TELFORD TAYLOR AND THE CIA

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0027-7 Approved ~&,Wflgg,69AL3RE8R -RD S 413 EN~V a distant repetitiveness, and Moscow will be unimpressed. All the words we can say about Berlin are as fragile as the Soviet pledge to honor our access routes. It is only what we do that will communi- cate our unalterable purpose. The only rights that Khrushchev will re- spect are the rights that we are willing to fight for. And he has seen no evidence that we are any more willing to fight seriously for Berlin than we were to fight for Laos or Cuba. There is one way, and one way only, in which we can make our determination so unmistakable that history can never record 1961 as a year in which we were tragically misunderstood by the Communist imperial- ism. That way is by clear preparation for a military engagement. This will not be sabre rattling. There would be no threats of nuclear weapons; in- deed no threat at all, merely the quiet preparation for defending the status of West Berlin. What these preparations should be would depend on a careful calculation of the prob- able challenge. Presumably stockpiling of military and civilian supplies would be in- dicated in West Berlin and in the West Ger- man termini of communication routes across East Germany. Armored trucks and trains should be readied, and fighter planes stationed at suit- able West German airfields. Additional transport planes could be ferried across from this country. These would conspicuously be the weapons of an engagement strictly limited to the en- forcement of our rights of access to Berlin. They would be in no way aggressive in ap- pearance. There would be no increase in the number of troops in West Berlin (United States, 4,000; United Kingdom, 3,500, and French, 3,500). The entire deployment would be most un- excitably carried out, and we could hope that in the process our official spokesmen might exhibit the same confident good humor that President Kennedy exhibited when he suggested that Khrushchev not plan to nail up the tiger skin of economic victory until he had captured the tiger. In all this we shall need the understand- ing cooperation of our NATO allies, and this may preclude any peacemaking role for Prime Minister Macmillan. For there not only can be no compromise which prejudices our position, there can be no indication that such a compromise might be considered. In no way can we say in words that we mean to stand firm. The calm preparation to meet the challenge headon-that is what will say what we mean to say. CAMPAIGN OF DECEPTION Mr. BRIDGES. Mr. President, much has been said in the past with respect to the proposition of Red China being ad- mitted to the United Nations and, I as- sume, this controversy will develop even more fully in the immediate future. My position against the inclusion of the Peiping regime in the U.N. is well known. If anything, I feel more strongly now that to admit Communist China to this international body would be one of the most tragic mistakes of our time. A recent editorial in the Manchester (N.H.) Union Leader, entitled "Cam- paign of Deception," refers to the admis- sion of Red China to the U.N. as "the grand betrayal." This is an outstanding editorial. Its comments about the latest report of the National Strategy Commit- tee of the American Security Council are most straightforward and informative. I ask unanimous consent that the text of this fine editorial be printed at this point in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: From the Manchester Union Leader, June 24, 19811 CAMPAIGN OF DECEPTION The latest report of the National Strategy Committee of the American Security Council presents an intelligent analysis of one of the most misleading of all arguments put forth by proponents of U.N. acceptance of Red China's membership. We're referring, of course, to the non sequitur-"We can make no real progress with disarmament unless Communist China participates." Therefore: "We can make no real progress with disarmament unless Com- munist China becomes a member of the United Nations." It should be obvious that the latter infer- ence simply does not follow from the original premise. Yet, Peiping's apologists in our own country and throughout the world have sought to confuse the whole issue by writing supposedly learned epistles based on the illogical assumption that the admission of Red China to the United Nations would in some way aid the cause of disarmament. The truth of the matter, as the ASC report points out, is that "admission of another Communist state would make it possible for the Communist bloc to take an even more rigid and belligerent position on all disarma- ment matters." Of course, if Red China did qualify for membership in the U.N., i.e., if Red China were a peace-loving nation, if Red China accepted the obligations of the U.N. Charter, and If Red China was able and willing to carry out these obligations, then, the ASC report acknowledges, "the prospects for dis- armament would be greatly improved." However, the National Strategy Committee emphasizes, "the pious hope that making Communist China a member of the U.N. would force her to bow to the pressures of world opinion and abide by both the spirit and the letter of international agreements, is hardly a sound basis for the reduction of armaments." The assumption that Red China's presence at the Conference in Geneva of the Ten Na- tion Committee on Disarmament this August would aid the Committee in its work is unbe- lievably naive. The free world, unless it chooses to close its eyes to the facts-will see the type of obstructionism Red China would employ as a member of the U.N. when the Fourteen Power Conference on Laos attempts to reach a solution to that particular problem. And the ASC report is right on target with its analysis of how Red China's participation in this Conference "will undoubtedly be used propagandawise to emphasize the Communist line that a nation of 600 million cannot be ignored; that it is firmly established and will remain the true Government of China; and that it is prepared to work with other nations to contribute to a lessening of ten- sions. These themes will be played over and over again throughout the summer months, echoing from the sophisticated international Conference headquarters in Geneva through- out the capitals of Asia, Africa, and Latin America." Indeed, Peiping's inclusion at the Confer- ence table is a calculated move to wear down the opposition of Congress and the over- whelming majority of the American people to the grand betrayal-the admission of Red China to the United Nations. TELFORD TAYLOR AND THE CIA Mr. BRIDGES. Mr. President, I re- quest unanimous consent to have printed in the body of the RECORD an article which appeared in the Newark (N.J.) Star-Ledger of June 14, 1961. This article appeared on page 1 under the heading "Protests Mount Against Tel- ford Taylor as CIA Boss." It was writ- ten by Edward J. Mowery under a Wash- ington dateline. I think the information contained in this article may be of interest to the Members of the Senate because some confusion arises with respect to indi- viduals named "General Taylor." There being no objection, the article was ordered to be printed in the RECORD, as follows: PROJECTS MOUNT AGAINST TELFORD TAYLOR AS CIA Boss (By Edward J. Mowery) WASHINGTON.-The active boom for re- tired Brig. Gen. Telford Taylor to head the Central Intelligence Agency has caused grave concern, even consternation, on Capi- tol Hill. Allen W. Dulles, 68-year-old CIA Director (since 1953) has evinced no desire to step out. But he has been held personally re- sponsible for the abortive, CIA-directed Cuban invasion and is expected to be re- placed. Taylor, a product of Harvard Law School, a native of Schenectady, and a New York City lawyer, is known as a perennial champion of leftists, whose professional talents have aided such individuals as Harry Bridges, various Smith Act defendants, and union moguls with asserted Communist leanings. Others mentioned for the Dulles post are Gen. Maxwell D. Taylor (who heads a com- mittee probing CIA), Deputy Attorney Gen- eral Byron R. "Whizzer" White (reputed choice of his boss, Robert F. Kennedy), and Gen. Matthew B. Ridgway (favored by Gen. Douglas MacArthur). But the ground swell for Taylor's nomina- tion, it was learned yesterday, has reached the cloakroom discussion stage, and Taylor has reportedly been interviewed extensively for the CIA post. Taylor supporters claim they have the sympathy of Walter W. Rostow, deputy spe- cial assistant to the President for national security affairs. Lawmakers on both sides of the aisle coyly dodged all direct questions relating to the Taylor rumors, but they did not mask their concern. Congress, they indicated, will take a hard, solid look at any nominee for the important CIA directorship which requires Senate con- firmation via the Senate Armed Services Committee. Senator THOMAS J. DODD, Democrat, of Connecticut, vice chairman of the Senate Internal Security Subcommittee-who also refused to comment on Taylor rumors- characterized the CIA top post as a vital rung in safeguarding America's security. DODD, who has served with Naval Intel- ligence, the FBI, and as vice chairman of the Nuremberg war trial review board, declared: "This position (CIA Director) is one of the most sensitive, delicate, and important in the Federal Government. Both the Pres- ident and the country must have unques- tioned confidence in whomever is chosen to fill it. "I would place this position on a level with that of the Secretary of Defense and Direc- tor of the FBI, requiring the same kind and degree of confidence as that reposed in J. Edgar Hoover. Approved For Release 2004/03/11 : CIA-RDP64B00346R000200170027-7 Approved For Release 2004/63/11 : CIA-RDP64B00346R000200170027-7 CONGRESSIONAL RECORD - SENATE f 11173 I recently read an editorial from his Oakland Tribune which illustrates this fact. The editorial, entitled "The Berlin Powder Keg," correcty states: The supply of little surrenders has been exhausted. * * * On the issue of Berlin the chips are down and the sooner 180 million Americans face up to these facts the more likely our Nation is to survive and with us a free world of freemen. Our actions with respect to Berlin could, well be the deciding factor in the efforts of freemen to win the struggle with Communist oppression. A conces- sion to Russian threats would be dis- astrous. The editorial in the Oakland Tribune by our former colleague is an outstand- ing commentary on this crisis, and I ask unanimous consent that it be printed at this point in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: THE BERLIN POWDER KEG Will the lights be going out in Berlin be- fore the year 1961 passes into history on De- cember 31? In Washington, Moscow, Bonn, Paris, and London the implications of the Khrushchev thinly veiled ultimatum is better understood than it is away from the capital cities. Before we hardly know it summer will pass into fall and the preparations for Christ- mas with its message of "Peace on earth, good will to men" will be subverted by the rulers of the Kremlin determined to force a' showdown even at the calculated risk of war. They anticipate that their will and iron nerve will outlast what they consider "the decadent West" and will result in an abject surrender by the ' North Atlantic powers. Despite the Munich-minded men in our own country and among some of the allied nations there can be no surrender of the free people of Berlin without destroying the morale of freemen everywhere to resist Com- munist tyranny. These are the stakes Mos- cow is playing for and determined to win. The supply of little surrenders has been exhausted by the stalemate in Korea, the farce at Geneva, the offer of payment of tractor blackmail to Castro and the back- down, after brave words, in Laos. On the issue of Berlin the chips are down and the sooner 180 million Americans face up to these facts the more likely our Nation is to survive and with us a free world of free- men. At an early date the wives and children of our combat-ready forces in the isolated garrison of Berlin should be withdrawn, for no nonresident women and children should be available as possible hostages to com- munism. It will soon be time for our forces and the city of Berlin to strip for action. No nonessential personnel or nonproductive workers should be left there to be furnished food, fuel, and clothing by airlift or other- wise. As a completely surrounded outpost of freedom neither the token forces there nor the courageous civilians of Berlin could long hold out against a massive Soviet or East German Communist effort to take the city. But neither was the Alamo, Fort Sumter, or Corregidor able to hold out against the overwhelming odds against those garrisons. The forces which won the initial struggle lost the three wars against us. But nothing will impress Khrushchev and his Presidium more than the certain knowl- edge that we have determined to preserve this island of freedom, that we understand the calculated risks involved and the poten- tial costs. We will not fire unless fired upon but if our garrison and the free city of Ber- lin is attacked by Communist forces, East German or Soviet, the Communists must know that we will fight with all the weapons and all of the power of a free people deter- mined to remain free. This resolve was so clearly enunciated in the Declaration of In- dependence in these words: "And for the support of this declaration, with a firm reliance on,the protection of di- vine providence, we mutually pledge to each other our lives, our fortunes, and our sacred honor." "HOW TO MAKE A PORK BARREL" Mr. BRIDGES. Mr. President, an editorial entitled "How To Make a Pork Barrel," which appeared in a recent edition of the Wall Street Journal, pro- vides a shocking revelation of the extent to which the urban renewal program is used and abused. The facts brought out in this reveal- ing column make previous advocates of pork-barrel legislation look like skin- flints. When, in the name of urban re- newal, a town can receive as much as $478 in Federal funds for every one of its inhabitants, we have certainly hit a new high-or perhaps the word should be low-in fiscal irresponsibility. I believe this commentary should be read by every Member of this body, and I particularly commend it to those Sena- tors who champion the cause of a multi- billion-dollar urban renewal program. I ask unanimous consent that the edi- torial entitled "How To Make a Pork Barrel" be printed at this point in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: How To MAKE A PORK BARREL If the phrase "urban renewal" conjures up any clear image it is that of a street scene in one of our great cities, with its rows of tene- ments swarming with people lacking not merely room to move but air to breathe, a congestion that chokes not merely the view but the community that surrounds it. Such, anyway, was the image that sup- posedly moved Congress to pass the multi- billion-dollar urban renewal program. There was little inquiry as to why the slums and congestion existed or why the cities were unwilling to renew themselves. It was suffi- cient that the condition was; therefore, to apply the familiar remedy of billions from Washington. Well, the actuality has turned out to be something different, as a detailed report in this newspaper the other day revealed. Whatever else this program may be, it isn't urban renewal. A more accurate name today might be "the village landscaping program" or, if people were willing to be bluntly honest, the Fed- eral pork barrel project. That old favorite of Congress, the rivers and harbors bill, just can't compare with his handy, bulging cask for dipping into. Take just a few samples from the many reported in our recent story: The metrop- olis of East Granby, Conn., $246,000 of Fed- eral funds for its 2,434 people. Lithonia, Ga., $102,800 for its 1,667 people. Atchison, Kans., $1,916,800 for its 12,500 people. Or look a little more closely at the situa- tion in Mercedes, Tex., a town of some 10,000 people. Here was a town which, by all the evidence, really did need a new sewer system, the cost of that program being about $234,- 000. In the words of the mayor, "We would never have been able to finance that by ourselves." So what happened? In the name of "urban renewal" this small town got a Fed- eral grant of $1.1 million not only to fix up its sewer system but also to pave streets and build a residential housing project. And now, again in the words of the mayor, "We're able to issue $350,000 in bonds for a new civic center without even raising the tax rate." They can now build a civic center when they were too poor to take care of their own sewage. Or look at Wink, Tex. Here the Federal Government has allotted $478 for every man, woman, and child of its 1,800 population. This to completely remodel the town's busi- ness district, all three blocks of it. To labor the evidence would be needless. As one of the officials of the Urban Renewal Administration quite frankly states, "There are no limits whatever on the size a city has to be to get urban renewal grants." And ap- parently none, either, on the kind of proj- ect for which towns and villages can tap the Federal till. The list of things which these happy folk are building with Federal funds includes parks, playgrounds, tennis courts, and swimming pools. All good things in- deed for any town. And more blessed yet when they are paid by other people's taxes. As a pork barrel this has the wonderful advantage that there's no need for any pretense about building a dam to preserve natural resources or dredging a creek for navigation purposes; the handouts can go to lovely, little towns like Princeton, N.J., or crossroad villages, like Wink, Tex., lost in the wide-open mesquite plains. All you need is a diligent representative in Washington. It's hardly necessary to labor the editorial comment either. As the publisher of the Wink Bulletin remarked, "You can hardly spend money like this in a little town with- out doing some good." Or as the Mercedes mayor put it, "This is the greatest thing that's happened to us in years." So it is. And also the greatest thing that's happened in years to the-business of building pork barrels. BERLIN Mr. BRIDGES. Mr. President, a re- cent editorial in the Boston Sunday Herald, one of the outstanding news- papers in the country, outlined in a frank and hardhitting manner the problem we face with respect to Berlin and the initial steps which should be taken to prevent a tragic misunderstanding by the Communist bloc of our intentions with respect to this strategic city. The commentary rightfully points out: All the words we can say about Berlin are as fragile as the Soviet pledge to honor our access routes. It is only what we do that will communicate our unalterable pur- pose. I heartily agree. While we can hope for the best, we must of necessity be pre- pared for the worst, and I, for one, hope we will not be tardy in making these preparations. I ask unanimous consent that this editorial from the Boston Sunday Herald be printed at this point in the RECORD, and I commend it to the attention of my colleagues. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: FRAGILE WORDS ON BERLIN We cannot say enough times that we will not get out of Berlin to convince the Soviet that we will-not. We can string out one no after another until the processions of negatives fade into Approved For Release 2004/03/11 : CIA-RDP64B00346R000200170027-7 1961 &4RRpf46R000200170027-7 11175 Approved CFor Release ONGRESSIONAL /RECORDRDP "I personally believe that the individual The Wisconsin Senator's quick rebuttal the Senate, neither has the national wel- civil fare ever been neglected by the senior (name'd to the CIA), his qualifications and took the form of it bombshell. from Maine. background will come under exhaustive McCarthy announced that Taylor's senator that the scrutiny by the Congress * * *." service record was "flagged" with the nota- I ask unanimous consent Who is Telford Taylor, an apparent front- tion, "unresolved question of loyalty." editorial be printed in the RECORD. runner in the scramble for the top job in Civil Service Commission Chairman Philip There being no objection, the editorial the supersecret Central Intelligence Agency? Young told newsmen that the "flagging" nt either that a loyalty investigation was ordered to be printed in the RECORD, HELD MANY POSTS Newspaper files, CONGRESSIONAL RECORDS, and other data disclose that Taylor (now 53) entered Government service as a young New Deal lawyer in 1933 in the Department of the Interior. He served successively in the Agricultural Adjustment Administration, Attorney Gen- eral's Office, and Federal Communications Commission (General Counsel) before enter- ing the Army in 1942. After a brief stint in military intelligence (Europe), Taylor became a staff colonel (1945) at the Nuremberg war trials and chief U.S. counsel at proceedings subsequent to the Four Power trials of principal defend- ants. He became a brigadier general in 1946. ATTACKED IN SENATE The "Nuremberg Trial Scandal"-alleged procedures under Taylor's direction-erupted before Presiding Judge Charles F. Wenner- strum left Germany. The judge bitterly at- tacked prosecution procedures. Charges against Taylor exploded in the Senate in two stages. On May 1, 1950, Mrs. Freda Utley, a self-described former member of the British Communist Party who lived 6 years in the U.S.S.R., described Taylor as being "sympathetic" to the Soviet Union, "one of a number * * * with leftish sym- pathies." Testifying before the Senate Foreign Rela- tions Subcommittee (p. 777 of the record), Mrs. Utley (an author) said she considered America to be the hope of the free world, "and people like [Owen] Lattimore a menace to our freedom." MADE CHARGE IN BOOK "Question. Did you write 'The High Cost of Vengeance' (a book about Germany) and did you refer to Brig. Gen. Telford Taylor as being sympathetic to Soviet Russia? "Answer. In a chapter I referred to a num- ber of people with those kind of leftish sym- pathies * * * who has been placed in high position * * * and I referred to Telford Tay- lor. That was the general opinion of Mr. Taylor * * *." (Representative GEORGE A. DoNDERO, Re- publican, of Michigan, had previously de- manded an investigation_ of Nuremberg trial procedures and the "Communist clique" which had assertedly penetrated the Taylor staff.) TRUMAN APPOINTEE was underway when Taylor left the Small as follows: Defense Plants Administration (September [From the Pittsburgh Press, June 19, 1961] 18, 1952) * * * or one had been made with- HEAP OP YEAS AND NAYS out a decision. In the CONGRESSIONAL RECORD, that faith- He assumed the "flag" would stay on Tay- ful journal of the words and deeds of our lor's record, Young explained, unless the "Commission takes action to remove it * * * Washington lawmakers, there appear every the matter has never come up." so often the results of the voting: Yeas, so many; nays, so many; not voting, so many. Three weeks of "a, cabout" 125 Reds reported who al- With exceptions so rare as to be almost l efedly a had list of infiltrated rated the staff John n never, the "not voting" list is a part of the McCl y i[U..] Commissioner the for Gee RECORD, usually preceded by formal apologies many High "who Cne- for the absentees, such as: "I announce many * * * "way were a brought . " by Mc- that the Senator from wherever is absent Telford Cloy, g and others." on official business." Which could mean McCarthy rthy chaarrgeed d that the persons were anything. identified Communists who fled Germany, But never once, in about 6 years, has the became US. citizens and returned to work name of MARGARET CHASE SMITH, the Senator in McCloy's office. from Maine, appeared on the "not voting" DEFENDED BRIDGES list. When the billboard test came to a vote Newspaper files (including those of the Thursday, Mrs. SMITH answered her 1,000th Daily Worker and People's Daily World) consecutive rollcall. picture Telford Taylor as frequently defend- This was such an unusual performance ing accused Communists, that the hardbitten male politicians of the He has appeared as defense counsel twice Senate paused to note it with applauding to stymie government efforts to deport oratory. Never before, in 172. years, had any Harry Bridges, and is quoted as having de- Senator compiled such a consistency. scribed Bridges' long pro-Red record as the Now how a Senator votes, and how he at- record "of successful trade union leadership." tends to his duties otherwise, could be more Taylor also has appeared for seven Smith important than fidelity in responding to the Act defendants in Hawaii, for 14 officers of drone of the rollcall clerk. But this is a the Communist-controlled International remarkable record, as evidenced by the fact Mine, Mill & Smelters Scales, described by the Daily Worker uasua and that oitewase freely predicted byh those victim of the Smith Act, and for six U.N. lauding Mrs. SMITH that no other ever workers whose dismissal stemmed from their w Iuld. the Senate, as in other legislative bodies, alleged leftist views. BOOMED AS CANDIDATE there always are some who unavoidably are detained, some who deliberately duck, some Scales' conviction under the act's Com- who just don't get there in time to vote. monist Party membership clause (with a For 1,000 rollcalls, vital or not, Mrs. SMITH 6-year prison term) was upheld June 5 in a has been in none of these categories. She startling Supreme Court decision. was there. Taylor's rising star as the professional And when you come right down to it, isn't champion of leftists triggered one unique that why we send Senators to Washington? proposal that he be boomed for Attorney To vote for us on the issues, great and small. General. In 6 years, Maine's voice not once has been Testimony before the House Un-American neglected. Activities Committee concerning Communist political subversion-page 7341 of the official record-unfolds a speech by Corliss Lamont BACK-DOOR SPENDING at a party sponsored by the American Com- Pitts- mittee for the Protection of Foreign Born. Lamont told his enthusiastic audience that burgh Press, a highly regarded news- Telford Taylor should be appointed Attorney paper in the Commonwealth of Pennsyl- General of the United States. vania, has endorsed the proposal by the This may have been a.protective measure distinguished Senator from Utah to pre- by Lamont and the notorious committee. vent more back-door spending. The Lamont is vice chairman of the Emergency paper makes the point very simply, Civil Liberties Committee, a cited Com- newspaper it says: munist front. when The ACPFB, according to the Attorney The alternative is rampant Government General, is "subversive and Communist." debt, and quite probably further depreciation As one lawmaker commented concerning of the 47-cent dollar. the CIA: I ask unanimous consent that the edi- "Whoever pops up as the suggested nomi- nee "trial be printed in the RECORD. for Director * * will get a hard, There being no objection, the editorial thorough appraisal.'" was ordered to be printed in the RECORD, as follows: On December 18, 1950, the late Senator William Langer, Republican, of North Da- kota, startled members of the Senate Ju- diciary Committee with this assertion: "If the payrolls are subpenaed *. * * it will be seen that practically the entire (Nurem- berg) staff was composed of leftists and men * * * since exposed as Communists and members of Communist-front organiza- tions." Taylor next appeared on the Washington scene (1951) as head of the Small Defense Plants Administration (a Truman ap- pointee), and in November 1953, the Harvard lawyer touched off a real hassle with the late Senator Joseph R. McCarthy with a speech before the Cadet Corps at West Point. BLASTED M'CARTHY Taylor called the Senate Government Op- erations Committee probe of espionage at the Ft. Monmouth, N.J., radar center "a shameful abuse of congressional investigat- ing power." And McCarthy, Taylor said, was a dangerous adventurer. ONE THOUSAND VOTES Mr. SCOTT. Mr. President, the Pittsburgh Press has added its commen- dations to that being heard throughout the Nation on the occasion of the 1,000th consecutive vote of Senator MARGARET CHASE SMITH. The Press says, "In 6 years, Maine's voice not once has been neglected." I would add only that in the years that Senator SMITH has been in [From the Pittsburgh Press, June 19, 1961] DRAIN ON THE TREASURY Senator WALLACE F. BENNETT, of Salt Lake City, is making a new attempt to shut the back door to the Treasury. He is doing this in the face of an increas- ing number of programs sponsored by the Kennedy administration to expand this debt- making way of doing business. Under the Constitution, taxpayer money is supposed to be spent only by specific ap- Approved For Release 2004/03/11 : CIA-RDP64B00346R000200170027-7 11176 Approved For Ref ~04/OIONAL R CORD UUSENATE 00170027-7 propriations passed by Congress. The back- door system sidesteps this constitutional mandate. Instead of making appropriations, Congress merely says to a Government agency: "We won't give you any money di- rectly, but you go down to the Treasury and borrow it." This eliminates congressional control on spending. The agency borrows from the Treasury and the Treasury borrows wherever it can get the money. Up goes the national debt. Treasury Secretary Dillon has just been before the Senate Foreign Relations Com- mittee with a proposal to permit the ad- ministration to take $8,800 million through the back door of the Treasury for long-term foreign aid loans over 5 years. Mr. Dillon says this is the "most efficient and least costly" way to provide this foreign aid. It is neither. Congress loses control. The debt Increases. Inflation is stimulated. "This is hidden spending of which people are often unaware," says Senator BENNETT. "Yet it hurts our pocketbooks, both in the form of tax drains and decreased purchasing power through inflation. It weakens control over Government spending In general. It can result in loss of confidence in our dollar at home and abroad." Senator BENNETT has proposed a change in Senate rules which would prohibit any spend- ing except by appropriations cleared by the Senate Appropriations Committee. In the House a similar rule has been blocked in committee. But If the Bennett proposal is approved by the Senate the effect will be the same as if both Houses had agreed to abide by the Constitution. At least in the Senate, any spending scheme must pass muster by the Appropriations Commit- tee and there will be an annual limitation on handouts of the taxpayers' money. The alternative is rampant Government debt, and quite probably further deprecia- tion of the 47-cent dollar. TRANSITION IN AFRICA Mr. JAVITS. Mr. President, the emerging nations on the African Con- tinent present us with an extraordinary challenge in eyery phase of our national American economy and policy. We have not been adequately prepared for the swift developments in Africa, and in the effort to catch up numerous problems have been created, particularly in the economic area. Some of these are dis- cussed in an article by H. S. Cummings, Director, Africa-Near East Division, Bu- reau of Foreign Commerce. I ask unanimous consent that there be printed in the RECORD his article entitled "Facing the Power Shift in Africa," which ap- pears in the Foreign Commerce Weekly, July 3, 1961. There being no objection, the article was ordered to be printed in the RECORD, as follows: FACING THE POWER SHIFT IN AFRICA (An analysis of the "mutual ignorance gap" between the United States of America and the emerging African nations) (By H. J. Cummings, Director, Africa-Near East Division, Bureau of Foreign Com- merce) Every businessman in America, indeed every taxpayer in America, is being affected in some measure by the major power shift now being carried out in a large part of the continent of Africa. The transition from European control to African control of economic activities in Africa is now underway. , This transfer of economic power from London, Paris, and Brussels to some 24 newly independent areas of Africa is a matter of direct concern to Americans as well as to the peoples of the new African countries involved and to the citizens of former metropoles. Our direct concern with this power shift is illustrated rather dramatically in the sud- den change in economic relationships be- tween the United States and the Republic of the Congo after the latter received its independence just a year ago. In the period 1955-60, U.S. exports to the Congo averaged about $40 million a year and U.S. aid ex- penditures to the area during that period were nil. During the year following the power shift from Brussels to Leopoldville, the level of U.S. exports fell nearly 50 per- cent below the 1959 level and U.S. aid to the Republic of the Congo reached a level of about $75 million. POWER SHIFT COSTLY This shift in power from Brussels to Leopoldville was sudden, disorderly, and very costly in terms of human life as well as in terms of money. Its effects in dis- couraging private foreign and domestic capi- tal participation in African economic de- velopment have been felt in Africa far beyond the Congo's frontiers. African officials of countries located hundreds of miles from the nearest Congo border state frankly that their attempts to attract foreign capital and foreign technical and management assist- ance have been seriously hampered by events in the Congo. Experienced bankers and busi- nessmen in nearby east Africa and the Fed- eration of Rhodesia and Nyasaland attribute much of the capital flight from those areas in the latter part of 1960 to the failure of the power shift from Brussels to Leopoldville to take place in an orderly fashion. This one tragic and costly breakdown in the power transfer process has served to focus attention on the nature of the problems to be faced in Africa during and following the transition period in which Africans assume responsibility for economic control of their respective countries. In order to understand these problems we must acquaint ourselves with the institutional arrangements that existed just prior to the transition period. These might be roughly and very generally summarized as follows: Economic policy was developed in the metropole and carried out in the African ter- ritories largely by European staffs. In the private sphere international trading activi- ties were handled by large expatriate firms. In short, the actual operation of both the public and private sectors of the economy was the responsibility of the European civil servant and the expatriate businessman. During this period the supporting institu- tions of both the public and private sectors were European and located in Europe. The highly developed and costly educational sys- tems that produced civil servants, teachers, technicians, businessmen and professional men for the African areas were located in Europe and financed by Europeans. LEADERS RECOGNIZE NEEDS Many responsible African leaders recognize that the transfer of economic power from the metropoles to individual African countries did not carry with it the basic social and economic institutions essential to sustained and orderly economic growth. In the long run, such institutions must and will be de- veloped in Africa. In the meantime, each African country must utilize to the fullest extent possible economic and social resources available to it from friendly non-African sources including the former metropoles. In a few African countries aggressive pro- grams for educating Africans abroad and for attracting foreign capital and management training to Africa are already underway. In others, such programs are still in the plan- ning stage. In many African countries the leaders are expecting the United States to July 7 increase its share of participation in the social and economic development of Africa. These expectations are in many cases-very general and are based upon impressions gained by African leaders during compara- tively brief visits to the United States. Ac- tually, most African leaders are quite un- aware of the multifariousness of this coun- try's training resources; most Americans likewise are unaware of the wide range of specific and urgent demands African coun- tries have for know-how, technical and man- agement training assistance, and for for- eign capital-both public and private. This mutual ignorance gap cannot be closed by merely matching comprehensive catalogs of African requirements against American availabilities but such catalogs, if produced on a periodic basis, might be useful in deter- mining program priorities. NATIONAL AND REGIONAL PRIORITIES The problem of determining development project priorities in Africa during the com- ing decade may be complicated by a number of factors that can influence regional as well as national economic growth rates. Should, for example, national rivalries in Africa be carried to the point where the large hydro- electric power installation becomes the pre- ferred f-tatus symbol of national progress, then programs for diversified development will have to be scrapped or at least placed in the bureaucratic deep freeze, pending the coronation of the national kilowatt king. Since, in many instances, national bounda- ries in Africa were established with little or no regard for economic and ethnic realities, some national economic development efforts will be handicapped by a paucity of natural resources and the lack of a sense of national unity. To minimize their handicaps, Africans will have to intensify their efforts in working out regional development schemes with their neighbors. Both Africans and Americans should develop effective methods for ex- changing information and ideas on matters relating to specific African development needs and to specific American means of meeting these needs. EUROPEAN INTERNATIONAL HELP Effective methods cannot be worked out without first taking into account two basic ingredients in Africa's present and future development programs: the first is that Western Europe, including the United King- dom, will continue to be the principal source of many of Africa's developments needs that must be met from outside sources; the sec- ond is that many international organiza- tions-such as the International Bank for Reconstruction and Development, the In- ternational Finance Corporation, the Inter- national Development Association, and many of the specialized agencies of the United Nations, including the Economic Commission for Africa-will become increasingly impor- tant sources of assistance to Africa. It might be well for everyone concerned in this matter to keep in mind that for the foreseeable future, global development re- quirements will run considerably ahead of the world's capacity to meet these require- ments and that Africa will find itself in com- petition with southeast Asia and Latin America in its attempts to obtain capital and know-how. Against this background Africans and Americans can develop effective methods of exchanging information and ideas on spe- cific fields for African-American cooperation in African development. The first step in developing these methods would be to look at what of value is currently being done in this field. This would include an evaluation of African as well as of United States efforts. For sake of convenience, these efforts might be classified in three general categories ac- cording to their origin and source of fi- nances-private, public, and combined pri- Approved For Release 2004/03/11 : CIA-RDP64B00346R000200170027-7