DAIRY

Dairy Import Act of 1967 - Jan. 24 Conditions in Dairy Industry March 23 Movement of Butter out of Government storage into Domest i c Commercial Market - Oct. 12 The Butter Subsidy Bill - Oct . 30 8762 CONGRESSIONAL RECORD - SENATE January 24, 1967 By Mr. EASTLAND: S. RES. 56 mand. This necessary surplus, however, S.634. A bill to strengthen the security Resolved, That the Select Committee on dampens prices because it means supply of the United states, lessen a burden on Small Business, in carrying out the duties interstate commerce, and protect the right always will outstrip demand. Milk imposed upon it by S. Res. 58, Eighty-first marketing order areas are geographical of privacy by prohibiting eavesdropping; to Congress, agreed to February 20, 1950, as the Committee on the Judiciary. amended and supplemented, is authorized to tenitolies in which the effects ()f this (See the remarks of Mr. EABTLAND when he examine, investigate, and make a complete constant surplus are alleviated by as­ introduced the above bill, which appear un­ study of the problems of American small and sured prices anived at by general agree­ der a separate heading.) independent business and to make recom­ ment. The alternative would be prices so ByMr.BAYH: mendations ooncerning those problems to the low that a great number of dairy faimers S. 635. A bill to change the name of the appropriate legislative committees of the would be driven out of business. In the lakeshore known as the Indiana Dunes Na­ Senate. tional Lakeshore to the Henry F. Schricker long run this would mean sky high prices SEC. 2. For the purposes of this resolution, to the consumer as a result of very low National Lakeshore; to the Committee on the committee, from February I, 1967, to Jan­ Interior and Insular Affairs. uary 31, 1968, inclusive, Is authorized (1) to milk production. This is the boom-or­ (See the remarks of Mr. BAYH when he in­ make such expenditures as it deems advis­ bust approach that milk marketing or­ troduced the above bill, which appear under able; (2) to employ, upon a temporary baSiS, ders are meant to remedy. a separate heading.) technical, clerical, and other assistants and It is also the type of problem, on an in­ consultants; and (3) with the prior consent ternational scale, that the Dairy Import of the heads of the departments or agencies Act of 1967 is meant to remedy. Ever­ RESOLUTIONS concerned, and the Committee on Rules and increasing imports destroy the balance INVESTIGATIONS INTO THE EFFI­ Administration, to utlllze the reimbursable between supply and demand with result­ services, information, facilities and person­ CIENCY AND ECONOMY OF OPERA­ nel of any of the departments or agencies ing lower prices to dairy farmers. As TIONS OF ALL BRANCHES OF of the Government. more and more dairy farmers go out of GOVERNMENT SEC. 3. The committee shall report its find­ business because of high imports and Mr. McCLELLAN, from the Commit­ ings, together with Its recommendations for lower prices the supply of fluid milk con­ legislation as It deems advisable, to the Sen­ tee on Government Operations, reported tracts. Ultimately, this will mean higher ate at the earliest practicable date. prices for the consumer because the sup­ an original resolution (S, Res. 53) au­ SEC. 4. Expenses of the committee under thorizing the Committee on Government ply of fluid milk will not be able to meet this resolution, which shall not exceed demand, and fluid milk is too perishable Operations to make investigations into $145,000, shall be paid from the contingent to be imported. the efficiency and economy of operations fund of the Senate upon vouchers approved of all branches of Government, which by the chairman of the committee. The adverse impact on domestic milk was referred to the Committee on Rules production of excessive imports was rec­ and Administration. ognized by the Federal Government back (See the above resolution printed in DAIRY IMPORT ACT OF 1967 in 1953 when Presidential proclamation full when reported by Mr. MCCELLAN, 3019 limited the entry of certain dairy Mr. PROXMIRE. Mr. President, to­ products into the United States. Unfor­ which appears under the heading "Re­ day it is my pleasure to introduce for my­ ports of Committees.") tunately, for too long these existing dairy self and Senators JORDAN of Idaho, import quotas have been circumvented YOUNG of North Dakota, LoNG of Mis­ by blatant attempts to doctor dairy prod­ souri, CARLSON, JACKSON, MCGoVERN, STUDY OF CERTAIN ASPECTS OF ucts to escape the letter of the law. For MORSE, CuRTIS, THURMOND, MUNDT, MAG­ example, when butteroil was placed NATIONAL SECURITY AND INTER­ NUSON, MILLER, BURDICK, NELSON, MON­ NATIONAL OPERATIONS under a quota, evasion of the quota took DALE BREWSTER, GRUENING, DoMINICK, the fOlm of butterfat-sugar mixtures. Mr. JACKSON, from the Committee USKA, HART, and ALLOT, the Dairy Im­ The first product of this kind, Exylone, on Government Operations, reported an port Act of 1967. was barred by a regulation applying only original resolution (S. Res. 54) to study This proposed legislation would place to mixtures containing 45 percent or certain aspects of national security and stlict but sensible controls on the im­ more of butterfat. Almost immediately international operations, which was re­ portation of all dairy products contain­ Junex, containing 44 percent butterfat, ferred to the Committee on Rules and ing 5 percent or more butterfat, nonfat started to pour into the country. Administration. milk solids, or a combination of the two. My legislation, as I have already indi­ (See the above resolution plinted in It would do this by permitting imports in cated, tightens existing controls by set­ full when reported by Mr. JACKSON, which an amount equivalent to the 1961-65 ting a 5-percent butterfat or nonfat milk appears under the heading "Reports of average. It would also allow imports to solids limitation on items that can be Committees.") share in any growth in domestic con­ imported into the United states without sumption. Finally, it would give the restriction. This is essential to the sta­ President the power to authorize addi­ bility of the dairy industry at a time STUDY OF INTERGOVERNMENTAL tional imports if he felt they were in the RELATIONSHIPS BETWEEN THE when total imports of dairy products are national interest. However, if domestic 12 times as great as the amount author­ UNITED STATES AND THE STATES market prices were less than parity the AND MUNICIPALITIES ized under import quotas. Secretary of Agriculture would have to In the short run, it might be argued, Mr. MUSKIE, from the Committee on purchase an amount of domestic dairy continually increasing dairy imports will Government Operations, reported an prices corresponding to the amount au­ mean lower prices, even if they result in original resolution (S. Res. 55) author­ thorized to be imported by the Presi­ higher plices over the long haul. Even izing a study of lntergovernmental dential order. this argument does not hold water. In relationships between the United states Why is such a bill necessary? Part of past years each pound of butter anIJ and the States and municipalities, which the answer to this question lies in the cheese imported from abroad has com­ was referred to the Committee on Rules nature of the commodity~ Fluid milk is pelled the Government to purchase an and Administration. perhaps the most perishable farm com­ equal amount of the domestic product (See the above resolution printed in modity produced today. The milk our under the price support laws. This full when reported by Mr. MUSKIE, which children drink cannot be shipped in its means, it is important to note, that under appears under the heading "Reports of fluid form from one continent to another present conditions any advantage the Committees.") without deteriorating substantially. consumer gains through lower import Congress has recognized this perish­ prices is offset by the expenditure of tax able attribute as well as the value of the dollars through the Federal Govern­ STUDY OF THE PROBLEMS OF product by authorizing the creation of a ment's purchase of domestic dairy prod­ SMALL AND INDEPENDENT BUSI­ milk marketing order system. The sys­ ucts which have been displaced by im­ NESSES tem arose out of the economic facts of ports. Thus my bill would cost the Mr. SMATHERS (for himself and Mr. life in the milk industry. Because fluid consumer nothing. Yet it would hold JAVITS) submitted the following resolu­ milk is so pelishable and because It is es­ milk prices at a reasonable level in the tion (S. Res. 56) ; which was referred to sential in the diet of our youth a standby long run. the Committee on Banking and Cur­ supply, or surplus, must always be avail­ Mr. President, I ask unanimous consent rency: able to meet possible increases in de- that an excellent analysis of this issue January 24, 1967 CONGRESSIONAL RECORD - SENATE 8761 the highest gross rate paid to any other ance with section 261 of the AtomiC Energy trict courts of the United States; to the Com­ employee; and Act of 1954, as amended, and for other pur­ mittee on the Judiciary. (3) with the prior consent of the head or poses; to the Joint Committee on AtomiC S.622. A blll to amend the act entitled the department or agency concerned, and the Energy. "An Act to authorize the Secretary of the Air Committee on Rules and Administration, to By Mr. PROXMIRE (for himself, Mr. Force to establish land-based air warning utilize on a reimbursable basis the services, JORDAN of Idaho, Mr. YOUNG of and control Installations for the national se­ information, facilities, and personnel of any ~orth Dakota, Mr. LoNG, of Missouri, curity, and for other purposes", approved department or agency of the Government. Mr. CARLSON, Mr. JACKSON, Mr. Mc­ March 30, 1949, in order to clarify the intent SEC. 3. Expenses of the committee under GOVERN, Mr. MORSE, Mr. CURTIS, Mr. of Congress with respect to the procurement this resolution, which shall not exceed THURMOND, Mr. MUNDT, Mr. MAG­ of communication and power services neces­ $90,000, shail be paid from the contingent NUSON, Mr. MILLER, Mr. BURDICK, sary to carry out the prOvisions of such act; fund of ' the Senate. upon vouchers approved Mr. NELSON, Mr. M LE Mr. to the Committee on Armed Services. by the chairman of the committee. BREWSTER, Mr. RUENING, r . DOM­ By Mr. FULBRIGHT: INICK, Mr. HRUSKA, Mr. HART, and S.623. A blll to give the consent of Con­ Mr. ALLOTT) : gress to the construction of certain inter­ STUDY OF INTERGOVERNMENTAL S.612. A blll to regulate imports of milk national bridges; to the Committee on For­ RELATIONSHIPS BETWEEN THE and dairy products, and for other purposes; eign Relations. UNITED STATES AND THE STATES to the Committee on Agriculture and For­ By Mr. FULBRIGHT (by request): AND MUNICIPALITIES-REPORT estry. S. 624. A bill to provide certain increases (See the remarks of Mr. PROXMIRE when he in annuities payable from the Foreign Serv­ OF A COMMITTEE introduced the above blll, which appear un­ ice retirement and dlsab1l1ty fund, and for Mr. MUSKIE, from the Committee on der a separate heading.) other purposes; and Government Operations, reported the (NoTE.-The above b1ll was ordered to be S.625. A blll to amend title 10, United held at the desk untU February 3, 1967 for States Code, to permit members of the Armed following original resolution (S. Res. additional cosponsors.) Forces to accept fellowships, scholarships, or 55) ; which was referred to the Commit­ By Mr. SMATHERS: grants offered by a foreign government; to tee on Rules and Administration: S . 613. A bill for the relief of Manuel Rod­ the Committee on Foreign Relations. s. RES. 55 riguez-Fernandez; to the COmmittee on the (See the remarks of Mr. FuLBRIGHT when Resolved, That the Committee on GQvern­ Judiciary. he introduced the above bills, which appear ment Operations, or any duly authorized By Mr. MAGNUSON: under separate headings.) subcommittee thereof, is authorized under S.814. A bill to amend section 333 of the By Mr. LONG of Missouri (for him­ sections 134(a} and 136 of the Legislative Internal Revenue Code of 1954 to bring up self, Mr. HART, and Mr. KENNEDY of Reorganization Act of 1946, as amended, and to December 31, 1962, the cutoff point for New York): in accordance with its jurisdiction specified stock and securities acquired by the liquidat­ S. 626. A blll to establish the Office of Om­ by subsection l(g) (2) (D) of rule XXV of ing corporation; to the Committee on Fi­ budsman in the District of Columbia; to the the Standing Rules of the Senate, to ex­ nance. Committee on the District of Columbia. amine, investigate, and make a complete (See the remarks of Mr. MAGNUSON when (See the remarks of Mr. LoNG of Missouri study of intergovernmental relationships be­ he introduced the above b1ll, which appear when he introduced the above blll, which ap­ tween the United States and the States and under a separate heading.) pear under a separate heading.) municipalities, including an evaluation of By Mr. McGOVERN (for himself, Mr. By Mr. BREWSTER: studies, reports, and recommendations made BARTLETT, Mr. BIBLE, Mr. CANNON, S. 627. A blll to increase the membership thereon and submitted to the Congress by Mr. DoMINICK, Mr. FANNIN, Mr. of the Board of Visitors to the Naval Acad­ the Advisory Commission on Intergovern­ METCALF, Mr. MONTOYA, and Mr. emy, and for other purposes; to the Commit­ mental Relations pursuant to the provisions MUNDT) : tee on Armed Services. of Public Law 86-380, approved by the Presi­ S. 615. A blll to preserve the domestic gold By Mr. LONG of Missouri (for himself, dent on September 24, 1959, as amended by mlning industry and to increase the domestic Mr. CARLSON, Mr. HOLLAND, Mr. PEAR­ Publlc Law 89-733, approved by the President production of gold; to the Committee on SON, Mr. SCOTT, Mr. SYMINGTON, and on November 2, 1966. Interior and Insular Affairs. Mr. TOWER) : SEC. 2. For the purposes of this resolution (See the remarks of Mr. MCGOVERN when S.628. A b1ll to amend the antitrust laws the committee, from February 1, 1967, to he introduced the above blll, which appear to provide that the refusal of nonprofit blood January 31, 1968, inclusive, is authorized (1) under a separate heading.) banks and of hospitals and physiCians to ob­ to make such expenditures as it deems ad­ By Mr. SYMINGTON: tain blood and blood plasma from other visable; (2) to employ upon a temporary S.616. A blll for the relief of Albert L. blood banks shall not be deemed to be acts in basis, technical, clerical, and other aSSistants Chapman; to the Committee on the Judi­ restraint of trade, and for other purposes; and consultants: Provided, That the minority ciary. to the Committee on the Judiciary. is authorized to select one person for ap­ By Mr. MAGNUSON (for himself and (See the remarks of Mr. LoNG of Missouri pointment, and the person so selected shall Mr. JACKSON) : when he introduced the above blll, which ap­ be appointed and his compensation shall be S.617. A blll to authorize the State of peRr under a separate heading.) so fixed that his gross rate shall not be less Washington to use the income from certain By Mr. TALMADGE (for himself, Mr. by more than $2,300 than the highest gross lands for the construction of fac1l1tles tor MUSKIE, and Mr. BENNETT) : rate paid to any other employee; and (3) schools and other public institutions; to the S. 629. A bill to amend the Tariff Sched­ with the prior consent of the heads of the Committee on Interior and Insular Affairs. ules of the United States with respect to the departments or agencies concerned, and the By Mr. LONG of Missouri: rates of duty on certain fabrics contalnlng Committee on Rules and Administration, to S.618. A blll for the relief of Dr. Chan­ wool and sUk; to the Committee on Finance. utilize the reimbursable services, informa­ drasekarapurm Narayanan; hls wife, Ya.m.una By Mr. HARTKE: tion, facilities, and personnel of any of the Narayanan; and their three children, Manoj S. 630. A b1ll for the relief of Kenrick departments or agencies of the Government. Narayanan, Vinodh Narayanan, and Pramilla Ha.m.Uton Vernon, Sylvia Louise Vernon, SEC. 3. The committee shall report its Narayanan; to the Committee on the Judici­ Francis Mclaudie Vernon, Carrie Hellouise findings, together with its recommendations ary. Vernon, Richard Seymour Bickham Vernon, for legislation as it deems advisable, to the By Mr. GORE (for himself and Mr. Marion Rosalee Vernon, Marle Elizabeth Senate at the earliest practicable date, but BAKER) : Vernon, and Elvet Anthony Vernon; and not later than January 31, 1968. S. 619. A b1ll to authorize the conveyance S.631. A bill for the relief of Harold Al­ SEC. 4. Expenses of the committee, under of certain lands owned by the United States bert, Lona Sarah, Karen Therese, and Bruce this resolution, which shall not exceed to the State of Tennessee for the use of Alex Arnold; to the Committee on the Ju­ $140,000, shall be paid from the contigent Memphis State University, Memphis, Tenn; diciary. fund of the Senate upon vouchers approved to the COmmittee on Labor and Public Wel­ By Mr. BURDICK: by the chairman of the committee. fare. S. 632. A b1ll to provide for a highway (See the remarks of Mr. GORE when he in­ bridge across the Little Missouri River at the troduced the above b1ll, which appear under Garrison Reservoir; to the Committee on BILLS INTRODUCED a separate heading.) PubJ1c Works. By Mr. MAGNUSON: Bills were introduced, read the first By Mr. PELL: S. 620. A blll to consolldate and reenact S. 633. A bill to promote the foreign policy time, and, by unanimous consent, the certain of the shipping laws of the United of the United States by strengthening and second time, and referred as follows: States, and for other purposes; to the Com­ improving the Foreign Service personnel sys­ By Mr. MANSFIELD: mittee on Commerce. tem of the U.S. Information Agency through S. 610. A b1ll for the relief of Lilliana (See the remarks of Mr. MAGNUSON when establishment of a Foreign Service Informa­ Grasseschi Baroni; to the Committee on the he introduced the above blll, which appear tion Officer Corps; to the Committee OIl For­ Judiciary. under a separate heading.) eign Relations. By Mr. PASTORE (by request): By Mr. METCALF: (See the remarks of Mr. FELL when he in­ S.611. A b1ll to authorize appropriations to S. 621. A blll to provide for certain jury troduced the above b1ll, which appear under the Atomic Energy Commission in accord- trials in condemnation proceedings in dis- a separate heading.) January 24, 1967 CONGRESSIONAL RECORD - SENATE 8763 prepared by the National Milk Producers ture containing 5 percent or more of butter­ cents per pound In Belgium and Luxembourg. Federation be inserted in the RECORD at fat, or nonfat milk solids, or any combination Such prices are maintained by Import levies. of the two. These same nations export butter at prices the conclusion of my remarks. I also ask SEC. 7. The Secretary may prescribe such as low as 20 cents per pound. t' this bill be laid on the table for rules and regulations as he deems necessary Effective import controls are necessary to a onal cosponsors through Friday, for the effective administration of this Act. neutralize the great pressures wblch are February 3, and that the bill be printed SEC. 8. Nothing contained In this Act shall generated by the vast difference In subsi­ in the RECORD. be construed to repeal section 22 of the Agri­ dized. world market prices and the prices The PRESIDING OFFICER (Mr. cultural Adjustment Act or any Import limi­ which public policy demands be received by TYDINGS in the chair). The bill will be tation established thereunder; but the total American dairy farmers. annual quantitative limitations on Imports of received and appropriately referred; and, butterfat and nonfat milk solids prescribed BRIEF mSTORY OF DAIRY IMPORTS without objection, the bill and the analy­ by this Act shall prevail, and all Imports au­ Imports will show an Increase of 567 per­ sis will be printed in the RECORD, and the thorized under said section 22 or any other cent--almost 7 times above 1953-1f U.S.D.A. bill will lie on the desk, as requested by law shall be Included In computing such estimates of dairy products Imports for 1967 the Senator from Wisconsin. total. are realized. Last year Imports showed a The bill (S. 612) to regulate imports startling Increase. Whereas from 1953-1965 of milk and dairy products, and for other The analysis, presented by Mr. PROX­ the increase In Imports was 75 percent, In pUrPOses, introduced by Mr. PROXMIRE MIRE, is as follows: 1966 this jumped to 433 percent. INVASION BY EVASION: IMPORTS AND THE DAIRY The first dairy proclamation under Section (for himself and other Senators), was FARMER received, read twice by its title, referred 22, Issued in 1953, established annual quotas (Published by the National Milk Producers equal to 189 million pounds of milk equiva­ to the Committee on Agriculture and lent In the form of dairy products. In that Forestry, and ordered to be printed in Federation, Washington, D.C.) INVASION BY EVASION year total Imports were 525 million pounds. the RECORD, as follows: U.S.D.A. estimates that In excess of 3~ bil­ S . 612 The most Important dairy farmer need In lion pounds of milk equivalent will be Im­ 1967 Is the strengthening of Import controls ported In 1967. Be it enacted by the senate and House 01 on foreign produced dairy prodUCts. Ever Representatives 01 the United States 01 since quotas were first invoked In 1953 they Import quotas established by Presidential America in Oongress assembled, That this bave been continuously enlarged and eroded. Proclamation No. 3019, effective July 1, Act may be cited as the "Dairy Import Act The one remaining recourse Is legislation. 1953, and milk equivalent (fat basis) of 1967." To achieve remedial legislation will re­ [In pounds) SEC. 2. No Imports of dairy products shall quire the coordinated efforts of every member be admitted Into the United States for con­ association of the National Milk Producers sumption except pursuant to authorizations Product Quota Milk Federation. It will need the wide under­ equivalent Issued by the Secretary of Agriculture In ac­ standing and. support of every dairy farmer cordance with the provisions of this Act. In America. The facts are clear and unmis­ Cheese: SEC. 3. No authorization for Imports of takable. They are summarized In this Cheddar ______2,780,100 'J!l, Uf, 980 dairy products shall be Issued by the Secre­ brochure. Your reading time will be well In­ Blue mold. ______4,167,000 37,800,631 tary which would result In total Imports for vested. Itallan ______9,200,100 73,416,798 consumption In any calendar year of but­ Edam and Oouda______4, 600,200 34,869,616 IMPORT CONTROLS ARE INDISPENSABLE terfat or nonfat milk soUds, In any form, In Total cheese ______'-20-,-74-7-,4-00- 1-1-7-3,-42-1":',-82lj- excess of the respective average annual Effective control of dairy Imports Is Indis­ Butter ______707,000 15,235,800 quantities thereof which were admitted for pensable to dairy farmers and of vast long­ Dried cream ______600 9,300 consumption during the five calendar years range Importance to the general public. Malted______6, 000 16,IlOO l11A1 through 1965. Effective import controls are necessary In Dried wholemllk______7,000 51,fOO 1,807,000 ~. In Dried skim milk ______4. the event that total annual do­ order that farmers may bave an opportunity Dried buttermllk ______496,000 -----700;280 lc consumption of milk and milk to achieve parity prices for their milk and prOducts In any calendar year shall be butterfat. Achievement of parity prices as Total milk equivalent 01 greater or less than the average annual do­ a goal of national public policy Is clearly set quotas______189, «3, 605 mestic consumption of milk and mUk forth In all major agricultural legislation, in­ products during the five calendar years 1961 cluding the Agricultural Adjustment Act of INVASION BY EVASION through 1965, the total volume of Imports 1933, t·he Agricultural Marketing Agreement for such calendar year authorized under Sec­ Act of 1937, and the Agricultural Act of 1949. Quotas Intended to limit entry of dairy tion 3 shall be Increased or decreased by a This parity price goal cannot be attained If products Into the U.S. were established July corresponding percentage. For the purposes large scale Imports are permitted because I, 1953, by Presidential Proclamation 3019. of this Act, the Secretary may estimate such they either will (1) render the price support The proclamation reasonably could have total annual domestic consumption on a program Ineffective, or (2) Involve the gov­ been expected to have established maximum quarterly basis and refiect adjustments of ernment In the purchase of such large vol­ quantities of dairy products which may be such estimates In the levcH of Imports umes of Imported products so as to cause Imported. authorized In subsequent quarters or In the the discontinuation of the program. The Ink on the proclamatiOn was scarcely subsequent year. In computing or estimat­ Effective import controls are necessary to dry, however, before exporters abroad and Ing such annual domestic consumption provide dairy farmers a level of Income com­ Importers within tbe U.S. qulckly discovered under this Act, milk and milk products used mensurate with that received by otber seg­ that Import quotas were easy to circumvent In Federal distribution programs shall be ments of our economy, and to enable farmers and reprisals by the executive branch would excluded. to maintain a strong and progressive industry not result from such circumvention. It was SEC. 5. The President may permit, If be In the face of ever-Increasing costs. Prices soon found that any product--Irrespectlve of finds such action Is required by overriding to farmers for milk and butterfat last reached whether It had ever been Imported or even economic or national security Interests of the parity level In 1952. Since that time existed-could be Imported In unlimited the United States, additional quantities of they bave been considerably below parity. amounts. Such Imports establish a "history Imports of any dairy product. Additional In four of the last five years they bave barely of Imports" which was useful to foreign ex­ imports permitted under this section shall been above 75 percent of parity. porters and U.S. Importers In later establish­ be admitted for consumption under special ment or enlargement of quotas. Effective import controls are necessary also authorizations Issued by the Secretary. No The fh'st overt circumvention of estab­ additional Imports sball be admitted for con­ to assure an adequate supply of fiuld milk and other dalry products for our growing lished quotas Involved the splitting of sumption under this section at a time when "loaves" of Italian-type cheese. The orig­ prices received by dairy farmers for milk on populatl,on, to meet our needs for national defense and security, to meet the critical Inal quotas specified in: original loaves. As a national average as determined by the Sec­ a consequence, Italian-type cheees began en­ retary are at a level less than parity, unless needs of our government for use In foreign nations as an Integral part of our foreign tering the U.S. as "split" loaves. Also, the Secretary shall, at the time such Imports varieties of cheese, not specified In the orig­ are authorized, remove from the domestic policy, and to provide for essential uses within the United States. If Imports are Inal proclamation, entered the market. The market, In addition to and separate from Import quotas as established were not full or other price support purchases and opera­ allowed to impair our production capacity, It cannot be quickly restored. effective since cheese imports outside the tions, a corresponding quantity of dairy quotas exceeded those permitted by a ratio products. The cost of removing such dairy Effective import controls are necessary to of 3 to 2 the first year. products from the domestic market shall be provide an opportunity for U.S. dairy farm­ ers operating In our high-price and blgh .. The tug of war over cbeese Imports con­ separately reported and shall not be charged tinues to this day. At present the big non­ t~ 'Iny agricultural program. wage econOlllY to compete free from inroads :C. 6. "Dairy products" for the purpose of large supplies of foreign products made controlled Item Is Colby cbeese, a product his Act Includes all forms of milk and cheap through subsidy arrangements. In practically identical to Cheddar cheese. dairy products, butterfat, nonfat milk solids, the common market countries minimum im­ Colby cheese Is entering the country at a and any combination or mixture thereof, and port prices for butter range from a low of 70 rate ten times the volume established as a Includes also any article, compound, or mlx- cents per pound In tbe Netberlands to 94 quota for cheddar. 8764 CONGRESSIONAL RECORD - SENATE Janua'ry 24, 1967 When Section 22 of the Agricultural Ad­ The tariff reductions were not correlated fat and nonfat milk solids imported during justment Act was Invoked July I, 1953, Im­ with the programs of the Department of Ag­ the five calendar years 1961-65. 1966 would ports of butter were Umlted to 707,000 pounds riculture and the results were at cross pur­ not be Included In the base because It was annually, but this was circumvented Immedi­ poses. Moreover, ready use by foreign na­ not a normal year. Heavily subsidized ately by the importation of butteroU, a prod­ tions of heavy export subsidies, currency de­ ports of surplus production In foreign uct not previously Imported. After much valuation, exchange manipulations, and simi­ tions, coupled with price increases In s urging and a hearing, the Tariff Commission lar practices operated to render fixed tariff country needed to stop a dangerous decline established an Import quota on butteroU at rates practically meaningless and to require In domestic production, resulted In abnor­ 1,200,00 pounds annually. Total imports of the use of Import quotas. mally large volumes of Imports of evaslon­ butterfat (as butter and butteroil) thus be­ Import quotas were imposed on major type products during 1966. The same con­ came nearly three times as great as Intended dairy products in 1942 under the Second War dition threatens serious harm to American when the 707,OOO-pound quota was estab­ Powers Act. This was done primarily to dairy farmers In 1967, unless Congress acts to lished. keep fats needed In the allied countries from fix a limit on imports under this legislation. Once the quota for butteroil was made being drawn to the high-priced American The 1961-65 average would be an automatic effective, evasion and circumvention of such market, and to help carry out an interna­ control and would not require lengthy and quotas took the form of butterfat-sugar mix­ tional allocation of dairy products. unsatisfactory Tariff Commission proceedings tures. These controis continued In part through as under present law. Exylone, the first product of this type to be 1948. Later, In the 1949-51 period, Imports The controls would be flexible as between imported, was used prinCipally in the Ice of butter were controlled under special leg­ products and countries, subject to the over­ cream trade as a replacement for domestic Islation to permit the orderly liquidation 01 all limitation that the annual total of all cream. The domestic cream, of necessity, stocks the government had acquired under dairy-product imports could not exceed the was churned Into butter for sale to the gov­ the support program. 1961--65 average. This would permit recog­ ernment under the price support program To prevent excessive Imports from result­ nition of any legitimate new dairy products a t lower returns to dairy farmers. ing In unnecessary expenditures under the which might be developed while at the same The Tariff Commission held another hear­ price support program, Congress in 1951 au­ time preventing evasion. Ing. This time, however, It relied upon a thorized import quotas in Section 104 of the Provision Is made to permit the President representative period predating imports of Defense Production Act. These controls were to authorize additional imports In the na­ Exylone, and established a quota for Exylone maintained until 1953, when they were tional Interest. If additional imports are at zero. shifted to Section 22 of the Agricultural Ad­ admitted under this prOVision, at a time In barring imports of Exylone, however, justment Act. when dairy farmer prices are below parity, the regulation appUed only to products con­ Section 22 of the Agricultural Adjustment a corresponding quantity of dairy products taining 45 percent or more of butterfat. The Act was enacted back In 1935 as a part of would be removed from the domestic market. dairy Industry argued that this limitation the agricultural programs designed to pro­ This would permit the market to respond to would merely invite new Imports In mixtures vide fair returns to agricultural producers domestic market forces and help attain the containing less than 45 percent butterfat. as measured In terms of parity prices. Its goal of the agricultural program authorized This happened at once. purpose was to assure that the government by Congress, which Is parity prices In the A new mixture, called Junex, promptly programs would not be rendered ineffective marketplace for American dairy farmers. made Its appearance. Junex contained 44 by Imi>orts. It was materially strengthened The bill also provides that as the domestic percent butterfat and 55 percent sugar. In In 1951 when Congress amended It to state market expands due to population or other 1966 alone, 104.5 million pounds entered the clearly and forcefully that the protection factors, the Import total would Increase In United States, dwarfing the quota on butter which it had authorized for the agricultural the sarne ratio. and butteroil to meaningless terms. ptograms would take precedence over the Thus foreign countries would share In the As a substitute for action under Section trade agreements. growth of the United States market In the 22, the executive branch negotiated with Although Section 22 has been available same relative proportion as our own farmers, Australia, Ireland, and New Zealand, limit­ since 1935, It was not until 1953 that use of but their exports to this country could l"~. ing Imports for Colby cheese, cream and but­ It was made to protect the agricultural pro­ grow by displacing domestic product terfat-sugar mixtures, all nonquota products, grams provided by Congress for dairy farmers. This would prevent serious impairment In 1962 through 1964. These agreements Since that time, the controls set up In our dairy industry which Is much too Im­ could not bind nonslgnatory countries. As 1953 have been continuously eroded because portant to our national economy and na­ Shipments from the latter countries In­ administration of the section has been weak tional security to be sacrificed for concepts creased, the agreements were abandoned. In and Ineffective. of free trade which, so applied to the dairy mld-1966 the Secretary of Agriculture prom­ Particularly in more recent years, evasion Industry, are unrealistic and Impractical. ulgated regulations under the Sugar Act lim­ of the import controls has become a popular Most Important, the new bill would put Iting the importation of products containing and prOfitable pastime for Importers and an end to the subterfuge and evasion prac­ 25 percent and more of sugar. foreign nations. Huge quantities of Im­ ticed under the present Inadequate import This regulation, too, proved ineffective. ports are being brought Into the country In controls. Mlxtures containing 44 percent butterfat, 24 open and flagrant evasion of the import Furthermore, a definite and known level of percent sugar, and 31 percent nonfat milk quotas. imports would be established to which the soUds were at sea before the regulation was These have resulted In millions of dollars market could adjust and on which our own issued. In 1966 Imports of butterfat-sugar of added and unnecessary cost to the dairy farmers and foreign countries could make mixtures displaced a market for U. S. dairy price support program, and they are Inter­ sound future plans. farmers equal to 10 percent of total Ice cream fering substantially with the attainment of A BILL TO REGULATE IMPORTS OF MILK AND DAIRY production. the goal of the program which Is parity prices PRODUCTS, AND FOR OTHER PURPOSES Imports of dairy products thus continued In the market place. Be it enacted by the Senate and House Of to Increase. The U. S. Department of Agri­ "DAIRY IMPORT ACT OF 1967" culture predicts that the total of imports Representatives Of the United States Of The National Milk Producers Federation, America to Congress assembled, That this In 1967 will approximate 3.5 billion pounds after careful study and consultation with Act may be Cited as the "Dairy Import Act of of milk (calculated on a butterfat basis) . members of Congress, developed a new im­ 1967." This level of imports Is 12 times the total port control program which was Incorporated SEC. 2. No Imports of dairy products shall authorized by import quotas. in a blll Introduced last year by Senator be admitted Into the United States for con­ LEGAL BACKGROUND OF IMPORT CONTROLS Proxmire anQ. 21 other Senators. Numerous sumption except pursuant to authorizations In earlier years the dairy Industry In the similar bills were introduced in the House. Issued by the Secretary of Agriculture in ac­ United States was largely self-sufficient, and Legislation has now been Introduced in cordance with the provisiOns of this Act. the small differences In domestio and for­ the new Congress, and the Federation will SEC. 3. No authorizations for Imports of eign prices were offset by modest tariffs. make an all-out fight for Its passage. This dairy products shall be lssued by the Sec­ Following World War I, the butter tariff will not be an easy task, since It must be retary which would result In total imports was increased from 2.5 cents to 12 cents per assumed that there will be strong opposi­ for consumption in any calendar year of but­ pound to reflect Increasing price differentials. tion. The bill should be supported because terfat or nonfat milk solids, In any form, The Tariff Act of 1930 set the tariff rate at It sets a fair guideline under which govern- In excess of the respective average annual 14 cents per pound on butter with corre­ ment and industry can operate. - quantities thereof which were admitted for sponding rates on other dairy products. Al­ Opposition will arise in spite of action by consumption during the five calendar years though these were fixed rates, they operated other nations, such as those In the European 1961 through 1965. effectively for several years. Common Market, to protect their own agri­ SEC. 4. In the event that total annual do­ These tariff rates were subsequently re­ culture, and In spite of tremendous dUfer­ mestic consumption of milk and milk prod­ duced to inadequate levels under the trade ences between our domestic prices and world ucts In any calendar year shall be greater agreement acts. The reduced tariffs were export prices which make free trade concepts or less than the average annual domestj~ unrealistic In that they failed to take Into with respect to dairy products completely consumption 01 milk and milk products d\ account the substantial price differences visionary and unrealistic. Ing the flve calendar years 1961 through 19 which were developing between domestic The legislation proposed would use Il8 a the total volume of Imports for such calen­ and world price levels for dairy products. base the average annual quantities of butter- dar year authorized under section 3 shall be January 24, 1967 CONGRESSIONAL RECORD - SENATE 8765 Increased or decreased by a corresponding On the other hand, cash distributed ministration, to Memphis State Univer­ percentage. For the purposes of this Act, is immediately taxed as a dividend. In Sity. the Secretary may estimate such total an- order to prevent this conversion of cash 'al domestic consumption on a quarterly Mr. President, I realize that we have Is and reflect adjustments of such estl­ into securities to avoid the tax imposed, established procedures for the disposition tes In the level of Imports authorized In it has been provided that stock and of property surplus to the needs of the subsequent quarters or In the subsequent securities acquired after a specified date U.S. Government. I am well aware, too, year. In computing or estimating such an­ should be treated as money. The cut­ that the bill I have just introduced pro­ nual domestic consumption under this Act, off date set in 1954 was December 31, vides an exception. milk and milk products used In Federal dis­ 1953. Mr. President, I wish to indicate why tribution programs shall be excluded. With the passage of time, the cutoff I think an exception is justified in this SEC. 5. The President Play permit, it he date has rendered the section increas­ finds such action is required by overriding instance. An exception is justified first, economic or national security Interests of ingly obsolete. There are few corpora­ because of an urgent educational need. the United States, additional quantities of tions whose securities were all acquired Memphis State University now has an imports of any dairy product. Additional more than 12 years ago. If section 333 enrollment of more than 14,000 students. Imports permitted under this section shall is to have the permanent effect intended The curriculum of the university has be admitted for consumption under special at the time of enactment, it is essential been expanded to meet the needs of the authorizations Issued by the Secretary. No that the cutoff date be advanced. student body, and the student body is additional Imports shall be admitted for con­ It should be emphasized that the ef­ constantly growing. It Is antiCipated sumption under this section at a time when prices received by dairy farmers for milk on fect of this proposal on the revenue is that by 1970 this will be a university of a national average as determined by the Sec­ not a material consideration since it has more than 20,000 students. Memphis is retary are at a level less than parity, unless been noted in reports of the Senate Fi­ one of the large and one of the most the Secretary shall, at the time such imports nance Committee that any revenue loss rapidly growing cities in America. are authorized, remove from the domestic resulting from an updating of section 333 Both the city and the university are market, In addition to and separate from is "negligible." See Senate Report No. truly of importance to the entire mid­ other price support purchases and operations, 781, 82d Congress, first session, 61- South. This is a regional school and is a corresponding quantity of dairy products. The cost of removing such dairy products 1951. rapidly becoming more so. from the domestic market shall be separately In view of the changes made by the Naturally, those who first established reported and shall not be charged to any Revenue Act of 1964 in the rules relating the campus and the physical layout of agricultural program. to taxation of personal holding compa­ the university did not envision-indeed, SEC. 6. "Dairy products" for the purpose of nies, Congress should, in the interests of who could have envisioned, then ?-that this Act Includes all forms of milk and dairy fair administration, provide again the this would become a university of truly products, butterfat, nonfat milk solids, and same opportunity for liquidation of exist­ major proportions. any combination or mixture thereof, and In­ ing holding companies that has been cludes also any article, compound, or mixture Nevertheless, the problem Is upon us. conta1n1ng 5 percent or more of butterfat, or recognized for more than 25 years. It Is not just a local problem but a state nonfat milk solids, or any combination of My bill would provide a reform in our and regional problem as well; therefore, the two. basic tax structure that has long been it is a national problem. SEC. 7. The Secretary may prescribe such needed. Such updating of section 333 rules and regulations as he deems necessary has been widely recognized by such bod­ The urgency of the need, the good pur­ for the effective administration of this Act. ies as the American Bar Association and poses to be served and the need for SEC. 8. Nothing contained In this Act shall the American Institute of Certified Pub­ expeditious action, would justify this ex­ construed to repeal section 22 of the Ag­ lic Accountants. ception to which I have referred. ultural Adjustment Act or any Import Um­ Mr. President, I should like to address tatlon established thereunder; but the total The PRESIDING OFFICER. The bill annual quantitative limitations on imports will be received and appropriately re­ a few remarks to the Senate about the of butterfat and nonfat milk solids pre­ ferred. need for expedition. scribed by this Act shall prevail, and all im­ The bill (S. 614) to amend section 333 There are a number of unused build­ ports authorized under said section 22 or any of the Internal Revenue Code of 1954 to ings on the property at the present time. other law shall be Included In computing bring up to December 31, 1962, the cut­ The university can make considerable use such total. off point for stock and securities ac­ of these buildings, particularly if they quired by the liquidating corporation, in­ are acquired before further deteriora­ AMENDMENT OF SECTION 333 OF troduced by Mr. MAGNUSON, was received, tion takes place. Therefore, upon ref­ INTERNAL REVENUE CODE OF read twice by its title, and referred to erence of this bill to the committee, I 1954 the Committee on Finance. shall hope to appear and request those who share my views in this regard to join Mr. MAGNUSON. Mr. President, I in a request that the committee act introduce, for appropriate reference, a TRANSFER OF CERTAIN PROPERTY expeditiously in dealing with what I re­ bill amending section 333 of the Internal TO MEMPHIS STATE UNIVERSITY gard as an urgent and fully justified Revenue Code of 1954 to bring up to De­ need. cember 31, 1962, securities acquired by Mr. GORE. Mr. President, I intro­ the liquidating corporation. duce, for appropriate reference, a bill and I have asked that the bill lie on the It Is and has been for a number of ask that it lie on the desk for the re­ desk for further sponsorship for the re­ years the established policy of Congress mainder of the day in the event another mainder of the day. I should add that to encourage liquidation of personal Senator wishes to add .his name as a I have spoken to the three Members of holding companies. Provisions to this cosponsor. the other body representing congres­ end were first made by enactment of The PRESIDING OFFICER. The bill sional districts in west Tennessee about section 112(b) (7) of the Revenue Act of will be received and appropriately re­ the bill and have, as an act of courtesy. 1938. Twice thereafter the provision ferred; and, without objection, the bill supplied them with a copy. was restored to permit additional liqui­ will be held at the desk, as requested by I would hope that Representatives and dations within limited periods of time. the Senator from Tennessee. Senators from Arkansas and Mississippi When section 333 of the 1954 code was The bill (S. 619) to authorize the con­ would likewise join in this effort because, adopted it was expressly recognized that veyance of certain lands owned by the as I have said, it Is truly a regional uni­ encouragement of such liquidations had United states to the State of Tennessee versity, soon to become even more so in permanent value and should be made a for the use of Memphis state University, its importance and its magnitude. regular part of the Internal Revenue Memphis, Tenn., introduced by Mr. GoRE Code. See Senate Report No. 1622, 83d (for himself and Mr. BAKER), was re­ Congress, second seSSion, page 256- ceived, read twice by its title, and re­ CONSOLIDATION AND REENACT­ 1954. ferred to the Committee on Labor and MENT OF CERTAIN SHIPPING Section 333 and its predecessors have Public Welfare. LAWS cilitated liquidation by postponing un- Mr. GORE. Mr. President, this bill Mr. MAGNUSON. Mr. President, I 11 disposition by individual shareholders provides authority and direction for the introduce, for appropriate reference, a capital gains tax on securities that have transfer of certain property now known bill to consolidate and reenact certain appreciated in value while held by the as the Kennedy Hospital, a property un­ shipping laws of the United States, and liquidated corporation. der the jurisdiction of the Veterans' Ad- for other purposes. 8766 CONGRESSIONAL RECORD - SENATE January 24, 1967 CERTAIN INCREASES IN ANNUITIES session of the 90th Congress, It Is not antici­ For a number of years the Commit­ pated that a cost-of-living adjustment will tee on Commerce, and others interested FROM THE FOREIGN SERVICE RE­ become elIective for Foreign Service annui­ in promoting the American merchant TffiEMENT AND DISABD..ITY FUND tants until April 1, 1968, and even then marine have been conscious of the need Mr. FULBRIGHT. Mr. President, I equity between Civil Service and Forelr to organize rationally and reenact the introduce, by request, a bill to provide for Service may not be established. multitude of statutes affecting the U.S. cost-of-living increases in the ·annuities ProvisiOns for the establishment of an shipping and maritime programs. payable from the Foreign Service retire­ contl.nuance of equity between CIvil Service The U.S. laws relating to the merchant and Foreign Service cost-Of-living adjust­ ment and disability fund. ments were included in S. 3247, a bill passed marine, Coast Guard, Customs, and ad­ The provisions of this bill are similar by the Senate on October 5, 1966. This bill miralty are collected and organized un­ to those of S. 3247, approved by the Sen­ did not receive House action before adjourn­ der about 30 chapters in title 46: Ship­ ate on October 5, 1966, but not acted on in ment of the 2nd session, 89th Congress. ping of the United states Code. The the House of Representatives. Early action by the Senate on this im­ Bureau of Customs and the Coast Guard I ask unanimous consent to have portant legislation Is urgently requested. have undertaken a comprehensive re­ The Department has been Informed by the printed at this point in the RECORD a let­ Bureau ot the Budget that there would be no vision of about 20 chapters of title 46. ter to the Vice President from Assistant This bill brings up to date the other 10 objection, from the standpoint of the Ad­ Secretary of State Douglas MacArthur II, ministration's program, to the presentation chapters dealing with the U.s. merchant the text of the bill, and certainly explana­ of this draft legislation to the Congress for marine. . tory material concerning it. I ts consideration. Many of the laws are of ancient ongin. The PRESIDING OFFICER. The bill Sincerely yours, Chapter 17, for example, requires cer­ will be received and approp,riately re­ DOUGLAS MAcARTHER II, tain fishermen and masters to sign a ferred; and, without objection, the bill Assistant Secretary tor Congressional written agreement on length of time of Relations letter, and explanatory material will be (For the Secretary of State). employment by season or voyages and printed in the RECORD. provides severe penalties for fishermen The bill (S. 624) to provide certain in­ EXPLANATION OJ' BILL who desert without leave of the master. creases in annuities payable from the The difficulty of relying on the United This bUl Is regarded as emergency legisla­ Foreign Service retirement and disability tion to establish and continue equity be­ States Code in this area has also fund, and for other pUrPoses, introduced tween the Civil Service and Foreign Service prompted a need for consolidation and by Mr. FuLBRIGHT, by request, was re­ Retirement Systems with respect to cost-of­ compilation. ceived, read twice by its title, referred to living adjustments. The project involved the collection the Committee on Foreign Relations, P.L. 89-205, commonly known as the "Dan­ of all merchant marine laws, the reor­ Iels bill", provided a 6.1 percent cost-of-liv­ ganization of the law, and the reword­ and ordered to be printed in the RECORD, Ing adjustment In CIvil Service annuities as follows: elIectlve December 1, 1965. Under an im­ ing of the law after all amendments S.624 were incorporated and repealed sections proved cO!tt-of-lIvlng formuia also In P.L. Be it enacted by the Senate and House 01 89-205, CIvil Service annuitants are receiv­ drafted. Representatives 01 the United States 01 ing a 3.9 percent cost-of-livlng adjustment During the last Congress, the Senate America in Congress assembled, That this elIective January 1, 1967. adopted a resolution authorizing funds Act may be cited as the Foregln Service An­ Under the provisions of the current cost­ to the committee for compilation and re­ nuities Adjustment Act of 1967. ot-living adjustment formuia appl1cable to vision of the maritime statutes. The SEC. 2. Each annuity payable from the Foreign Service annuities, a 4.3 percent In­ committee under this authorization, Foreign Service Retirement and Dl.sabll1ty crease was elIectlve April 1, 1966. Under tho> FUnd on January 1, 1967 shall be Increased provisions ot this same Foreign Service CO' contracted with a private consultant, elIective on that date by 5.7 per centum. No ot-livlng formuia Foreign Service annuita Pike & Fischer, Inc., of Washington, D.C., Increase in annuity provided by this section are not expected to be eligible for another to prepare the initial draft of the revi­ shall be computed on any additional annuity cost-of-livlng Increase until April 1, 1968. sion. A directive was given that no purchased at retl.rement by voluntary con­ The President's Cabinet Committee on Fed­ amendment to the substantive law tributions. eral StalI Retirement Systems recommended should be made unless required by re­ SEC. 3. ElIectlve January 2, 1967, section in 1966 that steps be taken to provide for the cent organizational changes or similar 882 of the Foregln Service Act of 1946, as equitable application of cost-of-livlng annu­ requirements. This work was accom­ amended (22 U.S.C. 1064(b), Is amended to ity adjustments. It Is the objective of this read as follows: bill to match for Foreign Service annuitants plished in an excellent manner and made "Whenever a cost-of-llving annuity ad­ those adjustments provided for Civil Service available to the committee on schedule justment is made In annuities payable from annuitants In December 1965 and January in December of 1965. The draft was the Civil Service Retirement FUnd pursuant 1967 and to provide that future cost-ot-lIv­ printed, after careful review by the com­ to 5. U.S.C. 8340, as amended by P.L. 89-205, ing annuity adjustments for Civil Service mittee staff, and distributed to Govern­ such increase shall apply In the same man­ annuitants will trigger identical adjustments ment agencies, maritime industry, labor, ner to annuities payable from the Foreign for Foreign Service annuitants. Service Retirement Fund." and interested persons generally. Nu­ The 4.~ percent cost-of-living annuity ad­ merous comments were received by the justment received by Foreign Service annui­ The letter and explanatory material tants on April 1, 1966 lett them 1.8 percent committee from all segments of the mer­ presented by Mr. FuLBRIGHT are as fol­ below the 6.1 percent cost-of-living annuity chant marine and from all agencies that lows: adjustment received by Civil Service annui­ have an interest and responsibility for DEPARTMENT OF STATES, tants elIective December 1965. By adding our merchant marine policy. On the Washington, January 6, 1967. this 1.8 percent adjustment to the 3.9 per­ basis of these comments, legislation was THE VICE PRESIDENT, cent adjustment which became applicable to prepared which I introduced in the sec­ U.S . ~enate . Civil Service annuities on January 1, 1967, we ond session of the 89th Congress. DEAR MR. VICE PRESIDENT: Enclosed is draft arrive at the total 50.7 percent increase sought legislation to provide cost-of-llving Increases in this bill. The bill received wide support and was in ann\lities payable from the Foreign Service subsequently passed by the Senate. Retirement and Disability FUnd that would COST ESTIMATES establish and continue equity between the However, the House of Representatives The first year cost of this 5.7 percent For­ failed to act upon the bill before ad­ CIvil Service and Foreign Service retirement systems with respect to cost-of-lIvlng adjust­ eign Service annuity increase wouid be journment. ments. $565,000. The PRESIDING OFFICER. The bill A recommendation to this end made by This compares to a first year cost of will be received and appropriately the Cabinet Committee on Federal Staff Re­ $67,000,000 for the 3.9 percent Civil Service tirement Systems was endorsed by the Presi­ annunlty increase which became elIective referred. January 1, 1967. Increases In the unfunded The bill (S. 620) to consolidate and re­ dent on March 7, 1966. Under the current provisions of the cost­ liabil1ty for the two systems are as follows: enact certain of the shipping laws of the Increase in unfunded liability: United states, and for other purposes, of-living adjustment formula applicable to Foreign Service annuities, adjustments now AnnuityFS) ______increase (5.7 percent .7,200,000 introduced by Mr. MAGNUSON, was re­ lag 5.7 percent behind adjustments that have ceived, read twice by its title, and re­ been made in CIvil Service annuities. Unless AnnuityCS) ______Increase (3.9 percent 739,000,0 ferred to the Committee on Commerce. this proposed bill Is enacted early in the 1st 84368 CONGRESSIONAL RECORD - SENATE March 23, 1967 Mr. CASE. Mr. President, because the PAUL DOUGLAS-CONSCIENCE OF THE SENATE will be in private life, "very tall timber" Senator from New York [Mr. JAVITS] is Mr. NELSON. Mr. President, Paul in truth. He has not fallen, however, necessarily absent, he has asked me to Douglas brought so many different things even though he is no longer here. True '"'lake the following statement,. which he to the Senate that-it is difficult to single to his long career of public service, of ,s prepared: out anyone. First of all, he was an contributing to the uplifting of the life STATEMENT BY SENATOR JAVITS. READ BY educator-a distinguished economist and of the Nation he loves, he is continuing SENATOR CASE political philosopher-and I think any to perform services to his country. Mr. JAVITS. Mr. President, I Jom reading of American history will show I wish him many long and rewardir g with other Senators this morning in how much our American institutions years ahead. We need Paul Douglas and paying tribute to the distinguished for­ have depended on such men. Much of men like him in all areas of our society. mer Senator from TIlinois, Paul Douglas, the progress we have made in the past His efforts will, I am sure, bring fort:l on the occasion of his 75th birthday. two decades rests on the ideas and the in­ continuing good for those for whom he During his outstanding career as a tellectual stimulatioa provided by him labor.s, wherever he goes. Member of this body, he often provided and by other distinguished educators. Mr. PELL. Mr. President, today is the guidance and leadership to those of us In addition he was a military man, who 75th birthday of Paul Douglas, and I particularly interested in human rights. distinguished himself in combat and can think of no man who deserves a His role in molding and gathering sup­ showed that philosophers also can be happy 75th birthday more than he. port for civil rights legislation is well battlefield heroes. Long before I came to the Senate, I ad­ known. During the years when fighting He also was a Chicago alderman, and mired Paul Douglas. And coming to the for that cause was a lonely struggle, Paul to me there was always something sig­ Senate and having him as a friend here Douglas continued to work diligently, nificant in the fact that this gifted in­ made me realize how correct I had been protesting every effort to sidetrack the tellectualleader would be willing to serve in th.at admiration. bills and leading the move to change his city in the rough and tumble ward His contributions show not only the rule XXII. It is fitting that he played politics of city government. Paul. Doug­ theory, but also the practice of good gov­ such an important role in the passage las could undertake any assignment. No ernment, for he practiced what he of the landmark laws which are now on job was too big for him, and none was too preached. His example was or:e that we our books. small. could all well emUlate. He was brave not His scholarship and practical wisdom Then, of course, he was a distinguished only in the tenacity and forthrightne.ss were demonstrated time and time again U.S. Senator for 18 years, where he was with which he .advanced his ideas, but on the Joint Economic Committee, on able to draw upon this exceptional back­ his physical bravery is self-evident, ., which I had the honor to serve with him. ground and make a magnificent contri­ seen from his having volunteeref for I was particularly pleased, therefore, bution to his country and to the world. combat duty as a marine at 50 years Gf when he recently accepted a teaching For all his great contributions, some E.ge. post at the New School in New York. I of which still lie in the future, I think I admire him, like him, and wish him know other citizens of my State share my history will remember him best as the the happiest of birthdays. pride in having him as a part-time New conscience of the Senate during a time Yorker. of testing for our Nation. Life moves To paraphrase his successor, Senator along very swiftly. Men in government CONDITIONS IN THE DAIRY CHARLES PERCY, I hope each of us will be are constantly under pressure. We are INDUSTRY as fine and distinguished a Senator as constantly reminded that we must be Mr. MONDALE. Mr. President, I ask 'aul Douglas. "practical," that lofty goals are not at­ unanimous consent that there be in­ Mr. PROXMIRE. Mr. President, at tainable, that the world is built on com­ serted at this point in the RECORD a very the request of the senior Senator from promises and coalitions. In this setting, important letter which the distinguished Connecticut [Mr. DODD], who was called a towering figure such as Paul Douglas­ junior Senator from Wisconsin [Mr. out of town today, I have been asked to philosopher, war hero, alderman and NELSON] wrote to the 'Secretary of Agri­ make the following statement, which he statesman-can render an incomparable culture regarding the virtually scandal­ has prepared: service by pointing out that there is a ous condition of dairly farmer income in STATEMENT BY SENATOR DonD, READ BY higher road our Nation can travel toward the Nation, and particularly the great SENATOR PROXMJRE the future. upper Middle West. Mr. DODD. Mr. President, I join to­ He lifted the eyes and the minds of the There being no objection, the letter day with the Senator from Wisconsin Senate to the higher goals. He helped was ordered to be printed in the RECORD, [Mr. PROXMIRE], the Senator from Illi­ to point the Nation in the direction of as follows: . nois [Mr. PERCY], and other Senators in truth and wisdom. He taught us that MARCH 22. 1967. paying tirbute to former Senator Paul we could keep our feet on the ground and DEAR SECRETARY FREEMAN: The mnk hold­ Douglas on his 75th birthday anniver­ still reach for the stars. He is a true ing action of the National Farmers Organi­ sary. American hero. zation in 25 states and the nationwide I consider Paul Douglas to be one of the BEST WISHES TO SENATOR PAUL DOUGLAS ON HIS Farmers Union campaign to stop buying new most outstanding and distinguished men 75TH BIRTHDAY, SUNDAY, MARCH 26-HIS farm equipment and automobnes are dra­ to have ever served as a member of this COMPANIONSHIP AND LEADERSHIP ARE MISSED matic demonstrations of the farm unrest body. Mr. RANDOLPH. Mr. President, it is throughout the country-and particularly in the Dairy industry. It was Paul Douglas who led the fight indeed a privilege to join other Senators As I am sure you realize, these are not the for Civil Rights legislation when it was in extending to former Senator Paul frivolous acts of a handful of malcontents. not popular to do so. And to him much Douglas sincere best wishes on hi.s forth­ They are the VOluntary actions of two groups of the credit must go for the laws recently coming birthday. of the finest farmers in America. They are enacted in this area. It has been a source of pleasure for ::>11 trying desperately to tell the country that All through his public life, he has of us who served so long with that splen­ low dairy prices are driving them to bank­ always been the spokesman and cham­ did American in the Senate to nave ruptcy. pion of the little man. His ideas on con­ known and worked with him. I want Tragically. the American consumer Is not sumer legislation have served as the him to know that his gallant leadership in the United States who are receiving less in so many vital areas is sorely missed aware that the farmers are the only group model for much of the work that has in the United States who are receiving less already been done to protect consumers. by his friends. money for their labor than they were 20 The pending truth-in-Iending bill, which Paul Douglas gave of his warmth, his years ago. As you pointed out in your speech I have cosponsored is the product of experience, and his wisdom to a great last week in Oklahoma City, today's farm his labors. degree-whether they agreed or did not priCes are nine percent less than they were In conclusion Mr. President, I would agree with his position.s. I recall now in 1947. The dairy farmer still only gets like to add that I consider Paul Douglas the feeling of sadness on election eve 8-10 cents per quart of milk he produces to be one of the most honest and forth­ when Eric Sevareid, in commenting on while the housewife pays three times that much on the retan market. right men I have ever known. the TIlinois senatorial race, said wist­ In the last 15 years, the number of farms I salute him on his birthday and wish fully, "Some very t.all timber is falling selling whole milk nationally has dropped him continued good health and hap­ tonight." from more than a million to some 500,000 piness. Paul Douglas was, in the Senate, and today. Current reports from Wisconsin in- March 23, 1967 CONGRESSIONAL RECORD - SENATE 84367

As a teacher, scholar, author, adviser, Paine, and Adams, of whom President the proper solution of a problem, he was politician, and soldier, he has not always Kennedy said: . always fair in his actions and willing to been the most comfortable and com­ Books' were their tools, not their enemies. consider all aspects of an issue. His forting colleague. His conscience is too In the golden years of public service, they efforts to achieve a better land in whir' strong fer him to be easy on himself or created the link between the American to live have created for him a lasti. on the rest of us. But because of his scholar and the American pOlitician. place in the history of this body. qualities of compassion and toughmind­ Paul Douglas is a descendant of this It is a pleasure to take part in the ness, millions of Americans have gained tradition, and he is a tradition himself. recognition of Senator Paul Douglas, better and more meaningful lives. How many times did Paul Douglas and I wish him a very happy birthday. On behalf of my constituents, who re­ stand alone, before the Senate and the Mr MOSS. Mr. President, it is not gard Paul Douglas as a State of Mainer, Nation came to the realization that his often that a man becomes a legend in his I wish him a happy birthday and God­ position was just and right? How time. But in my opinion, Paul Howard speed in his new endeavors. In addition, many countless da s and nights did he Douglas, the former Senator from Illi­ for myself, I say thanks for his inspira­ spend in this Chamber, pleading the noiS, has achieved that special kind of tion, his challenges, his leadership, and cause of those who were not represented fame. I am glad that we are taking time his friendship, which have meant so and calling for policies that a nation in the U.S. Senate, on the occasion of his much to me in the Senate. could not yet grasp? 75th birthday, to tell him how much we Mr. JORDAN of Idaho. Mr. Presi­ He was alone in 1956 fighting for civil admire and respect him, and to thank dent, I join my colleagues in congratula­ rights, and his efforts drew six votes. him for the great contributions he has ting Paul Douglas on his 75th birthday Six votes on the issue that was to domi­ made toward a better and more tolerant anniversary. nate a decade, an issue on which other America. It was my pleasure to serve with him men came to build their futures when it The Paul Douglas legend has many on the Joint Economic Committee, where was acceptable to do so. He was alone facets. It has grown up around his im­ he served, in alternate years, a chairman. 10 'years ago with his medicare bill, on passioned battle against poverty and ig­ Paul Douglas is a man of strong convic­ an issue that men rely on today as proof norance and injustice. To this battle he tions. His remarkable career as teacher, of their concern for the elderly. has brought his towering intellect, his soldier, and Senator has provided the In 1958, in the midst of the second of great skill as a debater, his eloquence, his background for the meditations of a keen the three recessions of that decade, hI' courage, his integrity, and his deep un­ mind to forge ideas that carry weight was calling for a tax cut to free the derstanding of both social and economic and influence. I shall always admire his energy of our economy and return men issues. He has won his battle again and great courage in defending the truth as to work. He was unheeded, yet men again, and he is widely ·revered and re­ he sees it. He is a strong man-both take credit today for their wisdom in spected and cherished in the country to physically and intellectually-but with supporting the tax cuts of the sixties. which he has given so much. that strength there is also an innate When I first came to the U.S. When I first came to the Senate, as a gentleness and amiability. I hope he en­ Senate in 1963, Paul Douglas was al­ new Member from Utah, Paul Douglas joys many, many more birthdays. ready an institution, a legendary figure was already burdened with the many Mr. PROUTY. Mr. President, I wish to in the political life of our Nation. I have causes which he made his own. But he join my colleagues in extending to Paul watched him with great respect and ad­ was generous with his time in personally Douglas every good wish on his 75th miration. I looked to him for guidance advising me, and I shall always be grate­ birthday today. and counsel. ful to him for helping me through the His inquiring and provocative mind But he has become something more to first weeks and months when I was U' and his outstanding ability had a lasting me than a legend. I have come to un­ accustomed to the ways of the U. impact on the course of major legisla­ derstand what this great American Senate. tion which will ever be appreciated by meant to the Senate and to us, his And so to my former colleague and the writers of the history of our genera­ Democratic colleagues, and indeed to great friend, I wish a very happy birth­ tion. the Nation. Paul Douglas is our bench­ day, and many more of them. He is one Paul Douglas and I are, of course, of mark-for integrity, for courage, for vis­ of the important men of our times. different political "faiths." We differed ion, for a sense of humanity and common Mr. TYDINGS. Paul Douglas is an often on some legislative matters, but we dignity and human warmth. He ha.s all extraordinary public servant. Integrity agreed frequently on others. those qualities we associate with youth: and breadth of vision have been the key­ Our work on different committees in energy, enthUSiasm, optimism, and faith notes of his l'emarkable career. John the Senate prevented our working closely in his fellow man. But he also has the Kennedy has said: on some matters; but we tried to cooper­ additional qualities of wisdom and un­ Being ready Is what really matters-being ate in other areas of mutual interest. derstanding gained through the years ready to meet any challenge, to assume any Basically, however, whether as an ad­ and he offered those qualities to those of responsibility, to lose fear for ourselves in versary or as an ally, Paul Douglas is us new to the Senate. an abiding concern for the common good. first and always a very warm and This Sunday, Paul Douglas will be 75 pleasant human being. years old, as active in his private life as Paul Douglas has been ready to fight It 4s this kind of person-the Paul he was in public life. He still serves his a host of battles for the common good. Douglas kind of person-who, I think, Nation, and he has returned to the class­ He graced this Chamber, and his con­ enjoys birthdays. It is with sincere room to again serve our Nation's young. tinued activities as public servant and affection that I wish this, his 75th, to be Mr. President, I join with my col­ teacher will grace our land. I am hon­ a happy one. leagues in saluting Paul Douglas. We ored to join in the tribute today to Sena­ Mr. KENNEDY of Massachusetts. wish him well. tor Douglas on the occasion of his 75th Mr. President, Paul Douglas is a moral Mr. LONG of Missouri. Mr. President, birthday. force in our time. His character and I welcome this opportunity to join with Mr. McGOVERN. Mr. President, I am courage are standards by which other· other Senators in recognizing the con­ pleased to join with my colleagues in men may be measured-and there are tributions of Senator Paul Douglas on saluting our distinguished friend Paul few men who meet the test. There was the occasion of his 75th birthday. Douglas on his 75th birthday. no other man in the U.S. Senate or in Throughout his 18 years in the Senate, Senator Douglas is one of the wisest private life today that I would rather his dedication to the principlt's and goals and most compassionate men ever to emulate. He brought his wisdom, his he espoused was an inspiration to all. serve in the U.S. Senate. Beyond that patience. his perserverance to the I enjoyed the privilege of serving with he is a man with a sparkling sense of U.S. Senate and our Nation is better Senator Douglas on the Committee on humor, sharp wit and, a profound grasp for it. Banking and CUrrency. His philosophy .l)f history. I have personally appTe­ Paul Douglas, the intellectual, the and interest in the problems of the cities ciated his many kindnesses and words of teacher, the soldier, the politician. and economic conditions in the United encouragement to me. These were the activities of the men in States are reflected in many of the ma­ I wish him well as he continues public life who framed our Constitu­ jor housing and banking laws. serve as a wise teacher and a dedicated tion-men like Jefferson, Hamilton, Whenever he differed with respect to citizen. 815512 CONGRESSIONAL RECORD - SENATE October 30, 1967 for breaking With tradition and getting us There would be no government purchases pacity utilization and rising unemploy­ into it. or storage except to the extent that the Sec­ ment levels. He says "it has always been axiomatic that retary might Wish butter to fill government we must exert our power offshore and must program requirements. The present economic dilemma is often "lever 8llow ourselves to get sucked deeply Mondale called attention to the fact that simplified as a guns and butter trade of!. nto the mainland." Where does this piece during World War II a similar program maIn­ But, we can have both-if returns to ot history come from? U.S. forces brought tained mJlk production to meet wartime investments justify the commitment. the decision in World War I, but;. there is no needs. Prices to plants and consumers were Government policies which misallocate record that they remained 'in boats afioat in fixed at relatively low levels and payments resources by employing unrealistic in­ the North Sea. Did the D-Day invasion of were made through plants to encourage dairy vestment evaluations must be eliminated. 1944 really not happen? Were the Greeks and farmers to maintain their production. One area in which Government policies the South Koreans stimulated to keep their In 1945, while this program was in effect, independence by armies of Americans cheer­ the per capita consumption of butter was have created significant dislocations is ing from offshore? This is a world of dreams nearly 11 pounds. At present prices and com­ the huge and expensive public works pro­ fashioned to fit a thesis; not a thesis deSigned petitive conditions commercial consumption gram. Government cost-benefit analysis to fit the world. of butter is scarcely 5.5 pounds. has employed what economists term an Mr. L. says that we are fighting a "war to One of the oldest economic concepts of the unrealistically low discount rate. The exchange casualties with the inexhaustible dairy industry is that butter is the economic result has been gross overinvestment in masses of the Asian continent." By my count balance wheel. A strong butter markllt is public works projects as well as increas­ we are a nation of nearly 200 mUlion people necessary for the maIntenance of the prices ing inflationary pressures-because these and we are fighting a nation of 17 mUllon of fiuid milk and other dairy commodities for people with Its quarter-million recruits In all daIry farmers. A surplUs of milk-fat above low-return projects compete for scarce the South. It may be that Lippmann has pre­ immediate market requirements for other resources with many other higher return dicted China would come Into the war so products is manufactured into butter. investments-and lower economic often that he has persuaded himself that it Land O'Lakes spokesmen note that figures growth. is a fact. show that as the spread between the price However, the picture seems to be The degeneration of the "debate" on Viet·· of substitutes and butter widens, butter con­ changing. Given a choice between a tax nam is a unilateral act. The Irrational little sumption drops. increase and lower public works expendi­ mob who assaulted the Pentagon (fewer, In call1ng for the passage of the Mondate tures, the public would opt for spending by the way, than the number of young bill, Land O'Lakes notes that the main prob­ Americans who volunteered for the armed lem of the dairy Industry is butterfat. They cuts. The slats of the pork barrel are fall­ services in the same month) and those re­ believe that Senator Mondale's bill Will move ing off; the long-used argument of polit­ spectable pundits who provide them With a butter into the domestic consumer market, ical suicide by advocating public works theoretical justification, have to de-escalate. benefiting the farmer With a greater income budget slashes is proving untrue. Nobody else has escalated. and the consumer With a lower retail price According to an article in last Friday's for butter. Wall Street Journal: A similar program of direct consumer sub­ The old fashioned pork barrel seems to be THE BUTTER SUBSIDY BILL sidy on butter in Canada has been very suc­ suffering a decline in relative esteem. cessful in increasing the per capita con­ Mr. MONDALE. Mr. President, the sumption of butter over the past few years. The voter is realizin!l" the need for some Land O'Lakes Creameries, Inc., one of sort of Government spending priorities. the largest processors of dairy products Budget cuts cannot be indiscriminate. in the world, has given strong support ALEXANDER WILEY There must be some system to show rela­ to S. 2527, which I introduced a short Mr. FULBRIGHT. Mr. President, it tive payoffs of alternative proposals. time ago in the Senate. I ask unanimous was with sorrow that 1: learned of the Congress must act as soon as possible to .nsent that an editorial, contained in death last week of Alexander Wiley, a rectify policies which justify wasteful in­ leir October 1967 publication Smoke good friend, a colleague of many years, vestments. And Congress must also es­ ignals be printed in the RECORD. and former chairman of the Committee tablish a rational and realistic ordering There being no objection, the editorial on Foreign Relations. of budget needs. was ordered to be printed in the RECORD, As chairman of the committee from I ask unanimous consent that the Wall as follows: Street Journal article entitled "Passing LAND O'LAKES SUPPORTS BUTTER 1953 to 1955, I knew Alexander Wiley as a hard-working, conscientious, and fair Up the Pork," be printed in the RECORD. SUBSIDY Bn.r. There being no objection, the article Land O'Lakes Creameries came out with leader. He enjoyed hard struggle in sup­ port of his beliefs, but he never stooped was ordered to be printed in the RECORD, strong support for the bUl Introduced today as follows: by Senator Walter F. Mondale (D-Minn.). to unfair or dishonest taetics. His willing­ The bill would empower the Secretary of ness to give fair treatment and hearing PASSING UP THE PORK: LEGISLATORS, HOME Agriculture to encourage the movement of to those who espoused positions con­ FOLK QUIETLY ACCEPT FREEZE ON PUBLIC surplus butter Into commercial domestic WORKS PLANS-MANy AGREE THE PET PROJ­ trary to his own was one of his most ECTS SHOULD YIELD TO ECONOMy-8cHOOL consumption instead of Into government admirable qualities. storage by effecting a reduction In prices to Am Is STILL SOUGHT-BUT SOME CONTINUE consumers by payment made to processors Alex Wiley was a man of warmth and To FIGHT of butterfat used In butter. deep affection. He loved his family, his (By Arlen J. Large) Lank O'Lakes supports the Mondale bill, Senate, and his country. WASHINGTON.-A $368,000 contract for an according to D. H. Henry, General Manager, His bouncy step, often heard in the anti-erosion job on a beach at Hunting because they believe that dairy farm Income corridors of the Senate even after de­ Island, S.C., Is on the list of public works could better be strengthened by providing parture, will be missed. ordered "frozen" by President Johnson In the payments to processors, which would make Government's current budget squeeze. possible a decrease in the consumer price of I offer my condolences to his wife, "Local interest is high," warns the Army butter-actually a "consumer subSidy". Dorothy, and the members of his family. Corps of Engineers In its confidential inven­ Land O'Lakes believes that the Senator's . tory of the frozen projects. "Efforts have ex­ bUl wUl prevent butter from piling up In gov­ tended over several years with local money ernment hands and enable butter to move in "PASSING UP THE PORK"-A SEN­ now available. Considerable pubHc criticism domestic markets. SIBLE APPROACH TO BUDGET anticipated." Under Mondale's bill the existing dairy CUTTING Yet South CaroHna's two Senator so far price support would be continued With the have heard no cries of outrage from the area, Secretary of AgriCUlture announcing the Mr. PROXMIRE. Mr. President, re­ and neither has the Congressman from that price support level per hundred weight of cent congressional moves tend to district, Democrat Mendel Rivers. "The peo­ mlik to the dairy farmer in the same man­ strengthen the feelings of those of us ple down there are wllling to take their ner that he does With the current price-sup­ who say that public economic policy is medicine," says Mr. Rivers. port program. the key to current economic ills. More The largest project on the Engineers' freeze But this bill ar' - a new feature. If com­ people-lawmakers and constituents Hst is an $8.2 million contract for construc­ ~ become sluggish, this alike--are coming upon the dicotomy he­ tion of the Rend Lake Dam in southern Illi­ \ble the Secretary to tween what is happening in the Govern­ nois. The home folks aren't in revolt, reports But, instead of pur­ ment sector and what is going on in the Democratic Rep. Kenneth Gray, "because narket to support the I've assured them that it's only temporary; \tly, he coUld reduce private sector. They see Government con­ the President doesn't intend to stop the Tage the purchase of tinuing to undertake expensive but low­ project." y consumers. Con­ return projects, at the same time that Both Reps. Rivers and Gray are quick to have the benefit of predictions multiply of an impending in­ stress the great worth of these vital projects, flationary spiral accompanied by low-ca- and both think the freeze is a bad mistake. October 30, 1967 CONGRESSIONAL RECORD - SENATE S 15511 The other bill I am particularly interested interest. The League does not believe that the eral escalation of America's domestic in concerns the North Cascades National choice lies between a national park on one critics in his Sunday offering in the Park in washington. I am familiar with this hand and national forest lands on the other­ Washington Star. His column, in fact, area and it is extremely rugged and beautiful. both are needed. Rather, the League believes makes a good point: that the dissenters Fortunately little timber is involved for so that the Country can afford to acquire di­ much of it is near or above the timoer line. rectly the lands necessary to establish the in our own country have been so carrie I am convinced that it could be developed as National Park approved by your Committee. away with their own arguments that th a park so that many could enjoy it and I The League's opposition to one provision have convinced themselves, that they know of few natural areas that deserve to be of S. 2515 in no way detracts from our eval­ tailor facts to fit their preconceived no­ saved. uation of the Committee's accomplishment in tions, that their dissent feeds on itself Sincerely, reporting out this Important measure. to grow ever larger in its irrationality. EWART M. BALDWIN. Sincerely yours, - They have caused a general degeneration J. W. PENFOLD, MOUNT ANGEL COLLEGE, Conservati on Director IWLA. of the so-called debate over U.S. policy, Mount Angel, Oreg ., October 25, 1967. Mr. President, and seem to be debating, Senator WAYNE MORSE, SALEM, OREG., not the administration, but a bogey man U.S. Senate, October 26, 1967. of their own making. Washington, D.C. Senator WAYNE MORSE, Mr. President, I ask unanimous con­ DEAR SENATOR: Please support the general Senate Office Building, sent that Howard K. Smith's column, plan outlined by the Senate Interior Com­ Washington, D.C.: "The Unfair War Dissenters," be printed mittee regarding the Redwood National Park Please support acquisition of Redwood (S. 2515), but, if possible, try to increase the' National Park by purchase rather than ex­ in the RECORD. size to the least 70 ,000 acres. We urge you, changing national forest lands. There being no objection, the article also, to vote to keep the Exchange of the OREGON STATE RIFLE ASSOCIATION. was ordered to be printed in the RECORD, Northern Redwood Purchase Unit in the plan. as follows: We feel that conservation of our few re­ PORTLAND, OREG ., THE UNFAIR WAR DISSENTERS maining natural resources, especially those October 26, 1967. (By Howard K. Smith) of such beauty and gradeur as the redwoods, Senator WAYNE MORSE, is of vital importance to our country, and we Senate Office Building, The Impresskm Is being cultivated that urge you to support conservationists in Washington, D.C.: both sides in the Vietnam "debate" have now every way possible. Urge enthusiastic support of S. 2515. Mod­ escalated their arguments beyond the level Once again we want to express our appre­ ify to increase Redwood National Park to of fairness and that together they threaten ciation for your stand against the Johnson at least 70,000 acres. For instance, increase the nation's moral fabric. Both, says James war policies. protection of stream side area with wider Reston, should now "elevate them guns a Sincerely, buffer zone. National redwood purchase unit little lower." LELAND AND AMELDA JOHN. exchange important for partial funding of In fact, equating the two is a false exer­ SILVERTON, OREG. park and should be supported. cise. It Is the dissenters alone who have LESLIE SQUIER. departed from reason and fairness. It Is the PORTLAND, OREG., ANNE SQUIER. baby doctor from Ohio and the preacher from October 26, 1967. Yale who have encouraged young people to Hon. WAYNE MORSE, PORTLAND, OREG., stop thinking and break the law-not their U.S. Senate, October 26, 1967. opponents. Consider the great contrast be­ Washington, D.C. Senator WAYNE MORSE, tween the quality of the two demonstrations DEAR SIR: We urge your support of S. 2515 Senate Office Building, of last weekend-Doctor Spock's In Washing­ and modifying it to increase the size to at Washington, D .C.: ton and that in New York by the Committee least 70,000 acres. It seems to us important Support S. 2515. Urge expansion to 70,000 for Responsible Patriotism. Guess whiCh of to keep the Purchase Unit in the plan. We acres purchase unit exchange seems wise. the two got the most television coverage? hope this will at long last secure a Redwood WILLIAM BLOSSER. Administration supporters have said tt National Park. the hysterical dissenters are encouraging Respectfully yours, PORTLAND, OREG., Chi Minh to pile higher the mound of lives CARROLL S. HIGGINS. October 25, 1967. on which to build his ideological empire. LUCILE H. HIGGINS. Senator WAYNE MORSE, Hanoi promptly confirmed It and set up a Washington, D.C.: committee for liaison with Its American sym­ OcTOBER 23, 1967. Urge your strong support S. 2515 Redwood pathizers. Subject: Redwoods National Park. National Park. '¥ould recommend increase Secretary Rusk made the unoriginal point Hon. HENRY M. JACKSON, to 70,000 acres plus retention purchase unit that China has made herself the essential Chairman, Committee on Interior and Insu­ exchange Forest Service land to preserve enemy, a fact confirmed daily by Peking. Lar Affairs, U.S. Senate, Washington, D .C. more Lower Redwood Creek and Emeral Mile Marshal Lin Piao, Mao's heir-designate, said DEAR MR. CHAIRMAN: The Board of Direc­ Area. in his party line-setting treatise that "the tors of the Izaak Walton League, which rep­ JAMES W. GAMWELL. colossus of U.S. imperialism can be split up" resents the Nation-wide membership, held and "destroyed" by methods Invented and its regular fall meeting over the past week- PORTLAND, OREG ., supplied by Peking. end. The Board discussed the Redwoods Na- October 25, 1967. If their success has been limited so far, tional Park proposal and your Committee blll Hon. WAYNE MORSE, intimidation may become more forceful S. 2515, one of the key conservation issues of U .S. Senate, when China soon gets her stock of nuclear the 90th Congress. Copies of the blll and the Washington, D.C.: weapons. Mr. Reston finds that "smy" and Committee Report had previously been dis­ We favor the Redwood National Park con­ has dredged up the Kaiser's old racist and tributed. cept; are opposed to the exchange of our demagogic cry of "Yellow Peril" to discredit The Board was highly commendatory of National Forest land for this accomplish­ Mr. Rusk, perhaps the least race-minded of the Committee for working Its way through ment. U.S.' oIDclals. The two arguments are not all the complexities of the issue and reach­ RICHARD L. HUBBARD, equal. One Is fair and the other Is not. Ing agreement on a workable plan for a President, Oregon Division, I zaak WaL­ The quality of dissent attains a kind of worthwhile National Park. ton L eague Of AmeTica. peak in Walter Llppman:l's arguments. Mr. The Board unanimously agreed on the fol­ Lippmann has published an essay proposing lowing points: CORVALLIS, OREG., that we get out of Asia and put our forward 1. To support the Committee's recommend- October 25, 1967. base in Australia instead. The thought Is ed two-unit Park; Senator MORSE, attractl ve and I vote for It. But first I want 2. To support full funding for acquisition Washington, [),C. : some minimal reasoning to show that we of lands for the Park; I encourage you to support the new Inte- won't, because of such a move, have to fight 3. To oppose use of the Northern Redwoods rlor Committee Redwood P ark bill, S. 2515, a much worse war a little later. Purchase Unit as trading stick for lands to with the modifications advocated by the SI­ Mr. L. doesn't prrvide any such reasoning, be acquired. erra Club to increase the size of the park to and the thinking he does on the way to his The League over the years has supported a minimum of 70 ,000 t cres. conclusion is not convincing. He says, for and now supports land exchanges when that Sincerely, example, that Presidents Eisenhower and serves to block upholdlngs, to achieve more ~ RICHARD B. NORGAARD. Kennedy kept us out. of.a. big....war in Viet­ effective and eIDclent administration and nam, and that it was Mr. Johnson Who vio­ management or to eliminate undesirable In- lated the American tradition (by tJ holdings. The League as consistently has op­ DISSENT ON VIETNAM what tradition?) and got us into it. posed proposals to use national forest lands about as sound as pralslng Presiden as payment in kind when Federal acquisition Mr. McGEE. Mr. President, Columnist Idge and Hoover for keeping us out, is necessary for other projects of broad public Howard K. Smith pointed to the unilat- War II and criticizing President I October 30, 1967 CONGRESSIONAL RECORD - SENATE 815513 But their relatively docile response points works asking him to insert $80,000 for an "es­ Los Angeles. The successful plea of Uberal up a significant sh1!t in Congressional and sential study" of repairs to the Cliff Walk, Republlcan Thomas Kuchel and conservative publlc attitudes toward the supposedly al- a scenic seaside footpath near Newport Republican George Murphy: Cut something 11 morsels in the traditional "pork threatened with wave erosion. Sen. Ellender, else. b a Loulsiana Democrat, obUged. JUSTIFYING PROJECTS NEW FASHIONS IN SPENDING By the time the public works appropria­ The current budt;:et pinch hlj.S encouraged Dams, watershed projects, river dredging, tions blll reached the Senate floor this month, a louder assault on the Corps of Engineers' new Federal bulldings and the like h ave his­ however, the atmosphere had changed. The traditional method of justifying rlvers-and­ torically been symbols of a lawmaker's In­ President's request for a tsx Increase had harbors projects: The cost-benefit ratio. For fluence in Washington, and they still are. But been rebuffed; lawmakers had worked them­ a 50-year period, a project must show a re­ in recent years new fashions in Federal selves Into an economy lather, at least in turn of more than $1 In benefits for every $1 spending have boosted the relative glitter their speeches. Republican Sen. John Wll­ spent or face rejection. Such critics as Demo­ of cash for schools and colleges, aid in fight­ liams of Delaware moved to delete from the cratic Sen. WIlllam Proxmlre of Wisconsin ing water pollution and more generous bene­ bill unbudgeted funds for the 41 projects contend the benefits often are Inflated and fits for veterans and the elderly. that various Representatives and Senators costs are minimized in computing cost­ Until lately, Uncle Sam has bestowed the had added. Voting with Mr. Williams, and benefit ratios. old and new kinds of Federal bacon with thus against the "essential" Cliff Walk proj­ Yet the corps' own figures helped doom a roughly equal generosity. But both Congress ect, was Sen. Pastore. famous symbol of pork-barrel enterprises­ and the public now face hard choices about Sen. Pastore says that because of the the proposed Lake Erie-Ohio River canal, also Government spending priorities, and the old­ budget situation, "We should set an example known as "Mike Kirwan's Ditch." Pushed for fashioned pork barrel seems to be suffering a by eliminating all projects that may be de­ years by Youngstown's Democratic Rep. MI­ decline in relative esteem. sirable but not essential." He Is insisting, chael Kirwan, the $1 billlon-plus project orig­ Democratic Sen. Jennings Randolph of though, that the Cliff Walk money shouldn't Inally carried a rather Impressive 3-to-1 West Virginia, chairman of the Senate Pub­ be taken out of the bill unless the other un­ cost-benefit ratio. But the engineers revised lic Works Committee, says he has heard only budgeted projects are removed. "I don't estimates downward, and the canal's many want to be discriminated against," he says. scattered grumbling from colleagues about foes in Ohio and Pennsylvania contended the "After all, that $80,000 isn't going to balance latest ratio of 1.2-to-1 was too low. Mr. Kir­ the $66 million in frozen Corps of Engineers the budget." projects. In contrast, "nearly every Senator" wan sadly dropped the project this year when Another llberal Democrat, Sen. Joseph Gov. Raymond Shafer of ;Pennsylvania for­ has beefed to him about the Administration's Clark of Pennsylvania, also voted for the Wll­ threatened stretch-out of highway construc­ mally notified the corps he wouldn't coop­ Uams amendment, though it would chop a erate on the project. tion funds, he says. small project in his state. It's a question of "A dam that helps prevent a flood can be A low cost-benefit ratio Isn't always fatal. priorities, he told the Senate, urging higher The current public works appropriation blll vital," observers Sen. Randolph, "but there's outlays against urban poverty and crime: provides an unbudgeted $150,000 for planning a detachment about that kind of project that "To me that should have a higher priority the control of natural salt pollution In the you don't get with money for highways or than any public works project," he declared. Wichita River in Texas. The project strongly schools. Those things are more personal to Stlll, the more reserved Congressional atti­ backed by local Officials, has a cost-benefit people than regular public works." tude toward the pork barrel is far from a ratio of 1.1 to 1. UNPUBLICIZED CUTBACKS wholesale reversal. In fact, only nine other Nor Is a high ratio a guarantee of success. The idea that people have become disen­ Senators voted with Sens. Williams, Proxmlre The corps calculates Sen. Fong's Walkiki chanted with old-style pork can surely be and Clark for cutting out the unbudgeted Beach project wouuld bring benefits of $15.90 overdrawn; the Corps of Engineers hasn't projects. And of the 41 other projects then in for every $1 spent on spreading more sand widely circulated its list of frozen projects, the bill, 19 have since survived a House­ and building erosion-control devices. That, and the lack of protest may be due partly Senate conference on the measure; included says the frustrated Senator, Is one of the ~ . -norance. But consider the experience of is the Cliff Wall project. highest ratios for any proposed project. The Klratlc Rep. Richard Fulton with his Long-standing proposals for some projects high benefits are attributed to more tourist elebrated Federal courthouse annex in have almost assumed a poUtlcal Ufe of their business for nearby hotels If the famous Nashville, which comprises the bulk of his own, which lawmakers can't ignore; Sen. Carl beach Is enlarged. ... district. . Hayden flghts In peace and war for his be­ Early this month Mr. Fulton asked the loved central Arizona water supply project; Budget Bureau to deter construction of the Maine's Congressional delegation is ready to bleed for the hotly disputed Dickey-Lincoln $8 mUllon annex "in the interest of economy BUTTER LEGISLATION School power dam; Republican Sen. IDram and the economic health of the nation." The . Mr. MONDALE. Mr. President, the gesture was hailed for Its novelty on a na­ Fong of Hawal1 laments denial of funds to put more sand on Waiklki Beach and vows to Dairy Record, the No. 1 trade magazine tional TV news show, and Mr. Fulton re­ try again next year. for the dairy industry, in its October 18, ceived praise in newspaper editorials across the land. He also Is receiving a freshet of fa­ COMPLAINTS MAY MOUNT 1967, issue editorialized on S. 2527, the vorable maH from Nashville and elsewhere. Though ·there has been Uttle squawking so-called- butter legislation. Wrote a Federal employe who works In the so far about the President's freeze of nearly I ask unanimous consent that this very existing cramped courthouse: "I would much $66 million on contracts for Corps of Engi­ favorable editorial be printed in the rather continue working in this bulldlng neers projects, complaints may mount as the RECORD. than to see this money being spent at a time suspension of work continues. "We've not There being no objection, the editorial when we sorely need to economize." h ad too much repercussion," reports a corps was ordered to be printed in the RECORD, "Plea.se let me know when you need some official. "A delay of only a couple of weeks as follows: campaign money from a Republlcan source," can't make much difference. But It will start offered a man in Bronxville, N.Y. A Kingsport, hitting harder as time goes on." Warns the NEEDS INDUSTRY SUPPORT Tenn., lawyer sent a $1 contribution toward tolerant Rep. Gray, discussing the frozen The blll Introduced by Senator Walter F. a "Richard H. Fulton memorial statue." contract for Rend Lake Dam In Illinois: "If Mondale of Minnesota to subsidize the price Congress adjourns and then comes back in of butterfat used in butter, which would AN ORDER OF PRIORITIES J anuary to find the freeze stlll on, It wlll be make It possible to reduce the retail price to Mr. Fulton says he h asn't received a single a different story." encourage its use by consumers, Is one that complaint about delay of the courthouse a n­ When the newer, more glamorous varieties should receive the dairy industry's full sup­ nex. He mRkes clear his own priorities for of "pork" are threatened, the howls can be port and endorsement. economizing: "It doesn't Include the things lusty. The new Federal program for fight­ The measure, In effect, Is a consumer sub­ that affect the health and welfare of the Ing water pollution-a popular cause with sidy and It is legislation that every major individual." He says he never would have the voters-----{:onslsts mainly of grants for dairy organization throughout the country suggested a cutback in school-aid money for local sewage treatment plants. The Senate has endorsed. his district or lower outlays for the heart­ Increased the Administration's $203 mllllon While, at this writing, we have not seen a cancerstroke research center in Nashville. appropriation request for this year by 10 %, copy of the Mondale bill, the salient points Some other lawmakers are also showing and lawmakers accusing the President of of It are that It empowers the Secretary of untraditional restraint on certain public st inginess already are t alking about an l'xtra Agriculture to move surplus b~nto com­ works projects for their home districts. appropriation early in the next session. mercial domestic consumptl~n_L:ll.t~r than year the Administration sends Con­ Neither of California's Sena tors has com­ into government storage by effecting a.reduc­ gress a Is~!...§!?..s.I~eers rivers and plained about the freezing of some small old­ tlon in price to consumers by payments pJ.ade harbors projects for which money1s ~eeded. fashioned levee and flood control projects in to processors of butterfat used in butte~ " e mark of a successful lawmaker Is -to get their state. But both exploded when West Another feature of the bill is that e r:> wn pet unbudgeted projects added to the Virginia's Sen. Randolph and his coal-state existing dairy price support program woul ~ .0I.l appropriations bill. Last July Democra­ colleagues proposed a cut In nuclear reactor be continued with the Secretary of Agrlcul- \ tic Sen. John Pastore_of Rhode Island wrote research money. The cut would have set back ture announcing the price support level per a note to Chairman Allen Ellender of the Sen­ the new nuclear-powered ocean water desalt­ hundredweight of milk to the dairy f~ier, as ate Appropriations subcommittee on pubUc Ing plant scheduled for construction south of under the present support programl 815514 CONGRESSIONAL RECORD - SENATE October 30, 1967 However, something additional has been that would consider, among other fishery A third group Is made up of conservatives, added in the Mondale blli. If commercial matters, how the convention could be most mostly sophisticated European fishing coun­ butter markets drag, the secretary, instead effectively implemented and encourage more tries (and Japan), which hold back official of buying butter in the market to support ratifications. Such a conference could also recognition of any special rights the price, could reduce the retail price to en­ consider auxiliary procedures, such as the coastal states for fear It will adverse ect courage butlter purchases by ' consumers. development of joint enforcement measures, their overseas fishing operations. ver, There would be no actual butter purchases which would make the provisiOns of the some of this group with substantial coast or storage, except that which is needed to Geneva Convention more effective." lines (and coastal fisheries) of their own fill the requirements of the government pro­ I understand that the Informal reaction may be experiencing growing internal con­ grams. to this sounding out from fisheries people flicts as their long range fishing operations It will be recalled that during World War of other countries has been something less are Increasingly and effectively challenged II, prices of butt er were rolled back and a than enthusiastic. You should keep this re­ by competition from relative newcomers to subsidy was pald to dairy farmers through action In mind In connection with some of long range high seas fishing, and their coastal t he plants. At that time, the dairy industry my later comments on the possibility of im­ fisheries suffer increasingly from the aggres­ was critical of the Roosevelt Administration proving the convention. sive operations of these same newcomers. If because of the rollback in butter prices, be­ I have been asked to discuss at this Con­ the position of such countries should change, c1luse consumers came to regard the rollback ference the future of the Geneva fisheries It probably would be to support measures prices as what the real price of butter should convention. I propose to approach the sub­ that would give substantially more protec­ be. Consumers, of course, did not take into ject by first considering what countries have tion to established inshore fisheries than account that a subsidy was being paid. ratified the convention, speculate on the does the present conventon. The situation t :len and now, however, is reasons behind their action, and then dis­ There is still a fourth group which is made very much different. Even during rationing cuss the possibilities of further accessions up of countries that generally favor the pro­ in 1945 while the program w ~' in effect, the and the likely motivating considerations. visions of the Convention but are not at per capita consumption of butter was almost This will point up some of the strengths and present Involved in any serious fishing con­ 11 pounds. At today's prices and competitive limitations of the convention and the modi­ troversy or, if they are, do not see that the conditions, commercial oonsumption is about fications needed to make It more effective. Convention would provide any near time 5.5 pounds per capita. It wlll also provide a background for evaluat­ help in solution of their current problems. The butter industry, during and immedi­ Ing the posSlblllty of achieving these modi­ Since the Convention has not been accepted ately after World War II, was in a much fications and, falllng this, the possible (and is not likely to be) by an overriding healthier condition. Today it is in a surplus alternatives. majority of countries, including most of the situation because of an unfortunate series of WHO HAS ACCEPTED THE CONVENTION substantial fishing countries, its provisions inci!1ents, such as the cholesterol theory jag, do not have the force of international law. the diet craze, the encouragement that the As of June I, 1967, the following countries were parties to the Geneva Fisheries Con­ They apply only to those who are members government has given to the oleomargarine of the Convention and this group does not industry and also the government's stubborn ventlon: Australia, Cambodia, Colombia, Dominican Republic, Finland, Haiti, Ja­ include most of the parties to current major refusal to do something about imports l1Iltil maica, Malagasy Republlc, Malam, Malaysia, fishing disputes. In such disputes the Con­ this country became a dumping ground for Mexico, Netherlands, Nigeria, Portugal, Sene­ vention at best serves as a guide or precedent. subsidized foreign dairy products. gal, Sierra Leone, South Africa, Switzerland, For this reason the party to the dispu te Tobago, Trinidad, Uganda, U.K., U.S.A., whose position Is most at odds with the gen­ Venezuela, Yugoslavia. eral provisions of the Convention, is less than LAW OF THE SEA The combined catches of these countries ever inclined to join up for fear of strength­ Mr. BARTLETT. Mr. President, in in 1965 made up about 14 % of the World ening the position of the other party. Mean­ June of this year a Second Annual Sum­ total. Three of the countries accounted for while thl~other party can see little to be more than % of this 14 %, the next four ac­ gained from jolnlng since the prOvisions of mer Conference of the Law of the Sea counted for about Va , while the remalnlng the Convention would n6t be binding r ' e Institute was staged at the University of 18 produced about Va . The average catch of non-member. Rhode Island. Among the participants the 18 was about 50,000 m.t. each. Only the Countries not Involved in fishing di es was William C. Herrington, former Spe­ first three countries, together accounting for generally lack urgent and practical incen­ cial Assistant to the Secretary of state about 10% of the World total, generally tives for accession. In such situations we for Fisheries and Wildlife. would be classed as major fishing countries. often find action on accession rather low on Mr. President, I found the paper de­ Why have these countries become parties the priority lists of their Foreign Offices livered to the conference by Mr. Her­ to the Convention? I expect mostly because where it must compete for attention with they favor the development of an Interna­ more pressing and In their view more prac­ rington to be extraordinarily informa­ tional fishery regime based on law and order tical matters. tive. Even though I have become rea­ and consider the Fisheries Convention, while If fishery disputes could be taken to the sonably familiar with the Geneva Con­ not fully satisfactory, Is an improvement World Court for settlement in fact as well as vention on Fishing and the Conserva­ over the existing situation. Few of them In theory, some countries would have a sub­ tion of the Living Resources of the Sea, will h ave their current problems substan­ s~ntlally greater incentive to accede to the as chairman of the Merchant Marine tially helped or hindered by the Convention Convention, for the greater the membership and Fisheries Subcommittee of the Sen­ In its present form. The majority I expect the more influence its provisions would have ate Commence Committee, I found read­ made no sophisticated analysis of the im­ on the Court. However, such disputes rarely pact of the Convention on their long range reach the Court for one party or the other ing Mr. Herrington's paper to be so edu­ fishery Interests. which is dubious of the soundness of its case cational that I would like others to have NOW LET us CONSIDER THE NONMEMBERS under International law (as influenced by the same opportunity. Therefore, I ask the 1958 Law of the Sea Conference and unanimous consent that Mr. Herring­ The reasons why these countries have not resulting Convention), refuses to make use ton's paper, entitled "The Future of the become parties to the Convention are more of the services of the Court. varied and perhaps in many cases more deep To substantially alter this membership sit­ Geneva Convention on Fishing and the seated than the reasons for most rat.ifica­ Conservation of the Living Resources of uation would require some new development tions. that would provide a practical Incentive for the Sea," be printed in the RECORD. One group Zed by the USSR presumably immediate action (such as the discovery of There being no objection, the paper favors most of the prOvisions of the Conven­ gas and 011 in the European continental was ordered to be printed in the RECORD, tion. However, the members of this group shelf did for the Continental Shelf Conven­ will not accept the reqUIrements for obliga­ tlon). At the moment I do not see such a as follows: tory settlement of differences concerning the THE FuTURE OF THE GENEVA CONVENTION development on the near horizon and there­ conclusions to be drawn from scientific data fore conclude that we are not likely to soon ON FISHING AND THE CONSERVATION OF THE bearing on the need for and nature of con­ LIVING RESOURCES OF THE SEA see any substantial number of new acces­ servat ion measures. (Yet without this pro­ Sions, certainly not enough to give the Con­ (By Wllliam C. Herrington) vision each country if It desires to prevent vention the force of international law. Last year at the first Rhode Island Law or delay action on regulations, is free to For these reasons the principal effect of of the Sea Conference, at the end of my pa­ bicker as iong as it wishes regarding the the Convention will continue to be its moral conclusions that should be reached concern­ per on the " 1958 Geneva Convention on and technical influence. By and large co~ ing conservation requlrement8.) Fishing and Conservation of Living Re­ tries will continue to seek solutionli~eir sources" I commented as follows: There is another group Of countries made fishery probl~ms.. thm~tera1 and multi­ "Now, eight years since the Geneva Fish­ up largerly of coastal states which wo1f!d­ ra:~eements which from time to time eries Convention was negotiated, we must llke to have broad jurisdiction over the fish­ m ay borrow provisions from the Geneva r admit that much of the world has not yet ery resources in waters adjacent to their vention. For example, the setting up 0 caught up with its provisions, in practice coasts. They do not jOin primarily because independent committee of experts in po at least. With this in mind the U.S. has re­ they fear that such accession would handi­ latlon dynamics by the International Whal­ cently begun to talk up a proposal that the cap their efforts to develop such broad juris­ ing Commission, which pJayed a key role in FAO convene a World Fishery Conference diction. Initiating a realistic conservation program MINNESOTA HISTORICAL SOCIETY

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