10516 CONGRESSIONAL RECORD- HOUSE June 10 Marguerite L. Hammett, Willow Island, opportunity to announce to the Mem­ such as this when we suddenly receive a w. Va., 1n place of H. C. Johnson, retired. bers of the House the death of a former telegram or phone call adVising that one WISCONSIN colleague, Otto Krueger, three-term more friend has passed on. George E. Pronold, Genesee Depot, Wise., Representative from North Dakota. My wife Edith and I wish to extend our in place o:t F. M. Kuehl, retired. Otto Krueger, or Otto, as his friends sincere sympathy to Mrs. Krueger and called him, was one of those individuals her three daughters in this hour of loss. Charles G. Taylor, Pavillion, Wyo., in place who had a great faculty for making Mr. Speaker, I ask that all Members of Ruth Newbrough, retired. friends and there are many of his former may have 5 legislative days to insert colleagues and associates here in the their remarks in the CONGRESSIONAL REC­ Nation's Capital who will be deeply ORD in connection with the death of our CONFIRMATION grieved by this news. former colleague. Executive nomination confirmed by Former Congressman Krueger passed The SPEAKER. Is there objection the Senate June 10, 1963: away at Lodi, Calif., on last Friday, June to the request of the gentleman from DEPARTMENT OF JUSTICE 6, in a Lodi hospital. He was 72 years North Dakota? William H. Orrick, Jr., of California, to be old. He leaves his wife, Ella, and three There was no objection. an Assistant Attorney General. daughters, Mrs. Glen Soule, of Brem­ Mr. SHORT. Mr. Speaker, I yield to erton, Wash.; Mrs. John Ranlett, of my colleague, the gentleman from North •• ..... •• Sacramento, Calif.; and Miss Dorothy Dakota [Mr. NYGAARD] . Krueger, of Lodi, Calif. Mr. NYGAARD. Mr. Speaker, as a HOUSE OF REPRESENTATIVES Congressman Krueger was an unusual personal friend of former Congressman individual. He was one of not too many Krueger, I was very shocked to learn of MoNDAY, JuNE 10, 1963 Members of Congress born outside of the his death on June 6. , and of perhaps particular It had been my great pleasure to The House met at 12. o'clock noon. significance at this time, he was born know Otto Krueger prior to the time The Chaplain, Rev. Bernard Braskamp, of German parents in Russia, on Sep­ that he was elected commissioner of D.D., offered the following prayer: tember 7, 1890. He attended grade and insurance in the State of North Dakota, I John 5: 4: This is the victory that high school in Russian and German a · position that he held for 5~ years. overcometh the world, even our faith. schools and immigrated to the United During his tenure as insurance commis­ Most merciful and gracious God, may States in 1910 and settled at Fessenden, sioner and my simultaneous service in our lives daily be nourished and strength­ N.Dak. the State legislature dealing with prob­ ened by a greater faith in Thee to over­ Otto Krueger served as a private in lems that confronted his department, come the world with all its trials and the infantry of the U.S. Army during Congressman Krueger was always a tribulations. World War I, with oversea serVice in forthright public official, always willing Deliver us from those paralyzing fears the 91st DiVision. to do what was right and fitting in the and pygmy anxieties which so often be­ Upon his return from military service position which he held. I found Con­ set us. in 1919, he ran and was elected county gressman Krueger was very well in­ May we never be afraid to accept high auditor of Wells County, N. Dak. Begin­ formed with his department and could standards and lofty principles. ning with 1920, he served 10 consecutive at any given moment provide in detail Inspire us to live and labor for a so­ terms as county auditor of his home any information that was required of" cial order which will mean health and county. He moved up from county audi­ him by the legislature or citizens who happiness for all the members of the tor to State treasurer for one term in dealt with his department in their busi­ human family. 1945 and to State insurance commission­ ness affairs. Grant that whatever is noble and best er from 1946 to 1951. He was State Congressman Krueger later was may never be suppressed and crowded budget director in 1951 and 1952 and elected to serve in the Congress, a po­ out during these days when our poor State treasurer of the North Dakota Re­ sition which he held with distinction confused world has so many desperate publican Party from 1948 to 1952. Otto for three successive terms until his fail­ needs. was endorsed to run for Congress by the ing health caused him to retire. Hear us in Christ's name. Amen. Republicans of North Dakota in 1952. Through his years of serving the peo­ He was elected and served for three ple as an om.cial in local, State, and Fed­ terms during the 83d, 84th, and 85th eral Governments, he won many friends THE JOURNAL Congresses. and will be always remembered as an The Journal of the proceedings of Otto Krueger was a good, hard work­ outstanding citizen and public official. Thursday, June 6, 1963, was read and ing and popular Congressman. Had he Mrs. Nygaard joins me in extending approved. desired to do so he could easily have our condolences to Mrs. Krueger and his been reelected, but because of a heart daughters, Mrs. Glen Soule, of Bremer­ condition, he decided to retire. It was MESSAGE FROM THE SENATE ton, Wash.; Mrs. John Ranlett, of Sac­ this development in North Dakota poli­ ramento, Calif.; and Miss Dorothy A message from the Senate by Mr. tics which was responsible for my be­ Krueger, of Lodi, Calif. We know he McGown, one of its clerks, announced coming a candidate for Congress, and will be missed by everyone with whom that the Senate insists upon its amend­ subsequently being elected. I always he came in contact. ment to the bill eing used to admin­ Jewish refugees from Cuba receive sued by the voluntary agencies are re­ ister a wide variety of programs: various forms of assistance from the He­ deemable at several church depots in the Operation of the Cuban Refugee Cen­ brew Immigrant Aid Society, a national Miami area. Supplies of clothing have ter and the maintenance of records. . organization. been received from and other Resettlement of refugee families in Hardship cases are helped at eight cities serving as collection centers for communities offering employment oppor­ denominational centers. clothing drives. tunities. Refugees with technical skills and pro­ Under Federal auspices, broad scale aid A transitional grant to resettling ref­ fessional training receive special con­ for Cuban refugees in the United States ugees who receive public assistance in. sideration. Lawyers, doctors, and en­ began late in 1960 when, after a review Miami at the time of their resettle­ gineers are being retrained to fit them of the situation, President Eisenhower m~nt-$100 for a family, $60 for an in­ for professional service in the United inaugurated a program to deal with the dividual. States; most of the retraining work is most urgent needs. Financial assistance to needy families carried on with Federal aid by the Uni­ Subsequently, President Kennedy rec­ in the Miami area and to resettled versity of Miami. ognized the Cuban refugee problem as families in other areas. Cuban college and university students one of national responsibility and beyond Consultations and advisory services to may receive education grants enabling the means and scope of the individual voluntary agencies with contractual re­ them to resume their studies in the States or the combined efforts of volun­ sponsibilities. United States. Applications to univer­ tary agencies. Accordingly, on January Hospitalization and medical care for sity registrars are processed through the 27, 1961, the President issued a formal the sick. Office of Education, an agency of the instruction to the then Secretary of The care and protection of unaccom­ Department of Health, Education, and Health, Education, and Welfare, Abra­ panied children. Welfare. ham Ribicoff, saying, in part: Distribution of surplus food com­ Mr. Speaker, I have hastily sketched I want you to make concrete my concern modities to needy refugees. the operations of the Cuban Refugee and sympathy for those who have been Emergency welfare services for Ameri­ Center. But even this cursory rundown forced from their homes in Cuba and to as­ can nationals repatriated from Cuba. shows that successful operation under sure them that we shall seek to expedite Educational loans to needy and de­ Marshall Wise is solid attestation of his their voluntary return as soon as conditions serving Cuban students enrolled in excellent work. there facilitate that. American colleges and universities. An able administrator, a tireless work­ After a further personal evaluation of An adult education program, as well er, a dedicated public servant, a great the refugee problem in the Miami area, as an elementary and secondary educa­ humanitarian, are all words descriptive a comprehensive program was formu­ tion program for refugee children. of Marshall Wise. They bear repeating. lated by the HEW Secretary, who as­ The retraining of refugee physicians, His efforts have gained recognition signed the Social Security Commission­ attorneys, and other professionals. throughout not, only the. United States er to coordinate the efforts of all Federal The establishment and operation of a and the Western Hemisphere but all of agencies affected by the President•s di.:. Cuban refugee research project. the freedom-loving peoples of the world. rective. In January 1963, the Cuban The Florida State Department of Pub­ I welcome the opportunity to associate refugee relief program was placed under lic. Welfare is the principal contract myself with the remarks of Mr. Wise the newly constituted Welfare Admin­ agency for administering immediate re­ which were delivered in his speech to istration-Dr. Ellen Winston, Commis­ lief to the refugees in the form of finan­ the Downtown Rotary Club of Miami, sioner of Welfare. Director of the cial assistance, child welfare services, and Fla., on May 2, 1963. In it you will find Cuban refugee program, based in Wash­ in the distribution of surplus food com­ the heart, courage, and talent of an out­ ington, is John Frederick Thomas. modities. Professional social workers in­ standing public officer who deserves By Presidential authority, $5 million terview and screen the refugees and credit and recognition for a job well had been allocated to the support of co­ certify their eligibility to receive monthly done. Accordingly, I am privileged to operative programs relating to the financial assistance checks-a maximum deliver his remarks to you: health, education, and welfare of Cuban of $100 per family and $60 per single A little over 2 years ago--when I first refugees in the United States, for the case-and inhospital care for acute ill­ came to this job--people in the community ness. Child welfare specialists in the told me we were sitting on a powder keg period ending June 30, 1961. These that might blow up any minute. Eighteen funds were part of the money appro­ Center look after the welfare and educa­ months ago, when I last spoke to this group, priated by Congress to the Mutual Se­ tion of unaccompanied refugee children. I was told the same .thing. All during the curity Contingency Fund and they rep­ Through an agreement between the last 12 months, and once again during the resent the first expenditure of such Florida State Department of Public Wel­ Pepper-Fascell hearings, I heard local labor funds within the continental borders of fare and the U.S. Department of Agri­ leaders and other concerned individuals voice the United States. culture, surplus Federal food commodi­ the same cry. ties are distributed to needy families; However, from where I sit, and from what During the fiscal year ending June 30, I see, I've never believed these cries, and 1962, the program was carried out with this distribution is in addition to other right here today I want to say to you, as $38.5 million made available under au­ grants-in-aid. members of the leading civic organization in thorities in the Foreign Assistance Act Beside the public and private welfare this community, that we have not been, and of 1961. On June 28, 1962, Public Law agencies, aid to the refugees is adminis­ we are not now sitting on a powder keg be­ 87-510-Migration and Refugee Assist­ tered by organizations repr~senting the cause of the Cuban refugees living in our ance Act of 1962-was enacted which principal religious faiths of the refugees. midst. I am really not here to educate you. I provided a legislative base for assistance Late in 1959 the Catholic diocese of bring you information which I hope will en­ to Cuban and other refugees from na­ Miami opened the Centro Hispano Ca­ able you to educate yourselves, if that is tions of the Western Hemisphere, and tolico to serve the needs of refugees ar- your desire. :coNGRESSIONAL RECORD-· HOUSE 10521

I am not here to plead the special-cause -dents and the $9 million of. Federal fund,s further advanced and better ~bl_e to provide of the Cuban refugee, or to defend those who that has be~n given_to help with the prob­ for the future expansion that must come to are defenseless. I bring you facts, not lem has really improved, rather than hurt, care for our future normal growth. fiction, which I hope will enable you to de­ the school system. 2. The success of Interama as a permanent cide whether their cause is a just one, and And finally, it has been written and said trade fair is a foregone conclusion, because is deserving of your understanding and ac­ that "they are using all our welfare funds to we've proven to all the countries of Latin tive support. help the Cubans instead of the needy Amer­ America that Miami is a host city to the The moment the Cuban crisis erupted re­ icans." The truth is that no Dade County Spanish-speaking world, without a peer to cently, Fidel Castro slammed the door or Florida State funds have ever been used be found anywhere. through which thousands of Cubans had for this purpose. More than $80 million of 3. And last, but by no means least, the been fieeing their land since 1959. Planes purely Federal funds, contributed in taxes by tremendous expenditure of Federal funds in which had been fiying out more than 6,400 all the people of the United States including this area, more than $36 m1llion last year, Cubans a month, for 19 months, were ordered you and me, have been used to give these and somewhere in the neighborhood of $70 to halt operations. An estimated 350,000 needy refugees asylum, safety and minimum million this year, has bolstered Miami's sag­ Cubans-many of whom had already paid subsistence in the greatest democracy the ging economy during a time which could for their passage and were waiting only for world has ever known. have been one of depression and retrogression plane space-were locked in by the ban on The hard, cold facts, and the real truth of without such a dollar flow. emigration. the situation, as stated by competent local Miami, an area whose economic blood­ To be cut off from freedom--especially officials in recent public hearings is that we stream is fed and nourished by tourist vis­ when freedom lies only a few tantalizing in Dade County really don't have assistance itors, has always been happy to welcome the miles away-is a tragic fact of life affecting programs that are worthy of the name. "refugee" from the North who is fieeing mlllions today in many parts of the globe. Although Federal funds have been and are from the cold weather. The tragedy is heightened when families are now available on a 3-to-1 matching basis Up to this time, the great majority of split--half in freedom, half behind walls. for staff, and equal matching basis for gen­ Miamians have also welcomed and tolerated Many Cuban families, both inside and out­ eral assistance--this means that for every the influx of refugees from Cuba, who are side their native land, are suffering the agony dollar we are willing to appropriate and spend basically fleeing from communism and op­ which is so widespread in the world today. for general assistance the Federal Govern­ pression. I'm not going to repeat all the criticisms ment will give us $3 for staff employ­ However, we are seeing a small minority and complaints about the refugee infiux that ment and a matching dollar for assist­ begin to resent this influx. We are beginning you've read in our local newspapers, or heard ance payments-notwithstanding the fact to hear them say, "America for Americans," from your well-meaning neighbors and that such an offer remains open to us we and, "Miami for Miamians." friends, or, may have actually been said by cannot seem to get our own elected repre­ Maybe we should remind them that almost you, yourselves. Most of those I've read or sentatives to provide the $1 that will everyone in Miami is from somewhere else, heard, are based on pure fiction and preju­ automatically bring us matching funds to and that America has grown great because dice-not upon hard, cold, facts. help the needy Americans in our own com­ of its willingness to provide honest oppor­ It has been written and said that Cuban munities get back on their feet again. tunities for immigrants and refugees. refugees are taking jobs away from needy Let's take a quick, short look at some of Maybe we should remind them that we Americans, and lowering the wage rates the plus factors, at some of the good that welcome the Cuban refugee because the in Miami and south Florida. I'm sure that has resulted in the exodus of the Cuban bloodstream philosophy of America is in­ some of this has taken place, but the hard refugee fieeing from communism, tyranny, scribed on our Statue of Liberty, a statue cold facts, available to all of you in the and oppressio:J. to asylum, safety, and democ­ which is known to the rest of the world as; reports made by the Florida State Employ­ racy in the Miami area. "The Mother of Exiles." ment Service, the recent special survey on 1. I contend that the culture of this area Maybe we should rededicate ourselves to unemployment in Dade County conducted has advanced to a point it would have taken these words: by the U.S. Department of Labor, the First another 10 years to reach without this Research Corp., and other professional fact­ "Give me your tired, your poor, impact. Your huddled masses yearning to breathe ­ finding bodies, proves conclusively that these 2. Miami has been striving for many years inflammatory statements just can't be free. to establish its right to the title "Gateway The wretched refuse of your teeming shore. proved. to the Americas," and I can't believe that It has been written and said that the anyone in North, Central, or South America Send these, the homeless, tempest-tossed to influx of Cuban refugees was increasing would now attempt to dispute that claim. me." the crime rate in our communities, yet the 3. All of the people of Latin and South official report of the Miami Police Depart­ America, and islands of the Caribbean are PERSONAL ANNOUNCEMENT ment, released just a few months ago, says completely aware of the tolerance, hospital­ that although the crime rate during the past ity, understanding, and welcome that the Mr. LONG of Maryland. Mr. Speaker, 3 years has increased in Miami-and here I citizens of the Miami area have extended to on the rollcall vote on Thusrday on the quote from the report--"Cubans were not a the Cuban refugee. , bill, H.R. 6754, the agricultural appro­ problem in the crimes reported on by the de­ 4. Just think how our schoolteachers, priation bill, I was unavoidably absent. partment." Lt. Tom Lipe, in making the church people, policemen, government report, said, "Cubans are good citizens as far agencies, salespeople, service trades, civic Had I been present, I would have voted as we are concerned." organizations, hotel people, and mo.ny of our "yea." It has been written and said that the citizens have learned to speak Spanish in infiux of Cuban refugees would ruin south order to deal with, serve, and host our Span­ PAN AMERICAN JET ALL-CARGO Florida's tourist industry. Yet industry re­ ish-speaking exiles and guests. The progress ports show that 1962 was the best tourist we've made in this area alone will bring us CLIPPERS year we ever experienced, and right now the cultural, as well as economic rewards, for Mr. JARMAN. Mr. Speaker, I ask tourist industry tells us that 1963 is going all the remaining years of our lives. unanimous consent to address the House to be better than 1962. 5. Our churches and temples have found a It has been written and said that the rallying point and popular cause, and have for 1 minute and to revise and extend my influx of Cuban refugees would create slums greatly strengthened their ties as a result. remarks. and depress the real estate market. The 6. All our educational and cultural dis­ The SPEAKER. Is there objection most recent reports from the Miami Housing cussion groups have benefited tremendously to the request of the gentleman from Authority, Area Redevelopment officials, the by their association with the Cuban exiles, Oklahoma? Mortgage Bankers Association, the Real and as a result have learned much, in such There was no objection. Estate Appraisal Association and the Federal a short time, about communism and how it Mr. JARMAN. Mr. Speaker, I have Housing Administration all agree that al­ works. spent a very interesting hour and a half though there is ::..n overcrowding situation 7. We're becoming world famous for our no slums have been created and the real "Operation Amigo" project, and the Cuban this morning at Dulles International estate market, instead of being depressed, refugee provided the bridge of understand­ Airport inspecting the new Pan Ameri­ has been greatly helped by the influx of ref­ ing and stimulating spark which advanced can all-cargo jet clipper. My purpose ugees into the area. the _!) rogram. in mentioning this matter to Members It has been written and said that the Let's just look at the positive aspects of a of the House is that I consider the proc­ refugee infiux would ruin our school system few highlights you may not have thought ess of transporting air freight as devel­ and slow up the education of our own chil­ about before: oped by Pan American Airlines to be of dren. The facts are available to all of you 1. Our public school system, although and you can get them by talking to the su­ overburdened and badly crowded now, is significant value to the commercial and perintendent of schools, or any of the other being assisted by Federal expenditures to defense interests of this Nation. responsible officials of the Dade County accelerate its rate of growth because of this Mr. Speaker, should a cold war crisis school system. You'll learn from them that heavy refugee load. When the refugee im­ erupt somewhere in the world and Amer­ there has been, and still is heavy overcrowd­ pact disappears, as it wm in the not too ica's armed might called into action, ing, but that the quality of the Cuban stu- d~stant furture, we'll be just that much men and equipment must be moved at 10522 CONGRESSIONAL RECORD- HOUSE June 10 jet speed across continents and oceans. Airport all of today and helicopter serv­ not six, eight, or whatever number of At such a time, the Pan American cargo ice is available. If Members will con­ soldiers happen to be involved. jet would serve as a frontline reserve tact my office, arrangements 'Can be They should have been under orders to element in the free world's defenses. made for them to see this most impor­ defend their positions at any cost. This For example, . Pan Am's jet freighter tant jet clipper. is the price we must pay, if necessary, if :fleet-representing a private investment we are to uphold the honor of our coun­ of nearly $60 million-would provide REQUEST FOR SPECIAL ORDER . try and continue to demand the respect the fastest means of transport for large of the rest of the world established by our volumes of military cargo to most of the Mr. MORRIS. Mr. Speaker, I ask founders and perpetuated throughout world's critical areas in times of emer­ unanimous consent to address the House our history until recently when our gency. for 10 minutes following proceedings leadership seems to have changed from Committed to the Civil Reserve Air today. that of patriotic red-blooded Americans Fleet, Pan Am's eight freighters on The SPEAKER. Is there objection to to a lot of international do-gooders more routes between Air Force bases in Cali­ the request of the gentleman from New intent on appeasement of those who fornia and Hawaii could carry nearly Mexico? would destroy us than to stand firm and 19 million pounds per week of essential Mr. HAYS. Mr. Speaker, I object. defend our heritage as passed on by our military supplies, such as rations, hospi­ forefathers. tal equipment and medicines, military REQUEST FOR SPECIAL ORDER I am confident our foreign policy, as vehicles, and weapon components. Al­ carried out under the New Frontier, is ternately, in all-passenger configura­ Mr. MILLER of California. Mr. not what the overwhelming majority of tions, they could move 43,780 troops per Speaker, I ask unanimous consent to ad­ Americans would pursue given a chance week on the same routes. In mixed con­ dress the House for 30 minutes on Mon­ . to formulate it according to their beliefs. figurations, 109 personnel and nearly 30 day, June 17, following the legislative I am further confident it is not a policy tons of freight could be carried on one program of the day, and the disposition any citizen, instilled in good sound aircraft. of special orders heretofore granted. Americanism, could look to with pride. This important ability to transport The SPEAKER. Is there objection to Never in the history of our country quickly men and supplies is due in part the request of the gentleman from Cali­ .have we been so often humiliated both to Pan American's palletized preloading fornia? at home and abroad as we have since system. This system provides a method Mr. HAYS. Mr. Speaker, I object. the New Frontier took command. by which cargo is assembled according There must be an end put to our sacri­ to destination, loaded, and secured to ADMINISTRATION TO DO NOTHING ficing the honor of our country through pallets immediately upon arrival at the ABOUT BURNING OF MILITARY weak leadership, appeasement, and in­ airport cargo terminal. Pallets are MISSION OFFICES IN CARACAS filtration of high offices by the "one­ completely loaded and placed on a cargo worlders" who put the welfare of our Mr. ALGER. Mr. Speaker, I ask Nation secondary. train ready for hoisting into the cargo unanimous consent to address the House clipper immediately after it taxis to the for 1 minute, to revise and extend my re­ If the guards we have assigned to pro- cargo terminal. marks, and to include extraneous matter. . teet American interest abroad are in fact It is possible, therefore, under this The SPEAKER. Is there objection not permitted by orders to do so then process, for the world's largest air trans­ to the request of the gentleman from why should the American taxpayer be port to be completely loaded in 1 hour. Texas? saddled with this tremendous extra Or, in other words, 40 tons of freight There was no objection. burden of maintaining them overseas? could cross the Atlantic in a 6%-hour Mr. ALGER. Mr. Speaker, last week If they are not to defend our missions :flight--and then be unloaded in another a Communist mob burned the U.S. mili­ when attacked, and this is a clear indi­ hour ready for the return trip with an tary mission offices in Caracas, Vene­ cation they are not, then why have them additional hour for reloading. This zuela, desecrated the American flag, de­ there to be humiliated and further means that time saved in :flight is not stroyed valuable documents, and showed humiliate this great United States of lost on the ground. the world their contempt for the power America by such incidents? A lock on Mr. Speaker, in an equally important and prestige of this Nation. the door would have given more resist­ area, the Pan American new jet cargo The report on the incident of the com­ ance at a far less expense. I say either freighter will be a stimulant to Amer­ plete •takeover of our military mission give them the authority to defend to ican international marketing. Used in offices in Caracas is appalling. their last round or bring them home. connection with Pan Am's worldwide Even more appalling is the report that Let me say here this in no way is marketing service, the latter having our own State Department does not in­ meant as a reflection on our military opened new markets abroad to some 3,000 tend to protest this action to the Vene­ men. I feel confident given authority American firms, the jet clipper will be zuelan Government, as they feel Vene­ they would have defended to the last able to serve more businessmen who de­ zuela will take all action necessary. man the assault on that or any other sire to operate overseas. As a matter Since when have we left the decision of mission were they permitted to do so. of fact, in 16 days one of these new jet action to be taken by us to the govern­ They are the best soldiers in the world freighters could carry between the ment of the foreign country? The whole because they believe in America and the United States and Europe the entire purpose of our guards is to protect our Constitution upon which it was founded. tonnage of cargo hauled across the At­ interest and the duty of our State De­ Let us act as a nation to uphold this lantic by Pan American during all of partment is to take immediate action belief and cease selling America down 1952, a year in which the airline led against such attacks when occurring. the road to destruction by our so-called the airfreight industry. If I am correct in my thinking the sole internationalists. Now is the time to Thus, with a record of operating over purpose for our retaining guards at our act, and act forcefully, leaving no ques­ 100 million ton-miles of cargo each year foreign missions is to defend takeover or tion to the rest of the world but what and with prospects of increasing Pan prevent assaults on the properties and we will defend the rights of America and American's total freight 25 percent for materials maintained in foreign coun­ the principles upon which it was founded the coming year, the jet cargo clippers tries. Assuming this to be the purpose wherever challenged. with their new methods of loading will let us analyze the Caracas incident. We Weakness by officials of the U.S. Gov­ greatly enhance America's commercial maintain guards throughout the world ernment only invites further attack by and defense interests throughout the at a tremendous cost to the taxpayers­ those nations who underestimate the world. amounting to many millions of dollars courage and patriotism of American In conclusion, Mr. Speaker, an invita­ a year-to defend our rights at the cost citizens. tion has been issued by Pan American of their lives if necessary. They are to all Members of this body to inspect aware of their duties and sworn to up­ their new aircraft and its loading sys­ hold them upon assignment. They are THE PRESIDENT SHOULD STAY tem in an effort to demonstrate their adequately armed with training to use HOME tremendous significance to this country. the weapons at their command. In brief Mr. YOUNGER. Mr. Speaker, I ask A plane will be at Dulles International they are the United States of America, unanimous consent to address the House 1963 CONGRESSIONAL RECORD- HOUSE 10523 for 1 minute, to revise and extend my re­ West Germany, by contrast, would enter­ But administration officials consider the marks, and to include extraneous matter. tain him royally. But with whom can the contrast misleading. Many. indeed, regard President get down to brass tacks? Konrad Is General de Gaulle's unruffled calm less as a The SPEAKER. there objection Adenauer wm be glad to see him-but Ade­ product of strength than as a cover of the to the request of the gentleman from nauer 1s a lame duck, scheduled to retire in ·semi-isolation into which his plans have been California? August. Nor can Ludwig Erhardt, his heir­ put by his European neighbors. There was no objection. apparent, speak with real authority. As yet, Mr. YOUNGER. Mr. Speaker, two he cannot commit Germany on any issue of SEEKS NUCLEAR SUPPORT capital importance. Some of Mr. Kennedy's must influential articles in the papers over the weekend advisers insist that the President does not seem to me to contain very sound advice A similar climate of uncertainty pervades Italy. The new Pope, if there is one by the seek any concrete results from his trip. But to our President. Mr. Eldon Griffiths, time Mr. Kennedy is due to arrive, will not the impression is strong that he would cer­ of London, wrote in the Washington Post be in any position to exchange anything tainly welcome agreements with Mr. Mac­ on Saturday, June 8, a column entitled more than formalities. And the same goes millan and West German Chancellor Ade­ "Kennedy Should Stay Home," and the for the Premier-designate Aldo Moro, who nauer in support of his proposal for a jointly widely read Columnist John M. High­ is eager to win the leftwing Socialists' for­ owned and manned allied navy armed with bearance toward a center cabinet. Moro can nuclear missiles. tower's article Saturday in the Washing­ It seems likely that one of the real reasons ton Evening Star was entitled "Kennedy do little more than shake the President's hand. Mr. Kennedy decided to visit Mr. Macmillan Trip Seen a Gamble." In Dublin, of course, it would be different. was to try to get some parallel to the under­ Their very cogent and timely argu­ And Harold Macmillan is sure to be delighted standing already achieved with West Ger­ ments coincide with my own views. This by the change in the President's plans which m any on setting up such a force. certainly does not seem to be an op­ will permit a 2-day stopover in Britain. But But the nuclear force proposal has several portune time for the President to go to here, too, there is a drawback. The Labor strikes against it. While General de Gaulle opposition is likely to charge Mr. Kennedy cannot veto it as he vetoed Britain's bid for Europe. Italy has both her religious and the Common Market last January, he can political problems at this time; Germany with trying to help the Tories, and in addi­ tion, the British Government has not made and has argued that it would be only an is just in the throes of changing govern­ up its mind on the central issue between extension of U.S. power and not a real Eu­ ment leadership, and England has an the United States and Britain-the mixed­ ropean force. unsavory political mess with the pos­ manned deterrent. Whitehall will be em­ Furthermore, there is widespread dissatis­ sibility of Prime Minister Macmillan barrassed if the President sought to sell this faction with the plan in Europe, including being replaced by his own party. Also, concept in person. Britain. Many European military experts It is the racial problem in America that is have argued it is costly and would be vulner­ our homefront is not without its compli­ able to Soviet destruction. cated and harassing problems which are the most compelling reason why the Presi­ dent should call off his trip. The summer Whether Mr. Kennedy's strong personal worthy of the President's obvious and months are likely to be a time of mounting popularity, demonstrated when he visited unremitting e:tforts. So, I hope the tension. Impatience among the extremists Paris and Vienna and London in 1961, can alarming and embarrassing situations on both sides would easily trigger mass riot­ overcome popular and military antagonism in the Western Hemisphere and in the ing in the South. Heat waves in Detroit and to the nuclear force plan is a serious ques­ United States will persuade the Presi­ Harlem, coupled with the letting-out of tion. Nevertheless the President clearly in­ schools, could lead to violence in the North. tends to make the try. dent to remain at home until he can But the real reason for going through travel abroad without leaving behind At such a delicate moment, when the United States is confronting profound do­ with the trip seems to be that Mr. Kennedy more unsolved, pressing situations than mestic emergencies, ordinary Americans are and his advisers felt a cancellation or major now exist. bound to look to the President, and the postponement would have had bad results The two articles referred to follow: President alone, for a lead. They are bound throughout Europe and shown weakening [From the Washington (D.C.) Post, June 8, to feel that his place is not in Rome or allied unity to the Communist world as well. 1963] Dublin. It is in Washington, D.C. The President was reluctant to include England because he did not want to be KENNEDY SHOULD STAY HoME drawn into British politics nor did he wish (By Eldon Griffiths) [From the Washington (D.C.) Evening Star, to appear to be encircling General de Gaulle. LoNDON.-A noisy debate is under way in June 8, 1963] In the end, however, Mr. Macmillan's insist­ Washington over President Kennedy's pro­ ence was overriding. jected visit to Europe. This is a view from KENNEDY TRIP SEEN A GAMBLE During the past 2 weeks, it was learned, Europe: The President should stay at home. (By John M. Hightower) the two men exchanged about a dozen mes­ The original purpose of his trip was to President Kennedy has committed himself sages on a great range of subjects. recover the American initiative, seized by to a personal venture in allied diplomacy French President Charles de Gaulle when he this month which holds greater risk of fail­ vetoed the New Frontier's grand design !or ure than promise of success. Atlantic partnership. By making public ap­ But as high administration officials assess PRESIDENT REENTERS THE TEST pearances in Italy and Germany, Mr. Ken­ the outlook this weekend, the gamble is one BAN UNITATERAL MORATORIUM nedy hopes to demonstrate that his Atlantic that had to be taken. In their view, cancel­ TRAP conception is vastly to be preferred to De lation of Mr. Kennedy's plans to visit Italy Gaulle's narrower conception of a self-suf­ and Germany would have produced a worse Mr. HOSMER. Mr. Speaker, I ask ficient Europe. failure than any which the President risks unanimous consent to address the House He is also expecting to do some discreet by making the trip. for 1 minute, to revise and extend my re­ lobbying on behalf of U.S. farmers who The decision anounced by Mr. Kennedy marks, and to include extraneous matter. want a guaranteed share of the European to visit Prime Minister Macmillan seems to The SPEAKER. Is there objection market and for his multilateral NATO de­ raise the hazards with the certain prospect to the request of the gentleman from terrent which is running into heavy water. that Mr. Kennedy will become directly in­ California? I! anyone can sell the Europeans on these volved in the British struggle for power be­ projects, Mr. Kennedy thinks he can. tween Mr. Macmillan and Labor Party There was no objection. Unfortunately, the political context in Leader Harold Wilson. Mr. HOSMER. Mr. Speaker, the Pres­ which the President's visit was conceived ident's promise this morning not to test has changed beyond recognition. Mr. Ken­ SCANDAL ROCKS BRrrAIN in the atmosphere unless someone else nedy can still be sure that his welcome The struggle itself, meanwhile, is being in­ does, namely the Russians, amounts to no would be warm in Italy, tumultuous in Ger­ tensified by angry outcries over the sex and more than giving Premier Khrushchev many and a sensation in Ireland. But there security scandal which has rocked the Mac­ are two decisive reasons why he postpone his millan government. the power to decide when and under trip. The first is that the governments of The explanation offered in high adminis­ what circumstances the United States Europe are in a state of fiux. The second tration quarters !or Mr. Kennedy's offer to will conduct tests. is that the racial problem in America re­ see Mr. Macmillan is that the Prime Minister This is hardly an advantageous situa­ quires the President to stay at the helm in had urged him not to bypass London on his tion. Washington. flying tour around the borders of France. It is most certainly a soft line. The European objections to a visit at Administration officials are acutely aware The entire history of negotiation with this time can be seen in every capital. Mr. that while plans for the President's trip have Kennedy has not been invited to Paris. He been buffeted by the winds of adversity, the Communists shows that nothing is has no plans to meet the most important French President Charles de Gaulle has dis­ accomplished by soft positions. Only m an on the continent. He cannot, there­ played the image of a major European ally by taking a hard, demanding line can fore, discuss the most vital problem in the standing calm and confident amid a tempest results be expected. Western alliance--the lack of confidence be­ of politics and diplomacy. The contrast 1s Going hat in hand to Moscow to beg tween himself and De Gaulle. striking. for test ban treaty will prove fruitless. 10524 CONGRESSIONAL RECORD- HOUSE June 10 It could prove dangerous to the national hilly and rocky. There is even some SPECIAL ORDER security. doubt as to whether harvesting machin­ Mr. BROMWELL. Mr. Speaker, I ask I can conclude only that the President ery can function properly. unanimous consent that on tomorrow, at and his speech writers want a test ban They are growing sugarbeets on a test the close of business and following all treaty, but do not know how to bargain area covering 250 acres of Cayuga Coun­ other special orders previously granted, with the Russians to get it. Or, that ty at this very moment, and a news they do understand Kremlin psychology, I may be permitted to address the House release circulated in that area states for 30 minutes. do not want a treaty and are taking the that ARA is supplying the contracting The SPEAKER. Is there objection to steps necessary not to get it. farmers with the necessary seed, is fur­ A far better course would be: nishing them with the proper planting the request of the gentleman from Iowa? First. Withdraw from negotiation the and harvesting machinery, and will end Mr. HAYS. Mr. Speaker, I object. present draft comprehensive test ban up by purchasing the crops from them treaty proposal. at prevailing market rates. UNITED STATES CONCERNED AT Second. Place a definite time limit on The same release informs us that the RISE IN CUBA SHIP SAILINGS our present draft treaty proposal for an Agriculture Department is reserving a Mr. CRAMER. Mr. Speaker, I ask atmospheric test ban treaty. special 50,000-ton sugarbeet allocation unanimous consent to address the House Third. At the end of the time limit, for Cayuga County and that ARA is for 1 minute, to revise and extend my re­ assuming the Soviets still are stalling, scheduled to underwrite some 65 percent marks, and to include an article. issue an invitation to all nuclear nations of the cost of the $20 million project. The SPEAKER. Is there objection to sit down and write a simple fallout That release says further that the re­ to the request of the gentleman from limitation treaty. finery, if finally approved, could not Florida? Details regarding a fallout limitation become fully operational until 1966, but There was no objection. treaty will be found in my remarks of that the Department of Agriculture in­ Mr. CRAMER. Mr. Speaker, I listened June 5 at page 10209 of the RECORD. tends to ask Congress to amend last with great interest to the President's year's law so that, if the tests prove suc­ speech before the graduating class of cessful, the project can get underway American University. If that class was ARA IN THE SUGARBEET BUSINESS immediately. not afraid to meet the challenges of the Mr. LANGEN. Mr. Speaker, I ask Apparently Cayuga County would al­ sixties before the President's address, unanimous consent to address the House ready have the allocation if it were not they must be scared to death now; for for 1 minute and to revise and extend for one little technicality: Nobody knows the President, reciting the latest New my remarks. yet whether or not the farmers there Frontier line, successfully expounded a The SPEAKER. Is there objection can raise sugarbeets on questionable soil. fear of war psychosis which, if past per­ to the request of the gentleman from But ARA seems to be taking care of that formance is any indication, is intended Minnesota? little detail this summer with taxpayer­ to pave the way for further concessions There was no objection. financed studies. to the Soviets. Mr. LANGEN. Mr. Speaker, I should The point I want to make is that we The President stated that the people suppose that after a number of years have dozens of areas across the Nation, of the United States should reexamine of service in this Congress, there would with some of the most suitable soils their attitude toward Russia. What does be few things that could amaze me in known for the raising of sugarbeets, who this mean? the field of bureaucratic blundering. have been literally begging for acreage Are the American people, after re­ There are times when many of us become allotments. These areas, too, such as examining, to decide that atheistic com­ weary of calling these inconsistencies in my own native Red River Valley, have munism is not so bad? That the Soviet to the attention of our people. But I been declared ARA eligible because of enslavement of millions of people behind have for your consideration today what persistent unemployment. The Cayuga the Iron Curtain is all right? That the I consider one of the most glaring lapses project, then, is just another attempt to brutality and slaughter of freedom-seek­ of good thinking that has crossed my solve a problem in one area while cre­ ing people in Hungary should be regarded desk for some time. It concerns an ating new problems for other areas of as a childish prank? That the brick instance where the Area Redevelopment the country. This is an outright attempt wall separating families and loved ones Administration has entered the sugar­ to ignore the known beet growing areas in Berlin, in spite of treaties to the con­ beet growing business in an area of the of the country for an unknown quantity trary, is merely an expression of Soviet country where there is no history to in the dubious name of area redevelop­ architecture? Are we to overlook every substantiate the growing of such a crop. ment. treaty the Russians have broken which And I gather that if ARA and the De­ The great Red River Valley of Min­ is, in effect, every treaty they have ever partment of Agriculture have their way, nesota and the Dakotas, for instance, are made? a substantial amount of our new domes­ not asking for ARA-financed studies. I think the answers to these questions tic beet quota may go to that area in­ They are not asking for anything except are meant to be "yes" if one places any stead of to areas across the country permission to grow beets on some of the credibility in the President's almost un­ that already have ideal soil for the richest and most productive soil in the believable statement that the antagonis­ growing of beets. world. But this Government does not tic, saber-rattling utterances that come On March 6 of this year, the Area Re­ hear them, because we are so busy from Russia are not really indicative of development Administration announced spending public funds on make-work the thinking of Khrushchev and the So­ that a $25,000 technical assistance study projects that may never be feasible. viets, but of his propagandists. had been granted to determine the eco­ Mr. Speaker, such projects just do not According to the President, freedom­ nomic and engineering feasibility of make economic sense, nor do they. alle­ loving countries can get along with the establishing a sugarbeet refinery in viate the human suffering for which they Soviet system of dictatorship and en­ Cayuga County, N.Y. This study was are intended. The Federal Government slavement if we take the time and effort granted because Cayuga County had, simply pours thousands of dollars into to increase our understanding of it, if we been designated as eligible to participate areas that then compete directly with improve our communications with them. in the area redevelopment program due worthwhile, organized local effort else­ This statement of New Frontier for­ to substantial and persistent unemploy­ where. The sorry part of this mess is eign policy is frightening, and the ped­ ment. that farmers in known sugarbeet areas dling of the scare of war philosophy by On March 20, also this year, LRA are being hurt because of efforts to solve the Kennedy administration makes fur­ tells us that a $93,000 technical assist­ problems elsewhere, problems our farm­ ther concessions to the Russians in order ance study of the feasioility of growing ers had no part in creating. to get along with them inevitable. and processing sugarbeets in Cayuga It is time we called a halt to make­ This sounds reminiscent, but in far County, N.Y., has been approved. That. work projects that do nothing except .more covert terms, of it is "better to be is a total of $118,000 just to find out waste our money in one section of the Red than dead." The American people whether or not sugarbeets can be grown country and create new problems else­ do not regard these as the only alterna­ in an area that ARA has admitted is where. tives. They choose to be alive and free, 1963 CONGRESSIONAL RECORD- HOUSE 10525 and this can only be accomplished with we can give 1n without losing too much THE LATE HONORABLE FRANCIS E. a strong and determined foreign policy face to the Communist demands as the WALTER that is not frightened to death of and price for coexistence. Mr. ALBERT. Mr. Speaker, I ask seeking accommodations with an enemy All these concessions are supposed to unanimous consent that the gentleman that has promised to bury us, has prom­ be made in the name of peace, but the from [Mr. McCoRMACK] ised that our grandchildren will grow up basic fallacy of this approach is that the may extend his remarks at this point in under communism. Communis~ have never kept their agree- the RECORD and include a letter from This basic expression of New Frontier men.ts. It I?Dores the pr~ven fact. that . the Honorable Howard Beale, Ambassa­ philosophy is being applied to this hemi­ the mte~nat10nal Commurust conspira~y dor of Australia, on the life and service sphere today, particularly with regard to has as I:ts stated goal-:re~ated agam of our late and distinguished colleague, Cuba. I have been stating for many an~ agam-to bury capitalism and the the Honorable Francis E. Walter. months that the New Frontier is trying Umted States. . . . . The SPEAKER. Is there objection to work out some compromise, some ac­ To t~e Comm~msts, conCiliatiOn, and to the request of the gentleman from commodation looking toward a coexist­ concessiOn are SI?DS of weakness. Wn e Oklahoma? ence with communism in Cuba policy. cannot afford to display weakness on a Y There was no objection. Today the. President confirmed my sus­ front or in answer to any. cha~lenge Mr. McCORMACK. Mr. Speaker, I in- picions by expounding the ADA philoso­ hurled at us by the Commumsts If our elude as part of my remarks the follow­ phy in foreign affairs. freedoms are to be preserved. ing letter from the Honorable Howard Perhaps this explains why so little concern has been shown over the 50-per­ Beale, Ambassador of Australia: cent increase in Russian shipping, in­ SHIPPING TO CUBA SHOWS NEW EMBASSY OF AUSTRALIA, CAUSE FOR CONCERN Washington, D .C., June 7, 1963. cluding armaments, to CUba since the The Honorable JoHN W. McCoRMACK, quarantine, the continuing and now in­ Mr. ROGERS of Florida. Mr. Speaker, U.S. House of Representatives, creased shipping by non-Communist I ask unanimous consent to address the Washington, D.C. countries to Cuba, Britain, and Canada House for 1 minute and to revise and MY DEAR MR. SPEAKER: On behalf of the in particular, and the accommodations extend my remarks. Australian Government, and of myself, I between Cuba and even some of the Lat­ The SPEAKER. Is there objection Wish to convey to you and to the House, sin­ in American nations that still recognize to the request of the gentleman from cere condolences over the great and sad loss and do business with Cuba. Florida? you have sustained as a result of the death of Representative Francis E. Walter. According to official figures of the There was no objection. Australia Will remember With gratitude Maritime Administration, during the Mr. ROGERS of Florida. Mr. Speak­ Representative Walter's long and fruitful first 4 months of this year, 113 known er, latest U.S. Government reports show association with the Intergovernmental trips by 92 non-Soviet-bloc ships went to that free world shipping to Cuba is on Committee for European Migration which CUba through May 31 of this year. the increase-enough increase to cause made a most valuable contribution to the There were 36 trips in April alone, and real concern. solution of the refugee problems following During the peak period of June to World War II; and to the large movements 16 of these were British. As a matter of of population from Europe, which have been fact, 33 of the 92 trips were British ships, August 1962, when the Soviets were at­ of great benefit to Australia's economy and 13 of which were tankers carrying pre­ tempting their crash program military have materially enhanced the role which cious oil for Castro's war machine. buildup of Cuba, a total of 164 non­ Australia is able to play as a member of the Twenty-three of the ninety-two ships Communist ships called in Cuban ports. free world. were under Greek registry. Since January of this year there have Yours sincerely, In addition to the increased shipping been 89 non-Communist ships calling in HOWARD BEALE, by non-Communist-bloc nations, appar­ Cuba; a figure which represents more Ambassador. ently with no effort to prevent it by the than half of last summer's traffic. New Frontier, I am sure, a further What are the Soviets doing in Cuba POPE JOHN XXIII accommodation to Castro and the Krem­ to require such shipping? What is the reason that free world shipping for this Mr. ALBERT. Mr. Speaker, I ask lin was the reported cessation of low­ unanimous consent that the gentleman level surveillance flights over Cuba and year totals more than it did during the month of July 1962, when such traffic from Massachusetts [Mr. BoLAND] may the decreasing numbers of high-level extend his remarks at this point in the surveillance flights. reached its peak? I think these are questions which weigh heavily in the RECORD and include extraneous matter. This accommodation philosophy is The SPEAKER. Is there objection further evidenced by the FAA order of minds of those who recall the events of last October. to the request of the gentleman from 3 weeks ago which permits Cuban com­ Oklahoma? mercial planes to overtly the United I have repeatedly urged that this There was no objection. States enroute from Canada so long as Government close its ports to ships from Mr. BOLAND. Mr. Speaker, Pope they stop for inspection. This latter allied countries which call in CUban John XXIII is deeply and sincerely condition, incidentally, gives Castro's ports. To date this Government has mourned probably by more people than Communist government use of and access taken only limited action through a any other man in recorded history. He to our airports in the major cities of the blacklist of such vessels carrying food­ was admired and loved equally by the Northeast, including Dulles International for-peace cargoes. Obviously this sys­ great and the little people of the world, Airport outside of Washington, D.C. tem has had little effect. because he himself admired and loved, In exchange for this accommodation, If U.S. ports were closed, as I have equally, both the great and the little peo­ Cuba has apparently agreed not to hijack suggested, this traffic would come to a ple of the world. Whatever office he or shoot at our commercial planes if screeching halt. No nation would con­ might hold, throughout his career, he they cross Cuba and this quid pro quo tinue its shipping to Cuba if denied ac­ never looked upon himself as magn~fied was accepted by the United States only cess to profitable U.S. cargo runs. Fur­ by that office, but used the office as a last week when the prohibition against thermore, such action would discourage means of drawing closer to other people, U.S. commercial flights over Cuba was the more than 20 allied tankers which and of helping them as much as possible. withdrawn. have delivered Russian oil to Castro His greatness of soul most appeared in Thus, the mood is to be one of accom­ regularly since January, and without his consistent habit of looking upon him­ modation as spelled out by the President oil Castro's island fortress would come self, most sincerely, as insignificant. today unless the New Frontier awakens to a screeching halt. Thus belittling himself, Pope John was to the fact that it is not the mood of the Why should our allies shoulder part ready to devote his energies to any task, American people. America demands of the Soviet burden of supplying Cas­ to risk his reputation in any cause, to firm leadership in ridding this hemi­ tro? Why should we continue to silently hazard his health and his life itself in the sphere of Communism in Cuba and else­ approve this practice by allowing these service of other men. where as well. allies access to our ports? Out of this greatness came the instinc­ The only reexamination of our attitude I urge that the United States close its tive rightness of so niany sudden, unex­ toward Russia should be one looking to­ ports immediately to those who value pected words and actions. To a delega­ ward a firmer position, not toward how rubles over dollars, and freedom. tion of Jewish rabbis he said, in the words 10526 CONGRESSIONAL RECORD- HOUSE June ·to of Genesis XLV, 4, "I am Joseph your never despair that the world can be better followed in the footsteps of the founder of brother"; to Mrs. John F. Kennedy, after than the world we live in. Christianity, Jesus Christ himself. It is evident to anyone who reads the two Pope John was the champion af those he had been carefully briefed in protocol great encyclical letters, "Mater et Magistra" whom John Masefield, the English poet and in the forms of American etiquette, ('"Mother and Teacher") and "Pacem in laureate, championed in his poem "Conse­ upon seeing her, he forgot all his briefing, Terris" ("Peace on Earth"), that Pope John, cration"-the oppressed, the underprivileged opened his arms wide, and called out far from being naive and unworldly, had an of whatever race or color. "Jacqueline"; to prisoners whom he encyclopedic and acute knowledge of the For all his brilliant intellect and extraor­ visited, he recalled the imprisonment of complex and stubborn problems of the day- dinary understanding of the many complex­ his own relatives; to one who had been · light world. The encyclical letters do not ities of modern times, Pope John was truly suppose that the world can be cured before a representative of the common people all his superior officer in the Italian Army, the problems that harass it are brought to over the earth; a man of humble origin who he gleefully identified himself as Ser­ solution. The encyclical letters are, there­ came from a large family, toiled in the fields geant Roncalli. Each step he took, as fore, directed to the solution of human prob­ as a boy, served as an ordinary soldier in Pope, from his dealings with the Vatican lems by ordinary men. They are corner­ wartime; a man who never forgot the great staff and the people of Rome to his stones of an imposing construction which, anonymous masses of humanity. major acts such as the appointment of as it is carried forward, will become accepta­ Although holding the papacy for only 472 cardinals and the canonization of saints, ble and increasingly self-evident to men who years, Pope John XXIII accomplished an was an advance in the recognition of the deal toward each other with respect for the enormous amount of good. When he be­ human person and for his reason. came the pontiff, he formulated a program dignity and worth of man. In the The belief that there are such self-evi­ of four main points: internal renewal and crowd-all races, all nations, all faiths­ dent concepts and propositions has been de­ reanimation of the Catholic Church, he saw and loved each individual. This nied by many in the modern age. Yet our achievement of Christian unity, the promo­ was borne out in his two great encycli­ own American institutions were founded by tion of world peace, and the advancement of cals, "Mater et Magis tra"-"Mother and men who had been taught to think it self­ social justice. Teacher"-and "Pacem in Terris"­ evident that men are capable of reason and Entering into his task with a vigor that that this is a universe which can be lived would have done credit to a man half his "Peace on Earth"-directed to the solu­ in rationally. The Founding Fathers in­ tion of human problems of ordinary men. age, the Pope raised the College of Cardi­ herited this belief. For modern secular men, nals to its full strength and enlarged its Also, the ecumenical council which Pope who have been taught to reject it, an act of international character. He spoke out re­ John convoked was aimed at renewal faith is needed. When the belief exists, as peatedly against the dangers of nuclear war within the Roman Catholic Church, but it did so profoundly in Pope John, it can and enjoined world leaders to strive for also for the unity of all Christians. For become the intellectual core of what can be peace. He convoked the first world council this he is loved and mourned and prayed a human doctrine which transcends confiict­ of bishops to be held since 1870, and issued ing diversity. seven major documents of which two, for, and for this he will be long remem­ The movement to bring the teachings of bered. "Mater et Magistra" and "Pacem in Terris," the church to bear upon "the process of are already recognized as masterpieces of Mr. Speaker, under unanimous con­ radical change" in the modern "economic historical significance. They stirred and sent, I include with my remarks an ex­ and political situation" begins, says Pope impressed even those who are indifferent cellent article by the distinguished John, with Pope Leo XIII. Tl:le first of the to religion. columnist, Walter Lippmann, from the great modernizing social messages is the en­ The Ecumenical Council, one of the most Washington Post and Times Herald of cyclical "Rerum Novarum" of May 15, 1891, on "The Condition of the Working Classes." important to have been held in many cen­ June 6, 1963, entitled "The Miracle of Pope John carried forward this movement turies, was the highlight of Pope John's Pope John," and an editorial from the not only in his two great encyclical letters career, and showed clearly what he hoped Springfield Sunday Republican, June 9, but by calling together the Ecumenical would be the future trend of worldwide 1963, entitled "Pope John XXIII, the Council. Christianity. The council took steps toward liberalization of ceremonies and a larger Man of the Century." What will now come of all this will be of degree of autonomy by bishops, and laid The article and editorial follow: critical importance not only to the Catholic Church but to all churches and to all gov­ the foundation for possible future moves [From the Washington Post and Times ernments. In any event; the modernizing through which all of the various separate Herald, June 6, 1963) movement can perhaps be arrested but it Christian groups might someday be reunited. THE MmACLE oF PoPE JoHN cannot for long be turned back. For what Despite his lofty station, Pope John never (By Walter Lippmann) Pope John began will have very big conse­ lost the common touch; amazingly, he could be the supreme pontiff and yet a common The reign of Pope John has been a wonder quences, and the history of our world will be different because he lived. man, at the same time. He tossed aside Which grows more astounding the more we many old customs of protocol, in order to think how amidst the angry enmities of be closer to all the people. He would not our time he became so greatly loved. It is a [From the Springfield (Mass.) Republican, eat alone, but in company with others. On modern miracle that anyone could reach June 9, 1963) impulse, he would leave his office to visit across all the barriers of class, caste, color, POPE JOHN XXIII, THE MAN OF THE CENTURY the poor, call on the sick, or simply talk and creed to touch the hearts of all kinds of with whatever ordinary people he happened people. There has been nothing like it, cer­ A few weeks ago a national magazine named Pope John XXIII as the man of the to meet. He preferred to journey afoot, tainly not in the modern age. The miracle disliking any mode of conveyance that sepa­ is a proof which we sorely needed that all year. Now he is recognized as the man of the varieties of men do actually belong to this century, as Abraham Lincoln was the rated him from the people, or elevated him one human family. Otherwise, so many could man of the 19th century. above them. not have heard and understood and re­ There are striking similarities between Through his own words, to the common sponded to Pope John. Pope John and Lincoln. Pope John was people on many such informal occasions, That they have responded is proof that the born of peasant stock; Lincoln was born in Pope John perhaps best revealed his in­ enmities and divisions of mankind are not a log cabin. Pope John made himself, in a tensely human side. "You have a Pope," the whole reality of the human condition. few short years, the man of the 20th century he once said, "who is himself a farmer's There is in men a capacity, unplumbed and because he strove for peace. Lincoln made son and who has never felt humiliated or perhaps unmeasurable, to be reached by lov­ himself the man of the 19th century be­ embarrassed because of his humble origin." ing kindness. The miracle of Pope John is cause he strove for peace and, like the Pope, Again, speaking in reference to his port­ that he knew this and believed it and had for equal rights for all men. able throne, known as the sedia gestatoria, faith to act upon it, and that he was proved One is reminded of Punch's famous tribute he said: "I would be most happy to walk to have been right. So, as he lies dead, he to Lincoln: "A true born king of men." on foot like everyone else. Then I think is revered and blessed by all sorts and condi­ Once again the similarity persists. Pope that 1f I went on foot, no one would be able tions of men all around the globe. John XXIII made himself "a true born king to see me, and, therefore, I use it (the We know that the miracle of Pope John of men" by championing the cause of all sedia) as an exercise of mortification." will not transform the world. The condition men of whatever faith or color. And another time, speaking to a captain of man is a hard one, and his struggle to Lincoln has been described as "the man of the papal gendarmerie, he said: "Captain, survive and to prevail will not disappear who forgot himself into immortality." Even you are a bigger noise than I am, because with the appearance of a saint and the in his dying moments, and in great pain, I was only a sergeant." proclamation of a saving truth. We shall not Pope John forgot himself and thought of Such was the pontiff who is mourned now suddenly become new men. But the univer­ others. throughout the world; as humble as he was sal response which Pope John evoked is It is as the apostle of peace in a century great, as close to the hearts of the common witness to the truth that there is in the already marked by the two greates·t wars in people as he was to God; one of the few human person, however prone to evil, an history and the threat of even greater wars really ·towering figures of our times: Pope aptitude for goodness. That is why we must to come, that Pope John stands out. He John XXIn. a true "servant of the servants," 1963 CONGRESSIONAL · RECORD - HOUSE 10527 whose name will be listed among those of 3 weeks later. In sewage that is passed employees. Special efforts must be made to the greatest in history. through usual treatment plants, only about clean off the besmeared surfaces. And now we may pray that his great 50 percent of the ABS is removed. In ground The experience of the Milwaukee plant is church will be inspired by God himself to water, the problem is particularly severe. duplicated throughout the Nation. Cleve­ choose a new leader who, as "a true born Once the water table is saturated, the rate land has reported the expenditure of $250,000 king of men" will reign over all hearts, as of degradation will be very, very low. In on equipment that will reduce but not elim­ Pope John did, in his appeal for peace fact, it may be years before our ground water inate the amount of foaming in its plant. and good will on earth. is free of ABS contamination even if we halt On the montage, you will note photographs additional ABS pollution. of foaming at other plants in several States. Thus, the detergents that help the Ameri­ In fairness, I note here that not all foam­ DETERGENT POLLUTION CAN BE can housewife persist in our water supply ing in rivers and treatment plants is attrib­ long after she has finished with them. utable to detergents. They are, however, the STOPPED NOW principal cause. Mr. ALBERT. Mr. Speaker, I ask DETERGENTS THAT RESIST DECOMPOSITION Third, detergent pollution represents an CAUSE MANY PROBLEMS unnecessary hazard to human health. unanimous consent that the gentleman But is there any harm in the presence of from Wisconsin [Mr. REuss] may extend Large doses of ABS fed to test animals over ABS-based detergents in our water? The a short period of time have not proved harm­ his remarks at this point in the RECORD answer unfortunately is, "Yes, plenty." ful. But the effects of continued ingestion and include extraneous matter. First, they cause foam in drinking water. of small amounts of ABS over a long period The SPEAKER. Is there objection The committee members will undoubtedly are still under investigation. to the request of the . gentleman from remember the outrage of citizens of a new, Fourth, detergent pollution is harmful to Oklahoma? expensive subdivision in nearby Mongomery waterlife and wildlife. ABS is toxic to fish There was no objection. County when they found sudsy water pour­ in concentrations that are already occurring Mr. REUSS. Mr. Speaker, this morn­ ing from their faucets last year. A photo­ in our waterways. The toxicity of deter­ graph of one of these disgruntled suburban gents to shellfish was a factor in the action ing I had the privilege of testifying on householders is to be seen in the montage of the Maryland Water Pollution Control the problem of detergent pollution be­ that I have had prepared. Water with a Commission in imposing regulations on the fore the Subcommittee on Natural Re­ sudsy head is surely unappetizing. It discharge of "hard" detregents into the sources of the House Committee on scarcely meets the human desire for clean, streams of that State this year. Government Operations. My testimony pure water. Fifth, in some instances billows of deter­ follows: Of course, in some cases the presence of gent foam have actualy endangered trans­ detergents in the water supply is accom­ port. In Germany, foam interfered with I appreciate the opportunity to testify panied by the presence of other pollutants, barge traffic and virtualy filled the locks or here today on the problem of detergent pol­ some of which are more injurious than ABS. inland waterways. Motor traffic on neigh­ lution of the Nation's surface and ground This has given rise to what may be called boring highways has also been endangered. waters. the "sudsy detective apology." According to The Department of Health, Education, and DETERGENT POLLUTION IS A SERIOUS AND this fantasy, we should be happy to see de­ Welfare, in its May 21 report by Secretary GROWING PROBLEM tergent foam in our drinking glasses be­ Anthony J. Celebrezze on my antidetergent cause it will indicate the presence of other Detergent pollution is, of course, only one pollution bill, said: pollution. The fact is that the detergent "Synthetic detergent wastes are a serious part of our total water pollution problem. molecule travels much farther than other But although it is a relatively new source problem in water pollution control. They pollutants. It pollutes wells that otherwise are markedly resistant to conventional waste of contamination of our water, it demands would furnish pure, potable water. our attention. It will become increasingly treatment processes. Normal waste treat­ The problem of improper well and septic ment plant operations are seriously impaired severe as more detergents are used each year, tank installations itself is serious and de­ as more water is used and reused in populous by the presence of detergent wastes, with a serves concern. But it can hardly be a justi­ resultant decrease in efficiency and increase areas, and as water tables in suburban and fication for the continued use of "hard" rural areas become saturated with unde­ in cost of ordinary waste treatment. In detergents. many cases, use of receiving waters for pub­ graded detergents. Detergents especially affront the natural lic water supply and recreation purposes is Technically, the term "detergent" includes beauty of our streams and lakes. It is dis­ rendered objectionable through the per­ soaps and other cleaning agents. But in tressing to see ugly mountains of foam in a sistent foaming action characteristic of de­ recent years, it has come t o apply mainly to serene woodland setting. The montage in­ tergent wastes. The potential health hazard synthetic detergents, most of which are cludes a number of photographs of this deg­ presented by these detergents is still under petroleum derivatives. radation of our scenic assets in New Eng­ investigation. Chemical tests have indicated These synthetic detergents were among land, Pennsylvania, Illinois, Virginia, Texas, that these wastes are acutely toxic to fish the celebrated "ersatz" products developed and New York. and wildlife when present in water in large in Germany during the First World War. Foaming in surface water used by water accumulations. We do not as yet know the Cut off by the allied blockade from an ade­ purification works has not yet become a adverse effects, if any, of these wastes on hu­ quate supply of natural fats, the basis for problem in this country although Germany, man health when ingested over a long period soap, the Germans turned to their able for one, experienced considerable difficulty in the minute quantities in which they may chemists who produced the first synthetic of this type as far back as 1959. And we be present in the public water supply. Re­ detergents for widespread use. may look forward to foam in municipal medial action is obviously necessary." Synthetic detergents did not come into water unless we take timely preventive general use in this country, however, until WEST GERMANY HAS ADOPTED ANTIDETERGENT action. POLLUTION MEASURES THAT WE CAN DUPLICATE after World War II. The availability of auto­ Second, detergent pollution interferes matic washing machines, the spread of com­ with the treatment of sewage and adds con­ In thinking about this problem early last mercial self-service laundries, and the ob­ siderably to the cost of sewage systems. The year, the German experience attracted my vious superiority of detergents, particularly sewerage commission of my own city of Mil­ attention. I visited West Germany last No­ in hard water, led to a quick conquest of waukee has recently undertaken a study of vember and talked with scientists and gov­ the market by the new products. Today, de­ this problem. It showed that the annual ernment officials. They told me that when tergents constitute more than 75 percent of maintenance cost to deal with detergents the need for action became clear, a joint the volume of the entire soap and detergent amounts to $50,000. The problems caused committee of industry and local, state, and industry in the United States. by the detergents in treatment and plants Federal Government representatives was The total sales of detergents last year include: formed. The committee's studies led to the amounted to about 4 billion pounds and are 1. Fats, oils and grease are emulsified by passage on September 5, 1961, of the deter­ increasing at an annual rate of about 5 per­ detergents. The emulsified material is not gent law which will ban, after October 1964, cent. About 75 percent of all detergents sold removed in the plant's grease removal facili­ detergents that do not meet certain stand­ contain alkyl benzene sulfonate, called ABS ties, thus reducing the efficiency of the acti­ ards of decomposability. German industry for short, as the main cleaning agent. Al­ vated sludge process. ts readying production facilities to comply though ABS is not the only culprit, it has with the law. Several kinds of degradable rightly been in the limelight as the prin­ 2. The efficiency of the aeration process is detergents, which reportedly will clean as ciple cause of detergent pollution. For also reduced, required additional compressed well as ABS products and pollute the water reasons that are not fully understood, ABS air at added costs. far less, are soon to go into production. is highly resistant to decomposition by natu­ 3. Settling characteristics of the partially The bill that I have proposed, H.R. 4571, ral processes in rivers and streams and treated sewage are reduced. As a result, adopts much the same approach. It would ground water and by standard sewage treat­ more pollutants remain in the effluent that ban the manufacture or importation after ment plants. is returned to the water. June 30, 1965, of any detergent that did not As much as half of the ABS that house­ 4. Detergent foam is deposited on walk­ meet standards of decomposability to be set wives send into streams on a given washing ways, buildings and roadways, forming a by the Secretary of Health, Education, and Monday will still be in the water system slippery slime that represents a hazard for Welfare. .10528 CONGRESSIONAL RECORD- HOUSE June 10 The production of a degradable detergent slble to prevent a large importation of hard LET THE FEASIBILITY OF A VOLUNTARY SOLUTION is certainly possible by about that time. The detergents, especially if there were a price BE TESTED IN THE NEXT 2 MONTHS abllity of German industry to comply with differential between hard detergents and the Chairman BLATNIK of the Rivers and Har­ the similar German detergent law by October new degradable detergents being offered by bors Subcommittee of the House Public 1964 is good evidence that American industry American companies? Works Committee has indicated that hear­ could live up to a similar law effective al­ 2. Does the often-made promise of soap ings on H.R. 4571 will be held shortly after most a year later. An industry spokesman and detergent association spokesmen mean August 1. I urge the representatives of has been quoted as promising that a degrad­ that the companies for which the associa­ HEW and the detergent industry to be ready able detergent would be on the market by tion speaks are w111ing to convert completely then to present a draft agreement to end 1965. There is no reason why passage of to marketing of degradable detergents by detergent pollution, with answers to the H.R. 4571 should hurt industry. The tech­ the end of 1965? The 6 months difference questions I have raised. The 2 months be­ nical job of setting standards is left to the between the effective date of H.R. 4571 and tween this hearing and that should provide official best qualified to do so who can rely the date fixed by industry for the introduc­ an ample opportunity to work out a volun­ upon the advice of the scientists and other tion of mass marketing of degradable de­ tary agreement, if one is possible. If one is technicians of his department. tergents does not appear to be of crucial sig­ nificance if the industry intends a complete not possible, I shall expect the Department IS A VOLUNTARY SOLUTION REALLY POSSIBLE? of Health, Education, and Welfare, as it switch to a product that wm break down states in its May 21 letter, "to urge the en­ The Department of Health, Education, and in our ground water and streams. But if Welfare has, however, suggested that be­ the industry intends only to begin marketing actment of legislation to accomplish the fore legislation is enacted, voluntary cooper­ a degradable detergent at the end of 1965 objectives of H.R. 4571." ation to eliminate "hard" detergents should and to continue selling detergents that will be sought. pollute our water supply for a long time to In his report on H.R. 4571, Secretary Cel­ come, we are faced with a very different NET FARM INCOME DOWN DESPITE ebrezze wrote: proposition. Detergent pollution would "We are aware that the synthetic deter­ then continue. INCREASE IN GOVERNMENT PAY­ gents industry is currently engaged in ef­ The detergent industry has often trum­ MENTS TO FARMERS forts to develop a product that wm meet peted that it is spending $5 million a year Mr. REIFEL. Mr. Speaker. I ask the objectives of this bill. The industry has on research on detergents. It fails to men­ set the end of the year 1965 as its target tion that its spending to create a better unanimous consent that the gentleman date for the production of such detergents. product is an estimated 2 percent of its from Illinois [Mr. FINDLEY] may extend This target date is within 6 months of the outlays designed to convince the public to his remarks at this point in the RECORD deadline set by the b111. We are prepared buy the products that are polluting our and include extraneous matter. to consult with and encourage the industry water system. The SPEAKER. Is there objection in its efforts and to explore thoroughly with 3. Is the industry willing to make a bind­ to the request of the gentleman from the industry the synthetic detergent prob­ ing agreement? It will not serve the public South Dakota? lem in all its ramifications (including bio­ interest or indeed the longrun interests of degradability and other aspects) bearing on There was no objection. industry to create the 111usion that means Mr. FINDLEY. Mr. Speaker. official the prevention and control of water pollu­ of ending detergent pollution have been tion. If reasonable progress toward resolv­ found and then to discover, in the moment reports show Kennedy supply-manage­ ing the problem is not obtained through of truth, that "unforeseen difficulties" pre­ ment programs have not helped farm in­ such voluntary Government-industry coop­ vent the conversion to degradable detergents. come. eration, we would not hesitate to urge en­ The U.S. Department of Agriculture actment of legislation to accomplish the 4. Will States or localities consider the objectives of H.R. 4571. The extent of in­ voluntary agreement of the detergent in­ has reported a new decline in the farm dustry's desire and willingness to proceed in dustry sufficient? If they should not, they parity ratio. and has predicted that net this direction may be further assessed by could impose their own regulations. Some farm income this year will be down. de­ the committee in the event that hearings have done so already. We could end up with spite an increase in Government pay­ are conducted. a patchwork of local and State ordinances ments to farmers. "In conclusion, while we support the ob­ that would impede interstate commerce and My information is from the Economic jectives of H.R. 4571 and would endorse the hurt the economy by balkanizing the deter­ gent market. Research Service of the USDA. enactment of legislation along the lines of Net farm income is expected to be $200 this bill if the voluntary approach is not WE CANNOT WAIT LONG TO FIND OUT WHETHER productive within a reasonable time, we A VOLUNTARY SOLUTION IS POSSIBLE to $300 mil1ion below the preliminary estimate of $12.9 billion for 1962. recommend that final legislative action on So far, the attitude of the detergent in­ the bi11 be deferred to provide an opportuni­ dustry has not been very encouraging. For Government payments to farmers in ty for the voluntary solution of this prob­ example, Procter & Gamble spokesmen have 1962 were estimated at $1,736 million, or lem." contended in recent statements to Wiscon­ 13 percent of the total net farm income If an agreement to eliminate detergent sin and national journalists that a U.S. law for the year. These payments are ex­ pollution can be obtained without legisla­ banning the sale of nondecomposable deter­ pected to increase by $150 to $200 million tion, I am all for it. But certain questions gents would be "unwarranted" and unreason­ in 1963. present themselves. I hope that the De­ able. Yet P & G has been busily constructing Kennedy farm programs are costing partment and industry representatives will a large new plant at Worms, Germany, where be able to provide satisfactory answers. the company wm have to comply with a law taxpayers a billion dollars more this year 1. Is it possible to make an agreement that similar to the one I propose. than last year. Despite all this in­ will eliminate the manufacture or marketing Efforts to obtain a voluntary agreement .creased spending-including a 10-per­ of hard detergents by all companies? on detergents in Germany foundered when cent jump in Government payments to This question is founded in the fact that some industries refused to cooperate. It farmers-net farm income is expected there are many companies that produce and proved necessary to resort to legislation not to drop. market ABS or ABS-based detergents. It is only to accomplish the national goal of purer The May 15 parity ratio is 77, the low­ true that three companies-Procter & Gam­ water but to protect the cooperative and est May 15 level since 1939. The parity ble, Lever Bros., and Colgate-Palmolive­ responsible companies from unfair, unscru­ ratio shows the relationship between Peet-sold 420 of the 560 million pounds of pulous competition. Perhaps we will have ABS used by American industries in 1962. greater success in this country. I am cer­ prices paid and prices received by farm­ This still leaves a considerable amount-140 tainly willing to try, under a time schedule ers. m111ion pounds-that was disposed of by that will leave time to protect the public In Illinois, the parity ratio is 71 for other companies. Some observers expect interest if an effective, voluntary agreement the second month in a row; the lowest that a decision to abandon the use of ABS proves impossible. We cannot wait long level on record since 1934. by one or more large users would cause it to find out whether a voluntary approach is to decline in price. Wouldn't this encour­ feasible if we are not to delay unnecessarily age the continued, or even expanded, use of the day when the problems of detergent pol­ ABS by companies which did not participate lution will begin to decline rather than in­ TO THE HUNGARIANS: ABANDON in the agreement? Under such circum­ crease. HOPE stances, the responsible companies would If the industry is interested in voluntary find themselves at a disadvantage relative steps to eliminate detergent pollution, I Mr. REIFEL. Mr. Speaker. I ask to their irresponsible competitors. challenge it to begin immediate negotiations unanimous consent that the gentleman Whatever the agreement made among with the Department of Health, Education. from Dlinois [Mr. DERWINSKI] may ex­ American companies, foreign producers and Welfare to work out a timely and effec­ tend his remarks at this point in the would be unaffected. How would it be pos- tive agreement. REcORD and include extraneous matter. 1963 CONGRESSIONAL RECORD- HOUSE 10529 The SPEAKER. Is there objection Hungary is the latest evidence that the The chamber, therefore, proposes to the request of the gentleman from administration's policy is one of surrender · guidelines and specific measures to re­ South Dakota? on the installment plan. direct the Act for International Develop­ There was no objection. ment of 1961 in order to accomplish more Mr. DERWINSKI. Mr. Speaker, re­ . FOREIGN AID fully its original objectives and particu­ cent upsetting developments at the U.N. Mr. FASCELL. Mr. Speaker, I ask larly to make it a more effective base for include surrender on the part of the unanimous consent to address the House private enterprise without which no U.S. United States to previous policy toward ·for 1 minute, to revise and extend my re­ government-to-government assistance the admission of the Hungarian Com­ marks, and to include extraneous matter. program can hope to succeed. munist delegates to seats in the U.N. The SPEAKER. Is there objection In presenting the policy and recom­ The Chicago Tribune, on Friday, June to the request of the gentleman from mendations of the Chamber of Com­ 7, carried a blistering editorial discussing Florida? merce of the United States, I express my this latest diplomatic retreat of the Ken­ There was no objection. commendation to Mr. John 0. Teeter, nedy administration, which I will insert Mr. FASCELL. Mr. Speaker, on June who represented the chamber, as well as in the RECORD at this point: 6, 1963, the Chamber of Commerce of the the staff and the committee members of TO THE HUNGARIANS; .ABANDON HOPE United States testified on H.R. 5490 con­ the chamber's foreign policy committee, The Kennedy administration has made the taining President Kennedy's fiscal 1964 its joint subcommittee on foreign aid, its ultimate retreat before the savage Commu­ proposals for the foreign aid program. advisory committee on foreign aid, and nist tyranny of Janos Kadar in Hungary. We all recognize that the opinion and its board of directors, for the diligent Since 1956, when Khrushchev's tanks and position of the Chamber of Commerce work and study on this vital subject. The Asiatic divisions crushed the anti-Commu­ of the United States carries great weight statement of policy, together with the ex­ nist rebellion in Budapest, the Hungarian and deserves every consideration. The planatory matter, are as follows: Communist delegation has been denied seats Chamber of Commerce of the United in the United Nations. TESTIMONY OF JOHN 0. TEETER, FOR THE States represents almost 4 million mem­ CHAMBER OF COMMERCE OF THE UNITED The issue has come up year after year in the general assembly's credentials committee. bers. There are 30 thousand business STATES ON FOREIGN AID--PRESENTED TO THE firms which are direct members of the HOUSE FOREIGN .AFFAIRS COMMITTEE, JUNE This year, Greece, which had until now voted 6, 1963 with the United States against seating the national chamber. In addition there Communists, announced that it would no are 33 State chambers of commerce I am John Teeter, vice president of Pfizer longer oppose. This appeared to insure that which are organizational members, 3,800 International, . My testimony Hungary would regain its place. The United local chambers of commerce, and 800 on H.R. 5490 represents the views of the States promptly announced it would not op­ Chamber of Commerce of the United States. trade and professional organizations. I serve on the chamber's foreign policy com­ pose accreditation. The policy positions of the Chamber This action is part of a pattern which mittee, its joint subcommittee on foreign aid, has been developing. The first move came of Commerce of the United States are and its newly created advisory committee on last December. Upon American initiative, always thoughtfully and carefully con­ foreign aid. the U.N. Assembly dismissed Sir Leslie Mun­ sidered, studied, evaluated, and adopted. In presenting the position of the national ro of New Zealand as its special represent­ This makes them all the more meaning­ chamber on foreign aid, I want to emphasize ative on the Hungarian question. Munro's ful. four points: assignment was to make a continuing assess­ This year's testimony on behalf of the First. There is no single foreign policy is­ ment of Communist repression of Hungar­ Chamber of Commerce of the United sue on which Congress both can and will act ian liberty. He was no friend of tyranny, this session that is more important to the and Kadar and Khrushchev kept him from States was presented by Mr. John 0. Government, the people, and the business entering their countries. U.N. turned his Teeter, vice president of Pfizer Inter­ community of this Nation than foreign aid. duties over to U Thant, its secretary general, national, New York City. He did an ex­ Second. Congress must act this session­ who is on cordial terms with Communists. cellent job as did the staff of the chamber wisely and boldly-if the aid program is to The next step, in May, found the State who accompanied him. All members of be saved, from its enemies, its friends, from Department propositioning Congress for sup­ the Foreign Affairs Committee were very itself. port to reopen full diplomatic relations with much impressed with the thoroughness, Third. The right answers to the seemingly the Kadar regime. It produced a propagan­ the detail, and the obvious study which unsolvable problems of foreign aid already da paper which suggested that everybody have begun to take shape. A consensus now was much happier in Hungary. Mr. Teeter had given his subject. He answered all questions ably and forth­ has begun to emerge-a consensus of what On Wednesday, when Hungary regained needs to be done to put the program on the its seat, the United States did not cast an rightly. · What was especially gratifying, road to recovery of its sound but elusive ob­ opposing vote, but merely registered "reser­ however, and the principal reason I take jectives. It remains for Congress to give di­ vations." Our delegate, Mr. Yost, did vote in this time, is not only to acquaint my rection and impetus to this intelligent ap­ turning away Red China, but because of the colleagues with the position of the proach to attainable goals. ideological dispute between Moscow and Pe­ Chamber of Commerce of the United Fourth. Until improvements are made in king, that will hardly be offensive to Khru­ States as ex!)ressed by Mr. Teeter, but the program it is useless and wasteful to ap­ shchev. also to demonstrate the extent of the ob­ propriate funds in the increasing magnitude Significance can be read into the Greek jective criticism and the affirmative rec­ requested by the Government. More money, switch on Hungary. The Greeks are on the misspent, can do more harm than good. American payroll and would be subject, pre­ ommendations in detail which were sumably, to Washington's wishes. made. It was a most thorough presenta­ THE IMPORTANCE OF FOREIGN AID As we said before, it all looks like part of tion, extremely useful, and helpful for With regard to the significance of this a deal between Kennedy and Khrushchev, our consideration on the committee and year's foreign aid legislation, the expressions beginning with the accommodation which I feel it will be extremely useful and the national chamber is receiving on the leaves communism inviolate in Cuba. After helpful for the consideration of my subject from its membership probably are as that the· American Jupiter missiles in Italy voluminous, as varied, and perhaps as pas­ and Turkey which were zeroed in on Russian colleagues. sionate, as the opinions you are getting from targets were dismantled and withdrawn. It must be remembered that this pol­ home. And with good reason, too. Restraints have been placed on Cuban exile icy statement was adopted at a national The most important reason is because an raids against Castro's island, and this is but convention by 3,000 delegates from all effective U.S. foreign aid program is essen­ one of many instances of a drive toward mas­ parts of the country. This support of tial to our national security and our foreign sive accommodations with Soviet power. the foreign aid program is not new. The poJicy objectives. Properly conceived and Everything is in the pattern of the paper U.S. Chamber of Commerce for more carried out, foreign aid should, can, and does credited a year ago to Walt W. Rostow, the promote the American system; provide a State Department policy planner, who ad­ than a decade has endorsed the principle counterforce to international communism; vanced the thesis that the Soviet Union was of foreign aid. This year the chamber promote responsible local foreign develop- "mellowing" and "evolving" into a "mature" renews its support, noting that the pro­ . ment, and protect our increasingly important state with which we could achieve compat­ gram's objectives "are increasingly ur­ oversea markets and sources of supply, as ability. The insistent calls for "victory" for gent to achieve," but also.that the pres·­ well as our military security. world communism which are dinned into ent program, despite numerous efforts to ;Foreign aid aims at fostering the national our ears from Moscow attest that such no­ make it more effective. "has fallen far interest in several ways. It is designed to tions are foolish and suicidal. short of its objectives." provide military protection at less cost than 10530 CONGRESSIONAL RECORD- HOUSE June 10 the United States could undertake alone. recognized this challenge when he commis­ come to call the aid gap-between program Longer range, in addition to furthering polit­ . stoned the Clay Coxnmittee as a board of and performance. Thus, in the next-to-last ical freedom and democracy abroad, it is public inquiry to determine whether foreign column, we have attempted to summarize intended to help develop strong free world aid- the most obvious shortcomings of the pres­ markets in the less developed areas-markets (1) "is contributing materially to the se­ ent foreign aid program, as seen by its re- whose strength and growth can expand and curity of the United States," and (2) "is di­ ·.sponsible critics. strengthen our domestic economy as well. -rected to specific and attainable goals." If the identification of the program's most In addition, foreign aid is an expression of A major and frequent criticism of the for­ serious gaps is. to be of any constructive use, deep American moral and spiritual instincts eign aid program, of course, is the cost. The it must be followed by positive corrective to render humanitarian help to other peo­ American people have invested $100 billion action. This we have tried to suggest in the ple in need. in foreign aid of one kind or another since final and most important column in the The U.S. business community has a direct the end of World War II. chart, headed "What's Needed." interest and stake in the accomplishment Public concern over the fiscal affairs of this Just as the "What's Needed" column is of these goals. It is on the free markets of country-the annual deficits, the mounting meaningless without the seven columns pre­ trade and private capital that economic, po­ national debt, the drain of dollars and gold ceding it, so it could be regarded as presump­ litical and social development and growth caused by an unfavorable balance of pay­ tuous without a word of explanation about depend. The administrators of the aid pro­ ments situation-is unquestionably an im­ how it was derived and by whom. gram recognize this stake of private enter­ portant element in the controversy. For more than a decade, the National prise. They consistently point out that But to put the troubles of foreign aid Chamber has reflected_ f~ithfully the views government-to-government aid cannot, by it­ entirely on the amount of money involved is on foreign aid held by its vast membership. self, either afford the costs of the program _both an oversimplification and misleading. · We have consistently supported the prin­ or accomplish its objectives, and that an It is not only the amount of money, but . ciples of foreign aid, testified for or against increasing share of the task must be under­ the results of the expenditures that are at specific administration legislative proposals, taken by the private sector. issue. and favored substantial savings in proposed To stimulate that participation, programs To people reared in a ·market-type econ­ foreign aid budgets. This year we specifi- have been established by the U.S. Govern­ omy, the question, "Are we getting our . cally recommend positive, concrete new ment to encourage U.S. investment in money's worth?" is important. measures, developed with the assistance of underdeveloped countries. These include The debate is over not only "How much over 300 leading U.S. businessmen and investment guarantees, investment surveys, foreign aid?" but "What kind of foreign based upon policies approved by our mem­ foreign currency loans, and long-term dollar aid?" and "To whom?" bership. loans. An overflow of applications for invest­ SOME ANSWERS TO THE PROBLEMS Starting with our foreign policy commit­ ment guarantees is an example of the re­ tee and its own subcommittee on foreign sponse of business to the call for assumption Answers to the problems of foreign aid will not come easily, nor will they solve aid, the chamber recommendations before of a major role in the development of less­ you were shaped and refined by a joint developed areas. As of March 31, 1963, 1,000 overnight either the program's inherent shortcomings or its inability to meet un-· · subcommittee on foreign aid, made up of applications for investment guarantees were representatives of five of our standing com­ in process, totaling over $3.5 billion. (The reasonable demands upon it for quick, demonstrable payoffs. Nevertheless, a num­ mittees (foreign policy, foreign coxnmerce, national chamber's position on the invest­ national defense, finance, and government ment guarantee program is scheduled for ber of recent, responsible reappraisals of foreign aid at least point the way toward operations and expenditures). The product consideration at a meeting of its board of of this exercise then went to the chamber's directors later this month.) some practical, constructive action. Here is a chart prepared by the chamber board of directors, and finally to our new Foreign aid contributes to employment in special advisory committee on foreign aid the United Sates of workers supplying goods in an effort to map out as clearly as possible the policy directions indicated by this emerg­ ·drawn from executives and representatives and services to the recipients of foreign ald. · of companies affected by foreign aid one way These jobs have been created In part by the ing consensus. Down the lefthand column we have listed the major parts of the aid or another. Through our staff, we researched expansion of markets stimulated by aid all available information and opinion, held funds. program-all the way frpm its basic policy guidelines through such features as eco­ extensive and candid discussions with for­ An estimated 84 percent of all current aid eign aid specialists in Government, Congress, disbursements are now "tied" to purchases nomic development, private participation in­ centives, the Alliance for Progress, multi­ and the academic community, including a of U.S. goods and services, and the Agency conference of our joint subcommittee with for International Development (AID) is lateral aid, military aid and supporting assistance, to contingencies and budget ·General Clay. seeking ways to increase this percentage to I realize, Mr. Chairman, that the coxnmit­ 90 to 95 percent-a step which, incidentally, account transfers. Across the top we have delineated, first, . tee is more concerned with concrete recom­ considerably reduces the balance-of-pay­ . mendations than with the history of how we ments strain of aid on the U.S. economy. the provisions of the present law relating to the categories in the lefthand column. _arrived at thetn, so I shall return to "What's It is a true mark of its importance that The successive columns summarize the Needed." foreign aid has so consistently been sup­ recommended improvements in each category _ PURSE STRINGS FOR IMPROVEMENT ported in principle for 15 years by the which have been proposed this year by: American people, through both political par­ I should like at this point to call the the National Chamber in its March 15 Policy coxnmittee's attention to the comparative ties, three Administrations, eight Congresses Statement on Foreign Aid; the Clay Com­ and countless organizations representing budget analysis included as part oi this business, labor, churches, and civic groups. mittee; other responsible interested groups, -statement, which shows the chamber's spe­ such as the Commerce Department's busi­ cific appropriations recommendations for FOREIGN AID IN CRISIS nessman's Committee on the Alliance for each major budget item in the aid program. This year, however, it is apparent that Progress (COMAP) the Business Council for You will note that we urge both specific support of the principles of foreign aid is International Understanding (BCID), the -reductions in the administration's revised not enough. Criticisms of foreign aid in International Economic Policy ABsociation, requests, and specific support for a number practice-how programs are conceived and numerous Congressional subcommittees, of economic and social development pro­ carried out--have been building up over the study teams, and individual members, and grams. The recommended cuts are as fol­ years to a point where they now threaten to finally, by the President in his message to lows: development loans, $160 million; devel­ place the entire program in serious jeopardy. Congress of April 2. opment grants, $57 million; Alliance for AJ3 the report of the Clay Committee so well In the next column, we have compared Progress, $250 m11lion; supporting assistance, put it: with these recommendations the actual $135 million; contingency fund, $100 million; "There has been a feeling that we are amendments to the present law which have military assistance, $205 million. Our total trying to do too much for too many too been submitted by the administration-in recommended reduction is $913,075,000. soon, that we are overextended in resources other words, the provisions of the Foreign It should be noted that of our recom­ and undercompensated in results, and that Assistance Act of 1963, H.R. 5490, which is mended $913 million reduction in the last no end of foreign aid is either in sight or in now before this committee. official administration figure of $4.5 billion, mind." A careful comparison of present law, sug­ we suggest paring one-half from military Even this succinct summary only hints at gested improvements, and the administra­ aid, supporting assistance, and the con- the misgivings about the program shared by tion's proposed amendments is the very -tingency fund. Most of the remainder would the businessmen who are affected by it, the least exercise necessary to any meaningful be withheld from the Alliance for Progress taxpayers who finance it, the legislators who evaluation of the current foreign aid pro­ until it is reorganized along lines suggested vote on it. In fact, the misgivings are gram. in the "What's needed" column of the cham­ shared by many of the officials who admin­ The chamber's evaluation (found in the ber aid chart. ister it. Never before have its goals, methods last two columns)_:.including a second look The programs for which we recommend and worth been so seriously and simulta­ at our own aid statement earlier this year-=­ full budgetary support are: International neously challenged. Pres~dent Kennedy discloses what we in the chamber have now organizations and programs, $136 million; In- 1963 CONGRESSIONAL ·RECORD- HOUSE 10531 ter-~erican Development ~ank an~ Social Let me say a word about our view that the aid be directed much more specifically to Progress Trust Fund, $200 million; surveys purposes, objectives, and priorities of the aid sound host-country programs, and less to­ of investment opportunities, $1.5 million program require much more precise defini­ ward one-shot projects designed for their (which item has now been dropped from the tion. We are aware that AID Director Bell political or "showcase" prestige effort. We administration's revised requests); The In­ already. has taken several .steps in the right further urge that economic aid be spent pri- ternational Development · Association, $61.7 direction. The Agency's presentation to this - marily for those programs which -place new million; American schools and hospitals committee is one of the best we have seen. emphasis on the use and development of the abroad, $22 million; assistance to Cuban We also are aware that AID is preparing a private sectors of the host-country econo­ refugees, $70 million. still more detailed interpretation of its basic mies, including both domestic and foreign I also want to call your attention to the policy guidelines and crt teria to serve as an private enterprise. We favor much greater attached explanation of the reasons for each operations manual in the field as well as at selectivity in choosing from among the cut. (This document is based on the ad­ headquarters. We applaud the Agency's new countless requests for aid which pour in ministration's original requests, before they efforts along these -lines. from over 100 countries. We believe those were revised downward by $420 million. How­ But this committee is aware that these are who show the most progress should receive ever, the reasons for the recommended re­ not the first in a long line of sincerely moti­ _priority. ductions remain the same.) We also explain vated assurances that measures to promote To stimulate self-help reforms, we pro­ our reasons for. supporting the administra­ sounder long-range economic development pose that economic aid be made contingent tion requests we approve in full. and greater private enterprise participation on progress reports from the aid-recipient The net effect of these proposals is na­ are forthcoming. The new administration countries. and Congress said the same thing clearly and To promote vitally important private par­ tional chamber support for a $3.6 billion au­ convincingly in 1961 in the Act for Inter­ thorization. This is within half a billion dol­ ticipation, we propose amendments and ad­ national Development. As the "Aid gap" ministrative steps to improve existing lars of the amount General Clay has said the column shows, however, progress still is far administration could live with. incentives. from staisfactory. We therefore urge action To revitalize the Alliance for Progress, we · To summarize, the national chamber aims by Congress to bind AID to its most recent at three specific objectives: propose legislation to establish an OECD-type promises. This could be done through legis­ institution to act as a central forum and 1. A return of foreign aid programs to the lative history, reports to Congress and the clearinghouse for sound coordination of sound principles of long-range economic de­ public, or appropriations bill controls, or by economic policies among the Western Hemi­ velopment laid out in 1961 in the Act for In­ amendment to the basic act. sphere nations-coordination which is essen­ ternational Development and in the Foreign For example, the chamber urges specific tial to the success of the Alliance. Assistance Act. amendments to the policy section of the law We propose steps to increase the use of 2. To develop the means for a vastly stepped (sec. 102) to make more certain that eco­ multllateral aid, not as a substitute for bi­ up inflow of private capital, know-how, and nomic aid funds are not used, as they have lateral aid but as a supplement to Jt, which initiative into the aid program. Our own aid been in the past, for bailout aid for sup­ in numerous instances is more capable of planners tell us that such inflow is impera­ posed financial or milltary crises. This is a enforcing sensible conditions than bilateral tive if foreign aid is ever to reach its foreign kind of aid which, once begun, has been aid. policy goals. virtually impossible to stop. There is no In conclusion, Mr. Chairman, I request 3. The curtallment of appropriations in better example than bailout aid to demon-· that the attachments to this statement be the increasing magnitudes requested by strate the program's own violation of its made a part of the official record of your the administration, pending more demon­ stated objectives of long-range planning hearings. strable moves toward long-range economic assistance. Thank you. development programs and greater private We acknowledge the need for flexibility in enterprise participation. administering the program. We do not pro­ Next, I would like to discuss some of the pose to repeal the limited authority con­ CHAMBER POLICY ON MUTUAL SECURITY highlights of the "What's needed" ·column tained in section 610 to transfer up to 10 The chamber supports foreign economic of our chart. percent of the money in any aid fund to and military assistance as instruments of WHAT'S NEEDED another aid fund, nor the authority under U.S. foreign policy to strengthen the security You will note that the specific recom­ section 645 to consolidate unexpended bal­ of the United States and other nations of mendations in the "What's needed" column ances. We do propose that this flexibility the free world through responsible political are of three types. One calls for specific be restricted to funds authorized for non­ freedom, social progress, and individual en­ amendments to certain sections of the basic economic aid purposes, and that no funds deavor. act. Another asks for a more precise ex­ for economic development--whether fi­ In implementing these programs, particu­ pression of congressional Intent--which can nanced from the development loan fund, lar emphasis must be placed on the role of be done through language in the preamble, development grant fund, or the economic private enterprise ln economic development. in the appropriations blll, in committee re­ funds under the Alliance for Progress--be To achieve long-term U.S. foreign policy ob­ ports, or in some cases as part of the legis­ used for other than economic development jectives in each area and country, and to lative history in debate on the floor. Finally, purposes. We further urge that when trans­ engender widespread understanding and we urge the President and the administra­ fers and consolidations are made under sec­ support, the concept, scope, and adminis­ tors of the aid program to take additional tions 610 and 645, the funds be used for tration of foreign assistance programs must positive action through Executive orders, purposes for which they were authorized. be continually reviewed and improved. regulations, and directives which require no To encourage long-range economic devel­ Other free world nations should share in­ additional congressional authorization. opment planning, we propose that economic creasingly in bearing these responsibilities.

Comparison of budget requests and recommendations for the foreign aid program [In thousands of dollars)

Revised Cham- Initial Con- Cham- Admin- Revised Cham- Initial Con- Cham- Admin- adminis- ber admin- gres- ber istra- adminis- ber admin- gres- ber istra- tration recom- istra- sional recom- tion tration recom- istra- sional recom- tion Activity request, menda- tion appro- menda- request, Activity request, menda- tion appro- mend a- request, fiscal tion, request, priation, tion, fiscal fiscal tion, request, priation, tion, fiscal year fiscal fiscal fiscal fiscal year year tlscal fiscal fiscal fiscal year 1964 year year year year 1963 1964 year year year year 1963 1964 1964 1963 1963 1964 1964 1963 1963 ------Development loans._----- 11,060,000 900,000 1, 248,000 975,000 900,000 1, 250,1)()0 Contingency fund______300, 000 200, 000 400, 000 250, ooo 200, 000 400, 000 Development grants______1 257,000 200,000 275,000 225,000 235,000 335,000 Military assistance_. ______11,405,000 1, 200,000 1, 480,000 1, 325,000 1, 350,000 1, 500,000 American schools and hos- Administrative expenses, pitals abroad______20,000 20,000 ------AID.------57,250 50,000 57,250 49,500 50,000 55,000 In vestment guarantees.___ 30, 000 100, 000 100, 000 Administrative expei;J.ses, Surveys of investment State------3, 025 2, 700 3, 025 2, 700 3, 000 3,100 opportunities ______------1, 500 1, 500 ------3, 500 5, 000 Hospitals abroad (local Alliance for Progress ____ .. 1 650, 000 400,000 700, 000 525, 000 400, 000 600, 000 currency)______2,000 2,000 2,000 2,800------2,800 Social progress trust fund.. 200,000 200,000 200,000 International organiza- Total, foreign aid tions and programs_____ 136,050 136,050 181,250 148,900 148,900 148,900 program______14, 525,325 3, 612,250 4, 945,025 3, 928, 900 3, 790, 400 4, 961,300 Supporting assistance_____ 435,000 300,000 397,000 395,000 400,000 481,500

1 Additional reductions in these activities subsequently suggested by General Clay would further lower total by $200,000,000 to $500,000,000. CIX---663 10532 ·coNGRESSIONAL RECORD- HOUSE June 10 U.S. chamber comparative analysis of aid

Present law (Foreign Assistance Chamber recommendations Olay Committee recommendations Other recommendations 1 Act of 1961, as amended) (Mar. 15, HJ63) (Mar. 20, 1963)

Policy gutdeltnes ______Sec. 102 authorizes aid to less­ Clearly delineate program objec­ Tighten and sharpen objectives Direct aid to specific foreign developed friendly countries to tives and priorities relative to in terms of U.S. national interest. policy goals (Comap 2). Apply promote peace, freedom, and free U.S. foreign policy. Identify Condition aid on achievement of greater selectivity (IEPA, Sena­ world security. Sets aid criteria: specific aid purposes and finance self-help measures. Apply greater tor MANSFIELD, Representative Sound plans and programs; social from controlled separate funds. selectivity; carefully examine aid MONAGAN). Limit extension of as well as economic aspects of de­ Emphasize long-range economic for political as well as economic aid to countries not now receiving velopment; self-help by recipient development planning; assure full reasons; determine kirld and basis it(SenatorMANSFIELD). Spellout countries; long-range development. role for private enterprise. Apply of aid on economic grounds. Em­ aid conditions (Representative Urges multilateral participation, greater selectivity :.n choosing phasize greater burden sharirlg DAwsoN). Define objectives, burden sharing, and free flow of nations and projects to be aided. through specific U.s. representa­ establish clear-cut criteria and private investment capital. Apply stricter self-help criteria to tions and OECD Development standards, balance Government point where local reforms are prime Assistance Committee; urge allies and private irlvestment capital factor in qualifying for U.S. aid. to apply softer terms. (Representative MEADER). Stress Emphasize burden sharing through burden sharirlg. (IEP A Senator Development Assistance Commit­ MANSFIELD, Representative1 MON­ tee of the OECD. Reduce short­ AGAN). run emergency aid for financial bailouts, military purposes, and politically inspired projects. ·Economic development . ••. Sec. 201 authorizes dollar loans Development loans should re­ ERtablish harder terms for de­ Channel increasing percentage to promote economic develop­ ceive priority, carry increasingly velopment loans in some coun­ of development loans through pri­ ment, emphasizes long-range harder terms, be prohibited from tries. Shift aid from subsidy and vate enterprise; establish separate plans and programs to develop use for other than stated purposes. gift to loan basis. Specify dura­ fund for Government loans for economic resources and increase Speed shift from grants to loans. tion of technical assistanee. basic infrastructure (IEPA). productive capacities. Sec. 211 Land-grant college should con­ Speed shift from grants to loans authorizes grants and technical tribute. (Senator MANSFIELD, Representa­ assistance, emphasizes develop­ tive MONAOAN). Gear aid to de­ ment of human resources. velopment level of recipient coun­ tries; short-ter:.:q impact projects should E-volve irlto long-range de­ velopment plans (Senator Hmr­ PHREY). Frlvate participation in· Sec. 601 encourages private en­ Encourage positive host-country Stimulate private-sector incen­ Emphasize private invest­ centives. terprise participation, requires planning for private investment~ tives. Refuse aid to Government­ ment (Comap, Representative President to (1) find and draw trade, and initiative-local ana owned industrial and commercial MEADER). Encourage joirlt attention to investment and de­ foreign; improve and redirect ex­ enterprises which compete with ventures between United States velopment opportunities; (2) ac­ isting incentives for private par­ existing private endeavors. and local Private enterprise (Sena­ celerate negotiation of tax, com­ ticipation. Employ authority for tor HUMPHREY). Grant U.S. in­ merce, and trade treaties facili­ dollar loans to U.S. firms. Re­ vestment tax eredit (Comap, Rep­ tating private investment; (3) solve U.S. Government policy resentative MEADER). Allow tax direct appropriate aid through confusion over whether to en­ deductions for ·commercial risks private channels with practicable courage U.S. private production (Comap, IEPA). Waive U.S. local private or governmental investment abroad. tax liability (tax sparirlg) on participation. earnirlgs on which host govern­ ments forgo local tax (Comap, IEPA). Guarantee 5 percent mirlimum aftertax return on earnirlgs of private projects ap­ proved by Government (Comap). Establish new office of AID Deputy Administrator for Private Enterprise (IEPA). Create new Government-owned corporation to encourage Private American in­ vestment irl developirlg countries. (BCIU.) Investment guarantees: Sec. 221 Bring all Latin American coun­ authorizes guarantees of wholly tries irlto program (Comap). owned U.S. investment against Liberalize bilateral guarantee agree- specific risks of war (insurrection and revolution), currency incon­ ~~t~~~o~~P~~Kf'j· ri:/t~oa~g vertibility, and expropriation civil disturbances (Comap, (confiscatory acts of government). IEPA). Increase authorized dol­ Authorizes extended risk guar­ lar volume outstanding; strength­ antees against any risks other than en U.S. obligation (IEPA). In­ U.S. management fraud or mis­ crease housing guarantee (Senator conduct. Sec. 224 authorizes sim­ HUMPHREY). Support multi­ ilar guarantees of U.S. investment lateral guarantee treaties (IEP A). in pilot housing projects in Latin Ametica.

Investment surveys: Sec. 231 authorizes up to 50 percent U.S. Government financing of surveys of investment opportunities. Hickenlooper amendment: Sec. Support Hickenlooper amend­ Encourage compensation for na­ 620 requires suspension of aid to ment. tionalization by host government any country which nationalizes, (Comap 2) , Emphasize congres­ expropriates, seizes, or imposes sional disapproval of discrimirla­ restrictions of similar eff ton any tory measures; cut aid if host U.S. majority-owned investment government obligations not met without appropriate steps to com­ by end of 1963; reduce time re­ pensate within 6 months. quirement for compensatory st-e ps from 6 to 3 months. authorize U.S. Foreign Claims Settlement Com­ mission to evaluate expropriated property (IEP A). Compensate expropriation losses through re­ ductions in prior-approved aid loans (Senator HUMPHREY). -Foreign cwTency loans: Sec. 612 Expand Cooley fund loans. authorizes use of U.S.-owned for­ eign currencies. Sec. 104 of Public Law 480 (Cooley fund) authorizes 25 percent of proceeds from sales of surplus commodities for loans to private U.S. companies abroad or foreign affiliates, and to foreign firms which expand U.S. agricul­ tural exports. See footnotes at end of table. 1963 .CONGRESSIONAL RECORD- HOUSE 10533 program and recommended improvemenl8

President's message (Apr. 2,1963) , Administration ~endments , The aid gap (between program What's needed (Foreign Assistance Act of 1963) and performance)

Apply stricter standard of selec­ Program objectives and priori­ Congressional action to require definitive statement by tivity and sell-help. Reduce and ties inadequately defined. Vari­ administration of aid purposes, objectives, and priorities by ultimately eliminate aid. Increase ous types of aid not clearly identi­ geographical area, and to further require categorical commit­ role of private investment. Con­ fied. Long-range economic de­ ment by administration to such definition. tinue aid for defense against ex­ velopment planning frequently Amendments to sec. 102 to {1) specifically state intent of ternal and internal Communist sacrificed on altar of quick political Congress that economic development funds be prohibited from attack. Emphasize burden shar­ payoff. Emergency aid for finan­ use for emergency short-term budgetary, balance of payments, ing. cial bailouts, military forces, and and military aid and other purposes, not essential to long­ politically inspired projects over­ range economic development of recipient countries; and (2) emphasized. Selectivity and sell­ further state intent of Congress that such emergency aid re­ help criteria too loose. Private quirements be met through international institutions, such incentives inadequate. Burden as International Monetary Fund, equipped to condition such sharing inequitable. aid on immediate economic and monetary reforms. Amendment to sec. 102 to require progress reports by recipient countries on self-help and reform measures planned and achieved, before economic aid is committed.

Emphasize economic develop­ Amends sec. 631 to authorize Funds subject to misuse Amendments to sees. 201 and 211 to require economic devel­ ment increasingly through loans. President to select U.S. citizen to for nondevelopmental purposes. opment aid to any project to be programed in host country Apply stricter loan terms. In­ serve as Chairman of OECD's De­ Loan repayment terms too loose. development plan specifically providing for appropriate par­ crease lending in countries which velopment Assistance Committee. Shift from grants to loans too slow. ticipation of private enterprise. permit aid to be directed toward Amends sec. 635 to provide pay­ Amendment to sec. 201 to specifically exempt development ultimate full sell-support. En­ ment of reimbursable indirect Joan fund from all contingency, transfer, and consolidation large participation of private en­ costs to educational institutions provisions of sees. 451, 610, 614, and 645. terprise. Encourage land-grant carrying out authorized oversea Amendment to sec. 201 to fix range ot development loan terms. and other university relationships programs. Executive regulation to require consideration of development with aid programs. loan before approving development grant. Support for administration amendment to sec. 231 to author­ ize appoiutment of U.S. Chairman of OECD's Development Assistance Committee. Place Initiative on increased Proposes to amend Internal Fail to provide adequate post- Coordinated joint representations by U.S. Government and role for private investment and Revenue Code to authorize U.S. tive incentives to, and protection U.S. business to recipient nations, clearly stating necessity other non-Federal resources in tax credit for certain investment of climate for, local foreign private and practicality of including measures to stimulate private assisting developing nations. and reinvestment in less devel- Initiative. enterprise participation in economic development plans. Amend Internal Revenue Code oped countries. Removal of legal ban on AID financing of private projects for a trial period to grant U.S. for which other free world financing is available. taxpayers tax credit for new in­ Tax-sparing treaties which waive U.S. tax liability on earn­ vestments and reinvestments in ings on which host governments forgo local tax. developing countries. Executive regulation to require use of statutory authority to make dollar loans to selected U.S. firms investing abroad in projects which AID determines as necessary to sound eco­ nomic development in host country. Executive regulation to require use of statutory authority to subcontract Government-financed oversea projects to U.S. firms. Resolution of Government attitude toward U.S. private Productive investment abroad, and substantial Government encouragement and protection of such investment.

Amend investment guarantee Amends sec. 221 to relax lOO-per­ Do not cover decisive risk of riot Consideration of amendments to broaden investment guar­ provisions to enlarge and clarify cent ownership restriction by de­ and civil strife. Do not cover antee coverage. Chamber of commerce is studying amend­ program. fining "wholly owned" as "de­ U.S. joint or minority invest­ ments to sec. 221 to expand guarantees to cover- termined without regard to any ments otherwise urged upon busi­ (1) Risks of riots and civil disturbances. shares, in aggregate less than 5 ness by Government. Authority (2) U.S. joint or minority ventures. percent of total issued and sub­ to cover commercial risks virtually (3) Higher percentage of loan investment and reinves­ scribed share capital, required by unused. Terms too limited as to ment. law to be held by persons other percentage coverage of equity and (4) Working capital loans. than parent corporation." loan investment and reinvestment Doubles authorized dollar volume in expansion and modernization. of outstanding investment guaran­ tees against specific risks; in­ creases volume of guarantees against extended risks, triples volume of Latin American hous­ ing guarantees. Emphasize investment surveys. Funds originally requested Amendment to sec. 231 to restore original budget request. dropped from revised budget.

Does not cover minority ven- Consideration of amendment to sec. 620 to extend protection tures. to U.S. minority-owned joint ventures.

Emphasize Cooley fund loans. Authority to make Cooley fund Amendments to Public Law 480 to increase to 50 percent the loans too restricted. authority to lend surplus commodity proceeds to U.S. affiliates abroad, and to authorize local currency loans to foreign firms which expand markets for U.S. industrial (as well as agricul­ tural) exports. 10534 CONGRESSIONAL. RECORD- HOUSE June 10 U.S. chamber comparative analysis of aid program

Present law (Foreign Assistance Chamber recommendations Olay Committee recommendations Other recommendations 1 Act of 1961, as amended) (Mar. 15, 1963) (Mar. 20, 1963)

Alliance for Progress ••••••• Sec. 251 and Latin American Coordinate hemispheric aid, Condition continued aid on Increase Latin American aid; Development Act authorize aid to trade, and financial policies specified self-help and internal re- reappraise policies and programs; Latin America to mobilize re­ through institutions similar to stress selectivity; increase local sources for economic develop­ OECD. Realistically determine ~~~sD~~:~:bi~~~~~ir~f ~~= contributions; authorize increased ment and adopt reforms to spread attainable objectives. Encourage tainable goals. Favor countries local cmTency financing; establish benefits of economic progress. creation of more favorable atmos­ which undertake to meet princi­ Alliance for Progress Corporation Directs aid to human as well as phere for private business. Sup­ ples of Punta del Este Charter to promote private investment economic resources. port Inter-American Develop­ and encourage growth of private (Comap). Stress improvement ment Bank and social progress enterprise and foreign investment. in local business climate (Comap 1). trust fund loans for development Insist on recipient country bearing Concentrate aid on countries dem­ through private as well as public local costs. onstrating self-help and reforms projects. (Comap, IEP A, Senator HuM­ PHREY). Stress regional economic integration; encourage develop­ ment of rural cooperatives (Sena­ tor HUMPHREY), Multilateral aid .• ------Sec. 301 authorizes grants Emphasize multilateral aid, Shift aid programs gradually to Increase support of voluntary through international programs. making full use of private inter­ international administration (e.g., aid associations (Senator HuM­ Sec. 205 authorizes U.S.-owned national consortia. Urge intensive International Development Asso­ PHREY). local currency loans for basic devel­ study of problems of countries ciation). opment through International dependent on single commodities. Development Association. Military aid______Sec. 503 authorizes military aid Phase out military aid; pare to Cut military aid substantially Condition on economic self­ to any friendly country or inter­ minimum immediately-partic­ over next 3 years, limit to internal help (Senator MANSFIELD). national organization to strength­ ularly in Western Europe. Press security (small arms) in Latin en U.S. security and promote efforts to persuade NATO coun­ America and other areas. Exclude world peace. tries to accept larger responsi­ combat zone aid from program. bilities. Reduce aid given in return for U.S. military base rights. Extend aid only extraordinarily to country in conflict with non-Communist neighbor friendly to United States. Supporting assistance ..•••. Sec. 401 authorizes aid to friend­ Substantially reduce support­ Cut supporting economic aid Shift to economic development ly countries and organizations to ing assistance for supplies and sharply over 3-year period. aid (Senator MANSFmLD). Elim­ promote economic or political wages for local military forces. inate in some countries (Repre­ stability. sentative MONAGAN). OontJngendes ....•.•.• --- __ Sec. 451 authorizes special fund Cut these funds in line with Support ample contingency for any economic aid in U.S. na­ establishment of specific funds for fund. tional interest. Sec. 614 author­ various aid purposes. izes special funds for any aid im­ portant to U.S. security, without regard to requirements of this law (except development lending re­ quirements). Budget account transfers . . Sec. 610 authorizes transfer or Prohibit use of various aid funds Prohibits transfers from new consolidation of 10 percent of for purposes other than those special development loan fund various funds (except Develop­ specified for each. for private enterprise (!EPA). ment Loan Fund). Sec. 645 au­ thorizes continued availability and consolidation of unexpended funds.

1 Recommendations of Commerce Committee for the Alliance for Progress (Comap), 2 Separate comments of Comap members David Rockefeller, Henry Wriston, and International Economic Policy Association (IEP A), Business Council for Inter- Emilio Collado. national Understanding (BCIU), and various Members of Congress. Recommended changes in the fiscal1964 budget [In thousands of dollars]

Recom­ Recom­ Requested mended Requested mended reduction reduction or saving or saving

FUNDS APPROPRIATED TO THE PRESIDENT FUNDS APPROPRIATED TO THE PRESIDENT--Con. FOREIGN ASSISTANCE- MILITARY FOREIGN ASSISTANCE-MILITARY-Continued Military assistance·------1, 480, 000 280, 000 Development loans-revolving fund-Continued U.S. military assistance for equipment and facilities much of the money in the fund is not being used appro­ to Western European and other nations is being cut priately. The fund should not get as much this year as back. The cutbacks can be accelerated to provide con­ the $975,000,000 it got last year. siderable savings. Further savings can come from end­ Alliance for Progress ______. _____ ------__ __ ----- 700,000 300,000 ing the practice of propping up showcase military forces The Alliance for Progress is too disorganized to meet its of some countries. In addition, other industrial nations, goals. Aid, trade, and financial policies need to be increasing in wealth, should help bear more of the cost coordinated throughout the hemisphere, as the Organi­ of this military assistance. zation for Economic Cooperation and Development Supporting assistance ..•.. . ------397,000 97,000 strives to do for its members. Programs of the Alliance As military assistance is cut back, supporting assist- need to be reexamined and made more consistent with ance for such things as food and wages for the personnel what is possible to accomplish. Also the Latin can also be similarly reduced. American nations should be encouraged to create a much Development grants ______------275, 000 75,000 more favorable atmosphere for private business. Until Grants (or gifts) of money are charity which even steps are taken toward these ends no more than the recipients as a rule don't want. They prefer loans. $400,000,000 can be put to good use. So does this country, but the shift from grants to loans Administrative expenses-AID------57,250 7,250 could be faster. AID is requesting $7,750,000 more for administrative Contingency fund .. ------400,000 200, 000 expenses. Although the chamber is recommending con­ The President is given this money for emergencies siderable cuts in the AID program, it believes a $500,000 not otherwise provided for. A recent example was aid increase can be justified in light of the need for more for Chilean earthquake victims. However, $200,000,000 talented and experienced personnel. So ::1 $7,250,000 cut should be enough for this purpose. Specific con­ is recommended in the request. 3,025 gressional authority should be required for further Adm~t%~~;~~~rai;-;;~t~~ufJE~1~r~~-;a·t-iasfY"e-ai·ii 325 Dev~iE~~~~~~ns-revolving fund. ------1, 248,000 348,000 expenditures in view of no compelling justification for 'l'be fund was set up by Congress for long-range plans an increase. and programs in underdeveloped countries to build up Peace Corps. _------.------108,000 8,000 economic resources such as factories, mines, farms, roads, This program is regarded as highly successful and use­ and ports, and to teach men and women necessary skills. ful. But the Corps is having difficulty getting enough In many cases, however, money from the fund has been specialists of the kinds it needs. So it is doubtful that used to pay off unsound national debts, to prop up it could efficiently assimilate a 100-percent increase in shaky currencies, and to bail out government in balance­ funds in its 2nd year. In view of its growth difficulties, of-payments crises. Although development loans as the Corps should be held to about 90 percent of its originally authorized by Congress are highly desirable, request. 1963 CONGRESSIONAL RECORD- HOUSE 10535 and recommended improvements-Continued

President's message (Apr. 2,1963) Administration amendments The aid gap (between program What's needed (Foreign Assistance Act of 1963) and performance)

Concentrate I?Upport on coun- Amends act to authorize sub- Inadequate long-range planning, New legislation to establish Organization for Western Hemi- tries adhering to principles estab- sequent use of unappropriated policy coordination, and private sphere Economic Cooperation and Development to coordinate lished in Charter of Punta del funds. Amends Latin American participation. aid, trade, and monetary policies of member nations. Este; precise!~ indicate required Development Act to increase Al· Realistic determination by administration of attainable ob- local policy c ange, reforms, and liance for Progress funds. jectives. other self-help measures. Encour- Support for Inter-American Development Bank. age economic integration. Opposition to administration amendments to increase Alii· ' ance funds until substantive improvements in program are achieved.

S£,lectively supplement U.S. Amends act to reduce multi- Present U.S. Government par- Administration encouragement and protection of joint ven- contributions to international lend- lateral aid. ticipation and private inter- tures by international consortia recommended by AID Admin- ing institutions in conjunction national consortia too limited. istrator as necessary to host country economic development. with increased contributions from Burden sharing made more equitable through OECD's from other industrialized nations. Development Assistance Committee. Study of proposals to stabilize international commodity markets. Emphasize economic rather than Amends act to reduce military Still overemphasized; not ade- New ways and means to persuade NATO countries to accept military aid, review both size and aid. quately geared to recipient nations additional responsibilities. purpose of local military forces known capabilities in global de- Support for administration amendment to reduce funds, which receive U.S. aid; but antici- fense strategy. plus substantial further reductions. pate need for new and expanded military aid.

-

Amends act to increase support- Overused for questionable sup. Opposition to administration amendment to increase fund. ing assistance. port for military forces.

Increase contingency fund. Amends sec. 451 to increase con- Excessive commitment of funds Amendment to sec. 451 (existing contingency fund) to limit tingency fund. for unidentified aid in unforeseen to emergencies not provided for by other specific funds. circumstances. Amendment to sec. 614 (special authority for national secu- rity purposes) to prohibit use of any other fund for these pur- poses. Opposition to administration amendment to increase fund.

Amends sec. 645 to authorize Permits funds to be used for Amendments to sees. 610 and 645 to prohibit use of various continued consolidation of un- other than intended purposes. aid funds for purposes other than those specified for each. expended balances with other Opposition to administration amendment to sec. 645 to funds. authorize continued consolidation of unexpended balances with other funds.

-

Specific budget requests for which chamber support is approved [In thousands or dollarsj

Appropri- Appropri- ation ation requested requested

FUNDS APPROPRIATED TO THE PRESIDENT FUNDS APPROPRIATED TO THB PRESIDENT-Continued FOREIGN ASSISTANCE-ECONOMIC FOREIGN ASSISTANCE-ECONOMIC-continued International organizations and programs ______136,250 Subscription to International Development Association_ . ------61,656 The national chamber supports in full the administration's revised ThE.' chamber supports the administration's entire request of requests of $136,250,000 for international economic aid programs, on 2 $61,700,000 in regular subscription to this international lending insti- counts: (1) the chamber believes multilateral foreign aid, to which tution, which specializes in local currency loans to nations in need of other industralized nations contribute through international lending basic dE."velopment. institutions, should be encouraged and emphasized as a practical American schools and hospitals abroad_------20,000 alternative to U.S. financing alone; (2) the 13 programs financed The ch'lmber supports the full White House revised request of under this account represent current commitments which the U.S. $20,000,000 for American schools md hospitals abroad as necessary to Government is obligated to fulfill. provide U.S. citizens serving overseas with needed educational and Social progress trust fund of the Inter-American Development Bank_____ 200,000 health facilities, and-to the extent American hospital care is The chamber supports the full $200,000.000 request for the Inter- provided local foreign nationals-as worthy humanitarian projects American Development Bank's social progrE>ss trust fund. Its funds which benefit the 0.8. image abroad. are used for loans for low-cost housing, potable water and sanitation, Hospitals abroad (local currency) _____ ------2,000 agricultural and technical aid basic to the raising of living standards The chamber supports the full White HousE.' request of $2,000,000 in Latin America. Each loan must be matchl"d by local financing 4 for the American-sponsored children's hospital in Poland. times its size or 80 percent of the total cost. The loans are used to help establish private credit institutions and other private enter- DEPARTMENT OF HE.1.LTH, EDUCATlON AND WELFARE prisE'. The chamber also supports the administration's request for a $50,000,000 regular subscription to the Inter-American Develop- Assistance to refugees in the United States ______70,000 ment Bank. . The chambl"r support8 the administration's full reque~t of Surveys of investment opportunities ______------______1,500 $70,000,000 for this necessary hum:mitarian program for Cuban The chambl"r endorses the administration's request for $1,500,000 to refugees. help finance feasibility survE."ys of potential areas for U.S. private investment in the underdeveloped countril"s as vital to much-needed private business participation in the aid program.

NATIONAL SECURITY AND MAN­ The SPEAKER. Is there objection et message to the Congress has recom- POWER RESOURCES to the request of the gentleman from . mended a program to meet national Mr. MILLER of California. Mr. California? goals that depends more heavily for its Speaker, I ask unanimous consent to ex­ There was no objection. fulfillment on scientific research and de­ tend my remarks at this point in the Mr. MILLER of California. Mr. velopment than any set of recommenda­ REcORD and include extraneous matter. Speaker, President Kennedy in his budg- tions ever placed before this body. 10536 CONGRESSIONAL ·RECORD- HOUSE June 10 To maintain a vigorous posture of Long-term planning thus becomes es­ graduates-decide that they cannot af- military security, to sustain space ex­ sential because we cannot accept the . ford graduate education. Others extend ploration second to none, to stimulate consequences of a random development their study by combining part-time study domestic economic growth, to continue of our manpower resources to nieet pres­ with part-time work, often becoming strides in medical advancement, to meet ent goals. Moreover, the future is di:tn­ dropouts. the problems of a highly urbanized so­ cult to foresee, and we must be prepared Another barrier is limited graduate ciety-for all these purposes we look to meet the unexpected-to exploit new facilities and faculty. more than ever before to the fruits of scientific opportunities as swiftly in the To remedy these problems, following scientific discovery and their prompt future as we have in the past in atomic recommendations to him by his advisers, conversion to technology. energy and in space. the President has placed before the Con­ Research and development appropria­ The Committee on Science and Astro­ gress a program of support for graduate tions proposed by the President amount nautics has felt a mounting concern for students and for facilities that empha­ to 15 percent of the total budget.- These future manpower requirements, espe­ sizes the number of new starts. funds reflect a substantial increase since cially in terms of the constantly higher Both because the Federal Government launching of the first sputnik dramat­ training required of all our technical per­ is a major consumer of scientific talent, ically revealed how intimately our Na­ sonnel. Our concern is not unique. and because the problem is urgent, the tion's leadership in the world would The President, about a year ago-tak­ President proposes a program with Fed­ depend on a leadership in science and ing note of published reports on deliber­ eral leadership, but involving a close engineering. ate measures by the Soviet Union to de­ relationship with State and local govern­ We all know, however, that strength velop its technical manpower-requested ments, industry, and the universities. of our Nation's research and develop­ his Science Advisory Committee to take a Fellowship and training grant subven­ ment is not simply a product of increased careful look at this problem. With re­ tions are proposed in budgets especially expenditures. Limitations on skilled lease by the White House of the first in of the National Science Foundation, manpower could throttle our effort even a series of reports on manpower, I asked Atomic Energy Commission, and the Na­ more critically than a limitation on Dr. Jerome Wiesner, the Director of the tional Aeronautics and Space Adminis­ budget. For the first time in our history, Office of Science and Technology, to tration, and extension and expansion of we may be confronted with a plurality of comment on specific problem areas, and the National Defense Education Act. goals that may well outstrip our supply on programs aimed at their solution. These proposals would represent a de­ of scientists and engineers. My letter and his reply are submitted liberate first step whereby the Federal The appetite of today's technology for for the RECORD following these remarks. Government accepts the Nation's re­ high-level technical manpower is tre­ The impending shortage and the most sponsibility to assure adequacy of tech­ mendous. The space program furnishes urgent need for action that Dr. Wiesner nical manpower resources to meet its one clear example of the increased describes relate to quality, not quantity. commitments. They could provide more sophistication in systems development; Fulfillment of our diverse programs to and better opportunities for advanced the interplay required between different which we are already committed may be training of our able young people so that scientific disciplines; the unprecedented threatened unless strong action is taken none need turn away from graduate demands for reliability. But civilian to increase the output from our gradu­ study because of financial need, or be­ technology requires similar skills in im­ ate schools, particularly of more engi­ cause training facilities are inadequate provement of our domestic transporta­ neers, mathematicians, and physical sci­ or too far away. tion and communications systems, in entists who combine high talent and The question has often been raised at keeping one technological step ahead of high training. this point whether an increase in the our competitors in world consumer and For example, in 1950 we turned out graduate student population would serve industrial markets. 2,000 Ph. D.'s in these 3 fields; in 1960, we to undermine the quality of a graduate In a sense, we stand at a crossroads. graduated 3,000, an increase of 50 per­ education. It is no doubt true that in­ We have elected a number of national cent. But in 1970 we need a minimum discriminate expansion of facilities with­ goals that require world technological of 7,500, an increase in the decade of 150 out regard to available teaching strength, leadership. Growth and diversity in re­ percent. For among other sources of geographic location, and area of speciali­ search and development effort must be demand for these graduates are the uni­ zation, would very often do more harm sustained. Yet the slack in the technical versities themselves; they must accom­ than good. manpower system has been almost fully modate the first wave of the postwar But many outstanding schools would absorbed in our recent rapid expansion. baby boom who become college appli­ cants in 1965. greatly appreciate a larger number of The dramatic explosion of scientific I do not like to use the Soviet achieve­ fellowships which would prevent the loss effort was made possible by a remark­ ments as a yardstick for our own ac­ of good graduate studen~. Many other able influx of gifted people in research tivities, but can we afford to sit back schools which show promise of becom­ and development functions from other while the Soviets already have three ing centers of excellence are so limited occupations, by increased production of Ph. D. engineers in their ranks to every in funds that they cannot retain their scientists and engineers through legisla­ one of ours, while they train more at an best students for teaching and research tion which assisted World War n and even faster rate? assignments, or build much-needed lab­ Korean veterans to complete studies. In this country, only about 4 percent of oratories and classrooms. Only a few more people can be appro­ the B.S. graduates in engineering go on There are probably more untapped priately drawn away from nonresearch to a doctorate. Out of a group of 10,000 graduate manpower resources in some and development activities, or effectively citizens of age 30, only about 4 have a fields than in others. In the physical accommodated in professional ranks Ph. D. in engineering. This is far too sciences, the percentage of students go­ without additional training. Moreover, few. The study conducted for the Presi­ ing on to receive Ph. D. degrees is as considering the long leadtime for train­ dent suggests that the manpower re­ high as 18 to 20 percent. It may not be ing, the new supply 'of scientists and quirements of this decade can be met possible or desirable to increase output engineers for the rest of this decade is only if more students studying science substantially in fields where such a high already in college and thus fixed by cur­ and engineering-those already in the proportion do attempt graduate work. rent enrollments; and for the next dec­ college pipeline-are encouraged to con­ But in other fields such as engineering ade these people are already in junior tinue on to full-time graduate study. where only 4 percent of those obtaining or senior high school. Growth and The major barrier to such advanced a B.S. degree go on to receive a Ph. D. strength of our research and develop- study is financial. Faced with a choice it appears certain that a relatively large ment effort will thus be critically limited of a $7,000 starting salary and a very number of well-qualified students could by productive capacity of our educational much smaller graduate stipend, many be attracted toward graduate study. system, and by utilization of those al­ highly qualified college graduates--espe­ In a recent survey by the Engineers ready engaged .in research and develop­ cially those with family responsibilities Joint Council, 136 responding institu­ ment. and those who incurred debts as under- tions that offer graduate engineering 1963 CONGRESSIONAL RECORD- HOUSE 10537 curriculum reported 3,160 students are ress-scientific manpower and the con­ The manyfold demands for technical man­ now on fellowships, that an additional stantly higher degree of training that it must power draw on the same pool of talent-­ have in these times. for defense and space, for innovation of 6,420 fellowships could be used i~ avail­ I am aware, of course, that our concern is civilian products able to compete in a world able. Only 33 current fellowshiPS are not unique. The recent report of your own market, for meeting such domestic problems unfilled. The normal sources of finan­ Science Advisory Committee to the Presi­ as mass transportation and environmental cial assistance for graduate students dent has highlighted some of the growing pollution associated with a rapidly urbanized and graduate programs just cannot be difficulties in the field of scientific and tech­ society, for medical advancement, and for expected to expand rapidly enough to nological training. Similar recognition of the effective management of our resources in remove this graduate manpower bottle­ the problem has been evidenced by the Na­ such a way that we can help upgrade the tional Academy of Sciences, the National way of life of citizens throughout the world neck. We should listen to the Presi­ Science Foundation, by industry and by the without downgrading our own. Superposed dent's Science Advisory Committee when universities. Moreover, this same apprehen­ on these requirements is the need for science, it recommends that "an immediate, vig­ sion was in prominent display during this mathematics and engineering teachers to orous national effort to increase graduate committee's annual conference last month meet the rapidly growing college enrollment. training in engineering, mathematics, with its Science Advisory Panel. A sharp competition for manpower has re­ sulted, particularly for the superior individ­ and physical sciences" be undertaken. In my judgment, it is becoming impera­ ual having advanced training. In that com­ It is clear from Dr. Wiesner's letter tive that the executive and legislative petition, not all sectors of demand have that this area of graduate study is but branches of the government join hands in succeeded in meeting their needs, and the one deserving attention. There are this matter with an eye toward making the future outlook is not encouraging. other serious questions regarding need Federal effort to bolster research and tech­ For the first time, we are confronted with nological training as effective as possible. a plurality of goals that may well outstrip for technicians, opportunities for wom­ While I think that the Nation in general has en, retraining of those whose skills have our technical manpower resources. been doing a commendable job, I doubt if Most these major goals should not be become obsolete, and the area of man­ it will suffice in the future. The close aB­ placed on an either-or basis. Thus, we can­ power utilization. sociation this committee has with the na­ not, in fact we need not, accept the hazards In a free democratic society, we do not tional space program and our recognition of and risks of a random development of our assign individuals by decree of a cen­ the vast demands which this program alone manpower resources to meet present goals. tralized manpower board. Rather, we is making upon our scientific resources leads Moreover, the future is difficult to foresee, try to maximize the opportunities and me to the conclusion that better and more and we must be prepared to capitalize on the coordinated planning for the development unforeseen; we must be prepared to move as the information about these opportuni­ of highly trained scientific talent is an abso­ ties, so that our young people can exer­ swiftly to exploit new opportunities as we lute must in the years ahead. And, obvious­ have in space and earlier in atomic energy. cise an independent and informed choice. ly, the needs of the space program are but Because of the long lead time in training, we But we cannot be nonchalant about this a segment of the whole requirement. cannot do this unless we have a cadre of issue in the cold war atmosphere that de­ With this background in mind, I am ad­ able, well-trained people. mands continued U.S. leadership. All dressing you as Director of the Office of The Soviet Union's response to this same elements of our society must study and Science and Technology, to solicit your aid challenge is well known. They have em­ and suggestions in devising methods to pin­ barked on a program to improve their capa­ act-industry, universities, the Execu­ point specific problem areas and in seek­ tive, and the Congress. bilities by deliberately training very large ing avenues for their solution. It may be numbers of science-oriented professional and Because of the serious nature of this that a broad investigation by this committee semiprofessional personnel. They now grad­ matter, because of its extreme impor­ of future scientific and technological re­ uate, for example, over twice as many bacca­ tance to the future welfare of the Na­ quirements would be useful-in the course laureates in engineering each year as we. tion, and due to the impact which our of which facts and information might be Far more significant in my own mind, they present action or inaction will have upon obtained from those in and out of govern­ already have three times as many Ph. D. the lives of coming generations, it is my ment who are most exposed to the exigen­ engineers in their manpower pool as we- cies of our national scientific and techno­ 26,000 as compared to our 9,000. The qual­ hope and intent to inaugurate a careful logical effort. and comprehensive inquiry into the ity of these Soviet resources as measured by Your thoughts and comments on this mat­ talent and high training leaves no room for status of scientific manpower. This in­ ter will be most welcome. complacency. quiry will require careful staff prepara­ Sincerely yours, Faced with the same manpower problem as tion, which I plan to augment as soon GEORGE P. MILLER, the Soviet Union, how, in a democratic so­ thereafter as feasible with committee Chairman. ciety where each citizen must have a free hearings to draw testimony from the choice of his or her occupation, do we meet country's foremost experts in scientific this 'challenge? and technical resources. OFFICE OF SCIENCE AND TECHNOLOGY, About 1 year ago the President requested Washington, D.C., March 27, 1963. that his Science Advisory Committee take The main purpose of the inquiry, Hon. GEORGE P. MILLER, stock of our manpower resources and report which the Committee on Science and Chairman, Committee on Science and Astro­ on measures which should be taken within Astronautics will be undertaking pursu­ nautics, U.S. House of Representatives, and without Government to meet our so­ ant to its charter from the House, wtll Washington, D.C. ciety's complex needs. The Committee's first be to identify the problems of sufficient DEAR MR. CHAIRMAN: Your recent letter on report, released last December, is one of a scientific manpower and to separate the problems in scientific manpower, and your series now under preparation, and concen­ real from the apparent. invitation to pinpoint specific areas deserv­ trates on an especially urgent problem of ing immediate attention are sincerely appre­ impending shortages of engineers, mathe­ We do not kid ourselves that this will ciated. Few other isEues relate so critically maticians, and physical scientists who com­ be an easy job, and we shall be indebted to the successful fulfillment of our na­ bine high ability and advanced training. to many others who have inquired into tional aspirations-to the ability of this Based on the Committee's recommendations some of these difficulties from time to Nation to maintain our national security, to for action, the President has included in his time in the past. However, the com­ stimulate economic growth and to continue budget for fiscal year 1964 and in legislation pleted task is an urgent one which can the march toward a world free of want and now before the Congress a far-reaching pro­ no longer be delayed. of war-as does the development of our hu­ gram specifically focused on meeting this man resources. Many vital commitments shortage. By linking Federal, State, and pri­ FEBRUARY 15, 1963. have already been made which depend upon vate efforts, this program would help imme­ Dr. JEROME B. WIESNER, contributions of science and technology. diately increase the number already in col­ Director, Office of Science and Technology, Meeting these commitments thus depends lege-who have made this career choice and Executive Office Building, Washington, heavily on an adequate supply of scientists who are found qualified-to go on to gradu­ D.C. and engineers-adequate in both quantity ate training. DEAR DR. WIESNER: For some time those of and quality. Yet, while the abundance of The urgent need for more individuals hav­ us serving on the Committee on Science and these resources has been the concern of all ing advanced training is clear. The variety Astronautics have felt a mounting concern sectors of our technological community, the and complexity of fundamentals that under­ for the future requirements the Nation faces formulation of plans to meet the· aggregate pin scientific research have grown enor­ with regard to its scientific and technical needs has been the primary responsibility of mously. Many fields now embrace two or resources. This concern extends not merely none. It is for this reason that the President more disciplines, and require a thorough to adequate research programs and well dis­ last year asked for an extensive special study grounding in each. tributed facilities, but even more to that of this area, a matter I shall refer to in de­ Similarly, engineers are called upon to use most crucial element of our national prog- tail subsequently. more sophisticated scientific concepts in the 10538 CONGRESSIONAL RECORD- HOUSE June 10 design of miUtary and space systems which, and engineering; and second, with numer­ date increasing enrollments in these three in turn, manifest unprecedented demands for ically increasing enrollments in physics and fields. In virtually all of these cases, assist­ reliabi11ty, and economy. Civilian industry, chemistry, assuring continuation of at least ance to students would be accompanied by which faces tasks such as the development the same fraction who complete the a grant directly to the college or .university of natural resources and the improvement doctorate. to help meet the true cost of education, and of transport systems, must also advance Assuming that the proposition of bac­ thus would assist the university to main­ by converting new scientific knowledge to calaureates in these three fields continues tain an internal balance between fields. technology, and for this purpose requires unchanged in relation to the total number The President also proposes Federal sup­ men who can draw upon understanding of bachelors degrees (somewhere around 17 port for new physical facllities, including in fields of management, economics, law, percent), the actual number of graduates funds through NSF laboratory and science behavioral sciences and natural sciences, as will approximately double during this dec­ development grants, through NASA univer­ well as engineering. Research and engineer­ ade because of increased total enrollments. sity grants and through a new program pro­ ing activities, whether pursued in the office, With 3,000 doctorates produced in 1960, a posed in H.R. 3000, of graduate facilities to classroom, or laboratory, today require train­ potential of 6,000 for 1970 is a minimum be operated by the Office of Education. ing well beyond that afforded in the 4-year expectation. However, we have already These amounts total some $85 million, as undergraduate curriculum. noted that the fraction of engineers and compared to $24 mlllion in 1962. Virtually That even 1 year beyond the baccalaureate mathematicians who now go on to the doc­ all of these facilities funds would be on a significantly strengthens the individual's torate is far less than in other fields of 5Q-50 matching basis. Further details are capab111ties is revealed by the large number science, and could be markedly increased given in an enclosed table. of students now enrolled in part-time grad­ without any drop in academic standards. The proposed program is designed to uate study. In fact, over half of the graduate This explains then, the 7,500 goal for 1970 achieve a substantial and unprecedented ac­ students in engineering are part time. As rather than 6,000. Neither of these, how­ celeration in the rate of production in valuable as this part-time training may be, ever, will be realized unless signlflcant steps advanced degrees in these three fields. The full-time attendance would be much better. are taken immediately to increase the op­ proposition that the Federal Government To keep pace with our national needs, it portunities for the students and the capacity should increase its responsibilities in this is the judgment of the President's Science of the institutions. area is supported by three arguments: (a) Advisory Committee that we should and With regard to students, the major barrier the Federal Government supports almost could increase the number of Ph. D.'s each to continuation of full-time graduate study three-fourths of all research and develop­ year in engineering, mathematics, and physi­ is financial. Faced with a choice of a start­ ment conducted in this country, including cal sciences (EMP) to reach 7,500 in 1970, ing salary above $7,000, and a very much major expenditures for space and mllitary the number of master's or equivalent to smaller stipend for graduate study, many activities, and it is these programs of Fed­ 30,000. This annual production of 37,500 highly qualified college graduates-especially eral origin that have created the shortage; advanced degrees by 1970 should be compared those with family responsibillties and those (b) State governments and privately en­ with 15,000 in 1960, 11,000 in 1950. who incurred debts as undergraduates-­ dowed universities face practical difficulties A substantial fraction of these new grad­ decide that they cannot afford graduate edu­ in raising the funds required for expansion uates, incidentally, must be plowed back into cation. Others extend their study by in graduate education, especially in competi­ the universities for teaching, and soon. The combining part-time study with part-time tion with funds that will be needed to meet first wave of the postwar baby boom is al­ work, often becoming a dropout. the undergraduate· surge; (c) because the ready in high school and will move into the Another barrier is inadequate graduate fa­ demand for specialized manpower is nation­ universities in 1965. Based on census sta­ cllities. Increasingly, universities will be wide, neither States nor communities feel it tistics, the number of eligible college ap­ obliged to turn away students because of their exclusive responsibility to meet prob­ plicants will rise in just 1 year by over 20 space or faculty limitations. lems or contribute funds which, in the case percent. Faculty will be required to teach In addition, there is very convincing evi­ of graduate education, may primarily benefit college majors in science, e~gineering, and dence that some geographical areas produce the economy of other communities or other mathematics. Additional graduates with a much greater proportion of doctorates than states. specialized training will be needed for high others. In fact, 10 States are producing doc­ There is nothing completely new about quality teaching in colleges and high schools toral graduates at a rate nearly three times Federal assistance for higher education. of future citizens who will work in non­ that of the remaining 40 States. Relatively Past experience with the GI bill and the technical fields, but who must be more liter­ few students are prepared to study more than National Defense Education Act program, ate in science if they are to conduct their several hundred miles from their homes. It Federal agency supported mission-oriented own affairs and perform public duties in­ would thus appear that we have a special research, and NSF-sponsored basic research, telligently. problem in terms of meeting an unequal on the whole, has been eminently successful. At the same time that the college-age pop­ geographical distribution of centers of edu­ What is new about the President's program, ulation is growing, a larger fraction are en­ cational excellence. however, is an acceptance by the Federal tering college. We surely do not want tore­ The present barriers to graduate educa­ Government of a Nation's responsib111ty to verse this trend toward wider educational tion-limitations in student support, num­ assure the adequacy of technical manpower opportunity. In view of the time required to ber of faculty, and educational facilities­ resources to meet its commitments--by pro­ complete the graduate education necessary must be overcome. It is to that end that viding more and better opportunities for for teaching, we are dangerously near the the President has proposed that the Federal advanced training. deadline imposed by the unrelenting ad­ Government take the initiative and provide In this letter, it has been possible to con­ vance of new college enrollees. It is a little the leadership needed to meet these national vey only a few highlights of this very com­ startling to realize that an upper limit to needs. plex problem concerned with the supply and the 1970 crop of technical Ph. D.'s has al­ To meet goals for graduate education in demand of specialized manpower. The ills ready been established, since most of these the three fields of potential shortage-engi­ are difficult to diagnose; prescriptions often are college juniors. neering, mathematics, and physical sci­ uncertain in effect. I have wanted to re­ Parenthetically, the crop for 1980 is also ences--it is of critical importance that we spond to your very kind invitation, however, probably limited by quality of math and increase the number of graduate students by bringing to your attention the findings of science courses being taught today to our enrolling in the fall of 1964 from the 22,000 studies already completed for the President junior high school students. which may be expected on the basis of pro­ and of the important proposals which are It is my view that the baccalaureate base jected trends to some 30,000. The number now before the Congress to meet impending for increased graduate enrollment in engi­ of full-time graduate students should also be shortages in engineering, mathematics, and neering, mathematics, and physical sciences increased. Therefore, the President has pro­ physical sciences. Our studies are contin­ is ample to meet PSAC's 1970 goals. posed support for 12,000 qualified first year uing incidentally in relation to other prob­ In these three fields, roughly 8 percent of enrollees and for 14,000 graduate students lem areas. those with a bachelor's degree now go on beyond the first year of their training. These The technical fields in which these man­ to a doctorate. We believe that many more numbers should be compared to support for power are engaged relate to the missions of are both able and motivated. In fact, in roughly 3,500 first year and 10,000 advanced a number of different Federal agencies. physics and chemistry nearly 20 percent graduate students in 1962. Emphasis, you Moreover, the support for graduate educa­ continue on to receive a doctorate. But in will note, is on the number of new starts. tion and research is involved in the budgets engineering, it is only 4 percent;· in mathe­ Support would be provided within existing of a number of agencies. The problem, matics, 8 percent. To the Committee, en­ legislation, through NSF, AEC, and NASA therefore, covers a broad spectrum of in­ hancing our manpower supply is primarily fellowships, and through new NSF science de­ terest. I would certainly agree with your a matter of quality, not quantity; not a velopment and training grant programs. suggestion, and I am sure the President matter of diverting more college students Support would also be p·rovided for research would be pleased if your committee would to science and engineering, but of providing assistantships in accordance with present provide a forum to explore full implications for more students who have chosen this patterns. The President has also proposed . of the technical manpower problem, as well career route the opportunity to continue that the NDEA fellowship program, which as the possible consequences of delay and their studies. This means, first, sharply has been eminently successful, be extended inattention to this issue. increasing the fraction of full-time students and considerably expanded in H.R. 3000 now Sincerely, who go on to graduate study in mathematics before the Congress, especially to accommo- J'EROliiE B. WIESNEa. 1963 CONGRESSIONAL RECORD- HOUSE 10539 Fiscal year 1964- proposal8 by- the President for Federal assistance to graduate education in engineering, mathematicsJ and physical sciences NUMBER OF FEDERAL STUDENT AIDS A WARDED

Fellowships NSF National NSF Total PSAO science Research Defense training admin- recom- Fiscal year National develop- assistant- Educa- grant istration mend a- AEO HEWl NSF Defense NASA2 ment .ships a tion Act program proposals tions' Educa- grants student tion Act loans ------1st-year graduate enrollments: 1962 __ _------80 0 770 400 30 0 1, 750 380 X 3,410 X 1964 proposed------80 0 1,200 2,820 375 475 2,270 530 4,500 12,250 15,000 Beyond-1st-year graduate enrollments: 1962------170 250 1,297 802 70 0 7,000 380 X 9,969 X 1964 proposed------170 400 1,990 a 1,360 1, 775 175 9,100 1530 0 15,550 18,000

FEDERAL GRANTS FOR GRADUATE FACILITIES '[In millions of dollars]

NSF labora- NSF science NASA unl- Office of Edu- PSAC Fiscal year tory match- development versity cation gradu- Total Fed- national ing grants grants grants ate facility ·era.l grants program grants target 6 f

Federal expenditures for construction and equipping graduate facilities: 1962----·------17 0 7 24 X 1964 proposed- ____ ------_------50 8 18 85 250

6 Report of the President's Science Advisory Committee, "Meeting Manpower ! f>~~~~~~~~;=~nts between 1st-year and beyond-1st-year categories estimated Needs in Science and Technology," Dec. 12, 1962. 0 0 7 Includes non-Federal matching funds. ~ ~;ti~~~ ~/~~f:n~~~~~foyed under Government grants and contracts of DOD, s Title II of H.R. 3000 (estimated fraction for EMP). AEO, NASA, etc. 'Report of the President's .Science Advisory Committee, "Meeting Manpower Source: Office of Science and Technology, Executive Office Building, Washington, Needs in Science and Technology" Dec. 12, 1962. D.C. a Title I of H.R. 3000 (estimated fraction for EMP).

LEAVE OF ABSENCE EXECUTIVE COMMUNICATIONS, 913. A letter from the Archivist of the ETC. United States, General Services Administra­ By unanimous consent, leave of tion. transmitting a report on records pro­ absence was granted to Mr. RoosEVELT Under clause 2 of rule XXIV, executive posed for disposal under the law; to the

. . 1963 CONGRESSIONAL RECORD- HOUSE versity of Rhode Island, entitled '"Now the ever represent three different States at dif­ short title to petition No. 148, appearing on Nonfarmer Asks for Parity", appearing 1n the ferent times; to the Committee on House page 9937 of the CoNGRESSIONAL RECORD of New York Times magazine section of June 2, Administration. June 3, 1963, which dealt with the bill H.R. 1963; to the Committee on House Adminis­ 154. Also, petition of Henry Stoner, New 6160; to the Committee on the Judiciary. tration. Haven, Conn., requesting legislation that 156. Also, petition of Henry Stoner, New 153. Also, petition of Henry Stoner, New would determine the exact, specific name of Haven, Conn., requesting that Governors Haven, Conn., to take appropriate steps to this Nation; to the Committee on the Judi­ Barnett and Wallace of the Dixiecratic South honor former Member of the House of Repre­ ciary. be "told off'', and to neutralize and consti­ sentatives, Hon. Matthew Lyon, of Vermont, 155. Also, petition of Henry Stoner, New tutionalize the power structure in Dbde, etc:; Kentucky, and Arkansas, the only Member to Haven, Conn., relative to correcting the to the Committee on the Judiciary.

EXTENSIONS OF REMARKS Government LoHeries of Chile, Colombia, judgment as our Latin American friends? There is another detrimental aspect to A national lottery in this country can the proposed tax increase. I refer now Costa Rica, and Ecuador not only strike a lethal blow at organized to exploratory, or wildcat drilling, crime but pump into our Treasury over In this department, also, there would EXTENSION OF REMARKS $10 billion a year in additional income be a retardation of activity. A large OF which can be used to cut taxes and re­ number of exploratory wells, in some HON. PAUL A. FINO duce our national debt. indeterminate number, would not be Mr. Speaker, isn't it time that we drilled in the search for new oilfields. OF NEW YORK stopped being reckless and careless with Yet it is these year-by-year discoveries IN THE HOUSE OF REPRESENTATIVES the tax and revenue advantages offered which provide the industry with its de­ Monday, June 10, 1963 by a national lottery? velopment drilling programs. Mr. FINO. Mr. Speaker, today, I In this area the adverse effect would would like to acquaint the Members of be cumulative. this House with additional Latin Amer­ In my own State of New Mexico-­ ican countries where gambling is re­ Proposed Increase in Taxes on the although we are rich in mineral re­ spected and treated as recreation and re­ Domestic Petroleum Industry sources-over two-thirds of the total laxation. Out of a total of 77 foreign value of all minerals produced is rep­ countries where Government-run lot­ EXTENSION OF REMARKS resented by petroleum. teries are legal and proper, none are as OF I would be most reluctant to witness foolish as we are in refusing to recognize a further decline in exploration or de­ and capitalize on the human urge to HON. THOMAS G. MORRIS velopment of the petroleum resources gamble. OF NEW MEXICO of the State of New Mexico. Yet, I am Chile operates two national lotteries. IN THE HOUSE OF REPRESENTATIVES forced to the conclusion that this would Last year, the gross annual receipts came be inevitable under the proposed tax to over $20% million of which the Gov­ Monday, June 10, 1963 program. ernment received over $3 million. Most Mr. MORRIS. Mr. Speaker, recom­ Oil, as an industry, enjoys a history of the moneys were earmarked and used mendations of the administration pro­ of progress since its founding in Penn­ for support of colleges, public health pose an increase in taxes on the domestic sylvania in 1859. The unusual hazards service, children's welfare program, hos­ petroleum industry estimated by the it faces in exploration for new reserves pital construction, Red Cross, and other Treasury at approximately $280 million has been recognized by realistic tax charitable purposes. annually, or $175 million annually. Both measures. Since 1926, the depletion Colombia is a small and poor country, figures have officially been offered. factor has been a part of its tax struc­ yet it realizes the worth of lotteries. The At the same time, the administration ture. This has served as a needed total gross annual receipts in 1962, came seeks to accelerate industrial activity stimulant to offset the hazards to capital to $33,360,000. The total net income to to provide for an expanding economy expenditures. the National Government was almost It is difficult for me to see the rationale Prior to 1926 discovery depletion was $11% million. These funds were ear­ in these proposals. I can reach no con­ the method used to recognize the pecu­ marked for the blind and deafmutes, for clusion other than that an increase in liar nature of the wasting asset high­ hospitals, homes for the poor, and the taxes paid by oil will retard that indus­ risk oil and gas producing industry. aged, and other charitable institutions. try's growth. However, due to the highly complex na­ Costa Rica is another country that Were taxes on oil and gas production ture of this method-percentage deple­ realizes that the natural gambling spirit to be increased on the order of $280 mil­ tion was adopted. Now through the of its people should be regulated and con­ lion annually, or $175 million, or even $75 back door, the Treasury is seeking to trolled for the benefit of its treasury. million, it would appear evident that the make basic changes in the industry's Last year, the gross annual receipts ran industry's expenditures for a year would longstanding tax structure which would up to almost $10 million. The total net be decreased by a like amount. Trans­ be tantamount to a cut in the oil and income to the Government was over $3% lating the Treasury's first estimate into gas depletion rate of up to one-third. million. These funds were earmarked capital for drilling operations, it could Under the guise of correcting "claimed'' for the support of mental institutions mean 5,000 fewer well completions. In defects in the application of existing and other charitable hospitals. terms of additions to crude oil reserves, tax provisions in the natural resources Ecuador, like a number of other Span­ assuming the industry would follow the area, the President and the Treasur:y ish-speaking nations, conducts a Govern­ pattern of the past 5 years, we would Department has recommended four spe­ ment lottery not for the benefit of the fail to develop some half billion barrels cific changes which would- general treasury but rather for the sup­ of new oil in a single year of reduced First. Require a carry forward of in­ port of numerous charities. In 1962, the drilling activity. tangible deductions· for the purpose of gross receipts of the national lottery of Of course, with a cutback of $280 mil­ reducing the net income from a mineral Ecuador came to $2,900,000 of which lion in capital realization by the oil in­ property in succeeding years upon which about $906,000 was turned over to various dustry, not all the reduction in activity the 50-percent limitation is based. charitable groups and organizations. would be in the area of oil well drilling. Second. Revoke the taxpayer's option Mr. Speaker, we _ in America could There would be fewer gas wells, service to combine several mineral interests into benefit immeasurably if moneys that now wells, secondary operations, and a gen­ one property. flow into the pockets of gangsters and eral retraction in all phases of drilling_. Third. Tax gains on sales of mineral professional gamblers could be diverted production activity. However, the illus­ properties at ·ordinary income rates in­ into a U.S. lottery and utilized for the tration I have offered serves to bring stead of capital-gain rates to the extent benefit of our own people. Why can't we into focus the magnitude of the proposal of drilling·, and depletion deductions (up show the same intelligence and sound to increase oil production taxes. to cost basis) taken after 1963.