LET'S KEEP THE RECORD STRAIGHT--A SELECTED CHRONOLOGY ON CASTRO AND CUBA, JANUARY 2 TO JANUARY 14, 1963--PART 12

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65B00383R000200230041-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: June 4, 2004
• Sequence Number: 41
• Publication Date: March 11, 1963
• Content Type: OPEN

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A1316 CONGRESSIONAL RECORD - APPENDIX Marcti .1 i 1963
Medical and dental expenses-Con.
5. Amount excludable ------------ $94.59
Insurance:
6, Taxable portion________________ 104.97
Mass 65 ----------------------
-$27.00
1. Cost of annuity_______________ 6,925.09
Washington National---------
26. 00
2, Cost received tax-free in. past
Old American________________
7. 50
years------------------------ 6,925.09
Conn. General_______________
34.50
4. Amount received this year------ 4,350.12
NRTA Insurance-------------
96.00
5 Taxable portion --------------- 4,350.12
Blue Cross and Blue Shield
66
36
___
.
Total insurance --------
-
257
36
-
--
.
Total income-------------- 5,060.97
Total medical, dental and
insu
a
c
r
iu
Retirement income credit
r
n
e p
em
ms--____ 385. 86
Question
Did you receive earned income
Enter 3 percent (age 76)________ --------
.
in excess of $600 In each of any 10 calendar
Total allowable medical___-
938.76
years before the taxable year 1962?
Yes.
Answer.
Other deductions:
1. Retirement income for taxable
NRTA dues____________________
Hampden County Retired Teach-
1.00
year -------- ----------------- $5,060.97
2. Maximum amount of retirement
income - for credit com
uta-
ers Association dues ---------_
1.00
p
tion------------------------- 1,524.00
Total deductions----------------- 1,697.31
Did you file a return last year?
Answer. Yes.
I declare under penalties of perjury that I
have examined this return (including ac-
companying shedules and. statements) and
to the best of my knowledge and belief it
Is true, correct, and complete. If prepared
by a person other than taxpayer, his declara-
tion is based on all information of which he
has any knowledge.
(Signed) ISABEL M. KAGwIN,
Taxpayer.
SCHEDULE B-SUPPLFMEIQTAL
SCHEDULE OF
INCOME AND CREDITS
Interest income
1. Name of payer:
Peoples Savings Bank_ $14.86,
$38.68, $81.94 --------------
$135.48
.Holyoke Savings Bank $.42,
$37.06, $32.72 --------------
70.20
2. Total, enter here and on,
line bb, page 1________
205.68
Pension and annuity income
1. Investment In contract. --------- 3, 400.20
2. Expected return ----- ---------- 10,200.00
3. Percentage of Income to be ex-
cluded (line 1 divided by line
2) 33.3 percent.
4. Amount received this year-----
600.00
5. Amount excludable ------------
199.80
6. Taxable portion---------------
400,20
I. 'Investment in contract --------- 1,
608.00
2. Expected return----------------3,
393.00
S. Percentage of income excluded,
47.4 percent.
(Figure by New York Mutual)
4. Amount received this year------
199.56
5. Balance (line 2 minus line 4) _ 1.
524. 00
8. Total tentative credit____
304.80
Limitation on Retirement Income Credit
9. Amount of tax shown on line
12, page 1__________________
436.00
11. Subtract line 10 from line 9___
436.00
12. Credit. Enter here and on line
16(d), form 1040, the amount
on line 8 or line 11, whichever
Is smaller__________________
304.80
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 1963
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e&MigSIONAL R Coib -=' A ENb
Reform, as it has been applied through
history, implies progress. If a person
over 65 cannot claim two exemptions,
cannot itemize deductions, does not have
a retirement income credit and so on,
we are not progressing, Mr. Speaker, but
advancing backward.
October, th6ughtfulrt people are more con-
cerned about truth In news. Their right to
truthful news., is in Jeopardy because the
news manipultors have grown more confi-
dent as the result of their recent successes."
The Communist daily Hoy says Cuba's 1963 11 sugar harvest is oh to a poor start. 11 The mills
are not getting enough cane'to grind, a Hoy
reporter complained.
The report, covering the central Province
of Camaguey, said crop work at the Patria o
Muerte (fatherland or death) mill Thurs-
day, the start of the season, was'below last
year's level. It said the mill would have to
close Monday or 'T'uesday unless It got more
cane.
January 12, 1963: 69 Cuban-Americans,
including elderly people and children clutch-
ing toys, arrived here today on a freedom
flight from Havana (Miami Herald).
January 13, 1963: A controversial agricul-
tural survey proposed for Cuba has been
temporarily postponed by the United Nations
Special Fund. * * *
The decision not to act now on the Cuban
project avoided a fight threatened by'the
United States, which puts up 40 percent of
the Special Fund's resources.
Senator KENNETH B. KEATING, Republican,
of New York, contended yesterday that Fidel
Castro is "10 times better, equipped" mili-
tarily now than he was last spring.
He said Castro"has 144 missile launchers,
24 bases, and 500 antiaircraft missiles, some
of them the most modern-in existence, and
20,000 troops."
SEATING made the comments on a program
taped for New York television stations.
January 14, 1968 : In, his state of the Union
message to Congress, President' Kennedy said
that, while danger continues, a deadly threat
has been removed from tuba.
While we shall never weary i"n the defense
of freedom, neither shall we ever abandon
the pursuit of peace:
In this quest, the United Nations requires
our fail and continued support: Its value
in serving the cause'of peace has been shown
anew in its role in the West lto'c' Guinea set-
tlement, in its use as a forum for the Cuban
crisis, and in its task of unification in the
Congo.
A -Case Against Certain Reforms in
the ,Proposed ' Tax Laws
EXTENSION OF REIGIAItKS
HON. SILVIO 0. CQNTE
5
O'F MASACI#VS'1~`S
IN 719E ROUSE Ot'', REf?RESNTATIVNS
Monday, March 1i,1963
Mr. CONTE. Mr. Speaker, I received
recently a fascinating letter and individ-
ual income tax breakdown from a distin-
gliished retired teacher in Holyoke,
Mass.
This fine lady, who is 76 years old,
has an income from various sources in
the neighborhood of $5,000. As her let-
She makes an excellent case against
certain of the reforms in the proposed
tax laws. She demonstrates the hard-
ships that would follow .
I think that her breakdown, an exact
copy of her 1962 return, should open a
few eyes in this House. Here is a lady
who would be seriously harmed by some
of the tax reform provisions.
individual case indicates that we are go-
ing to have to examine every facet of the
tax programs before coming to any final
decisions.
With your permission, I would like to
include a copy of the letter and break-
down in the RECORD.
- The articles follow:
A CASE AGAINST CERTAIN REFORMS IN THE
PROPOSED TAX LAWS
HOLYOKE, MASS.,
February 19, 1963.
Representative SYLIVO CONTE,
Washington, D.C..
MY DEAR MR. CONTE: Possibly you may be
interested in seeing what the proposed tax
reform would do to me.
My income, which varies but a very few
dollars from year to year, was in 1962
$5,060.97. I am 76 years old, have to keep
up a house, claim two exemptions( being over
66) and itemize my deductions and have a
retirement income credit. My medical ex-
penses are heavy and I carry much insur-
ance because of my small savings.
If under the new tax reform a person over
65 cannot claim two exemptions, cannot
Itemize deductions, does not have a retire-
ment income credit but is allowed to take
only $300 from the income tax, my tax would
Impose a real hardship.
` It seems to me that the new tax reform
imposes hardships on the group of older
retired persons.
I talked with a man at the Internal Reve-
nue bureau here in Holyoke. Ile said they
could make no suggestions to Washington
but that I could write to Senator SALTON-
STALL and to you.
I am enclosing a copy, of my 1962 tax.
Thank you for sending me your reports
dr perhaps I should say your letters.
People in Holyoke seem much pleased with
you.
c; Sincerely yours,
COPY OF PERTINENT INFORMATION OF U.S. IN-
DIVIDUAL INCOME TAX RETURN FOR 1962
Following is the pertinent information
.1rQIn form 1040-U.S. individual income tax
return, 1962, for Isabel M. Kagwin, 483
beech St., Holyoke, Mass., social security
Ro. 033346175, retired teacher:
INCOME
Wages, salaries, tips, etc__________ --------
Federal income tax withheld______ --------
?b. Interest (schedule B or other
list) ------------------------ $250.68
Be. Rents, royalties, pensions, etc.
(schedule B)_______________ 4,855.29
9. Total (add lines 4 through
8) --------------------- 5,060.97
TAX RATE SCHEDULE
Ila. Itemized deductions, total
from page 2_______________ 1,697.31
llb. Subtract line Ila from line 9__ 3,363.66
lic. Total exemptions from page 2
here (2), multiply by $800__ 1,200.00
lld. Subtract line lie from line
lib------------------------ 2,163.66
12. Tax, $400 plus $36.0052 -------- 438 .00
13. Self-employment tax__________ ________
1315
PAYMENTS AND CREDITS
15b. Payments and credits on 1962
declaration of estimated
tax------------------------ $240.00
15d. Retirement income credit____ 304.80
15g. Total_______________________ 544.80
TAX, DUE OR REFUND
ITEMIZED DEDUCTIONS
Contributions:
March of Dimes________________ 1.00
Bay State Society for Crippled
Children_____________________ 1.00
Mount Holyoke College --------- 5.00
Church------------------------- 20.00
Salvation Army________________ 5.00
UNICEF ------------------------ 1.00
Interest expense:
Peoples Savings Bank:
Apr. 16, 1962_________________ 50.00
June 20, 1962________________ 50.00
Sept. 21, 1962________________ 50.00
Dec. 26, 1962_________________ 50.00
Taxes:
Real estate taxes_______________ 455.70
State income taxes_____________ 14.75
State and local sales taxes ------- 53. 10
Gas tax________________________ 17.76
Registry of motor vehicles------ 6.00
Excise tax_____________________ 16.50
Cigarette tax___________________ 12.84
Total taxes________________ 523.55
Medical and dental expense:
Drugs:
Chester's Drug Store (Jan. 3,
$25.95; Feb. 3. $18.73; Mar. 2,
$19.29; Apr. 3, $28.08; May 2,
$25.14; June 2, $42.23; July 5,
$31.18; Aug. 4, $21.69; Sept.
4, $27.92; Oct. 2, $32.67; Nov.
2, $26.75; Dec. 3, $41.64) ____ 341.27
NRTA and AARP Drug Buying
Service Washington (Jan. 5,
$12.03; Feb. 1, $24. 14; Mar. 4,
$19.30; Apr. 5, $10.96; May 2,
$26.12; May 14, $9.14; May
26, $12.36; June 21, $16.33;
July 20, $14.03; Aug. 11,
$23.05; Sept. 7, $6.58; Sept.
15, $25.19; Oct. 8, $5.78; Oct.
26, $11.27; Nov. 28, $23.30;
Dec. 8, $11.58; Dec. 26,
$11.07)------- __------------ 262.23
Total drugs________________ 603.50
Enter 1 percent of gross income- 50. 80
Doctors and dentist:
Louis A. Rigali, D.D.S. (Mar. 19,
$4.00; Apr. 20, $8.00; July 30,
$10.00; Sept. 14, $3.00; Oct.
16,'$8.00; Oct. 20, $5.00; Nov.
8, $8.00)------------------- 46. CO
Herbert R. Toombs, M.D., Apr.
12, 1962____________________ 15.00
Bernard J. Niemoio, M.D. (Apr.
17, $10.00; Apr. 24, $10.00) ___ 20. 00
Philip H. Clarke, M.D. (June 2,
$10.00; Oct. 5, $5.00; Nov. 5,
$5.00; Dec. 6, $11.00) ------- 31.00
Holyoke Hospital, Apr. 13 ----- 16.50
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CONGRESSIONAL.. RECORD APPENDIX March 11.
sort has nothing in common with the policy
of peaceful coexistence of the socialist coun-
tries."
January 4, 1963:
A split within the Cuban invasion brigade
broke into the open today with charges by
one of its members that the liberated pris-
oners were being used as political fodder.
The charges revealed for the first time that
100 prisoners boycotted President Kennedy's
Orange Bowl appearance on December 29.
Enrique Llaca, Jr., one of the invaders re-
cently released from Castro's prisons, sin-
gled out Manuel Artime, civilian commander
of Brigade 2506, and Joe Miro Cardona, head
of the exile Cuban Revolutionary Council,
for criticism.
"They are using the brigade for their per-
sonal benefit," declared Llaca, 27-year-old
former Cuban attorney. Both Artime and
Miro Cardona denied it.
Llaca attacked President Kennedy's Orange
Bowl'visit to meet the brigade members as
politically motivated.
January 6, 1963: Time magazine today
listed the U.S. companies that contributed
to the $53 million ransom paid to Premier
Fidel Castro for the 1,113 Cuban invasion
prisoners.
The list, including pledges, accounts for
most of the $53 million ransom although in
some cases only the value of goods already
shipped rather than the company's full com-
mitment, is known.
The United States and the Soviet Union
asked the United Nations today to close the
book'on the Cuban controversy.
The two powers made their request in a
terse, joint letter sent to U.N. Secretary
General U Thant and signed by U.S. Am-
bassador Adlai E. Stevenson and Vassily V.
Kuznetsov, the Soviet First Deputy Foreign
Minister.
Today's message made no effort to conceal
the deadlock in American-Soviet negotia-
tions. But it hailed the fact that war had
been avoided and expressed hope other ten-
sions might be eased.
Stevenson and Kuznetsov suggested that
the Cuban item be wiped off the Security
Council agenda "in view of the degree of
understanding reached" and "the extent of
progress in the implementation of this un-
derstanding.",
The statement ended on a note of hope:
"The Governments of the United States
and of the Soviet Union, express the hope
that the actions taken to avert the threat
of war in connection with this crisis
will lead toward the adjustment of other
differences between them and the general
easing of tensions that could cause a fur-
ther threat of war."
Carlos M. Lechuga, Cuban Ambassador to
the U.N., delivered Cuba's objections in an-
other letter 2 hours earlier.
The Cuban objections were summarized in
one paragraph:
"As you know, Mr, Secretary General, the
negotiations carried on with your generous
intervention have not led to an effective
agreement capable of guaranteeing, in a
permanent way, the peace of the Caribbean
and in liquidating the existing tensions."
Lechuga repeated the Cuban attacks on
American "aggressive and interventionist
policy."
January 7, f963: The Cuban Government
today announced a record 2 billion peso
budget for 1963. About 10 percent of it-
213.7 million pesos-was earmarked for "na-
tional defense and public order."
:American business made a substantial
contribution to Fidel Castro's last minute
demand for $2.9 million in cash to assure
uninterrupted return of the Cuban invasion
prisoners.
A check of 25 of the Nation's largest com-
panies indicated today that individual con-
tributions to the special cash fund raised
by Gen. Lucius D. Clay ranged from $10,000 follow. Thousands of Cuban relatives of the
to $150,000 and more. freed Bay of Pigs invasion prisoners also are
Castro claimed the $2.9 million was owed anxious to leave.
hip for the release of 60 prisoners in April. Between 500 and 700 Soviet troops left
Of the total, $1 million was pledged by an Cuba during the last day or so aboard the
unknown donor solicited by Attorney Gen- Russian passenger ship Baltika, it was re-
eral Robert F. Kennedy. ported here yesterday.
The cash fund was separate from the $53 Several thousand other Soviet forces are
million in drugs and food pledged to Castro. reported to have left Cuba since the end of
The Kennedy administration set up spe- the October missile crisis. But U.S. officials
cial machinery yesterday to handle future believe some 16,000 to 17,000 remain in Cuba.
policy toward Cuba. About 6,000 of these are known to be orga-
Sterling J. Cottrell, a veteran Foreign nized in combat units.
Service officer who formerly headed a task
force on the Vietnam question, was named
coordinator of Government activities deal-
ing with Cuba. He was given the title of
Senior Deputy Assistant Secretary of State
for Inter-American Affairs.
As part of its economic squeeze on Cuban
Premier Fidel Castro, the United States will
demand that the United Nations cancel a
project to help build a $3 million agricultural
experimental station in Cuba.
U.S. sources said today that Ambassador
Adlai E. Stevenson has been instructed to
fight right down the line to halt previously
approved plans under which the U.N. Special
Fund would grant more than $1 million for
the project. The United States, which con-
tributes 40 percent of the money spent by
the Special Fund, voted against the grant on
the grounds that the project could not be
carried out because of the large number of
Cuban agricultural technicians fleeing the
country. U.S. sources said this situation
was even more complicated now because of
Soviet technicians in Cuba.
Under the plan approved in 1961, the Spe-
cial Fund would allocate something over
$1.1 million to the Food and Agricultural
Organization (FAO) to finance the U.N. part
of the project over a 5-year period. Cuba
would put up $1.8 million.
The United States argues that Castro is
neglecting. the economic and social develop-
ment of the country to concentrate on poli-
tical problems and has, therefore, forfeited
any right to U.N. aid. .
January 8, 1963: Cuba was pictured as a
land plagued by growing food shortages
"where tightening of the vest-is now a nor-
mal way of life."
This view of the Cuban food situation was
contained in a U.S. Foreign Agriculture Serv-
ice, report that said the Premier Fidel Castro
regime has just about wrecked the Island's
agriculture in 4 years.
The report described the food situation
there as the poorest in years and added that
it may get worse this year. Farm produc-
tion, it reported, has fallen off 20 percent
since Castro took over.
January 8, 1963:
United Nations Ambassador Adlai Steven-
son said today the United States has op-
posed from the beginning a plan to send
Cuba $1.2 million in U.N. funds for an agri-
cultural project.
But if the U.N. governing board approves
the plan there isn't much that can be done
about it, Stevenson said.
Of the $1.2 million, $480,000 probably
would come from U.S. taxpayers.
January 9, 1963: President Kennedy talked
for an hour yesterday with Vasily Vasilevich
Kuznetsov, First Deputy Foreign Minister of
the Soviet Union. They discussed the set-
tlement of the Cuba crisis and took a look
at disarmament and Berlin as problems that
remain to be solved. The conversations, it
was said, were held in a very cordial
atmosphere.
January 10, 1963:
After a 2-day delay, 100 American citizens
will leave for the United States Sunday on
the return flight of an airliner carrying ran-
som supplies to Havana, a Swiss diplomat
reported today.
The diplomat had no word on whether a "As the result . of the furor over news
score of Americans held in Cuban jails would manipulation during the Cuban crisis last
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The reports were made as official sources
said the United States is expected soon to
ask the Organization of American States to
consider almost total isolation of Cuba.
January 11, 1963:
Cuba trade perils aid, U.S. warns.
The United States has served notice on
countries whose ships go to Cuba that they
risk losing American aid.
State Department press officer Joseph W.
Reap disclosed yesterday that the warnings
have been conveyed in line with the new
forign aid law. Congress last October at-
tached a proviso that aid shall be cut off to
countries whose ships carry goods to Cuba.
January 11, 1963:
Secretary of State Dean Rusk advised the
Senate Foreign Relations Committee that
even the possibility of a U.S. no-invasion
pledge on Cuba no longer exists.
The administration has made clear re-
peatedly that President Kennedy's offer of
such a pledge was conditioned on on-site
inspection to verify removal of Soviet mis-
siles and bombers from the Communist
ruled Island. It has been apparent for weeks
that there would be no such inspection even
though negotiations to that end were not
concluded until this week.
Rusk appeared before the committee yes-
terday, and after the closed session Chair-
man J. WILLIAM FULBRIGHT, Democrat, of
Arkansas, told reporters the Secretary cov-
ered the point like this:
"Any commitment was contingent on the
exchange of letters (between Mr. Kennedy
and Soviet Premier Nikita S. Khrushchev)
which required on-site inspection as well as
the removal of missiles and other offensive
weapons.
"In view of the failure to get the inspec-
tion, the commitment no longer exists."
FULBRIGHT said Rusk assured the commit-
tee that U.S. intelligence is convinced all
offensive weapons of nuclear capability have
been removed from Cuba.
Cuba and East Germany will establish dip-
lomatic relations at the ambassadorial level,
the Government press reported today.
The Government newspaper El Mundo said
the decision to elevate the present East Ger-
man-Cuban trade mission to embassies "was
due to the close and friendly present rela-
tions between our two nations and will con-
tribute to formalize and consolidate even
more the bonds of friendship between our
peoples."
A newspaper editor charged today that the
Kennedy administration, by "manipulating"
news as a cold war weapon, is imperiling the
American people's right to full and accurate
information on how public affairs are being
handled.
The charge was made by John H. Colburn,
managing editor of the Richmond Times
Dispatch, in a, speech before the Arizona
Newspapers Association.
The editor said the American press must
shoulder much of the blame for controlled
news from Government because it has too
often "been complacent about its respon-
sibility to zealously seek out the truth."
"The press today could do much more to
inform the public about the open and in-
sidious efforts to keep the truth from the
 a mete political philosophy or type of
ideology is involved in the struggle be.
tween Cgmniunist and free nations of the
world for the minds of nlpn.
The ' beginning of the year 198
brought `dL eartening reports to the
American people. Instead of victory, we
found containment. Instead of a relax-
ing of tension we found increased ten-
sion, following' publication of reports
that on the island of Cuba there re-
mains in addition to the thousands of
Soviet troops described in part 10, 500
Russian antiaircraft missiles, 144 missile
launchers, 24 bases at different spots on
the island, 60 surface-to-surface short-
range missiles, over 100 Mig jet fighters,
some 3,400 antiaircraft guns, mortars,
field artillery pieces, and assault guns,
350 medium and heavy tanks, 34 sub-
chasers, and missile and motor torpedo
boats, as well as "0 helicopters.
We were threatened once again by the
Soviet U'llioi with war if we made any
attempts to stage provocations around
Cuba. Castro displayed ground-to-air
missiles during his fourth anniversary
celebration in Cuba. Our President was
called a vulgar pirate chief by the
acknowledged pirate of all pirates. The
ransom paid by American citizens and
businessmen, for the Bay of Pigs Inva-
sion prisoners was thrown back into our
faces-not literally, but verbally-by
Castro. And again the Communists--
this time the Chinese Communists-
proved themselves past masters at twist-
ing facts by virtuously announcing that
they strongly opposed-the sacrifice of
another country's sovereignty as a means
of reaching a compromise with imperial-
ism. They accused the Soviets of 100-
percent appeasement, a Munich pure and
simple In withdrawing missiles from
Cuba.
By this time the American peoplewere
not at all sure that our triumph was
anything of the sort. Instead it began to
appear what $hrushchev himself termed
It, a triumph of the Soviet::, in that while
some 40 missiles may have been removed,
the island of Cuba had been success-
fully turned into a bristling arsenal, and
any Cubans remaining who might wish
to throw off the yoke of Castro's commu-
nisl'n would find themselves in the same
predicament as the Hungarians who tried
to throw off communism In Hungary.
Although on January 6 both the
United States and the Soviet Union re-
Quested the United Nations to close the
book on the Cuban controversy. It
did not seem possible to do this, Some
of the Cuban exiles even accused Presi-
dent Kennedy of being politically moti-
vated in his Orange Bowl appearance on
December 29 of last year. And the
Cuban Government set aside 10 per-
cent-213.7 million pesos-of Its rec-
ord 2 billion .peso budget for 1963 for
national defense and public order.
While Cuba was planning to defend the
Castro regime against its own unhappy
citizens, our American citizens were once
again digging down Into their jeans to
raise from $10,000 to $15,000 to pay the
ransom still being demanded by Castro
for uninterrupted return of Cuban in-
vasion prisoners. And an unknown
donor was 'rumored to have been urged
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successfully by Attorney General' keii-
n 1y tq donate $1 million or this cause.
'e, then .found . l se yea'. il} the
peculiar osition of being maneuvered at
the same- tirn into helping build,a $30
million agricultural experiment station
in Cuba, , through the United Nations
voluntary! Special Fund, 40 percent
wb c'h was provided by the United dtates.
'T'his project, approved in 1961, would
allocate something over $1.1 million to
the Food and Agricultural Organiratlon
of the United Nations for a 5-year proj-,
ect.in Cuba. Cuba was to.put up $1.8
million, and the uneasy suspicion began
to spread that not only were we tp pro-
vide 40 percent of the aforesaid, fund,
but our ransom money would provide the
other $1.8 million as well. The collective
blood pressure of thousands of Ameri-
cans began to rise, along with the,num-
ber of protesting letters to congressional
offices about the Cuban agriculturN deal.
As in Most Soviet-bloc countries, It
became apparent that for some Tgmpn
communism and agricultural ab dance
had nothing in common. Adlai Steven-
son admitted that although the Vnited
States opposed this agricultural aid to
Cuba, there was apparently nothing we
could ao about it and of the $1.2 nlillion,
the U.S, taxpayers probably would find
themselves paying $480,000. however,
the United Nations later postponed, al-
though temporarily-the controversial
agricultural survey project for Cuba,
much to the relief of the congressional
Members who had been hearing some
pretty, strenuous objection from the
American people.
senator KEaTlvc, known now as the
man who was right last fall about Cuba,
contended that Castro was now 16 times
better equipped militarily than the was
last spring and stated that 20,060 troops
were In Cuba, along with 144 missile
launchers, 24 bases, and some 500 anti-
aircraft missiles.
President Kennedy stated that while a
danger continued, a deadly threat has
been removed from Cuba. He Praised
the United Nations for its value in serv-
ing the cause of peace for its use as a
forum in the Cuban crisis and for its
task of unification In the Congo-none
of which seemed to convince a goodly
segment of the American people.
A chronology follows:
A 8z term CHRONOLOGY ON Cuss c
(Jan. 2. 1983 to Jan. 31, 1983)
January 2, 1983:
An article by David Kraslow in the
Miami Herald stated that "Cuba has 500
Russian antiaircraft missiles and 144 missile
launchers at 24 bases ringing the island.
"The list is current and is based o4 what
the U.S. Government believes to be solid
Intelligence.
"Other Items include over 60 .surface-to-
surface short-range missiles; over 100 Mig
jet fighters; some 3.000 antiaircraft guns,
mortars, field artillery pieces, and assault
guns; 350 medium and heavy tanks; 34 sub-
chasers and missile and motor torpedo boats,
and 70 helicopters."
January 2, 1963:
The Soviet Union's leading theorist, Mik-
hail Suslov, pledged today that his country
+ Unless otherwise stated excerpted from
the. Washington . Post and the Washington
Star; reproduced with the permission of the
Washington Post and 'Washington star.
A1313
would "actively resist any attempts to stage
provocations around Cuba," Tass news agency
reported.
Communist Party Secretary Suslov told a
Moscow audience that "the forces of peace
aqd socialism must vigilantly watch over the
scrupulous observance by the United States
of its commitment not to attack Cuba and
to restrain its allies from doing so.
January 2, 1983:
The ground-to-air missile, not generally
known to have been in Castro's possession,
came into view at the tail end of an hour-
long display of military hardware, part of
the celebration of the bearded Prime Min-
ister's fourth anniversary of power.
In a 90-minute anniversary speech, Castro
referred briefly to the missiles, saying that
"today, the first ground-to-air rocket artil-
lery crews in training have paraded past
here."
He said the rockets would be used to keep
Cuban airspace free of Intruders._
Castro assailed President Kenedy as a
"vulgar pirate chief," and claimed he forced
Washington to pay Indemnity for the release
of Bay of Pigs invasion prisoners who were
liberated for 853 million worth of food and
drugs sorely needed by the Cuban regime.
"They call it ransom, but the fact is that
they had to accept the payment of indemni-
fications. For the first time In its history,
imperialism paid an indemnification of
war."
Castro repeated his demand that the
United States get out of its Guantanamo Bay
Naval Base at the eastern tip of Cuba, but
he did not intimate that any other than legal
-means would be employed to oust the United
States.
'The Prime Minister also repeated that
Cuba would never accept Inspection on its
soil to verify the removal of land-based of-
fensive Soviet missiles, as the United States
has demanded. He made no criticism of
Moscow for the withdrawal of the missiles
and jet bombers, but stressed Cuba's sover-
eignty.
January 2, 1963:
An editorial In the Peking People's Daily
stated that "Those who accuse China of
opposing peaceful coexistence also attack the
Chinese people for supporting the just stand
of the Cuban people in their struggle against
U.S. imperialism. When the heroic Cuban
people and their revolutionary leader Premier
Fidel Castro resolutely rejected International
inspection as an infringement on Cuba's
sovereignty and advanced their five just de-
mands, the Chinese people held gigantic
mass demonstrations and parades through-
out the country in accordance with their
consistent stand for proletarian internation-
alism. and firmly support the Cuban people's
struggle in defense of their independence,
sovereignty, and dignity.
"How can one possibly interpret the res-
olute support which the Chinese people gave
to the Cuban people in their struggle against
international Inspection and in defense of
their sovereignty as meaning that China was
opposed to peaceful coexistence or wanted to
plunge others into a thermonuclear war? On
more than one occasion we have made it
clear that we neither called for the estab-
lishment of missile bases in Cuba nor ob-
structed the withdrawal of the so-called
offensive weapons from Cuba. We have never
considered that it was a Marxist-Leninist
attitude to brandish nuclear weapons as a
way of settling international disputes. Nor
have we ever considered that the avoidance
of a thermonuclear war in the Caribbean
crisis was a 'Munich.' What we did strongly
oppose, still ptrongly oppose, and will strongly
oppose in the future is the sacrifice of an-
other country's sovereignty as a means of
reaching a compromise with Imperialism. A
compromise of this sort can only be re-
garded as 100. percent appeasement, a 'Mun-
ich' pure and simple. A compromise of this
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 ^NN1 V VGaa I V1 1\GICQJG LVV?r/VV/LJ VIA-1\Vr V~1 JVVJVJI\VVVLVVLJVV?r 1
1963 CON1s t-ESSIONAL RECORD - APPENDIM 1311
from year to year; they would benefit espe- ject to some "tax, a 5-year averaging provi- knowledge, some enlightenment on the
cially from the averaging provision. sion would reduce the e$ective rate of tax on issues and, most important, increased
Cost of research and development machin- the gain and the tax could be paid in instal- respect by the students for our public
?ery and equipment to be treated as torrent meets over a period of 10 years. Redemption office holders.
expense deduction: Present law requires of stock in the company to pay the capital Arrangements for these visits are made
capitalization of such assets, although other gains tax would be allowed without addi-
tional tax by the students. They choose the mod-
deducted as incurred. The proposed law
would allow a company'to treat as a current
expense deduction all expenditures for
machinery and equipment used directly in
research and development.
Special provisions are included in the pro-
posal to meet the needs of some small busi-
nesses with moderate It. & D. budgets that
would not otherwise qualify for the current
expense treatment. For larger enterprises
claiming the R. & D. deduction, equipment
used only part-time for research and develop-
ment purposes, or used in the performance
of a Federal contract, would not qualify.
Under the special provisions for small busi-
ness, any expenditures for equipment used
directly for research and development could
be expensed in an amount up to 4 percent of
$500,000 of total expenditures for research
and development. For purposes of the spe-
cial small business provision, equipment used
only part-time but at least 50 percent of
the time for research and development would
qualify to the extent of 50 percent of its cost.
Moreover, research and development equip-
ment not used exclusively in the perform-
ance of a Federal contract would qualify.
The maximum deduction under this small
business provision would be limited to
$20,000 annually.
The proposed changes In the tax treat-
ment of capital gains will also directly and
indirectly aid small firms. The capital gains
.changes' include:
Rate reduction: Under the program, 30
percent of long-term capital gains of indi-
viduals, instead of the present 50 percent,
is includible in taxable income. Combined
with the individual tax reductions this
means that capital gains would be taxed at
an effective rate of 4:2 pe cent, instead of
the present 10 percent, in the lowest bracket
and progress to a maximum of 19.5 percent,
instead of the present 25 percent. In addi-
tion, the corporate rate on capital gains
would be reduced from 25 to 22 percent.
These reductions should increase invest-
ment in small companies as investments
which are now retained solely for tax rea-
sons become "unlocked" and as the overall
tax program increases the prospects for
profitable investment in small business.
Extension of the holding period: The hold-
ing period for long-term capital gains would
be increased from the present 6 months to
1 year. Small business investments typically
Unlimited capital loss carryover: The pres- erator, secretary, photographer, class
ent 5-year limitation on carryover of capital hostess, and all who have anything to do
losses against capital gains and up to $1,000 with the program. The students develop
of ordinary income would be eliminated. questions and topics and decide who
The change would especially help the small should be invited.
investor who may not have the portfolio di- 110 student passes a principles of de-
ca than would make it feasible match mocracy course unless he has actually
cappital ital gains and losses in only 5 years. The
extension of time would mean greater oppor- worked in a political campaign. Some
tunities to offset losses, with a tax saving, for students who are most reluctant to par-
those who make substantial investments in ticipate in practical politics become
small business, and thus increase the supply some candidate's most enthusiastic
of risk capital for such. enterprises. More- workers. Concerned about the failure
over, the unlimited capital loss carryover of more women to participate in politics,
should encourage risk investment generally, the class contacted various persons in
which would benefit small business.
Just as small business stands to gain in a public life, including all the ladies in
special way from tax reforms which encour- the U.S. House of Representatives and
age economic growth, it stands to lose more the Senate, to find out why this was so.
heavily from Inaction on the tax front, which The class secretaries summarized and
would increase the chances of an early reces- mimeographed the results. The pupils
sion or continued slack in the economy. then discussed the issue on a Boston
Small business lacks the resources available radio program. Under the strong
to larger companies to withstand an eco-
nomic downturn. Therefore, the mortality guidance of Miss A'Hearn, Hyde
rate among small firms in a recession would Park students are learning that demo-
be heavy. The President's 1963 tax program cratic government depends on effective
will make a major contribution toward pro- participation.
viding an environment that will foster the Dr. Reid's contribution lies in a some-
as pa us growth of the small business sector what different area. The Boston pub-
lic part of a strong and expanding economy. lic schools began teaching about the
Classroom Teachers Medals Awarded
menace of communism, as well as fas-
cism and nazism, in 1939. In 1941, the
Boston schools published one of the first
documents about the .isms used in any
stem. After the war the pro-
hool s
y
sc
EXTENSION OF REMARKSgram was expanded.
OF
Concerned about the fact that too
HON. JAMES A. BURKE many youngsters leave high school be-
OF MASSACHUSETTS fore graduation and may become easy
IN THE HOUSE OF REPRESENTATIVES prey to the glib teachings of others, the
Boston schools, in 1954, began develop-
Monday, March 11, 1963 ment of -a program to increase patriot-'
Mr. BURKE. Mr. Speaker, Freedoms ism and knowledge of our democratic
Foundation at Valley Forge, Pa., has republican government in grade nine.
singularly honored Hyde Park High This program was instituted on an ex-
School, Boston, Mass., in awarding class- perimental basis. A committee under
room teachers medals to two of the Dr. Reid's leadership, developed mate-
school's staff. Miss Marie E. A'Hearn rial that would help pupils to under-
was presented with the medal for her stand our government on the local,
work during the school year 1961-62, State, and national levels. It also pro-
and Dr. William J. Reid, head of the duced a curriculum guide for the ninth
history department, received his award grade, that would. make our American
for 1960-61. boys and girls aware of the menace of
Miss A'Hearn teaches the principles communism. As the preliminary proj-
of democracy course at Hyde Park High ects proved successful, the program was
School. She conducts her classes on the extended to include every ninth grade
theory that participation is the key to student in the Boston school system. In
both knowledge and citizenship. Her his position as coordinator of civic edu-
classes learn about democracy in prac- cation for the Boston public schools,
tice as well as in theory. When issues Dr. Reid is responsible for the effective-
of a national scope are considered, the ness and growth of the program.
class invites its Congressman, Hon. At special assemblies of the student
JAMEs A. BURKE, to speak to them. On body and the faculty, Mr. Charles J.
State issues the representatves to the Keelon, headmaster of Hyde Park High
general court are asked to come and School, congratulated the recipients on
talk. On local issues, a member of the the honor they had brought to the school
city council discusses city matters with by their contributions to furthering our
them. a American ideals. Assistant Sunerin-
These sessions are not the usual high tendent of Schools Frank J. Herlihy, on
school assembly talks. These are work- behalf of the Freedoms Foundation,
.ing sessions. The class invites the presented the Classroom Teachers Medal
speaker and suggests the topics to be to Dr. Reid on Flag Day, 1961, and
-discussed. The guest presents his talk Deputy Superintendent William H.
and then is subjected to a barrage of Ohrenberger awarded Miss A'Hearn her
questions. The result is some increase in medal on October 10, 1962.
require several years to mature. This change
would limit long-term capital gains to bona
fide investors, rather than short-term spec-
u.latprs and would encourage investors to
devote more funds to investment in small
firms.
Taxation of capital gains at'time of death
or gift: Under the p ogram, net gains on
capital assets would be taxed at the time
of transfer at death or by gift. This change
would increase the mobility of capital by
reducing the tax inducement to hold assets
until death.
Since the principal estate asset of a small
businessman is often his business, special
provisions have been included to insure that
estates will not be forced to liquidate a
smart business to pay a capital gains tax.
The first $15,000 of gain would be excluded
from tax as would the gain on any property
transferred to a surviving spouse, up to a
>fnaxlmum of one-half the gain in the estate.
These exclusions are expected completely to
eliminate payment of capital gains tax upon
death for all but 3 percent of those who die
each year. For those who would become sub-
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 !TON. BRUCE ALGER
income tax to 60 percent for highest bracket
Sid 16 percent in the lowest bracket; (2) Let
8areaa la=ss expire-corporate tax drop
from 62 percent to 47 percent; (8) Study
structural reforms sgparately; (4) Lower
Federal spending, balance the budget.
0. Keith Funston, president of the New
of TEi6s 'York Stock Exchange, under my cross ex-
THE ROUSE OF RSPRESENTATIYEB ftthination developed these constructive rec-
DIDmeaGatlons: (1) Eliminate double taxa-
Mondayi. March 11, 1963 tion; (2) Eliminate capital gains tax, and
Mr. ALGER. Mr, .Speaker, under the redefine capital gains; (3) Relate Federal
leave to. extend my remarks. in the Raec- spending to income-balance the budget.
These recommendations are much more likely
oBp, 111161>.tde the following newsletter to prevent recession. of which the Presi-
Of March 9, 1963. dent warns, than the President's recom-
WASHINGTOrr REPORT mendations.
(By Congressman Bruce Alger) ECONOMIcs PROFESSOR BEES PaoaR&x
3eEW f+&OVITtsa PROGRAMS IGNORE TECHNOLOGY William H. Peterson, associate professor of
President Kennedy completely ignores economics. Graduate School of Business Ad-
technology in the social and welfare programs ministration of New York University, was
he is trying to impose on the country and more blunt: He said: "In this statement I
therefore fails to understand they cannot seek to make but three points. First, to
Work. In a major speech on the floor of demonstrate the nonscientific and anti-
theAouse this week I pointed out that in economic growth deficiencies of rate pro-
the programs he has submitted to Congress, gression in general. Second, to show bow
the President seems to be acting on impulse deficiencies the Presidents d tax proposals reflect defeating rather than on any sound technical basis, their stated stated an are hence self-defeating And
I focused attention on the welfare part of the goal of economic growth. And
'the 'New Frontier program, which, in spite to give support to maximum cor-
Of suggestions to the contrary, Is being reshot at this time of the deficiencies of
expanded at a faster rate than most other graduation." Professor Peterson pointed out
de that
Segments of the budget, including national the steep President' nrIndialam u i een-
ometax rate The steepness In program
defense. The justification for this expan- defeating.
-
slon Is political rather than logical or rea- linked come t to the proposed 5 especially na when
Sociable. The New Frontier IS trying to Itemized pons a ff 5 percent rule tax
capitalize on a formula developed by the relief affords virtually upper
New Deal-& formula that reads (1) Many brackets. the he The middle middle professor and said upper
persons are In need, (2) The Nation has middle tia be regards the
(3) middle and upper brackets as prime sources
reSoirces with which to meet the need
,
The Federal Government should use the re-
sources to meet the need.
It In my contention that points i and 2
do not justify the conclusion implied by
point S. Technologically, no standards or
criteria can be developed by which to admin-
ister Federal social welfare programs to
produce the results which the administration
Promises When it proposes Federal financial
involvement. The only reasonable way to
measure the effectiveness of public services
Is to measure them only in terms of results
achieved. In my speech I outlined where
desired Or promised results have fallen far
Short in such programs as urban renewal.
area redevelopment, advancing civilian tech-
nology, and In studies in connection with
Federal aid to education. In order to get
some Idea of the complexity of trying to
Impose Federal participation in the social
and welfare fields, try to write a formula for
Federal aid Which will work and which will
Come within the framework of the different from the standards of our market
Constitution. economy. "It assumes." Peterson said, "that
3MPIRT WrrNEssES QUESTION PRESTO the market knows least and Government
aNT'a TAX knows best." He then reminds us, "This
PROPOSALA democratic market system, this incentive
Some of the beat tax minds. in the Nation system, is precisely the means by which we
appeared before the Ways and Means Com- have become the richest and freest people
mittee this week. The development of their in all the world."
testimony clearly indicates the fallacies of The only way we can insure the health of
P esiout $ennedy'a tax proposals. The first the economy is to insure the rate of capital
such witness was Roswell Magill who, 26 formation-that is, in the rate of Investment.
ago, was Under Secretary of the Tress- This is the theory of the Alger-Baker-Heriong
years In Franklin
Magill's statement ao~vclt'fi ted Cabinetmy owwr' bill. A number of witnesses, including
Challenge to the President's tax program. Professor Peterson, believe this bill is the
He said: "President Kennedy's tax program only fiscally feasible and responsible alter-
Is contradictory to its announced objectives native to our present income tax structure.
in four basic ways. First, the investment It stresses investment, whereas the Admin-
capital incentive is penalized because con- istration stresses current consumption. In
Burner purchasing power is overly stressed; sharp contrast to tlfe Administration's pro-
second., the structural reforms. defeat rate gram, it would reform the present steep
cuts; third, the timing is bad, there being no schedule of rate graduation while, over a
immediate stimulus as intended; fourth, the longer period of time, provide substantially
budget is further inibalanced through lack as much tax relief as the Administration
of expenditure control." api a-
the lower income tax levels. Capital l for forma-
coNSTEOC v aECOMMENnATIONs tion is clearly the road to
growth. There
Mr. Magill listed a constructive program, Is no other way. Without capital, there will
sensible as I an It. (1) Lower individual be no goods for consu(ners to purchase.
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SS1ONAL RECORD s .i P ix
of America's capital formation and hence
of economic growth. An amazing figure in
this testimony showed that tax rate pro-
gression beyond 60 percent of taxable in-
come yields the Treasury only about $1 bil-
lion (out of a $98 billion budget) or about
enough to run the Government for 4 days.
So the excessive rate is not designed to
raise revenue, but to penalize and, in effect,
stifles initiative or, in Professor Peterson's
words, "Incentive is the thing. It accounts
for enterprise and Ingenuity. It is the Secret
of American prosperity
REDISTRIBUTION OF INCOME
SYSTEM
The theory of the social planners around
President Kennedy upon whose judgement
his tax proposals are based, would have us
believe our free economy can best be devel-
oped by a redlstributon of Income (the
theory of equalization). But redistribution
March '.1
OVERCAPACITY RESULT OF INEFFICIENCY
The administration planners stress the
overcapacity of American Industry, Pro-
fessor Peterson points out the administra-
tion's stress on overcapacity misses the
point. The real point is not simply over-
capacity, but the nature and causes of ex-
cess capacity. A careful study of all the
factors shows that basically, overcapacity is
a matter of Inefficiency. The principal crit-
icism of the President's proposals, brought
out by many witnesses In their direct testi-
mony and in my discussion with them under
cross-examination, is the lack of confidence
and knowledge of our system displayed by
the President, his continued efforts to down-
grade the United States. Unfortunately, the
results are the President's statements of
problems and legislative solutions that
downgrade the system and successes of the
United States.
A fine representation of Dallas and Texas
w's made to the site subcommittee of the
Republican National Committee in an effort
to get the 1964 Republican Convention in
our city. The Chamber of Commerce would
have been proud of the quality of the presen-
tation. John Leedom, Peter O'Donnell, Mrs.
Ike Kampmann, Harry Bass, Al Fay, Sena-
tor Tower, and Ed Foreman created a re-
markable impression on the committee. All
Dallas Is proud of this effort to bring a
meeting to our community which will result
in $5 to $8 million in revenue. This presen-
tation was In the true spirit of Dallas that
our people can accomplish any job, no matter
how tough or how big. It Is this spirit that
built our city.
Let's Keep the Record Straight-A
Selected Chronology on Castro and
Cuba, January 2 to January 14, 1963-
Part 12
EXTENSION OF REMARKS
OP
HON. DON L. SHORT
OF NORTH DAKOTA
IN THE HOUSE OF REPRESENTATIVES
Monday, March 11, 1963
Mr. SHORT. Mr. Speaker, my last re-
marks on "Cuba in 1933" appeared in the
February 21 RECORD and served as a se-
quel to the previous chronologies parts
1 through 10. The "Cuba in 1933"
speech was to serve as part 11, preceding
today's part 12. Part 11 was a kind of
flashback in history and I hope a
pointed reminder that our problem with
the Communists In Cuba did not origi-
nate-as many seemed to feel-with the
overthrow by Fidel Castro of the Batista
regime in Cuba. Instead, It could be
traced back to the time when the Com-
munists failed in their efforts to subvert
Germany and cast around for a more
profitable base of operations from which
to spread their deadly doctrine of di-
alectical materialism, or as some term
It materialism opposed to idealism or
state opposed to God. Never has there
been a more materialistic doctrine
preached than that of communism and
never a more idealistic doctrine preach-
ed-if admittedly not always practiced to
the letter by individual believers-than
the Sermon on the Mount. In compar-
ing that inspired writing with the hate
motif of the Communist materialism, it
is clear that something far deeper than
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