to be Smith but who, unfortunately, is Mr. COOLEY. Mr. Speaker, on ac­ HOUSE OF REPRESENTATIVES not related to me. I wish she were, espe­ count of the illness of our distinguished cially in election years, because she be­ and beloved colleague, the Honorable WEDNESDAY, FEBRUARY 25, 1959 longs to a family that is highly regarded Daniel Reed, of New York, the annual The House met at 12 o'clock noon. in my district. But that particular error meeting of the American group of the The Chaplain, Rev. Bernard Braskamp, could have been corrected in 30 seconds Interparliamentary Union was postponed D.D., offered the following prayer: by a telephone call to my office. In fact, and has not yet been held. As one of the several newspapers and news services vice presidents of the American group Ecclesiastes 8: 12: I know that it shall which have a regard for the truth did I am calling a meeting of the American be well with them that fear God. correct the error. Unfortunately the As­ group of the Interparliamentary Union Eternal God, our Father, who art the sociated Press indicated no regard for for 10 o'clock Friday morning. The gracious benefactor of all mankind, we accuracy in the story they filed. They meeting will be held in the Vandenberg beseech Thee to impart unto us that acted on . the assumption that because Room at the other end of the Capitol. divine wisdom and strength which will two people in o::1e office happened to be All Members of both Houses of Con­ enable us to see our duties and responsi­ named Smith they were related. gress are members of the American group bilities more clearly, understand them I should be glad to claim kinship with and all Members of Congress interested more wisely, and perform them more all the Smiths in the country, especially in the work and programs of the In­ faithfully. those in my district, but I hope the press terparliamentary Union are urged to at­ Grant that our President, our Speaker, of the country will find more vital mat­ tend this meeting on Friday morning. and all the Members of this legislative ters on which to report in Washington. At the meeting officers will be elected body may be blessed with clear minds and other matters of importance will be and courageous hearts, making them considered. equal to the desperate needs of our day RESIGNATION FROM COMMITTEES Mr. HALLECK. Mr. Speaker, will the and generation. The SPEAKER laid before the House gentleman yield? Bless our beloved country and all the the following resignation from com­ Mr. COOLEY. I yield to the gentle­ nations with whom we are united in the mittees: man from Indiana. great task of defending the sacred herit­ FEBRUARY 25, 1959. Mr. HALLECK. Will the gentleman age of freedom and in maintaining the Hon. SAM RAYBURN, in connection with his remarks give us peace of the world. Speaker of the House, information as to how the members of Hear us in the name of the Prince of U.S. Capi tol, Washin gton, D.C. DEAR MR. SPEAKER: I herewith offer my that organization are selected? Peace. Amen. resignation from the Committee on Educa­ · Mr. COOLEY. I would be very glad The Journal of the proceedings of yes­ tion and Labor and the Committee on the to do that. I would suggest that any­ terday was read and approved. Judiciary. one interested in the work of the In­ It has been a privilege and a pleasure to terparliamentary Union might very well work with the members of these committees, read Dan Reed's last extension of re­ ACCURACY IN NEWSPAPER and I regret that I must discontinue this marks, which I had inserted in the REc­ REPORTING associat ion. Sincerely yours, ORD on the day before he died. It is his Mr. SMITH of Mississippi. Mr. ALBERT H. BoscH, annual report. Speaker, I ask unanimous consent to ad­ Member of Congress. Mr. HALLECK. I make this sugges­ dress the House for 1 minute and to tion because many Members have spoken The SPEAKER. Without objection, to me of their interest in it, and par­ revise and extend my remarks. the resignation will be accepted. The SPEAKER. Is there objection to ticularly their desire to attend some of the request of the gentleman from Mis­ There was no objection. the meetings. So far I have not been sissippi? able to learn very much about it. There was no objection. ELECTION TO COMMITTEE Mr. COOLEY. Mr. Reed's report con­ Mr. SMITH of Mississippi. Mr. Mr. HALLECK. Mr. Speaker, I offer tains full information concerning the Speaker, I should like to raise one voice a resolution CH. Res. 183) and ask for Interparliamentary Union; and I sug­ in opposition to this great self-righteous its immediate consideration. gest that anyone interested read the re­ crusade which the press of the country The Clerk read the resolution, as port. If the Vandenberg Room is not has taken upon itself to conduct against follows: large enough to accommodate the Mem­ bers attending the meeting, another the House of Representatives in the past Resolved, That ALBERT H. BOSCH, New couple of weeks concerning relatives and York, be, and he is hereby, elected a member room will be made available and some­ alleged relatives on the payroll. I think of the standing Committee of the House of one will be at the door of the Vanden­ there are many things to be considered. Representatives on Ways and Means. berg Room to direct Members to the place If the press really wants to do some work of the meeting. I hope that the meeting on the subject of nepotism, I suggest that The resolution was agreed to. will be well attended. they put in a little legwork in the various . A motion to reconsider was laid on the Federal bureaus, agencies, and depart­ table. ments. UNEMPLOYMENT As an example of how careless and in­ INTERPARLIAMENTARY UNION · Mr. FOLEY. Mr. Speaker, I ask efficient l:as been the type of reporting on Mr; COOLEY. Mr. Speaker, I ask nnanimous consent to address the House this particular issue, in a story which unanimous consent to address the House for 1 minute and to revise and extend :ny was published yesterday under a head­ for 1 minute. remarks. line indicating that 65 Members of the The·SPEAKER. Is there objection to The SPEAKER. Is there objection to House have relatives on their payroll, the request of the gentleman from North the request of the gentleman from Mary­ they listed a young lady who is employed Carolina. . land? in my office whose maiden name happens There was no objection. There was no objection. CV--185 2919 2920 CONGRESSIONAL RECORD- HOUSE February 25 Mr. FOLEY. Mr. Speaker, like so munity, and other related matters. I Great Beyond one of the finest characters many other Members of the House and say it is good business and wise provi­ I have ever known and one of the finest so many millions throughout the land, I sion for our Government to spread its and most loyal of friends I have ever am increasingly concerned about the procurement so that efllcient facilities possessed. growth and volume of mass unemploy­ can be maintained in operation, that Yesterday afternoon, in Malden, Mass., ment. going concerns be kept in business, that died all that could die of Mrs. Esther When a country like ours has approx­ orders be placed so as to sustain a high Wheeler, after an extremely painful ill­ imately 5 million workers unemployed level of economic activity in all sections ness. Although this unrelenting disease then it is time to do something-do some­ of the Nation and in all sectors of the of cancer claimed the body of Esther thing more than prattle bright predic­ economy. And especially when the Wheeler, her noble and beautifui spirit tions that things are going to be better product is of demonstrated proficiency, will live on in the memory of her friends by and by. fulfills a needed requirement, and is the and associates forever. It is all very well for bureaucrats and lifeline of the manufacturing operation. Because of her interest in Government, economists to take the long view and In any event, Mr. Speaker, we are in her enthusiasm of work and association, console themselves with self-serving ob­ serious economic trouble in my district and her knowledge of the science and servations that before the end of the and I say that to allow this condition art of. politics, I am anxious to bring year things are going to better-but the to continue is highly injurious not only her life and contributions to the atten­ man out of work is concerned with the to us but also to the national welfare. tion of my colleagues here in the House here-and now. The head of a family We, of course, have no monopoly on this at this time. cannot maintain his household on statis­ problem. Unfortunately, scores and Esther Wheeler was a New England tics no matter how they are twisted for scores of communities and regions Republican. For many years she was political purposes. throughout the United States are sorely extremely active and worked unselfishly Mr. Speaker, I feel I can speak with afflicted with unemployment, and many in the interest of the Republican Party. some authority on this subject, not be­ of them have been so troubled for a long She was loyal to her party, but also fair cause I am an economist, but rather, time. in her dealings with the Democratic because I am living with the problem. It is in the best interest-s of all our Party. Esther Wheeler knew that the Right in my own own district in nearby people everywhere that these sore spots stability of American government de­ Maryland, many thousands are unem­ be cured. They can ultimately injure the pended upon a healthy two-party system. ployed. There are hard realities there economic health of the Nation grievous­ Although she worked hard for her own that will not bend to theorizing-these ly. This continuing and growing prob­ party, the Republican Party, she knew are able-bodied, willing workers who ask lem of joblessness makes a poor exhibit others had a right to believe in their not for relief or Government benefits but in Uncle Sam's showcast as we are en­ party likewise, and that the Demoeratic only the chance for a job so they can gaged in global competition with the Party was necessary just as much as was support their families and maintain police state economics of the Communist the Republican Party in American themselves in self-respect. empire. Not only are we greatly injur­ political life. I am seriously concerned about the ing ourselves at home by the continued In her work in the Republican Party, welfare and the well-being of these idle neglect of this problem, but with every Esther Wheeler brought kindness and workers, for themselves and for their uncommitted country in the world we courtesy, enthusiasm and spirit to the families, and I am also concerned as to are making a poor showing for our cap­ Republican cause. Republicans through­ what their enforced idleness means to italistic system. Every dictate of sound out the United States could profit very our national defense and our national economics, provident leadership, and in­ well by her example. Within her gentle­ economy. ternational competition demands that we ness and her enthusiasm was also to be As ram not an economist, neither am get on with the task of solving this found a rare sense of humor and the I a military strategist, but my common­ menacing problem of unemployment. ability of the light touch which greatly sense tells me that when we are faced Mr. Speaker, it is downright foolhardy helped during those moments when situ­ with a threat like the Soviet military for us to go into the arena against the ations became tried and difficult. machine and aggressive policies form, totalitarian opponent with one hand tied Throughout Massachusetts. Esther then I know we cannot in safety afford behind our back, and that's exactly what Wheeler was identified with many civic to have millions of unemployed in our we are doing when we drift along with activities. She was always ready to join great land. upward of · 5 million of our available in any activity that might prove benefi­ To my way of thinking we must be workers unemployed. This is not the cial to her community as well as the equally concerned with policies and pro­ American system: this is not the Amer­ Commonwealth of Massachusetts. Be­ grams to. put the jobless back to work ican way-we can do better, so let us cause of her attractiveness, her fineness, as we are with missiles and submarines tackle this challenging problem head on and her ability, people were anxious to and other instruments of defense. In without any further delay. work with her and found it easy to coop­ order to support the kind of a defense With this in mind, Mr. Speaker, I have erate with her in various activities. program we need for national safety and the privilege of introducing a bill em­ In 1953, Esther Wheeler served as Re­ survival, we need a strong economy, with bracing constructive proposals for area publican National Committee member full employment. It has been said time redevelopment a companion bill to H.R. for Massachusetts. Her service on the and time again that the Nation's military 3466, introduced by Congressman FLoon, national committee brought her into strength can only be as strong as the and I urge that it be given the speedy contact with many Republicans as well homefront. consideration that is warranted in view as Democratic political leaders all over Mr. Speaker, right in my home district, of the growing proportions of the unem­ the United States. She became well in Hagerstown, in fact, we have just wit­ ployment problem. known througout the country and was nessed a large cutback in the operating highly respected for her ability, her in­ force of an airplane manufacturer. This ESTHER WHEELER, OF tegrity, her courtesy, and gentleness. unpleasant development is made all the Tirelessly and selflessly, she worked dur­ more serious, to my mind, owing to the MASSACHUSETTS ing the campaigns and when the heat of fact that it was brought about because Mrs. ROGERS of Massachusetts. Mr. the campaigns was over, she continued of Government policy. Speaker, I ask unanimous consent to ad­ her efforts to strengthen those areas It is not my intention at this moment dress the House for 1 minute and to where her party needed strengthening. to go into a discussion of the comparative revise and extend my remarks. She was versatile and a person possess­ merits of one plane over another, nor am The SPEAKER. Is there objection to ing constructive suggestions. She was I going to pose as an expert in materiel. the request of the gentlewoman from always ready to help the candidates seek­ I do feel justified, however, in saying that Massachusetts? · ing election on the Republican ticket it would appear to me to be prudent pol­ There was no objection. whether they were seeking major or icy, in the conduct of our military pro­ Mrs. ROGERS of Massachusetts. Mr. minor public office. curement, to give due regard to the Speaker, it is with a he'avy heart that I Esther Wheeler was a leader. But status of a company, its backlog in or­ rise to address the House on this occa­ above all, I can truly and honorably say, ders, the economic climate of its com- sion. Yesterday there passed into the she was a great American. She was one 1959 CONGRESSIONAL RECORD- HOUSE ·2921 of those great and rare persons that be­ The past amply illustrates the need for urbs-to solve their own problems de­ cause of their life on earth, they have this Commission. Fifty-one years ago, pends on the tools which only concen­ made life for their contemporaries and there were people who were convinced trated study and examination can give those who follow fuller, finer, and richer. that President Theodore Roosevelt was them today. Because of her and all that she accom­ appointing just another impractical We all know the value of research­ plished, I thank God for permitting her study group when he assigned a group because in a scientific and technological to live during these times. In her own of people to the first Commission on nature ·this has been brought home to way she made her contribution to this Country Life. us with telling effect. The study and period of American political life. She But the fact remains that from the blueprint drawing today gear directly has carved her place in Massachusetts recommendations of this first Commis­ into tomorrow. We cannot afford to political history as well as in that of the sion came the impetus for many modern coast into tomorrow without adequate Nation. As a friend, I mourn with the rural programs which we today accept as preparation, without the tools to meet hundreds who were her friends. May commonplace. The fact remains that tomorrow's problems. her soul rest in peace. the first Commission performed an enor­ These, then, are-it seems to me-the mous service to our country by outlining most effective arguments for a Commis­ the necessary steps for our country to sion on Country Life. The record of CBS TELEVISION take in order to close the gaps in social past accomplishments, the need of today, Mr. SPRINGER. Mr. Speaker, I ask and economic development between the· and the forthcoming challenges of to­ unanimous consent to address the House country and the city. morrow. for 1 minute. The Country Life Commission of 1908 Now, what of the machinery of this The SPEAKER. Is there objection to faced up to the challenge which the 20th Commission? The bill I am introduc­ the request of the gentleman from century was imposing not only on agri­ ing today starts off with a declaration Illinois? culture, but on all the people who lived of purpose, and cites the five readily ap­ There was no objection. outside the environs of the metropolitan parent reasons for its introduction­ Mr. SPRINGER. Mr. Speaker, prob­ community. stemming from profound economic ably many of my colleagues in the House And so from the Commission came the changes affecting all phases of human saw and heard the Old Vic Players in impelling force for the great farm coop­ life and endeavor in country communi­ "Hamlet" last night on Columbia Broad­ eratives and organizations which have ties; the need for greater awareness on casting System from 9:30 until 11. played such a conspicuous part in rural the part of all people concerning the This was one of the highlights of the development. From that Commission interrelatedness of rural and urban video winter season. I can think of no came the 4-H movement which has forces shaping the country community; program in recent years which was bet­ trained so many young people for roles of the need for a critical and thoughtful ter done from a cultural standpoint. We leadership in life on the land. appraisal of the forces shaping the coun­ need more of this on TV. In short, the lesson we have from the try community by rural organizations; Members of Congress and the FCC are past is that such a Commission has pro­ the preservation of opportunity for in­ interested in better programing. I feel duced and can again produce a necessary dividual and local community initiative sure that the networks have been trying blueprint for progressive rural living. in a time of great economic adjustment; to improve programing as time has The present produces widespread evi­ and the necessity for the Nation to have passed, but we still have a long way to dence for a new Commission. Probably a body of objective facts, thoughtful go. One of the ways to keep pay TV out there is no better assessment of the appraisal, and a basis of value to enable of the picture is a constantly improved needs of the present in rural living than our people to make wise decisions in program for the major networks. what has been compiled by the American the area of country living. Congratulations to Dr. Stanton at Courltry Life Association, which has ad­ To implement these goals, a Commis­ CBS. This was a great production last vocated a Commission on Country Life. sion would be appointed to study eco­ night, and well-deserved congratulations In an initial proposal which it has nomic changes in rural living during a are in order. advanced, the association says: period of 2 years. The Commission Through the years many problems have would be composed of 15 members. Nine been solved or at least greatly reduced. This of these would be appointed by the Pres­ COMMISSION ON COUNTRY LIFE has been brought about by the willingness ident of the United States-but not more Mr. QUIE. Mr. Speaker, I ask unani­ of rural areas to work together in developing than six of this number would be of the mous consent to address the House for 1 and supporting self-help agencies and organi­ same political party. minute. zations. Three members would be appointed The SPEAKER. Is there objection to But in a changing society, there is no per­ by the President of the Senate, two from manent answer. In a society such as ours the request of the gentleman from which believes so strongly in the idea of the majority party and one from the Minnesota? progress, disequilibriums are the natural out­ minority party. There was no objection. come. The whole does not move forward or Three members would be appointed by Mr. QUIE. Mr. Speaker, today I am respond to the stresses and strains in the the Speaker of the House of Representa­ introducing legislation which, if enacted, same degree as some of its parts. This is tives, two from the majority party and would establish a Commission on Coun­ particularly characteristic of a society where one from the minority party. try Life. people are geared to the idea of freedom of The members of the Commission It just might be that, at first glance, thought and action. Because of this, it seems wise from time to would then select a Chairman from the Members of this body-who are called time to engage in a major stocktaking effort. membership and on completion of its upon daily to study proposals and pro­ The time is already here when a kind of study within the 2-year period, would grams of major importance to our coun­ general balance sheet for country living submit to the President and Congress its try-might be tempted to postpone con­ would be of use in all the major efforts being final report, including recommendations sideration of this bill on the grounds that made to maximize satisfactions of people who for legislative action. it is just another academic and scho­ are country residents. This, in brief, and without significant lastic appraisal of country living. The appointment of a body of highly omission, would be the framework of the skilled scholars, leaders, and spokesmen for The fact is that the need for this Com­ country interests, charged with the respon­ Commission and a guide to its operation. mission is of a top-priority nature-and sibility of giving meaning to the forces direct­ There is nothing more for me to say that far from being an "ivory tower" ing country living today, would seem to be a other than to underscore, as forcefully study group, this Commission would practical action. as I can, the nonpartisan and objective come to grips with the very real prob­ If such a group would do nothing else but nature of this Commission. Last year I lems confronting a large and important come up with some insights on how the tech­ was honored to share the authorship of a segment of our people. nological revolution will alter the concept of bill calling for a Commission on Country I suppose that there are three very agricultural production by family units, it would have served its purpose well. Life with a man I profoundly admire, the graphic reasons for the formation of this then Democratic Congressman from Ar­ Commission. And what of the future? The ability kansas, Brooks Hays. These reasons might well be called the of rural citizens-those on the farms, in Mr. Hays is no longer in this House, but past, the present, and the future. the small communities and in the sub- I have met with him, and I can assure my 2922 CONGRESSIONAL RECORD- HOUSE February 25 colleagues that he is intensely interested more vim and vigor than they try to organize all previous efforts in this field, and credited in the welfare of this bill. Both of us our competition that plagues us today. this success to what he called "the bold in­ I thought you might like to know that we genuity and aggressive approach characteriz­ agree-as I am sure an overwhelming have written a similar letter to members of ing the surgical attack on these grave majority of Members in this body agree­ the Senate Labor Committee. Your support diseases." that the need for the Commission is of fair legielation will be appreciated. Dr. Hufnagel's recent contribution ln de­ evident. Sincerely and with best wishes, vising a plastic valve for surgical treatment This year I am privileged to share the WALLACE H. ALEXANDER. of the condition known as aortic insufficiency authorship with a distinguished mem­ 1s typical of this progress and this approach. ber of the majority group in this body, This condition, most frequently caused by Congressman CLARK THOMPSON, of Texas. DR.CHARLESA.HUFNAGEL rheumatic heart disease and syphilis, re­ sults in serious overworking of the heart Mr. THOMPSON is, as you know, the chair­ Mr. ADAIR. Mr. Speaker, I ask unani­ and may cause heart failure. In Dr. Huf­ man of the Family Farm Subcommittee mous consent to address the House for 1 nagel's operation, a plastic valve, 1Y:z inchee of the House Committee on Agriculture minute and to revise and extend my re­ long, is inserted in the aorta. The artificial and is a man who is thoroughly familiar marks and include a statement. valve corrects aortic insufficiency by pre­ with the work the Commission would The SPEAKER. Is there objection to venting blood from flowing back into the pursue. the request of the gentleman from heart. Already it has saved many lives, and I hope that this Congress will give the it will save many more. Indiana? Dr. DeBakey concluded his talk Thursday bill the attention it deserves, because . There was no objection. morning with a prophecy. "The tremendous there are few things we can do today Mr. ADAIR. Mr. Speaker, on Febru­ strides that have been made in the past which will be of greater service to the ary 22-which also happened to be desig­ decade portend other advances of even future of our rural areas. nated as "Heart Sunday"-the Indiana greater importance," he said. "The future Society of washington met to pay honor of cardiovascular surgery is brighter than to a native Hoosier. Appropriately ever." LABOR REFORM I am confident that this prophecy will enough, this man-Dr. Charles A. come true, and that our Hoosier of the Year, Mr. MUMMA. Mr. Speaker, I ask Hufnagel-is known particularly for his who has made brilliant contributions to our unanimous consent to address the House work in the field of heart surgery. He present progress, will contribute no less for 1 minute and include a letter. has developed a plastic valve which can brilliantly to this brighter future. The SPEAKER. Is there objection to be surgically inserted into the heart the request of the gentleman from and has already saved many lives as a Pennsylvania? result of the 350 operations of this sort COMMITTEE ON NONESSENTIAL There was no objection. Dr. Hufnagel has performed. FEDERAL EXPENDITURES Mr. MUMMA. Mr. Speaker, the labor Although the Surgeon General of the The SPEAKER. Pursuant to the pro­ situation in our country seems to be a United States, Dr. L. E. Burney, himself visions of section 601, Public Law 250, very pertinent matter in these times. I a Hoosier, was ill, he had prepared in- · 77th Congress, the Chair appoints as a was much surprised to receive a letter troductory remarks which were read in member of the Committee To Investigate yesterday from one of the biggest con­ his behalf on this occasion. I ask Nonessential Federal Expeditures to fill tractors in my distric~ opposing the cut­ unanimous consent, Mr. Speaker, that the existing vacancy thereon, the follow­ ting down of this prehire time. It is Dr. Burney's remarks may be included at ing member of the Committee on Ways now 30 days that a man has the privi­ this point in the RECORD. We Hoosiers and Means: Mr. SIMPSON of Pennsyl­ lege of working and then deciding are proud of Dr. Hufnagel and the work vania. whether or not he wants to join a labor that he has done to benefit mankind. union. Two of the biggest jobs in my REMARKS BY L. E. BURNEY, M.D., SURGEON district in the last couple of years were GENERAL, PUBLIC HEAL'IH SERVICE, DEPART­ CLERK HffiE FOR MEMBERS OF hired under those conditions. I remem­ MENT OF HEALTH, EDUCATION, AND WELFARE CONGRESS ber one were the contractors from Pitts­ It gives me great pleasure and pride, as a Mr. HOFFMAN of Mjchigan. Mr. burgh, Booth & Flynn, who are very big fellow Hoosier and fellow worker in the Speaker, I ask unanimous consent to ad­ people, and when they started to have field of health, to salute the achievements of Dr. Charles A. Hufnagel on the occasion of dress the -House for 1 minute and to the men sent down whom they had to revise and extend my remarks. employ they raised an objection and his being named "Hoosier of the Year." The State of Indiana may well be proud, The SPEAKER. Is there objection to said, "We have 30 days to do this and and the Nation is most fortunate, that Dr. the request of the gentleman from let the men find out whether they want Hufnagel has chosen to devote his extraordi­ Michigan? and like the job, a:r..d we should also have nary abilities to pioneering in the saving of There was no objection. the same respect for us to see whether human lives. To my mind, there can be no Mr. HOFFMAN of Michigan. Mr. we like him." This letter explains this greater challenge and no higher purpose. Speaker, in view of the interest displayed situation more fully. As all of you know, Dr. Hufnagel is a by some Members of Congress on the The letter is as follows: graduate of Notre Dame University, and re­ ceived his medical degree at Harvard. He question of how the money allocated to H. B. ALExANDER & SoN, INC., has taught at Harvard and at Georgetown Congressmen for clerical assistance has Harrisburg, Pa., February 18, 1959. University here in Washington. Since 1954 been expended, so far as is recalled, The Honorable WALTER M. MUMMA, he has been professor of surgery and director never, except with one exception has all Sixteenth Congressional District, Pennsyl­ of Georgetown's laboratory of experimental the money allocated to the Member from vania, House Office Building, Washing­ medicine. His particular specialization is in the Fourth District of Michigan been ton,D.C. the field of heart surgery. DEAR "PAPPY": We are in favor of an ef­ By following this specialty, Dr. Hufnagel used. That was due to the fact that fective labor reform bill without amend­ has taken his place among the leaders in one two of the office employees were seriously ments which would weaken the Taft-Hartley of the Nation's most exciting crusades-the ill at the same time and for 2 months law. attack on our greatest health problem. all the money available was used. Other­ We are opposed to the so-called prehire Every year, more than twice as many Ameri­ wise there has always been a balance left provisions of S. 505 and the provisions of cans die of diseases associated with the heart in the account and to use by the U.S. S. 748, which would legalize secondary boy­ and circulatory system than from any other Treasury. cotts in construction. In our area the 30-day cause. At the same time, however, more and period of employment has worked satisfac­ more Americans every year are literally being Two members of my family have been torily, and feel sure that a shorter period given a new lease on life, thanks to Dr. employed by me on occasion, and it is my would not benefit the local building trades Hufnagel and his fellow pioneers. Heart purpose to keep them on and if possible union or ourselves. Thirty days gives both conditions considered hopeless 10 years ago increase their compensation as time goes the union, ourselves, and the employee b~­ are being treated successfully, even routinely, on and as they earn additional money. lng hired a chance to understand the terms in today's hospitals. Both are graduates of the University of and benefits of collective bargaining. This past Thursday I took part in a meet­ Michigan. One is also a very competent I am particularly concerned with S. 748 ing here in Washington celebrating a decade and the claim of organized labor that the of progress against -cardiovascular disease. stenographer. She is_doing a more than construction industry considers the sec­ One of the .participants, Dr. Michael E. worthwhile job. A grandson was able ondary boycott amendments as noncontro­ DeBakey of the Baylor University College and fortunate enough to get another very versial. In our area the building trades of Medicine, stated that advancements !n fine girl to accept his offer of marriage. unions continually "police" us with much heart surgery in the past decade far surpass They both are very good analysts. 1959 .CONGRESSIONAL RECORD- HOUSE 2923

Having tried jury cases for something an apology is necessary .if a relative, have permission.to si~ today during gen- like 30 years, bitter experience taught either by blood or marriage, is on the eral debate. · me that thoroughness was essential; that congressional payroll. The SPEAKER. _ Is there objection? facts were all important; conclusions, In view of the fact that a former There was no objection. while helpful, not to be relied upon. Speaker of this House-that grand old For each of the employees referred to, man of Texas-John Garner-of whose I have subscribed to and out of my own wife it might, with but little, if any EXPENSES OF COMMITTEE ON funds paid for publications like the Chi­ exaggeration, be said, was a major part LEGISLATIVE OVERSIGHT cago Tribune, an independent advocate of the partnership, saw fit to take ad­ The SPEAKER. The Chair recognizes of constitutional governr.1ent; the News­ vantage of the opportunity for able and the gentleman from Maryland [Mr. Palladium and the Herald-Press, of Ben­ faithful service, there is no reason why FRIEDEL]. ton Harbor and St. Joseph; five other Members of less responsibility or years Mr. FRIEDEL. Mr. Speaker, by direc­ dailies published in the district; the U.S. of service should not employ relatives tion of the Committee on House Admin­ News & World Report; local weekly who earn whatever is paid to them. istration I submit a privileged resolution papers, and several ad is familiar with it feels looked upon with favor by typical Amer­ I know too of some instances where should be made on the utilization and ican women-housewives, bless your the wife r~nde~s a service at least as valu- the allocation of the spectrum in connec­ heart-who were not only good cooks, able to the people of the Congressman's tion with our communications facilities. but intelligent up-to-the-day women, district as does the Congressman him- Mr. GROSS. How much did you get who not only possessed their share of self. My only suggestion is, "Let your last year? How much increase are you good sense but with sound economic views. conscience be your guide" and do not asking-$350,000? worry. Mr. HARRIS. No. . We are asking for Think I have told you before that for the $350,000-yes; so far as the increase some reason to this day unexplained, I is concerned, but I do not believe that was enabled to induce the belle of the ELECTION OF MEMBER TO COMMIT- would be correct if he is relating it to town in which I opened my law office at TEE ON THE JUDICIARY last year's expenditures. the advanced age of 21 years, though I had no visible income, to accept my pro­ Mr. HALLECK. Mr. Speaker, I offer Mr. GROSS. Is this in addition to posal, and, to the wonder of our mutual a privilege resolution (H. Res. 184) and moneys already appropriated to the friends, she has been able for 59 years­ ask for its immediate consideration. Interstate and Foreign Commerce Com­ plus a few months-to put up with the The Clerk read the resolution, as mittee? situation. follows: Mr. HARRIS. It is in addition to the So as you, my colleagues, pat your­ Resolved, That JoHN H. RAY, New York, money which was provided for the com­ selves on the back because your kind­ be, and he is hereby, elected a member of the mittee a -few days ago for the regular heartedness has enabled you to tolerate standing Committee of the House of Repre• work of the committee. This is for spe­ me for some 20-odd years, just remem­ sentatives on the Judiciary. cial studies. Mr. GROSS. How much does it total? ber that the good wife somehow has been The resolution was agreed to. able to survive a similar situation for Mr. HARRIS. In total it amounts to twice that long. $475,000. No apology is offered because of em­ Mr. GROSS. This is a lot of money, ployment of these, by marriage, relatives. COMMITTEE ON BANKING AND does not the gentleman think so? Each is doing the work assigned her; CURRENCY Mr. HARRIS. Yes; and it is a lot of each is earning every penny of the Mr. McCORMACK. Mr. Speaker, I work. money she receives. My only regret is ask unanimous consent that the Com­ Mr. GROSS. Do you see any Goldfine that some Members seem to think that mittee on Banking and Currency may cases on the horizon? 2924 CONGRESSIONAL RECORD- HOUSE February 25 Mr. HARRIS. No; ·I do not at the sylvania [Mr. FLOOD] is recognized for Panama shall, without the consent of the moment. I did not see the other one 30 minutes. United States, affect any right of the United States under the present convention, or under when we started out 2 years ago. Mr. FLOOD. Mr. .Speaker, in previous any treaty stipulation between the two Mr. GROSSh It seems to me this is a addresses to the House on the Panama countries that now exists or may hereafter lot of money to provide one committee. Canal, I have dealt at length with inter­ exist touching the subject matter of this !"do compliment the gentleman and his oceanic canal problems, especially the convention. committee on the job it did in the Gold­ diplomatic and juridical, following the fine case. Suez crisis of 1956. Two recent events The meaning of this treaty provision Mr. HARRIS. Thank you very much. have again attracted world attention to is clear and unambiguous. It should pre­ I assure the gentleman it will be the the Isthmus. clude application through unilateral ac­ intention of the committee to carry out The first was a Panamanian enact­ tion by Panama derogating in any man­ its responsibilities toward the objectives ment signed by President Ernesto de la ner the rights, power, and authority of we started out on last year. Guardia on December 18, 1958, which de­ the United States and world shipping Mr. HOFFMAN of Michigan. Mr. clared the extension of Panama's ter­ with respect to the Panama Canal and Speaker, will the gentleman yield? ritorial waters from the internationally Canal Zone. But it does not protect Mr. FRIEDEL. I yield to the gentle­ recognized 3-mile limit to a 12-mile lim­ against agitations revealed as conform­ man from Michigan. it; the second, the refusal of the Panama ing to a worldwide conspiratorial pro­ Mr. HOFFMAN of Michigan. The National Assembly to reconsider this ac­ gram of Communist origin against the gentleman held some very helpful hear­ tion as requested on January 9, 1959 in United States. ings last year, one especially helpful to a note by the U.S. Government. The first As could be expected, Mr. Speaker, by the people of the Fourth District of was treated by me in an address to the anyone adequately familiar with Isth­ Michigan. Undoubtedly the chairman House, also on January 9, 1959. mian diplomatic history, a formal re­ will recall, however, that in one hearing Certainly, a matter so charged with quest by the United States in a matter the committee records were taken from serious implications as control of the so vital could only lead to acrimonious the files and carted over to Drew Pear­ approaches of the Panama Canal, which and futile international debate. It is, son's office. Has anything been done to are essential for its successful operation indeed, significant that Panama quickly prevent a repetition of that procedure? and protection, cannot remain unchal­ distributed copies of its action to all leg­ Mr. HARRIS. In the first place, the lenged and unclarified. They require a islative bodies of the world in an effort gentleman is slightly incorrect. On that further statement so that the people and to gain worldwide support for its un­ very important evening the records, or the Congress of the United States, all justifiable attempt at boundary revision. many of the files, were taken out of the maritime nations, and various interests Most certainly, Mr. Speaker, the ques­ office and carried around over town, but that use the canal, may be better in­ tions involved, which are covered by basic they were not, as far as I know, carted to formed. treaties, should not be permitted to be­ Mr. Drew Pearson's office; they went to In approaching this complicated sub­ come topics for debate. This can be the apartment of another person. ject, I wish to stress that the issues are prevented only by a clear-cut, unequivo­ Mr. HOFFMAN of Michigan. I stand fundamental, and challenge the right of cal declaration by the Congress of the corrected, but it was an employee of the United States to meet its treaty obli­ United States reasserting our historic Drew Pearson who did some of the cart­ gations. Thus, they transcend all per­ and practiced Isthmian Canal policies. ing around. Jack Anderson is the gen­ sonal or political considerations and must PANAMA NATIONAL ASSEMBLY'S REFUSAL tleman I am talking about. be considered on the highest plane of Specifically, in response to the request Mr. HARRIS. He was with the other statesmanship. Also, I desire to empha­ of the United States, what did the Pan­ person, yes. size that, as regards the Republic of ama National Assembly actually do? It Mr. HOFFMAN of Michigan. My Panama and its people, I hold both in voted on January 13, 1959, after receipt question is whether any·steps have been the highest esteem, and count many of the U.S. protest, not to reconsider, for taken to prevent a repetition. Panamanian citizens as valued friends any reason whatever, the currently at­ Mr. HARRIS. . The committee took of many years standing. tempted extension of its maritime do­ steps. It was contrary to present law To this task of clarification, I now ad­ 0 main to the 12-mile limit. The prime and was in violation of the criminal law, dress myself. purpose for this effort is obvious: en­ and we made recommendations to the UNITED STATES REACTED PROMPTLY 0 circlement of the Canal Zone with 9 Department of Justice to act accord- When reacting to the ex parte action miles of alleged Panamanian waters at ingly. of Panama allegedly extending its mari­ ·each end, in effect, making the zone an­ Mr. HOFFMAN of Michigan. Did you time jurisdiction surrounding the Canal other Berlin. get any suggestion out of those who were Zone, what position did the U.S. Govern­ It ~called upon all friendly nations to doing the carting, or out of Pearson that ment take? support the ?anamanian pronouncement they would not do it any more? The note delivered on January 9 by our and directed that copies of the resolu­ Mr. HARRIS. No; we did not get that Ambassador to Panama contained the tion be- transmitted· to· ·an legislative promise. following significant points: bodies of the world. It castigated this Mr. HOFFMAN of Michigan. Did you First. Stated that the United States speaker [Mr. FLooD] as being public get any prosecution? . consiaers the action of the Republic of enemy No. 1 of Panama. It hurled Mr. HARRIS. Not yet. Panama regrettable in view of a forth­ numerous invectives that will receive no Mr. HOFFMAN of Michigan. Will coming international conference.to con­ attention from him except to say that you? sider the width of territorial seas. he has always been, and is, a true and Mr. HARRIS. We made the recom­ Second. . Expressed the view that there realistic friend of Panama and its people; mendation and we are urging the De­ is no basis in international law for claims and that he will not be deflected from partment to act. We sent a report to territorial seas in excess of 3 nauti­ the proper discharge of his duty as a down. · cal miles, and that there is no obligation Member of the Congress of the United Mr. HOFFMAN of Michigan. I think on the part of States adhering to the States by what must seem to those who it would be .well to follow up action of 3-mile limit to recognize claims of other view the situation objectively as the that kind. · States for greater widths. heedless, if not childish, actions of lead­ The SPEAKER. The question is on Third. Requested the Government of ers in the Panama National Assembly. the resolution. Panama to reconsider its action and re­ Especially noteworthy, however, was The resolution was agreed to. served its rights in the area af!ected-by the Panamanian enactment. the failure of the national assembly or A motion to ·reconsider was laid on the its leaders to meet adequately the his­ table. Fourth. Based the rights of the United States on article XXIV of the 1903 Hay­ torical, diplomatic, and juridical objec­ Bunau-Varilla. Treaty. tions that have been repeatedly made ISTHMIAN CANAL POLICIES-A ~ecause of the importance of this pro­ on the floor of the House and published CHALLENGE TO THE CONGRESS 0 vision, I shall quote it: in- the press of Panama. Rather, they The SPEAKER. Under previous- order · No change either ln"the Government or in have ignored or attempted to confuse of the House, the gentleman from Penn- the laws and treaties of_ the Republic o! these statements of facts. 1959 CONGRESSIONAL RECORD- HOUSE 2925 UNDERLYING PANAMANIAN OBJECTIVES REVEALED These are some of the many require- acquired domain of the United States in Of far greater significance, Mr. Speak­ ments that· Panama probably would im- perpetuity for canal purposes; that the er, than either the formal actions or pose if the validity of its enactment were grant of this territory, "rights, power, failures of the National Assembly on the ever· conceded.- Their significance is and authority" within the Zone, and its indicated occasion, was the revelation. in readily apparent to the ship operators "auxiliary lands and waters," is to the the heat of the 4-hour full dress debate oi all nations as it is to all who are in:. "entire exclusion of the exercise by the preceding adoption of its resolution, of fdrmed on the problems of the Panama Republic of Panama of any such sov­ the principal underlying political aims of Canal. er.eign rights, power, or authority"; and certain Panamanian leaders. Should Candidate Boyd's insistence on that the treaty set up provides likewise Deputy Aquilino Boyd, a former For­ 50 percent of the gross annual canal rev- for exclusive U.S. control over the mari­ eign Minister of Panama, and now a can­ enues for Panama, which would approxi- time approaches from one high sea to didate for President, made the following mate $43 million as compared to $3,800,- the other as essential for free and open points: 000 for present net revenues, ever prevail, navigation and for efficient canal First. Demanded that Panama receive the resulting deficit of approximately $40 operation. half of the gross revenues of the Panama million would have to be borne by the In 1903, when the H·ay-Bunau-Varilla Canal. overburdened American taxpayer or Treaty was ratified by Panama and the · Second. Asserted that the Panama world shipping, with possible liquidation United States, the limits of the terri­ Canal is now iurrounded by 9 miles of the entire· canal. enterprise. ' This ' torial waters nf the Republic of Panama of exclusively Panamanian waters in factor alone clearly illustrates how reck- and Canal Zone were coterminus. No which Panama can exercise definite acts less politicians sometimes can involve subsequent international agreement has of sovereignty. themselves in proposals that are abso- changed those limits. To be valid, any Third. Enumerated these alleged acts lutely ridiculous and absurd. change in them must be authorized in of sovereignty as follows: Furthermore, Mr. Speaker, in view of treaty or other convention in which all the assertions and demands listed above affected parties participate. Moreover, (a) Requiring the display of the Pan­ and facts elsewhere developed in this even if Panama could, .by legislative ac­ ama flag on vessels entering Panamanian address, I submit that if Panama has any tion, extend its jurisdiction over the sea waters. enemy No. 1, he is not in the United approaches to the canal, immediately

PANAMA NO -LONGER · POSSESSES MONOPOLY' OJ'" management of the Panama Canal un­ tirement of the United States from con-­ CANAL ROUTES der -the control of the United States. trol of the canal would certainly be fatal Many explanations for· the extreme They also know .that the United States to Panama-fatar not only to its-econ­ and radical demands concerning the is not their "common enemy" but their omy but also to its independence. - It Panama Canal, emanating from the true and tested friend. must be obvious, Mr. Speaker, to all isthmus and elsewhere, may be given. Unfortunately, the actions of some of thoughtful Panamanians, as well as But one of the most potent factors un­ their heedless leaders and agitators North Americans, that though· radical derlying them is the erroneous assump­ seem more determined to follow the ex­ elements may be planning murder, they tion in Panama that no other location ample of Egypt in the Suez crisis and are actually preparing for suicide. exists for another Isthmian Canal-an Communist leads rather than the real MUTUAL UNDERSTANDING NOT A ONE-WAY assumption that is responsible for the interests of their country. Their offi­ PROCESS bold, radical, and ever-increasing de­ cial actions present grave questions for Mr. Speaker, when the 1955 treaty mands put forth in behalf of Panama. the United States that must be ade­ with Panama was concluded, the people During the crucial years of Panama quately met. of the United States assumed that it Canal history, 1902-06, when the great RADICAL DEMANDS FOSTER DRIVES FOR would demonstrate the mutual under­ decisions as to the choice of route and INTERNATIONALIZATION standing and cooperation of the two type of canal were made, Panama was The vast majority of the North Amer­ countries for many years to come. This . undoubtedly the best choice from every ican and Panamanian people look upon was accompanied by the specific provi­ controlling point of view, especially oper­ the Panama Canal as an ageless in­ sion that neither the 1903 nor 1936 trea­ ations, engineering, and economy. With­ stitution. But this is not true. Those ties with Panama, nor the 1955 treaty, out question, the proper decisions were who know its history understand that may be modified except by mutual con­ made, and many years of successful oper­ were the United States ever to withdraw sent. ations fully justify them. from the Panama Canal, the results How generously the United States has But limitations that then applied, es­ would, indeed, be tragic for Panama and met its isthmian obligations is a matter pecially in engineering, no longer hold. world commerce. of record. SJme of them have been au­ All major engineering problems were Attacks on U.S. jurisdiction are not thorized by law; for example, the $20 solved long ago and now there are other new. They trace back to discussions in million bridge across the canal at Balboa. routes competitive with the Panama 1917 in Petrograd between the Red This project, for which bids were to be route for major increase of interoceanic Guard and John Reed, a notorious opened on February 11, if built, should transit capacity. American Communist newspaper re­ improve economic conditions at Panama Made even more competitive by the porter now buried in the Kremlin. Dur­ during construction and later serve the effects of the 1936 and 1955 treaty fac­ ing recent years an important factor in hinterland of the Republic. tors at Panama, together with extreme the agitations and disorders that have But how well have certain Panamanian demands and actions in that country, occurred on the isthmus has been their leaders, some of whom are in high sta­ some of these routes may be passing the communistic pattern and design. In tions, met the basic treaty obligation of Panama route in desirability from sev­ fact, international communiEm in 1956, mutual understanding and cooperation? eral important standpoints, including a following the Suez crisis, opened its The answer to this, Mr. Speaker, is also more satisfactory political climate-a de­ agitational campaign aimed at wresting a matter of record-hostile agitations termining factor, other things being control of the Canal Zone from the and propaganda against the United equal. United States by means of agents States, which has been repeatedly pre­ At this moment, Mr. Speaker, pursuant trained at the State College for Politi­ sented to the Congress in documentary to authorization of the House of Rep­ cal and Social Science at Prague, form. Yet so far, the United States has resentatives, a distinguished Board of Czechoslovakia. taken no adequate action. Consultants under the direction of the Indeed, it is most extraordinary that This treaty of 1955, Mr. Speaker, was Committee on Merchant Marine and a few U.S. citizens, including several designed to compose the economic and Fisheries is delving into the question of in high stations in life, have, since other relationships between the United a canal at another location to take care 1956, urged internationalization, a States and Panama for the foreseeable of the greatly increased Isthmian traffi_c proposal that conforms to the long­ future. Undoubtedly, this was the .in­ of the future. These unjustifiable oc­ range Soviet program that is so hostile to tention of the treatymakers of both currences in Panama will doubtless the United States. It is significant, how­ countries. Yet as soon as the United cause this Board to search, with the ever, that these leaders have never advo­ States implemented the treaty provisions, utmost zeal, for another route. cated nationalization by Panama. I these radical demands in Panama arose To say the least, the current absurd hope that they and all others with simi­ and the recent assembly action was - and reckless demands under radical lead­ lar views will study the isthmian ques­ taken. By the same token, we can cer­ ership at Panama may well force the tion in all its phases. Then they should tainly expect that, if all the radical de­ United States to the alternative of an­ be able to form judgments based upon mands in Panama are granted, even other trans-isthmian waterway in pref­ political realities and not idealistic the­ greater and more peremptory ones are erence to submission to the prohibitive oty or wishful thinking. to be expected. This is certainly not the costs inevitably involved in these de­ The great mass of the American people, process of mutual understanding con­ mands. especially those who have served with templated in the 1955 treaty. UNITED STATES NOT THE "COMMON ENEMY" OF the Panama Canal organization or in the In view of all this, will not the ques­ PANAMA Armed Forces in the isthmian area and tions arise in the minds of U.S. tax­ Among the most gratifying of my ex­ know the problems at firsthand, un­ payers: periences in c_onnection with the canal. doubtedly favor continued U.S. con­ First. Who must bear the ultimate. question are the many assurances of trol. The radical demands in Pan­ cost made necessary by that treaty, in­ support, from various parts of the na­ ama herice cannot in any way serve to cluding the $20 million bridge at Balboa,­ tion and from the isthmus. I am benefit that country, but they do aid and where an adequate free ferry provided especially happy to state also that much abet proposals for internationalization by the United States has long been sat­ of this support comes from thoughtful now being strenuously agitated from isfactorily functioning? Panamanians, among whom the United Communist sources. Such event, I know Second. Why should we be taxed to States has many understanding friends . . from a large correspondence, thoughtful meet these costs when they fail to achieve They very definitely do not approve. of Panamanians and Americans do not wish the intended purpose of good will and the extreme agitations and unrealistic to occur. Significantly, it may be added, mutual understanding on which they demands affecting the Panama Canal· there have been no Communist proposals were based? that hav.e been made since the 1956 Suez for nationalization of the canal by In this eonnection, I may say, that my crisis. They know the history of their Panama. correspondence voices strong demands country and that their independence . Hence, all these.radical and impossible that the Balboa bridge project be sus­ grew out of the canal enterprise. They demands in Panama can have but one pended until the attemp-ted incirclement appreciate that their natio:Q.'s welfare result, that o{ helping to dig the grave of the Canal Zone by Panama. is re­ depends on the efficient operation and of the Panamanian Republic. The re- s~inded. 2928 CONGRESSIONAL RECORD- HOUSE February 25 ISTHMIAN CANAL POLICIES A CHALLENGE TO time separation of the two coasts of the United States should not, in any wise, sur­ THE CONGRESS United States by Communist controlled render to any other government or authority Mr. Speaker, from what has been said countries, as illustrated · by the recent its jurisdiction over, and control of, the here today, it is clear that the isthmian Canal Zone, and its ownership, control, man­ Communist effort in Guatemala. agement, maintenance, operation, and pro­ question is headed toward even graver To meet these situations, it is neces­ tection of the Panama Canal, in accordance developments than have so far tran­ sary to understand the issues in their with existing treaty provisions; and that (2) spired. These are not the words of a broadest sense and that they are ex­ it is to the best interests-not only of the prophet, but deductions enabled by close ceptional. Their handling requires men United States, but, as well, of all nations and observation and study, and the realiza­ of exceptional qualifications. The past peoples-that all the powers, duties, author­ tion of what occurred in 1958 when riotf), failures in some important isthmian poli­ ity, and obligations of the United States in taking place during student demonstra­ cies are frightening. In every sense, the premises be continued in accordance tions against the Panamanian Govern­ they constitute a serious challenge to the with existing treaty provisions. ment, were responsible for the deaths of Congress. [Department of State press release, Jan. many Panamanians. Current reports of As to the basic question of future ma­ 10, 1959] expected revolt in Panama, coupled with jor increases of transit capacity, as previ­ finding of arms caches in that Republic, ously stated, an inquiry into that is un­ UNITED STATES DELIVERS NOTE TO PANAMA ON and other recent revolutionary events in derway by men of the highest profes­ 12-MILE TERRITORIAL SEA LAW the Caribbean, presage future grave in­ Our Ambassador to Panama delivered on sional attainments and independence. January 9 a note to the Panamanian Govern­ cidents -which, in tragic consequences, In regard to discussions of sovereignty ment in which the United States stated its may make those of May 1958 appear in­ and jurisdiction over the Canal Zone and nonrecognition of the provisions of the re­ significant. Panama Canal, that matter is now be­ cently enacted Panamanian law providing for Th·e history of the isthmus is compli­ fore the Congress in House Concurrent a 12-mile territorial sea and reserved all of cated and not understood as it should Resolution 33, 86th Congress. This its rights in the area which is the subject of be, either in Panama or the United measure would reaffirm our long-estab­ the law. The text of the U.S. note is as lished and practiced isthmian policies, follows: States. Its problems are grave; and "ExcELLENCY: I have the honor to refer to they can be surmounted only if dealt serve notice that this Nation will con­ your note No. 1096, dated December 23, 1958, with promptly and effectively. tinue its control over the Panama Canal, transmitting a copy of Republic of Panama Mr. Speaker, the situation with re­ and counter the movements now con­ Law No. 58, of December 18, 1958, which has spect to the Panama Canal is, indeed, verging on the Isthmus of Panama. as its purpose the extension of the territorial of the gravest character. Those in Mr. Speaker, the United States, in sea of the Republic of Panama to a distance charge of the Communist movement in some of its policies, has played the part of 12 miles from the coast. of "Uncle Sap" long enough. The time "I have been instructed to state that the Latin America, and especially in the U.S. Government considers this action of Caribbean area, have undoubtedly fo­ has come to resume its historic role of the Republic of Panama is regrettable in view cused their conspiratorial activities on "Uncle Sam"-a role, though generous in of the recent action of the United Nations the Panama Canal with the purpose of its policies, was firm in the protection of General Assembly in voting overwhelmingly causing the destruction of amicable re­ the Nation's just interests. to call an international conference to con­ lations between the United States and As partial documentation upon which sider the breadth of the territorial sea and Panama, with complete liquidation of some of the foregoing remarks are based, fishery matters. U.S. controls over the canal itself. under leave accorded, I include a copy of "It is the view of my Government, as ex­ House Concurrent Resolution 33, 86th pressed at the United Nations Law of the Sea While I would not charge that the Conference and on previous occasions, that Government of Panama is one of com­ Congress and a number of statements no basis exists in international law for claiins munistic character, yet it is undoubtedly published in the United States and Pana­ to a territorial sea in excess of 3 nautical true that overall Communist purpose is ma, commended for perusal, especially by miles from the baseline which is normally to subvert any Government where situa­ committees of the Congress that deal the low-water mark on the coast. Further­ tions present themselves as fertile fields with interoceanic canal questions. more, in the U.S. view there is no obligation for communistic endeavors. They are Among the statements quoted, special on the part of states adhering to the 3-mile attention is invited to that of former rule to recognize claims on the part of other always fishing in troubled waters and, states to a greater breadth of territorial sea. with the devil's cunning, are usually President Harmodio Arias, who presents "My Government hopes that the Govern­ able to capitalize on situations thus the Panamanian viewpoint, which I be­ ment of Panama will find it possible to re­ created. Therefore, it is but natural lieve, are fully answered in this and consider its action and awaits the further that the Soviet Government should previous addresses I have made on the consideration of the question of the breadth properly "recognize" the ex parte ter­ subject. of the territorial sea by the international ritorial declaration by Panama touching The resolution and statements follow: community. In the meantime the Govern­ HOUSE CONCURRENT RESOLUTION 33 ment of the United States reserves all of its the matter of sea approaches to the rights in the area which is the subject of Re­ Canal. So far as I know, Panama made Whereas there is now beine strongly urged public of Panama Law No. 58. of December 18, no appeal or gave any notice to any in­ in certain quarters of the world the sur­ 1958. render, by the United States, without reim­ · "Accept, Excellency, the renewed assur­ ternational body or to the great mari­ bursement, of the Panama Canal, to the time nations using the canal as to its ances of my highest consideration." United Nations or to some other interna­ The Department wishes to point out, in intention to take the gravely important tional organization for the ownership and view of the many inquiries, that this n Ew step involved. This certainly did not operation of the canal; and Panamanian law cannot affect the rights of serve the purpose of "mutual under­ Whereas the United States, at the expense the United States with respect to the Panama standing and cooperation" that should of its taxpayers and under, and fully relying Canal. ·Article XXIV of the convention of prevail. Small wonder that it has met on, treaty agreements, constructed the canal, 1903 between the United States and Panama, with Soviet approval. and sinc;:e its completion, at large expendi­ relating to the canal, provides: Commenting further on Soviet influ­ ture, has maintained and operated it and pro­ "No change either in the Government or in vided for its protection and defense; and the laws and treaties of the Republic of ence in the Caribbean area, we must re­ Whereas the United States, following the Panama shall, without the consent of the call that in 1958 in Venezuela and just construction of the canal, has since main­ United States, affect any right of the United now in Cuba, occurred the overthrow of tained, operated, and protected it in strict States under the present convention, or under two Latin American Governments, with conformity with treaty requirements and any treaty stipulation between the two coun­ daily reports of summary executions in agreements, and has thus made it free, with­ tries that now exists or may hereafter exist the latter country that were shocking to out restriction or qualification, for the ship­ touching the subject matter of this conven­ ping of the entire world; and, in conse­ tion." the people of all lands of constitutional quence of which, with respect to the canal liberty. Only governments of law can and the Canal Zone, every just and equitable bring peace and prosperity. consideration favors the continuance of the [From Congressional Information Bureau, We may well expec·t other convul­ United States in the exercise of all the rights Washington, D.C., Feb. 4, 1959] sions in the Caribbean area, especially in and authority by treaty provided, and in the Following today's session of the House the littoral nations of the American isth­ discharge of the duties by treaty imposed: Merchant Marine Committee, Chairman BoN­ Now, therefore, be it NER annQunced that the following are some rims, and this regardless of whether there Resolved by the House of Representatives of the matters that should be looked into: are any basic justifications. The ob­ (the Senate concurring), That (1) it is the ..1. Trans-Isthmian Canal study: Over a vious Communist objective is the mari- sense and judgment of the Congress that the year ago the committee, recognizing a trend 1959 CONGRESSIONAL RECORD- HOUSE 2929 toward the obsolescence of the present Pan­ away our treaty rights to protect the lifeline in command at Panama in 1916, but noth­ ama Canal and the early prospect of con­ of our national defense was in the pattern ing was done. gested traffic conditions due to the increase F. D. R. set when, without consulting them, Unofficial warnings of future needs were in numbers and size of ships transiting the he gave away the territories and liberties of recorded earlier by the author of this coun-. canal, initiated a broad study into the need Poland and China. cil paper. (See World's Work, October 1913, for modernization of existing facilities and And now, if Panama's desire for still fur­ and text of address before Latin American the possible need for additional or alterna­ ther concessions is not satisfied, pressure in Conference, Clark University, in Journal of tive facilities. In this connection the com­ behalf of Panama such as Alger Hiss in 1946 Race Development, vol. 4, No. 4, April 1914.) m itt ee secured the services of a group of the brought to· bear through the United Nations, He then advocated: foremost engineers in the United States to may take the form of demanding interna­ 1. Anticipating future needs and taking exam ine the situation and m ake recom­ tionalization of the Panama Canal. them, as permitted by the Hay-Bunau Varil­ mendat ions for future action, either by way Just as Communists have infiltrated inside la treaty of 1903 as convenient and neces­ of improvement of the existing canal, the and outside the Canal Zone, so have exag­ sary, a Canal Zone 50 to 60 miles wide. const ruction of a new one, or both. During gerated ideas of supernationalism taken 2. Including the terminal cities of Panama the past Congress these engineers, as ·a board hold in Panama. Since the United States and Colon to avoid the frictions which have of consultants to the committee, have exam­ created the Republic of Panama in 1903, a existed ever since. ined existing engineering data on the 30-odd generation of Panamanians has been schooled 3. Inducing the Republic of Panama to routes proposed at various times for a canal to believe in the fiction that their "founding establish its capital in the western highlands crossing at various places in the Central fathers" actually won the independence. of the Province. American isthmus. The board of consul­ Of course, Panama history books haven't 4. Returning the eastern end of the Prov­ tants has visited and inspected the present told Panamanian youth that only a handful ince to Colombia as a gesture sentimentally canal and familiarized themselves with the of conspirators, most of them employees of more effective · than the cash indemnity of construction and operating problems in­ the Panama Railroad, then owned by the $25 million which the United States finally volved. A preliminary report was submitted French Panama Canal Company, knew that paid to Colombia in 1922. to the committee after the adjournment of a revolution was planned. It was suggested that acquisition of terri­ the last Congress, covering recommended im­ A DELUDED GENERATION tory for future defense could not be regarded mediate improvements required to continue If there is to be straight thinking on the as aggression-unless delayed until a new the efficient operation of the canal, pending coming agitation for more concessions to the generation of Panamanians came to believe a complete study. Republic of Panama, some of the forgotten their sovereignty an inalienable right. They "During this session the board must make or half-told history should be recalled now. believe it now. further studies of the Panama Canal and of It will be needed to offset the screams of BUT APPEASEMENT HASN'T WORKED the canal route heretofore proposed through "aggression" and "infringement of sovereign­ the Republic of Nicaragua. It is anticipated Administrative friction, political agitation ty" which will be turned on again, as they and never-ending diplomatic discussions that their final report will be received some­ were in 1947 when rioting students ter­ time about the middle of this year. continued. On March 2, 1936, Franklin D. rorized the Panama Legislature to vote down Roosevelt approved the abrogation of prac­ "The importance of the work of this board an extension of U.S. leases on defense bases. cannot be overestimated since it has been tically everything in the 1903 treaty to Panama, formerly a province of Colombia, which the Panamanian politicians objected. predicted that the present canal will be un­ was created in name, and in name only, an able to handle the volume of traffic expected independent nation by acts of the United Senate opposition delayed our ratification by 1970. In view of the time required for States. Our responsibility was officially de­ of the 1936 treaty until July 1939. This engineering and construction work of the nied until the truth was uncovered. Then treaty gave Panama an entirely new status. magnitude involved here, it is essential that Theodore Roosevelt admitted "I took Panama Article I of the 1903 treaty was eliminated. the Congress be provided with workable ideas and let Congress debate." It read: "The United States guarantees and for future expansion in the earliest possible Concealed documents, uncovered in Pan­ will maintain the independence of the Re­ time." ama in 1909, disclosed that preliminary public of Panama." financing had been arranged in a New York The old treaty granted to the United [From Economic Council Papers, Sept. 1, bank and that American warships were to States "in perpetuity the use, occupation and 1953] be on both sides of the isthmus. American control" not only of the Canal Zone but also IT STARTED AT PANAMA-WHERE WILL IT Marines prevented the landing of Colombian of "any other lands and waters outside of STOP? troops. The total casualties of Panama's the zone which may be necessary and con­ soul-stirring war for independence were one venient for the construction, maintenance, (By Earl Harding, vice president, National operation, sanitation and protection of the Economic Council, New York, N.Y.) Chinese onlooker and one donkey. After the blow was struck, native politi­ said enterprise." The great American giveaway eeries did not cians were sent under U.S. Navy escort to And further, under the old treaty, Panama start with the Marshall plan in 1947, nor interior towns of the Province of Panama to granted to the United States "all the rights, with Yalta in 1945, nor with Teheran in 1943. notify them of then unexpected-and then power and authority within the zone • • • The first game of the series was played unwanted-independence. · Such was the and within the limits of all auxiliary lands with Panama in 1936, and the kickoff of status of the Republic of Panama-a creature and waters • • • which the United States another session with the same team i eched­ of the United States. would possess if it were the sovereign of the uled for the political stadium in Washington All through the 10 years of canal construc­ territory within which said lands and waters on September 10, when Panama's representa­ tion and intermittently ever since, adminis­ are located, to the exclusion of the exercise tives will begin negotiating for more con­ trative and defense problems have been by the Republic of Panama of any such ceesions. fraught with continual annoyance and need­ sovereign rights, power or authority." It was "in furtherance of the good-neighbor less expense. Time and again American au­ All that was abrogated in the following policy" that Quarterback Franklin Delano thorities have had to supervise Panamanian clause of the 1936 treaty, which is still in Roosevelt on March 2, 1936, dropkicked into elections and supersede or supplant Pana­ force: the arms of the Panama politicians our price­ manian police and sanitation administra­ "The United States of America hereby re­ less treaty rights to defense bases outside tions. Friction is inevitable in any vital spot nounces the grant made to it in perpetuity of our 10-mile-wide Panama Canal Zone. where there is dual or overlapping sov­ by the Republic of Panama of the use, oc­ That planned fumble cost American tax­ cupation and control of lands and waters, in payers much more than the million-plus dol­ ereignty. When earlier treaty negotiations were with addition to those now under the jurisdic­ lars in rental paid to the Panama Govern­ tion of the United States of America outside ment during World War II for permission to the mother country, Colombia refused to in­ clude the cities of Panama and Colon in the the zone • • • which may be necessary and plant our guns, build our roads, landing convenient for the construction, mainte­ fields, bomber bases, and nearly 40C build­ proposed Canal Zone. Both lie entirely with­ in the 10-mile-wide strip. Then, after T. R. nance, operation, sanitation, and protection ings on Panama's pasturelands and in her of the Panama Canal or of any auxiliary swamps and jungles adjacent to the Canal resorted to taking Panama, anything the United States proposed could have been ob­ canals or other works necessary and con­ Zone. venient for the construction, maintenance. WORSE THAN PROFLIGACY tained, but nd one in authority had the fore­ sight to include the terminal cities. The operation, sanitation, and protection of the It took endless negotiating to obtain the plan of the Panama conspirators was to said enterprise." permission-where we formerly had the right declare the independence of only the canal • Then, having abandoned our rights to de­ under the 1903 treaty which F. D. R. abro­ strip and the terminal cities, which were to fense bases outside the Canal Zone, the gated-to use Panamanian territory for de­ be brought under the protection of the United States agreed with Panama, in article fense purposes. Finally our Army was forced United States without reference to the rest n of the 1936 treaty, that "if, in the event to withdraw in 1948 and abandon buildings of the Province. of some now unforeseen contingency" land and improvements which had cost well over outside the Canal Zone should be needed, the another million dollars to create. FORESIGHT CAME LATER two Governments "will agree upon such The giveaway of money to Panama was in The need for a wide zone to include the measures as it may be necessary to take in the pattern of national profiigacy set by entire watershed of the canal was recognized order to insure the maintenance, sanitation. F. D. R. and not yet abandoned. But giving in a report to Congress by General Edwards, efficient operation and effectiv~ protection of 2930 CONGRESSIONAL RECORD- HOUSE February 25 the canal, in which the two countries are elements. Clamor against "yanqui aggres­ the United States should turn over control Jointly and vitally interested." sion" was popular even during the war, and of the Panama Canal to the U.N. and that The U.S: Government's right of eminent was intensified 1mmedia.tely after V-J Day. Britain should do likewise with Gibraltar domain in acquiring property within the On September 2, 1946, the Panama Assem­ and Suez. cities of Panama and Col6n which might be bly unanimously demanded that the Up.ited On December 9, 1947, Dr. Alfaro resigned needed for canal operation was renounced. States evacuate all defense sites immedi­ as Foreign Minister in protest against his Also eliminated was the right of the United ately. Government's agreeing to consider extending States to maintain public order in Panama On the same day it was announced in the leases on 13 bases, the most important if the Panamanian Government couldn't do Washington that 65 of the defense sites cov­ ones, which were then still occupied by us. so. ering more than 10,000 acres had been relin­ Following his lead, the Panama Assembly And the annuity of $250,000 paid by the quished, and that defense site rentals of on December 23, 1947, unanimously rejected United States for use of the canal strip was $975,587 had been paid up to June 30, 1945. lease extension. Anti-American mobs sur­ increased to $430,00Q-on account of the And on the following day Panama's Presi­ rounded the legislature vowing to lynch any Roosevelt devaluation of the dollar. dent Enrique Jimenez announced that occu­ member voting for the leases, and students The 1936 treaty made many other conces­ pation of future defense sites wouldn't even and teachers threatened to call a general sions to Panama. It restricted residence 1n be discussed until all had been returned. strike. the Canal Zone to American civilian and Thereupon U.S. Ambassador Frank T. Hines So the United States, in January 1948, m11itary personnel, established corridors left for Washington, and on September 12, abandoned the 13 defense sites and retreated within the zone for Panamanian conven­ 1946, a joint statement of the two Govern­ within its Canal Zone. It is understood that ience, and prohibited new private enterprises ments announced that defense-base problems future defense will be entirely from within in the Canal Zone. would be resolved by friendly negotiations. the zone limits. The effect of the 1936 treaty's ratification But agitation continued. President Jim­ How much farther the American giveaway in July 1939 was summarized in such head­ enez was quoted as demanding that the policy will be stretched to satisfy demands lines as "The United States in Panama P act United States revise its whole attitude to­ of the Panama politicians, commencing on Quits as Guardian, Becomes Neighbor-New ward his country and make the 1936 treaty September 10, remains to be seen. Panama's -Treaty Ends the Right of Intervention, Sub­ more effective in terms of benefits for negotiators are to be Ambassador Roberto stituting Bilateral Cooperation." Panama. M. Heurtematte, who is stationed in Wash­ WAR MULTIPLIES ANNOYANCES Panama has had four-or has it been ington; Dr. Octavia Fabrega, former Minister of Foreign Relations, and Carlos Sucre, for­ Acquisition of bases for defense of the five?-Presidents since 1948. The hope of the canal became imperative when war in Europe administration in Washington is that the mer Minister of Government. started in S eptember- 1939. Thereupon ad­ present President of Panama, Jose Antonio Will Panama try to follow today's ex­ Ininistrative annoyances multiplied. Com­ Remon, formerly its chief of police, may b~ ample at Suez? And when will American able to stay in office throughout his 4-year taxpayers stop the worldwide game of munist infiltration as well as Nazi influences American giveaway? in Panama came to the surface. term which started October 1, 1952. Also Labor union organizers flocked in from that solution of Panama's economic problems Mexico and from the United States. Most of through its people working harder and pro­ [From the Washington Evening Star, Sept. the Panamanian employees on the canal are ducing more food which our Canal Zone ad­ 13, 1956] now represented in collective bargaining ministration is wiling to buy, may at last bring a measure of stability to our little RED PLOT SEEN AGAINST UNITED STATES ON agreements with the CIO. Many of them PANAMA CANAL are children of West Indian laborers who neighbor. were imported to help build the canal and THE VOICE OF MOSCOW--THE HAND OF ALGER (By Orner Anderson) who have become Panamanian citizens. HISS BoNN, September 13.-International com­ Most of the skilled employees, citizens of the Whether the voice of Moscow, resounding munism has opened an agitation cam­ United States, have been unionized by the in the U.N., can stir up more discord in paign in Latin America against the Panama. A.F. ofL. Panama is still a point to be watched. Canal, coinciding with meetings on -inter­ Red unionism, under the Latin American In November 1946 the Soviet made a nationalization of the Suez Canal. leadership of Vicente Lombardo Toledano, of furious attack in the U.N. on the United The campaign is directed from Prague. It Mexico, has had its toehold in Panama since -States, charging that its defense bases around aims at stirring Latin American nationalism Lombardo and the late Phmp· Murray or· the the world are evidence of aggression. against control of the Panama Canal Zone. -CIO were photographed together for their Alger Hiss, then head of the Office of Politi­ Communist leaders feel that the Panama. joint promotion pamphlet "Labor's Good cal Affairs of the State Department, without Canal-in the present troubled international Neighbor Policy.'~ consulting or advising Spruille Braden, As­ situation-is a made-to-order Red propa­ U.S. Army and Navy and canal authorities sistant Secretary of State for La';in America, ganda target. were n·ecessarily- tightlipped about the an­ sent to the U.N. (largely Hiss' brainchild) a The campaign has these twin objectives: noyances attending their use of more than list of America's occupied territories and in­ 1. To put the United States on the defen­ 130 defense sites. - Obtaining access wasn't cluded in it Panama. sive in the Suez dispute. always painless, but responsible Panama offi­ That gave Panama a text. Ricardo J. 2. To use the Panama Canal issue as a. cials were generally cooperative. The big Alfaro, then Panama's Foreign Minister and vehicle to infuse fresh vigor into Latin question was "How much?" chairman of its U.N. delegation, in a speech American anti-U.S. feeling. A defense sites agreement was not finally before the Trusteeship Committee of U.N., TRAINED IN PRAGUE signed 1n Panama until May 18, 1942. It declared that Panama retains its sovereignty granted to the United States only "tem­ over the Canal Zone and that the State De­ Agitators have been dispatched, It is re­ porary use for defense purposes of the lands partment's report should be corrected. ported, from the so-called State College for referred to in the attached memorandum." Newspaper headlines gave the Assistant Political and Economic Science, the big Details were kept secret. Secretary of State for Latin AmericP, his first Communist oversea propaganda training The agreement stipulated that "The Re­ inkling that such a report had been issued. center in Prague. public of Panama retains its sovereignty Hiss could not be found that day to recall it. This institution specializes in agitation in over the areas" and that all buildings "shall Mr. Braden demanded a showdown, because the underdeveloped areas of the world. become the property of the Republic of he was responsible for negotiations in behalf The Communists reportedly hope to get Panama upon the terxnination of their use of our military authorities, who insisted that backing from the political foes of Pana­ by the United States." The bases were to be we still needed the bases in Panama. The manian President Ricardo Arias. Elsewhere evacuated 1 year after ratification of a de­ Hiss report strengthened opposition of the in Latin America, the campaign is being tied finitive treaty of peace-not just after a Panamanian politicians while Mr. Braden to local anti-United States and British cease-fire. was assuring the Pentagon of State Depart- issues. Some of the 130-odd defense sites were -ment support to get the bases under the Communist strength in Latin America, al­ small areas for observation towers, search­ terxns of the 1936 treaty. though not manifest recently, is strong. light or gun emplacements. Others were But Dean Acheson, then Acting Secretary There is close contact between international outlying uninhabited islands; some mere of State, backed up Hiss. communism's clearinghouse in Prague and broad pastures or cleared jungle made into "I was infuriated by the stupidity-which local Latin American Communist movements. landing fields. The total area amounted to I then thought it was-of putting Panama The Panama Canal is a durable whipping many thousands of acres. . • in the category of occupied territories," said boy of Communist agitation in Latin Amer­ Most of the land and water had little ica. - It is also a volcanic issue of Pana­ monetary value except in the minds of some Mr. Braden the day before this Council -Paper went to press. "But I did not realize manian politics-long dormant, then sud­ Panamanian politicians who emphasized its its full significance. as a ·play into Russian denly erupting. international importance and suggested hands until after Hiss' other activities were The Suez conference, according to reports rental as high as $1,600 per acre per year. exposed." from Prague, will be used by the Soviets as a. ANTI-AMERICAN CLAMOR Mr. Braden now recalls that immediately forum for a wide-ranging discussion of West­ But neither protection of the canal and :following the assist by :Wss a dispatch from ern imperialism. _ There is just enough simi­ their own country nor the gravy flowing into London · reported Parliament's being told by _larity between the Suez and Panama Canals their treasury silenced the anti-American its very left Labor member, Zilliacus, that to give the Soviets an opening. 1959 CONGRESSIONAL RECORD- HOUSE 2931 OLD COMMUNIST THEME status back 10 years by saying "Not 1 inch _was sold at 75 cents a yard up to the first The Panama Canal "grab" by President more of our land" and fostering the idea that week in December. As the Caja de Ahorros Theodore Roosevelt's administration in 1S01 the United States was the common enemy of started to pay out the Christmas savings, the is a treasured theme of Communist propa­ all Panamanians. It is true that we must price went up to $1.25 a yard. This is only ganda for Latin America. defend our country. But, on the other hand, one example. Russia also is reported planning to move to why make it hard for 300, just to keep 6 in a Do these merchants believe people are the fore certain other Latin American con­ favored position? .still spending their money without think­ troversies. These include Britain's owner­ What have we done in Rio Hato since the ing? It is true that we buy toys for our ship of British Honduras, disputed by Hon­ Americans were forced to abandon the air­ children, but why are the toys so expensive? duras, and of the Falkland Islands, disputed field there? Most of them are from Japan or Hong Kong, by Argentina. (a) We showed the world we were filled and we know the cost price of such merchan­ One of the minds behind the pending cam­ with patriotism. d ise. Is it just for the exploiting merchants paign is reported to be Jacobo Arbenz Guz­ (b) We went 10 years backward financially. to try to make a whole year's profit in 1 man, ousted as Guatemala's President by the (c) Thousands of Panamanian citizens month? Castilla Armae; coup in 1954. Arbenz fled were left jobless. They think that without our commissary with his family to Switzerland. (d) Housing problems for the poor in­ privileges we will be forced to buy from them He was brought to Prague last autumn, and creased since the U.S. Government aban­ at any price. If they were established here is said to be a principal adviser to interna­ doned all local-rate housing projects, thereby back in the thirties they will remember when tional communism of Central American enabling property owners to rent apartments men bought empty flour sacks to make affairs. in Caledonia and Guachapali for $50 or $60. trousers. We can surely go back to those (e) Servants can again be exploited for days. $15 a month to wash, cook, and clean the The real price control office in Panama is (From the Saturday Evening Post, Oct. 25, the competition offered by the zone's com­ 1958) house. During the war and before the Rio Hato base problem this was impossible. m issaries. So let us real Panamanians stop THE UNITED STATES OF AMERICA CANNOT Somehow we Panamanians managed to biting the hand that protects us. SURRENDER ITS RIGHTS IN THE PANAMA survive the 10-year step backward in our fi­ Let us spend money industrializing our CANAL nancial standing. As the years went by the own country, and let us attract foreign cap­ Agitation in the Republic of Panama over merchants found they did not have enough ital here. But let no one string us along the status of the Canal Zone features two cash for a new Cadillac every year, as their with talk of a common enemy, be it the claims: (1) "The canal is ours" and (2) profits were not exorbitant. S:::> they began United States or the national guard. Hitler Panama and the United States are equal thinking of how and who to cry to. Their used the common enemy gimmick to dis­ partners in the canal, and should therefore cries were heard because unfortunately, they tract the Germans' attention from what he split its gross revenues 50-50 while we are big taxpayers. They crowded the late was really up to. meet all expenses. President Remon, and talked him into using POOR, SENSIBLE PANAMANIAN. In this country, some voices, notably Mr. the wrong approach. James Warburg's, have been raised to suggest When Dr. Harmodio Arias wanted to change that we should internationalize the canal, to the treaty in 1936 he did not need any pub­ [From the New York Times, Jan. 10, 1959) set a good example to Colonel Nasser. lic demonstrations. He simply went ahead UNITED STATES WEIGHS STEP ON PANAMA Ac­ None of these proposals makes sense. and used his brains. I do not know Dr. Arias TION-EXTENSION OF THE TERRITORIAL There is no legitimate comparison between personally but I was old enough at that WATERS LIMIT TO 12 MILES STIRS SHIPPING the position of the American Government at time to know he was working to improve the CIRCLES Panama and that of the Suez Company in conditions of all Panamanians. During his PANAMA, REPUBLIC OF PANAMA, January 9.­ Egypt. As Congressman FLOOD, Democrat, administration he brought the country out lt is believed here that the United States may of Pennsylvania, has pointed out in several of chaos without too many loans. soon send to the Foreign Ministry of the Re­ speeches, the Canal Zone is "constitutionally It is a pity that he is old now, but Dr. public of Panama a note concerning the acquired territory of the United States." Gilberta Arias, his son, could and should do latter's recent extension of territorial waters While the British Government owned 43.75 us some good under his father's tutoring. from 3 miles to a total of 12 miles. percent of the Suez Company, and its admin­ Would Dr. Harmodio Arias have handled The geographic configuration of the isth­ istration was largely French, the company the 1955 treaty in the manner President mus 1s such that a rigid interpretation of was an Egyptian enterprise, operating on a Remon instructed him to? Heck, no. He the new law could box in both entrances of 100-year lease, when Nasser expropriated it. would have worked through letters and per­ the Panama Canal. This would require in­ Our treaty of 1903 with the Republic of sonal contacts with the U.S. Government. ternational shipping seeking transit to trav­ Panama gave us sovereign rights over a strip I am quite certain he would not have used erse 9 miles of Panama waters each portal of land 10 miles wide across the isthmus. the "Cita con la Patria" method. With none from high seas to reach the 3-mile limit off The stated purpose of the grant was that we of the noise and public demonstrations, Dr. Harmodio Arias could have obtained- Canal Zone shores specifically granted by might build, maintain, operate, and defend Panama to the United States in the basic an interoceanic canal, and the grant was ( a) Equal pay for equal work; and treaty of 1903. perpetual. (b) A much greater increase in the an• nuity than was obtained. It is understood that two other maritime We undertook to pay the Republic of nations, Japan and Britain, have already di· Panama $10 million in 1903, and an annuity These are the two issues of most direct benefit to the Panamanian pueblo. rected notes to Panama's Foreign Minister thereafter. The payments have been in­ Miguel J. Moreno, Jr., concerning the possibl~ creased several times, and now stand at I would like to say something about con­ traband. I know contrabanding is wrong, embarrassment to ships flying their flags. about $1,900,000. It is conceivable that this Merchant fleets of both countries rank high will be increased but the notion that Panama and should be punished. But did contra• band from the Canal Zone affect the exorbi­ in canal trans! ts. can rightfully claim a half share of the tolls The measure unanimously passed Decem­ 1s ridiculous. Yet it was put forward by the tant profits of the merchants of Panama during the war years? They were so busy ber 13 by the national assembly and signed Deputy Foreign Minister of Panama, who now December 15 by Pref!ident Ernesto de La occupies a professor's chair at the University counting their profits they had no time to cry about the commissaries, then. Guardia, Jr., provides that Panama's Presi­ of Panama, where he instructs students in dent will administer the law under certain the fancied rights for which they riot Who was benefited by the closing of the commissaries, and who was harmed? conditions. These are in accordance with periodically. the constitution, existing treaties, commit­ Charles Evans Hughes, Secretary of State The merchants, who thought that their sales would increase and profits with them, ments of the United Nations conference on 1n 1923, made this statement to the Minister rights of the sea held in Geneva in 1958, and from Panama when he raised the question were disappointed. Everyone was harmed, including the mer­ Panama's historic position regarding special of sovereignty in the Canal Zone: "It is an rights in the somewhat landlocked Gulf of absolute futility for the Panamanian Govern­ chants. The Canal Company was forced to lay off many of its staff, and those who stayed Panama. ment to expect any American administration, PRESIDENT MUST RULE no matter what it is, any President or any on working became more careful in their Secretary of State, ever to surrender any part spending. The law leaves implementation 1n the of those rights which the United States has The commissary will continue to make President's hands. He will determine the acquired under the treaty of 1903." profits simply because if sales fall employees boundaries of the new territorial waters. Considerations of international law and will be laid off to bring down expenses ac­ No regulations have as yet been set forth hemisphere security make the Hughes decla­ cordingly. on enforcement nor are the new boundaries ration of 1923 even more valid today. Let me give a small example of how the charted. merchants of Panama exploit the pueblo. The latter fact supports the hope among [From the Panama American, Dec. 21, 1958] They know that even the very poor try to envoys here of the world's maritime nations have a merry Christmas, and brighten up the that boundaries may yet be so delineated as PATRIOTISM, PROFITS, AND CONTRABAND home with such small things as new cur­ to leave assured access to the high seas to Sm: Panama's politicians, whose patriot­ tains. What did the merchants do this year canal portals since protection of Panama's ism extends no further than their own in­ to help these people have a merry Christmas? fishing rights is understood to have been. one terests, in 1946 helped set Panama's financial Not much. Curtain material such as damask of the major motivations behind the law. 2932 CONGRESSIONAL RECORD- HOUSE February 25 A preamble to th.e law as introduced on The note said pass8..ge cr.: the law "is re­ Panama shall, without the consent of the behalf of a group of deputies representing grettable in view of the recent action of the United States, affect any right of the United all political factions would have extended ·united Nations General Assembly in voting States under the present convention, or the territorial waters without prejudice to overwhelmingly to call an international con­ under any treaty, stipulation between the commitment in international treaties in force ference to consider the breadth of the ter;. two countries that now exists or may here­ for innocent passage of foreign ships which ritorial sea and fishery matters." after. exist touching the subject matter of use the Panama Canal international naviga­ The United States asked Panama to re­ this convention." tion lane. This disappeared from the consider its action. measure before passage. Officials said the Panamanian action "can­ U.S. officials and others were surprised by not affect the rights of the United States [From the Panama American, Jan. 12, 1959] Panama's enactment of the measure, which with respect to the Panama Canal," under MORE BRIDGE PLANS READY-FOURTH OF JULY had the backing of her delegation at the a 1903 agreement. The agreement provides DUE To BECOME FoUR-LANE BOULEVARD Geneva Conference. It was thought partici­ that Panama may not upset U.S. rights by Plans and epecifications are ready for dis­ pating nations would take no overt steps any means "without the consent of the tribution to prospective bidders on the con- extending the territory until another sea United States." struction oi the east approach to the new conference had been held. Balboa bridge across the canal. The bill on which Panama acted was [From the Panama American, Jan. 12, 1959] This is one of five major contract jobs of sparked by Deputy Aquilino Boyd, who re­ .the $20 million project. cently resigned as Ambassador to Mexico. PANAMA WILL REJECT FOREIGN PROTESTS ON Bids are to be opened February 11 at Bal­ He is considered an active candidate for the 12-MILE LIMIT boa Heights for this work which will include 1960 presidential elections. The Panama Government plans to reject the widening of Fourth of July Avenue into NEWSPAPERS COMMENT all protests over the extension of Panama's a four-lane boulevard. territorial waters limit from 3 to 12 miles, Other major features of the work will be Newspapers controlled by several of more it was learned today from informed sources. the construction of cuts and fills involving nationalist political factions have been These sources revealed that in addition to about 350,000 cubic yards of material; the publicizing the possibilities of the rights the official U.S. protest received by the Pan­ relocation or construction of various facili­ Panama allegedly gained by claiming waters ama Government last Friday, Japan has also ties; and construction of the embankment beyond the canal portals. One paper ob­ sent an official note signifying its intention upon which four roadways will be built later served that ships and crews entering might not to recognize the new territorial water to tie in with Fourth of July Avenue and be subject to Panama's immigration law. limit. the street system in Panama City. Another remarked that ships traversing the It was also understood that Great Britain It is estimated the east approach worlt will territory _most now fly the Panama flag. A and France also intend to make known their cost over $1 million, being far more exten­ third noted customs launches stationed at an official views in notes to the Panama Gov­ sive than the work required in building the offshore Pacific island within 12 miles could ernment. bridge approach on the west side of the stop canal-bound vessels and send inspectors According to the sources, Panama will re­ canal. abQard. ject all suggestions that the law extending A contract for the west approach at a cost The United States is understood to be territorial seas be reconsidered, as suggested of $385,000 was awarded last month to Louis basing its remarks to Panama partly on in the note from the U.S. State Department. Sommer. article XXIV of the 1903 treaty providing that In a formal note to Panama last week, the The contractor for the east approach work no change either in the government or the will have 440 days for completion of the job. laws of Panama shall, without U.S. consent, United States said the action was regrettable. Furthermore, the U.S. note said, there was This time limit wm cover two dry seasons affect any U.S. right under the convention which will be needed for the proper con­ or under any treaty stipulation then or later. no obligation on the part of other nations to recognize the 12-mile Pan-American limit. struction and compaction of the extensive Various other international commitments fills. ·are reportedly considered pertinent in the The note said: "EXCELLENCY: I have the honor to refer The bid forms, which were issued Friday issue. by the Engineering and Construction Bureau, NO TROUBLE LIKELY NOW to your note No. 1096 dated December 23, 1958, transmitting a copy of Republic of list 70 individual bid items. Shipping men whose vessels use the Panama law No. 58 of December 18, 1958, These include 212,500 cubic yards of road­ Panama Canal said they were not disturbed which has as it purpose extension of the way excavation; the handling of over 100,000 about any immediate prospect of trouble in territorial sea of the Republic of Panama cubic yards of rock or other borrow material; the new territorial waters of the Republic to a distance of 12 miles from the coast. installation of over 2 miles of drains and of Panama. "I have been instructed to state that the culverts; placing over 20,000 square yards of However, they noted that most of the U.S. Government considers this action of street and sidewalk paving; construction of nations were firmly opposed to a unilateral the Republic of Panama is regrettable in -retaining walls; replacements of various fa­ decision by any nation to extend its sovereign view of the recent action of the United Na­ cilities such as sewer and water lines, electric rights at sea. tions General Assembly in voting overwhelm­ cables, and the small buildings; and instal­ Technically, they said, '!;he law gives ingly to call an international conference to lation of 1,600 linear feet of fencing and 900 Panama the right to control shipping cross­ consider the breadth of the territorial sea feet of guard rail. ing the 9-mile stretch while approaching or and fishery matters. The embankment, over which the new leaving the canal, at either end. A country "It is the view of my Gcvernment, r. ex­ roadway will connect the street systems at with such a law might impose, for instance, pressed at the United Nations Law of the Sea the limits with the bridge, crosses the mud­ transit fees. They might apply regulations Conference and on previous occasions, that ·fiats between the Balboa tank farm and the calling for superfluous pilotage, for revenue no basis exists in international law for claims Gavilan residential area. purposes. They could control fishing in the to a territorial sea in excess of 3 nautical It will pass immediately south of the area. They might, if they so chose for what­ miles from the baseline which is normally houses in the Gavilan area. ever reason, close the waters. the low-water mark on the coast. Some sections of the embankment will be Unidentified official Washington sources "Furthermore, in the. U.S. view there is about 50 feet high with most of the fill ma­ have been quoted in connection with the no obligation on the part of states adhering terial being taken from the cut required in new Panama law as contending that the to the 3-mile rule to recognize claims on the Chorrillo Hill near the limits and from United States-Panama Treaty of 1903 would part of other states to a greater breadt'· of -Aibrook and Curundu borrow areas. . still guarantee free and unlimited access to territorial sea. The two approach roads to connect with the canal. Nevertheless, the mere presenctt "My Government hopes that the Govern­ Avenida de los Poetas in Panama City will be of the new territorial delineation is a source ment of Panama will find it possible to re­ built to the boundary line, approximately of anxiety, on principle. 500 feet from the end of that street. The extent of territorial waters is a major consider its .\ction and await the further international problem. Most nations recog­ consideration of the question of the breadth The bridge connections with Fourth of nize a 3-Inile limit. A world conference on of the territorial sea by the international July Avenue and Balboa Road at the limits sea law in Geneva last year attempted to community. In the meantime the Govern­ will be at the existing grade level. .;olve it. Another effort will be made in 1960, ment of the United States reserves all of its A new connecting link is to be built from under authorization voted by the General right in the area which is the sub;ect of Re­ Balboa Road to the bridge approach. This Assembly of the United Nations last month. public of Panama law No. 58 of December 18, will be a short, curving roadway to permit .1958." merging tra.flic from Fourth of July Avenue The State Department, in answer toques­ or Balboa to move onto the bridge approach. [From the Washington Sunday Star, Jan. 11, .tions, said the new Panamanian law cannot Because of ~ the variety and extent of the 1959] affect rights of the United States with respect work involved, the plans being issued contain PANAMA NOTIFIED UNITED STATES REJECTS ITS to the Panama Canal. no time schedules for the contractor other 12-M!LE LIMIT The Department pointed out that article than the 440:day time limit for completion. The State Department announced yester­ 24 of the Panl!-ma. Canal Convention of 1903 The contractor will, however, be required to day it has notified Panama the United States ·provides: subinit a general plan of operations ·and a refuses to recognize the new Panamanian law "No change etther in the Government or in time schedule .for approval before beginning providing for a 12-mile territorial sea limit. the laws and treaties of the Republic of the work. 1959 CONGRESSIONAL RECORD- HOUSE 2933 [From the Panama Star and Herald, Jan. 13, This is seen by observers to be a diversionary This was the result of a proposal by As­ 1959] tactic. semblyman Aquilino Boyd, who introduced REPRESENTATIVE FLOOD BRANDED REPUBLIC OJ' Real purpose of the legislation is to pro­ ·the territorial extension bill into the As­ PANAMA'S No. 1 ENEMY vide a big stick to wallop Uncle Sam into sembly, and his colleague, Alfredo Aleman, Representative DANIEL J. FLooD yesterday revising the treaty with Panama to get the Jr. was denounced in the Panama National As­ Panama Canal jurisdiction extended to 12 Some sources ~eclared that the Assembly sembly as Panama's No. 1 gratuitous enemy. miles seaward, local observers believe. will issue a "solemn oath" to u phold Pana­ The denunciation was made by Deputy BENEFITS CITED ma's rights in exercising its sovereignty with­ Alfredo Aleman, Jr., in connection with in the 12-mile territorial water limit. The record shows that Panama receives FLooD last week protested the extension FLOOD's remarks in Congress last week that major considerations with each treaty signed Panama's decision to extend its territorial and said it would convert the Canal Zone with the United States. The 1955 Reman­ into a maritime enclave-"another Berlin." seas to 12 miles means another Berlin in Eisenhower Treaty brought Panama about The U.S. Congressman ·recommended that the Canal Zone. $40 million in lands, buildings, and other Congress pass a resolution refusing to recog­ Both Aleman and Deputy Aquilino Boyd benefits. submitted a motion setting aside this after­ In Panama, it is seen likely that a treaty nize "the attempted stranglehold encircle­ noon's assembly debate for a reply to FLOOD. could be arranged granting the United States ment of the Canal Zone." The motion was carried. jurisdiction 12 miles from the entrances of Aleman said yesterday that FLOOD rises in the Panama, Canal. The only question is the [From the Panama Star and Herald, Jan. 14, Congress to criticize bitterly the position of price tag attached. 1959] Panamanians who defend their country's Panama quoted action by Egypt, the Soviet AsSEMBLY AFFIRMS REPUBLIC OF PANAMA rights stemming from relations with the Union, and Saudi Arabia, among others, as RIGHT TO 12-MILE SEA-VOTE AGAINST RE­ United States. He added that just as FLooD precedent for the local legislation. Egyptian CONSIDERING LAW UNANIMOUS-FORMER speaks unoffi~ially, he also would speak as nationalization of the Suez Canal touched FOREIGN MINISTER BOYD CALLS FOR N-A­ a representative of the people to protest off a flame for nationalization here which TIONAL SUPPORT OF DEMAND FOR HALF OF FLooD's as~ertions. has been kept ablaze by politicos (who admit PANAMA CANAL GROSS REVENUE The National Assembly last month ap;.. privately that it would be impracticable). proved overwhelmingly the extension of Pan­ Saudi Arabian participation in revenues The Panama National Assembly last night ama's territorial seas to 12 miles. The bill 'from oil exploitation there has been the voted unanimously not to reconsider-for was signed into law by President Ernesto 'model for ever-increasing Panama demands any reason whatever-the extension of Pan­ de la Guardia, Jr. on the United States for exploitation of ama's terri torial seas to 12 miles. Over the week end, the U.S. State Depart­ Panama's n atural resource, the strategic The reconsideration had been requested ment disclosed it had officially notified Pan­ location of the land granted for construction by the U.S. State Department last week in ama that the United States does not recog­ ·of the Panama Canal. a formal note to the Panamanian Foreign Office. A bill providing for the extension of nize the 12-mile sea limit. It asked Panama DEMANDS INCREASING to reconsider its action. Panama's territorial seas from 3 to 12 miles Official sources in Panama declined to com­ Panamanian demands on the United States was passed by the Assembly on December 18 .are not new, but they are increasing in size and was signed into law 2 days later by ment for publication on the State Depart­ and frequency. With a fine disregard for ment announcement, but indicated that President Ernesto de la Guardia, Jr. the facts, politicians here tell the people that In the course of the 4-hour debate that Panama will turn down the Washington re­ the United States has not lived up to its quest for reconsideration. It was under­ preceded approval of the resolution, former obligations; that it has mistreated Panama. Foreign Minister Aquilino Boyd, who is now stood that an official statement will be issued This has brought about a condition where this week on the matter. in the Assembly, called for national support anything which the United States may give of a demand for half the gross revenue of . to Panama in the form of technical assist­ the Panama Canal as Panama's fair share of [From the Christian Science Monitor, Jan. ance, direct grants of financial or other aid, the benefits from the waterway. 13, 1959] long-term loans, etc., is often not received Boyd said the United States-Panama part­ PANAMA EXTENDS CLAIM TO CANAL APPROACHES with gratitude and friendship, but as partial nership over the canal involves one partner WASHINGTON.-The Panama Canal may as­ payment on a debt long outstanding. who is too rich and one partner who 1s too sume the status of .a junior grade West Ber­ The new legislation was introduced by poor-and this must come to an end. lin issue, now that the Panama Government . presidential aspirant Aquilino Boyd, who The Assembly's full-dress debate on the has officially extended its territorial limits until May had been Foreign Minister in the -tenitorial seas question was provoked by 12 miles to sea. present administration. last week's remarks in Congress by Repre­ Under existing treaties, the United States sentative DANmL FLooD, Democrat, of Penn­ has rights only 3 miles · seaward from the [From the Panama American, Jan. 13, 1959] sylvania, who said that Panama's action had entrances to the great waterway. REPUBLIC OF PANAMA . HIGH SCHOOL STUDENTS created another Berlin by surrounding the Traffic through the Panama Canal might OK 12-Mn.E LIMIT Panama Canal entrances, under U.S. juris­ be harried if not demoralized if Panama diction, with· waters over which Panama should attempt to stop ships passing through Panama high school students were in claims sovereignty. The U.S. jurisdiction its territorial waters approaching the water­ agreement today that the Panama Foreign over the Panama Canal Zone extends 3 miles way for customs or maritime formalities. Office should energetically reject a recent note -out to sea. This possibility has been hinted at. from U.S. Secretary of State John Foster The Assembly's resolution castigated FLooD The principal difficulty to the American Dulles protesting the extension .of Panama's .as Panama's "Public Enemy No.1" and pre­ authorities at the Canal Zone woul"Arnulfo Arias, who ar­ foreign shipping, maritime lawyers said. abstention. rived yesterday from his Boquete coffee plan­ The United States, Japan, and France have Panama argued also that the old doctrine tation, has been invited to speak at the already sent protests to Panama about the of a 3-mile limit never had as foundation rally, but it is not certain that he will. extension of territorial waters from 3 to 12 any universal international treaty. It em­ miles, thus sealing off the Canal Zone from phasized that at present, of 71 countries with [From the Panama Sunday American, the open sea. seacoasts, only 18 still adhere to the 3-mile Jan.24,1959] (The protests are under consideration by limit. STUDENT LEADER BLASTS STATE DEPARTMENT a special committee of Panama's Council of Moreno's note quoted from a U.N. report on AND U.S. ARMY Foreign Relations. The committee is com­ the law of the sea by the Commission on posed of Drs. Harmodio Arias, Ricardo J. International Law which held tL.at interna­ The U.S. State Department and the De­ Alfaro, Octavia Fabrega and Carlos Sucre). tional law does not authorize the extension partment of the Army were branded as It seems that the fight over the use of of the territorial sea beyond 12 miles. It racketeers last night by student leader Carlos flags of convenience has opened a Pandora's was this report, Moreno recalled, that was Arellano Lennox to climax a sovereigrt y rally box. approved by the United States, France, and which got under way several hours late. The fight has turned into a real nightmare J apan, as well as Panama. The rally, organized by the Dos de Mayo for diplomats. The note to the United States added: Movement, a faction of the Panama Univer­ The battle started when traditional mari­ "With regard to the statement by Your sfty Students Union led by Arellano, had time nations such as Britain and Norway and Excellency that your government 'reserves been scheduled to get under way at 5 p.m., labor unions protested against the growing all its rights in the area covered by Law 58 with a parade from the Legislative Palace use of Panamanian, Honduran, Liberian, and of December -18, 1958' (which provides for along Central Avenue up to Santa Ana Plaza. Costa Rican flags. the 12-mile extension), my government, The parade was apparently called off owing The argument put forth was that ship deeming that the old area of 3 miles is not to the small number of demonstrators who operators were turning to these flags of con­ a matter of divergence between the two showed up. However, the organizers man­ venience to avoid paying taxes and meeting governments, must understand that 'reser­ aged to get a group estii!lated at about 150 other restrictions as to safety and crews' liv­ vation of rights' as referring solely to the to gather at Santa Ana Plaza more than, 2 ing conditions. area that has been extended, namely, the hours later to hear five of the seven sched­ In December, labor unions around the additional 9 miles to the old area of 3 miles. uled speakers. world tried to boycott ships flying these And, in that understanding, my government In addition to Arellano, the speakers were flags, but it was only partially successful. deems that this additional area of 9 miles Assemblyman Aquilino Boyd, Ramon Pereira, being not only under Panamanian sover­ Jose M. Quiros y Quiros and Julio Sosa Len­ Ship operators contended they had to tur~ eignty but also under the exclusive jurisdic­ nox. Two others, Dr. Diogenes Arosemena, to these flags of convenience to avoid strin­ tion of Panama, neither the United States of secretary general of the university, and for­ gent regulations and general redtape which America nor any other State may reserve any mer Ambassador to London Cesar Guillen, was forcing them out of business. right whatsoever over that area. My govern­ were not present. The countries involved fought the move to ment hopes that this unjustified 'reservation The crowd swelled to about 250 to 300 by boycott their vessels. Liberia and Panama of rights' shall not manifest itself through the time the meeting ended at 9: 15 p.m. were the most outspoken, charging the older facts or situations which Panama would Arellano also blamed Wall Street for the maritime nations with trying to force ship have to deem as violating its sovereignty or attitude of the United States toward the owners to use only certain flags. its territorial integrity, and therefore, inter­ recent extension of Panama's territorial There were some rumblings in the oil in­ national law and the charter of the United water limit to 12 miles, and asked: dustry, a major user of flags of necessity, Nations, and which would entitle Panama "Why didn't the United States protest that oil companies might boycott British to utilize the resources authorized by inter­ when strong countries like Peru extended and Norwegian ships in their operations. national law, including that of recourse to their territorial waters to 200 miles?" the proper organs of international justice." Arellano said it was because the extension [From the Panama Star and Herald, Jan. 22, The Foreign Minister's reply to the United did not affect the interests of Wall Street. 1959] States, France, and Japan followed recom­ The student leader, who is a science pro­ mendations made by the National Council fessor in a Catholic private school, argued · REPUBLIC OF PANAMA REJECTS PROTESTS ON 12- of Foreign Relations, an advisory body com­ that the United States claims rights in the MILE SEA posed of the nation's top international Gulf of Mexico and now wants to deny Pan­ The Panama Government yesterday offi­ jurists. The protest notes had been referred ama's right in Panama Bay. cially rejected protests by the United States, to the council for recommendations on the Re,ferring to U.S. Representative DANIEL J. France, and Japan against this country's ex­ reply. FLOOD, pemocrat, of Pennsylvania, Arellano tension of its territorial waters to 12 miles. The Foreign Ministry's official reply fol­ said he wished he was here to see if there In almost identical notes, Panama reminded lowed the emphatic stand by the National were any political demagogs among the all three nations that they had approved a Assembly earlier this month against revising speakers. United Nations report setting 12 miles as the the law providing for· the 12-mile seas "for He insisted that Panamanians are a demo­ limit-under international law-for terri­ any reason whatsoever." That stand was cratic people who are well aware of the dan­ torial waters. taken on a unanimous vote after the State gers of communism, adding: In the case of the U.S. protest, Panama Department in Washington disclosed it had "Although we are democrats we are not said there is no ground for heeding the sug­ protested to Panama and had requested disposed to die of hunger because Wall Street gestion that Panama reconsider its action. · that Panama revise its action. - -wills it so.'• The United States and France, which had A National University student group Is Following thts remark, Arellano thanked served notice that they reserved all their organizing a public rally Saturday afternoon his listeners and the meeting ended. 2936 CONGRESSIONAL RECORD- HOUSE February 25 [From the Panama American, Jan. 26, 1959) munition was discovered by the Panama _said, no matter how respected he may be 1s RICARDO ARIAS TERMS SEA LIMIT "JUST AND secret police yesterday morning in a house not the opinion of the United States. Ar'ias LEGAL" in Rio Abajo. So far, two men have been added that FLOOD was entitled to voice his arrested. opinion, just as much as Panamanians have Panama's Ambassador to Washington, ex­ · The arms were concealed in burlap bags a right to express their opinion. President Ricardo Arias who arrived here which had been hidden in the ceiling. early today is quoted as saying that Panama Most of the weapons were loaded, it was [From the Houston Chronicle, Feb. 4, 1959] is within her sovereign rights on the 12-mile reported. LATIN AMERICA-cANAL. OFFICIALS CONVENE territorial water limit. Th~ lot included four .30-caliber tripod "Panama's attitude on this issue is just machmeguns, three M-3 submachineguns of (By Marshall Bannell) and legal," he added. the type used by parachutists in World war BALBOA, C.Z.-The Board of Directors of the Arias said Panama has accepted the idea II,. and seven .45-caliber Thompson subma­ Panama Company, U.S. Governl!lent-owned of holding a conference next year to discuss chmeguns. In addition, searchers located 13 corporation which operates the Panama this touchy situation. .45- and .38-caliber pistols and revolvers, 13 Canal, flew from Washington and other Arias reportedly returned to Panama for a Springfield and three Winchester .30-caliber points to the Canal Zone this week and is series of political conferences. rifles. meeting in private sessions. He was greeted at the airport by a large One of the men under arrest, it was A major point on the agenda is believed to gathering of influential political and personal learned, is Armando Aguilar, who lives in be the problem posed by Panama's recent friends. House 25-34, Seventh Street, Rio Abajo, where extension of the Republic's territorial waters the arms find was made at 10 a.m. Aguilar to 12 miles off both the Caribbean and Pacific [From the Panama American, Jan. 27, 1959] was identified as a former minor employee of coast lines. Previously it claimed only to a PLOTS, GUNS IN ABUNDANCE-REPUBLIC OF the Immigration Department of the Panama limit of 3 miles. PANAMA COPS POUNCE IN RIO A.BAJO, CHmi- Foreign Office. The U.S. State Department protested and QUI, TOCUMEN ' Investigators were reported to hav~ found asked that the matter be reconsidered. Three men and a woman are being held to­ al_so a letter to Aguilar signed by a Costa Panama rejected the protest. day by the Panama secret police following R1can border official who is a former resident THEORETICAL RIGHTS the discovery of a $20,000 arms cache, includ­ of Panama. This immediately Etarted spec­ ulation that the arms were smuggled into Through its treaty with Panama, which ing several machineguns and 40,000 rounds gives, for all practical purposes, the United of ammunition, in a cottage in Rio Abajo. Panama by way of the border with Costa Rica. States title to the 10-mile wide, 50-mile-long One of the arrested men, Armando Aguilar, strip of land from ocean to ocean that makes who lived in the cottage, has reportedly con­ The arms were not new. They were wrapped in sheets of the New York Post of up the Canal Zone, the United States has off­ fessed that the weapons were to be used in a shore rights only to the 3-mile limit. plot to overthrow the government of Pres­ November 6, 1958, and other U.S. newspapers. Investigators declined to reveal the name Once a vessel passes this point it will be in ident Ernesto de la Guardia, Jr. Panamanian territory and theoretically Pan­ Meanwhile 16 persons were arrested in the of the second man under arrest. Some of the bags in which the weapons ama has the right to stop any vessel in its Cerro Pando region of Chiriqui, also charged waters. In fact, in speeches in the Pana­ with a subversive plot against the govern­ were concealed bore the penciled word "MAYO" (May). This was the month in 1958 manian National Assembly last week this ment. The 16 include Jose Gaitan Miranda, was proposed "to make sure all ships p~ssing who has been nicknamed the "Fidel Castro when bloody clashes occurred on the streets of Panama City between the National Guard through our waters are observing our laws." of Chiriqui" for his association with the arms To back up the new territorial claims, a cache found on the Los Cerritos farm of and students. The government said the clashes were inspired by the opposition. mass demonstration was held in downtown former deputy David Anguizola. Panama City and speakers endorsing the pro­ At the weekend 101 revolvers were found This is the second lot of arms uncovered by Panamanian authorities in less than a gram were wildly cheered. by customs inspectors at Tocumen airport. Aquilino Boyd, a member of the National Under arrest along with Aguilar in the Rio week. Over the weekend, officials found that a shipment which had arrived in Tocumen Assembly, stressed in his speech that Panama Abajo arms find is Ruben Rosas, manager still holds sovereign rights to the Canal Zone of the recently reopened El Rancho Garden, Airpo~t marked as wearing apparel, actually conta1ned brand new revolvers. Investigators and said Panama is entitled to half of its Aguilar's wife Margarita, and a Chinese resi­ annual gross income. He estimated this dent whose name has not been revealed. confiscated 101 of them. There were indications that the revolvers, would amount to about $50 million a year for Rosas was arrested at Tocumen today when Panama. At present Panama receives about to board a plane for Costa Rica. He is which were shipped out of Miami, were in transit to Colombia, consigned to one An­ slightly under $2 million a year from the believed to have been implicated by Aguilar, United States, plus many indirect benefits. who is also said to have implicated several tonio Arango. The shipment arrived at others. Tocumen last December. SCOFF AT PROPOSAL The cache found in the attic of the Aguilar Privately, U.S. officials term the proposal cottage at Seventh Street, Rio Abajo, includ­ [From the Panama Star and Herald, Jan. 27 as "ridiculous" and point out that last year ed 4 machineguns, 9 submachineguns, 16 1959] • the canal's net profit was under $4 million. rifles, 31 revolvers, and 40,000 rounds of am­ "DICKY" ARIAS SAYS LOGICAL HE SHOULD RuN­ Unquestionably, observers here agree the munition. THOUSANDS GREET PANAMA'S ENVOY TO 12-mile offshore territorial claims by' the The 16 persons, including both men and UNITED STATES ON HIS ARRIVAL HERE government have full public support in women, picked up in Cerro Pando, have only Panama. The proposal has been passed by one gun between them, a .22 rifle. Equipped Panama's Ambassador to the United the National Assembly and signed by Pres­ with knapsacks and campaign cots, they States, Ricardo Arias, said yesterday "it is ident Ernesto de la Guardia. claimed to have been searching for Indian only logical" that his name should be men­ The flaw in the claims, observers point out, huacas. tioned among the 1960 presidential candi­ is that Panama has no coast guard, navy or National Guardsmen confiscated their dates of the National Patriotic Coalition. patrol boats and is hardly in a position to equipment. Arias returned to Panama City for 2 weeks detain any vessel. However, it is reported Miranda is thought to have fled to the Chi­ of consultation with government officials. that Panama is negotiating with Norway for riqui hills at the time of the arms discovery The Coalition is the administration party. the purchase of several patrol boats. last October on the Anguizola farm. He was Arias said the party has many members arrested later, but freed later under an am­ who meet all . qualifications of honesty, capability, and service to the people for [From the Panama American, Feb. 17, 1959) nesty declared by de la Guardia. BEARDS' VISIT SHAVED?-REPUBLIC OF PANAMA The .38 caliber revolvers found at Tocu­ running for President. When he was asked if he would be a presidential candidate, Arias GROUPS ALLEGE FIDELISTAS UNDER GOVERN­ men were hidden in bundles of clothing, MENT WRAPS HERE shoes, and other merchandise were under­ replied the Coalition is a democratic party stood to be in transit from El Salvador to and it's only logical that his name should Student and labor groups complained Colombia, addressed to one Antonio Arango. be included among those party members who today that the Panama Foreign Office has Inspectors opened the packages after they are qualified to run for the country's highest ·arranged the program for delegation of remained unclaimed from December 14. Po­ office. Cuban revolutionary soldiers to keep them lice have found no trace of Arango. Arias served as Acting President from 1955 from mixing too freely with non-government The shipment originated in Miami. to 1958. . groups. Thousands of friends welcomed him at the The delegation of eight men and two [From the Panama Star and Herald, Jan. airport. The Ambassador returned with his women soldiers who participated in Fidel 27, 1959) wife, Mrs. Olga Arias. Castro's successful revolt to overthrow Dic­ Arias said there is no problem between the tator Fulgencio Batista arrived here this aft­ LARGE ARMS CACHE FOUND IN PANAMA CrrY­ United States and Panama over this coun­ ernoon as official guests of the Panama Gov­ MACHINEGUNS INCLUDED IN HAUL BY Po­ try's recent extension of its territorial seas ernment. LICE-30,000 ROUNDS OF AMMUNITION from 3 to 12 miles. The Ambassador said The groups complained that the official SEIZED; SPECULATION Is THAT SHIPMENT Representative DANIEL FLOOD, whose criticism program mapped out by the Foreign Office WAS SMUGGLED VIA COSTA RICA of Panama's action aroused resentment here, -took no cognizance of the activities planned A large arms cache which included 14 1s only 1 among 430 Members of the ·House beforehand by a number of private organiza­ machineguns and about 30,000 rounds of am- of Representatives. One man's opinion, he tions and civic groups. 1959 CONGRESSIONAL RECORD- HOUSE 2937 The official program includes a press con­ The Fidellstas solved the problem by divid­ The municipal junta began issuing sweep­ ference tonight at the Cuban Embassy here, ing themselves in two groups: Mendoza, Lt. ing ordinances, but there was no indication and Thursday a meeting with labor leaders, Rafael San Martin, and Pvt. Francisco L. how they would carry them out. followed by a mass meeting in the Olympic Viera staying with the reception committee The march on city hall was led by Ramon Stadium. and visiting President Ernesto de la Guardia, Pereira, a young radio commentator who One student leader argued that there is Jr., at the Presidencia, while the remainder had denounced the councilors at a rally a widespread desire to have the "barbudos" went with the crowd and drove through Tuesday night. Bleeding from a head (bearded ones) address the people of Panama Panama City in a 250-car motorcade. wound, he charged that Councilman Mario from Santa Ana Plaza today. The rest of the delegation includes Capt. Velasquez and five men invaded his radio Today•s program also included a tour Mario Hidalgo, Lt. Orlando Benitez, Lt. station yesterday afternoon, fired revolvers, through Panama ("ity about 4:30 p.m., start­ Violeta Casals (a TV star who joined the blackjacked him, and attacked his wife and ing at Via Espafia, up along Central Avenue, rebels), and Pvts. Ricardo Valladares and daughters. Radio listeners heard the sounds and returning via Avenue Band Justo Arose­ Cesar Fonseca. of the fight and gunfire. mena Avenue to Hotel El Panama. At the end of the motorcade, the group BROTHER ARRESTED Meanwhile, in Havana the Cuban Cabinet, were guests over a local radio station. with new Premier Castro presiding, voted In answer to another question, Mendoza A brother of Mr. Velasquez has been ar­ early today to slash its salaries 50 percent. said the new Cuban Government hoped to rested on a charge of assaulting Mr. Pereira, The decree reducing cabinet pay, one of solve the problem of the millions of dollars but the councilman is immune from arrest nine approved at an all night cabinet ses­ stolen from the Cuban treasury by those who while holding office. Marion Velasquez and sion, also ordered the suspension of all gov­ fled the country with the fall of Batista by 11 other councilmen issued a statement that ernment secret funds. devaluating all Cuban pesos now stashed they were not resigning. They were elected Other decrees approved at the meeting pro­ away in foreign banks. in 1956 for 4-year terms. vided for: A possible disturbance was averted by The municipal building was deserted when Establishment of a national institute for Mendoza's companions during the press con­ the crowd reached it, the working day hav­ saving and housing, replacing the traditional ference when a crowd of about 500 persons ing ended. The demonstration was orderly, lottery, which will regulate gambling in who had gathered outside the Embassy but many store owners, fearing violence, Havana's multi-million-dollar casinos. started clamoring for them to come out. shuttered their windows as the excitement A marltime promotion office to seek to build The press conference was interrupted built up. up the tourist trade. briefly when two of the rebels intervened in Most of the crowd went home before mid­ Civil service security for government work­ a brief clash between the national guards­ night, but the leaders said they would carry ers, who in future may be dismissed only for men who were guarding the half closed door on their campaign until their demands are "high convenience of the government," with to the Embassy and two student leaders. met. 3 months' severance pay. Top officials ap­ One of the bearded rebels and Miss Casals pointed by ousted ex-President Fulgencio mounted at the base of a pillar and asked [From the Panama Star and Herald, Feb. 19, Batista were exempted from the provisions the crowd to emulate the discipline which 1959] of this decree. had resulted in the victory of their cause by DEMONSTRATORS TAKE OVER CITY HALL HERE-­ Ratification of all acts committed by the dispersing and going to their homes. MOVE FOLLOWS ARMED ATTACK ON RADIO rebels during their 2 years in the Sierra The crowd paid some heed and by the MAN-COUNCILMAN BEATS UP COMMENTA­ Maestra and cancellation of all prison sen­ time the press conference was over late last TOR OvER CHARGES ON HANDLING OF CITY tences resulting from their acts. night only a handful remained outside to FUNDS; "JUNTA, SET UP Castro, who at 32 is the youngest man cheer the group as they went back to Hotel ever to hold the post of Premier, had said El Panama where they are staying as guests Thousands of demonstrators took over the earlier that he expects his new job to be of the Panama Government. city hall building in Panama City yesterday "the toughest test of my life." Meanwhile, UPI reports from Havana said in the aftermath to an armed attack upon Maj. Jesus Sosa Blanco, Cuba's twice-con­ a popular radio commentator who denounced mishandling of city funds. (From the Panama American, Feb. 18, 1959] victed war criminal No. 1 was executed early today by a firing squad to which he gave the The crowd, which at its peak numbered FlDELISTA BRANDS UNIFRUCO AS HUGE FOREIGN order for his own death. about 4,000 men and women, started a vigil MONOPOLY Sosa was shot at 2:16 a.m. in the dry moat in Cathedral Plaza, opposite city hall, at The spokesman of the Cuban rebel dele­ surrounding Havana's Cabafia fortress prison. 2 p.m. It was still on watch at m idnight and gation which arrived in Panama yesterday Reports from the scene said he faced the leaders said the vigil would be kept indefi­ singled out the United Fruit Co. as one of firing squad bravely. nitely. the huge foreign monopolies which naturally "I forgive you, and I hope you forgive me," The en masse removal of the 15 incumbent feel hurt over the fall of Dictator Fulgencio he said in a clear, steady voice, and a mo­ m embers of the municipal council was the Batista. ment later spoke his last word: avowed purpose of the demonstrators. Slickly fielding questions at a press con­ "Fire." A - revolutionary municipal junta an­ ference at the Cuban Embassy here last The regular commander of the firing nounced it was taking over municipal affairs, night: Cuban rebel Capt. Jorge E. Mendoza squad administered the coup de grace, firing pending the replacement of the present rejected the idea that there was a widespread a .45 caliber bullet into Sosa's head to make council membership. The junta is headed plot to discredit the revolutionary govern­ certain he was dead. by Guillermo Marquez Bricefio, a local at­ ment of Fidel Castro in Cuba. torney. Bricefio gained national prominence Mendoza emphasized that the rebel move­ FIVE THOUSAND SEIZE PANAMA'S CITY HALL­ as defense counsel in the trial of the de­ ment 1s not anti-Yankee, but he blamed a JUNTA SET UP IN Row.OVER USE OF FUNDs-­ fendants who were charged with the assassi­ press campaign against the rebels on those MEMBER OF COUNCIL ACCUSED OF ATTACK IN nation of President Jose A. Remon. The large foreign concerns which he said used RADIO STATION defendants were acquitted. to dispossess farmers from their lands at PANAMA, February 19.--several thousand The junta issued a series of sweeping wm with the aid of Batista officials. demonstrators seized city hall in the Pan­ ordinances, among them one suspending all This morning, Mendoza and the rest of amanian capital last night after the beating unfinished municipal contracts and another the delegation attended a wreath-laying of a radio commentator who had charged ordering the closing today of municipal of­ ceremony at the bust of the late President municipal funds were being mishandled. fices. Manuel Amador in Cathedral Plaza. The crowd-which swelled to 5,000-de­ The only concrete result of the demonstra­ They are scheduled to meet with student manded the ouster of the 15 city councilors tion was an official pledge that, pending a groups this afternoon at 5 p.m. and attend and set up a rump council to run munici­ decision on the ouster, none of the incum­ a dinner tonight as guests of the Panama pal affairs. bent councilmen will be allowed to enter the Lions Club. They kept control of the building until municipal headquarters. The pledge was Questioned about granting permission to President Ernesto de la Guardia, Jr., pledged first made by Attorney General Hermogenes the Cuban Communists to organize polit­ that the regular councilors would be barred de la Rosa and was confirmed later by Presi­ ically, the bearded, long-haired Mendoza said from their offices pending an investigation. dent Ernesto de la Guardia, Jr. last night: The President ordered the national guard The president also sent word that the "We decided it was better to know who to leave the demonstrators alone. national guard would not be ordered out to they are than to have them operating un­ interfere with the demonstration. He was derground." JUNTA TAKES CHARGE visited by a committee from the revolu­ The delegation of one woman and eight The self-described "Revolutionary Muni­ tionary municipal junta. The presidential men, including Catholic Chaplain Guillermo cipal Junta" announced it was taking over palace is 2 blocks from the city hall. Sardifias, arrived at Tocumen Airport about administration of municipal affairs until the The demonstrators rallied to the support 2 : 30 yesterday afternoon. present council was replaced. The group is of Ramon Pereira, a young radio station pro­ They were met by an official government headed by Guillermo Marquez Briceno, a prietor, who was attacked in his office in reception cominittee and a crowd of about lawyer who gained national prominence in Radio Mia shortly after 1 p.m. Pereira 2,000 persons who insisted that the rebel 1957 for successfully defending seven persons named among his attackers Councilman delegation turn its back on the official wel­ charged with the assassination of President Mario Velasquez, and the latter's brother, come. Jose Antonio Remon. Homero. 2938 ·coNGRESSIONAL RECORD- IIOUSE February 25 Pereira, his face smeared with blood from The councilmen also scored the attorney CHAIRMAN ELECTED a head injury, stood on the city hall balcony .general for his announcement that, pending By 1 a.m., 11 men from the list had an­ and told the crowd he was threatened at the solution of the issue of the removal of swered the call. A municipal judge swore gunpoint· and beaten with a blackjack. He the city fathers, none of them will be al­ them into office and they went into session punctuated his remarks with a blackjack lowed access to the city hall. They called the in city hall, electing Carlos Enrique· Adames, he said he wrested from one of the Velasquez order arbitrary. a lawyer, their chairman. brothers. The councilmen's statement was signed by The n ext move apparently was up to the Pereira's wife, who tried to defend her hus­ Jose Rogelio Arias, Jr., Carmen Arosemena, President. - band, also was dealt some blackjack blows. Luis Branca, Luis Del Rio, Ricardo Gaitan, Their daughter was threatened at gunpoint, Samuel Lewis Galindo, Rene Luciani, Juan Mr. De la Guardia had trouble on another Pereira -reported. M. Martinez, Hernando Martiz, Germinal front, too. The University of Panama can­ The attack appeared to have been moti­ S arasqueta, Eduardo Stagg, Jr., and Mario celed its annual commencement-scheduled vated by Pereira's s9athing denunciation of Velasquez. for tonight after student leaders warned Velasquez, among other councilmen, at a The last named councilman was the one they would not be responsible if the Presi­ public meeting Tuesday night at Santa Ana whom Pereira identified as one of his assail­ dent showed up to make the traditional pres­ Plaza protesting alleged mishandling of ants. Earlier Attorney General de la Rosa entation of diplomas. The university au­ municipal funds. had announced arrest orders were issued thorities replied that they could not accept Pereira said the assailants stormed into his against the assailants. Only Velasquez's impositions from within or without and office and fired shots. As the men fled after brother, Mario, was under arrest last night, called off the ceremony. beating him up, Pereira said he pulled out however. It was pointed out that council­ his own gun and fired at the assailants' car. men are immune from arrest while holding [From the New York Times, Feb. 21, 1959] Some of the scuffie in Radio Mia's office office. was heard over the station's microphones. Three councilmen did not sign the state­ STRIKE IN PANAMA CONDEMNS GRAFT-BUSI• Immediately after the attack, Pereira went ment. They are Manuel de J. Espinosa, Car­ NESS HALTED BY PROTEST ON CORRUPT,ION­ on the air to call his supporters to a march los Pretelt, and Mario de la Guardia. PRESIDENT INSISTS COUNCIL QUIT on the city hall. Pereira's station operates (By Paul P. Kennedy) a listeners' club, with about 1,000 dues­ [From the Washington Evening Star, PANAMA, February 20.-Retail and whole- . paying members. The dues-50 cents a Feb. 20, 1959] sale business came to a standstill here this month--entitle members to certain services. morning in a near-general strike in protest The demonstration, initially small in num­ CROWD INSTALLS OWN PANAMA CITY COUN­ CIL-OLD COUNCILMEN, BARRED FROM HALL, against the alleged corruption of the city bers, reached the city hall at 2 p.m. By that council. time municipal employees h ad quit work and REFUSE To RESIGN PANAMA, February 20.-An orderly crowd President Ernesto de la Guardia made a the building was empty. The crowd grew nationwide emergency broadcast in the midst rapidly in numbers. of thousands early today defied President Ernesto de la Guardia, Jr., and installed 11 of the shutdown of business, appealing for The demonstrators' mood was one of vio­ calm and demanding that the city council lence at the start. But Pereira's repeated new city councilmen for the Panamanian resign. capital. urging and pleading for order were heeded While the President was speaking, his and sticks which had been freely brandished, The crowd had seized control of city hall Wednesday after the blacl{jacking of a radio mother, Isabel Navarro de la Guardia, died quickly disappeared from view. The only of a heart attack in the Panama Hospital. poster visible among the crowd was a large commentator who accused the council of mif:' h andling city funds. The council refused She was visiting the President's father, who piece of cardboard inscribed: "For the rats has been ill in the hospital for some time. of the municipal council-the noose." A to resign and the President said he had no hangman's noose hung from the poster. By legal power to remove it since the council.:. COUNCIL REFUSES TO QUIT Pereira's order, the crowd was kept from men's elected 4-year terms do not end until President de la Guardia acknowledged that storming the city hall. He and other lead­ next year. he did not have the pow~r to make the coun­ ers, however, took over the council offices. The President had appealed for the people cil resign. He asked privately last night for As the demonstration built up, steel shut­ to wait until an investigation could be made the resignation of all council members, but ters and heavy wire screens went over the of the financial charges. It was not known they refused. The President said today that glass windows and entrances of stores along what he would do about the worsening situa­ he would be "attacking the very foundation Central Avenue. t ion, but early today he had not ordered of the republic" if he forced their resignation. The national guard, which performs police troops into action. The difficulty began Wednesday when a duties, quickly withdrew its personnel from STRIKE THREATENED councilman attacked Ramon Pereira, owner the streets, apparently to eliminate any pos­ of a radio station, with a blackjack, while sibility of incidents with the demonstrators, Leaders of the popular movement an­ nounced a general strike would be called in the councilman's brother held a pistol on During the time that the crowd was Panama City today if necessary to put the him. Senor Pereira's station had been at­ gathered in front of the city hall, it was new council in full control. tacking the city council for alleged corr't~p­ harangued by many speakers, including The march on the municipal building tion in construction contracts and payroll leaders of the student federation which Wednesday came after offi ce hours. All of­ padding. fought a bloody action on the streets with fices were deserted, and there was no violence. Following the attack, Senor Pereira ap­ the national guard in May 1958. Leaders of the demonstration constituted pealed on the radio for a mass meeting and Apparently in an effort to satisfy the themselves as a revolutionary municipal several thousand citizens responded. The crowd's clamor for sweeping away the coun­ junta and said they y.rould run the city until city hall was taken over by the citizens cil's present membership, leaders of the the council was replaced. emergency committee, which has held it movement-which was termed an open town Throughout yesterday the crowd around since. meeting-formed a citizens committee and city hall alternately diminished and grew, RrvAL COUNCIL FORMED named a new slate of councilmen. The ap­ but remained orderly. All municipal offices A new council was to be sworn in soon, pointed councilmen were for the most part except the courts stayed shut. A special headed by Carlos Enrique Adames, president the leaders of yesterday's movement. detail of demonstrators prevented access to of the National Bar Association. But a But nothing was said on how or when or the building. spokesman for President de la Guardia said by what authority the newly named council he could not recognize it as constitutional. members would take office. PRESIDENT CITES LAW The old council, after an all-afternoon The main legal obstacle to the immediate Mr. De la Guardia, meanwhile, told the meeting, agreed to ask a 90-day leave of removal of the councilmen seemed to be junta he had been unable to obtain the absence pending an investigation of the that, having been elected to office by popu­ resignations of the 12 council members from charges against it. Luis A. Branca, one of lar vote, there is no legal authority to oust his own Government Party. Nor was there the councilmen, said the action was not a them by executive action, as was demanded any capitulation by the other three council renunciation -of legal rights and that the last night. Most observers agreed that a members-two from opposition parties and new council could not be considered legal. judicial indictment on specific charges would an independent. The discontent is directed as much against be needed before any action could be taken The President said his legal staff unani­ the national administration as against the against one or more councilmen. mously had advised him he could not remove city couricil. The virtual certainty that Meanwhile, twelve of the incumbent coun­ the council legally by decree. Mr. De la Ricardo M. Arias Espinosa will succeed Senor cilmen, meeting at a private residence, issued Guardia insisted he would not go against de la Guardia in the Presidency has set off a statement last night saying they were de• the law. a wave of resentment. Senor Arias, who was termined to retain their posts. They called The crowd around city hall numbered President before Senor de la Guardia, is a the demonstration yesterday a grotesque about 5,000 at midnight, when the junta an­ member of the set that has ruled Panama comedy. They said there was no justifica­ nounced it had selected a panel of 25 citi­ since she won her independence from tion for arousing public passions over a per­ zens from which it :would choose a new Colombia. sonal incident. They declared they had council. Amid loud cheers, the list was read The strike was particularly harmful to never opposed the current investigation into over the radio, and loudspeaker cars helped business because Panama -depends largely on the handiing of -City funds. to spread the_word. tourist trade. 1959 CONGRESSIONAL .RECORD- HOUSE 2939 [From the Washington Evening Star, Feb. The tension eased when the citizens com­ pany pays whose concession seems modest, 21, 1959] mittee left city hall. Led by Guillermo almost insignificant, as compared with the PANAMA EASES AFTER CHANGE IN CITY COUNCIL Marquez Briceno, the crowd xnarched up­ enormously large canal concession. And, town to Santana Plaza, where loudspeakers fQllowing. this course, he might stop to look PANAMA, February 21.-The national gov­ were set up and a meeting took place. with axnazement at the series of injustices ernment ordered out armed troops today to THREE BANKERS ON •COUNCIL perpetrated by the United States against enforce its appointment of a new council Panama. · for this capital city, and appeared to have The new council includes three bankers, "We should presume that Mr. FLooD, as a the upper hand in a 4-day municipal revolt. a physician, the head of the National Nurs­ citizen and representative of the people, Troops in battle array surrounded the ing Association, two college professors, and would want his country to have the highest Cathedral Plaza opposite city hall and closed several merchants. possible advantages; and that, in the matter a radio station the revolutionary munici­ One of the bankers is Ruben Daria Carles, of foreign relations, he would want to see pal junta had been using to rally the pop­ Jr., general manager of the Chase Manhat­ those advantages crystallized in the existence ulace. tan Bank here and former minister of finance. of firm and cordial relations with the nations There was no violence and crowds, which He said the first he knew of being on the of this continent, especially with the Repub­ had numbered several thousand, dwindled council was when he read about it in the lic of Panama. And if that is so, the gentle­ to about 100 persons. morning newspapers. He characterized the man would then have to be told what history Leaders of the movement, who indicated new group as "caretaker council" to run the repeats with constant 1llustrations: that a last night they would defy the government, city until a permanent council is installed. Meanwhile, a citywide strike continued. befuddled, impassioned, blind, extremist, un­ decided to move out of the city hall. They relenting patriot may-even if his intentions had occupied it since Wednesday. All retail stores except grocery were closed are the best--do as much damage to his The government stepped into the crisis yesterday and remained so today. Banks country as the cynical or unworthy citizen early today by naming a new city council were closed yesterday because of the strike, who betrays it deliberately. Still recent after the old councilmen, whose removal was but remained closed today because of na­ tional mourning for the mother of President (fresh in our memories] is the case of Sena­ demanded by the junta, agreed to step aside. tor McCarthy who, for many thinking North The old council was accused by the junta Ernesto de la Guardia, Jr. She died yester­ day. Americans, was one of the reasons why the and Its supporters of mishandling munici­ United States could not be prepared in the pal funds. field of science at the proper time in order The government announced that a new (Translation] to meet the terrifying Soviet progress in the mayor and a new municipal treasurer also Ex-PRESIDENT OF PANAMA'S SOBER COMMENTS conquest of outer space. will be appointed. ON OPINION OF U.S. CONGRESSMAN-DR. "If Representative FLOOD really wanted The announcement was made by Govern­ HARMODIO ARIAS DEFENDS THE NEW LAW ON better and more cordial relations between ment Minister Max Heurtematte, who said TERRITORIAL WATERS Panama and the United States he would take the former councilmen were "separated" from their posts. There was no immediate PANAMA.-Harmodio Arias, ex-President of a closer look at the causes for the deteriora­ the Republic, director of Panama-America, tion of those relations; he would scrutinize explanation of that term, but earlier an the facts which speak for themselves and official source said the councilmen requested and one of the most prominent jurists of the a leave of absence. continent, commented in an editorial of his point to where the sources of trouble, resent­ Six members of the new city council were newEpaper on the views advanced by Rep­ ment, and protests of the Panamanians are among a panel which was chosen yester­ resentative FLooD in the following terms: lodged, and would try to do something about day by the junta to install its own council. "Once again, Mr. FLooD is firing his charges eliminating them. The government acted after a popular -against the Republic of Panama. This time "I wish he would see how, while a treaty demonstration against municipal maladmin­ his pretext is the measure by which the Na­ clearly gives Panama commercial benefits istration had paralyzed the capital with a tional Assembly has, as a just affirmation [privileges] in the market of the zone, that general strike. Businesses and public trans­ of sovereignty, extended the mileage of the same zone imports meat from Australia and port shut down tight yesterday afternoon. territorial waters to 12 miles. Mr. FLooD engages in all sorts of legerdemain in viola­ denounced this measure as part of a Com­ tion of the letter and the spirit of the treaty. munist plot designed to isolate or lock off "I wish he would see how the equality of [From the New York Times, Feb. 22, 1959] the Canal Zone, and the canal itself, and wages and job opportunities, agreed upon by TROOPS IN PANAMA BAR ANGRY CROWD--ACT to convert it, he said, into another Berlin. treaty over 20 years ago, suffers setbacks, pro­ IN RIOT THREAT NEAR CITY HALL-STRIKE And he adds, among [other] threats, that crastinations, and infringements to a point CONTINUES the President of the Republic would have where, irrespective of what had been agreed upon, this equality is operated, in essence, (By Paul P. Kennedy) vetoed the measure if he had not been pre­ vented from doing so by insuperable pres­ on the basis of local wages for Panamanians PANAMA, February 21.-The Panamanian sure from the radical groups dominant in and U.S. wages for North Americans, despite National Guard was brought out in force to­ Panama. the diffuse language of the rules and regula­ day to prevent threatened rioting near city "We do not deny the right of Mr. FLooD, tions which have been issued. And inequal­ hall. as Representative of the people, to freely ity of wages is translated, of course, into in­ Several truckloads of armed troops sealed express in the Congress of his country what­ equality of retirement or pension payments, off city hall plaza, where a new city .council ever views he may have. As we do riot deny which depend on those wages. had been sworn in last night by a Citizens the right of our Assembly to burst out, "I wish he would see how the [equality of] Emergency Committee. It attempted to when feeling justly hurt by Mr. FLooD's job opportunities [is] are being ridiculed by meet today. constant attacks against Panama, in strong way of rules and regulations which pad and The committee, which had held city hall criticism against him, even going so far as extend in a terrifying manner, far beyond since Thursday, was evicted by the National to call him Public Enemy No. 1 of our coun­ the agreements, the concept of security jobs, Guard. try. All these are natural phenomena in so as to reserve these exclusively for the Still another city council was sworn in democracies where there is freedom of speech North Americans. today. This one was selected hurriedly by and where it happens that, in the heat of "I wish he would see how in the Canal Provincial Governor Jose Cajar Escala. It passion, reason, logic, and serenity do not Zone the duty-free import of diamonds and became the third body to contend that it always exercise the moderating force which jewelry is continuing; and how, upon our was the legal council. they should. protests, a U.S. diplomatic officer has gone Charges of corruption against the original "But this is not, so far as we are con­ so far as to say-no doubt with inaudible council were the cause of unrest since cerned, the most important aspect of this sarca~ m. under his breath-that diamonds Thursday, and a near-general strike yester­ new incident created by Mr. FLooD. We deem contribute to maintaining soldier morale. day. Last night this council told the Gov­ it of greater importance to analyze very thor­ "I wish he would see how the moving of ernor that it would take a 90-day leave of oughly the stubborn attitude of the North the railroad station, the deadline for which absence while the charges against it were American Congressman, with a view to de­ has long since passed, continues to be investigated. riving conclusions, from such analysis, which stymied by artificial procrastinations and Several thousand persons gathered at two will prove constructive for the good relations controversies. points downtown this morning. At times it between the two countries. "I wish he would see how, notwithstand­ appeared that the crowd would attempt to "And if Mr. FLooD would care to change ing that the treaties state that both coun­ rush the troops. At one point, officers his course of action and address his im­ tries have 'a joint and vital interest' in the pointed their pistols at the crowd. petuousness to constructive action, I wish he canal, Panama is denied flying its flag, to­ The site of most tension was a block from would, first of all think over the unfair lack gether with the U.S. flag, in the zone, de­ city hall plaza. Soldiers on foot, backed of equilibrium existing between Panama and spite the reservation of Panama's sovereignty up by mounted troops, held back about the United States of America in the distri­ over the Canal Zone. 1,500 persons there. bution of profits resulting from the oper­ · "So as not to overdo it: I wish Mr. FLooD The crowd would surge to within a few ation of the canal; I wish he would ponder, would consider and act on these and other feet of the troops, then fall back. After for example, over the pitifully small annual important questions which have a funda­ considerable haranguing by speakers, the· allowance which Panama receives, which is mental effect on the now openly deteriorat­ crowd would move forward again. less than half of what a private banana com- ing relations between the two countries. He 2940 CONGRESSIONAL RECORD- HOUSE February 25 would thus do a constructive and positive miles away. Was that the reason they ment. That, of course, would be un­ piece of work-instead .of wasting time by may have taken this action? I am look­ hurling abuses against our country; instead thinkable. It shames us even to of continuing to use the boastful, ridiculous ing for a reason why they may have mention it. and absurd McCarthyist chant that there is taken this action.. · Interest charges have grown so large a Communist plot here [in Panama) domi­ Mr. FLOOD. The reason they did that they constitute today an immense n ating everything; instead of offending the this, in my opinion, is that there is no burden upon the taxpayers of our Na­ President of the Republic by stating that question of a pronounced infiltration of tion, simply to keep the debt current, deep in his heart he was harboring the un­ the Red Communist cause all through the and not to reduce it by any amount patriotic desire to veto the 12-mile bill, but Caribbean and Central and South Ameri­ whatsoever. As we struggle this year to th.J.t he would not dare to do so because he was afraid of radical and pro-Communist ca, and it is becoming progressively strike precarious balances with rising elements; and-which is even worse-instead worse. The pattern for this was raised costs, high taxes, and our national needs, of devoting himself to hurling open or veiled by Soviet Russia in unilaterally declar .. everybody should be able to think of a threats against our Republic, which, in our ing, in violation of all international prin­ thousand beneficial uses for this $9,800 world of today, don't scare . anybody any ciples, a 12-mile zone in the Baltic Sea, million annually which is going to pay more." regardless of the shore rights or the is­ the interest on this enormous national (Source: Diario de las Americas, J anuary land rights at the point of extension. debt. 22, 1959.) ';I'his i~ an example, and they are using Two weeks ago last Monday, I intro­ · Mr. BOW. Mr. Speaker, will the gen~ that as exhibit A. There is no question duced · a concurrent resolution · expres• tleman yield? of where it begins. There is no rhyme sing the sense of Congress that the na­ Mr. FLOOD. To my colleague upon or justification for this. It is a clear pat­ tional debt should be systematically re­ the Subcommittee on Appropriations tern of aggrandizement, and nothing tired and instructing the Recretary of the having jurisdiction over the Panama else. Treasury to include along with interest Canal and the Panama Canal Govern­ Mr. MUMMA. I thank the gentleman. payments in his budget submissions an ment, the gentleman from Ohio [Mr. Mr. FLOOD. Mr. Speaker, I ask unan­ annual amount sufficient to pay off not Bow J, I am happy to yield. imous consent to revise and extend my less than 1 percent of the total national Mr. BOW. Mr. Speaker, I am de­ remarks and include certain articles and debt now outstanding. lighted that the gentleman has seen fit newspaper editorials and reports. The response of many of my colleagues to yield at this time, for I must leave the The SPEAKER. Is there objection to has been greatly encouraging. After floor in a minute to attend a meeting of the request of the gentleman from consultation with the gentleman from the Committee on Appropriations. But Pennsylvania? Arkansas [Mr. MILLS], my colleague from I wanted to commend the gentleman for There was no objection. Texas [Mr. IKARD] and I have introduced bringing this important matter to the identical bills which would set up such attention of the House and of the coun­ payments in statutory law and would pro­ try. As to the statement that he has THE NATIONAL DEBT vide that no budget could be considered 'been declared public enemy No. 1 in The SPEAKER pro tempore. Under as balanced ir: the absence of such pay­ Panama, I think the people in Panama · previous order of the House, the gentle-­ ments. some day will find out that the action man from Texas [Mr. IKARD] is recog­ At the time of the original introduc!'" which he has taken and the position nized for 1 hour. tion I knew to my own complete satis­ which he takes will prove that he is the Mr. WRIGHT. Mr. Speaker, at the faction that this was the right course for best friend that Panama ever had in this request of ·the gentleman from Texas the Nation to follow. I believ: -~ that the Congress. [Mr. IKARD] I ask unanimous consent public would approve and accept such a If these things to which the gentleman that I be recognized in his place at this program. is referring should develop, then Panama time. PUBLIC REACTION would suffer irreparable damage. I sup- The SPEAKER pro tempore. Is there If I had at the time entertained any port the gentleman in his position on this objection to the request of the gentleman doubts or reservations as to this latter matter, to keep the Panama Canal free~ from Texas? assumption, any such misgivings would and under the treaty rights this country · There was no objection. have been fully dispelled by the extreme­ has entered into; we would keep the way Mr. WRIGHT. Mr. Speaker·, our na­ ly heartening public response which has clear to the canal at all times. The ex.,. tional debt stands today at $283 billion. greeted this proposal. tension of the limits would create a real In the new fiscal year we shall be paying In the past 2 weeks I have received hazard. $8,100,000,000 in interest. This means letters from citizens of 14 different If the gentleman from Pennsylvania that approximately 11 cents out of every States. These have contained spon­ will permit, may I at this time pay· a tax dollar goes to pay the interest on taneously written expressions inspired by tribute to a very fine Governor of the the public debt without reducing that the relatively small amount of news Panama Canal, Mr. Potter, who I believe debt by so much as 1 penny. coverage which the introduction of the has been doing an excellent job not only The trend toward higher interest indi­ resolution generated. Without a single in the maintenance of the canal but in cates clearly that the Government soon exception, each of the many letters I have the work with the people around the will be paying 3% percent on all its obli­ received on the subject during this time canal and in connection· with the proj- gations, or a total annual interest of $9.8 has consisted of an enthusiastic endorsal ects for the future. billion, assuming that the total debt re- of the suggestion. Mr. FLOOD. I am very grateful to my mains unchanged and is not raised again. - Quite- fully aware that responsible distinguished colleague from Ohio, be.; This means that if things go along ex­ government cannot be conducted by an cause no one is better versed on this actly as they have been going, without applause meter, I mention this unusually problem and the potential hazards than any more increases in the national debt enthusiastic public reaction because I the gentleman from Ohio. I appreciate and without still another jump in the think in this particular instance it is cru­ his very kind remarks with reference to interest rates, in 28 years we shall have cial. I mention it because I have the my position on this subject. Certainly I paid the total amount of the debt and distinct feeling that many of our col­ concur in his tribvte to the distinguished still owe every penny of it. leagues have long been convinced of the Governor, representing the United States Now, this is a tremendous burden for fundamental rightness of such a plan as in the Canal Zone. · the American people to assume in inter.:. this but have seriously wondered Mr. MUMMA. Mr. Speaker, will the est payments for which our Government whether the American people would be gentleman yield? gets nothing in return. It i_s the price prepared to assume the sacrifices and Mr. FLOOD. I yield to my neighbor we are paying simply for the privilege minor inconveniences necessary to make and colleague from the great State of of maintaining this huge debt. Of it a reality. Pennsylvania. course as long as we have the debt the - CHEAPER T.O PAY THAN TO OWE Mr. MUMMA. I want a little infor- carrying charges have to be paid. There Let me point out ~ Mr. Speaker, that mation. Where does this 3 miles start is no alternative unless we were to mimic if we can demonstrate the self-discipline now? As I remember, on the Pacific side the Soviet Government and . repudiate necessary to carry out such a program, there are a lot of islands off the main- our debts to those of otir citizens who it would enable us to reach the point in land. Some of them mc.y be over 3 or 5 have loaned their money to the Govern- 29 years a.t which we shall have reduced 1959 CONGRESSIONAL RECORD- HOUSE 2941 the debt to a level where we would be find it convenient or expedient when I was amused in reading a note in a paying no more in both principal and gaged in the crisis of the moment to lighter vein. A post Civil War Secre­ interest on the unpaid balance than we assign a top priority to debt retirement. tary of the Treasury had been operating are now paying upon the interest alone. Unless we have already crossed that under the 1862 act and some commen­ In 100 years we could completely re­ bridge and resolutely set our feet in the tator of that time, obviously no friend of tire the debt by paying $495 billion in path of regular annual payments, we the Secretary, said he, the Secretary, interest and $283 billion of principal, or shall never find a good time to pay off did not know what he was doing, prob­ a total of $778 billion. But if we pay the debt. To expect some vague future ably did not think it up himself, but, at nothing on the debt itself, the interest Utopia in which it will somehow be easy any rate, the country benefited by it. alone for 100 years will be $980 billion, to reduce this obligation suddenly and So we to some degree are in the iden­ and we will still owe the debt of $283 dramatically would be to live in a fool's tical position of the Secretary of Treas­ billion, or a total of $1.263 trillion. paradise. ury of that time. We did not first think These figures reveal amazingly that, Mr. IKARD. Mr. Speaker, will the of this, it is no-t original, but we do feel if we were to embark on this course and gentleman yield? it is something the whole country will follow it undeviatingly, paying only 1 Mr. WRIGHT. I yield with pleasure benefit by. percent of the debt every year, in the to my colleague from Texas who is a co­ Shortly after World War I, in 1919, hundred years' time required for the author and cosponsor of this legislation. we had a similar piece of legislation complete retirement of the debt under Mr. IKARD. I thank the gentleman which was restricted to the amortiza­ this minimum proposal we would pay a for yielding to me and wish to state that tion of the Liberty Loan Bonds issued total of $485 billion less in principal and I am happy to be asso-ciated with my very under that a.ct and subsequently was interest than we would pay if we simply able colleague from Texas in sponsoring made applicable to all the public debt. were to drift along as at present and this legislation. As has been pointed The operation of that 1919 act was pay interest alone on this total amount out, this would require a budgetary item suspended in the midthirties, but until of obligation for a hundred years, at the of 1 percent of the national debt as of that time something over $7 billion had end of which time we still would owe the date of the enactment of the bill been paid under it on retirement of the the entire obligation. which could be not less than $2 ,800 mil­ public debt. While $7 billion is not as No attempt has been made to disguise lion. It would be much the same ap­ much as the interest on the current the fact that such a program of debt re­ proach to the problem as that most of public debt, relatively speaking it was payment would in the first few years us face when we pay for the homes we a considerable sum of money in those necessitate some sacrifices. The repay­ purchase, in that we amortize the loan days, and, of course, to all of us today ment of debt almost always involves sac­ by paying a portion of principal along still is. r.ifices. The public is wholly conscious of with the interest. The point is that these things have this fact. With the wisdom born of per­ We need reflect only a moment, I accomplished their purpose. This sonal experience, the average American think, to know what would happen if would not be in any way a restriction knows that debt is seldom ever repaid each year we paid only the interest and or a matter that would retard the unless these sacrifices are frankly faced nothing on the principal, it would reach planning or operation of the executive and frankly assumed, and an orderly, the point where the principal would branch of the Government. The bills systematic plan of payments established never be paid off. One hundred years, H.R. 4587 and 4586, which are the bills and carried out with an undeviating as my distinguished colleague has point­ the gentleman from Texas, Mr. 'WRIGHT, regularity. ed out, is a long time. It is sumething and I introduced, would simply require In the long run it will be much less ex­ that we sometimes hate to think of. that in preparing the budget there be pensive to the Natior.. and to the econ­ But this is a large debt. I sometimes included in the budget a sum of money omy. In the long run it will result in a believe that we accomplish little by talk­ not less than 1 percent of the national directly measurable saving of some. $485 ing about who is responsible for it. The debt as of the date of the enactment of billion if we redeem this debt no more truth of the matter is that most of the the act, and that a budget could not be rapidly than at the minimum rate herein debt was accumulated during World considered balanced -unless such an stipulated. In the medium run it will War II, accumulated at a time when we amount were included. be Jess burdensome to pay the approxi­ were fighting to preserve our liberty and It would simply mean that if we were mately $2.8 billion of principal while still our system of government. It .was ac­ to have a balanced budget, our outgo p:1ying interest on the unpaid balance cumulated and built up at a time when must be at least $2.8 billion less than than it now is to pay the exorbitantly our great concern was our safety and our income, and if that is not the case, high amount of annual interest alone on freedom. then it could not be said under any cir­ this enormous continuing obligation. That time, thankfully to some degree, cumstances that our budget was bal­ But these are savings and benefits has passed, even though I would not anced. We feel that such an act as this which will inure largely to our children minimize in any way the current world would bring into public focus what real and our grandchildren. In the begin­ situation. deficit financing is and what it really ning it will be burdensome and it may The point is during these days, in our means to have fiscal responsibility. at times be difficult, although surely not judgment, we should make some sensible Without taking more time here, I unbearable. The public knows this. plan for the amortization of this great would simply like to repeat that we com­ The public knows that to balance the public debt. The method suggested is mend this to the study of all the Mem... budget annually and make payments of not one that is new, and certainly nei­ bers of the House. Certainly, the most some $2.8 billion on the national debt ther of us or anyone else in this House critical domestic problem facing us, even will require us to do one of two things. deserves any great credit for coming up though there are many, is this manage­ Either we must forego a few of the serv­ with some astounding new idea. ment of the public debt and the mainte­ ices to which we might otherwise aspire It goes back, in fact, as far as modern nance of our free economy, because I do and scale down the cost of government times are concerned, to the days of Sir not have to tell you, as many of you accordingly,-or we must raise the neces­ Robert Walpole in E'ngland. The Pitts know better than I, that if our economy sary revenues to make debt payments also used it during their tenure. It fails, if we are the victims of inflation, possible over and above the current cost was used down through the revolution­ or if for some reason our domestic econ­ of doing business. ary days when the various colonies used omy fails, then as a practical matter, if It be would presumptuous in the ex­ sinking funds and different plans not that should occur, it really would not treme for me to attempt to foresee the too dissimilar to this one. Before the make much difference how many mis­ situation 5 years or even 1 year from Civil War, in 1862, we had an act which siles we had or how large our armed now and to predict exactly what the Con­ the Congress passed providing for a services were. So, I am hopeful that gress in its wisdom might at that time similar plan. The war debts under the the House will give serious consideration dzem dispensable in the interest of debt then economic conditions became so to this proposal and that it may be en­ reduction. Yet I am certain that, unless critical that the operation of the 1862 acted into law and that the results may we positively resolve to do this thing, act was suspended until 1869. After that be most fruitful. face the issue once and for all and chart time· is became operative and was Mr. WRIGHT. I should like to com­ our course accordingly, we shall never successful. mend the gentleman from Texas [Mr. 2942 CONGRESSIONAL RECORD- HOUSE February 25 IKARD], and to thank him not only for terms set forth in the loan agreement pay almost $8 billion in interest on the these remarks but for his very able and made provision for interest payments on debt. . This item alone is more than the constructive cooperation with me in the the loan to be paid at regular intervals total peacetime expenditures of the Gov­ presentation of these bills . . but made no provision for repayment of ernment for all purposes in any year Mr. RHODES of Arizona. Mr. the actual loan. Do we need a financial prior to 1934. Speaker, will the gentleman yield? wizard to tell us that such a state of During the peak year of 1946, the Mr. WRIGHT. I yield to the gentle­ affairs could never exist in our well­ amount of interest paid on the debt con­ man from Arizona, who I know has been ordered private business world? I think stituted 3.5 percent of our total national interested deeply in this matter of debt not. income. retirement. Just such a situation as I have men­ The burden of heavy interest obliga­ Mr. RHODES of Arizona. Mr. Speak­ tioned does exist in the largest business tions is not the only feature we have er, I would like to state my interest in of them all-the business of government. to consider. The size of the debt and this particular matter. As a matter of The dilemma to which I refer is the its service reduced the action of the fact, I introduced a bill in the 84th Con­ existing public debt. The fault lies not Treasury and the Federal Reserve Sy­ gress, in the 85th Congress, and again in in the fact that we have created such a stem in their credit policy. The debt this Congress to accomplish substan­ Frankenstein-it lies in our continued enhances the danger to the country of tially the results which the two gentle­ failure to face up to our creation. wrong policies; it is one thing to make men from Texas have outlined. My bill, Many take the attitude that it is hope­ mistakes in handling a small debt, but H.R. 1337, 86th Congress, would make it less concerning the possibility of reduc­ far more serious and costly when the obligatory that there be a budgetary item ing the public debt. Therefore, the debt is a large one. each fiscal year of at least $2 billion for problem has been, to a great extent, I do not suggest for a moment that the retirement of the national debt. ignored. Certainly it has not been prop­ we sacrifice national security for fiscal This would be an amendment to the erly met. The time has come for solvency-on the contrary, if we do not Budget and Accounting Act of 1921. Of action-in fact, it is far past due. maintain an adequate national defense, course, as the gentleman from Texas To be sure, the debt was created in fiscal solvency has a hollow meaning. very ably pointed out, it is absolutely large measure by the great global wars However, the larger the debt and in­ necessary that we do reduce this na­ we have had to finance since the turn terest load currently, the less room there tional debt. In my opinion, any budget of the century. The Korean con:fiict, will be for the Government to finance · which does not have some payment on periods of internal crisis, and our efforts readily and soundly some future emer­ the national debt is not truly balanced, to achieve global supremacy in th space gency. any more than my personal budget would age have added no small amount to the There is no reason why national de­ be balanced if I chose to ignore the prin­ total. And the end is not in sight. But fense and fiscal solvency cannot go cipal of my debt and paid only the in­ we must conceive of some method of hand in hand. The plan we are dis­ terest each month. To me it is abso­ debt retirement. The pending proposal cussing would help to achieve fiscal lutely essential, not only for fiscal sound­ would provide an orderly, systematic stability, while at the same time it ness but also for the morale, morals, and plan for reducing the debt, which is would provide adequately where our de­ welfare of the future generations of our desirable in view of the constant temp­ fense needs are concerned. If we choose, people that we make a start, even tation of Government to find new ways by proper planning, we can accomplish though, as the gentleman says, it may be of spending and to put off debt payments both. Another strong reason that should a modest start, on the payment of this until some more "convenient" time in impel us to give favorable consideration huge national debt. I thank the gentle­ the future. History shows us that it is to this legislation is that money paid out man for yielding. quite impossible to predict what will in debt retirement could well serve as a Mr. WRIGHT. I thanl{ the gentle­ happen tomorrow. Such a "convenient'' stimulus to business. Of the amounts man from Arizona for his well-reasoned time m ay never materialize. paid to individuals and financial insti­ remarks. Permit me to call attention to certain tutions, a limited sum may be held in Mr. ROGERS of Florida. Mr. Speak­ facets of the debt which might be of idle balance, but the bulk of the money er, will the gentleman yield? historical interest. will be reinvested, thus helping to shore Mr. WRIGHT. I yield to the distin­ In 1790, the debt could have been up a :flagging economy in times of guished gentleman from Florida. wiped out had each living inhabitant recession. Mr. ROGERS of Florida. Mr. Speak­ of the United States paid in $19 to the On the whole, there is substantial er, I want to commend the gentleman National Treasury. After the end of the merit in a program of gradual retire­ from Texas [Mr. WRIGHT], and the gen­ War of 1812, each person would have ment of the Federal debt. The advan­ tleman from Texas [Mr. IKARD], for pre­ had to pay in $15. Just after the Civil tages to be realized are: ::irst, that ~t senting this proposal, and I am privi­ War, the figure rose to $78; after World results in a saving in governmental ex­ leged to join in trying to start a plan War I, to $240. In 1946, to extinguish penditures for interest; second, that it to bring about a reduction of our na­ the debt, each one of us-man, woman, strengthens the credit of the Govern­ tional debt on a logical basis. and child would have had to pay about ment so that it can better meet an Mr. Speaker, in supporting this legis­ $2,000 to the Government over and above emergency; third, that in time of in:fia­ lation for the gradual payment of our the amounts collected each year to keep tion, it may serve as a tool to cope with national debt, it was interesting to make the Government running. excessive spending. a study of this problem, and I would In the 27 years immediately following We cannot afford to ignore these ad­ commend the thoughts that have been the Civil War, two-thirds of the Federal vantages. We cannot afford to ignore set forth on this subject in the follow­ debt outstanding was repaid. the ever-increasing pleas for fiscal sta­ ing publications for those who are in­ Over a period of 11 years after World bility. We must remember that through­ terested: "National Debt and the New War I, the Federal Government reduced out our history the greatest obstacles to Economics," by Seymour E. Harris; more than one-third of the amount out­ national financial strength, and the most "Government Finance," by John F. standing. acute dangers to fiscal collapse, have Due-revised; "Government Financing,'' By 1949, almost $18 billion of the never been the results of inadequate or by Harold M. Groves-fourth edition; World War ll debt had been redeemed. failing resources, but always conse­ and "The National Debt Series," by the Surely, history shows us that it is in quences of weak financial policies. This Committee on Public Debt Policy. the American tradition to repay debts. proposal is one step on the way back Having listened with much interest to The payment of the principal of a debt to fiscal and political responsibility. this discussion today, I cannot help but tends neither to impoverish a nation, The Congress of the United States, in compare our present approach to the nor to retard its material development; good conscience, should not let it pass existing public debt with a situation that but on the other hand, the maintenance unheeded. could not possibly exist in private enter­ of the principal and the constant pay­ Mr. WRIGHT. I am grateful to my prise. ment of accruing interest tend to cripple colleague from Florida for his extremely Suppose that you or I, or any person the productive capacity of any people. timely remarks and for his service in in this Chamber, went to a bank to The President has told us that in the this Chamber, which all of us have noted borrow $10,000. Suppose also that the · current fiscal year the Government will with much approbation. 1959 CONGRESSIONAL RECORD- HOUSE 2943 Mr. BYRNES of Wisconsin. Mr. The American people do not have to posed for 1960. We should plug existing Speaker, will the gentleman yield? be pandered to and spoon fed. They are tax loopholes and enact :1ev taxes which Mr. WRIGHT. I yield to the gentle­ above that. They will applaud the lead­ are just and proper. Then we can go on man from Wisconsin. ership of this Congress if we call upon to the second step not only of paying the Mr. BYRNES of Wisconsin. I assume them for the honest sacrifices necessary interest on the national debt but also the gentleman's basic objective is to to meet our honest obligations. They 1 percent or whatever the percentage actually get a reduction in the amount will be disappointed in us if we fail. may be on the principal of national in­ of our debt. It is not just limited to To fail or refuse on the grounds that debtedness. some bookkeeping transaction of in­ they cannot bear to look these facts in I believe it is short changing America cluding it as an item of the budget? the eye would be to sell the American to say that we have to always cut down Mr. WRIGHT. Most assuredly it is public short. This Nation has pro':ed and to reduce our Federal expenditures. not. The only objective would be tore­ in times of crises that it responds with This is a dynamic and a growing country. duce the debt. enduring magnificence when called to We should never get lavish. We should Mr. BYRNES of Wisconsin. I would greatness not when called to comfort. never go beyond that which is for the suggest to the gentleman that he cer­ Mr. COAD. Mr. Speaker, will the fundamental needs and welfare of the tainly realizes that debt is the result of gentleman yield? American people, but ":Ve ought to have spending beyond the revenue. I have Mr. 'WRIGHT. I yield to my colleague fiscal responsibility not only in paying not heard the gentleman discuss what his from Iowa. off our indebtedness but it is necessary proposal is to get this spending program Mr. COAD. Mr. Speaker, I wish to ex­ to meet and to match the times and down to a point below the revenues tend my congratulations and to associate needs of our people with programs for which we can anticipate, nor have I myself with the gentleman from Texas the general basic good. heard him suggest that we ought to take [Mr. WRIGHT] and also the gentleman Mr. Speaker, finally I wish to further the other alternative of increasing the from Texas [Mr. IK A.RDJ for I, too, have commend the gentleman from Texas. revenue so that it would exceed the item initiated action both by resolution and I think here he is leading in a gallant of expense. I would hope that the gen­ I will do so by a bill in the same manner cause, a cause which is not the exclusive tleman and those who have spoken on his as has been indicated here today. Cer­ domain of any one political party, and side today would join with those of us t ainly, I think that the r~p a yment of I am glad that there are those on both who are concerned with a balanced the public debt is a very VItal problem sides of the aisle joining in this effort. budget and attaining the objective of currently facing the American people. Mr. WRIGHT. I thank the gentleman, living within our income. That is some­ It is a problem in American politics. both for his valuable contribution to this thing I think we must direct our atten­ It is a problem in American Government discussion and for his cosponsorship of tion to in the first instance. I would and, by its direct effect, it is a problem this legislation with us. I yield to the hope that the gentleman during this ses­ of every American citizen. The repay­ gentleman from Florida [Mr. BENNETT]. sion with his votes on the various pro­ ment of the debt at the rate of 1 percent Mr. BENNETT of Florida. Mr. Speak­ posals that will come before us will joi_n per year is a way whereby we can get at er, I commend the gentleman from Tex­ us in attempting to keep the expendi­ fiscal responsibility immediately. I am as on his splendid fight to reduce our tures down to within the terms of the sure that not all of the fiscal problems national debt, which hangs like a mill­ present revenues anticipated. of the Federal Government will be solved stone around the American taxpayer's Mr . WRIGHT. I thank the gentleman by this action which is proposed, but at neck. The gentleman deserves great least these are steps in the right direc­ credit for the ingenuity of his plan for for his cogent contribution. tion. There is no one individual who In all frankness and in all sincerity, I systematic debt reduction. As the gen­ would ever, in his personal business, be­ tleman has pointed out, during our life­ think it must be acknowledged that in lieve that he could go on and on, even order to pay amounts of this magnitude time we would see the day when the past the duration of his own ~ifetime totai payment on both interest and prin­ on the retirement of the national debt without paying any more than mterest the American people are going to have to cipal would only be as great as the on whatever his obligations may be. We amount we now pay in interest alone. face the necessity that it will require, must look at this matter of fiscal re­ as I said earlier, sacrifices in the early During our children's lifetime, the total sponsibility. We need certainly to have annual principal and interest payments years of the program until we can reduce a reduction of our indebtedness. We the principal to a point at which both would be much less than present annual need then also to go to the second step, interest payments, and during the life­ · principal and interest payments will be in line with our Federal expenditures, to less than mere interest payments are time of our grandchildren the national have some program and some goal in debt would be paid off completely. today. mind by which we would not merely be Either we must curtail the expendi­ paying off our indebtedness with bor­ Why should we care whether the na­ tures required by things to which we rowed dollars. I, for one, and I believe tional debt is $280 billion, half that, or otherwise might aspire in the way of there are others, am in favor of keeping t wice that? There are several reasons Government services, or we must find the Congress in session each year until why we should care. First, we all fer­ some means of raising additional reve­ such time as we have balanced the bud­ vently desire that taxes be reduced, be­ nues-or conceivably in certain future get with income, and with firm income cause we would justifiably like to have years we must place debt retirement ~t a and not with borrowed dollars. What­ the money to spend on our own personal premium above immediate tax reduction. ever the expenditures are, they ought to needs. I think the American public is fully be paid out of the income of the Treas­ As the gentleman from Texas has aware of that, and in this instance I am ury of the United States. Anything less pointed out, 11 cents of every dollar an convinced that, unless I am badly mis­ than that is merely an indebtedness American pays in taxes goes for interest taken, the American public is ahead of bookkeeping tra.nsaction. I believe we on the national debt. The only way to the politicians. I do not think they de­ must have a balanced budget, which is reduce this outgo is to reduce the na­ sire to continue in this present path balanced in reality. I think it ought to tional debt. In addition, the larger the indefinitely of building up and maintain­ include a payment on our indebtedness. national debt, the more vulnerable our ing an ever higher debt. Let us look at the proposed 1960 budget. economy is to inflation. The Govern­ The American public does not expect Here is a ready example. It ought to ment, along with every other ec_onomic to continue in this path indefinitely. Our be more than merely a bookkeeping rna t­ entity, must pay more for what It. buys. people do not wish to mortgage their ter of saying, "It will be a balanced bud­ This inevitably results in further tax children's future in such an irresponsible get-if there are certain taxes that are increases. manner. They would prefer to exercise raised"· the taxes which the President . Second. we should care about the na­ the self-discipline required to begin now reque s~ are taxes that are almost im­ tional debt because America's financial these payments which ultimately will possible to enact. The public does not strength in this era of costly warfare is free us of the burden of deadweight in want more gasoline tax and higher post­ an element in its military strength. Dur­ interest charges which today are exact­ age rates on first-class letters. This is ing World War II,-the financial strength ing tribute to the tune of 11 percent of t he proposition -which we have before of our country made it possible for it our entire national budget. us for the budget that has been pro- to marshal resources of neutral nations ·2944 CONGRESSIONAL RECORD- HOUSE February 25 and of nations which were only nomi­ Mr. WRIGHT. I thank the gentleman some $16 billion at one time. I should nally on our side. A lower national debt for his remarks. I would not quarrel like to point out further that _this Con­ would make our country stronger to with him over accelerating the rate of gress, far from· exceeding the overall meet any such national emergency which repayment which he proposes. It is a spending requests of the Chief Executive might arise in the future. matter of hope to me that we might reach in the past 6 years, has, in effect, reduced Third. We should care about the size some figure that this House and the those requests by a rather substantial of the national debt from the standpoint other body could agree upon and chart amount. This I point out, not as a of social justice. A large national debt a path that might be followed, and then partisan accomplishment, but, rather, as leads to inflation. Inflation enriches follow it with undeviating regularity. I the accomplishment of a Congress com­ those who are more skillful in financial would not shy from the 2 percent figure posed of dedicated and sincere people matters and who are generally the nor from the 5 percent figure proposed on both sides of the aisle, Democrats and wealthiest at the expense of those who by the gentleman from Iowa, but I would Republicans alike. are less adept in such matters and who like to suggest that the figure proposed Mr. BYRNES of Wisconsin. Mr. are usually the poorest. It works a hard­ by the gentleman from Texas [Mr. Speaker, will the gentleman yield at that ship upon those who invest to care for IKARD] and by me is one which we as­ point? their old age. It brings about many sumed would be most likely of acceptance Mr. WRIGHT. I yield to my col­ types of economic maladjustments and by Members of this body and the other league. social injustices. body. One hundred years in the life Mr. BYRNES of Wisconsin. It is only So, I say to the gentleman from Texas, of a nation probably is not too long. because I want to keep it out of the par­ "More power to you," and I offer my full Assuredly, though, it is too long to wait tisan area that I am not going to com­ assistance on the fine work he is doing to start repaying our obligations. ment on the statement that the gentle­ in this field. Mr. BYRNES of Wisconsin. Mr. man made with respect to budgets that Mr. PELLY. Mr. Speaker, will the Speaker, will the gentleman yield? have been submitted by the President in gentleman yield? Mr. WRIGHT. I yield to the gentle­ the last 6 years; but I think the gentle­ Mr. WRIGHT. I yield to the gentle­ man. man will admit that that is an item in man from Washington. Mr. BYRNES of Wisconsin. I would controversy between the membership on Mr. PELLY. I had the pleasure of be­ like to return to the matter that we were his side of the aisle and the membership ing on the floor at the time the gentle­ speaking about before. The really im­ on my side of the aisle. man first announced he was introducing portant question of what Congress does Mr. PATMAN. Mr. Speaker, will the this legislation. Subsequently I read his in the matter of voting bigger expendi­ gentleman yield briefly? remarks in the RECORD and I subscribe to tures and bigger authorizations? I Mr. WRIGHT. I yield to the gentle­ his sentiments, and I fully support the would hope that the gentleman might man. objectives of the gentleman and his in­ save some of his speech for use in the Mr. PATMAN. I am in accord with terest in this matter. next couple of weeks when we will have the gentleman's views. I certainly think Last Sunday on "Meet the Press" I a housing bill that goes beyond the we have waited too long to have a listened to a very well known economist recommendation of the President by over planned program to reduce the national state that the United States should off­ a billion dollars and further unbalances debt. I think the national debt is in set the loss of purchasing power in Gov­ the budget. competition with progress in our coun­ ernment bonds by increasing their inter­ We will also have an airport bill that try. est rate. I thought at this point that I ask unanimous consent, Mr. Speaker, goes beyond the expenditures recom­ to revise and extend my remarks at the such planned inflation would be ex­ mended in the President's budget. It pensive. Increasing the interest rate to goes beyond it to the extent of several end of the remarks of the gentleman an average of 3% percent on the national hundreds of millions of dollars a year. from Texas. debt would not require $8 billion in the It would seem to me that these would be The SPEAKER. Is there objection to budget but it would be $9 billion; and appropriate occasions to express our the request of the gentleman from the $8 billion today that is in that budget great concern over economy and then Texas? represents $138 for every family in There was no objection. fortify our position by our action on the Mr. CASEY. Mr. Speaker, will the America. Therefore, the interest each legislation. It is here that we are going year on the national debt, as it increases, to balance or unbalance the budget. gentleman yield? would increase the burden that the Whether or not we have a balanced Mr. WRIGHT. I yield to the gentle­ American people are called upon to pay budget and are able to make a payment man from Texas. on this national debt. on the debt will depend upon what we Mr. CASEY. I wish to join the gen­ I want to say to the gentleman from do with respect to the authorization bills, tleman in this effort to reduce this tre­ Texas that I will be very happy to sup­ expenditure bills, and appropriations. mendous debt. I wish we might get some port his legislation in any way that I of the interest off our backs. Mr. WRIGHT. The gentleman from I, like many Members in this House, can, and be consistent about it, too. I Texas [Mr. IKARD] and I have been very intend to support this year any efforts had previous experience in local govern­ careful in the presentation of this pro­ ment. I have just finished an 8-year that are made toward reducing the debt posal that it be not regarded as a parti­ and toward balancing the budget. term as county judge in one of the most, san proposal. It has been our hope that if not the most, populous county in the Mr. WRIGHT. I am grateful to the we could provide here a program in State of Texas, and one of the most gentleman for his expressions. which Members on both sides of the aisle populous cities in the whole Southwest. Mr. GROSS. Mr. Speaker, will the could earnestly adopt and follow as a I was the chief of the administrative gentleman yield? fiscally responsible policy of government. body setting the county budget, and we Mr. WRIGHT. I yield. I shall not, for that reason, deviate from did not consider a budget was balanced Mr. GROSS. I, too, want to commend the basic premise that we must pay the until we had cut down all of our ex­ the gentleman, but the gentleman's debt and that unless we face the reality penditures to within our anticipated rev­ proposal is not sufficient. Why not join that it will require sacrifices of one kind enues, including payment on our debt. with me in H.R. 144, which provides for or another to pay the debt, we cannot get Ours was a bonded indebtedness. The a balanced budget, plus 2 percent retire­ started. I shall not deviate into the national debt, of course, is in our saving~ ment of the debt in the first year, and tempting bypaths of partisan discussion certificates, Government obligations of up to 5 percent in the fourth year? Why of other matters. various denominations, on which no spend a hundred years to retire this I should like to point out that there payments are being made, resulting in debt when my bill would do the job in are Members on both sides of the aisle just a renewal of this $8 billion plus in­ 44 years? Let us do something effective; who have striven and endeavored to the terest charge. let us make a real beginning. best of their ability to be fiscally respon­ I want to commend the gentleman for I would like to say that I welcome to sible. I should like to point out that this effort that he is making in the way the ranks of the economy bloc in the even in a Democratic administration of a start on a non-partisan basis to House the many new recruits who have there was some rather substantial debt bring our country to an orderly retire­ taken the floor today. retirement, under President Truman, of ment of its obligations. 1959 CONGRESSIONAL RECORD- HOUSE 2945 Mr. WRIGHT. I am grateful to my there are any of us who do not take For me to outline a course and to pre­ colleague from Texas, whose distin­ pride and pleasure in visualizing a debt­ sume that the Members of the Congress guished service in the short time he has free and prosperous America a hundred would follow my specific suggestions­ been among us has been noted by all of years hence. I earnestly hope that we for instance, vote against this bill and us. all live long enough to take equal pride that bill and the other bill-would be Mr. Speaker, I ask unanimous con­ and pleasure in feeling that we helped presumptuous in the .extreme. sent that all Members who comment on give the country a sensible and very What I envision and what my col­ this matter may have permission to re­ worthwhile start on the long road back league, the gentleman from Texas [Mr. vise and extend their remarks. to a sound and healthy economy. IKARD] envisions in our setting ourselves The SPEAKER pro tempore [Mr. AL­ Mr. WRIGHT. I thank the gentleman unyieldingly and undeviatingly to a BERT]. Is there objection to the request for his remarks. From every account I course which will place alongside these of the gentleman from Texas? have heard, he is making a splendid be­ obligatory interest payments enough There was no objection. ginning in his service here in the Con­ money to meet a one percent debt re­ Mr. HARGIS. Mr. Speaker, will the gress, and I know that the people of Kan­ duction. Now, how, over the 100-year gentleman yield? sas are justifiably proud of him. period, in their wisdom at a particular Mr. WRIGHT. I yield with pleasure Mr. FLYNT. Mr. Speaker, will the moment and in consideration of the to the gentleman from Kansas. genleman yield? crises with which they individually will Mr. HARGIS. Mr. Speaker, I have Mr. WRIGHT. I yield to the gentle­ be faced, future Congresses might decide studied with great interest the plan of­ man from Georgia. to do this, whether by reduction of ex­ fered by my distinguished colleagues Mr. FLYNT. Mr. Speaker, I thank the penditures, increase of taxation, or post­ from Texas, the Honorable JIM WRIGHT gentleman from Texas for yielding to ponement of tax reduction, will be for and FRANK IKARD, for a systematic, long­ me at this point. I congratulate him them to say, for I cannot foresee 5 years range program of national debt reduc­ and I commend him upon his approach ahead or even 1 year ahead. But, I will tion. to this very important problem of cut­ say to the gentleman that history clearly I am firmly convinced that this is a ting down the size of the national debt shows that if we do not establish an sound and workable approach to a prob­ with which we are presently confronted. orderly, systematic method of repay­ lem that demands attention. I think I think the gentleman will realize that ment, it is not going to be done. If we that the plan deserves top priority for this problem cannot be met by one ap­ simply sit back waiting in the expecta­ maximum effort to get it across to the proach alone; that it must take a combi­ tion of the dawning of some future people and get their reactions immedi­ nation of a number of consistent atti­ Utopia, in which it will be convenient ately. Certainly, nothing could be more tudes to reduce the ever-increasing deft­ or easy for us to make a substantial pay­ timely in the face of widespread accu­ cit spending with which we are con­ ment on our national debt, we are living sations that the new Congress is off on fronted. The gentleman will recall that in a fool's paradise. a wild spending spree and giving no during calendar 1958 there were two Should we want any more vivid proof thought to the Nation's future financial measures presented to ratify and ap­ of that than the experience of the last security. prove previous deficit appropriations and few years, since World War II, for ex­ I was particularly impressed by Mr. expenditures in the amount of some $13 ample? These have been years of un­ WRIGHT's earlier remarks to the effect billion over the real and anticipated rev­ precedented national prosperity. In that the amount of interest now re­ enues for that same calendar year. retrospect, looking back at it, we would quired on the public debt is just so much Early in the 2d session of the 85th Con­ have to say that there has never been a dead weight, with which the country is gress we were presented with a $5 bil­ better time in history for our Nation to burdened at a time when there are so lion extension of the national debt. pay its debts than in these years imme­ many useful projects necessary to im­ Later on during that same session we diately behind us. Yet with the excep­ prove neglected districts, restore em­ were presented with another, this time tion of $16.6 billion paid on the debt dur­ ployment to a high level in distressed an $8 billion proposed extension of the ing the Truman administration, we have . areas, and help put some very fine people national debt. 'l'he number of members not done it. Can anyone realistically back on their feet by rescuing them from who voted to reject this total of $13 bil­ anticipate that it will be easier in the their present desperate circumstances. lion extension was a relatively small future? As a random example from my own dis­ number of the Members of the House of What it comes down to is the fact that trict in southeast Kansas, the annual Representatives. If we had been able we are borrowing upon the future. We interest charges on this indebtedness are to muster a majority on either of those are shunting off to a future generation almost 2 million times the amount my occasions, we would at that time have the responsibility of paying for those district now urgently needs to get a con­ reduced it by substantially more during things which we are enjoying today. struction started on a vital reservoir calendar 1957 than the gentleman pro­ Many of these things, notably the imple­ project at Elk City-and I have been poses to do with his orie percent propo­ ments of war, have already been used up informed that the half million dollars sal here. There have also been many, and worn out. Obsolescence has taken that should have been included in the many occasions when certain economy­ its toll. The benefits our present econ­ new budget is not available, and very minded Members of the House have omy enjoys from the impact of Govern­ unlikely to become available. sought to amend certain appropriations ment services will long since have been It is definitely time to do something bills by an aggregate sum which would dissipated and forgotten when it comes toward debt reduction-and if the ad­ have rendered unnecessary the $13 bil­ time for our grandchildren to pay for ministration and its spokesmen are so lion addition to the national debt which them. concerned with the precarious state of was put on during calendar 1958. During the past 4 years we have 3 the budget, as they now assert, I feel I wonder if the gentleman from Texas times extended the temporary debt ceil­ that they should also join us in taking will join those of us who feel that the ing and once increased the permanent immediate steps to correct the existing so-called back door approaches to Treas­ ceiling. Since the end of World War II, debt situation, which is one that cannot ury raids should also be given careful there has only been one brief period­ help but distress and agitate any clear­ and thorough consideration during this during the Truman administration­ thinking citizen concerned not only by session in a line of thought which I be­ when our Government has made any his own share of the burden, but by the lieve is entirely consistent with the ap­ reduction whatever in the national debt. ever-growing share that may well be proach which has been outlined by the faced by his children and his children's gentleman today. Yet these years have been years of children. Mr. WRIGHT. I thank the gentleman comparative national prosperity. If it As Mr. WRIGHT, Mr. IKARD, and his for his comments and agree that all has not been possible for Congress during friend Mr. Shade from Tulsa, Okla., have these approaches to Government spend­ these years to reduce the indebtedness, calculated, this may well take a hundred ing must indeed be given very careful we must wonder seriously if ever in the years to accomplish. But, whether it scrutiny. It would be presumptuous of future we shall find it either expedient takes a hundred years or a thousand, it me or of any one of us, I think, to attempt or even possible to do so without a is worth working for. You and I will not to say in precisely what manner we are definite commitment to some systematic be here to see it, but I do not believe going to achieve this objective each ·year. plan. 2946 CONGRESSIONAL RECORD -HOUSE February 25 We have had emergencies during this lenge of true fiscal responsibility which orderly reduction of the national debt of period, to be sure. But can anyone hon­ seems so clearly to demand such a not less than 1 percent per annum of estly contend that there exists any real­ course? the total now cutftanding, let me state istic prospect for the lessening of these It would be a demonstration of our. t hat this proposal, in my opinion, is one tensions and critical demands in the faith that this Nation expects to con­ of the must forward steps that this Con­ foreseeable future? tinue in operation for at least 100 years gress could take: I wish to point out Our Nation is engaged with Russia in a and are conducting our business with no that even though my tenure of office has titanic competition which may not be other end in view. been less than 2 months, I feel that my resolved for a generation or more. And It should provide a good example of background of public service in serving we fully intend and expect to be in busi­ resolution and sound economy to the the citizens of Harri~ County, Tex., has ness as a Nation after this period of re­ families of our Nation who must of ne­ given me an intimate knowledge of their current crises and ideological conflicts cessity make plans for the eventual re­ desires and wants with reference to their shall have ended. tirement of their private debts. And 100 Government. Mr. FLYNT. Mr. Speaker, will the years in the life of a nation is not so I have received a tremendous volume gentleman yield for a further question? long as it may seem. of mail and many of my constituents are Mr. WRIGHT. Surely. Such a plan should have a salutary quite concerned with ·the tremendous Mr. FLYNT. Does the gentleman's effect upon the inflationary spiral of public debt and the lack of effort to plan envisage including a proposa: to cheap money and increasing indebted­ reduce it: keep our obligated and appropriated ex­ ness. It should revive confidence both These letters are not just from big penditures within the actual revenues in in our own land and throughout the businessmen, but are from salaried work­ addition to the 1 percent which he would world in the stability of our dollar. ers, housewives, and retired individuals place in the budget to retire the national Perhaps more basic than any of this, who are dependent upon pensions for debt each year? however, it would constitute a simple act their existence. Mr. WRIGHT. Indeed. Without this of good faith with those generations of Most of these people feel as I do that anticipation there would be no need or Americans yet to come. the tremendous public debt which re­ purpose for a program of debt retire­ This is a challenge to our vision and quires over ~8 billion in interest this year, ment. to our statesmanship. It will require has contributed to the devaluation of our Mr. FLYNT. I thank the gentleman. discipline and self-restraint of both the dollar as well as the retention of so-called Mr. GROSS. Mr. Speaker, will the Congress and the American public. But temporary taxes levied for the financing gentleman yield? I believe the American Nation is equal to of the last Great War. Mr. WRIGHT. With pleasure I yield it. Let it not be said that the Congress There has been submitted to this Con­ to my colleague from Iowa. lacks the courage or the faith to put it gress a budget which has been labeled a Mr. GROSS. Does the gentleman sup­ to the test. balanced budget. I used the word "la­ pose that we could get the British to pay Mr. Speaker, I should like to say this beled" because, in my opinion, the budg­ the $4 billion they owe us and use that in closing: et submitted to this Congress is not bal­ $4 billion for our debt retirement? The American people do not have to anced. In my experience as administra­ Mr. WRIGHT. I would say to the be pandered to and spoon fed. 'The ne­ tive head of Harris County, Tex., it was gentleman that I would be delighted at cessity for honest payment of debt does one of my duties, along with my fellow the rec8ipt of any such payment for this pot nave to be sugar coated for them. members of commissioners' court, to pre­ purpose from any source. If we assume that they are unable to pare a budget for the operation of the Mr. GROSS. I was just wondering, bear honestly the cost of paying off these county government. We did not consider maybe we have overlooked something; debts I think we are selling the Ameri­ our budget balanced until we had pared maybe we ought to include this in our can people short. our expenditures down to stay within bills on this subject, for the British to The condition of the world today is the anticipated revenue of the county, pay us the $4 billion, which we could testing whether a free society, which which included a payment on our bonded apply to retire our debt. depends upon public support for its poli­ indebtedness. Such budgets were not de- · Mr. FULTON. Mr. Speaker, will the cies, can endure the stresses and strains· pendent upon an increase in taxes. gentleman yield? of rapid change in a world grown small The budget submitted to this Congress Mr. WRIGHT. I yield to the gentle­ and keenly demanding. V/alter Lipp­ makes no provision for any debt retire­ man. mann has spoken of this is his book, "The ment. On the contrary, it would increase Mr. FULTON. Mr. Speaker, may I Public Philosophy." the national debt unless there is levied say that Great Britain is in good finan­ Since governments began, there has additional gasoline taxes and an increase cial standing with our country and all been a tendency among those in official in postal rates as requested by the Presi­ her payments are being made on time. position to shielq the public from bad dent. Even with these two additions, it They are now, with the extension of the news. The temptation on the part of is questionable that the budget would loan which was passed by the last Con­ political leaders has been to counsel the balance should it te adopted without gress. So that our relations with Brit­ pleasanter, easier, more comfortable change. ain are fine on the financial basis, and course. But this is unworthy of our Na­ I, for one, am opposed to any increase I do not think we should be demanding tion and our people. in the gasoline tax or the postal rates as the money before it is due. If democracy is to survive, we must submitted by the President in his budget Mr. GROSS. Mr. Speaker, will the demonstrate our faith in the willingness request. gentleman yield? and the ability of the American people The executive department should show Mr. WRIGHT. I yield. to rise to the challenges of the time. leadership in the reduction of expendi­ Mr. GROSS. I am glad the gentle­ Tell them the truth, and they will re­ tures and in the reduction of the nation­ man from Pennsylvania [Mr. FULTON] spond. Rely on their good citizenship, al debt. This leadership was not shown mentioned the extension. That i~ an­ and they will not fail us. Call forth in the budget submitted. There was no other one of the things we do here out their patriotism to honest responsibility, effort made toward reduction of the na­ of the goodness of our hearts and our and it will be forthcoming. Let us pro­ tional debt, and no leadership shown in openhandedness, extend to the year 2008 vide this kind of leadership, and the the reduction of expenditures. the payment of the debt that was due American people both present and future, On the contrary, the cost of the opera­ us-interest and principal-2 years ago. will be proud of us. tion of the executive department has Mr. WRIGHT. Mr. Speaker, I ask Mr. CASEY. Mr. Speaker, I ask unan­ continued to rise annually, and I am in­ unanimous consent that all Members imous consent to extend my remarks at formed that the increase this year will may have permission to extend their re.. this point in the RECORD. be approximately $30 million. marks at this point in the RECORD. The SPEAKER. Is there objection to In the absence of leadership on the The SPEAKER. Without objection, it the request of the gentleman from part of the executive department, some­ is so ordered. · Texas? one must st"ep into the breach, and I am There was no objection. There was no objection. very proud that the man who has come Mr. WRIGHT. Why, then, does.itnot Mr. CASEY. Mr. Speaker, with fur­ forward and has shown this leadership is . make sense to gear ourselves to the long · ther reference to my distinguished col­ from my State of Texas·, in the person pull and begin facing in earnest the chal- league, Mr. WRIGHT's proposal for an of Mr. W:1IGHT. 1959 CONGRESSIONAL RECORD- HOUSE 2947 Mr. Speaker, an orderly method of some extent to counteract the ups and The reason for having a law specify­ reducing our national debt must be de­ downs in business cycles. The theory is ing the maximum Federal debt that can vised. It has been pointed out that in a that we should have deficits in bad years be outstanding at any one time is, as I matter of approximately 29 years we and have surpluses in good years when see it, to require particular care and con­ shall have paid in interest alone the there is full employment. This means sideration in going beyond that limit. amount of our present national debt and that we should add to the· Federal debt Administration officials have to come to still owe this debt. This is poor business in bad years and then pay off an equal or Congress and give the justification for and one which would not be tolerated by greater portion of the Federal debt in increasing the debt, and this focuses any normal banking institution. The good years. Obviously, over the long attention of both Congress and the gen­ bankers in this instance are the citizens run we should reduce the debt more than eral public on the matter. 'under these and taxpayers of the United States and we add to it; otherwise the tremendous circumstances there is a strong tendency they too are not going to tolerate this debt which was accumulated during the to prevent willy-nilly increases in the condition to exist. They too want some war years will never be paid off. statutory limit. The same should apply payment on the principal in order to HOW TO KEEP OUR SIGHTS ON THE TARGET to our failures to reduce the national keep our credit good and our dollar debt in any year by the amount of the sound. It is now practice as well as theory to stated objective. I, and the people that I represent, have have Federal deficits in the bad years. Let me add now two specific sugges­ learned to live with the threat of the It ought to be practice as well as theory tions which will be tremendously help­ intercontinental ballistic missile. I, and to have surpluses and pay off substan­ ful in reducing the national debt and in tial amounts of the debt in good years. the people I represent, have learned to Consequently, it seems to me .that we keeping it reduced. live with the threat of communism. We ought to have this definite target which REDUCE THE INTEREST COST ON THE DEBT have learned to live with these two the concurrent resolution proposes as a First, the tremendous interest costs threats because we know that our Gov­ firm long-range objective. It ought to which are now being paid on the debt ernment is making strong efforts and should be reduced. The Congress can, strong defenses against these two be an average reduction in the debt which we will make, taking account of furthermore, quite simply bring about a threats. the fact that in some years there will reduction in these costs. But, Mr. Speaker, I and the people I In fiscal 1958, the interest charges on represent have not learned live with be increases in the debt and in some to years decreases in the debt. the debt came to $7.7 billion. These the threat of uncontrolled inflation and costs have more than doubled since 1945 the havoc that it brings. We have not More than this, we ought to have a formal procedure whereby decisions will on a debt of the same size. Just since learned to live with this threat because 1953 they have gone up approximately our Government is not preparing its de­ be reached to vary from the target in fenses against this quiet, creeping enemy. individual years. At present we have a $1 billion a year on a debt of a compa­ Mr. WRIGHT's proposal will be a first formal procedu:e for considering the Na­ rable size. This is because of increased step toward stopping this enemy from tion's total economic budget. This is interest rates. within which has been steadily, but required by the Employment Act of 1946. In future years, unless interest rates quietly, gnawing and eroding the pur­ At the beginning of each year the Presi­ are reduced, these charges will increase dent submits to Congress his economic a great deal more. The Treasury is chasing power of the retired individual's constantly refunding the debt, paying pension, and has slowly, but surely re­ report, as well as the Federal budget, for duced the standard of living of the sal­ the year. The Congress then considers off maturing securities which bear rela­ very carefully what the busi:..:1ess and em­ tively low interest rate and issuing new aried individual and which has, like a securities which bear high interest rates. storm-swollen stream, eaten away the ployment trends are, what level of eco­ nomic activity is in prospect for the year On the other hand, if Congress takes foundations of the best laid insurance action to bring interest rates down, then plans and trust funds. ahead, and how the Federal budget af­ fects and fits into this prospect. The this refunding will take place at lower Mr. Speaker, it is with great pleasure, rates. If we brought interest rates down and I also deem it an honor, to join with Joint Economic Committee goes over these matters very carefully and reports to the 1953 level, and certainly that was my distinguished colleague in urging a very high level, we would save about $1 other Members of this Congress to press to the whole Congress. This is all part of the procedure for trying to carry out billion a year in interest charges on the for the passage of this resolution, and old debt, not to mention other savings thus show the peoples of these United the national policy declared in the Em­ ployment Act of 1946, which is that the on the amount of the recent debt in­ States that this Congress intends to be a crease. businesslike Congress, and one that is Federal Government will "use all practi­ cal means and coordinate and utilize all What can the Congress do about capable of meeting the challenge of these interest rates? times. its plans, functions, and resources to All that would be needed is a concur.. promote maximum employment, produc­ COMMONSENSE WAYS TO REDUCE THE NATIONAL rent resolution expressing a large and DEBT tion, and purchasing power." firm desire on the part of Congress that Mr. PATMAN. Mr. Speaker, my col­ I am in favor of the resolution. It can the rates be brought down. leagues who have given us this discussion be adopted and should be adopted with­ The Federal Reserve System deter­ of why we should have a program tore­ out awaiting the additional step which mines the level of interest rates. The duce the Federal debt are doing a tre­ I think should also be taken. But I be­ Federal Reserve System, furthermore, is mendous public service. By bringing up lieve that we should go a step further an agency of Congress and it is operat­ this resolution, the gentleman from than the resolution and set up by law a ing on a delegation of congressional pow .. Texas [Mr. WRIGHT] has filled a breach formal procedure that will have to be ers. If Congress asks the Federal Re­ where all other leadership has been fail­ met to justify any variation from the serve authorities in clear and firm tones ing. general target in any specific year. At to lower interest rates, the rates will Certainly a definite program calling least there should be a justification for be lowered. for a deliberate and determined effort to failing in any year to make the minimum In fact, Chairman Martin of the Fed-· reduce the national debt is long overdue. reduction in the debt which the target eral Reserve Board acknowledged to the I am in complete and enthusiastic accord joint economic committee just this calls for. month that the Federal Reserve is, in­ with the purposes of the resolution. Perhaps a good procedure would be No one would anticipate, I think, that deed, operating on Congress' powers to we can have an ironclad rule by which one that would require the Secretary of issue money and regulate the value of we can reduce the national debt by some the Treasury and other administration money; and he said that the Federal specific amount in each and every year. o.tticials to come to Congress and obtain a system would comply with any mandate In fact, it would not be realistic to think specific enactment giving advance per­ Congress might give. that we can make· any reduction during mission for failing in any year, to make THE FEDERAL RESERVE'S VETO POWER OVER each and every year that rolls by. In the minimum reduction called for by SPENDING MEASURES some years there will necessarily be in­ this resolution. This procedure would True, bringing interest rates down creases. work in the same way as the statutory would upset the Federal Reserves' pres­ It is now a widely accepted theory that limit on the Federal debt, and it would ent plans for the level of economic ac­ the Federal budget should be used to have the same beneficial effects. tivity we are to have in this country. It 2948 CONGRESSIONAL RECORD- HOUSE February 25 would cause the Federal Reserve to open some length in my remarks last week. first bill in the new Congress of 1943, somewhat the damper it is now holding They appear at page 2772 of the RECORD H.R. 1, was a bill to bring about an end over the System. And this would be for Thursday, February 19. -- to this giving away of Government se­ good in every respect. Not only would The proposal for-· stopping these tre­ curities to the private banks. By Feb­ this allow the unemployed-now 6 per- mendous giveaways is a very simple one. ruary of 1943 the Ways and Means Com­ cent of the labor force-to go back to It rests on the fact that both the Federal mittee was then considering raising the work, it would allow the business system Reserve System and the private commer­ debt limit to $210 billion. I happen to to start growing again. And the in- cial banks have powers for creating have here a press release which I issued creased employment and increased in- money. Both are-operating on a delega­ on FebFuary 6, 1943, which summarizes comes which would result from the steps tion of the money-creating powers of the a · proposal that was then made. It is taken to reduce interest rates would do Congress. brief and I would like to read it. a great deal more toward paying Off the ONLY THE MONEY TO BE CREATED ANYWAY HEARING ON H.R. 1 GRANTED BY WAYS AND debt than even the SaVingS On direct in- SHOULD BE CREATED BY THE FEDERAL RE- · MEANS COMMITTEE terest costs. At present tax rates, the sERVE ~ The Ways· and Means Committee. of . Treasury would have a large surplus this : cConsequently, to the extent that pew the House will give me a· public hearing : year instead of a great · deficit and a · money is created for the purpose of pur- - op my proposal embodied in H.R. 1, to · great increase in the national debt. . cnasing securities of the pnited States : finance· a large part of the national debt - Incidentally, as we consider here, and Government, the money ought to be ere­ without interest payments, commencing in the committees, legislative programs ated by the Federal Reserve System, and either next Friday, the 12th, or not later and spending measures which have been the securities ought to be acquired and than Saturday morning, the 13th, at proposed for stimulating business and held by the Federal Reserve System. The 10 o'clock. putting the unemployed back to work, Federal Reserve System is owned by the This proposal is directly connected let us not overlook this fact: Congress Government and its income from inter­ with and germane to the bill now under might pass spending measures without est on Government securities flows back consideration by the Ways and Means end, and the President might sign them . into the Treasury of the United States, Committee to raise the debt limit to $210 and put them into effect, but they would just as does its income ·from other · billion. not increase employment by so much as sources. It is my belief that we should sell all one man-unless and except to. the ex- Now one point should be emphasized, of the ~Government bonds we can to in­ tent that the Federal Reserve authori- because it is the point on which those dividuals and corporations having money ties chose to allow employment to in- who opposed this commonsense proposal to pay for them, but it is absolutely crease. The Federal Reserve-specifi- like to misunderstand. The point to be wrong and an unnecessary burden on the cally the Open Market Committee-holds emphasized is this: Whenever Govern­ taxpayers for generations to come to sell a second veto power over any spending ment securities are issued they should, Government bonds to commercial banks, measure Congress might pass. The to the maximum extent possible, be paid accepting deposits, which create the President, of course, holds the first veto for out of savings. In other words, they money with which they buy them on power. But beyond that, there is a sec- should be sold to individuals and to in­ the Government's credit and perform no ond veto power in the hands of the Open stitutions that do not create money. service other than a bookkeeping trans­ Market Committee insofar as the ques- They should be sold to such institutions action in the creation of the money to tions whether, and to what extent, a;s savings banks, life insurance com- · buythem. - spending measures, or any other meas- panies, industrial corporations, invest­ We are still paying on a debt that was ures, will have any effect on the level ment trusts, and so on. None of these contracted in the War- Between the of business and the level of employ- institutions has any power for creating States in 1861-1865 and have paid $4 and ment in this country. money. They hold savings, and any $5 interest on every $1 borrowed. Our This is not intended to suggest that securities they purchase are purchased debt after this war will be so large that the Federal Reserve can cause a busi- with savings. it is likely to mean perpetual.b.ondage­ ness boom at any and all times it might There are reasons why new money to the people, because the taxpayers will wish to. It cannot. But it can do the should be created at times, but these not be able to pay more than enough reverse. It can pull on the Nation's have to do with the growth and the needs each year to cover the interest and noth­ purse strings to hold demand and em- of our economic system. New money ing on the principal. ployment down; but it cannot very ef- should not be created merely for the con­ The debt can be paid in 40 years, if fectively push on the purse strings. venience of the Government in financing financed by the Federal Reserve banks This is one of those times when the de- its operations. without interest, as. contemplated in mand is present and the business con- But when money is going to be created H.R. 1. fldence is present, but the Federal anyway for the purpose of buying Gov­ PRIVATE BANKERS GIVEN $53 'Bn.LION O:J' Reserve is pulling on the purse strings. ernment securities, that money should GOVERNMENT SECURITIES SINCE 1941 HOW TO AVOID GIVEAWAYS OF GOVERNMENT BONDS be Created by the Federal Reserve and In my appearance before the Ways My second proposal. has been worked not by the priva-te banks, thereby saving and Means Committee in February of out in more definite and specific details. the taxpayers the interest charges. 1943, I predicted that before the war It is also more important and more fun- This proposal is no offhand and uncon­ was. over the national debt would ·:rise damental. It is a proposal for stopping sidered idea~ It has been something of to $300 billion. Obviously, I am not a the present unwarranted and idiotic a campaign of mine, and I have gone into clairvoyant in such matters, but coin­ practice of allowing commercial banks to the matter most thoroughly. cidentally the debt did go to .almost ex­ create money with which to buy and hold At the beginning of World War TI­ actly that amount. It was in the face interest-bearing securities of the U.S. even before Pearl Harbor-! went before of some such prospect as this that I then Government and tax-exempt bonds of the Ways and Means Committee and sug­ urged again a plan for avoiding loading the State and local governments. gested then that these steps be taken to up the commercial banks with Govern­ Only last year-the calendar year avoid building up huge ·accumulations of· ment securities and a plan for a definite 1958-the Government of the United Government-·securities- in the hands of reduction in the debt each year -as soon States delegated to private commercial the private banks. It seemed clear then, as the war was over. If I may, I would banks sufficient amounts of its money- as now, that if this happened, the result like to quote briefly from my testimony creating powers to allow these banks to would be a tremendous inflation as well for the Ways and Means Committee on acquire $10.4 billion of Government se- as a huge burden of interest charges on. . February 13, 1943, as follows: curities. This was a free gift of $10.4 the taxpayers, continuing almost in­ It is my considered opinion that not only billion from the Government . of the definitely. can a large part--in fact, the greater part-­ United States to the private banks which At that time, in 1941, the Ways and of ·this interest burden be saved but the cost the banks absolutely nothing. It Means Committee was considering the method pursued 1n saving it will enable our was a gift which will cost the taxpayers Public Debt Act of 1941. :The total pub-, Go-yer~men_~ _ tc? pay_the _el!tire .n~tional debt about. $350 million each year in unneces-. lie debt then was about $44 billion. in 40 years even if it should reach $300 bil­ sary and unearned interest charges. I Similarly, I urged this proposal 1n lion before this war is over. In addition, explained this gift and how it arose · at Congress in 1942 -and again in 1943. · The· the plan proposed will retire a definite 1959 CONGRESSIONAL ·RECORD- HOUSE 2949 amount of the- debt .eac;b.. year, .thet:elly . re,­ up .a hur-ricance .. o;f -public opinion for tiona! debt is, strictly. speaking, an un­ ducing .annually_any i~ationary conqiti~~ reducing the-natim:ial debt. paid bill from two world wars. On the that has been brought about because of the As long as Government securities are budget front our two political parties war, and more effectlv:ely retard inflation have fought a rough draw since demo­ than the present system. . _issued at higher and ever higher rates Inflation is our greatest danger. .of interest, there is no effective voice bilization in 19.46. President Truman raised in support of a planned program had three overbalanced budgets with a The thing which obviously needed to to retire the national debt. The holders surplus of nearly $13 billion; and his be done then was not done. The bank­ of these riskless securities do not want four deficit budgets totaled over $18 ers were in violent opposition to any them paid off. billion. President Eisenhower has made idea that the Federal Reserve should Why should smalltown bankers bother a $3 billion debt payment in 2 surplus create such money as was to be created to deal with the local people on their years; and his 4 deficit years have in­ to buy securities. The bankers wanted business credit and personal loan prob­ creased the debt nearly $23 billion. the banks to do that. lems when these bankers can create the Most people have the idea that since The results speak for themselves. The credit to buy U.S. Government securities the end of World War II our national inflation took place, and the devalued and tax exempt school and road district debt has been mounting rapidly. How­ dollar is with us today. bonds in quantities of 7 to 10 times ever, in relative terms our Federal debt Consider also these facts. At the be­ their banking reserves? Many of them has been stable. In fact, considering ginning of 1941, the private commercial do, of course, continue to render local that our economy has almost doubled banks of the country held interest­ service because of their devotion to their since 1945, the national debt is actually bearing securities of the U.S. Govern- communities and to their public trusts. smaller and more manageable today, . ment amounting to about $14 billion. At In other words, local pride and interest and hence easier to pay off if the people the end of January 1959, they held such in helping local people will continue, but will support a systematic annual debt­ securities amounting to $67 billion. the temptation for these bankers to retirement plan. In the meantime, in the years 1942 lessen their burdens and responsibilities Another fact that has been missed by through 1957, the U.S. Government and grows ever greater. many critics of Federal spending is that the taxpayers have paid more than $19 The best bankers are those who must since 1945, while Federal debt bas billion to the private commercial banks use the money-creating powers, if they grown roughly 10 percent, the outstand,­ in interest charges on these securities, use·them at all-to meet the business and ing debt of all State and local govern­ all of which could have been avoided. personal credit needs of their communi- ments increased more than 350 percent In This $19 billion could have been used for ti~ . . to a t.otal of $55 billion. other words, reducing ~he Federal debt. We would the Federal Government has actually RATIONAL DEBT MANAGEMENT IS STILL NEEDED done a sounder job of debt manage­ be at l~ast $19 billion better off today Shall we continue to make the same than we are, in addition to the savings ment than State and local governments on interest that has been paid annually. mistakes of the last several years? Shall during the postwar period. Actually, we · would be a great

EXTENSIONS OF REMARKS Estonian Independence Day Estonia had been independent from its the treacherous sands of Soviet paper early beginning until the 13th century. promises. EXTENSION OF REMARKS Then it found itself a pawn in the power But in 1940, the curtain came down on politics of larger, aggressive neighbors, independent Estonia. As one of the first OF culminating in Russian rule in 1710. For nations to be subjugated by the Soviet HON. JAMES ROOSEVELT more than 200 years they lived under op­ Union after the Hitler-Stalin Pact, OF CALIFORNIA pressive Russian rule. Their chief de­ Estonia was directly incorporated into IN THE HOUSE OF REPRESENTATIVES sire during all that time was to be free, the Soviet Union. After being occupied though they were unable to attain their by the Nazis during World War II, Wednesday, February 25, 1959 freedom without help from others. But Estonia was again returned to Soviet Mr. ROOSEVELT. Mr. Speaker, com­ history took pity on these heroic people rule. Untold hardships and suffering memorating the 41st anniversary of during World War I. With the Russian have been inflicted upon this small na­ Estonian independence is in fact a study revolution of 1917 czarist autocracy was tion-deportation, execution, imprison­ of and a tribute to the spirit of national­ overthrown and that Government's ment, and mobilization-total and brutal ism and freedom. Estonia has demon­ sovietization of Estonia. authority over other nationalities was The unhappy Estonians continue to strated a spirit strong enough to outlive shattered. Estonians felt a taste of free­ German landlords and Russian gover­ suffer under totalitarian tyranny. But nors; strong enough to withstand, at the dom, and on February 24, 1918, they pro­ their hope for freedom and their desire end of the First World War, first a claimed their independence. In 1920 the for independence is not dead. It is living Bolshevik invasion, then a German in­ U.S.S.R. signed a peace treaty renounc­ in the hearts and minds of Estonians still vasion, then another Bolshevik invasion; ing all rights to Estonian territory. In struggling for their liberty. Estonia no and strong enough to establish a republic 1932 a further guaranty was agreed upon, longer remains on the map of Europe, but and to maintain it through the trials of a nonaggression pact. Thus Estonia it does remain in the hearts of all free­ over 22 years. built its foundations of sovereignty upon dom -loving people. The United States