VIETNAMESE POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200140012-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: February 2, 2005
• Sequence Number: 12
• Publication Date: May 25, 1964
• Content Type: OPEN

1964 - Approved For RtitO&KI,W02/10 ? CIA-ffit6B00403A14700140012-0
TONAL -RE
mayors' committees across the land?as sort
of "keepers of the keys" of what is truly great
about Ainerica. Let me explain:
Do you Want to know what! believe Amer-
ica is tripy all about? What our flag means,
flying overhead? Why we have gone to war
three thiees_in our own generation? Then
look closely a the Pieeident's committee,
and at Governors' committees and mayors'
committees.
You Will see for yourself that the work we
do is tied up in something called the equality
of man. -
Our work furthers not just the cause of
the handicapped, but the cause of all hu-
mans; the worth of all hien and all women,
able-bodied end handicapped alike. Our work
doesn't just talk about it, but actually dem-
onstrates the deep truth that indeed all
men are created equal; that indeed all men
are endowed with certain skills and talents;
that indeed all men are fully entitled to hold
their heads high, to lead lives of independ-
ence, to support their families.
Our work has to do with equality.
When you think of the President's com-
mittee, and of this entire movement of op-
portunity for the handicapped, in that light,
you can see for yourself that it is not such
an easy thing to assume the title of "Chair-
man."
I have accepted the 'Chairmanship in all
hu.mility knowing that I will gain strength
from the heritage that Mel Mead and Ross
McIntire left behind them?and from each
and every one of you.
I have accepted the chairmanship because
I cannot think of anything in this world
more worth fighting for than the equality
of man.
When he was alive, Mel Maas had a talent,
actually a touch of genius, for putting his
finger on the most urgent needs of the
handicapped?both present and fulure. You
have my pledge that I shall continue in the
directions to which he pointed.
Be was in touch with the tiines when he
stressed the need to taken action in further-
ing job opportunities for the mentally re-
stored and mentally retarded; in breaking
down au-old prejudices against anyone who
had ever set foot inside a mental hospital;
in Convincing the Nation that retardation
Of the mind doesn't necessarily mean re-
tardation of skills.
I shall continue to stress that need. A
need which was so important to Mel Maas
and to our beloved martyred President John
F. Kennedy.
Joined with others, he urged the elimina-
tion of architectural barriers?those high
stairways, narrow revolving doors and other
thoughtless devices that keep the handi-
capped out of the public buildings of
America. This movement is gaining steam?
largely, / think, because it makes such down-
right good sense. I shall dO what I can to
help build that head of steam.
Mel Xviaas followed Ross McIntire's lead
When he urged" strong State and local action
in furthering Sob opportunities for the hand-
icapped; an approach that looked not to
Washington for the solutions to all problems,
but rather for grassroots resources, in the
communities. He wanted to see stronger
Governors' committees and stronger local
committees as the real shock troops.
I, too, shall do all within my power to give
strength to local action.
He believed in flexibility; in preventing
hardening of the attitudes; in being able to
spot problem areas; in taking action where
and when needed. In this way he met such
problems as airline travel for the handi-
capped, the rights of amputee truckers to
drive across State lines; barriers against han-
dieapped school teachers; and a host of
Others,
I pledge to you the flexibility of a Mel Maas.
He stressed the need to look ahead more
'No. 101 6
than to look behind; to see to it that the
handicapped are prepared for the )ob op-
portunities of tomorrow, rather than the
fast disappearing job opportunities of yes-
terday.
With your help, I shall bring to my job
this same forward look.
Mel Maas pioneered? in the President's
people-to-people program and gave leader-
ship to this exchange of friendship among
those working with and for the handicapped
the world over. He traveled across the globe
in this mission; and it was my pleasure to
accompany him' to several international
meetings where the handicapped were im-
portantly involved.
I shall maintain my long-time interest in
the international scene and shall continue
the work of Mel Maas and Earl Bunting in
people-to-people efforts for the handicapped,
and in other groups with similar aims such
as the World Veterans Federation and the
International Society for Rehabilitation of
the 'Disabled. In. this, I am proud' to be
joined by Mel's lifetime friend, Dr. Frank
Krusen, the new Chairman of the People-
to-People Committee for the Handicapped.
I do want you to know that I hold certain
beliefs about opportunities for the handl,-
capped. Since this is my maiden appearance
before you as Chairman, I want to share them
with you.
I 'believe in ability; in an entire orienta-
tion toward the handicapped that stresses
not what is wrong with them but what is
right with them; that emphasizes not 'dis-
ability but ability; that faces the fact that
the "can-do" in a man's. life exceeds the
"can't-do." -
I believe in the equality of man?and as I
see it, this means a sincere respect for the
differences between men, whether they be
differences of color, of creed, of religion, of
physical condition, of mental condition, or
whatever.
I believe that, just as all men are born
equal, all men are born different?and once
we learn to accept this fact of life, we shall
come to accept the handicapped as our fellow
human beings in the fullest sense.
I believe there is a flame burning within
each of us?some people call it a soul or a
spirit?and that this flame is more important
than the body that houses it.
Let the body or the mind be handicapped,
but let the 'name be free to burn brlghtly:
This is the flame of our civilization, the
flame that makes us men and not animals,
the flame that has given us peace and jus-.
ticsand kindness and mercy and love.
When any man's flame is stifled by
prejudice and misunderstanding ' and re-
jection, the whole world is the poorer. When
any man's flame is allowed to burn brightly,
the whole world is the richer.
There you have the true meaning of our
work. The true meaning of this President's
Committee and of your own Governors' com-
mittees and mayors' committee.
We have a stake in humanity. May God
give us the courage and the strength to meet
the challenge.
HELP FOR STRICKEN ALASKA
Mr. BARTLETT. Mr. President, much
has already been done in and for Alaska
following the March 2'7 earthquake and
the destructive wave action which fol-
lowed. Of course, what has been accom-
plished to date is but a bare beginning.
It will take years to repair the damage
and to build the new Alaska. Much, in-
deed, remains to be done by way of plan-
ning, aside from accomplishment. There
are those in certain circumstances who
suffered grievous losses who can be
11441
helped little if any under existing pro-
grams, and it is they who invoke my chief
concern.
However, the Alaska Reconstruction
Commission, under the chairmanship of
Senator CLINTON P. ANDERSON, Of New
Mexico, is working diligently and con-
stantly with the cooperation of all Fed-
eral agencies concerned, and under the
direction of President Lyndon B. John-
son, to get the big job underway with
the least possible loss of time.
A sensible, illuminating editorial on
this subject appeared May 20 in the
Fairbanks, Alaska, Daily News-Miner. I
ask unanimous consent that it be printed
with my remarks:
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows,:
RESULTS MOCK CRITICS
Most Alaskans are satisfied, grateful
might be the better word, at the pace and
_ amount of Federal assistance arising from
the earthquake emergency. The few voluble
critics on the other side of the fence would
be enlightened, perhaps even silenced, if they
botaered to read the periodic and frequent
reports coming from the Alaska Reconstruc-
tion Commission.
The fifth report of Chairman CLINTON
ANDERSON to President_ Johnson reveals that
financial authorizations and actual work are
moving forward at a fairly rapid clip. Dis-
aster costs have been pared down to $205,-
811,771, and every agency that could possibly
have an affiliation with this type of emer-
gency is hard et work.
One note of gloom in Senator ANDERSON'S
letter to the President relates to the $50
million bond issue authorized by the Alaska
State Legislature. "Bond specialists report
that the State, if it were to try to market
these bonds now, would have to pay an in-
terest rate substantially above the 3.5619
percent rate carried by the most recent issue
of Alaska State bonds," the Senator wrote.
"My personal feeling is that this would be
a most heavy burden which the State can-
not sustain."
We will hear more about th10 when the
legislature meets again next Monday. But
meanwhile, excerpts from the commission's
latest report are very encouraging. Ex-
amples:
The Small Business Administration will
make loans up to 30 years at 3 percent in-
terest for financing new homes for affeeted
owners.
Of 92 million projected total for the Corps
of Engineers recovery activities under Public
Law 875, the Office of Emergency Planning
now has authorized $80,960,200.
In this category, the Valdez program for
repair of water and sewer facilites and debris
removal ($179,400 total) is now nearly nine-
tenths done as compared to two-thirds com-
pleted last week. (Date of this report is
May 8.) Also in Valdez, the project to pro-
vide a temporary barge terminal ($60,700
total) was more than one-third complete at
the writing.
Contracts totaling $698,500 have been
awarded for soil studies in Anchorage, Sew-
ard and Valdez. Jobs like this are character-
ized by one of the Anchorage newspapers
-as the work of "long-hairs" and "so-called
geologists," but history is sure to mock this
current fit of pique.
The SBA has been extremely active out
of its Anchorage office. Applications are be-
ing processed for 58 homes and 113 busi-
nesses. This would add up to nearly $10
million. Home and business loans approved
so far are approaching the million dollar
mark there.
?
Approved For Release 2005/02/10 : CIA-RDP66B00403R000200140012-0
Approv ceiNcertivgiftRA/OnetakEgME2403R000200140012-0may 25
Because of the longer steaming distance
to the Anchorage port. Whittier will be in-
creasingly used as a substitute until Seward
port facilities are reconstructed.
A comprehensive 94-page report finished
in record time by a group of leaders in the
U.S. construction industry, at the request of
the Anderson commission, sheds further light
on the port problem and explains why no
money should be spent on Anchorage harbor
facilities until geological studies confirm that
the area is stable.
Total damage at this port Is still unknown.
Piles were broken and sprung due to a lat-
eral shift of the dock structure. Damage
below low-tide elevation has yet to be deter-
mined.
"This constitutes a very grave situation,"
the construction men reported, "since the
structural strength of the dock possibly may
be seriously impaired."
On the brighter side, the estimated million
dollars of damage to the port area may be
considered to be only $100,000 in replacement
since the port is reported to have carried
earthquake insurance.
Whatever happens there, reconstruction at
Seward and rebuilding of the Port of Valdez,
which is ice-free, will be key factors in re-
storing warted-6 transportation on a fairly
versatile basis.
Tying in the Alaska Railroad with tile
Canadian National Railway to facilitate in-
bound shipments from the mid-continent
would prove another factor in providing ver-
satility, competition and subsequent lower
freight costs, although this is not a subject
in the report at hand.
The Anderson progress report lists a num-
ber of additional progressive steps. Interest
rates on rural housing loans in small com-
munities and rural areas affected by the
earthquake have been dropped from 4 to 3
percent. This program of the Farmers Home
Administration could prove helpful to com-
munities such as Vajdez.
Urban Renewal offers assistance on a larger
scale, with at least three-fourths of the total
cost being borne by the Federal Govern-
ment. The Government has estimated Fed-
eral grant requirements for proposed urban
renewal projects at more than $51
Anchorage would get about half: Valdez, $7
million. These totals could increase.
Aside front the statistics, which in them-
selves are encouraging, for it appears almost
as if various agencies are competing to help.
the whole tenor of the Anderson report sug-
gests that a big job is being done on a hard-
hitting basis with no fooling around.
"Bureaucratic inefficiency" has become a
cliche description of big government these
days, regardless of which political party Is
running the show, but in the cede of the
Alaska reconstruction program this descrip-
tion is largely absent.
This doesn't mean that mistakes haven't
been made, or wont be made, or that there
have been no oversights. Also inequities
exist in arriving at damage or repair costa
which must be corrected.
But as total damage is assessed in a case-
by-case basis, and more and more agencies
pitch in, the total picture?so far at least?
is one of results at a promising pace.
Doubters should keep current with the
weekly reports of the Anderson cornmission,
and the survey of the Alaskan Construction
Consultant Committee, made up of leading
construction industry representative ff of the
Associated General Contractors of America
and the International Union of Operating
Engineers.
SOME COMMUTER RELIEF COMING?
Mr. JAVTIS. Mr. President, the news
that the Rules Committee of the other
body has, after more than a year, finally
sent the Senate-passed mass transit bill
to the House floor is good news indeed
for the beleaguered commuters in our
major cities. I ask unanimous consent
that there be printed in the RECORD at
this point in my remarks an editorial
which appeared in the New York Herald
Tribune on May 23.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
FAIRPLAY TOR THE COMMUTERS
Good mass transportation is what the big
cities need and they aren't getting it. Why?
Because practically all the Government
succor goes to highways for the traffic-con-
gesting automobile. And In this competi-
tion, as New York knows only too well, the
communter railroads have been steadily
losing out.
The whole picture Is out of balance. It
makes no sense to build more roads for the
encouragement of cars and simultaneously
balk at assisting a complementary and effi-
cient form of transit which is so essential
to the great urban centers. For If we put
the commuter trains out of business, the
result can only be more and more automobile
strangulation.
What's needed is equal treatment?namely,
money to preserve and improve service for
the commuters. The proposal for $500 mil-
lion Federal grants to encourage urban mass
transportation is small enough, but at least
it recognizes the compelling necessity. The
Senate passed this bill early last year, and
now at last the House Rules Committee,
under President Johnson's urging, has al-
lowed It to emerge.
We can understand that most Congress-
men from around the country aren't particu-
larly concerned about New York commuters.
But they ought to be. For what is good for
the cities is good for everybody. The health
of national transportation is accepted policy;
that's why highways are built at great Os-
tonal expense. But let's be fair about the
spending. Give the commuters and their
railroads the help that is esseta lel.
VIETNAMESE kJiICY
Mr. MORSE. Mr. President, I ask
unanimous consent that there be printed
In the RECORD an article published in the
morning Times entitled "Six Papers
Banned by Saigon Regime?Premier Also
Arrests Nine of His Political Oppqnents."
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
Six Perms Thuaaran ST SAIGON Reams?Pas-
sum Atm Mumma Marx or His Potarico.
Oprozerrers
SAIGON, SOUTH Virraime, May 24.?Maj.
Gen. Nguyen Khanh's military government
banned six newspapers today and arrested
nine political opponents who demanded the
release of two generals he jailed in his coup
d'etat last January.
Premier Khania's move against the Viet-
namese newspapers followed the banning of
three others yesterday.
Three of the daily papers affected today
were closed permanently. The three others
were put under a temporary ban. One of
those closed was Tien (Progress), which had
just finished a 2-month temporary
suspension.
Copies of Tien were seized throughout the
city because its first issue described General
Khanh's regime as a so-called democratic
government
wrnx RANGES or CHARGES
Charges against the other papers ranged
from libeling government officials to print-
ing morally offensive stories. One paper
criticized the security failure that permitted
Vietcong terrorists to bomb the U.S. aircraft
ferry Card in Saigon harbor earlier this
month.
Another was accused of having sown di-
vision between the people and the army, and
another was suspected of having had finan-
cial support from the followers of the slain
Firesident, Ngo Dinh Diem.
Newspapers in Saigon have a short life for
financial as well as censorship reasons, and
the papers shut down had existed 2 to 109
days. The suspensions left Saigon with
about 50 daily papers.
The Khanh government has closed a
score or more of newspapers for various rea-
sons since he took office, but never so many
at once. Charges ranged from having made
antigovernmeet statements to having en-
dangered security.
NINE MEN SEIZED
General /Martha; political move was di-
rected against nine men from the central
Vietnamese city of Hue who had been agitat-
ing for the release of Maj. Gen. Tran Van
Don, and Maj. Gen. Ton That Dinh. The
generals have been imprisoned in the moun-
tain resort city' of Dalat since January fol-
lowing the overthrow and slaying of Presi-
dent Ngo Dinh Diem last November.
Gen. Tran Van Don was Defense Minister,
and Gen. Ton That Dinh was Interior
Minister in the military government of Maj.
Gen. Duong Van Minh, which overthrew the
Diem regime. But this junta was overthrown
by General Khanh. He imprisoned some of
its officials and permitted Gen. Duong Van
Minh to remain as figurehead chief of state.
The nine men?two teachers, two civil
servants, two businessmen, a student, a
mechanic and a court secretary?were also
accused of having formed a political party
without government permission. Their
party apparently had few members.
They were arrested and flown here for ques-
tioning. Authorities then decided they
should be returned to Hue to see if courts
there would try them for political offenses.
Mr. MORSE. It is an interesting
story on the military dictatorship policies
of the government headed by a tyrant
military dictator whom the United States
Is supporting in Vietnam?I think to our
great historic discredit.
Mr. President, I ask unanimous con-
sent to have printed in the RECORD an
article published in the New York Times
today entitled "Brandt Opposes Ties to
Far East, Asserts Bonn Cannot Make
Commitments in Asia." Mayor Brandt
comments favorably upon the position
taken by France in regard to the situa-
tion in Asia.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
BRANDT OPPOSES TIES TO FAR EAST?ASSERTS
BONN CANNOT MAKE COMMITMENTS IN ASIA
BERLIN, May 24.?Mayor Willy Brandt has
warned against any immediate or large-scale
involvement of West Germany in the Far
East.
He said on his return from a 6-day trip
to the United States that he had told
American leaders that West Germany, be-
cause of its position in the world, could
not undertake commitments with the
United States in southeast Asia.
The concept of the Social Democratic
mayor of West Berlin is of heightened inter-
est because of his position as his party's
chairman and candidate for Chancellor in
next year's general elections.
Be said he had emphasized in the United
States that West Germany's interests were
centered in Europe and had advocated a
broad aid program for Eastern Europe. Ac-
Approved For Release 2005/02/10 : CIA-RDP66600403R000200140012-0
Approved For Fieigagiligkilitt :R:11aPitiD6 'ertati
cording to an -aid "of Mr. Branch, there was
full 8*re-el:nett oh this between Washington
'arid the
is 1 g;T' ShoUidilt 7form" Of
last-7V:a_sti:ptejeeta- ta- "Thabh out beyond
"WeaternIttropie's *dent- ea-Ate-in boundaries,
Mr.,_Bi;aricit:Zaid:,:-Th_Ple.ris he inentioned in-
cludecl,
ere-Stife -13Diver 'network
-'itharithorit- tile Continent.
-.SWaShinitOfif6iterday,-President John-
son' egg iea s1iniTaiprograni Of
sort of' -Marshal plan for rebuilding Eastern
.EnrciPeas Was' reatiled-oilt in-War-torn West-
ern gurpps after World War H. He called
-for -"hilcigai aerbaa 'the- -gulf which has di-
Vida US frOixi Ea-Stern Europe."
M., _ran , _ g atThst 'Far East-
Cautious
'rejeatien'Citati' eitOirbrii SCC-fetarY" befense
. -Robert S. Nicicrairiara-to Win the active sup-
"port of West Germany for the 17-.8. operation
In pouth. Vietnam.,
'fifia 0,pereta,ry of Defense, vibb came to
? Bonn 2'.:Weejcsago on the first leg of his last
trip' to Sa4ori; was iinderStOod to have been
tAisatipeinted- b_y--the- lack of enthusiasm of
, ChanceitOrLiidfig- Erhard's Government.
Mr
t -4" fi onbt that he sided with
Dr._rhard tar
np,dolt.:40411-n-lbfilnited'stitei that
Germany Is no worrd power andthat our
-
?main interest-a; are -in Europe and in the
Worth Atlantic- COrniniiiiiti""-he--Said "-at a
newt cOhfSrenCe-aft'ar his
Whey pew commitments arise antalele-
of vr_o7gio cali-diltrhritiffertaken in a
'larger frainewerli and not bilaterally between
t:lifc?:_111*t St-a. tea and: ourselves alone,? he
s
t?. 6.0ed
and among the 'ruling' Christian -Deiiidcrata
With a'.:Speech-last Week before the Foreign
"4"Fo1iey Association In 11-e*-rark-iii-Whioh he
-,praited,Prasidenfile Gaulle- for hiZ courage
"In thinkina the iiiithinkable."-
"86inetimee- he
e Yi,n,`lriLps
as a Gernr: Whllqlieb only
,
one?" . _ , __ , ,
o ' -'iiir- 'i,Tei-iaeili,'"-1 also
aski*up. 4,1Vpipi`1192114,?,cO.,__ris fee. 11 39ri: havet 41;1 Drew11. e4 -
In ihe ttEgo-ft" ?1-u- --'-doi ria's-tilife'ntiori.?=_
Midale.lb;;ItaV41;41- - jd6 - et On Viet-
nam
r ti.., -g-ch nfii?
Intentions?
United $.,_.._ es-- '--e--.L..-- - mgii-o ged-r-s5 ?
,-,, in Prom ._$aid ,..9 -?!.,:q - -- -; - - ,- '--
,
The French Government believes China's
cooperation must be won if there is to be a
long-term settlement. Such a settlement,
the French believe, must be based on a clear
-Western desire to neutralize the area by
withdrawal of all foreign forces and a desire
to guarantee the neutrality. This, it is
argued, would reassure the Chinese about
American intentions.
These convictions, rather than any wish
to annoy the United States, lie behind French
policy as it has developed since the recog-
nition of the Peiping regime in January.
CLOAK FOR TACTICS SEEN
But the convictions are based On an assess-
ment of Chinese intentions and military
strength that the United States and some
other French allies do not agree with.
American policymakers appear to believe
that the main impact of Chinese imperialism
in Asia will be to the south and southwest
for many years to come. They do not think
the Chinese are prepared to push north and
'viteSt toward Siberia and Soviet Central Asia.
Nor do Americans appear to think China
can be induced to abandon its drive to the
south and southwest by agreements on neu-
trality. On the contrary, the Americans
believe, such agreements might make it easier
for the-Chinese to Cloak their tactics.
- -Chinese communism Is In an expansionist
,stage, American experts believe. The poorly
armed underdeveloped countries of southeast
-Asia, this theory goes, suit the Chinese mili-
tary preference for the use of lightly armed
Infantry trained in hit-and-run tactics.
The final American argument is that once
the former Indochinese area falls, the posi-
tion of every other state in southeast Asia,
pro-Western or neutral, is in grave danger.
-Misconceptions have aggravated the dif-
ferences. The French, scarred by a long and
Uhaueceadul struggle in the same area,
ascribe unreal motives in South Vietnam to
the United States.
SOME FACTS OVERLOOKED
There is a tendency, for example, to over-
look the fact that Americans are involved in
South Vietnam because the Communists be-
gan making guerrilla attacks.
There is also a ;willingness to believe that
the U.S. military involvement is larger thin
it actually is. The French are also dubious
about the connection between affairs in the
peninsula and the fate of Malaysia or the
Philippines.
On the American side, there is readiness
_?to see the French eagerness for neutralization
as a policy of appeasement rather than as a.
result of a sober analysis of how to meet
Chinese fear's of American "aggression" in a
sensitive area. . .
-Both the American and French tioVerii-'
meats may be seeking the same goal. But
until they can agree on what China's aims ?
are, observers suspect, their policies will con-
flict.
Motive.
he.
- --ere ob ectior_tiricie
was or4ere4_01i-e pi'lnted In
follptys ?
[From die New ork Phnes May 5 1641-
tri
;UrrEn STATus FRENCH
CONFLICT ON VIETNAM SAID - 'to STEM 'aoR
CLASa AEPSviaciti'0.
- _
? (13 brThew ddieton) 6
2Y e 'contrast th
American avi Prep
4.--n,pproaches to _prob
R
leMe: 'Meet "`rieu-
trar'.44,08kiia.6 believe, from a. turicia,niental
diff`ere;kqp,,p3Tr.:*,,ta-k,
tentWAge'in,1414. - -
, ? , ? ,? ;
PiQswont Dp, cIpmhp b,p. proposed an inter-
raitionatAnte:ranO, -atte,mied by_ China, .k.?_
rettere n'e'nfilifty- in Laos."'
reflects _ Prcsident's_opinion that
.sottWk_gt, ? ttP49--9,5,:qt:16,11s,eopu
io
cord with , ;A, ?e py?qoticO''-dp.).
_ _ _ -
Te
ttnttedAtA,te,s, :ALope,i4s- to be moving,
tO*4 1 04*9?1:0?-T314-0:rut,
North tetnAni,.toijoi eJongoiaqiis-
tratuii.
ifidVietL,
retard's as China's ahi'
_ ,
natd atiO,sos.,
6600.'62001 012-0 11443
chaMbers of commerce, boards of tride
and other organizations during Small
Business Week to participate in cere-
monies "recognizing the great contribu-
tion made by the 4.6 million small busi-
nesses in this country to our prosperous
society and to the well-being and hap-
piness of our people."
Mr. President, I am sure that all of us
are grateful that the President has seen
fit to emphasize in this significant way
the extremely important and key
role which small business plays in our
economy. This role has always been a
matter of continuing and deep concern
to me. I have been a small businessman
myself, and I know the difficulties which
small businesses face, as well as the great
contribution they can make to the effec-
tive operation and growth of the national
economy. Since coming to the Senate,
I have had the rewarding experience of
being chairman of the Small Business
Subcommittee of the Senate Banking
and Currency Committee. In this posi-
tion, I have had an oportunity, as sev-
eral of my colleagues have, to hear wit-
nesses analyze the problems that con-
front small businesses, and the nature of
the steps which the Government can
take to assist and Maintain small busi-
ness.
The contribution of small firms to our
national economic strength cannot be
overstressed. In the purely economic
sense, it is the small businessman who
provides the most direct and immediate
services and products to consumers. It
is the small businessman who is closest
to the needs of the consumers and who
is most aware of the techniques and
means to satisfy consumer wants.
It is the small business firm which is
also most sensitive to the pressures of our
competitive system. The small business-
man is the one who can make the slight
adjustments in prices, or the minor
changes in quality of product, or the per-
sonalized assistance to the consumer
which will differentiate his product from
the impersonalized mass-produced item.
These are some of the immediate and
direct economic benefits that this Nation
obtains as a result of the existence of
small business firms. But there is, in
-my judgment, a more important and
more fundamental type of advantage
which we derive from the small business
firms in our country. This is the intan-
gible spirit of enterprise, of free initiative,
of aggressive independence that has
-MA& our Nation great.,
It takes real, raw courage to strike
out on your own, to commit your ener-
gies and your savings for the production
of a commodity or service where the
market is uncertain and depends in large
part upon your own success as a bug-
nessman arid, more fundamentally, as a
person. Yet, this is the type of step
which every small businessman must
take, It is _exactly this quality probably
more than any other which has made
our Nation great. The most valuable
contribution made by every small busi-
nessman?including farmers?is spirit,
the spirit of initiative, of courage and,
In a very real sense, of adventure.
Small businessmen also contribute in
another mafor way which is largely in-
CAN SMALL BUSINESS SURVIVE?
_
Mr. PROXMIRE. Mr. President, this
week?beginning today, May 25, 1964?
has been designated by President John-
ten as Small Business Week. In his
proclamation, President Johnson pointed
out that 9 out of every 10 businesses that
sliprtly the needs of the American people
are small and independently owned and
The President also noted that
these small enterprises provide about
? one-third of all goods and services.
They are a broad source of employment
-opportunities, and the development of
- new ideas, new methods, and new prod-
ucts stimulates our economy.
The presidential proclamation urged
11444 Approved FOCING311160DISM/1E0EGAR-EtDPMe011044%3R00020014001 2-0 'Ing 25
tangible. Because of their closeness to
their consuming public and because of
their spirit of initiative and courage,
small businessmen are probably our
most active single group of inventors
and innovators. Yet inventions and in-
novations, along with the spirit of initia-
tive, are the funndamental ingredients
of economic growth. If our Nation is to
expand its ability to satisfy our wants,
these ingredients must be preserved and
cultivated.
Yet, the outlook for small business in
this Nation is bleak. I am deeply con-
cerned about the future of small busi-
ness as we have known it in this country
In the past. There is overwhelming evi-
dence of the decline of small business.
The U.S. Bureau of the Census figures
show that in the great New York metro-
politan area, while retail sales were soar-
ing between 1950 and 1960 the number
of small businesses in the area actually
dropped to one-half in 1960 what it had
been in 1950,
I have felt this concern about the fu-
ture success of small businesses so deeply
that I have recently written a book on
this subject. The title of this book raises
the question: "Can Small Business Sur-
vive?" In the book I attempt to catalog
a number of methods, devices, techniques
and procedures by which small busi-
nesses, despite the overwhelming pres-
sures against them, can survive and con-
tinue to contribute to our Nation. I be-
lieve it is essential that we, here in the
Federal Government, help. At the same
time, it is my strong conviction, bolstered
by meeting and talking with thousands
of small businessmen, both_ in my own
State of Wisconsin and throughout the
Nation, that the last thing most small
businessmen want is subsidy, especially
by the Federal Government. After all,
this is not the type of man who goes into
small business.
At the same time, small businessmen
want and deserve an even break. Frank-
ly, I do not believe they are getting this
even break now. The deck is stacked in
favor of big business financially, man-
agerially, technically, and governmen-
tally.
Where can we be of direct assistance?
Certainly one of the major areas involves
taxation. I think there is no doubt that
there tends to be a net discrimination
against small businesses in the area of
Federal taxation, despite the fact that
there are a number of special provisions
In the law for small businesses. The
reason the net balance is weighted in
favor of large businesses is simply be-
cause there are so many provisions in the
tax law which are of only real signifi-
cance to large businesses. From the
standpoint of legislation, therefore, much
more must be done to take tax recogni-
tion of the heavier business burdens on
small business.
Another major area concerns Govern-
ment procurement. It is so easy for a
Government procurement officer simply
to deal with one large business firm,
rather than recognizing the peculiarly
advantageous arrangements that can be
worked out with small businesses. All of
our Government agencies should be far
more aggressive and imaginative in find-
ing ways in which small business firms
can more effectively serve their Nation
by offering their commodities to the
Government.
A third area which is extremely tin-
portant is to make it easier for the small
businessman to get the long-term money
lie needs with the same ease and at tbe
same low interest rates as big busi-
ness. Government loan procedures in
the Small Business Administration and
the affiliated small business investment
companies needed to be simplified and
streamlined. Congress must also urge
and assist banks and other private lend-
ing agencies to shoulder more of the
burden for small business investment.
Ultimately, the private sector of the
economy must do the job.
Another field concerns the question of
competent management. The large
range of management improvement
programs offered by such agencies as the
Department of Commerce and the Small
Business Administration are, frankly,
underused by the small business com-
munity.
In another area, I feel that. both the
Congress and the executive branch
have fallen down. This has to do with
the appropriate enforcement of our anti-
trust laws. Small business can compete
more effectively if big business is con-
strained within the laws that we have
established on the books.
Finally, we in the Congress must in-
sure that small business, as well as large,
shall have the opportunity and incentive
to go abroad. Export markets are avail-
able and the means by which to serve
these markets should also be available.
A surprisingly large number of small
businesses have shown that they can sell
abroad and make excellent profits in the
process.
Mr. President, I yield the floor.
FOREIGN LOANS FOR ONLY A
THREE-QUARTER8-0E-1-PERCENT
SERVICE CHARGE: ALASKA DIS-
ASTER LOANS AT THE MAXIMUM
RATE OF 3 PERCENT?WHY THE
DOUBLE STANDARD?
Mr. GRUENING. Mr. President, on
Saturday, at the weekly meeting of the
Alaska Reconstruction Commission, Mr.
Eugene Foley, Administrator of the
Small Business Administration, who also
administers the Disaster Loan Act, an-
nounced that he was making loans to
Alaskan earthquake disaster victims re-
payable at 3-percent interest rate, which
is the maximum permitted under the Dis-
aster Loan Act. He referred at this
meeting to the 3 percent as a well-publi-
cized rate, which seemed to be a refer-
ence to my hitherto unsuccessful efforts
to get a lower interest rate for our Alas-
kan victims?people who have lost heir
home and its contents, often even the lot
on which the home stood, who have also
lost their business with its inventory and
still have loans outstanding against these
vanished possessions.
Mr. Foley then went on to say that
the statement that foreign aid loans
were made at a lower rate, namely,
three-fourths of 1 percent, was incor-
rect?that these foreign loans were made
at a rate of 5 to 6 percent. This was
presumably to refute my plea that Amer-
icans should at least get as goOd a deal as
we have been giving and continue to give
to fioreign private enterprise under our
foreign aid program.
I felt obliged to correct this error on
Mr. Foley's part by pointing out, as I had
previously on the floor of the U.S. Senate,
that in the first place, loans were made
and had been made, to the extent of over
$11/2 billion, and were continuing to be
made at three-fourths of 1 percent with
a moratorium of 10 years on the repay-
ment of principal, and although these
were technically made to foreign govern-
ments, those governments merely acted
as conduits for our American dollars and
handed the money on to private enter-
prises in their country. Actually, the
three-fourths of 1 percent, in the case
of foreign loans, is called a service
charge. So really we are virtually mak-
ing grants, because it is very doubtful
whether the principal repayment of
which does not begin for 10 years will
ever be repaid. The, officials who are
making these generous commitments of
our dollars will not be around at that
time.
To be sure, our foreign aid program has
permitted, quite unwisely, foreign gov-
ernments which are the recipients of our
taxpayers' dollars to collect a toll on our
generosity and to reloan the money we
lend them for private enterprise at three-
fourths of 1 percent at reloan rates of
51/2 or 6 percent. In other words, these
foreign governments levy a toll before
they bestow our dollars where our foreign
aid administration has destined them
to go. But that does not alter the fact
that Uncle Sam and our taxpayers are
lending our money at three-fourths of 1
percent, which to date has been denied
the American victims of the disaster in
Alaska, whereas the foreign beneficiaries,
some of whom are anything but friendly
to the United States, have suffered no
disaster.
But, in addition to that, there are so-
called development loans that have been
made under our foreign aid program not
through foreign governments but di-
rectly to private enterprise abroad; and
even the wholly incorrect assumption
that when a loan goes through a foreign
government for private enterprise, it is
somewhat different from a loan to pri-
vate enterprise and therefore establishes
no precedents for similar action at home
Is thereby further refuted. I gave a list
of some of these foreign aid three-
fourths of 1 percent interest-bearing
loans to Mr. Foley on a previous occasion.
After he had finished speaking at last
Friday's meeting, I left the meeting and
went to my office and brought the list
to him again. Here it is, but it is only a
partial list, illustrating the fact that un-
der our foreign aid program loans do go
directly to private enterprises:
Ghana; construction of smelter
project made to Volta Alumi-
num Co.. Ltd
$55,000.
000
Sudan: Sudan American Textile
/d., textile mill
10, 000,
000
Greece:
Dow Hellenic Chemical Indus-
try Ltd., construction of
polystyrene plastics plant....
20, 000,
000
Mobil Oil Hellas A.E., service
station construction
17, 500,
000
Approved For Release 2005/02/10 : CIA-RDP66B00403R000200140012-0