CONGRESSIONAL RECORD - SENATE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000200150010-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 20, 2016
• Document Release Date: February 27, 2004
• Sequence Number: 10
• Publication Date: September 6, 1962
• Content Type: OPEN

Approved For Release 2006/11/11: CIA-RDP64B00346R000200150010-6
to Speak
feel, for the and I art t of believe, that music, if but all a I my would with "Oklahoma," "South Pacific." "The
like t fet col- King and I," "The Sound of Music,' and
leagues know Dick Rodgers as I know him, now, "No Strings."
the artist and the man, and if they knew his How many of you also know "Victory of
music as well as I know it, and I mean liter the Sea," and "Valiant Years," serious works
ally hundreds of songs, including the verses, for documentary motion pictures, that show
they would join me in the kind of salute that another side of this versatile composer and
I want to give him, which is to thank him that I recommend to you all as well.
and to tell him of our respect and ou' To the Philharmonic, Mr. Rodgers has
affection, brought many benefits and in ways in which
Dr, PETER MENNIN. Through his music, no other director has done or probably can
through his efforts as an artist he has also do. First of all, he has conducted the
contributed to the Juilliard School of Musip orchestra himself, with great ability. His
in the encouragement and the help to young works have been performed on numerous
people who perhaps in the future will also occasions in Carnegie Hall and at many
We are all in his debt for these riches, and
I hope that everyone will join with me in
wishing, him a very happy birthday with the
highest degree of affection and sincerity.
BENNETT CEaF. I'm sure there, are a lot, of
people in this room who know Dick better
than I'do, but I am also sure that nobody
knows him longer than I do, because, eons
and eons ago, Dick's older brother Morti-
mer, Dr. Mortimer Rodgers, known as "Sun-
shine," because he hasn't smiled in 30 years-
he and I were great friends at Columbia.
At that time, I remember a little, white-
faced boy named "Richard" tagging after us.
Well, there came a time when Dick turner}
16 and wrote his first songs for the Columbia
varsity show, and ever after that, Mortimer
and I have been tagging after Dick, because
in that first song that he wrote for the Co-
lumbia varsity show-I believe, of 1922 or
somewhere around that time-the song,
"Peeking, Peeking, Back in a Baby Bunga-
low." Now, it had the same lilting joy, it
had the same beautiful melody that Dick
Rodgers puts into 'his songs today, and I am
convinced, he will still be putting into them
when he is 80, years old, as well as now.
Miss MARY MARTIN. It's almost impossible
to express with new and different words how
all of us of the theater feel about Richard,
Rodgers on this, his birthday, and every day,
so I would like tg say some old and familiar,
words to express how I feel about him:
.If they asked me, I could write a book
About the way he walks, and whispers, and
looks;
I rquld write a preface on how we met,
So the world would never forget;
And the simple secret of the plot
Is just to tell you that I love him a lot;
Then, the world discovers as my book ends
How Richard Rodgers and Mary Martin are
friends."
STANLEY ADAMS. Dick, the American So-
ciety of Composers, Authors, and Publish-
ers, known as A$CAP, is the guardian and
custodian of the performing rights of your
361 songs. In that guardianship, ASCAP en-
joys this great responsibility. It is truly one
of the outstanding and' unique catalogs of
the musical world, songs you wrote more
than 30 years ago are as popular today as
they were then.
The score of one of your new plays on
Broadway is eagerly awaited on the other
side of the globe. The songs of the Amer-
ican musical theater and your songs, Dick,
are the greatest exports America has, ac-
cepted and loved wherever people gather to
sing and to give their hearts to music,
As your songs poured out, year after
year, gathering glory and gathering affec-
tion, they fit into a pattern, the pattern of
a life, in song. We know them, from "Gar-.
rick Gaieties" to ?'No .Strings."
Here, we and you a life in pictures that
parallels your lif. In song. It records how ward the principal theater to be incor-
old you looked then and, how young you porated in the new Arts Center in Columbia.
look now. ASCAP ? and its 8,000 members I have proposed that this theater be
from the whole field of music present this called "the Rodgers and Hammerstein." If
to you with deep respect and with deep af- that should come to be the case, nothing
fection, "The 60th Birthday Picture Book of could give more satisfaction to me, to the
Richard Rodgers." Columbia , cominunity, or to the friends of
Guggenheim concerts in the stadium, where
the 15th Rodgers and Hammerstein night is
scheduled for August 11 at 8:30 and will, as
in the past, surely be one of the great popu-
lar nights of the summer.
Through the affection and esteem in which
they hold Richard Rodgers, numerous great
stars of the stage have helped our orchestra
by appearing at our annual fund drive lunch-
eons and elsewhere, One of the most recent
is Mary Martin, who has just spoken to you
so charmingly today.
On our board of directors since 1954, Dick's
advice has been eagerly sought and cheer-
fully given; as a member of the important
Musical Policy Committee, his professional
knowledge has been invaluable.
Dr. LAWRENCE H. CHAMBERLAIN. They say
that a man is known by the company he
keeps. I think it is also true that a univer-
sity is known by the kind of men it pro-
duces. Of course, we cannot claim all credit
for things that Mr. Rodgers has done, but
Columbia is very happy to be associated
with him in the many things that he has
done.
The word "creativeness" has been used a
number of times, and there is nothing that
I can add to the musical side, but there is an
aspect. of Mr. Rodgers' work that is truly
creative and, I think, is not generally fully
understood. He has phrased it himself by
saying that Broadway is a two-way street,
and what he means by this is that if the
theater and the musical theater is to have its
greatest future, to realize its real poten-
tiality, there must be closer and more con-
tinuous contact between the theater, itself,
the professional theater, and the world of
education; and I'll not take the time today
to tell you all the things that he has done
in this area.
But for those of us who have been inspired
and who have caught something of his dream
of what can be done, the announcement
which I am about to make simply makes a
fitting climax.
It is my observation that there is a very
close connection between creativity and
generosity because, really, creativity is the
giving of one's self. Mr. Rodgers, through-
out his career, has shown this generosity
to the point that, on this occasion, when
we are supposed to be celebrating his birth-
day, he himself has made a gift.
On behalf of President Kirk, who is in
Europe and not able to be here today, I am
happy to make the announcement that the
Rodgers and Hammerstein Foundation has
made an initial pledge of $150,000 toward the
principal theater of the projected Columbia
University Art Center.
This, of course, is the culmination of the
dream I mentioned a moment ago.
I have this additional message from
President Kirk; The university is most
grateful for this splendid action by the
Richard Rodgers
e';erywhere.
The only thing I can add to that is to
say, "Many happy returns of the day."
Mr. RODGERS. On a 60th birthday, I
imagine it is mandatory to have a phi-
losophy. Somebody once wrote Oscar a let-
ter and said, "What is the saddest word
that you know of?", and he replied, "But."
I have arrived at a philosophy, sitting
here, and it is equally short, and what I
have to say will be equally short. I have
never done anything alone in my life. I
had to be conceived by two people. I had
to be nursed, I had to be brought up, I
had to be taught. I was given a scholar-
ship in music, I was sent to Columbia Uni-
versity by parents who were not rich but
who could do it. I have shows but I have
chorus girls dancing in them; I don't do
the dancing. I have these men playing on
the stage, they do my work for me.
I wish that this could be a model for
what is going on. Then the walls, the
barbedwire, would come down. People
would not be running out of a country.
They would be doing something for each
other.
This morning I talked to Alan Lerner on
the phone and he said, "You'll have to say
something." He said, "For God's sake don't
be humble."
Well, I'll come to my one-word philosophy.
It's one I've lived by and one I expect to
live by. And the word is: "Help."
Thank you.
THE TELSTAR ACHIEVEMENT
Mr. JAVITS. Mr. President, it is most
interesting that the great scientific
achievement of Telstar is the product of
2,000 small and large business firms in
practically all of our States. The total-
ity of their efforts made Telstar pos-
sible. I consider the development so im-
portant that I ask unanimous consent
that there be printed in the RECORD at
this point a summary of the firms that
participated in that great American
achievement and where they come from.
The number of participating firms in
each State is provided in this list, and
the names of the firms themselves are
available in my office to any of my col-
leagues who are interested.
There being no objection, the summary
was ordered to be printed in the RECORD,
as follows:
Telstar is the name of the Bell System's
experimental communications satellite.
This project has been specifically concerned
with learning how a communications satel-
lite gets along in outer space, how it works
and how it can link earth stations. While
it is not an operating system, Telstar has
already provided much of the technical data
and operational know-how such a system will
require.
Project Telstar is unique. It is the first
use of space for other than official Govern-
ment purposes. And communicating by
satellite may, for a long time, be the only
direct contact most Americans will have with
space-age technology. But it won't be just
a novelty.
A satellite communications system is need-
ed because people are making more and more
oversea telephone calls. Today the Ameri-
can Telephone & Telegraph system op-
erates more than 600 telephone-grade cir-
cuits for oversea communications. By 1965,
it is said twice that many will be needed
and that . by 1970, the demand will have
doubled again. And in 1980, it is estimated
that 10,000 circuits will be needed for tele-
phone use alone-with perhaps an addi-
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 17628 CONMESSION,
IA- R D P64 B00346 R 000200150010-6
RECORD - SENATE September 6
tionaa 2,000 for more specialized communi- Kansas -------- _________.__-__-_- - --- I
cations. Kentucky------'----------------------- 4
Hopefully, a satellite communications eys- Maine --------------------------------- 43
tem will be able to help meet this demand Maryland -------------------- --------- 22
efficiently and economically. --_-Massachusetts------ ------------------ 117
The satellite corporation, as being set up by Michigan------- ------------------------------- 20
recent legislation, will not be ready for com- Minnesota ------------------------------ 12
mercial business for some time, probably Missouri______________________________ 3
not before 1985, and even then satellite Nebraska ------------------------------- 1
communications is an economic unknown.. New Hampshire_______________________ 10
PROJECT TELSTAR'S COST New Jersey_____________________ 468
New York----------------------------- 449
Since its formal inception in 199i, about North Carolina ------------------------- 44
$50 million has been spent on Project Telstar. Ohio-------------------------------------
A satellite communications system is pos- Oklahoma ------------------------------- 2
sible today because two streams of research Oregon________________________________ 4
________ 202
have been fused: private research in com-
munications 202
sored research Governm~snt-spthe Rhode Island__________________________ 8
research in rocketry. Withe South Carolina_._______.._____________ -2
transportation provided by Government- Tennessee ------------------------------- 4
developed rockets, Telstar would not- haveTexas ----------------------------------- 3
gotten off the ground. Without the com- Virginia_______________________________ 5
munications industry research and develop- Washington ----------------------------- 3
meat, there would have been no Telstar to West Virginia_:-------- .---------------- 114
get off the ground. Wisconsin -----------------------------
satellites at a cost of about $1 million apiece,
including development expensss. Many
more million, were spent on developmental
models. Each satellite requires detailed at-
tention by a corps of highly skilled scientists
and craftsmen. It is not a process easily
-shifted to mass production. There are 3,600
sapphire covered solar cells set in the satel- What the United States should do for
Rte's surface. Inside, there are 4,800 other Latin America. I feel that I have been
parts; 2,500 of them are active semiconductor
devices. ----as forward looking arid as active in that
Telstar was shot into the sky by a Delta area as anyo:ae in the Congress in all
launch vehicle. This rocket was developed the years I have been in the other body
for the National Aeronautics and 3pace Ad- and in this body.
ministration by the Douglas Aircraft Co. As often happens in life, however,
About 2,000 suppliers had a role in the
success of Project Telstar. They provided the tables are sometimes turned. For,
a good deal of equipment-and services which the question now is, What will Latin
the final production team at Bell Laboratories America do for us? I think that this
fashioned ir..to the Andover earth station should be a very welcome moment to the
and the experimental satellites. Four out of people of Latin America. The people of
five of them are small businesses, with less Latin America do not have to give us
than 500 employees. aid to build tip our industry, or techni-
States suppliers are located in 37 of the 50
States and the District of Colum'Sia. They cians to deve. op our resources, or medi-
range from it single firm in Janesboro, Ark., cine, medical help, universities; or even
and Huntington, W. Va., to more than 550 the exchange of fellowships, though we
businesses in New Jersey who had a part in welcome that and it is a very exciting
the program. educational activity in which to partici-
The story really starts in the 1930's. That's
when Bell Labs invented the sennitive horn
reflector antenna and low noise receivers-
equipment which plays a crucial role in satel-
lite communications today.
Since World War II, the Bell Laboratories
have produced the Bell solar buttery, the
transistor and the solid-state ruby maser.
These are some of the financial dimen-
sions of the project. Telstar is not just the
product of a lot of money and engineering
bkIlI. It's hot just the contrfautions of
THE CUBAN SITUATION
Mr. JAVITS. Mr. President, on the
could destroy all of us in a situation of
that character.
The issue is very clear, and the issue
is only partially dealt with by the idea
of containment, which is essentially
what the President gave voice to the
other day. The issue will still remain
even if the Cuban Communist regime
does not move out of its own area and
into aggression against other states.
Certainly it is now a base for subversion
and a base for Communist infection-
with the danger of aggression-for all of
the Americas, and in a most vigorous
and intransigent way that has been, is
being and will be transmitted to the
other American Republics.
One thing is clear to me. This is a
challenge and a very grave emergency
for our country which has been building
up, as we all very well knew, for the last
year and a half. But there is a -great
will in this country, in my opinion, to
deal with it primarily in terms of agree-
ment, at least with the great majority
of the other American states.
If there is one thing I feel personally
the American people are convinced of, it
is that if it is humanly possible to do so,
we should have a common policy and a
common course of action with the other
American States under the Charter of the
Organization of American States and the
treaties and agreements entered into,
since it only takes a three-quarters vote
to act. . That is something which we
must understand.
The vote may not be unanimous. But
a three-quarters vote is a large vote, and
to be truly effective, should include the
principal countries of Latin America,
the countries of great population, great
territory, and perhaps in a somewhat
more advanced state economically than
some of the others. So that is what I
meant a minute ago when I said this is
an occasion when the countries of Latin
America have an opportunity to do
something for and with us.
to give us right now is understanding policy, in my view, with respect to Cuba,
and support--and support which may be if action should be required, in order to
of a very material kind--for as a result insulate this menace or perhaps even
of what has happened in Cuba, not only to move against it in some appropriate
we, but also all the Americas are faced way. The people of the United States
with a grave challenge. know that the days of unilateral so-
Notwithstanding the very reassuring called "gunboat" diplomacy In Latin
words of our President and his legal in- America by us are gone; they are obso-
terpretation of the Monroe Doctrine, the lescent-but this does not mean inac-
fact is that Chairman Khrushchev has tion-it means, on the contrary, more
2,000 suppliers coordinated by the purchase said the Monroe Doctrine is a dead let- effective action.
President Kennedy has said that The PRESIDING OFFICER. The
ll ter
f B
e
orders and exacting specifications o
. Labs. Telstar is principally the product of the Monroe Doctrine still remains the time of the Senator has expired.
a way of thinking, a way of acting. binding policy of our Nation. Both Mr. JAVITS. May I have 2 additional
This is the intangible vitality that gives cannot be right and they are not. As minutes?
per-
the private sector of the economy its per- I understanc, the Monroe Doctrine re- Mr. DIRKSEN. I yield 2 additional
petual modernness. It comes from the deci- lates to the establishment certainly minutes to the Senator from New York.
anon to look to the future; to see tomorrow's needs, and plan for the day after. This is of any military base in any country of Mr. JAVITS. The way in which our
the decision that produced Telstar. the Western Hemisphere by any for- country could best move with the con-
The number of participating flims in each eign power which was not there when sent and approval of the great majority
State is listed as follows: the Monroe Doctrine was announced. of its citizens is to obtain a consensus-
Alabama ----------------------- . -__--- i Whether technically or not, those who and I use that word advisedly-among
Arizona ------------------------- :-----__ I are on Cuban. soil as soldiers begin to enough of the Latin American nations
Arkansas___________________ ------ I -establish the impression clearly that the so that our action would be, even if
California------------------------------ 100 U.S.S.R. has set up a military base in mainly implementedbyus as their agent,
Colorado ------------------------------- 2 the Western Hemisphere in Cuba. The a group action. Such action is extremely
Connecticut____________________--____- 84 President may be perfectly correct. I desirable. So as one American and as
Delaware--_.___________________ ____ 5
Florida--------------------------------- - 25 agree with him about our not being pre- one Senator, I would address a plea to Indiana -------------------------------- 12 cipitate and hotheads in the situation; our Latin American neighbors on the
Iowa ------------------------------------ 3 yet improvidence or lack of decisiveness basis of the presentation made yester-
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1762'9
HOPE IN THE CONGO
Mr. HUMPHREY. Mr. President, I
would like to call to the attention of the
Senate a very important and encourag-
ing sequence of events which has just
taken place in the troubled Congo, an
area which has been of great concern to
us all.
Acting- U.N. Secretary General U
Thant 2 weeks ago proposed a plan for
national reconciliation in the Congo
which provides for a sound basis for
bringing about Congolese unity. This
plan contains the following principal
points:
First, the adoption of a Federal consti-
tution which contains necessary powers
delegated to the Federal Government
and all other powers reserved to the pro-
vincial governments.
Second, the development of a fiscal
program including Federal and provin-
cial revenues, a program of foreign ex-
change control, and a unified currency.
Third, integration of the military.
This plan was publicly endorsed by
many governments of the free world in-
cluding those of Belgium and Britain.
Our own Government gave full support
to the plan. Significantly, the Soviets
attacked it. Prime Minister Adoula im-
mediately accepted the plan in all its
detail as a just and honorable basis
for national reconciliation. President
Tshombe of Katanga Province substan-
tially accepted the plan.
The important thing, however, is not
to haggle over the language of Mr.
Tshombe's reply but to move forward
immediately on implementing the prac-
tical details of the plan as the Acting
Secretary General has urged. It will
serve the world well if both Prime Minis-
ter Adoula and President Tshombe ap-
proach these steps in good faith. If this
is done and done promptly frustration,
despair, and danger may give way to
peace and hope.
I think it is important at this critical
juncture to give full credit to the United
Nations which by its patient and untir-
ing efforts may have opened a door which
many thought was closed forever. The
difficult part may be yet to come but I
wish to assure the Acting Secretary Gen-
eral and his staff that they have the full
support of the American people in this
endeavor.
Mr. President, I don't want to go into
the Congo situation in detail today be-
cause we are now in a delicate moment
where the real work must be done behind
closed doors by those on the spot and not
on the public forums of the world. If
the job at hand is tackled in earnest the
time may soon come when the Congo
crisis will be nothing but a bad dream of
the past.
Mr. President, I ask unanimous con-
sent to place in the RECORD a recent
speech by Assistant Secretary of State
G. Mennen Williams, which explains in
substantial detail the program proposed
by the 'U.N. Acting. Secretary General,
U Thant, as a plan for reconciliation in
the Congo and a basis for Congo unity.
There being no objection, the speech
was ordered to be printed in the RECORD,
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CONGRESSIONAL RECORD -SENATE
Ilean Rusk, and in the spirit of the bi- ought to be adopted in meeting the
partisan foreign policy which I think is' Communist buildup by Russia as a
the most noble spirit Congress has de- beachhead in Cuba.
veloped in modern times. I am satisfied, if such a conference
I feel deeply honored that it is the is had, and the modus operandi are dis-
spirit of Senator Arthur Vandenberg ' cussed, that we will reach not only a
which would appeal to our Federal leg- three-fourths vote, but I would be very
islators in the other Latin American' much surprised if we did not reach a
countries, as the leaders of their peo- unanimous vote. It is crystal clear that
pie, to give guidance and leadership to the free nations of the hemisphere must
their people so that in this hour, which stand together against this threat.
I think is getting more and more serious Let us assume, unpleasant as the
in the eyes of the American people, we thought is, for even a fleeting moment
may have their good will, 'their coopera- that a three-fourths vote is not had.
tion, their backing and support in the Then the United States will still have
action which would appear to be indi- the responsibilty, to take what course
cated with respect, first, to the insula- of action the facts show may be neces-
tion of the Communist menace in Cuba, sary to take, to protect the security of
the American people from the threat of
and perhaps in. consultation with the
other American states in some effort to a Russian Communist beachhead almost
protect even more the on our very shores. Whatever action we
gai nst
Americas against'
the Communists. take to protect our own national security
The details for implementing that will, we will likewise thus take to protect the
I am sure, be the subject of discussion, national security of every free nation to
I have my ideas; others have theirs. But' the south of us.
for the purpose, of my remarks today I Mr. JAVITS. Mr. President, I thank
hope very much that we may speak in the Senator from Oregon. I associate
this way as people to people with the myself with his views as he has ex-
Understanding and plea that this is on pressed them.
e
time that the Latin American peoples Mr. MORSE. Mr. President, I suggest
can do something for us to back and the absence of a quorum. I ask the
support us. . minority leader if he is willing to share
Mr. MORSE. Mr. President, I yield the time on the quorum call.
myself 2 minutes. Mr. DIRKSEN. Certainly
In the spirit of bipartisanship referred Mr. MORSE. Mr. President, I sug-
to by the Senator gest the absence of a quorum and ask
from New York, I
wish to join him in his discussion of that the time be equally divided.
Cuba, I join him in my capacity as The PRESIDING OFFICER. Without
chairman of the Subcommittee on Latin objection, it is so ordered. The clerk
American Affair`s. I would have the REC- will call the roll.
ORD show that I completely agree with The legislative clerk proceeded to call
the steps which have been taken by the the roll.
Mr. HUMPHREY. Mr. President, I
President if the Ilnite States thus far ask unanimous consent that the order
in connection with the Cuban. danger. for the quorum call be rescinded.
I heartily endorse the appeal of the Pres- Mr. MORSE. Mr. President, reserving
ident of the United States and the Sec the right to object, I should like to ask
and retary State to our American. friends the acting majority leader a question.
This allies le is, to as the south senior r Senator nator from Will Senators be ready to proceed with
their speeches?
Oregon has said-in regard to the Cuban their HUMPHREY. Yes; but first I
matter for many months, a joint prob- have Mr. items t place the Rbut
lem which confronts our Latin-Ameri- have MORSE. The quorum call has
can , neighbors as well the United been Mr. taking place with the uderstanding
States, in a very real 'sense se it is a great-
er threat to our Latin-American friends that there would be an equal division of
than it is to the United States, the time required for the call. If it is
I, along with the Senator from Iowa necessary to have another quorum call,
[Mr.`HICKEXLOO'ER] attended the Punta I feel that I have a duty to make certain
del Este Conference earlier this year. At that Senators will be here to speak at
Punta del Este, as the Senator knows, some length on the bill.
asked the
weedobi a series t resolutions which Mraids. of the Senate HUMPHREY. to I have communicate with
were combined Into the oft Punta udel two Senators who wish to speak. They
Este. One of those resolutions,,
esolutio ions, t will be here promptly. If it is neces-
mouf adopted, made very clear r th that sary to have another quorum call, I
sph free nations to 'stand the ogettern Hemst shall ask unanimous consent that the
the threat he thof intend to the tand spread together of f communism itime be divided equally between the two into the hemisphere from Cuba. sides.
The PRESIDING OFFICER (Mr.
I would only add to what the Sena-
tor from New York has said that it is MANSFIELD in the chair). Such consent
American Stmt in regard to the Com- quorum" may be rescinded, and the re-
inunist threat to .tie Western Hemi- newal of that request may be made at
sphere from the Russian. buildup. in the proper time.
Cuba. I hope that very soon a con- Mr. MORSE. I have no objection.
ference of OAS of the foreign ministers The PRESIDING OFFICER. Without
of Latin American countries and the objection, the request of the Senator
United States will be called for a_ dis- from Minnesota is agreed to.
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17630
THE UNrrED NATIONS PLAN FOR THE CONGO Government to assist that new nation in
-(Address by the Honorable G. Mennen Wil- overcoming postindependence disorders, in
liams, Assistant Secretary of State for
African Affairs, before the Jewish War
Vetera:as National Convention, Detroit,
Mich., Thursday, August 30 1962)
Fellow veterans, I am pleased to address a
veterans' group today becouiae I want to
speak about a country balanced between
,strife and progress-the Republic of the
Congo. I can think of no more timely or
more important topic to discuss with you
who have experienced past failures to find
peaceful solutions. .
A United Nations plan for Congo unity was
announced on August 20 by Acting, Secretary
General U Thant, and its ea] ly acceptance
was indicated by Congolese Prime Minister
Cyrille Adoula. Last Friday, Robert Gardi-
ner, chief of the U.N. operation. in the Congo,
presented the United. Nations plan for unit-
ing that unfortunately divided country to
representatives of Katanga Province.
Since its presentation to the - Katangese
provincial government of Mr. Ntoise Tshombe,
Mr. Adoula announced that his government
had studied the Secretary General's plan
and gave its agrement to it. He noted that
his government's only criterion for judging
the Congo problem was in the context of 14
million human beings aspiring for a better
,
life, and added: There are seven principal points in the U.N.
h
l
d
t
i
We
ope al
countries wi11 a
op
th
s
view and support in all phases the Secretary
General's plan, which takes into account
our observations and is in accord with the
Government of the Congo's point of view.
If all of these conditions are realized, we do
not doubt an era of peace and prosperity
would-begin for the Congo, which could, in
fruitful cooperation with all nations make
its contribution to the international com-
safeguarding Congolese unity, and in re-
building the nation's administrative and eco-
nomic health. The United Nations pre-
vented unilateral Soviet intervention and
succeeded is a large extent in keeping order.
it has helped maintain Congolese adminis-
trative services and assisted in the reestab-
lishment of parliamentary government.
The principal block to Congolese unity and
economic progress today is this Katangan
problem. Prime Minister Adoula's govern-
ment was established under orders from
Parliament to end this secession, and no
Congolese Government can long hope to re-
main in office without demonstrating prog-
ress towarc: this goal. Until this is achieved,
Congolese resources, both human and mate.
rial, will be diverted from the essential long-
range task of nation building and economic
progress. Until unity is achieved, the threats
of chaos and renewed Soviet intervention
are ever-present danagers.
We welcome the plan put forth by Acting
Secretary General U Thant, because it offers
a reasonable way to achieve these goals and
head off these dangers.
Because this U.N. plan was not widely
publicized at the time of its announcement,
I would like to take a few minutes this
morning t- point out its salient features
plan:
1. The National Government, after con-
sultation with the Provincial governments
and interested political groups, will present
a Federal Constitution to the Parliament in
September; The United Nations is provid-
ing legal experts to assist in drafting this
document. Under present law, this consti-
tution cannot become law without a two-
thirds vote of the Parliament, In which all
Acting Secretary General's efforts to reach
a settlement in the Congo.
The US. announcement pointed out that
the U.N. plan offers a reasonable basis upon
Which Congolese leaders can settle their dif-
ferences. Our Government said -that the
plan offers compelling reasons for other na-
tions to lend their support and that states-
manship in the Congo can, put that nation
on the road to federal unity and progress.
Such progress, the United. States con-
cluded, will enable the United Nations and
countries like the United States to devote
greater resources to economic and technical
assistance in the Congo.
It is gratifying to be able to say today that
many interested nations have indicated their
firm support for the U.N. plan. For ex-
ample, last weekend, Britain announced its
support of the plan and on Tuesday the
Belgian Government issued a statement of
support.
While there has not yet been time for an
official acceptance of the U.N. plan from the
provincial government of Katanga, provision-
for, a federal system of government for the
Congo enhances the possibility of its ac-
ceptance by Katanga. Evariste Kirnba, who
handles foreign affairs for Mr. Tshombe, said
in a letter to Secretary General U Thant
following his announcement cf the plan .on
August 2'0 that the plan "contains a number
of positive elements." There is considerable
reason to hope that Mr. Tshombe will sup-
port the plan. On August 1 and August 21,
he stated his belief that :Katanga was ready
to join a Congolese federation.
On the initial evidence, then, we are hope-
ful that the U.N. plan is the basis for Congo-
lese unity and can put an end to Katanga's
secession-
The resolution of this problem is naturally
one Which the Congolese themselves must
achieve. You will recall the United Nations
was invited into the Congo by the Congolese
der the proposed Federal Constitution, cer-
tain powers will be delegated to the National
Government. These include-
(a) Foreign affairs.
(b) National defense (other than local
police functions).
(c) Customs.
(d) Currency, exchange control, and fiscal
policy.
(e) Interstate and foreign commerce.
(f) Taxing powers sufficient for National
Government needs.
(g) Nationality and immigration.
(h) Post and telecommunications.
Powers not delegated to the National Gov-
ernment will be reserved to the Provincial
governments.
2. The National Government, after con-
sultation with the Provincial governments
and interested political groups, will present
to the Parliament a new law to establish
definitive arrangements for division of rev-
enues between the National and Provincial
Governments, and. regulations and pro-
cedures for the use of foreign exchange.
U.N. experts also will assist in the prepara-
tion of this law.
Until that process is completed, the Na-
tional Government and Katanga should agree
to share revenues, duties and royalties
equally, and all foreign exchange earned by
any part of the Congo will be paid to the
Monetary Council of the National Govern-
ment or an agreed-upon institution.
The Monetary Council should control use
of all fore:.gn exchange and make available
for essential needs in Katanga at least 50
percent of the foreign exchange generated in
that province. This provision is of particu-
lar importance because upon Congolese in-
dependence Katanga generated 50 percent of
the Congo's foreign exchange earnings.
8. The National Government will ask the
International Monetary Fund to help with a
plan for national currency unification, which
will be implemented with p
in the sli6rtest os-
sible time.
4. Rapid integration and unification of all
military units must be accomplished. A
commission composed of representatives
from the National Government, Katanga and
the United Nations should prepare a plan
within 30 days to go into effect within the
following 60 days. Provision is made, how-
ever, for the Provinces to retain control of
their local police forces.
5. There should be a general amnesty.
6. All Congolese authorities-national,
state and local-should cooperate fully with
the United Nations in carrying out U.N.
resolutions.
7. The National Government should be re-
constituted to provide a suitable representa-
tion for all political and provincial groups.
The U.S. Government believes that this
program is eminently reasonable and neces-
sary. It provides for full consultation and
hearing of interested groups, and the plan
provides for democratic approval of the Con-
stitution and other laws. We believe that
if prompt action is taken on this plan by all
Congolese authorities, it will get the Congo
back on the road to a peaceful and viable
future.
This, then, is the Congo situation as it
stands at this moment. It is delicate; it is
difficult; but it is by no means devoid of
hope.
In some respects, the current Congo situ-
ation is reminiscent of the young, radical
America of 1783, when the Dean of Glouces-
ter said:
"As to the future grandeur of America
and its being a rising empire under one
head * * ?, it is one of the idlest and most
visionary notions that was ever conceived
? * ?. The mutual antipathies and clash-
ing interests of the Americans, their differ-
ence of governments, habitudes and man-
ners, indicate that they will have no center
of.union and common interest. They never
can be united into one compact empire un-
der any species of government whatever"
However, as our Constitution led us to
unity and an integrated nation, so the U.N.
plan offers a path to peaceful reconciliation
of differences in the Congo. And this coun-
try has pledged its full support to that plan.
Today, I want to call on you and all other
Americans to back your country's support of
the United Nations on this important issue.
I know you share our hope and our desire
that reason will prevail over ruin . in the
Congo. And there really is no alternative to
Congolese unification except chaos and civil
war.
If the United Nations is unable to achieve
unity in the Congo,. there is a strong possi-
bility that country will be plunged into a
destructive civil war as the rest of the
Congo seeks to reintegrate Katanga by what-
ever means available or necessary. These
conditions, in turn, would breed external
subversion and loss of true independence.
This is theprincipal reason why the United
States is so concerned with the Congo situ-
ation. This is why our policy continues to
be to help establish a unified and stable
Congo-a Congo on good terms with the
West and able to resist extremist and Com-
munist influence and penetration. This is
why we continue to welcome all steps toward
political reconciliation of the Congo.
Since the beginning of the crisis, both
the United States and the United Nations
have looked on reconciliation as one of their
major tasks. This is why we look so favor-
ably on the plan drawn up by Secretary
General U Thant.
Once a peaceful reunification of the Con-
go is achieved, then all partiesInvolved can
turn to the really important job of helping
the Congo build itself into a strong, viable
nation. The U.N. plan offers real promise
for a settlement under which the United
Nations can work itself out of the expensive
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.1962
and technical assistance.,
Once this transition,, ip accomplished, We'
will have made a major contribution toward
lasting peace and securitp not only in Africa
but throughout the world.
This is what we. hope will be achieved
through the United Nations Congo plan of
reconciliation. And this is, why we are giving"
ur full support and best efforts toward mak-
l l s
his plan
u will join us in support of thi
We hope you will join us in support of thi
succeed.
ED A ANDIS
.T
RELATIONSHIP TO ECONOMIC
GROWTH
Mr. MANSFIELD. Mr. President, will
the Senator from Minnesota yield me 1
minute?
Mr. HIJMPHREY. I` yield 1 minute to
the Senator from Montana.
Mr. MANSFIELD. Mr. President, we
all recognize the ever-increasing impor-
tance of college 'education and post-
graduate work in this advancedtechni-
cal age in which we live. The need for
advanced education is not only limited
to a person's advancement but there is
also a direct relationship between edu-
cation and economic growth. This. is a
subject recently discussed by the able
president of Montana State College,
Roland R. Renne, in an article he pre-
pared for the September edition of Mon-
tana Education, the official publication
of the Montana Education Association.
Mr. President, I ask unanimous con-
sent that the article may be printed at
this point in the RECORD.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
HIGHER EDUCATION AND ECONOMIC GROWTH
(By Roland R. Renne)
Quality education and research are essen-
tial to the future sound growth and prosper-
ity of Montana and the Nation. The best
proof of this is our record to date. There is
no doubt that great natural resources, a
capitalistic form' of enterprise, freedom of
trade and movement of products, services,
and people among the 50 States have all con-
tributed significantly to our record of growth
and power. But these three factors are not
unique with America.
What is unique and undoubtedly the most
important single factor accounting for our
progress is our system of universal free pub-
lic schools. The emphasis on individual at-
tainment and the opportunity to develop
one's abilities to the fullest possible extent
through publicly financed schools from kin-
dergarten through college have raised the
standards and increased the, wants of our
people, and have at the same time provided
the means of fulfillment by increased pro-
ductivity and invention.
The record is perhaps best exemplified in
the field of agriculture. Just 100 years ago,
the Congress of the United States, created
tht,Department of Agriculture and, by pas-
sage' of the Morrill Act, authorized the ea-
tablishment of a lf#iy.i>Ae laXld,-grant col-
lege of agriculture and megl?%oic arts in each
State. Grants of land for tb,e .,endowment
of, such. Colleges were authorized agd ,annual
appropriations made to meet part of the
costs of instruction., Later. (1887) an ex-
tensive. system of agricultural research
through experiment stations was set up to
uncover new scientific facts and , develop
improved methods of production and mar-
keting agricultural products. Still alter, in
1914, a system of adult education was es-
tablished and- financed by joint contribu-
tions of Federal, State, and county govern-
ments. This cooperative extension service
takes the latest discoveries of the agricul-
tural experiment stations and passes them
on to farm and ranch operators who put
them to practical use. In Montana, the
main station is at Bozeman and the seven
branch stations are spread over the State to
meet the varied soil, weather, and other pro-
duction influences peculiar to the different
areas of Montana.
So effective has been this three-way system
of resident instruction, research, and adult
education that today American agriculture
efficiency and achievement are' the envy of
the entire world. Only 8 percent of our
I population is required to produce all the
food and fiber we need, with considerable to
spare to help feed and clothe people in other
lands. In some countries, over 90 percent of
the population is required in agriculture
and even the more advanced nations have
about half of their labor force engaged in
farming. Only one-fifth of our income is
spent for food while in most other leading
nations 40 to 50 percent is required.
This progress in agriculture has released
millions of people from farming to do other
things, and has made possible our highly di-
versified, industrialized, and powerful Nation.
'In other words, we can have a high standard
of living and at the same time spend billions
on military strength. We can and do have
both "guns and butter."
If there ever was a convincing record of
the contributions of quality higher educa-
tion and research to economic growth, it is
plainly before us in what has happened and
is happening in American agriculture, and
Montana is high among the States in the
'dynamic growth and progress of its agri-
culture.
It seems strange, therefore, in the face of
such convincing evidence, that the percent-
age of our national income spent on educa-
i tion, both public schools and higher educa-
tion, has declined steadily for more than a
decade and that Montana public education
and research are suffering a serious dollar
crisis. Today, less than 1 percent (nine-
tenths of 1 percent) of our gross national
,product is spent on higher education and
only 3 percent on elementary and sec-
ondary education. The figures for Montana
are quite comparable.
In the meantime, business and industry
have stepped up their expenditures for re-
search and development. In fact, in
American industry competition has become
,"a race in innovation." Talk with business-
men in almost any field and you find them
convinced that growing research budgets are
a necessity for companies who want to sur-
vive. They say "Just stop your research for
a year while your competitors keep right
,on. You'll be dead. Research fosters steady
,growth even in times of recession."
In the electronics industry, for example,
it is estimated that products unknown 10
years ago account for 80 percent of its cur-
rg
r
rent sales. Chemical companies expect 60 numbers of Montana high school graduates
percent of their 1975 sales to be based on will be knocking at our college doors to be
new products which are now in the intro- prepared for more effective service in our
ductory stages or still to be invented. The highly scientific and technological age. If
National Science Foundation reports that our Montana economy is to grow and develop
during the decade 1945-55 the rate of as it could and should, her leaders in busi-
,growth of industrial research was about ness, agriculture, labor, and government
14 percent per year, greater than that of must see to it that her higher educational
any other major economic activity. institutions-the university system-receive
The scientists for this expanded research adequate financial support. Only with ads-
program and increased economic activity quate financial support can these institu-
come from our college classrooms and tions render services vital to growth and
laboratories. If the job of the colleges is development.
poorly done, it will result in our inability The degree to which this responsibility is
to maintain an effective rate of growth and met will determine, more than any other
cause a serious lessening of our economic single factor, the degree of Montana's fu-
s! nu national strength. ture economic and cultural progress.
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CONGRESSIONAL RECORD - SENATE
17631
For the past several years, we have been
living with shortages of chemists, physicists,
engineers, and other physical scientists. For
many years, we have known that we need
more doctors and other medical personnel,
including nurses, than have been available
to maintain a desirable standard of health
services. Shortages of qualified school teach-
ers have constituted a serious problem since
World War II, especially in the fields of
mathematics and science. The expansion
of college enrollments, with prospects of
even gerater numbers just ahead, has given
us fair warning that there will soon be
acute shortages of competent college and
university teachers. We have also been
hard pressed to provide adequate numbers
of skilled workers and technicians in many
fields.
This demand for an ever-growing num-
ber of scientifically educated and trained
people seems to be built into our American
system of free enterprise and economic
growth. The availability of trained man-
power hastens economic growth; its absence
acts as a brake on advancement. There
would be compelling reasons for our con-
cern over a shortage of trained manpower,
even if the Communist threat to freedom
did not exist.
The investment we make in education is
the heart of the solution to our manpower
needs. Strengthening and improving edu-
cational institutions is the most important
means of securing adequate numbers of
highly trained people needed in numerous
fields of activity. Aside from health, educa?
tion constitutes society's major investment
in people. We have reached the point where
education must be recognized as an invest-
ment in quite new and different terms.
Whenever private enterprise or a business
corporation sees an opportunity to expand,
to increase its output and make a larger
profit, it does not hesitate to increase its
capital investment and enlarge its plant.
Investment proceeds automatically by plow-
ing back funds from earnings into capital
expansion. Where such earnings are inade-
quate, borrowing occurs either through
banks, issuance of bonds, or issuance of
stock, but investment in people (education)
is largely undertaken by the community
from public funds.
Support for this public investment, of
course, is dependent upon decisions by tax-
payers or their elected representatives to
transfer funds from other uses. However,
the process by which the investment need
or the relative investment needs are weighed
is not automatic. Frequently, it is a much
debated controversial subject because there
are many who through ignorance, selfishness,
misinformation or for other reasons, are not
convinced that a tax dollar can be spent as
efficiently for public investment as a dollar
can be spent in the private sector of our
economy. The result, too often, is that the
tax cost is not related to benefits received,
immediately or over the longer pull, but is
branded as wasteful, so the public invest-
ment is not made.
The hour is late. Indeed it is later than
we think. In a year or two much la
e
.
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17632 CONGRESSIONAL RECORD - SENATE ePtember 6
EXPRESSION OF THANKS TO SEN- or the criteria of revenue adequately. ADMINISTRATION'S PLUGGING FORLl N INVEST-
ATOR. MORSE, SENATOR ENGLE, Furthermore, it will not achieve either of MENT LOOPHOLE PLUGGED
AND SENATOR KEATING the two purposes for which the adminis- In the second place, the Senate acted
Mr. MANSFIELD. Mr. ]?resident, at tration designed it. It will not stimulate to eliminate the action which the ad-
this time I wish to thank the Senator investment. It will not significantly ministration recommended which would
from Oregon [Mr. MoasE] the Senator plug loopholes. have ended the deferral of taxes. And
from California [Mr. :ENGL E], and the Mr. President, last year our Govern- in its other action on foreign investment
Senator from New York [Mr KEATING] ment's mammoth deficit was some $6 to it reduced by $175 million the revenues
for the consideration they showed last $7 billion. In the coming year virtually designed to be obtained originally by the
night in allowing the Senate to proceed everyone expects that we will suffer an- administration.
other heavy deficit. Under these cir- GAS PIPELINE GIVEAWAY
fore eht third reading of tax bill be- cumstances it is unwise for the Congress In the third place, probably the least
mmatrks. they made their se pe them eis in hes abeyance and iceance to adopt a revenue measure which would
marks. They held justifiable provision in the bill is that
until that was done; and I thank them sharply reduce revenues. gas pipelines are given, not an invest-
for the consideration they have shown. This is especially true in view of the merit credit of 3 percent as all other
fact. that only a few weeks ago the ad- utilities are given, but an investment
ministration acted to modify deprecia- credit of 7 percent. Of course, the ad-
REVENUE' ACT OF 1962 tion schedules to reduce, in effect, the ministration recommended that gas pipe-
The Senate resumed the consideration tax liability of American business by $11/2 lines be given no investment credit
of the bill (H.R. 10650) to amend the In- billion. This was a wise and necessary whatsoever, and Secretary Dillon was
ternal Revenue Code of 19154 to provide action. But it means that in the pres- very specific in pointing out that there
a credit for investment in certain de- ent year the big deficit previously pre- was no excuse at all to give gas pipe-
preciable property, to eliminate certain dicted will be increased another $11/2 lines an investment credit, since they
defects and inequities, and for other pur- billion. build their pipelines on the basis of
poses. RED-INK DILL certificates of convenience and necessity,
Mr. 'HUMPHREY. Mr. President, I The bill which is before the Senate and since they have been expanding
wish to renew my request of a few min- cuts even deeper into red ink. The $500 very rapidly indeed, and every pipeline
utes ago for unanimous consent that million surplus which the bill would have is going to be built without any relation
there be a quorum call, ar,d I call it to provided, as originally designed by the to their corporate income tax or any
the attention of the minority leader. I Treasury and the administration, now modification of their corporate income
ask unanimous consent that there now turns out to be a $700 million revenue tax.
be a quorum call, and that-the time re- loser. BUSINESS EXPENSE LOOPHOLE KEPT OPEN
squired for it bo divided equally between Mr. President, I want very, briefly to In the fourth place, Mr. President, the
the two sides. run through the reasons for that reve- Senate acted to refuse to close business
The PRESIDING OF:E'ICER (Mr. nue loss and point out how thoroughly expense loopholes significantly. It acted
BURDICK in the chair). Ii-'there objet- and completely unjustified each of these against the recommendations of the ad-
tion? 'Without objection, it is so ordered. cuts below administration recommenda- ministration, and it acted in doing so
Mr. HUMPHREY. Then, Mr. Presi- tions is. in a way that loses virtually $200 million
dent, I now suggest the absence of a The issues I am going to discuss have of revenue which otherwise would have
quorum. - to do with the actions taken V y the Con- flowed to the Treasury.
The PRESIDING OF17CER The gress in contradicting the position orig. As the Senator from Tennessee [Mr.
clerk will call the roll. finally taken by the administration and GORE] pointed out so eloquently, this was
The Chief Clerk proceeded to call the the President. not only a matter of raising revenues
roll. 'UTILITY GIVEAWAY THOROUGHLY UNJUSTIFIED which should be raised and of having
Mr. HUMPHREY. mous consent Mr. President, I The administration recommended people pay taxes which should be paid,
pro ud un rot that
call be e that utilities not be given an investment but also a very real and definite moral
peedi n ngs under the quorum call b credit. Secretary Dillon made a very issue. One of the most unfortunate
suusppended. comprehensive study, one of the finest aspects of American economic life is the
T PRESIDING With- and most scholarly studies I have read, expense account racket, which we all
out objection, it is so ordered. showing that the investment credit could recognize. It is one of the most morally
Mr. HUMPHREY. Mr. President, I not possibly increase the investment by degrading aspects of American life.
understand the Senator from Wisconsin utilities In plant and equipment. Businessmen themselves in many cases
. bill, like speak I comprehensively documented the recognize it is wrong, but Congress has
the e tax m bill, and I wilt yield 1 15 minutes
to him. case against this utility giveaway by decided not to take effective action
against it, although there was a minor
cassuperlative improvement in the law.
Mr.:PROXMIRE. 1: thank the Sena- scholarly into the RECORD two
tor. scholarly studies nailing g the case to to the
The PRESIDING Wisconsin. OFFICER. The mast in detail. The studies were made TWIN CITIES RAPID TRANSIT GETS FREE-VETO-
Senator from by higher competent economists. The PROOF RIDE Mr.:PROXNlIRE. Mr. )President, any credit for utilities is going to cost the In addition to these actions, the Senate
revenue measure wWch comes to the Government of the United States $225 insisted on loading onto the tax bill
Senate or the House should meet, above million, and the testimony is overwhelm- special interest legislation for the Twin
all, the standard of justice and equity. ing on the part of competent economists Cities Rapid Transit System. One com-
It is important that it provide adequate who have studied the subject that it pany is to be the given reli President in rt a tax bill, a
relief which to ap-
revenues; but justice and equity should could not increase the investment by
be the prime criteria for judging any utilities in plant and equipment. As a prove in a bill submitted to him last
revenue measure. matter of fact, not only economists, but year. In fact, the President specifically
The tax bill before the Senate as it competent businessmen who are closest vetoed the bill because it was unjustifi-
emerged from the administration was to this situation, even though they would able. The Senate acted to put that
designed to do a number of things, but benefit greatly, have said so. The vice relief for the Twin Cities Rapid Transit
two primarily: First, to stilulate invest- president and comptroller of the Ameri- System onto the tax bill to make it
ment in plant and equipment; second, to can Telephone & Telegraph Co. testi- vetoproof.
plug a number of loopholes in our tax fled that in the experience of this great enator who con-
laws. As designed by the administra- company this investment credit provi- Mr. scientiously President, acts on any the proposed leg-
tion, it was-expected to increase revenues sion was unwise and would not increase
by some $500 million. This was the esti- the A.T. & T. investment in plant and lation should be inclined to vote against
mate of the. Treasury. equipment, although A.T. & T. would get the bill if only on the grounds of the
The kind of tax bill now pending does a $75 million annual windfall, one-third special interest legislation for one com-
not meet either the criteria of justice of all the benefits going to utilities. pany, and the precedent it would provide.
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Y 9 62 CO1 ESSIONAL RECORD - SENATE
inter-American security system through the
Organization of American States.
"Specifically the OAS Charter and, the Rio
Treaty (Sept. 2, 1947) provides the eans for
c Dimon action to protect the hemisphere
a ainst the Interventionist and aggressive
designs of international 'communism."
Later-on August 24, 1960-President
Eisenhower said:
"The Monroe Doctrine has by no means
been supplanted-it has been merely ex-
President Kennedy. reaffirmed the position
taken by preceding administrations relative
to the Monroe Doctrine when, after the fail-
ure of Cuban exiles to invade Cuba in April
1961 he said:
"Let the record show that our restraint is
not inexhaustible. Should it ever appear
that the inter-American doctrine of non-
interference merely conceals or excuses a
,policy of nonaction-if the nations of this
hemisphere should fail to meet their com-
mitments against outside Communist pene-
tration-then r want it clearly' understood
that this Government will not hesitate in
meeting its primary obligations which are
to the security of our own Nation,"
Now the, situation has reached.a point of
decision. Shall the governments of Central
and South, American countries begraduall
infiltrated and taken over by the Soviets?
The Communist 'apparatus and agents ai-
ready have begun to infiltrate every country,
from. Mexico down to the tip end of South
America. If" the Organization of American
States does, nothing and if the United States
is acquiescent, the Communist foothold in
Latin America will be strengthened and the
Monroe Doctrine will be dead for all time.
It has been sugested" that, if the Uri ted.
States takes forceful action in Cuba, this will
cause the Soviets tlo,raise questions about
Western military bases in various parts of
Europe. ' But - this, too, would be merely a
smokescreen, because Moscow knows that not
a single group of military advisers or tech-
nicians from the West is today based In any
of the Communist bloc countries. There is
no parallel, therefore, and the issue remains
whether the aggression via Cuba and theSo-
viet threat to Central , and South American
countries shall be ignored or some military
and economic action shall be taken to nip it
in the bud now before the buildup becomes
a real menace to the security of the United
States.'
For in Cuba=lust 90 miles from Florida-
the Soviets have stabJished 'th`e1 military
advisers "to tra,n Cuban servicemen," as`the
official Moscow communirue describes it.
In accordance with precedent and custom,
Mr. Kennedy may, decide to ask Congress for
a joint resolution authorizing him to take
whatever military steps are deemed neces-
sary to uphold the Monroe Doctrine. Since
the present session of Congress'niay adjourn
soon, such power might well be given"to the
Chief Executive as Commander in Chief;of
the Armed Forces so that he maybe able to
act promptly in whatever emergency may
suddenly arise in Cuba or anywhere else in
Latin America.
WILL CUBA BE ANOTHER "WALL
OF SHAME"?.
Mr. PEARSON. Mr, President, dur-
ing the last 6 weeks the Soviet Union
made a fateful decision to supply large-
scale, industrial-military aid to Cuba,
sphere has done unchallenged by our
Government.
Statements have been maflo ox ,.trio
Senate , floor- that the Soviets have.
landed troops in Cuba. The President
as difficult as this might be, will make of
Cuba a Western-Hemisphere Berlin
wall, a wall of shame, a symbol of un-
certainty and indecision. .
SOLUTIONS-OPPORTUNITIES LOST
Invasion, or support of invasion, of
Cuba_,.by the United States has been
ruled out by the President as antagonis-
tic to some 220 million Latin Americans
and untold millions in the undecided na-
tions of the world. Yet it is a painful
paradox to recall American military in-
tervention in South Korea, Lebanon,
and the Dominican Republic, and to ob-
sgrve current action in South Vietnam,
Laos and Thailand, while we verbally
sidestep the Soviet takeover of Cuba at
our very doorstep.
The American policy of unilateral eco-
nomic isolation was doomed at its incep-
tion because many members of the
Organization of American States refused
to cooperate. Any possibility of immi-
nent internal Cuban collapse has now
been eased by Russian economic aid.
Rebellion within a police state, heavily
armed with Soviet weapons, is virtually
impossible, as the Hungarians learned
so violently.
Who would suggest that Castro could.
be wooed back to the hemisphere fold of
free nations as a reformed neighbor?
MY POSITION
The responsibility for the administra-
tion of foreign affairs is vested by the
Constitution in the President. Congress
cannot, therefore, initiate the negotia-
tions required to meet this deadly chal-
lenge to the sovereignty of the nations
of this hemisphere. Numerous Members
of Congress have warned of the danger
of playing down the threat which Soviet
intervention in Cuba poses. The failure
of the "Bay of Pigs" invasion has appar-
ently cooled administration enthusiasm
for sponsoring a positive policy in this
case.
These four positive successive steps
could be taken:
First. The President should call upon
the Organization of American States to
condemn Cuba for its military buildup.
At the same time the member countries
should assure Cuba that they will not
be parties to an invasion of Cuba if that
country's militarizing ceases and if it
abstains from subversive activities in the
Americas.
Second. The President should call
upon the members of NATO to discon-
tinue the use of their ships for trans-
porting military supplies and personnel
into this hemisphere.
Third. The President should inform
the Soviet Union that further shipment
of military supplies to Cuba will be con-
sidered an aggressive act in violation of
the Monroe Doctrine and ships carrying
such supplies will be stopped and turned
back.
Fourth. The President should call
upon the Organization of American
States to notify the Castro regime that
unless free elections under OAS super-
vision are conducted in Cuba within a
reasonable time, the threat of the Com-
munist-dictatorship to the welfare of the
people of Cuba and tq the security of
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of troops." The State Department ad-
mits that 3,000 to 5,000 Communist bloc
"technicians," some of which are mili-
tary specialists, have arrived in Cuba,
along with military hardware. Whether
these are "troops" or "technicians" is a
matter of seznantios.. The clear fact is,
the Soviet Union has reinforced its base
within 90 miles of our shores with sur-
face-to-air missiles, missile-equipped
torpedo boats, trucks, munitions, radar
and other electronic equipment, and the
men who know how to use them. More-
over, while our attention has been fo-
cused on the recent arrival of 20 Soviet
ships, the fact Is, that over 60 ships,
many of them leased from Great Britain,
Greece, Norway, Italy, and West Ger-
many-all NATO allies of the United
States-have delivered Mig fighters,
tanks, and artillery.
The present faltering and mismanaged
Cuban economy and trumped-up fears
of an American invasion have provided
an excuse for the Soviets to furnish the
Castro regime with these supplies and
troops. The Soviet interest, however,
is not concerned with the welfare of the
Cuban people but with strengthening its
base in this hemisphere;,, a base which
will be costly for the United States to
neutralize; a base from which it can ex-
port the Communist revolution to Latin
and South America; a base from which
It can apply leverage to offset U.S. ac-
tivity in other areas of the world.
Cuba has thus become a strategically
placed pawn in the cold war.
The next move is up to the President.
WHAT HAPPENED TO THE MONROE DOCTRINE?
The Monroe Doctrine was the result
of an earlier attempt by Russia to push
its domination into North America. It
was announced, by President Monroe in
1823 and has become a keystone of
American foreign policy. President
Monroe stated:
We owe it therefore to candor, and to the
amicable relations existing between the
United States and those (European) powers,
'to declare that we should consider any at-
tempt on their part to extend their system
to any portions of this hemisphere, as dan-
gerous to our peace and safety.
The President reaffirmed this policy
on September 4, 1962, but only insofar as
it applies to the use of military force by
Cuba to extend communism into South
America. To date the President has pre-
ferred to consider the Soviet-supplied
arms as defensive, weapons, but recog-
nizing their offensive potential has
warned that "the Castro regime will not
be allowed to export its aggressive pur-
C poses by force or threat of force."
'If the- Monroe Doctrine is in fact -a
part of our foreign policy, then it must
apply to the Cuban situation in a broad-
er sense. It must restrict nonmilitary
as well as military aggression. We have
learned from costly experience that a
Communist aggression utilizes devices
much. more Subtle than outright military
action and granted a militarized base in,
the Western Hemisphere, the Soviets
will export revolution to all of the Amer-
icas.
Failure to give this full meaning to the
Monroe Doctrine, in this particular case,
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OIZ648
this hemisphere will require a full block-
ade of the island.
These are harsh steps with recognized
dangers, Our past is dotted with the
errors resulting from timidity and in-
decision which handed the Communists
priceless victories-the Rhine, the 38th
parallel, the Berlin wall. We will not
be secure if Cuba is added to this list.
REVENUE ACT OF 1962
The Senate resumed the consideration
of the bill (H.R. 10650) to-amend, the
Internal Revenue Code of 1954 to pro-
vide a credit for investment in certain
depreciable property, to eliminate cer-
tain defects and inequities, and for
other purposes.
Mr. WILLIAMS of Delaware. Mr.
President, I yield 5 minutes- of my time
to the Senator from Massachusetts.
Mr. SALTONSTALL. Mr. President, I
shall vote against the tax brill. This has
been a very difficult decision for me to
make, because there are some good pro-
visions in the bill which I would like' to
see put into the law, and there are some
provisions in the bill of which'I do not
approve. In my opinion, it i s a marginal
bill,, and for that reason it is a very
difficult decision to determine how to
vote on It.
The sections I.would like to see be-
come law, and which I hope will become`
law in any tax revision that is submit-
ted at the first of the year 'by the" resi-
dent, concern:
First, revision of existing law with re-
spect to the bad debt reserve provisions
applied to mutual savings banks, domes-
tic building and loan associations, and
certain cooperative banks.
Second, correction of ann. imbalance
which exists in the treatment of mutual
fire and casualty insurance companies
as compared to stock fire and casualty
insurance companies.
Third, revision of the tax treatment
of coope:ratives and patrons.
Fourth, elimination of some tax havens
abroad and lobbying abuses.
These are all provisions which would
be helpful, and I would like to see them
Included in a tax revision bill.
Contrasted with these favorable pro-
visions, is the question of the provision
for investment credit. I voted against
this section when it came before -the
e
Senate as an amendment, which, 'as I
understand, would result in an annual
revenue loss of approximately $1,300
million. This provisiorL is not-, f as
I see it, because it will Help some indus-
tries, but not others which are in' the
same category and in the same position.
I am in favor of a proper allowance
for depreciation that will not be limited
to a specific period of time. If industries
have a :proper allowance for deprecia-
tiori, they will have a greater opportu-
nity for improving their plants.
In addition, as a membefof the'Ap-
propriations Committee, I have .watched
the appropriation bills this irear. I can-
not see that we have been able to effect
any substantial decrease in appropria-,
tions to any of the departments; certain-
ly we have not been able to do' so up
to the present tine. We know that with
CONGRESSIONAL RECORD - SENATE
/A
the problems we have in relation to our
national security the Defense Depart-
ment appropriations are going to increase
over the next few years, rather than de-
crease.
So this issue involves the question of
constant Federal deficits and a constant
drain on our gold supply.
. These are very fundamental reasons
for opposing the bill. Although, as I
have said, it does contain some good pro-
visions, itis still a marginal bill. If the
Senate passes the bill, it will then go
into conference. There are more provi-
sions in the House version of the bill
that I would oppose. The Senate con-
ferees will be in a position of having to
yield something to the House conferees,
which may result in the version of the
bill containing certain provisions which
I might strongly oppose.
We are also told there will be a new
tax bill submitted for our consideration
next year.
The bill, as amended by the Senate,
would decrease governmental revenues
on a full-year basis by $585 million, and
I believe perhaps even more.
For all the reasons I have stated, I
shall vote against passage of the bill.
As I say, 1 do it with considerable hesi-
tation because, of the good features in
the bill; ar. d because we know certain tax
provisions should be improved. The
overall balance, is, against the bill, and
I shall vote against its passage.
Mr. WILLIAMS. of, Delaware. Mr.
President, I yield 10 minutes to the Sen-
INFORMING THE AMERICAN PEO-
PLE ON WHAT IS REALLY HAPPEN-
ING IN CUBA -_:
Mr. SCOTT. Mr. President, in his
September 5 statement on Cuba, Presi-
dent Kennedy said that the administra-
tion would "continue to make informa-
tion available as fast as it is obtained
and properly verified." All Americans, I
am sure, received this assurance with
much relief. The American people be-
come very restless if facts to which they
are entitled, without danger to our se-
curity, are not made promptly available
to them so that they can understand the
policies of their government. To a cer-
tain extent, the assurance by the Presi-
dent of a steady flow of facts will do
much to prepare the American people
for developments in our foreign policy.
It should be noted that revelations to
date with regard to the very serious crisis
in Cuba have come on the initiative of
the press and of the Congress. Revela-
tions have been made by the press which
were not made to the American people
by the State Department and which were
not the subject of statements by the
President. They were revealed by such
eminent Members of each body as the
distinguished junior Senator from New
York, [Mr, KEATnvc], the distinguished
Representative from California, Mr,
HOSMER, and several others.
Right now, many Americans are
worried about published information
which has not received verification from
the administration. Especially nu-
merous are reported facts of this sort
September 6
about the Cuban situation. American
fears could be alleviated if President
Kennedy would fill the information
vacuum concerning Cuba by "obtaining
and properly verifying" the following
news reports:
First. Is the international brigade of
Communists in Cuba now numbering in
the thirty-thousands? Is this brigade
partially composed of 1,500 Ghanaian
troops, 900 Red Chinese, 200 Algerians,
and numerous Communist contingents
from other Latin American countries?
Are other troops from Asia and Africa
billeted in Cuba? Where are these
troops located? Are the Russians in Las
Villas Province, the Red Chinese on the
Isle of Pines, and the Ghanaians near
Cienfuegos and Mariel? How many
other Communist countries have mili-
tary and technical personnel and in what
numbers?
A dispatch by a writer for the London
Daily Mail points out, for example, that
from 5,000 to 8,000 Russians have ar-
rived so far. The writer states:
A Western ambassador in Havana told me
categorically:
I should like for Senators to note this
quotation, because if the Western am-
bassador could talk to a London news-
paperman, I ask whether anybody is
talking to our State Department about
the same things. And if they have been
talking to our State Department, why
have the American people not been told?
I read what the Western ambassador
said:
I have reported to my government, despite
al denials, that many of these men are
So iet troops, that they are arriving in in-
cr asing numbers, and this is all part of a
c efully planned military operation to
u derwrite the Castro regime.
The writer of the article also says:
Arrivals of the Russians in large numbers
is seen by many diplomats in Havana as driv-
ing a final nail into the coffin of the Monroe
Doctrine-the statement of U.S. foreign pol-
icy which established, over a century ago,
the "hands off" attitude to outside powers
with ambitions in the American hemisphere.
This much is certain from what I have just
seen in Cuba:
No large-scale attempt to overthrow the
Castro regime could now be launched by the
United States or Cuban exiles without Rus-
sian blood being spilled in the process.
I watched the Russians in two separate
encampments-after being told they were a
"ghost army" existing only in the imagina-
tion of Americans.
They looked pretty healthy ghosts to me.
That has to be contrasted with the
President's press conference statement
of "no troops," and with the incredible
letter received by the Senator, from New
York [Mr. KEATING], on the 30th of
August, stating that we have no infor-
mation that any Soviet bloc troops have
landed in Cuba.
However, I wish to congratulate the
Senator from New York for hearing
from the State Department, in reply
to his letter of August 14, by letter of
August 30, which is only a 16-day lapse
in the reply to a minority Member of
this body. I think that establishes a
record. -I hope that someday we may
hear from them in even as brief a period
of time as 13 days, or perhaps even 14
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 1962
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CONGRESSIONAL RECORD SENATE
days after we address a communication
to them.
I hope the President will have an op-
portunity to obtain the reports and to
properly verify them.
Second. Is the Soviet Union setting
up a base in Cuba for the tracking of
space experiments? I refer to our space
experiments off Cape Canaveral.
Third. How many missile sites are in
being or are planned for the near future,
using Soviet missiles? What is the
range of such missiles?
Fourth. Is the Soviet Union supply-
ing Cuban Communists with diversified
late-model weapons? Is there a ring of
such weapons-heavy artillery and anti-
aircraft guns-surrounding the U.S. base
at Guantanamo? Are all the Russian
arms shipments payments or base rights
given to them by Castro?
Fifth. How large is Castro's army?
Does it now contain in the neighborhood
of 300,000 troops? Is this the largest
army in Latin America?
Sixth. Have Soviet Migs replaced the
United States and British warplanes in
the Cuban air force? Are there more
than 100 jet fighters at 14 bases in
Seventh. What is the significance of
the arrangements for establishment of
regular airline service between Havana
and Moscow?
Eighth. Are the Russians handling all
the installment of modern military equip-
went in Cuba? Is the operation of all
such equipment in the hands of the
Ninth. What is the precise number of
Red Russian-owned or leased ships now
docking at Cuban ports? Is the increase
considerably higher than the 60 ships
observed since mid-July?
Mr. President, all the above facts, if
verified, clearly point to a violation of
the Monroe Doctrine by the Soviet
Union. I believe that most, perhaps all,
can be verified. The Doctrine warns
greedy foreign powers that "we should
consider any attempt on 'their part to
extend their system to any portion of
this hemisphere as dangerous to our
peace and safety." Mr. President,
Khrushchev has already said that the
Monroe Doctrine is dead.. Castro has
called the Doctrine a worthless docu-
ment. Plainly both of the these Com-
munists are taking themselves seriously
and acting as if the Doctrine did not
exist.
But the Monroe Doctrine does exist
The big question' is whether the United
States intends to implement it. On this
.point, the President of the United States
has again assured us that our Govern-
ment "will not hesitate in meeting its
primary obligations, which are to the
security of our Nation." But the news
items I have gathered do raise the ques-
tion "when is the security of our coun-
try threatened?" When Communist in-
;filtration, of the. magnitude now, going
on, lr''C uba tale place, many Americans
feel that a definite threat already exists.
President Kennedy could well allay these
fears by acting as quickly as possible in
examining,, verifying publicly and mak-
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ing available to the American public the
whole story of this Red base of opera-
tions 90 miles from our shores.
If the facts are true, then a number
of steps are open to the United States
to deal with the Communist menace.
Among the most feasible is to convince
the Organization 'of American States to
deal firmly with Castro. Mr. William
S. White in his September 5 column has
this to say:
We should try one more time to persuade
the Organization of American States to act
in honesty and honor against the Soviet
cancer in the Caribbean.
The Secretary of State has called a
conference of Latin American ambassa-
dors. I suggest that we request all of
our neighbors in this hemisphere to
join with us in convening the Organiza-
tion of American States, that we take
the lead in securing the consent of as
many of them as will join us in a multi-
lateral warning to the Communist States
to cease the arming in Cuba. I propose
that we set a deadline, after which we
should proceed, multilaterally if pos-
sible, unilaterally otherwise, to declare
foreign military exports to Cuba to be
contraband and subject to blockade. If
we do so proceed, we can stop Commu-
nists from exporting revolutions to this
hemisphere. If we do not, we will be-
fore long be faced with Communist dic-
tatorships elsewhere in Latin America.,
The PRESIDING OFFICER. The
time of the Senator has expired.
Mr. WILLIAMS of Delaware. I yield
an additional minute to the Senator
from Pennsylvania.
Mr. SCOTT. Mr. President, I ask
unanimous consent to have printed at
this point in the RECORD a report known
as an uncensored, eyewitness report
entitled "Russians in Cuba Are Real,"
appearing in the Harrisburg Patriot and
the article by Columnist William S.
White, to which I previously referred.
There being no objection, the articles
were ordered to be printed in the RECORD,
as follows:
COLUMN BY WILLIAM S. WHITE
WASHINGTON.-The Soviet Union's publicly
boasted military penetration of the West-
ern Hemisphere in Castro Cuba is many
things, apart from the most insolent menace
to the New World that the United States
has ever tolerated.
It destroys forever the airy assurances of
pseudo-liberals that revolutionary move-
ments are fine things indeed-so long as
they involve leftwingers.
It places, a terrible responsibility before
history upon all those Americans who
cheered Fidel Castro on in Cuba long past
the point where it was plain that he was
transplanting the evil fungus of armed inter-
national communism to within 90 miles of
our Florida coastline.
It bankrupts the whole evangelistic
theory, parroted with religious fervor, that
communism results from capitalistic injus-
tice, et cetera, and will vanish at once, given
the spreading of sufficient welfarism among
the masses.
Cuba, before Castro, was never half so
underprivileged as dozens of other lands
which have never sought the lethal em-
brace of Moscow.
It fully supports what has long been fully
obvious-that communism, like Hitlerism
17649
before it, is a movement of bandit ferocity
and cannot be explained by old-lady minds
as simply springing from too little milk for
the kiddies and too little free land for the
workers and peasants.
It brings into the gravest question the
practicality of the vast effort being made
by the United States through the Alliance
for Progress to cure all the ills of Latin
America with economic aid.
Foreign aid is a sound and splendid
thing-when it is given to nations willing
and able to use it for freedom's strength
and openly and unashamedly against com-
munism.
But the bulk of the more powerful Latin
American nations, while avidly ready for our
economic aid, have repeatedly refused to fol-
low us in any total quarantine of Castro
Cuba. It is fashionable to say that we, the
United States, should never force our views
upon the recipients of our aid.
This is the line even when precisely our
views are essential to maintain that freedom
from "foreign domination" for which the
Latins so endlessly clamor-especially those
who have snuggled up closest to international
communism.
Brought into question, too, is the very
validity of the Organization of American
States. This association of the nations of
this hemisphere was created to prevent just
the kind of foreign penetration which is and
long has been so openly involved in Castro
Cuba.
But an effective majority of the OAS has
thus far been unwilling to take any fully
rational step against Castro Cuba. The most
ironic of all excuses is given by the nation
closest in geography to us, Mexico. She has
said that while she would like to help, she
just can't find any precedent for it in in-
ternational practice. There is a sour taste
in this-for Mexico, of course, is famous for
its scrupulous respect for both law and
justice.
So what is now left to the United States?
We should try one more time to persuade the
Organization of American States to act in
honesty and honor against the Soviet cancer
in the Caribbean. Failing this, we should
raise a new collective military organization
from among the minority who are our real
friends in Latin -America.
Much the same was done in 1949, when we
created the North Atlantic Treaty Organiza-
tion from within the United Nations when
it became clear that the U.N. would do
nothing about Soviet aggression in Europe.
And failing this, the United States should
act alone to clear the Soviet military ap-
paratus from Castro Cuba, come what might.
UNCENSORED, EYEWITNESS REPORT-RUSSIANS
IN CUBA ARE REAL
(By Keith Morfett)
(EDITOR'S NOTE.-Keith Morfett, roving
Latin American correspondent, for the Lon-
don Daily Mail, has visited Cuba eight times
during the past 21/2 years, most recently last
week. He flew to Miami to write the reveal-
ing, uncensored story which the Patriot
presents here because of its significance in
the light of the Soviet buildup in nearby
Cuba.)
Thousands of strapping young Russians
are moving quietly into tented military en-
campments close to the outskirts of Havana
in a vast Soviet buildup that is causing
deep concern among diplomats in the Cuban
capital.
From 5,000 to 8,000 Russians have arrived
so far.
A Western ambassador in Havana told me
categorically:
"I have reported to my government, de-
spite all denials, that many of these men are
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17650 CONGRESSIONAL RECORD - SENATE September 6
Soviet troops, that they are arriving in in- effective stirulus to that growth At a Senate, puts us in a good positions to
creasing numbers, and this is all part of a time when we are concerned with the work out in the conference committee
carefully planned military operation to un- continuing deficit in our balance of pay- an effective means of curbing disgrace-
derwrite the Castro regime." ments, it offers significant help to reduc- ful abuses without interfering with
29'sMany . Many All of have the Russians
reached d Cuba e:a in aboard their three early ing and eliminating that deficit-and genuine business travel or entertainment.
Soviet passenger liners. thus reducing the chronic drain on our Finally, the bill is one which reflects
At the same time, a contin.uouei armada of gold reserves. At a time when we are a high degree of fiscal responsibility.
cargo ships is now stretched out between concerned with the effect of our tax sys- While some initial revenue loss is pos-
Russia's Black Sea ports and Cuba, carrying tem on our society and our economy, it sible, the fact remains that over the long
trucks, jeeps, machinery, food, guns-and offers a solu.tion to a number of long- run, enactment of H.R. 10650 will con-
ground-to-air missiles for Fidel Castro's standing tax problems. The provisions tribute immeasurably to the growth of
armed foscos. -- -
Arrivals of the Russians in large numbers Of this bill have been voted by the Sen- the American economy. This will mean
is seen by 'many diplomats in Havana as ate after more than a year of careful larger tax collections, without higher
driving a final nail. into the coffin of the consideration in the Congress, after 5 tax rates in the years to come. Now
Monroe Doctrine-the statement of U.S. for- months of hearings and work by the there are estimates that the full year
eign policy which established, over a century Senate Finance Committee, and after revenue loss under the bill as amended
ago, the "hands off" attitude to outside more than a week of debate in this would be as low as $240 million. The
powers with ambitions in the_- American Chamber. highest estimate-the one made by the
hemisphere. H.R. 10650 is a sound bill. Its provi- staff of our Joint Committee on Internal
j ust This seen in much Cuba: certain from what I have sions correct inequities and remove loop- Revenue Taxation-reaches $585 million.
No large-scale attempt to, overthrow the holes which have defied solution for My own estimate is that the loss even
Castro regime could now be launched by the years-the taxation of business income in the beginning would be much less
united States or Cuban exiles without Rus- earned abroad, the taxation of personal than either.
sian blood :being spilled in the process. income earned by nonresident citizens, The distinguished Senator from Vir-
I watched the Russians in two separate the collection of taxes on interest and ginia [Mr. BYRD], in offering his report-
encampments-after being told they were a dividend income, the tax treatment of ing amendment to the bill, stated that in
"ghost tion on of of Americans. only In the imagina- entertainment and travel expenses, the his judgment it would be as effective in
.
They looked pretty healthy ghosts to me. taxation of cooperatives, mutual thrift collecting taxes as the withholding
Hefty, athletic, and looking a lot better fed and mutual fire and casualty insurance amendment would have been. I say that
than their Cuban hosts, they crowded up to companies, and the taxation of proceeds if it is half as effective, there will then
barbed-wire fence at the first camp I found from the sale of depreciable property. be no deficit by reason of the enactment
near the village of El Cano. H.R. 106:50 taxes those who have of the bill.
They appeared to be members of the kind escaped taxation in the past, but, in no Will anyone seriously argue that this
fighting tr?~usuallyops to moved set in up advance cof establish regular case is it punitive in intent or -effect. is too high a price to pay for legislation
camps,
communications networks and accomplish Throughout the long process of shaping to increase the growth and vigor of the
other related chores. this bill both the Congress and the American economy, to strengthen our
In the tropical heat they looked unhappy Treasury have met with responsibility Nation's economic position in the world,
and homesick. They had cloth caps and and with understanding the needs of and to improve the fairness of our tax
denim trousers and clustered together for American business. system?
comfort like sheep on the range in a The main provision of the bill-the in- In summary, this bill gains ground in
rainstorm. vestment credit-will, I am convinced, almost every single area sought by the
and The the next contrast lot I between looked d the: El at t was nsno so great crowd in years to come, be viewed as the most President. It provides a critically needed
g
that it became clear Cuba's Russians fall important single measure to strengthen source of new vitality for our domestic
into two distinct categories: and revitaize the American economy economy. It contains significant help
The El Cano Russians were recruited into enacted by the 87th Congress. It will to our balance of payments position. It
"labor battalions" rather like the British provide American producers with the plugs a number of tax loopholes, it re-
Army's Pioneer Corps. They will dig ditches, stimulus they need both to modernize to moves a number of tax inequities, and
lay
A cables and do all away, the down a a donkey e side work. road
few miles meet foreign competition and to accele- it does these things without imposing
the e whole countryside wswas surut rate expansion of our domestic economy. hardship on any single taxpayer or on
udd(m ddenlyy swarm-
ing with Soviets. This time they were ob- In addition. the foreign income provi- the taxpaying American public as a
viously on different business.' Hundreds of sions are designed to prevent any pos-, whole.
them moved around among military vehicles sible interference with productive It is a good bill, and I believe it de-
parked under trees, in fields alongside hedges American business operations overseas, serves the support of every Member of
and between row upon row of. khaki-colored and one particular section is specifically this body who would help build a strong-
tents.
Nearby, antiaircraft guns in freshly dug designed to assure that no additional er, healthier, revitalized American econ-
pits were manned by Cuban militiamen. urden is pl aced on firms primarily en- omy.
Machineguns were mounted. at all approach gaged in the sale of American-made The bill as it is before the Senate
roads into the camp. By the tasks they were products. has the support of the administration
doing, checking their equipment on radio The sections of the bill covering taxa- through the. Treasury Department. That
trucks, command vehicles and signal equip- tion of income earned abroad are not is a well-known and significant fact. I
went, these Russians appeared to be military aimed at capturing every possible dollar hope that it will be passed.
technicians. such as signal, staff, and else-
neers. of tax revenue. They are aimed at end- The PRESIDING OFFICER. The time
tropic engi has expired.
ing tax abuses which harm this country of the Senator --Mr. MANSFIELD. Mr. President, I
he e "
by resco f ol a the nd o flow t to
o our
REVENUE ACT OF 3,962 shores of dollars earned overseas. For yield 2 additional minutes to the Senator
from Oklahoma.
The Senate resumed the consideration balance-of-payments reasons, it is vitally Mr. KERR. On page 17367 of the REC-
of the bill (H.R. 10650) to amend the important that we remove these tax bar-
Internal Revenue Code of 1954 to pro- riers against the repatriation of money ORD for September 4, I ask unanimous
vide a credit for investment in certain earned abrc ad by American citizens and consent that the language beginning at
depreciable property, to eliminate cer- American businesses. . the figure (3) down to and including the
and for other Two other provisions deserve mention: equation designated as "(4) " be printed
twin defects and inequities, ar in the RECORD.
purposes. The reporting requirement on divi-? There being no objection, the excerpt
Mr. MANSFIELD. Mr. President, I dend and interest income may not be as was ordered to be printed in the RECORD,
yield 7 minutes to the Senator from effective as -withholding, but it represents
as follows:
Oklahoma. a significant step forward in an area in
Mr. KERR. Mr. President, H.R 10650 which tax evasion has long been wide- It =a[APtt}1/st_1-(P/S) t]
is important urgent tax legislation. At spread. where It is investment, in real terms, in a
a time when we are concerned with the The prov'_sion covering travel and en- given year t; APt+1, output anticipated in the
rate of growth of our economy, it offers tertainment expenses, as voted by the given year for the next year, l t+i; St-1, the
Approved For. Release 2006/11/11 CIA-,RDP64B00346R0002001500-10-6