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Approved For Release 2004/06/23 : CIA-RDP6513.00383R000200230019-7 21266 CONGRESSIONAL RECORD ? HOUSE $435 million Federal program for re- training workers whose jobs have dis- appeared because of automation has been launched by this Congress. A distressed area bill was also enacted which will aid great numbers of unemployed to jobs and a more abundant life. INTERNATIONAL TRADE The President's program to regulate tariffs on certain goods and to reduce or raise tariffs on other items, and to pro- vide Federal aid to United States firm and workers damaged by imports was a step in the right direction to increase prosperity and combat unemployment. AGRICULTURE The President's program on agricul- ture although crippled by amendments will greatly reduce surplus and the ridiculous grain storage cost of over a billion dollars a year. The farmers of the Nation suffered greatly under the im- practicable surplus program created under former Secretary of Agriculture Benson. The Benson farm program aided greatly in bringing about four de- pressions under the Eisenhower admin- istration. When the American farmer is prosperous and possesses purchasing power, he is indirectly creating demand for steel, oil, and numerous manufac- tured products in American cities and towns. sax CUT This Congress repealed 10 percent tax on railroad, bus, water travel, and cut tax to 5 percent on airline tickets ef- fective November 15. WELFARE Revised and extended Federal benefits and State-operated public assistance programs by rehabilitation and help for the needy, aged, blind, and disabled. VETERANS Enacted legislation giving increases of 9.4 percent to veterans drawing com- pensation for injury or ailment resulting from military service. PUBLIC WORUS The House of Representatives author- ized the outlay of $900 million in Fed- eral matched grants to launch public works projects or accelerate existing projects in areas of heavy unemploy- ment. PEACE CORPS Congress authorized the Peace Corps In 1961 and enlarged it in 1962. It is un- fortunate that this program was not in- augurated 15 years ago as the Peace Corps would have expanded each year and by today, we could have an interna- tional organization to combat false com- munistic propaganda in backward na- tions and new governments throughout the world. Members of Congress who opposed the Peace Corps a year and a half ago are today enthusiastic support- ers of this program. DEFENSE This Congress has made outstanding progress in our much delayed space pro- gram. Through the outstanding ability and leadership of Secretary McNamara and Vice President Johnson, our Nation once again has been placed as the world's only military citadel that keeps the Com- munist dictators of Russia and China from aggressing in their mad conquest to enslave mankind. Taxpayers should remember that approximately 84 percent of every tax dollar is applied to expenses of past wars, the present cold war opera- tion, and the protection against future wars. Approximately $11 billion is ap- propriated annually as interest on our national debt coupled with Veterans' Administration cost incurred by past wars. MEDICAL CARE The much needed legislation known as medicare which includes hospitalization, nursing, and medical costs for the aged was killed in the Senate by the same political coalition which defeated the ed- ucation program. Millions of our pioneer citizens throughout the Nation are living on so- cial security checks or small income and are barred from receiving proper and needed medical care unless legislation is enacted to relieve this deplorable sit- uation.In 90 percent of the States the Kerr-Mills bill is not functioning, and in the remaining States, it is a replica of the ancient poorhouse operation. Legislation for medical care for the aged will be a No. 1 campaign issue, and I am satisfied that when the people speak from the ballot boxes we will next session, enact a suitable medical care program for our pioneer citizens. URBAN AFFAIRS The President recommended legisla- tion to create a Department for Urban Affairs which was defeated by the coali- tion. Almost two-thirds of our popu- lation now reside in cities and towns throughout the Nation. Legislative ap- portionment of 50 years ago still exists in most States and especially in Indiana. I hope the next Congress and State leg- islators enact legislation giving our met- ropolitan areas fair representation in the legislative halls of our States and Nation. CIVIL RIGHTS This Congress passed the first Federal legislation in history completely outlaw- ing poll tax laws. Poll tax laws still remain in five States. Legislation mak- ing the sixth grade a test for proof of literacy for voting qualification, was defeated by filibuster in the other body. EXPOSE COMMUNISM WITH TRUTH For the last dozen years, I have con- sistently fought for an education pro- gram which would send qualified edu- cated experts to South America, Africa, and other nations to tell the uninformed the real truth on how the Soviets en- slaved Poland, Hungary, Rumania, Slo- vakia, the Balkans, and other nations, through infiltration, force, slave labor camps, and mass executions. I have constantly fought to get action on a number of pending resolutions to inves- tigate the Soviet takeover and contin- ued enslavement of captive nations. The Communist tyrants one great fear Is to have millions in neutral and new governments learn the true facts con- cerning Communist methods in taking over and enslaving small nations. CUBA Mr. Speaker, I now wish to insert in the RECORD my remarks to the Congress October 5 In opening the debate on the Cuban resolution on September 26, 1962: When Castro's regime came into power in January 1959, the Eisenhower administra- tion looked upon it with sympathy and welcome its promises of political freedom and social justice for the Cuban people. Even before Castro came to power, he and his followers were engaged in anti-Ameri- can activities in their underground war against the then-established Cuban Gov- ernment. Castro's brother who some stated was a card-carrying avowed Communist was the real power in Cuba. Back in 1960, Cuba established close' political, economic, and military relation- ships with the Chinese-Soviet bloc and con- tinued violent measures and verbal attacks against the United States, On June 11, 1959, when it was apparent that the Castro gov- ernment was Communist controlled, our Government expressed sympathy with agrar- ian reform and raised no remonstrance against the Cuban Communist government confiscating American property. During the month of October 1959, Cas- tro government officials seized land, capital, equipment, and timber belonging to U.S. citizens. On January 26, 1959, President Eisenhower reaffirmed the adherence of the United States to the policy of nonintervention in the do- mestic affairs of other countries, including Cuba. In so doing, he stated that we recog- nize the right of the Cuban Government and her people to undertake social, economic, and political reforms. This statement was made by the former administration when almost a year after, the Castro Communist government was well-entrenched in our neighboring land. During 1960, Cuba signed trade and eco- nomic pact agreements with the Soviet Union and most of the Communist satellite nations, including China. On March 19, 1960, the first shipment of Soviet crude oil arrived in Cuba on the Soviet tanker Vishinalcy. In 1960 Cuba committed offenses against our Nation by confiscating U.S. property; at- tacks on U.S. sugar plantations; air incur- sions and LaCoubre and Pocher incidents. On June 10, 1960, the Cubans seized four U.S.-owned hotels in Havana. On June 29, they seized the Texaco-Esso refineries. On July 21, 1960 Castro stated in Moscow that Cuba "is grateful for the political and moral- support from the Soviet Union." I merely mentioned these facts because already in Indiana certain politicians and a candidate for U.S. Senator would have the people believe that all our troubles started with the Cuban Communist Government since January 1961. Some Republican poli- ticians say that armed intervention and tak- ing over Cuba are necessary now. Why were they so quiet several years back before the Soviet military buildup became entrenched within 90 miles of our shores. Mr. Speaker, all American citizens should realize that we are living in a scientific and space travel age. The same yardstick of solving international problems of 25 and 50 years ago cannot apply today. All Americans should devote extra time and study on details and facts concerning domestic and international problems. Your Congressman and other elected of- ficials' merely reflect the opinions of the majority back home. It is your opinions that will guide the destiny of our Nation and the free world for future generations. ACTION WITH RESPE The SPEAKER pro temiJore. Under previous order of the House, the gentle- man from Kansas [Mr. ELLSWORTH) is recognized for 10 minutes. Approved For Release 2004/06/23 : CIA-RDP65600383R000200230019-7 Approved For Release 2004/06/23 : CIA-RDP651300383R000200230019-7 1962 CONGRESSIONAL RECORD ? HOUSE time. In the 83d Congress, Mrs. CHURCH sponsored and pushed to successful enactment H.R, 116?Patair Law 385_..a national law bearing her name, pro- hibiting bootleg fireworks, which pre- sented such a grave menace to children. In the 84th and 85th Congresses, she took the lead in introducing legislation to implement the new plans for re- organization, for efficiency and economy in government, proposed by the Second Hoover. Commission. She worked ex- tremely hard on this and proved to be most valuable in these plans. In the 85th Congress, Mrs. CHURCH was highly instrumental in the successful House passage of H.R. 8002, a bill to place the budgeting system of the Federal Gov- ernment on an accrued annual expendi- tures basis, which incorporated the pro- visions of H.R. 3961, introduced by Mrs. CHURCH early in the session. She has constantly fought for economy in gov- ernment. She sought to put Govern- ment operations on the same footing of efficiency and donomy that she felt pre- vailed in private industry. ' She has, over the years, taken an active part in many civic and welfare organiza- tions, including the Family Welfare As- sociation of Evanston. the Illinois Children's Home and Aid Society, the Infant Welfare Society, et cetera. She also served as president of the Congres- sional Club in Washington, and as presi- dent of the National Alumnae Associa- tion of Wellesley College. She is a member of the League of Women Voters, the Business and Professional Womens Clubs of America, the American Associa- tion of University Women, Phi Beta Kappa Associates, Zonta International. Delta Kappa Gamma, Illinois Women's Press Association, et cetera, and is an international honorary member of Beta Sigma Phi and other organizations. She is also a member of the Woman's Ad- visory Committee of the National Safety Council, the National Advisory Council of the Girl Scouts of the United States of America, and the Woman's Board of the University of Chicago. In August 1960, the gentlewoman from Illinois [Mrs. CHURCH] was honored with a merit award for service in behalf of economic and political freedom, from the Civic Affairs Associates, Inc., and also, that year, was recipient of the VIP Award of the Illinois Club for Catholic Women, and in 1962, of the Founders' Day Award of Loyola University of Chicago. This, Mr. Speaker, is the story of a lifetime in which every minute was put to some use for people, for her neighbors. for her fellow women, for her fellow citizens, for her district, her State, her country, and for her college and its alumnae. yet ahead that I know 'ill do, and I and all of us th and opportunity. She life so that all of us in this a very special benefit from e charm, the dignity?in- tige?she has, by her work duct, bestowed upon it. She for international peace. The her personality, through her ds of miles of travel, has 182-6 been felt in the Middle East, and the Far East, in Asia and in Africa, and of course on this continent. She gave the image of the United States the impres- sive and enlightened aspects of a portrait that wins us respect, admiration, even love in the far corners of the earth. Recently. I had a part, along with others, in forming for the first time, a U.S. Capitol Historical Society. It is significant and of interest to note that Mrs. CHURCH was one of those who cooperated, encouraged, and helped im- measurably to bring about the realiza- tion of this organization. Her eloquence, her deep feeling, her understanding Is revealed in the fact that she had a major part in writing the statement of purpose and objectives of the organization and her attention to detail and development of the constitu- tion and bylaws was of great help. She was very helpful with suggestions at every meeting and attended every meet- ing that had to do with the initial and final planning of the organization. Nowhere, I like to think, is she more appreciated than she is right here in this Chamber among her colleagues who have been so close to her work. I bow in homage and admiration, in affection and tribute, to MARGUERITE STITT CHURCH, for 12 years a Member of this House. REPORT ON .tHh 1962 SESSION OF THE CONGRESS The SPEAKER pro tempore (Mr. AL- BERT), Under previous order of the House, the gentleman from Indiana IMr. MADDEN] is recognized for 20 minutes. (Mr. MADDEN asked and was given permission to revise and extend his re- marks.) Mr. MADDEN. Mr. Speaker, during my service in Congress, I have endeav- ored to give the citizens of Lake County a true and factual review of our ac- complishments and omissions after each session. This will be a brief report on some of the more important Issues con- sidered in the 1962 session now close to adjournment. COMMUNISM EXPANSION NO. 1 PROBLEM The dark cloud of international com- munism covers the horizon of all free nations throughout the globe. As your Representative under four Presidents: Roosevelt, Truman, Eisenhower. and Kennedy. I have made every effort to support the Commander-in-Chief on all foreign policy programs which each ad- ministration has recommended for the best interest of our Nation and the free world, Presidents Truman and Eisenhower have publicly stated that the Executive Department possesses all information and confidential knowledge on condi- tions over the globe and their decisions on International matters are often based on facts not known to the general pub- lic. World conditions today demand that the American people must be united and all differences on international problems should stop at the oceans' shoreline. The braintrust behind Stalin and his successor Khrushchev is the most dim- 21245 gerous and intelligent crowd of superbly organized criminal conspirators to threaten mankind in all world history. The free world has failed to realize the magnitude of their organized success to- ward global enslavement. EDUCATION, COMMUNIST GREATEST WEAPON For 30 years the Soviets' greatest proj- ect has been the wholesale education of selected youths to become scientists, lan- guage experts, technicians, teachers, and skilled workers in all crafts. These graduates have been sent to other lands for infiltration and the spreading of Communist propaganda. The Soviets are now reaping benefits of this educa- tional program in Asia, South America, Africa, Cuba, and other neutral or re- cently established governments. News reports from Cuba in 1961 re- ported the graduation of large classes from two universities where the speaker at each ceremony was a Soviet professor from Moscow. I mention this because in the last 12 years our Congress has on several occasions, by close votes, defeated legislation which would have expanded our critical deficient educational facili- ties. General Hershey's Selective Serv- ice Department reveals that in World War II in 10 States 28 percent to 33 per- cent of draftees were rejected on ac- count of illiteracy. One State had 33 out of every 100 boys whose mental IQ's prevented them from serving their country in wartime. Montana was the banner State with but 13/4 percent re- jections. I am proud to report that I have sup- ported all legislation for educational ex- pansion: scientific, medical, elementary, and for much-needed school construc- tion. Most citizens in my congressional district know that these programs on educational expansion have been de- feated by the coalition of Republican leaders aided by a large percentage of Southern Democrats. Powerful special interests lobbies defeated Federal legis- lation which would give millions of American youth greater opportunities to meet the problems of this scientific space age. In Indiana these interests sub- stituted special State laws for school construction which today have taxpayers burdened with high interest rates and 30-and 40-year bonds. In my congres- sional district, school construction can- not keep pace with the yearly increase of student applications. In this session a bill for Federal help to aid students in the higher education bracket has been pigeonholed by the same above-named political coalition. This bill would aid public and private schools and help us compete more easily with the Soviet aggression and propa- ganda program throughout the free world. UNEMPLOYMENT PROBLEM Regardless of political speeches mis- representing the legislative record, this Congress has made remarkable progress in carrying out the much-needed New Frontier program of President Kennedy. Automation and the entrance of a mil- lion young job applicants every year have made unemployment the number one domestic problem, facing our Nation. A Approved For Release 2004/06/23 : CIA-RDP65600383R000200230019-7 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230019-7 1962 CONGRESSIONAL RECORD ? HOUSE 21267 Mr. ELLSWORTH. Mr. Speaker, the administration's handling of the situa- tion in Cuba remains ineffective and without form or substance. Along with many others, I have long urged the adop- tion of a positive, decisive policy of ac- tion with respect to Cuba. In May of 1961, in my weekly question- and-answer column in the newspapers of my district, I urged a course of action that would enforce the Monroe Doctrine. In June of 1961, in 11ly weekly columns, I opposed the paying of ransom to Castro for the Cubans he had kidnapped, and denounced the involvement of the ad- ministration in the deal. In January of this year I stated pub- licly that Communist Cuba posed a viru- lent threat to us and to our hemisphere, and deplored the confusion, lack of coor- dination, and lack of purpose on the part of national leaders in Washington which resulted in there being, in effect, no national policy at all toward Cuba. At that time I reviewed the entire Cuban situation and pointed out that Castro was 100-percent Communist, devoted to the overthrow and destruction of the United State's and all Western civiliza- tion. I concluded by urging a policy looking toward the overthrow of the Castro re- gime in Cuba. In a speech here in the House of Rep- resentatives, on May 9 of this year, I stated we had lost an opportunity in Cuba and that all Latin America was paying for that loss. I joined with three other first-term Republican colleagues from across the Nation in sharp criti- cism of the administration's handling of the Cuban fiasco of April 1961, and urged a shift from a policy of surveil- lance, to a policy of positive, creative decisiveness. And just last week, on September 25, in debate on the Cuban resolution, I made it clear in my support of the reso- lution that the tine for decision is now. Actually, Mr. Speaker, there are a number of alternatives available to the administration for dealing with the situ- ation in Soviet Cuba. For one, the administration could go ahead and let the Soviet arms build-up proceed, saying?as they have?that the weapons, manpower, and Communist missile and naval bases are merely de- fensive in nature, but that if it turns out otherwise we will do something. That is a little like saying there is no real trouble but we will take action in case it doesn't come to a stop. This kind of a so-called policy will be interpreted throughout the world as a sign of weakness and irresolution. Added on top of the Bay of Pigs fiasco and the building of the Berlin wall, it can only reinforce the feeling that a vein of indecisiveness is embedded in the present administration. Let us hope this is not true. Another kind of policy would be a mili- tary invasion by the U.S. armed forces. This would be as profitless to the United States as it would be dangerous to the stability of Latin America and Berlin. A third alternative would be to pro- vide material support and encouragement to free Cubans both within and outside Cuba, so that the Castro regime could be overthrown by those Cubans who have the most at stake. Our Government could take the lead, for example, in getting all the friendly governments of this hemisphere to ex- press their readiness to come to the im- mediate aid of any uprising that takes place in Cuba against the Soviet regime there. Surely those nations of the West- ern Hemisphere who are benefiting so greatly from partnership in the Alliance for Progress would be eager to join in a partnership for the rebirth of a free Cuba. In any case, surely the time for leader- ship, decisiveness, and effective action on the part of this administration, is now. Luis Aguilar Leon, a Cuban, put it rather well when he wrote recently: Of all the lessons Fidel Castro has taught us, the bitterest and most obvious is this: He who proclaims himself a Communist can count on help from the Soviet Union even through he is 9,000 miles away from its bor- ders, while he who proclaims himself a democrat can fight and die 90 miles from the shores of the United States and no one will come to his aid. Mr. Speaker, this is true; and we in North America are deeply disappointed and profoundly frustrated with the quality of leadership in our own admin- istration that has made it so. The time for effective action is now. FRIENDLY RELATIONS BETWEEN PORTUGAL AND THE UNITED STATES?A VICTORY FOR FREE- DOM The SPEAKER pro tempore. Under previous order of the House, the gentle- man from Massachusetts [Mr. O'NEILL] is recognized for 60 minutes. (Mr. O'NEILL asked and was given permission to revise and extend his remarks.) GENERAL LEAVE TO EXTEND Mr. O'NEILL. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to extend their remarks following my re- marks on the subject on which I am about to address the House. The SPEAKER pro tempore. With- out objection, it is so ordered. There was no objection. Mr. O'NEILL. Mr. Speaker, the dis- trict I represent in Massachusetts is one of the most cosmopolitan areas in the world. We have people of 50 different ethnic groups who are represented in an area of about 10 square miles, all living together in peace and harmony. Among this group I have gotten to know very, very well are people of Ameri- can-Portuguese extraction. They are proud Americans, proud of their heritage in Portugal, but immensely proud that they are U.S. citizens. Naturally they have nostalgic memo- ries when they think of the land of their birth or the land of their ancestors, and it has been with pride through the years that they have always considered the great feeling that has existed between the United States and the Government of Portugal. The feeling between the two countries has been one of mutual affection, mutual love, an inextricably interwoven and intertwined feeling that we have always been on the same side regardless of what conflict may have occurred through the years. But during the past year there has been somewhat of a break in the rela- tionship between the United States and Portugal, and it has been over her colonies in Africa and because of the policy that we have followed at the United Nations. I personally believe that the policy we have followed has been a wrong one. I have talked with the people of Portuguese extraction in my area. They are greatly upset by the policy we have followed. Consequently I have made a study of the situation. I am convinced that the situation calls for better relations between the United States and Portugal and that the rift be- tween these two allies will be and should be mended. The controversy and ill feeling between the two originated over anticolonialism. The United States, consistently and vig- orously has opposed colonialism. Our policy is responsible for the rapid with- drawal of European rule in many Afri- can and Asian areas. The creation of many new nations has followed. Portugal holds extensive areas in Africa, notably the huge province of An- gola in West Africa and Mozambique on the east coast. Last year, the United States sided with the Afro-Asian na- tions, and incidentally, the Soviet Union, in resolutions aimed at Portuguese rule in Angola and Mozambique. The United States voted for inquiries into the situa- tion in these provinces and also voted to condemn the Portuguese for repres- sive measures in opposing an outbreak in Angola last March. During this up- rising, or invasion as the Portuguese claim, the dissidents were guilty of hor- rible atrocities. The Portuguese feel that this country voted to condemn them for defending themselves against Outlaws and terrorists. Since last March a good many events have taken place. The example of the Belgian Congo indicates that freedom for a former colony is by no means the solution of that colony's difficulties. In fact, events in the Congo have convinced many persons that independence should not be given to a colony under circum- stances and conditions which finds it un- able to govern itself. The developments in the Belgian Congo are familiar to most of you. The termination of Belgian rule, for which many Belgians blame us, was followed by disorders which resulted in a mass exodus of the whites. The politicians in the Congo began a struggle for power Which still continues. We have taken part in that struggle and so has the United Nations. In fact, as you know, United Nations troops have attacked the forces of Moise Tshombe, leader in the Katanga Province of the Belgian Congo. We also heartily disapprove of Mr. Tshombe, for reasons which are compli- cated and need not be detailed here. In any event, the U.N. venture has created a huge deficit in that organization's budget. Approved For Release 2004/06/23 : CIA-RDP65600383R000200230019-7 Approved For Release 2004/06/23 : CIA-RDP651Ei00383R000200230019-7 21268 CONGRESSIONAL RECQRD - HOUSE ? I =1 citing the Congo situation to emphasize the fact that premature in- dependence for a colony may be the worst thing which could happen to the people in the area. The Congo is in much worse shape now than it was before the Belgians withdrew. Cyrille Adoula. the Congo leader outside Kistariga, has submitted a budget which shows a deficit of $222 million for 1962, and the actual deficit may be much higher. Industry and agriculture are deteriorating rapidly In the Congo; lawlessness and unemploy- ment have risen rapidly and the conflict between rival politicians certainly does not help. The Portuguese claim that Angola and Mozambique are integral parts of Por- tugal, just as we regard Hawaii and Alaska as integral parts of this country. I do not intend to discuss this matter today but I would like to point out that, admittedly, Angola and Mozambique are not ready for self-government. If Por- tuguese rule were to end tomorrow, the Congo would be repeated all over again. Already, the groups which are fighting the Portuguese in Angola have fallen out among themselves. One faction is led by a man called Holden Roberto, who has been widely quoted as admitting he or- dered the slaying of Portuguese women and children during the fighting in An- gola last March. Another faction is led by Mario de Adrade, who is reported to have close Communist ties. There are still other factions. In Angola, there are approximately 4 minion natives, almost all Negroes, and about 500,000 whites, mulattoes and Negroes ivho regard themselves as Portuguese. Portugal has an en,- lightened multiracial policy. Inter- marriage between the races is fairly com- mon in Angola and Mozambique. Many Negroes and mulattoes hold high posi- tions. The racial feeling, which is such a barrier to progress elsewhere in Africa, Is absent in Angola and Mozambique. These 500,000 constitute the upper Classes. Most of the natives are Primi- tive and, in fact, most of them maintain the tribesmen status they had when the whites first invaded Africa. As I have said, everyone familiar with Angola and with Mozambique admits that these areas would deteriorate rapidly if the Portuguese should be forced out. The enemies of the Portuguese say the backwardness of the masses is the fault of the Portuguese, this is debatable. I do not doubt that Portuguese rule has left a good deal to be desired. Few gov- ernments are perfect and, unfortunately, exploitation of backward people has been a familiar pattern throughout human history. But. the Portuguese are aware of their faults. After the fighting in Angola last year, the Portuguese Gov- ernment instituted sweeping reforms, expanding greatly the privileges of suf- frage, and local autonomy. The pro- grams for educational and material development were accelerated. Amaz- ingly enough, Angola progressed rapidly In 1961, despite the fighting in the north- ern part of the country. A pamphlet Issued by the U.S. Department of Commerce "Economic Developments In Angola in 1961," states that many records were established. The report states: Industry was largely unaffected by the political situation. Production increased and some aignificant new Industries were Inaugurated or reached the plant construc- tion stage. One of the aims of the terrorists under Roberto was to prevent the harvesting of the coffee crop, coffee being one of Angola's principal export commodities. But for the fifth year in a row, record crop was harvested. In contrast to most of the new Afri- can states, both Angola and Mozambique are making rapid material progress. The political situation in Mozambique has remained stable and, after the first flurry, the Portuguese regained control of most of northern Angola. Apparently, only pockets of terrorist resistance are left. This seems to substantiate the Por- tuguese claim that the so-called rebels have little support inside Angola, itself. Even in the name of anticolonialism, it would seem unwise to throw Angola and Mozambique into chaos at this time. The real question, of course, is whether the people of Angola and Mozambique are to have anything to say about their political and economic destinies. If Por- tugal insists that Angola and Mozam- bique are to remain Portuguese, regard- less of the attitude of the majority in both countries, the differences between this country and Portugal may be hard to compose. For this country is firmly committed to an anticolonial policy and seems likely to adhere to this principle. But the Portuguese are reasonable and flexible on this matter. In an interview given to Life magazine in May 1961, Pre- mier Seleeer of Portugal said he was not opposed to independence for Angola and Mozambique, but only to independence granted too hastily and, in response to force from the outside. He said: The fact of a territory proclaiming its In- dependence Is a natural phenomenon In hu- man society and, therefore. It is a hypothesis that is always admissible. But indeed no one can or ought to set a time limit for it. What Is being subjected to time tables Is the in- conceivable politics of our time, which claims that states should set a time limit to destroy their unity and break up. The Portuguese Ambassador to the United States, the Honorable Pedro The- otonio Pereira, stated the policy of his Government with regard to independ- ence for Angola and Mozambique in an excellent speech before the Common- wealth Club of San Francisco last March. He said: I would like to remind you that we have never said that we oppose self-determina- tion. We regard our great provinces of Africa as an integral part of Portugal, just as the United States regards Alaska and Hawaii as Integral parts of the United States. We hope to develop these provinces, to raise the standard of living, and to use their rich resources in the 1i:iterate of an, We are, however, determined that self-determination must be a process of political evolution from within and must rest In the hands of the people concerned and not with outside ter- rorists and agitators. What we bitterly resent and win oppose with all our strength is for outside violence to tear these provinces away from Portugal. What we protest Is the cynicism which uses the cry of anticolonialism and the disguise of a nationalist movement to further racism and communism. We have fought the in- vaders and the murders, and we will con- tinue to fight them. If we lose. it is not our loss alone. All the West will lose with us. It seems then to me that the Portu- guese attitude is a sensible one and one which can be accepted by our own Gov- ernment and by all fair-minded men. I need not remind you that Portugal has been an ally for a long time and that the country is a member of NATO, our prin- cipal defense against the Communists. Under Premier Salazar, Portugal has been stanchly anti-Communist. The Soviet Union has gone along enthusi- astically at the U.N. with the resolutions aimed at Portugal. If we continue pres- sure against the Portuguese Govern- ment, it could fall and we could find ourselves confronted with a government along the lines of the Castro regime in Cuba. Moreover, Portugal since 1943 has given us invaluable air bases in the Azores. These bases were turned over to us, free of charge, at a time when World War II was in doubt. They were invaluable then; they are invaluable now. The lease is up for renewal in 1962 and negotiations with regard to it now are going on. Understandably, the Portuguese are upset over our attitude toward them and are reluctant to renew the Azores lease if we continue to be hostile on the Angola and Mozambique questions. It would seem in the interests of all concerned for Portugal to continue its work of developing Angola and Mozam- bique. Portugal has received little in the way of foreign aid from us since World War II, the total, aside from military aid under NATO. being less than $100 million. Premier Salazar did not ask for Marshall plan aid, stating that other countries needed it more than his coun- try. If the aid is needed now to develop the provinces, some program should be worked out. There is another reason for a better understanding between the United States and Portugal at this time. Many persons are concerned with the race feel- ing which is so manifest in Africa today. If the continent is to make . any real progress, this progress must come from cooperation between the whites and other races, including the predominant Negro race. Otherwise, there will be chaos and deterioration, as is evident in many of the new states. The only way the Communists can take over will be through chaos which will necessitate order, if it even means a Communist dictatorship. The Portuguese have an excellent record on the race question. Long ago, they dismissed skin color as a basis for exploitation and discrimination. If Angola and Mozambique develop as they should, they can furnish an example to the rest of the continent, an example which will be in the interests of Portugal, the United States, and the entire Western World. I am hopeful then that the negotia- tions between the United States and Approved For Release 2004/06/23 : CIA-RDP65B00383R0002002300194 Approved For Release 2004/0Q/23 : CIA-RDP551300383R000200230019-7 1962 - CONGRESSIONAL RECORD ? SENATE 21315 Thus the low-income white population would also benefit and a more equal income dis- tribution among whites would result. Finally, the community responsibilities of taxpaying and of military service could be more equitably shared among all the citizens of the Nation. The essential characteristic of such gains is that they are related to al- location and distribution problems rather than to output considerations. But by im- proving allocation and distribution they do increase the total welfare of the society While they cannot be added to the GNP gain measured above, they are significant and should not be ignored. APPENDIX ON DERIVATION OF ESTIMATES The key figures in the foregoing memo are the percentages by which wages and salaries are assumed to rise in the two cases of (a) no change in education, and (b) a change in education. For (a) the following method was used, based on 1949 data for individuals. (The 1959 data will not be available for several months, and only decennial census data give the necessary breakdown of income by edu- cational level by age and sex by color.) For each age-sex group the income of nonwhites was changed to the income of whites hav- ing identical education. These changes amounted to a 3.1-percent rise in total money Income, This 3.1-percent figure was applied to wages and salaries. Since wages and salaries are 68 percent of GNP, this would mean a 1.8-percent gain in GNP. This esti- mate was raised to 2.5 percent for the rea- sons given in the text. For (b) the following method was used, based on 1960 data for families and unat- tached individuals. Total money income per consumer unit for first, nonwhite families, and second, nonwhite unattached individ- uals, was assumed to change to equal that of the appropriate white groups. Then wages and salaries were assumed to rise by the - same percentage that total money income rose; namely, 4.0 percent. Since wages and salaries are 58 percent of GNP, the rise in GNP is 2.3. The final GNP increase was esti- mated to be perhaps 1-percent higher, or 3.2 percent, because of the additional gains, discussed earlier, due to increasing capital and entrepreneurial income. The income data required for this study are available in terms of the standard cen- sus classification, "white," "nonwhite." The nonwhite classification includes, in addition to Negroes, American Indians, Japanese, Chi- nese, and others. The Census Bureau esti- mates that, of the 20.5 million persons in the nonwhite category in the 1960 census, 18.9 million persons (or 92 percent) were Negroes. DESIGNATION OF CERTAIN CAR- RIERS AS CARRIERS OF BONDED MERCHANDISE The PRESIDING OFFICER (Mr. BURDICK in the chair) laid before the Senate a message from the House of Representatives announcing its disagree- ment to the amendments of the Senate to the bill (H.R. 5700) to amend the Tariff Act of 1930 to permit the desig- nation of certain carriers as carriers of bonded merchandise, and requesting a conference with the Senate on the dis- agreeing voles of the two Houses there- on. Mr. BYRD of Virginia. I move that the Senate insist upon its amendments and agree to the request of the House for a conference, and that the Chair appoint the conferees on the Part of the Senate. The motion was agreed to; and the Presiding Officer appointed Mr. BYRD of Virginia, Mr. KERR, Mr. LONG of Louisi- ana, Mr. WILLIAMS of Delaware, and Mr. Cusris conferees on the part of the Senate. AMENDMENT OF INTERNAL REVE- NUE CODE OF 1954 RELATIVE TO CERTAIN MANUFACTURERS EX- CISE TAXES The PRESIDING OFFICER (Mr. BURDicit in the chair) laid before the Senate a message from the House of Representatives announcing its dis- agreement to the amendments of the Senate to the bill (H.R. 8952) to amend the Internal Revenue Code of 1954 with respect to the conditions under which the special constructive sale price rule is to apply for purposes of certain manufac- turers excise taxes, and requesting a conference with the Senate on the dis- agreeing votes of the two Houses there- on. Mr. BYRD of Virginia. I move that the Senate insist upon its amendments and agree to the request of the House for a conference, and that the Chair ap- point the conferees on the part of the Senate. The motion was agreed to; and the Presiding Officer appointed Mr. BYRD of Virginia, Mr. KERR, Mr. LONG of Louisi- ana, Mr. WILLIAMS of Delaware, and Mr. Cola's conferees on the part of the Senate. INCOME TAX TREATMENT OF TER- MINAL RAILROAD CORPORATIONS AND THEIR SHAREHOLDERS The PRESIDING OFFICER (Mr. BUR- Dim< in the chair) laid before the Senate a message from the House of Represent- atives announcing its disagreement to the amendment of the Senate to the bill (H.R. 12599) relating to the income tax treatment of terminal railroad corpora- tions and their shareholders and re- questing a conference with the Senate on the disagreeing votes of the two Houses thereon. Mr. BYRD of Virginia. I move that the Senate insist upon its amendment and agree to the request of the House for a conference, and that the Chair appoint the conferees on the part of the Senate. The motion was agreed to; and the Presiding Officer appointed Mr. BYRD of Virginia, Mr. KERR, Mr. Loris of Louisi- ana, Mr. WILLIAMS of Delaware, and Mr. CURTIS conferees on the part of the Senate. tSTATr DEPARTMENT DESERVES HIGH COMMENDATIONS FOR BLOW TO CUBAN TRADE Mr. PROXMIRE. Mr. President, I congratulate Secretary of State Rusk and the State Department on their in- genious action in planning to put into effect 2 weeks from now a program which will put real pressure upon our allies and other countries to stop trad- ing with Cuba. This action comes at an appropriate time. The Senate has just watered down its proposal in the appropriation bill that came from the House which would have, outright, pre- vented aid to countries whose ships sup- plied Cuba with goods, munitions, and the like. The proposed action on the part of the administration will be much stronger and much more effective. It is a 4-point program. This is what the program will do: First, it will threaten any foreign ship- owner with the loss of all cargo owned or financed by the U.S. Government if one of his vessels engages in the Soviet- bloc Cuban trade. Second, the United States will close its ports to all shipowners of a country if any vessel under the flag of that country carries military goods or equipment to Cuba. Such pressure was provided in the House language of the appropriation bill; but it was an academic provision, be- cause the administration's intelligence reports disclosed that only Soviet ships have been carrying supplies to Cuba, and that for years no Soviet vessel has docked at a U.S. port. Third, the program will also ban from U.S. harbors any ship which, on the same continuous voyage, has delivered non- military Communist cargoes to Cuba. This will be a very effective embargo provision. Finally, the Presidential order forbids U.S.-flag ships or U.S.-owned ships to carry goods to or from Cuba. Without taking warlike action, the Secretary of State has accomplished a real diplomatic coup, and his very ef- fective action deserves high commenda- tion. I ask unanimous consent to have printed at this point in the RECORD an article entitled "Reprisals for Cuba Trade Tougher Than Expected," written by Ted Szulc, and published in the New York Times of October 5, 1962. There being no objection, the article was ordered to be printed in the RECORD, as follows: REPRISALS FOR CUBA TRADE TOUGHER THAN EXPECTED (By Tad Szulc) WASHINGTON, October 4.?The administra- tion's plan to penalize all shipowners who transport Soviet-bloc supplies to Cuba is tougher than was at first expected. Officials disclosed today that the plan, in the form of a four-point program, would be set in motion in 2 weeks. The program will threaten any foreign shipowner with the loss of all cargo owned or financed by the U.S. Government if one Of his vessels engages in the Soviet-bloc Cuba trade. Under another provision, the United States will close its ports to all the ships of a country if any vessel under the flag of that country carries military equipment to Cuba. It will also ban from its harbors any ship that on the same continuous voyage has delivered nonmilitary Communist car- goes to the Cubans. COMPLETE BAN ON U.S. SHIPS Finally, the Presidential order, forbid U.S.-flag ships or U.S.-owned ships to carry goods to or from Cuba. As another part of its plan to put pressure on Cuba, the United States prepared to seek Approved For Release 2004/06/23 : CIA-RDP65600383R000200230019-7 For Releatecmgagem n nest week in the Council of the Or- Ionization. of American States. The Latin- American Countries will be asked to carry out autisubversive measures discussed in last night's communique from the hemisphere's foreign ministers. U.S. diplomats, who are pleased with the ?Wits of the informal 2-day ministerial conference here, expect to open consultations immediately on steps against Communist and Cuban subversion. The ministers agreed yesterday that it was urgent to study "the transfer of funds to the other American Republics for subversive purposes, the flow of subversive propaganda Sx4 the, utilization of Cuba as a base for Vitiring in subversive techniques." STIIrD2 ar sescraz. Gawp It was expected that the Council would instruct the special consultative committee on security, created in January by the Amer- inert foreign ministers' conference at Punta del Este, Vriiguay. to start the studies and present recommendations. The United States as, well as many Latin- American governments believe that one of the principal dangers presented by Cuba is training in subversion?offered to thousands of visiting Latin American youths?the ex- port of revolutionary propaganda and the transfer of Cuban and Communist funds. to revolutionary groups in other countries. Perhaps the most difficult job facing the eomMittie will be finding a way to prevent travel to alLINI. Many governments believe It may be politically impossible for them to forbid students to accept "scholarships" offered by the Havana regime, even though they lead to subversive training. In general, U.S. officials believe that the tenor of the communique?which said the Chinese-Soviet "Intervention in Cuba" was the hemisphere's most urgent problem?represented another step in Wash- ington's long campaign to persuade the Latin Americans of the seriousness of the Cuban problem. The ministerial statement said that Soviet intervention in Cuba required individual and collective action in the economic field. such as extending to other items the sus- pension of trade in strategic goods. PROVISION MEDI= A provision that the United States was par- ticularly eager to insert in the communique trap inadvertently dropped from the text of the document when it was distributed by the State Department last midnight. wala call upon "all other independent COUlltrrea7 to refrain from making ships available for the trade between the Soviet bloc and Cuba, ,Today, the Department Is- sued a corrected test, Many Latin American diplomats believe that the %S. SUCCORS in obtaining what ataminted to a condemnation of the Soviet- Cuban alliance and in paving of the way for further measures was due largely to personal effort by Secretary of State Dean Rusk. Some diplomats said that under the Sec- retary's direction, the meeting had gone much further than the ministers had planned when they arrived. Although the bases of the new policy have been settled by the administration, officials Indicated today that many of its details were still to be worked out. It was emphasized that for the time be- ing the restrictions will not apply to ships bringing cargo to Cuba from non-Communist countries. Such routes account for 25 per- cent of Cuba's imports; the rest comes through trade with the Soviet bloc. But the possibility of extending the sanctions was not ruled out. Matt= or am aliNCUD Under the new program, the immediate Impact will be upon allied and neutral ships that carry U.S. Government cargoes to Europe 230019-7 and return to the Western Herpiaphere with 490;Challdiee fta Cba, The Sallie 01 the shipments involved in this trade was not im- mediately known. In this instance, the administration aimed its threat against individual shipowners rather than against all the ships of a nation. In the case of ships bringing Soviet cargo to Cuba and then picking up goods in U.S. ports for a return voyage to Europe, only the Individual vessels would he penalized. The object here is to face the shipowners with the prospect of going back to Europe empty. The provision banning from 17.S. porta all the ships of a national that his allowed one of its vessels to carry military equipment to Cuba may, however, be academic. The administration's intelligence reports indicate that only Soviet ships have been carrying military equipment to Cuba. For years no Soviet vessel baa visited the United States. The only Soviet-bloc country to maintain maritime trade with the United States is Poland and there are no indications that Polish ships have been used to carry military goods to Cuba. Among the many details to be worked out is the definition of military equipment. To- day. officials could not say whether ships carrying tents, army boots, or uniforms would be included in the definition. In another action related to Cuba, Presi- dent Kennedy signed the congressional reso- lution today that authorizes him to use troops if necessary to counter any acts of aggression emanating from Cuba. He also signed the resolution authorizing him to call up 150.000 reservists if needed. Mr. PI:COX/JURE, Mr. Pxesident, the proposed action is in order also because it has just been revealed that the British plan no law to bar trade with Cuba. According to the New York Times, there Is no possibility that legislation will be adopted or will be passed by. Parliament prohibiting British trade with Cuba. I ask unaniraous consent that an arti- cle entitled "British Plan No Law Bar- ring Trade With Cuba but Will help United States Otherwise," published in the New York Times of October 5, 1982. There being no objection, the article was ordered to be printed in the RECORD, as follows: BR/TISH PLAN No LAW BARRLNG TRADE Wrsu CUBA BUT WILL HELP UNITED STATES OTHERWISE (By Seth S. King) LONDON, October 4.?An authoritative source said today that Britain would con- tinue to cooperate with the United States in a search for a formula to reduce the vol- ume of strategic cargoes reaching Cuba in British ships. There is no possibility, however, the source added, that the British Government will introduce legislation forbidding British ships to call at Cuban ports. The British have apparently not ruled out the possibility of placing Cuba on the Co- ordinating Committee's boycott list. It con- sists of countries to which specified strategic Materials may not be shipped by members of the committee. The Coordinating Committee consists of all the North Atlantic Treaty Organization countries except Iceland?the United States, Belgium, Britain, Canada, Denmark, France, West Germany, Greece, Italy, Luxembourg, the Netherlands, Norway, Portugal, and Turkey. Japan is also a menibeIr. n n WOULD REPIUSSZ trurr NE a ?r - Although the Committee's boycott list consists of Soviet-bloc countries and Com- munist China, Cuba Is not on the hat Octobqr The placement of Cuba on the list would indicate an abrupt change in British policy. In the past Britain has often been a pro- ponent of reducing the numbers of goods barred from sale to the Soviet bloc. The U.S. plan to keep ships carrying anus to Cuba from calling at US. ports would not affect British-owned shipping, a Foreign Of- fice source said. For 2 years, Britain has refused export licenses to British arm? manufacturers who intended to sell their products to Cuba. "So far as we know, no British ships are knowingly carrying arms from any other sources to Cuba," a Foreign Office official said. If the United States should bar its ports to ships carrying cargoes other than arms to Cuba, British shipping would definitely be hurt. British shippers ar among the chief carriers of oil to Cuba and sugar from there. British officials do not agree with the con- tention that by refusing to carry nonstrategic cargoes to Cuba, the West would force the Soviet Union to divert its ships to do this. Neither does Britain believe that an em- bargo on all goods and shipping from the West would harm the regime of Premier Fidel Castro. "We think it might actually stabilize his position." a source said, "giving him a source of sympathy from his own people and a rea- son to stir them up further against the West." AGREES ON PRINCIPLE The official said Britain agreed with the idea of preventing communism's spread from Cuba into Latin America. "We share your alarm over this possibility," he said. "But we do not agree on-the means Of combating it. "Britain is a maritime country. We believe in freedom of the seas, and the U.S. proposals cut directly across some of our oldest tra- ditions." The British Government does not have the authority to stop the transportation of non- belligerent cargoes to Cuba by her ships, a Foreign Office source said. Legislation would have to be adopted by Parliament. "There is neither any possibility that the Government will introduce such leg- islation nor that Parliament would pass it," the source said. Shipping is one of this country's largest earners of foreign currency and one of its greatest industries. Nearly 3 percent of Britain's large merchant fleet is now idle, however. CVRBS URGED IN NORWAY OSLO, October 4.?The Norwegian Shipown- ers Association has requested its members not to engage in shipments to Cuba. In a statement Monday, the association said that Norwegian ships had carried only civilian cargoes to Cuba. CANADA PLANS No BAN Orrsws, October 4.?The Government does not plan to forbid Canadian-owned ships to carry cargoes between the Soviet Union and Cuba. the External Affairs Minister, Howard C. Green, said today in the House of Com- mons. Mr. PROXMIRE Mr. President, the New York Times has published today an editorial entitled "The Embargo On Castro," which reads, in part, as follows: The Kennedy administration, refusing to be stampeded by advocates of direct action against Cuba, has now produced a program that might materially reduce the Soviet bloc's military and economic support with- out risking an armed collision or violation of international law. ? ? But the United States long ago adopted the embargo policy; and as long as we main- tain it in respect to our own trade with the Approved For Release 2004/06/23 : CIA-RDF'651400383R000200230019-7 Approved For Release 2004106123: CIA-RDP65800383R00020 230019-7 962 CONGRESSIONAL RECORD ? SENATE :land, there is certainly every reason to try make it as effective as possible by meth- -ds. The present program is in fact an in- -enious way of extending this embargo lirough the control that we exercise over -he use of our own ports and over the ship- ment of goods exported at the cost of the kmerican taxpayer. I think this action is exceptionally praiseworthy. Because trade with Amer- 5.ca, is of far more importance to ship- owners of those countries than is trade with Cuba it will be mighty effective in choking Castro. The coup by the Secre- tary of State deserves our congratula- tions. I am mightily heartened by it. Mr. President, I ask unanimous con- sent to have the entire editorial printed at this point in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: THE EMBARGO ON CASTRO The Kennedy administration, refusing to be stampeded by advocates of direct action against Cuba, has now produced a program that might materially reduce the Soviet bloc's military and economic support without risleing an armed collision or violation of international law. This policy was discussed by Secretary Rusk with the foreign ministers of the Organization of American States at a 2-day meeting in Washington this week, It is fundamentally designed to compel for- sign shipping companies to choose between the permanently lucrative American trade and the quick short-term profits they are earning by carrying Soviet bloc cargoes to Castro. When operative, the program would bar from American ports all the ships of any country any one of whose ships was found transporting weapons and munitions to Cuba. So far as is known, the arms already imported into Cuba have in no case been brought there under the Sag of a non-Com- munist country. But there are many vessels of non-Communist lands that have been carrying other types of supplies to Cuba. When the program goes into effect they will be prohibited from loading American cargoes in American ports for their return voyage. This means that in many cases they would be forced to recross the Atlantic in ballast without any payload. Furthermore, the owners of any foreign ships engaged in the profitable trade of carrying American surplus commodities to countries receiving grants- in-aid or loans will stand to lose their con- tracts if they also trade with Cuba. All U.S.-owned ships, whether flying the Ameri- can flag or sailing under foreign registries, will be prohibited from engaging in the Cuban trade. This program was born of the reluctance of many foreign maritime countries, allies of the United States, to abandon their trade with Cuba. On the ground that neither we nor they are at war with Cuba, they claim their undoubtedly legal right to carry peace- time goods to Cuba as usual. Some make the argument that an embargo is not the way to destroy Castro, and that in fact it can boomerang and even strengthen his grip on the Cuban people. This may be true; there is no guarantee that a cessation of trade with Cuba will have the desired effect on Castro. But the United States long ago adopted the embargo policy; and as long as we maintain it in respect to our own trade with the island, there is certainly every reason to try to make It as effective as possible by peaceable meth- ods. The present program is in fact an Ingenious way of extending this embargo through the control that we exercise over the use of our own ports and over the ship- ment of goods exported at the cost of the American taxpayer. It is another question whether the hoped-for result will be achieved, not to mention the cost in good- will of our maritime allies. There can be no doubt that the trans- formation of Cuba into a Soviet-supported enterprise is a ,danger to this hemisphere, and the Latin American foreign ministers at the Washington meeting clearly acknowl- edged this fact. Although their assessment of the methods to be employed to combat this danger varied, they agreed on this im- portant conclusion; "that now more than ever It is necessary to strengthen the sys- tem of representative democracy and to redouble the efforts being made to bring harmonious progress to the peoples, and the earliest and most effective improvement in their standard of living, within the frame- work of the Alliance for Progress, and with the most complete respect for human rights." This statement recognized the essential pre- requisite in warding off the political dangers emanating from Castro's Cuba. This is really the crux of the problem so far as Latin America is concerned. Mr. SMATHERS. Mr. President, I join with the able Senator from Wiscon- sin in commendation of the Secretary of State and the administration upon the particular move which they have just made. There are two other subjects as to which action should be taken promptly. I shall refer to them in a speech which I shall deliver at 2:30 this afternoon. I hope that the Senator from Wisconsin will be here so that we may exchange views. Mr. PROXMIRE. I thank the Sen- ator from Florida. THE U.S.-U.S.S.R. ENERGY RACE: A SOBER WARNING Mrs. NEUBERGER. Mr. President, on September 28, 1962, I placed in the RECORD portions of an article written by Howard Morgan, Commissioner of the Federal Power Commission, in which he discussed his recent trip to Russia. Today I present for the consideration of the Senate a more detailed report on that trip, in which Mr. Morgan com- ments especially on the technique of the Russians in long-distance power trans- mission. As I read the excellent speech by Mr. Morgan, I could not help recalling that one of our colleagues, the distinguished senior Senator from Louisiana [Mr. ELLENDER3, had made successive trips to the Soviet Union, where he visited powerplants. Upon his return, he warned the Senate?and I considered his remarks as a warning?that the Rus- sians were fast creeping up upon us in their production of hydroelectricity and their development of long-distance transmission. I think we owe a special tribute to the Senator from Louisiana for calling this subject to our atten- tion; and these remarks by Commissionef Morgan again remind us of it. Commissioner Morgan mentions names with which Americans are unfamiliar, names of places which Americans do not know how to pronounce: rivers such as the Yenisei, Angara, and Sungari; Lake Baikal; and cities such as Bratsk, Kuy- byshev, Novosibirsk, and Krasnoyarsk. It is in these cities that the Russians have built huge powerplants and on these 21317 rivers that they have constructed the biggest power dams in the world. They are places which most Americans prob- ably have never heard of. I ask unanimous consent to have printed at this point in the RECORD the outstanding address delivered *by Com- missioner Howard Morgan before the Western States Water and Power Con- sumers Conference at Portland, Oreg., October 2, 1962. There being no objection, the address was ordered to be printed in the RECORD, as follows: Tres U.S.-U.S.S.R. ENERGY RACE: A SOBER WARNING (Extracts from address by Howard Morgan, Commissioner, Federal Power Commission, before the Western States Water and Power Consumers Conference, Portland, Oreg., October 2, 1982) About 3 weeks ago I returned from a 2- week inspection trip through Russia, Siberia, and Sweden, in company with Secretary of the Interior Udall, Chairman Swidler, of the Federal Power Commission, Bonneville Power Administrator Charles F. Luce, Gen. R. G. MacDonnel, of the Corps of Engineers, and a group of highly qualified engineering ex- perts in hydroelectric generation and high voltage transmission. The purpose of the trip was to study those two subjects and, in addition, the operation of large integrated power pools. During the course of the trip, Mr. Khrushchev, in a conversation with Secretary Udall, issued a challenge to the United States to engage in a peaceful energy race with the Soviet Union. The challenge was of course accepted by Mr. Udall, and both the challenge and its acceptance was reported by the press. During the intervening period there has been surprisingly little editorial comment in the United States about this energy race to which we are now committed. Most of the comment I have seen reflects little understanding of the seriousness of such a contest and expresses a comfortable and complacent point of view concerning our prospects. After a careful examination of the com- parative electric power statistics of the two countries I am convinced: that we have al- ready been in an electric energy race with the U.S.S.R. for 15 years, that while we are ahead in that race by a very wide margin, the Russians are gaining on us at an alarm- ing rate, and that the seriousness of the race, together with the possibility that we can eventually lose it, are matters which urgently need informed public discussion in this country. I shall try to make a small con- tribution toward such a discussion in this talk. At the time of the revolution Russia was the most backward European nation in the development of electric power, but the total electrification of Russia was at once made the goal, the center and the heart of the industrialization plans laid down then, over 40 years ago. * * * During the twenties and thirties American engineers and contracting firms, together with American generator and turbine manufacturers, worked with the Russians to develop both hydro and steam generation, as well as high-voltage transmis- sion. Lend-lease assistance helped rebuild war-damaged plants and lines, and even built a few new ones for war production during the forties. Since shortly after World War II the Russians have been self-sufficient, and have carried on an increasingly large and rapid construction program unaided; even developing enough capacity to send skilled engineers, technicians and first-rate electric equipment abroad to newly-develop- ing areas. Today, in the generation of elec- Approved For Release 2004/06/23 : CIA-RDF'65600383R000200230019-7 Approved For Release 2004/06/23 : CIA-RDP65600383R000200230019-7 21318 CONGRESSIONAL RECORD ? SENATE tric power, Resale has outstripped not, only every nation in Europe by very wide margins, but every other nation in the world as well, except for the United States, In 1927, the earliest year for which the ITC has statistics. Russia had 1,905,000 kilo- Platte of Metalled generating capacity. The United States bad passed that figure in 1900. By 1.948 Russia had 12,338.000 kilowatts. The United States had passed that figure exactly 80 years before in 1916. But. by 1981 Russia had 74 million kilowatts, a figure equalled in the United States only 12 years earlier, in 1949. 'The United States is still ahead of Russia by a wide margin, wide enough to give rise to a good deal of self-congratulation in our electric Industry. In 1961 we had nearly 200 rnillinr icilowatta of capacity; the Russians Only 74 million. kilowatts. But a closer look at the Agures is disturbing. ? ? ? In 1932 We had almost 10 times as much capacity ail they; about 43 million compared to 4.875.- 000.. By 1961 this margin had shrunk to less than three Macs. There are two ways to look at, this. Notice that the absolute margin had widened, while the percentage of margin hat* shrunk- " ? By 1961 the United States had reached the leVe,101 about 333percent of its 1948 capacity. Or an increase of 233 percent. In the same period the U.S.S.R. had reached the level of eXaetly 600 percent of its 1946 capacity or an Increase of 1500 percent. Both these rates Of growth are impressive and represent great achievements. but the latter figure represents & rate of growth absolutely unparalleled in szky 15-year period In the history of the United States or. for that matter, in the history of any other important nation in the World, I ? The absolute amounts of our yearly addi- thinia While reassuring, are not as important OA the percentage of existing capacity which 'We?and they?add each year. These per- centages are ominous. a, ? ? ? Mr, Slirushchev knew perfectly well, be- fore he challenged the United States to a rade in the held of electric energy, that our capacity is nearly three times that of Rus- sia, and that the annual additions to U.S. generating capacity are currently greater than those being made in Russia. Does this mea.B. as the complacent executives in our electric induetry would have you believe. that Mr. Xis out of his mind and has stayer- tiled tO the World that the Soviet Union ban entered a race it cannot win? I hope I May be pardoned if I remind you that the world has by now formed an en- tirely different view of that wily old gentle- man. Be is, as we all have reason to know. an exceedingly well informed man; he knows the stakes that are involved in an energy race between the United States and the U.S.S.R.; and as a master politician he knows very well the risks of outlining policies and goals which are beyond the possibility of execution. It will pay us, if for no other reason than to avoid panic later on, to take a careful look at the same figures he has been looking at and try to understand real- istically what he and his system are driving at, What gives rise to the greatest concern among Americans who have studied these figures carefully, and who have gone to Rus- sia for a look around, is the accelerating pace of the construction the Russians have recently built and the even faster accelera- tion of their plans for future construction. Both countries are pu.nning and building on curves which rise more steeply each year, but the Reetnens' curve of actual construc- tion Is rifting faster now than ours was 12 years ago, when we had the same capacity they presently have. What is more impor- tant, they plan to steepen their construc- tion curve more drastically in the years ahead than some people think would be jus- tified in the United States by the demands of our own economy. If this happens, the curves will Inevitably converge, Intersect, and Whether this will happen, of course, de- pends on a complex of economic and per- haps political factors probably beyond the ability of anyone to predict with certainty. But in 1980 a U.S. Senate committee, which toured Russia with engineering staff and studied power matters carefully, reported that "The U.S.S.R. is catching up with the United States in electric power production, the basic field in which supremacy counts heavily in peaceful economic competition or in event of war. ? ? ? The Russians could overtake us In 1975?in 15 years?unless we speed up or they slow down." Whatever we?or they?actually do in the years to come, I can report that they have not the slightest intention of slowing down. ? ? ? ? ? Take comfort in the fact that an far we seem to be ahead of the Russians in design, size and efficiency of steam generating units, which comprise the bulk of both their own and our power systems. One of our manu- facturing concerns is now building a 1.000,000 kilowatt single-unit steam genera- tor, and several 800,000 kilowatt units are in operation, while the Russians are only now building their largest at 300,000 kilowatts. Mile doesn't seem to bother them, though It actually may; it is bard to tell. They claim they would rather standardize at a moderate size and build more of them, which may or many not be the case. This would not maks economic sense in our system but it is sometimes hard to be sure whether the economic factors in their system would pro- duce the same decisions as in ours, even granting that they have the technical capac- ity necessary for free choice. In any case Mr. lihrushcbev, in a recent policy speech, directed his engineers to step up their mas- tery of larger steam units, and on the basis of past experience we can realistically expect that they will proceed to do so. But it is in the hydropower (about 20 to 25 percent of their capacity) and in extra-high- voltage and integrated transmission systems that they have made important advances, and this is what we went to see and learn about. Rumba has several very large rivers that dwarf the Columbia in size and power. On the Volga we saw the dams at Stavropol; 2.3 million kilowatts (compared to 1.9 million kilowatts at Grand Coulee) and VolgOgrad; 2.5 million kilowatts. ? ? I ? ? At Bratsk, 200 miles north on the Angara from its origin at Lake Baikal, we saw what will presently become the world's largest darn at 4.5 to 5 million kilowatts. It is now about two-thirds complete, already has 200 feet of water behind the dam (eventually It vrill have 350 feet or so) and is generating power with 5 of what will eventually be 20 generators. These generators, and the turbines which drive them, are the largest in the world and were especially designed for this dam by L. A. Artemov, an English-speaking engineer now in his sixties who spent several years In America working on lend-lease during the war, has many friends here, and is widely respected in the electrical world. He is in charge of all hydroturbine and generator designs in Russia. Incidentally, as a very young man he built the first hydroplant in Russia, beginning in 1922. We were able to see some of these tur- bines and generators being installed The largest in the United States are at Niagara and have a capacity of 150.000 kilowatts. Those at Bratsk are of 260,000-kilowatt ca- pacity. That means more than 300,000 October 5 horsepower is developed by a single turbine on a single, slow-speed shaft. At Krasno- yarsk, 200 miles west from Bratsk on the Yenisei, is a dam we did not visit because construction is just now getting well un- derway. This dam, when completed, will take the title of "biggest" away from Bratsk. It will generate 6 million-plus kilo- watts. Its equipment, also designed by Mr. Artemov but not yet built, will produce 500.000 kilowatts per generator, or more than 600,000 horsepower per turbine. The shafts necessary to take such power are too big to forge in a single piece, so they are made of slabs of foot-thick steel, which are rolled into partial cylinders, welded lengthwise Into tubes, heated in soaking pits to relieve weld- ing stresses, and then machined to size? something over 8 feet in outside diameter and about 8 feet inside diameter. The de- sign and construction of these shafts is a real engineering achievement by itself. It is planned that both the Angara and the Yenisei, aa well as a number of other Siberian rivers, will be fully developed from headwaters to their mouths on the Arctic In the next several years, some of the dams being larger than those I have mentioned, and some smaller. But the real giant, one planned for construction beginning 10 or 12 years from now, is on the Lena quite near Its delta on the Arctic. Preliminary engi- neering studies, we were told, yield the as- tounding prediction of from 20 to 22 mil- lion kilowatts to be generated by this single dam. It is expected to electrify the entire Pacific coast of Siberia. The secret of getting power from such remote regions to the centers of Industrial production involves the thorny problem of very long-distance transmission without un- economic line loss. So far as I can determine the longest lines in the United States are no more than 225 miles from point of gen- eration to load centers. The distances in- volved in moving Siberian power to load centers are in excess of 1,500 miles. This accounts for the strenuous research and construction the Russians have been doing in the extra-high-voltage field, for in that very difficult technological field lies the an- swer to the problem. The heaviest lines actually constructed in this country are at 345,000 volts (345 kilo- volts) and there are not many of them. The Russians have for some years been operating 500-kilovolt lines as long as 600 miles, from Kulbyshev to Moscow and from Volgograd to Moscow. In addition, a 500-kilovolt line is in operation from Irkutsk to Bratsk, is being extended from Bratsk to Krasnoyarsk. and before that dam is complete will be extended clear across central Asia to the Ural Mountain area. Work is now going on which will eventually boost some or all of these lines to 750 kilovolts and ultimately to 1,000 kilovolts-1 million volts. All this is alternating current. Even more challenging, and holding out the promise of even more economies, is direct current, and here too the Russians have heavy lines?eventually planned for 800 kilo- volts?in operation from Volgograd to the Don River basin industrial area. We saw all this extra-high-voltage research and con- struction, Including the world's largest di- rect current laboratory at Moscow, and found it all very impressive. Finally, we were shown the control center In Moscow where, in a single room, all of the power generated and consumed in European Russia, except for two minor districts which are now being hooked up, is dispatched un- der computerized control on a single inter- connected grid. We have two such inter- connected grids in the United States, the Northwest power pool (mainly Bonneville) and the TVA, each controlling about 12 mil- lion kilowatts. In the Russian pool is almost 55 percent of the power generated in the entire nation?about 39 million. kilowatts. Approved For Release 2004/06/23 : CIA-RDP65600383R000200230019-7