THE CLOUDS OF WAR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200150048-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: December 29, 2004
• Sequence Number: 48
• Publication Date: June 2, 1964
• Content Type: OPEN

~kpprov d For R 20 05101ti1$ g1lA" DP6 60040 ,, 0Q_1 &0
ezxt regulatory bodies for the establishment
p pates hat will earn a -fair return based
0 s marked rice of money slid propel'
tix ayhiO tts t5 course; where ?there are
itktllipie functions at a Government project,
4P v the power 'op4rations should come under
Iation. When this Is done, it should be
pible to refinance the power projects in
ale free market and bring an end to discrim-
,tionamong power" sup ply systems and
tbal customers
a free society should
is tfle al&q&69&
take, and it can be done any time-the Amer-
IQaA, people decide to do it.
Den MANION. Thank you, Mr. Edwin Ven-
nard, for this informative directive in the
fight to save ourpri`vate enterprise system.
Taxes of investor owned eieefric utility
- Ql fltpanfes 1536-61
JIn m Thins of doflarsj
dear
Electric
operating
revenue
Total
taxes
Federal
taxes
State and
taxes
10,25 7
2, 441
1,379
1,062
0,697
2,322
1,332
990
_
9,144
78
2, 192
1
980
1, 271
1
149
921
831
8, 4
8, 064
,
1,858
,
1, 108
750
7,621
1,766
1, 081
685
6,934
1, 641
1,015
626
6,317
1, 442.
875
667
51940
1, 339
824
615
5,426
1,224
753
471
l9bl __
6,005
1,150
719
431
3,127
644
378
266
616
1,011
281
(')
P)
1 Iyot available
N'QeE ed These tax figures apply only to investor-
country's
bwp companies serving 79 percent of the coun
1i no
iI~,ra elncometaxes and in many cases no State pay
cede ~ local
axes, . -: _
Iylr ] 1 TC MV. Mr President, in the
tract which T Y have just inserted in the
EcORDIGtr. ~erinard would have us be-
Stewart II of D611as Power& Light, and
Director J. E. Jonsson of Dallas Power
& Light, serve on the-advisory boar- of
Dallas Freedom Forum, which sponsors
rightwing speeches in that city. Presi-
dent Lynch of Texas Power & Light
helped set up the original Freedom
Forum, directed by Dr. Fred Schwarz,
president of Christian Anti-Communism
Crusade, by providing the forum with of-
fice space in the Fidelity Union Tower
Building. Possibly Mr. Lynch's reports
on his use of the restricted stock option,
so long delayed, got mixed up with Dr.
Schwarz' mail.
Texas Power & Light is one of the
IOU's which shows the film, "Commu-
nism on the Map," produced at one of
the Nation's largest manufacturers of
Bircher visual aids, Harding College,
Searcy, Ark. Many IOU's contribute
regularly to Harding College-Houston
Lighting & Power, for example, has sent
it $1,000 annually since 1955. The
Harding College line-in its visual aids
and weekly free column to thousands of
newspapers, written by Dr. George Ben-
son, the college president, follows the
usual pattern which attracts power com-
pany donations. The rich should be
axedless, and the poor more and-Ben-
son wrote in a recent column:
Any American Who loves freedom and is
willing to work, work, work to protect it
can find intelligent direction and companion-
ship in a John Birch Society group.
All three affiliates of Texas Utilities-
Dallas Power & Light, Texas Electric
Service, and Texas Power & Light-con-
tributed $200 each during the 1961-62
year to the Intercollegiate Society of In-
dividualists. This society was founded
by Frank Chodorov, author of the book,
"The Income Tax-Root of All Evil."
His writings reveal a similar distaste for
public education.
It is impossible to determine the extent
to which the money of Texas electric
consumers is diverted, by utility officials,
into 11. such as those I have
mentioned briefly. This is because key
Texas utilities-as well as some in other
States-disregard the reasonable, if in-
sufficient, reporting requirements of the
Federal Power Commission.
Instead of reporting to whom they
donate, the companies simply report in
the following manner, as taken from the
companies' form 1 reports to the Federal
Power Commission:
Dallas Power,& Light: Account 030, "Donations ---------------------
$351,743.B3
$270,515.59
$230,839.66
Texas Power & Liglht:
Donations" _ _ ____ --------------------
Account 426
78, 907. 79
138, 747.13
73, 861. 56
,
Account 930, "Other expenses --------------------------------------
474,126.00
432,008.00
292, 978.00
Texas Electric Service:
"Donations -------------------------------------------
Account 426
248, 528.09
183, 031.19
'
04, 023.52
,
So Account 930, "General business and civic activities-----------------
Southwestern Public Service:
203,172.67
249,
356.17
194, 455.83
"Donations -------------------------------------------
Account 420
15,102.95
36, 787.09
41, 410. 15
,
Account 930, "Miscellaneous donations-----------------------------
73, 969.67
64,883.93
61,102.67
leye that the electric companies were
digging all that tax money. However, Items entered in account No. 930 are by a privately owned electric utility in Texas,
his book, "The Electric Power Busi- generally considered as a cost of buss- and none has tried it for a long time. When
5401," written in a more candid moment ness, chargeable to the consumer. Items they did try it some years ago, they were
entered in account No. 426 are generally unsuccessful in making a case that would
i196, Mr. Vennard said: stand up in court.
It i the customer who pays these taxesnot allowed as a business expense. But "FAT CATS" WOULD CUT OFF MILK FOR THE
comlany in effect merely acts .as tax this might not hold true in Texas, where HUNGRY
cdector for' the Government, some utilities consider themselves beyond Mr. President, there is something
the pale of regulation by Federal author-
charge about the Socialist ity, and there is no State authority. wrong with an industry which provides
Tanners against the IOU's is `simila'r to The absurd, advertised statement of its leaders with substantial, secret wind-
hq arge macTe 15 years ago-by the late Texas Power & Light that it is a "regu- falls over and above the increasing prof-
Johji 'T. Flynn in his book, "The Itoad lated" company-reiterated by T.P. & L. its which result from lax regulation,
#a" which was condensed by Mead President Lynch when he was president insufficient competition, technology, and
f3>gest and mailed out by the bushel of Edison Electric Institute-was com- a monoply on a necessity for which de-
e 1$'ounctation for Economic Edu- pletely answered by one of the company's mand is unparalleled.
otion` and America's Future, both, lib- former engineers, Lewis B. Walker. In There is something wrong with the
"c11y _financed by electric power com- _a letter last Year to the Austin American, largest industry in this country when its
aiieg. y using this Iced scare tactic, Walker wrote: key officials-with salaries three times
"IT 'tTexl., now, the industry has kept First, it is absolutely false that there is those of the Cabinet officers-plus access 11 public and congressional attention di- any regulation of any character of these to restricted stock options-flock to the
vei'ted,from_itsexorbitant profits and its Texas companies, at the national level. Rates leadership of organizations which put
leaders' secret rakeofts. charged in Texas are not subject to review the Red smear on humanitarian organi-
,Mr, President Texas Tcstr officials, just 'by `the`Federal"lower Commission or by any zations and, in fact, virtually everyone
their counterparts iri- many other other agency of the Federal Government. but themselves.
Second, there is no State utility commis-
tAteS, serve on a variety of organlza sion In Texas to regulate rates charged by Consider, for example, the relation-
tfQns with aims similar to those of the the electric utilities. ship between the IOU's and the South-
Bouthern States Industrial Council and ern States Industrial Council. Three
41manion , Forum Director Clifford B. Second, there is no State utility com- high utility officials serve as vice presi-
,iones of Southwestern Public Service, mission in Texas to regulate rates charge dents of the council. Four high utility
A. ears as a director` of For America. by the electric utilities. officials serve as directors of the council.
tpxIl b'redenck $agemann J`r., of Third- Four of the seven companies represented
Public Service serves as a utilities which utilize the stock option
esters Said Walker
-
ee of the Foundation for Economic there is an archaic state law which gives gimmick. Utility executives give their
n publisher of the Freeman names, time, and money to this organi-
to municipalities the right to regulate all zation which helps lead the hate cam-
public utility rates charged to consumers
ran Y Tt s I?resldeiit off VV Lynch of within their corporate limits. (But) no city paign against UNICEF, accusing the
"T"exas l S Q w e r , s L tp x b n O,y t N churches, Sunday
 Approved Fo
~2fl1~0'I10 CIA-RDf'66BoO4 2 x'56648-0
opeft ng w'tt~l a powerful propaganda
i
t
s
eiio f r the worldwide commun
f` children the world over
h ye receive mill and oilier supple
~i~ fo rpm' Cam" In its first
15 years more than 148 million children
alit young adults were vaccinated
against tuberculosis in programs aided
by MC>;'t . More than 17 million
iiOthe-'s and-r children were cured of
yaws, a disease of tropical sores. Al
11i68t 10 million victims of trachoma and
Ocut. e conjunctivitis were'-saved from
possible blindness. About X100,000 per
sons were treated for leprosy, 30 million
,i rotected from malaria.
TN CEF and its volunteer workers in
this country and abroad have a proud
iCeooi in relieving human misery. But
the fat cats of the Isis materially aid
In the insidious campaign to cut "off the
the vaccines, the nurses and doc-
tors
errs some of the church leaders
Iio wonder: where the opposition to
I ell,. from could use as their
text tie headlines and axioms which, ap-
pear in some of thef texas power compa-
ziies' institutional advertisements "Hu-
1nd11 lzfe-Gift of God or pawn of man?"
"Are l=lonorand integrity `out of date'?"
"`Vork for oqual oppo"rtunit" and' justice
for aai men"
Ta .'cz > i s DI' ' A
Mr.: SMA'1'I4f3S. Mr President, in
the iami Herald of Sunday, May 31,
appears ari article by john S Knight,
,publisher of one of our ration's most out-
ktanding newspapers
i r;,,I~xxight, in this provocative column,
deal 1ith the somber and .perilous sit-
itl8tiori in so.utheastAsia. Published over
the Memorial Day weekend-a time
*hen,we ,pay tribute to our war dead
who gave their lives to preserve our Re-
piblic Mr knight's remarks give added
anti insight into the predica-
g
fle~,'it1n
niellt we now find ourselves in 8,000 miles
roz?a cur~9ers
'fig ar Ic e is deserving of the most
thoughtful consideration of all Ameri-
C8Ii$ 4 cI X,_therefore, ask that unanimous
Cop t be given for its rinsertion$ in the
There being no objection,. the article
w~ ordered to be printed in the RECORD,
as ollow
more of our youth may soon be joining
them in eternal rest.
And-one may ask-why and for what?
JOHN S. KNIGHT.
THE 46TH ANNIVERSARY OF THE
_ _ I130El. NDENCE OF ARMENIA
Mr. KENNEDY. Mr. President, May
28 marked the 46th anniversary of the
independence of Armenia. It was with
great hope and elation that, after five
centuries of foreign rule, the independent
Republic of Armenia was declared and an
ancient Christian nation was reborn.
Although this long-awaited and ric>ily
deserved freedom was out tragically
short, the Armenian people courageously
-hail their 2 brief years of independence
in this century and carry on in their
,
uilli ` teii d tlp~t nir Tile objectives These are strong words. But William s. hearts the will to be free again. It is in F, , 11Z ~ t17Ili tr inn s writes Edwin hire as one of _L n?don J h n's closest great tribute to these brave people and
A Iahey e ief ~pcq l[tpdre ` use f /01ili w6L 3ROW2@Q~11 04iBoOancestors that we ob-
Washiogton Hureau, "President Johnson will talking about. serve Armenian Independence Day here.
vas 'wepattribute to the memories of
"these who gave their lives on many battle=
fieldsrreserve this ? republic, our Nation
is pace again perilously poised upon the
bxln`k' of war,
In the past, our sons have fought to keep
the , V aiori intact to save the world for
d ;icy to repulse mower drunk Hitt ler.
Ww>lr, i pros ect will inspire few pa-
'trriptle slogans -and cause no bands to play.
'1"he,, 9rt rct, turns, jpon no. precious prin-
ciple nor code of ideals
If, it cones, lour participaion must be
credit 1 to inud lsl ca l.eci diplomacy which
lriyolved this ep intxy in the
pursuit of
has
lie forced'into a e'clsionto send V.S. troops a United` tates'is headed for military
across South Vietnam into Laos, in a belated intervention in Laos unless the Communists
effort to preserve or restore a neutralist gov- back down.
ernment set up by international agreement AND NO "PRIENns"
2 years ago." The appalling fact of this crisis Is that
If Lahey is right, this could mean direct neither SEATO nor the United Nations is
confrontation with Communist China and making any contributions to its resolution,
its countless millions. "Uncle Sam will be SEATO was formed In 1954 as a collective
standing-there,"-says Lahey, "with a chip on
his shoulder."
In such an event, the question of whether
our allies in the Southeast Asia Treaty Or-
ganization will be standing with us is left
to your imagination.
HOW IT ALL BEGAN
Our involvement in southeast Asia began
in 1946 when France reasserted her claim
over her former colonies in Indochina.
The Vietminh, who had organized the
peasants in fighting the Japanese were at
defense pact under the aegis of the late
Secretary of State John Foster Dulles. Its
members are the United States, Britain,
France, Australia, New Zealand, the Philip-
pines, Pakistan and Thailand. Yet the
United States has carried the entire burden
of helping South Vietnam hold off the Com-
munists.
And when Ambassador Adlai E. Stevenson
palled upon the United Nations for a "border
control force" to patrol the frontier between
South Vietnam and Cambodia, he was
the same time seeking independence from spurned by U.N. Secretary General U Thant.
the French. In attempting to explain his position at a
Fruitless negotiations finally led to war
and the United States sided with France, our
long-time ally. Through 1953, our aid to
France in Indochina averaged $500 million
annually. In 1954, it was $885 million.
Despite this assistance from the 'United
States, the French lost the war in 1954 to
the Vietminh guerriilas who by that time
were being supported by the Chinese Com-
munists.
With the signing in the same year of a
cease-fire accord at Geneva, the Communists
took control of Northern Vietnam. The 39
provinces south of the 17th parallel com-
prise what is now South Vietnam.
Laos and Cambodia, once under ench
control, are independent States. In Laos,
continuing pressures from the Communists
led torts neutralization two years ago under
a government `headed by Prime Minister
recent press conference, U Thant said the
United Nations was like a growing child
which could accept a 10-pound burden but
not one of 200 pounds.
Mr. Stevenson replied that he confessed
to some bewilderment. "A situation threat-
ening peace and security is brought to the
U.N. with an urgent plea for help," said
Stevenson, "and then it is argued that the
solution lies outside the United Nations.
So it appears that if President Johnson in-
tends to do "whatever may be necessary to
save southeast Asia," the United States will
stand alone, unaided by friends or allies.
THE TRAGIC QUESTION
Our late President once told me that we
were overcommitted in southeast Asia and
he could envisage no easy solution.
-This was John F. Kennedy's quiet way of
saying-without blaming his predecessor-
Souvanna Phouma - that he had inherited a frightfully difficult
It is this area's neutrality which is now. -problem which was causing him deep dis-
being violated by the Communist forces. tress.
It is In this politically unstable area where The fact is, however, that the United
the United States is now considering unila-
teral military action in a major display of southeast Asia power struggle. But when
force to show the Communists we mean John Foster Dulles was the architect of our
business. foreign It was the
If President Johnson makes ,the, fateful policy, popular though
decision to occupy Laos, we risk another `"mistaken view w that the United States was
llorean-type war with the Chinese .. Loin- somewhat responsible for "defeating com?-
munists. - monism everywhere."
NO BACKING DOWN The late Mr. Dulles sought to shore up
the free world with a series of collective
According to Columnist William S. White, defense pacts.
who once wrote: "I have intimately known But our allies--particularly the French and
Lyndon Johnson as I have never known any the British-chickened out in South Viet-
.other public or private man," the President nam and have actually aided the Commu-
?has committed the United States, with full nist cause in Cuba.
awexenes of all possible implications to do As we look with reverence upon the graves
,whatever may be necessary to help the south- of our hero dead and contemplate their sac-
east Asians resist Communist assault as long ,,,,,,,+ .... ........,,,.... +,,,.,,- :+ i.. --
as Ithey- continue to ask our help.
Mr. White goes on to say that the Presi-
dent "did not undertake this pledge lightly.
He will never withdraw it, election or no
election,, just as he will not withdraw the
15,000 American troops who now stand just
back 'of the fighting line in South Vietnam.
Of all this, those who have seen him of
late have no doubt."
-In stating that it is the Asian Communists
who have repeatedly broken their promises
for peace in both South Vietnam and Laos,
-Columnist White says they are totally wrong
in believing that American administrations
will never go all the way in an election year.
Mr. White explains that this assumption
"wholly misreads the President's character,
one facet of which is the conviction that
the worst sin of any leader is to fail to lead
in crisis."
He adds that the prospect of an American
election this fall "will not in the smallest