DANGER OF TRAGIC CUBAN SITUATION BECOMING PERMANENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000200170029-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: February 13, 2004
• Sequence Number: 29
• Publication Date: January 1, 1961
• Content Type: OPEN

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CONGRESSIONAL RECORD - SENATE July 17
the landless and reasonable reimbursement
for those whose land was seized.
Today both promises have long since been
forgotten.
Except for a few thousand showcase ex-
amples in which peasants were given plots
of land as their own, Cuba's great agricul-
tural holdings have passed into the hands
of the state, controlled and operated by
Castro's powerful Institute of Agrarian
reform.
Most of the land has been lumped into
a variety of cooperatives or collective farms.
As in Russia, the former peasants now work
for the state instead of landlords, and fre-
quently for far less income.
For a few months after the Institute of
Agrarian Reform started, Castro and his
lieutenants spoke loudly of government
bonds to be issued as a reimbursement for
seized property.
Then all mention of reimbursement-and
bonds-was dropped. Even the pretense of
repayment disappeared when President Ei-
senhower cut off Cuban sugar sales to the
United States. Castro announced coldly
that American holdings in Cuba had been
confiscated.
PROMISES FORGOTTEN
Castro's promises of personal liberty, of
freedom from army and police excesses he
had condemned during the Batista regime,
were forgotten as quickly as his pledges to
pay for land.
For many months all Cubans-and some
foreigners-not actively identified with his
revolutionary program faced danger of ar-
rest, a quick military trial, and imprison-
ment or execution against a brick wall.
Lawyers who defended victims of arrrest
and military trial said the hearings were
farces, that frequently verdicts, even death
penalties, were decided before the hearings
began.
MILITARY POWER GROWING
Castro's growing military power in Cuba
has kept almost exact pace with the emer-
gence of communism as the dominant factor
there. When his Communist trained militia-
men beat back the invasion In April they
did it largely with Communist weapons, and
observers reported Russian, Chinese, and
Czech military instructors played a big part
in the fighting.
Russian, Czech, and Chinese advisers were
not only on the Cuban battlefront but are
in every activity of the Castro regime.
Thrice-weekly KLM planes bring them by
the dozens from Europe by way of Curacao
to avoid the United States. Every incom-
ing cargo, oil,'and sugar boat from the Iron
Curtain has its quota of unannounced, pas-
sengers.
As the last American correspondents left
Cuba, diplomats were talking of the ex-
pected arrival of four Russian destroyers,
gifts to the Castro regime. These sources
claimed at least two were already on the
way, flying Cuban flags but manned by Rus-
sian sailors in the absence of qualified and
trained Cuban officers and men.
Today Castro has the strongest fighting
force in Cuban history, if not in all Latin
America, aside from a weak air force and a
small navy. He has placed more than 400,-
000 men and women under arms.
IS THERE A SOLUTION?
Is there a possible solution to the Cuban
"problem"?
Foreign diplomats and other observers with
whom I talked before leaving Havana rec-
ommended various measures ranging from
outright and immediate military interven-
tion by the United States to a firm and com-
plete embargo on all trade with Cuba.
Cubans were sharply and at times hysteri-
cally critical of the U.S. Government for an-
nouncing an embargo, then continuing to
sell foodstuffs and medicines to Cuba and
buying tobacco and fruits from the Commu-
nist government.
Less vitriolic but no less intense was a
Cuban businessman who reminded me of
Castro's steady military buildup.
"Castro had no MIG fighters during the
April invasion," the businessman said. "But
don't forget the next time he may have.
"Every day Jae remains in power makes
it that much harder to dig him out."
PROPOSAL TO LIMIT EXPENSE AC-
COUNTS TO $30 A DAY
Mr. SMATHERS. Mr. President, I
ask unanimous consent to have printed
in the body of the RECORD, an interest-
ing article entitled "If Adlai Had Only
$30 a Day, He'd Flop Big," written by
George Sokoisky and published in the
Miami Herald of July 5, 1961.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
IF ADLAI HAD ONLY $30 A DAY, HE'D FLOP BIG
(By George E. Sokolsky)
It would not be absurd for one who was
accustomed to live in a log cabin to find a $30
a day expense account not only sufficient but
with ample to spare. He might live on ham-
burgers and hot dogs, sleep wherever he
could, sponge on his acquantances, use kero-
sene instead of gasoline for his car, wear
a beatnik costume and shave on Christmas
and Easter only.
For the businessman, particularly sales-
men, $30 a day is almost too little to bother
about, particularly if it is necessary to keep
books too. And that is the worst thing
about all these tax matters-the keeping of
books. Let the boss get indigestion. Let
the Japanese or West Germans sell the goods.
United States pays $30,000 a year for Am-
bassador Adlai Stevenson's apartment at the
Waldorf-Astoria. It is not too much. Such
an Ambassador has to entertain constantly
and he must have a suitable place for that
purpose. We want votes in the United Na-
tions and we need to do what is necessary
and usual to get them.
What would happen to AdIai Stevenson's
representation at the United Nations if he
were permitted to spend only $30 a day? Off-
hand I would say that he would meet with
complete failure. Many of the delegates
would be insulted because they were not
invited to dinner according to protocol.
This is the way of the world. For $30 a day
Stevenson could not do much entertaining
at the Waldorf or any other hotel or restau-
rant in New York.
Of course, some businessmen have abused
the expense accounts, for which there can
be no justification. They charge everything
that other men normally pay for them-
selves out of earnings to their business ex-
pense account. But the fact that some men
are dishonest does not justify hogtying
American business so that it cannot do its
work adequately. That is the fallacy of
generalizing from the particular.
One of the most important phases of
American business activity is the conven-
tion. There men meet those who are in
the same line or who have similar or as-
sociated interests. There they listen to
speeches on important subjects, often by
representatives of Government. There new
ideas are widely circulated and new products
are exhibited. The convention is essential
to the conduct of modern business because
men live so far apart.
Such conventions are usually held in large
cities where there are suitable convention
halls or in such special places as Hot Springs
where the hotels are adjusted for the pur-
poses. New York City has recently built
the Coliseum for convention purposes at
great expense. Many large cities maintain
convention bureaus to get the conventions
to come to their cities. As regards political
conventions cities are known to make a
heavy contribution to the convention fund.
The idea is that the shops, theaters, restau-
rants, hotels, benefit from conventions
which bring considerable money into the
town and they are worthwhile.
No one could attend a convention today
on a top limit of $30 a day. It would hard-
ly pay for food, drinks, and cigars. If it
were one of those affairs to which the wife
was brought to prove that the male animal
really was a very busy man, doing honest
and useful work, $30 a day would barely
pay for the extra clothes mamma had to
buy so that she might look as presentable
as the rest of the folks. No man wants to
hear:
"Business must be bad for Jack. Look
at his wife. She wears clothes that a
steno would not be seen in."
That can start sensitive business rumors
that could do considerable damage. Busi-
ness has many facets, not the least of which
is establishing sound credit not only in the
sence of current balance but confidence in
the future. In this respect an expense ac-
count becomes as important as advertising
Or public relations.
When an expense account is used as un-
taxed salary, the twister should be punished
for fraud. But when the expense account
is used to stimulate business, to improve
a product, to exchange ideas, to bring in
customers, to be productive in the national
welfare, then it is more than justified by
the results it attains.
Certainly $30 a day, at present prices, is
not enough for anything.
DEATH OF FORMER REPRESENTA-
TIVE PAUL C. CUNNINGHAM, OF
IOWA
Mr. HICKENLOOPER. Mr. President,
it is with much personal sadness that
I announce the death yesterday of for-
mer Representative Paul C. Cunningham,
of Iowa. He died at his summer home
near Nisswa, Minn.
Paul Cunningham was a longtime
close personal friend of mine. We be-
gan our first public service together in
the Iowa Legislature many years ago.
Our friendship and association continued
during that period of time.
I shall have more to say about former
Representative Cunningham at some
time in the near future. Meanwhile, I
express my sincere sympathy to his wife,
Gail, and to his children, who survive
him.
I feel a deep sense of personal loss in
the passing of a longtime, valued friend.
Mr. President, I ask unanimous con-
sent to have printed at this point in
the RECORD an article relating to the
death of former Representative Cun-
ningham, which was published in the
Washington Post of today, July 17, 1961.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
REPRESENTATIVE CUNNINGHAM, IOWA, SERVED
FROM 1940 TO 1958
Former Representative Paul C. Cunning-
ham, Republican of Iowa, died yesterday at
his summer home near Nisswa, Minn., after
suffering an apparent heart attack. He
was 71.
According to his wife, Mr. Cunningham
was stricken in the morning while they were
preparing to go to church.
He served in Congress 18 years from Iowa's
Fifth District, the area in and around Des
Moines, from his first election in 1940 until
his defeat by the present incumbent, Demo-
crat Neal Smith, in 1958.
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1961 CONGRESSIONAL RECORD - SENATE 11745
the decision and its results should have the
power to judge major fntelligence matters.
BI the same token such judgment must not
be undermined by a subordinate having the
authority to shape through administrative
control the nature of intelligence that
reaches his superiors.
The proper place for such clash of opinion
to occur and, for the judgments to be made
is in the Joint Chiefs of Staff, the National
Security Council, and the White House.
As a postscript, it seems appropriate to
observe that -we are indeed, through in-
creasing reliance on electronic computers
in attempting to predict the course of war-
fare, approaching a questionable situation.
It has long been axiomatic in the field of
military history that one of the most difficult
tasks is trying to ascertain for sure what
actually happened in war. Are we, in fact,
unwittingly seeking escape from crucial `tie-
cisions by delegating that responsibility to
electronic computers; and are we thus try-
ing to write history in advance? Are we
succumbing to the same frailties as those
ancients who before the battle consulted
the oracles who were the then acknowledged
experts in reading the future in tea leaves?
If so, we have permitted electronics to by
pass intellect and carry us full cycle into
man's past, and man's mistakes.
TION BECOMING PERMANENT
Mr. SMATHERS. Mr. President, a
new danger faces America today=as if
eve did not have enough already.
The tragic Cuban situation is in dan-
ger of becoming permanent if Fidel
Castro is permitted to carry out his new
troika formula. Castro hopes to solid-
ify his Red dictatorship through a
three-step program.
First, he seeks postponement of any
hemispheric action against his regime
at this time, to be followed by, second,
toleration of his Communist rule, both
by the nations of the Western Hemi-
sphere and the whole world. Third,
finally, he hopes to gain acceptance of
his dictatorship in fact, if not in law.
The grave danger to this hemisphere
if Castro continues in power has been
pointed out in an important article writ-
ten by Harold Milks, the Associated
Press correspondent in Havana for the
past 2 years, until he was forced to flee
Cuba. Milks, who has been covering
Communist trouble spots in the world
for 15 years, said in this article:
Based on a knowledge of communism and
its tactics learned firsthand in China, in the
Soviet Union, and in Cuba, and in conver-
sations with diplomats and competent ob-
servers in all these areas, I predict that
communism will have a hold on much, if
not all, Latin America in 3 years if the
Castro regime remains in power in Cuba.
This is a sobering conclusion, but one
which I believe is shockingly close to the
truth.
I ask unanimous consent that Mr.
Milks' article, as published in the Miami
Herald of June 18, -1961, be printed in
the RECORD.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
How. RUSSIA, CHINA ARE USING CUBA To
SUBVERT LATIN AMERICA
(By Harold K. Milks)
Communist China and the Red regime of
Fidel Castro stemmed from a common
front-agrarian reform-but the guiding
hand behind both was that of the Kremlin.
Today Nikita Khrushchev and the Peiping
Chinese are racing to see which can exploit
Cuba fastest as a means of penetration to
the rest of Latin America.
During the past 15 years of reporting news
events abroad I have watched communism
spread over once-free China, studied its
rapid development in the Soviet Union, and
witnessed its relentless envelopment of tiny
Cuba.
The reaction to these developments and to
their apparently placid acceptance by some
Western peoples and governments, at times
including our own, has been terrifying to
one who knows what communism is.
There are profound similarities in the
Chinese Communist revolution mounted
from the cave-studded hills of remote Yenan
after World War II and in the bearded Cas-
tro's adroit twist of a once popular demo-
cratic revolt against Cuban ex-Dictator Ful-
genclo Batista Into a Russian and Red
Chinese-guided regime.
These similarities represent to me fur-
ther proof that both were shaped by the
Kremlin in line with boasts I have heard
Nikita Khrushchev make that the Soviet
Union will some day bury the West.
When I first reached China In 1946 to re-
port Gen. George Marshall's ill-fated peace
mission, Communist leaders there had drop-
ped-their guise of agrarian reformers. They
had emerged as full fledged, Moscow-directed
and trained Communists as devoted to mak-
ing their vast country Red as Khrushchev
is to making ours a completely Communist
world.
When I left Havana last month after 2
years of watching the Castro revolution
swing steadily into the Communist camp,
leaving many of his own lieutenants dead,
in prison, or in exile, 6 million Cubans were
trapped in a Communist military dictator-
ship as vicious and as cruel as any in the
postwar years of Eastern Europe.
So, in the brief span of 15 years, world
communism had routed the United States
and its interests from a great area of the
Pacific on the one hand and on the other
given the Kremlin and its associates their
own strategically placed "offshore" Island
only 90 miles from the American frontier.
LATINS TO FALL IN 3 YEARS
Based on a knowledge of communism and
its tactics learned firsthand in China, in the
Soviet Union, and- in Cuba, and in conversa-
tions with diplomats and competent ob-
servers in all these areas, I predict that com-
munism will have a hold on much of it, if not
all Latin America in 3 years, if the Castro
regime remains in power in Cuba.
The Castro philosophy and the Commu-
nist philosophy alike demand expansion. It
is no secret today that Cuba and its 2-year-
'old revolutionary regime has been picked as
the spearhead of Red penetration into other
Latin American areas.
Castro himself announced publicly that
he expected to see the Andes Mountains be-
come the "Sierra Maestra," or birthplace, of
new Castro-type revolutions in South
America.
The big support Russia and Red China
are giving Castro today, especially in arma-
ments, are far greater than he requires in
Cuba alone. The natural inference is that
Cuba is simply a staging area for an advance
into Latin America.
BEGAN IN SAME MANNER
A study of revolutionary movements at
first hand in remote China and in neighbor-
ing Cuba produces some startling similarities.
Communist leaders in both nations-and
Fidel Castro must now be included among
them-began their campaigns with the pro-
mise of sweeping agrarianreforms aimed at
helping the landless and the little people of
the two nations.
Both battled admittedly corrupt regimes to
achieve national power. In China the rule
of Generalissimo Chiang Kai-shek, and in
Cuba that of Batista degenerated into a suc-
cession of terroristic activities-now replaced
by new tyrannies. In both nations the
United States became the favorite whipping
boy, and "Hate America" became the theme
song of Communists and their associates.
Perhaps as a natural result of these simi-
larities in origin, Red China is competing
with the Kremlin today for the right to guide
Cuban policies and the overall program of
Communist penetration into the rest of
Latin America.
Cuban Communist leaders, who boasted in
the past that they control Fidel Castro's
mind, and so can afford to permit him to
continue as head of the revolutionary govern-
ment, give strong lip service to both the
Moscow and the Peiping regimes.
LATIN AMERICA FERTILE
During 3 years in China I talked with Mao
Tze-tung and more frequently with Premier
Chou En-lai and his top lieutenant, Wang
Ping-nan, now Peiping's Ambassador in
Poland.
All three spoke with interest about Latin
America and all three even at - that time
regarded it as a fertile ground for Commu-
nist expansion once their war wth stub-
born, faltering Chiang Kai-shek was won.
It took more than a dozen years and Castro's
victory over Batista to open the way into
Latin America for them.
There was no less interest about Latin
America evidenced in Moscow where from
1956 through 1959 I watched Premier Khru-
shchev whip his followers into a race to out-
produce and outperform the United States
in every part of the world.
There I watched in 1959 as Cuban Com-
munists fresh from the Castro victory de-
scribed to an international meeting the
prominent place Communists played in
Castro's successful revolution.
Later in Havana these same leaders denied
their own statements, claiming they were
misquoted in Moscow. At that time Cuban
communism was not yet ready to emerge as
the real power behind bearded Fidel and his
"humanist" revolution.
PROGRESS TO TERROR
Similarities of origin and hate of the
United States were not the only parallels I
found in the Chinese and Cuban revolutions.
The pattern of development from a rela-
tively democratic rule into a regime of
armed terror was the same in each country.
Round-faced Mao used to tell visitors to
his old Communist capital of Yenan how the
overthrow of Chiang Kai-shek would liberate
all Chinese from political and economic
slavery.
"Each man will be his own master," be
promised. "And every man who wants it,
will own his own land."
His promised liberty for the Chinese mil-
lions Was brief. Almost before they knew
what was happening, the Chinese people
were herded into communes and their land
expropriated for collective or State-operated
farms.
Personal liberty became as remote under
communism in China as economic freedom.
My own Chinese assistant was tried by a
people's court in Nanking and executed by a
pistol shot in the head, presumably because
he had been a long associate and good friend
of Americans. Thousands more suffered a
like fate.
SAME PATTERN IN CUBA
Exactly the same pattern prevailed a de-
ade later in Castro's Cuba.
Two years ago last May, Fidel Castro led
his entire cabinet-including a minister of
agriculture he executed recently for coun-
terrevolutionary activities-into the Sierra
Maestra mountains to enact a stringent
agarian reform law. It promised land for
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CONGRESSIONAL RECORD - SENATE July 17
ment and described them as the only ones
suitable for Latin America and called for
Communist aid for British Guiana. In 1960,
Mr. Brindley Benn, chairman of the PPP and
Minister of Natural Resources in the govern-
ment declared; "It is easier to stop tomorrow
than to stop communism." Last Monday,
July 3, he repeated this statement and said
that he had meant every word of it. Quan-
tities of rice are shipped from British Guiana
to Cuba and on Jagan's recent trip to the
United States he was given a $2-million loan
from the World Bank which further bul-
warked his political position.
I met all sections of the population and
all three political leaders. I had lengthy
conversations with men who had been
trained under,the auspices of the PPP and
the Young Communist League as saboteurs.
They reported to me that the jobs which
they were required to perform such as dyna-
miting, were always personally ordered by
Mrs. Janet Jagan, Chicago-born wife of Dr.
Jagan. These men told me that the dyna-
mite used was stolen, from big industrial
companies and there is still a considerable
cache in the possession the PPP.
One hopeful aspect of the situation is the
strong and united anti-communist position
taken by both the Roman Catholic Bishop
Guilly and Archbishop Knight, Anglican
archbishop of the West Indies against the
recent Government takeover of the 51 de-
nominational schools and their antireligious
attitude. American Christian interest has
been demonstrated by the assistance given
in the fight against communism by World
Harvest Evangelists, an American religious
group.
Both British and American public opinion
must understand the gravity of the situa-
tion in British Guiana, which, because of
its geographical location cannot fail to be
as much an American concern as it is Brit-
ish. During my stay in British Guiana, I
was repeatedly told by members of the
European population, "We fear the British
Government will let us down as they have
the people in Kenya," although I found that
large numbers of Negroes and Indians retain
deep faith that the British Government will
eventually intervene and save them from
Communist domination.
I have two proposals to suggest. First,
that private sources in the United States,
in Britain or indeed in any other country
concerned with human and world freedom,
should support with immediate financial aid
the grdwth and maintenance of the anti-
Jagan profreedom political forces in British
Guiana who are prepared to stand for dem-
ocracy and the free way of life and who still
have a fighting chance to win the election.
The second is a recommendation for gov-
ernmental action. If, under false pretenses,
and thanks to the understandable political
ignorance and inexperience of the popula-
tion, the well-oiled political machine firmly
established by Dr. Jagan and his wife, the
PPP is elected to power, I believe that the
British and American Governments should
hold consultations at the highest levels, to
determine what action can be taken to safe-
guard the rights and political and economic
freedom of the people of Guiana who would
otherwise then be powerless-to defend them-
selves. I can only add that since elections
take place next month, there is no time to
be lost.
Mr. MANSFIELD. Mr. President, is
there further morning business?
The PRESIDENT pro tempore. Is
there further morning business? If not,
morning bu"siness is closed.
Mr. MANSFIELD. Mr. President, I
suggest the absence of a quorum,
The PRESIDENT pro tempore. The
clerk will call the roll.
The Chief Clerk proceeded to call the
roll.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDENT pro tempore.
Without objection, it is so ordered .
SOVIET AIRPOWER
Mr. MANSFIELD. Mr. President,
notwithstanding the previous unani-
mous-consent agreement entered into, I
ask unanimous consent that the Sena-
tor from Missouri [Mr. SYMINGTON]
may be allowed to proceed at this time.
The PRESIDENT pro tempore. Is
there objection? The Chair hears none,
and it is so ordered.
Mr. SYMINGTON. Mr. President, I
thank the able and distinguished ma-
jority leader.
Mr. President, once again the people
of the United States find out about So-
viet arms development as the result of
their flying airplanes over Moscow for
all to see.
This time they took up all cameras
in the crowd, including and specifically
cameras of members of the various le-
gations.
But because again of the enterprise
of one of the authorities in this field,
Robert Hotz of Aviation Week, we now
have more information than the Soviets
were willing to give out, in some cases
more than various agencies, including
the Central Intelligence Agency, knew
about.
The cameras of Mr. Hotz and his as-
sociates were not taken up-and I have
these additional pictures with me on the
floor today if any Member of the Sen-
ate would be interested.
Before going into any detail, and es-
pecially because of the growing con-
troversy over nuclear test resumption, I
ask unanimous consent that at this point
there be inserted in the RECORD a state-
ment by the Honorable John McCone,
former Chairman of the Atomic Energy
Commission. This statement bears on
both the question of nuclear testing and
these new Russian airplanes-and if
anyone disagrees with it I would ask
that he say so now.
There being no objection, the state-
ment was ordered to be printed in the
RECORD, as follows:
STATEMENT BY JOHN A. MCCONE, FORMER
CHAIRMAN, U.S, ATOMIC ENERGY COMMIB-
SION
Nuclear weapon development by under-
ground and outer-space testing will give to
either the United States or the Soviets an
arsenal of weapons, both large and small,
more powerful, more versatile and more use-
ful in modern warfare than those now ex-
istent. The Soviets can proceed with these
developments behind their walls of secrecy
without detection as no present scientific
means of discovering their actions exist or
can be created without inspection posts with-
in their country and the right for on-site
inspection.
The Soviet's adamant refusal to accept a
reasonable plan for policing a test ban agree-
ment by refusing appropriate means for in-
spection is reason to believe they are de-
veloping new and improved weapons by
clandestine testing. Thus they can develop
a great military superiority and we, re-
specting a self-imposed moratorium, will
take second place.
Efforts to reach agreement have now failed
because of Soviet unreasonable positions.
Our security is at stake. We must resume
weapon testing as essential to the safety of
our country and the free world. Soviet pro-
testations that they are not interested in
testing appear undependable as similar state-
ments were made frequently regarding
manned aircraft but now they display sev-
eral new military planes secretly developed.
Will they soon display new advanced nu-
clear weapons?
Mr. SYMINGTON. I would hope
that we not be outmaneuvered to the
point of disaster in the nuclear field, as
we apparently, by listening to Mr. Khru-
shchev, have now been outtraded seri-
ously in the manned aircraft field.
Nothing could be more important than
sound decision in these two fields, be-
cause they may well embrace the core
of the future security of the United
States.
Note that this 1961 show is the first
Soviet military airshow since 1956-
the year when the Chief of Staff of the
Air Force went to Moscow on invitation;
and thereupon found the Soviets had ac-
complished far more in supersonic plane
development than this country previ-
ously knew about.
Shortly thereafter, however, stories
were planted in this and other countries
of the free world that the Russians, in
effect, were abandoning their long range
manned aircraft to concentrate on mis-
siles. Mr. Khrushchev said this himself,
several times, and apparently we ac-
cepted his statement as fact, and we
proceeded to rush, following him into
the missile field, which latter field we
now know has grave problems incident
to operational reliability.
At least partly because of what Mr.
Khrushchev said, however, for years the
previous administration was explaining
to the American people that one of the
chief reasons for their new emphasis on
missiles was because our intelligence had
been wrong in saying the Soviets were
pushing ahead rapidly with manned air-
craft.
The American people were led to be-
lieve that the Communists were turn-
ing away from manned aircraft so as
to concentrate on missiles.
Once again, because of fiscal consid-
erations, we then decided to choose be-
tween the two programs of action, only
to find out later that the Russians had
gone ahead with both.
Nearly 3 years ago I protested, pri-
vately and then publicly, about the type
and character of information coming out
of our intelligence apparatus as against
what was entering said apparatus.
Justification for holding down Soviet
missile production estimates was pri-
marily on the ground of relatively few
firings-but to the best of my knowledge
no one took the position that, if this were
true, unless one wanted to agree the
Russians were not continuing their mili-
tary buildup, they were also concentrat-
ing on manned aircraft.
So for some 4 or 5 years we have, in
effect, been hoodwinked as to some of
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 Approved For Release 20
1961 CONE
in the 5 years since 1955 was 20 percent
higher than the average from 1950 to
,1955.
Conversely, during the 1950-55 period,
imports garnered an increasing share of
the U.S. market. The ratio of the vol-
ume of imports to U.S. consumers in-
creased from 2.2 percent, in 1950, to 13.4
percent in 1955. However, in 1958, this
ratio jumped to 27.2 percent, and last
year it reached an all-time high of 32.5
percent. Thus, not only did foreign im-
ports of sheet glass take a hefty bite out
of the domestic market formerly sup-
plied by U.S. producers, but it also took
most of the new growth in that market.
in the late 1940's and the early 1950's,
our country undertook a foreign aid pro-
gram designed to rehabilitate war-torn
Europe and Asia. While our own domes-
tic industries were gallantly enduring
the obsolescence of equipment and ma-
chinery, we supplied the free nations of
the world with the very latest tools for
manufacturing. We did this so that
foreign manufacturers could produce as
quickly and as efficiently as possible for
the needs of their countries.
In a manner of speaking, we did not
expect those foreign manufacturers to
come back and literally bite the hand
that helped them. I say this because it
has been stated that foreign manufac-
turers of sheet glass are ignoring the full
needs of their own domestic markets for
the sake of reaping the tremendous prof-
its inherent in sales to U.S. consumers.
Certainly, this is not what our aid pro-
gram was designed to achieve.
Ignoring the needs of one's own people
can be expected of Communist countries.
People have no standing with them when
the Kremlin masters feel the need for
obtaining U.S. dollars. That is why the
glass industry today is faced with the
added threat to its existence of ship-
ments to this country from Communist
countries.
Imports from free world countries pay
a small duty upon entering the United
States. Imports from Communist coun-
tries must enter at full duty rates. But
even though imports of sheet glass from
Communist countries account for less
than 5 percent of the total 1960 sheet
glass imports, they have attained a sig-
nificant increase during the 1955-60
period, coming up from less than 1 per-
cent prior to 1955. Now, however, they
are in a position to make a sizable jump,
because of- increased capacity in their
production facilities. And, because of
their slave labor conditions, Communist
countries are in a position to continue to
pay full duty and still undersell not only
American producers in our own domestic
markets, but all other foreign producers
as well.
Mr. President, to save the American
glass industry from further harm, and
possible total eclipse by foreign produc-
ers, it is imperative that President Ken-
nedy immediately impose full duty on
sheet glass shipments from non-Com-
munist countries, and full duty plus ex-
tra ad valorem charges on imports from
Communist countries. Any other course
of action may be meaningless to the
thousands of American glass workers
who are jobless today.
IA-RDP64B00346R000200170029-5
COMMUNIST MENACE IN SOUTH
AMERICA
Mr. DODD. Mr. President, while the
eyes of the American public have been
focused on Laos and Berlin and Cuba, a
situation that poses an equal danger to
our interests and security has been de-
veloping almost unnoticed on the main-
land of South America.
On August 21 there will be an election
in the British colony of British Guiana.
The parliamentary leader, Dr. Cheddi
Jagan, is an avowed Communist, as are
many of his chief lieutenants. If Dr.
Jagan and his Peoples Progressive Party
win out in the forthcoming election,
Jagan will become the first Premier of
British Guiana, with full powers over
internal affairs under the constitution
that gees into effect at that time.
Potentially this situation is even more
dangerous than the emergence of Cas-
tro. Castro at least is cut off from the
Latin American mainland by hundreds
of miles of ocean. But a Communist
British Guiana would for the first time
give the Kremlin a bridgehead on the
South American continent, a bridge-
head through which Castro and the
Soviets could feed in arms and provide
support for Communist guerrilla move-
ments in Venezuela, in Brazil, in Colom-
bia, and in all the surrounding countries.
Castro by himself is reason enough for
serious concern. But a combination of
Castro and a Communist regime in Brit-
ish Guiana would bring us to the very
brink of catastrophe in the whole of
Latin America.
The People of British Guiana are not
Communist. Basically they are Chris-
tian and anti-Communist.
There are strong opposition forces
within the country. But unfortunately
they are compelled to carry on their
fight under the most severe handicaps.
As of now, Jagan and the Communists
have virtually unlimited funds, while the
opposition has to scrape for every dol-
lar; Jagan has a monopoly on local ra-
dio while the opposition has no radio
facilities; Jagan is being given massive
support by the Moscow radio, the Peiping
radio and the Castro radio, while BBC
and the Voice of America are doing
nothing to support the opposition. If
this totally unequal situation is. per-
mitted to persist, Britain and America
have no one but themselves to blame if
British Guiana goes Communist.
Mr. President, this is a situation we
can no longer afford to neglect. I there-
fore wish to direct the attention of my
colleagues to the statement recently
issued by Lord Malcolm Douglas-Ham-
ilton, former British Member of Parlia-
ment, on his return to the United States
from a private factfinding mission to
British Guiana.
For my own part, I wholeheartedly
endorse Lord Douglas-Hamilton's pro-
posal that the British and American
Governments should hold consultations
at the highest level to determine what
action can be taken to safeguard the
freedom of the people of Guiana and to
prevent a Communist takeover in that
country. I ask unanimous consent that
his statement be printed at this point in
the RECORD.
There being no objection, the state-
ment was ordered to be printed in the
RECORD, as follows:
STATEMENT BY LORD MALCOLM DOUGLAS-HAM-
ILTON ON His RETURN TO THE UNITED STATES
FROM A PRIVATE FACTFINDING MISSION TO
BRITISH GUIANA
I have returned from British Guiana
deeply concerned over the grave danger of
Communist takeover following the election
to be held on August 21. Unless immediate
action is taken to support the political forces
opposed to Dr. Chedi Jagan, leader of the
majority party, the PPP, there is every possi-
bility that British Guiana will become an-
other Cuba and, this time, serve as a Com-
munist bridgehead on the Northeast shores
of South America itself.
I went to British Guiana entirely as a
private individual, to examine the political
situation first hand for myself and to de-
termine whether new private enterprise from
either Britain or the United States has a
chance to survive. I have concluded that it
has and that there are very considerable po-
tential opportunities, provided only that
there is a stable non-Communist govern-
ment.
Although applauding the decision of
Great Britain to grant full independence to
British Guiana, I believe that the British
Government has still a grave responsibility
to the free world and not least to the people
of British Guiana of all races, to oversee the
perilous period of transition from limited
authority to full independence to forestall
the establishment of a Communist tyranny.
At the present time, the British Government
appears to have assumed a strictly hands-off
policy in regard to the critical upcoming
election.
There are three political parties in British
Guiana, each of whom are struggling for
power and hope to win the election on
August 21, which will provide British Guiana
with its first independent government with
full control of internal affairs. Under the
constitution, full independence from Britain,
including control of its foreign affairs will
follow by the end of 1962, leaving permission
in the intervening period for the British
Government to intervene only In grave
emergencies.
Dr. Jagan's party is known as the PPP and
its local strength is largely based on the In-
dian population. The two chief political
parties opposing Jagan are the United Force,
headed by Peter D'Aguiar, a successful and
popular British Guiana businessman. The
United Force is composed of moderate ele-
ments, European, Negro, and Indian, and
D'Aguiar's position is that economic strength
and the future of the nation lies In stable,
anti-Communist government, and close asso-
ciation with the free world. The third
party is the People's National Congress,
headed by Mr. Forbes Burnham, an attorney,
formerly chairman of the PPP before he
split with Jagan, whose chief strength comes
from the Negro vote and whose appeal is
largely racial.
There is every evidence that Jagan is a
convinced Communist as he was so described
In the official report of the British Guiana
Constitutional Commission in 1954, known
as the Robertson report. He repeatedly re-
pudiates and scorns the free way of life and
democratic Institutions except where they
can be used to his advantage, and has re-
recently referred to Castro as the great lib-
erator.
Dr. Jagan has called for the creation of a
Socialist state and in his own words "com-
munism is only the advanced stage of so-
cialism." In September 1960, Dr. Jagan said:
"British Guiana can expect anything should
his PPP lose the election, since I will be pur-
suing a program not only in British Guiana
but all over the world." On May 12, 1961, he
praised Marxist rules for economic develop-
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CONGRESSIONAL RECORD - SENATE July 171
the last century. Social and, economic re- terests before the interests seek litigation. I
alities, a 'continuous succession of scientific have often pointed out that we are interested
skyeting unprecedented et trends, theh most tin laws before hat they nevertwill ba made, in the e necessary, or if h ec-
skyrockrocketing population
ol
important revolution in communications essary, that they will be well-based and
since the printing press--all these are trans- sound.
forming the society that the law serves. Now there is nothing very neat about all
As a live and a breathing thing the law this. We d3 not draft quasi-legal codes and
will be profoundly concerned with these per- say that we will permit our companies to go
vasive changes. You will recall Dean just so far and no farther out of fear that
Pound's admonition: "The law must be eta- someone will shout, "There out to be a law."
ble, but it must not stand still," 1 which to- We often make a judgment that is social, not
day has greater force and relevance than legal, mindful that the law necessarily must
ever. lag behind society.
As we move more surely and more deeply It may sound as though I put a strain on
into this new age for mankind, with all its the role of corporation counsel. Let me ex-
hopeful and unknown implications, one of plain very briefly what I have said.
our most reassuring comforts is that we in To begin with, the present-day corpora-
America are blessed with strong and flexible tion stands not on the periphery of the dem-
legalt institutions--institutions that can ocratic process, as it did in the last half of
stimulate our present without compromising the 19th century, but in its dead center.
our future or destroying our past. The Con- The democratic process is a continuing
stitution remains a remarkable foundation and sensitive series of rising pressures and
and bulwark. Despite the imperfections inevitable responses. As a major element
inherent in representative democracies, our in our capitalist society, the corporation oc-
legislative processes are sound, responsive, cupies a unique place. It has a person-
alive. And the Presidency, through one or- ality that can be credited or blamed; but
deal after another, has proved its adaptabil- unlike for error a it it is has without very little e
ity to new demands.
But the point I want to make today is that inherent value. It is valuable only inso-
it is to the courts that we must look to give far as. it serves people. It cannot, therefore,
meaning to social change-which is to say behave cavalierly, as some individuals can.
k 1 t k and certainly if it
s a e
wars, or the mere threat of such wars. Coun-
tries contiguous to or near the Sino-Soviet
bloc face a direct threat from without, and
an indirect threat from within. We recog-
nize the Inadequacy of their forces to cope
with an outright Communist invasion. Yet
with our assistance we count on their cour-
age and ability to deal with large-scale guer-
rilla warfare. Should they suffer an open at-
tack across their borders, we look for local
forces to resist the initial thrust until such
time as free world forces may come to their
support.
Third, military assistance must play its
part, especially in NATO, in deterring any
resort to general war.
It is an unreasonable expectation that a
worldwide operation of the size and com-
plexity of the military assistance program
should be uniformly successful. But the
American people have every reason to de-
mand the maximum return from the sub-
stantial resources they are investing in this
program. I have pledged the continuous and
arduous efforts of the Department of Defense
to this end.
Overall, the military assistant program is
an essential element of our national defense
and an essential tool of our foreign policy.
It demonstrates our purpose far more con-
vincingly than words and declarations.
CORPORATE CONSCIENCE AND
SENSITIVITY
Mr. HART. Mr. President, William T.
Gossett, vice president and general
counsel of one of the great corporations
of this country and the world, the Ford
Motor Co., addressing the conference of
the Federal judges of the sixth judicial
circuit meeting at Dearborn, Mich., said:
The present-day corporation stands not
on the periphery of the democratic process,
.as it did in the last half of the 19th century,
but in its dead center.
with our continuing experience and our ob-
jectives as a people. "There are two prin-
ciples inherent in the very nature of things,"
said Whitehead, "the spirit of change and
the spirit of conservation. * * * Mere change
without conservation is a passage from noth-
ing to nothing. * * * Mere conservation
without change cannot conserve. For after
all, there is a flux of circumstance, and the
freshness of being evaporates under mere
repetition." -'
Those words of Whitehead were cited more
than once by Mr. Justice Cardozo; and one
can see why. Cardozo was a great realist
among judges, not just bowing to the in-
evitability of change but hospitable to it,
going out to ineet it. If changes that were
impending, or indeed already there, seemed
overwhelming, Cardozo was not only undis-
turbed but unsurprised. He saw all this as
the business of the law and the business of
the courts. Said he: "The reconcilatfon of
the irreconcilable, the merger of antitheses,
the synthesis of opposites, these are the great
bl of the law 11 3
ms
The thoughts expressed by this man who has contributed much to law, to business, and the benefit of the wholecommunity, lbelieve, should be given the widest possible circulation. They show a corporate conscience and sensi- some whit l the critics of the American sGen8 -frequently deny or ignore. He makes most interesting comment on the
role of the courts in their perpetual
challenge to accommodate the law to
change.
In order that many may read this ex-
pression by Mr. Gossett, I ask unani-
mous consent that the speech be printed
in the RECORD.
There being no objection,'the address
was ordered to be printed in the RECORD,
as follows:
REMARKS OF WILLIAM T. QOSSETT BEFORE THE
JUDICIAL CONFERENCE OF TIM SIXTH CIR-
CuIT, DEARBORN, MICH., APRIL 29, 1961
I am honored to be with you today. An
invitation to address an audience of
judges-and such a distinguished one-is
not to be taken lightly by any lawyer. Hav-
ing looked up at judges foa almost 33 years,
it is not unpleasant to look down at a few
even for a brief period. But aside from the
obvious strain of appearing in this way, be-
fore the traditional high quality of the Fed-
eral bench, there is on this occasion, a quan-
titative hazard. I am not only outlearned;
I am outnumbered.
Both the Federal bench and the bar today
live in perhaps the greatest period of intel-
lectual challenge since the long slow estab-
lishment of constitutionalism was accom-
plished at the hands of John Marshall in
pro e
I emphasize change because it seems to me ards of reference are broader than the stat-
that, like it or not, we are headed for a ute books or the opinions of the courts. In
volume and a degree of change in the whole recent times the lawyer too often has been
fabric of our life wholly without precedent. no closer abreast of society than the present
We must be equipped, in our legal usages, in state of the law itself, which necessarily
our vision, in the breadth of our reference, always lags behind. This is something with
to deal with them. We must deal with them which some practitioners can still content
far more speedily than we have ever done themselves. But any corporation counsel
before. We must be more than students of worthy of his trust must appraise the im-
the law; we must be students of society, his- ponderables involved in popular judgments
torians before the history has happened. that lead legislators to make new laws and
For the substance of our lives is not the judges to hit upon new interpretations of
law; we only use it. The substance of our old-ones.
life is the society in which we function- This seems to me wholly appropriate.
restless, aspiring, full of good intentions, Laws exist to serve men and not to master
full of errors, incredibly active, driven by them, and they don't come into being unless
the will to get things done. we see a need for them. We have not yet
In all this-if you will permit an inward extended the reach of the commerce clause
reflection-the corporaaion lawyer sees some to cannibalism simply because-so far as we
things with striking clarity. Perhaps more know-the occasion has not arisen. Simi-
than anyone else in our profession, we live larly, I most devoutly hope--although it is
our workday lives outside the law office and too much to expect-that the volume of leg-
outside the courtroom. We are concerned islation touching upon the management of
with conduct before the conduct is a con- business will come along at a somewhat
tern of the law. We see the clashes of in- slower pace during the immediate future
u
~ Rosen Pound, "Introduction to the Phi-
losophy of Law."
2 Alfred North Whitehead, "Science and
the Modern World," 281.
s Benjamin N. Cardozo, "The Paradoxes of
Legal Science," 4.
,
If it ma es a m
repeats a mistake, something will happen
sooner or later to insure that it will never
make the same one again. Pressures will
rise to police It tighter, to Impose new reg-
ulations, to restrict it in new ways, some-
times to punish it. And the response will
come through the courts, through the leg-
islatures, through labor unions, through
consumers; indeed, through all the means
available for the people in a democracy to
express themselves.
Between the rising pressures and the in-
evitable responses stands the corporation
counsel. His job is to contribute creatively.
constructively, to forestall pressures that are
overwhelming and to foresee responses that
are crippling. He is not a partisan. He is
vitally interested in the corporation's growth
and survival; but he cannot afford to stand
on the platform, "my company right or
wrong." If he does, his corporation will not
grow and may not survive.
If corporation counsel is to serve his com-
pany effectively, then, he will find himself
deep in extra-legal activity. But his stand-
g
than it has in the past. As you-as J
are concerned with the law and the needs
of society, so also corporation lawyers, in
their spheres, are concerned with the busi-
ness of society and the need for laws. In
this respect we practice a kind of a priori
adjudication of matters before they occur,
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41961 CONGRESSIONAL RECORD - SENATE
discriminate against one another. Both
Cuba and the United States are members.
The United States would have to get a spe-
cial waiver to Invoke an embargo against
I can remember, in the few years that
I have had the honor to sit in this Cham-
ber, many instances, let me say to my
friend, the Senator from Montana, when
Senator JOHN WILLIAMS, of Delaware,
after studying a problem of importance,
which nevertheless had not been brought
clearly or forcefully to the attention of
the rest of the Members of the Senate,
made a telling point, stuck to it, and
pushed and prodded the Senate into do-
ing 'its duty, and accepting his point of
view.
I can remember that on some occa-
sions, after the Senate stood up in a par-
ticular instance, there was disagreement
in the other body; but it was Senator
JOHN WILLIAMS, of Delaware, who acted
as the Senate's conscience in obtaining
in the Senate a decision that was in the
interest of the American people.
I must add that, with the usual grace
with which the able majority leader acts,
it is he, rather than one of us on this
side of the aisle, who has stood up and
has embellished the RECORD with this edi-
torial comment respecting one of our
Republican colleagues. Once again I
On the domestic front, cutting off the
remaining Cuban imports overnight would
cause serious unemployment in critical areas
of the country. For Instance, Cuban to-
bacco-the largest remaining import-is ab-
solutely essential to the hand-rolling cigar
industry in Tampa, Fla.
For all these reasons, the Government is
hoping for lesser legal and psychological de-
vices to strangle Cuban trade slowly instead
of killing it in one fell swoop.
One such device under study is to raise
preferential tariffs of the Reciprocal Trade
Act to the highest levels permitted under the.
old Smoot-Hawley tariff.
FEW CONTACTS NOW POSSIBLE
On the other hand, this action only
harasses trade; it does not stop it. Officials
note that doubling or even tripling tariffs
poses no problem to a state-controlled econ-
omy, provided the foreign government wants
dollars badly enough. They say the Cuban
Government could arbitrarily reduce all
prices of exports to the United States to
make them competitive on the American
market whatever the tariff.
When all is said and done, the greatest
barrier to Cuban Imports is the lack of
diplomatic relations with this country and
the accompanying psychological attitudes on
both sides. Very little opportunity for con-
tact exists.
Any American businessman must have a
special stamp in his passport to go to Cuba-
a stamp the State Department does not give
out freely.
Any American businessman whoshould get
to the island would find the system of pri-
vate trading wholly destroyed. The estab-
lished banks have been nationalized along
with most everything else, and all financial
contadts are controlled by the state.
As he makes his way through the new
labyrinth of state bureaucracy, he would find
little concrete assurance about how, when,
and where goods would be delivered or pay-
ments received.
NO GUARANTEE SEEN
Even if these obstacles were overcome, the
businessman would still have no guarantee
that Mr. Kennedy would not Invoke the
Trading With the Eenemy Act tomorrow or
the next day. His whole investment could
be wiped out overnight.
The Cuban dictator's reaction to the lard
confiscation is a good example of how all
trade with Cuba can be gradually eliminated
without any blanket embargo. Mr. Castro
claimed the United States was trying to
starve out Cuba, said he would no longer
buy lard from the United States.
If Mr. Castro Is true to his word, he is
cutting out his largest current import from
the United States. Last year Cuban lard
purchases here were $18 million-more than
half of all American exports to Cuba.
It would not take many more such blows
to reduce the current low level of Cuban-
American trade to the zero mark, without
the international embarrassment of a whole-
sale embargo.
Mr. KUCHEL. Mr. President, will the
able majority leader yield?
Mr. MANSFIELD. I am delighted to
yield.
Mr. KUCHEL. This is a deserved
tribute by the leader of the majority
party in the U.S. Senate, Mr. President,
to a unique and highly able Senator
who sits on this side of the aisle, and
whose record has been studded with ex-
amples of successful devotion to the pub-
lic trust. -
salute him.
Mr. MANSFIELD.
ator from California.
MILITARY AID HAS THREE GOALS
Mr. MANSFIELD. Mr. President, the
Honorable Robert S. McNamara, our
energetic Secretary of Defense, recently
found time, despite the heavy burdens of
his office, to serve for one day as a
columnist for the Northern Virginia Sun.
His contribution to that newspaper com-
prised a remarkably succinct and well
prepared analysis entitled "Military Aid
Has Three Goals." The Secretary ac-
curately stated that the U.S. military aid
program should serve a threefold pur-
pose. These purposes are: First, to en-
able free and independent nations to
protect their internal security; second, to
make "local wars" so unprofitable that
such wars will be deterred; and third, to
play a strong role, especially with NATO,
in the deterring of general war.
I commend a reading of Secretary
McNamara's article to- every Member of
this body and to all other thoughtful
Americans ; and I ask unanimous consent
that the editorial, from the July 12 edi-
tion of the Northern Virginia Sun, be
printed in the RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
DEFENSE SECRETARY WRITES: MILITARY AID
r HAS THREE GOALS
(By Robert S. McNamara)
WASHINGTON.-During the past months,
along with my military and civilian asso-
ciates, I have been reexamining a good many
programs of the Department of Defense, pro-
grams ranging from communications satel-
lites to guerrilla warfare training.
One of the factors that has been upper-
most in my mind in evaluating these pro-
grams has been the ratio of their cost in
dollars to their contribution to the security
of the United States. Perhaps the least un-
derstood program in this connection, yet one
of the programs with the highest ration of
value to cost, is the military assistance pro-
gram.
Military assistance has always had to do a
variety of jobs. The program began with
President Truman's decision in 1947 to fur-
nish military aid to Greece and Turkey, with-
out which these countries would have suc-
cumbed to Soviet aggression and Communist
subversion. Thereafter, military aid played a
key role in the development of the first rea-
sonably adequate NATO forces.
As the NATO area became more secure,
higher proportions of the program were de-
voted to Far East areas in jeopardy-Japan,
Korea, the Republic of China, and southeast
Asia-and to areas south of the U.S.S.R.
which historically have been the objects of
Russian expansionism, notably Iran and
Pakistan. It has helped to provide the sta-
bility that is essential for economic progress.
As President Kennedy has pointed out, eco-
nomic aid programs "cannot succeed with-
out peace and order."
Today, as we consider the reasons which
dictate continuance of the military assist-
ance program, we look out upon a world
still convulsed by rapid change and watched
over by strong, resourceful, unscrupulous
adversaries ready to take advantage of any
show of weakness, indecision, timidity.
For evidence of the Communist threat, we
have only to examine the pronouncements
of Mr. Khrushchev himself. In his January
6 speech of this year he maintained that
Communists are opposed to both world and
local wars. There is, however, a third type
of conflict, which we know as subversion and
covert aggression, but which he calls "wars
of national liberation" or "popular upris-
ings." Such conflicts, he says, "Commu-
nists fully and unreservedly support."
As President Kennedy pointed out on his
return from Vienna:
"In the 1940's and the early 1950's the
great danger was from Communist armies
marching across free borders. Now we face
a new and different threat. We no longer
have a nuclear monopoly. Their missiles,
they believe, will hold off our missiles, and
their troops can match our troops should
we intervene in these so-called wars of
liberation.
"Thus the local conflict they support can
turn in their favor through guerrillas or in-
surgents or subversion. The future for free-
dom in these areas rests with the local peo-
ples and their government."
Our military assistance program is de-
signed to meet these extensive and`manJfuld
threats to the security of the United States
and the free world. It is an integral part of
our defense effort. Through the assistance
planned, we anticipate an improvement in
our ability to deal with aggression in its
incipient phases, to furnish help for friends
and allies which will be more consistent
with the kind of threat they face, and to
maintain the facilities abroad required for
the quick and effective deployment of appro-
priate U.S.forces.
We do not claim that what eve propose is a
cure-all for the complex, variegated threat-
the forces of freedom confront around the
world. But the program we now propose we
believe will provide additional flexibility and
permit rapid response to a large variety of
situations, either internal or direct aggres-
sion. -
Military assistance should serve a three-
fold purpose.
It must be more active than ever in en-
abling free and independent nations to pro-
tect their internal security. Our objective
here is to help provide the means for local
military establishments, with the support
and cooperation of local populations, to
guard against external covert intrusion and
internal subversion designed to create disi-
dence and insurrection. Internal stability
is an essential component of economic prog-
ress.
It must continue to make "local war"
clearly unprofitable, and thus deter such
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CONGRESSIONAL RECORD - SENATE 11727'
income attributable to the cash distribution
is v ewed as reduced by only $68). Accord-
ingly, the basis of the bond to the corpora-
tion receiving it will be $15 despite the fact
that the limitation in section 246(b) applies
to the dividend received deduction.
Section 3 of the bill provides a special
adjustment to earnings and profits which
is necessary due to the fact that under the
bill the increase in earnings and profits will
not be the same as the increase in the basis
of the receiving corporation's total assets.
For example, if a corporate shareholder re-
ceives a bond having a fair market value of
$100, its earnings and profits under the bill
are increased by $100. However, if the basis
of, the bond of the distributing corporation
was only $50, the receiving corporation's
basis for the bond will likewise be $50, so
that on the sale of the bond the receiving
corporation will have $50 capital gain.
Since, however, this $50 was already included
in earnings and profits once (as part of the
$100 dividend income), it should not be so
included a second time when the bond is
sold. Accordingly, the proposed section
312(k) eliminates this double inclusion in
earnings and profits.
DESIGNATION OF THE ROSE AS OUR
NATIONAL FLOWER
Mr. KEATING. Mr. President, on be-
half of Senator BRIDGES, Senator JAVITS,
Senator NEUBERGER, Senator SCOTT, Sen-
ator TOWER, and myself, I submit a joint
resolution designating the rose as the
National Flower of the United States.
This joint resolution recognizes officially
a 35-million-year-old native of Amer-
ica-the rose-as the national floral
symbol of the United States.
As the popular favorite for National
Flower honors, the rose is unparalleled.
Today it is the choice of 1 of every 3
Americans-or some 60 million citizens.
In a.recent certified national election in
which more than 1 million ballots were
cast, better than one-third singled out
the rose for national, honors-more than
twice the votes cast for its nearest
competitor.
The rose has been immortalized in
poetry and holds countless memories for
many Americans all across our great
land. The rose is the simpleness of our
gardens and our homes-it possesses the
dignity of solemn occasions, it has the
beauty that is America. Its strength is,
demonstrated by the fact that it grows
everywhere in our land. From Alaska
to Florida and From Maine to Hawaii the
hardy rose is found bringing beauty to
its surroundings. Hardly a garden in our
land is cultivated without finding a dis-
play of vividly colored roses.
Mr. President, we are the only major
Nation of the world without a national
flower. Great Britain, Iran, Honduras,
and Luxembourg have already' adopted
the rose as their national floral emblem.
It is also the official flower of four
States-Iowa, North Dakota, Georgia,
and my own State of New York.
I hope before long Congress will desig-
nate the rose as our national flower. Its
symbolic reflection of peace, loyalty,
honor and courage and its overwhelming
popularity with the American people
make its selection logical.
Mr. President, I ask unanimous con-
sent to have printed at this point in the
RECORD the complete text of the resolu-
tion.
Mr. JAVITS. Mr. President, I would
like to join with my colleagues Senators
KEATING, NEUBERGER, and SCOTT in sup-
port of the Resolution to recognize of-
ficially the rose as the national flower of
the United States. We in Congress are
often compelled to concentrate our ef-
forts on material things. 'However, we
should not lose sight of the importance
of observing the great natural beauty
around us. For centuries, the rose has
been part of the imagery of love for poets
of many lands. The rose has its roots
deep in our historial tradition; the first
settlers on our shores compared the
fragrance of their New World to that of
the rose garden. The rose is the most
prized flower of the normal American
garden. Because of its overwhelming
popularity and its symbolic reflection of
peace, loyalty, honor and courage, it is
only right that we recognize the rose
as our Nation's floral emblem.
The PRESIDENT pro tempore. The
joint resolution will be received and ap-
propriately referred; and, without ob-
jection, the joint resolution will be
printed in the RECORD.
The joint resolution (S.J. Res. 118)
designating the rose as the national
flower of the United States, introduced
by Mr. KEATING (for himself and other
Senators), was received, read twice by its
title, referred to the Committee on the
Judiciary, and ordered to be printed in
the RECORD, as follows:
Whereas the rose is known to men and
women everywhere as the symbol of peace
and hope; and
Whereas the rose is the acknowledged fav-
orite of the vast majority of the American
people; and
Whereas the rose is recognized as the
badge of courage, loyalty. and devotion; and
Whereas the United States is the only ma-
jor nation which has no official flower:
Therefore be it
Resolved by the Senate and House of Rep-
resentatives of the United States of America
in Congress assembled, That the flower com-
monly known as the "rose" is hereby desig-
nated and adopted as the national flower of
the United States, and the President is re-
quested to declare such fact by proclama-
tion.
FREE ENTRY OF TOWING CAR-
RIAGE FOR USE OF UNIVERSITY
OF MICHIGAN-AMENDMENT
Mr. JAVITS submitted an amend-
ment, intended to be proposed by him,
to the bill (H.R. 5852) to provide for the
free entry of a towing carriage for the
use of the University of Michigan, which
was referred to the Committee on Fi-
nance and ordered to be printed.
PRINTING OF REVIEW OF REPORTS
ON MISSISSIPPI RIVER, BATON
ROUGE TO GULF OF MEXICO, -LA.
. (S. DOC. NO. 36)
Mr. KERR. Mr. President, I present
a letter from the Secretary of the Army,
transmitting a report dated March 31,
1961, from the Chief of Engineers, De-
partment of the Army, together with
accompanying papers and an illustra-
tion, on a review of reports on the Mis-
sissippi River, Baton Rouge to the Gulf
of Mexico, La., requested by resolution
of the Committee on Public Works, U.S.
Senate. I ask unanimous consent that
the report be printed as a Senate decu-
ment, with an illustration, and referred
to the Committee on Public Works.
The PRESIDENT pro tempore. With-
out objection, it is so ordered.
PRINTING OF REVIEW OF REPORTS
ON FRESNO RIVER BASIN, CALIF.
(S. DOC. NO. 37)
Mr. KERR. Mr. President, I present
a letter from the Secretary of the Army,
transmitting a favorable report dated
August 30, 1960, from the Chief of Engi-
neers, Department of the Army, together
with accompanying papers and illustra-
tions, on a review of reports on Fresno
River Basin, Calif., requested by resolu-
tion of the Committee on Public Works,
U.S. Senate, adopted June 26, 1958. I
ask unanimous consent that the report
be printed as a Senate document, with
illustrations, and referred to the,Com-
mittee on Public Works.
The PRESIDENT pro tempore. With-
out objection, it is so ordered.
NOTICE OF HEARING ON NOMINA-
TION OF ROBERT E. HAMPTON
TO BE A MEMBER OF THE U.S.
CIVIL SERVICE COMMISSION
Mr. JOHNSTON. Mr. President, as
chairman of the Post Office and Civil
Service Committee, I wish to announce
that a public hearing on the nomination
of Robert E. Hampton to be a member
of the U.S. Civil Service Commission will
be held Thursday, July 20, 1961, at 10
a.m. in room 6202 of the New Senate
Office Building.
The hearing will be open to the public
and will be held before the full commit-
tee.
ADDRESSES, EDITORIALS, ARTICLES,
ETC., PRINTED IN THE APPENDIX
On request, and by unanimous con-
sent, addresses, editorials, articles, etc.,
were ordered to be printed in the Ap-
pendix, as follows:
By Mr. HUMPHREY:
Address by him at President's Safety
Awards ceremony last month in the depart-
mental auditorium.
Address entitled "World Peace Through
World Law," delivered by Senator Lono of
Missouri before Culver-Stockton College,
Canton, Mo., on May 29, 1961.
Address by Dr. Maurice D. Visscher upon
the occasion of the presentation of the
Passano Award for 1961 to Dr. Owen H.
Wangensteen.
Article entitled "The Case for Medical
Care for the Aged," published in the IUE
News of June 29, 1961.
Address entitled "Foreign Aid and Free-
dom," delivered by George Meany, president,
AFL-CIO, over the facilities of the American
Broadcasting Co. network on July 13, 1961.
By Mr. WILEY:
Excerpts from address delivered by him
on the Berlin crisis and the Red threat else-
where in the world.
By Mr. JAVITS:
Address delivered by Representative PAUL
A. Fiseo, of New York, on June 10, 1961,
before the New York Department, Jewish
War Veterans, on the subject of the activi-
ties of the John Birch Society.
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,'71728 CONGRESSIONAL RECORD - SENATE
Resolution adopted by the American Asso-
ciation of Former European Jurists, relating
to the self-employed individuals' tax retire-
ment bill.
By Mr. KUCHEL:
Address entitled "Virtue in the Body of
the People," by C. J. Backstrand, president,
Armstrong Cork Co., Lancaster, Pa., delivered
before the American Good Government So-
ciety, Washington, D.C., April 28, 1961.
By Mr. METCALF:
Statement delivered by Secretary of the
Interior Stewart L. Udall before the Sub-
committee on Irrigation and Reclamation of
the Committee on Interior and Insular Af-
fairs of the House of Representatives on
July 17, 1961, dealing with the saline water
conversion program being administered by
the Department of the Interior.
Editorial entitled "What Indians Want,"
published in the Chicago Tribune of July
3, 1961, relating to the recently concluded
American Indian Conference at the Uni-
versity of Chicago.
By Mr. JACKSON:
Editorial entitled "Good Ship Hope,"
published in the Pasco, Wash., Tri-City
Herald of June 20, 1961, relating to the
mission of the hospital ship SS Hope.
By Mr. MUNDT:
Editorial entitled "More Inflation
Prospect," published in the Redfield
Dak.) Press of July 6, 1961.
By Mr. TALMADGE:
in
(S.
Article entitled "Eighteen Georgia NAACP
Delegates Call on Talmadge, Russell To
Back Rights Bill," written by Albert Riley
and published in the Atlanta Constitution
of July 13, 1961.
By Mr. McCLELLAN:
Excerpt from article entitled "It's Going
Pretty Good in Arkansas," written by Wal-
ter Wingo and published in the Washing-
ton Daily News of July 15, 1961.
By Mr. YARBOROUGH:
Article entitled "Tech Historian Plans
Trip To Do Research in Africa," written by
W. R. Tatum and published in the Lub-
bock (Tex.) Avalanche-Journal of June 11,
1961, relating to special research work by
Dr. Van Mitchell Smith, Jr., into the rapid-
ly changing history of Africa.
Article entitled "Judge Dale W. Harbin,
Civil Leader, Succumbs," published in the
Stephenville (Tex.) Empire-Tribune of
July 7, 1961, relating to the death of County
Judge Dale W. Harbin, of Erath County,
Tex.
By Mr. RANDOLPH:
"President Carlos Garcia Provides Re-
sponsible Leadership in the Philippines?
Bataan Magazine Praises His Administra-
tion"-Introductory remarks by Mr. RAN-
DOLPH at$l excerpts from Bataan magazine.
WARE, AND THE TRADE EM-
BARGO WITH, CUBA
Mr. MANSFIELD. Mr. President,
there are a number of Senators who more
than earn their kee]S so to speak, by act-
ing as the conscience of this body as a
whole. That does not mean that col-
lectively the 100 Senators who comprise
the membership of the Senate do not do
good, patriotic, and outstanding jobs.
They all do. But there are some who
stand out.
I. refer particularly to the distin-
guished senior Senator from Delaware
[Mr. WILLIAMS). Many look upon him
as a gadfly. I think we need more gad-
flies like Senator WILLIAMS, who not only
` keeps Republican and Democratic ad-
ministrations on their toes, but also
keeps the Senate on it toes. I extend to
him my thanks for his constant vigilance
as well as my deep appreciation for the
many-and often unsung-contributions
he has made in making-the Senate a
better and more knowledgeable body.
In the Sunday Star for July 16 there
appeared an article, written by George
Sherman, on the complexities of the par-
tial trade embargo with Cuba. The ad-
ministration is confronted with an ex-
tremely difficult problem in this con-
nection, as the article points out, and
is handling it with a full awareness that
'there is no point in taking one step for-
ward there if the result is two steps
backward elsewhere.
No matter how complicated the situ-
ation, however, it is improper for the
Government procedures in respect to
trade with Cuba to lead to profiteering
on the situation by one particular United
States company or another. Thearticle
notes that the senior Senator from Dela-
ware [Mr. WILLIAMS] has pointed out
that, in the eagerness to cut' off Cuban
imports, a profiteering loophole has been
allowed to exist. In bringing this loop-
hole to the attention of the Senate, the
very able and distinguished Senator from
Delaware has performed a highly useful
service. I ask unanimous consent that
this article be printed at this point in
the RECORD.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
MOLASSES DEAL POINTS UP CUBAN TRADE
FACT: ONLY SUGAR IMPORTS FROM ISLAND
ARE BARRED
(By George Sherman)
The recent multimillion-dollar molasses
deal between Fidel Castro and an American
company has highlighted the pitfalls in the
present informal embargo on trade with
Cuba.
In order to stop the Publicker Co.; of
Philadelphia, from paying Mr. Castro 12
million precious dollars for 120 million gal-
lons of molasses, President Kennedy had to
use a combination of public persuasion and
behind-the-Scenes business bargaining.
The reason: Although the U.S. Govern-
ment has embargoed all American exports to
Cuba-except food and medicine-since last
October, it has not outlawed any Cuban im-
port here other than sugar.
In theory, any American citizen or com-
pany can still legally import a host of Cuban
goods. In fact, however, sugar accounted for
almost 90 percent of the $450 million yearly
average value of products Cuba sent here be-
fore President Eisenhower cut the Cuban su-
gar quota last July.
TRADE DWINDLING
In the 21/2 years since Mr. Castro came to
power, overall trade between the two coun-
tries has steadily dwindled. Today exports
and imports are almost evenly balanced at
somewhere between $25 and $30 million a
year. Mr. Castro pays for American food
(mainly lard) and medicines with sales here
of Cuban tobacco, seasonal vegetables, and
(before the Publicker affair) molasses.
The only other legitimate source of dollars
for Cuba remains the more than $5 million
the U.S. Government pays every year to the
3,500 Cuban workers on Guantanamo Naval
Base at the eastern tip of Cuba.
The United States has refrained from any
counter action, because it considers Guan-
tanamo, and the Cuban workers who help
run it, essential to the national security.
But why has the Kennedy administration
not cut off all other sources of dollars? Does
the legal machinery exist for a total embargo
on Cuban Imports?
July 17
What other devices exist for limiting trade
and what are their loopholes?
THE MOLASSES MATTER
All these questions have been raised by
that first small $200,000 shipment of mo-
lasses which arrived in New Orleans last
month. It was secretly unloaded at the
Publicker wharves before the wails of com-
petitors and Government pressure could stop
it.
The White House immediately declared
that the import of the remainder of the
$12 million order was not in the public in-
terest. But the company was duly com-
pensated.-
Several days later the Department of Ag-
riculture hastily concluded a long-disputed
agreement with Publicker to sell 14 million
bushels of surplus Government corn at bar-
gain prices-as a substitute for the molasses
used in producing industrial alcohol.
The transaction immediately caused an
uproar. On the floor of the Senate, Senator
WILLIAMS, Republican, of Delaware, charged
the administration with paying an $8 mil-
lion subsidy to: dissuade the Philadelphia
concern from dealing with Castro.
He noted that while Publicker-the larg-
est producer of industrial alcohol in the
country-is buying surplus corn at 64 cents
a bushel, any of its competitors must pay
between $1.21 and $1.31 a bushel on the
open market.
LIMIT ON PROFITS SET
Publicker has answered that the molas-
ses-and later the corn-was essential for
keeping open its New Orleans distilling plant
with 700 employees. Government officials
added that all profits from the corn over 2
percent will revert to the U.S. Treasury.
But Senator WILLIAMS now says he can
find no evidence that any of the corn is be-
ing shipped to the New Orleans plant. It
is going from Government warehouses in
Evanston, Ill., to Philadelphia-at Govern-
ment expense of between 25 and 30 cents a
bushel.
But the biggest question is, What happens
after the present 12-month corn agreement
ends?
The only sure-fire way to stop such trans-
actions would be for President Kennedy to
invoke the Trading With the Enemy Act.
This act-which dates back to World War I
empowers the President to declare any coun-
try an enemy of the United States in time
of national emergency, and to require all
imports from that country to have a ape-
.cial license from the Treasury Department.
Since the national emergency declared at
the outbreak of the Korean war in 1950 is
still technically in force, the President could-
in fact make such a declaration about Cuba
tomorrow. At the moment, the act is being
used against only two countries: Communist
China and North Korea.
THE COMPLICATIONS
The President has not extended it to
Cuba, because he feels that the amount of
trade at the moment is not worth the inter-
national and domestic repercussions its
stoppage would cause.
Both the White House and the State De-
partment. are convinced that Castro would
use such an embargo to launch a new propa-
ganda broadside against "American Go-
liath" attempts to starve out the "Cuban
David."
Officials here fear that in many Latin
American ears the charges might ring true.
The embargo could be construed as a viola-
tion of the charter of the Organization of
American States, which forbids "economic
warfare" against any neighbor in the hemi-
sphere.
Furthermore, State Department officials
note that the total embargo would Involve
this country in complicated international
procedures. GATT, the General Agreement
on Tariffs and Trade, forbids members to
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