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1963 CONG-RESSIONAL RECORD- HOUSE. 2455 Gale D. Taylor, A03123847. James A. Gabel, A03129758. R ichardS. Ueland, Jr., A03128917. Thomas L. Wolfie, A03114058. Robert J . Goldman, A03128254. Rene M. Vick~alr, Jr., A03128287. Joseph L. Vojir, A03128218. To be first lieutenants, USAF (Nurse) Charles E. Gordon II, A03122069. Gerald D. Gordon, A03129662. Fredrick A. Wagner, A03129293. Carol J . Bennett, AN3110392. Peter A. Gouette, A03128939. William J. Weiland, A03129284. · William M. Cooper, AN31i3008. Larry J. Graham, A03134478. David R. Welsh, A03128837. Mildred J. Cox, .AN3088476 •. Howard W. Green, A03128548. Bruce M. Westbrook, A03128515. Philip DiBlasi, AN3075900 . . Thomas M. Hammons, A03128943. Harold E. Wigginton, A03129608. Darlene M. Dodd, AN3090185. James H . Handy, A03128474. J. Leon Wilson, A03128217. Betty J. Harper, ·AN3078156·. · David C. Harvey, A03134532. Thomas W. Wing, A03134436. Marlene J. Henson, AN3111629. Andrew L. Higgins, A03128747. Warren W. Wolff, A03129039. Dorothy M. Knight, A~3112097. Ronald H. Hilbert, A03128478. Thomas W. Young, A03129165. Barbara R. Lynch, AN3078259. Robert C. Hogrefe, A03129774. Distinguished Graduates, Air Force Reserve Dolores A. Malota, AN902288. JoAnn Holmes, AL3128731. omce~s· Training Corps Sarah J. McCann, AN3U0384. Robert L. Hosler, A03128317. Todd Bolen, A03130478. Pete Navarro, AN3044557. Richard H. Houtary, A03129292. Clarideth J. Plott, AN3091919. Robert E. Gallo, A03131054. Gary R. Jackson, A03128629. Gary K. Pritchard, A03133131. Paul C. Shalenko, AN902866. Robert M. Jacobs, A03128133. Willlam D. Sharadin, AN3112147. Darrel D. Thomssen, A03131193. Robert B. Jones, A03129496. Katherine C. Snuggs, AN3089079. Robert F. Kieser, A03134534. II Joseph D. Witmer, AN3076820. •• ... George S. King, A03129501. . Faye Woodruff, AN2244290. Dorothy N., Zablocki, AN3045792;· James A. Kirsch, A03129311. Edward E. Klehr, A03128800. HOUSE OF REPRESENTATIVES To be second· lieutenants, USAF (Medical Elwood N. Laugen, A03129789. Service) James A. Lee, A03129393. MoNDAY, FEBRUARY 18, 1963 Charles J. Archibald, A03112103. Samuel R. Lehman, A03129790. Conrad L. Bush, A03113038. David E. Loberg, A03128488. . The House met at 12 o'clock noon. Raymond D. Christian, A03118995. Albert W. Long, Jr., A03129794. The Chaplain, Rev. Bernard Braskamp, John E. Dexter, A03123611. Peter R. H. Luckenbach, A03128188. D.D., offered the following prayer: · James D. Edwards, A03111977. John G. Magee, Jr., A03129318. James V. Gordon, A03112836. Dean L. Mather, A03129800. I John 4: 21: This commandment have Karl L. Kilpatrick, A03114765. Robert C. McClain, A03129696. we trom Him, that he who loveth God Richard G. Micka, A03104784. . Jack E. McCormick, A03129513. must love his brother also . Robert J. Perlstein,·A03112468. Nancy J . McDearman,.AL3128227. Almighty and ever-blessed God, grant Clarence J. Schumaker, Jr., A03111871. Patrick H. McHargue, A03128700. that in this Brotherhood Week we may Harry J. Simpson, A03112185. Hugh McPheeters, Jr., A03129801. have a clear vision of the high and help­ The following persons for appointment in Michael Monaco, A03129255. ful things which we may do together for the Regular Air Force, in the grades. in­ Donald D. Monkres, A03129803. the health and happiness of all mankind. dicated, under the prqvi.sions of section 8284, James R . .Murphy, A03129808. Ronald J. Nelson, A03128410. . Make us humbly grateful for the many title 10, United Stat~s Code, with dates of Raymond P. O'Brien, A03129332. opportunities that are continually rank to be determined by the Seeretary of ·coming to us to speak a word of good the Air Force: Richard W. Ogden, A03134421. To be major Norman R. Otters, A03128897. cheer and to extend a hand of helpfulness Galen M. Ozawa, A03128123. to the needy members of the human Wilfred V. Gabel, A02074202. John K. Paige, A03128125. family. To be captain DonaldS. Palmer, A03128962. May we realize more fully that the Frank C. Kn~a-ck, A03036116. Ronald D. Parham, A03128577. Richard V. Parish, A03128272'. question "Am I my brother's keeper?", To be fi.rst lie"!-tenant Robert E. Patterson, A03128338. must be answered conclusively in the Lynn R. Wolfe, A03070007. Richard A. Peacock, A03129i47. affirmative. To be. second lieutenants Robert D. Penman, A03129149. Enable us to go in and out among our Otto W. Peucker, A03129150. Distinguished Aviation Cadet Graduates fellow men as the heralds of a new day Richard L. Picard, A03134505. when men and nations shall live as Gerald serina, A03122835. Louis A. Platterborze, A03129479. Richard E. Young, A03122&19. brothers on the high ~evels of peace and Thomas J. Pollard, A03129336. good will. Distinguished Officer Candidate Graduates Charles F. Power, A03128416. George E. Powers, A03128582. Help us to practice the Golden Rule Peter S. Coe, A03121663. and inspire us with those finer thoughts William E. Phillips, Jr., A03121560. Donald F. Prince, A03128705. Jeannette Pulver, AL3134399. and feelings that are the progenitors of Klaus H. Stuecklen, A03118366. c. Tom V. Purser, A03129811. achievement in the building of a nobler Distinguished Officer Training School Byron G. Quann, A03128271. civilization. Graduates David P. Reimuller, A03128822. Hear us in Christ's name. Amen. Leroy P. Ache, A03128520. John B. Rich II, A03129154. Willlam E. Adams, A03129432. Lewis M. Roome, A03129815. Charles H. Bailey, A0312892S. John P. Rooney, Jr., A03129816. THE JOURNAL Joseph P. Bigelow, A03128368. Thomas E. Rowley, A03129527. The Journal of the proceedings of Frank J. Blattner, Jr.~ A03129858. Alan S. Rutherford, A03129819. Robert A. Bleau, A03128853. Edward J. Ryan, Jr., A03128424. Thursday, February 14, 1963, was read David C. Bray, A03128297. Robert J. Sanders, A03129842. and approved. Michael H. Catherall, A03129866. Charles A. Savage, Jr., A03129087. Ford F. Challls, A03122236. JackS. Scheimer, A03129088. READING OF WASHINGTON'S Herman E. Chelette, Jr., A03129642. Arnold L. Schwalb, A03128346. Wilbur R. Clopton, A03129451. Edward M. Seghers, Jr., A03129822. FAREWELL ADDRESS James M. Connolly, A03128243. Douglas E. Shamberger, A03128506. Mr. ALBERT. Mr. Speaker, I ask Dale D. Conrad, A03129365. Raymond A. Shapek, A03129157. unanimous consent that on Thursday, Richard C. Corbin, A03129115. Walter R. Sharpe, Jr., A0318205. February 21, 1963, Washington's Fare­ Fred E. Croshaw, A0312B130. Howard F. Shenk, A03128665. James A. Curtis, Jr., A03129591. Bruce N. Smith, A03129340. well Address may be read by a Member Jerome B. Dague, A03128857. Robert M . Smith, A03128970. to be designated by the Speaker. Robert V. Daigle, A03129458. James Souhrada, A03129342. The SPEAKER. Is there objection to Marshall E. Daniel, Jr., A03128246. Parker D. Sproul, A03129735. the request of the gentleman from Okla­ Ronald L. DeCosmo, A03128301. Warren L. Steininger, Jr., A03128972. homa? Richard A. Deinhammer, A03129595. William H. Strehle, Jr., A03128586. There was no objection. Theodore M. Duigon, Jr.,·A03128163. Edward L. Sutter, A03129739. Richard R. Eiles, A03128861. Harold K. Switzer II, A03134515. The SPEAKER. Pursuant to the spe­ Robert J. Elliott, A03129598. Anthony J. Terlep, Jr., ,A03128717. cial order agreed to today, the Chair Warren G. Elliott, A031298S7. Donald L. Thompson, A03129832. designates the gentleman from Utah Francis L. Eubank, jr., A03l29373. Robert T. Thompson, Jr., A03128437. [Mr. BuRTON] to read Washington's La wrence J: Faessler, A03l28309. Victor R. Trouy, A03129348. Farewell Address immediately following William c. Fa~ey, A031284_66. . William M. Turner, A03128350. the approval of the Journal on February Edmund H. Fording, Jr., A03129657. Ralph M. Tyson, A031282S6. 21, 1963. 2456 CONGRESSIONAL RECORD- HOUSE Februa.ry 18 COMMI'ITEE ON BANKING AND the Soviet seizure of power in Lithuania. . for my part, I pledge my every effort to CURRENCY It has never accepted the attempted hasten the· day when Castro will be de­ liquidation of the Republic. At the time feated and a truly free Cuba restored. Mr. ALBERT. Mr. Speaker, I ask when in their hearts there is a silent unanimous consent that the Committee celebration of their 1918 Independence on Banking and CUrrency may be per­ Day, it is proper for us to wish the people COMMUNIST THREATS TO THE mitted to sit during general debate to­ of Lithuania well, to assure them that SECURITY OF THIS HEMISPHERE day and also on February 19, 25, and they are not forgotten. Mr. MATTHEWS.. Mr. Speaker, I ask 26. unanimous consent to extend my remarks The SPEAKER. Is there objection to at this point in the RECORD. the request ·of the gentleman from Okla­ UNITED NATIONS FUNDS TO CUBA The SPEAKER. Is there objection homa? There was no objection. Mr. FUQUA. Mr. Speaker, I ask to the request of the gentleman from unanimous consent to address the House Florida? for 1 minute. There was no objection. Mr. PRICE. Mr. Speaker, I ask unan­ The SPEAKER. Is there objection Mr. MATTHEWS. Mr. Speaker, to­ imous consent to address the House for to the request of the gentleman from day the House Subcommittee on Inter­ lminute. Florida? American Mairs opens its hearings into The SPEAKER. Is there objection There was no objection. the vital matter of Communist threats to the request of the gentleman from Mr. FUQUA. Mr. Speaker, one of the to the security of this hemisphere. illinois? continuing international problems which In this regard, I wish to call the at­ There was no objection. faces the Congress and all of the Ameri­ tention of the House to an article by Mr. can people is that of Cuba. Here we find James Free, of the Washington Bureau LITHUANIAN INDEPENDENCE DAY a Communist government only 90 miles of the Birmingham, Ala., News. Mr. PRICE. Mr. Speaker, one of the off the coast of Florida, actively sup­ Mr. Free points out the qualifications somber monuments of the Hitler-Stalin ported by troops of the Soviet Union. and extensive experience of the House era is the continued occupation of an­ It seems to me that this Nation can­ Subcommittee on Inter-American Af­ cient free nations by foreign systems. not rest as long as Castro and his kind fairs to conduct these investigations in The Lithuanian Republic is still oc­ remain in power in our hemisphere. the interests of our Nation and our hem­ cupied and controlled by the Soviet The subversive activities of his govern­ isphere. Union. It is the victim of a period in ment to the other Latin American na­ Mr. Free's article follows: human history when small nations were tions poses more of a threat than that SELDEN AND STENNIS CALLED GOOD BETS To exchanged like pawns in the savage of the weapons and Soviet troops that GET FACTS ON CUBA confrontation between the Nazi and remain in Cuba. (By James Free) Soviet warlords. I supported the President's firm action WASHINGTON, February 12.--Strictly down­ The Soviet army marched into Lith­ in having the missiles and missile bases the-middle probes of the Russian buildup 1n uania in 1939 after the Hitler-Stalin Pact removed from CUba, and I believe this Cuba can be expected from both subcom­ had given the Nazi war machine a free Nation must have just as firm a policy mittees of Congress that will buckle down hand in Western Europe and ffitler paid in dealing with this Communist dictator­ to the task after the lull this week for Lin­ ship to insure its eventual overthrow. coln's birthday. the price by agreeing that Stalin could The two chairmen, Senator JoHN c. STEN­ occupy the Baltic Republics. As a Member of the Congress, an ac­ NIS, Democrat of Mississippi, and Represent­ The fighting of the war that followed tion by the United Nations last week ative .ARMISTKAD SELDEN, Democrat of Ala­ is long since ended, but the Soviet oc­ shocked me. We find that the United bama, are conservative Southerners with no cupation of Lithuania continues. The Nations Special Fund has approved a 6- close administration ties. people of Lithuania deserve something month test plan for CUban crop diver­ While they will not hesitate to bring out better. They deserve the moral support sification. I wrote U.N. Ambassador facts embarrassing to the Kennedy adminis­ that we can give them by recognizing Stevenson a vigorous denunciation of this tration, neither will they have any com­ act which I consider an insult to the punction about making a report that might their contributions to freedom and their pull the rug out from under Republican honorable history. United States. charges against the administration. In this country, tens of thousands of The program calls for a reported $100,- Moreover, betV?een the two investigating Americans of Lithuanian descent cele­ 000 to be spent by the U.N. in this test groups, the American people should be able brated this month the anniversary of program, and if successful, to be ex­ to get a comprehenisve picture of Russian a better day-the day in 1918, · Febru­ tended for 5 years with the U.N. share strength in Cuba and the extent of the ary 16, when the people of their father­ of the eventual cost to be $1.2 mUlion. threat to this hemisphere. The remarks of Paul G. Hoffman, STENNIS' Preparedness Subcommittee will land proclaimed their independence of center its attention on mll1tary aspects, with both old imperial Germany and revolu­ American manager director of the Fund, subversion and related dangers being sec­ tionary Russia. that no American funds would be used ondary but significant matters of concern. They set up a republic. They orga­ in this project is ridiculous on the face SELDEN's Inter-American Affairs Subcom­ nized their society- as a free people. of it. We have, in this Nation, attempt­ mittee wlll stress the extent of the Com­ They asserted their right to live free of ed to keep the United Nations a forum munist subversion threat from Cuba to foreign aggression from whatever source. for world discussion, paying a far heav­ Latin America on a country-by-country ba­ ier than proportionable share of the sis. Comparative milltary power will be con­ In the brief decade Lithuania had, it sidered only as it pertains to the ab111ty established its place in the forefront of United Nations operating expenses, and of various countries to resist subversion. progressive democratic societies. It then find this organization giving aid·to Both STENNIS and SELDEN will inquire into pushed an educational program that cut the Communist menace only 90 miles off present long-range U.S. policy regarding the rate of illiteracy from two-thirds of our shore. Soviet military bases and forces in CUba the people to less than 15 percent. The I called on Ambassador Stevenson for or elsewhere in the Americas. Here, again, an explanation, pointing out that we emphasis of the Senate subcommittee will Lithuanian Republic adopted the first be on defense policy, while concern of the land-reform law of modem Europe. find our country in the position of giving House foreign affairs group will be on diplo­ All of this was built upon a cultural funds on one hand, to be used by our matic policy. and national tradition that goes back to swom and mortal enemy on the other. Beyond question, there wlll be some du­ the 13th century. It was created by peo­ I regard this action of the U.N. an plication in the information brought out by ple who welcomed the chance to spend insult to the United States and have the two investigating subcommittees. But their energies in proving their right to vigorously expressed my indignation. this should help assure a balanced perspec­ an independent place in the world. To my mind the problem of CUba is tive and provide more varied sources of the No. 1 foreign policy problem which information. The land of the Lithuanians is occu­ STENNIS' handling of hot past probes­ pied by the Soviets, but we have a right faces this Nation. It cannot be swept the muzzling-the-military hearings last year, to doubt that the spirit of the people is tinder a rug. It cannot be hidden. Only for example--has won him a reputation as conquered. strong and forceful leadership will a steady, Impartial, and cool man with a The U.S. Government has quite prop­ enable us to blot out this menace to our gavel. His early years as a circuit judge erly declined to recognize the legality of Nation and the free world's security, and show through clearly. 1963 · CONGRESSIONAL RECORD- HOUSE 2457 SELDEif has yet to prove his mettle in arid one eye on: the rearview mirror"­ ourselves-God ·forbid-at the point of highly publicized' hearings. But House col­ ret · me identify the eloquent speaker no return: leagues point to· his early and largely ignored whose words opened and have been THE FALLACY OF TOO MUCH PLANNING warnings on CUba, 1lrst to the Bisenhower administration and later to the Kennedy quoted in this statement of mine. It (By Henry Bazlltt) administration. They note his leadership in was Senator John Fitzgerald Kennedy, "The welfare state is the great fiction prodding the Organization · of American J;'Unning for the highest omce in the land, where everybody tries to live at the expense Statea into taking action against Castroism. the Presidency. of everybody else." Neither chairman is· given to sensation­ Since Senator Kennedy succeeded in The idea of Government economic plan­ alism. Both have been dissatisfied with the his ardent desire to become President, ning appeals to many intellectuals and poli­ Kennedy administration tendency to rate the the Congress has received well over 60 ticians today. What they forget is that each Soviet buildup mainly in terms of "offensive" of us, in his private capacity, is constantly or "defensive" weapons. messages-not one of which failed to re­ planning ahead-regarding his job, his busi­ SELDEN and STENNIS, as well, have had quest, or was accompanied by, proposed ness, his leisure, his spending, his saving for fully as much information about Russian legislation which would result in Wash­ a home or a car or the education of his chil­ troops and weapons in Cuba as have had the ington doing for the people what they dren. These millions of individual plans Republicans who publicly charged the ad­ should do for themselves, through local are coordinated through the marvelous ministration with sugar-coating the story. and private effort, with the exception, mechanism of competition and the free Neither chairman has remained silent on of course, of provision for our national market. Cuba, but any comment has been restrained. defense. The question then is never whether there Back on December 18, for example, SELDEN should be planning or not, but who should told this reporter there were "at least 15,000" It would be easy-and the temptation plan for whom? To put it another way, the Soviet troops in Cuba. This was some time is great-to protect some of the illusions question is whether each of us should be before the administration admitted this cherished by a portion of the American free to make his own plans, or whether all of officially. people, and lay at the door of the much­ us should be forced to work or consume SELDEN's subcommittee will conduct 3 berated Presidential advisers, or even according to some master plan drawn up for days of hearings starting February 18. Two brother Bobby, the blame for many of us by some supposed group of supermen. comparable periods of testimony will be these requests for legislation. However, Whlle most plans being proposed today scheduled later. are plans for accelerating economic growth, the facts are that these messages to the there are also, under the influence of J. K. STENNIS' subcommittee so far has heard Congress came directly from the Presi­ only one witness: John A McCone, Director Galbraith, plans to control our spending. of the Central Intelligence Agency, in closed dent, were signed by him with his full According to the Galbraith thesis, most con­ session. But other witnesses will testify knowledge of their content and implica­ sumers do not know how to spend the in­ starting probably week after next. And sev­ tion, and he further has aggressively comes they have earned. They have eral weeks of additional hearings are in and consistently pressed for enactment atrocious taste, and they waste their money prospect. of a major portion of these proposals. on trivialities and junk. The natural conclusion is that the con­ All these legislative proposals were sumers should be supplied not with what THE FALLACY OF TOO MUCH presumably geared to the President's they themselves want, but with what Gov­ repeatedly expressed wish to "move ernment bureaucrats, full of wisdom, think PLANNING America ahead." And we all know now is good for them. And the way to do this Mr. SHORT. Mr. Speaker, I ask that without the Congress enacting even is to tax away from people all the income unanimous consent to address the House a smidgin of these proposals, we have · they have been earning over that required for 1 minute, to revise and extend my re­ indeed moved ahead-rapidly and in­ to meet their bare necessities and turn it marks, and to include extraneous matter. over to the bureaucrats to be spent in ways exorably-to the fantastic planned budg­ they think would really do people the most The SPEAKER. Is there objection et expenditures of $98,802 million for good. to the request of the gentleman from 1964-to the increase by 135,510 in Fed­ The goods and services for which people North Dakota? eral personnel since the change in ad­ voluntarily spend their own money make up, There was ·no objection. ministration in 1961-to the planned in the Galbraithian vocabularly, the "pri­ Mr. SHORT. Mr. Speaker, some time deficit of $11,902 million for 1964-and vate sector" of the economy, while the goods back a large audience heard an acknowl­ thence to an estimated national debt of and services supplied to them by the Gov­ edged eloquent speaker say: $3i5,604 million which will extend much ernment, out of the income seized from them in taxes, make up the "public sector." This I do not believe that Washington should further than 1964. And all this with­ is a neat semantic triumph, for the word do for the people what they can do for them­ out a determination and inclusion of "private" is meant to suggest the selfish and selves through local and private effort. There the actual total cost of additional Fed­ exclusive, while the word "public" is meant is no magic attached to tax dollars that have eral aid to education, additional Federal to suggest the democratic, the shared, the been to Washington and back. medical care _for the aged, additional public spirited. These words have a ring of truth. They Federal assistance to urban areas, or Actually, what Galbraith calls the "pri­ are a simple statement of fact, and are even a successful trip to the moon. vate sector" of the economy is in fac.t the We have also moved ahead-rapidly voluntary sector; and what he calls the quoted from a speech made before the "public sector" is in fact the coercive sec­ Associated Business Publications Con­ and inexorably-to the final culmination and humiliation of a Communist regime tor. And as this sector grows at the expense ference, held at the Biltmore Hotel in of the voluntary sector, we come to the es­ New York City, on October 12, 1960. only 90 miles from our southeastern sence of the welfare state. They were made in connection with a Atlantic coast. Not only is this Com­ In this state nobody pays for the educa­ discussion of American economic policy, munist government completely equipped tion of his own children, but everybody pays and underscored a plea for a strong by the Soviet Union with arms and for the education of everybody else's chil­ economy in our country, thus "not only troops, supposedly for self-defense. but dren. Nobody pays his own medical bills, it likewise possesses the additional but everybody pays everybody else's medical to sustain our defenses, but also to bills. Nobody helps his own old parents, demonstrate to other nations, particular­ bonus of our diplomatic guarantee against invasion. This is now crowned but everybody helps everybody else's old par­ ly those wavering between our system ents. Nobody provides for the contingency and the Communists-that the way of by the promise of United Nations aid to of his own unemployment, his own sickness, freedom is the way to strength and secu­ agriculture for this Communist nation­ his own old age, but everybody provides for rity-that their future lies with us and indirectly financed by our own funds. the contingency of the unemployment, sick­ not with the Soviet Union." Mr. Speaker, I would like permission ness or old age of everybody else. The wel­ That portion of the speech I have just to revise and extend my remarks and fare state, as the French political economist include with them an article written by Claude Frederic Bastiat put it with uncanny quoted ends with this statement: Henry Hazlitt, entitled "The Fallacy of clairvoyance more than a century ago, is the That is the basic issue of 1960-and that is Too Much Planning," which appeared great fiction by which everybody tries to live why each candidate must make clear his in the Reader's Digest of February 1963 at the expense of everybody else. views on ~conomic policy. as a condensed version of the original This is not only a fiction; it is bound to Now, lest some who read this imme­ be a failure. This is sure to be the out­ article in Newsweek of September 24, come whenever effort is separated from re­ diately assume the speaker was one of 1962. This article expresses some well­ ward. When people who can earn more than those labeled as "reactionary"--of whom known truths, which we as a Nation the average have the "surplus" seized from it has been said "he has one eye ahead shoul~ be willing to face, lest we find 1ib.em in taxes, and when people who earn 2458 CONGRESSIONAL RECORD·- HOUSE February 1-8 less than the average have the deficiency and fair appraisal of a serious problem jalting introduction to what all this means turned over to them in handouts, the pro-· which sorely needs congressional atten­ in practical terms when a New York City duction of everybody must decline; for the tion. industrial-consultant named David T. Klein­ energetic and able lose their incentive to man called at his Washington office one•day produce more than · the average, and the For this reason, Mr. Speaker, I ask last spring. Dr. ;Kleinman represented a slothful and unskilled lose their incentive unanimous consent to insert the Fortune client . who had been planning to bulld a to improve their condition. article in the RECORD at this point and tape factory in Paterson, N.J. With him he commend it' to the reading of every had a letter received from an REA co-op in Member of Congress: · Pennsylvania. Said the letter: If the Klein­ THERE'S NO STOPPING REA-OR IS THERE's No STOPPING THE REA-OR Is THERE? man client would agree to build his factory THERE? in the co-op's territory, contract to buy its (By Hubert Kay) power, and put up $50,000 of its own, the Mr. TEAGUE of California. Mr. . There had never been anything like it on co-op would lend him $450,000 for the _pur­ Speaker, I ask unanimous consent to B:d­ the lonely ranch in the red sandhill country chase of his factory's electrical machinery dress the House for 1 minute, to revise of southeastern New Mexico, and almost and equipment. To the Senator from New and extend my remarks, and to include certainly there would never be anything like Jersey, a liberal Republican not easlly un­ it again. For all the 21 years of their mar­ extraneous matter. nerved by governmental forays into business ried life, John and Margaret McGuffin had areas, this attempt to lure a prospective The SPEAKER. Is there objection lived unnoticed and cut off from the world new industry from his State seemed a most to the request of the gentleman from without" electricity or telephone, 3Y:z miles curious diversion of the subsidized rural California? from their nearest neighbor and more than . light. There was no objection. 30 miles from the nearest town, Tatum, in THmTY-FlVE-YEAR LOANS Lea County. Then, on the morning of last Mr. TEAGUE of California. Mr. Senator CASE promptly joined a growing July 2, strange and wonderful things began group of congressional members who have Speaker, last year the Agriculture Com­ to happen. mittee held extensive hearings on several decided to do battle with the image of the A car drove up and out stepped the head "light bringer" in order to come to grips with aspects of the farm program-including of the U.S. Department of Agriculture's Rural the realities. It is a powerful image. When rural electrification. The resulting com­ Electrification Administration, Norman REA was founded in ,.935, nearly 9 out of 10 mittee report on the farm bill-House Clapp, a big man with several hundred mil­ American farms still lacked the electricity Report No. 1691-pointed out that: lion dollars a year to lend, come all the way that had become commonplace in the Na­ from Washington. Up from Lovington, tion's towns and cities. Thanks largely to Testimony reyealed a growing public con­ N.Mex., drove the manager of Lea County's cern over the failure of the REA to disclose REA-to the systems it financed and to the rural electric and rural telephone coopera­ stimulus they gave to rural expansion by in­ information on various phases of its tives, which with money borrowed from REA operations. vestor-owned electric companies-some 98 had just built 3 Y:z miles of poles and lines percent of the Nation's farms are now elec­ The report went on to say: to the McGuffin ranchhouse. A new dial trified. Even power company executives con­ telephone rang for the first time, and Mr. cede that in fulfilling its original purpose The public is entitled to know how public McGuffin was summoned to talk with Secre­ funds are being used. REA performed a national service. Count­ tary of Agriculture Orville Freeman, calling less rural people remember gratefully the from Washington. After a little speech by coming of REA lines to their !arms, not All of us here in this Chamber were Administrator Clapp and a ceremony of turn­ reminded also that: merely bringing them electric current but ing out the kerosene lamps, electric current bringing them into. the main current of Congress, of course, is charged with the came surging over the new line to lighten American life. Millions of Americans have responsib111ty of assuring that public funds the lives of the McGuffiins and make their a vested interest in the continued existence are handled in accordance with the original ranch the 5 millionth consumer to receive Qf the 991 independent, locally run ~oopera­ intent of the Rural Electrification Act. REA-financed electric service. tives, and the scattering of other electric In this carefully staged but still heart­ systems, that REA has financed with more Mr. Speaker, the public concern about warming little drama, REA once again pre­ the extent to which REA has gone be­ than $4 billion of Federal funds and 1s con­ sented itself in its long-admired role as the tinuing to finance at a rate of $400 million yond that original intent of Congress is great light bringer to rural America. But a year. apparently continuing unabated. As a behind this image a new reality has devel­ The political momentum developed by all case in point, I call attention to a very oped, troubling the agency's congressional this has long kept REA a congreEsional sacred interesting and revealing article in the friends and alarming the U.S. electric-utility cow. Yet House and Senate agricultural industry. The co-ops, financed by REA, have committees and agricultural appropriations current issue of Fortune magazine en­ grown into a nationwide, $4 billion· electric titled, "There's No Stopping REA-Or Is group increasingly engaged in aggressive, subcommittees, where legislative limitations There?" This article documents the on REA's powers and purse must begin, were Government-subsidized competition with in­ openly critical of some of the Agency's prac­ fact that despite assurances to the con­ vestor-owned electric companies. Five out tices last year and seem ready to take some trary given by one of the fathers of the of six of the co-ops' new member customers action in this Eession. REA Act-the late Sam Rayburn-REA­ in recent years have been industrial, com­ One choice is beyond- the power of Con­ financed cooperatives are now increas­ mercial, and nonfarm residential con~umers. The co-ops are not about to take over the gress to make. It cannot, by inaction, main­ ingly engaged in aggressive competition industry. On their 1Y:z million miles of REA­ tain the status quo. REA partisans stress with investor-owned electric power com­ financed lines they still average only about that its program is self-liquidating. The panies and are on "an empire-bl:lild~ng 3.3 consumers per mile, one-tenth the num­ excellent REA repayment record indicates kick that is invading urban terntones, ber for major power companies. The trend that this 1s true-as far as it goes. But from farm to city has left the co-ops with co-op loads (i.e., consumer demands) are wooing industrial customers, and threat­ doubling every 5 to 10 years. Heavter loads ening to consolidate into a gigantic na­ some 500,000 abandoned services (i.e., lines require a costly process of physical ''heavying tional electric system, federally subsi­ built to serve individual residences) repre­ senting an investment of many millions on up"-the installation of heavier lines and dized and tax free." which they receive no return. But these poles-and a far costlier increase in gen­ The writer of this article asks a rhe­ predictable handicaps are more than offset erating capacity. Few co-ops can finance torical question which I think each of us such capital investment out of earnings. by recent co-op developments, based on long­ Hence a co-op that gets a $20 million gen­ should ask ourselves. He asks, "Is there standing advantages. Once almost wholly erating loan today will almost certainly be a way that REA co-ops can cut the silver dependent on purchased power, the co-ops back within 10 years for another $20 million are surging toward independence with more cord of dependence on go,,ernmental pa­ loan, and in 20 years for a loan of $40 million. and more power plants of their own. They ternalism and become in truth the 'inde­ Since the co-ops have 35 years to repay their pendent business enterprises' that REA are exempt from Federal taxation and from loans, they will-except as they pay for ex­ much State and local taxation. They are pansion with their own money-be borrow­ now calls them?" The author suggests financed at 2 percent interest with funds for one possible method of accomplishing ing from the Government three to four times which the Government pays about 4 percent. faster than they repay. Until Congress this worthwhile goal, but I am sure there They share first call on the cheap hydroelec­ are many others that deserve our atten­ tric power generated at Federal dams. They takes some action, the co-ops' Government­ subsidized competition with private enter­ tion. are now selling more than half their power to nonfarm buyers. Having clearly outrun prise, and the cost of their subsidies to tax­ However,' because Congress is charged payers, will continue to mount in near with the responsibility of assuring that the intentions of REA's congressional found­ ers, they constitute a growing threat both to arithmetic progression. public funds are handled in accordance American principles of private enterprise and The harsh battle between partisans of with the original intent of the Rural to the gigantic private investment in the REA and of the electric utility industry is Electrification Act, I believe every one U.S. electric-utility industry. marked by flat contradictions of fact, pas­ of us should read and study this Fortune · New Jersey's Senator CLIFFORD CASE, whose sionate charges, and countercharges. In the article. It seems to me to be an honest State has only one small REA co-op, got a main, both sides have simply reacted in pre- 1963 CONGRESSIONAL RECORD- HOUSE 2459 dictable ways to an unpredicted change in tribution lines; over these anyone who pald kansas named Clyde Ellis, 54, general man­ American life since World War II: the revolu­ a membe:rship fee of $5 or $10 could get ager of National Rural Electric Cooperative tion of exploding cities and industries and power, bought mainly from private com­ Association since its foundillg and sometimes shrinking farmland. panies. In th.e first 5 years only about 2.5 called the man who :runs REA from out.­ Thanks to a technological revolution in percent of REA loans were for the building of side. Starting from scratch, Ellis has built which electrification has been a major ele­ generating plants and their accompanying National Rural Electric Cooperative Associa­ ment, the Nation's farmers each year pro­ high-voltage transmission lines. Expansion tion into a co-op service organization (pur­ duce bigger and bigger crops on fewer and slowed during World War II. But when the chasing, insurance, managerial training) fewer acres. In the past decade U.S. farm­ wartime scarcity of materials ended, a new with a $1 million Washington building of its land has been withdrawn from crop produc­ world began to open up for ambitious men own. But he is still best known as a for­ tion at an average rate of 4 million acres a in REA and the co-ops. In the postwar midable lobbyist and arm-pumping speech­ year. Meanwhile, riding technological and boom, farm consumption of electricity maker. At a Western States water and pow­ population booms of their own, cities and soared with the accelerated trend toward consumers conference in Portland, Oreg., industries have burst out into the country­ consolidation of small family units into big last October, according to the Portland Ore­ side, covering former farmlands with suburbs, mechanized factory farms. The rapid ex­ gonian, he declared of the Nation's power housing developments, factories. Inevitably, pansion of cities and industries further en­ -companies: "Their object is to take over the and on an ever-increasing scale, electric co­ couraged co-op dreams of growth and Government. They are public enemy No. 1- ops and companies. have met and clashed in independence. A responsive Congress more dangerous than Communists because border warfare unforeseen by REA's found­ jumped its annual REA appropriation from Communists are not a threat, but dictator­ ers in the depression world of the mid- $25 million in 1945 to $300 million in 1946. ship is a threat." 1930's. In 1950, after Congress had assigned REA Ellis promptly wrote to the Oregonian to WE ARE NOT INTENDING TO COMPETE WITH the additional and noncontroversial task of correct its "inadvertent misquote" of his ANYBODY making loans for rural telephone expansion, extemporaneous remarks, explaining: "I the annual appropriation reached $495 mil­ feel that the commercial electric utilities The Rural Electrification Administration lion. Also, by 1950, of all REA loans 16.4 are the No. 1 threat from within to our was created by Franklin D. Roosevelt's Ex­ percent had gone for generating and trans­ free enterprise system. They are more dan- ecutive order on May 11, 1935, and allotted mission facilities. gerous even than Communists who no longer $100 million of work relief funds. As a Three months after taking office, Presi- · are considered a substantial threat from quick jobmaker, the new agency could not within." Short, bald, tightlipped, and in- compete with leaf raking; too much of its dent Kennedy's REA Administrator, Norman Clapp, announced a new "third criterion" for tense, Ellis started his career as an Arkan­ funds had to go for heavy equipment. 'But sas State legislator feuding with the State's friends of the farmer and of public power G. & T. loans. Hereafter, he decreed, they would no longer be limited to co-ops that political boss who was also president of its saw their opportunity. The greatest of largest power company. His associates scoff them, Senator George Norris, of Nebraska, had no other adequate and dependable source of power, or that could generate at the frequent charge that his ultimate inoved to seize it. Another hardscrabble goal is nationalization of the U.S. electric­ farm boy, Sam Rayburn, of Texas, then chair­ power more cheaply than they could buy it. Instead, they would also be granted wher­ utility industry. "Actually," says one, "Mr. man of the House Interstate and Foreign Ellis is a very conservative man who just Commerce Committee, joined him in intro­ ever "necessary to protect the security and effecti.veness of REA-financed systems." hates the power companies." ducing a bill to authorize a 10-year ·REA pro­ Two or three steps behind Clapp and Ellis, gram openly designed both to fight the de­ REA's nervous critics suspected that their worst fears had come to be personified in somewhat less in the limelight, stands Ken­ pression and to raise rural living standards. neth Holum, 47, a tall, rugged, farmer­ It would have been ridiculous to build the new management, for the new third criterion seemed broad enough to cover al­ politician from Aberdeen, s. Dak. Holum, electric distribution lines in rural areas and a veteran of . the public power expansion deny service to villagers or to stores, machine most any G. & T. loan that Clapp and his colleagues might care to make. wars in the Missouri River Basin, is Presi­ shops, feed mills, grain elevators, and other dent Kennedy's Assistant Secretary of the rural businesses. Hence the Norris-Rayburn AN ELECTRIFIED WORLD OF BLACK AND WHITE Interior for Water and Power-and as such bill did not specify farms or farmers. In­ A stocky, articulate man who suggests a the man in charge of the power produced stead it authoriZed REA to make loans "for crewcut William Jennings Bryan, Norman by the giant Federal dams. To understand the furnishing of electric energy to persons Clapp arrived at his present post by way of Holum's connection with REA ambitions we in rural areas who are not receiving central experience as a Wisconsin weekly newspaper must first understand the full potential of station service." A rural area was defined publisher, and as a three-time loser in cam­ REA's own plans. as one "not included within the boundaries paigns for Congress. He is also a brother of of any city, village, or borough having a Gordon Clapp, onetime TVA Chairman. On THE BATTLE FOR TERRITORIAL INTEGRITY population in excess of 1,500 inhabitants." the evidence of his own words, Administra­ The Clapp-Ellis REA war cry is "territo­ The bill specifically authorized the agency to tor Clapp, 48, appears--like Bryan-to live in rial integrity." Since duplication of costly make loans for generating plants and also, a world of black and white. When a co-op electric facilities is clearly wasteful, regula­ in its now much discussed section 5, to lend last year finally brought electric service to tory commissions and neighboring U.S. money to REA borrowers, which they in turn John McGuffin's New Mexico ranch, 11 years power companies long ago arrived at a could lend to their customers for the pur­ after McGuffin had applied for it, Clapp system of exclusive company territories with chase of electrical and plumbing equipment. hailed the event as one more triumph of firm no-trespassing agreements. Private The U.S. farm depression had been going on "individual initiative to which are added power companies map their territorial bound­ since the collapse of the World War I boom the qualities of good neighborliness and aries as sharply as counties, reserving ter­ in 1920; it was reasonable to assume that basic Christianity wrapped up in good, prac­ ritory not only for each company's existing the rural electrification program would never tical, operating American democracy." But service but also for its future development. get off the ground unless farmers were helped when the Nevada Power Co. last year finally REA partisans have convinced themselves to both electricity and equipment. brought electric service to a desert valley and are trying hard to convince State legis­ Members of Congress concerned about pos­ where a new co-op was in the planning latures that, without paying the price in sible competition with existing private stage, Clapp denounced the event as one taxes, interest, and-usually-in State reg­ enterprise were reassured by the bill's dis­ more example of "the selfishness, cynicism, ulation, co-ops nonetheless deserve all of tinguished sponsors. "May I say to the and greed that have characterized the oppo­ the territorial and other privileges of ordi­ gentleman," said Sam Rayburn in response to sition Of the P9Wer companies to the rural nary utility companies. a question, "that we are not, in this bill, electrification program all these years-and Administrator Clapp frankly concedes that intending to go out and compete with any­ that still do." (Power companies, which many co-op territories are now more or less body." Senator Norris inserted in the had electrified 750,000 farins by 1936, now urbanized. But despite the provisions of CoNGRESSIONAL RECORD a memorandum from serve 43 percent of U.S. farms.) At the Na­ the 1936 act limiting REA to "rural areas," the first REA Administrator, Morris L. tional Rural Electric Cooperative Associa­ he insists that any territory a co-op "devel­ Cooke: tion's regional meetings last fall, Clapp oped in good faith" when it was rural still "REA can make loans for generating squared off against his (and Bryan's) per­ belongs to that co-op, no matter how urban plants but we must be shown conclusively sonal devil: "The power companies are not the area may have become. (1) that energy is not available from an,y alone in their opposition to the REA pro­ When a co-op service area has been legally existing source, (2) that the proposed gen­ grams. If the battle for rural electrification annexed by a city in which a power com­ erating plant can produce energy at a lower is to be won, we must recognize our opposi­ pany holds a franchise, the co-op has some­ cost than it could be obtained from any tion for what it is. It is perfectly plain that times sold its facilities to the company or other source, (3) that the output of such this opposition springs from big business exchanged them for some of the company's plants will be used mainly for supplying and its political allies. These are .the cul­ rural lines. Some co-ops and companies energy for use in rural areas." prits who are trying to hang the Socialist _have reached· territorial or nonduplication With these assurances the Norris-Rayburn smear tag on ·you." . agreements, and some even pool their power bill became the Rural Electrification Act of The adviser, ally, and goad of REA Ad­ . for mutual benefit. But border warfare is . 1936. ministrato: s since 1943-and the gadfly of . widespread; the two fight it out customer As Administrator Cooke had indicated, power companies and Members of Congress by customer, often duplicating each other's REA co-ops at first devoted themselves al­ who dare to oppose his wishes-is a · re­ lines. Any co-op battling for more non­ most wholly to building low-voltage dis- doubtable former Congressman from Ar- farm business in its service area may be 2460 CONGRESSIONAL 'RECORD- HOUSE February 18 certain that Messrs. Clapp and Ellis will companies in Minnesota and Idaho, a · textile to build or expand a G. & T. supercooperative. back it to the limit. mill in North Carolina. To its critics in and In the early years, when co'-ops thought they Though company rates are in general out of Congress, REA seemed to have got were being overcharged by a private power slightly lower than those of the co-ops, the about as far as possible from its original supplier, they would make engineering stud­ co-ops have some distinct advantages in such purposes when it announced early last year ies of the cost of generating their own power, competition. Among them: that it had provided an Illinois co-op with and submit their figures to the supplier. As a legal monopoly strictly regulated by $30,000 to lend to a ski resort for the pur­ The result was often a · substantial reduc­ State and Federal commissions, a power com­ chase of snow-making equipment and out­ tion in the supplier's rates. Employed thus, pany can neither raise its rates at will to door lights. the threat of a G. & T. loan was an effective increase profit nor arbitrarily lower them Concerning this and other section 5 loans, and legitimate bargaining weapon. for a particular customer to underbid a com­ Administrator Clapp got a sharp warning But as REA and the co-ops grew in ambi­ petitor. Its Commission-set rates allow it from the chairman of the House Agriculture tion and political power, the public and a fixed percentage of profit, based on its Committee, HAROLD D. COOLEY, of North Congress learned less and less about G. & T. gross income, capital investment, and allow­ Carolina, during hearings on last year's farm ·loan applications. Every G. & T. loan means able operating costs. Discrimination among bill: "I think you should be very careful not a loss of tax revenues and interest to the customers of the same class normally is for­ to make loans that are going to go so far Government and its taxpayers, and a loss of bidden; if a company voluntarily lowers its afield, because the first thing you know we business to the power supplier who will be rates for one customer it must give the same will have to rewrite that section and make supplanted by it. Co-ops are still supposed reduction to all others in the class.1 Co-ops, it perfectly clear that we did not intend to get their supplier's best offer before ap­ however, are partially or wholly exempt from that. And if you continue to industrialize, plying for a G. & T.loan. But, unless the co­ Commission regulation in most States. Most we will certainly do that." op permits, neither power companies nor co-ops, therefore, are legally free to set any Members of Congress are allowed to examine rates they please. THE SPECTER OF NATIONALIZATION If the various inequities of competition the engineering studies that support G. & T. Capital investment in the electric utility application claims. The REA Administrator industry is heavy: an average of nearly $4.50 were all that mattered to the executives of investor-owned power companies, they can thus be the sole judge and jury of of total plant per dollar of annual revenue whether the applicants actually have no as compared with an average of about $2.15 might secretly enjoy the fight with REA just for providing some excitement in an indus­ other adequate and dependable source of for manufacturing industries. Hence power power, of whether they can really generate companies are heavy borrowers, currently at . try from which competition and risk have largely vanished. But the power industry is power for less than it would cost them to 4 to 5 percent interest. Co-ops get their buy it, and-under the new third criterion­ Federal funds at 2 percent and may defer haunted by something far more somber­ the specter of national!Bation. The specter of whether their security and effectiveness principal payments during the first 5 years are being impaired by a hostile supplier. of the loan's 35-year term. is taking shape and substance as co-op gen­ erating plants increasingly become key links President Kennedy has called repeatedly Taxes and capital charges take about 40 for increased public power development, and percent of the power companies' gross reve­ in what could ultimately form a gigantic national electric system, partly Government urged more G. & T. loans. Near Pierre, S. nues. Of every dollar received from their Dak., last August, at the dedication of the customers, about 24 cents goes out in taxes, owned, partly Government subsidized, and all largely tax exempt. Against such a sys­ sixth ( Oahe) of seven great Federal dams including 13 cents in Fede:Oal income taxes. on the upper Missouri River, the President Like other U.S. industries, power companies tem, a private industry that pays out·almost 40 percent of its revenues in taxes and cap­ called REA co-ops "a happy middle ground get the benefit of tax deferrals for accelerated between private enterprise and public coop­ amortization and depreciation, giving them ital charges could not compete. Hydroelectric generators at Federal darns eration" and declared that "the role of REA temporary interest-free use of substantial isn't finished." And in this same Upper Mis­ amounts collected for taxes. But as non­ could not alone power such a system. Their supply of falling water and hence their elec­ souri Basin last year the alliance between profit organizations, the co-ops pay no direct REA and Federal power came fully into the Federal tax.es whatever, and less than normal tric output vary with rainfall and the sea­ sons, and also with the needs of navigation, open. State and local taxes. MISSOURI ALLIANCE Co-ops get many services from REA, but irrigation, fiood control, municipal water pay nothing toward the $10-million-a-year supply, and recreation, which have been the In the northwestern tier of. States rang­ cost of administering the agency. ostensible primary purposes of this huge, ing from western Minnesota and Iowa to As preferred customers, many co-ops buy still growing Federal investment (over $5 Montana, co-.ops buying much of their power power from the hydroelectric installations at billion for power facilities alone). To be­ from Federal darns on the Missouri were Federal multipurpose dams. Because these come a dependable source of electricity in notified not long ago . that after 1965 this season and out, the output of hydrogenera­ Federal system-run by the Interior Depart­ dams share the co-ops' freedom ~rom taxes and because they can charge off much of tors must be supplemented or firmed up by ment's Bureau of Reclamation--<:ould no their operating expense to navigation, irri­ the fuel-burning . generators, generally longer supply enough power for ·their grow­ gation, fiood control, recreation, and other called thermal or steamplants, that produce ing needs. How and by whom should the purposes, these Federal business enterprises most U.S. commercial electricity. additional power be produced? The Feder{l.l can and do sell electricity for little more than Except in the special case of TVA, Congress Government was shortly confronted · by :a half the price of commercial power. The had steadfastly refused to let Federal dam basic choice. One way pointed toward the Edison Electric Institute has calculated that authorities build steamplants. Electricity possible nationalization threatened by the if TVA were to pay a power company's rates has in principle been merely a byproduct tie-in of Federal hydro and co-op steam­ of taxes and interest, it would have to raise that helps pay for the dams' other services. plant generation. The other way pointed to­ its selling rates by 56 percent. Congress does not, however, set any limit ward what Secretary of the Interior Udall to the percentage of REA funds that may calls "cooperative competition" between A COLD EYE FOR SNOW MAKING be loaned for co-op generating plants. An private and public power. The Government gives the co-ops one amendment to limit G. & T. loans, introduced The first alternative would require REA to small additional competitive advantage: the by Representative ROBERT H. MICHEL, of Il­ make a big G. & T. loan to a 'group on co-ops. lure of the section 5 loan. These loans are linois, a Republican, was voted down by Power companies thought they saw a blue­ fiscal peanuts ($2 to $5 million a the House last year, 133 to 94. And the rise print for the kind of creeping nationaliza­ year) but political hot potatoes. Washing­ in G. & T. loans has been accompanied by an tion they fear when a detailed plan for a ton provides funds at the usual 2 percent increasing trend toward firm up tie-ins be­ joint REA-Bureau of Reclamation develop­ interest and the co-op relends them at its tween REA steamplants and Federal hydro­ ment in the region appeared in July 1960. It own rates. As long as the loans were made generators. was prepared and published by an organiza­ for the purchase of home wiring and appli­ Such tie-ins or pooling are normally ben­ tion called the Midwest Electric Consumers' ances, and electrical farm equipment. they eficial to both parties. Power consumption Association. As the first step in the plan, were not challenged. But now section 5 varies not only from hour to hour but also it proposed that a 200,000-kilowatt co-op gen­ money is being used increasingly to build up with the weather and seasons. A producer's erating plant "should be built and on the co-op business with industrial customers. average demand may be only half of its peak line by 1965" and that it "should be in­ Recent section 5 loans have gone to a gravel­ demand. By exchanging power, producers stalled on a site near Garrison Dam [North crushing plant in North Dakota, lumber with differing peaks can dispense with much Dakota] • • • within approximately 13 of their costly reserve capacity. But be­ miles of the Garrison [Bureau of Reclama­ 1 Commissions have long permitted the cause of the REA drive for nonfarm business, tion] substation." Two· rival groups of the con::panies to sell power to co-ops at special every tie-in between a G. & T. co-op and a region's co-ops, calling themselves respec­ low rates or discounts off their standard Federal dam puts the U.S. Government more tively Basin and Lignite, formed to seek the wholesale rates. But the Southwestern directly and openly into competition with G&T loan. Public Service Co., operating in Texas, Okla­ private enterprise. The second alternative was presented to homa, and New Mexico, was challenged by The specter assumes special proportions the Interior Department early last year by a the Federal Power Commission last year f,ar because REA loans for the construction of group of 14 of the region's power producers. possible discrimination against its other co-op generating systems are shrouded in The group offered to firm up the Federal wholesale customers by granting too low a secrecy. G. & T. loans are normally made to hydro system's power, and thereby increase rate to a group of co-ops. federations of distribution co-ops, formed it by half, without requiring the Govern- 1963 GONGRESSIONAL RECORD- HOUSE 2461

ment to spend or l~nd a single dollar for some location near the head of navigation so first would probably have to pay an above­ new generating plants and transmission lines. that coal can be delivered by barge. If nu­ normal return, of perhaps 5 percent. Later This seemed an ideal solution. Power con­ clear-plant design is far enough advanced at issues should rank with the best utllity sumption in this area--down in summer, up this time, this .could be a nuclear plant." bonds, currently paying interest of 4.2 to 4.4 in winter-is the seasonal opposite of hydro­ BANKS FOR ELECTRIC COOPERATIVES? percent, and the interest might well go electric production. The 14-producer group lower. The REA banks could easily borrow offered to make up the Federal system's Clearly, the REA crisis must be resolved­ all that the co-ops might need, beginning winter deficit in exchange for its summer but with fairness to both sides and to the at $500 mlllion a year and rising substan­ surplus, with money changing hands only Nation. It is inconceivable that Congress tially. Present Government loans would be in exceptional circun;>.stances. Between them, would :today, at one stroke, dellberately repaid at the agreed 2 percent, but REA's the group members already had 42 intercon­ create what the REA complex has in fact present first mortgages on its borrowers' nections with the Federal lines. In addi­ become; certainly the Congress of 1936 had facilities should be replaced by bonds hold­ tion to 12 power companies, the group in­ no such intention. Nevertheless, REA co-ops ing equal rank with others to be issued. cluded the Omaha Public Power District (no exist and, like scrambled eggs, cannot sum­ To smooth the transition to independence, marily be returned to the state of nature. Congress might well lower the interest rate private power companies are left in George Created by the U.S. Government, they grew Norris' Nebraska) and the biggest G. & T. on the new banks' bonds by giving them a with government encouragement and as­ Government guarantee. If the need were co-op, Wisconsin's Dairyland Power Cooper­ sistance. They are not just poles and wire ative. In this connection it should be firmly demonstrated, it might also--as President noted that many midwestern and western and generators. They are tens of thousands Eisenhower suggested in his 1961 proposal municipal power companies and REA co-ops of dedicated people who over the years have for REA co-op financial independence-help find Washington control just as repugnant as put an enormous amount of work, much of start the new banks with a Federal loan. private power companies do, and are, in it unpaid, into what they sincerely believe Other concessions would merit consideration. fact, as fiercely individualistic as any Wall is a public service not only to their neighbors If, for example, Congress really does want Street banking house. but to the Nation. They are by no means to achieve the REA goal of "area coverage" by On May 3, 1962, Secretary of the Interior unanimous in their support of the policies subsidizing electric service to every last Stewart Udall rejected the 14-producer offer. of Norman Clapp, Clyde Ellis, and Kenneth country dweller in the land, it might create He announced that he had decided to deal Holum. But they take pride in their a speCial fund on which co-ops could draw instead with the Basin Electric Power Co­ achievement, and feel strongly that they for the purpose. operative of Bismarck, N. Dak. Seven days have earned its rewards. It would be left to each State to decide later REA announced a $36,600,000 G. & T. Is there a way that REA co-ops can cut the whether its independent electric co-ops loan to the Basin Co-op. silver cord of dependence on Government should be subject to full commission regula­ The bitterness of the rejected 14-producer paternallsr..'l and become in truth the "inde­ tion. But even without that, power com­ group was easily matched by that of the pendent business enterprises" that REA now panies might well grant the co-ops the same rejected Lignite Co-op group. Both groups calls them? territorial recognition they now give each interpreted the decision as a move toward A model for REA co-op independence has other--on one condition. greater federalization of electric power. Evi­ been operating successfully for nearly 30 That condition would be that Congress dence of Administrator Clapp's open all1ance years. In June 1933, Congress authorized eliminate the threat of nationalization by with the Bureau of Reclamation appeared in the Farm Credit Administration to organize f:!nacting the recommendations painstaking­ the five special stipulations that he had laid 13 banks for cooperatives--12 district banks ly made by its own advisory commission, the down for the G. & T. loan. One was that plus a central bank in Washington-to make second Commission on Organization of the the group receiving it-must agree in advance loans to farm purchasing, marketing, and Executive Branch of the Government (Hoover to use the Bureau's transmission system. service co-ops. Unti11956 most of the banks' Commission) in 1953-55. Charged with rec­ The Bureau, in turn, would not permit use capital stock came from a Government re­ ommending ways of eliminating from the of its lines unless the Co-op group agreed to volving fund. Then it was decided that co­ Government "nonessential services, func­ sell it power on its own terms, which the operatives should gradually acquire a larger tions, and activities which are competitive Lignite group considered unfair. amount of stock in the banks and eventually with private enterprise," the Commission put "The Basin people have sincere convic­ own them. As a result, Government capital its expert task forces to work, concluded that tions,'' says a Lignite spokesman, "but we has been reduced, from $150 million on Jan­ REA should be transformed into "a self­ don't see things their way. -We want to uary 1, 1956, to $94,800,000 on June 30, 1962. supporting institution securing its own run our own business, not have it run by In fiscal 1962 the co-op banks marketed finance from private sources." the Federal Government. -Of course, if you six short-term issues, mostly to commercial Concerning Federal ·electric power, the re­ want to argue about the way we borrow banks, insurance companies, and other insti­ port continued: "The task force insists that our money, that's all right. But we do bor­ tutional investors, which brought $887 mil­ if the Federal Government does engage in row it and we pay it back and we do a job, lion at interest rangin,g from 2.95 to 3.2 business activities normally conducted by and the Bureau of Reclamation doesn't tell percent. The co-op banks in turn loaned co private individuals, it should charge rates us how to do it. That's why we feel we're operatives $860 million, at interest ranging which recover at least the actual costs of more a private-enterprise-type business than from 4 to 5 percent for commodity loans conducting them. a public-power type, and we want to keep it and from 4%, to 5~ percent for operating "It also states that there is neither eco­ that way." capital and facility loans. Cooperatives now nomic nor social reason, nor reason in equity, The Basin manager, James L. Grahl, for­ own $67 million of the banks' stock. Patron­ why all customers of Federal power should mer assistaant general manager of the Amer­ age refunds distributed to the cooperatives not pay in their rates their fair share of the ican Public Power Association, makes no in the form of stock in the banks has re­ costs of Federal, State, and local govern­ secret of the fact that Basin's is only the duced their average effective interest to 3.06 ments." first of many generating plants that will be percent. They also have a $17,500,000 share The Commission therefore recommended needed to supply the region's Co-op cus­ in the co-op banks' earned net worth of that Congress equalize private and public tomers and firm up the Federal hydropower. $105 million. Since 1933 cooperatives have power rates-and competition-by requiring And just as the blueprint of the Midwest borrowed a total of $11.6 blllion from the that Federal power be sold at rates which Electric Consumers' Association predicted, would amortize and pay interest on the Fed­ the first 200,000-kilowatt Basin generating co-op banks-nearly triple the total of REA loans. eral investment involved, and would include plant wlll be "on the line" precisely by late amounts equivalent to the Federal, State, 1965 and, sure enough, it will be located on Could REA be converted into a similar system of banks for electric cooperatives? and local taxes paid by private power com­ a site near Garrison Dam, within approxi­ panies. mately 13 miles of the U.S.' Bureau of Re­ Fortune put the question to a famous old firm of securities underwriters, with the fol­ A statute to that effect would banish the clamation's Garrison substation. specter of nationalization. The skeptics add one more funny coinci­ lowing figures. In 1960, REA borrowers dence to this pattern. In its original pub­ earned net margins (i.e., profits) totaling OFF UNCLE SAM'S SORE BACK lication, the Midwest association's executive $87 million. The borrowers own general The power needs of the United States, with director was listed as none other than Ken funds or reserves totaling $539 mlllion. its growing population and advancing tech­ Holum, the same who is now Assistant Sec­ Deducting a generous 9 percent of total plant nology, are boundless. There is plenty of retary of the Interior for Water and Power. for operating reserves, this leaves $180 mil­ room for both REA public power and private "Ken Holum," says an. acquaintance, "is a lion in genuine surplus funds. If REA bor­ power systems, and for what Secretary Udall man who had a dream and then got in a rowers were to pool these funds, they could calls cooperative competition between position to make it come true." begin with more than the stock of the FCA them, if that competition is thus made fair. If Holum and Clapp retain their present banks for cooperatives. By 1962 repayments With this position granted {and it does positions and Congress does not intervene, had brought REA borrowers an average 21 not sit well with either private or Govern­ it seems highly probable that, sometime in percent equity, worth about $800 million, in ment power purists), the next move, in spirit, 1963 or 1964, REA wlll announce something their systems. must come from those independent-minded similar to the second step in the Midwest It is the underwriters' opinion that such a among the co-ops. Their very independent­ association's blueprint for the Missouri Ba­ system of banks for electric cooperatives mindedness might lead them to resist a pool­ sin. · That calls for another 200,000-kilowatt would have no trouble in marketing long­ ·ing of their funds to free up the whole sys­ plant to be located "at Vermlllion, s. Dak.; or term bonds. Like other untried issues, its tem; on the other hand, there are heartening 2462 CONGRESSIONAL RECORD- HOUSE February 18 signs of a growing co-op determination to This is·a subject about which the Sec­ adding 19,026 people in the 3-year period get free of Washington. retary should be most adept since he is from June 30, 1961, to June 30, 1964, Mr. One notable challenger is a rugged individ­ adding employees at a faster rate than ualist named Les Dumond, manager of the Freeman could man a full U.S. Army Northern Rio Arriba Electric Co-op, Inc., any of his predecessors. Yet, the press division. called NORA for short. Having refused to release issued by the Department of Ag­ To document my statement, I refer to attend the National Rural Electric Coopera­ riculture last week covering the Secre­ the figures which Dr. Walter Wilcox, tive Association national convention in At­ tary's Des Moines speech leaves the defi­ senior agricultural specialist at the Li­ lantic City last year, Manager Dumond let nite impression that the number of brary of Congress, obtained from the fly in his NORA Co-op News to explain his people working on farm programs is de­ Department of Agriculture and which I reasons. After detailing the impassioned clining. This is not true. USDA press inserted into the RECORD at page 1860 demands and denunciations to be made at release 499-63 which the gentleman the convention, he continued: on February 4, 1963. I ask unanimous "The governing board of this co operative from Iowa [Mr. SMITH] inserted at page consent to include this data on USDA has gone on record repeatedly over the years 2275 of the RECORD for February 14, employment for fiscal years 1933 to 1964 to this effect: 1963, reads as follows: - at this point in the RECORD. "'We believe wholeheartedly in the original Secretary of Agriculture Orvllle L. Free­ Number of employees in the Department of concept of the rural electrification program. man said today that employment in the De­ Agriculture, fiscal years 1933 to 1964 ( esti­ We are grateful for the fact that through partment's agency most directly concerned mated)l it we have been able to bring good electric with farm programs is declining. Fiscal year: service to NORA country. It could not have He told the Des Moines, Iowa, Farm Insti­ 2 tute, meeting in its 25th session, that full­ 19341933 -______------______------_ 33,233 been done any other way. 1935 ______'54, 208 "'We believe, just as wholeheartedly, that, time Federal employment in the Agricultural , 85,114 Stabilization and Conservation Service has as soon as possible, co-ops should start get­ 1936----1937 ______------_ , 82,302 ting off Uncle Sam's sore back. With 90 per­ been reduced by nearly 600 persons in the , 80, 125 cent of the co-ops, that was 5 years ago.'" past 2 years. He indicated the downward trend would continue. 1938------1939 ______2 84,031 Manager Dumond's co-op headquarters are 2 86,250 in Chama, N. Mex. about 300 miles as the ASCS is the Department agency which ad­ ministers farm commodity programs in the 1940------1941 ______2 81,886 crow flies, and immeasurably distant in spirit, 8 field and supervises storage and disposal pro­ 1942 ______90,169 from the "5,000,000th consumer" festivities 11 grams of Government-owned farm commodi­ 1943 ______91, ·141 at John and Margaret McGuffin's lonely 8104,510 ranch. ties. Total employment in ·the agency at the beginning of this year was 7,071 as com­ 19451944------______77,720 Mr. Speaker, we here in Congress pared to 7,646 at the beginning of 1961. 1946 ______81,984 This reduction in personnel as of January 1947______96,590 must face up to this so-called REA prob­ 87,483 lem. We cannot just close our eyes and has come about not because there is less to 1948 ______do, but because we are finding more efficient 1949 ______82,134 hope it will go away, because it seems to ways to do more work With fewer people in 1950 ______86,247 be getting worse rather than better. the administration of farm programs and in 84,097 During the hearings last year before the the handling of commodity stocks. 19521951------______81,350 Agriculture Committee, the REA Admin­ The Secretary said he was citing the 1953 ______78, 559 istrator was cautioned about some of his ASCS example to correct a growing public 1954 ______78,404 current excesses, as in the case of section misconception that Department employ­ 1955 ______76,276 5 loans for snow-making machinery­ ment grows while the number of persons em­ 85,503 ployed in agriculture continue to decline. 1956------1957 ______89,398 but he has continued to make such loans 95,998 for commercial or industrial purposes. I want to make it clear that the number of USDA personnel is increasing, but the in­ 1958------101,139 Congress created this program and Con­ crease is coming in those areas and programs 19601959------______~ ------_ 97,220 gress has the responsibility for establish­ where increased demands are being made for 1961 ______98,694 ing the policies to guide its future services which benefit all 186 million Ameri­ 102,557 activities. can citizens. 19631962------______j 110,511 The President in his budget message '116, 268 this year again called for the establish­ It is interesting that the Secretary 1964------'121, 583 ment of an REA loan account, but as yet should base his whole case on USDA em­ 1 U.S. Bureau of the Census. "Statistical ployment on the ASCS situation. Using Abstracts of the United States, 1938-62." no legislation has been introduced to 2 carry out this suggestion. If and when the Secretary's own figures and using the Employment figures !or December. dates he cites, there may well be a decline 1 U.S. Department of Agriculture. hearings are held on this subject in the of 575 jobs on paper from early 1961 to • U.S. Budget, 1964. Washington, 1963, 88th Congress, we may have the oppor­ p. 422. tunity to clarify some of these other as­ early 1963. But what about the situation pects of the program. now and what about the request for jobs Mr. Speaker, everybody recognizes that I have no desire to hurt the rural elec­ for the forthcoming fiscal year-1964? the Department of Agriculture performs tric cooperatives, but I agree with the In this regard, I draw the attention of a variety of services for our whole popu­ manager of the NORA cooperative in the House to the personnel summary for lation, but as a member of the legislative New Mexico who was quoted in the the Agricultural Stabilization and Con­ committee, I cannot recall considering Fortune article as having said recently: servation Servi~e-ASCS---:which ap­ legislation which would add 19,026 peo­ pears at page 124 of the appendix to the We believe that • • • co-ops should ple to the Federal payroll. Let us just start getting off Uncle Sam's sore back. budget for fiscal year 1964. In the cate­ remember one thing--our farm popula­ gory of "average number of all employ­ tion is declining. It has been for some ees" for fiscal year 1964, you will find the time, and it is continuing to do so under NUMBER OF EMPLOYEES IN USDA figure 7,912. Their average grade will Mr. Freeman. In the past 10 years­ SKYROCKETS - ASCS EMPLOY­ be a GS-7, and their average annual from 1950 to 1960-it declined 41.3 per­ MENT GOING UP IN FISCAL YEAR salary will be $6,767. cent. In the same period, it l.as declined Thus, it can be seen from the omcial 27.3 percent in my home State of Iowa. 1964 budget figures furnished by the Depart­ We have lost another congressional seat Mr. HOEVEN. Mr. Speaker, I ask ment of Agriculture itself that the num­ because of this decline. Mr. Freeman unanimous consent to address the House ber of employees in ASCS will not be 575 certainly cannot convince me that he for 1 minute, to revise and extend my re­ less than at the beginning of 1961. There needs 5,215 more people next year, and I marks, and to include extraneous matter. will, in fact, be 266 more people there doubt very much that he will be able to The SPEAKER. Is there objection than at the beginning of 1961 and 841 convince the Committee on Appropria­ to the request of the gentleman from more people than at the beginning of tions and the Congress either. Iowa? 1963. There was no objection. The Secretary's juggling act with em­ Mr. HOEVEN. Mr. Speaker, on Feb­ ployment numbers falls completely fiat CONSENT CALENDAR ruary 14, 1963, Secretary of Agriculture when we see that there was a decline in The SPEAKER. This is Consent Cal­ Freeman spoke at the National Farm In­ total USDA employment in 1959 and endar day. stitute in Des Moines, Iowa, about the again in 1960 which was followed by in­ The Clerk will call the first bill on number of employees in his Department. creases in 1961, 1962, 1963, and 1964. By th~ Consent Calendar. 1963 CONGRESSIONAL RECORD- HOUSE PROVIDING .AODITIONAL COMPEN.• · (6) The administration and operation of The SPEAKER. The question is on · sATI0N FOR. VETERANS. HAVINQ agricultural ·programs through State and the committee amendments. county agricultural stabilization and con­ · The committee amendments were SERviCE-INCURRED 1)1SABILIT:Y servation-committees and the administrative agreed tO. - OF DEAFNESS OF BOTH EARS policies and procedures rel~tlng to the s_elec­ tion, election, and operation of such com­ The resolution was agreed to. The Clerk called the first bill to amend title 38 of the United (7) The development of upstream water­ table. States Code to provide . additional com"~" shed projects authorized by Public Law 156, pe~ation for veterans having the serv­ Eighty-third Congress, and the administra­ ice-connected disability of deafness of tion and development of watershed programs ADJOURNMENT TO THURSDAY, both ears. pursuant to Public Law 566, Eighty-third FEBRUARY 21,1963 Mr. PELLY. Mr. Speaker, I ask unani­ .Congress, as amended; and the development of land use programs pursuant to titles I Mr. ALBERT. Mr. Speaker, I ask mous consent that this bill be passed and IV of the Food and Agriculture Act of unanimous consent that when the House over without prejudice. 1962: Provided, That the committee shall not adjourns today it adjourn to meet on The SPEAKER. Is there objection to undertake any investigation of any subject Thursday next. the request of the g(:mtleman from Wash­ which is being investigated by any other The SPEAKER. Is there objection to ington? committee of the House. There was no objection. For the purposes of such investigations the request of the gentleman from Okla­ and studies, the committee or any subcom­ homa? mittee thereof is authorized to sit and act There was no objection. during the present Congress at such times STATUTORY AWARD FOR APHONIA and places within the United States, or out­ · The Clerk called the bill The formulation and development of year 1962. There seems little assurance improved price support and regulatory pro­ same form as the resolutions for other grams for agricultural commodities; matters committees of the House; that is, it has that this year's program will fare any relating to the inspection, grading, and mar­ an amendment with a restriction on the better. keting of such commodities; and the effect use of foreign currencies and does not International: The new budget as­ of trading in futures contracts for · such give the committee authority to travel sumes that the activities of the Export­ commodities; abroad. Import Bank will result in a net inflow 2464 CONGRESSIONAL RECORD- HOUSE February-18 ·of funds to the Treasury of approxi­ estimate of .the current year's expendi­ DEFICIT mately $650 million on top of a com­ tures upward by $624 million, of which · · In view of the imp-onderables regard­ parable infiow of $225 million in the a substantial amount is for civilian pro­ ing prospective revenues it is di1Jicult to current year. Whether disinvzstment grams. Otherwise, somewhat over $1.5 project the likely deficit for fiscal year of this magnitude will be achieved at a billion in expenditures increases for·civil­ 1964. However, on the assumption that time when such studies attention is be­ iaii programs are pres·umed to be offset expenditures will probably run to $101 ing paid to increasing U.S. exports seems .by the purported expenditure reductions billion and that Congress will enact some unlikely. noted above. Whether the budget ade­ form of tax cut, it seems reasonable to Housing: Expenditures for housing quately allows for the costs of certain ·anticipate that the deficit will be at least programs are projected to fall by $250 programs thus depends on whether these $13 to $14 billion. This would result in million, largely on the premise that the and other proopsed expenditure reduc­ both the highest spending of any year in category "aids to private housing" will tions can actually be made and whether American history and the largest deficit provide net receipts for the Government the other existing civilian programs and of any year in peacetime history. of $437 million, a figure substantially the new programs--such as the new edu­ PUBLIC DEBT larger than comparable receipts in any cation program, the National Service year in the preceding decade. Corps, and urban mass transportation­ _The public debt at the end of Presi­ proposed in the state of the Union mes­ dent Eisenhower's last full fiscal year in . Veterans: For the second year in a office was $286 billion. As the result of row expenditures on veterans' programs sage and elsewhere can be held to stated levels. The allowances for these latter the $3.9 billion deficit in fiscal year 1961, are projected to decrease. However, re­ the $6.4 billion deficit in fiscal year 1962 vised fiscal year 1963 figures for the Vet­ appear arbitrarily small, particularly _when it is noted that the allowance for and the projected deficits of $8.8 billio~ erans' Administration now indicate that in fisc;:al year 1963 and $11.9 billion in expenditures for fiscal year 1963 will be contingencies is only $200 million, or only two-tenths of 1 percent of the budget. fiscal year 1964, the total debt iS officia..lly more rather than less than those for projected to increase to $316 billion at fiscal year 1962. Additional basis for When the above areas of probable spending increases are coupled with the the end of fiscal year 1964 or by over 10 skepticism as to the possibility of a re­ percent since 1960. Even this estimate duction in fiscal year 1964 veterans' ex­ experience of the past 2 years--the fiscal year 1962 budget ran $3.5 billion is probably low and along with all the penditures derives from the fact that other changes in permanent and tempo­ expenditures for veterans' programs have more than President Kennedy's initial spending estimate and the fiscal year ·rary debt ceilings which will have to fallen in only 2 years in the past decade be sought the next few months will re­ and never by more than a third of the 1963 budget is now running $1.8 billion more than his original estimate-it ap­ quire Congress to establish a temporary drop predicted for fiscal year 1964. debt ceiling during fiscal year 1964 of Of particular significance is the fact pears reasonable to assume that fiscal year 1964 spending is not likely to be held approximately $325 billion to accommo­ that in three of the above four areas, the date fluctuations in revenue collections. projected expenditure cuts are based at $98.8 billion, as projected, but will primarily on the assumption of positive more likely run in the magnitude of $101 ECONOMIC PHILOSOPHY actions by the business community, that billion. Budgets are merely plans; what is is, net purchase from the Government of REVENUES more important in the scheme of things well over $1 billion worth-of CCC cotton, So many imponderables are involved, is the philosophy they reflect. Here lies HHFA mortgages, and Exim Bank as the result of the proposed new tax reason for even greater concern than in paper. If expenditures fail to fall as in­ legislation, that it is almost impossible the budget figures themselves. dicated, the business community can be to reach a valid judgment as to whether With respect to taxes, for example it blamed for lack of cooperation, just as fiscal year 1964 receipts are likely to is difficult to believe that the basis for it failed this year to live up to its po­ reach the $86.9 billion total estimated in the tax program has been thoroughiy tential and to help produce the gross na­ the budget message. A reasonable guess thought through. The opening para­ tional product and the corporate profits might be that if no tax legislation is graphs of the budget message note that on which the initial estimates of the passed in the current session revenues the checkrein of taxes-estiniated at fiscal year 1963 budget surplus were might reach $90 billion whereas if legis­ over $150 billion a year at the Federal, premised. lation of the nature recommended by the State, and local levels--must be loosened. Second. Whether certain supplemen­ President should pass that revenues -_Yet the fact of the matter is that the tal expenditures can be made in fiscal might be in the magnitude of $85 billion Nation's tax bill will probably rise more year 1963. In the 2-month period be­ or approximately the figure now esti­ than $6 billion this year. Federal in- tween November 1962 and January 1963 mated for the current fiscal year-fiscal -come and excise taxes aJ;"e estimated to estimates as to required fiscal year 1963 year 1963. rise about $1.5 billion in fiscal year 1964 supplemental appropriations jumped A basic reason for doubting that fiscal despite the proposed tax cuts. Social $1.1 billion and anticipated fiscal year year 1964 receipts would reach $86.9 bil­ security taxes will rise $2 billion this 1963 expenditures $624 million. For ex­ lion if the tax cuts and reforms recom­ year and it has been estimated that State ample, it is now proposed to ask Congress mended by the administration were to be ·and local tax collections will rise about for an additional $500 million in appro­ passed without change by the Congress -$3 billion. Proposed reductions in Fed.. priations for the accelerated public works derives from the reliance placed in the eral taxes will reduce the total burden program and to expend more than $100 budget estimates on a presumed $2.6 bil­ somewhat from what it might have been, million of these moneys before June 30, lion increase in corporate income taxes. but since total tax collections would ap­ 1963. It is entirely possible that certain This is the second consecutive year an parently still run 4 percent or so more of these new expenditures are shown for assumption of this nature has been than last year, it is difficult to see how fiscal year 1963 in order to provide a bet­ made. The fiscal year 1963 budget esti­ the tax program can provide the pro­ ter picture in fiscal year 1964; to the ex­ mates predicted a $5.3 billion increase in jected fillip to economic activity. tent, of course, that accelerated programs · corporate taxes over fiscal year 1962- · In the same vein, one must wonder . of this nature do not result in actual from $21.3 to $26.6 billion-but this fig­ whether the anticipated results could be spending before the end fiscal year 1963. ure has now been revised downward by achieved even if the total tax- burden Fiscal year 1964 expenditures will rise $5.4 to $21.2 billion. The point here is were to be reduced in the specified ways. commensurately. that corporate tax receipts have held to a It is one thing blithely to assert that the Third. Whether the fiscal year 1964 plateau of approximately $21 billion for proposals for tax reduction and reform the past decade and the President has -will step up the growth of the economy, budget makes adequate allowance for the estimated that last year's depreciation improve productivity, and increase job cost of existing and proposed civilian pro­ reform and investment credit will reduce and investment opportunities. It is an­ grams. The new budget rests on a taxes on business by over $2 billion. In other thing for this to happen. On the promise that, taken together, expendi­ consequence, even with the initial ac­ one hand there has been no showing that tures for programs other than for de­ celeration of corporate tax payments the reductions and reforms proposed are fense, space, and interest will be held "to proposed in the budget, there seems little precisely those · which will stimulate this year's level, and even reduced some­ to suggest that taxable profits will rise sound growth and investment so that what." Keeping this promise has, of sufficiently to provide the added corpo­ they are· directed at areas where addi­ course, been simplified- by revising the rate tax receipts projected in the budget. tional incentives are likely to be most 1969 CONGRESSIONAL RECORD- HOUSE 2465 effective. And on the other hand, there with "1964" but rather-with "1984"-a la the 145,380 increase under the Kennedy can be no certainty that even if these George Orwell.- administration, we now have only a were the right types of reforms andre­ , CONCLUSION 135,510 increase-also taking into ac­ _ductions that individuals ·and corpora­ Intrinsic to the entire picture. is the .count the "paper s.witch" .of employees. tions would spend the money in amounts matter of confidence. If the architects In any event, my thoughts turned or ways they were expected to, rather of the new fiscal program had demon­ once more to a speech made by Sena­ than save it or apply it to debts. This is ·strated by performance during the past tor Kennedy, while .running for .the ,not to question the desirability or bene­ 2 years that their predictions could be Presidency, at an airport· rally in Ro­ fi.cial effects of tax cuts as such; rather expected to have validity there might be anoke, Va., November 4. 1960. In the it is to question whether the proposed tax less reason for uneasiness as to the like­ speech, among other things he was criti­ cuts would accomplish the speciftc ends lihood of success of this U.S. version of cizing the Eisenhower administration which are projected. "The Great Leap Forward." The same for, he stated: The extreme fragility of the economic would be true if there were evidence that This administration • • • they have add­ model can be illustrated in other ways. the prescribed remedies had worked in ed 106,000 new-nondefense-Federal em­ For example, it is suggested that the ployees. . I think it 1s about time the Ameri­ the past. can people knew. budget will be back in balance by fiscal Certainly there is little basis for con­ year 1966 or· 1967. There has been no fidence in the administration's economic I too think · the American people explanation of how this is to be accom­ and fiscal predictions. In fiscal 1962 the should know and I hope the President plished and at what level other than by will approve of my pointing out that reference to the fact that revenues rose deficit turned out to be twice the origi­ nal estimate. For fiscal 1963 the gross during the first 2 years of his adminis­ rapidly after the tax cuts in 1954, thus tration Federal employment increased by permitting achievements of balanced national product and anticipated reve­ nues were hopelessly overstated, with 135,510. budgets in fiscal years 1956 and 1957. Just so the people will know, I will What is conveniently overlooked, how­ the result that the initially projected $500 million surplus is now anticipated call attention to the President's 1964 ever, is that tbis equilibriUm was in budget message, sent to Congress on part brought about by 2 successive years to tum into $9 billion deficit. The ad­ of expenditure reductions which pulled ministration's 1963 targets for "full em­ January 17, wherein he stated: the expenditure level down by nearly ployment" and "reasonable equilibrium" This budget has been prepared with spe­ in the balance of payments have now cial attention to employment trends in the $10 billion below the fiscal year 1953 Federal Government. Requests for addition­ figure. Obviously, nothing like this is been quietly relegated to the indefinite future. Similarly, despite all the reliance al jobs have been reduced or denied where­ planned at the present. Indeed. the ex­ ever possible. perience of the first 4 years of the pres­ which is to be placed on compensatory ent decade and the increasing amounts spending, there has been no evidence Apparently it was not possible to hold of spending authority which are being produced to demonstrate that it has ever Federal employment down since the 1964 built up in excess of actual expendi­ worked in a comparable situation. In budget provides for 39,000 new Federal tures--unexpended balances at the end the light of the past, therefore, one is led jobs. of fiscal year 1964 are estimated at $95 to wonder if we are not again being asked Feeling that successful efforts should billion-suggest that under present plan­ to set sail on a troubled sea, bound for an always be given attention, and in line ning the Federal budget will tend to rise unknown destination, with no certainty with the President's desire-while a c~n­ at a rate of some $5 billion a year as to the adequacy of the fuel supply, didate-that the American people should throughout the 1960's. If this occurs, ·and knowing only that on their last trip be kept informed, I hope this informa­ there is certainly no evidence as yet that the pilots-though favored by a fair tion will be of interest and value. it can be balanced before the latter part wind and a following sea-made land­ of the decade or even that deficits in the fall far from their stated destination. magnitude of $10-$15 billion a year can ROMULO BETANCOURT, PRESIDENT OF VENEZUELA be avoided over the next 2 or 3 years, FEDERAL EMPLOYMENT unless substantial changes are made in Mr. MICHEL. Mr. Speaker, I ask the administration's tax and spending . Mr. MICHEL. Mr. Speaker, I ask unanimous consent that the gentleman programs. The grim implications for unanimous consent that the gentleman from Wisconsin [Mr. SCHADEBERG] may our balance-of-payments position, 'Or from North Dakota [Mr. SHORT] may ex­ extend his remarks ~t this point in the gold stock, and for confidence in the dol­ tend his remarks at this point 1n the RECORD and include extraneous matter. lar of failure of the administration"s fis­ REcoRD and include extraneous matter. The SPEAKER. Is there objection cal gamble are plain to see. What is not The SPEAKER. Is there objection to the request of the gentleman from plain to see is any allowance whatsoever to the request of the gentleman from illinois? for possible failure. · · Dlinois? There was no objection. Almost as disturbing is the extent to There was no objection. Mr. SCHADEBERG. Mr. Speaker, which the concept of gross Government Mr~ SHORT~ Mr. Speaker, I was de­ this week the President will throw out expenditures as a spur to the economy lighted to learn the other day from the the Washington red carpet for Romulo permeates the budget. The Budget Di­ chairman of the Joint Committee on Betancourt, President of Venezuela. We rector has formally testifted that: Reduction of Nonessential Federal Ex­ may expect a great deal of fulsome talk Reduced Federal purchases of goods and penditure's that the Federal employee in the press, over the airwaves, and in services in flScal1964 would, of course, reduce count-which, as of November 1963, was all uninformed circles about Mr. Betan­ private production, employment, profits, and shown to have increased by 145,380 over court's stem anticommunism, and his wages. the figure of 2,352,799 when President great love of the United States. On this basis, increased Federal ex­ Kennedy took omce in 1961-has now I do not like to be a discordant voice penditures are presumably desirable and dropped by 9,870 as of the first half of at this love feast, but there are some spending becomes an end in itself, freed fiscal 1963, ending December 31. questions which the American people from the normal constraints of program This is good news to all interested in would like to have answered before we needs and priorities and of available economy and emciency in our Federal go all out for this dubious visitor. revenues. Government. Even the added explana­ The high-priority question is, What is In the light of such concerns, one is tion that 3,837 of this decrease actually Betancourt after? His former Finance hard pressed to accept the administra­ was a "paper change" instead of an Minister, Dr. Andres German Otero, ac­ tion's assurances that the fiscal year actual reduction in force of live Federal cording to the New York Times, has 1964 budget is "frugal," and "prudent" employees did not dampen too much my stated that Betancourt's regime expects and that its "tight discipline" limits ex­ feeling that perhaps we were at last to obtain at least $1 billion in foreign penditure program "severely." Indeed. headed in the right direction. Appar­ loans, most of it from the United even the use of such words suggests al­ ently the Veterans' Administration pa­ States-natura.Ily. Since the state- most a -rewriting of the English language. tient employees will no longer be included ·ment was made, the Betancourt govern­ When coupled with assurances that def­ in the totals of Federal employment. · ment has tapped practically every avail­ icits are· really assets and surpluses a This, according to figures I have been able lending agency in Washington, and liability, we seem to be dealing no longer keeping in mind, means that instead of the closest total I can obtain is that it CIX--156 2466 CONGRESSIONAL ,RECORD- HOUSE February 18 has pulled down already between · $300 payers' money down the rathole which anti-Communist. Remember . Fidel and $400 m1llion. - is present-day Venezuela. Castro when he came to Washmgton in Is President Kennedy going to be asked It is true that Betancourt is engaged in early 1959 made the public declaration this week to pay up the rest, as the price a contest for power today with the o~cial that he was ''going back to Cuba to of continued Betancourt "friendship"? Communist Party, led by the Machado fight the Communists." He fought them And is·he going to pay it? brothers and Jesus Faria. But we would all right. The grim reflection for American tax­ be naive indeed to leap to the conclusion If Mr. Betancourt has been weak and · payers is that the Venezuela Government that this means that Betancourt is on pliant in his pretended fight against the which Mr. Betancourt and his leftist our side in the overall struggle with official Communist Party, he has been friends overthrew in 1958-the govern­ world communism. Many informed ob­ merciless and stern in his fight against ment of President Marcos Perez Jimenez, servers in Venezuela are convinced that the true anti-Communists in Venezuela. handed down to Mr. Betancourt the Betancourt, who for 5 years was a: func­ Some 3,000 of them are in exile-the legacy of a prosperous, advancing Ven­ tionary of the Communist international, largest number of political exiles in ezuela which, so far from begging hand­ has never ceased to be a Communist Venezuela's history. Hundreds more, in­ outs, actually offered, at the Panama even though, today, he woos Ameri­ cluding the great anti-Communist lead­ conference of 1956, to take the lead in can help by calling himself anti-Commu­ er, Gen. Castro Leon, are in Betan­ launching an organization similar to the nist. Years ago he announced, when court's notorious political prisons. present Alliance for Progress, and to dropping out of the Communist Party, Since he came to power, he has hounded start it off with an initial Venezuela con­ that he proposed to make Venezuela a former President Perez Jimenez, whom tribution of $30 million. As a matter of Communist country by "vaseline"-by President Eisenhower praised in 1954 as fact, former President Perez Jimenez and putting over Marx-Leninism in Vene­ an outstanding ·anti-Communist leader. former President Kubitschev of Brazil zuela without the use of the Communist He has gone to extremes to get Perez were the fathers of the concept of the name. The letters are still extant, in Jimenez extradited to Venezuela, for his Alliance for Progress. an official document of the Venezuela probable death. So gullible are some The First National City Bank, in its Government, which contain this state­ people in this administration that Gen. report of June 1957, 18 months before ment. Perez Jimenez, on December 12, 1962, Betancourt came to power, described the If he was unqualified in his anticom­ was placed in the Dade County jail in financial shape of Venezuela under Perez munism, does it not stand to reason that Miami, and refused a continuance of his Jimenez in -the following words: he would outlaw the Machado-led Com­ bail on the extradition charge, apparent­ External debt, other than the small Export­ munist Party and drive it out of Vene­ ly .on the request of Betancourt and as Import Bank loans, was liquidated a long zuela's political life, just as hal::: the other a condition of his visit. time ago. Internal debt, consisting chiefly nations of Latin America have already This is the way a genuine Venezuela of Government-guaranteed obligations of done? Instead, after temporizing with anti-Communist is treated, while cha­ various autonomous organizations is rela­ the official Communists for 4 years, he meleon Betancourt is lionized. No tively modest. took the half measure last March of is­ wonder we do not get anywhere in our B.efore we hand out any more U.S. suing an edict limiting their political fight against communism in Latin money to prop up the tottery Betancourt activities but not outlawing them. The America. regime, I believe we should pointedly ask top leaders of the official Communist Let us be courteous to Mr. Betancourt Mr. Betancourt what he has done to the Party have never even been imprisoned. this w·eek because he represents Vene­ Venezuela economy that he is now going But even this weak measure appar­ zuela, a country which we admire. But around, hat in hand, begging for loans. ently was not sincere. On January 13, let us· not be taken in by the claptrap Venezuela is· one of the most richly en­ 1963, the Caracas press reported that that we are entertaining a great Vene­ dowed nations in South America. Under Raul Leoni, Betancourt's top lieutenant zuela President. Betancourt's rule in the regime of his predecessor, Perez and comrade from his Communist Party Venezuela has been a fa-ilure. He goes Jimenez, it was a have nation in a days-the man whom Betancourt is now out of office execrated by great· num­ surrounding continent of have nots. supporting for the Presidency of Vene­ bers of the conservative, decent Vene­ What h·as Mr. Betancourt done to this zuela as his successor, gave a press con­ zuelan people. On the eve of his visit, once-prosperous country that it has ference. In this ·conference, Leoni held Venezuela was luridly lighted by the fallen to its present low estate? out the olive branch to the official Com­ :flames of the mob-made conflagration It is not that Mr. Betancourt has suf­ munists. He declared, as reported in that burned the Sears, Roebuck ware­ fered any loss of government revenues. the Caracas daily Ultima Noticias, that house to the ground, that destroyed the As a matter of fact, when he went into the Accion Democratica--Betancourt's plant of the United States Rubber Co., office, he sweetened the pot by requiring party-would be willing to help reha­ that blew up the installations of the the oil companies to pay their taxes a bilitate the Communist Party if it Shell Oil Co., that wrecked the power­ year in advance. Professor Carlos Pietri would discontinue its insurrectional ac­ lines to the Maracaibo oilflelds. He Martinez, the distinguished Venezuelan tivities. This is a tacit admission that comes from a country where law and economist, wrote, at the end of 1961: the whole fight of Betancourt against order has compl_etely broken down un­ The revenues of the last 4 years are the the official Communists is not a fight for der his weak mob-tolerating rule. highest of our history: they reach the ln­ principle but merely a sordid contest for Betancourt is not America's man in credible figure of Bs34 billion. power between two leftist factions. Venezuela. Let us risk no more Ameri­ There is a vast coverup of the sick And he went on to state that these can dollars propping up his incompetent record of misrule of Venezuela under its and Communist-pampering rule. revenues which Betancourt and the pre­ present leftist government. Those who ceding junta collected were more than try to get the facts before the people are half the amount pledged by the United quickly silenced. The American press WITHOUT VISION THE PEOPLE States to underwrite the Alliance for receives nothing but the rosy-hued PERISH Progress for the whole hemisphere. canned propaganda which drips out from We, in only 4 years-- the government offices. Mr. MICHEL. Mr. Speaker, I ask unanimous consent that the gentlewom­ He wrote-- One of the myths about Betancourt which has been zealously spread by his an from New York [Mrs. ST. GEORGE] have squandered more than half that liberal backers in this country is that may extend her remarks at this point in amount. he has brought democracy and civil the REcORD and include extraneous Where has all this money gone? How liberties to Venezuela. Actually, he rules matter. much of it has been used, openly and Venezuela today almost as a police state. The SPEAKER. Is there objection covertly, to pad the government payrolls Since November 1960, when he persuaded to the request of the gentleman from with Betancourt-supporting "don't the Venezuela Congress to grant the Illinois? · works," or to finance Betancourt's far­ power to him, he has ruled Venezuela There was no objection. flung schemes for leftist seizure of power by executive decree. Mrs. ST. GEORGE. Mr. Speaker, the throughout Latin America? We must not be deceived by every following editorial is sobering, to say the Let Mr. Kennedy's visitor answer these foreign politician who comes here, seek­ least. It appears in this morning's Wall questions before we pour any more tax- ing our money, and calling himself Stre ~ t Journal. 1963 CONGRESSIONAL RECORD- HOUSE 2467 The title of the editorial is arresting 900 pages of contusion, a monstrosity hardly responsible for the alarming rise in unem­ and makes us realize that vision is what equaled in the world, and that's only the ployment among the young. beginning ot it. The new progr.am would "The question: If $75 a month 1s enough we lack. not diminish the complexity but add to it. for the Government to pay, then why lm't it Unfortunately,-vision cannot be im­ In basic tax principles is embedded the permitted to private business? Or. to put It proved by automation or any other gim­ basis for a sound alternative to the current another way, if $75 isn't enough 1n private mick. It can only be supplied by the proposals. The administration, to Its credit, employment, why should the Government Almighty, and without it we cannot has perceived that the present tax structure pay less?" survive. 1s an economic depressant, but it has largely As we see young people idled by lack of odd Yes, it is still true that "Without vision falled to pursue the logic of that perception. jobs and out-of-school employment, summer the people perish." Why? Because a sound program would be or otherwise, we might ponder the effect of politically impossible? To most observers legislation which seems to favor Government The editorial follows: the program as it stands looks pretty close to while discriminating against private indus­ TAXATION WITHOUT VISION impossible. Real tax improvement doesn't try. Surely, the youngster who gets only $75 Sometimes the trouble with asking seem­ have to be bad politics. a month from the Government Is no better ingly unanswerable questions is that answers The alternatives to this unimaginative off than the one who gets $75 a month from lie readily at hand. This misfortune, we program exist. What is lacking is the vision the butcher, the baker or the candlestick fear, befell President Kennedy in his latest to see them. maker. discussion of his tax program. "What alternative," he asked his critics, "does anyone have for increasing and main­ THE UNEMPLOYMENT PROBLEM U.N. AGRICULTURAL AID TO taining economic growth? • • •" In his COMMUNIST CUBA view, the only alternative to this specific set Mr. MICHEL. Mr. Speaker, I ask unanimous consent that the gentlewom­ Mr. FASCELL. Mr. Speaker, I ask of tax recommendations is restricted growth unanimous consent to extend my remarks and higher unemployment. an from New York [Mrs. ST. GEORGE] Such categorical positions are character­ may extend her remarks at this point in at this point in the RECORD and include istic of Government pronouncements. Take the REcoRD and include extraneous extraneous matter. 1t or leave it, Congress and the people are matter. The SPEAKER. Is there objection told. or if you change this, then you must to the request of the gentleman from pay such and such a penalty. The SPEAKER. Is there objection Florida? The facts are quite d11ferent. Before get­ to the request of the gentleman from Illinois? There was no objection. ting to alternatives, 1t must be noted that Mr. FASCELL. Mr. Speaker, with this Government deliberately ignores a large There was no objection. the announcement several days ago that element of any sound tax program. That is Mrs. ST. GEORGE. Mr. Speaker, the the United Nations had granted agricul­ the matter of Federal spending and deficits. following excellent editorial appeared in Our otncials seem unable to discover any tural aid to Cuba, considerable protest connection between high spending and high the Evening News, in Newburgh, N.Y., on was voiced in this body. I was among taxes. As !or red ink, they take the Orwel­ the 13th of February. those who protested. lian view that today's deficits equal tomor­ Here once again we see that what is In a statement for the REcoRD on row's surpluses. sauce for the goose is definitely not sauce February 14, page 2230, I voiced my op­ Now if taxes could be considered in this for the gander, in this case the taxpay­ position to the action by the United Na­ vacuum, the case for substantial rate reduc­ ing public. tions would be overpowering. Mr. Kennedy tions in granting aid to Communist puts it well when he says that the U.S. tax In other words, Mr. Speaker, the Gov­ Cuba. This act by the United Nations system was written during wartime (and the ernment can pay a young man $75 a is an extremely unwelcome and discord­ preceding depression) to restrain growth. month, but if I do so I will land in jail, ant action. It puts the U.N. and the Unfortunately !or his argument, it does not or at the very least have a lawsuit on United States at odds over policy toward follow at all that "the most effective thing my hands. Cuba. that can be done at this time 1s our tax The editorial follows: program." I stated at that time that I fully sup­ For this particular program violates many :MINDI!UM EMPLOYMENT ported the investigation of this and re­ of the principles of reasonable taxation. While unemployment grows and many of lated issues which has been undertaken These criteria are well summarized in a new our young people look for out-of-school jobs, in the other body and announced by study by the Tax Foundation, and they are it wouldn't hurt to wonder how long It will Senator CHuRcH. Because of the con­ worth noting even though they wlll scarcely be before a strange legal situation forces tinuing protest of my constituents, I find favor in Washington today. them into the Peace Corps and the Youth repeat that which I previously said: A tax program, for example, should gen­ Conservation Corps, for which a pay standard erally provide enough revenues to cover of $75 a month has been proposed. This is a xnatter in which all of us-the spending-an elementary rule persistently The Knoxvllle (Tenn.) News-Sentinel fig­ Foreign Affairs Committee which has juris­ flouted by this and every other administra­ ures that this works out to about 43 cents diction and the :Members of this House­ tion for the past 30 years. Gr~ted that no an hour for a 40-hour week. It also notes will continue to be vitally interested. It tax system can, strictly speaking, be equi­ that sponsors of such legislation are asking would appear timely to have a complete re­ table, at least an attempt at fairness should for the Government a privilege denied to pri­ assessment of the U.S. positions in the be made. vate industry. specialized programs of the United Nations. Taxation of income from additional effort We might add that politicians and various economists and union leaders hold up their Mr. Speaker, I am sure that all will at rates ranging from 0 to 91 percent, as the this Tax Foundation puts it, does not qualify hands in horror at the thought of such a pay agree with me that body should not as fairness, but in trying to weed out in­ standard for stores, hotels and light industry. undertake an investigation similar in equities the designers of the new proposals The Knoxville newspaper goes on to state, nature and scope to that being conducted have only compounded them. "Under legislation passed 2 years ago the by the other body. The facts are that Furthermore, a sensible structure would minimum legal wage for private employers the official U.S. position, with which I minlm.iZe the tax penalties on business. Not is $1 to $1.15, soon to go up to $1.25. This is am in. agreement was opposed to the because business is something sacrosanct-­ little enough for heads of fam111es but lt un­ granting of the aid, but we obviously did it certainly isn't that in the eyes of oftlcial­ doubtedly operates to deny jobs to thousands not have the votes in the Governing dom-but because it is the specific human of youngsters who are without experience activity which alone can make an economy and aren't considered worth those wages. Council of the Special Fund to prevent prosper. In the words of the foundation "Even with concessions made for students, the action. I am confident that the in­ study, "business Is the major agency for minimum permissible wages stlll are about vestigation in the other body will be organizing to produce-for allocating pro­ twice what would be offered by these two sufficient on this matter. However, if ductive capacity and its use today and for new Government Corps." it is not, then our committee which has undertaking economic growth." Experience indicates that many poorly paid jurisdiction will certainly undertake to The adminlstration's program, with its jobs like packing food sacks and loading cars fill in any gaps. grudging and slow-moving business rate re­ at market or washing automobiles just dis­ ductions coupled with new restrictions, re­ appear when wages get too high. Yet these tains the punitive antienterprlse bias of are jobs which may give a youngster part­ THE 65TH ANNIVERSARY OF THE the thirties. It thus not only contracU~ts time work, on a chance to earn date money. BLOWING UP OF THE BATI'LESHIP principle but files in the face of the Gov­ And they may lead to better jobs for those "MAINE" AND OF THE WAR WITH ernment's own proles8ed desire for economic who are observant and keen. growth. The News-Sentinel says, "Minimum wage SPAIN In addition, a tax system should be sim­ legislation in this area, including the record­ The SPEAKER. Under previous or­ ple. Instead we have a tax code .of over keeping which is required, is immeasurably der of the House, the gentleman from 2468 CONGRESSIONAL RECORD- HOUSE Fe bruary 1~ Illinois [Mr. O'HARA] is recognized for changed the world more drastically than acre for itself or one cent of tribute and 60 minutes. any material cycle of events in history instead poured out its wealth in money, Mr. O'HARA of Illinois. Mr. Speaker, was the war with Spain. It was a war of sweat, toil, and sacrifice for human bet­ I ask unanimous consent to revise and pure idealism. It was the only war in· terment in a spirit of pure idealism. extend my remarks and include extrane­ history fought entirely, as far as the LAW OF POLITICAL GRAVITATION ous matter. United States was concerned, by volun­ The women of 1898 were not ashamed The SPEAKER. Is there objection teers. It was fought on land and sea of the homemade dresses they wore. The to the request of the gentleman from in the Pacific and the Atlantic. On land men of 1898 were not ashamed of their Illinois? it was fought by green troops, inade­ simple honest faith in their country, There was no objection. quately equipped, with food unfit for .their idealism, and their indoctrination Mr. O'HARA of Illinois. Mr. Speaker, human consumption and practically no with good old-fashioned patriotism. this is the annual occasion on which I medicine. Against these staggering odds, reach out with the hope, and somehow the war on land and sea in the Pacific No generation can ~ reconstructed on the faith, that I am talking to history. and the Atlantic was fought and won in the customs, the conditions and the No greater disservice ever has been 7% months. mores of a later generation. The his­ done the image of our country in our own No war in the history of the world in torians who find permanent place in the eyes, as well as the eyes of the world, comparable time accomplished so much world's literature first have reached ma­ as that rendered by some modern writ­ for freedom and mankind. It started a turity in a realization of this eternal ers in their treatment of the war with chain of dynamic events that changed truth. Spain, which was triggered by the blow­ the political face of the universe and The law of gravitation has a political ing up of the battleship Maine in the carried every human being in the world as well as physical impact. It is mani­ harbor of Savana 65 years ago on Friday forward in his eternal quest for a higher fest in the rise and fall of empires, of last. plateau of human contentment and dig­ dynasties, of world powers if we read the They misinterpret the motivations and nity. histories of those departed eras with the the events of an earlier period of old­ It was a war of idealism. The "Spirit guiding thought to our interpretation fashioned American patriotism and a of 1898" was an expression of old-fash­ that all life is change and the :flower of war of pure idealism. I have no per­ spring has the destiny ahead of develop­ ioned American patriotism, of faith in ment into the fruit or vegetable of the sonal quarrel with them, any more than God and country. It was a rededic~tion I have with fine and beautiful ladies who of all the American people, in cities and late summer or the autumn. In no lesser - conform to changing dress vogues even hamlets and on the farms, to the pledge measurement young nations, the prod­ when the current styles in their indi­ of the signers of the Declaration of In­ ucts of ever-changing conditions, are vidual cases might not enhance their own dependence of their ''lives and fortunes drawn on to their destinies by the pull type of beauty. and sacred honor." It was proclaimed of the law of a political gravitation that In 1898 most American women were and waged and terminated in the finest as yet we have not charted and recog­ their own dressmakers. They had spirit of self-abnegation ever shown in nize only in its dim outlines. neither the money nor the desire to buy all recorded history. On my study missions to Africa I sense in the faces and the· voices, not only of store clothes. In most cases they had VANQUISHED SPAIN HELPED TO ITS FEET a feminine pride in designing _and sew­ those of education and training in lead­ ing together their own gowns, and most What nation in· all history has ac­ ership, but of the unlettered masses as mothers made the dresses of their chil­ corded to a crushed and beaten foe, well, clear evidence of a pull of political dren and with the sons down to their stripped forever of its once-proud world gravitation somewhat comparable, I first short trousers on their graduation power, its day of glory ended and poverty fancy, to that experienced by our early from kilts. at home eating at its vitals, the compas­ Americans. No one in his right . mind would look sion that the United States showed to In 1898 the term "manifest destiny" to a well-dressed American woman of Spain? Instead of demanding war in­ was still in popular usage. In this gen­ 1963, and most American women do demnity to cover the cost of the war that eration it is a term in disfavor. In 1963, we had won, the Unitel1Sumption it or not, De Gaulle's position· is giving zuela, can hardly be ignored. . on the east coast has been 5.6 million many U.S. workers a reprieve from the '"The threat of 'Castroism' hanging over barrels less than was anticipated by the unemployment lines. one Latin American country, and the recur­ Bureau of Mines in their demand fore­ The trouble is. that while all our front rent riots by the Communist elements there cast on which quotas were established runners are screaming about De Gauue•s seem able to panic the U.S. Government last April. while it remains unconcerned about the grand design they forget that we have a critical plight of its own citizens. The Department of Interior press re­ grand design of our qwn which includes "The report reaches the strange ccmclusion lease announcing- the new increase ·such catchy words as "'EurAmerica," that 'The adequacy of resources 1s not stated that there was a reduction of "Atlantie Union," "GATI'/' "oil imports," strictly a national problem-is not one for 4 million barrels in stocks as of De­ and so forth. . which one looks for an answer within the cember 31, and that the supply of do­ One wonders whether we are not in ·geographical limits of the United States.' mestic residual for the east coast this about the. same fix as the kid caught "This means that, in the opinion of the year had p:roved to be approximately 10 OEP Director, America need no longer be with his hand in the cookie jar. concerned with developing and strengthen­ million barrels less than was anticipated I refuse to believe as of today that the ing its own resources, and can only be by the Bureau of Mines. President of the United States will ignore interpreted as meaning that import restric­ However, the Geological Survey, or set aside without consideration this tions on crude ·oil are also· considered un­ which compiles such figures for the De­ plea of 102 Members of the House in this necessary. partment of Iriterior, reports that ship­ serious matter posed by the McDermott "If this revolutionary thinking ls accepted ments of domestic residual from the gulf division. by the President, the ultimate end can only coast for the period AP.ril through No­ mean far greater damage to both the Amer­ I received the following correspond­ ican coal and petroleum industries. De­ vember declined 4,442',000 barrels and ence which I believe to be of interest to pendence of our economy, as well a& our na­ the Bureau of Mines reports that re­ all Members of the House: tional sec'urity, on the tenuous avanabllity finery output of domestic residual on the WASHINGTON, D.C., of fuel from foreign countries, ln view of· the eastern seaboard amounted to 31.7 mil­ February 14, 1963. current situation ln the Caribbean, with lion barrels April through October for Hon. JoHN H. DENT, ·Russia tightening its militaey hold on Cuba 1962, the latest period available, as com­ House Office Building, ·and Venezuela constantly threatened by pared with 32 million in the same period Washington, D.C.: . . Communist riots and unrest, could · be Your concern, along with that of 101 of disastrous. of 1961. Thus, there was an actual de­ your colleagues, regarding excessive importa­ "The domestic fuels industries have kept cline of only about 4.5 million barrels tion of foreign residual on, and the need to the Congress advised over the years and there in domestic supply in the first. 8 months, maintain reasonable import controls on such have been many of the members of Con­ ·compared to a year ago. '11lis means on, was clearly shown by your signing the gress who have expressed. deep concern that that there ·was a net increase In reSidual letter to the President. of February 7, 1963. the welfare of the domestic fuels industries available to the east coast of about 12.5 In spite of your recommendation, the Of­ · was importan-t to the strength of' th« econ­ million barrels during the first a months fice of Emergency Planning recommended to omy of this Nation., A& has. been. so often of this quota year. the President on February 13, 1963, the fur­ true in the history of this Nation. matters ther relaxing of all controls on foreign re­ of this nature of such vital coneern to. so Even in the face of these facts, the sidual on. The report .also declared that . great a part of the American people,. may Department of Interior is now adding the Nation did not need to depend on. nat­ have to be finally settled bi the Congress. an additional 6.5 million barrels during ural resources within its own borders for .. The conclusions of the OEP Director are the next 6(), ·days. Under the already its security, thus implying that import lim­ completely contrary to findings by tlie Select existing -import. levels,. quotas for this its on crude oil also are unnecessary. Committee on Small Business of the House · quarter were· 37 ¥:a percent of the -year's We have sent you a copy of· our statement of Representatives. which. held extensive total, or 770.830 barrels per day. This expressing consternation over this action. hearing& on the question of on Imports and A statement. by you on: this. matter is recommended j;ust last month that 'the im- enormous increase, when added to ex­ urgent to give the President your opinion . port quotas of residual fuel oU to be used isting quotas, means that import levels on these recommendations. We are also . solely as. fuel sllould be fixed at a level no for the. next 2 months will reach the hopeful you will feel it. proper to. express higher than the total of such imports in 1961, astronomical figure of 878,000 barrels your views on the floor of the House when so as to reduce the threat to national se­ per day. it reconvenes Monday. This 1s a critical curity wlli~h residual oil imports now create.' 'Dl1& is by far the highest level of emergency for all domestic fUels. "It. should be recalled that; this conclusion import& ever recorded under the oil im­ JOSEPH E. MOODY, was- reached by the Small Business Commit­ President. tee following. e-xtensive hearings b;,; a sub­ port oontrol progxam. The previous committee :headed. by Representative ToM: record wu 819,000 barrels daily WASHINGTON,. D.C., February 13.-President STEED, of Oklahoma." reached fo:r 1 month in January of 1962. Joseph E. Moody, of National Coal Policy This. further severe blow to the domes­ Conference today issued the following state­ Mr. Speaker, the recommendati011 of tic coal industry came despite the fact ment: the OEC Director on top of the unwar­ that the Department of Interior officials •"The recommendations of the Office of ranted increase 1n residual oil import Emergency Planning Director Edward Mc­ quotas for the remainder of this quarter admit no shortage of residual oil now Dermott, if accepted by the President, will announced recently represents another exists on the east coast. A survey made constitute the most serious blow that this severe blow to the already seriously dam­ this week by NCPC among trade sources administration has so far dealt the men and aged coal industry. in New York.-New England area revealed their famiUes of the coal and related that residual imports are selling well industries. The interest of hundreds of The total increase-17, _000 barrels per thousands of American citizens were brushed. day, for the full year to be available in below posted prices and that oil is in callously aBide for purposes of political the next 2 months-is more than 6.5 mil­ .Plentiful supply. expediency. lion ban-e-Is, or the equivalent of 1.5 Yet, in face of adequate supplies and "It is difficult to reconcile this report with million additional tons of coal to be dis­ a stable price, the import quota for the repeated statements of the President ex­ residual oil was again increased-the pressing his concern for the domestic fuel placed in the next 2 months. industries, especially coal. If these recom­ "This lost coal production would have third such increase since this adminis­ mendations are carried out it can mean dis­ provided jobs for more than 600 U.S. tration assumed office 2 years ago and aster in the economies of West Virginia, Vir­ coal miners for a full year, or 3,6.00 min­ raising imports to 190 million barrels for ginia, Kentucky, Pennsylvania, Indiana, ers during the next 2 months,'' Mr. the year as compared to 154 million bar­ IDinois and other States. Moody said. These destroyed miners' rels of allowable imports in 1960. "It is our understanding that the report jobs can now be added to the- 17,000 full­ There would see~ to be no other con­ ls the same except for some word changes clusion to draw than that under this as it was in September 1962. It recom­ time jobs already lost each year to im- mends that the import program on residual . ported residual oil, which now displaees administration the domestic coal indus­ oil be gradually abandoned and further more than 45 million tons of U.S. coal try is considered expendable. serves notice the same is in store for- the rest annually. ·Frankly, I campaigned with confidence of the import program on crude oil and Today's action was taken at the same and so stated publicly that if elected, other products. time that a spokesman for the admin- President Kennedy would help the coal 1969 CONGRESSIONAL RECORD- HOUSE ' 2473 regions. I still believe he is sincerely Fortunately, the free press in the U.N. AGRICULTURAL AID TO 0"9'BA trying io do so. United States reports the real state of Mr. BRUCE. .Mr. Speaker, .I ask I disagree with those :M:eJ:D.bers of the affairs. I was particularly impressed by unanimous consent that the gentleman administration who .believe that relief, an ·editorial in this week's Life maga­ from lllinois [Mr. RuMSFELD] may ex­ retraining, area development, . public· zine, the issue of Ferbuary 22. As Life tend his remarks at this point in the works or any other substitutes for a job says, Romulo Betancourt "is a most wel­ come guest." I include Life's perceptive RECORD and include extraneous matter. can ever displace the need for the dignity The SPEAKER pro tempore. Is there that comes from a job that earns an hon­ editorial at this point in the RECORD: objection to the request of the gentleman est living for an honest day•s work. This week Kennedy welcomes to Wash­ ington quite a different sort of Latin Ameri­ from Indiana? The children of a working father, the can from Fidel Castro. In fact he is Castro's There was no objection. wife of a working husband are entirely number one target, the President of Vene­ Mr. RUMSFELD. Mr. Speaker, the di1ferent people in the eyes of their loved zuela, Romulo Betancourt. Five years ago recent announcement that the United ones, the eyes of their neighbors and in in Venezuela the Vice President of the Nations has decided to grant agricultural the community in which they live, than United States and his wife were spat on by aid to the Castro regime is unbelievable. the unemployed, regardless of how an angry mob. The Communists who led Equally shocking is the statement of Paul worthy a cause his job was sacrificed to that mob found plenty of readymade tinder, compounded of jealousy, neglect and hatred G. Hoffman, Managing Director for the or for. of the recent 10-year Perez Jimenez dicta­ United Nations Special Fund which will torship. Last week Venezuelan Communists supply the $1,500,000 of aid, where he were st111 trying to mobilize a following with says that not one American dollar will WELCOME PRESIDENT ROMULO acts of terrorism. But the masses no longer be used in this project. It is simply not BETANCOURT OF VENEZUELA respond. Of many reasons for this impor­ correct to suggest that U.S. dollars will tant change, not the least is Betancourt. not be used when it is common knowl­ The SPEAKER pro tempore. Under Betancourt spent most of his ea.rly adult previous order of the House, the gentle­ yea.rs in jail, exile or the underground while edge that the United States provides 40 man from New York [Mr. RYAN] is rec­ Venezuela was run by military dictators. percent of the Special Fund's expenses. ognized for 5 minutes. He nevertheless helped to found the first The American people will not and should Mr. RYAN of New York. Mr. Speaker, big modern political party in Venezuela, the not accept this double talk. The United Accion Democratica, whose peasants and States is paying for a major portion of last week President Kennedy told the workers made Betancourt president ln the Nation at his press conference: the support of the United Nations. The free election of 1958. Since then he ha:s United States will be making a contribu­ I rega.M Latin .America as the most critical given Venezuela the longest and most suc­ tion to this project whether direct or in­ a.rea in the world today. cessful constitutional government 1n its 142- yea.r-old history. A yea.r hence he has a direct, and this is intolerable. Certainly the presence of Soviet troops good chance to fu11l111 his great ambition of To grant any amount of aid to the in Cuba is cause for grave concern. But turning over his omce to a !reely elected suc­ Communist nation that has confiscated the President,- undoubtedly, also is pre­ cessor who can consolidate Venezuela's more than $1 billion worth of American occupied with the vast Latin American ftedgling democracy. property and has not paid a cent in continent beyond the island of Cuba. Like. other Latin American countries, compensation is utterly unthinkable. Venezuela still has problems of poverty and Seething with social unrest and political ignorance. Unlike most, being the world's Mr. Speaker, while the subject of Cuba instability, many of the Latin American No. 1 oil exporter~ Venezuela has the money is under discussion, I wish to go on rec­ Republics .are prey to Communist sub­ to tackle them. But only since Betancourt ord as being in complete disagreement version. Meanwhile., the Alliance for has it shown the political guts and imagi­ with the theory now apparently in vogue Progress has been disappointingly slow nation to try. His government has approxi­ in administration circles that no one but to alleviate .those conditions w.bi.ch bar mately doubled the number of schools and the administration should discuss Cuba. the great masses of Latin Americans from stude.nts in 6 yea.rs, and raised the literacy In these days of managed news, I sin­ rate around 60 to over 70 percent.. It has participation in the fruits of Western tried seriously to improve the lot of the cerely believe that it is the responsibility civilization. campesinos with free land, better housing, and duty of each citizen, and, particu­ Tomorrow Washington welcomes a loans and instructions. And it has helped larly, each Member of Congress, to con­ gallant man from Venezuela, President the underprivileged without alienating the structively discuss and, if necessary, as Romulo Betancourt. President Betan­ rapidly expanding business class or the st111- in this case. dare to criticize the decisions court has been fighting to bring to his potent army. Betancourt's stand against being made and carried out in our State Castroism has been so courageous that the nation the goals of th-e Alli~nce for Prog­ danger of a millta.ry coup, despite Commu­ Department by the administration. ress-social justice in a framework of nist provocation, grows smaller by the day. These men are not omniscient; their political democracy. One o! South America's most volatile coun­ decisions are not sacrosanct. In his struggle against tyranny Betan­ tries has proved that democracy, given a This Nation is one of representative court has known the terrors of the chance, can be made to work. government, and as one Representative, hunted man, separation from his loved That, of course, is the whole aim of the I object to our financing anti-American ones, the bitterness of exile. As Presi­ Alliance for Progress. The reason it is 1n policies. If this means that the Congress trouble, according to one expert group, is must cut off support for the Special dent of Venezuela, he has continued to that It has "lapsed into a unilateral U.S. endure great trials and personal sacrifice. checkwriting program." But Venezuelan Fund, then this must be done. All of us remember Trujillo's heinous at­ leaders take Its two-way nature seriously. I have voiced my support of the tempt to assassinate him. Hardly a week They get some $100 m1llion in Alliance loans United Nations in the past, as have the goes by without a report of some effort to for housing and rural improvement, but their vast majority of Americans, However, own much larger contribution and initiative this U.N. action demands a serious re­ destroy confidence in Venezuela's demo­ a.re what gives these programs life. Once cratic government. Sabotage of the oil considered the backw.ash of Spanish Amer­ appraisal of our role in the U.N. My wells, bombings of United States and ica, Venezuela 1s discovering it has many deep concern has been voiced to the Venezuelan business establishments, the assets that can enable it to outgrow its de­ administration, and 1 sincerely hope that theft of five art masterpieces, and that pendence on oil, not least a mixed and lively other Members of Congress will join in population relatively unencumbered by "feu­ expressing their disapproval. Cuba to­ latest idiocy-the hijacking of a Vene­ dal tradition. It also has Romulo Betan­ zuelan oil tanker on the high seas-all court. As representative of a continent in day is a center for Communist subversive attest to the Castro-Communist deter­ which hope, progress arid U.S. policy are very activities throughout the Western Hemi­ mination to wreck democratic progress in much in doubt, he is a most welcome guest. sphere. Our every action must be to Venezuela. weaken communism in Cuba, not Mr. Speaker, I want to join in the wel­ strengthen it. To Communist subversive activities come to President Betancourt, a coura­ are added constant efforts to discredit geous leader in the struggle for democ­ Betancourt on the part of the despots racy. I am confident that even in his who formerly ran Venezuela as their brief visit with us he will detect the great A REAPPRAISAL OF THE ALLIANCE personal flef. Unhappily, we have heard admiration of the American people for FOR PROGRESS some of their propaganda repeated in his contribution to the cause of freedom Mr. BRUCE. Mr. Speaker, I ask this Chamber. and democracy. unanimous consent that the gentleman 2474 CONGRESSIONAL RECORD-· HOUSE February 1B from New York [Mr. LINDSAY] may -ex­ "What is needed is a . comprehensive reap­ States has changed its policy so as to put tend his remarks at this point in the praisal, not of the broad objectives of the primary stress on improvement in the gen­ RECORD and include extraneous matter. Alliance for Progress, but of the policies and eral .business climate as a prerequisite for actions which will best achieve these objec­ social development and reform. It must be The SPEAKER pro tempore. Is there tives. The first year's operation of the made clear that U.S. policy in this hemi­ objection to the request of the gentleman Alliance saw heavy emphasis placed on gov­ sphere is based on the need for rapid eco­ from Indiana?· ernment planning, government-to-govern­ nomic growth and on the belief, confirmed There was no objection. ment loans and grants, income redistribution by all available evidence, that this can be Mr. LINDSAY. Mr. Speaker, I am through tax and land reform, public housing, achieved within a reasonably fr!:le political deeply concerned over the future of the and other social welfare measures. Many of framework only if private capital is given the Alliance for Progress. So far there has these steps were commendable. Yet they opportunity to work in a favorable environ­ were not in most cases accompanied by ef­ ment. This means that our policies should been very little progress, and too little forts to push through economic reforms be consistent throughout the area and should leadership from the United States. The which would encourage private initiative and discourage tendencies toward nationaliza­ program cannot be allowed to continue enterprise. The continued outflow of pri­ tion of industries and encourage setting up to :flounder. The future of the Western vate funds from Latin America is sufficient explicit rules which provide for truly reason­ Hemisphere is at stake. proof of the critical character of the current able indemnification where nationalization I am pleased to bring to the attention situation. has taken place. of my colleagues a memorandum pre­ "Many countries in Latin America need so­ "In addition we should discourage policies pared by three members of the Com­ cial reforms as well as measures to provide which tend to distort normal economic rela­ merce Committee for the Alliance for greater equality of opportunity. However, tionshipS-policies leading to overvalued, these broad objectives cannot be achieved and multivalued exchange systems, complex Progress-COMAP: Emilio G. Collado, without a more rapid rate of economic ad­ import controls with high and highly vari­ vice president and director, Standard vance than now is in prospect. And rapid able tariffs, quotas and other forms of trade Oil Co. of New Jersey; David Rocke­ economic growth cannot be achieved without restriction, price controls and highly unpre­ feller, president, the Chase Manhattan greater emphasis on the private sector. The dictable budgetary practice. In short, Bank; and Walter B. Wriston, executive fact is that some 80 percent of Latin Amer­ emphasis should be placed on creating an vice president, First National City Bank. ica's national income is today generated by atmosphere in which private business plan. The authors call for a comprehensive private activities. Consequently, the Al­ ning can go on without undue concern about reappraisal of the policies and actions liance for Progress can succeed if-and only possible changes in the rules of the game. if-it builds upon this base and places far Countries following these policies should be that will help the Alliance for Progress greater emphasis on the encouragement of given tangible and active support. to achieve its basic objectives. They private initiative and investment, both local "To make this position clear and unam­ urge that increased emphasis be placed and foreign. biguous, it would be necessary for the Presi­ on the "encouragement of private initia­ "To reorient the Alliance for Progress in a dent to proclaim it in a major address in tive and investment, both local and for­ direction which offers promise of achieving which he not only spells out the rationale eign." It is their further belief that: its objections involves difficult and sweeping behind the new policy, but also indicates The United States should concentrate its economic reforms. CUrrencies need to be the tools available to the United States to economic aid program in countries that show stabilized through measures to bring govern­ help make it effective. The most important the greatest inclination to adopt measures ment budgets under control and to avoid in­ of these tools would be the U.S. foreign to improve the investment climate and with­ flationary increases in the supply of money aid program. hold aid from others until satisfactory per­ and credit. Efforts along these lines could "A second requirement concerns a change formance has been demonstrated. lead to the removal of the many exchange in the criteria for granting aid. U.S. for­ controls which still remain and which in­ eign aid policy is a branch of U.S. foreign This is an important study and I hope hibit economic growth in many nations. At policy, which should be directed toward that it receives the widest possible at­ the same time, governments should act to achieving specific foreign policy goals. By tention. remove the network of other controls which and large it has not been effectively used for The text of the statement follows: restrict enterprise and sustain local, high­ this purpose in Latin America. In its sim­ cost monopolies. Economic growth, and the' plest terms, our goal in Latin America should A REAPPRAISAL OF THE ALLIANCE FOR PROGRESS real benefits to all participants in the com·­ be to help nat~~ns of the a~ea grow econom-" Last spring, the Commerce Committee for munity which can accrue from growth, are ically while they retain internal political the Alliance for Progress ( COMAP) was maximized in an atmosphere of political and freedom, and _thus remain part of the West­ launched with a view to seeking ways in economic stability under which competitive er~ community of nations. Without eco­ which American business could further the private enterprise can thrive. nomic growth the other goals will be much Alliance. A few days ago, the Chairman of "In a very real sens·e, the Alliance for more difficult-if not impossible-to achieve. the Committee-J. Peter Grace-submitted Progress is concerned with the age-old prob­ In order to get growth-which comes first a report to the Commerce Department and _ lem of trying to bake a bigger pie and divide both in time and in !elation to goals in­ to other agencies, recommending certain the slices more evenly at the same time. The volving redistribution of income-capital is legislative proposals relating to the Alliance. emphasis to date has been mostly on the side needed. Most of this must come from in­ The following memorandum sets out the ob­ of slicing the pie. While such efforts may be tet:nal sources. Thus, foreign aid should be servations and conclusions of three members desirable in the long run, the immediate ef­ used as an inducement to nations to adopt of COMAP who, while agreeing with many fect has been to shrink the potential size of policies which will improve the business cli­ of the points made in the Grace report feel the pie. Experience around the world shows mate and thereby increase domestic savings that there are certain aspects of the problem clearly that the national welfare is better and investments. The United States should which need a somewhat different emphasis. served by far through policies Which enlarge concentrate its economic aid program in For this reason we feel justified in submit­ the ·entire pie. · countries that show the greatest inclination ting a separate commentary. "To accelerate economic advance in Latin to adopt measures to improve the investment "We have become increasingly concerned America, efforts on many fronts will be re­ climate, and withhold aid from others until lest the Alliance for Progress fail to achieve quired. Governments have important roles satisfactory performance has been demon­ its objectives for lack of a proper focus for to play-in such areas as schools, health, strated. its activities. farm extension services .and roads. How~ver, "The extent to which this policy would "As one illustration, the initial concept of the overriding ne ds ar e for _an increased flow differ from the present one in Latin America COMAP's role appears to have been directed of private capital from both local and for­ can be seen by indicating what it would not at finding ways to meet t~e Punta del Este eign sources and_for a significant and con­ involve: program of $300 mlllion a year of net new tinuing improvement in the efficiency with "1. Unless there are overpcwering politi­ U.S. private investment in Latin America by which all resources, including most im­ cal considerations, the United States would devising short-range measures on the part of portantly human resources, are used. not lend money or make grants in countries the United States to encourage such invest­ "For these reasons, we urge that U.S. which persist in policies which discourage ment. If such measures would really get policies be reoriented to place far greater p rivate investment. the Alliance off the ground, they might be "2. The United States would not grant justified. But we are disturbed by the feel­ emphasis on the encouragement of private balance-of-payments loans of the bail-out ing that even if such measures were taken, enterprise and investment. What has been variety though it should cooperate with the and were successful in inducing an expanded done to date along these lines is simply not IMF on constructive balance-of-payments flow of U.S. investments into Latin America, enough. The encouragement of private en­ loans and stabilization programs. the basic problem of making the area attrac­ terprise, local and foreign, must become the "3. The United States would not provide tive to local savers and investors would re­ main thrust of the Alliance. This would in­ foreign aid .in such a way as to finance the main. Indeed, such a program could do volve two major changes in U.S. policy. expropriation of privately owned companies positive harm by making local governments "The first requirement· is that the govern­ in any field of endeavor. feel even less urgency than they do now for ments-and, as far as possible, the people­ "On the positive· side,· the United States achieving a proper investment climate. of Latin America know that the United would seek opportunities to get individual 1963 CONGRESSIONAL. RECORD- HOUSE 2475. countries started toward rapid .growth. As­ Mr. Lippmann's articl~ is timely and there were no offensive weapons in CUba. sistance on a relatively large scale would be I eommend it 1io the attention of the This is the source of the infection which will focused ln a few countries that appeared Members of tne H-ouse and senate: have to be removed it full confidence is to be most .likely to carry out measures .needed to restored. encourage investments and establish the O.N THE CtmAN Qo'EsTIO.N TODAY Having said this, I would say that there i~ widest area of economic freedom. (By Walter Lippmann) no reason to 'doubt the thoroughness or the "Nowhere in the whole broad range of cur­ In the past week the· administration has reUability of our photogmphic surve1llance of rent economic problems is there ·one mor~ gone· to extraordinary lengths to win the Cuba and of the sea around it. The situation compellingly significant for the United country's confidence in the reliability of its is extraordinary. We are depending on be­ States than that of supporting the economic information about the military situation in ing able to fly daily photographic reconnais­ and social advance of our neighbors to the Cuba. Since the October confrontation there sance planes at high and low altitude. In south. can, of course, be no lack of confidence in CUba there are a large number of the latest "We are persuaded that the most im­ the President's _courage and determination to antiaircraft weapons manned by Soviet portant way in which the United States can protect American interests once the facts of soldiers. help is by exporting the ideas implicit in a a threat are established. We may say, how come? Up to the pres­ free economy. Certainly, money or goods The crisis of confidence originates in what ent-knock on wood-the Soviet antiaircraft alone will not do the job. Free enterprise is gunners are not attacking our reconnaissance happened in the 6 weeks before the October planes. They must be under orders from :the basis of our own growth, and it provided confrontation. During the month of Sep­ the framework on which our social and Moscow where it is well known that if the tember and into October the administration planes were attacked there would be an im­ political institutions, imperfect as they still was insisting that the Soviet Union had not are, have evolved. We feel certain that free brought offensive weapons into Cuba. Sen­ mediate reprisal. enterprise can be the basis of growth in Latin But where does this leave us? It leaves us ator KEATING was insisting that they had. with a fragile revised version of the original America-indeed, that there is no known When he was found to have been right, there alternative that still permits a substantial Khrushchev-Kennedy agreement. In the key measure of individual freedom. occurred a loss of confidence in the admin­ letter of October 27, President Kennedy ac­ "We also beli-eve, however, that to en­ istration's intelligence services which it is cepted the following terms of settlement: still struggling to repair. cour~e such an evolution in Latin America The U.S.S.R. would remove offensive weapon the United States must change its role­ With others, I have had firsthand experi­ systems under United Nations observation from one that emphasizes short run ence which enables me to understand how and supervision. Wh-en this was done, the economic palliatives combined with recom­ difficult it is to restore confidence once it United States would. end the quarantine and mendations for sweeping social and economic has been shaken. On two occasions it was would give assurances against an invasion of reforms to one that places the greatest explained to me by high officials how re­ Cuba. The U.S.S.R. removed the missiles, emphasis on the longer-run goals of creat­ liable was our photographic surveillance of and the United States of America ended the ing .an environment in which freedom of the the island, and how certainly we could de­ quarantine. But Castro would not permit · marketplace is recognized for what it is, a tect the exact nature of the weapons being United Nations observers to come to Cuba, ~ajor pillar of free and prosperous societies. installed in Cuba. These private explana­ and consequently the United States would "EMILIO G. COLLADO, tions came after the President had said give no assurances against invasion. "Vice President and Director, categorically in his press conference of Sep­ What we have now is a substitute lor the a standard Oil Co. oj New Jersey. tember 13 that "these new shipments do not original agreement. We are able to car.ry on "DAVm ROCKEFELLER, constitute a serious threat to any other part photographic reconnaissance without inter­ "President, of the hexnisphere." Some 2 weeks later, on ference from the Soviet antiaircraft weapons. "The Chase Manhattan Bank. October 3, the Under Secretary of State, Mr. And Cuba is getting, in lieu of a U .8. guar­ "WALTER B. WRISTON, Ball, gave to a congressional committee a antee against invasion, a buildup of its de­ "Executive Vice Pre8ident, summary of the intell1gence information fensive capabilities. .Both Moscow and "First National City Bank!' which came !rom the CIA. The point of the Washington know that this strange working summary was that there were no offensive arrangement cannot be upset deliberately weapons ln Cuba. without bringing on a much mightier con­ THE CUBAN QUESTION But in fact there were. A week later, on frontation than that of last October. October 10, Senator KEATING insisted that Mr. BRUCE. Mr. Speaker, I ask there were intermediate range missiles in unanimous consent that the gentleman Cuba, and 5 days later the President re­ from New York [Mr. LINDSAY] may ex­ ceived the photographs which confirmed the CLOSE RELATIONSHIP BETWEEN tend his remarks at this point in the charge. REPRESENTATIVES AND PUBLISH­ RECORD and include extraneous matter. This Is how Senator KEATING won the right ERS OF WEEKLY PAPERS The SPEAKER pro tempore. Is there to be listened to, and this is why the ad­ ministration 4as now, belatedly, made the Mr. EDMONDSON. Mr. Speaker, I objection to the request of the gentleman right move, which is to arrange for consulta­ ask unanimous consent that the gentle­ from Indiana? tion and an exchange of information between man from Idaho [Mr. HARDING] may ex­ Th-ere was no obj ecticn. Senator KEATING and the CIA. tend his remarks at this point in the Mr. LINDSAY. Mr. Speaker, because This .should put an end to the unse-emly RECORD and include extraneous matter. of its importance I am today placing in controversy about who is telling the truth The SPEAKER pro tempore. Is there the RECORD a column by Walter Lipp­ between a Senator of the United States and objection to the request of the gentleman mann entitled "On the CUban Question the President of the United States. But I am from Oklahoma? Today.'' In the column Mr. Lippmann not sure it will repair altogether the dam­ age done to public confidence by the mis­ There was no objection. puts down his reasons for believing that leading information given out in September Mr. HARDING. Mr. Speaker, one of our distinguished colleague, the junior and October. The administration may well the privileges of serving a congressional Senator from New York, Senator KEAT­ have also to make a full explanation of what district in the Nation's Capital is the ING, has won the right to be listened to. went wrong in September and early October. close relationship that a Congressman Mr. Lippmann states in his article that Examining the remarkable intelUgence has with the publishers of weekly papers after too long a delay the administration bl'iefing by Mr. John Hughes of the Defense in his district. finally did what it should have done in Department, I find myself quite convinced During the past couple of years I have the beginning, which was to arrange that our photographic intelligence is now re­ liable. But I am struck by the fact that come to know and to admire the publish­ for consultation· and an exchange of in­ there was a blank space in Mr. Hughes' tes­ er of a small newspaper. in Shoshone, formation between Senator KEATING and timony for the period from September 5 to Idaho-Herb Love. the CIA. Mr. Lippmann goes on and October 14. This man can best be described by the states that no matter what the consulta­ Photographs taken on August 29 of the San inscription on a plaque recently pre­ tion and exchange lead to he is not sure Cristobal area and on September 5 at Sagua sented to him by the Idaho Press Asso­ it will repalr altogether the damage la Grande show positively that no missile ciation which bestowed upon him the done to public confidence by the mis­ sites had been built. The next photograph re­ ferred to by Mr. Hughes is that of October 14. Master Editor-Publisher Award which is leading information given ou~by the the llighest honor the weekly press can administration-in September and Octo­ It shows interm-ediate range missile sites be­ ing erected. This is the photograph which bestow upon one of its members. ber. The inscription r-eads: The administration may well have also to precipitated the international crisis. make a fun explanation of what went wrong Where, we are bound to ask, was our pho­ He has worked hard, lived honestly, in September and ea.rlJ October- tographic intelligence between September 5 thought soundly, influenced unselfishly, and and October 14? That was when the ad· is entitled to the highest honor in his pro­ States Mr. Lippmann. ministration was· telling the country that fession. 2476 CONGRESSIONAL RECORD- HOUSE February 18 Mr. Speaker, I would like to include GENERAL - EXCELLENCB Revenue sources provided by the bill at this point in the RECORD the account The Lincoln County Journal was awarded include proceeds from entrance, admis­ of the awarding of this honor to Herb first place for general excellence in its circu­ sion, and other recreation user fees or Love as it is reported in the Lincoln · lation bracket at the press assoclatton•s an­ charges established by the President for nual convention in Boise last weekend. County Journal of January 17, 1963. The Journal has now won the top award Federal land and water areas; proceeds This excellent county paper is now for 4 years in succession. from the sale of Federal surplus real being published by a young and ener­ Contest judges were publishers and press property; and the proceeds of the 4- getic newspaperman, John George, who association managers in Arizona, Montana, cent-per-gallon tax on gasoline and gives every indication of also becoming Nevada, and Washington. special motor fuels used in motorboats. one of Idaho's outstanding weekly pub­ While the Treasury will hold a portion lishers. of these revenues for acquisition of addi­ The above-mentioned follows: A BILL TO ESTABLISH A LAND AND tional lands at Federal and federally as­ WATER CONSERVATION FUND IDAHO'S HIGHEST JOURNALISM HONOR AWARDED sisted projects, the greater portion would TO EDITOR FROM SHOSHONE Mr. EDMONDSON. Mr. Speaker, I be used to help finance State and Federal The highest honor that the Idaho Press ask unanimous consent that the gentle­ programs. Association can bestow on one of its mem­ man from Rhode Island [Mr. ST GER­ For the purpose of assuring the financ­ bers, the Master Editor-Publisher Award, MAIN] may extend his remarks at this ing of the program when the States are was presented to Herb. H. Love, Saturday point in the RECORD and include extrane­ prepared for full participation, advance night. The award crowns a journalistic ous matter. appropriations of $60 million a year for career of 23 years. The SPEAKER pro tempore. Is there 8 years are authorized beginning with Editors and publishers throughout Idaho, the third year, with provision for repa-y­ assembled at Hotel Boise for a banquet at objection to the request of the gentleman the conclusion of their annual meeting, from Oklahoma? ment from · one-half of the revenues vigorously applauded their approval when There was no objection. available to the fund. The fund will be the name of the winner was announced. Mr. ST GERMAIN. Mr. Speaker, the used in the proportion of 60 percent for The honor is one that is not lightly given. measure I am introducing today, a bill State purposes and 40 percent either way Winners are determined by a selection com­ to establish a land and water conser­ depending on need. mittee of Idaho editors and publishers. vation fund, embodies the administra­ This measure is in complete accord The inscription on the plaque presented tion's program to further provide for the with the recommendations of the Out­ Mr. Love sums up the devotion and talent outdoor recreation needs of the Nation. door Recreation Resources Review Com­ he has given to journalism in these words: In his conservation message last year, mission. It is fiscally sound and for­ "He has worked hard, lived honorably, ward looking. I am hopeful, Mr. thought soundly, influenced unselfishly, and President Kennedy warned that our is entitled to the highest honor in his pro­ present sources of recreation are not Speaker, that it will receive favorable ac­ fession." adequate to meet current demands. It tion at this session of Congress and that Lincoln County may well be proud of the is his view and mine that we must take the country will be able to realize its man who has served them so well for the positive action now, for as he wisely benefits in the near future. past 19 years. points out, "actions deferred are all too Mr. Love was born in South Dakota and often opportunities lost, particularly in reared in Iowa. He attended Iowa State safeguarding our natural resources." THE LATE HONORABLE ROBERT Teachers College and Iowa State College, The legislation I am presenting today RICE REYNOLDS earning his bachelor of arts degree from is a far-reaching proposal which pro­ Mr. ED:MONDSON. Mr. Speaker, I the teachers college in 1924. During World War I he served in the U.S. Navy. vides for today's recreation needs while ask unanimous consent that the gentle­ The new master editor-publisher came to anticipating those of the near future. man from North Carolina [Mr. TAYLOR] Idaho· in 1925 to serve as superintendent of While the bill is fundamentally the same may extend his remarks at this point in' schools at Fairfield, a post he held for 2 as the one submitted last year, the new the RECORD and include extraneous years. He coached athletics at Hailey for a version authorizes a program for 50 per­ matter. year, and was an instructor in the Wendell cent matching grants to the States for The SPEAKER pro tempore. Is there school for 2 years before leaving the teach­ planning, and 30-percent grants for objection to the request of the gentleman ing profession because of physical disability. acquisition and development of needed from Oklahoma? He married Helen Shuey of Wendell at outdoor recreation resources. The There was no objection. Richfield in 1929. The couple have two States will share the funds available in children, a son, John, employed by Ball Mr. TAYLOR. Mr. Speaker, citizens Products Co. of Boulder, Colo., and a daugh­ the following manner: one-fifth divided of North Carolina and people across the ter, Mrs. Judith Abraham, a student atKan­ equally, three-fifths apportioned on Nation were ·saddened last Wednesday sas City Art Institute. th~ basis of population, and one-fifth by the death of former U.S. Senator From 1933 to 1944 Mr. Love was assessor allocated according to need. Robert Rice Reynolds at his home in of Gooding County, resigning in his sixth In order for a State to qualify for as­ Asheville, N.C. term to assume ownership of the Lincoln sistance, it must have a comprehensive Mr. Reynolds represented North Caro­ County Journal. · statewide outdoor recreation plan, and lina in the U.S. Senate from 1933 until He founded the Gooding Independent in the States are eligible to receive assist­ his retirement from the Senate in 1945. 1936 and owned the paper until 1940, at ance in the preparation of such a plan He ranks among the most colorful and which time it was sold and merged with the Gooding Leader. He is a charter member and for the training of necessary per­ controversial figures in American politi­ of the Gooding Lions Club and served as its sonnel. Also, in anticipation of escalat­ cal history. He stormed Washington president just before coming to Shoshone. ing prices for the future acquisition of with a grandeur perhaps never to be Mr. Love was commander of the Shoshone land for recreational purposes, the bill duplicated. He was different and glam­ American Legion Post in 1949, and was limits expenditures for State develop­ orous and those about him quickly elected district commander in 1950. He is ment work for the next 10 years to 10 realized it. . also a past president of the Shoshone Cham­ percent of the funds available for State Perhaps no other U.S. Senator brought ber of Commerce and the Shoshone Rotary assistance. The funds provided by this to Washington such a wide variety of Club. From 1955 to 1959 he served on the bill will also be available for acquisition experience as did Robert R. Reynolds. Shoshone City Council. of land and water which is authorized Mr. Love purchased the Journal from He had been a professional wrestler, a Glen Maxwell in May of 1944 and operated for areas of the national park system football coach, a war correspondent, an the paper for almost 19 years. and areas administered by the Secretary author, an actor, a motion-picture pro­ He was president of the Idaho Press Asso­ of the Interior for outdoor recreation ducer, and a criminal lawyer. He loved ciation in 1948, and was a director of the purposes; the national forest system; outdoor life and his earliest political Idaho Newspaper Advertising Service for two purposes of national areas for the pres­ campaigns were conducted traveling by terms before being elected president of that ervation of species of fish or wildlife horse in the North Carolina mountains. organization. threatened with extinction; and inciden­ His appearance in the Nation's Capital Mr. and Mrs. Love will remain in Sho­ tal recreation purposes in connection followed his famous campaign of 1932 shone, but plan an extended trip through with national fish and wildlife conserva­ which he launched with $20 and a T­ Colorado, Texas, and Florida this winter. tion areas as authorized by law. model Ford purchased on the instal}ment 1963 CONGRl:SSIONAL RECORD- HOUSE 2477 plan. His majority in the election. was the Nation can accept and which time The situation on the isthmus was one of the largest in North Carolina's and usage will justify. worsened on September 17, 1960, when history. He arrived in Washington in ·unfortunately, this task has been the President of the United States, in a his "rusty and trusty" Ford and showed complicated immeasurably by the ratifi­ mistaken gesture of friendship, by an Ex­ no hesitation in driving it to White cation in i955 of a secretly contrived ecutive order soon after the adjournment · House teas and other black tie occasions. canal treaty between the United States of the Congress, directed the formal dis­ When he returned to North Carolina and Panama and by the nationalization play of the Panamanian :flag outside the he stated that he had taken his faithful in 1956 of the Suez Canal by Egypt. :flag of the United States at one place in Ford. to the Capital and parked it be­ Despite the inherent differences between the Canal Zone as evidence of a so-called tween two Cadillacs in a million-dollar the juridical foundations of the two in­ titular sovereignty of Panama over the garage which Mr. Hoover had built and teroceanic canals, this action by Egypt zone. This unfortunate precedent of that it rolled its mud-splattered eyes served to evoke a chain of aggressive na­ striking the American :flag in the Canal around and looked up at him and said: tionalistic and communistic revolution­ Zone, as predicted by me on the :floor of "Bob, ain't we in society now." ary inspired agitations in Panama, some the House, merely served to open the Bob Reynolds' stories, similar to the of them marked by mob violence led by door, for in Panama and elsewhere, the one above, are told all over North Caro­ well-trained leaders. The long-range action was interpreted as a belated lina. They are told here in Washington. objectives of this revolutionary move­ United States recognition of Pana­ He will be remembered as a legendary ment is the wresting of the sovereign manian sovereignty. son of the Blue Ridge Mountains. control of the Panama Canal from the In this connection, Mr. Speaker, I Affectionately known as "Our Bob" by United States and the extortion of great­ would invite attention to the fact that friends back home and sometimes re­ er benefits from the toll revenues. The on February 2, 1960, after full debate, ferred to as "Buncombe Bob," Senator only basis for such aim~ is that inherent the House of Representatives approved Reynolds was the founder of the Ameri­ in Panama's geographical location, House Concurrent Resolution 459, 86th can Nationalist Party in 1941 and rose to which is adjacent to the Canal Zone Congress, against such display by the the chairmanship of the Senate Military territory. The difflculties of securing in­ overwhelming vote of 381 to 12, which Affairs Committee. creased transit capacity have now be­ was transmitted to the Senate but, for A great deal more could be said about come severely aggravated by the neces­ reasons not published, was never acted the accomplishments and activities and sity for safeguarding the sovereignty upon by that body. In addition, the controversies of Senator Reynolds as a and jurisdiction of the United States Congress passed the Gross amendment Member of Congress, but I wish to touch over· the Panama Canal and the Canal to the Department of Commerce Appro­ briefly on the human qualities of this Zone. priations Act prohibiting the expendi­ foremost American citizen. As a start in this direction, I made a ture of funds embraced in the act for He was sincerely concerned for · the series of major addresses in the House such purpose. No wonder isthmian ex­ people he represented. His personality beginning in 1957 and continuing up to tremists became emboldened and arro­ was magnetic; his charm, warm and the present Congress. These included, gant. abiding. Perhaps his greatest attribute, in comprehensive detail, the diplomatic Under these circumstances, the neces­ however, was that he never forgot his and legislative history of the acquisition sity for an effective counterpoise to Pan­ friends. by the United States in 1904 of our ter­ ama became clearly evident. This com­ His rich personality, keen sense of hu­ ritorial possession known as the Panama pensating force developed in the form of mor, and loyalty to his friends epdeared Canal Zone. growing demands for a second canal at him to the people of North Carolina. _ Tbough these efforts were generally Nicaragua, the ancient rival of the Pan­ Bob Reynolds loved life and he lived it ignored in the mass news media of the amanian site, and elsewhere. In an ad­ fully. · · United States or, when presented, had dress to the House on June 30, 1960, I their meaning distorted, they were undertook to give a comprehensive de­ PANAMA CANAL PROCRASTINATION prominently featured in the press of scription of the Nicaraguan project, Panama, especially in the Spanish lan­ which was largely based on a 1931 · re­ PERILOUS· guage papers, which I follow closely. port-House Document No. 139, 72a Con­ Mr. EDMONDSON. Mr. Speaker, I Through the latter, they have produced gress--and to advocate its consideration. ask unanimous consent that the gentle:. echoes from various countries of Latin The second canal idea, thus stimulated, man from .Pennsylvania [Mr. FLOOD] America. · served as an antidote for Castroism in may extend his remarks at this point The failure on the part of elements in Panama and to still some of the violent iri the RECORD and include extraneous our Department of State to stop the dep­ anti-American agitations among its matter.' redations of isthmian agitators by means radical elements. This address, more­ The SPEAKER pro tempore. Is there of forthright declarations of U.S. policy, over, supplies significant background in­ objection to the request of the gentleman in the course of time, has led to a chain formation on the interoceanic canal pic­ from Oklahoma? of diplomatic victories by Panama, mak­ ture, in which the Nicaraguan idea has There was no objection. ing the United States a laughing stock a history of over four centuries. Mr. FLOOD. Mr. Speaker, it has been in the Western Hemisphere. So confi­ Now, Mr. Speaker, for more than 30 aptly stated that the history of the Pan­ dent did anti-U.S. extremists become years our country has witnessed a frus­ ama Canal is one of continuing crises. that the Panamanian National Assembly trating succession of administratively Those of key character concern the even attempted to encircle . the Canal dominated, ex parte investigations and best site and the best type, known as the Zone by enacting legislation extending reports concerning increased inter­ battle of routes and battle of the levels. the 3-mile limit to 12 miles, with Panama oceanic canal transit facilities, often Moreover, this pattern of struggle re­ controlling the water at each end of the directed by those who, directly or in­ appears periodically, and since 1947 the zone's 3-mile limit, which could have directly, would benefit from their own question of the proper modernization of made that waterway another Berlin. recommendations. The prime illustra­ the ·panama Canal has· been beset with This attempt, our Government very tion of such procedure was the ill-fated repetitions of these old controversies in promptly and properly refused to recog­ 1939 project for a third set of larger locks slightly modified forms. nize, but friction resulted. at Panama. This construction effort, Over a period of years, a number of The radical leadership in the Panama launched under congressional authori­ Members of the Congress, several in the National Assembly, which includes some zation on administrative recommenda­ House but only one in the Senate, who tions, was suspended in 1942 after an have made serious studies of the canal Marxist-Leninists, obviously understood expenditure of some $75 million of the question and recognized its ·magnitude, the significance of my researches in the taxpayers' money, mainly on lock site have introduced bills to create the Inter­ exposure of their schemes and did not excavations at Gatun and Mira:fiores·. oceanic Canals Commission. In so do­ stop with the attempted encirclement of It is fortunate that no excavation was ing, it was their purpose· to provide an the Canal Zone. It followed up by giving started at Pedro Miguel. Had such an effective agency to develop a timely, :defi:­ me the unique distinction of being for­ engineering :fiasco been b:rought about nite, and wisely reasoned Isthmian mally declared as public enemy No. 1 of by civilian engineers they would have Canal policy, which the Congress and Panama. · been crucified. 2478 CONGRESSIONAL RECORD.::...= HOUSE February t-8 After suspension of construction on statement of Senator Thomas E. 'Mar· increased iriter<>ceanic· transit facilities, this project, a number of independent tin. This, Mr. Speaker, is no real reason ~ ~ollows: · - · engineers and others studied its plan­ at all. Nevertheless, the then· Gover· . Be it enaeted b.Y the Senate and HouSe riing and learned that no adequate in­ nor's warning has been more than justi­ of Representatives of the United. States of vestigation of it had been made prior to fied by sea level advocates who have not A.merica in Congress assembled., Th~t , this submission to the Congress. Such fail­ only opposed any major improvement Act may be cited as the "Interoceanic Canals ure is diillcult to comprehend. of the existing canal, but also have pre­ Commission Act of 1961". SEC. 2. (a) A commission is hereby cre­ At this point, Mr. Speaker, may I sug­ vented an adequate study of it and have ated, to be known as· the "Interoceanic gest that Members of the Congress, when failed to present any information con­ Canals Commission" (hereinafter refen-ed to visiting the Canal Zone, inquire into sig­ cerning the inevitable indemnity and as the "Commission") , and to be Qomposed nificant phases of the third locks proj­ increased annuities involved, or even to of eleven members to be appointed by the ect history and inspect the channel mention the subject. Furthermore, it is President, by and with the advice and con­ layout as then planned by personal ob­ indeed remarkable that these insistent sent of the Senate, as follows: One .member servations around the Mirafiores Lake advocates, some of whom have been in shall be a commissioned officer of the line area, as other Members of the Congress positions of authority, have unfailingly (active or retired) o! the United States endeavored to conceal important facts Army; one member shall be a commissioned and myself have done. But, unless the officer o! the line (active or retired) of the project is studied in advance of such in­ and consequences to arise, and have United States Navy; one member shall be a spection and understood, there will be no striven to commit our Government to commissioned officer of the line (active or point in making a field exploration of it. an unnecessary venture that would over­ retired) of the United. States Air Force; and It is interesting to note also that an night plunge us into a measureless sea eight members from civil life, four of whom undisclosed objective of the third locks of extravagance and diplomatic turmoil. shall be persons learned and skilled in the program was conversion of the Panama All of this could be, and would be, obvi­ science of engineering. The President shall Canal to sea level, according to a plan ated by the major improvement of the designate one of the members from civil life existing canal by means of a third locks as Chairman, and shall flU all vacancies on which had likewise not been adequately the Commission in the same manner as are studied, and that completion of the third project, modified to include the recon­ made the original appointments. The Com­ locks project would not only have re­ struction of the Pacific end of the canal. mission shall cease to exist upon the comple­ sulted in creation of a navigational mon­ Moreover, such major improvement tion of its work hereunder. strosity at the Pacific end of the canal, would not require a new treaty with (b) The Chairman of the Commission but as well ·would have committed our Panama, or a new indemnity, which is shall receive compensation at the rate of country to a serpentine sea-level under­ a matter of paramount importance and $25,000 per annum, and the other members taking that would have been a naviga­ has been, and still is, consistently ignored shall receive compensation at the rate of $22,500 per annum, each; but the members tional nightmare. Moreover, all of this by sea level advocates. appointed from the Army, Navy, and Air resulted from a formal inquiry by rou­ More than two decades have passed Force shall receive only such compensation, tine administrators pursuant to Public since suspension of the Third Locks in addition to their pay and allowances, as Resolution No. 85, 74th Congress, ap­ project. Traffic has continued· to grow, will make their total compensation from the proved May 1, 1936, and without ade­ making action more urgent. Certainly, United States $22,500 each. quate hearings or debate by the Con­ the time for permitting further procras­ SEc. 3. The Commission is authorized and gress-House Document No. 210, 76th tination on the part of administrative directed to make and conduct a comprehen­ officials in coming to a wise decision is sive investigation and study of all problems Congress, and Public Law 391, 76th involved or arising in connection with plans Congress. -now over. or proposals for- The great questions in the canal prob­ In determining our country's attitude ( a) an increase in the capacity and op­ lem are: on this vital question, .au the pertinent erational efficiency of the present Panama First. Safeguarding the untrammeled facts must be considered and me~not Canal through the adaptation of the Third sovereignty and jurisdiction of the concealed as has been done on more than Locks Project (53 Stat. 1409) to provide a. United States over the Panama Canal one occasion. To decide upon matters of summit-level terminal lake anchorage in the and the Canal Zone territory, without such magnitude in a purely routine, ad­ Pacific end of the canal to correspond with that in the Atlantic end, or by other modifi­ which the canal cannot be operated. ministrative manner is absolutely shock­ cation or design of the existing facllities; Second. The major operational im­ ing and has been repeatedly shown to (b) the construction of a new Panama provement and increase of capacity of have been counter to the best interests Canal of sea-level design, or any modification the Panama Canal by the elimination of of the United States and the world at thereof; the bottleneck locks at Pedro Miguel, the large. (c) the construction and ownership, by consolidation of all Pacific locks in new Transcendent among the many con­ the United States, of another canal or canals connecting the Atlantic and Paci:flc Oceans; three-lift structures near Aguadulce to siderations that enter into the Panama (d) the operation, maintenance, and pro­ correspond with the lock arrangement at Canal picture is that of the Pandora's tection of the Panama Canal, and of any Gatun, and raising the Mirafiores Lake Box of diplomatic difficulty that would other canal or canals which may be recom­ level to that of Gatun Lake to form a be involved in the adoption of the so­ mended by the Commission; summit anchorage at the Pacific end of .called sea-level project for that water­ (e) treaty and territorial rights which the canal to match that at the Atlantic way. This plan would open up the en­ may be deemed essential hereunder; and end. This program would also include tire treaty situation and make the United (f) estimates of the respective costs of the one set of larger parallel locks for larger States a target for political blackmail in undertakings herein enumerated. vessels and raise the summit lake level the way of vast indemnity and annuity SEc. 4. For the purpose of conducting all from its present height of 85 to 92 feet. inquiries and investigations deemed neces­ costs as well as risk of the final liquida­ sary by the Commission in carrying out the Third. The question of a second canal, tion of our sovereign rights, power, and provisions of this Act, the Commission is at Panama, Nicaragua, Colombia, or authority over the canal enterprise. No authorized to utillze any official reports, elsewhere, in an area that extends from wonder Panamanian politicians and documents, data, and papers in the possession Tehuantepec to the region of the Atrato, others who would benefit have overtly of the United States Government and its of whatever type that supplies the best and covertly sought its adoption. officials; and the Commission is given power conditions for transit at least cost. Mr. Speaker, I consider it a dastardly to designate and authorize any member, or other officer, of the Commission, to ad­ In these connections, Mr. Speaker, I outrage that attempts should be made to minister oaths and affirmations, subpena would invite attention to the fact that settle these grave questions as casual witnesses, take evidence, procure information in 1944, when the initial recommenda­ routine matters, withholding significant and data, and require the production of any tion for the elimination of the Pedro facts from the people of our Nation, and books, papers, or other documents and rec­ Miguel locks was submitted to the Sec­ bypassing the Congress and the Presi­ ords which the Commission may deem rele­ retary of War, the then Governor of the dent. Every consideration demands ac­ .vant or material for the purposes herein Canal Zone warned that advocates of a tion by the Congress. named. Such attendance of witnesses, and 'the production of documentary evidence, may so-called sea level canal at Panama To this end, I have introduced H.R. be required from any place- in the United would oppose "unjustifiably" any major ·3858 to create a competent, objective, ·states, or any territory, or any other area change in the existing waterway on the .and independent Interoceanic Canals under the control or jurisdiction of the ground that such improvement would Commission, charged with broad author­ United States, including the Canal Zone. delay its conversion to one at sea level­ ities for making the necessary studies SEC. 5. The Commission shall submit to CONGRESSIONAL RECORD, June 21, 1956, and reports touching on this matter of the President and the Congress, not later 1-963 CONGRESSIONAL RECORD- HOUSE 2479 than two years after .the date of the enact­ Republic. This small but vigorous and can colonies and in the United States ment hereof, a final report contai~ing the progressive Republic was doing well, an~ from those countries. At the same time, results and conclusions of its investigations the Lithuanians were among Europe's a country like Greece whose immigration and studies hereunder, with recommenda­ tions; and may, in its discretion, submit most enlightened people but in 1940 the quota is oversubscribed by some 105,000 interim reports to the President and tlie Soviet Government treacherously put an visa applications. has a quota of 308. Congress concerning the progress of its end to the Lithuanian Republic and an­ Thus· we have a situation in which the work. Such final report shall contain- nexed the country. immigration quotas allotted to certain (a) the recommendations of the Com­ Since then these unhappy Lithuanians countries are larger than they can use, mission with respect to the Panama Canal, have been suffering under Soviet totali­ while other countries are given quotas and to any new interoceanic canal or ca­ tarian tyranny. Today their lot under nals which the Commission may consider which are paltry in relation to their feasible or desirable for the United States to the Kremlin is tragic. They are deprived needs. And all of this is determiQed by construct, own, maintain, and operate; of their freedoms and are deliberately the accidents of history-which coun­ (b) the estimates of the Commission as cut off from the free world. But they tries had contributed the most stock to regards the approximate cost of carrying out have not weakened in their fight for the U.S. population as it existed in the its recommendations; and like estimates of freedom, and on the 45th anniversary of year 1920. Surely, some more equitable cost as to the respective proposals and their independence day we wish more means of allocating our immigration plans considered by the Commission and power to them. embraced in its final reports; and quotas can be found than this. (c) such information as the Commission I think that niy bill offers a reasonable may have been able to obtain with respect IMMIGRATION AND NATIONALITY alternative to the present system and is to the necessity for the acquisition, by the ACT OF 1952 certainly to be preferred to it. United States, of new, or additional, rights, My bill provides a new means of allo­ privileges, and concessions, by means of Mr. EDMONDSON. Mr. Speaker, I cating the immigration quotas based in treaties or agreements with foreign nations, ask unanimous consent that the gentle­ part on comparative populations of for­ before there may be made the execution of man from New Jersey [Mr. MINISH] may any plans or projects recommended by the eign countries and in part upon the pro­ Commission. extend his remarks at this point in the portion-of immigration into the United SEC. 6. The Commission shall appoint a RECORD and include extraneous matter. States from the various countries during secretary, who shall receive compensation The SPEAKER pro tempore. Is there recent years. fixed in accordance with the Classification objection to the request of the gentleman Under the bill the total worldwide im­ Act of 1949, as amended, and shall serve at from Oklahoma? migration quota would be set at 250,000 the pleasure of the Commission. There was no objection. SEC. 7. The Commission is hereby author­ immigrants a year. Under the present ized to appoint and fix the compensation of Mr. MINISH. Mr. Speaker, I would law it is around 157,000 and varies from such engineers, surveyors, experts or ad­ like to make a brief statement in favor time to time with changes in the number visers deemed by the Commission necessary of legislation to amend and impr0ve the of individual quota areas that are rec­ hereunder, as limited by the provisions in operation of the Immigration and Na­ ognized. Of the 250,000 total, 50,000 title 5, United States Code, section 55a (1946 tionality Act of 1952 which I am today would be set aside for use by refugees edition); and may make such expendi­ introducing in the House. and escapees without regard to the tures--including those for actual travel and At the risk of uttering a very bad pun, quota areas from which they come. In subsistence of members of the Commission and its employees-not exceeding $13 for I would say that this bill is designed to the light of recent experience I would not subsistence expense for any one person for put a little more heart into the immigra­ expect to see anything close to the full any calendar day; for rent of quarters at tion law. I think this law can use it. amount of these refugee visas utilized the seat of Government, or elsewhere; for The purpose of the bill is limited to very often. personal services at the seat of government, changing the immigration quota provi­ The remaining 200,000 visas would be or elsewhere; and for printing and binding sions of the McCarran-Walter Act. It allocated under a two-part formula. necessary for the efficient and adequate proposes a substitute quota system for Eighty thousand of these would be ap­ functions of the Commission hereunder. All expenses of the Commission shall be allowed the present system based on national portioned in accordance with the pro­ and paid upon the presentation of itemized origins. portionate populations of the countries vouchers therefor approved by the Chair­ Mr. Speaker, the national origins of the world, no one country to receive man of the Commission, or such other official quota system has been criticized for its more than 3,000 visas under this pro­ of the Commission as the Commission may features of racial discrimination for vision. The other 120,000 quota visas designate. many years. These criticisms, in my would be allocated in accordanc.e with SEc. 8. There are hereby authorized to be opinion, have had substance and I feel the proportionate immigration f1·om the appropriated such sums as may be necessary various countries of the world during the to carry out the provisions and purposes of that if a workable substitute can be this Act. found--one that will fulfill our own na­ past 15 years. tional goals without giving offense to Under the revised allocation, Italy's other countries of the world-then such quota would be increased from the pres­ LITHUANIAN INDEPENDENCE a substitute should be adopted. ent 5,666 to 15,648. Greece, whose cur­ Mr. EDMONDSON. Mr. Speaker, I _ The national origins quota system is rent quota is only 308, would receive ask unanimous consent that the gentle- based upon a belief that the people of 3,458. man from New York [M:a.. DuLSKI] may one nationality or race are superior to Quotas would be revised every 5 years. extend his remarks at this point in the those of another. Most Americans would The maximum quota for any country RECORD and include extraneous matter. agree, I am sure, that such a belief, how- would be 25,000 and the minimum raised The SPEAKER pro tempore. Is there ever popU:_lar it once might have been, from 100 to 200. Within these limits objection to the request of the gentleman has no place in the laws of our Nation there is a guarantee that no country from Oklahoma? today. would receive a smaller quota than it There was no· objection. It is no secret that when the first per- receives under the present law. Mr. DULSKI. Mr. Speaker, in north- manent immigration quota law was These provisions then · furnish the eastern Europe some 3 million Lithua- adopted in 1924 it was purposely de­ basis for dividing the quota among the nians constitute one of the smallest na- signed to curtail the "new immigration" quota areas of the world. There are tional groups. In the course of their from southern and eastern Europe while other changes affecting the distribution turbulent history they had generally not interfering with the "old immigra­ of quota visas within· the quota areas. managed to safeguard their freedom. tion" from northern and western Europe. Persons of special skills and parents of But in the late 18th century the pow- This is apparent when one merely ex­ U.S. citizens, both of whom are in pref­ erful Russian advance had overwhelmed amines what the quotas are. erence categories under present quotas, them; their country became part of the Great Britain, for example, has an an- · would be made nonquota immigrants Russian empire and they lived under the nual quota of over 65,000-more than under the bill. czarist regime until the Russian Revolu- one-third of the total quotas of all the The extent to which the United States tion in 1917. Then, when that auto- countries of the world, most of which has benefited from the admission of cratic regime was toppled, they pro- goes unused every year. Germany and trained and educated immigrants is not claimed their independence on February Ireland also have liberal quotas, refiect- generally recognized. More than a quar­ 16, 1918, and established the Lithuanian, ing the many early settlers in the Ameri- ter of a million of the immigrants who . ' 2480 CONGRESSIONAL RECORD-· HOUSE February 18

• j • ~ • - • reported their occupation during the Four and one-half years have gone by ··and retention problems, and by adjust­ 1947-61 period were in the professional .since the last adjustment of military ments in the pay of· retired personnel, and technical categories for which we pay. . this proposed measure would correct have a critical need. As pointed out in Our military men wear their uniforms certain existing inequities in the pay a most useful report by Mr. Frank L. with pride. They serve their country ·scale sales of our Armed Forces. Mott, Division of Manpower, Require­ with valor and devotion during both It is my hope and conviction that the ments and Resources, Department of peace and war-such is their role in the Congress will act promptly and favorably Labor, November 20,1962: national defense. As Members of Con­ upon this proposed Military Pay Act of The training of professional and technical gress, one of our roles in the national de­ 1963. workers represents a heavy economic invest­ fense is to provide just, adequate com­ ment for the people of a country. As indi­ pensation and career incentives for our cated earlier, many immigrants are fully Armed Forces. OUR ARTICLES OF FAITH trained when they arrive. The receiving Ladies and gentlemen, I believe that Mr. EDMONDSON. Mr. Speaker, I country benefits from the education and provision for increased military pay is a ask unanimous consent that the gentle­ tralnlng which were acquired in the country matter of economic justice. As Secre­ man from Texas [Mr. RoGERS] may ex­ of the immigrant's origin. Thus, the United tend his remarks at this point in the States received immigrants who brought tary of Defense McNamara recently with them not only a willingness to work but stated: RECORD and include extraneous matter. a diversified knowledge, education, and In the interim [i.e., since the 1958 Military The SPEAKER pro tempore. Is there training which were needed throughout the Pay Act], some erosion has taken place in objection to the request of the gentleman economy. the real value of compensation of the mili­ from Oklahoma? tary and there has been a substantial loss The United States has reaped mani­ relative to the wage and salary gains of wage There was no objection. fold gains from the admission of immi­ earners in the civilian economy. Mr. ROGERS of Texas. Mr. Speaker, grants whose skills and experience en­ as we all know, a free and responsible The value of military pay has been press is vital to the continued well-being able them to make a vital contribution eroded by the steady increase in the cost to our Nation's growth. of our democratic institutions. That Surely, there is no need to justify of living. From 1958 to date the Con­ great sculptor of our Bill of Rights, sumer Price Index of the U.S. Depart­ Thomas Jefferson, declared in 1787: elimination of the inequities in our im­ ment of Labor rose 5 percent. migration law that prevent the unifica­ Similarly, during the same period, av­ The way to prevent these irregular inter­ tion of families. The grief and hardship positions of the people is to give them full erage weekly wages in manufacturing in­ information of their affairs through the incurred under the present harsh re­ dustries registered gains of almost 18.5 channel of the public papers, and to contrive strictions would be eradicated under the percent, and average salaries of Federal that those papers should penetrate the provisions of my bill. Simple humanity civil servants advanced by slightly more whole mass of the people. The basis of our dictates the need for this change. than 13 percent. governments being the opinion of the peo­ The bill also eliminates the extremely To make the comparison between mili­ ple, the very first object should be to keep discriminatory provisions relating to the tary and civilian pay scales even more that right; and were it left to me to decide Asia-Pacific triangle which require a graphic, let me cite the following statis­ whether we should have a goverrurient with­ person, one of whose parents is of a race out newspapers, or newspapers without a tics. government, I should not hesitate a moment attributable to an area within the Asia­ A police patrolman or a firema~ in · to prefer the latter. Pacific triangle, to come under an Asia­ New York City receives a beginning Pacific quota rather than the quota of Later, Jefferson was to become an salary of $5~600 a year. his native country. · A civilian machinist in a naval ship­ articulate critic of the press and its Mr. Speaker, there has been a great yard receives $6,700 annually after 5 abdication of responsibility. But he deal of pious talk about changing our years in his trade. remained a steadfast defender of press immigration quota system. The time A chief petty ofiicer in the Navy with fre.edom. He said: has long since passed when we should 20 years of experience is paid a basic sal­ Our liberty depends on the freedom of the have had some legislative action on these ary of $4,200 a year. If he is married, press, and that cannot be limited without proposals. I was encouraged by the has two children, and is ashore, his in­ being lost. President's remarks at his January 24 come is $5,670, or less than the lowest In these days when our people are press conference that the administra­ paid truckdriver in a large city. besieged by a mass of information from tion is planning to offer recommenda­ And a master sergeant, with 30 years' the public media, it is reassuring to us tions for legislation in this area. With service and quartered in the barracks, all that most segments of the press re­ the added support of the administration, earns approximately $4,300 a year. spect the obligation to responsibility prospects for action have brightened It is true, of course, that all military with which they exercise the constitu­ considerably. I urge that Congress give personnel receive retirement and medi­ tional right of freedom. I am always priority to the long-overdue enactment cal benefits. So do the policemen. the gratified to see an expression by a news­ of an immigration policy that will be firemen. and most industrial employees. paper editor of his faith 1n the American fair to all. It is high time that such economic system and a declaration of the sense of injustices are corrected. · duty with which he serves his readers. Further!ore, the proposed boost in mil­ PROPOSED ~TARY PAY One of the best expressions of this LEGISLATION itary pay would inject more than $1.7 · sort I have seen recently appeared in the billion into the economy. Such a poten­ editorial columns of a newspaper in my Mr. EDMONDSON. Mr. Speaker, I tial increase in consunier spending power district, the Canadian Record of Cana­ ask unanimous consent that the gentle­ would do much toward creating an addi­ dian, Tex. The editor of that fine weekly man from California [Mr. LEGGETT] may tional demand for goods and services newspaper, Mr. Ben R. Ezzell, has the extend his remarks at this point in the which, in turn, would help to reduce cur­ following words to say in an editorial RECORD and include extraneous matter. rent unemployment of almost 4 million..:.._ entitled "Our Articles of Faith": The SPEAKER pro tempore. Is there at an annual rate. OUR ARTICLES OF FAITH objection to the request of the gentleman I believe that the military pay legis­ At this, the beginning of a new year, we from Oklahoma? lation introduced into both Houses dur­ want to rea:ffirm our statement of policy, our There was no objection. ing this 1st session of the 88th Congress, pledge of service to our community and our Mr. LEGGE'IT. Mr. Speaker, in the and now under consideration by the country and our faith in them-an affirma­ opinion of many, one of the most signifi­ House and Senate Armed Services Com­ tion which appeared in these columns when cant pieces of legislation with which we mittee is a step in the right direction. the Record first came under its present man­ will be called upon to deal in the 1st ses­ By raising salaries of the military forces agement more than a decade ago, and one which has been restated at intervals since sion of the 88th Congress is the military to reflect at least in part the advances of that time. pay raise bill, endorsed by President the civil economy over the past 4% These are the principles on which this Kennedy and Secretary of Defense Mc­ years, by improving certain categories of newspaper is operated: Namara. I would like to place myself on compensation in terms of service uni­ We believe in the freedom of the press. record as among those who will firmly formity and need, by providing incentives We are grateful for it. We will defend it to support this legislation. designed to overcome service manning the limit of our ability. 1963 CONGRESSIONAL RECORD- HOUSE 2481 vie believe, too, that in return for that (The following Member quest of Mr. BRUCE) and -to include ex- · actions of $50,000 and over for the period our community. We . believe that it is our . traneous matter:) · · July 1 to December 31, 1962, pursuant to title duty to prov~de you with complete, and un­ 10, United States Code, second 2357; to the biased reporting of the news of our com- Mr.BRAY. . Committee on Armed Services. munity. . (The following Members , on the District of Columbia. as clearly and concisely as possible because under its previous order, the House ad­ 425. A letter from the Secretary of Labor, we believe that you have a. right to know . journed until Thursday, February 21, transmitting a draft of a. proposed blll en­ where yqur newspaper stands on any public 1963, at 12 o'clock noon. titled "A bill to prohibit discrimination on question. · account of sex in the payment of Wa.ges by At the same time, we will not· deny you, · employers ehgaged in commerce or in the as individuals, the right to pu'QU:c expression EXECUTIVE COMMUNICATIONS, ETC. production of goods for commerce and to of your o~ v_iews whether your idea~ agree provide for the restitution of wages lost by with ours or not; As always, the columns of Under clause 2 of rule XXIV, execu­ employees by reason of any such discrimina­ the Record will be open to you for publica­ -tive communications were taken from tion"; to the Committee on Education and tion, over your signature, -of 'YOUr own views -the Speaker's table and referred as fol- Labor. . on questions of _public interest subject ~nly lows: 426. A letter from the Secretary of Stat~. to the restrictions of libel and the standards 416. A communication from the President . transmitting a draft of a. proposed bill en­ of common decency. of the United. States, transmitting propooed titled "A blll providing for acceptance by But we will neither publish nor acknowl­ · amendments to the budget for the fiscal year the United States of America of an instru­ edge unsigned · and anonymous communica­ ·1964_ involving decreases in the amount of . ment for the amendment of the constitution tions, regardless of their content. · · $70 million for the Small Business Admin­ of the International Labor Organization'!; The Record is a. pi'ivate.company, operated istration and $4,625,000 for the Department to the Committee on Foreign Affairs. for private profit. But it is a public news of · the Interior (H. Doc. 70) ;' to the Com­ 427. A letter from the Comptroller Gen­ medium and as such, we hope that it merits, . era.l of the United States, transmitting a and will continue to merit, your confidence . mittee on Appropriations and ordered to be printed. . report on the review of license fees being and your trust. · 417. A letter from the Secretary of the charged the U.S . .Government for the rigl1-t to produce the 88-11 antitank guided mis- Ar~y. transmitting a. letter. from the Chief . sile mutu!l-llY developed by France and tlie · of_ Engin~ers, Department of the· Army, dated LEAVE OF ABSENCE August 1, 1962, subniitttng a. report, together United States under the mutual weapol}.s with accompanying papers and illustrations, development program; to the Committee on By unanbnous consent, leave of ab­ Government Operations. ~ on a. review of the reports on the Sanders, sence was granted to Mr. WYMAN ; to the Committee on By Mr. BELCHER: trine by permitting Soviet Communist in­ Interior and Insular Affairs. H.R. 3893. A bill for the relief of Capt. fluence and control to continue in Cuba; By Mr. ZABLOCKI: Lloyd N. Campbell; to the Committee on the to the Committee on Foreign Affairs. H.R. 3892. A bill to amend the Internal Judiciary. 43. By Mrs. ST. GEORGE: Petition of 49 Revenue Code of 1954 so as to exclude from By Mr. FALLON: students of Ladycliff College, Highland gross income gain realized from the sale of H.R. 3894. A bill for the relief of Constan­ Falls, N.Y., to preserve the Monroe Doctrine; his principal residence by a taxpayer who tinos Kioumourtzoglou; to the Committee to the Committee on Foreign Affairs. has attained the age of 65 years; to the Com­ on the Judiciary. 44. Also, petition of Mr. and Mrs. Walter mittee on Ways and Means. By Mr. HAGAN of Georgia: F. Glace and 32 others to preserve the Mon­ By Mrs. GREEN of Oregon: H.R. 3895. A bill for the relief of An­ roe Doctrine; to the Committee on Foreign H.J. Res. 253. Joint resolution to provide a tonios Gtannopoulos; to the Committee on Affairs. credit against the individual income tax for the Judiciary. 45. Also, petition of Walter D. Van Etten individuals who make contributions or gif~ . By Mr. HALPERN: an

EXTENSIONS OF REMARKS

President Kennedy, Secretary of State this short of war. In international affairs gress approves this resolution, I am ad­ we generally tend to close ranks at the vised that the Department can begin Rusk, and Secretary of Defense Mc­ water's edge, and follow a bipartisan policy of cooperation, however some would use the processing and printing of this impor­ Namara Speak on the Cuban Situation Cuban situation for partisan attacks and tant, informative map to satisfy re­ political gain. quests of all Members for its need. EXTENSION OF REMARKS Secretary Rusk in a major speech this OF week in California called for an early with­ drawal of the remaining Soviet troops in HON. JOE L. EVINS Cuba and said that the administration is Tides of Tyranny OF TENNESSEE working toward havini: these troops removed. "The authorities in Moscow and Havana IN THE ~OUSE OF REPRESENTATIVES must recognize that Soviet military elements EXTENSION OF REMARKS Monday, February 18, 1963 in Cuba do not insure the peace of Cuba, OF but poison the atmosphere and increase the Mr. EVANS. Mr. Speaker, the Cuban dangers," Rusk said. "The sooner this HON. JOHN V. LINDSAY situation continues to be of concern 'to source of potential trouble is eliminated, the OF NEW YORK Members of Congress and to the Nation better for everyone concerned." IN THE HOUSE OF REPRESENTATIVES as a whole. In this conection, in my "We in the Western Hemisphere cannot weekly newsletter to the people of the accept as normal any Soviet military pres­ Monday, February 18, 1963 Fourth District of Tennessee, I have dis­ ence in this hemisphere," the Secretary said. Mr. LINDSAY. Mr. Speaker, on Sun­ He asserted that Cuba wlll not become a. cussed the Cuban situation and recent base for offensive Inilitary operations against day, February 17, I had the privilege of developments. the United States or other countries and speaking before the Lithuanian Ameri­ Mr. Speaker, I ask unanimous consent pledged "the Armed Forces of the United can Council of Greater New York, on the that my newsletter be reprinted in the · States" to maintain this position. occasion of the 45th anniversary of Lith­ RECORD. uanian independence. The newsletter follows: Lithuanian Independence Day falls THE CUJJAN SITUATION between Lincoln's and Washington's Cuba and its Communist government con­ Wall Map of the United States Birthdays, and should be remembered tinue to be the subject of great public in­ by all Americans as an occasion wheQ terest and concern as the President, the Sec­ people in another land proclaimed their retary of State, and the Secretary of Defense EXTENSION OF REMARKS independence from oppression and this week made statements on our Cuban OF tyranny. policy. HON. WAYNE L. HAYS In my remarks, I tried to outline some The President has taken a firm stand on aspects of Lithuanian history and to de­ Cuba. Last October when it became known OF OHIO scribe their long struggle for independ­ that Russian weapons designed primarily for IN THE HOUSE OF REPRESENTATIVES offensive purposes had been landed in Cuba ence. This history will be interesting and were being deployed, the President or­ Monday, February 18, 1963 to my colleagues: dered a naval blockade of Cuba and de­ Mr. HAYS. Mr. Speaker, I have in­ TIDES OF TYRANNY manded that they be withdrawn. These (By Representative JOHN V. LINDSAY) missiles and bombers were dismantled and troduced a concurrent resolution today removed from Cuba. which, if approved by both Houses, will For those of us gathered here today and Since this time the United States has con­ authorize the printing of 59,350 copies for the more than 2 million Americans of tinued our air surveillance of the island with of a wall map of the United States. Lithuanian descent, February 16 is indeed both low-flying aircraft and with high­ These maps would be prepared coopera­ a historic occasion, a date which celebrates altitude planes of the U-2 design. heroism in the past, and which symbolizes tively by the Bureau of Land Manage­ hope for the future. For 45 years Lithu­ Recently, Secretary of Defense McNamara, ment and Geological Survey of the in a lengthy report, told the American anians, wherever they might be, haY~ to­ people that since July 1 of last year more Department of the Interior. Its infor­ gether recalled with patriotic pride that day than 400 reconnaissance flights have been mation would also include historical data, in 1918 when individual valor brought na­ fiown over Cuba by our U.S. military air­ concerning public surveys, reservations, tional victory to a. small but ancient land craft and that the photographs taken on and other appropriate dedications of long dominated by despicable despotism. these fiights, plus other intelligence sources, land of the United States. There will In view of the significance of that day and indicate clearly that the offensive weapons be made available 43,900 copies for dis­ the solemnity of this occasion, it is indeed have been removed from Cuba. a. distinct honor for me to join with you in tribution by Members of the House of commemorating the 45th anniversary of the In addition to Secretary of Defense Mc­ Representatives, and 15,450 for Members Namara, President Kennedy, Secretary of restoration of Lithuania's independence. State Rusk, and Mr. John McCone, Director of the Senate. The primary purpose of The tyranny which enslaves Lithuania to­ of our Central Intelligence Agency, have all this resolution is to effect the congres­ day completely overshadows the tyranny stated quite positively that, while we are sional-type distribution on a single­ which oppressed that country 1n the past. concerned, they are satisfied that Cuba no sheet map. In a similar resolution But we should not forget that the heroic longer poses a real military threat to the approved in the 87th Congress, the di­ history of Lithuania is at the same time a United States or to other countries in this tragic epic of foreign aggressions repeated mensions of the map were larger than re­ so of~en that, when we consider this history, hemisphere. quested in this proposal and necessitated In a further action directed against Cuba, we might well speak of the incessant "tides President Kennedy has ordered recently a the use of two sheets which had to be of tyranny." February 16, 1918, marks the further crackdown on Cuban shipping which pasted together to effect a complete map. greatest chapter in this saga, a. chapter in wm further shrink the already substantially Because of the desire of many Members which those evil tides emerged from beneath to have the single-sheet type, with the the oppressive waters of tyranny. Today I reduced trade with Cuba from the free propose to review briefly this epic struggle world. information I have described, I am re­ of Lithuania to maintain her identity and While partisan attacks are continualiy be­ questing that the provisions of House to defend her independence against cen­ ing made on the administration because of Concurrent Resolution 574-87th Con­ our Cuban policy, the President has taken turies of aggression and oppression. Only a firm stand and is working to strengthen gress-be suspended. I have written to when we r~call these centuries of struggle our position while also working toward the Secretary Udall about our desires in which produced the victory of 1918, only removal of all Soviet troops from CUba..-- this matter, and if and when the Con- then do we recognize the full significance