CHANGED REGULATIONS IN REGARD TO FOREIGN SHIPS TRADING WITH CUBA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200170136-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: January 3, 2005
• Sequence Number: 136
• Publication Date: January 23, 1964
• Content Type: OPEN

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196.4 CONGRESSIONAL RECORD - SENATE 1009'
be provided in this hearing record by expert
witnesses. Hopefully the subcommittee can
hear from the Secretary of Labor on this
point.
Two existing studies by the Office of Man-
power, Automation and Training are most
relevant. I submit these studies for the
record, Mr. Chairman, and suggest they
would be useful material for all of us.
An able member of the Judiciary Commit-
tee, the. distinguished senior Senator from
Hawaii, HIRAM FONG, also has concerned him-
self with the economics of immigration. His
eloquent and well documented remarks in
the Senate last August were a distinct serv-
ice to factually presenting the national eco-
nomic values of immigration reform.
5. TO PROVIDE A CONTINUING AND FLEXIBLE
AUTHORITY FOR THE ADMISSION OF REFUGEES
All over the world people are on the move-
fleeing oppression and tyranny. The steady
trickle of escapees into Western Europe, the
flight of Chinese into Hong Kong, and the
Jewish exodus from north Africa, all of these,
immediately come to mind. These are ex-
amples 'of the need for a continuing and
flexible authority for the annual admission
of reasonable numbers of the world's home-
less refugee.
A continuing authority to admit refugees
would provide a needed instrument of our
foreign policy, and be a true reflection of.
all America's concern for the homeless and
oppressed.
Just a note on the Cuban refugees. In this
country: Their presence here is a new ex-
perience for America. It is the first time
America is a country of first asylum for such
a large group 'of refugees. The usual con-
cerns associated with a-sudden and abnorr
mal influx of new people have not materi-
alized. The successful resettlement program
for Cuban refugees demonstrates the Nation's
capacity to absorb new arrivals-even under
emotionally charged and trying circum-
stances. This is an experience that clearly
speaks for greater flexibility in planning our
policy for admission of refugees.
There are very sound moral and national
interest reasons to abolish our national
origins immigration policy.
The sponsors of immigration policy reform,
and citizens throughout the country, seek a
law speaking the spirit of welcome that is
American history.
We seek a law which-treats the people of
all nations as worthy individuals in the fam-
ily of man.
We seek a law which reflects our belief in
the importance of family unity-especially
for those hundreds of American citizens and
residents now,separated from parents and
children.
We seek a law to facilitate the entry of spe-
cial skill immigrants in the interest of na-
tional development and growth.
We seek a law which provides a continuing
and flexible authority for the admission of
refugees from tyranny and oppression.
We'seek a law which enhances our Na-
tion's standing with the rest of the world.
REFORM CHANNELS
Mr. Chairman, both of the bills you and
Senator KEATING and others in Congress have
proposed would accomplish the objectives set
forth in this statement. They do offer alter-
native methods of achieving the abolition of
the present national origins'system of select-
ing immigrants and for setting new priorities.
Considerable time has elapsed since the
introduction of these bills. During this pe-
riod I have rather concluded that the long-
term best interests of, our country would be
served by enactment of S. 1932, the bill
carrying out the legislative recommendations
in the President's immigration message to
Congress last year.
I would like to offer for the record a
;ection-by-section analysis of that bill.
3riefly, the bill reduces each of the present
national quotas- by 20 percent a year until
they are erased, thus releasing quota num-
bers to a pool to be distributed on a new
priority basis.
First admitted will be immigrants with
skills and talents urgently needed in this
country. Second priority goes to relatives of
American citizens and residents. Parents of
American citizens are afforded nonquota
status.
Natives of no one country can take more
than 10 percent of all quota numbers, au-
thorized in any year.
By Presidential action 20 percent of the
annual pool numbers can be reserved for the
benefit of refugees.
S. 1932 provides for a commission of seven
members to advise on the reservation of
quota numbers, and envisages close coopera-
tion between Congress and the executive
branch.
S. 1932 does not seek to admit significantly
larger numbers of immigrants than actually
have come to America in recent years. The
primary objective is changing the method of
selecting new arrivals.
S. 1932 does not eliminate the health, lit-
eracy, security, and public charge screening
that each prospective immigrant must pass;
Reports of study' commissions are usually
laid aside, especially after the interval of 10
years. But today, more than ever, the his-
toric 1953' report of President Truman's Com-
mission on Immigration and Naturaliza-
tion-"Whom We Shall Welcome"-is valu-
able for this deliberation. The report's
guidelines and recommendations for a ra-
tional method of selecting immigrants are
relevant to our needs today. They have a
direct bearing on the proposed bill, S. 1932.
Members of Congress and the public at large
will find it a useful and stimulating
document.
In closing we should remember a state-
ment from President Truman's veto message
to the Congress on the act of 1952. "I am
sure," he said, "that with a little more time
and a little more discussion in this country,
the public conscience and the good sense of
the American people will assert themselves
and we shall be in a position to enact an
immigration and naturalization policy that
will be fair to all."
President Eisenhower has spoken similarly.
President Kennedy and President Johnson
have set us on the road to reform.
I urge this committee to report favorably
a bill that meets the objectives 36 Members
of the Senate have already endorsed in their
sponsorship of the bills before you.
I believe the Congress can this year enact
an immigration statute which speaks a wel-
come to the immigrant in the spirit of broth-
erhood and justice and, as President Johnson
put it so understandably, as a nation of
immigrants we have every right to ask one
seeking admission to our country, "What can
you do for the country?"
But I would like to see the fellow get up
here to defend the present question which
is addressed to the applicant, "Where were
you born?" That just does not add up, and
if any American would take a minute to
think about it he would agree, and I know.
that these.hearings will be enormously help-
ful in persuading every American that he
really ought to take the time to think about
this. Some place down the line some prede-
cessor of his did knock at the door. Some of
them turned out bad and some of them have
turned out good. But, on balance, we be-
came a great nation. But we are not so
great that we should ever think that there
are not peoples in remote corners whose
names we cannot pronounce, who perhaps
do not know their own parents, who could
not contribute enormously to this society;
and time runs out on us in this area as it
does in so many others.
It is not an easy area for a politician to
operate in. The hard truth is, I suspect, that
it is bad politics in the short haul, because
even though those who have relatives over-
seas are nontheless gunshy of a discussion
that might open the door to somebody to
displace him from his own job.
As I suggest, there is an answer to this, too.
But those of us in the Congress with the
responsibility to act are charged with the
responsibility to act in areas that are polit-
ically unprofitable as well as those that are
politically profitable, and so long as we are
permitted to be here, the obligation is heavy
on each of us, I think, to step up and adjust
this immigration law.
I appreciate very much this opportunity to
be heard.
RECESS UNTIL 2 O'CLOCK
Mr. KUCHEL. Mr. President, I move
that the Senate stand in recess until 2
o'clock p.m.
The motion was agreed to; and at 1
o'clock and 19 minutes p.m., the Senate
took a recess until 2 o'clock p.m. the same
day.
At 2 o'clock p.m., on the expiration of
the recess, the Senate reconvened, when
called to order by the Presiding Officer
(Mr. KUCHEL in the chair).
Mr. MILLER. Mr. President- -
The PRESIDING OFFICER. The
Chair recognizes the Senator from Iowa
as acting leader of the minority. How
much time does he yield to himself?
Mr. MILLER. Mr. President, a par-
liamentary inquiry.
The PRESIDING OFFICER. There
are 65 minutes remaining under the con-
trol. of the minority, and 55 minutes un-
der the control of the majority.
Mr. MILLER. Mr. President, a par-
liamentary inquiry.
The PRESIDING OFFICER. The
Senator from Iowa will state it.
Mr. MILLER. Is the Senate operating
under a consent agreement requiring
germaneness?
The PRESIDING OFFICER. The
Chair is unaware of any rule of germane-
ness which would restrict the Senator's
remarks to a relevant subject.
.Mr. MILLER. Mr. President, I yield
myself 5 minutes from the time under
the control of the minority leader, and
5 minutes from the time under the con-
trol of the majority leader.
Mr. BYRD of West Virginia. Mr.
President, I wish to suggest the absence
of a quorum.
The PRESIDING OFFICER. Does the
Senator from Iowa yield to the Senator
from West Virginia, for the purpose of
suggesting the absence of a quorum?
Mr. MILLER. Yes.
Mr. BYRD of West Virginia. Mr.
President, I suggest the absence of a
quorum.
The PRESIDING OFFICER. The
clerk will call the roll.
The legislative clerk proceeded to call
the roll.
Mr. MILLER. Mr. President, I ask
unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
FOOD-FOR-PEACE PROGRAM
Mr. - MILLER. Mr. President, some-
time during this second session of the
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CONGRESSIONAL RECORD - SE-NATE January 2.
88th Congress, we shall be weighing the
advisability of extending legislation to
authorize Federal funds for Public Law
480-better known as the food-for-pence
program-beyond the expiration date of
December 31. It vrill be an issue fraught
with controversy, prompted by contin-
ued evidence of either mismanagement
or misguided policies. I hopefully sug-
gest that Congress will receive :a full ac-
counting of the more than $10 billion of
food and other farm products either do-
nated or sold to foreign countries since
the program's inci ptlon.
All of us are femiiiar with the news
reports dwelling on the diversion of near-
ly $30 million in feed grains to Austria;
the unexplained Loss of $100 million in
grains scheduled :'or Colombia, Turkey,
and Vietnam; the purchase of $70 mil-
lion in salad oil and shortening-mainly
soybean oil-which was shipped in
faulty containers and was permitted to
turn rancid in various warehouses around
the world. Clear-cut explanations should
be provided Congress.
But, Mr. President, we should also be
furnished answers to another question:
How frequently are our food-for-peace
policies being dictated by purely politi-
cal reasons?
The basic reason for this question Is a
somewhat startling article which - ar
peared in the New York Times of Janu-
ary 19. It relates how the United States
has approved the granting of credit-
through diversion of proceeds from sur-
plus wheat sales-to a New Orleans de-
veloper in Paraguay. The developer,
identified as Jim McRoberts, intends to
establish a large cattle ranch with the
credit of $750,000. The report indicated
that the ranch is to be the site of a new
colony of 75 American settlers.
The arrival of the colonists reported-
ly surprised both American Embassy and
Aid for International Development of-
ficials In Paraguay. But this apparent-
ly has not been the only surprise for
them.
Let me quote pertinent passages from
the Times article:
Although officials of the U.B. Embaa y
and the Agency for International Develop-
ment here are maintaining silence on the as-
sistance to Mr. McRoberts' ranch project,
reliable souroes say that they flatly opposed
the loan. They were overruled by Wash-
ington.
One U.S. official In Asuncion summed up
the granting of credit to Mr. McRoberts'
project as "strange and discouraging."
Judging by the comments of U.B. citi-
zens here, it is evident that they feelsome
political pressure was brought to bear to
influence Washington's decision on credit to
Mr. McRoberts.
The loans require the borrower to meet
q number of requirements before credits are
advanced. But US. officials-who are skeptical
or disapprove of the loan say far better use
could have been made of the money in help-
ing Paraguay, whkh has one of South
America's lowest per capita income rates.
Yet the critics ar.s not speaking out be-
cause the decision has been made by im-
portant Washington officials.
Mr. President, just how will this de-
cision affect us, here in the United
States? Mr. McRoberts will raise cattle,
which he then could sell to the meat ex-
porting companies which ship .beef to
the United States. And this will become
easier in view of proposals by Washing-
ton officials to set up in Paraguay
United States-approved facilities to en-
able increased exports to this countrs.
With the U.S. producers virtually on
the ropes, because of the loss In income
stemming In part from unlimited beef
and veal imports, we are now setting out
to undermine them even more.
Just who are the "Important" Wa.ch-
ingbn officials who overrode our repre-
sentatives in Paraguay? Are there
similar cases, of which we are not awa-e?
I believe this latest development in
our food-for-peace program requires In-
vest:.gation. The questions must be itn-
sweied to the complete satisfaction of
every Member of Congress.
I ask unanimous consent that the arti-
cle, entitled "Paraguay Colony Sl,irs
Complaints," be printed in the RECtnn.
There being no objection, the article
was ordered to be printed in the RECCaa,
as follows:
PARAGUAY COLONY STIRS COMPz,Axwvs-FELT
Mt,veo FROM TExAS so U.8 -Axn>m RAircH
Sr'E
ASONCrdN, PARAGUAT.-A controversial
project In northern Paraguay aided by the
U.S. Government has turned out to be the
site for a new colony of 75 American settlers.
The group, consisting of 16 families, .Gas
flown In from Texas a few weeks ago, Their
belongings are en route by ship.
US. sources here describe the settlers as
members of a Protestant sect who frequerctiy
have opposed education of their chiidrer in
pub] is schools.
Jiro McRoberts, a developer from New
Orleans, brought the rural group to the rcew
property. He intends to develop a large
cattle ranch. according to US. sources h are.
The amount is estimated at about $76i0,-
000, but the credit will be In Paraguayan
currency.
Although officials of the U.S. Embassy i,nd
the Agency for International Development
here are maintaining silence on the ass st-
ance to Mr. McRoberts' ranch project, re-
liable sources say that they flatly opposed
the :.can. They were overruled by Wash-
ingtc n.
VAST AREA BOUGHT
Mr. McRoberts, operating as Pan Western
Znte_'prlses, has bought hundreds of thou-
sand; of acres of potential cattle-grazing
land near Puerto Mlhanovich, 850 miles up
the Paraguay River from Asunctdn.
He applied for credit under a U.S. pro-
gram that permits some of the proceIda
from surplus wheat sales is Paraguay to be
loanfd to U.S. enterprises hero as a means
of helping the economy.
The officials who opposed Mr. McRoberts'
plan said they doubted that it would help
Paraguay. The arrival of the colonists a ir-
priseti both Embassy and AID officials.
One U.S. official in Asuncidn summed up
the granting of credit to Mr. McRoberts'
project as "strange and discouraging "
Under U.S. Public Law 480, surplus V.S.
wheat Is sent to Paraguay on a 20-percosnt
grant basis, the remainder being sold by .he
Paraguayan Government for payment In
Paraguayan currency. Some of the proce.sds
from the sales help pay US. Embassy cants,
some go toward mutually approved put,lic
development projects in Paraguay, and a
small percentage Is set aside for loans to
US. companies here.
POLITICAL PRESSURE SEEN
Judging by the comments of US. citizens
here. It 1s evident that they feel some politi-
cal pressure was brought to bear to inf u-
ence Washington's decision on credit to ldr.
McRoberts.
Paraguay's most important export Is motat
and much of it goes in the form of smal
cans of beef to the United States.
Under a proposal recently made in the
United States. Paraguayan meat export
could be increased considerably. This play
calla for the setting up of U.S.-approved fa-
cilities here that would allow Paraguay tc
send the cooked beef meat in bulk to the
United States. At present cooked meat en-
tering the United States has to be recooked
there as double protection against hoof-and-
mouth disease. The new plan would dis-
pense with the need for recooking, thus per-
mitting tastier meat to reach the consumer
and resulting in increased sales.
The principal meat exporters in Paraguay
are the International Products Corp., which
is U.S. owned, the British Liebig Co., and a
Paraguayan company.
Mr. McRoberts, with his own funds and
with the U.S. loan, apparently has taken
over two vast ranch and grazing properties
and intends to raise large herds. Presum.
ably, he could then sell to the meat export-
ing companies.
The loans require the borrower to meet a
number of requirements before credits are
advanced. But U.S. officials who are skep-
tical or disapproe of the loan, say far better
use could have been made of the money in
helping Paraguay, which has one of South
America's lowest per capita income rates.
Yet the critics are not speaking out be-
cause the decision has been made by Impor-
tant Washington officials.
Supporters of the project say it could stim-
ulate development of a remote undeveloped
CHANGED REGULATIONS 'I RE-
GARD TO FOREIGN SHIPS TRAD-
ING WITH CUBA
Mr. Mfl.rM;,, Mr. President, some
serious charges have been leveled at the
State Department and the administra-
tion by the maritime trades department
of the American Federation of Labor
and Congress of Industrial Organiza-
tions. The charges are deserving of ar
answer.
According to the New York Times o:
January 12, Paul Hall, president of thi
department, has sent to Secretary o:
State Dean Rusk a telegram of protes'
relating to "wldtewashing effects of re-
cently changed Government regulation:
on blacklisting foreign ships that tradr
with Cuba."
The charges, the Times says, were an-
nounced in December. They provide
"that a vessel that has been chartered
for trade with Cuba since January 1
1963, can be removed from the blacklist
if her owner gives assurances that other
vessels owned by him and still active in
Cuban trade will stop serving the island
upon completion of their charters."
Mr. Hall claims that the amendment
only serves to "whitewash" vessels pre-
viously blacklisted by the Government
for trading with Cuba.
The number of ships which could be
affected by this relaxation of policy I,
considerable-196, according to the
Times.
I feel that a full explanation of the
effects of these changes in regulation
should be furnished. With free-worlt
trade with Cuba, as pointed out in th
Davenport, Iowa, Daily Times, on Janu
ary 9, estimated at $230 million, it ha
a strong bearin?c, on our policy with othe
nations still trading with Cuba.
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`6 CONGRESSIONAL RECORD - SENATE 1011
I ask a lanimous consent to have Spain has been cautioned that her rap- all cases represented a drop over previous
printed in the RECORD the articles, idly expanding economic relations wjth Fidel figures.
"Maritime Labor Hits Cuba Policy" and Castro's regime could jeopardize foreign aid
"United States Fights World Trade With from the United States. Mr. MILLER. Mr. President, apropos
Red Cuba." A U.S. law forbids aid to countries dealing, of the articles which T have just placed
with cubs
nd
, a
new regulations recently vAwe in the RECORD, I ask unanimous consent
There being no objection, the articles
issued to discourage non-Communist ship- that the lead editorial published in the
were ordered to be printed in the RECORD, owners from taking part in trade between Detroit Free Press on January 11, 1964,
as follows: Cuba and other countries. entitled "Europe Knocks Down Our Wall
[From the New York Times, Jan. 12, 1964] Spain, however, maintains that she has Around Cuba," be printed in the RECORD.
MARITIME LABOR HITS CUBA POLICY-CHANGE historical and cultural ties with Cuba, and
IN U.B. BLACKLISTING RULES FOR SHIPS also has a need for trade with Cuba. Spain There being no objection, the editorial
SCORED further contends that good relations. with was ordered to be printed in the RECORD,
Cuba are necessary in the interests of about. as follows:
The Maritime Trades Department of the 40,000 Spanish citizens now residing in Cuba. EUROPE KNocxs DOWN OUR WALL AROUND
Labor Federation said last week it would try The United States has made no formal pro- CUBA
to alevelo the positive
vepolicy next month
re- test to Spain but strong pressure has been one of President Johnson's most delicate
de with g applied through diplomatic channels. tasks seems likely to be conducting a retreat
Gently changed Government regulations on_
said he had sent. a telegram of protest to million in Export-Import Bank loans dur- worth of buses and spare parts tof Cuba puts
Secretary' of State Dean Rusk. The depart- Ing the next several years. - a strong spotlight on the dilemma confront-
meat is a group of 30 international or na- It was included in a September agreement ing him.
tional unions in the American Federation of extending for 5 years the 1953,treaty under It came to a head recently when the trans-
Labor and Congress of Industrial Organiza- ' which American air and naval bases in Span- ' port ministers of 10 European countries met
tions, They have an aggregate membership ish territory were authorized. to denounce the blockade as interference.
of 450,000. The United States has long sought. to get More than that, they urged the owners of
The changes, announced in December and the non-Communist World to cut down on vessels under their flags to pay no attention
known as an amendment to National Security its dealings with Cuba, and has succeeded to a U.S. Maritime Commission demand, and
Action No. 220, provide that a vessel that has to a great extent except in the case of a few invited Japan to make common cause with
been chartered for trade with Cuba since nations such as Japan. ' them.
January 1, 1963, can be removed from the Total free World trade with Cuba was esti- Britain went even further. It gave British
blacklist if her owner gives assurances that mated at $1.3 billion in 1959 but has dropped vessel owners formal instructions to disre-
other vessels owned by him and still active Off to less than $230 million, according to gard the Commission's demand. Also, the
in Cuba trade will stop serving the island most reliable figures now available. issue has been up in Parliament and Is ex-
upon completion of their charters., On the other hand, Cuban trade with the petted to be on Prime Minister Douglas-
Ships that call at Cuban ports are barred Communist bloc has risen rapidly from vir- Home's agenda when he confers with Presi-
from carrying U.S. Government-financed tually nothing to more than $1 . billion a dent Johnson.
cargoes. year. The figure Includes large supplies of . What the Commission wants is a full dis-
WHITEWASH IS CHARGED military equipment. closure On vessel movements to Cuba. It
According to the latest Government data, JAPANESE TRADE would be used to enforce an edict barring
from U.S. ports all the ships of any owner
a total of 196 vessels aggregating 1,517,287 Figures compiled in mid-1963 by the State ' who has let so much as one of them take
gross tons have called at Cuban ports since Department, Commerce' Department, the proscribed cargo to Cuba.
January 1, 1963. The fleet includes 59 British United Nations and other agencies showed Should Japan join the 10 European na-
53 Greek, and 41 Lebanese vessels, Japan's trade with Cuba in 1962 at $46.4 mil- tions in refusing to go along with the Mari-
In his telegram to the Secretary of State, lion. This compared with $36.1 million in time Commission, three-fourths of the
Mr. Hall noted that the amendment tended 1961. world's merchant tonn
to whitewash vessels blacklisted age would be involved.
previously Most of Japan's trade wtih Cuba consisted Conceivably, as time went on, we could find
by the Government for trading with Cuba. Of sugar purchases. Japan has been shipping ourselves in grave straits as to foreign com-
Mr. Hall charged that the amendment had manufactured goods to Cuba, though none of coerce. The goings and comings of ocean
been adopted not to protect U.B. interest, but strategic value, vessels might be so reduced as to leave us
that it represented State Department respon- Although Cuban insufferably isolated from world trade.
siveness to pressures by foreign-flag opera- sugar harvests have been
tore poor of late, Castro recently claimed that by What we're up against is the hard fact that
It was a coincidence, Mr. Hall observed 1970 his country will dominate the world on the other side of the Atlantic there is not
that the blacklisting changes were made at a market. He asserted that greatly expanded the feeling against doing business with Com-
time when various foreign owners in the production and low prices will enable Cuba munists which exists in this country.,
to ruin producers in capitalist countries. Another hard fact is that the farther one
dwindling Cuba trade had excess tonnage A few days p is from danger, the less ominous it looks,
available to handle U.S. wheat shipments to ago Castro announced that Hence Europe is much less apprehensive than
the Soviet Union. Cuba has made. heavy purchases of Russian we over the spread of Castroism in Latin
Under Department of Commerce regula- mechanical equipment for use in harvesting America.
tions half of such wheat shipments are re- the sugar cane crop. Moreover, it can be pointed out that we're
served to U.S.-flag vessels at prescribed rates, Surprisingly enough, the latest figures hardly consistent when it comes to checking
if they are available. show that the second largest non-Commu- the spread of Communist Influence. Indo-
Shipping sources said positive policy nist trader with Cuba Is Morocco, This trade nesia's President Sukarno is decidedly Red
threatened by Mr. Hall could take the form was said to have increased from $9.7 million oriented, and the Soviet has endowed him
of picketing such vessels if they came to In 1961 to $28 million in 1962. With a splendid arsenal of modern weapons.
U.S. ports. The Seafarers International BRITAIN THIRD Yet the United States lent a strong helping
Union, of which Mr. Hall is president, early Britain followed as third, but the figure hand when he ousted the Dutch from West-
in December unsuccessfully picketed a West g ern New Guinea.
German vessel that was loading wheat for dropped off from $28 to $27 million.
Hungary. Other countries in order were, with figures - Nor do the Europeans see a difference in
for 1961 and 1962 respectively, as follows, the Maritime Commission's banning of ships
The picketing was in protest of Govern- with figures in millions; that have visited Cuba and the Arab nations'
ment waivers of the 50-50 provisions on com- refusal to let a vessel dock if it has touched
.mercial grain exports to Iron Curtain na- Egypt, $20 and $22; Canada, $35 and $12; at an Israel port-and around Washington
tions, Netherlands, $15 and $11.5; West Germany, nobody but Arab diplomats speak highly of
$14 and $11.5; Chile, $15.7 and $10.5; Spain, that policy.
[From the Davenport Times, Jan. 9, 19841 $13.6 and $10 (this was before the recent in- So there we are. We can fall back on the
crease in trade) ; Tunisia, $2 and $8.5; Greece, Monroe Doctrine, using the ground that Cuba
UNITED STATES FIGHTS FREE WORLD TRADE $3.4 and $6.7; Sweden, $2 and $4.6; Finland, is really a Soviet outpost in the Western
WITH RED CUBA $.7 and $4.5; France, $6 and $4; Syria, $5 and Hemisphere. But the Monroe Doctrine isn't
(By Francis St11ley) $3.6; Switzerland, $3.9 and $3.8, and Norway, a treaty. It is simply a statement of U.S.
The United States is unhappy over grow- $2.5 and $2.8. tent and no European
lug trade between Spain and Cuba. Others dealing with Cuba Include India, o abide by it. power is obligated
- As a result, Uncle Sam has been waggling Belgium, Yugoslavia, Ceylon, Uruguay, Italy, . Thus the only way we can enforce it is. to
a finger at Spain with increasing vigor in Brazil, and Mexico. Their trade was reported begin shooting or think up some sort of
recent weeks. at less than $3 Million each, and In nearly reprisals that could be invoked. The first
No. 12-11
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CONGRESSIONAL RECORD - SENATE January 2 -
would mean war. The second would cause
our friends to bid us a frigid farewell. Nei-
ther can be afforded.
The unhappy truth is 'shat our hand has
been called, and we're not even holding a
pair of deuces. The $12 million bus deal
tells us so in a blunt and conpalcuous way.
WHITHER THE UNITED NATIONS?
Mr. MILLER. Mr. President, in the
Washington Post for ,January 15, 1964,
the lead editorial entitled "Whither the
U.N.?" merits the attention of readers of
the CONGRESSIONAL RE'-ORD. This is an
excellent editorial witch details the
problem of representation in the United'
Nations which is being aggravated by
the admission of so many small coun-
tries, and also the coni:ern of the Secre-
tary of State, Dean Rusk, with the prob-
lem.
I ask unanimous consent to have this
editorial printed in the RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
t7.N.'s assessed budget, to cast a two-thirds
majority vote In the General Assembly. No
Such problem has arisen and Mr. Rusk is not
fearful that it will, but he does emphasize the
fact that the United Nations simply cannot
fake signi scant action without the support
of the members who supply it with resources
and have the capacity to act.
This does not mean that he wants to shift
all U.N. power back Into the bands of the
moribund Security Council. Nor does he
look with favor on weighted voting in the
Cseneral Assembly. But his remarks are sug-
gestive of the direction in which the U.N.
should be evolving. Nothing would be more
certain to destroy Its usefulness in the long
run than the making of U.N. policy decisions
in disregard of the chief centers of world
peace.
THE CHANGED WHEAT DEAL WITH
RUSSIA
writing. Khrushchev objected to President
Kennedy's terms that the maxfmum amount
of wheat be moved in American ships. Ship-
ping rates, it was claimed, were too high.
Private arrangements for sales to Russia, it
appeared, would collapse unless the U.S.
Government underwrote the whole transac-
tion and subsidized not only the export
wheat itself but probf.bly the rates for ship-
ping it to Russia.
A LOAN GUARANTEE
At this point, the U.S. Government,
through Treasury Secretary Dillon and Ex-
port-Import Bank officials, proposed a loan
guarantee of 75 percent of the purchase
price. Congress reacted with a bill offered by
Senator MUNDT, Republican, of South Da-
kota, to prohibit such a guarantee.
The Senate Banking Committee appeared
to favor this bill. But after the assassination
of President Kennedy itreported the bill un-
favorably by a vote of 8 to 7 as a tribute to
the late President, although Government fl-
14, 1963, issue of the Des Moines Register
entitled The Changed Wheat Deal With
Russia."
Because many complaints are still be-
ing heard about this question, and there
is still, apparently, much misinforma-
tion abcut it, I believe that the article
merits the attention of readers of the
CONGRESSIONAL RECORD, and I ask unani-
mous ccnsent to have it printed in the
RECORD.
There being no objection, the article
was ordered to be printed in the RECORD,
WRrriIER THE U.N.?
What is the future of -;he United Nations?
In tackling that subject in the second Dag
Hammarskjold memorial lecture at Colum-
bia University, Secretary of State Rusk
(in a speech delivered for him by Assistant
Secretary Cleveland) offered two thoughtful
suggestions which merit analysis by all
friends of the U.N. He does not regard the
United Nations as a static organization,
but he wants It to gro'iv in ways that will
strengthen, and not weaken, its peacekeep-
ing function.
Actually the United Nations to a more in-
dispensable agency now than it was at the
time of its birth in San Francisco In 1946.
Today there is agreement among all the
great powers represented in the Security
Council that nuclear war Is utterly unac-
ceptable as a means of settling international
disputes. Chairman Shrushchev of the
Soviet Union acknowledged Inhis New Year's
message that war over territorial questions is
intolerable and that nationlt should not be
the target of direct or indirect aggression. If
this generally accepted thesis Is to be mean-
ingful. said Mr. Rusk, the U.N. will have to be
used as a substitute for war in the settlement
of disputes.
From this viewpoint the peacekeeping
functions of the U.N. ais vital to every state
and especially to the great powers. It serves,
in the Secretary's words, "not as a rival sys-
tem of order but as contributor to, and some-
times guarantor of, the common interest in
survival." Even if some countries are dis-
appointed by the conoequences of a U.N.
peacekeeping operation, they still profit
greatly from it for the simple reason that
survival is better than ,he annihilation that
would result from nuclear war.
This cogent reasoning has a-special bear-
ing upon a problem that looms large in the
General Assembly In 19?.4. The Soviet Union
has refused to pay its share of the expense
of keeping the peace in the Congo and in the
Near East. If this policy persists, the
U.S.S.R. will lose its vote in the Assembly and
critically weaken the U.N. as an adjuster of
disputes that otherwise might lead to war.
Surely If the Soviet Union Is realistic in its
pursuit of insurance against nuclear war, It
should be moving toward elimination of this
threat to the usefulness of the U.N.
The other problem to which Secretary Rusk
addressed himself arises from the growth of
the U.N. from its original 51 members to its
present 113. The onrush of small, new na-
tions Into the U.N. has made it theoretically
possible for 10 percent of the world's popula-
tion, who contribute only 6 percent of the
Kennedy's original proposal. ire oar was
then defeated in the Senate.
This leaves the way open for Government
underwriting of the transactions and that
is in prospect unless President Johnson were
to intervene and Insist on the original
terms of President Kennedy.
NORMAL BASIS
President Johnson might well consider
doing this for several good reasons. Russia
needs the wheat more than we need to sell
it. In any case, trade with Russia is not
likely to be a significant long-term factor
in our balance of trade. The haggling with
the Soviet Government amply illustrates
that unless it will pay in gold the opportu-
nities for bilateral trade are limited, and
even less promising on a multilateral basis.
(By Richard Wilson)
WASHI'IGTON, D.C.-The wheat deal with
Russia has gotten completely off the tracks
and in Its present form Is nothing like the
original proposal. This proposal was to sell
wheat tc Russia for cash or on normal com-
mercial terms. It was a subsidized sale In
the sense that all such transactions in U.S.
wheat in the world market are subsidized,
but no more so.
The terms were made unmistakably clear
b PresI]ent Kennedy The sale was not a
Is a rational, normal basis zor Crane wian
Russia as we trade with other nations. But
this basis does not exist for one simple rea-
son, and -.that is lack of confidence. Con-
fidence is an Indispensable element in the
extension of credit, and more so In inter-
national trade than In domestic trade.
Lack of confidence in the Soviet Union is
why bankers will not extend credit unless
it is guaranteed, ir, this case, by the U.S.
Government.
MUST MEET MARKET TERMS
p
government-to-government transaction. It What the Soviet Union needs to learn is
was a deal between private Q.S. traders with that if it Is to be F. responsible participant
the credit, on normal commercial terms, in world trade It must be prepared to do so
supplied by private banks. The traders and on the terms of the marketplace.
the banters were to take the risk, not the Those terms are that the buyer must con-
U.S. Government. vince the seller that he is able and ready to
PAYING CASH pay a fair price based on supply and demand.
This matte sense. Nikita Khrushchev need- Khrushchev talked that way last summer.
But this winter it is a different story, as Is
ed wheat. and still needs it. because his farm so often the case from the beginning to the
programs are not successful. There are bread end of a negotiation with the Soviet Union.
shortages in Russia. Gfdclals here have heard
of disorders In connection with bread dis-
tribution. AN ASSESSMENT OF THE SITUATION
Khrushchev boasted that he had the cash IN SOUTH VIETNAM
to pay for wheat. In fact, he is paying 8C
percent cash to Canada because he doesn't Mr. MILLER. Mr. President, one of
like the commercial interest rate of 4% per the best assessments of the situation in
The cent anted ted i8- States month has a a swheat and South Vietnam was contained in a dis-
there wheat surplus urpl
there a:?e clear advantages to unloading Ii patch by Hedrick Smith which was pub-
for cash. This gets rity of the wheat ant lished in the New York Times on Janu-
heips the balance-of-payments problem and ary 12. In describing the deteriorating
In any can, the Russians can get wheat situation there, the Times article under-
elsewhere if we do not sell it to them. So scores that part of the fault lies with the
we are not saving communism by selling United States. An American official,
wheat to Russia for cash.
When Khrushchev saw that the Unitec. according to Mr. Smith, had this com-
States was willing, even eager, to approve meat to make:
private sales of wheat he began to haggle. Let's face it. A lot of the blame for the
He stopped talking of buying for cash, which situation is ours. We financed most of those
Is the only safe basis for a deal with Russia. programs, and we signed off on them. This
Khrushchevwanted credit. situation was going badly for months and
Bankers prudently said they wouldn't ex ? someone wasn't decking up on it for our
tend credit without U.S. Government under. side.
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