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Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230013-3 21650 CONGRESSIONAL RECORD ? SENATE ' problem for all the states. of this,hemisphere. If the Cuban, regime is sincere in its re- - trtiebt for negotiations, and wishes to lay - Its grievances before the appropriate forum? the Organization of American ?States--I Would suggest the Cuban Government might start by some action calculated to awaken the confidence of the inter-American system. - The obvious place to begin would be the ? -severing of its multiple ties to the Soviet bloc, Let no one mistake the impact of this Soviet intervention in Cuba pa the hope we all share for world peace. If the Soviet Union persists in the course it has chosen, if it continues to try to prevent the peace- ful social revolution of the Americas, it will Increasingly excite the deep indignation of the, people of my country and of other American States. The result will, be to make the resolution of issues far more difficult in every other part of the world. A consequence of this gratuitous Soviet initiative is to poStpone even further the hope for world stabilization. I cannot state this, point with ?- sufficient gravity. The tradegy of Cuba is AM unfolding. _ How .short has been the time since,the two countries of the Western Hemisphere ac- claimed the downfall of the Batista dictator- - ship and hailed what promised to be,a demo- cratic and progressive revolution. How - quickly that promise was replaced by a reign ? of terror, confiscation, and the ,suppression of political, intellectual and religious free- orn, as fear is the first Price of oppression, It would, also have been the final price, if 'the Cuban oppressor had not been _saved from 'the Cuban people by the Soviet Union. How many times in history has fear of the people's wrath driven tyrants to sell their nation to MorepoWerful tyrants? Can the Cuban electorate send-the Russian forces home? Do the Cuban leaders dare face ?their people without these alien pro- tectors? A_ country bristling with Soviet -missiles and, protectors is your answer. ? 'We will constantly work to reassure the Cuban people that they have not been for- gotten or abandoned, and make clear to -freedom loving Cubans, both within and 'Without that country, that they can count on the sympathy and support of the American -people in their efforts to escape the grip of Soviet domination and recapture their own revoltition. We did this for those who sought the overthrow of Batista. We can do no less today. The Foreign Ministers meeting at Wash- ington voiced the fraternal affection of all American peoples for the people of Cuba, and fervently wish to see them embraced again ,in the American family of nations. The United States joins wholeheartedly in this -desire. If the Cuban regime wishes to establish nonnal 'friendly relations in this hemisphere, let it return to the concepts and obligations of the inter-American system; let it cease its subservience to the Soviet Union?let it cease to be an avenue of intervention, which threatens the fundamental principles and the peace and security of all its neighbors with an alien doctrine. The way is clear, and the choice Is Onba's. Mr. MORSE. In MY judgment, the Lippmann article and the Stevenson statement make perfectly clear to the 4rne4Pan people that we have no inten- tion of following an aggressive course of action aganst Cuba, in spite of the lies spoken yesteyday by the President ,Cub,a 1,t,t the United Nations, but that _ intgnd to stop any agression on the ,part: of Cuba Against either the United ratates_or any of our allies in the Western Hemisphere. That is American policy. That is sound policy. It is within the frame- work of international law. I highly commend the President of the United States for his statesmanship in the field of foreign policy. USE BY STATE AND JUSTICE DE- PARTMENTS OF DOSSIERS FROM TRUJILLO FILES Mr. WILLIAMS of Delaware. Mr. President, in the September 18, 1962, issue of National Review Bulletin there . appeared a certain article from which I quote: According to reliable sources, the State and Justice Departments are making good use of dossiers taken from the files of the Trujillo regime. These dossiers show that the late Dominican dictator had a regular price list for U.S. legislators: $10,000 for a congressman, $25,000 for a senator or Com- mittee chairman, more for those with real political muscle. The names of those "on the take" are known, and it is charged that they reach very high in the congressional hierarchy. This information, if blasted out, could create a first class political scandal, but so far it is being used to condition the thinking of those involved when they become obstreperous over "must" legislation. This is a rather serious charge, and recognizing it as such I forwarded a letter to the Attorney General under date of September 20, incorporating this charge, and asking him to look into it and to comment. I ask unanimous consent that both my letter and the Attorney General's reply thereto, as received by me on October 2, be printed at this point in the RECORD. There being no objection, the letters were ordered to be printed in the RECORD, as follows: SEPTEMBER 20, 1962. Hon. ROBERT P. KENNEDY, Attorney General, Department of Justice, Washington, D.C. MY DEAR MR. ATTORNEY GENERAL: In the September 18, 1962, issue of National Review Bulletin, there appears on page 5 the fol- lowing paragraph, which is quoted in full: "According to reliable sources, the State and Justice Departments are making good use of dossiers taken from the files of the Trujillo regime. These dossiers show that the late Dominican dictator had a regular price list for U.S. legislators: $10,000 for a Congressman, $25,000 for a Senator or com- mittee chairman, more for those with real political muscle. The names of those "on the take" are known, and it is charged that they reach very high in the congressional hierarchy. This information, if blasted out, could create a first-class political scandal, but go far it is being used to condition the thinking of those involved when they become obstreperous over 'must' legislation." It seems to me that this is a most serious charge to have published in a nationally circulated publication_ and it should not go unchallenged. I ask you, therefore, to ad- vise me as soon as possible whether the in- formation contained in the paragraph quoted above is or is not true. I cannot overemphasize the seriousness which I attach to these charges and believe that if they are not true a prompt denial should be made public. Yours sincerely, JOHN J. WILLrams. October 2 OFFICE OF THE ATTORNEY GENERAL, Washington, D.C., October 2, 1962. Hon. JOHN J. WILLIAMS, U.S. Senate, Washington, D.C. DEAR SENATOR: This is in response to your letter of September 20, 1962, re the para- graph in the National Review Bulletin of September 18. I know of no list or information, such as that referred to in the article mentioned. Whether or not there is such a list is one of the matters being looked into in connec- tion with the current investigation of the Galindez case. Up to this time, no such information has been developed. I appreciate your interest in bringing this to my attention. Sincerely, Roam' F. KENNEDY, Attorney General. CRITICISM OF DEMOCRATIC LEAD- ERSHIP IN THIS SESSION OF CON- GRESS Mr. WILLIAMS of Delaware. Mr. President, this week some of us hope to bring to a close what has been one of the longest, most quarrelsome, and most frustrating peacetime sessions of the Congress. Adjournment has been unduly delayed as the result of a series of revolts of the Democratic membership against the leadership of the Senate and their own President. It is ironical that this revolt stems, not from the opposition party but, rather, from within its own ranks. For instance: First, appropriation bills were held up months as the result of a picayunish dispute between the chair- men of the House and Senate Appropria- tions Committees as to who should sit at the head of the table during the con- ferences. Now two subcommittee chair- men are feuding, which means more delays. Even the secretary of the Democratic conference committee of the Senate is leading a revolt against the President and threatening to hold Congress in session indefinitely in an effort to force him to sign or veto a pet bill before adjourn- ment. This is a bill which had been on the Senate Calendar for more than a year, and no one was even interested enough in the legislation to move for its consideration until a couple of weeks ago. In fact, less than a month ago the spon- sors of this same bill voted against it when it was offered as an amendment to the regular tax bill. Suddenly this bill assumes great im- portance, and one wonders whether it is the bill that is so important or whether some of the Democratic Members of the Senate are just using this as an excuse to show their resentment against some of the arrogant demands which the President has made on this Congress. With a 2-to-1 majority in the Senate and a 3-to-2 majority in the House one would think that they could have finished the business of the Congress on schedule. To make the situation even worse, the President, rather than' staying on the job in Washington, has just been using the White House as a stopover between weekend vacationing at Hyannis Port and political junkets around the coun- Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230013-3 1962 patrol boats and anti-aircraft equipment would be just exactly what he would need to repel another landing by Cuban exiles. The present Cuban military buildup is not only not capable of offensive action, but also it is not capable of defensive action against the United States. Approved For Release 2004/06/23: CIA-RDP651300383R000200230013-3 CONGRESSIONAL RECORD ? SENATE 21649 Let me read the final paragraph: It follows that as long as there is no direct military aggression by Cuba, as long as we are limiting ourselves to measures short of war, one of the best responses is to force the Soviet Union and the Soviet bloc to carry the whole burden of Cuban reconstruction. That is the intent of the shipping measures now being formulated. They will not de- stroy the Castro regime now. But they will make it much more expensive and incon- venient for the Soviet Union to make Castro succeed. In January of this year the Senator from Ibwa [Mr. lirciamoopral and I were the two delegates from the Senate to the Punta del Este Conference. We listened to the diatribes and the Com- munist propaganda of the President of Cuba in a series of speeches at Punta del Este. The ?RESIDENT pro tempore. The time of the Senator has expired. Mr. MORSE. I ask unanimous con- sent to continue for I more minute. The PRESIDENT pro tempore. With- out objection, it is so ordered. Mr. MORSE. He put on a repeat per- formance yesterday at the United Na- tions, about which we read in the news- papers today. He was answered, in a prepared statement that was circulated throughout the United Nations, by our brilliant and great statesman, the Amer- ican Ambassador to the United Nations, .Adlai Stevenson. I ask unanimous consent that Mr. Stevenson's statement of yesterday be printed in the RECORD at this point. There being no objection, the state- ment was ordered to be printed in the RECORD, as follows: OCTOBER 8, 1982. STATE'MENT BY AMBASSADOR ADLAI H. Srevasv- soN, U.S. REPRESENTATIVE TO TM therrEn NATIONS, IN PLENARY Seas-tow Mr. President, I have asked to speak to a point of order. For 17 years we have come to expect that when a Chief of state asks for the privilege of this podium, he has an obligation not to abuse it, and not to de- mean the United Nations and the dialog Of diplomacy, but to speak here in a Con- structive and a statesmanlike manner. But the President of Cuba, Mr. President, speaking as chief of state on a ceremonial occasion, has seen fit to use this rostrum to attack my country with unparalleled ca- lumnies, slanders, and misrepresentations for 1 hour and 45 minutes. Yet, Mr. President, I will not claim a right of reply from this platform this morning. Instead, I shall respond to his intemperate and false charges outside of this hall and at once. And, with your permission, Mr. Presi- dent, I will have my response placed be- fore the members of the General Assembly in printed form during the day. Mr. President, the traditions of etiquette and of good taste which have been estab- lished here have built respect for this or- ganization and, for my part. I do not want to descend even by reply to the levels of the chief of state we have just heard on this ceremonial occasion. He is right, however, on one point. The last word will be written by history. STATEMENT BY AMBASSADOR ADLAI STEVEN- SON, U.S. REPRESENTATIVE TO THE UNTTRD NATIONS, IN REPLY TO PRESIDENT OORTICOS Slander and invective are no substitute for facts and the weaker a case is the longer it takes to present. I think I can be very brief, Indeed. The charges just rehearsed by President Dorticos of Cuba against my government are neither original nor true. Four times within the last 8 months, once in the Special Political Committee of the Assembly, once in the Plenary, and twice in the Security Council, the United Nations has decisively rejected accusations similar to those we have heard today. I repeat the policy of the United States: . The Government of the United States, like the governments of the other independent American Republics, will honor Its commit- ments to the 'United Nations Charter and to the Inter-American system. As we have stated so often, the United States will not commit aggression against Cuba. But let It be equally clear that the United States will not tolerate aggression against any part of this hemisphere. The United States will exercise the right of individual and collec- tive self-defense?a right expressly recog- nized in the charter?against aggression in this hemisphere. The charges made by Cuba against the United States are dictated by two factors. One is that the Castro regime has associated itself with the Communist bloc in its pursuit of world domination. A tactic always used in seeking this objective is to ridicule, malign and vilify anyone with the courage to oppose them. The second factor is Cuba's self-inflicted exclusion from the American family of na- tions. The Castro regime has turned its back on its history, tradition, religion and culture. Cuba has turned away from its neighbors, and it is at the mercy of the political riptides that sweep through the Communist world with such frequence. Thus the other nations of the Americas are understandably anxious and alert. But vigilance cannot and should not be equated with Intervention, nor alarm with aggression. The hemisphere?and the world?were prepared to accept the original promises of the Castro government that economic and social justice would be brought to the Cuban people. But its original pledges have now been discarded by the Cuban regime, and we condemn with all the force at our command the violations of civil justice, the drumhead executions and the suppression of political, intellectual, and religious freedom which have been inflicted on the Cuban people. But even these excesses would not con- stitute a direct threat to the peace and inde- pendence of other states. However, Cuba has been opened to a flood of Soviet weapons and "technicans." and to the Soviet Union's so-called fishing fleet which is a long way from the fishing grounds off the north shore of Cuba. The cod and the herring, gentlemen, are a long way from the new fishing fleet's head- quarters. Cuba has not only armed Itself to a degree never before seen in any Latin American country, but it has also welcomed penetration by the foremost exponent of a doctrine condemned in this hemisphere as "alien" and "incompatible." What we can- not accept?and will never accept?is that Cuba has become the springboard for aggres- sive and subversive efforts to destroy the inter-American system, to overthrow the governments of the Americas and to obstruct the peaceful, democratic evolution of this hemisphere toward social justice and eco- nomic development. The statements of the President of the United States on this subject, and the recent joint resolution of the Congress of the United States amply attest to this concern. Nor can these developments be ignored by the American Republics as a whole. Let there be no doubt as to the solidarity of the nations of this hemisphere on the prob- lem of Cuba. The foreign ministers and special repre- sentatives of the American Republics have just concluded 2 days of informal discussion on Communist Intervention in Cuba. Speak- ing unanimously, they declared that the most urgent problem facing the hemisphere Is this foreign intervention in Cuba and its threat to convert the island into an armed base for penetration and subversion of the democratic institutions of the hemisphere. The hemisphere representatives unani- mously affirmed their will to strengthen our common security against all aggression and all situations threatening peace and secu- rity in this hemisphere. Noting the special characteristics of the Inter-American re- gional system, they stated that a military intervention by Communist powers in Cuba cannot be justified as a situation analogous to the defensive measures adopted in other parts of the free world in order to resist Soviet imperialism. The communique issued by the foreign ministers in Washington last week reflected the sense of increased gravity with which the American States have witnessed a suc- cession of developments in Cuba since the Punta del Este meeting, where the Com- munist government of Cuba was found to be incompatible with the American system. In the face of this threat, the foreign min- isters have again unanimously reaffirmed their will to strengthen the security of the hemisphere against all aggression, from in- side and outside the hemisphere, and against all developments and situations capable of threatening its peace and security. The historic support of the members of the Organization of American States for the principles of self-determination and non- intervention are well known. These prin- ciples have been enshrined in acts of inter- American conferences, antedating by decades even the conception of the United Nations. The United States has already begun to take effective measures concerning shipping and trade with Cuba, and the surveillance of traffic in arms and other strategic items in accordance with the discussions of the ministers of foreign affairs, the resolutions of the eighth meeting of consultation and other Inter-American instruments. The purpose of these measures is the col- lective defense of the hemisphere. As I have said, these measures have no offensive pur- pose. There was incessant talk this morning about economic strangulation and economic blockade. Neither of these terms has any application to this case. The current regime in Cuba has pro- nounced its intention to overthrow other governments in this hemisphere. Could any- one, therefore, take part in any trade, or aid trade designed to boost the Cuban economy, and to arm its military services? To say that our self-protective actions are aggressive or a warlike gesture is absurd. It is the most normal, and indeed the least violent way, in which we can express our strong disapproval of the threats and sword rattling emanating from Cuba. No threat to peace in this hemisphere arises out of the unanimous determination of American Republics in this regard. The President of Cuba professes that Cuba has always been willing to hold discussions with the Ignited States to improve relations and to reduce tensions. But what he really wishes us to do is to place the seal of ap- proval on the existence of a Communist regime in the Western Hemisphere. The maintenance of communism in the Americas Is not negotiable. Furthermore the problem of Cuba is not a simple problem of United States-Cuban relations. It Is a collective Approved For Release 2004/06/23 : CIA-RDP65600383R000200230013-3 Approved For Releas_e2004L0.6/23 ? LIA-RQP6k1H0383R00020023001,3-3 CONGRESSIONAL RECORD ? SEN uctober 9 thped States. In absolute terms, however, the gap between the two nations has wid- ened. U.S. GNP, at the year's start, was $491.4 billion greater than that of Japan. Eight years ago, the 'U.S. lead was only 8342.6 billion. At last count U.S. GNP was more than 10 times Japan's. "It's impossible to say for certain how fast we should expand?there's a tendency to pick a figure out of the air," asserts F. L. Simmons, vice president and economist of Morgan Guaranty Trust Co., New Xork. "The statements made, moreover, often reflect the political underpinnings spe kers." Mr. MORS Wiresid?, one of the most scholarly and penetrating anal- yses of the Cuban issue is contained in an article by Walter Lippmann which was published this morning in the Wash- ington Post. I ask unanimous consent that the article be printed at this point in the RECORD, as a part of my remarks. There being no objection, the article was ordered to be printed in the RECORD, as follows: ON WAR OVER CUBA (By Walter Lippmann) On the question of going to war ?ger Cuba (by blockade or invasion) we now have avail- able a summary of the intelligence findings on which the administration is acting. 'These facts explain the President's decision to confine himself at this time to measures which are short of war. The facts were put on the record last Wednesday, October 3, before the House Select Committee on Ex- port Control by 1Vir. George Ball, the Under Secretary of State. This intelligence estimate is based on an elaborate system of surveillance by sea, by air and by land, and there is every reason to think that its accuracy is very high. For Cuba is an island easily within reach of the Navy and the Air Force, and with the modern apparatus of electronic and photographic in- telligence, little of military interest can hap- pen without our knowing it. We do not have to guess about what is being landed at the Cuban ports or about what is being constructed on Cuban territory. We know. And anyone who chases to question the basis of our present policy must begin by proving that the intelligence estimates are wrong. So I shall quote in full Mr. Ball's testi- mony on the crucial question of the Cuban military buildup. "Since July, when the volume of Soviet military shipments to Cuba suddenly vaulted upward, 85 shiploads ar- rived in Cuban ports. Many of them carried military items, supplies and personnel. These shipments have consisted, in part, of types of weapons previously delivered to the Cuban armed forces, including more tanks, self-propelled guns, and other ground force equipment. The major tonnage in tecent shipments, however, has been devoted to SA-2, surface-to-air missiles (SAMS)?to- gether with all the related gear and equip- ment necessary for their installation and op- eration. To date, 15 SAM sites have been established, in the island. We estimate the total may eventually reach 25. These are antiaircraft missiles having a slant range of 20 to 25 miles. "In addition, three and possibly four mis- sile sites of a different type have been iden- tified. These sites are similar to known Soviet coastal defense missile sites that are believed to accommodate antishipping mis- siles with a range of 20 to 35 miles. quite likely several more such sites will be in- stalled. "Cuba is now estimated to have 60 older type Mig jet aircraft. In addition, at least one advanced jet-interceptor has recently been received, and probably several more are in the process of assembly. This type of ad- vanced jet-interceptor is usually equipped with infrared air-to-air missiles. We esti- mate that the total of these advanced inter- ceptors in Cuba may eventually reach 25 to 30. "In addition, 16 'Komar' class guided mis- sile patrol boats, which carry 2 short-range missiles (11 to 17 miles) were included in recent shipments. "About 4,500 Soviet military specialists ?have arrived, including construction men and technicians." The military buildup, in short, consists of weapons for the army, antiaircraft missiles, coastal defense weapons, some short-range patrol boats, a few fighter interceptors and some 4,500 Soviet specialists, technicians, and construction men. What is it all for? To attack the United States? Obviously not. The United States, using only conventional weapons, could dispose of Cuba in a few hours. Is the buildup to invade a Latin American neighbor? Conceivably, but only if Castro was prepared for the enormous punishment that would follow. It is obvious, I submit, that Castro is being armed against a rerun of the raid on the Bay of Pigs in April 1961. Tanks, coastal defenses, patrol boats, and antiaircraft equipment would be just exactly what he would need to repel another landing by Cuban exiles. The present Cuban military buildup is not only not capable of offensive action, but also it is not capable of defensive action against the United States. What then is Mr. Khrushchev up to in Cuba? Secondarily, perhaps he is baiting a trap for us which, if we fall into it, would throw the whole Western Alliance into con- fusion and disorder just at the time when a Berlin crisis is developing. But primarily Mr. Khrushchev is in Cuba because he has talked so loudly about helping revolutions. Castro has thrown himself into Khrushchev's arms, and is blackmailing him. The Castro regime has made itself the prime and public test of whether international communism is a real force or a lot of words. Unless Castro can be made to succeed in Cuba, the revolutionary propaganda among the backward countries in the rest of the world will be greatly weakened. So Mr. Khrushchev, despite what was un- doubtedly much reluctance, is entangled in the fortunes of Fidel Castro. He must pour into Cuba oil and machinery, raw materials and food, and technicians and know-how, and money in order to demonstrate that com- munism can do better and faster in Cuba what the United States and the Alliance for Progress are trying slowly, but by peaceable means, to do elsewhere in Latin America. This is the core of the Soviet-Cuban alliance. Mr. Ball described the Soviet in- tervention in Cuba as an effort "to establish a beachhead for subversion in this hemi- sphere." This would mean that Cuban fa- cilities and Cuban connections with other countries in Latin America would be used to infiltrate agents and propaganda and small arms and money. All of this will work only if in Cuba there is a showpiece of success- ful communism. It will not work if the agents come from a land that is in misery and disorder. /t follows that as long as there is no direct military aggression by Cuba, as long as we are limiting ourselves to measures short of war, one of the best responses is to force the Soviet Union and the Soviet bloc to carry the whole burden of Cuban reconstruction. That is the intent of the shipping measures now being formulated. They will not de- stroy the Castro regime now. But they will make it much more expensive and in- convenient for the Soviet Union to make Castro succeed. Following the increasing agitation of the war party in this country, I have turned once more to a famous passage in Winston Churchill's writings in which he discusses the rights and wrongs of going to war. "The safety of the State, the lives and freedom of their own fellow countrymen, to whom they owe their (the statesmen) posi- tion, make it right and imperative in the last resort, or when a final and definite con- viction has been reached, that the use of force should not be excluded. If the cir- cumstances are such as to warrant it, force may be used. And if this be so, it should be used under the conditions which are most favorable. There is no merit in putting off a war for a year if, when it comes, it is a far worse war or one much harder to win. These are the tormenting dilemmas upon Which mankind has throughout its history been so frequently impaled. Final judgment upon them can only be recorded by history in rela- tion to the facts of the case as known to the parties at the time, and also as subsequently proved." In the Cuban question the facts do not now compel a decision to go to war and there is no evidence whatsoever that war is inevitable and that it should therefore, be engaged in at once. "Those who are prone by temperament and character to seek sharp and clear-cut solu- tions of difficult and obscure problems, who are ready to fight whenever some challenge comes from a foreign power, have not always been right. On the other hand, those whose inclination is to bow their heads, to seek patiently and faithfully for peaceful com- promise, are not always wrong. On the con- trary, in the majority of instances they may be right, not only morally but from a prac- tical standpoint. How many wars have been averted by patience and persisting good will. * * * How many wars have been pre- cipitated by firebrands." Mr. MORSE. Mr. President, I wish to read two paragraphs from the article, because in my judgment it is a very clear and, I believe, unanswerable de- fense of the brilliant policy which Presi- dent Kennedy is following in connection with the Cuban crisis. There are those who want our country to go to war over Cuba; but they overlook the fact that if we do, we shall stand almost alone, because I think that, at the present time, world opinion is overwhelmingly against any such course of action?and rightly SO. Lippmann points it out with his keen mind in a very convincing manner. As I said before, and repeat today, the American people have every right to have confidence in President Kennedy's position in the Cuban crisis. He has no intention of allowing Cuba to take an aggressive course of action, but he has stated, in a way that is unanswerable, that even a Communist country has the sovereign right to build up its defenses. Lippmann states: The military 'buildup, in short, consists of weapons for the army, anti-aircraft missiles, coastal defense weapons, some short-range patrol boats, a few fighter interceptors and some 4,500 Soviet specialists, technicians, and construction men. What is it all for? To attack the United States? Obviously not. The United States, using only conventional weapons, could dispose of Cuba in a few hours. Is the buildup to invade a Latin American neighbor? Conceivably, but only if Castro was prepared for the enormous punishment that would follow. It is ob- vious, I submit, that Castro is being armed against a rerun of the raid on the Bay of Pigs in April 1961. Tanks, coastal defenses, Approved For Release 2004/06/23 : CIA-RDP65600383R000200230013-3 62 Approved For.ReltefOWLMA4 Pumber of television sets has, Ur/ greatly increased, and that the number Of washing machines, air conditioners, sagi so forth, has also greatly increased. The article also states: The great burst of consumer goods pro- duction in recent years far outpaces the tion rise. Since 1955, the 17.S. po u- has increased 12 percent. But the of motor vehicles In use, for exam- climbed 24 percent. Some 8 million Mown More than one auto now, nearly e The 1955 total. Ilut xi/se of television In recent Iclameallave sets today, up from 1955 dryers: Nearly a quarter Of are now equipped with them, up erce.nt in 1955. de also points out: rising research and development In recent years has laid the ground- =abet betterment in living stand- $50 billion so spent in the U.S sat 4 years is nearly double the sum Spent in the previous 4 years. This spend- ing has increased yearly, through recovery and recession, since totals first were corn- piled in 1954. Mr. President, the argument for in- creasing spending and re5luc1ng taxes has been based on the notion that our won- Only has grown far more slowly than have the economies overseas. But this Is partly a statistical mirage. As the article points out: lhit such comparisons can be misleading. Many foreign economies were smashed by World War IL All are expanding from levels far below the U.S. postwar base Japan's 014P, for instance, has soared over 180 percent since the mid-1950's, far steeper thanAe comparable rise of GNP in the Unit- ed States. In absolute terms, however, the between the two nations bas widened. VS 4:314P, at the year's start. was $491.4 bil- lion greater than. that of Jepan. Eight years ago, the trnited States lead was oply 1342.8 billion At lest count U.S. GNP was more than. 10 times Japan's. Se I believe we should look at the real facts, and should examine them very carefully, before we embark on policies Of deficit spending and of deliberately IrOhnlanzing the budget in times of rela- tive prosperity, since the economy has lkineFItti)-ernely well in the last 8 years. I ask unanimous consent that the article from the Wall Street Journal be printed at this point in the RECORD. There being no objection, the article was ordered to be printed in the REcon, as follows:, acorrourc GROWTH --17.a. LIVING STANDARD StRiX3 Twice ati Fear as m Etats .Posxwsa 8tags-Fienionsi. Income Arras Tams Gams 3.8 Peaceser Di Pam 8 Team. 9 OF 10 HAMM HAVE TV-PLAW us Cleowszu Cossesiuson (By Alfred D. Malithre, Jr.) The American standard of.:11.ving has grown twice as fast in the last 8 years as in, the first after World War U.. This fundamental fact Mime throng)x the fog of Federal statistics in an era of much fretting over slow growth in the Nation's economy. There is no index Of the staruikrd 91 lain& Igeestuing it precisely is impossible. But one figure comes close to the rwark., This is per molt& disposable fororne adjusted for Changes in the level of, prices. The dispoa- : pie meant/1.th after all personal taxes. Siam late. last year thle fimire has htia above 62.000 fee the first tlinee Weat t414.1 puts it at 0,030 in terms of 1961 prices. That's an upwara heunce of percent in leas than 8 years. In the 8 years ended with 1954 It rose less than 7 percent. The 2.000-plus figure on the statistically average American's ultimate ability to buy the goods and services of life Is now nearly double the $1,212 of prewar 1939. (The 1939 total, to mole it coMParable despite price rhsngea, is in terms of 1961 dollem. In 1939 diallers it was 0421,1 $9314 EVIDENCE IN HOMES, GOLF COURSES Evidence of how this great growth in real buying power has bettered the lot of the citizen is abundant. It's found in homes and on highways. In bowling alleys and on glif courses. It shows In book *Mores and concert halls. And-for the sick-in hos- pitals. The 48 million new United States autos made in the last Q years alone add up to twice as many cars as there are toaai on all the roads of Europe (including Russia). Ghee-a-Week bowlers In the United States now at SO million, -double the total of 1955. The gelling army has grown 2$ percent: The leap ef living standards goes beyond the enjoyment of materiel things. Columbia Records reports the recording of classical Music is the fastest growing partot its turd= neas-up 80 percent from the year earlier period in the first half qf 190. Boole sales._ over $1.2 billion yearly, are twice the 1955 total. The number of persons nOw enter- ing hospitals is nearly half again' as large as In the mid 1950's. Growth of consumer products has acceler- ated sharply in recent years. The table below Mown U.S. production of some familiar goods. The Postwar years, starting with 1947. have been divided into two 8-year periods to match recent output against that in the supposedly fast growing early years. Totals for 1955-62 in- clude full-year estimates for this year. Fig- Urns are in millione of unite. Output 1955-62 1947-54 Autos 48.4 40.6 TV sets 51.9 37.7 Washing machines 30.8 29.0 Air conditioners 12.8 3.2 Clothes 10.6 3.3 Dishwaehers- ,? 3,9. .1.6 The quantity of goods produced in the more recent 5-year span, in every case, ex- ceeds the earlier output. In two instances- air conditioners and clothes dryers-1G55-62 production is more than three times the 1947-54 total. And the list doesn't include many items not even produced in the early years. Examples: Washer-dryer combination appli- ances (100,000 unite sold by manufacturers last year), electric can openers (1.7 million), electric knife sharpeners (500,000) ?and tape recorders (500,000). otrrerefee Verratirmar Ms* The great buret af COLLAILITIDI goods pre- auction in MOM& years far _outpaces the population. Bee_ Since 1955. the U.S. popu- lation has increased 12? percent. But the number of motor vehicles in use, for Cram- pie, has climbed 34 percent. Some .8 million families own more than one auto now, nearly double the 1955 total. Witness the rise of television in recent years: wine of 10 homes have sets today, up from 7 in 10 in 1955. Or clothes dryers: Ready a quarter of U.S. households are now equ1pped with them, up from 8 percent In 1955. Or beef coneumptIona Per capita, Ameri- cans ate 67 pounds ?fat lestyear, a 12-pound lump from the 1958 average. . The homehundIng surge-over 10 million new homes In bps pun, e years-has re- duced "doubling up" among fan:Lilies. In ? 21647 1955, about 1.5 million married couples were without homes of their own and had to ilea with relatives or others. The total now is close to 900,000. And homes are getting bigger. Floor space In a new single-family house averages about 1,500 square feet, a third more space than the average new home contained in. 1955. DEPRESSING DEMAND? Paradoxically, the great boom in things for consumers has caused some fears that con- sumers no possess so many items there is little room for continuing strong demand. Many economists, however, believe such concern is unwarranted. Norris 0. Johnson, vice president and economist of First Na- tional City Bank, New Fork, puts it this way: "Human wants are insatiable. If the old worries about people having everything were valid, our economy would still be in the horse-and-buggy stages." Living-standard growth through access to more so-called services has been sweeping. A dramatic example: U.S. hospitals last year handled a record 25.5 million admis- sions. That's about 40 percent above the mid-1950's level. To supply the growing wants of Americans, UB. industry has carried out a vast ex- pansion in recent years. Industry's massive ability to produce has prompted some con- cern about "excessive" capacity. But It also has paved the way for fast growth in the years just ahead, many experts contend. ELECTRIC= TO SPARE Note the gigantic growth in facilities to generate laborsaving electricity. The coun- try's generating capacity now exceeds 180 million kilowatts: that's nearly 70 million above the 1955 level. "We have the capacity now to handle a 25-percent jump in demand," says an offi- cial of Edison Electric Institute, a trade group representing electric utility com- panies. In the mid-1950's, he estimates, generating capacity was only 15 to 20 per- cent higher than demand. To increase and otherwise improve pro- duction. the Nation's manufacturers have pumped $101.3 billion into new plant and equipment projects since 1955. That's some $17 billion more than they spent for plant and equipment in the entire previous post- war era. One result of such spending has been a 30-percent leap in production capacity in basic induatties (metals, chemicals, petrole- um, textiles, lumber, and cement) in the past 8 years. These industries as a whole are now using some 80 percent of their ca- pacity. according to Government estimates, down from about 85 percent in 1955. Rapidly rising research and development spending in. recent years has laid the ground- work for further betterment in living stand- ards. The $50 billion so spent in. the United States in the past 4 years is nearly double the sum spent in the previous 4 years. This spending has increased yearly, through re- covery and recession, since totals first were compiled in 1954. Much of the concern over "slow growth" In the United States centers in comparisons between the increase of gross national prod- uct (the market value of all goods produced and services performed) in the United States and in other lands. GNP in the United States has risen only 2.7 percent annually since the middle of the last decade (after allowing for price in- creases), far below the comparable rise in some other lands. But such comparisons can be misleading. Many foreign economies were smashed by World War U, All are expanding from levels far below the U.S. postwar base. Japan's GNP, for instance, has soared over 130 percent since the mid-1950's, far steeper than the comparable rise of GNP in the Approved For'Release*2004/06/23 : CIA-RDP6p00383R0,00200230013-3