GRASSROOTS OPINION ON CUBA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65B00383R000200240046-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: June 18, 2004
• Sequence Number: 46
• Content Type: OPEN

Delaney
Dent
Denton
Diggs
Dingell
Donohue
Dulski
Duncan
Edmondson
Edwards
Elliott
Everett
Evins
Fallon
Farbstein
Faseell
Feighan
Finnegan
Fino
Flood
Fogarty
Friedel Miller, Calif.
Fulton, Pa. Mills
Fulton, Tenn. Minish
Gallagher Monagan
Garmatz Montoya
Giaimo Moorhead
Gilbert
Gill
Glenn
Gonzalez
Grabowski
Gray
Green, Oreg. Murphy, Ill.
Green, Pa. Natcher
Griffiths Nedzi
Hagan, Ga. Nix
Hagen, Calif. O'Brien, N.Y.
Halpern O'Hara, 111.
Hanna O'Hara, Mich.
Harding
Harris
Harsha
Hawkins
Hays
Healey
Hechler
Hemphill
Henderson
Holifteld
Holland
Joelson Rhodes, Pa.
Johnson, Calif. Rivers, Alaska
Johnson, Wis. Roberts, Ala.
Jones, Ala. Rodino
NAYS-209
e d, N.Y. Springer Wydler
Slack Reifel Stafford Younger
Smith, Iowa Rhodes, Ariz. Stinson
Staebler Rich Taft
Staggers
Steed ANSWERED "PRESENT"-1
Stephens O'Konski
Stratton
Stubblefield NOT VOTING-18
Sullivan Ayres Forrester Powell
Taylor Baring Martin, Mass. Rivers, S.C.
Teague, Tex. Brown, Ohio Miller, N.Y. Scott
Thomas Collier Mosher Shipley
Thompson, La. Conte Murphy, N.Y. Wallhauser
Thompson, N.J. Davis, Tenn. O'Brien, Ill. Wyman
Thompson. Tex.
Trimble
Tupper
Udall
Ullman
Van Deerlin
Vanik
Vinson
Watts
Weltner
Whalley
White
Wickersham
Willis
Wilson,
Charles H.
Wright
Young
Zablocki
So the bill was rejected.
The Clerk announced tha
pairs:
On this vote:
Mr. O'Konski for, with Mr.
Ohio against.
Mr. Murphy of New York for, with Mr.
Davis of Tennessee against.
Mr. O'Brien of Illinois for, with Mr. Collier
against.
Mr. Shipley for, with Mr. Wallhauser
against.
Mr. Powell for, with Mr. Conte against.
Until further notice:
Mr. Baring with Mr. Wyman.
Mr. Forrester with Mr. Mosher.
Mr. Rivers of South Carolina With Mr.
There was no objection.
GRASSROOTS OPINION ON
10123
at this point in the RECORD and to in-
clude extraneous matter not to exceed
One Page.)
Mr. DEROUNIAN. Mr. Speaker, I am
pleased to include herewith an editorial
from one of my district's outstanding
weekly newspapers, the Manhasset Mail,
as it appeared in the issue of June 6,
1963.
There is no doubt that not only the
people in my congressional district but
the overwhelming majority of the Amer-
ican people resent the status quo on
Cuba and realize the Communist danger
far more than does the President of the
United States:
GRASSROOTS OPINION ON CUBA
When Congressman STEVEN DEROUNIAN
told a memorial Day audience that America
was in grave danger because of the Soviet
buildup in Cuba, he wasn't making a politi-
cal speech, for his warning was based on the
alarming reports of the Preparedness Inves-
tigating Subcommittee, headed by Senator
JOHN STENNIS, of Mississippi, and staffed by
a bipartisan group of Senators Including
STUART SYMINGTON, Missouri; HENRY M.
JACKSON, Washington; STROM THURMOND,
South Carolina; LEVERETT SALTONSTALL,
Massachusetts; MARGARET CHASE SMITH,
Maine; and BARRY GOLDWATER, of Arizona.
We do not have space here. to quote the
34-page report in full, but after having read
the report, we are in full agreement with
Congressman DEROUNIAN that America Is In
great danger. Not only are we in great dan-
ger now, but the danger will grow greater as
time goes on and as long as Soviet soldiers
Abbitt Colmer Hoffman
Abele Cooley Abernethy Cramer Horton
Adair Cunningham Hosmer
Alger Curtin Huddleston
Anderson Curtis Hull
A
ndrews Dague Hutchinson
Arens
Ga. Jarman
Ashbrook Derouniiaan Jennings
Ashmore Derwinski Jensen
Auchincloss Devine Johansen
Avery Dole Jonas
Baldwin Dorn Jones, Mo.
13
Keith
Bates Downing Kilburn
Battin Dwyer Kilgore
Becker Ellsworth King, N.Y.
Beermann Findley Knox
Belcher Fisher Kornegay
Bell Flynt Kunkel
Bennett, Fla. Ford Kyl
Berry Foreman Laird
Betts Fountain Langen
Bolton, Frelinghuysen Latta
Frances P. Fuqua Lennon
Bolton, Gary Lindsay
Oliver P. Gathings
Bnw Lipscomb
iuya
Brock Gibbons
Bromwell McCl
Goodell McClor
McCulloch
Broomfield Doodling McIntire
BrotzChan Grant McLoskey
Broyhill, N.C. Griffin McMillan
Broyhill, Va. Gross MacGregor
Bruce Grover Mahon
Burleson Gubser Mailliard
Burton Gurney Marsh
Byrnes, Wis. Haley Martin, Calif.
Cahill Hall Martin, Nebr.
Cannon Halleck Mathias
Casey Hardy Cederberg Harrison May
Chamberlain Harvey, Ind. Meader
Chenoweth Harvey, Mich. Michel
Clancy Hebert Milliken
Clausen Herlong Minshall
Cleveland Hoeven Moore
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CONGRESSIONAL RECORD -HOUSE
Karsten Rogers, Colo. Morse
Karth Riehlman Talcott
Rogers, Fla. Murray Roberts, Tex. Teague, Calif.
Kastenmeler Rooney Nelsen Robison
Kee Roosevelt Norblad Rogers, Tex. TThomson, ollefson Wis.
Kelly Rosenthal Nygaard Roudebush Tuck
Keogh Rostenkowski Osmers Rumsfeld Tuten
King, Calif. Roush Ostertag St. George Utt
Kirwan Roybal Passman Schadeberg Van Pelt
Kluczynski Ryan, Mich. Polly Schenck
Landrum Ryan, N.Y. Pike Schneebeli Wa ts Waggonner
Lankford St Germain Pilcher on
Leggett St. Onge Pillion Schweiker Weaver
Schwengel gel Westland
Lesinski Saylor Plrnie Selden
Libonati Secrest Poa a Wharton
Long, La. Senner Poll Shhort Short Whitener
Whitten
Long, Md. Shelley Pool Shriver
McDade Sibal al Wi li all
McDowell Sheppard Purcell Skubitz Williams
Sickles Quie Smith, Calif. Wilson, Bob
McFall Sikes Quill
n
. Smith, Va. Wilson, Ind.
Ma donald e
c Siler Reid, Ill. Snyder Winstead
Madden Sisk R i
Morgan
Morris
Morrison
Morton
Moss
Multer
Olsen, Mont.
Olson, Minn.
O'Neill
Patman
Patten
Pepper
Perkins
Philbin
Price
Pucinski
Rains
Randall
setts. uuna as it
straddles the entrance to the Gulf of
Mr. STEED changed his vote from Mexico, How many Russians are in Cuba now?
"nay" to "yea."
Mr. The Stennis report says that some sources,
BURTON changed his Vote
" from Primarily exile.and refugee groups, estimate
yea" to "nay." that as many as 40,000 Soviets are now in
Mr. O'nay." , Mr. Speaker, I have Cuba. The subcommittee is of the opinion
a live pair with the gentleman from that the official 17,500 estimate is perhaps a
Ohio [Mr. BROWN] Who is in the hos- mHave all Soviet missiles been withdrawn
pital. If he were present he would have from Cuba? The report says that refugee
voted "nay." I voted "yea." Therefore, and exile reports continue to insist that
I withdraw my vote and vote "present." thousands of caves and underground caverns
The result of the vote was announced In Cuba are being utilized to store and con-
as above recorded. coal strategic missiles and weapons.
A motion to reconsider was laid on the Note the reference to "refugee and exile
table. reports."
a.,,cgiu uusslles nad been in-
GENERAL LEAVE TO EXTEND troduced into Cuba, prior to the receipt of
Mr. PATMAN. Mr. Speaker, I ask the Photographic i"wasdduee to nthOec fabctr th14, ys
at sthe
unanimous consent that all Members intelligence analysts were strongly influenced
speaking on the bill today have permis- by their judgment as to Soviet policy, and
sion to revise and extend their remarks indications that strategic missiles were being
and to include extraneous matter, installed were not given proper weight by
The SPEAKER. Is there objection to the intelligence community."
the request of the gentleman from Then the report continues: "A contribut-
Texas? ing factor to this was the tendency on the
There was no objection, part of the intelligence people to discredit
and
ade the reports of Cuban refugees
gr11
Mr. PATMAN. Mr. Speaker
I
k
,
an
as
d exiles.
unanimous consent that those Members Today, Cuban exiles and refugees insist
who did not speak on the bill have per- that Cuba is reinforcing caverns, storing
mission to extend their remarks in the weapons in them, and that the Soviets are
RECORD on the area redevelopment building - a large submarine base in Cuba.
amendments. There are also reports that Soviet ships
The SPEAKER, Is there objection to are unloading cargo and men at night under
the request of the conditions of Soviet-imposed security. Fur-
Texas? gentleman from ther, the Stennis report says "the intelligence
community does not believe it has sufficient.
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The failure of American Intelligence
 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200240046-6
CONGRESSIONAL RECORD - HOUSE June 12
concrete evidence to estimate any reduction
in overall Soviet military capability on the
island. There is no evidence that any of the
combat troops associated with the four
armored groups have been withdrawn."
Far more significant than shy comment
which we can make is the summary of the
subcommittee's report, which follows:
1. Cuba is an advanced Soviet base for
subversive, revolutionary and agitational
activities in the Western Hemisphere and
affords the opportunity to export agents.
funds, arms, ammunition, and propaganda
throughout Latin America.
2. Assuming without deciding that all stra-
tegic weapons have been withdrawn, there
is the ever-present possibility of the stealthy
reintroduction of strategic missiles and other
offensive weapons, using the Soviet forces still
in Cuba as camouflage and security for the
activity.
3. Cuba serves as an advance Intelligence
base for the U.S.S.R.
4. The potential exists to establish elec-
tronic warfare capabilities based on Cuba.
5. The vital Panama Canal could be the
target for sneak raids originating from Cuba.
6. Potentially, Cuba Is a base from which
the Soviets could interdict our vital air and
sea lanes. It can now be used for the air.
sea, and electronic surveillance of our mil-
itary activities In the Southeast United States
and the Caribbean.
7. Cuba's airfields could serve as recovery
air bases for planes launched against the
United States from the Soviet Union.
8. Advanced Soviet submarine bases could
be established in Cuban ports with very little
effort.
9. The continued presence of the Soviets
In Cuba could require a further reorientation
of the U.S. air defenses.
10. Cuba provides a base for the training
of agents from other Latin American coun-
tries in subversive, revolutionary, agitation-
al. and sabotage techniques.
11. The very presence of the Soviets In
Cuba affects adversely our Nation's image
and prestige. Our friends abroad will under-
standably doubt our ability to meet and de-
feat the forces of communism thousands of
miles across the ocean if we prove unable to
cope with the Communist threat at our very
doorstep.
"A consideration of all these matters serves
to emphasize the gravity of the threat to our
national security which Cuba now repre-
sents," the report concludes.
The Soviets are in Cuba to stay, and the
chance for internal revolt and the overthrow
of the Communist regime Is virtually nil, ac-
cording to those who should know. Had the
Bay of Pigs invasion been carried out with
sufficient force and air power, the threat of
Cuba to our security might not exist today;
but exist it does, and it will not go away by
wishing It away. The Cuban people are not
going to overthrow their Communist regime
for the simple reason that they are virtually
powerless to do so. Therefore, some other
action is necessary.
What is to be done?
We hold that the only way to get rid of
Castro and communism in Cuba Is to throw
them out. We are not qualified to say how
this can be accomplished, but it has to be
done and done soon, or we will find ourselves
embroiled in another full-scale war. Should
we take action against Cuba, Khrushchev
may fight right now, to the last Cuban, but
it is doubtful that he will make war on the
United States until he thinks he can win;
and if his buildup in Cuba and South Amer-
ica is permitted to continue unchecked. then
he will be in a strong position. and our posi-
tion will be vulnerable. The Soviet will make
war on us as soon as they are sure they can
win. We cannot and must not give them
that opportunity.
The time for action 1s now. The Soviets
should be given a time limit to get their
men and weapons out of Cuba; a real block-
ade, with teeth In It, should be set up, and
every possible economic sanction should be
imposed upon Cuba.
Threats mean nothing to the Soviets.
They fear and respect strength and power.
We've got both. Let's use them before it's
too late.
REGULATED INVESTMENT
COMPANIES
(Mr. KEOGH asked and was given
permission to extend his remarks at this
point in the RECORD.)
Mr. KEOGH. Mr. Speaker, this mem-
orandum is submitted in support of a
bill I introduced today-H.R. 6995-an
amendment to subchapter M of the code,
so as to permit regulated investment
companies 45 days, instead of 30 days,
after the close of their taxable years
to mail to their stockholders the various
designations required under subchapter
M. The request is prompted by the
Securities and Exchange Commission's
recent change in its rules to grant these
companies 45 days, instead of 30 as pre-
viously, for mailing to shareholders their
annual reports and financial statements.
Regulated investment companies serve
principally to enable investors of mod-
erate means to secure diversification of
risk and experienced professional coun-
sel in managing their investments-see
Senate Report No. 1021, 86th Congress,
2d session, 1960; House of Representa-
tives Report No. 1080, 86th Congress, 1st
session, 1959. A survey conducted by
the Investment Company Institute in
1961 and 1962 among the approximately
3 million shareholders of its member
companies-the institute's members in-
clude 169 regulated investment com-
panies of the open end type, whose as-
sets comprise an estimated 94 percent
of the assets of all such companies tax-
able under subchapter M: it Is believed
that its members hold over 80 percent of
the assets of all regulated investment
companies, both open end and closed
end, affected by the amendments pro-
posed herein-showed that the median
shareholder had a family income of ap-
proximately $8,500, while the value of
his mutual fund holdings was about
$5.000.
Subchapter M provides a special sys-
tem of taxation for regulated investment
companies and their shareholders. Its
essential feature is that the company
must distribute currently at least 90 per-
cent of its ordinary income, exclusive of
capital gains. If it does the amounts dis-
tributed, as well as any amounts It dis-
tributes out of its realized capital gains,
may be deducted in computing the com-
pany's taxable income. The shareholder
in turn is entitled to treat distributions
out of realized capital gains as long-term
capital gain on his own return.
As part of this system subchapter M
requires the company each year to send
a series of notices to Its shareholders.
These designations indicate the pro rata
shares of the various items of corporate
income and credit the shareholders are
to take Into account directly, on their
own returns, and conclusively establish
the amounts of these Items for purposes
of the shareholders' tax liability. The
code now provides that all of these des-
ignations must be mailed within 30 days
after the close of the company's taxable
year--See sections 852(b) (3) (C), dis-
tributed capital gains; 852(b) (3) (D) (i),
undistributed capital gains; 853(c),
credit for foreign taxes; 854(b) (2), in-
come dividends eligible for credit, ex-
clusion and deduction; 855(c), notice for
dividends declared and paid after close
of taxable year.
This 30-day time limit for mailing
designations was initially adopted in
1942-Revenue Act of 1942, section
170(a). At that time it conformed with
the rule the Securities and Exchange
Commission had previously adopted, un-
der the Investment Company Act of
1940, requiring a regulated investment
company to mail its annual report and
financial statements to its shareholders
within 30 days after the close of its fiscal
year-Rule 30d-1, as adopted in Invest-
ment Company Act Release No. 40, effec-
tive January 2, 1941, 6 Federal Register
74, 1941. Combining the tax designa-
tions and annual reports In a single
mailing makes possible obvious savings
in mailing expense and paperwork, as
well as affording the shareholders the
convenience of receiving all of their in-
formation at one time. Many regulated
investment companies have taken ad-
vantage of this possibility; some have
even included their income tax designa-
tions in the text of their annual reports,
as illustrated by the reports attached
as exhibits to this memorandum.
Effective December 17, 1962, the SEC
has amended its rule 30d-1 to extend
to 45 days the time for mailing reports
thereunder-Investment Company Act
Release No. 3574, 27 Federal Register
11639, 1962. This change was prompted
by the Commission's recognition of the
desirability of allowing more time for
the various companies' independent pub-
lic accountants to prepare the detailed
financial statements which these reports
must include, and of the expenses that
could be saved if less overtime were re-
quired in their preparation and printing.
If the regulated investmentcompanies
are to make use of the Commission's
extension, and are also to be able to con-
tinue the economy and convenience of
making their subchapter M designations
in or with their annual reports, a cor-
responding change should be made in the
time limits of the code.
Extending the time for mailing sub-
chapter M's notices of designation would
in no way Inconvenience shareholders
in preparing their individual tax returns,
nor interfere with the timely filing of
such returns. As already noted, the 30-
day time limit for designations was first
adopted in 1942-Revenue Act of 1942,
section 170(a)-at that time individual
tax returns were due on March 15 of the
following year. Thus for the typical in-
dividual who held shares in a regulated
investment company on a calendar year,
the notice supplying the information he
needed for his return reached him on
or immediately after January 30, some
45 days before the return's due date.
However, since the Internal Revenue
Code of 1954, the due date for indi-
viduals' tax returns has of course been
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