1963 CONGRESSIONAL RECORD - HOUSE 15059. tiona.1 amendment. 'The b:asic principle @! a Adence In the joint judgment of the com­ The 25th Anniverury of Shimahon, Youth federated. .Republic would be destroyed. The missioners •and cHrectora of the 50 States. States would loose a.u oi their meaning. They The :activities Qf the Committee on Un­ Organization of Congregation Ahnath would become mere ministerial performer.a of authorized Insurance of the past couple of local duties. years .or so .could be w.ell·.revl:ewed. Certainly, Achim in Fairfield, Conn. But. it is protested, the TNEC report was the present concept of a "Nonadmitted :In­ made 20 years ,ago. So it was, 'but its dev­ surers' Information Office" has , as lt EXTENSION OF REMARKS otees are stlU active. The citation of ·the includes all nonadmitted insurers. There 07 10 points in the 1960 report brlngs us evi­ are other avenues and approaches which dence of this. .And there a;x,e -several current should be explored if it is found that the HON. ABNER W. SIBAL examples of this disturbing trend. One ex­ situation calls for additional measures. . I, ample was the original proposal for the drug for one, have complete confidence in an as­ OF CONNECTICUT reform bi11 of last year. The bill required sociation as imaginative, aggressive, and re­ IN THE HOUSE OF REPRESENTATIVES that all manufacturers .of pharmaceutic,als sourceful as yours, to find even more and Wednesday, August 14, 1963 must be licensed by the Federal Government. better alternatives. We must bear in mind Not registered but licensed by it, with the that your industry is a dynamic industry Mr. SIBAL. Mr. Speaker, I am de­ power held by the Federal Government -to To put such an industry into the inflexible lighted today to call the attention of the summarily and instantly terminate their strictures of the Federal Government and House to the 25th anniversary of Shim­ license. its bureaucracy would .be an unpardonable shon, the splendid youth organization of That proposal was flatly rejected, and . rlghtly so. In all of these -and similar situations, the Congregation Ahavath Achim in Fair­ Now comes another proposal in S. 1705 central, Immediate theme .should never de­ field, Conn. Members irom the age of along with a deelara tion o! more problem part from the counsel of one of America's 8 to 14 have, during this period, par­ areas to be dealt with in the scope of the insurance authorities when he wrote: ticipated in an inspiring program of McOaITan-Ferguson Act, itself described as . "Administration and supervision of insur­ patriotic and civic activities. This won­ being "by no means sacrosanct." ance at the national level would never ap­ derful group has helped to shape young The proponents of this concept are shrewd proach the equitable .solution of problems lives and direct them along the :finest enough to recognize thai; a .frontal attack is which wm inevitably arise, with variation, obviously foredoomed to failure. Hence, by States, districts, .and areas ... , paths of Jewish tradition, teaching love their ·skillful resort to an approach by seg­ With such thinking, solid contribution of family, love of country, and love of ments so the tall will be severed inch by would be made to the cause of those who . Shimshon deserves the .highest inch untU, behold-no more dog. firmly and deeply !believe that this country praise and congratulation for its work in No w.ell-established coacept of freedom does not belong to the Gov.ernment. This the formation of strong character and can be destroyed by a.n open, all-inclusive country belongs to the people. Le-t's keep good citizenship. I am proud to offer attack. Ra.ther, it is eroded and eventually it that way. my congratulations and heartiest good lost by a series .of movements, no single one I want to thank you for inviting me here. wishes for its continued success. In par­ of which seems of sufficient size to warrant I hope that you now better understand some resistance or to raise any suspicion. of the thinking that exists in the Sen.ate ticular, I want to salute the newly elected The unwary will be caught by surprise and in the Congress of the United States. president, Jerry Busker, son of Mr~ and and .soon dismayed at the tardiness of their There is ·substantial feeling in · agreement Mrs. Bernard Busker, of 114 Poplar attempts to preserve their liberties. with you; and l! by ·my appearance I have Street. Bridgeport; Mrs. Sylvia Kaplan, But what are the non-Federal alternatives served in some small way to bring new heart of 1585 Melville Avenue, Fairfield, the to S. 1705? Are there any? The members to your cause, -my journey across the con­ of the National Association of .Insuran-ce tinent has been not only a very pleasant one president of the mothers council; and the Commissioners have an accumulated experi­ but one that has been more than worth­ Honorable Samuel Mellitz who, as hon­ ence and store of wisdom which wlll serve while. Thank you very much for your atten­ orary president of the synagogue, has in­ well in this regard. We·ca.n have every con.- tion. stalled the youth officers for 25 years.

HOUSE OF REPRESENTATIVES MESSAGE FROM THE SENATE Mr. ARENDS. .I yield to the gentle­ A message irom the Senate by Mr. man from Oklahoma. T HURSDAY, AUGUST 15, 1963 McGown, one of its c1erks. announced Mr. ALBERT. Mr. Speaker, in re­ that the Senate had passed a bill of the sponse to the gentleman's request, the The House met at 12 o'clock noon. following title, in which the .concur­ program for next week is as follows: 'The Chaplaln,Rev. Bernard Braskamp, rence of the House is requested: Monday, Consent Calendar day. D.D., offered the followlng prayer: There are five bills to come up under S. 1321. An act to provide for a National suspension of the rules. iI Thessalonfans 5,: 21: Prove all things: Service Corps to strengthen community hold fast that which "is good. service programs in the Unlted States. .First, H.R. 7405, increase in authorized capital stock of International Bank for Most merciful and gracious God, may The message also announced that Thy servants daily sense Thy presence Reconstruction and Development. the Senate agrees to the report of the Second, H.R. 7406, increased U.S. par­ and power in this Chamber, as they seek committee of conference on the dis­ to discharge the'ir duties and responsibil­ ticipation in the Inter-American Bank. agreeing votes of the two Houses on the Third, H.R. 5250, to provide increased ities with wisdom and understanding, amendments of the Senate to the bUI with :fidelity and fortitude. payments for widows of veterans dying (H.R. 6177) entitled "An act to amend from service-connected . We humbly beseech Thee that when section 2(a) of article VI of the District moods of doubt and anxiety lay hold of Columbia Revenue Act of 1.947 relat­ Fourth, H.R. 221, to provide educa­ upon us we may be assured that Thou ing to the annual payment to the Dis­ tional assistance to children of veterans will strengthen. and guide us in ·our ef­ trict of Columbia by the United States." permanently and totally disabled from forts and endeavors to safeguard our wartime service-connected . heritage of freedom and share it with all Fifth, House Joint Resolution 220 mankind. PROGRAM FOR NEXT WEEK consenting to an extension and renewai Show us how we may be channels· of of the interstate compact to conserve inspiration and instruments of help and Mr. ARENDS. Mr. Speaker, I ask oil and gas, hop_e to :aU who are longing and laboring unanimous consent to address the House For Tuesday and the balance of the for the dawning of that brighter and f Qr 1 minute. week: better day when a nobler and more mag­ The SPEAKER. Is there oqjection 'Tuesday is Private Calendar day. nanimous spirit shail rule the mind of to the request of the _gentleman from Then H.R. 17885, the Foreign Assist­ man and all nations sball foHow the ways Illinois? ance Act of 1963, which will come in un­ of reason and righteousness. ' There was no objection. der an open rule .with 5 hours of general ·_Hear us in Christ's name. Ameri. Mr. ARENDS. "Mr. Speaker, I ask for debate. this time in order tio inquire of the .ma­ This announcement is made, of .course, jority leader if he will kindly inform us THE JOURNAL subject to the usual reservations that as to the program for next week. conference reports mat be brought up The Journal of the '})l'oceedings ·of Mr. ALBERT. Mr. Speaker, will the at any time and that any further pro- yesterday was r.ead and approved. gentleman yield? gram may be announced later. · 15060 CONGRESSIONAL RECORD - HOUSE August 15 Mr. Speaker, I would like to advise ride in the matter of spending, I wonder considerable, and it has not been limited that we will doubtless have at least two if tlie gentleman would join with me in to commodities and equipment purchased conference reports next week. a modest contribution toward those dec- with dollars. Thousands of American I would like to state also that the sus­ orations? · personnel are providing military instruc­ pensions announced may not necessarily Mr. ALBERT. I might be willing to tion, logistic support, and technical as­ be brought up ih the- order in which do that. sistance to the free Vietnamese. Many they were announced. The SPEAKER. Is there objection to of these men have given their lives in Mr. COLMER. Mr. Speaker, will the the request of the gentleman from Okla­ the discharge of their duties. It is no gentleman yield? homa? wonder, therefore, that the people of the Mr. ARENDS. I yield to the gentle­ There was no objection. United States are deeply concerned about man from Mississippi. developments in . Our people Mr. COLMER. I should like to in­ want to know what is happening there, quire of the majority leader concern­ DISPENSING WITH CALENDAR how our help is being used, what progress ing the so-called cotton resolution. I WEDNESDAY BUSINESS NEXT is being made in the struggle with the heard no reference to it. That resolu­ WEEK Communists, and when will our boys be tion was reported out of the Rules Mr. ALBERT. Mr. Speaker, I ask able to return home to the United States. Committee some 2 weeks or more ago. unanimous consent that the business in The American press is fully aware of Since I was instructed by the committee order under the Calendar Wednesday this public interest. There is hardly a to handle that rule, the time having now rule may be dispensed with on Wednes­ day that we do not find an article on expired-7 legislative days as well as the day next. Vietnam in our newspapers and our mag­ 3 days for filing-I was wondering if the The SPEAKER. Is there objection to azines. Unfortunately, the impression distinguished majority leader could give the request of the gentleman from Okla­ conveyed by most of those articles serves us some idea when this matter may be homa? only to deepen our concern. We are programed. Mr. BROWN of Ohio. Mr. Speaker, given to understand that our assistance Mr. ALBERT. Mr. Speaker, if the reserving the right to object, I do so in is paorly used, and little appreciated, by gentleman will yield, I am not able to ad­ an inept, dictatorial government of Pres­ vise when this matter will be programed. order to make a small comment. If I may, Mr. Speaker, I want to express the ident Diem which thrives on , The gentleman will have observed practices , and ig­ from the announcement of the program hope that if we do have a.Christmas party here that the leadership of the House will nores our best advice on the conduct of that the Foreign Assistance Act with 5 not arrange matters so that my good the war with the Communist guerrillas. hours of general debate, under an open friend and colleague from Iowa will be This is the picture conveyed by most rule, will be before the House next week. Santa Claus. Knowing how closely he of the articles in our press. Every :flaw It is a matter of major importance and of the Diem government, every incident will, of course, consume a major portion holds onto the taxpayers' dollars I am afraid we would have a very skimpy involving members of his family, every of the week. criticism or protest-no matter how Mr. COLMER. Mr. Speaker, I just Christmas. Therefore, I hope the lead­ ership will select some other person to be :flimsy or unsubstantiated it may be-is want to say to the distinguished majority seemingly seized upon, magnified, and leader that I like to cooperate; and, of Santa Claus. Mr. Speaker, I withdraw my reserva­ used to discredit that government, to course, I feel some responsibility for that shake the American public's confidence resolution. tion of objection. Mr. ALBERT. If the gentleman will The SPEAKER. Is there objection to in the course which we are pursuing with yield further, I should like to respond by the request of the gentleman from respect to Vietnam. saying that I am certainly a ware of the Oklahoma? Almost no one bothers to point out importance of the cotton bill. I am not Mr. FULTON of Pennsylvania. Re­ that, faced with insurmountable ob­ only interested in programing it, I am serving the right to object, you know stacles, with his country torn apart and interested in passing it when it is pro­ when some of us here find that Christ­ overrun by Communists, bandits and gramed. mas is being made partisan, a few of us warring , President Diem has not Mr. COLMER. Mr. Speaker, I hope hope that Santa Claus just comes down only managed to survive for 9 years but that it may be programed very shortly. as usual, down the center of the aisle and has made considerable progress in bring­ there are no politics. ing order, freedom, justice, and oppor­ Mr. Speaker, I withdraw my reserva­ tunity for a better life to most of his ADJOURNMENT OVER UNTIL tion. nation. No one also bothers to point out MONDAY, AUGUST 19 The SPEAKER. Is there objection to that without him, the one element of Mr. ALBERT. Mr. Speaker, I ask the request of the gentleman from Okla­ stability present in Vietnam could dis­ unanimous consent that when the House homa? appear, plunging Vietnam and all of In­ adjourns today it adjourn to meet on There was no objection. dochina into chaos, completely under­ Monday next. mining the position of the free world in The SPEAKER. Is there objection to that strategic part of the globe. the request of the gentleman from THE WAR IN VIETNAM: TRUTH This truth, these facts, are constantly Oklahoma? VERSUS MISREPRESENTATION ignored. Like a swann of horseflies, the Mr. GROSS. Mr. Speaker, reserving Mrs. KELLY. Mr. Speaker, I ask reporters seem more interested in pester­ the right to object, in of the snail's unanimous consent to extend my remarks ing the Diem government than in help­ pace with which this Congress is pro­ at this point ln the RECORD and include ing to defeat the Communist menace. In ceeding, I wonder if any attention or extraneous matter. so doing, they give poor service to the thought has been given to Christmas The SPEAKER. Is there objection cause of freedom for which our own decorations for the House of Representa­ to the request of the gentlewoman from boys, and the free Vietnamese, are dying tives. New York? each day. Mr. ALBERT. Mr. Speaker, I would There was no objection. Most recently, our newspapers have say to the gentleman that, of course, the Mrs. KELLY. Mr. Speaker, for 9 been full of stories about the alleged snail's pace is something that he has years, since the partition of Vietnam at of Buddhists by the Diem manufactured, that I know nothing the conference table in Geneva, the gov- government. The demands of certain about. But if we are here at Christmas­ errunent of that country has been en- Buddhist spokesmen, and the charges time I would be willing to join in desig­ gaged in a deadly struggle with the Com- which they have levelled at the Diem nating the gentleman to be in charge of munist Vietcong guerrillas. For 9 years, · government, received considerable pub­ decorating the House of Representatives. the United States has shown concern for licity. Buddhist demonstrations have The gentleman gives so much attention the survival of freedom and independence been covered in detail. The picture of to everything else I know that he could of Vietnam-and, in a larger sense, for a Buddhist who set himself on .fire do that job well, too. the survival of the rest of Indochina and was printed by many newspapers. The Mr. GROSS. Since even at a snail's the total Far East-by providing assist- grievances of certain Buddhist spokes­ pace we are dealing pretty roughly with ance to the government of President men relating to the display of their :flag the taxpayers, giving them a pretty good Diem. The volume of this assistance is 1·eceived prominent mention. 1963 CONGRESSIONAL RECORD-· HOUSE 1506l The articles that I have seen said little ordinance No. 10, and seek the enact­ sons interested in finding out the truth 1f anything about the position of Presi­ . ment by national assembly of separate about what goes on in Vietnam . dent Diem's government in this matter. legislation defining their status. The letter follows: It was repeatedly pointed out, of course, · Fact No. 3 1s that the Diem govern­ OPEN LETTER TO MINISTERS' VIETNAM that Diem is a Catholic, that his brother ment has not been promulgating laws or COMMITTEE is a Roman Catholic archbishop, and decrees which deny the Buddhists the MAJESTIC HOTEL, that there are other Catholics in Diem's right to exercise their religious convic­ SAIGON, VIETNAM, government and among the high com­ tions. Neither has that government July 15, 1963. mand of the Vietnamese Army. The engaged in the persecution of Buddhists Rev. Dr. DONALD s. HARRINGTON, reader was left, therefore, with the dis­ for being Buddhists. Ambassador Nolt­ Secretary, Ministers' Vietnam Committee, New York, N.Y. tinct impression that the vast majority ing's blunt statement on this subject cer­ DEAR DR. HARRINGTON: I was shocked and of the people of Vietnam belong to the tainly deserves our consideration. The dismayed by your full-page advertisement Buddhist religion; that this majority has composition of Diem's government fur­ headed, "We, Too, Protest," in the New York serious grievances against the Diem gov­ nishes another assurance that religious Times international edition of June 28, 1963. ernment; and that the Diem govern­ would not be tolerated I have ·been in Vietnam for 4 months, work~ ment, being Catholic dominated, is by that government. ing as a technical writer on a private research showing callous disregard for the rights Finally, there are several other facts institute contract with a U.S. Army unit whose function is to observe, interpret, and of the majority of the Vietnamese by which seldom receive press coverage report on military operations in Vietnam. preventing them from exercising their here, but which have a bearing on this Since the military and political aspects of religious convictions. issue. For instance: the counterinsurgency war being fought here I know something about Vietnam and One, out of 4,766 now existing cannot be separated, I find that I deal with about its President. And I can state here in Vietnam, 1,275 were constructed, and as much information of a political nature as that the articles I just mentioned convey an additional 1,295 restored, during the I do that of a military nature. an entirely erroneous picture of the sit­ last 8 years under the Diem administra­ The sources of the information I receive uation in Vietnam. By presenting only are in Saigon, in the strategic hamlets, and tion; in the countryside where the war is being part of the facts, but making the pres­ Two, in spite of governmental policy fought. They are military and civilian; entation seem like it covers the whole, which prohibits subsidies to religious Vietnamese and American; Catholic, Prot­ our journalists contribute to a distortion groups, the government contributed ·over estant, and Buddhist. I have been with the of the truth. 9 million piasters to these projects, in­ operating forces in the field, have visited the We have been told, for instance, that cluding 5 million piasters for pagodas residents of the strategic hamlets, and have the Diem government will not permit interviewed many informed people in Saigon. in the Hue area; For the most part, these sources are reliable. Buddhists to display their flag, that it Three, less than one-fourth of the They are, at least, on the scene. discriminates against them by according ministers in Diem's government are I can honestly, and with the authority special status in ordinance No. 10, to Catholics; based on factual evidence, state that all four Catholic missions, that it interferes with Four, only one-sixth of the generals in enumerated points in your protest are gross their religious exercises and persecutes the Vietnamese Army are Catholics. misrepresentations, tantamount to unjust the followers of Buddha. and inflammatory propaganda that can bene­ What are the facts? It galls me to see these facts omitted fit only the cause of communism. from press reports on the Buddhist prob­ Your first protest: "Our country's military Fact No. 1 is that in Vietnam-like in lem in Vietnam. Such omissions repre­ aid to those who denied him (the Buddhist many other countries of the world, in­ sent very poor reporting at best, or at monk who set himself on fire) religious free­ cluding the United States-the emblems worst, a deliberate attempt to discredit dom" indicates a simple unawareness of the of . religious organizations must yield a and undercut the Diem government. facts of the case. The self-immolation of legitimate precedence to the national Everything that I have said about the the Venerable Thich Quang Due did indeed flag in public places. As early as 1957, take place, and photographs of the burning two Government orders were promul­ lack of persecution of the Buddhists by monk had an electrifying effect on world gated on this subject in Vietnam. Fur­ the Diem government has been fully opinion. But the motives behind the act supported by Ambassador Nolting and are obscure. The tragedy was heightened by thermore, Government regulations per­ other observers. Ambassador Nolting, in the fact that the sacrifice was needless. taining to flag displays were first invoked There ls not now, nor has there ever been, not against the Buddhists but against a recent statement said: I myself-I say this after almost 2½ any denial of religious freedom to Buddhists Catholics. At the dedication of a new years--have never seen any evidence of reli­ in Vietnam. in Hue early this year, gious persecution. The first demand by the General Associa­ some papal flags were flown in contra­ tion of Buddhists (the organization that vention of governmental regulations. This is not the only time that Ambas­ staged the recent Saigon demonstrations) sador Nolting made this statement. He was that the Buddhists be permitted to fly They were ordered removed and replaced their own flag. In the first place, there is' with national flags. The Catholics, ac­ was questioned recently at length on this no recognized flag of Buddhism, as such; the cording to all reports, complied. The subject during his appearance before the flag in question is that of the General Asso­ same cannot be said for the Buddhists Committee on Foreign Affairs. He firm­ ciation of Buddhists, an organization that who, instead charged the Government ly stated that, to the best of his knowl­ by no means represents Buddhism in general, with discrimination and persecution. edge, the Diem government had not or Vietnamese Buddhism in particular. Fact No. 2 is that ordinance No. 10, engaged in any persecution of the Bud­ Since 1957 there has been a Government or­ dhists or of any other religious group. der with respect to the precedence of the defining the legal status of private asso­ national flag over all other flags (similar to ciations, religious and other, with re­ An even more.flagrant example of dis­ the traditional, formal treatment of the spect to the acquisition, holding, use, tortion was contained in a full-page ad­ American flag). This order was first invoked and disposal of real property, was pro­ vertisement which appeared recently in against Catholics in Vietnam. At the dedi­ mulgated under Bao Dai on August 6, some of our newspapers. Some of the cation of a new Catholic church in Hue 1950. A reserve clause in that ordi­ language used in that advertisement was early this year, papal flags were fl.own. They nance announced that special status reminiscent of the type one would expect were ordered to be hauled down and replaced by national flags. The Catholics acquiesced. would be prescribed later for Catholic to find in a piece of Communist propa­ Another of the General Association of and Protestant missions, as well as for ganda-not in an advertisement signed Buddhists' demands was "freedom of wor­ Chinese congregations and other bodies by respectable, thoughtful members of a ship." There has, in fact, been no suppres­ having an international character. This free society. The type of reaction this sion of Buddhist services or observances, reserve clause was never implemented misguided advertisement ev.oked from private or public. It is also interesting to and in the 13 years which have elapsed people conversant with the facts in Viet­ note that one-fourth of all the existing since ordinance 10 was promulgated, it nam is exemplified by the open letter Buddhist pagodas in Vietnam have been had not aroused any controversy until built since the Diem government ca:me to written to the Ministers' Vietnam Com­ power; another fourth have been rehabili­ it was seized upon by some Buddhist mittee by Mr. Harold P. Erickson, who tated during this time; and the Diem gov­ leaders this summer. In an effort to is currently living and working in Viet­ ernment has granted 9 million piastres· preserve peace, the Diem government nam. I would like to place this letter ($125,000 U.S.) tor these project.a. The recently agreed to remove all religious in the RECORD at this point, and express President himsel! donated 600,000 piastres organizations from the Jurisdiction of my hope that it will be read by all per- ($8,SOO U.S.) toward construction of the Xa. 15062 ·coNGRESSIONAL RECORD - HOUSE August 15

Loi in Saigon ( the very pagoda. to tion in Vietnam to the Diem government. (H.R. '1500). ~11 act to authorize appro­ which the charred body of the Venerable But my experience and observations have Thich Quang Due was taken) .- This ts in­ been that this opposition 1s by no means priations to the National Aeronautics deed a strange way to "deny religious free­ :universal here, where it matters most. And and Space Administration for research dom." what of the attitude of our own Government? and development, construction of facili­ Religious freedom also presumably implies If opposition to the Government of Vietnam ties, and administrative operations; and the absence of discrimination in political were truly universal, it. seems 1llogical that for other purposes. with a Senate amend­ and military appointments. A footnote to the representative Government of the United ment thereto. disagree to the Senate your advertisment, taken from a New York States would "bolster" it. And certainly your amendment, and agree to the conference Times editorial of June 17, 1963, states that committee would be the first to admit that asked by the Senate. most high government officials and military the Diem government is at least tolerated officers are Catholics. Another error in fact. by the Catholic Church, the most numerous The SPEAKER. Is there objection to The majority of high government officials, o! Christian denominations. the request of the gentleman from including the Vice President and Secretary Then we should examine the words "un­ California? of State, a.re Buddhists, not Catholics; of the just." "undemocratic," and "unstable." Mr. FULTON of Pennsylvania. Mr. 19 generals in the Vietnamese Army, only 3 Most certainly we could find examples of Speaker, reserving the right to object, are Catholic. gross injustice in the Diem government-or the question is on sending to conference Your second protest: "The immoral spray­ any other government; or any other human the space authorization bill for 1964. ing of parts of with crop­ institution, for that matter. We can also A question has come up a.s to whether destroying chemicals and the herding of ~d examples of Justice and wisdom and a many of its people into concentration camps dozen other virtues. It is useless to debate some Members of the House would like called 'strategic hamlets' •• shows a callous the point here. a further opportunity to emphasize and disregard for the true significance of these As for "undemocratic," the Government of state the position of the House. projects. The crop-de-straying chemicals are Vietnam is quite definitely not a democratic Under those circumstances, I see noth­ used for two purposes: ( 1) selective de­ form of government as we know it, but it ing really wrong in referring the mat­ struction of crops in areas known to be oc­ does not pretend to be. It is known as ter to the Committee on Rules first, with cupied only by Vietcong guerrillas, and (2) "persona.Usm"-a term little known or un­ a resolution by the chairman of the com­ of greater importance, as a means of clearing derstood by Americans. A personalistic 1 dense vegetation from either side of" arterial government is to the right of center po­ mittee which would permit hour of roads in Vietnam in order to cut down the litically and to the left of center economi­ debate on the floor of the House which opportunities for Vietcong guerrillas to hide cally. It might well be the most effective time could be used by Members of the and ambush highway traffic. and most desirable form of government for House who would like to go into this I'm sure you a.re a ware of the high inci­ this new nation at this particular stage of legislative authorization further for the dence and brutality of these ambushes. In­ tts development. In any event, personalism Space Administration request for ap­ nocent civilians (including Protestant mis­ is compatible with the basic tenets o! de­ propriations for fiscal year 1964. sionaries, Catholic priests and nuns, and mocracy, of , of Buddhism, and Does the gentleman from California, schoolchildren) as well as military personnel o! Judaism. It 1s not compatible, however, in convoys have been killed on the roads with atheistic communism. chairman of the Committee on Science leading to and from Saigon. Thanks to the "Unstable?" The Diem government has and Astronautics, see any real funda­ crop destroying chemicals, these same roads be-en In power for 9 years-since Vietnam was mental objection to that course of now are relatively safe. It is indeed unfortu­ divided by the Geneva Accord in 1954. There action? nate that such a measure must be taken. but is no sign, in Vietnam at least, that the Gov­ Mr. MILLER of California. If the without any doubt it has saved hundreds of ernment is on the verge of collapse. Describ­ gentleman, as stated, merely wants this lives, and at the expense of a band of vegeta­ ing a government as unstable, when it has time in order to make a reco:rd, I think '!;ion 100 yards or so deep on either side of been in power the equivalent of more than some roads. (Our own freeway projects do two of our own presidential 'j;erms, seems there are-other ways in which this could infinitely more damage to the landscape. irrationa?. It might be of interest to point be put into the RECORD, through exten­ crops, and roadside businesses.) out here that early this year (February) the sions of remarks or other avenues. As for the-strategic hamlets, your statement Diem government. proclaimed a national I can only say to the gentleman that that they are concentration camps is absurd. policy of "open arms" ( chleu hoi) to induce the fiscal year has passed and that the The strategic hamlet program is a truly in­ defections from the ranks of the Vietcong. gentleman knows that this committee spiring patriotic effort on the part of· au who In less than 6 months more than 7,300 peo­ very thoroughly went into all of these are involved in their construction, and they ple have returned from the Communist fold. things and also that any further de­ may well be the deciding factor in this very Defections in the opposite direction during real war against communism. For the first the same period have been negligible. Quite lays affect the space program. time, the people of rural Vietnam have some an accomplishment for a tottering govern­ If the gentleman wants to take that security against the Vietcong terrorists who; ment. responsibility, I cannot help the gen­ before the stra.tegic ham.lets came into being~ Your fourth protest: "The fiction that this tleman further. roamed the countryside at will, living off the is 'fighting for freedom'," ls morally repre­ Mr. of hensible. If the fight against communism­ FULTON Pennsylvania. My. defenseless farme1·s. The hamlets deny the 1n t.o Vietcong access to one of its primary sources and, therefore, for freedom-is going on any­ comment answer that would be that of food supply. place 1n the world today, that place 1s Viet- I believe we .could get a resolution_ Apparently it must be pointed out that the nam, through the Committee on Rules at a strategic hamlets. are built and fortified by Mr. Roger Hllsman, Assistant Secretary of hearing sometime next week and it the people who live in them; no one is forced State for Far Eastern Affairs, has said: "Viet­ could be scheduled with the legislative to move into these villages; and the inhabit­ nam ls the testing ground for Communist session of the coming week. So, I, there­ ants a.re free to come and go as they please. guerrilla strategy. • • • Vietnam's twilight fore, object. . war may rank as one of the decisive battles Typically, ihe farmers who live in the ham­ Mr. ALBERT. Mr. Speaker, will the lets tend their fields or rice paddies outside of world history. • • • An effective counter the hamlets in the daytime, and retire at against these guerrilla tactics could be quite gentleman yield before he objects? night to the hamlets, with their harvested decisive to Western strategy in southeast .Mr. FULTON of Pennsylvania. Mr. crops, for security. Asia. and eventually in Africa and Latin Speaker, I withhold my objection. 1 Other benefits accrue~ Because of the com­ America." Mr. ALBERT. Does the gentleman munity life to which some of these agrarian It is apparent to those of us living in Viet­ also realize that a major appropriation people have, for the first time, be.en exposed, nam that the American troops who- a.re risk­ ing their lives In support of this counter­ bill is. involved in this matter and that a real grassroots democracy 1s being formed. ~ppropriation bills certainly rank very The residents of the hamlets are electing their insurgency war realize, quite literally, that own officials and making their own laws. they ~ "fighting for freedom." high on tQe list of items that. are es­ Public we-Iiare projects are being given a. Sincerely yours, sential to the expeditious disposition of practical focus formerly impossible for the (Signed) HAROLD F. ERICKSON. the business of the House? scattered rural population. With American Mr. FULTON of Pennsylvania. I be­ material aid and technical assistance, wells l_ieve, sir, Qased ~n the schedule which are being dug, bridges built, and dispensaries NATIONAL AERONAUTICS AND and schools constructed. These are concen­ has been announced for next week, we SPACE ADMINISTRATION ·APPRO­ will be able during the coming week to tration camps? PRIATIONS FOR FISCAL YEAR 1964 Your third protest= "The loss of American dispose o_f this matter during the first lives and billions of dollars to bolster a re­ Mr. MILLER of California. Mr. part of the week. .· gime universally regarded as unjust, un-· Speaker, I ask unanimous consent to . Mr. Speaker. we have already had democratic, and unstable" is fatuous. What, take from the Speaker's table the bill some meetings among Members and var­ precisely, does the term "universally re­ ious others have various views that they garded." mean? ObViously, there is opposi- 1 Washington, June 28 (UPI). want to express and emphasize. 1963 CONGRESSIONAL RECORD - HOUSE ·15063 Under the circumstances, Mr. Speaker, ST. STEPHEN'S DAY who, at this very hour, are planning or, I believe I am constrained to object, and Mr. O'HARA of Illinois. Mr. Speaker, perhaps it would be better to say, plot­ I do. . I ask unanimous consent to address the ting disaster for this demonstration. The SPEAKER. Objection is heard. I really believe this . demonstration is House for 1 minute and to revise and fraught with danger. Although I recog­ extend my remarks. nize the right of peaceful assembly, when PERMISSION TO FILE CONFERENCE The SPEAKER pro tempore. Is there that peaceful assembly threatens the REPORT ON EXPORT-IMPORT objection to the request of the gentleman peace and quiet of a neighborhood or a from Illinois? BANK city or when it causes emotions to be There was no objection. aroused and when lawlessness can use Mr. PATMAN. Mr. Speaker, I ask Mr. O'HARA of Illinois. Mr. Speaker, unanimous consent that the conferees in the annals of history a king who com­ such an assembly for its own cause then have until midnight tonight to file a bined the qualities of statesman and reasonable restraint must be the order report and statement on the Export­ saint is a rarity. such a king was St. of the day. Import Bank legislation. Stephen I, the founder and architect of I believe in the cause of civil rights. The SPEAKER. Is there objection to the Christian kingdom of Hungary. It is my present intention to vote for the the request of the gentleman from Stephen was the first true Christian in civil rights legislation. I feel that this Texas? the dynasty which ruled the Hungarian demonstration is hurting the very cause There was no objection. tribal confederacy, and when he suc­ it seeks to promote. ceeded his father he set about to build an independent Christian state. He EXEMPTION FROM THE BONDING WHY A TEST BAN TREATY WITH overcome the opposition of the pagan THE GANGSTER KHRUSHCHEV? REQUIREMENTS OF SUBSECTION tribal leaders, and in A.D. 1000 the Pope 13(a) OF THE WELFARE AND PEN­ Mr. DORN. - Mr. Speaker, I ask unan­ ,conferred upon him the title of king, imous consent to address .the House for st. Stephen's long reign was devoted SION PLANS DISCLOSURE ACT 1 minute and to revise and extend my to the political and religious consolida­ Mr. ROOSEVELT. Mr. Speaker, I ask remarks. tion of his kingdom. He transformed the unanimous consent to extend my remarks The SPEAKER pro tempore. Is there tribal land holdings into a semifeudal at this point in the RECORD and include objection to the request of the gentleman system in which the nobles administered a letter from the Secretary of Labor and from South Carolina? their "counties" but were not powerful material from the Federal Register. · There was no objection. enough to challenge the authority of the The SPEAKER pro tempore. Is there Mr. DORN. Mr. Speaker, the Com­ king. He gradually established episcopal objection to the request of the gentleman munists, a generation ago, are reported sees and built churches and . from California? as having said, "The road to Paris is the Despite his elevated rank Stephen was There was no objection. road through Peiping." The only full always close to the people of his realm, Mr. ROOSEVELT. Mr. Speaker, I am scale war the United States has fought and listened to their complaints, espe­ in receipt of a letter from the Secretary with Red communism was with Red cially those of the poor. It is said that of Labor, the Honorable W. Willard China in Korea. The Communists won ·he was distributing alms in disguise one Wirtz, announcing the granting of an the war in Korea, consolidated their day when a troop of beggars crowded exemption from th~ oonding require­ shaky position in China, and secured the around him, knocked him dowp, pulled ments of subsection 13(a) of the Welfare -Peiping leg of the road to Paris. at his hair and beard, and took away his and Pension Plans Disclosure Act where­ - Now it will further.the cause of world purse, seizing for themselves what he in­ by arrangements with the underwriters communism to develop a nuclear arsenal tended for the relief of many others. at Lloyd's, London, will satisfy the bond­ in Red China. A Khrushchev test ban Stephen took this indignity humbly and ing requirements of the act. treaty with the United States will greatly with good humor, happy to suffer in the This exemption, a copy of which I am help Red China in its bid to become a service of his Savior. Despite the con­ placing in the RECORD for the acquaint­ nuclear power. This test ban treaty will cern of his nobles, he renewed his resolu­ ance of my colleagues, received the most definitely aid the cause of world com­ tion never to refuse alms to any poor careful consideration of the Department munism or else Khrushchev would never person who asked him. of Labor. The issue had been under have signed it. A Russian-United States Stephen was canonized 45 years after advisement since February 9 of this year test ban treaty will handicap American his death, and he has become patron when notice was first published in the nuclear scientists while enabling Red saint of the Magyars. On the occasion of Federal Register that a petition for ex­ China to step up her program and on his feast day I join with all Hungarian­ emption was under consideration. All the side use Communist scientists from Americans in commemorating this great interested persons were invited to com­ Russia. Many American scientists will Christian monarch and saint. ment upon the petition. simply be idle while Russian and Chinese In addition to the letter from the scientists work overtime. Then, when CIVIL RIGHTS DEMONSTRATION Secretary I would also like to include a Red China launches her attack, as she copy of the document published in the has sworn to do against Singapore, Hong Mr. ROUSH. Mr. Speaker, I ask Federal Register on August 14 of this Kong, Formosa, and India, Russia will unanimous consent to address the House year granting such exemption. simply remain neutral or attack Western for 1 minute and to revise and extend Europe. If Russia remains neutral, the my remarks. I have had a particular interest in this United States will be hopelessly involved The SPEAKER pro tempore. Is there matter, believing that the Congress in­ with China. On the other hand, if Rus­ objection to the request of the gentleman tended the powers of section 13(e) be sia should move into Western Europe, the from Indiana? used for this purpose, and have intro­ United States will be caught in a two­ There was no objection. duced a bill which would accomplish front nuclear war which would be suicide. Mr. ROUSH. Mr. Speaker, I suppose this same result. The only hope for the United States it a little unusual for a northern Demo­ U.S. DEPARTMENT OF LABOR, OFFICE OF THE SECRETARY, to retain its position of leadership is crat to speak out against something Washington, August 13, 1963. through its science and technology, We which is designed to aid the cause of Hon, JAMES ROOSEVELT, are outnumbered; therefore, we must civil rights. However, I must say I am House of Representatives, rely upon nuclear superiority and con­ opposed to the demonstration that is Washington, D.C. quest of space. planned for August 28. . DEAR CONGRESSMAN ROOSEVELT: Last April Though vastly outnumbered, England Mr. Speaker, I am opposed to the dem­ you wrote to me concerning the position of survived for centuries through science onstration planned for August 28. I have the National Association of Insurance Agent.s, Inc., and giving me your opinion that the and technology. The United States is no argument with the intentions and Congress intended that the Secretary's pow­ vastly outnumbered and, therefore, must sincerity of most of those who are pro­ ers under section 13 ( e) of the Welfare and rely upon our scientific advantages for moting this demonstration; however, Pension Plans Disclosure Act should be exer­ survival. A test ban treaty with Russia their best intentions cannot control an cised to permit the use of underwriters at is ·the road to , liquidation, and emotion-filled atmosphere. These same Lloyd's, London, as a surety on bonds re­ national disaster. intentions cannot control the extremists quired by that statute. 15064 CONGRESSIONAL RECORD - HOUSE August 15 After the most careful consideration of the - (2) Underwriters at Lloyd's, London, shall Rustin ~poke on world peace before the problem and all the comments filed with file with the Office of Welfare and Pension American Society of Umveritty -Women at respect to this pet-itfon we ha.ve granted an ·Plans two copies of' each annual statement the Pasadena Athletic Club." exemption which permits the use of under­ required to be made to the commissioner . _ During; the ·same 1.1:!cture tour', Rustin was writers at Lloyd's. Enclosed 1s a, copy ol a of Insurance ·of those States in which under­ booked in on a charge of sex docwnent scheduled for publication in the writers at Lloyd's, London, are licensed. perversion and again, on a charge of vagrancy Federal Register on August 14, 1963, which Copies of annual statements shall be filed and lewdness. grants such exen1ptio11. with the Office of Welfare and Pension Plans Apparently, Rustin believ:es life begins at Yours sincerely, within the same period required by the re­ 40. When, at the request of the Nashville w. WILLARD WIRTZ, spective States. Banner, Rustin was recently qutzzed in Secretary of Labor. (3) All bonding arrangements entered into Washington about the· Pasadena sex convic­ (Enclosure.) by underwriters at Lloyd's, London, under tion, the Negro leader explained: "I was a section 13 of the act shall contain a "servtce very young man at the time and I do not TITLE 29-LABOR of suit clause" in substantial conformity care to elaborate on it." that for CHAPTER X:t-Oll'FICJ: 01' WELFARE AND PENSION With lfet forth in the petition More menacing, 1! no1; as repulsive, are PLANS, DEPARTMENT OF LABOR exemption. Rustin's leftist leaning!f. He is a professional Signed at Washington, D.C. pacifist, and ban-the-bontber'. Files of the Part 1307-Exemptio'Tt from bonding Th.ls 9th day of August 1963. requirements Daily Worker1 the Communist orgitb, list FRANK M. KLEILER, a "Bayard Rustin" as having attended the Bonds Placed With Underwriters at Lloyd's, Director, 1957 convention of the Communist Party, London Offi.ce of Welfare a11.d Pension Plans. U.S.A., and he was further identified as a On February 9, 196:3, the Office of Welfare member of the "American Forum for Social­ and Pension Plans Of the Department of ist Education," cited b1 the Senate Internal Labor published notice in the Federal Regis­ WE SHALL OVERTIIROW Security Subcommittee on December 19, 1957, ter (28 F.R. 1322) that it had under consid­ Mr. HUDDLESTON. Mr. Speaker, I as a Communist front. eration a petition !or exemption from the re­ Rustin was also one of five Americans who quirements of subsection 13(a) of th~ Wel­ ask unanimous consent to address the went to Russia in 1958 under the sponsor­ fare and Pension Plans Disclosure Act (76 House for 1 minute, to revise and extend ship of a pacifist group known all the Non­ Stat. 39) (hereinafter·referred to as the act) my r~marks, and to include extraneous violent Action Committee Againsi Nuclear which would permit the placing of bonds matter. Weapons. for administrators, officers, and employees of The SPEAKER pro tempore. Is there Such is the record of the man who will welfare or pension benefit plans covered by objection to the request of the gentleman lead and shape the march in Washington, the act with underwtiters at Lloyd's, London. from Alabama? D.C., this month-the> marcli of which Presi­ All interested persons were invited t<, com­ There was no objection. dent Kennedy said on July 11; ment upon the petition fdr' exerhption. Up-­ "I think that is in the great tradition. I on consideration of the comments received Mr. HUDDLESTON. Mr. Speaker, in shall look forward to being there." from such persons and for the reasons stated the August 13', 1963, issue of the Mont­ in the petition, I find that bonds placed gomery (Ala.) Advertiser there· appears ·w1th underwriters at Lloyd's, London, which an editorial entitled "We Shall Over­ TAX REFORM: A NEW DIMENSION otherwise satisfy the tequiretnents of section throw," which deats with the leadership IN FOREIGN' AID 13 of the act and regulations thereunder being pr(lvided for the so-called march­ Mr. CAMERON. Mr. Speaker, I ask (29 CFR 1306), would provide adequat~ pro­ ers who will descend on Washington on tection for the participants and beneficiaries unanimous consent to address the House of welfare and pension plans covered by the August 28. for l minute, to revise and extend my re­ act. This editorial follows: marks, and to include extraneous matter. Therefore, pursuant to the authority of WE SHALL OVERTHROW The SPEAKER pro tempore. Is there section 13(e) of the Wel!are and Pension Bayard Rustin, deputy director of the objection to the request of the gentleman Plans Disclosure Act (76 Stat. 39), Secre­ civil rights demonstrations to be held in from California.? tary's Order No. 15-62 (27 F.R. 4.977) and Washington August 28, has been glorified by There was no objection. 29 CFR 1307.1 to 1307.11, the requested ex­ associates as "Mr. March on Washington." emption is granted, effective on publication The 63-year-old Negro, a former secretary Mr. CAMERON. Mr. Speaker, it gets in the Federal_Register, title 29 CFR, chap­ to Dr. Martin Luther King, has been arrested, pretty cold in the high mountain ranges ter XI, part 1307, is hereby amended by add­ by his own admission, more than 20 times of Chile and Peru, and the United States, ing a new subpart C to read as follows= and his police record is as loathsome as it with its wealth of material resources, SUBPART C-BONDS PLACED WITH UNDERWRITERS .is long. Furthermore, despite Attorney Gen­ might be able to reduce hardships con­ AT LLOYD-'S, LONDON ,eral Kennedy's assurance that his office has siderably by sending shipments of fuel Sec. found no inkling of Communist influence in 'to the people of the Andes, The great 1307.31 EXEMPTION. the leadership of the planned demonstra­ problem is, though, that, what with the 1307 .32 CONDITIONS OF EXEMPTION. tions, Rustin has displayed a remarkable affinity for Communist causes. extremities of the weather, the require­ Authority: Sections 1307.31 and 1307.32 During World War II, while millions of ments for adequate heating, and the bar­ issued under section 13(e), 76 Stat. 39; 29 Americans of both races fought the enemy, renness of the terrain, a cord of :firewood U.S.C. 308 D~ Secretary's Order No. 15-62, Rustin occupied a safe, dry cell at the Fed­ would probably get burned up pretty 27 F.R. 4977; 29 CFR 1307.1-1307.11. eral prison at Lewisburg, Pa.-a convicted quickly in the Andes. In fact, we could § 1307.31 EXEMPTION. draft dodger. keep sending shipments of fuel indefi­ An exemption from the bonding require­ On January 21, 1953, he pleaded guilty in nitely~ and a week after the last shipment ments of subsection 13(a) of the Welfare and Pasadena, Calif., to a charge of sex perversion and was sentenced to 60 days. The story the people would be just as cold as they Pension Plans Disclosure Act is granted by were before the first. this section whereby arrangements (which of his arrest and conviction was carried in otherwise comply with the requirements of the Los Angeles Times on January 23; The dilemma, of foreign aid has always section 13 of the act and the regulations "Pasadena. Municipal Judge Burton Noble been this: How can the United States live issued thereunder), with the underwriters yesterday sentenced Bayard Rustin, 40-year­ up to its tradition of humanitarian ideals at Lloyd's, London, will satisfy the bonding old Negro lecturer, to 60 days in the county and its world leadership in the cause of requirements of the act. jail on a morals charge. freedom-freedom from hunger, disease, "Rustin's attorney, Charles Halloper, as § 1307 .32 CoNDITIONS OF ExEMPTION. failed in an appeal to free his client on the and ignorance as well from political (a) This exemption obtains only with re­ promise that he would leave this State and -without casting itself as the spect to the requirements of section 13(a) return to his home in New York. mere administrator of a. vast welfare of the act that all bonds required there­ "Rustin pleaded guilty to the charge. He program, pouring endlessly from the under shall have as surety thereon, a cor­ had been arrested by Pasadena police early American cornucopia into the bottom~ porate surety company, which is an accept­ Thursday in company with two men in an less gulf of world needs? able surety on Federal bonds under authority automobile parked near the Green Hotel. The question, although not an easy granted by the Secretary of the Treasury, "The other men, Marvin W. Long, 23, of one to answer, is by no means too tough pursuant to the act of July 30, 194'1 (6 Monterey Park, and Louie Buono, 23, of Rose­ u.s.c. &-13) •. :rnead, were given similar. sentences. a. nut for American resourcefulness to (b) This exemption is granted on the fol­ "A delegation of three members of the crack. It has taken some years of ex­ lowing conditions~ American Friends Society appeared in court, perimentation, some :ffounderlng, and (1) Underwriters at Lloyd's, Lond9n, shall but did not testify in Rustin's behalf. some mistakes-after all. the principle continue to be licensed in a State of the "Rustin had been scheduled to address the of foreign aid as initiated by this country "United states to enter into bonding arrange­ latter group at the Pasadena Methodis.t after· World War II is entirely without ments of the type required by the act. Cllurch yesterday. Shortly before his arrest, precedent in the history of nations. 1963 . CONGRESSIONAL RECORD - HOUSE 15065 But we have succeeded in molding a · The Charter of Punta del Este specifi­ _enue agents have been employed and a definition which is - the only possible cally requires self-help in the field of genuine esprit de corps is growing daily solution to the aid dilemma: -a definition taxation by "more effective, rational, and "throughout Chile's- tax administration in which the concept of foregn aid is in­ equitable mobilization and use of finan­ system. extricably interwoven with the concept cial resources through the reform of tax This is not an isolated success- story, of self-help. . structures, including fair and adequate by any means. The Government of Ar­ What if, instead of i-eporting how taxation of large incomes and real estate, gentina has added 215,000 new income much American flrew·ood had been and the strict application of measures taxpayers to its rolls during this last year, burned up by the Chileans this year, our to improve :fl.seal administration/' and introduced further revenue meas­ foreign aid administrators came back This new emphasis on tax reform is ures and rate increases estimated to with a report that Chile had increased now being intplemented by a. program of yield about $100 million. In Bolivia, in­ its income $80 million from purely in­ U.S. technical assistance, directed pri­ ternal revenue collection was up 15 per­ ternal sources in the last 2 years, a.s a ma1ily at La.tin America, inaugurated by cent in 1962 over .1961, and customs rev­ result of American advice? AID in cooperation with the Treasury enues were up 35 percent in the same That picture is not the fabrication of Department. period. In Brazil, recent tax reforms a starry-eyed zealot of foreign aid. It AID Administrator :Bell, and Secretary and improved collection methods are ex­ is in fact what has happened in Chile of the Treasury Dillon, recent!~ an­ pected to result in a $300 million increase since U.S. Internal Revenue men, in con­ nounced an interagency agreement in government revenues in 1963. There nection With the Alliance for Progress, which plaees the technical resources of has been an 18-percent increase in the arrived in Santiago 2, years ago to spur the Internal Revenue Service at the dts­ number Of tax declarations in Colombia programs of tax refornt. Posal of the roreign aid program. IRS during 1961 and 1962. ln Mexico, an im­ One of the most widely known cliches personnel and, wherever necessary, tax portant series of tax reforms- \Vent Into about Latin America is. that it is a con­ consultants from State and local gov­ effect last year which raised an addi­ tinent, of economic extremes. It, is a ernments, universities, a:rtd private busi­ tional $50 million in 1962. Income tax continent where for cent'tiries the very nesses will be made available both in rates have been made more progressive rich have lived alongside of the destitute. this country and overseas for three broitd and new taxes have been imposed on And, because the ruling power is almost categories of assistance: rental income from real estate, on capi­ invariably in the hands of the moneyed First, on-the-sPot help and advice tal gains, and on interest income from aristocracy, Latin America ha.s long been will be provided to countries desiring to bonds. a land where the rich get richer and the modernize, strengthen, and otherwise Encouraging progress is now being paor get poorer. improve their tax administration; made toward stimulating and assisting Tax reform is one of the most difficult Second, IRS will plan and conduct tax reforms in the developing countries. but important questions facing these training programs for foreign tax offi­ Basic cLanges will come slowly, and will less-developed countries. It is a diffi­ cials and other government personnel come onlY' 1f countries are determined to cult question because taxes represent both here and abroad; and, help themselves. But at least there are decisions about the distribution of wealth Third, IRS will serve as a general re­ some signs of improvement and it 1s among various income groups in the source office for special studies, technical gratifying to know that our own foreign population. In a country run by a rul­ assistance, and progress appraisals in aid officials ar~ now taking steps to make ing class, where political decisions are the tax administration field. available U.S.-knowledge and experience made by and for the benefit of an oli­ This agreement continues and gl'eatly to those countries which want to move garchy~ there is very little interest ifi expands tax assistance programs Which ahead. changing the existing system of taxa­ have been carried out on an informal rt has become clear from this short tion. Tax reforms, in the sense of de­ basis. Since late 1961, for example, more but enormously profitable venture into cisions to change the amount of taxes than 200 foreign tax officials have visited the field that tax reform represents a levied on various income groups, occur the United States for study and observa­ whole new dimension in foreign aid. And only when competing political groups tion of Federal, State, and municipal the new dimension may become the are able to bring enough pressure to taxation systems. greatest dimension, the link that brings bear on the oligarchy, This is happen­ Latin America is one of the areas of together the two most important teams ing in many less-developed countries, bu·t greatest need for tax reform, and also in the developing world: on the giving the situation probably will not improve the region where the most progress has end, the team of American altruism very rapidly~ One only has to examine been made. Major tax reform programs and economic astuteness; on the receiv­ the long and bitter history of major tax are underway in 11 countries: Argen­ ing end, the team of foreign aid benefits changes in the United States to realize tina, Bolivia, Brazil, Colombia, Chile, and self-help. that even under the best of circum­ Costa Rica, Dominican Republic, El Sal­ stances this kind of tax reform will be vador, Mexico, Panama, and Venezuela. PROGRESS IN EDUCATION a slow process. Seven other countries have improved More limited tax reforms can some·­ their tax systems and administration or Mr. EDMONDSON. Mr. Speaker, I times be achieved, however, in countries have :fiscal reform legislation pending. ask unanimous consent to address the run by ruling elites. These reforms, such Accomplishments in Chile are an ex­ House for I minute and to revise and as more modern methods of tax admin­ cellent illustration of how much can be extend my remarks'. istration, can play a vital part in the achieved through U.S. technical aid. For The SPEAKER pro tempore. Is there development of the country, Not only the last 2 years, nine U.S. Internal Reve­ objection to the request of the gentleman can they enable a government to collect nue men have been working out of San­ from Oklahoma? additional revenue for essential develop­ tiago, Since they arrived, tax collections There was no objection. ment projects, but they can also help in Chile have increased between $30 and Mr. EDMONDSON. Mr. Speaker, strengthen public support for the coun­ $50 million a year. Tax collections are since there has been some comment here try's political institutions. Lack of pub­ expected to jump twice that next year. today about the snail's pace at which this lic confidence in' institutions of govern­ Before our men arrived, hardly anyone Congress 1s said to be proceeding, I think ment is a fundamental problem in devel­ had ever been tried in Chile-or all Latin it is in order to take note of the fact oping nations. America for that matter-for tax fraud. today that this House of Representatives One of the most promising changes in In whole regions of Chile, not a single has already passed in this session more our foreign aid program since the estab­ person ever had filed an income tax re­ important and far-reaching legislation in lishment of the Agency for International turn. Now, with American assistance the field of education than any House in Development is the emphasis now being the Chileans have closed loopholes, mod­ the past decade. We have seen action al­ placed on tax reform. This is reflected ernized procedures, and cracked down ready ranging across the field from voca­ in the Act of Bogota and the Charter on chiselers. They have taken 2 per­ tional education to medical education of Punta del Este, the founding agree­ sons to court, have 2 others await­ and medical training to the bill which ments of the Alliance for Progress, which ing trial, and are investigating an ad­ was acted on yesterday to advance the emphasize the imPortance of self-help ditional 50. Auditing has increased :five­ cause of higher education. This House through tax reform. fold. Two thousand eight hundred rev- of Representatives has moved in a more CIX--9j8 15066 CONGRESSIONAL RECORD - HOUSE August 15 constructive way in the field of educa­ pot only yield high revenues but also the governments in question came to al­ tion than any House in the memory of help eliminate undeworld problems. In most $659 million which was used for most of us who serve today in this body. all of these 77 countries, the gambling public and medical programs, hospitals, This is at least a partial answer to those spirit of the people 1s legally recognized schools, housing, welfare, charity, cul­ who say that nothing constructive is be­ and capitalized on by their governments. ture, science and other worthwhile ing accomplished by this Congress. Unfortunately, we in the United States projects. Of course, Mr. Speaker, there are oth­ stand virtually alone among the nations Mr. Speaker, is it not time that we er bills involving education on which we of the world in our hypocrisy in refusing demonstrated similar wisdom and cour­ are still working, and it is far too early to establish a national lottery in the age here in this country? Is it not time to claim that the job has been com­ United States. that we removed the blinders and recog­ pleted. Mr. Speaker, it is difficult for our tax­ nized the obvious fact that the urge At the same time, no honest critic can payers to understand our Government's to gamble is a universal human trait support the charge of a snail's pace in sanctimonious attitude about gambling, which should be regulated and controlled the field of education, on the record of especially when we know that gambling for our own welfare and benefit? When this House. in this country is a $50 billion a year are we going to be sensible and realistic business which is the chief source of reve­ about our gambling problems and tie it nue to the underworld crime syndicates. in with our need for additional revenue? A GOVERNMENT-RUN LOTTERY IN A Government-run lottery in the Why can we not profit from the ex­ THE UNITED STATES United States, like in Puerto Rico, Ire­ periences of all of these 77 foreign coun­ land, Australia, France, Italy, and the tries? Why can we not grasp this finan­ Mr. FINO. Mr. Speaker, I ask unani­ other foreign countries, would not only mous consent to address the House for 1 cial wisdom of our friends? When are satisfy the American thirst to gamble but we going to face up to the fiscal facts minute and to revise and extend my would shut off the flow of b11lions of remarks. dollars now siphoned off by the under­ of life and capitalize on the natural The SPEAKER pro tempore. Is there world and by many of these foreign-run gambling spirit of our American people? objection to the request of the gentleman lotteries. More importantly, it would Why can we not follow the lead taken by from New York? produce over $10 billion a year in new New Hampshire? Let us stop being reck­ There was no objection. revenue which could be used for needed less with the tax and revenue advantages Mr. FINO. Mr. Speaker, for the past tax cuts and reduction of our national offered by a national lottery. several months, I have brought to the debt. Mr. Speaker, I am happy to list the attention of the Members of this Con­ In 1962, the 77 foreign countries listed 77 foreign countries which recognize that gress the government-run lotteries con­ below took in gross receipts o! over $1,- gambling is a fact of life and channel ducted in 77 foreign nations. All of 900 million from the government-run these gambling moneys to work for the these countries have found that lotteries lotteries. The total profits accruing to public good rather than against it:

Country Gross receipts Net income Purposes used Country Gross receipts Net income Purposes used

1. Argentina ______$39,063,000 $17,000,000 Public and medical programs. 39. Iraq______$1,700,000 $800,000 Hospitals and philanthropic pur- 2. Australia______88,657,000 27,255,000 Construction of Sydney Opera poses. House, hospitals, welfare, mental 40. Ireland ______45,566,000 8,354,000 Hospitals. institutions. 41. IsraeL. ______16,000,000 5,000,000 Hospitals and schools. 3. Austria ______13,800,000 4,500,000 General purposes. 42. Italy______79,491,000 43,698,000 Education, charity, and treasury...... 4. Belgium ______43. Jamaica ______17,454,000 6,000,000 Belgia_n Social Welfare Fund. 44. Japan ______851,200 180,000 Hospitals. · 5. Bolivia______870,000 128,000 Red Cross, public health, and welfare 12, 147, .000 4,497,000 Schools, hospitalsi roads, and bridges. programs. 45. Lebanon ••••••• 3,000,000 250,000 Red Cross, schoo s and libraries. 6. Brazil ______5,356,000 536,000 Schoolsf hospitals. housing. 46. Luxembourg ___ 1,480,000 372,000 Charity, welfare and medicare. 7. Bulgaria ______7,700,000 S-,860,000 Genera purposes. · 47. Malaya ______11, 200,000 3,820,000 Social welfare purposes. 8. Burma ______6,947,000 2,550,000 Social welfare, housing. 48. Malta ______1,317,000 200,000 General purposes. 9. Cambodia______13,700,000 4,100,000 Social and economic projects. 49. Mexico , ______56,000,000 15,000,000 10. Ceylon ______1,448,000 464,000 Health services. 50. Morocco $______2,000,000 500,000 Charitable purposes. 11. Chile ______20,275,000 3,166,000 Colleges, public health, and hospital 51. ______53,288 20,000 TB & Funeral Association. construction. 52. New Zealand ••• 13,300,000 3,808,000 Youth, community, and charitable 12. China 3,689,000 1,916,000 General fiscal purposes. projects. tNationalist). 53. Nicaragua ______4,239,000 779,000 Hospitals and social assistance. 13. Colombia ______33, 360,000 11,416,000 Blind, hospitals poor, and aged. 54. Nigeria& ______140,000 Treasury. 14. Costa Rica _____ 9,948,000 3,243,000 Mental institutions and hospitals. 55. Norway ______17,300,000 5,400,000 General purposes. 15. Cyprus ______1,988,000 894,000 Development purposes. 56. Panama ______38,754,000 6,156,000 Hospital~ orphanages, and welfare. 57. Paraguay ______16. Czechoslovakia_ 8,367,000 2,500,000 Factories, hospitals, and culture. 58. Peru ______900,000 187,000. Mother- ild care program. 17. Denmark______7,812,000 652,000 General fund of treasury. 2,506,000 406,000 Hospital and medical services. 18. Dominican 34,258,000 6,367,000 General fund. 12,113,000 4,231,000 Hospitals and health centers. Republic. :: i::iri~~~::::: 53,378,000 18,138,000 Housing and cultural activities. 19. Ecuador ______2,897,000 906,000 Charitable organizations. 61. Portugal ______25,507,000 6,565,000 Public assistance. 20. El Salvador ____ 5,900,000 936,000 Social and welfare purposes. 62. Puerto Rico ____ 51,825,000 11,000,000 Public health program, 21. England 1 ______111,000,000 68,000,000 63. Republic of 22. Ethiopia ______800,000 138,000 5t«:,;!?;ie projects. Congo,7 ------23. Finland ______6,153,000 2,175,000 Science, arts, opera, and national 64. Romania 8 ______.. Government Treasury. theater. 65. Russia 8 ______------Do. 24. France ______66. Sierra Leone G__ ------1, 500,00Q 144,000,000 46,000,000 General purposes. 67. Spain ______6,000,000 Schools and hospitals. 25. Germany ______395, 000, 000 160,000,000 Youth activities, sports, and health. 112, 098, 000 32,380,000 General purposes. 26. Ghana ______756,000 311,000 General revem,1e. 68. Sweden ______52,000,000 31,000,000 Cultural activities. 27. Gibraltar ______69. Switzerland __ ._ 6,240,000 1,719,000 Public buildings and transportation, 1,776,000 417,000 Homes for people. 70. Syria ______28. Greece ______17,932,000 3,828,000 1,050,000 655,000 Damascus International Fair. 29. Guatemala _____ 2,633,000 681,000 ~~¥i;~!~11i:a~~:~~JCJ~Y:re. 71. Thailand ______34,286,000 9,238,000 Charity, housing, and welfare, 30. Hait!______3,000,000 600,000 Social welfare and assistance. 72. Trinidad ______1,000,000 200,000 General revenue and charity, 31. Holland ______9,800,000 1,100,000 General revenue. 73. Turkey______8,900,000 3,800,000 General treasury, 32. Honduras ______15,000,000 2,500,000 Health centers and clinics. 74. Upper Volta 10 __ Charity work. 33. Hong Kong _____ 1,195,000 479,000 Social welfare. 75. Uruguay______18,000,000 5,000,000 General purposes. 34. Hungary ______73,365,000 40,000,000 Housing and sports. · 76. Venezuela ______28,000,000 2,500,000 Charities. 77. Yugoslavia _____ 35. Iceland'------950, 000 283,000 University Research Institute. 7, 408,000 2,223,000 Orphanages, hospitals, etc. 36. India s______6,600,000 Treasury. TotaL ______37. Indonesia ______8,000,000 2,000,000 Social welfare projects. 1,905,198,288 658, 468, 000 . 38. ______8,000,000 2,000,000 Hospitals and schools.

1 Premium bond lottery used. e Premium bond lottery used. Figures reflect 1st 3 months of 196.1, 2 Privately sponsored. T Plans underway for a national lottery, a Prize bond lottery used. a Figures are not available, Considered confl.dential, t 1962 figures unavailable; 1960 figures used. Government holds figures confidential. • Just started. Figures are Government estimates. ' Lotteries are foreign owned and operated but Government collects 25 percent of 1• Lions Club conducts lottery once a year. total sales. 1969 CONGRESSIONAL RECORD·- HOUSE 15067 SCHQOL DROPOUTS integrated program or subj'ecta that seem t.o projects and a. number of other programs be best for him is carefully worked. out for that were Dia.1icfously libeled in the Life Mr. GOODLING. Mr. Speaker, I ask each pupil and ·is frequently reviewed in unanimous consent to extend my remarks -later conferences about bia progress. magazine article to which reference has at this point 1n the REcoRD, and include But the greatly increasec:I course otrerinp been made will be discussed. I hope the extraneous matter. and the continuing efforts. of the staff would gentleman from Colorado will be here to The SPEAKER pro tempore. Is there probably still be not enough to reduce the participate in that discussion which is objection to the request of the gentleman dropout rate to 3 percent. The Red Lion to take place on Monday next. from Pennsylvania? Area School plays it safe by maintaining- an Mr. CHENOWETH. I thank the gen­ administrative policy that pupils not yet tleman from Oklahoma. I include in my There was no objection. 17 years. of age wlll not be allowed to quit Mr. GOODLING. Mr. Speaker, too unless extraordinary conditions (usually of remarks a copy of my letter to Mr. White, often in Government we ignore the cause an emergency or near-emergency nature) as follows: and concentrate on an inadequate,. un­ make the pupil's continuation in school CONGRESS OF THE UNITED STATES, satisfactory, and costly cure. virtually impossible for him or her. HOUSE OF R.EPRESENTATYVES, Suggestions have come to this Congress lt has been by these devices that, in the Washington, D.C., August 15, 1963. face of a continually increasing total pupil Mr. MORTON B. WHITE, which are not designed to determine the enrollment, this primarily residential, rural Assistant to the Publisher, cause but rather attempt a cure at a school system has, during the past 7 years, Life, Time and- Life Building, cost of more bureaucracy with an accel­ achieved these remarkable results in lower­ New York,N.Y. erated expanding Federal payroll. ing its dropout rate. DEAR MR. WHITE: I have your letter of the The following report is concrete evi­ 9th in which you call attention to the- pork dence that there are communities which barrel article in your Issue of August 16. I recognize a problem and do something FRYINGPAN-ARKANSAS PROJECT appreciate yoW' invitation to comment on the same. I have some observations. which about its solution. There is no sensible Mr. CHENOWETH. Mr. Speaker, I I am pleased to submit herewith. or logical reason why this experience ask unanimous consent to address the In the first place, it is unfortunate that could not and should not be duplicated House for 1 minute, to revise and extend you have characterized the projects men­ in every school district of our 50 States. my remarks, and to include extraneous tioned in the article as belonging 1n the Do-good programs at the Federal level matter. . porl: barrel category. I refer particularly to too often result in costly nightmares. the irrigation, reclamation, and :flood control The SPEAKER pro tempore. Is there projects. J will confine my remarks to the Can the dropout rate of high school pu­ objection to the request of the gentleman Fryingpan-Arkansas project in Colorado, as pils be reduced in any important degree? from Colorado? · I sponsored this project from its inception, The Red Lion Area School of York County, and am familiar with its history. Pa., has reduced its dropout rate from 15 There was no objection. percent of the student body in the 1955-56 Mr. CHENOWETH. Mr. Speaker, I The article is unfair and misleading. It ls term to 3 percent of a larger student body received a letter from Mr. Morton B. obvious that many of your readers will be during the 1962-63 school term. White, assistant to the publisher of Life deceived by the pork barrel charges which are Individual scheduling of a greatly in­ magazine, under date of August 6, calling manifestly unfcunded so far as these proj­ creased variety of subjects following count­ ects are concerned. my attention oo an article which ap­ It is obvious that those who wrote the less individual conferences with pupils and in parents by a team of genuinely interested peared the August. 16 issue of Life article are either completely unfamiliar with guidance counselors, and an overall policy relative to "pork barreling." Mr. White the history of reclamation in our Western that pupils will not be allowed to quit ex­ invited me to comment on this article States, or have deliberately refused to recog­ cept for at least near-emergency reasons, are which lam happy to do. I am writing nize the many benefits which this program the administrative tools by which this note­ to Mr. White and I call his attention to has brought, not alone to the West, but to worthy result has been accomplished. some incorrect statements and misrep­ the entire Nation. The original Reclama­ During the 1955-66 school term, with an tion Act was passed in 1902, since which time resentations in the article on the Frying­ the importance ·of reclamation has been enrollment in grades 7 through 12 of not in quite 1,400. more than 200 boys and girls pan-Arkansas project Colorado. I recognized by every administration, and by quit school, a loss of about. 16 percent. had the pleasure of sponsoring this proj­ every Congress. (Records from those earliest days imme­ ect which was authorized by the House The development of our water resources diately after the formation of this school last year. is most essential. to the economy of our Na­ system do not provide full details~) I feel it is very unfortunate that this tion. The threats of water shortage con­ During the just-ended 1962-63 school attack should be made upon the irriga­ stantly loom in many parts of our Nation, term, with an enrollment in grad.es 7 through tion and reclamation and flood control and every effort is being made to find and 12 of 1,731 pupils, only 59 boys and girls programs of this country, which have develop additional supplies of water. I can­ (29 boys and 30 girls) quit school, a loss of not agree that the development of our water less than 3 percent. And 27 of the 69 (13 had the support of Congress. I do not ·resources is pol'k barrel politics. boys and 14 girls) were at least 17 years of believe that these projects should be in­ Some of the statements on the Fryingpan- age, beyond Pennsylvania's high legal re­ cluded in the category of "pork barrel." . Arkansas project are misleading and others quirements for school attendance. And these In my letter to Mr. White I confine my are entirely false. The writers state '"water figures include all who quit during the sum­ remarks to the Fryingpan-Arkansas that now :flows west will :flow east and $170 mer, not just those who dropped out during project, as I am personally familiar with million will flow out of U.S. taxpayers pock­ the school term. the details of this project. I do discuss ets." They fail to tell the readers of Life Unquestionably, much of thi& greatly in­ if in­ that all of this money will be returned to creased holding power has been generated the other projects, but the same the taxpayers, with the exception of about by the development of a greatly expanded accuracies occur in the statements on the $11}; million which ls allocated to :flood con­ program of studies which offers work suited other projects, then no credence should trol and fish and wildlife, which are non­ to the capacities and interests of nearly be given to any portion of the article. reimbursable items. The balance will be every type of teenage personality. The labels The article is very misleading and decep­ paid back to '!;he U.S. Treasury, with inter­ of "academic," "college preparatory," "com­ tive in its approach, and very unfair in est, except about $66 m1lllon allocated to mercial," "vocational," "industrial," "agri­ its attack on programs which are so im­ irrigation, which will be repaid in full, but cultural," etc., have been abandoned. The portant to the growth and development without interest as provided by the Reclama­ school now o1Iers individual pupil schedul­ tion Act. ing of individual subjects instead of of our country. I want to make it crystal clear that this is "courses" or «curriculums" for arbitrarily Mr. EDMONDSON. Mr. Speaker, will not a handout from the Federal Government, formed groups. the gentleman yield? but is a good investment for the American However, this greatly expanded work pro­ Mr. CHENOWETH. I yield ·to the taxpayer. Most of this money will be repaid, gram could not. be translated into individual gentleman. as I have indicated, to say nothing of the pupil scheduling of individual subjects with­ Mr. EDMONDSON. I am very happy additional Federal income taxes which will out a forward-looking and truly interested that the gentleman brought up this sub- be paid because of the stabilized crops made group of teachers and guid'ance counselors. ject because on Monday next the gen- possible by this project. This has been the These men and women spend many hours, . '. . history of all re~lamation projects, and the often working evenings and weekends, with tlem~n f~m Mmnesota [Mr. BLATNIK] Fryingpan-Arkansas ·will be no exception. each pupil and with many parents in a con­ who IS chairman of the Rivers and Har- The article states "there is serious doubt tinuing effort to convince families of the bors Subcommittee has a 2-hour special the benefits will equal iiie cost." This proj­ great, need for more schooling. A carefully order in which a number of public works ect received the most careful study of the 15068 ·CONGRESSIONAL · RECORD - HOUSE August 15 Bureau of Reclamation and independent home-nation program equivalent to U.S. military· service rendered in the past. water engtl'leers over a period of many years. social security. Such appropriations to the railroad re:. There was never any doubt about the project The proposed blll -makes participation tirement account would net the railroad being feastble. The project has a cost bene­ fit ratio of 1.65 to 1. In other words, for in the U.S. social security program by retirement system about $5 million a every $1 spent on this project there will be these employees nonmandatory. This is year on a level basis. This would reduce a return of $1.66 in benefits from this project. done by amending the operating defini­ the deficit further by $5 million a year­ The statement that the "House Rules Com­ tions for self-employment to add an ex­ $46 million minus $5 million-to $41 mittee three times refused to clear the bill" emption clause for U.S. citizens employed million. · is absolutely untrue. As a matter of fact, in the United States by certain interna­ Finally, the bill would retain as a the Rules Committee cleared this project four tional organizations. Under the pro­ minimum guarantee the present 3-per-· times. The committee never at any time re­ fused to approve the bill for consideration posed amendment these employees may cent interest rate on special obligations by the House. opt out of the U.S. tax. Their election issued to the railroad retirement account The writers also state that the "Reclama­ to file a certificate of withdrawal from and provide a new formula for determin:. tion Bureau altered its estimate of benefits." the U.S. social security program extends ing the interest rates on such special There is no foundation for this statement, 1 earning year after this bill comes into obligations. This formula would provide as the Bureau of Reclamation at no time effect. a yield in line with current market yields made any substantial change in its estimate I urge the Congress to support this on marketable obligations of the United of benefits which woUld accrue under this project. bill. States which do not mature before 3 The article also comments on the fact that years. In addition, the bill would require the production of alfalfa in Colorado will be PROVIDING MORE ADEQUATE FI­ the Secretary of the Treasury to convert, increased, and mentions that there is now NANCING OF RAILROAD RETIRE­ upon the enactment of the bill, the pres­ "a million acres of alfalfa in the soil bank ent 3 percent special obligations into that no one is allowed to cut." This is not MENT SYSTEM AND RAILROAD special obligations bearing interest rates true, as there is now a shortage of alfalfa UNEMPLOYMENT INSURANCE determined under the new formula. This in Colorado, due to severe drought conditions SYSTEM formula is substantially the same as is in our State. Hay has been selling at an unusually high price, and in many cases is Mr. HARRIS. Mr. Speaker, I ask provided for other trust funds. not available at any price. unanimous consent to address the House These amendments would result in the I want to again emphatically protest for 1 minute and to revise and extend my railroad retirement account receiving an against this article as being completely mis­ remarks. additional $25 million a year on a level leading and unfair so far as the Fryingpan­ The SPEAKER pro tempore. Is there basis. This would further reduce the Arkansas project in Colorado is concerned. objection to the request of the gentleman deficit from $77 million a year to---$77 I thank you for the opportunity to express million minus $31 million minus $5 mil­ these comments. and I hope that in a future from Arkansas? issue of Life your readers will be given the There was no objection. lion minus $25 million-$16 million a true facts on this project. Mr. HARRIS. Mr. Speaker, I have in­ year on a level basis. With every good wish, I remain, troduced today a bill to amend the Rail­ Upon the enactment of the bill it will Cordially, road Retirement Act of 1937, the Rail­ be appropriate for the Railroad Retire­ J. EDGAR CHENOWETH, road Retirement Tax Act, the Railroad ment Board to assume that the special Member of Congress. Unemployment Insurance Act, and the Treasury obligations in the railroad re­ Temporary Extended Railroad Unem­ tirement account would earn interest at U.S. INTERNATIONAL EMPLOYEES ployment Insurance Benefits Act of 1961 the rate of 3.43 percent on a level basis. to increase the creditable and taxable This 3.43-percent rate includes 0.05 per­ SOCIAL SECURITY OPTION BILL compensation, and for other purposes. cent from the retention of the 3-percent Mr. LINDSAY. Mr. Speaker. I ask It is the purpose of this bill to provide minimum guarantee and 0.07 percent unanimous consent to address the House more adequate financing of the railroad from the immediate conversion of the for 1 minute and to revise and extend my retirement system which has an actuarial present 3-percent special obligations into 1·emarks. deficit of $77 million a year or 1.79 per­ special obligations bearing interest rates The SPEAKER pro tempore. Is there cent of taxable payroll, and the railroad determined under the new formula. objection to the request of the gentleman unemployment insurance system which Were it not for these two provisions, the from New York? has an actual accounting deficiency of board would have to assume an interest There was no objection. more than $300 million. rate on such special obligations of 3.31 Mr. LINDSAY. Mr. Speaker, I intro­ The bill would improve the :financial percent instead of 3.43; and this would duce today for appropriate reference a condition of the railroad retirement sys­ result in a projected loss to the railroad bill to make social security coverage for tem by amending the Railroad Retire­ retirement account of $8 million a year. U.S. citizens employed by certain inter­ ment Act and the Railroad Retirement The proposal in the bill to provide the national organizations who are serving Tax Act to increase the maximum railroad retirement system with a guar­ in the United States optional instead of monthly creditable and taxable com­ anteed rate of 3 percent on interest compulsory. I want to explain the rea­ pensation with respect to the railroad earned by its special obligations is clear­ son for the bill and the solution pre­ retirement system from $400 to $450 for ly in accordance with a congressional sented by the bill. each employee. This amendment would policy of long standing. Such minimum The United Nations has its own social net the railroad retirement account guarantee has been in the Railroad Re­ security system. It is mandatory. Some about $31 million a year on a level basis. tirement Act since 1937 when the pre­ 676 U.S. citizens, three-quarters of the The additional revenue to the system vailing investment yield on general Gov­ U.S. citizens employed by the U.N., are would amount to about $71 million a year ernment obligations was well below this compelled against their preference to set on a level basis, and the cost of addi­ rate. The railroad retirement system aside more than 12 percent-in the near tional benefits resulting from the in­ has reduced considerably the cost of the future it will be more than 15 percent­ crease in the compensation base would Government's relief program, during the of their net income for both U.N. and be about $40 million a .year on a level depression years 1937-40, by paying U.S. social security purposes. These basis. The difference between the two--­ then in benefits to railroad employees people are being required to pay for $71 million, $40 million, or $31 million­ $282 million more than was paid by the more protection than they need. would reduce the deficit from $77 million social security system. The 3-percent These employees object to being sub­ to $46 million a year on a level basis. floor on the interest rates to be earned ject to two mandatory security programs, The bill would revise the provisions by the special obligations in the railroad U.S. social security and the U.N. pro­ of the Railroad Retirement Act with re­ retirement account was apparently the gram. Coordination of the two retire­ spect to the crediting of military service congressional recognition of this bur­ ment plans is impossible, as long as both toward benefits under the Railroad Re­ den-through high taxes-on railroad of them provide for •mandatory coverage. tirement Act. These amendments will employers and employees, which, in tui:n, The U.N. cannot alter its social se­ remove the objections of the Bureau of . reduced the cost of the Federal relief curity program without adverse effect on the Budget to appropriations of amounts program. .This longstanding congres­ the many non-U.S. staff members serv­ totaling about $160 million now due the sional policy of providing a 3-percent ing that multinational body with no railroad retirement system for credits for floor on the interest to be earned by the 1963 CONGRESSIONAL RECORD - HOUSE ·15069 special obligations in the railroad re­ prove the :financial condition of the rail­ Private :firms in 47 of the 50 States tirement account, should not be nullified road unemployment insurance system shared in $175,398,616 worth of orders simply because the Congress would now by-$10.8 million plus $6 million plus recorded during the period from Janu­ provide the special obligations in the $3.5 million-about $20.3 million a year. ary through July 1963. The total rep­ railroad retirement account with the It is expected that these improvements resents procurement directly traceable same formula for earning interest rates will make unnecessary further borrow­ to the State of production. For this as it provided for other trust funds. ing of funds from the railroad retire­ reason and for the further reason that The provision in the bill for immedi­ ment account for the payment of reporting is based on letter-of-credit ate conversion of the special 3-percent benefits under the Railroad Unemploy­ transactions exceeding $10,000, the :fig­ obligations now in the railroad retire­ ment Insurance Act, and will leave some ure is far less than the full national total ment account into special obligations excess of funds to begin a gradual re­ of AID-financed business. The geo­ bearing interest rates determined under payment of the more than $300 million graphic impact of such purchases are, the new formula is reasonable and equi­ the system owes the railroad retirement however, indicated. table. The rates of interest earned by account. It is highly important that the The orders cover a wide variety of in­ obligations newly issued to the social need for borrowing funds from the dustrial and ag1icultural products and security system and the civil service re­ railroad retirement account be brought materials purchased in developing coun­ tirement system are determined from to an end. In addition, these amend­ tries for use in particular projects or obligations having 4 or more years to ments will make available sufficient funds promoting economic growth. Purchases run, while the rates provided in the bill for administration of the Railroad Un­ are :financed by U.S. development loans for the special obligations in the railroad employment Insurance Act. or grants, terms of which direct most retirement account would be determined Mr. Speaker, I am happy to say that from obligations having 3 or more years procurement to American suppliers. this bill is of, for, and by the railroad Value of orders recorded during the to run. This places the railroad retire­ industry. It has been carefully worked ment funds at a disadvantage in com­ out as the result of an agreement be­ month of July was $28,852,373. Leading parison with the other funds. Moreover, tween the Association of American Rail­ States last month were Maryland with for the past 7 or 8 years the Federal roads, representing substantially all class a $3.9 million total consisting largely of Government has gained at the expense 1 railroads in the United States, and the iron and steel orders, New York with $3.2 of the railroad retirement system from American Short Line Railroad Associa­ million total from a wide range of indus­ paying only 3 percent on the special ob­ tion, representing approximately 250 trial orders, and Mississippi whose $2.9 ligations in the railroad retirement ac­ common carriers by railroad, on the one million total involves a large order for count when it paid more than that on hand, and the Railway Labor Executives' fertilizer material. funds borrowed through general obliga­ Association, representing substantially Amounts for all States in July and tions. all railroad employees in the United the :first 7 months of this year are pre­ The equities are clearly in favor of re­ States, on the other. It is indeed grati­ sented in the table below: taining in the bill the provisions for the fying that in the midst of the current U.S. commodity procurement under foreign 3-percent minimum guarantee and for disagreements between representatives of aid program the immediate conversion of the 3-per­ railroad labor and railroad management, [Detailed listing or cities and individual firms not cent special obligations now in the rail­ they are in complete agreement on this available] road retirement account into special ob­ bill to improve the :financial condition ligations bearing interest determined un- of the railroad retirement system and Cumulative der the new formula. . the railroad unemployment insurance State or production July 1963 Janu~July The· bill would improve the financial system. condition of the railroad unemployment I was very pleased when by a joint let­ Alabama______$1,841,704.40 $5,365,706.95 insurance system by increasing the maxi­ ter of a few days ago these three railroad Alaska______41,505.15 294,247.20 mum contribution rate for the system Arizona______11,890.38 37,317.82 organizations requested me to introduce Arkansas ______------6,799.55 from 3¾ to 4 percent, effective with this bill and I am indeed very glad to California______731,298.94 5,534,672.74 respect to compensation paid after De­ do so. Colorado______16, 708. 43 1,248,670.53 cember 31, 1963. The additional revenue Connecticut______376,189.15 2,034,015. 41 Delaware_ ------104,816. 50 335,929. 75 to the system from this amendment Florida______3,477.39 3,278, 15.5. 02 would be $10.8 million a year. TWENTY-FIVE STATES RECEIVE HawaiiGeorgia______46,720.00______2,309,553.03 _ Next, the bill would amend section 3 of FOREIGN AID ORDERS IN EXCESS Idaho ______------16,460.64 the Railroad Unemployment Insurance OF $1 MILLION IN 7 MONTHS Illinois______1,475,163. 75 9,672, 173. 61 Indiana------279, 994. 96 4,394, 737. 71 Act to increase the amount of compen­ Mr. MATSUNAGA. Mr. Speaker, I Iowa______41,193. 63 561,536.89 sation for a base year required for an ask unanimous consent to address the Kansas______6,867.34 105,863. 78 employee to qualify for benefits from Kentucky______61,447.48 926, ffl>. 31 House tor 1 minute, to revise and extend Louisiana______1,653, 727 .42 5,234,426.48 $600 to $750 and, if the employee is a my remarks, and to include extraneous Maine_------8,410.00 new entrant into the system, such com­ Maryland______3,957,500.39 8,650,436.39 matter. Massachusetts______474,513.75 14,721,157.15 pensation must be paid with respect to The SPEAKER pro tempore. Is there Michigan______1,892,950.77 8,762,063.74 not less than 7 months in the base year. Minnesota______31,520.97 698,876.92 objection to the request of the gentleman Mississippi______2,904,265.00 3,173,985.81 The savings to the system from this from Hawaii? Missouri______146,257 .92 1,224,918.01 amendment would amount to about $6 There was no objection. Montana ______------124,000.00 million a year. NevadaNebraska ______------8,988.00 _ Mr. MATSUNAGA. Mr. Speaker, yes­ The bill would amend section New Hampshire______2,040.00 4 (a-2) (i) of the Railroad Unemployment terday I called to the attention of the NewJersey______1,450,057.16 9,416,635.33 House the fact that 80 percent of foreign New Mexico ______------183,079.51 Insurance Act to revise the provisions New York______3,287,577.06 35,472,001.13 aid dollars is spent right here in our own North Carolina_ ------______1,050,099.14 of the act with respect to disqualifica­ United States. The Agency for Inter­ North Dakota ______tion for days of unemployment of em­ national Development has reported that Ohio______2,500,707.73 10,476,854.84 ployees who voluntarily leave work. The Oklahoma______330, 104 .21 954,016.46 effect of this would be to disqualify em­ during the :first 7 months of this year, 25 Oregon______43,714.25 646,111.67 States received procurement orders in ex­ Pennsylvania______722, 217 .23 14, 110,798.57 ployees for more days which would Rhode Island______35,500.34 187,443.20 cess of $1 million each under the U.S. South Carolina______147,043.31 1, 241, 477 .80 otherwise be days of unemployment for South Dakota______15,439.80 which benefits would be payable. The foreign aid program. These States are: Tennessee______623,212.10 savings to the system from this amend­ New York, Massachusetts, Pennsylvania, Texas______2, 158,983.92 10, 474,212.57 Ohio, Texas, Illinois, New Jersey, Michi­ Utah______6,600.00 120,506.68 ment would amount to about $3.5 million Vermont______45,659.32 a year. gan, Maryland. California, Alabama, Louisiana, Colorado, Connecticut, Flor­ ~~~agton::::::::::: ~:: !; ~: l: :: Finally, the bill would provide suffi­ West Virginia______683,637m :~.83 3,271,825.57 cient funds for administration of the ida, Georgia, Indiana, Mississippi, Mis­ Wisconsin______171,027.42 1,990,340.37 Railroad Unemployment Insurance Act. souri, North Carolina, South Carolina, Wyomm,______3,641.95 11,121.79 The amendments to the Railroad Un­ Virginla, Washington, West Vb·ginta, and Total______.28, 852,873.60 175,398,616.86 employment Insurance Act would im- Wisconsin. . 15070 CONGRESSIONAL RECORD - HOUSE August 15 F-OREIGN AID BILL ..analysis ,of :ou,; foreign. aid program. I The ~ommunist guerriUa wpetlority in 'The SPEAKER. ·under :previous order think ,he is rendering, '8S .he .has done 'w:ea])Ons was lost. American military -of the Hause, the gent1eman from Min­ since he joined this group.., a real iServi-ce :advisers. headed .by Gen. Ja1111~s 'A.. ;van not o~y the Congress but the Na:­ Fleet, :soon arrived to help in the Greek nesota [Mr. FRASER] ~ts recognized for 60 to to m1nutes. · tion as well I lihlnk that ~e gentleman na/tion81l army's training ll)rogram. .As has been :very timely m bringing this .in _Vietnam today., American troops Mr.FRASER. Mr. Speal{er, yesterday problem ,of forejgn_aid to our -attention worked closely with national f orees both the House was privileged.to hea-r a num­ when we consider that the f or~ign aid in training camps '8J1d in the :field, _shar­ ber 'Of our eo1lea:gues discuss the foreign bill will be before us next week. ing the hardship Billd, on many occa­ aid bill.. They discussed 'at length cer­ Mr. Speaker, ist ,has been.said that suc­ sions, exposing t hemseives to enemy gun­ tain questions which have been raised cess has a thousanC!i fathers ·and failure about the program, and demonstrated fire. tbat we are making progress in achieving is an orphan. 'Tito's break with Moscow closed the Annually, the foreign aid bill is given border to insurgents .and speeded the our objectives. orphan treatment by the U.S. Congress. tipping of the scales. The r.est was Mr. 'Speaker, we in Congress are con­ .Is this because the program has :been largely a moppin-g.;up ·operation. sidering rth1s year appropriations total­ a failure or .is it because jts recipients The guerrilla war had taken a heavy ing $51> billion to .secure the defense ef are not voting constituents? economie and human toll, and the ·ask nur Nation. There is no higher nor more As we -consider theioreignaid bill next of rebuilding was greater in 1949 than tpressing ,coneem for this Congress than week and consider whether or not it is a at the end of World War II. to .provide the military 'Strength neces­ successful weapon in the cold war, let us Economic aid took over where military sary to deter aggression against us. We not look exclusively .to the turmoil of the aid left off'. With U.S. help, a broad have met and are continuing to meet present but with the perspective of his­ program of economic rehabilitation .:and this challenge successfully. tory. Let us see where foreign aid made deve1opment .began. The results speak Nevertheless, the requirements for an the vital difference. f@r themselves. adequate military establishment are con­ .Japan, Israel, and many countries in Over tbe past 10 year.s the gross na­ tinually ,changing as the :world changes,. Eurepe can be pointed out as success­ tional product in Greeece has risen at an Counta:les rise and fall in their capacity fully completed ioreign aid _programs. annual r.ate 10f 6 pereent. Per capita 'to make war. alliances shift and .the bal­ Howev-er, the most dramatic analGgy to income has grown more than i percent ance of :power 1s constantly in ilux. Tbe today's troubled situations is the nation a y.ear. Between 1950 and 1.961, agrlcul­ number of natlons which today .are capa­ of Greece in 1946. tuml output rose 73 percent '8.nd indus­ ble of engaging in modern wariar.e ls In the fall of 1946,, Greeee, a small trial production 150 percent. limited. There are only two major nation with limited resources, but a love -1n 1961, Greec.e was 'Still Importing nuc1ear powers, and we have, for the time of freedom that has stretched across more than she exported, but the $195 being, struck an uneasy·balance of power. 2,000 years ,and more, was in desp~ate million trade deficit was more than Mr. Speaker, the wor1d is changing straits. She had been at w:a.r almost cov,ered by remlttances from emigrants every day, Before too many years there continuously since 1·94'J. She had al­ and the inflow of private capital and in­ will be more natiens -capable of engaging most no funds to maintain her Govern­ tergovernment loans. I -would say here in modern warfare. The newly inde­ ment, feed her people, and fight the that no group has been more helpful to pendent and underdeveloped countries of thrieat-of a Communist-directed guerrilla their loved ones 1eft behind than our this world will be growing stronger. war. All of her major ports were de­ 18,000 Greek ·people m the city of Pitts­ Thus -we must think. about our Nation's stroyed, as were -90 percent of her rail­ burgh. Their leaders have also been security, not just in the context of the roads. Only 138 ships of all kinds were very active in civic and conuµun~ty military and ,economic power which -ex­ left in the Greek commercial fleet, which enterprises. ists today, but also in the .context of the before the war numbered 10 times th-at To .continue, Mr. Speaker, total U.S. emerging patterns whiclil will result from many. National income was 41 percent aid to Greece bas equaled 18 percent of a changing wor1d. We have only 6 per­ and industrial production 35 percent of gross investment for the period 1950-61 cent of the world'.s population. We can­ prewar rates. The country's economy and accounts for 37 percent of the net not liv.e -and smwive alone in a hostile was being engulf-ed by inflation. inflow of foreign ,capital during the world. The independence and freedom Communist _guerrillas had started an period. Aid fr-0m the United States was of other nations must be of direct con­ a11-out civil war as 1>art of a drive to highest between 1949 -and 1953, averag­ cern to us~ take Greece, Turkey, and Iran. Neigh­ ing roughly $140 million a year. Since Our .national security, therefore, -re­ boring Communist nations gave them then tt has dropped steadily; both devel­ quires that we .seek to .influence tme heavy 'SUPPort.. Guerrillas moved freely opment grants '8.nd technical asslstance changing patterns -so as to create a fa­ over the borders into Yugoslavia, Al­ programs were ended as of June 1962. vorable environment in the wor1d-an bania., and Bulg·ari-a. At the height of Military a1d from the United States environment which is not hostile but the eonfflct, Communist guerrillas pene­ has equaled economic assistance in friendly to the concepts of freedom and trated to within 20 miles of Athens and amount, and released Greek resources for independence. raided the outskirts of Salonika. deve1opment rather than defense sup­ This js one of the princi_pal reasons As Greece's .situation became more port. · why the United States must continue in desperate, her means for handling it A steady increase, slnce 19-56, in do­ partnership with its allies to provide were diminishing. The relief provided mestic savings and the opening of new assistance to other nations of the world. b.Y UNRRA ended in December 194_6. sources of external financing and re­ This is why I strongly ·support the For­ The military and economic assistance duced Greek d-ependenc·e on V.S. assist­ eign Assistance Act oI 1963.. .I ,believe provided by the British was inadequate ance to finance its continued growth. If that this program together with the food­ and the British bad advised us they the Greek economy can continue Its past f or-peace -program and the Peace Corps would not be able to continue their aid rate of growth, the ·ratio of domestic and related progr.ams provide the 1on1y any longer. The rlecision to aid Greece saving-s to total Investment should also tools with which the Executive can seek was ,squarely up to the United States. improve and the country should continue to influence and shape events ,abroad. It Fortunately, those in power knew what to attraet foreign capital. would ·be tragic for us to abandon ·this the collapse of Greece :would mean to It is to the advantage of Amerl~a~ effort and thus default to the Commu­ the -free world. On March 12, 1947, business to help these nations strengthen nist efforts to spread their system President Truman .came before the-Con­ their economy. For example, the Ex­ thrQugbout the world. gress to rally the country bebind what port-Import Bank has approved, .sinc_e Mr. Speaker, I yleld to the gentleman came to be called the "Truman doc­ the war, a total of $33.3 million of loans from Pennsylvania TMr. MOORHEAD]. trine.'' Congress responded to the call in Greece. Of that amount $16.8 million Mr. 'MOORHEAD. Mr. Speaker,, I by approving $4:00 million in aid to have actually been disbursed with the thank the gentleman for yielding to me. Greece· and Turkey and the 1irst ship­ provision that only American equipmelj.t First I would like to commend the gentle­ ments ,of military ·and civilian supplies and g oods may be :purchased with this man !or his·very careful and penetrating anived ln Greece in August of that year. money. Six million dollars have already 1963 CONGRESSIONAL RECORD - HOUSE 15071 been paid back in hard currency and, There are those who counsel nuclear Anglo-Saxon concept of individual here is the kicker, $5.8 million has been war to solve our problems, but f ortu­ rights; there are not many nations in repaid in the form of interest and com­ nately they are few and beyond the Asia, or in the world for that matter, missions. This $5.8 million is a very fringe; there are those who counsel sur­ about whicli the same can be said. healthy sign for our balance-of-pay­ render, and happily they are of little The democratic trend in Indian poli­ ments situation for we may expect to importance. The only alternative we tics has been strong from the begin­ see this continued in a positive way as have is active and effective competition ning. The dominant Congress Party, in more and more of our loans come due. with the Communist bloc, largely on the the :first general election in 1952, won Greece by now will receive no more world economic front. This economic 362 out of 489 seats in the lower House grants but will enable us to continue in warfare, if you will, would have to be car­ of Parliament; the Communists won 16 our position as banker of the world by ried on in some form regardless of seats and a variety of parties the bal­ applying for hard loans. whether we have an AID program or not. ance. In the second election in 1957 U.S. aid was the prelude to the closer It so happens that AID is our weapon at the picture was similar: The Congress identification of Greece with the free the moment. Let us use it sensibly and Party took 371 out of 494 seats, the world and with Western Europe. As the well. First, let us try to understand it. Communists took 27, and the balance Greek Government said in memorandum Now to specifics. I hope to spend the went to other minor groups. In the last to the U.S. Government, "without your next few minutes exploring in more de­ or 1962 election the picture was roughly assistance, the maintenance and inde­ tail aid to India-one of the largest and similar with the Congress Party taking pendence of the country would have been most important of our AID programs. almost three-!ourths of the seats and problematic." Greece has been a mem­ We may expect that the attack on the Communist Party taking only 29. ber of NATO since the fall of 1951. She foreign aid as such will center on India. The attitude of the Indian Govern­ was also admitted to the Common Mar­ Why? India is an easy mark. We know ment toward the Communist Party of ket in January 1963, as an associate little about this country, There are few India is instructive. In 1948 to 1950, member, and plans are being laid for a voters of Indian extraction. India's when the "line" of the Indian Commu­ Greek aid consortium. foreign policy, at least until very re­ nist was armed violence, the Nehru gov­ Greece today has not changed its place cently, has made us extremely uneasy. ernment suppressed the violence with on the map. It is still an outpost of Many have neither understood nor ap­ determination and, at one time, had be­ freedom. It is meeting its NATO obliga­ proved their neutralism. It was easy to tween 4,000 and 5,000 Communist lead­ tions. It spends, for a small country, an use the black or white approach in for­ ers in jail. In 1957 when the Commu­ unusually large part of its budget for eign relations and say, "If they are not nists, though they had only 35 percent defense. Yet its cost per man is only for us they must be against us." It is of the vote, split the opposition and one-tenth that of what it would take also possible that some of us subcon­ gained control of the state government the United States to station a man there. sciously recoil from the thought of a of the State of Kerala, the efforts of It maintains a well-trained army and nation of hundreds of millions of dark­ Nehru and the citizens of the State led air force and a small but capable navy. skinned people. Of course, there are to the collapse and dismissal of the Com­ The percentage of their country's man­ others whose adverse reactions are munist State government in 1959 and power in uniform is the highest in NATO sparked by an Indian government that their subsequent defeat at the polls the and even tops the United States. There often speaks in the vernacular of the following year. was no question of her and Fabian Socialists. Of course it is common knowledge now complete support during the Cuban While aid to Indian is easy to attack­ that the Communist Party of India is and such attacks may even be worth not only in disrepute because of the Chi­ crisis. votes at home-we cannot overlook the nese invasion but badly split because of Greece -is a good example of the re­ vital importance of this treinendous the current ideological dispute between sults which can be achieved by foreign nation in the world and particularly in China and Russia. They will continue aid. We sometimes despair about the Asia. Here is a subcontinent with 450 to be a threat, but their main hopes of seeming lack of progress in helping coun­ million souls, whose numbers are grow­ success lie in either a Chinese mllitary tries to become self-supporting. Yet ing at the rate of 9.5 million people per victory or in internal economic collapse who would have thought that within the year. Here is 15 percent of the world's of India. If the present Government of span of 15 years, Greece not only would people; here are half of the people in India, hopefully with our help, main­ have escaped the yoke of communism non-Communist Asia. tains its present vigor, the chances of but made such remarkable strides in India is destined to become a massive either occurrence are limited. economic development. Foreign aid economic pivot between the West and It seems obvious to me that the pres­ made the vital difference. Communist China. It has a mixed ervation and development of this new Mr. FRASER. Mr. Speaker, I want economy. Private production is 85 per­ nation, in its present pattern, is one of to thank the gentleman from Pennsyl­ cent of its total production. Those who the most important tasks in the free vania for his excellent presentation of repeat the cant of private enterprise world today. You may choose the hu­ one of the real success stories of our should note that only 84.2 percent of our manitarian reason that we should raise foreign-aid policy. I know that the country's total production is private. the hopes and the lives of 450 million gentleman has recognized the value of , often the darling of those who people from the slough of poverty, fam­ this program by his actions in the past. disapprove of socialist inclined foreign ine and disease; you may choose the I think that this story he has told us countries, has, according to Fortune selfish national reason that we cannot today adds to the record. magazine, only about 60 percent of its afford to allow almost half a billion peo­ Mr. Speaker, at this time I should like total investment in the private sector. ple to slip behind the Communist cur­ to yield to the gentleman from Hawaii However, today the economy of India is tain. You may choose what reason you [Mr.GILL]. tiny by our standards. Her gross na­ will, but the answer is still the same: Mr. GILL. Mr. Speaker, next week tional product was only $36 billion in we must participate in the development we are scheduled to consider foreign aid. 1960-about 7 percent of our GNP that of India. This is a bad year for the foreign aid year. What are we being asked to do? Sim­ program. It has no constituents as Politically, India is a democracy in the ply put, we are being asked to contribute such; its effect is indirect and little Western sense. Perhaps its greatest to the building of India's basic tools so understood; it is an easy :first victim of legacy from the British has been a dem­ that she may stand :firmly on her own any economy drive. ocratic political structure and a work­ economic feet; we are being asked to The purpose of these remarks is to able civil service. Over half of India's insure against her possible collapse as a demonstrate in a small way that foreign eligible voters cast their ballot in the nation in the face of serious Chinese aid is not only a humanitarian effort, but 1962 election-a tremendous achieve­ pressure; we are being asked to promote also an essential tool of our foreign ment considering India's 24-percent level her political independence so that she policy. If you disregard human values, of literacy and her . India's will not fall under the domination of the this is the way we wage a cold war. judicial system, like ours, draws from the Soviet bloc. If we fail in any respect, 15072 ~ONGRESSIONAL RECORD - HOUSE August 15 we will incur, inevitably, iar greater eco­ in both the free :world .and the Soviet and now runs at the r.ate. of over. $550 nomic burdens than we , now . contem- "t:>loc: billion a year, what we may contribute p1ate. . , , TABLE A.--Tota.l free JOMZ4 -and Soviet bloc to the price of the long r.ange develop­ We are _asked to > "India., but ls . assistance ,to 1.iuiia a:uri.11,!I fir,1;t a.nd .second ment ,pf . . India is .a _relatively small India· helplng herself? The !ollowing 5-31ear pZans t.eoo.ing Mar • .31, .1961) amount...... chart 1ndlcates dearly that -In.dia has [Millions of--dollars equivalent] · .Ther.e .is one particu1ar point in our done, 1s doing, and plans to do most of F'ree world: a;1d to .India whic~ bears special con­ her development out of her own Te­ United States______,______3,308.2 sideration, if for no other reason that it sources. , IBRD ------68·2. 0 may be the focal point of attack. This India ls financing its development_:pro­ . IDA______60. 0 is the so-called Bokaro steel mill project. gram large1y 'from domestic resources, as · "United Kingdom______425. 6 This proposal, which has been under shown tn the follow1ng table: W-est Germany______339. 6 Canada______·226. 0 study by the United States Steel Corp. ., ·at JJ3illions .of dollars] .Japan______79.0 the behest of the U.S. Government, may Switzetla.nd...______"22. 9 be the working bar by which some hope 1st _plan, 2d plan, 3d plan, Austria.______14. O fo tear down aid to India in particu1ar .1951-56 11.956---61 1961-66 Yugoslav.la.______40. O and the AID program ln general. ------1------'Norway______3.5 What is this suggested project all Total investment______7 .l H.2 2Ul Colombo plan______34. 6 Finance from: about? _ Domestic.sources ___ t6.7 11.9 17.2 First., let us look at the need. At pres­ Foreign -aid ______A 2.3 '4:6 Sub'totaL ____ ·______5,235.4 Percent financed fr_om: ent, India has two :private steel mills Domestic souroes ___ 94.0 81.0 79.0 Sovfot bloc: and three Government steel mills. .Both Foreign.aid ______6.0 16.0 '21.0 U S.R&. ______809- 5 the J)l'ivate and the Government sector Cl!!ioohosl(!)valtia ______7.3.1 have about equal shares of the present . In summary, this clla.rt shows that East Germany ______3.0 approximately 6 million metric ton steel 11. 7 during.India's first 5-:Ye&r.P1an from W51 .RumanlaPoland ______------_ capacity. By 1976 the 'Indians plan to 30. 0 to 1956. out of a total investment .of $7 1 Hungary ______increase their present plant to pToduce billio~ India supplied 94 percent; in her 16.5 around 11 million metric tons annually. second 5-year plan of dev.elopment, from Subtotal ______Even so, they expect to have a deficit of 1956 to 1961. out .of a total inve.stment 948.8 a1most 6 million tons. Obviously, they of $14.2 billion, India :financed B4 per­ Ckand totaL ______6,179.2 need new plants with new capacity. cent; in her projected third -5-year plan, The estimate is that l3okaro can pro­ from 19.61 t.o 1.966, India proposes to in­ What do we expect todo in the future? duce about 4 million metric tons by 1976 vest $2L8 billion -and to contribute 79 In the third 5-year plan now underway, and thus cure more than half of the an­ percent of this herself. it is anticipated that the free world will ticipated deficit. India has done w.ell to this point. Con­ contribute more than $5 billion in de­ How much will Bokaro cost? The sidering her great difficulties, she has velopment money. This will include more total cost, based on U.S. steel figures., 1s done amazingly well. -Sh-e has managed than $2 billion from the United States, about '$1.5 billion. The :proposal calls to keep ber rate of national growtJ::i a not counting .surplus .farm commodities. :(or .almost $900 million ·from Indian modest steP ahead of her population The Soviet bloc is expected to contribute sources. It is proposed that the United growth. To ,continue to do this, and to about $900 million. The table, wh1ch I States will loan about $512 million to reach the modest goals she has set., she now include, shows this picture in great­ cover the foreign share of the first stage. needs the help of other countries. We er detail for the first .2 years: The proposal further states that the a.re aeing ask-ed to1>articipate. TABLE B.-Free world and Soviet bloc com­ p1ant will be built by U.S. firms, using Mr. CONTE. MT. Speaker, will the mitments to the first 2 J!ears of India's our materials, and will be managed by gentlem-a.n yield? third 5-year plan., ,starting April 1961 U.S. technicians for about 10 years. I .Mr. GILL. .I yield to the gentleman !Millions of dollars equivalent] think we can all see the advantage to us Free world: of having our people using our tools in from .Massachusetts. United :States ______980. 0 .Mr. CONTE. Could the gen.tleman 1 the largest · steel plant in India during giv.e me that figure of what the United IBRD and IDA______1 4:50. 0 this formative industrial period. · United Kingdom ______1 266. 0 states contributed. to India dur,ing this West Germany ______1 "364. 0 The specter of socialism has been Canada ______58.0 period of time? 1 raised. It will be raised many times to Mr. GILL. During the period of the J ·a,pan ------1 105. o defeat this project. However, the facts fir.st two 5-year plans from 1951 to 1961 .li'rance ------1 60. O are that the responsible leaders of India's the United states ,contributed $3.a bil­ . Switzerland______23.0 private steel industry have expressed lion in development money. Of course, .Austria______14.0 their support for Bokaro as a project run there was .food in addition to that. Yugoslavia______40. O by the Government of India; I am in­

Mr. CONTE. .I think the gentleman SubtotaL ______~ 3 2, 442. 0 formed they have also made 'Clear their will find, if you go back to 1946 .and in­ inability to handle a project of this mag­ spect all of these spigots oi foreign aid, Soviet bloc: nitude ,on a private basis without eutting for example, Public Law 480., develop­ U.S'SR______500. 0 back on their own planned expansion. ment k>am;, specia:l assistance, technical Czechoslovakia______48.5 In all the ideological confusion, one assistance and so forth, the United States Pola,nd ------30. 0 thing is clear: India needs the steel that has contributed about $11 billion to Hungar_y______16. 5 Bokaro wi.11 produce to build her indus­ India. Total ______595.0 trial base and to give life to the many Mr. GILL. The 'figures I gave were private firms in the Indian economy that for development money for the two 5- GTand totaL ______S, 037. o need steel to grow. If 'In summary, we are being asked to in­ year plans from 1951 to 1961. the 1 gentleman has other supplemental "fig­ Committed by members of India con­ vest in our own future as well as the sortium. future of the almost half a billion people ures "I will be glad to look at them. 2 In addition to the above commltments, What part have we in the free world the United States has already undertaken of the Indian subcontinent. India is a played in the .dev.elopment of India to to assist India's third plan by making avail­ vital key to the future of Asia. India is date'? In the ·first two 5-year plans, fr-0m able surplus commodities in the amount of a proud nation of proud people. Their 1951 to 1"961, tne free world contributed roughly $300million annually. inclination is to the West; many of their $5.'2 blllion, of which '$3.3 bi1lion came 3 Excludes $200 million D4F drawing right traditions are . our traditions. It be­ United The bloc extended . F;ebruary .19.57 and $250 mil,11on hooves us to move f orwa.rd with them from the States. Soviet drawing right extended .July 1961. contributed less than $1 ·billion ln thls toward a more peaceful and stable world. same l)eriod. · :I include at this point a This is -a lot ·of money. 'However, . Mr. FRASER. I thank the gentleman table which gives th-e ind1v!dual-contrlbu­ when you ,consider that our gross na­ fr.. Hawaii for h1s excellent presenta­ tions of the various countries involved tional product is increasing every year, tion concerning India. I think the gen- 1963 CONGRESSIONAL RECORD - HOUSE 15073 tleman has brought out very forcefully gree of selectivity: 50 countries will re­ very little intensive and systematic anal­ why we cannot abandon this country ceive more than 80 percent of all aid ysis of the situation in each country, to­ and leave it to its fate without aid from funds, military and economic: 20 coun­ gether with analysis of ways in which the United States and its allies, this tries have been selected to receive 80 per­ the United States could most effectively country which occupies such a strategic cent of our total economic assistance for assist with development of the country. position in the subcontinent and which 1964; 10 countries wlll receive 80 percent The procedure now being used by our has a total population larger than the of our total military assistance; 6 coun­ aid officials is a great improvement over combined populations of the continents _tries .will receive 80 percent of our de­ the old system. Careful studies are made of South America and Africa. velopment loan funds; 6 countries in of each country, and comprehensive Mr. Speaker, I now yield to the gentle­ Latin America will receive 80 percent of plans are set forth to maximize the effec­ man from Michigan [Mr. O'HARA]. our Alliance for Progress loans; and 7 tiveness of U.S. assistance. Except where Mr. O'HARA of Michigan. Mr. Speak­ countries will receive 80 percent of our urgent political considerations are in­ er, a major criticism of our foreign aid supporting assistance. volved, aid is given according to develop­ program is its alleged lack of selectivity. These statistics, which illustrate the ment priorities established for each It is said that the program is not se­ very high degree of concentration of country. Careful studies are made of a lective enough in its choice of programs U.S.-aid funds in a relatively small nutn­ country's progress in order to make sure and projects; that the requirements ber of nations, provide one of the best in­ that U.S. aid is achieving maximum re­ which aid l'ecipients must meet are not dicators of the degree of selectivity now sults, and that the country is undertak­ extensive or strict enough; that the pro­ being applied in our foreign aid program. ing satisfactory self-help measures. gram 1$ w~teful and inefficient by the What, then, accounts for the large We are now also encouraging and very, fact that it aids so many coun­ number of countries receiving aid? helping countries to study their prob­ tries; that it has spread itself too thin What is the answer to the allegations lems and to formulate their own devel­ to be ef(ective. These criticisms are that we are giving foreign aid to 107 opment plans. usually backed up with the single sta­ countries? The answer is that 79 coun­ In the case of the Alliance for Progress, tistic that the United Staites iij giving tries and 7 territories, a total of 86, re­ every Latin American country is required foreign aid to about 107 nations of the ceived economic aid in 1.962-this is the to submit development plans to an expert free world. total number of countries and territories committee of the Organization of Ameri­ Some of the criticism is justified, par­ which received U.S. foreign aid from the can States for review and recommenda­ ticularly in hindsight. The aid program State Department. In addition, 5 coun­ tion. has been handicapped because of a lack tries received only Public Law 480 and A third way in which greater selec­ of proper planning and programing. military assistance, 7 countries received tivity has recently been introduced into Recently, however, th~ picture appears only military assistance; 9 countries re­ our foreign aid program is through to have improved consideral:)ly. Great­ ceived only Public Law 480 assistance, agreements on conditions or require­ er selectivity is now being introduced in making 107 countries and territories ments which must be met before aid is the foreign aid program through the use which received, during 1962, some form forthcoming. We labored for many of three major criteria in determining of assistance. years under the mistaken assumption the form and amount of assistance the A large number of the 86 countries that such conditions or strings on aid United States should furnish a given getting economic aid receive only very constituted interference in the domestic country. limited assistance, however. affairs of other countries, and, there!ore, The :first of these is self-help-the ex­ Forty-five nations will receive 10 per­ were wrong. By contrast, it is now rec­ tent to which a country is using its own cent of our total economic assistance ognized that in order for U.S. assistance resources for development. Experience and 7 percent of our military assistance to be effective, agreement has to be over the past 15 years has demonstrated in fiscal year 1964. These 45 countries effective, agreement has to be reached that outside assistance can be effective are for the most part newly independent between the United States and the re­ only if recipient countries provide local countries where our aid consisted chiefly cipient country on conditions which must energy, initiative, and leadership, as well of technical assistance or limited capital be met before aid can be made available. as capital and technical skills. Accord­ loans; 27 of these 45 nations are in This is one of the most hopeful and out­ ingly, the extent of self-help on the part Africa. standing improvements made 1n the for­ of the recipient country is now a , pri­ Although the amount of aid we are eign aid program since the Agency for mary factor in the allocation of U.S.-ajd supplying to these nations is small, it International Development was estab­ funds. serves highly important ends. And the lished in 1961. The second selective criterion is other returns we reap for our small invest­ These, then, are the three means possible sources of aid. The United ments are considerable. Limited aid to through which foreign aid has now been State& 1s not alone in providing capital these 45 nations serves to demonstrate made more selective: First, use of most and technical assistance. our interest in their progress. Small aid money for the concentrated number The success of past aid programs in amounts of aid also help to counter of nations showing the greatest Potential Europe and Japan now enables those na­ Soviet bloc influences or to maintain a for development; second, a more compre­ tions to provide more than 40 percent of U.S. presence pending changes favorable hensive approach to the development of the world's total aid to less-developed to free world interests. a country, including the establishment countries. European nations, for exam­ It is these, 45 nations-receiving less of priorities, through better United States ple, contribute 73 percent of all aid to than 10 percent of our total aid effort-­ and local development planning; and Africa. The availability of aid from out­ which swell the total number of nations third, agreement on conditions which a side the United States-from other na­ receiving economic aid. To stop limited country must meet in order to receive tions or from International organiza­ aid to these nations would sacrifice the aid. tions-is a major determinant in the al­ vital interests of the United States and Selectivity will remain a problem in location of U.S.-aid funds. the free world without producing any the administration of foreign aid. The The third selective criterion is that of substantial savings in the total cost of aid program still serves a number of dif­ U.S. interests. The overriding objective the program. ferent and sometimes conflicting pur­ of all U.S. assistance is to strengthen the Foreign aid is also more selective as poses. This fact, together with the com­ security of the free world. The na­ a result of better planning and program­ tions which are to receive U.S. aid, and ing, both by our Government and by plexities of development and the difficul­ the form and amounts they will receive, recipient governments. For years, one ties inherent in a human undertaking are selected and determined, to a large of the greatest weaknesses of the aid of this magnitude, will continue to make extent, on the basis of the relationship program has been the lack of a compre­ foreign aid less selective than we might of such assistance to the security of the hensive U.S. approach to the problems like. But great enterprises are not al­ United States and the free world. of a country, as well as the lack of plan­ ways tidy and efficient, and although The strict use of these selective criteria ning by the countries being aided. Until greater selectivity is important, with for­ has resulted In a proposed foreign aid recently, most aid has been given on a eign aid as with war, it is the :final result program for 1964 whch shows a high de- project-by-project basis. There was that counts. 15074 CONGRESSIONAL RECORD - HOUSE August 15 Mr. FRASER. I thank the gentleman quality merchandise,- is ~o important. natives in approaching our _continuing from Michigan for his ex_cellent state­ 'I'he intrinsic quality of most U.S. prod­ ~truggle with .the U.S.S.R. The first, of ment on the technique of admi:pistering ucts is second to none. But it is not c;ourse, is surrender, which, is totally un­ our foreign aid program. enough for a product to be intrinsically acceptable to us. Mr. SICKLES. Mr. Speaker, will the sound. . It must also meet the particular The second would be to engage in a gentleman yield? requirements for which it is . intended, nuclear holocaust. In light of the gen­ Mr. FRASER. I yield to the gentle­ and these may be quite different in some eral world acceptance of the limited test man from Maryland. countries than in the United States. And ban agreement that has recently been Mr. SICKLES. Mr. Speaker, at this once sold, products must be satisfactorily negotiated, it seems obvious that nearly time I would like to address a few re­ serviced. the entire world joins with us in reject­ marks with respect to the subject of We have proven we can be a great ing a confrontation in nuclear war.fare foreign aid, particularly as it affects for­ producing nation. Our challenge now is as a solution. eign trade. Although the foreign aid to apply our zeal and inventiveness to The third alternative, which is the one program is not directly responsible for becoming better traders-and show our we have chosen to adopt, is that of wag­ promoting U.S. exports, there is, of willingness to adapt to the varying con­ ing an economic offensive in competition course, a direct tie-in between foreign aid ditions that must often be met in new with the U.S.S.R. and foreign trade. markets. The necessity for the United States to The greatest potential for expanding Foreign aid also helps to promote the pursue a direct economic oft'ensive, is a · our markets in today's world is within export of goods from the most productive result of World War II drastically the very countries we are now helping of all our industries-the American changing the balance-of-power situation with foreign aid. These countries con­ farm. in world politics. Power vacuums were tain more than 50 percent of the popula­ Under Public Law 480, which is closely created in most of Asia, Africa, and the tion of the free world. As they achieve tied into the foreign aid program, a key Middle East by the withdrawal of Brit­ stability and economic growth, a vast purpose is the expansion of international ish and French influence and military market will be created for our industrial trade aniong the United states and strength; Europe, devastated by war, was and agricultural products. friendly nations and the stimulation of not even capable of defending itself. We have just barely scratched the the expansion of foreign trade in agri­ Russian troops had over.run all of East­ surface of the world's demand for u.s~ cultural commodities produced in the ern Europe, and were drawn up on the goods and services. United States. Surplus agricultural com­ line dividing Germany and Austria into What are some of the specific oppor­ modities serve this purpose through the East and West. tunities which our foreign aid program use of local currency proceeds of Public In the several years immediately after offers to U.S. business aside from the Law 480 sales for agricultural market de­ the war, the power balance was in grave obvious opportunity to sell to countries velopment. Other proceeds may be danger of shifting to the Communists. which would lack the necessary foreign loaned or granted for economic develop­ The loss of China to the Communists exchange if they did not have U.S. aid? ment, which in turn is related to the made the situation· even more perilous. Any real expansion of U.S. exports expansion of our export market. Besides the danger of Soviet Russia in depends upon :five conditions. These Europe and the Middle East, there was are: consumer demand, purchasing The aim of foreign aid is to succeed also increasing Communist pressure on power, access to markets, competitive in developing other countries to the point free countries of Asia. prices, and quality merchandise. that it can · eventually be replaced by · In this situation, the United States, Right from the start, the foreign as­ foreign trade. This happened in Europe, which had emerged -from World War II sistance program creates new purchasing where the Marshall plan sparked the as the leader of the free world, was faced power and, in turn, greater consumer de­ economic boom that has once again made either with moving into the power vacu­ mand, by :financing development projects Europe our most important market. It um left by the war, or leaving these areas requiring the importation of goods and also happened in Japan, which is now exposed to Communist attack. services. our second largest customer. It can 'The decision was made to throw U.S. Foreign aid also helps to open up for­ happen, and will happen in other parts power into the breach, not only in Eu­ eign markets to U.S. business. In many of the world if we continue along our rope through NATO and the Marshall of the newly emerging countries the present course. As the world's greatest plan, but in the Middle East through United States has largely been excluded economic power, the United States has the Greek-Turkish aid program, and in from access to markets because of tariff a vital stake in bringing this prospect Asia. The Korean war, which, besides barriers, quota restriction against dollar into full reality. the Berlin blockade, was the major at­ imports, bilateral trading arrangements, I commend the gentleman for. securing tempt made by the Communists to test or existing relationships with European this special order on this timely subject U.S. determination and power, strength­ colonial powers. By requiring U.S. pro­ and I th~nk him for yielding to me. ened our resolve and capacity to stand curement, the foreign aid program can Mr. FRASER. Mr. SpPaker, I want to up to the Communists. open some of these doors. Once U.S. thank the gentleman for that very ex­ More recently, the United States has goods and services have begun to flow cellent and penetrating analysis. I had to come to the defense of nations into these markets, continuing demands think that this statement which the gen­ such as Vietnam, where Communist ter­ will be created for U.S. products. Hav­ tleman has just given us is further proof rorism and subversion are a major threat ing been started through aid, trade will of the need to continue with a strong to security and progress. then be able to continue in the normal and adequate foreign aid program. · Vietnam has its problems. But today commercial manner after the end of the At this time I would like to yield to the in Vietnam the rice:fields are controlled aid program. gentleman from California [Mr. CAM­ by the Government, and the people of Price competition ·is the fourth condi­ ERON]. the villages are beginning to think about tion. Again, foreign aid helps U.S. busi­ Mr. CAMERON. Mr. Speaker, I want increasing their rice yields and sending ness in several ways. By concentrating to thank the gentleman for yielding to their children to school. A year ago on financing project needs or commodi­ me at this time and to join with the sev­ those ricefields were controlled by the ties which U.S. industry can supply on a eral others here in congratulating him Vietcong, and the chief government of­ competitive basis, the foreign aid pro­ on having made arrangements for this ficial in the area could not venture a mile gram, through the requirement of U .s. special order today. Certainly as the outside town unless escorted by troops. procurement, helps to open markets for foreign aid bill will be coming before The Vietcong are still in the hills, but U.S. industry where we can compete on the House next week, this is a timely and they come down only at night, to shout equal terms with other countries. Once necessary thing that Mr. FRASER has done propaganda into the now protected vil­ the quality of U.S. goods and services for the benefit of the membership. lages. has been established, price also may be I plan to address my remarks to the U.S. foreign aid, both material and less of a factor than before. aspects of foreign aid as an antidote · to technical assistance, has been a key fac­ This-is why the fifth of the conditions communism. I have long held the posi­ ·tor in bringing about this change. The essential to market expansion; namely, tion that we really have but three alter- Vietnamese Army, advi_sed by American 1963 CONGRESSIONAL RECORD - HOUSE 15075 officers, has conducted vigorous offensive spent for development purposes rather threat of communism and the conflicts operations against Vietcong jungle than for security or recovery. This was that have been breaking out lend urgency camps, destroying much of their food only a small percentage of the total aid to the foreign aid program as one of the stocks and other supplies. program. The amount spent for develop­ means available to us with which to com­ With U.S. help, villages have been or­ ment increased steadily, until by 1962 bat this threat. ganized into what are called strategic over $4 billion, which is a high percent­ Mr. LINDSAY. Mr. Speaker, will the hamlets. Bamboo stakes or barbed wire age of the total aid program, was spent gentleman yield? were established around each village. for development purposes. Mr. FRASER. I yield to the gentle­ Y'>ung men were given arms and enough Because communism is bred by pov­ man from New York. military training to serve as village erty, hunger, sickness, and lack of hope, Mr. LINDSAY. Mr. Speaker, I thank guards. A radio was placed in each the development side of foreign aid is the gentleman from Minnesota for yield­ village so that army troops could be just as important in fighting communism ing to me. I want to say just a few called if the Vietcong attacked. Mili­ as the security part of the program. words in support of the foreign aid pro.­ tary patrols protect the riceflelds at Stopping the Communists militarily· or gram and in support of the foreign aid harvest time. through internal security measures, is bill and almost all of its provisions as it The strategic hamlet system is proving essential. But it does little good to block will come to the :floor of the House at very effective. Vietcong attacks on the Communist aggression and subversion this session of Congress. defended villages have been beaten off unless steps also are taken to develop . Mr. Speaker, I had intended to speak by villagers themselves with the help of among threatened peoples a spirit of in this fashion during the general de­ army units. And without access to the freedom and resistance to totalitarian­ bate on the :floor of the House on this villages the Vietcong have lost their ism. subject matter and indicate my support sources of food, supplies, and recruits. The determination of a nation to de­ for this program which I think is needed. U.S. foreign aid has provided the f end its independence is the indispensa­ However, I am happy to say a few words barbed wii-e, the weEtpons, and th~ radios. ble ingredient. And nations possess the now at this stage in this special order. The villagers have provided the man­ determination to defend themselves only In view of the fact that special orders power, organization, the energy, and, where there is basic acceptance of things have gone forward today and yesterday, above all, the will to defend themselves. as they are-of the system of life as it it is important that there be some The strategic hamlet program in Viet­ stands. When there is such despair, such minority party statements in support of rejection of the existing system that the foreign aid bill in order to make the nam is going well. It is far too soon to there is no will to defend it, totalitarian­ claim decisive results, but the combina­ ism, and especially communism, is an RECORD absolutely clear that this pro­ tion of aggressive army attacks on the ever-present danger. gram has bipartisan support as it had Vietcong, protected village defense This is the reason the social progress in the past. against Vietcong attack, and a strong trust fund was established in 1961 to I have been a Member of this body for village uplift program to give the vil­ spearhead the new foreign aid program 5 years, and I have consistently sup­ lagers an increasing stake in the prog­ in Latin America. Mass dissatisfaction ported the program. Indeed, in the past ress and independence of their country and unrest had increased to the danger I have voted against amendments which looks like a winning combination. If the point. Immediate and tangible social were designed to cut it back or to so Vietnamese Government continues to and economic progress was essential 1n hamstring the executive branch in the work strongly in this direction, and if order to stave off revolution and totali­ program's administration as to go over the United States continues to provide tarian takeover of vital areas. the borderline into that area of foreign support, Vietnam, which 2 years ago The situation is still critical in Latin policy where the Congress should hesi­ seemed to be ripe for plucking by the America, as well as in other less-devel­ tate to tread. Communists, will be on the way to be­ oped areas of the world. Progress is so In speaking today on behalf of the coming a securely free nation with early slow, and the problems of development program I not only wish to reflect the prospects for achieving economic in­ are so difficult and so vast that the future importance of bipartisan support for dependence. course of events is uncertain. Mean­ the program in general but also I wish In each of these cases, the United while, the gap between the developing to indicate that my own support of the states, as the leader of the free world, world and the developed world continues bill is not doctrinaire, it is not inflexible, was faced with having to use sizable re­ to increase. it may not be permanent, and is done sources to combat communism. We We have been very successful, partly with a high degree of awareness of the would have preferred not to worry about through our foreign aid program, in pre­ weaknesses of the program and its short­ the Communists. There was and is so venting the Communists from taking comings. We know that administration much positive, constructive work to t>e over vulnerable areas of the less-devel­ has been faulty from year to year. We done. But lf we had not grasped the oped world. Now the challenge, while know that the best men have not always nettle, vast areas of the world, now free, continuing to prevent Communist ag­ been recruited, both at home and over­ would be under Communist domination. gression and subversion, is to move ahead seas, especially overseas. We know there If our foreign aid program had accom­ fast enough with a positive and construc­ a.re difficulties with the balance-of-pay­ plished nothing, by way of helping the tive program of development to preyent ments problem that the country is faced developing nations to move ahead, we the Communists from taking over by de­ with. We do not kid ourselves in taking could still look back with deep satisfac­ fault. Foreign aid has been an effective note of the fact that the foreign a.id bill tion on the contribution made by foreign preventative in maintaining security to some extent contributes to the diffi­ aid toward stopping the Communists. against the Communists. Now we must culties of balance of payments. We This was done at no small cost. Few redouble our efforts to use foreign aid as know there- has been a tendency not to people realize that more than a third of an antidote to communism, by counter­ select areas of great priority and to dis­ the $100 billion of foreign aid since World acting the evils of communism through card low priority areas. But we know War II has been direct military assist­ positive good. too that efforts have been and are being ance. Mr. Speaker, I again want to thank ma.de to strengthen and correct each of By helping to preserve the security of and congratulate the gentleman from these deficiencies. the free world, foreign aid has made pos­ Minnesota for the service he has per­ I think some of the criticisms that have sible the positive and constructive steps formed for the House today. · been made of the foreign a.id program, now being taken toward development. Mr. FRASER. I want to thank the which have been valid ones, have been Having helped to secure certain areas, gentleman from California for his excel­ met with sincere and effective attempts we have been able in the past several lent analysis of the role played by foreign on the part of the Administrators of the years to shift from spending foreign aid aid in combating the threat of commu­ program to bring about reforms. I am primarily for security purposes, as we nism. It has been said that even were happy to report that in my judgment, did in the years of the Korean war, to the communist threat to disappear from Mr. Bell, Administrator of the program primarily development purposes. the face of this earth, we would still have under this administration, is doing an rn 1949, only one-tenth of $1 billion a moral obligation to help our brethren excellent job. · I" commend him for con­ of U.S. economic and military aid was around the world. But, certainly, the tinuing the improvements that were 15076 CONGRESSIONAL RECORD - HOUSE August 15 begun under the Eisenhower administra­ country, it seems clear that we can point World Bank first in order to see whether tion in all three of the areas I men­ to this country as an example of the or not the same kind of thing can be tioned-selectivity, administration, and practical value of foreign aid in the cold­ done by an established international the problem of balance of payments. war context. It can be substantiated lending agency before the United States Generally speaking, all of the top men that but for the effort made by the U.S. moves in on the project on a bilateral in the aid program over the past 10 years Government and voluntary groups in or unilateral basis. Nowhere in the act have been high-caliber men who know Guinea to help this young, French­ has there been an additional criteria, what they were doing and who knew the speaking country, a former French which is to canvass the possibilities that weaknesses of the program as well as colony, to establish itself in the com­ the same development loan could be done we, in fact, better. I have been per­ munity of nations, that country may well by private sources within the United suaded in my meetings with Mr. David have gone under and become a Com­ States before committing the U.S. Gov­ Bell, that every effort is being made to munist country. The made ernment to a governmental loan. That see to it that the program is made more a major effort in that part of the world, was the amendment which I offered to selective, that the balance-of-payments and largely through our efforts in the the main body of the Development Loan problem is pinpointed and corrected area of agriculture, education, and Fund section and also to the Alliance wherever possible by seeing to it that health, contrasted with the rather for Progress. buy-American rules are enforced and clumsy Soviet efforts to build a few As I said a moment ago, I was deeply that greater emphasis is placed on loans large and expensive showplaces which gratified that the committee accepted rather than grants. Again, this is a con­ were apparently useless to the people of the amendment and, apparently, at least tinuation of reforms begun under the Guinea, the United States eventually I must assume that, the administration Eisenhower administration. Phaseouts emerged as the country to which the has also agreed that this is a reasonable were then started, personnel was cut le9:dership of Guinea turns for advice, and fair precondition to the granting of down and caliber improved, development gmdance, and council. Soviet interfer­ development loans. loans were emphasized as being far more ence was rejected out of hand. This amendment, I may say very effective than grants-in-aid. We know, too, that in the Sudan frankly, is designed, over a long period I think, too, that the Clay Committee 325,000 people, it is estimated, are being of time-and I suppose it will be a very has performed a most useful service. reached by agricultural programs spon­ long period of time-to phase the for­ From a tactical point of view, the speed sored by the aid program. eign aid program into the nongovern­ with which the Clay Committee report In Ghana several thousand farm fam­ mental arena of the American economy. was adopted by the White House and ilies have been reached directly by agri­ It is designed to gear in the free enter­ made administration policy may possibly cultural programs. In Morocco exten­ prise system to aid objectives. It is de­ result in greater damage to the bill on sive agricultural programs, largely in the signed to bring private, nongovernmen­ the floor of the House by its opponents field of irrigation, have done a good deal tal, managerial, administrative, and than General Clay or anyone else ex­ toward settling several thousand fam­ technical talent to aid objectives as well pected, or wants. That is one reason why ilies on new farms which had never been as nongovernmental resources. I am speaking now. As time goes on we tillable before. You cannot reverse these things over.:. find fewer and fewer friends for the This kind of thing has gone on in night. I am satisfied that adjustments foreign aid program. It is very easy to other countries in the continent of have been made and are being made that speak against it. Africa. If it is pinpointed, if it is man­ will strengthen and pinpoint this pro­ Indeed, it is increasingly popular to aged by people who know what they are gram. Brit, even if I thought it were speak against it. One reason I am con­ doing, technical assistance programs can time to bring the foreign aid program to strained to speak now is that those few be of enormous strength and value in a grinding halt, it cannot be done and people who will speak for the program any country where poverty is a way of should not be done-because any sudderi really have to be heard from because if life and where just a little bit more food, change of that kind in our relations with those few are not heard from there will basics in education, and decent shelter these newly emerging countries, and be nobody to speak for it. over one's head will make the difference combines holding on by their teeth on I am particularly interested in those between a country moving as a respon­ the edge of tyranny, as in southeast aspects of the program that work directly sible member into the community of na­ Asia, would, in my judgment, result in with people; not the great, massive tions and a country which might slip into disaster. That is why I think the pro­ projects which are vastly expensive and the ways of "puppetdom''-if I may coin gram is deserving of support in the which consist of concrete and steel and a phrase-and domination from the House of Representatives this year. which sometimes result in showplaces. Soviet Union. I think there will be a very vigorous I am delighted to be told that those kinds I should like to say in closing, Mr. effort made on the floor and certainly by of projects are being given lower and Speaker, that during the course of the the appropriations route to cut the pro­ lower priority as we move along. hearings on the foreign aid bill the gram down to proportions which are I think it is understood that the most chairman of the committee and the probably unwise. These efforts should useful area of commitment for the United members were gracious enough to listen be examined with great care and, if States is in those areas that deal in the to me for over an hour of testimony. I overdone, they should be resisted. Those basic commodities of life: health, hous­ appeared before the committee in order of us on the minority side of the aisle ing, education, and agriculture. I have to ask for a rather simple amendment in who have watched and followed this seen health being tackled in the subcon­ the foreign aid bill, and I am gratified program with interest over the years and tinent-India and Pakistan-on a per­ to say that the amendment was later who have seen its benefits as well as its sonal visit, and I was impressed with adopted by the ~ommittee, thanks largely shortcomings will be prepared to assist what was being done. The same in the through the efforts of our colleague, the in a bipartisan way to see to it that the Middle East. I have studied a good deal gentleman from Massachusetts [Mr. program goes forward for the benefit of the work in Africa, and one day I hope MoasEl, who saw to it that the amend­ of the United States and of the entire I may be privileged to take a long and, ment was incorporated in the bill. It is free world. I hope, constructive and not too hasty quite a simple amendment, Mr. Speaker, · The SPEAKER pro tempore