1951 CONGRESSIONAL RECORD-· SENATE 5155 retirement activities; to · the Committee on By Mr. SHEEHAN: MESSAGE FROM THE HOUSE Post Office and Civil Service. H. R. 4043. A bill for the relief of Carlos By Mr. RANKIN: Tannoya; to the Committee on the Judici A message from the House of Repre H. R. 4030. A bill to appropriate funds to ary. sentatives, by Mr. Snader, its assistant enable the Smithsonian Institution to ex By Mr. THOMPSON of Texas: reading clerk, announced that the House tend its studies of solar radiation to in H. R. 4044. A bill for the relief of Marcus had passed the following bill and joint clude determination of the practicability of Kanaris; to the Committee on the Judiciary. resolution, in which it requested the con utilizing solar energy for the production of currence of the Senate: power; to the Committee on Appropriations. By Mr. EDWIN ARTHUR HALL: PETITIONS, ETC. H. R. 3576. An act to amend the Displaced H. R. 4031. A bill to prohibit enforced sav.. Persons Act of 1948, as amended; and 1ngs of income of American citizens by the Under clause 1 of rule XXII, petitions H.J. Res. 253. Joint resolution to permit Government through compulsory payroll and papers were laid on the Clerk's desk articles imported from foreign countries for deductiths; to the Committee on Ways and and referred as fallows: the purpose of exhibition at the Japanese Means. 279. By Mrs. ROGERS of Massachusetts: Trade Fair, Seattle, Wash., to be admitted By Mr. KENNEDY: Petition of General Court of Massachusetts without payment of tariff, and for other pur· H. R. 4032. A bill to amend section 41 of the in favor of waiving certain requirements of poses. Longshoremen's and Harbor Workers' Com the naturalization laws in the case of per LEA VE OF ABSENCE pensation Act so as to provide a system of sons whose sons or daughters have served in On his own request, and by unani safety rules, regulations, and safety inspec the Armed Forces of the United States; to mous consent, Mr. MILLIKIN was excused tion and training, and for other purposes; to the Committee on the Judiciary. the Committee on Education and Labor. from attendance on the sessions of the 280. Also, petition of the General Court Senate for the remainder of the week . . By Mr. RHODES: of Massachusetts in favor of the passage of H . R. 4033. A bill to amend the act of July legislation revising the laws relating to im CALL"'t>F THE ROLL 6, 1945, as amended, so as to reduce the num migration, naturalization, and nationality; Mr. McFARLAND. I suggest the ab ber of grades for the various positions under to the Committee on the Judiciary. such act, and for other purposes; to the Com sence of a quorum. mittee on Post Office and Civil Service. The PRESIDENT 'pro tempore. The By Mr. HALE: Secretary will call the roll. H. J . Res. 256. Joint resolution designating The Legislative Clerk proceeded to call the fourt h Saturday of August of each year SENATE as Children's Day; to the Committee on the the roll. Judiciary. THURSDAY, MAY 10, 1951 Mr. McFARLAND. Mr. President, I By Mr. ZABLOCKI: ask unanimous consent that the order ::I. Res. 225. Resol1;1tion authorizing the
statem~nt by \"'lin:::t0n Churchill, Brit the indulgence of the Senate that I be threat, that our goals of stability and peace ain's great wartime Prime Minister . not interrupted until I have finished have been attained." wherein he expresses some positive these few remarks? Since they will be THREE-FOURTHS PRODUCTION sentiments and convictions which have · couched in the form of questions, I am "But those goals are clearly within our long been held by me. I ask unanimous asking any Senators who care to answer reach. The non-Communist nations to consent that tl... e excerpt from the ticker them to wait until I have finished, since gether have two-thirds of the world's people be printed at this point in the RECORD. my .queries are all interrelated. and three-fourths of the world's productive pow~r. _ There being no objection, the excerpt - Mr. President, on June l, 1950, at a "And -we have much more than mere was ordered.to be printed in the RECORD, press conference, President Truman quantity or mere strength. We have the as follows: spoke about peace. · The Baltimore Sun greatest attraction of all-human freedom. BRITISH RUBBER of the next day carried an account of the Our system of life satisfies the most funda LoNDON.-Winston Churchill demanded· Chief Executive's memorable statement. mental desire of man-the opportunity to today an immediate halt of all British rub The headlines i ead : be his own master. "We can have faith that with these quali ber shipments to Red China. Truman says he does not expect war ties, and the help of the Almighty, we will He told the House of Commons during a asserts permanent peace is nearer now than debate on export of strategic materials to the in last 5 years. . attain a jus~ an~ lasting peace throughout . Chinese Reds that the Labor Gover'lment's the world." policy on rubber and other matters involv The article is written by Joseph H. MORE SPECIFIC ON THREAT ing Peiping is impairing British-American · Short, who is now, as Senators know, the Although the President indicated that he relations. President's press-relations man. The was saying the same thing today as on "We should stop at once-abruptly, perma article reads: · previous occasions, he certainly was more ·nently, and decisively-exports Of rubber to WASHINGTON, June 1.-President Truman specific about the absence of a threat of China," he said. said today he does not expect war. war. The question which prompted his · QUESTIONS AS TO KOREA AND AMERICA'S In fact, the Chief Executive told his weekly comments referred to war within 5 years FOREIGN POLICY news conference the world is closer now to but Mr. Truman's reply was general and permanent peace than at any time during the without any time limitation. Mr. BUTLER of Maryland. Mr. Pres last 5 years . . On May 4, at another news conference, ident, the people of Maryland, along These cheerful Presidential comments were he had declared himself as not alarmed over with the citizens of the other great made on a recent public-opinion poll indi the world situation, adding that prospects States of the Union, are demanding that cating · that a majority of the American were brighter than in 1946, which he set their Government adopt a foreign policy people expect war within the next 5 years. down as the lowest point of relations be Mr. Truman said he does not agree with tween the United States and the Soviet which makes sense. . Daily by mail, by Union. telegram; by telephone, and by personal that opinion at all, adding that he is doing everything possible to prevent any war of On June 27 at 12 noon, just 26 days visits, the residents of my State are in any kind. sisting that the junior Senator from later, President Truman ordered our Maryland give them clear, concise, WORKING THROUGH U. N. Armed Forces into Korea to fight a war The United States, the President con that is costing us 1,400 casualties a week. straightforward answers as to why the tinued, is worki:lg through the United Na foreign policy in force is being directed Mr. President, the people of Maryland tions for a permanent peace, which he said demand to know what kind of a foreign in such a weird manner. ts nearer realization than at any time in 5 Frankly, I cannot answer those ques years. policy the Government of the United tions. I am at a loss to understand the Mr. Truman's impromptu remarks came States is following that can bring about intent and purposes of the present for only a few hours after- such a tragedy? eign policy of the United States. Today, . 1. His request to Congress for $1,222,500,000 I call the attention of the Senate to therefore, I am bringing a few of these for military aid to friendly nations during the fact that President Truman in his the fiscal year beginning next month. · · press interview spoke of permanent fundamental questions to the attention 2. A statement to the Senate Armed Serv-. of my much wiser and more experienc.ed lees Committee by Louis A. Johnson, Defense peace. The Baltimore Sun is recognized colleagues. I know · t~:.at there are a Secretary, that the President was solidly be as one of the leading newspapers in the number of distinguished Senators on the hind a 3-year extension of the draft law. State of Maryland. I do not believe the ' other side of the aisle who are closely Sun would delibe:·ately misquote the STRENGTH ESSENTIAL President of the United States. I do not ·associated with the persons who are di At the news conference the Chief Executive recting America's foreign policy. I am did not explain away the seeming contradic believe its reporters are so grossly inac sure that if they know what is behind tion between his comments on peace and his curate that the President's statements the fantastic gyrations now evident in appeals to Congress, but on many previous were distorted out of meaning. our foreign policy, they will speak up occasions he has stated his belief that an I do not recall that the President has · and give us the answers. I will go ·even essential ingredient to peace is the military ever denied he said we were closer to further and say humbly that I consider strength of the United States and its allies. permanent peace than we had been in In this case Mr. Truman appeared on the the past· 5 years. it their duty to do so. Up to now I must verge of saying more on the subject when he admit tr.at I have not heard any plausi was interrupted with a question concerning What does it mean when the Chief ble explanation given. the impending expiration of Presidential Executive of our country in one breath Before I continue further in my brief powers to suspend the import tax on copper. tells us we have peace in our grasp and remarks I should like to assure the Sen . A moment or two later, when other re · then plunges us into war with his next ate that the people of Maryland are porters returned him to the larger subject, order? asking for objective serious answers to he referred them to speeches made on his The people of Maryland want ·that recent nonpolitical tour to Grand Coulee question answered. I .think it is a fair their questions. They deplore the turn Dam, especially one made at Laramie, Wyo., some of the debate has taken recently. -on May 9. question. I think it is an important one. They are disturbed over the name calling Here is another question: What kind and the language being used. They are LONG TASK AHEAD of a foreign policy are we pursuing that angered by th- selfish partisan attitude He said he thought he had made it plain calls for taking our troops out of Korea at Laramie, in the University of Wyoming of some. auditorium, that he anticipated the achieve · one day and on another day rushing In this. respect I might remind my ment of peace. them back into the same place without auditors that the junior Senator from "All our international policies, taken to- consulting the Congress or the Ameri Maryland comes from a State that has . gether," the President declared at Laramie, . can people? · a large majority of its voters registered "form a program designed to·strengthen and What kind of foreign policy is it that as Democrats. unite the free world in its resistance to the keeps our Seventh Fleet busy giving our So, to the people of my 0tate, this is spread .of communism. Ground Forces tactical assistance while not an issue to be scrabbled and twisted "They are aimed at bal;lding the free coun the same fteet is being used to neutralize for political advantage. It is a matter tries together in a great demonstration that the free way of life is more rewarding to the the Chinese troops on Formosa that of life and deat:1 to their sons, husbands, individual than any form of tyranny, old or - could taJrn the pressure <>ff our own and sweethearts. It is a matter of life new. troops? and death to their country. · · "I say again that we have a long task The junior Eenator from Maryland I shall state a few of the questions, but ahead. It may be many years before we can h:?..s been list ~ nin~ carefully to the de before doing so Mr. President,. may I ask be sure that communism is no longer a . ta ·~c;:; on th:J :....cnJ- ·~v floor and has heard XCVTJ-325 •5158 CONGRESSIONAL RECORD-SENATE MAY 10 it said time and time again that this the House of Representatives, formulate Mr. BUTLER of Maryland. · Yes, I country is pledged to fight aggression at a foreign policy that will correct some of certainly think that it·would be an ab any place in the world where it rears its the incongruities so abundantly appar solute ingredient of the conduct of any ugly head. ent in the policy we have been pursuing, war that the people have sufficient infor Let us -remember that that was the I stand ready at this time of uncer mation of the policies and plan of pro basic argument for sending our troops tainty and great peril to our Nation to cedure to enable them to be solidly be to Europe. · Aggression threatened, it work with my colleagues on both sides hind the effort and to keep solidly was said. We must rush to meet it. We of the aisle in the formulation of such a behind it. must not let it spread. policy to the best of my ability. Mr. MARTIN. A moment ago the I thought that was plausible. I have Mr. MARTIN. Mr. President, will the Senator from Maryland compared the never been against sending troops to Senator yield? situation in Korea to a football game. Europe. Certainly I voted to uphold the Mr. BUTLER of Maryland. I yield. Of course there are some great football Constitution and to retain the war-mak Mr. MARTIN. Will the Senator from teams in Maryland. If a football player ing powers in the hands of Congress,-but Maryland give the date when the Pres was making a punt and if the coach or I also voted to send four divisions to ident issued the statement that "We a:re someone else in authority prevented the · Europe, and I will vote to send more if nearer peace than at · any time in ·the ends on the team from covering the · the need is shown. last 5 years?" · kick, the results would not be very sat However, the people of Maryland want Mr. BUTLER of· Maryland. That isfaCtory, would they? · to know what kind of a foreign policy statement was issued on June 1, 1950. Mr. BUTLER of Maryland. That is it is that rushes troops to meet a threat Mr.· MARTIN. When did American perfectly true. A somewhat similar ened aggression in Europe while it is pro troops go into Korea? policy is now being followed in Korea, viding a sanctuary for aggressors on the Mr. BUTLER of Maryland. They I am sorry to say. Korean peninsula. went into Korea on June 27, ·1950, just Mr. MARTIN. Mr. President, I think Let me read a short excerpt from the 26 days later. the Senator from Maryland deserves censored transcript of the hearings now Mr. MARTIN. Mr. President, will the great credit for propounding the ques being held before the Joint Committees Senator yield further? tions set forth in his remarks, and I hope on Armed Services and Foreign Rela Mr. BUTLER of Maryland. I yield; that' someone in the State Department tions: Mr. MARTIN. Does the Senator or in ·the Department of Defense will .General MACARTHUR. As soon as we realized realize that intelligence information as answer them for the benefit of the Amer- that the Chinese were moving across the to the movement of troops of nations . ican -people. _ Yalu in force as national entities, I ordered which might be in opposition to the the bridge across the· Yalu bombed from the United States is information which Mr. BUTLER of Maryland. I thank Korean side, half-way to the stream. That should have come from our State De the Senator from Pennsylvania. order was countermanded from Washington, partment, and the President should have THIRD SUPPLEMENTAL APPROPRIATIONS, and it was only when I protested violently known of the dangers in Korea when he 1951 that I was allowed to continue my original directive. ' issued his famous peace statement? The Senate resumed the consideration The CHAIRMAN. Well, are the forces in Mr. BUTLER of Maryland. I am ad · of the bill
Even aft~r the $50,000,000 is applied amendment. Even if the amendment is one of those who helped to pass the under the formula now in etfect, we shall adopted, we shall be doing our duty only original· act. Does the Senator know still have schools which have from 50 to partially; but, at least, it is a step in. how much money has already been ap 60 percent of their student body coming the right direction. propriated for grants under the original from· families directly connected with The situation is serious, and I sin act? Federal activities, who will still not be cerely hope that some consideration will Mr. KERR: Under the act to which able to come within the formula and re be given to the communities, which are this appropriation is related, the origi ceive any of this relief.- That is particu . doing everything within t.heir legal lim nal appropriation was $46,500,000. Of larly true with respect to certain recent its. If they were not doing their full that appropriation $15,000,000 was re developments. duty I would not be pleading for this served for the construction of school fa Consider the case of Biloxi, Miss., money; but they are, and they must have cilities on military reservations, and the where Keesler Field is located. A new Federal assistance. remaining $31,500,000 was sufficient to expansion program has just been au Mr. President, I ask· unanimous con provide a part of the cost of buildings thorized and started, calling for the ex sent that there be printed in the RECOR~ in only 72 of the 800, 900, or 1,000 dis penditure of $36,000,000, which will a statement from the Federal Security tricts in the Nation where the need bring that Air Force base up to a popu Agency giving a list of the school dis exists, and for which authorization was lation of 64,000. It _is situated entirely tricts in Kansas which prior to March made by the Congress. within the city of Biloxi. The expansion 12, 1951, submitted applications under Mr. WHERRY. I agree with the Sen program will make more than 40 percent Public Law 815 for assistance in con ator about the allocation of the original of that area federally owned and con structing school facilities. appropriation, which now totals $49,- trolled. There being no objection, the state 500,000. I should like to aslt: the dis There are now 625 family units on the ment was ordered to be printed in the tinguished Senator, however, regardless base, and 720 others are in the process of RECORD, as follows: of the breakdown, how much has been construction. It is estimated that there FEDERAL SECURITY AGENCY, OFFICE OF EDUCA• obligated as of March 31, 1951. That will be more than 500 new children com: TION, DIVISION OF STATE AND LOCAL SCHOOL was the testimony which was presented ing into that district alone within the SYSTEMS by the Budget Bureau. How much of next year, because of the prese!lt con KANSAS the $49,500,000 has actually been obli struction. As I say, the area is more List of school districts which prior to March gated? than 40 percent federally owned and 12, 1951, submitted applications under Mr. KERR. I cannot answer that controlled. Public Law 815 for assistance in construct ing school facilities question. I have very reliable informa That is new evidence which applies tion respecting this matter, and if the particularly to the question of the Sena School districts for which funds are be ing reserved on a priority basis, pending final Senator really wants that information tor from Nebraska. I will get it for him. · Mr. KERR. I thank the Senator from action upon the application: Application No. 5 1 common school district No. 178, Plane Mr. WHERRY. I should like to have Mississippi. The situation which he has view-Wichita, Sedgwick County, Federal it. described in his State is not an isolated funds reserved, $172,734. Mr. KERR. I shall be glad to get it example, but an example of a general School districts which have submitted ap and put it in the REco::m. But when I condition. plications for assistance and for which no have done so, when it is done, it will not Mr. CARLSON. Mr. President, will the funds can be reserved at this time: change the fact that as of this moment Senator yield? 1. Board of Education of the city of Junc only 70 schools have a sufficiently high Mr. KERR. I yield to the Senator tion City. 2. Common school district No. 127 (Mul priority rating for their needs even to from Kansas. be considered for the moneys made Mr. CARLSON. Mr. President, I as vane). 3. Common school district (Derby). available by the previous appropriation, sociate myself with the senior Senator 4. Common school district No. 120 which I am ·informed was $46,000,000, from Oklahoma in this amendment. As (Wichita). but, as the Senator from Nebraska says, a former governor of my State I am 6. Wichita school district No. 1. is $49,500,000-and that can be correct. somewhat familiar with the school prob 7. Common school district No. 122 (An The other 700, or nearly 1,000 schools, lems in our defense areas. We have ele dover). Mr. President, are not even eligible un mentary schools _in Wichita, Kans., 8. Common school district No. 27 (Wich der the priority formula established by which are operating both forenoon and ita). 9. Board of Education of the city of Leav the Office of Education to have their afternoon shifts, and consideration is applications considered. now being given to three shifts a day enworth. 10. Roseland school district No. 92 (Kan- Mr. WHERRY. Mr. President, will in some of Wichita's elementary schools. sas City). the Senator yield? Someone may say, "Why do not the 11. School district No. 124 (Wichita). Mr. KERR. I yield. local communities begin construction of 12. De Soto rural high school district No. 3. Mr. WHERRY. There is no question the buildings needed for the increased 13. Common school district No. 31 (De about the merits of the case. But the enrollment?" The fact is that we have Soto). 14. Common school district joint 33 (Clear question is how much money should be a legal tax-leVY limit in our State for is appropriated in this supplemental ap suance of bonds for school construction. water). The city of Wichita has levied the maxi propriation bill. Mr. KERR. I thank the Senator fro~ Mr. KERR. In answer to that ques mum limit for construction of school Kansas. I appreciate his calling atten buildings and school purposes generally. tion-- tion again to the fact that this is not a Mr. WHERRY. Let me finish. Not only that, but many communities program in which the Federal Govern have gone to the tax commission and Mr. KERR. Let me answer the Sena ment pays the full cost of the additional tor's question, and then I will let him have received authority to exceed the buildings. It pays only a percentage of legal limit by 25 percent. This is the finish. I do not believe the United States it. It is a program in which the local Government should discriminate be maximum that can be secured without districts themselves are carrying their further legislative enactment. tween the youth of the Nation, all of full proportionate part of the cost, both whom have been found under the law to The situation is serious not only in with reference to the construction of Wichita, but in several other defense be equally entitled to have an ·opportu the buildings and the supplying of the nity for an education. The Senator says areas. I mention only Kansas. I am equipment and the payment of operating sure that the same situation prevails in the law was justified. He says the need costs of the institutions. should be met. When the need of 70 out other States. I believe that the Congress Mr. WHERRY. Mr. President, will the owes a duty to the communities where of a larger group, all of whom are equal Senator yield? ly eligible, is met, it dramatizes the fact. defense production has been expanded Mr. KERR. I yield for a question. beyond the reasonable degree of_ e_xpan- Mr. WHERRY. I shall nc,t discuss Mr. President, that the other 800 or 900 . sion which might have been ant1c1pated the merits of the question, because I was school districts are being discriminated in the normal growth of a city or com against. But then when, as is proposed . munity. Therefore, I sincerely hope th~t 1 Includes projects on which final approval to be done by appropriation of $50,000,- the Senate will seriously study this has been given. 000 reported by the committee, provision 5162 CONGRESSIONAL RECORD-SENATE MAY 10 is made for an additional 92 school dis Mr. KERR. -But we still get back to priated, and only $220,000 spent; and in tricts, the fact is redramatized that the the same proposition, that when asmuch as this is an emergency appro 700 or 800 others not covered are dis about- priation granting $50 ,000,000 · more, criminated against. Mr. WHERRY. Mr. President, will which is all that the Bureau of the I thank the Senator for saying that the the Senator yield? Budget asks, which gives the agency program should have been enacted when Mr. KERR. One moment-that when $99,500,000, none of which, outside of it was enacted, that it is equitable, and about 7 or 8 percent of those for whom the $220,000 has been spent, I ask if the that money should be provided for it, and the authorization was made are taken proper procedure would not be for the I wish he would join with me and other care of, there will be no money left of Senator or anyone else desiring larger Senators who would like to see the Gov the original appropriation to take care appropriations to come before the com ernment itself made responsible to all of the other 90 or 95 percent. mittees of both the House and the Sen these youths who are before it with equal Mr. UNDERWOOD rose. ate and ask for additional authoriza eligibility and equal claim under the · Mr. WHERRY. Will the Senator tion? law. yield for one more question? I might say to the distinguished Sena · Mr. WHERRY. Will the Senator now Mr. KERR. I will tell the Senator I tor that already the agency is going to yield for a question, please? am going to take this slower. I will ask for $50,000,000 more money in con • Mr. KERR. I will yield in a moment. yield to the Senator from Kentucky [Mr. nection with the regular appropriation UNDERWOOD] and let the Senator from bill. What I am trying to get over to Mr. WHERRY. I ·should. like to have the Senator from Oklahoma is that even the Senator answer the question. Nebraska rest a little, and then I will come back to the Senator from Nebraska. though we all agree respecting the mer 1 Mr. KERR. Very well; I yield to the Mr. UNDERWOOD. Mr. President, is its of this matter, there should be or ~enator from Nebraska. it not true that in a good many school derly procedure. Apparently, the money 1 Mr. WHERRY. I did not ask the Sen distr.icts, although the Federal Security that has already been allocated to the fl,tor to make a.speech. Anybody can Agency has granted them entitlement Office of Education cannot possibly be make a speec:ti, during which he wraps under Public Law 815 for the construc spent. We are now considering a sup 1 the flag around the school system. · I tion of school facilities, those school dis plemental appropriation bill which only have done it myself. But will the Sen tricts are not receiving the entitlement came before us withi!l the last few days. ator from Oklahoma agree with me that which has been granted, and they have The regular appropriation bill will be ~.11 the applications made to the Office before us shortly, and if the distin 1 been notified to that effect? , of Education up to March 31 total only guished Senator from Oklahoma then· $1,306,000? . Mr. KERR. I understand that is ab solutely correct, and they have been wants to increase the authorization on ~ - The second question-- so notified because the original appro -the basis of the merits of the case, I ask f-· Mr. KERR. Let me answer them one priation does not contain sufficient him if he does not believe that to be at a time. money to enable the Office of Education · the proper place to make his case and 1( Mr. WHERRY. I will ask the Senator to proceed as it would like to. secure the proper increase for which he two questions, and he can make two an Mr. UNDERWOOD. I have in my is asking. swers. hand a telegram from the superintend Mr. KERR. Mr. President; I want to Ii Mr. KERR. No; I have a one-track ent of schools at the location of Fort say to the Senator from Nebraska that mind and a narrow-gage roadbed and I Knox, in which he says that approxi I have never seen him. more generously , will answer them one at a time. ' I told . mately 25 percent of the pupils in the and generally in accord with the merits the Senator from Nebraska a while ago Elizabethtown schools have parents of a proposal or any more tenacio1.:ls in that I did not know how many had been working at Fort Knox. The Federal Se his efforts to prevent anything being approved. curity Agency has granted them an en done about it. 1' Mr. WHERRY. That is an answer to titlement of $195,762, but notified them Mr. President, I appreciate the re the question. that because of insufficient funds it will marks of the Senator from Nebraska, ' Mr. KERR. I told the Senator fur not pay the application. wherein he asks for orderly procedure. ther-- Mr. KERR. I thank the Senator for Just a few days ago he called me to calling attention to the telegram. Mr. ·Order. on the . Senate floor ,because he · · Mr. WHERRY. That answers the -imagined or thought that I was out of question. President, I ask unanimous consent that the telegram may be inserted at this order, and after he and I discussed the ·. Mr. KERR. I am going to make a ·matter privately but completely, it was remark about it. Furthermore, regard point in the RECORD as· a part of my re marks. · very apparent to my good friend that less of how many of them had not been I had not been out of order. I and accepted and approved, only 72 of them The PRESIDING OFFICER (Mr. HOL LAND in the chair). Without objection, other Senators are following a certain could ·be accepted and approved within procedure in an effort to meet a situa the original appropriation, because it is so ordered. The telegram is as follows: tion which the Senator from Nebraska when that was done the original appro is effusively complimentary of by say priation would be exhausted. ELIZABETHTOWN, KY., May 8, 1951. Hon. TOM UNDERWOOD, ing· he admits that it has merit. If the · Mr. WHERRY. · Will the Senator United States Senate: procedure we seek to invoke lacks in not yield further? Federal Security Agency has granted en being so orderly as my good friend would · Mr. KERR. I yield now for the· other titlement of $195,762 under Public Law 815 like to have it, I hope the lack can be question. for construction school facilities, Elizabeth made up for by the fact that the merits Mr. ·WHERRY. Does the Senator town city schools. However, because of in of the amendment are so great. know what amount has actually been sufficient funds, Security Agency will not Mr. WHERRY. Mr. President, will pay this obligation. Approximately 25 per expended of the $49,500,000, as show!). by cent of Elizabethtown school pupils have the Senator yield? the testimony presented within the last parents working at Fort Knox, and this over The PRESIDING OFFICER
I wish the record to show that person · Mr, BRIDGES. Yes. · I do not know ~'be available for urgently needM school ally I am anxious to assist in any way that that is required by law, but cer facilities .in areas determined by the I can to correct the situation which is tainly it is required by Executive order. President to be critical areas by reason causing difficulty in my State and, I am Mr. STENNIS. I thank the Senator. of national defense activities." sure, in other States. I believe that the Mr. BRIDGES. Mr. President, the I have heard many rumors, I may say way now proposed .is the only avail record which has been stated shows that t.o the Senator, as to what certain States able way by which the Senate can act of the appropriations made to date, will receive, provided the additional immediately in regard to this matter. namely, $49,500,000, as of the end of $50,000,000 is appropriated. I wonder I am indebted to the Senator from March-or a little over 1 month ago how the Senator from Oklahoma has· Oregon not only for his splendid state there had be.:m obligated only $1,306,600, be.en able to look into a crystal ball and ment but also for the able manner in and there had been expended only has obtained that information, wheri the which he has proceeded in regard to this $22'i,729. So of course there is a consid legislation in connection with th:s mat matter as a whole. erable leeway in connection with the ter has not even been enacted. Mr. CORDON. Mr. President, I ap funds currently appropriated. Mr. KERR. In response to the ques preciate very much the statement of the If we now add $50,000,000 to those tion of the distinguished s~nator from Senator from Kansas. funds, certainly · it would seem to me New Hampshire, I must say that I was If the method now proposed, Mr. that would be sufficient during the in impressed by the fact that, so far, most President, were the only one by which terim period to enable the agency to con of what has been stated in the debate on we could provide these funds, I should tinue its work. the floor has been stated by Senators support the amendment. But there is I do not challenge the merit of this who come from States which will not an orderly way by means of which we proposal, which would necessitate the receive anY of the additional $50,000,000, can make.these funds available, and it use of funds in excess of the appropria if it is made available. should be followed. t ion in cases where the need is great; . Mr. BRIDGES. How does the Senator I now yield the floor. but I believe this agency will have suffi know they will not receive any of it? The PRESIDING . OFFICER. The cient funds if in this supplemental ap Mr. KERR. Because I have been fur question is on agreeing to the amend propriation bill we provide the $50,000,- nished ·information-- ment of the Senator from Oklahoma 000, which then will be available in addi Mr. BRIDGES. By whom? [Mr. KERR] to the committee amend tion to the unexpended and unobligated Mr. KERR. By distinguished school ment, on page 12, beginning in line 10, balances. administrators who have been provid striking out in line 15 the numerals "$50,- I should like to make a further point ing me and other Senators with this in 000,000 '-' and inserting "$100,000,000." w:.dch to some extent has been lost sight formation. They have furnished me Mr. BRIDGES. Mr. President, I wish of, I believe. It is that the amendment information as to what ·amounts are to say only a few words in regard to this proposed on rage 12 is to the committee necessary to be appropriated in order to item. It has come to the Senate Appro- amendment reading in part as follows: implement this program with reference 1priations Committee with a recommen FEDERAL SECURITY AGENCY to the schools which are eligible under ~ dation by the Bureau of the Budget. As the authorization bill. ; the distinguished Senator from Oregon OFFICE OF EDUCATION Mr. BRIDGES. That is predicated on . : [Mr. CORDON] has stated, in practically Grants for surveys and school construction two unknown factors, is it not? . all instances of which I am aware the For an additional amount for "Grants for Mr. KERR. It is predicated upon the surveys and school construction," to remain application of the formula as arrived at Bureau of the Budget considers such available until expended, $50,000,000, of matters adequately and fairly. I have which such amount as the Commissioner of and applied by the Office of Education. never known the Bureau of the Budget Education determines to be necessary shall Mr. BRIDGES. Is it not also predi except in a few instances which are so be a'Vailable for urgently needed school fa cated. on whether the President should ' rare that I could not name them if I cilities in areas determined by the President designate the area to which they ap were asked to-to err on the low side in to be critical areas by reason of national plied as a critical area, based upon con recommending appropriations in con defense activities. siderations of national defense? nection with such matters. It is very In other words, so far as I know, that Mr. KERR. It is based on the prac rare for the Bureau of the Budget to language would pr0vide the President of ti,c_e .with reference to the designatio!l do so. the United States with rather blanket of an area, and the formula for deter Mr. STENNIS. Mr. President, will the power to determine how the funds should mining eligibility, now in force, as it has Senator yield for a question? bJ distributed. Unlecs those who antici been provided by the Office of Education. Mr. BRIDGES. I yield. pate what they will receive for certain As the Senator knows, the law provides Mr. STENNIS. Are not these funds projects in their State or for certain that, before a school district may be to be administered by the Office of Edu areas in their State, by means of that come ·eligible for one dollar of Federal cation? Once the Bureau of the Budget provision, if it is made, have been fore funds, it must have exhausted all the makes its recommendation as to what it advised by the President or by the Com· funds which it cari appropriate for itself regards as the proper amount of the ap missioner of Education, predicated upon from local sources of revenue, and that, propriation, the Office of Education is what he knows C'r believes the President subject to correction, though I am con not able to appear before the App.ropria will do, I do not know how such persons vinced I am substantially correct, in the tions Committee and recommend any are able to say what their States or such the over-all picture, as I understand, the other amount, is it, until the Bureau of areas in their States will receive. practice has Leen followed that the local the Budget changes the amount it rec I have been rather surprised to find districts have furnished about one-third ommends? Is not that the practical that attempts have been made to deter of the cost of additional construction, a,pplication of the law? mine the amounts of money which will the Federal Government having fur- Mr. BRIDGES. Certainly that is the go to particular States in that connec . nished the other two-thirds. However, way the matter works out. The answer tion. I should like to ask the Senator in certain instances, the Federal Gov to the Senator's question appears on page from Oklahoma a question in that con ernment· has furnished all the cost, be 563 of the hearings, from which I now nection, if I may do so. causf) the particular local district had read: Mr. KERR. I shall be glad to yield for exhausted its own revenue from local Dr. LINDMAN. Our request was for $100,- a question. ·sources. 000,000. Fifty million dollars was allowed The PRESIDING OFFICER. The Mr. BRIDGES. The Senator has an by the Budget Bureau. Senator from New Hampshire has the swered my question as to whether he Senator HAYDEN. You are here justifying floor. obtained this information by looking in that? Dr. LINDMAN. That is correct. Mr. BRIDGES. Mr. President, I shall to a crystal ball. But ·I should like to 1 yield to the Senator from Oklahoma ask the Senator from Oklahoma whether ! Mr. STENNIS. Under the practice, whatever time he requires to answer my his. informa~ion is not certainly of an the Office . of Education is permitted to question. Let me say to him that the informal nature, and is derived from justify before the Appropriations Com committee amendment provides that the informal sources, rather than being mittee only an amount up to $50,000,000, Commissioner of Education shall· deter official and based on a factual agreement under·those circumstances; is he not? mine what -amounts are necessary · to as to how the money shall be spent. 1951 CONGRESSIONAL RECORD-SENATE 5171 Mr. KERR. The Senator is correct Mr. KERR. Mr. President, wiil the ator from Oregon, and the Senator from in his statement that the information Senator yield for a question? New Hampshire, all three of whom spoke has been informally compiled and in Mr. BRIDGES. I yield to the Sena- at length. They all admit the need. I formally secured. But the Senator from tor from Oklahoma. · wish to point out again, if I may, that Oklahoma assures the Senator from New Mr. KERR. Under the authorization time is of the essence in this matter, in Hampshire that, to the very best of his law, did not the districts have until view of the problem which exists by ability, he has secured accurate infor April 6 to file applications? reason of the emergency. The need is mation and applicable information. Mr. BRIDGES. I do not remember admitted, and the reasonableness of the Mr. BRIDGES. I think it would be the exact date. I think the Senator is figure · is admitted. So I submit to the to the advantage of the Senate if this undoubtedly correct. Senator from New Hampshire that there information were made available. Mr. KERR. The small amount which is no reason for delaying this matter any Mr. KERR. Would the Senator like may have been allocated since that date, further. It is urgent that the amend to have the information showing what is in view of the information to which the ment be put into the bill. available to each of the States, on the Senator is referring, is due to the late I thank the Senator for yielding. basis of this formula? ness in starting on the part of the omce Mr. BRIDGES. I may say to the Sen of Education, with respect to processing ator from Mississippi and to the S3na-· Mr. BRIDGES. The point I was en the applications after the cut-off date, tor from Oklahoma that in the Appro deavoring to make in my remarks is rather than to any shortage in the priation Committee hearing it was that it should have been submitted to · amount of money applied for under the brought out · that on March 12, 1951, a the Appropriations Committee, in order law; is it not? total of 697 school districts had made that we might have had the picture be Mr. BRIDGE$. The Senator is prob applications for Federal assistance for fore us. I am glad to get it from the ably correct. the construction of school facilities un Senator even in an informal way, but Mr: SALTONSTALL. Mr. President, der section 202 of Public Law 815. Of the Appropriations Committee should will the Senator yield for a question? this number, 528 districts had submit have had this information, if it was Mr. BRIDGES. I yield. ted 915 construction projects, request available. The Senator from Oklahoma, Mr. SALTONSTALL. The Senator ing $180,000,000 of Federal funds, and by his very aggressive interest in this mentioned the amount recommended by had pledged approximately $98,000,000 project, has succeeded in acquiring these the Director of the Budget, and stated in local funds. figures to his own satisfaction. Whether that the committee appropriated the full My point is that apparently the Bu the members of the committee would amount. If we should go beyond the reau of the Budget had all this informa place credence in them, after having recommendation of the Director of the tion in its hands before it agreed upon had an opportunity to question those Budget, and lift the ceiling, we would be the request for $50,000,000. who presented the facts and figures, going beyond the amount which the ad May I ask the Senator from Oklahoma may be very much open to question. My ministrativn, through the Director o:Z the if the later figures he has change the point is that when we are required to re Budget, believed could properly be spent figures I quoted to any appreciable sort to an informal presentation, on the in the period for which the funds are ap extent? floor, of figures gathered by a United propriated; would we not? Mr. KERR. The figures stated by the States Senator, on his own initiative, Mr. BRIDGES. That is our assump Senator are accurate, I believe. I think without their having been referred to a tion, and it is the only assumption upon there is another figure which we might committee, the measure under consid which we can proceed, because. that is take into account. On the same date eration being a supplemental bill-there what we are told in connection with all there had either been contemplated for is certainly an added reason why we appropriations. approval or approved $51,000,000 worth should back the committee and keep the Mr. SALTONSTALL. 'If we were to of construction on military reservations sum at $50,000,000, rather than increase go beyond that, we should then be going which, under the law, are first taken it to $100,000,000. beyond the justifications, at :east as care of. So, that being the case, to some There may be a reason, when the evi submitted by the Director of the Budget, extent that :figure would influence the dence· is all in the record, for providing even though the agency making the re amount which would be available· for more funds in the next bill. I think quest might itself feel that it could spend districts other than those on military there is an obligation on the part of .the more; but we would be going beyond the reservations. Federal Government to provide funds, balanced needs of the administration; In further answer to the Senator',s when, by our defense activities, we have would we not? qu~stion, the figures given by the Sena so expanded the problem in a commu Mr. BRIDGES. That is correct. tor from Oklahoma were of a later date nity that an unusual, undue, and almost Mr. STENNIS. Mr. President, will the than March 12. impossible hardship will be placed on Senator yield at that point for a ques Mr. ·WHERRY
Kem Millikin Smathers I find one other phase of almost unani~ · better than our form of democracy, per Kerr Monroney Smith, N. J. mous agreement, and that is on questions haps-I think that that attitude of mind Knowland Moody Smith, N. C. of labor policy. succeeded in building up this Russian threat. Langer Morse Sparkman [Applause.] Lodge Mundt ·stennis In any event, I have had tremendous pleas Long Murray· Taft ure in dealing with the representatives of the I think it put Russia in control in central McCarthy Nixon Thye chamber. Like many of the so-called lobby Europe, in Prague and Vienna, and in Berlin, McClellan O'Conor Tobey ing organizations, their representatives are where they need not have been, to dominate McFarland O'Mahoney Underwood as much concerned, I find, in the public in central Europe and threaten the security of McKellar Pastore Welker terest as they are in their _own selfish inter Western Europe, and therefore of the United McMahon Robertson Wherry ests. (Applause.] That particular kind of States. It put Russia into Manchuria, from Malone Russell Wiley Martin Saltonstall Williams legislative or lobbying organization, if you which they were able to arm the Chinese Maybank Schoeppel Young want to call it that; is of particularly great Communists and support the movement value to those of us in Congress. It is im which finally has given a completely Com The PRESIDING OFFICER. A quo possible for us to know the facts. Those munist domination on the continent of Asia, rum is present. The question is on arguments must be presented to us, as ar working down toward even the southeast agreeing to the amendment offered by guments in court are presented to a judge, section of that continent. the Senator from Oklahoma [Mr. KERR] in the most concise manner and with the However we got there, we are there today,· on behalf of himself and other Senators most effective argument in order that we can and we have the problem of deciding how judge and reach a correct conclusion on the we meet that threat. l to the committee amendment on page public issues before us. On the general principles of that decision,' 12, line 10. . To the questions of foreign policy I cer I don't think that there is any tremendous Mr. KERR and other Senators re tainly do not claim to be an expert. People difference of opinion. I think it is clear, and quested the yeas and nays. have accused me of moving into foreign pol I think the generally accepted proposal by. The PRESIDING OFFICER. Is the icy. The ·fact is that foreign policy moved all parties and practically all elements of the · request sufficiently seconded? in on me. [Laughter.] There is no issue population of this country is that we oppose i.... The yeas and nays were ordered. before this Congress that is not dictated by the spread of communism at every point considerations of foreign policy, no domestic where it can be opposed and by every means ' THE MACARTHUR CONTROVERSY .issue that is not finally determined by such within our capacity to oppose it. I think we 1 issues. We have had a tremendous excite- have adopted those policies, and we have sup- 1 Mr. TAFT. Mr. President, on May 1, 1 1951, when I was absent from the Sen ment because of the resentment among the ported other nations, with economic aid, in people against the dismissal of General Mac order that they may achieve the prosperity ate, the Senator from Connecticut [Mr. Arthur, and of course far-eastern policy has that will prevent the spread of communism McMAHON] attacked a statement which arisen therefore into tremendous importance within those countries. 1 I made before the United States ·Cham and one of pressing importance because of We have given arms aid to various nations ber of Commerce on April 30, claiming it the war, and yet I think we must realize that where we think that there is a threat, a direct was illogical and irrational and had after all Korea is only one phase of a very threat of Russian aggression. We have sent other unpleasant features, and that it much larger problem that we face today. our troops to some places. We have under- ' was inconsistent with my support of That problem is produced by the threat taken in the Atlantic Pact to go to war if 1 of Russian aggression. Perhaps the first Russia attacks certain parts of the world. I General MacArthur's program for re time since the days of the early Republic Those general policies, I think, are not par leasing the Chinese Nationalist troops to when· we faced the whole force of the Brit ticularly disputed today. The great differ- ' assist in the war against the Chinese ish Empire, a small Nation along the Atlantic ences of opinion have arisen in the applica- ' Communists. coast, perhaps the first time since, there is tion of those policies. I In order that there may be no doubt a serious threat to the liberty of the people First of all, I think we must consider the about what I said, I ask that there be of the United States. As your representative necessary limitations on the ability of the incorporated as part of my remarks the has said, liberty is not only the key to United States to carry out the program. I 'address which I made to the annual domestic policy, but it is also the key of We can only undertake those things within foreign policy. The liberty of the people of our ability, and, after all, we only have 6 per- · meeting of the Chamber of Commerce on the United States must be the aim of foreign cent of the population of the world, less than April 30, 1951, at the Statler Hotel. It policy, not any general hope. Of course we half of the total production. And, powerful seems to have annoyed the Senator from wish to raise the standards of the world and . as we are, great as is our production, there is Connecticut that the audience should everything else, but our considerations of a limit to our capacity. have cheered me at the conclusion of the foreign policy particularly when we come to I have felt very strongly, myself, that if speech, but I am quite willing to stand the question of war must be determined we go beyond that limit, we may stretch · by everything I said at that time. solely by the desire and the determination · our efforts to a point where they will fail. I There being no objection, the address to secure the liberty of the people of the It seems to me that the one thing we have ' United States. (Applause.] to fear in the long run-I have no fear was ordered to be printed in the RECORD, Peace is almost as great an aim but after about our ability to defend the United States, ' as follows: even though it might be damaged. The all, we have gone to war to protect our lib 1 Senator TAFT. Mr. Chairman and ladies erty in the past, and we will in the future. only thing which may wreck this country and gentlemen, it. is always a great pleasure But certainly also, it seems to me we should is what has wrecked many other countries: 1 to come to the meetings of the United States never risk war except to protect the liberty the fact that we assume more than we can c:iamber of Com:..nerce. It certainly is by far. of the people of this country, for war itself possibly do. Germany is in ruins today be- ' the greatest representative body of business can destroy our liberty at home, and the out cause Hitler thought that he could conquer· men in the world today. Of course, among come of war may easily destroy the liberty of the world. Japan is in ruins because they them I find differences on questions of polit our people from abroad. thought that they could conquer the Far '. ical importance, varying all the way from The Russian threat today is great because East. There isn't anything which can de- ' one side to the other. I even find on mat of the narrowing of the world, because the stray this country except going further than ters of legislative policy a certain amount of air force can fly now from Russia to the we are able to go considering our ability. differences among the members of the United States, because they have the atomic My principal criticism of the administra chamber of commerce. There are those, as bomb, because they are able to do great dam tion is that· there does not seem to be any in other fields of life, who are for outright age to this country in a way in which even body who has, so to speak, put together the battle and those who are for appeasement Mr. Hitler never had the opportunity of various phases of this program, who has con and those who are for moderate courses. I doing. It is because it is linked up with the sidered all of its implications, who has con have found, I think, that when we get ques aggressive force of communism itself, which sidered where it is going or even exactly tions of controls, they become fairly unani· undertakes to infiltrate successfully with what it shall be . . mous. [Laughter.] When we get to taxa propaganda and actual personal infiltration I think today what we need more than tion, they are practically unanimous in a into foreign governments and create a fifth anything else is a definite program of fore little different way. They are all in favor of column to support the military aggression. sightedness, looking ahead 2 or 3 or 4 years to balancing the budget, and of course of bear Why we are there I don't want to discuss see what we can do, and then decide among ing their fair share of taxation, but there is a · today. It is my own opinion that the policy . those things ottered to us what I::; within particular application to their own indus of this Government from the days beginning our proper capacity. try, or their own position, of which they are at Tehran and Yalta, from the attitude of It nearly all depends upon our military very much concerned and which they think · mind which apparently thought that if you . effort. That is the tremendous strain upon 1s against the public interest. (Laughter.) · gave Mr. Stalin everything he wanted he the economy of the United States. I do not I have about come to the same conclusion · would turn out to be an angel, to the atti think that aid to foreign countries will be as General Hancock on the subject of the tude of mind which accepted communism too great a strain. Aid to foreign countries, . tariff, that t P.xntion is perha:.ls a local and as, after all, just another form of democ of course, imposes soma additional burd~n. personal issue. racy-according to Henr1 Wallace, a little and there m ay ba a graat difference as t'.) 1951 CONGRESSIONAL RECORD-SENATE 5173 just what that aid shall be and where. And local purposes, that is $100,000,000,000, and doubt that he is largely right in that con yet, w~ . en you get down to (i')llars and cents, that is one-third of our total national prod clusion. it is a small item compared to the total uct. It is pretty close to 40 percent of our It gives us the power to aid the land forces effort that we have. national income. that may be fighting on our side and it en It is easiest to measure by the number of Personally, I do not think that we· can ables us to land troops and it protects our men in the Armed Forces of the United stand that without very serious r~sults. I sea lanes and communication with all of the States. What is the program? And what is have felt that the 3,500,000 figure is too raw materials that we need. it going to be 12 months from now? high, or else that the expense of maintaining It gives us a defense, if we can build an Before the Korean war we were told by the 3,500,000 ought to be substantially reduced. Air Force sufficient to dominate the air over Joint Chiefs of Staff that 1,500,000 men were I have suggested 3,000,000 men and a total this country and over the oceans that sur approximately sufficient to provide an ade budget of about $65,000,000,000 instead of round this country, and over even the enemy quate defense for the people of the United $85;000,000,000, or $70,ooo,ooo,ooo instead of country. It gives us then the time in which States. We were told that. they . would not $85,000,000,00.0, as being closer to the limit. to develop whatever other forces may be think of recommending $20,000,000,000 for I do not know what it is. In any event, we necessary if we reach all-out war. Armed Forces, and they ought to be dis have certainly reached the limit in this pro What we face is not war. It is still peace. missed if they asked for $30,000,000,000. posed program. It may be an uneasy peace and yet it is a Then came the Korean war. Of course, The results, if we overdo it, may be ex peace which is different from war, one, be that was a revelation. It showed that the ceedingly fatal to the economy of the United cause the people are not prepared to sur Russians were not averse to using their States. I think it means inflation, and it render everything, and, two, because it may satellite troops at least for direct military means, of course, higher taxes, to begin with. last for 10 or 20 years and we have to make attack. At least it woke the people up, but We would have to add about $25,000,000,000 a permanent adjustment for that condition. it did not create a substantially different a year to the taxes. And when you consider We face a condition we never have faced situation. . that that is the whole yield today of personal before, and in that condition I think we The fact that they were able to use satel incomes-in the last analysis it comes out of ought to be P.ble to set up a permanent lite troops, I do not think proves one way or personal incomes-you can see what a tre condition in which we can maintain our the other whether they are prepared to start mendous additional burden that means. production and the liberty of the people a third world war and use their own troops My opinion is that even if you balance the of this country. in that effort. Nevertheless, it naturally budget at that figure, you cannot avoid in I think in the sea and air, we can succeed drew attention to the matter. And after flation. I do not believe the Government in giving ourselves the choice as to what to that attack, within a month or so, we were can take one-third of the national product, do if a war starts, if it does start. I can't asked for 2,100,000 men. Then we got back . even if you balance the budget, \:ithout in find anybody who can tell me what a third here in December and the program presented flation. The taxes are going to be so heavy, world war is going to look lilte. Whatever to us was for 2,700;000 men. Within 30 days, i~ my opin~on, they will be passed on, as else it looks like, it is not going to look like when we came back in January, it was most taxes can be passed on, into the price the Second Wcrld War or the First World. 3,500,000 men. And there, for the moment, of goods, and you will have approximately War. I don't think today we· ought to de it rests, although I do not think that neces the same result, even if you balance the cide exactly where or how we are going to sarily that presents the limit of what may budget. You have inflation, and the depre fight that war finally. Certainly no nation be asked. ciation of the value of the dollar, and you can build up a military force sufficient to go · Of course, that factor determines all of face certainly a loss of morale in this country. to war tomorrow at full strength without the other important things, ancl it deter You face deep resentment, and you face all destroying their complete domestic economy. mines the draft and it determines whether kinds of labor troubles, and you face, I think, So wh .... t we have to decide, it seems to me, we have to take 18-year-old boys, or 18¥2, or the severest types of controls; and those con is that in control of sea and air throughout • 19, and whether we have to take men for 21 trols, in my opinion, are almost certain to the world we give ourselves the protection months, 24 months, 27 months for continu collapse. with all of the resulting illegality, that we need. That doesn't mean that you ous service. And it means that, even at the if we try to impose them in time of peace. don't need a land army. Of course you need 3,500,000 figure, that every boy in this coun- ' · We have probably the failure of that very a land army, and you need a land army to try is going to have to give 2 years of full production which is our great strength, and defend this country. and defend Alaska and military service in order to provide the which must be the defense of the free world to send to these various island bases. And Armed Forces that are now requested. for all nations, if a war with Russia shall the defense of Japan is no cinch. Unless we Of course, it determines the amount of arrive. devote ourselves without stint to the control expense, and it determines the amount of Of course, if actually you undertook to say of the sea and air in the Far East, we may taxes. It determines, therefore, the severity to the military, "Now, we want 100-percent have great difficulty in defending Japan. We and the character of the controls which protection," they would rightly and could have to certainly solve the Russian sub have to be imposed. rightly recommend probably $150,000,000,000 marine menace if we want complete control Those are the main questions before Con worth of military expense. We spent one of the sea. We will need land troops in gress. half of our national product during the war Japan, which is a vulnerable position, and The Korean war has no great bearing on on the Federal Government. It is an im in fact the Russians today are within gun that total question, because out of these possible situation. If you d.o that you elimi· shot of the Japanese northern islands, due to 3,500,000 men we are using 350,000 altogether, nate all freedom at home, the very thing that their action in taking over various islands probably, in the Korean War, and we are you are trying to protect, and you set up a that are perhaps part of the Kurile Islands told that that is all we have to use. garrison state and you defeat your own ends. and perhaps are not. So that this is a much broader question. As I say, you threaten the very production We need land troops for the occupation of This is a question of what is necessary to of the United States, and so you must select, many bases and we need land troops to land meet the Russian threat. or someone must select what it is that you on the continent wherever we think that we I say it is very difficult to get anyone who choose to do. And that has been the basis can get .'1way with it. will sit down and tell you what this is going of the differences that have arisen, in Con As I see it, this whole question is a ques to cost for the next 2 or 3 years. As far gress and throughout the world. Can we tion of capacity, and the reason that I oppose as I can judge, and I admit I am more or cover everything that you want to do in an all-out commitment to Europe and in less guessing on it, 3,500,000 men will cost Eu:·ope and everything that we want to do sisted on a limitation of the commitment $35,000,000,000 a year continuously, just to in Asia? Obviously we cannot. We have to to Europe is because that kind of an opera maintain them and for travel and for the select. tion not only is dangerous, and you face a operations of the force and replace clothes My own feeling has been very strongly tremendous superiority of men, but you also and perhaps ordinary arms. that we ought to devote our prime atten face a tremendous expense. In addition to that, however, apparently tion to the complete control of the sea and There is a little war in Korea, a small na for 3 years we are going to have to spend air throughout the world. It seems obvi tion, and yet it took all of the th~n capacity nearly $20,000,000',000 a year more on equip ous to me from the expense figures that that of the American Army to fight it. Suppose ment of all kinds, heavy equipment, ships, is something within our financial capacity. you go to Europe with six divisions? Why in airplanes, heavy artillery, in order to reach If we can maintain the alliance with Eng the Second World War we had 60 divisions, the point which we think is necessary. land which I think is most important to do, and a land operation is capable of perfectly certainly we can dominate three-fourths of indefinite expansion, and the addition of bil The total is in the neighborhood of $55,- the earth's surface; and the control of sea 000,000,000 for our Armed Forces alone. We lions of dollars to your budget if you are go and air is not an abandonment of the land. ing to undertake actually to fight that land add about $5,000,000,000 for arms to Europe, Far from that it gives the ability to aid war as one of your major purposes in the and I say that is not, after all, a determin every island nation throughout the world defense of the United States. ing factor. There is about $25,000,000,000 the Japanese, the Philippines, Great Britain, And so in the Far East again we have the for domestic purposes, which includes some and furthermore it gives us a direct threat .question of what our capacity is. I think war purposes, merchant marine, atomic en throughout all of the continent of Europe ergy, and various other things which are today-and I don't blame the President par and the continent of Asia, the direct threat ticularly for his action, except that I think directly related to defense. The total of of direct bombing and the use .of the atomic he did it without authority and should have about $85,000,000,000 is reached. bomb and Mr~ Churchill. says that that had authority from Congress before he did If you ·add to- that $15,000,000,000, or a · threat is what has deterred Russia from it-but nevertheless I think the movement little more, $18,000,000,000 for State and starting a third wodd. :war today. I have no into Korea was a mistake. We committed. XCVII-326 5174 CONGRESSIONAL RECORD-SENATE MAY 10 American land troons to the continent of that the Chinese are the:r;e, maybe they will perfectly easy operation for us to do. Asia, and it is just about as dangerous to do go away. [Applause.] His speech is full of (Applause.] that as it is to commit them to the Con "maybe's," and he admits that there is a At that time Mr. Acheson was in favor of tinent of Europe in any considerable num war with the Chinese Communists but he surrendering Formosa, . and that policy was ber. [Applause.] says if we hold them for a while maybe they urged the day of General MacArthur's dis Of course, we moved in under the highest will stop. He says if we kill a lot of them missal by the British Government on this mot ives, on the theory that the United Na maybe they will go away. Although he says country, and it has not been repudiated by tions called for. the suppression of war by that ther~ are millions of them back in the administration. joining together to hit the first aggressor. China all ready to come in, and he admits Then, finally, we came to the acceptance It is a perfectly sound theory which I cer that they don't care what manpower losses of this cease-fire proposal, which was only tainly would support. The difficulty about they have. ·this January, in which it was proposed that our action on that theory, as opposed to the It seems to me that the policy is oue which in order to accomplish the purpose, etc., all defense of the United States, is that the cannot possibly be continued indefinitely. non-Korean Army forces will be withdrawn United Nations was a weak reed upon which As I cay, the whole moral justification for from Korea by appropriate stages and ap to rely. [Applause.] The only reason we the thing has stopped. I don't understand propriate arrangements in accordance with got their authority to move into Korea was even Secretary Acheson this morning when United Nations principles for Korean people that the Russians were boycotting the Secu he said that there must be an end to the to express their own free will with respect rity Council at that moment and were not fighting, and there must be concrete measure to their future government. Certainly by there to veto the action. against the renewal of the attack, and there the time the forces are out if that election We moved in, and we ·should have seen at must be an abandonment by the enemy of isn't dominated by Communist method I will least that in a second aggression they would his attempt to conquer the Republic of be very much surprised. It seems to me t o be there and they would veto the action, Korea. In other words, all he says is that be a surrender to the principle of a Com which they promptly did as soon as the Chi we must defend South Korea, and he is no munist-dominated Korea. More than that, nese Communists attacked. longer interested in North Korea, and we a cease-fire proposal to which the State De As a matter of fact, when we went into the are going to let the Chinese Communists get partment agrees, or to which it made Mr. Atlantic Pact and adopted this military pro . away with that aggression. Austin agree, said: "As soon as the agree gram we, for all practical purposes, aban As far as preventing the war, the Presi ment has been reached on a cease-fire, the doned the United .Nations, except as an im dent in his speech says that we prevented General Assembly shall set up an appropriate portant· diplomatic body through which world war III by moving in against the body which shall include representatives of peace may be worked out perhaps-an or first aggressor to break the peace since the the governments of the United Kingdom, ganization that can discuss the questions Second World War. And then he says, "Now the British"-who want this settlement and which· certainly I would be in favor of we prevent world war JI! by not punishing "the Union of Soviet Socialist Republics, and continuing; but as a means of stopping ag the aggressor when the aggressor is bigger." the People's Republic of China"-four of gression, which was the main purpose of the He says that now we prevent world war III them, three of them against one. We shut United Nations Charter, it has proved to be by :fighting a soft little war with the Chinese out the Nationalist government of China, a complete failure because of the veto power, Communists, and not really doing anything although they are the recognized represent and we have to simply disregard it in our about it. atives of China in the United Nations today· military dispositions hereafter. I cannot imagine anything that more en and the government that we represent. Four At any rate, we got into Korea, and there co.urages aggression than that attitude be of them to sit down in conformity with exist we were, and when the Chinese attacked we cause here is an aggressor who is not to be ing obligations, etc., to discuss problems, found ourselves in a second war, in a second punished, whose towns are not even to be including, among others, those of Formosa. aggression, and on that aggression the United. bombed, and even those who oppose him in and of representation of China in the United Nations refuse to take action. Here was an Nations. aggression infinitely more serious than the his own country are not to be supported. It aggression of North Korea, and here was a is perfectly safe apparently for a big aggres Certainly that ts a clear step toward the great nation attacking not only Korea itself sor to go right ahead and aggress without surrender of Formosa and the admission of but also the United Nations' army which was the slightest idea of. punishment, and the China to the United Nations as a reward for engaged in preventing and punishing aggres turning over to him of whatever he can the aggression which they have undertaken. sion, and certainly to say that we are hold actually secure by force of arms. That is That cease-fire proposal we agreed to. It ing them today is a ridiculous provision, be the proposal as I see it, of the President didn't go into force because the Chinese .cause the purpose of their aggression has today. Communists turned it down. The State · largely been accomplished. They have al The second policy is one in which I have a Department naively suggested they only ready captured half of Korea, and they have feeling that the American people cann.ot and agreed to it because they thought the Com ·already killed thousands of United Nations' will not stand for, an indefinite stalemate munists might turn it down, and they wanted troops. The United Nations have entirely war. The boys are being killed and wounded the strategic advantage with the United· Na abandoned their theory, so that, as far as the by the thousands every week and I do not tions. [Laughter.] moral justification for the Korean War in the see how you can indefinitely continue the What I am afraid ·of-what I have been beginning is concerned, it has been wiped present situation. So I felt very strongly fearfUl of-is that a reversion to this pro out. We have abandoned that moral that it either is going one way or the other. posal is still in the wind; it is still there. justification. Either it is going the way that MacArthur In my opinion, if that is done, if that settle 1 If we were going to go through with it we has recommended, that we at least try that ment is made, if we surrender Formosa, turn would have to march to the capital of China program of ending the Korean War or else it over to the United Nations to turn over to and punish the Communist Chinese, and, o.f it is going the way which Secretary Acheson China, it is going to so weaken our whole course, that clearly everyone recognizes is at least in the past has espoused, and which position in the Far East that it will be almost beyond our capacity. Therefore, that par he has not yet in any speech repudiated, and impossible to hold on to Japan and hold on ticular basis for the proceeding has com which the President has not repudiated even to the Philippine Islands, both of which pletely failed. an appeasement peace, a peace which I think are subject today to strong Communist in We find ourselves at war in Korea. I must I am justified in suspecting, so to speak. I filtration, · as well as Communist military admit that there is no satisfactory outcome think it is more important that the Congress attack. or ·no certain outcome or successful out negative the possibility of such a peace, be So I have felt that the third policy at least come in prospect in that war. The immedi cause from the beginning there has been a should be tried, that is, the policy of General ate issue before us here in Congress, it strong sympathy in the administration with "MacArthur, in substance: seems to me in Washington, is between the the Chinese Communists. Secretary Mar Number one, the use of Chiang's troops in different proposals that are presented for shall went to China to try to force Chiang Formosa or China or anywhere e.lse they can that war. Kai-shek to take the Communists into his be useful. [Applause). Nationalist China is The present policy of the administration cabinet. That was the announced policy of a member of the United Nations. They have as expressed by the President the other day, the Government in 1946 and in 1948 despite been called upon by the United Nations to a!ld as expressed by General Bradley and the fact that in Czechoslovakia we saw what furnish troops against Communist China, Secretary Acheson, is a stalemate war with happens when you take Communists into against the · North Koreans. · They volun no possibility of bringing the war to a con your cabinet. There was a constant sym teered to do so, and we rejected their aid. clusion. Certainly there is no plan to bring pathy in the State Department for the Com There was some sense in it when the Chinese it to a conclusion. As I read the President's munists and they were represented as merely Communists were not in Korea, because speech, our Army is to be bound exactly agrarian reformers. Then a year ago only naturally if they had gone in it might well like a football team with orders that when Secretary Acheson sent out a memorandum have brought the Chinese Communists in. ever they reach the middle of the field they saying that the · American people must be Now they are in. From that moment the are to kick. Well, of course, they never can conditioned for taking over of Formosa by policy of holding back and neutralizing score, and sooner or later someone on the the Chinese Communists. Here was a place Formosa makes complete nonsense as far as other side is going to catch the ball and where, if you were going to follow the very I can see. [Applause.] run through our line for a touchdown. basic principles of our foreign policy to con It seems to be generally agreed that all [Applause.) tain communism where you coUld contain south China is in a ferment, that all of the The President's hopes are almost pitiful. communism, we certainly should have de rural population is up in arms against the He said apparently that if you don't n otice fended Formosa to the end because it is a Communists today because of the treat ment 1951 CONGRESSIONAL ·RECORD-SENATE 5175 they have received, that yo·.i have 100,000 . approval of the bombing of China, but c.er The results, if we overdo it, may be exceed guerrilla troops operating in differ mt places . ta.inly nobody in a responsible position in tl1e ingly fatal to the economy .of the United. in south China with whom the Chiang gov administration has said one word which neg States. I think it means inflation, and it ernment is in contact and can be in more atives the possibility of our accepting again means, of course, higher taxes, to begi11 contact if permitted, that we can create at the cease fire proposal which we once ac with. We would have to add about $25,000,- least a diversion in south China that will cepted, which is still urged by the British, 000,000 a year to the taxes. And when you withdraw Chinese arms from Korea and re which is still urged by the United Nations, consider that that is the whole yield today lieve the tremendous pressure, which today and which, therefore, is constantly a pres of personal incomes-in the last analysis it is forcing back the forces of the United sure upon the action of the administration. comes out of personal incomes-you can see Nations. [Applause.] Certainly it is in sympathy with the thoughts what a tremendous additional burden that The troops can be used in Korea, but I and the prejudices of the present admin means. can't understand the principle upon which istration. My opinion is that even : if you balance we refuse to use them. It is said that in So, I think it is very necessary myself the budget at that figure, you cannot avoid some way it is going to bring Russia into that we make clear what our position is on inflation. I do not believe the Government the war. Why would it bring Russia into that question. I think it is desirable that can take one-third of the national product, the war? Here is a civil contest in China, we adopt a more aggressive attitude in China. even if you balance the budget, without in just exactly like Greece. We intervened in That doesn't mean any invasion of China. flation. The taxes are going to be so heavy, Greece although that might have brought Invasion of China is morally justified, but in my opinion, they will be passed on, as Russia into a third world war. We sup it is something we can't do. The measures most taxes can be passed on, irito the price ported the anti-Communist forces in Greece which are proposed are measures to enable us of goods, and you will have approxima:tely against the Communist forces in Greece. We to· win the war in Korea, and by at least the same result, even if you balance the sent money and arms and everything but expelling the Chinese from Korea, defeat budget. You have inflation and the depreci men into Greece to do that. There is no ing the purpose of their aggression. I think ation of the value of the dollar, and you face reason that I can see why we can't send in the long run even that is not a very certainly a loss of morale in this country. money and men into Formosa in order that effective weapon. At least it will restore the You face deep resentment, and you face all they may operate freely and remove the position of the United States in the Far kinds of labor troubles, and you face, I think, neutralization which has been imposed upon East. At least it will be some discourage the severest types of controls; and those con them by the forces of the United States. l!lent to aggression. The present policy, if trols, in my opinion, are almost certain to ·[Applause.] long continued, seems to me simply ties our collapse with all of the resulting illegality, In the second place, you have the bombing Army up. It creates a condition in whfoh the if we try to impose them in times of peace• . of communications, which of course is a mili Russians have full time to prepare their own tary matter which is absolutely necessary. forces without losing or using a single man. It will be seen that I was discussing-the It is only restrained by political considera It shows the world that, after all, aggression question as to the total economic capac tions. The only argument urged today is pays and cannot be seriously prevented. ity of the UniteJ States to maintain in that it will bring Russia into the war. We It seems to me that nothing could lead definitely a mobilization such as that so much in the long run to a third world war have taken a lot of chances on Russia's com now proposed. I crit :. ::i~ed the adminis ing into the war. When we undertook the as the indefinite continuance of a stalemate tration for not stating clearly what the airlift in Berlin it would have been a very war in the Republic of Korea. [The audience arose and applauded.] program was, and estimated that if all simple L ::casion that could have brought a of the things proposed were put into ef third world war. When we moved into Greece Mr. TAFT. Mr. President, I shall we certainly undertook . that danger. When fect, we would be spending at the rate · we set up the Atlantic Pact, an obvious al read. the portion of the speech to which .of approximately eighty-five billion a liance that we a.re going to arm 11 nations the Senator from Connecticut made year. I stated that, in my opinion, surrounding Russia all the way around from reference in order to show clearly and sixty-five or seventy billion dollars of Turkey to Norway, certainly that was an ag exactly what I did · say. It consists of Federal exp?"'''Htures were closer to the gressive move which Russia could have used one page, and i:eads: economic capacity of the country than as an excuse for undertaking a third world This is a question of what is necessary eighty-five billion. The latter figure war if they wished to do so. The arming to meet the Russian threat. would require taxes of more than one of Germany, which in fact we threatened to I say it is very difficult to get anyone who third our total national product, and do--the Secretary of State announced that will sit down and tell you what this .is about 40 percent of the national income. we were going to arm Western Germany- going to cost for the next 2 or 3 years.· As . produced such a tremendous protest from far as I can judge, and I admit I am more I stated that I thou:-ht this would bring Russia and such a threat of aggression that or less guessing on it, 3,500,000 meh will about hardship, inflation, and confusion we finally backed down on that particular cost $25,000;000,COO a year continuously; just even if taxes were levied to cover the proposal. I think the Russians may bring a . to maintain them and for travel and for the entire amount. third world war if they see something lik,e operations of the force and replace clothes I was encouraged that afternoon by . invasion of Russia, but certainly the bomb and perhaps ordinary arms. the President's message which came to ing of Manchurian bases or the use of In addition to that, however, apparently Chiang's troops is nothing that threatens Congress just after my speech was made. for 3 years we are gC?ing to have to spend I notice that the President does not con even remotely any invasion of Russian ter nearly $20,000,000,000 a year more on equip ritory. [Applause.] ment of all kinds, heavy equipment, ships, template the expenditure of eighty-five The third proposal of General MacArthur . airplanes, heavy artillery, in order to reach billion a year, but reaffirms his estimate . is a blockade of Communist China. I have the point which we think is necessary. of January that the actual expenditures · somewhat more doubt about that. I haven't The total is in the neighborhood of in fisc'.11 1952 will be only in the neigh had an opportunity to study the matter or $55,000,000,000 for our Armed Forces alone. borhood of $70,000,000,000. He esti the complications that may develop, but cer We add about ·$5,000,000,000 for arms to mates that the Army will spend fifteen tainly it seems to me if we release Chiang, Europe, and I say that is not, after all, a and one-half billion, the Navy eieven he had a 11retty good blockade operating be determining factor. There is about $25,000,- billion, and the Air Force twelve and fore we tied him up in Formosa. Before that, 000,000. for domestic purposes, which in he was very effectively stopping a good deal cludes some war purposes, merchant marine, one-half billion, or a total of $39,000,000,- of the materials that were going into Com atomic energy, and · various other things 000, which is approximately the estimate munist China to arm the Chinese armies which are directly rela,ted to defense. The which he made in January. I hope the against the American Armies, and I . think total of about $85,000,000,000 is reached. President is right, although if the figures certainly such a blockade could be tried per If you add to that $15,000,000,000, or a given by Mr. Wilson and Mr. Johnson haps before we tried it ourselves. little more, $18,000,000,000 for State and local are accepted, it is difficult to see how he As I see it, the difficulty with the proposed purposes, that is $100,000,000,000, and that is can be right. I question whether his Truman policy, as I said, is that it cannot go one-third of our total national product. It on forever. So I believe the choice in the is pretty close to 40 percent of our national figure on expenditures is more than a end must be between the former Acheson income. guess. · In any ev~nt, he seems to be policy, which may or may not be abandoned, Personally, I do not think that we can much closer to me than he is to the Sen and the MacArthur policy. I am very much stand that without very serious results. I ator from Connecticut. concerned that unless Congress expresses have felt that the 3,500,000 figure is too high, The argument of the Senator from clearly its definite opinion in opposition to or else that the expense of maintaining Connecticut was taken up by the Senator the Acheson policy, we will wake np some 3,500,000 ought to be substantially reduced. from Arkansas [Mr. FuLBRIGHT] in ques morning and find that policy already a.dopted. I have suggested 3,000,000 men and a total in the face of the overwhelming disapproval tions to General MacArthur, and by the budget of about $65,000,000,000 instead of editor of the Washington Star, who of the American people and of the Congress $85,000,000,000, or $70,000,000,000 instead of itself. [Applause.] $85,000,000,000, as being closer to the limit. ·seems to think that in some way my sug .. Most of the Democratic Senators havo ex I do not know what it is. In any event, we gestion is inconsistent with a more in.. pressed their opposition to any surrender of have certainly reached the limit in this pro tensified war in Korea. Of course there Formosa. S:)me of them have expressed their posed program. is no relation between them, .and there 5176 CONGRESSIONAL RECORD-SENATE MAY 10 is no inconsistency whatever. The use we can to win the war in Korea, by every which the Senator from Connect·cut of Chinese Nationalist troops now immo move we can take except the invasion of made on the floor of the S~nat e when I bilized by administration policy requires China by American soldiers. I think was not present, in which he attacked a sum which is almost negligible in terms that is beyond our capacity. I think we the statement which I made as incon of the preparation we are making have justification for it, but I think it is sistent, and in which he misrepresented against Russia in Europe and through an impossible operation. that statement. I rose only for the pur out the world in terms of the· figures Mr. McMAHON. Mr. Pre3ident, will pose Of placing in the RECORD a denial of which I have been discussing. As a gen the Senator yield? the statel!lents made by the Senator eral proposition, it is far cheaper to make Mr. TAFT. I yield to the Senator from Connecticut. use of the assistance of our allies in a from Connecticut. Mr. McMAHON. Mr. President- ·war, even if we have to give supplies and Mr. McMAHON. The Senator would The PRESIDING OFFICER. The logistical support than it is to provide · agree with me, would he not, that that Senator from Connecticut is recognized. more American soldiers. Furthermore calls for considerably enlarged military Mr. McMAHON. I regret very much it saves the lives of many American boys. operations in the East? Does the Sen if I have misrepresented the position of I wish that distinguished Senators and ator believe- the Senator from Ohio on· any matter, the editor of the Star would try to do a Mr. TAFT. I think it would require and I ·certainly would be most regretful little thinking on their own and analyze · supplies. I do not know how many more if I misrepresented his position on this the economic situation of this country American men it would require. I should issue, which is one of the great issues of and come to their own conclusion. In think it would require fewer American our time. I distinctly remember that I my opinion, it is vitally important that · men in the East. In the long run, it came into the Senate Chamber from the we do not bankrupt ourselves in the would be easier to :fight the Chinese lobby and read to the Senate the ticker vital project we are undertaking. I did Communists with Chinese Nationalist announcement by the Associated Press, suggest that we try three million men troops than with· American troops, to which reported that the Senator from instead of three and one-half million say nothing of the saving of life which Ohio had spoken to the chamber of com men. I have suggested elsewhere that we could accomplish by that method. merce and had advocated three things: with 3,000,000 men we ought to be able Mr. McMAHON. The difference be One, a cut in the budget of $20,000,000,~ to get at least the same 24 divisions into tween the Senator from Ohio .and the 000; two, a reduction in the Armed Forces the front line as now proposed with Senator from Conriecticut is that the of 500,000 men; three, enlarged opera three and one-half million men. In Senator from Connecticut does not be tions of a military nature in the Far cidentally, this is more than the Joint lieve that it is in the best interest of the East. The Senator from Connecticut Chiefs of Staff requested in December security of the United States to engage was so impressed with the inconsist 1950, when they had all the facts before in enlarged operations in the East, which ency of this program that he refrained them that they have now. I have sug-· undoubtedly is the plan of the Soviet from speaking further about it at the gested that there is a large waste of per Union, if we are foolish enough to fall ·time. However, on the hext day the sonnel in the Armed Forces, and that we for it. Senator from Connecticut tried to ob ought to be able to put as many men into Mr. TAFT. We have fallen for it. tain a transcript of the remarks of the the fighting fronts as we are now plan This administration put us into a war Senator from Ohio before the chamber ning with very many fewer men in uni in the East. We are fighting a war in of commerce, and was unable to do so. form. The Senator from Connecticut the East. American boys are dying be But I did find a story as reported in the and the editor of the Star have appar cause of the war in which we are in New York Times, and the story as re ently reached the state of mind in which volved. I am interestecr only in winning ported in the New York Times I read to a proposal to accomplish our purposes that war as soon and as cheaply as pos the Senate, and it bore out the an by spending wisely and thus spending sible. nouncement of the Associated Press less, is called a contradiction in terms. Mr. McMAHON. Mr. President, will dispatch. Mr. McMAHON. Mr. President, ·wm the Senator yield? Unfortunately, as I said, I did not hear the Senator yield for a question? Mr. TAFT. I yield. the complete presentation of the Sena Mr. TAFT. I yield for a question. Mr. McMAHON. I agree that today tor from Ohio and I do not know how Mr. McMAHON. Unfortunately I was we are :fighting a limited engagement in he has justified the story as reported in detained, and reached the Chamber in the East. the New York Times and in the Asso time to hear only the latter part of the Mr. TAFT. It does not look limited to ciated Press dispatch. But I say, and I Senator's remarks. He may have said those who are being killed and wounded, say it with a_,s much force as I know how some things which may affect the ques I ~ay say to the Senator. to give it, that the proposal to cut the tions which I shall ask. The PRESIDING OFFICER. The Budget $20,000,000,000, and the Armed I should like to ask the Senator if he Senator from Connecticut will finish his Forces by 500,000 men, and the support still approves the suggestion for the question. for the program of an enlarged war in logistical support of the Chinese Nation Mr. TAFT. The Senator from Con the Far East, as recommended by Gen alists in a landing in China. necticut was not asking a question; he eral MacArthur, does not make sense Mr. TAFT. I think I would approve was making a statement. to me. that. I must say that the important The PRESIDING OFFICER. Does Mr. KERR. Mr. President, will the thing, it seems to me, is to say, "Yes, Mr. the Senator from Ohio yield for a ques Senator yield? Chiang, Mr. Nationalist Government; tion? Mr. McMAHON. I yield. we will use the troops you off er us in Mr. TAFT. I yield for a question. Mr. KERR. Could that possibly be the Korean War, and we will use them Mr. McMAHON. I think the Senator the reason why General MacArthur said as our military authorities think they from Ohio will agree with me that it such a proposal would be silly? can be best used, whether in Korea or would perhaps be best if I were recog Mr. McMAHON. I beg the Senator's in South China.'' We are a long way nized in my own right, because the pardon. from China, but so far as my informa difficulty of carrying on this debate, Mr. KERR. Might what the Senator tion is concerned, it would be a very sim limited as I am, apparently, by the Sena has just said have been in the mind of ple proposition today for Chiang to link tor from Ohio in the asking of questions, General MacArthur when he said that up with the guerrillas in South China is not consonant with the presentation such a proposal of enlarging the war on and conduct a war which at least would of what I regard as the fallacies of the the one hand and cutting it down on the divert from Korea many thousands of case of the Senator from Ohio. other hand would not be a very sound Chinese soldiers who are now killing Mr. TAFT. Is the Senator from Con or consistent action? American troops. necticut asking a question or not? Mr. McMAHON. I will say to the Mr. McMAHON. Then, as I under Mr. McMAHON. I am asking the Senator from Oklahoma that the Sena~ stand, the Senator has not retreated Senator if he does not agree with the tor from Arkansas [Mr. FuL~RIGHT] put from his proposal, which is the accept opinion of .the Senator from Connecti those propositions to General Mac ance of General MacArthur's advice for cut. Arthur, and, of course, he denominated enlarged military operations in the East. Mr. TAFT. Yes. I agree with the them-I do not say that he said they Mr. TAFT. I have not departed from opm10n. I am through. I made this were silly; I do not know that that was my idea that vie should do everything statement in answer to a statement the word he used, but he did say that, 1951 ·coNGRESSIONAL RECORD-SENATE 5177 of course, he did not agree with those in China? I have not heard that ·ques Mr. President, let me make one more propositions. tion resolved. observation. I have heard from various Mr. HUMPHREY. Mr. President, will Mr. HUMPHREY. Mr. President, will sources expression of sympathy for the the Senator yield? the Senator yield again? · losses in Korea. I do not think there Mr. TAFT. · Mr. President, will the Mr. McMAHON. I yield. is any Member of this body, or of the Senator yield? Mr. HUMPHREY. I recall that the House of Representatives, or any com Mr. McMAHON. I yield first to the Senator from Connecticut was present mon sense person in the United States, Senator from Minnesota. on the floor of the Senate on the occa who is not acutely conscious of the Mr. HUMPHREY. I wonder whether sion of the speech made by the Senator losses we have suffered in Korea. They or not the Senator from Connecticut in from Massachusetts [Mr. LODGE] when are losses, as I have said before, of all the hearings that he has attended and he discussed the tactical aircraft strength men who have given their lives in as all the debates in which he has engaged and the strategic air strength we have. great and glorious a cause as this with those who support the General Mac I think I recall that the Senator from country has ever stood for. It is by Arthur position, has been able to find Massachusetts pointed out that we were their action that we have managed to any documentation as to .the number still somewhat weak; that we still needed keep Asia from disintegrating. of combat divisions that Chiang Kai a great build-up, and that we had com I say that those who constantly talk shek would have, the caliber or the qua1..:. mitted most of our available military air about the losses in Korea had better ity of their training, the kind of equip craft into areas of tension already. I tell the American people about the pos ment and the condition of that equip- · wonder whether or not the Senator from sible losses to the troops of our country ment, the spirit or morale of the troops, Connecticut could tell me-or has he and to the people of our country if we • and finally whether or not he has ever been able to find out from the men who were to adopt what I regard as a rash, been able to find out what would happen · are saying that we ought to use Chiang reckless proposal to extend the action in terms of the troops, once they landed Kai-shek's troops-how many planes we not only into China, but into a flaming on the mainland. I wonder whether the would need, who would fly the planes, world war. That is a factor arid an Senator from Connecticut has found out who would supply the planes? I wonder aspect of the situation which we have not whether or not the British intelligence if the Senator has been able to find out sufficiently discussed, but which is being report is true, as was made available in from those who want Chiang Kai-shek's better understood by the American pe;:> the Newsweek magazine, which stated troops to go to the mainland of China, ple. that over 50 percent would desert once how many guns will be needed, and how What they want us to do is to solve they were on the· mainland? Has the much ammunition will be needed? In the problem at hand without bringing Senator from Connecticut been able to other words, if we are to have another on a third world war. They are not in get ·any facts about that matter? war we ought to have informution as to favor of desperate and :reckless military I have heard a great deal about this how to get that war started, and how to adventures, which would not result in army. I wonder whether it is a retreat win it. Has the Senator been able to destroying the source of the military ing army or a :fighting army? The last obtain any information on that? power which exists against us in the experience we had of it was that it was Mr. McMAHON. I think that infor world. When ·some p:)rsons try to tell a retreating army. I wonder whether the mation should be in the RECORD before the American people that there will be Senator from Connecticut has any fur we start, so we can measure that infor fewer American dead if we enlarge the ther evidence which would tend to show mation against the statement of the situation in the air and on the water, whether the army is now revitalized, Senator from Ohio that he is going to to say nothing of on the land, and if we whether it has in it enough spirit to make try· to do his best to reduce the budget expose this country to the kind of dan it a victorious army or whether it is the by $20,000,000,000. ger which most of us understand, if the same kind of an army it was before? Mr. HUMPHREY. Mr. President, I Senator from Ohio does not understand Mr. McMAHON. I will say to the am so happy the Senator from Connect it, I say that the American people are un Senator from Minnesota that I have not icut made that last observation, because derstanding the answers to those sugges heard any evidence which would · back that deals with the next question I was tions, and I have no doubt what their any of the estimates which have been going to ask him. There seem to be verdict will be. made on the subjects the Senator has anywhere from 300,000 to 600,000 Chinese Mr. BENTON. Mr. President, will my mentioned, but I will say that I am firmly troops on Formosa. The census :figures colleague yield for a question? convinced from what I have heard and are not very accurate with respect to the Mr. McMAHON. I yield. from my study of the situation, which number of troops on Formosa, but let us Mr. BENTON. Does the senior Sen includes estimates of responsible military say for the purpose of illu.3tration that ator from Connecticut .happen to know men, that if there is an invasion of the there are r;oo,ooo troops there. Has any the casualty rate per month in the Ko mainland of China by Chiang Kal-shek's one in the Senate of the United States rean war in the case of those who serve troops there will be Americ.an troops in figured out how much it would cost to in the Armed Forces from the State of front of them. · equip 500,000 of Chiang Kai-shek's Connecticut? Mr. HUMPHREY. Mr. President, will troops? I ask that question because if Mr. McMAHON. I do not have those the Senator yield? the budget is to be cut by $20,000,000,000, :figures at the tip of my tongue. Mr. McMAHON. I yield. does that mean we are going to take the Mr. BENTON. I was told today by Mr. HUMPHREY. Has the Senator equipment away from our own troops; the press correspondent for the Hart been able to find out what troops would . does that mean that we are going to ford Courant that it is 50 a month. Of defend Formosa if Chiang Kai-shek's withdraw our troops from Western Eu course that is a tragic loss to those 50 troops on Formosa were to land on the rope; does that mean we are going to families. mainland of China? close up our present recruitment pro In view of the fact that Bridgeport, Mr. McMAHON. That has not been gram? How are we going to equip 500,- per capita, is the most highly industri resolved either, I will say to the Senator; 000 troops, reduce the budget by $20,000,- alized city in the United States, and is nor has the question been resolved as 000,000, wage and win a war in Korea, turning out more goods, per capita, to what would happen if we got Chiang land Chiang Kai-shek's troops in China, through its hundreds of factories, than Kai-shek back in China, and we sup send four divisions to Europe, and con . is any other industrial city, would the ported him with air and sea power-and I duct a major mobilization program at Senator make a guess as to what the suppose if he should return to China, we home? Anyone who can give me the casualty rate in Bridgeport could be as would have to support him with land answer to that question should receive the result of the dropping of one bomb troops, regardless of our intention-and the Pulitzer prize for 1951. An answer to on that city? · then the Chinese Reds retreated beyond that question will mean something. Mr. McMAHON. I am sure the Sen the Yalu, and said, "We want to make Mr. McMAHON. I Will say in an ator is as aware as I am of the effects peace." I have not heard anybody re swet to that question, that we will have of one atomic bomb of what might be solve the dilemma we would then be in. to do that trick by the use of mirrors. In called minor size on Hiroshima. In an Would we then walk out ·on Chiang my opinion the question cannot be an swer to the Senator's question, I do not Kai-shek and made peace or would we swered by the use of ·common sense and state that to inspire fear. After all, it insist on putting him back on the throne logic. is the strength of a democracy, above 5178 CONGRESSIONAL RECORD-SENATE MAY 10 that of a dictatorship, that the people of Chin.a is thousands of miles away from Mr. TAFT. I yield to the Senator from a democracy can look the facts in the Russia, so anything we do in that area Oklahoma. face and steel themselves with the reso cannot possibly constitute .a threat of Mr. KERR. The Senator from Ohio lution . required of them to meet any invasion of Russia. has said that we have repeatedly done danger. We risked a war in Greece when we that which involved a risk of provoking However, I say that the solution of supported the anti-Communists, for the war with Russia equal to that which our difficulties at this time is the devel Russians might have gone there and would be involved in the proposed action opment of an intelligent program by might have supported the Communists. of expanding the present conflict in Asia means of which to take the peoples of In this entire period we have con on a basis which would carry it to Red the world away from the Soviet Union. stantly taken the risk that the Russians China. The· Soviet Union can have all the guns might start a third world war; and in Mr. TAFT. That is what I have said, and bombs and planes it wants, includ Europe we have taken a far greater risk yes. im atomic weapon5, but if the Soviet of that than we have been willing to take · Mr. KERR. Will the Senator from Union does not have the support of peo: in Asia. Ohio tell the Senator with reference to ples it cannot make war. Every attempt The Secretary of State blithely an any other risk to which he has referred, that has been made in the Senate, dur nounced, when he returned from the wherein the taking of it would have com ing my service here, to accomplish the Brussels Conference, that we were going pelled Russia either to intervene or back objective 'of alienating all peoples from to arm Germany with armored divisions. down in connection with a treaty which the Russian rulers has been resolutely We got a quick notice from Russia then she had or has, of equal dignity with the fought by some of the Members of this that if we did that, Russia would con treaty she has with Red China? body. sider it a cause of war. General Eisen-· Mr. TAFT. Off the record, I do not Mr. TAFT. Mr. President, I merely hower very wisely, I think, backed down know. I have not stated that. I have, wish to say that both the distinguished from that position because, more than however, seen a list of 50 treaties which Senator from Minnesota and the distin anything else, the Russians fear the pos St~lin had, written from the time go guished Senator from Connecticut have sible invasion of Russia by German ing back to about 1940, none of which he repeated a charge which I have just troops. ever kept, all of which were violated by completely disproved, namely, that I said Over and over again we have taken Russia; so that what kind of treaty Rus we should cut the budget $20,000,000,000. the chance that Russia might start a sia has . with anyone I think iS highly What I said was that I thought $70~- third world war. unimportant. 000,000,000 represented about the eco-· Mr. KERR. Mr. President, will the Mr. LONG. Mr. President, will the nomic limit of what we could do in time Senator yield for a question? Senator yield for a question? of peace. I have pointed out that on the Mr. TAFT. I shall yield in a minute. Mr. TAFT. I yield to the Senator from same day the President of the United Mr. President, I think that so far as Louisiana. States submitted to us a report-which: possible we must refrain from anything Mr. LONG. The Senator mentioned is on my ·desk-covering the budget for which would give the Russians legitimate a treaty-a nonaggression treaty, I be military functions, in which he reaffirms cause for believing that we are contem lieve-which Russia had with Japan at his estimate that in the entire fiscal year plating an invasion of Russia, for I think the time Japan was engaged in war with beginning on the 1st of July and ending that is what perhaps might cause them China. But is it not a fact that under on the 30th of June of thefollowing year to begin a third world war. Otherwise, such nonaggression treaties, a country the expenditures will be those ·which he they will ·start a third world war when is bound to go to war only if its ally is estimated in January, namely, approxi they are ready to start it, regardless of attacked? If Japan did the attacJdng, mately $70,000,000,000. what our action may be. as occurred at Pearl Harbor, or as oc 1 What I said was that, if we took all Mr. KERR. Mr. President, will the curred in China, there would be no ob the ·proposals which are being gi:anted, Senator yield for a question? ligation on Russia in such a case as that they would amount to $85,000,000,000, Mr. TAFT. I yield. to enter into the war, would there? and I thought that was beyond our eco Mr. KERR. The Senator from Ohio Mr. TAFT. I am afraid I am not fa nomic capacity. · is aware, is he not, of the existence of a miliar with the exact terms of the treaty. So what the Senator from Connecticut treaty of mutual assistance between Rus I only know that when the Russians did is objecting to is a sum which the Presi sia and Red China, to be implemented in go to war with Japan, they directly dent of the United States himself seenis the event either of them is attacked? violated the treaty-and they did not to think is sufficient by way of expendi Mr. TAFT. I am also aware of the hesitate to do it. tures.· Certainly the charges that have fact that all during our war with Japan,· Mr. KERR. Mr. President, will the been made against me-and I rose only Russia had a nonaggression pact pro Senator yield for a question? to refute them-are not supported by the viding that Russia would cooperate with Mr. TAFT. I yield to the Senator from President's statements. Japan, and I am further aware that Oklahoma. Mr. President, let me say that we are Russia never kept her word in ac Mr. KERR. Does not the Senator pursuing a policy of the containment of cordance with that treaty. The Rus from Ohio know, first, that the agree Russian communism. That is the entire sians· will keep their treaties only when ment which Russia had with Japan was basis of our policy all over the world. it is convenient to the Russian interests not a mutual assistance pact; and, sec We are spending money for American to do so. ond, that it was openly repudiated and troops, which is the largest cost, and we Mr. KERR. Mr. President, will the publicly repudiated by Russia several are spending money for economic aid to Senator yield for another question? months before she declared war on countries and for arms aid to countries. Mr. TAFT. I yield. Japan? In that policy we have repeatedly defied Mr. KERR. Is the Senator from Ohio Mr. TAFT. I could not say. I am not Russia. We have repeatedly endangered a ware of the existence of the treaty familiar with all the circumstances. I this country or have brought about a which has been described by me? only say that there is nothing which has condition because of which Russia might Mr. TAFT. I know there is such a been suggested which answers the ques start a third world war. treaty; I have not read it. Not only that, tions or the statement I have made, that In the case of Europe we have not · but I think it is highly unimportant, if we have not hesitated to give ·Russia hesitated to say to ·Russia, "Cross this the Senator wishes to know my opinion cause for war. We have gone into line and you will find yourself at war of it, because I say that in the past the Turkey, from which Russian cities may with the United States." We have not Russians have had treaties which they be bombed; we have armed the Turks; done that in respect to Asia or Indo have ignored or violated. The Russians we certainly would consider the arm china or anywhere else in the world. had a treaty with Japan, but the Rus ing Mexico by Russia as a cause of war We have notified Russia that we are sians directly violated that treaty when on the part of Russia. We have given going to establish on their borders a they went to war with Japan; and the them all the cause they want, if they tremendous army of 60 divisions, an Russians did not go to war with Japan want to go to war. army of millions of men who may them until they were ready to do so. Mr. KERR. Mr. President, will the selves, apparently, constitute a sufficient Mr. KERR. Mr. President, will the Senator yield for a question? threat of the a~tual invasion of Russia. Senator yield for another question? Mr. TAFT. I yield. 1951 CONGRES~IONAL RECORD--SENATE 5179 Mr. KERR.· Does the Senator know A:rizona [Mr. McFARLAND] and the Sena which I have some doubt. I want to say, of any treaty wb,ich Russia has with tor from South Carolina [Mr. JOHNSTON], in the first place, that I believe the Sen anyone, whereby she has agreed to come I ask unanimous consent to introduce a ate should know that a joint resolution into a war, or to begin a war against us joint resolution and request its immedi to accomplish approximately these -pur or anybody else who did what the Sena ate consideration, without reference to a · poses was introduced by the Senator tor has described, and as we have done committee. · from New York [Mr. IVES], and that it in the case of Turkey? Tne PRESIDING OFFICER. Is there has been pending in the Committee on .Mr. TAFT. I know no more about the objection to the request of the Senator Labor and Public Welfare. The provi terms of the treaties which Russia has from Georgia? sion about which I am somewhat doubt than does the Senator from Oklahoma. There being no objection; the joint fui is· the one which reads: Mr. KERR. Mr. President, I would resolution
TAXES .civilian spending. The 45 percent corpora The level of interest rates adopted for Government should in these boom times, tion income tax, however necessary; 1s too · financing the Second World War was too fn this period of limited wars, pay as it goes, high already to be healthy, to permit fair low. The extreme cheap-money policy was raise in taxes enough to pay·all its expenses. dividends and adequate reserves, for the jog inflationary. Taken in conjunction with the This will avoid a deficit, and deficit financing, · along companies. high level of. taxation, and the full taxa which is inflationary._ "Excess profits tax" ls a horrid name, for bllity of the bonds, it was not conducive to When the total tax burden is and must be !t implies a condemnation of profits i1 they saving and investment. High taxes and low very heavy indeed, the only safe rule is not are large. Large profits are not necessarily interest rates combined to make the yield . to rely too heavily on any .one tax, but to excessive. To call them so plays into the ' of Government bonds insufficiently attrac devise and impose a great diversity of taxes, hands of the Socialists, Communists, and en tive to investors other than exempt and direct and indirect, none at excessive rates, emi~s. of free enterprise. We should. not semiexempt. institutions. but so widely distributed in thair incidence adopt the language of our opponents, and The postwar debt policy of our Treasury as to provide great and fairly stable revenue of the disgruntled people who think that has been to borrow too cheap and too short. without being crushing in their effect on any nobody ought to be able to make any more · No long-term refunding has been done for particular groups or activities. Taxation money than anybody else, whatever his 5 years; and the debt is getting shorter with is not an exact science and the burden of skill, energy, ability, and enterprise. Our the lapse of time. That policy is improvi taxes falls unevenly. It is impossible for the American enterprise system is the profit dent. Our fiscal unpreparedness is compara lawmakers to foresee every contingency and system. It ls that system that got the ble to our military unpreparedness. everyone's problem. Undue depenqence on production that made victory in two world . Funding of some portion of the public certain kinds of taxes may have crushing wars possible; and can do it again. This debt is a matter of common prudence, and effect in some special cases; and, on the other proposed tax should be called, not an excess indeed of urgent importance, in view .of the hand, may make the Treasury's revenues profits tax, but a "defense supertax", a name gravity of the international situation. Bonds uncertain and erratic. There should be a which would indicate the special and tempo should ·be sold to the people in as great variety of sources of revenue. rary character of this tax and the fact that it vohlme as possible to lap up the savings not It is well that Congress increased income is an extra tax on those companies best able reached by taxes. Negotiable bonds ~hould taxes in September and abandoned the pro to bear it. ' be sold. War loan drives should be insti posed repeal or reduction of excise taxes. The defense supertax should be very ~od 7 tuted to sell them as well as the nonnegoti In addition to excise taxes we shall :Q.eed a erate, or it will lead to wasteful expendi able savings bonds. Such drives would raise general retail sales tax at moderate rates. ture and discourage enterprise and produc more money and they would arouse the in Such a tax, though anathema to some poli tion. By "moderate," I mean that the tax terest of the people and give them a sense of ticians and some theorists, has great prac rate should be low, the base period of past· participation in the defense effort. Tap tical advantages. It taxes only the last ear~ings should be recent and fairly long, issues should be avoided. They kill the mar transaction. the sale to the ultimate con and the rate of return on capital exempted ket by keeping the supply always ahead of sumer, and is not (as corporation income from the tax should be generous; and that demand. tax tends to be) reflected over and over again the taxpayer should have the option as · To promote the wide distribution of a re in costs and prices on the way from pro- between the past earnings test and the cap funding issue among small holders, tax ex , dl,lc.tion to consumption. . A retail salei; tax ital return test. New companies and new emption.. carefully limited, might be granted has the social merit, and political demerit, enterprises of all companies should be to small holdings of persons o~ small income. of bringing to the r..ttention of th,e voters the exempt from the defense supertax altogether I have·a1ways opposed tax exemption in gen costs of government. Some local author since they can have no record of past per eral and, at the Treasury in 1917,, in connec ities already use it; but they have no ex formance for comparison, and it should be tion with the Second Liberty Loan, I initi clusive right to it. It ought to be adopted our effort to encourage new undertakings. ated the limited taxation of Government · by the United states. . The proposal made at the last session of bonds, all previous issues having been fully Congress to treat a part of the earnings of exempt. Later I urged the adoption of a. There wlll hav~ to be more tax increases the base period as excess profits.is unfair and When rearmament gets going, but there is no constitutional amendment to permit Federal would be ruinous to many companies. It is taxation of future issues of State and mu great hurry about it. The post-election tax never in the public interest, least of all in bill should not be panicky or punitive. In nicipal bonds, and vice versa, which passed a periOd of national peril, to impose punitive the Houte of Representatives in January 1923, spite of all the talk about a deficit, there has or destructive taxation. Let us postpone our been an over-all Treasury cash surplus for but died in the Senate.. But the present one domestic. -yendettas while the e!lemy is at sided system leaves persons of large income the 5-year period since the Second World the gate. · free to buy fully tax-exempt State and mu War, and also for the first quarter of this Provision for renegotiation of war and de nicipal bonds, of which there are some twenty fiscal year, beginning July 1, 1950. There fense contracts is desirable. It is just an billions, a,nd offers little inducement to per may be a cash surplus for the first three other form of tax, and will permit the .Gov sons of moderate income to ,buy fully taxable quarters, if not for the whole, of the fiscal ernment to ~collect sums from war contrac . Unit!'ld States bonds. The public debt is too year ending June 30, 1951, due to the in tors which no general tax at reasonable rates much concentrated now in the hands of cor creased taxes under the 1950 act, the high could r~ach. In order. to expedite produc porations that .are .wholly or partly tax free national income, the low unemployme.nt, and tion, the Government must grant liberal anyway. The taxation of bond interest to the inevitable lag in actual spending for re teTms to war ·contractors. When they turn people of small means is more a nuisance armament; for blueprints are not planes nor out in the event to have been too liberai, than a source of revenue, and limited ex tanks nor submarines, alas, and appropria- . renegotiation is only decent. emption might stimulate saving and invest tions are not expenditures. It may take some The proposed withholding tax on divi ment. A small sin against sound doctrine mqnths to catch .up .with the deficit in our dends, happily di.Bearded in the recent act, ~ight do more good than harm. armament and convert it into a Treasury should be dropped forever. The paper work . CHRONIC INFLATION cash deficit. We should pay as we go, but would burden the taxpayers -and the econ not before we ·go. omy out of all pr'oportion to the real gain · For the same good purpose, a cost-of-living bonus bond has been proposed. Th.is would EXCESS PROFITS 7'AX to the Government. It is dishonest for the Government to take money even temporarily be an automatic self-perpetuating inflation As actuai cash defense expenditures rise, accelerator. Increasing the public debt and there may have to be what is called an excess which it isn't entitled to and without a claim of right, as in .the case of exempt in the money supply is a method of inflation; profits tax.; but it should not be retroactive. so it is proposed to pay a bonus to bondhold If a retroactive excess profits tax is adopted stitutions and p_ersons whose income is so ers and thus increase the debt and the money we may have a cash surplus this fiscal year small as to be tax-free. For the small stock.;. supply some more. During and after the .. ending June 30, 1951, so large as to be de holder the burden is serious. Say a man . First World War a rubber dollar, a price in flationary. An excess profits tax ·is a bad owns 10 shares of A. T. & T. The dividend dex tlollar, was proposed. Now it is proposed tax; but need not be so very bad if its terms is $90. The .proposed withholding tax is $9. to issue a rubber public debt. We are to are fair and moderate. The only and suffi How much paper work would the stockholder have an automatic inflation of the public cient excuse for it even in an emergency is have to do to get back his $9? Very likely debt in accordance with a price index. Al that the Government must take the money he would forget or neglect it, in which case ready some companies have given a fillip to wherever it can be got with the least disturb the. Government would have done him out inflation by promising an 'automatic cost-of of $9. Pretty petty business, that. All the living wage increase. It is said that all parts ance to the economy; that the Government Treasury needs is full information returns, must get the money where the money is. A of the community, especially Government from corporations and custodians, to catch moderate tax of this type, a supertax for the employees, white collar workers, clergymen, tax dodgers. Let the tax gatherer gather his college professors and others should have national defense, would be better than a own taxes. further increase in the straight income tax -~· their compensation linked automatically to on corporations. Companies that have ab FUNDING THE PUBLIC DEBT· the cost of living. Our economy is to achieve normally large income in relation to capital In preparing to ~efend ourselves and our perpetual motion by continually pumping in or past earnings are better able to bear more ·economy, we had better get our debts in a little more inflation, fairly distributed. One taxes tha.11 companies that are jogging along order. We may have to borrow more, and in wonders who will pay for it all? The for without b«;!nefi.t of defense spending and that these money matters let's ·take some lessons gotten man? He will be sunlt without a · , . perhap~ .. are evl')J:l , hurt by. cul'tailment of from the past. trace. No, we shall just have to print p~per 5192 CONGRESSIONAL RECORD-SENATE . MAY 10 money, so that everybody may pay every credit increased $1,600,000,000. In the mid force a denial of credit to industry, agri- , ...body more and more ·paper and receive less summer madness of 1950 the Federal Reserve culture, and commerce, but to reduce .the
and less value. Inflation is the most deadly was actually expanding credit. How odd inflationary pressures which lead 1 them to ' of all economic diseases. There is no way to control credit for consumers and home seek it. The reason why a company builds to make it painless. As with drink, the cure builders while the source of all credit pumps a plant or buys equipment or inventory is is to stop it. out more of it to oblige the Treasury. It not that some wicked banker pushes money f PAR-PEGGING is penny wise and pound foolish of the at it. Quite the contrary, the reason is that ! One difficulty in the way of refunding the Treasury to borrow cheap and short and money is cheap and the company has seen ' short debt and avoiding inflation seems to force the Federal Reserve to create· money the need of the plant or the equipment or be the strange new doctrine of par-pegging: and credit to keep money cheap, interest the inventory in its business; and then, and that Secretary Morgenthau's wartime deci rates low, and bond prices up. No wonder only then, it goes around to a bank and sions must be maintained and perpetuated, inflation threatens. The Treasury pinches seeks to borrow the money. And if it is a although that modest gentleman would some pennies in the form of nominal inter well-managed company engaged in legiti never claim infallibility for himself, and est savings and the Government and the mate business, with a satisfactory balance that his level of interest rates must not be people pay through their noses in higher sheet and income account, it will probably breached, that Government bonds must prices for what they buy of goods and serv · get the money; if its own bank can't find never be allowed to fall below par. ices. The Government, being the biggest the money then from some other. Until The par-pegging policy is, perhaps, an buyer, is the biggest sufferer. money becomes really scarce, the banks extreme reaction against what was done to CHEAP MONEY, DEAR MONEY, AND FAIR MONEY which have liquid assets will continue to . Liberty bonds after the First World War. meet the demands of their credit-worthy Not only to sell more bonds and refund customers engaged in lawful and creditable It was not, however, lack of support, but the short debt, but also as a measure of forced liquidation, that put the 4¥-i ·percent and profitable business, and will when nec credit control, the Government should re essary seU securities in the market or to the Fourth Liberty Bonds, for instance, down to vise its extreme cheap-money policy. That about 82 in 1920. The market for Liberty Federal Reserve banks to enable them to do policy subsidizes consumer spending and dis so. The Federal Reserve will have to buy bonds was supported, though not pegged, by courages thrift and saving. Cheap money the War Finance Corporation, until the Fed- 1 these securities at high prices and low yields is medicine for bad times, not for boom if it wishes, or is forced by the Treasury, eral Reserve's deflationary action made fur times. The price of money is just as impor ther support futile. The bonds had been to keep down the level of interest rates. The tant as the price of anything else. When first results of increasing reserve require· sold by the Liberty Loan Committees in the Government freezes the price of money, as course of campaigns in which the people ments will be to take business from the ours has done for years, it prevents the pri~e. poorer banks and give it to the richer ba.nks; had been urged to borrow to buy them. or interest rate, from exercising its normal After the war the Federal Reserve began to and to take earning assets from the member function as a brake on the demand for banks and give them to the Reserve banks. raise its interest rates on loans secured by money; and the Federal Reserve, as we have Government bonds, in order to force their The last result, if the increase in reserve seen, must increase the supply of money in requirements goes too far or continues too liquidation, and finally, in 1920, the New order to prevent the pressure of increasing York bank rate was raised to 6 percent in long, will be deflation and depression. Is demand for it from forcing up the price, the that the way to win a war or to defend the January and 7 percent in June. That was interest rate. dear money, indeed, the dearest ever in Fed Nation? The too-cheap money policy of today is Increasing cash-reserve requirements eral Reserve history. The dumpiI).g of .bad, but that is no reason for turning to the Liberty bonds in 1920 was thus forced by the other extreme. Not only our own welfare, might. force the Federal Reserve directly, in i Federal Reserve, as part of its policy to con but the Whole structure of the free world's stead of the member banks,· to finance the ' trol the inflation and to defend the gold economy, and the national defense, depend defense. effort iI). the first place, if and to · standard. . on the maintenance of a high degree of pros the extent sufficient taxes are not collected · ~ Nobody proposes such a deflationary policy· and sufficient bonds are not sold to the in perity in the United States. Our economy vesting public. Such direct borrowing by now. But why turn to the other extreme? cannot endure the alternation of overeating Why should a long-term bond, a 2¥2 percent and overdrinking and over.purging which the Government from the Federal Reserve, Victory bond, of the Government of the highly 'agreeable though it is to state social· it was put through in the years before and ists, should by all meaps be avoided. Unde United States be made payable on demand by after 1920, 1929, and 1937. I do not for a the Federal Reserve banks at par or better? minute suggest a dear-money policy or a sirable as Government borrowing from the The little fellow who buys savings bonds, scarce-money policy; just a fair-money pol member banks is, yet if the Government E, F, and G bonds, must accept a discount must borrow from banks at all, it had much icy. It is not necessary to turn ·from par better borrow from the member banks; that or loss of interest if he cashes them before peggfng to bond-dumping. It is unnec~ssary . maturity. Why should the holder.S of bearer they should be enlisted in the defense effort, for the Federal Reserve to inflate or deflate us. and stand between the Treasury and the bonds, many of them insurance companies They might just let us breathe naturally. and tax-exempt institutions, be. presented on Federal Reserve. Though some member a silver platter, free for nothing, with a mar RESERVE REQUIREMENTS banks may later have to dispose of some of ket at par or better? This was a gift they Another thing to avoid is an increase in their holdings in the market or to the Fed hadn't contracted for or paid for. member bank reserve requirements. Indeed eral Reserve, if the Treasury offers them I There is no better way to make a bond reserve requirements in the central reserve · more securities than they can take and keep attractive to investors than to pay a fair cities should be reduced to the levels in or distribute, what they continue to hold in rate of interest for the money. Moderately reserve cities, and to that extent geographical Government securities will exercise a certain higher interest rates on new issues should discrimination should be eliminated as Fed moderating influence upon their lending. help to widen the market for Government eral Reserve authorities have proposed. policies. The necessity of applying to in bonds, strengthen the Government's credit, Making changes in reserve requirements is vestors, the money market, and the member and lt'educe the need of resort to bank bor not a good method of credit control. It is banks, for funds will exercise a ·salutary rowing by the Government, which is infla- , a rough and ready method; too rough and influence upon Treasury policies; while tionary. The level of interest rates in too ready. It is a dangerous weapon: the direct borrowing by the Treasury from the general, for long money as well as short, denial of credit without regard to need or Federal Reserve, a thoroughly vicious and should be allowed to rise moderately, and merit, instead of merely increasing its cost. unorthodox practice, tends to make the bond prices should be allowed to fall com The increase in member bank reserve re Federal Reserve just a Treasury bureau and mensurately; but an orderly market should quirements imposed by the Federal Reserve the Federal Reserve note just a greenback. be maintained and deflationary interest rates Board contributed decisively to the dis A forced loan by member banks in the should not be tolerated. astrous depression of 1937-38, and to the guise of a supplementary reserve in certain brief recession of 1949. The latter, though Government paper, as proposed by the Fed EXPANDING CREDIT mild here and terminated by a prompt re eral Reserve Board, is quite as indefensible It is not merely that the general level of duction of reserve requirements, had un as an unduly high cash reserve. In some interest rates is too low to be healthy; as it happy effects on world trade and on the ways it would be worse. It would force the is. Far worse is the Federal Reserve's ex international balance of payments, and banks to buy and hold Government paper on pansion of currency and credit in order to helped to force ·the devaluation of almost the Government's. terms. It would disable maintain that unduly low level of interest all foreign currencies. them from serving the needs of agriculture, rates. Between December 24, 1947, and The purpose of increasing reserve require commerce, and industry. It would operate November 10, 1948, the Federal Reserve spent ments is to make money and credit scarce, unequally and unfairly among the banks, over $9,500,000,000 In buying up at or even unavailable, to industry, agriculture, · some of which have large and some small par or more the Government's funded and commerce, for the conduct of their busi holdings of Government securities. war debt, and the Federal Reserve sold short ness, without making it dear for the Govern It is impracticable to police the loans of Treasury paper, and expanded Federal Re ment, and to provide funds for the Federal the 14,000 member and nonmember banks serve credit over $900,000,000 to pay for the Reserve to buy in the public debt. What by direct action of the Federal Reserve or of bonds. From the beginning of the Korean are the commercial banks for if not to lend a committee of bankers. "Direct action" War, from June 21 to November 1 of this money to credit-worthy customers for credit was tried and failed in the twenties. . The year, Federal Reserve holdings of all Gov able business? Surely the remedy for undue only fair, effective method of control is an ernment securities and total Federal Reserve _ expansion of business loans is not to try to increase in interest rates. 1951 CONGRESSIONAL RECORD-SENATE
THE TREASURY AND THE FEDERAL RESERVE is to be hoped that the Secretary will con- my differences of opinion within the There is nothing new about the present sen~ to yield to them the moderate increase . party, and not attempt to do so by way disagreement between the Treasury and the -in mterest rates suggested. ·~\ of supporting the opposition. Federal Reserve Board. As an old Treasury CONCLUSION ..~~7 . R~ga:rdl~ss of .the point. of. view M~. hand, and a New York banker, I have a We must do everything we can to avoid '. Amlle indicates m the begmnmg of hlS good deal of sympathy for both sides. In my day in the Treasury, upward of 30 inflation and cut out avoidable or deferable book as his view of my brand of Repub years ago, my dear friend and chief, Carter or wasteful nonmilitary expenditures; but Jicanism I wish to say that his book let us not be frightened by the expense of represents a tremendous amount of Glass, then Secretary of the Treasury and war or rearmament. In view of our great , k' d · · · ex-officio Chairman of the Federal Reserve gold reserve; which is so vital to insure our work, the m of a d1g~mg-out ~ob ~hat Board, .got so angry with Benjamin Strong, buying power abroad and more than ever . is not very often done m checkmg mto another dear friend of mine, then Governor precious as a war che;t, there is no financial -. the record of the Congress and its Mem of the Federal Reserve Bank of New York, limit to the ability of the people, the Treas- bers. for raising bank rate on Government-secured paper, that Glass threatened to have Strong ury, the Federal Reserve banks and the ~ I knew Tom Amlie when I was a stu disciplined. It was with. no small difficulty member banks to meet the Government's dent at the University of Wisconsin. In that I succeeded in composing the differ defense needs or war needs. War is eco- fact, during one year he and I were mem nomic waste. There can be no pay-as-yo:ii- bers of the same debating team I con- ences, or at least allaying them, between ga policy in case of general war. But while . . · these two ·very able and patriotic and red Russia's rulers follow the self-saving plan of s1dered. him then, as I do now, a ve~y headed gentlemen. limited war, of war by proxy, we had better good friend. In our. stud~nt days I did f The long struggle between the Treasury pull up our belts, reduce our luxurious civil not always agree with hrm, any more and the .Federal Reserve has been a losing spending, public and private, increase our than I agree with all of his views now; one for the latter ever since, nearly 17 years ago, Congress reorganized the Board and taxes and fund our debt, and pay our way but what I know of him as a liberal Re took the gold behind the Federal Reserve from day to day. publican and what I know of his powers notes away from the Federal Reserve and LET'S LOOK AT THE RECORD-BOOK BY of objectivity cause me to recommend his gave it into the custody of the Treasury. THOMAS AMLIE book to the reading of all Members of The present struggle about the level of . the Senate. interest rates is important not only be- . Mr. MORSE. Mr. i::res1dent, I should He is a very keen scholar. He was a ' cause of the small difference of rate in hke to call the. attention of the Senate great scholar in student days After ; valved but also because of the principle in to a book, entitled "Let's Look at the . . . . · ' volved. Shall the Treasury arrogate to it Record ,, which I understand is just off college, he entered mto polltics, and for f self the sole right to determine the level of ' . . . one or two terms, as I recall, he was a I 1nterest rates for commerce, industry, and the press. It is written by Thomas.Amlie. Member of the House of Representatives 1 agriculture, or shall the Federal Reserve I have only scanned tl~e book, but i~ pur.. from a district in Wisconsin. Since have the final decision? There are those ports to be an analysis of the act10n of then 1 understand he has generally re- · who wish to have the issue determined by Congress for the past 20 years on some . . . . 1 act of Congress, and power conferred de- ·~ of the key issues which have come before tired .from polltic~l 1_1fe, and has b~en .: it, issues which in· the opinion of Mr. devotmg most of. ~is t~me to the practice 1 cisively on the Federal Reserve. I think · that would be a mistake, although I agree -~ Amlie lay down a line of demarcation of la~ 3:nd to writmg m the general field Iwith the Federal Reserve, and disagree with ·~ between two points of view in the Con.. of polltics. . . the Treasury, about the interest rate. Our . gress, namely, the point of view which From my . scann~ng of his. book, even ' system of government is based upon the supports a growing trend toward monop- though we ~ay disagree w1~h .some of i theory of checks and balances; and the olistic control in America and the con.. t~e obser~at.1ons he makes m it, I ~e- _ view of the Fpunding Fathers, that no one trary point of view which seeks to sup- heve that it IS worthy of careful reading ..1 man, or group of men, is infallible has on the whole been confirmed by history, even port the exercise of greater economic ~Y 3:ll Members of he ~nate. I. hope by current history, It is far better that the democracy in the United States, or, as it will be made av~ilable m ~he Library Mr. Amlie points out, the difference be.. of Congress and m othe~ libraries, so 1 Treasury and Federal Reserve authorities, men patriotic, honest, and sincere, viewing tween an ultraconservative point of view that the reader~ of _America can check the problem from different angles, should . up on wha.t I thmk IS a remarkably ob- debate until they come to a decision in the ~n the ec.onom1c. front and a so-called jective study and factual presentation of public interest as they see it, than that hberal po~nt of .view. . the voting records of Members of Con- either should be given power to control the In ma~mg th~s statem~nt, let me pomt gress during the past 20 years on the other. out that m the mt~oduction to ~he book, list of major issues which M!'. Amlie has The Treasury is wrong in this case; but I am ~ot treated m too com~llmentary selected for analysis. the Federal Reserve is not· infallible. In a fashion because of my devotion to what 1920, 1929, and 1937 the Board showed I think is a basic tenet.of political ethics MESSAGE FROM THE HOUSE notable unconsciousness of the violence, of if one is to hold offi.ce in one of our great A message from the House of Repre- the lethal nature, of the weapons which Congress had given them, and a marked political parties. sentatives, by Mr. Snader, its assistant · tendency to go to extremes in the!= use. The As my colleagues know, I have always reading clerk, announced that the House present Chairman of the Federal Reserve held to the point of view that if one holds had passed the joint resolution CS. J. Board in Washington, and the President of major political offi.ce in either of the two Res. 72) to provide certain benefits for the Federal Reserve Bank of New York, are political parties, he has an ethical obliga.. certain persons who shall have served in men of wisdom and moderation, but the tion not to befoul his party's nest in the Armed Forces of the United States Washington Board still lncludes in its mem political campaigns by campaigning on and after June 27, 1950, with an bership men who sponsored the disastrous against his party. I have always said he amendment, in which it requested the increase in member bank reserve ·require ments in 1937; and the Board has asked of has the right and, in fact, the duty, if he concurrence of the Senate. Congress power to require member banks to is to maintain his intellectual honesty, The message also announced that the increase reserves still further in cash and to remain silent in a political campaign House had agreed to the report of the Government securities (up to 61 percent in if he cannot in good conscience and full committee of conference on the disa ' central Reserve cities) in order to enable the honesty support either the platform or greeing votes of the two Houses on the Federal Reserve to buy up the funded debt, the major candidates of his party. Cer.. amendments of the Senate to the bill 1f need be, to keep it at par or better. On tainly he has that intellectual obligation; (H. R. 3336) to suspend certain import the whole, in view of its record, it seems just as well that the Federal Reserve•s to and he has no right to remain in his taxes on copper. consult and get along with the pruitical party and then proceed to campaign for ENROLLED BILL SIGNED authorities. I see no reason to grant the the party of the opposition. If he is go .. Federal Reserve power to override the Secre ing to follow that course of action, he ,. The message further announced that the Speaker had affi.xed his signature to tary of t he Treasury, or vice versa. I think should resign from his party and should the enrolled bill from Nevada, and it contains the same tlcipation in the Atlantic Pact, NATO, the fense? Let us cite a few exam1~1es of inter Ianguage which the minority leader had European recovery program, and the various national inactivity' in achievilig common submitted in the form of a resolution, in military- and economic-aid programs which measures of export controls. which the Senator from Missouri [Mr. have formed a major framework of United Transit trade, shipment of goods to a KEM] and the junior Senator from Ne- States foreign policy since World War II. friendly country whence it is transshiped to vada J'oined. The investigations of the subcommittee the enemy, is acknowledged as a major loop- last winter in the United States ·alone, with hole for strategic shipments to the East is Mr. WHERRY: Yes. Also the Sen- respect to exports of strategic and critical exceeded perhaps only by direct shipme~ts ator from Michigan and many other materials to Communist China, an aggressor from noncooperating countries. Such trade Senators. nation which is at this very moment engaged is still uncontrolled by anything approaching Mr. MALONE. Is the amendment to in killing United States and other troop con- a multilateral agreement of the western be amended now? tingents of the United Nations, revealed that countries. Throughout Europe the tradi- Mr. WHEa,RY. No. The distin- even agencies of our own Government were tional free ports are operating without any uished chairman of the subcommittee delinquent and tardy in initiating measures hindrance as a major channel for strategic g to protect our national security. supplies to the east has accepted the Kem amendment in The recent investigation of Western Ger- What about West ·Europe's export controls? toto. The remarks I made had to do many has shown this to be the case there In an effort to ascertain if strategic goods are with procedure in conference. I appre- also. Strategic shipments by one of our being reexported or transshipped to the ciated the remarks of the Senator from major allies, Great Britain, to the Commu- eastern bloc, this country has found it nec- Michigan with reference to the vote. If nist enemy, as disclosed recently in the Brit- eES ary to check t he end-use of each ship- we adopt the amendment unanimqusly ish Parliament, have pointed up the extreme ment of strategic materials to western Euro- at this time, I hope, regardless of the state of confusion, disagreement, and busi- pean nations. Let me point out, though, rules of the House that the amendment ness-as-usual attitudes of large segments of that this procedure is being followed not as adopted will be brought into confer- the anti-Communist Western World with . with regard to potentially unfriendly coun- regard to east-west trade. t i b t · d · t d t d 11' i ence, where it may be thrashed out. The It is true that efforts have been made not res, u is irec e owar our a ies n Western Europe receiving materials, through Senate should stand fast on the manda- only· by United States agencies, but also by grants, loans, and outright gifts, from the tory provision. governments of western Europe and the United St ates for their armies, their indus- Mr. MALONE. The distinguished United Nations to decrease, hinder, and halt tries, and their citizens. Many of these goods Senator from Nebraska is aware, is he the flow of war-potential materials to the are in short supply here and are needed for not, that exports from Singapore• and eastern bloc. There is very little question, our own economy, but we are sharing them Hong Kong of rubber, tin, steel, and though, that these efforts have been neither in the interests of western defense. Why has practically all other materials which are adequate nor timely nor wholehearted in it been necessary to institute such checks of terms of the enormous danger that faces the our fr1·ends and a111·es? Is i·t i· ly th t necessary for war and for peace have · · s mp a been stepped up materially in the last Western World at present. there is no agreement as to what is strategic? The question which faces us today is Or is it that Western European countries do 6 or 8 months, perhaps within the last whether what we have done and are· doing is not have the will or desire to carry out steps few years. too little and too late in countering this situ- necessary to the common defense which may Mr. WHERRY. The Cannon version ation which now menaces the very freedom of be somewhat onerous to their citizens or dis- on the subject does not go far enough. Western Europe and the United States. agreeable to their politicians or costly of It is time for the Senate to take action. Discussions of measures for safeguarding trade profits. I know that many speeches· have been our common security interests in the matter Why bas the United States stood almost made and many recommendations have of east-west trade have been marked by alone in denouncing and prosecuting those quibbling, procrastination, and reluctant of its own citizens who have attempted to been forthcoming. The pending amend- acquiescence in those things which are for export illegally to the eastern bloc when ment would place the responsibility the national and international good. practically no other western European coun- squarely where it belongs. It is a man- Prime Minister Attlee, in a recent state- try has done so on any comparable scale? datory provision. I think it would go ment in the British House of Commons~ Why is it, indeed, that trade of the western a long way toward eliminating the ex- stated: "There is no agreement as to what is nations with the eastern bloc has increased ports which we know are being made strategic." This statement is an evasive enormously in terms of machinery and in- and which should be stopped. truism which has little value toward achiev- dustrial goods and raw materials at a time Mr. O'CONOR. Mr. President, in ing effective action to halt the tlow of war when less total goods than ever are being materials to those who seek to subjugate the offered by Eastern European countries? view of the fact that the able chairman free world. Much that is offered by the east is not essen of the subcommittee has indicated his certainly there can be but a small area of tial to the Western European economies, and acceptance of the amendment, I shall disagreement as to what are strategic mate- the balance there is not sutftcient quantity not delay the Senate but I should . like rials. We have tangible and definite indi- or value to warrant the trade. to ask that a statement which I pre- cations in current world-wide shortages, in The statement made just today in the pared be printed in the RECORD at this a review of the items which we supplied House of Commons that, in the interest of point, as a part of my remarks. Russia in the war against Nazi Germany, and better relations between Great Britain and There being no objection, the state- in the very extensive supplies which are the United States, no more rubber would be being furnished at present to the North At- shipped to Red China for the remainder of ment was ordered to be printed in the Iantic Pact countries and, even more, in a this year is a welcome one, even though it RECORD, as follows: review of those things the east is now trying comes late, indeed. Maybe by the end of the STATEMENT BY SENATOR O'CoNoR hardest to obtain. · year it may be possible to convince the Brit- The senate Subcommittee on Export Con- The small real area of disagreement as to ish authorities that this ban on shipments trols and Policies has been studying the ex- Which items in international trade may be of rubber which have contributed so vastly port controls and policies followed by the strategic should be no obstacle to agreement to the war potential of our common foe, agencies of the United states Government between countries which having just fought should be continued indefinitely. This we tn Western Germany and their relation to one costly war are now engaged in further must try to do . . similar activities of the west German and hostilities which threaten once more to in- It is true that in the period 1947 through other allied governments. It 1s evident that volve the whole world. We already know 1949 some of the trade with the east was any appraisal of the effectiveness of controls what mobilization of resources we are re- vital to the rehabilitation and supply of the on the export of strategic and critical ma- quiring now in our own defense effort and Western European community. There were terials from the United states to communist in the struggle against the aggressor nations many items which could not be supplied areas would be incomplete unless seen in in the Far East. It -is incomprehensible, from the United States if at all, as cheaply relation to the current activities of those then, why any western nation whose very and as quickly as from the east. The West now carried on in western Europe. future is jeopardized should sit back and ern European picture, however, has changed. The subcommittee has found a deplorable insist upon the shipment of goods to the The trade balance no longer favors the east. - condition existing with regard to export east on the theory that the quantity shipped Although Western European countries· still controls and ·policies . in Western Germany. ts not strategic. rely on eastern sources for many supplies, As important ·as Western Germany· is in Defense and security interests cannot be nowhere ts there now the former urgency to east-west trade, it is evident that a study of 11mited to the lowest common denominator obtain them from that market. Nor is the allied and west German controls and poll- of national self-interest, nor can it be geared exchange in terms of hard goods or essen cies in that country covers only one part to the progress made by the least cooperative tials in favor of the western countries. of the whole picture of east-west trade, and least willing country in the community: . Western Europeans face a Communist trade which also involves other countries with of western nations in llmittng exports to the ? bloc whose very motive ts to pl a~- one coun whom we have a common security interest~ east of restricted material. And yet, what • try against another to drain from the west Formal and informal avowals of that com- is the record of international cooperation in those goods wit h which a war potential of mon interest have been expressed by par-...... _ this very important context of western de- ...... , frightening proportions is being built. 5198 CONGRESSIONi\L RECORD-S_ENATE MAY 10 It is time to face these facts squarely and them take action which will put a stop articles, including tool steel, electrical with the hard-headed realism which is re to this thing. · equipment, all kinds of construction quired to match the ruthless cunning of Mr. FERGUSON. Mr. President, will those who would use our very inactivity and equipment, and eve~ything else needed short-sighted disagreements for their profit the Senator from Maryland yield? to fight a war or to live in peace, every and our eventual destruction. The Western Mr. O'CONOR. I yield. thing needed to consolidate gai~s made World must adopt and effectively enforce a Mr. FERGUSON. I know that the in Eastern Europe. If . this material collective system of d~aling with the east hour is· late, but I ask the Senator could not have been furnished in .the way which will not only put trade on a quid pro whether or not it is true that, while the it was, Russia and her satellites might quo basis, but will assure that such trade will Congress has been endeavoring to ac have had to turn to other nations and take place only when a strategic advantage complish the result of stopping such change their tune and their allegiance. inures to the west. The United States mus~ trade not only between the United States provide leadership and receive cooperation Does the Senator agree with me that a from Western Europe in meeting the com and countries behind the iron curtain, large amount of the material which mon peril which is implicit in e_ast-west but also between other nations who are Communist China-of course, assisted trade, to the end that no soldier of the our allies and Communist countries, yet by Communist Russia, without a doubt- United States or of any other of the United the trade has been continuing and is is using to kill our boys in Korea was Nations serving in the cause of freedom will actually helping the Soviet and its satel.. furnished and paid for by the taxpayers die of a bullet inscribed in the west and lites in their war effort? Although we of America, who are the fathers of the shipped through the courtesy of confusion, have endeavored to enact legislation laxity, and irresolution. boys being killed? · prohibiting the traffic, we have not ac .. .Mr. O'CONOR. Of course, I am un Mr. O'CONOR. Mr. . President, it complished anything. Has not the time able to say that the identical material would be highly desirable for the Sen come when we must accomplish this which has been used in killing our sol ate to give backing to the assertions and result by mandatory legislation so far diers is traceable to a certain spot, but I observations which have been made this as our own country is concerned, and so think I can answer the Senator's ques afternoon. The Senator from Arizona far as aid to our allies·is concerned? . tion by saying that wholesale quantities has indicated his wholehearted approval Mr. O'CONOR. I think that is un of strategic useful war materials have of the amendment of the Senator from questionably true. I do not believe that gone froni this country since last Jun!;!, Nebraska [Mr. WHERRY], the Senator in any other way will it be effective in and from our allies up until very recent from Missouri [Mr. KEM], the Senator regard to our attempts to have our so ly: It has served to build up the indus from Nevada [Mr. MALONE], and the called allies join with us.· trial and military potential of the Com- Senator from Virginia [Mr. BYRD], who Mr. FERGUSON. The situation be munist countries. · have been consistently in favor of such comes really ridiculous when we trade Mr. MALONE. Mr. President, will the with our enemies. Does not the Sena a provision. . Senator further yi~ld? . I should like to make one comment tor feel that the time has come to act Mr. O'CONOR. I yield. with reference to a statement made this in this matter if we do not want to have the blood of our boys on our hands? Mr. MALONE. Is the Senator fa afternoon by the Senator from Nevada miliar with the fact that for the past [Mr. MALONE], which I appreciate, of Mr. O'CONOR. I agree entirely w~th the Senator. 4 years the State Department has con course, because he referred to the senior tinually allowed statements to leak, or Senator from Maryland. Today in the Mr. MALONE. Mr. President, will the has made them directly from the State House of Commons, as the Senator from Senator yield? Department and other departments, to Nevada has stated, it was asserted that Mr. O'CONOR. I yield to the Senator the .effect that in order to obtain man representatives of Great Britain have from Nevada. ganese and other strategic materials indicated their willingness to suspend Mr. MALONE. I should like to ask from Russia we must sell the kind of shipments from Hong Kong, but they at the distinguished Senator from Mary material which she needs and is unable tach to their willingness the condition land if he does not believe that it is a to manufacture? "for the remainder of the year," and disgraceful situation in the first place, Mr. O'CONOR. I cannot confirm the only in respect to certain categories of when it is necessary for the Congress statement. shipments. of the United States to enact a firm law Mr. MALONE. Does the Senator.re- We have found that since last June, to keep our Cabinet officers from assist member the press dispatches? · or since the outbreak of hostilities in ing our enemies, with whom we are now Mr. O'CONOR. I know what the Sen Korea, there have been exported some at war, and to prevent our enemies from ator is referring to, and I recall the $357,000,000 worth of strategic supplies; receiving materials which are war ma statements which he placed in the from Great Britain, $11,200,000; from terials? Everything is war material RECORD. . Hong Kong, $288,400,000; from Malaya, when we are at war. Mr. MALONE. Mr. President, will the $56,000,000. Mr. O'CONOR. I can best answer the Senator further yield? · My only reason for emphasizing the Senator by saying that I think it is dis Mr. O'CONOR. I yield. point, and hoping that the Senate con graceful for anyone to give assistance to · Mr. MALONE~ We now have the ferees will stand firm, is that we have our enemies. Actually this country has spectacle ·of India asking for 2,000,000 recently received further disquieting in been giving aid and comfort to the en tons of wheat, or some other fantastic formation concerning the export policies emy, and our allies have been doing like amount. She has many things which having to do with east-west trade in wise, because they have drawn very false we could use, in the way of strategic and Europe. It shows a disgraceful situation. distinctions as to what is strategic. critical minerals and materials, such as The Senator from Arizona very accu Under that theory they ·have been allow hemp, manganese, and various other rately has stated that we placed controls ing very useful materials to go behind materials. She has placed an embargo on shipments, an all-out embargo, as of the iron curtain because they contend or a limit upon the amount of man last December. I regret to say that that there is some doubt as to what is ganese which can be shipped to thl.s prior to that time, when we were alleg strategic, when there can be no question country. . ing that shipments were going forward, about the nature of the goods which, The junior Senator from Nevada our own officials were making state until the past week, they have been knows from personal study that there is ments that no strategic supplies were sending. . more manganese in India than both being sent behind the iron curtain. Mr. MALONE. Mr. President; will the India and the United States could use The Senator from Arizona has con Senator further yield? in the next 50 years. There is probably firmed the fact that during the months Mr. ·o·coNOR. I yield. more manganese in South Africa than of September, October, and November, Mr. MALONE. The junior Senator South Africa and the United States when our boys were fighting in Korea, from Nevada stood on the floor of the could use in 50 years; and probably more these shipments were being made, al Senate on March 4 and 5, 1948, before in Brazil than both the United States though our own officials were denying - the initial Marshall plan ·was passed, and Brazil could use in that length of that that was so. I agree entirely with " and inserted in the RECORD a: firm trade time. Does it not add up to the fact what has been said by other Senators, ·~. treaty which had been made between ·_that what our State Department has and only hope that by a show of una.. " England and Russia. · The first item in : been trying to do is to c:nvince itself, nimity on this floor we can indicate to ·. the treaty was 1,100 locomotives. The . and then convince the country, that it the conferees that we intend to have list of materials comprised dozens of _ was· necessary·to send certain materials_. 1951 ·CONGRESSIONAL RECORD-SENATE 5199 to Russia and to other Communist coun fiscal year ending June 30, 1951, be or . on copper problems, the State Department tries in order to obtain the materials dered to be printed with the Senate also disclosed that this country has agreed which we needed? amendments numbered. to steps designed to increase copper produc tion in the South American country. Mr. O'CONOR. I am thankful to the The PRESIDENT pro tempore. With Chile, on the other hand, has agreed to Senator for his observation. out objection, it is so ordered. make more copper available for United States The PRESIDENT pro tempore. The SUSPENSION OF CERTAIN FEDERAL LAWS defense purposes, and to take steps to keep question is on agreeing to the amend . WITH RESPECT TO ATTORNEY EM- its copper out of the hands of countries in ment offered by the Senator from Mis PLOYED BY SENATE COMMITTEE ON the Soviet bloc. souri [Mr. KEM] for himself and other RULES AND ADMINISTRATION-MOTION There was a blackmailed threat of sell Senators. Without objection the amend TO RECONSIDER ing copper to other countries in the Eo ment is agreed to. viet bloc if we did not agree to the free Mr. WHERRY. Mr. President, was Mr. HAYDEN. Mr. President, I have conferred with the Senator from Michi trade on copper. there a vote on the amendment of the I read further: Sinator from Missouri? I could not gan [Mr. FERGUSON], who desires to take up on Monday the motion to reconsider American copper companies with interests hear. in Chile will expand their .production with It Senate Joint Resolution 70 to suspend The PRESIDENT pro tempore. was out financi~l assistance from the United agreed to without objection. the application of certain Federal laws States Government but with the promise of Mr. FERGUSON. Mr. President, the with respect to an attorney employed by priority assistance for equipment. the Senate Committee on Rules and Ad Senator from Michigan has on the desk THE ADMINISTRATION DOES NOT MAKE SENSE an amendment to the bill in relation to ministration. - No action should be taken the salaries and expenses of the mi on it today, but in order that it may be ~r. President, the junior Senator from nority and majority policy committees. the unfinished business, so that it will Nevada calls that indecent haste. The At this time he is not going to off er the be taken up on Monday, I move that the State Department should at least have amendment. The period remaining for Senate now proceed to consider the mo waited a dec::mt length of time until we the use of this fund is only about a tion ,to reconsider the vote by which Sen-· could forget the reasons for suspending month and a half. It would probably ate Joint Resoltition 70 was passed. the duty on copper. This latest action be impossible at this late date, to obtain The PRESIDENT pro tern.pore. The leaves the independent producers of such research personnel as would be re question is on the motion of the Senator copper in the United States with a con .quired. The Senator from Michigan is from Arizona [Mr. HAYDEN] to proceed trolled copper price of 24 cents, with the withholding his amendment because of to the motion to reconsider. 2 cent tariff reimposed when the pric3 · goes below 24 cents. th~ persuasion of the Senator from Lou The motion was agreed to. isiana [Mr. ELLENDER], who is the chair At the Geneva Conference, that gave EXTENSION OF CERTAIN BENEFITS TO · birth to the.GATT-General Agreement man of the subcommittee on legisla PERSONS WHO SERVED IN THE ARMED tive salaries and legislative aides. I FORCES . on Tariffs and Trade-th-e State Depart know that he intends to make a thor ment reduced the import tax on copper · Mr. , McFARLAND. Mr. President, I from 4 cents per pound to 2 cents per ough study and examination of the ask unanimous consent that the presid- · entire program, and that this is a mat pound. A little later it then persuaded ter which can be considered by the com ing officer· be authorized to sign .Senate the Congress to supend even that duty, mittee in connection with the re.gular Joint Resolution 72, to provide certaiil under various kinds of excuses. The 1952 appropriation bill. · benefits for certain persons who shall question of the tax on copper belonged Mr. ELLENDER. Mr. President, will have served in the Armed Forces of the in the realm of foreign policy, and our U~ited States on and after June 27, relations with Chile would be injured. the Senator yield? 1950, during the recess of the Senate. Mr. FERGUSON. I yield. Lately the excuse was that it would Mr. ELLENDER. I intend to go into Mr. WHERRY. Mr. President, is that bring more copper into this country. the joint resolution which was passed Now, on top of all that, the State D3- that subject very thoroughly. by the Senate this afternoon? Mi:. FERGUSON. The Senator from partment agrees to a higher price on Mr. McFARLAND. Yes. copper from Chile. M!chig~n will not offer the amendment, although the subject is very important. The PRE£IDENT pro tempore. Is · As I have said before, Mr. President, there objection?· The Chair hears none, in this connection it does not hurt the The policy committees perform a very and it is so ordered. important and valuable function in the companies that own the properties in Senate. INCREASE IN PRICE OF CHILEAN COPPER . South America, in Chile, but it is a little The PRESIDENT pro tempore. The embarrassing to the small copper pro Mr. MALONE. Mr. President, the ducer, or the prospector, or investor who bill is open to further amendment. If ·junior Senator from Nevada would like there be no further amendment to be has some idea of finding or developing a to call to the attention of the Senate the new copper deposit, because private proposed, the question is on the engross action of the State Department in agree ment of the amendments and the third money will not be invested in his enter ing, with what he would call indecent prise. reading of the bill. haste, to a 3-cent increase in the price of The amendments were ordered to be copper from Chile, which brings the price Mr. President, in the House Report No. engrossed, and the bill to be read a third of Chilean copper to 28 cents per pound. 285 to accompany House bill 3336, made time. This action was taken after the passage by the Committee on Ways and Means of The bill was read the third time. of the Free Trade Act on copper. The the Ho:use, the bill dealing with the cop The PRESIDENT pro tempore. The proponents of the bill to suspend the per import-tax suspension, we find the bill having been read the third time, the import taxes on copper agreed that its following on page 2: · question is, Shall the bill pass? passage was necessary to enable the Despite the unanimous assurances of all The bill