been icy of that operation." savings and loan associations, it was to the taken in t:ne past 2 years. The committee Mr. Wyman did not advise; he stated his man in the allied fields that they looked to does not ask concurrence in its reco,mmenda­ conclusions as fact. for the support, the initiative and the tions but it does hope for careful considera­ Mr. Wyman was instructed to request the guidance, which has resulted in the highly tion of those recommendations and for con­ directors to provide the association with successful development of the savings and structive comment. With the support of the 1962 CONGRESSIONAL RECORD- HOUSE 14067 industry, I am confident that we can effect which has contributed unusual talents to nomic stabilization in the event of mobi­ those changes which must be made tf you our own country. I have heard scientists ·Uzation. are to finally be regulated fairly and equita­ speculate about what they call the Hungarian The award he received is the highest bly by rule and regulation rather than by paradox. "How is it" they say, "that; Hun­ conferred by the Office of Emergency the whims of the ~tafr of the Bank Board. gary has produced far more than its normal share of high talent in the sciences, the arts, Planning. It is given only to individuals in other fields?" who have made outstanding contribu­ • • tions to public service, the Nation, or Remarks of Mr. Miklos Sperling and Mr. Sperling, we are delighted that you humanity. The award was presented by came here, became one of us, and that you Mr. Edward A. McDermott, Director of Secretary of State Dean Rusk on joined other distinguished people from other the Office of Emergency Planning. In Presentation of the Rembrandt Peale countries who have come here to help us his presentation SJ)eech, Mr. McDermott work out this story of freedom. We appre­ hailed Mr. Skubal's "oustanding and ex­ Portraits of George and Martha· Wash­ ciate your interest in these rooms. Y:ou join others, such as Ambassador Cowen and Mrs. emplary work in governmental, public, ington to the Department of State, Cowen who are here today and others who and business relations which has con­ May 29, 1962 have taken a deep personal interest in this sistently reflected credit on the agency, eighth floor. And I hope you take some ·and has been a significant contribution quiet satisfaction from the interest and ap­ to the public service and -the Nation.'' EXTENSION OF REMARKS preciation shown by all of our distinguished Both at the State and National level, OF foreign visitors whom we entertain here at Mr. Skubal has worked in several ex~ these handsome and distinguished portraits HON. JOHN BRADEMAS of our first President and his First Lady. ecutive capacities in the emergency stabilization field throughout the period OF INDIANA We are deeply grateful and thank you very much for coming. since his World War ii military service. IN THE HOUSE OF R~RESENTATIVES Born in Milwaukee and a longtime resi­ Wednesday, July 18, 1962 dent there, he is the son of Mr. and Mrs. Mr. BRADEMAS. Mr. Speaker, one John Skubal of 3130 South Hanson of the outstanding citizens of the State Leonard A. Skubal: Distinguished Street. Mr. Skubal now lives with his of Indian!). is Mr. Miklos Sperling, of . wife, Mary, and their six children, in Indianapolis, · an industrialist, engineer, Public Servant Falls Church, Va., where he is . a past and civic leader. Mr. Sperling and his president of the Falls Church Citizens' wife recently presented to the Depart­ EXTENSION OF REMARKS Association. ment of State an outstanding gift, the OF I should particularly like to emphasize Hurst portraits of George and Martha Mr. Skubal's work in the special area of Washington, oil paintings by Rem­ HON. CLEMENT J. ZABLOCKI speaking, on behalf of the agency, at brandt Peale. OF WISCONSIN governmental and business conferences. This was the only pair of original por­ IN THE HOUSE OF REPRESENTATIVES According to his superiors, his work in this connection has been exemplary and traits of George and Martha Washing­ Wednesday, July 18, 1962 ton known to be in private hands and has consistently reflected credit on the the paintings constitute a national Mr. ZABLOCKI. Mr. Speaker, too agency. His sincerity and preoccupa­ treasure. often the bad is overemphasized and the tion with making preparedness work has I was fortunately present at the cere­ good overlooked where our Federal em­ had real impact on many audiences and mony at the Department of State at ployees are concerned. Daily our civil has helped to generate widespread inter­ which Mr. Sperling made a moving ex­ servants are maligned as "bureaucrats," est not only in economic stabilization but temporaneous statement of his reasons in the worst sense of that word. We · in resource preparedness generally. He for presenting these fine portraits. tend to forget that Federal employees are has performed equally well as a lecturer Mr. Sperling's remarks and excerpts people, that each one has an individual­ at the Civil Defense College, the military from the remarks of Secretary of State ity of his own. We forget, that is, until service colleges, as a member of many Dean Rusk follow: one among the ranks goes astray, falls panels on preparedness, and as a speaker from grace. Then the instant spotlight at business and professional conventions. Mr. SPER~ING. Mr. Secretary, Mrs. Rusk, ladies and gentlemen, and friends of mine of nationwide publicity is turned on the In connection with his increasing need who gather here for this occasion, I'd like to offender. His abuse of, or inefficiency in, for communications skills,. it is inter­ recall 36 years ago a young engineer. By my his office becomes widely known and un­ esting to note that he promptly enrolled own choice I reached the shores of this coun­ fairly reflects on all civil servants. At in an evening course · at Catholic Uni­ try of ours. As a young fellow, I was a great the same time, a Federal employee who versity to improve his writing and speak­ admirer of a big freedom fighter of the time does an exemplary job too often goes ing. Mr. Skubal's fine performance in of 1848-49 in Hungary, Louis Kossuth, who largely unnoticed. Too often his accom­ this regard is attested to in letters re­ believed in freedom, liberty, brotherhood, plishments are not "news" in the way ceived from various groups before which and equality. As a young fellow, I couldn't see it in Europe, so I chose to come to the that the deeds of the wayward public he has spoken. Excerpts from some of United States. By hard work, by being an employee are. Even · should the good those letters follow: · engineer, I made a step forward to be able to bureaucrat be recognized by the Govern­ Chamber of Commerce of the United have an art collection of my own. ment for his work, the likelihood. is re­ States: At this time I'd like to tell you, Mr. Sec­ mote that his accomplishments will be Your explanation of plans for emergency retary, that I would like to present to you, known outside of his family, friends, and economic stabilization-and your sugges­ which is an honor to me, George and Martha coworkers. It is little wonder then that tions for greater business-Government co­ Washington by Rembrandt Peale for the the public has a one-sided, warped view operation-were just what we needed. State Department as a symbol of freedom, of the Federal employee. The outcome, frankly, exceeded even my devotion, and appreciation for my country fondest expectations. I think the question in which I live today. In the interest of correcting this in­ period made it clear to you that the audi­ Secretary RusK. Mr. Sperling, you could equity, I would like to draw the atten­ ence wanted to know, and needed to know, not have done us more honor or given us tion of my colleagues to the outstand­ more about this vital subject. more pleasure than to make this magnificent ing record of public service compiled by gift to us to commemorate in this room the Mr. Leonard A. Skubal, a native of Mil­ American Hotel Association: great first President and his First Lady. We continue to get complimentary letters These Rembrandt Peale paintings are treas­ waukee, who recently was awarded the Distingished Service Award of the Office from hotel people who heard your remarks ures of art. I know that our friends from at the hotel show 2 weeks ago. You cer­ the Gallery field who are here with us per­ of Emergency Planning. tainly did alert them to the need for co­ haps are envious because these are, I be­ Mr. Skubal is Chief of the Economic ,operating with all defense agencies in this lieve, the last two of these paintings that Stabilization Division of the Office of field. · have been available in private hands. The others are already in institutional care. Emergency Planning, wh,ich is part of the Automobile Manufacturers Associa- • • • Executive Off}.ce of the President respon­ tion, Inc.: ' The fact that these were given to us by sible for military preparedness. His It is always a pleasure for people inter­ Mr. Sperling is to me of specialimp<)rtance. work involves the development of na­ ested in a given subject to hear it expertly He came to us from Hungary, a country tional preparedness for emergency eco- discussed-and this you did. CVIII--886 T! 1.4068 CONGRESSIONAL RECORD- HOUSE ;July 18 My own personal feeling is that such meet­ ing of, and a constant regard for the stake foreign demand." . Section. 3 of the act,. 50 ings are one of the very best media for two­ of, the American people, and the problems App. 2023, authorizes the President to "pro­ way communication between Government involved at all levels of government. hibit or curtail" the exportation of any and industry, and I am sure you agree with It is also interesting to note that every commodities in order to implement this me that such communication is essential to Governor to whom our program was pre­ poliey. The authority to determine the both. sented responded favorably. This achieve­ commodities to be controlled under the act ment, in and of itself, reflects program ac­ was delegated by the President to the Sec­ Director, Industry Office, Staff College ceptance in a difficult field. Mr. Skubal has retary of Commerce and is administered by Industry Defense Course: made an outstanding contribution to this the Office of Export Control of the Bureau of Again, many thanks for your usual fine work also because the basic material which International Programs. and effective assistance as guest lecturer at was submitted to the 40 Governors, and is The number of board feet has increased the Staff College Industry Defense Course. used by their State representatives, was ei­ from 608,000, in 1954, at a price of $339 per It is always good to have you with us for ther created largely by Mr. Skubal or de­ thousand board feet, to 10,185,000 board feet, these sessions, which are increasing in their veloped under his immediate supervision, at a price of $668 per thousand in 1960. This effectiveness and attendance because of per­ subject only to my general policy guidance. shows an increase of 1,500 percent in the vol­ sons like you. Thanks to your sound, plausi­ ume; approximately 97 percent in price. ble and stimulating presentation, the com­ To these commendations, I would like These statistics, plus more, are contained ments from all who attended were extremely to add my own ·words of praise for my in hearing report No. 8, of our committee, complimentary. friend, Leonard Skubal. A fine public pages 295 to 315, inclusive, and in other sec­ servant and a devoted family man, he tions of volume 8 report, which confirm the National Association of Real Estate surely is an outstanding Federal' em­ damage being done to this domestic in­ Boards: · ployee. To him and to the thousands of dustry. This is a ·most vital subject and our others like him throughout our govern­ The adverse effects of increasing foreign members were fortunate in having the op­ demand for American raw material of wal­ mental structure go my best wishes and nut, logs, compined with the importation of portunity to hear your first-hand report. I heartfelt gratitude. am sure that this meeting will result in the finished veneer, have been and are creat­ greater understanding of the problem by our ing a situation that can well spell the ex--.. members and we are looking forward to tinction of this· valuable domestic ~ndustry. working closely with you in the future. .The industry's long-term plans. and pro­ grams for increasing the production and State of Wisconsin, civil defense di­ Veneer Logs quality of this valuable, natural, raw ma­ rector: terial-which, incidentally, is the most valu­ able of all American natural woods native Len was good enough to come out here EXTENSION OF REMARKS OF to this country-is suffering from this two­ for our initial area meeting to get the pro­ pronged attack. gram launched, and has always made himself I would recommend that the statisticians available for consultation and guidance. He HON. JOHN H. DENT OF PENNSYLVANIA and policymakers of the Business and De­ has been one of the people in OEP to have fense Services Administration review the done outstanding and original work in get­ IN THE HOUSE OF REPRESENTATIVES testimony of this committee for whatever ting a stabilization program moving. · W~dnesday, July 18, 1962 help it may give in making a determination. In addition to his speaking engage­ There may be some American industries ments, Mr. Skubal has had virtually Mr. DENT. Mr. Speaker, this week that are expendable. I know of none, and the complete responsibility for staging, I received the following telegram: certainly this one is not. CHICAGO, ILL., July 12, 1962. Sincerely yours, as well as participating in, the first four JOHN H. DENT. of the agency's regional stabilization Hon. JoHN H. DENT, House of Representatives, Mr. Speaker, in line with this protest conferences in New York City, Atlanta, washington, D.C.: . I San Francisco, and Chicago. The audi­ BDSA Acting Administrator A. A. Bertsch of any further depreciation of this indus­ ences for these conferences represent today advised walnut industry hearing on try I am compelled to call to the atten­ business, finance, the professions, and veneer log exports to be held Wednesday, tion of Congress the following related State and local governments. These July 18, 10 a.m., room 4817, Department of correspondence. ' conferences are intended to pave the Commerce Building. Obviously our last op­ The first is a copy of a letter to the way toward active State and local in­ portunity, but unfortunately meeting to be President calling for aid and relief from chaired by BDSA instead of by Bureau In­ Canada. The letter is signed by 43 Mem­ volvement in stabilization preparedness. ternational Programs. Your continued sup­ According to Edward F. Phelps, Jr., Dep­ port at above place and date urgently needed. bers of the Congress and reads as fol­ uty Assistant Director for Economic Sta­ Respectfully, lows:

bilization and his immediate superior, DoNALD H. GoTT, CONGRESS OF THE UNITED STATES1 Mr. Skubal's accomplishments in putting American Walnut Manufacturers Association. HOUSE OF REPRESENTATIVES, Washington, D.C., June 12, 1962. on these conferences have been outstand­ I answered by offering what evidence ing, and the agency, as well as national THE PRESIDENT, I had at hand, on such short notice, The White House, preparedness, · have benefited substan­ showing that the facts in the case of Washington, D.C. tially from them. walnut veneer logs demand immediate DEAR MR. PRESIDENT: As Members of Con­ Mr. Phelps had this further to say of remedial action. . My appeal to BDSA gress representing districts across the Na­ Mr. Skubal: follows: tion with substantial employment in the On the technical side, of course, Mr. Sku­ JULY 16, 1962. forest products industry, we are pleased hal has brought to his present position a Hon. A. A. BERTSCH, with your order for a full study by all Fed­ unique and substantial experience. He has Acting Deputy Administrator, Business and eral agencies which can contribute to the almost 17 .years of participation in the op­ Defense Ser1)ices Administration, De­ correction of the economic problems con­ eration and planning for emergency eco­ partment of. Commerce, Washington, fronting this industry. nomic stabilization programs. In setting up D.C. Your action is an appropriate and most requirements for our regional stabilization DEAR MR. BERTSCH: As chairman of the gratifring response to our appeals for as­ conferences, for example, he was able to subcommittee studying the impact of im­ sistance and those of the industry to various draw upon this experience, and to establish ports and_exports on American employment, officials of your administration. ' the standards and criteria for our regional I learned that the exportation of veneer logs The problems, as you have recognized, . economic stabilization omcers to ·follow in · has been the cause of great damage to the are large, diverse, and complex . arranging and conducting the conferences domestic veneer producers. This has taken Interagency cooperation in dealing with in each area, as well as the preparedness two direct routes: one, the increased price them is clearly indicated. The assistance of program to be followed after each confer­ for high quality logs has driven up the Congress has been extended as well, through ence. As a result, we were able to obtain prices, making it more difficult for American current hearings of the Senate Commerce the people we wanted at these conferences, producers to compete with imports, and two, Committee and through the joint efforts of and to achieve the purpose of an e1fective it leaves the lesser quality logs for domestic House Members whose signatures appear be­ low. Ul)derstanding of our field program in eco- use. While the widespread ramifications and nomic stabilization. · ' Under section 2 of the Export Control Act complexities of the situation demand care­ Inasmuch as Mr. Skubal has had experi­ of 1949, 50 App. U.S.C. 2022, it is the de­ ful study, the urgency of its increasing ef­ ence at every level of economic stabilization, clared policy of the United States to impose fect on employment and on the stability of National, regional, State, and city, his ap­ export controls to the extent necessary "to major industry requires action of an emer­ proach is practicable and effective rather protect the domestic economy from the ex­ gency nature. than theoretical. He is able to present our cessive drain of scarce materials and to re­ U.S. imports of Canadian softwood lum­ rather complex subject with an understand- duce the inflationary impact of abnormal ber were up 21.4 percent for the first 1962 . 'CONGRESSIONAL RECORD-·· -HOUSE 14069 4 months of this year over. the related ing-ton;. GEORGJl HUDDLESTON, JR., Dem­ given consideration and exemptions. period of 1961. In this same period, unem­ ocrat, of Alabama; CARL ELLIOTT, This provides the pressure and the votes ployment in the forest products industry Democrat, of Alabama; JaHlf E. Moss, for its passage. increased more than 4 percent. JR., Democrat, of ·Call!ornia; RICHARD We earnestly request that changes pro­ H. PaFF, Republican, of Virginia; The time is near when the injury posed in the Department of Agriculture to PETER A. GARLAND, Republican, of meted out to the few will become an in­ assist lumber procedures, be given your most Maine; THOMAS M. PELLY, Republican, jury to all. serious consideration, attention, and review of Washington; JOE D. WAGGONNER, JR., The lumber industry is· only · one of leading to stimulative lumber action. We Democrat, of Louisiana; DURWARD G. many needing relief. enclose these suggestions presented to Secre­ HALL, Republican, of Missouri; MaRRIS The above-mentioned correspondence tary Freeman on February 21, and we 'fur­ K. UDALL, Democrat, of Arizona; SILVIO follows: ther enclose the statement presented at the 0. CoNTE, Republican, of Massachu­ JULY 5, 1962. June 4 congressional conference ·on lumber. setts;--WALT HaRAN, Republican, of Hon. JoHN F. KENNEDY, . There· are enough facts and evidence al­ Washington; ARNOLD OLSEN, Democrat, President of the United States, ready amassed, in our judgment, for you to of Montana; GRACIE PFOST, Democrat, White House, initiate action without further delay. This of Idaho. Washington, D.C.: · we hope you will do, for we want to impress Mr. Speaker, it seems ironical that We shall appreciate your giving the fol­ upon you our genuine concern. We urge lowing matter your prompt policy considera­ that the Tariff Commission be instructed within the last few weeks this same tion since it affects the lives and industry under section 332 of the Tariff Act of 1930 group of Members were present when the of thousands of citizens in Oregon and else­ to commence immediately to gather the nec­ trade bill was passed by the House with where throughout the country. essary information upon which a decision the support of the greater number of Our small company: lost its entire capital may be reached on the question of whether the signers. of approximately $700,000 in its operations a tariff or a quota should be applied to lum­ This note shows the position Congress during the last 3 years, mainly because of ber importation. We recognize that the unfair competition from Canadian imports lumber industry has not yet applied for re­ now finds itself in when injury from im­ ports becomes a matter of vital concern of lumber to the east coast of the United lief, and we understand it is because of fear States. Our sawmill at Bradwood, Oreg., that this action would close the door on to the economy of an area, a State, or represents an original investment approxi­ more rapid emergent assistance. The indus­ the Nation. mating $1,500,000. We do an annual volume try has been told, however, that this is a We are reducing ourselves to the posi­ approximating $3 million and employ ap­ necessary step but we Members of Congress tion of petitioners in a matter that was proximately 150 people under a nationally do believe that there is a Government re­ approved labor union contract. sponsibility to gather information which can exclusively restricted to the membership lead to a prompt determination when the of Congress for determination by the Under circumstances completely beyond industry files such a petition. Founding Fathers. our control, we just closed our mill and can­ It is our hope that this action will not Those of us who believe in trade when not reopen same unless our entire industry forestall other means of assistance. We such trade is equitable have often been receives immediate relief through Executive earnestly recommend that you consider ridiculed by others who believe other­ and congressional action. Our people will among other methods of assistance a tem­ be compelled to rely on unemployment in­ wise. surance for the next 6 months and, there­ porary quota on the importation of softwood I can assure my colleagues that what­ lumber, based ·on the average annual ship­ after, will be without income, as many more ments into the United States over the past ever help I can give is theirs, but I am west coast sawmills are closing than new 10 years. afraid there is little I can do, or for that ones are opening: This situation affects tens Such action is recommended only with the matter, little they can do. of thousands of workers and businesses in clear understanding that any quota would Their only hope is that the President, Oregon, Washington, and California, and other Western States. be lifted upon completion of the current an understanding .Executive, will see that Many Senators, Congressmen, and execu­ study and the establishment of long-term their problem is real, is serious, and a tive Federal Government officials have been solutions. We recommend this with every threat to the economy of the Nation as a considering this matter during the la.st 6 to expectation of sympathetic understanding whole and will give the aid, relief, and from our good neighbor Canada, whose 12 months, but, so_ far, nothing has been friendship we value and whose motives we assistance they appeal for. achieved, while the industry is literally respect. I sincerely believe the President will bleeding to death. give this aid. I cannot hope to know or · Notwithstanding all promiscuous discus­ With our best wishes and deepest appreci­ sions, relief at the present time can come, ~tion be able to guess what the next President for your considered action, and with alternatively or cumulatively, only from the our fullest understanding of the complex will do. following measures promptly taken: problems before our Nation, we are, We can go further in our destruction (a) Legislation to exempt sea transporta­ Yours very sincerely, of certain industries, but I doubt if we E. Y. BERRY; Republican, of South Da­ tion of lumber from the west coast to the kota; DAVE MARTIN, Republican, of can go much faster than under the pro­ east coast, from the ancient and now com­ Nebraska; JoHN DowDY, Democrat, of visions of the new Trade Expansion Act pletely ineffective Jones Act, which does riot Texas; CLIFFORD G. MciNTIRE, Republi­ of 1962 if it is administered to its fullest even help the American merchant marine, can, of Maine; JoHN J. McFALL, Demo­ by a Chief Executive lacking the knowl­ since the lumber and other products are shipped from Canada on foreign vessels, while crat, of California; RALPH HARDING, edge and understanding of our economic Ainerican intercoastal ships are, one by .one, Democrat, of Idaho; WILLIAM G. BRAY, system .. In this regard we are fortu­ Republican, of Indiana; HAROLD T. being put out of service. nate that the present Chief Executive (b) Establishment of immediate Govern­ JoHNSON, Democrat, of California; is' experienced and comprehends the THoR C. ToLLEFSON, Republican, of ment subsidy to American merchant marine Washington; GEORGE GRANT, Democrat, problem. hauling lumber from west to east coast, in of Alabama; DELBERT LATTA, Republi­ It may be well for all of us to take a amounts sufficient to overcome differences can, of Ohio;. B. F. SISK, Democrat, of second look at what happened in our between rates of American vessel.s and for­ California; DoN MAGNUsoN, Democrat, trade agreements and trade relations be­ eign-flag vessels. of Washington; JOHN J. RHODES, Re­ fore opening up the one-way skeet to (c) Establishment of at least a temporary publican, of Arizona; JULIA BUTLER further tra:ffic. quota system against importation of lumber HANSEN, Democrat, of Washington; from Canada to the east coast by cargo ship­ STANLEY R. TuPPER, Republican, of The next correspondence covers the ment in quantities completely ·crowding out Maine; HAROLD McSwEEN, Democrat, same subject and shows the universality our own west coast shipments, due to most of Louisiana; PAUL C. JoNES, Demo­ of the appeals for relief under our trade unfair, unequal, and unequitable competitive crat, of Missouri; DON L. SHORT, Re­ policies. conditions. publican, .at Large, of North Dakota; If one were to look through the CoN­ (d) Immediate Executive order, changing RoBERT G. STEP,HENS, JR., Democrat, of GRESSIONAL RECORD for the past decade, tariff schedule on lumber imported from Georgia; OREN HARRIS, Democrat, of Can.ada to at least 10 percent of the value Arkansas; WILLIAM K. VAN PELT, Re­ he would wonder how the trade bill ever of the lumber imported. publican, of Wisconsin; CATHERINE received the number of votes necessary We respectfully urge your immediate con­ MAY, Republican, of Washington; for passage. sideration and action in this matter, separate HARLAN HAGEN, Democrat, of Cali­ More Members and more items appear and apart from all other foreign trade ques­ fornia; WALTER NORBLAD, Republican, on this subject than on any other single tions, since this item is of a most peculiar of Oregon; EDWIN R. DURNO, Republi­ issue before the Congress. nature, and merits separate and special and can, of Oregon; CLEM MILLER, Demo­ immediate attention. It will be too late for crat, of California; ALBERl' -RAINs, The answer is simple. It is an old any relief to this industry and its employees Democrat, of Alabama; RALPH J. military strategy-divide and conquer. after many more west coast sawmms are RIVERS, Democrat, at Large~ of Alaska; Every time this legislation comes up closed, dismantled, and sold as junk, and JACK WESTLAND, Republican, of Wash- for consideration specific groups are their workers placed on public relief. 14070 CONGRESSIONAL RECORD- HOUSE July 18 If considered appropriate, shall gladly con- • Secretary of State Dean Rusk was of all these things, as well as knowing his firm above facts by sworn testimony before present, as well as Under Secretaries · own country. Now you have to know .au any executive o~ congressional committee at George W. Ball and George c. McGhee. about the United States, every facet of its Washington, at our own expense. The Honorable Charles E Bohlen special life; all the great reforms of the thirties, Respectfully submitted. . · ' the forties, and the fifties, if you are going ALFRED H. SAcHs assistant to the Secretary of State, and to represent the United States powerfully Treasurer, Columbia-H1.14son Lu~ber · president of the association, presided and With strength and with vigor. When Co. of Bradwood, . Oreg. and introduced the President to the you represent the United States today, it Mr. Speaker, my answer is that I read nearl_Y 1,000 persons who attended the is not a question of being accredited to a the special plea for the lumber industry. meetu~g. . . , few people whose tenure is certain, but in­ Of course, the time to have had support I tJ;lmk PI.eside~t Ke~edy s remarks ~!e~~;~r:~~i~~;';tes~i~~o~s !~~u~ew:ha; ;1~~ was when the trade bill was up. I have on thiS o~caswn will ~e of mt~rest to per- ments of power or the elements of struggle, supported your position all the way. sons outside the Fore~gn Serv.ICe and I a~ and which way we should move. And this However, your own members are therefore pleased to msert his address m calls for the finest judgment. among those who believe they can get the RECORD. . In the Foreign Service today you have a relief for one segment-their own--of The address follows. great chance and a great opportunity. And our economy and the rest be damned. THE GREAT PERIOD oF THE FoREIGN SERVICE I hope that you recognize it, and realize that on your decisions hang the well-being For years those of us in coal, glass, (By President John F. Kennedy) and the future of this country. tool steel, and other affected, injured The Foreign Service, as · all of you know THE PLACE TO . BE IS IN THE KITCHEN industries have been like voices crying was formed, or at least the State Depart­ in the wilderness. Now we find our ment was, on July 27, 1789, when George There is a feeling, I think, in the Foreign voices becoming drowned by the anvil Washington signed the act establishing the · Service that the State Department and the · Department of Foreign Affairs. This act Foreign Service are constantly under attack. chorus of those whose "ox is . being provided that the secretary should.conduct Well, I would give two answers to that. In gored" at the time. the business of the Department, and I quote: the first place, the questions with which you Insofar as I am personally concerned, "In such manner as the President of the are dealing are so sophisticated and so tech­ the policy of giving special relief to a United States shall from time to time order ni.cal that people who are not intimately in­ group because of vote power, regardless or instruct." volved week after week, month after month, of the damage inflicted upon others, is That is my mandate to involve myself in reach judgments which are based upon emo- a dead duck. your business and I want to say that I do tion rather than knowledge of the real alter- ! no longer see any merit in fighting not think that there is any responsibility natives. They are bound to disagree and they placed upon the President of the United are bound to focus their attacks upon the the good fight and then being asked to states, even including that of Commander Department of State and upon the White pass the hat for relief for the people who in Chief, which is more pressing, which is House and upon the President of the United licked me. No thanks; we coal and more powerful, which is more sing~Ilarly States. And, in addition, party division in glassworkers and our friends have taken held in the Executive (as opposed to so many this country, where the parties are split al­ our lickings for too long. Our people other powers in the Constitution, which are most evenly, and in spite of the long tradi­ are considered expendable, and by the held between Congress and the Executive) tion of bipartisanship, accentuates the criti­ sam.e token we, as Members of Congress, than that which is involved in foreign cisms to which the Department of state and policy. the ·White House are subjected. have been castigated as isolationists, I know that many Foreign Service officers If change were easy, everybody would protectionists, and narrow and parochial feel (like former marines, who believe that change. But if you did not have change, you minded. . the old days were the best days) that the would have revolution. I t:Q.ink that change What is the difference between ~ your . days before World War. II were the golden is what we need in a changing world, and plant closing and your workers being days of the Foreign Service, that since then therefore when we embark on new policies, thrown onto relief than in our glass and the Foreign Service has fallen on hard times we drag along all the anchors of old opinions other industries. and that there is a good deal of uncertainty and old views. You just have to put up with about what the future may bring. it. Those who cannot stand the heat should Everybody wants free trade for every- I would Hke to differ with that view com- get out of the kitchen. Every Member of thing they buy but are against it for pletely. In my opinion, today, as never be- Congress who subjects you to abuse is being things they sell. fore, is the golden period of the Foreign subjected himself, every 2 years, to the pos- I believe I know and sincerely respect Service. sibility that his career also will come to an the feelings and the problems faced by In the days before the war, we dealt with end. He doesn't live a charmed life. You our lumber industry in both the lumber- a few countries and a few leaders. I re- have to remember that the hot breath is on fng as well as plywood sections of this member what Ambassador Dawes said, that him also, and it is on the Senate, and it is important phase of our industrial the job was hard on the feet and easy on on the President, and it is on everyone who the brain. Theodore Roosevelt talked about deals with great matters. complex. those who resided in the Foreign Service This is not an easy career to be a Foreign rather than working in it. We were an Service officer. It is not an e~y life. The isolationist country, by tradition and by Foreign Service and the White House are "The Great Period of the Foreign policy and by statute. And therefore those bound to be in the center of every great con­ of you who lived in the Foreign Service led troversy involving the security of the United Service," an Address by President a rather isolated life, dealing with compara- States, and there is nothing you can do John F. Kennedy to the American tively few people, uninvolved in the affairs about it. You have to recognize that ulti­ o! this country or in many ways in the af- mately you wm be subjected, as an institu­ Foreign Service Association, May 31, fairs of the country to which you may have tion, to the criticisms of the uninformed, 1962 been accredited. and to attacks which are in many cases mali- THE FOREIGN SERVICE A GREAT OPPORTUNITY CiOUS and in many CaSeS Self-serving. But That is all changed now. The power .and ' el,ther you have to be able· to put up ,with it, EXTENSION OF REMARKS irifluence of the United States are involved or you have to pick a more secluded spot. OF in the national life of dozens of countries Personally, I think the place to be is in the that did not exist before 1945, many of which kitchen, and I am sure the Foreign Serv­ HON. JOHN BRADEMAS are so hard pressed. ice officers of the United States feel the OF INDIANA This is the great period of the Foreign same ":'ay. IN THE HOUSE OF REPRESENTATIVES . Service, mUCh greater than any period that · CAREER VERSUS NONCAREER has gone before. And 1t will be so through One of the other points which I know is Wednesday, July 18, 1962 this decade, and perhaps even more in the of concern, is this question of career versus Mr. BRADEMAS. Mr. Speaker, on years to came if we are able to maintain our- noncareer. May 21, 1962, President Kennedy ad­ selves with success. The pressures which come upon a Presi- dressed the members of the American But it places the heaviest burdens upon dent, as you know, are many. We try to do Foreign Service Association in Washing­ all of you. Instead of becoming merely ex- our best in picking the best man available. perts in diplomatic history, or in current We have a higher percentage of ambassa­ ton, D.C., on the subject, "The Great clippings from the New York Times, now you doria! posts occupied by career men, 68 per­ Period of the Foreign Service." have to involve yourselves in every element cent, than at almost any time in this cen­ This was the first time in history that of foreign life--labor, the class struggle, cui- tury, with the exception of a few months at a President of the United States has tural affairs and all the rest-attempting the end of 1959. addressed the American Foreign Service to pr~dict in what direction the forces will My own feeling is that there is a place for Association. move. The ambassador· has to be the master the noncareer- ambassador-not for political "1962 CONGRESSIONAL RECORD- HOUSE 14071 reasons, but when he happens to be the best cause you today-even more than any other the record showed, but did not come out un­ man avad.lable. ·For. example, Mr. Reischa.uer bra.nch of government-are in the front line til the ~ttee hearings June 28, 1962. happens to have special skills in Japan; he in every country of the world, lt was ordered by Kenneth BeLieu, Assist- has a knowledge of Japanese . and, of the ant Secreta.ry of the· Navy for Supply and history of the country,. and he has a. Japa­ Logistics. l nese wife. I had only met Mr. Reischa.uer The hearing report called the new proce­ when he came to call on me to go to Japan. dure a "secret policy, of doubtful legality But his was a. distinguished appointment, Chicago and Indianapolis Newspapermen and irregular in its origin." · and to a. country which has an intellectual The flve-mari subcommittee, headed by tradition. My feeling is we should send ca­ Detail· Navy's Indictment by Sub­ Representative F. EDWARD HEBERT, Democrat, reer men, to the maximum extent possible, committee of Louisiana., said it denounces and con­ unless there happen to .be special skills which demns the action of the Navy in setting up a noncareer officer holds. the policy withoUt notice to anyone, includ­ On the other hand, the career men them­ EXTENSION OF REMARKS ing the Secretary of Defense. selves have to be of the best qua.li ty. You OF The report noted sarcastically that "we cannot expect any President or Secretary of are asked to· believe that this policy expresses State, merely to please the career officers, to HON. EARL WILSON a compassionate interest in saving .prospec­ send a. career officer to a. post if he is not the OF INDIAN~ tive bidders from spending money" need­ best. He should be the best. After 10 · or IN THE HOUSE OF REPRESENTATIVES lessly by bidding on jobs the Navy didn't 20 years in the Service, he should be the best, want them to have. in la.nguag~. in knowledge, in experience. Wednesday, July 18, 1962 At the time the policy came to light at the He should be able "to stand up to any compe­ Mr. WILSON of Indiana. Mr. Speak- hearfngs, HEBERT suggested "that you instead tition. If we get the best we can get in the er, as long as we have newspapermen let the companies involved worry about sav­ Foreign Service at the beginning, every post who take the time to dig into a story to ing money, and thaJt you worry about saving will go to a. Foreign Service officer. I am the taxpayers' money by permitting com- sure that all a Foreign Service officer asks fs learn the facts, freedom of the Ameri- petition." to be judged fairly·, without bringing in ex­ can press is indeed in safe hands. Too The hearings were called after Repre­ traneous circumstances, on this basis of judg­ often we hear of reporters who make sentative EARL WILsoN, Republican, of In­ ment: Who is the best man for that post at only a cursory pr biased examination of . diana, charged that the Navy was funneling that time, given the situation in the United material that passes through their this and other contracts to favored firms States and the situation in that .country? h d Th to · 'tt at exorbitant prices. That should be the standard. an s. · e news S nes Wrl en by Marine Commandant David Shoup testi- Now in some cases it will be a noncareer these people pale by comparison when fled that the radio, a walkie-talkie unit, is appointment, but in many cases, in my judg­ placed alongside a news account written critically needed by his forces for effective ment, we will end up with the best man by a sincere and dedicated newspaper- ground-air communication, to replace less available, and he w111 be a. Foreign Service man. satisfactory units now in use that are up officer. · Such a story has just been unfolded to 13 years old. Lastly, I want to say one word about the by Charles Nicodemus, of the Chicago Collins, paid by the Navy to develop the next year or so. We are in a very changing Daily News, about whom -I spoke on the radio, offered to take the production job for $4,373,546. WILSON obtained a bid from period. Our policies are changfng, and floor of this House last Friday, July 13, Arvin Industries, ColumbuS, Ind., a. na.- should change, and we are very much de- . pendent upon the Department of State for 1962, and Ben Cole, of the Indianapolis tionally knowri manufacturer, for $1.3 mil­ action, for speed, for judgment, and for Star. liori less. But the Navy has refused. to con- ideas: I know the difficulty of attempting Mr. Nicodemus covered the recent sider it. to clear policy and of coordinating it between hearings by the Armed Services Special The Hebert report rapped the procedure the Department of State, the CIA, the De­ Investigating Subcommittee. He at- tn which low-ranking Ni:..vy officials made fense Department, the White House, the Ex­ tended all the sessions. He took notes. the key "sole source" decision, with higher port-Import Bank, the Treasury Department, He read the documents. He· talked to echelons merely providing routine review. the Department of Commerce, and the Con­ the principals. I think it is safe to say In suggesting a "rubberstamp" situation, gress. But nevertheless, it does seem to the committee noted that "no step was by- me that in the days that are coming, we he had a thorough, working knowledge passed in the movement of papers," and "all want, first, action in ·the sense that we should of this case and of the hearings, the words were present." bring these matters to a head and do it with His news account of the committee re- But "the same ·tired phrasing leaves a speed if we ·can. And still more, we· need a port is certainly excellent and I . think little chill behind it," the report ·said. sense of responsibility and judgment in should be required reading for all news- 'i'he report raised · the point that there order to get the work out--not action for ac­ paper people. It is just another example is "some dispute" as to whether engineering tion's sake. We must not become so en­ of how a little enthusiasm and elbow changes sought in the radio. by the Marines · had been worked into the contract by the meshed in our bureaucracy that four or five grease helps to do a good job. · Na.vy~lea.ving the door open to further overburdened men make decisions which . I insert at this point in my remarks price adjustments with Collins. should come from the Department itself with some speed and action. Mr. -Nicodemus' story on the PRC-41 As- for the Navy's contention that Col­ radio hearings from the Chicago Daily lins, as the radio's developer, was in the THE BEST PERIOD TO BE A FOREIGN SERVICE ·NeWS Of July 18 and think it iS an eX- best position to produce it rapidly to meet oFFICER cellent summation of what the subcom- the Marines' emergency, the report sarca.s- Another point, of course, is that we should mittee brought out. ·tically suggested: have, at least at the White House, Depart- "A means must be found to introduce ment of State, and Secretary of State levels, PRO R~DIO HEARINGS light and air" into Navy procurement, "so evidence of dissent and controversy. We (By Charles Nicodemus) that.the conclusion of a successful develop- have had some new ideas in the last year in WASHINGTON, July 18.-A House investi- ment contract will not coincide so perfectly foreign polipy; some new approaches have gating subcommittee's report today ripped with an urgent requirement." ' been made. We want them to come out of into Navy buying practices and attacked Mr. Cole also covered the hearings on the State Department with more speed. plans to award a $4 million contract for a the PRC-4! and has also been quite What opportunities do_ we have to improve marine radio without bids. our policies abroad? How, for example can The report also raked the Navy for secretly diligent in familiarizing_ himself with we make the Alliance for Progress more ef- . changing its procurement policies to permit the details of this case. - He summarized fective? we are waiting for you to come for- officials to acpept bids on certain contracts the case in the Indianapolis Star of ward, because we want you to know that I only from favored firms. July-18, 1962. In my opinion, Mr. Cole regard the Office of the Presidency and the In phrases that were sometimes sarcastic, also did a fair and impartial reporting ·White House, and the secretary of state and sometimes blunt or caustic, the speciai in,- job, even though his summation was not the Department, as part of one chain, not vestigations unLt ·of the House Armed Serv- as lengthy or detailed as_ that of Mr. ices· Cominittee said i·ts hearings showed that. N' od separate but united, and committed to the other_~~petent manufacturers could have l,C emus; . maintenance of an effective foreign policy submitted negotiable proposals on the radio · Mr. Coles story follows. . for the United States of America. contract. . . COMPETITION IN BIDS URGED BY HOUSE UNIT Therefore, In the final analysis, it depends Instead, th~ Navy plaJ1.S to _award the job WASHINGTON.-A House Armed Services on you. . tQ Collins Radio Co., Cedar Rapids, Iowa, as Subcommitt~ filed a. report yesterday press- That is why I believe this is, the best period the .role. SOll-fce the Navy' says can supply the ing for more coil) petition in bids on Navy to be a Foreign Service officer. That "is why · radios as fast as the marines need them. electronic gea_r. I believe that the best talent that we· have . _:I'he unpublicized policy switc:h, curbing The· subcommittee under . Chairman ED- should come into . the Foreign s~rvice, be- ... ~ompetiti~n. was· made _in September 1~1 wARD Hi:BERT, -Democrat of Louisiana., filed 14072 CONGRESSIONAL . RECORD-· SENATE July 19 the report on an investigation lt made into · I ·was gra~lfled. when the Na'fY, in 11. 2lnal To probe. further into the first case with­ .havlng the charges ·by Representative EAaL WILSON, statement, admitted tbat pollcy changes out authority to a.ak. questions, all.my informa-tion ·without ~ving Republlcan. of Indiana. , have been kept secret. I was beartened. to to :reveal Wn.soN Imputed eollusion and crimlnai hear its pledg~ that this won't happen again, authoritY' to protect my sources (other than conspiracy to Navy oftlcials in connection but I jotted down th.i8 note-"How many the General Accounting omce~ would only dry up these sources and cost some people with · a ·$4 million order for ground-to-air m1111ons have been poured down a rathole in field radios ordered from Collins Radio Corp., the past as a result of these .secret changes their jobs. I have recehed much informa­ and agreements?" tion in which I have great · confidence. Cedar Rapids, Iowa. · Turned over to the same authority being The Cong~an said the Arvin Indus­ BILLIONS, .BLUNDERS, BALONEY tries ·Corp., ColUmbus, Ind., submitted a investigated, the source .of this information This was another note I found-my sum­ could dry up, and in reprisal some might sample bid $1.1 mlliion lower. mation of the net result of the hearing. Bil­ lose their jobs. The subcommittee recommended that: lions are being wasted. Blunders are being 1. Legislation be · enacted placing sole­ made by the carload. Baloney is used to ra­ TAIL WAGGING DOG source contract negotiations under scrutiny tionalize all the mistakes. In this particular · The Defense Procurement Act of 1947 of the General Accounting omce. · hearing a single official wrapped himself in which · permits sole-source buying was 2. The Secretaries of Defense and the Navy the flag and tried to assume full responsibil­ thoroughly questioned and debated before use procedures to prevent unauthorized ity for,subordlnates' mistakes that .cost the passage. The sole-source section which gives adoption of. bidding regulations. taxpayers $1.3 million. This official, Kenneth comple~e authority to the mllltary was The subcommittee recognized that in some M. BeLieu, admitted a company had been seriously questioned by President Harry instances sole-source procurement was paid over $800,000 to develop a walkie-talkie Tiuman before he signed it into law. He necessary. It also found Collins received radio and then was told to keep all the is reported to have said, "This is a bad Navy contracts on account of its perform­ plans and drawings. Later the same com­ practice and .will soon result in the tail ance record. pany was the only one asked to bid on wagging the dog." These prophetic words, The Navy unnecessarily kept secret some production of the radio. Yet it was proven which sound like the man who headed the of its ]l011cles, thereby raising suspicions, before the committee that another highly Truman Investigating Committee before he the subcommittee found, and it criticized reputable firm could save the taxpayer 34 became President, have certainly come true. the Navy for .changing its poUcy so as to percent in production of this radio wlthout DGLLAllS OVER THE DAK deny requests to bids made by competitive this $800,000 head ·start or any favored treat­ Mr. T.axpayer, you have been taken for firms. · ment. These facts alone prove bad judg­ billions. Your only present hope is that the Proper procedures were followed but the ment of those who justified this procurement subcommittee questioned some details of Hebert amendment becomes law. Alr~ady as sole-source, and this 1nefftciency cannot be it is being resisted by the power-minded mll1- the methods used. - rationalized by a war record. or by flag waving. The panel criticized the Navy for somehow tary which fights with every weapon at its Ask yourself, "Wha-t would happen if a command any attempt to check its policy· permitting information contained in the township, county, city, or the State of Indi­ Colllna proposal to be turned over to the of "spendola." ana itself allowed no competitive bi~ding It must also be recognized that the mili­ Arvin firm. and awarded contracts only to favored sup­ tary has created a protective labyrinth of AB a footnote, I should like to inform pliers?" The answer ts obvious-higher redtape and overlapping authority hidden budge.ts, higher taxes, graft, payoffs and by mountains of paperwork that makes it the Members of the House that, faced jockeying by .suppliers to gain favored posi­ with a caustic report from the subcom­ almost impossible to pinpoint responsible tions. individuals. The mllltary can always quote mittee the Secr:etary of the Navy today N:'NAMARA AGREES a secret policy change or produce a paper awarded the contract for production of While I was denied the right to interro­ to rationalize its gross inefficiency. Congress the AN /PRC 41 sole source to Collins gate witnesses {the only way I could have knows about this waste. Representative . Radio Co. As I said in my newsletter helped uncover the truth), I still feel much CLEMENT J. ZABLOCKI .said on the House floor last week-"Damn the Dollars-Full good will be found m the committee report July 11: "We have wasted mlllions in our Speed Ahead." now coming off the press. Defense Department on exorbitant profits I include that newsletter at this point secretary of Defense Robert McNamara has allowed certain manufacturers, on ineftlcient in the RECORD. already made a statement that by having procurement and on the production of mili­ more competitive bidding at least $3 bllllon tary hardware which becomes obsolete the lNsi!lll WASHINGTON a year can be saved on defense. I agree, ex­ .minute it comes off the line." The Congress {By Congressman EARL WILSON) cept that I think much more than $3 b111ion realizes the futility of trying to uncover {~or the week of July 16, 1962) 1s already b~ing wasted and much more than those responsible for this waste. It is cov­ DAMN THE DOLLARS--FULL SPEED AHEAD $3 btlllon can be saved with frugal procure.:. ered with .an .ever thickening layer of bu­ ment methods. reaucracy which has increasing powers of RevJewtng my notes on the rece:ot naval .reprisal, largesse and varieties of influence. proeurement .hearings by the Armed. Berv- HOPE FOR THE FUTURE lees Special Inv.estigation Subcommittee, l The walkie-talkie case in which a con­ CONCLUSION: YOU GET IT IN THE NECK found a paraphrase of Adm. David Farra­ tract had not been awarded was selected by Thirty-one cents of every dollar you earn gut's famed statement. I had written the subcommittee to develop support for or 2 hours and 29 minutes of every day's .. Damn the Dollars--Full Speed Ahead." an amendment to the Armed Forces Procure­ work goes to support your Government. I This best describes the Navy attitude toward ment Act (a change I have been support­ am sure no American taxpayer will object 'Spen

SENATE kinship with the eternal, making us con­ THE JOURNAL scious, even in the drab surroundings of On request of Mr. MANsFIELD, and by time and sense, of the divine reality THURSDAY, JULY 19, 1962 unanimous consent, the reading of the which breaks through tl1-e seen in bright Journal of the proceedings of Wednes­ Tb.e Senate met at 11 o'clock ain., .shoots of everlastingness. day, July 18, 1962, was dispensed with . . and was called to order by the President. . In the dauntle.ss faith, illumining the pro tempore. .future's broadening way~ that Thou art The Chaplain, Rev. Frederick Brown in the .shadows and behind the shadows. Harris, D.D:• offered the following pray­ invest and undergird, we pray, the daily MESSAGE FROM THE HOUSE er: labor of Thy servants in this Chamber of national deliberation with a Tadiance · A message from the House of Repre­ Most merciful God, our Father, Thou which in all their working days will make sentatives, by Mr. Maurer, one of its hast decreed that our faltering dust is their spirits like lighted torches from . reading clerks, announced that the House linked to eternal destiny. · · : which others can rekindle their dying had passed a bill