CONGRESSIONAL RECORD-APPENDIX

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000300160013-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: September 25, 2003
• Sequence Number: 13
• Publication Date: March 24, 1965
• Content Type: OPEN

Marc7t 24, A ved For R (" "F 21'aN RECL%~GIA-RDP67B00446R000300160013-8
RECORD - A Pp IThJTh r
good 1965 return. And why should she be
forced to beg for her own f4ahfrom a nation
whose fishery on our stocks began after the
self-caused World War II?
This Tull is no longer virgin stock. Japan
in an unprecedented flaunt of conservation,
took nearly 2 million immature iish.off Adak
in August.
We must no longer ask, we must assert.
No longer debate, but demand. Your dignity
as a citizen, our dignity as a nation is at
SPEECH
of
HON. HAROLD R.- COLLIER
A1383
nam, Red China, East Germany, and Hun-
gary..
Another massive cache was seized last'
week, In it were 80 tons of armaments from
Communist countries. Included in the cap-
ture were 1,000 Russian-made carbines, 900.
Red Chinese rifles, several hundred Soviet
submachineguns, antiaircraft guns, recoil
less rifles, and grenades.
Supposedly the source of manufacture of
these weapons is to be obliterated. Cap-
tured documents reveal instructions from
Hanoi directing the infiltrators "to remove
all markings".from their munitions. The
infiltrators themselves start out from near
Hanoi in North Vietnamese uniforms and
change into South Vietnamese uniforms
s.
-
The admission: Hanoi has officially de-
clared that its "army is the instrument of
the class struggle to liberate South Viet-
nam." It has said that "it is the brain and
the factor that decides."
The thanks: The Vietcong have several
times thanked Hanoi for its armed support.
No deviation: The Vietcong Communists
have never once deviated from the Hanoi
IN THE HOUSE OF. REPRESENTATIVES
Tuesday, March 9, 1965
Mr. COLLIER. Mr. Speaker, the fol-
lowing commentary might properly be
entitled "What's Wrong Here?" I do
not believe there is a better way to make
a case for an existing inequity than to
present a specific situation. I therefore
submit excerpts from a letter received
from a young man in the armed services
which I trust my colleagues in the House
will read and give serious ebnsideration:
I have been in the. Army 19 months and
was recently promoted from E-3 to E-4 and
found that Icy wife's class Q allotment did
not increase like that of a man who has
only one dependent. The allotment for an
E-3 and two dependents and less than 2
years' service is $123.10 and it remains the
same for an E-4 With two dependents, The
allotment for an,E-3 with one dependent
and less than 2 years' service is $95.20, but
it moves up to $123.10 when a man is pro-
moted to an E-4. This doesn't seem at all
equitable.
For example, one of my buddies who has
the same rating as I do and a wife and no
children draws the same allotment. His
wife is, of course, able to take employment,
whereas we have a child, which naturally
requires that my wife remain at home with
the baby.
President Johnson recently concluded that
families with an income of less than $3,000
annually are in the poverty class and should
be given economic assistance through the
Federal Government. Yet, strangely, a man
in the service with two dependents receives
$83.10 for living quarters and $123.10 per
month allotment, which, with his basic pay,
gives him an annual income of approximate-
ly $2,800. The serviceman with one de-
pendent is naturally farther down on the
This is the evidence which caused the
three-nation international control commis-
sion (India, Canada, with Communist Po-
land dissenting) to report that "beyond any
reasonable doubt North Vietnam has sent
arms and men into South Vietnam with the
aim of overthrowing the legal government."
This is the evidence which has caused the
United States to conclude that the Hanoi
regime is in full strategic control of every
action by the Vietcong and is providing the
major share of its equipment and supplies.
Greek Independence Day
EXTENSION OF REMARKS
OF
HON. HOWARD W. ROBISON
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Thursday, March 11, 1965
Mr. ROBISON. Mr. Speaker, March
25, 1965, marks the 144th anniversary of
Greek Independence Day. On that date
in 1821 a band of Greek patriots began
their struggle for freedom. This was the
first echo in Europe of the American
Revolution, and their efforts were in-
spired by the example of the revolution
only a few years before which had
brought about the existence of the "land
of thy
f
.
>, m
-
e
ree
1
of
ers a
~..~, -
c? s the can revolution had sown seeds that had
before coming into the service, it would have border to wage war' South Vietnam,
been impossible for me to provide the basic This figure comes from cross-checked reports grown deep roots,
necessities along with maintaining our life, from prisoners, defectors, and secret docu- The Greeks looked upon the United
insurance, automobile insurance, and other meets. There is substantial information States with hope and admiration. One
miscellaneous obligations. When a man is that 15,000 additional infiltrators entered of the first acts of the first Greek Senate
required to give 2 years out of his life, it South Vietnam during this period. In guer- in 1821-was an address to the American
certainly doesn't seem right that he should rilla warfare 20,000 guerrillas can be equal people:
be required to use funds for which he worked to a regular army of 200,000 to 300,000.
and saved. during his civilian life for the right Vietcong leadership: Most officers, the ke Friends, fellow esolutio, an to nd iv or vetorrdief, for
and privilege of serving his country. I pass cadres, and the technicians for hard-core fr edom,we the
a redrawn toward you for
these comments on to you, not alone because Vietcong units operating in South Vietnam sympathy, Y Y eust
of my personal situation, but because these are from North Vietnam. since d is in your land that separated
rty
are mane others like me with whom I have Arms supplies: Large and increasing has fixed its abode * * *. Though ceprated
talked who have so expressed themselves. titles of weapons are entering from ogtside. brings you near gusY* ocean Our Interests are
I hope and trust that Congress will do One captured Vietcong said that his entire of such nature as to cement more and more
something to rectify these inequities in the company was recently supplied with modern an alliance founded on freedom and virtue.
near future. It probably will not affect me Chinese weapons. A Vietcong arms cache
since I am nearing the end of m; term of contained recoilless rifles and ammunition, Freedom for the Greeks did not come
service, but it seems to me that this should carbines, detonating fuses, 110 pounds of easily or quickly. Finally, 8 long years
be corrected in the interest of the men who TNT, fuses for mortar shells, and other arms. later with the sympathy and support of
serve our country in the future. Their identifiable sources were: North Viet- the American people and ultimately that
It is my understanding that legislation
is being offered by most of the mem-
bers of the, esteemed Committee on
Armed Services to increase military pay.
and correct some of these Inequities
which prevail. This legislation should.
be a must in this session of Congress.
HON. ABRAHAM J. MULTER
IN THE HOUSE OF REPRESENTATIVES,,
Wednesday, March 24, 1965
Mr. MUL'f'ER. Mr, Speaker, I com-
mend to the attention of our colleagues
the following article by our distinguished
columnist, Mr. Roscoe Drummond, which
appeared in the New York Herald Trib-
une on February 26, 1965.
Mr. Drummond presents part of the
proof of the role being played by the
North Vietnamese Communist govern-
ment in supplying the Vietcong with
arms and leadership.
The article follows:
THE MASSIVE PROOF: UNITED STATES CAN Now
DOCUMENT HANOI'S ROLE IN VILT WAR
WASHINGTON.-The United States is ready
to submit to the -U.N. Security Council or
any other proper body, massive and mount-
ing proof that the war in South Vietnam is
armed and directed from Hanoi.
The evidence is now fully prepared for
use b
th
y
e Government at the right moment.
It rests on captured arms, captured docu-
ments, Communist defectors, and interroga-
tion of North Vietnamese prisoners of war.
It proves that the aggression against south
Vietnam is inspired, commanded, controlled
and supplied by the Communist regime in
Hanoi.
This evidence shows a systematic violation
of the frontiers which Hanoi agreed to re-
spect in the Geneva agreements of 1954 and
in the Laotian agreement of 1962.
This evidence makes North Vietnam the
procuring force in the attempt to overthrow
the Government of South Vietnam and, in
the words of Under Secretary of State George
W. Ball, "the mainspring of the whole Viet-
cong effort."
Here is a good cross-section of the infor-
mationswhich documents the role Hanoi has
Hanoi's Role in the Vie nanr}, War
EXTENSION OF REMARKS
OP'
(By Roscoe Drummond)
Approved For Release 2003/10/10 CIA-RDP67B00446R000300160013-8
 A1384
Approved For Release 2003/10/10 : CIA-RDP67B00446R000300160013-8
CONGRESSIONAL RECORD - APPENDIX March 24, 1965
of the entire civilized world, they won, as
we had won earlier,
Mr. Speaker, Greeks are proud that
Americans participated in that noble en-
deavor, and we too should be proud that
we contributed to their inspiration as we
join them in commemorating the 144th
anniversary of their independence on
March 25.
The Christian Science Monitor Gives an
Example of the Area Redevelopment
Administration's Success in Providing
New Jobs
EXTENSION OF REMARKS
OF
HON. HENRY S. REUSS
OF WISCONSIN
IN THE HOUSE OF REPIESENTATIVES
Monday, March 1, 1965
Mr. REUSS. Mr. Speaker, the Chris-
tian Science Monitor recently published
a story describing the excellent work of
the Area Redevelopment Administration
in helping to provide jobs in a depressed
mining area of West Virginia.
The establishment of the Ravens-
Shinnston Corp. plant, as described by
the Monitor, article, is a model of how
the Area Redevelopment program works
at its best.
In this case, the people of the area,
led by their elected officials, the State
government, private industry, and the
Area Redevelopment Administration
joined together cooperatively to create
new jobs in a new industry for West
Virginians who would otherwise have
had little hope of escaping the miseries
of chronic unemployment:
ANOTHER SUCCESS STORY IN' WEST VIRGINIA:
ARA RETRAINING SALVAGES WORKERS
(By David K. Willis)
BHINNSTON, W. VA.-Pete Olivetti, cheerful
in brown shirt and work trousers, pushed
back his welder's mask and looked around at
the men working on the factory floor. "Does
a lot for the area, a plant like this," he said.
"Most of these men wouldn't have jobs
otherwise. See him? Just out of school.
What hope would he have had? There's no
jobs here anywhere.
"Me, I was out of work for 8 months one
time, Still got my unemployment card in
my pocket. Show it to you if you like. I
worked In the mines. Made more money
there than here-but you'd work 1 day and
never know about the next,
"Been here 2 years now. Spent last Christ-
mas with my wife and kids. Second time in
15 years I remember doing that. Always
away working or looking before."
This is a success story In the Federal Gov-
ernment's Area Redevelopment Administra-
tion (ARA). That is what the ARA is sup-
posed to be doing: Giving men like Pete
Oliveto a chance to earn a living.
In many other areas ARA has failed.
ARA was established in 1961 to spur job-
creating businesses in depressed areas
throughout the United States. Since that
time it has given out $300 million in loans
and grants for this purpose to communities
and business firms.
The agency, which has about $82 million
left In Its lending account, is due to expire
this June. President Johnson is asking that
the program be extended.
DEFENSE WORK
Here, in a 400-foot-long factory 2 miles
south of Shinnston on Route 19, sparks fly
and hammers clang as the Ravens-Shinnston
Corp. works two shifts a day.
The factory makes trailer tanks for long
hauls. It makes I Y2 -ton ammunition car-
riers and 600-gallon storage tanks for the
Army.
The plant superintendent, Hobart Cutright,
says 32 men are working now. There will be
70 more by the end of the year. With three
shifts, the total could eventually hit 250.
Standing with us, running his hand ad-
miringly over a steel girder, was Shinnston's
Mayor, George Rice. Mr. Rice has pushed the
plant from the start,
"We saw the handwriting on the wall here
a couple of years ago," he said matter-of-
factly. "It's all mining here, but the mines
are automated, and men have nothing to
do.
"So we knew we had to do something. A
group of us got together in town (Mr. Rice
runs the local drugstore) and talked about
getting some industry to come in."
COOPERATION SEEN
To qualify for an ARA low cost, long-term
loan, the Shinnston Area Development As-
sociation held a meeting in the Moose club-
house. It drew up a plan.
ARA sent down a team of inspectors, the
State Industrial Development Authority ap-
proved, local townspeople dug deep Into their
pockets, and the project was launched in a
blaze of energy.
The Ravens Corp. has long manufactured
trailer tank bodies. It provided- the techni-
cal experts. A big factor in getting ARA
money-$424,000 in all-was a federally as-
sisted retraining school already operating in
Harrison County.
The 15,000 people in the greater Shinnston
area put up $75,000. Ravens added $200,000.
"People were impatient," Mr. Rice said.
"The plant took a year to build. There's a
lot of redtape to go through. But we think
ARA has done a fine job. We'se very pleased.
A major delay came when local interests
fought with Ravens to have a bigger voice on
the board of the new company. The dispute
now has been settled.
The plant has been helped immeasurably
by two Defense Department contracts--one
of $1.4 million for the ammunition carriers,
the other for the 600-gallon tanks.
"Being a depressed area and having an
ARA (loan] must have helped us get them,"
said Mr. Rice. "Anyway, we have them, and
we're fulfilling them."
As he spoke Pentagon inspectors were mak-
ing final checks on the first dark-green car-
rier at one end of the building.
"We estimate it costs $5,000 to train a
single man-that's counting time lost on the
job as he gets used to what he's doing," said
Mr. Cutright. "But we're doing it, and the
plant will go. No doubt about that."
Supreme Court Decree
SPEECH
OF
HON. W. J. BRYAN DORN
OF SOUTH CAROLINA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, March 23, 1965
Mr. DORN. Mr. Speaker, the Su-
preme Court has no legal authority to
reapportion the legislatures of the States
of this Union. The Supreme Court de-
cision of June 15, 1964, ordering reap-
portionment of State legislatures, par-
ticularly the State senates, is one of the
most autocratic and dangerous decrees
in all the history of the civilized world.
This decision is reminiscent of the de-
crees handed, down by Roman Emperors.
I know of no decree in modern history
wrought with more danger to freedom
and self-government at the local level.
This order of the Supreme Court is a
blow at the foundation stones of this
Republic and our free enterprise system.
This decision of the Supreme Court
makes a mockery of the Constitution and
is an insult to the Congress. If this de-
cree of the Court is permitted to stand
by the Congress, the Supreme Court can
and will someday reapportion member-
ship in the U.S. Senate. The Court can
and will reapportion membership on
boards of trustees, magistrates, and
local officials throughout the Nation.
Mr. Speaker, I am today joining my
colleagues in introducing a bill which
would nullify this unconstitutional and
unwarranted decision of the Supreme
Court. The bill I am introducing would
return legislative power to the people, as
intended by the Constitution. No leg-
islative body in this country, whether it
is the State legislature, city council, or
the Congress itself, is free as long as this
Damoclean sword of the Supreme Court
is suspended over the legislative proc-
esses.
This bill would end the apportionment
and reapportionment of State legisla-
tures by the Supreme Court. It would
keep the Supreme Court from reviewing
reapportionment cases and would re-
strict the district courts from having the
jurisdiction to entertain cases that would
reapportion State legislatures.
The Supreme Court has usurped leg-?
islative powers. My people are fearful
that we are drifting into a dictatorship
by the Supreme Court. The Congress
must act now to preserve the liberties
of our people.
America's Vanishing Merchant Fleet
EXTENSION OF REMARKS
OF
HON. HASTINGS KEITH
OF MASSACHUSETTS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, March 24, 1965
Mr. KEITH. Mr. Speaker, it was once
said that illusion is the first of all pleas-
ures. But when a popular belief threat-
ens to strangle a vital arm of the Na-
tion's defense and economic power, such
self-deception can be fatal. There is a
growing fear that America's once un-
challenged maritime supremacy has be-
come such a nationalistic mirage-a
myth supported by indifference, deceptive
statistics, and a naive misconception of
the, future role of oceangoing commercial
carriers.
The United States, the largest trading
Nation in the world, is today a sixth-
rate maritime power-ranking behind
Great Britain, Liberia, Norway, and the
U.S.S.R. The fact is that Russia will
soon have the world's largest merchant
Approved For Release 2003/10/10 : CIA-RDP67B00446R000300160013-8
 March 24, ,moved For Re"'C%gJVA 0300160013-8
IAf 74 6111300 '0609
Douglas Dillon deserves the thanks of traditional measures of bank liquidity have as these differences are reflected in interest
the American people for a job Well done. confirmed a gradual tightening in their post- rates and the intensity of demands for
I wish him well on his return to pri- tion? The Federal Reserve has rather steadily credit-also lie behind the accelerating out-
vate life. reduced the free res
erves of the banking sys- flow of bank loans and other credits abroad.
REte life..
S BY THE;. I ONORA$I~E DOVGLAB DILLON, tem. and, for the past month, the banks have This structural imbalance forced us to pro-
4~GRETApv 1 TREASURY, BEFORE THE actually operated with a small net borrowed pose the interest equalization tax during the
13CR ANNVeL 11IONETARX QONFERENCE of reserve position. While corporate cash flow summer of 1963. It effectively increased the
13T Al ERxc.9N O N TARS zREN -ASSOCIATION Al' has remained high, liquidity ratios have cost of long-term portfolio credit to foreign-
THE Aig INN,, PRINCETON, N.J., FRIDAY, reached the lowest levels in a quarter of a ers In developed countries. As a result the
PkiNcwrox Cx 19, 1965 century. _ outflow of long-term portfolio capital in 1964
This is the fourth year in which I have had ab eeinl the Uniteds Statesn throughout this drTp pee A aink t the 1960 .
ct Is that foreign borrowers
the special privilege of addressing this con- period, and our bank lending and long-term are willing and able to pay higher rates than
ference of distinguished leaders in the world interest rates are still low relative to most domestic borrowers of similar credit standing
of finance, These have been years of re- other countries. But it is also a palpable fact with free access to the vast resources of the
markable innovation in financial practices that rising investment opportunities and American credit market, and foreign loans
and policies-public and private-both credit demands at home, combined with in- are thus in many instances more profitable
within the United States and abroad. In- creases in the Federal Reserve discount rate to the lending banks. The same is true for
ternationally, we have fashioned a frame- and greater restraint in the provision of bank the placement of liquid funds by our cor-
Work for mutual consultation and coopera- reserves, have noticeably reduced the ease of porations. But the massive outflow of these
Lion that-measured against our common our market. Yet, instead of declining in re- types of credit is also related to other deep-
objectives of steady growth and flourishing sponse to these developments, the capital seated structural characteristics of American
world trade, coupled with substantial price outflow has accelerated. and foreign stability-has proved both, durable and This fact alone casts into doubt the thesis As you know, withnrare exceptions, foreign
viable, of those who view the problem almost en- financial markets, even in countries with the
But, despite much excellent progress, our tirely in terms of excessive domestic liquid- most highly developed economies, lack a
international finapcial system still suffers ity, with tighter monetary policy the simple, large and fluid short-term money market.
from a disturbing disequillbrium-one i effective, and unique remedy. Naturally, If Long-term bond markets are usually even
have discussed with you on previous occa- one defines an excess of liquidity as synony- more constricted. As a result, in most other
sions. This is the seemingly chronic tend- mous with an excessive capital outflow, I countries there is simply no effective mech-
ency for capital to flow between countries suppose that position would be unassailable. anism by which private borrowers and
in directions and In amounts that impede the But that kind of analysis bears no realistic lenders-and to a very considerable extent
entire process of restoring balance in the relationship to the difficulty we face today. governments-can readily raise or dispose of
payments of deficit and surplus countries All it does is to define away the substance of large sums in short periods of time in the
alike. a very real and tough problem. open market. Instead, the available funds
. The group of 10, in their recent study of In my judgment, it is much more enlight- within each country are channeled almost
the international monetary system, con- ening-although still not the entire answer- entirely through a relatively few big insti-
cluded unanimously that ways must be found to analyze the problem in terms of differences tutions dealing with individual customers on
to improve the process of balance-of-pay- in investment profitability, rather than in a personalized basis. These institutional
merits adjustment. The United States terms of liquidity. Consider, for example, the markets are fairly well Insulated from the
wholeheartedly joined In that conclusion and outflow of funds for direct investment abroad, short-term money market, and frequently
welcomes the systematic studies of this which has continued to rise, reaching $2.3 respond only sluggishly if at all to the actions
matter now underway in working party III billion in 1964. At the present time, many of the monetary authorities.
of the OECD. However, if these studies are American firms clearly believe that a por- The fluidity and size of the market avail-
to have truly useful results they must face tion of their available resources can be most able to most private borrowers abroad Is
up to the stubborn and extremely difficult profitably invested in subsidiaries abroad. further impaired by the fact that many
problem posed by the deep structural imbal- That calculation rests on a variety of familiar foreign governments preempt a very large
antes In the worlds capital markets that considerations-the more rapid growth of fraction of the savings available for Invest-
have enormously complicated the smooth certain foreign markets; a desire to operate ment, or direct it into officially sanctioned
functioning of the ?adjustment mechanism. Inside a wall of external tariffs; proximity to uses, frequently with a sizable subsidy for
The nature of the problem is clearly illus- readily available raw materials; and lower preferred borrowers added along the way.
trated by developments in our balance of production costs-to name some of the most This is partly a natural result of basic social
payments last year. By 1964, the measures obvious factors. decisions to provide, through
we had and posi- But perhaps most important of all is the social insurance proglamsgovernment
undertaken to improve our trade programs, the protection
tion and to reduce the balance-of-payments fact that U.S. industrial development so far for citizens that we in the United States
impact of our aid and defense programs had exceeds that of any other country. This has furnish to a much larger extent through
achieved visible and gratifying results. Yet, brought with it a degree of competition that private insurance and private industry. But,
as you know, our deficit last year was once is unknown anywhere else in the world. Add It Is also a reflection, in many instances, of a
again disappointingly large, primarily be- to this our enormous flow of savings, and it is conscious desire to provide special prefer-
cause capital had poured out of the United not surprising to find a general acceptance ences to one major group of borrowers or
States 111 unprecedented amounts--in Sig- of lower rates of return On capital in this another, and to maintain a high degree of
niflcant part to the. strong surplus Countries country than prevail elsewhere-rates that government control of national economic
of Western .Europe.. The recent annual re- only partially reflect differences in risks be- development. In either case, the natural re-
port of the 11Ionetary Commission of the tween investments here and abroad. At the sult is to leave those businesses and other
European Economic Community highlighted same time, our businessmen and investors borrowers that must look to the remainder
this point, noting that an improvement of tend to place higher capital values on pros- of the market more or less perpetually
about $3 billion In U.S. transactions for pective earnings than is the case elsewhere, starved for funds, and with an impelling de-
goods and services.. and Government ac- and our corporations at times find it attrac- sire to seek needed capital from abroad.
counts had been largely offset by a $2 billion tive to pay higher prices in the acquisition of All of these factors have contributed to a
increase in private Capital outflows. going concerns abroad than would seem rea- structure of long-term interest rates in
Within tshe basic limitations set by the sonable to local investors. tions, has Europe has r that, e, with only one or two postwar
needs of an underemployed domestic econ- Whatever the specific reason that articu- pert levels throughout ght of past
omy, the United. States throughout the last lar direct investments abroad a p sod at suatin the light opast
appear toe history, sunusually high. Official die-
4 years had been &lert to the fact that execs- given company to be a more profitable use count rates, es, and the money market ket rates
sively easy money at home could only aggra- for its funds, the fact is that we cannot ef- more immediately influenced by the official
vate he .problem of capital outflows. By fectively influence this judgment by simply rates, often bear little relationship to the
shifting much.of the burden for promoting reducing liquidity and tightening credit at load charges payable by local borrowers.
domestic expansion to fiscal policy and tax home. So long as the basic difference in And, faced with constricted internal mar-
reduction, we have enabled our monetary profitability remains, any gain In terms of kets, and thus denied a full range of fiscal
autllprities to move gradually, but steadily, reduced foreign investment will entail a sub- and monetary tools, the authorities them-
to an esseatiaily neutral monetary policy. stantially larger cost in terms of dampening selves often find it essential to pursue essen-
Our short-term market in rates have domestic investment as well. There seems, tially domestic credit objectives-and in some
climbed significantly since the 1960-61 re- therefore, little warrant either in theory or instances even to finance internal budgetary
cession, responding largely to two half-point in practice for basing economic policy on a needs-through adjustments . In external
increases in the discount rate. With the dis- presumption that corporate managers will flows of funds. Sometimes this is done by
count ' rate, now at 4 percent, Treasury bill permit considerations of the rate and avail- borrowing directly from abroad and some-
yields arewihl,n One-half percent or so of ability of bank credit to affect their decisions times by seeking to influence the external
their postwar high-a high reached only on foreign investment, while leaving the do- borrowing or placement of funds by their
briefly during the period of very tight money mestic economy untouched.
1n 1959, Lose-deposit ratios of banks have In the broadest sense, international dif- commercial banks.
gradually clamed to a postwar The sheer size the funds. and the
peak, and other ferences in.the rate of return on Investment- tremendous volume of funds. raised in our
Approved For Release 2003/10/10 CIA-RDP67B00446R000300,160013-8
 Approved For Release 2003/10/10 : CIA-RDP67B00446R000300160 3-8
561a CONGRESSIONAL RECORD HOUSE arch 24, 1965
credit markets-estimated last year at over helping the adjustment process in the United tionship of international monetary reform to
$70 billion-help. account for the much States, as in other countries. It has played current U.S.
overriding payments need, in one European view,
greater fluidity of our markets and their such a role, is playing such a role now, and
ability to adjust to, and absorb, large do- will continue to do so in the future. In fact, is to develop a mechanism which would force
mestic or foreign demands with relative ease. as I suggested earlier, one of our chief rea- a prompt end to our payments of deficits.
But it is not a question of size alone. The sons for relying primarily upon fiscal policy We fully agree with these European friends
relative freedom of the market mechanism, to stimulate the domestic economy was to the international necessity for achievi accountsng ea~dbWlace
and the intensity of competitive pressures give monetary policy additional freedom in in our
among institutions with a wide variety of coping with our balance=of-payments prob- tend to achieve this goal by our own actions,
investment options, permit funds to flow lem. And I can assure you that monetary which now for the first time cover all aspects
promptly from one sector of our economy to policy remains fully available for further of our payments problem.
another in response to changing demands. use should the need arise. But I see no But, in assessing the'problems of the in-
And, a long history of confidence in our realistic prospect that the full burden for ternational monetary system, our concern
currency, further fortified by the stability achieving a permanent international adjust- and that of a number of other countries has
of our prices in recent years, has encouraged ment in capital flows can reasonably be been to look toward the future, when there
individuals and investment institutions to thrust on American monetary policy alone will no longer be an American payments
commit funds freely at long term. now or in the forseeable future. , deficit pumping dollars into the reserves of
As a result of the pressure of the huge Instead, as I have suggested before to this other countries. So-the thrust of our think-
volume of private savings seeking investment group, the only really satisfactory longrange ing has been to find the best way of develop-
in our market, our long-term interest rate solution to our present problem of excessive ing supplementary means of providing the
structure has remained essentially stable. capital outflows lies in achieving a more liquidity that is likely to be needed. We feel
during the past 4 years, even though money attractive environment for investment with- that this can only be done gradually and by
market rates have risen by 11/2 percent or in the United States through tax reduction building on what we now have. And we
more to a range of 4 to 41/2 percent. As a and sustained growth, together with the de- emphatically disagree with the thesis re-
result, the differential between short- and. velopment of far larger, far more efficient cently propounded in some quarters which
long term rates has almost disappeared and far more flexible capital markets abroad. would turn back the clock and embrace an
Nevertheless, the bond market has continued While there has been some encouraging outmoded and highly restrictive system--a
to absorb a record volume of long-term fl- progress in both of these directions, much system that would surely cripple the growth
nancing at stable rate levels. more remains to be done. of international trade and commerce as our
Another indication of the strength of our, These are, of course, long-run measures, deficit was ended.
longer term markets is that, over the past 4 and their influence on capital flows must be Under the circumstances, with these broad
years, they have not merely provided the expected to emerge only slowly. For the differences of approach, any final resolution
vast amount of funds necessary to support time being, the existing disequilibrium-and, of the variety of issues that have been raised
high levels of homebuilding, a remarkable ex- the urgency of reducing our deficit-has re- seems to me highly unlikely until the United
pansion in business investment, and the quired that we seek the cooperation of our States has brought its international pay-
rapidly growing needs of our States and local- banks and other financial institutions, as ments into balance. As that is done it will
sties. They have also provided funds to the well as of our industrial firms, in voluntarily become less and less easy to ignore the po-
Government, equal to the entire $28.8 billion reducing the flow of capital abroad. The tential need for supplementary sources of
Federal deficit during the first 4 years of response of those asked to participate in this reserve assets and international credit facil-
this administration. During that period voluntary program has been most gratify- ities. Meanwhile, difficult and time con-
more than that amount was placed in savings ing. The effects are already clearly visible suming technical studies are well underway
bonds and marketable debt maturing In over both in the foreign exchange markets and under the auspices of the group of 10, help-
5 years. This achievement is reflected in the in our preliminary payments statistics which ing to clarify the issues and to evaluate
increase ofalmost 1 year or 20 percent in the point to a sharp and favorable change since alternative techniques. These studies will,
average length., of the marketable debt to a mid-February. But two swallows don't make I believe, provide the basis for timely agree-
level last seen in mid-1956. a summer. We need a considerable period ments on ways and means for improving the
In this setting we could not expect mod- of balance to offset the deficits of the past. present monetary system well in advance
erately tighter monetary policies to bring We know we can count on your cooperation of any urgent need.
the needed reduction in the outflow of long- in achieving this vitally needed result. In looking back on the past 4 years, and
term funds abroad. The disparities In the But the success of our present program on the postwar period as a whole, there can
structure of the capital markets of our dif- does not, of course, meet the basic problem. be no question that the present system-
mient country av simply tat t great
eeto per- The nations of the free world, working to- anchored on gold and the dollar, and effec-h ward us rely heavily Much that is needed to gether, must develop better means for in- tively supplemented by the International
ward adjustment. Much more other needed s- fluencing capital flows within a basic frame- Monetary Fund-has served the world well.
bring interest rtes no he ugh alinement incest work of free markets and national objet- The extremes of inflation and deflation char-
trialized countries into the rough alinement ttves-and without placing intolerable bur- acteristic of other postwar periods have been
that is surely necessary if we are to put a dens either upon monetary policy or upon avoided. Barriers to trade have been lowered
permanent end - to the destabilizing capital the resources of the international monetary or removed. And, in this environment, the
flows that have characterized the past 2 system. vast productive capabilities of the free world
_ . -....a +., the har,nflt ..f ns all.
ly tight money wools ce aoie w uv .us w could in any way eliminate the need
continued over a long enough period. Such. a system these flows. But these two
policy rests on the highly doubtful assump- for ste am questions djdjustin nonetheless related, the one two
tion that in spite of our huge volume of sav- q
ngs it would be technically feasible-per- the basic functions of the international mon-
haps by drastically reducing the money sup- etary system is to provide. sufficient means
ply-to raise the general level of our bank for financing deficits and surpluses to per-
and long-term interest rates by the 11/2 to 2 mit the working out of an orderly process
percent that would be needed to achieve in- of adjustment.
terest rate parity with Europe. This linkage between the process of adjust-
But even granting that assumption, such ment and the international monetary sys-
a policy would surely be self-defeating. Be- tem seems to me to be at the source of much
fore ft could achieve the interest rate objet- of the confusion and difficulty evident in re-
11 cent international efforts to develop a com-
t
The challenge xor the zucure in w --
further on this system, recognizing its po-
tential weaknesses and shortcomings, bul-
preserving the elements of strength and
flexibility that have contributed so much
to our progress.
In this area, as in the area of adjustin?:
capital flows, I have no fixed blueprint to
offer to those who will share the responsi.
bility for developing solutions. I remain
confident, however, that solutions can and
will be found, provided only that the United
States discharges its own immediate respon-
sibility to maintain the full strength of tho
woo
tive, the extreme restriction of cre
surely move us' toward domestic recession, mon approach toward the further evolution dollar as the world's primary reserve cur-
and at a time when our economy is already of the international payments system. All rency by achieving an early balance in it>
falling to use its resources to the full. A the major countries are fully agreed, I be- international accounts. And with the help
recession would, in turn, delay our funds- lieve, on the need for developing an assured of you gentlemen that is exactly what w
mental aim of creating a. more favorable method of generating international liquidity are going to do.
amounts as
but no excessive
uate
e
i
,
,
q
n a
climate for Investment in the United States.
At the same time, it would rapidly create world trade and production increases over
forces for easy money that would be likely the years ahead. This much clearly emerged
to prove irresistible. Thus the end result from the studies of the group of 10 and the
would not be an improvement but rather an international Monetary Fund last year.
an aggravation of our balance-of-payments But in recent months, there has been little
problem. progress toward more concrete agreement on
To cite these limitations and difficulties methods and approaches. The pronounced
In the use of monetary policy is not, of course, divergencies in view that have become evi-
to say that monetary policy`doee not have dent can, I believe, be traced in good part to
a useful and indeed essential role to play in quite different assumptions about the rela-
CLEF AIM OF OUR FOREIGN POL-
Y SHOULD BE TO ENCOURAGE
HE EVOLUTION OF A WORLD OF
INDEPENDENT, VIABLE NATIONS
(Mr. EDWARDS of California (at the
request of Mr. ADAMS) was granted per-
mission to extend his remarks at this
Approved For Release 2003/10/10 : CIA-RDP67B00446R000300160013-8
 roved For I CI -~}~~p67B00446R000300160013-8
March 2 J W
~~414L RC c)RD HOUSE
point in the RECORD and to include ex-
traneous matter.)
Mr. EDWARDS of California. Mr.
Speaker, the Pentagon should be re-
minded that the chief aim of our foreign
policy is to encourage the evolution of a
world of independent, viable nations, all
or most of whom. would look. upon our
country with respect, if not friendship,
and as a consequence would tend to pat-
tern their cultures in the mold of the free
society.
It is a part of the Pentagon's job to
implement this foreign policy. Wars are
not wholly military. There are human
and-psychological aspects, and the battle
for men's minds is frequently more im-
portant than the military.
The use of gas in Vietnam is a step
backwards of incalculable magnitude. It
is not worthy of our great Nation. Its
military value cannot possibly counter-
balance the wave of disapproval and dis-
may that has swept the world.
I found this morning's comments of
the New York Times and the Washing-
ton Post particularly appropriate, and
the texts of the editorials follow:
,GAS (NONLETHAL) IN VIETNAM
The United States, in steady escalation of
the Vietnamese conflict, is now revealed to
have employed a nonlethal gas. It is pos-
sible to argue, as American military and
civilian spokesmen do, that military objec-
tives can be achieved with fewer casualties
by using a gas that does not kill.
This argument overlooks one vital factor;
and it displays, at the very least, a lack of
imagination somewhere in the top echelons
of the Armed Forces. People-ordinary peo-
ple everywhere-have a strong psychological
revulsion, if not horror, at the idea of any
kind of poisonous gas, even a temporarily dis-
abling type that only causes extreme discom-
fort including nausea and diarrhea when
used against ordinarily healthy adults. But
even this kind of gas can be fatal to the very
young, the very old and those ill of heart and
lung ailments.
In Vietnam, gas was supplied and sanc-
tioned by white men against Asians. This is
something that no Asian, Communist or not,
will forget. No other country has employed
such a weapon in recent warfare. If the
United States believed that people every-
where would be logical and "sensible" and
would understand that nonlethal gas con-
stitutes really only another form of warfare
and even a relatively humane one, someone
has blundered grievously.
War, as Clausewitz said, "is only a part of
political intercourse, therefore by no means
an independent thing in itself." It is stupid
to lay the United States open to a moral con-
derz nation that is not confined to the Com-
munist world.
The United States claims to be fighting in
Vietnam for freedom, right, justice, and other
moral principles, as well as against commu-
nism and for the, security of the United
States and the free world. By using a nox-
ious gas-even of a nonlethal , type-the
Johnson administration is falling back to-
ward the old axiom that all's fair in war.
But this happens to be a war in which the
moral stature of the United States is at least
as vital as bullets, shells and bombs. Gas is
a wretched means to, achieve even the most
valid ends.
[From the Washington Post]
,'.BLACKENING OUR NAME
It is difficult to find out how much damage
napalm and gas are doing the enemy but it is
not hard to find out how muoh damage they
are doing us. Our own Defense Establish-
ment, every time it employs or permits the
South Vietnamese to employ these weapons,
is doing an injury to the good name of this
country.
If these weapons were being employed with
decisive effect, perhaps their use might be
condoned as one of the necessities of a hard
and brutal war, but in this situation there
is not even the satisfaction of knowing that
they produced impressive results. They have
been employed just enough to bring down
upon this country the rebuke of the civilized
world. They have been utilized just enough
to hold our country up to reproach. They
have been resorted to just often enough to
impose upon the U.S. Information Agency an
impossible propaganda disadvantage.
The argument that the nontoxic gas is more
merciful than antipersonnel weapons has
some merit, but not much. The trouble is
that although the gas may not be poison,
the word is, and all the propaganda resources
in the world cannot explain away its employ-
ment as an act of Christian charity and hu-
manitarian mercy. The use of napalm
against gun emplacements is debatable, but
,its employment against villages is indefen-
sible and the difficulty of confining it to com-
bat installations so great as to dictate that
it be not used at all.
We hope that President Johnson will order
the Defense Department to forgo the use of
all gas and napalm in this war theater at
once. The people of this country are pre-
pared for and equal, to the hard measures
that war dictates, when those measures are
clearly inescapable and' unavoidable in the
prosecution of a military purpose. They will
not be reconciled to the use of such weapons
where alternate means of defense .exist. If
the war in South Vietnam can only be won
by losing our good name, Americans who. have
patiently supported the struggle will waver
in their purpose. Mr. President, let us stop
all use of napalm and gas in South Vietnam
at once.
OPPRESSION OF MINORITIES IN
TRANSYJ,,VANIA
(Mr. FEIGHAN (at the request of Mr.
ADAMS) was granted permission to ex-
tend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
Mr. FEIGHAN. Mr. Speaker, the
persecution and oppression of minorities
by the Communist regime in Rumania
has reached serious proportions and
deserves to be condemned publicly by the
Congress. The minorities affected are
the Hungarians and Saxons who have
lived for centuries in Transylvania which
is now under Rumanian jurisdiction.
The subtle but nonetheless cruel and
harsh plan of persecution launched
against these minorities has caused
grave concerns among many Americans
whose relatives and friends are the
victims. Bulletin No. 17 of the Interna-
tional Commission of Jurists is devoted
to an expose of the tactics used by the
Communist regime in Rumania.. Many
correspondents who- have, had an op-
portunity to visit Transylvania have re-
turned with an abundance of criticism
of what they have seen.
The theory of communism makes
extravagant claims about, the ,equal
treatralent of,, people and is partic-
ularly critical of mistreatment of
minorities. But., the practice of com-
munism is a far cry from the promises of
its theory. What the Rumanian Com-
munist regime is doing to the minorities
in Transylvania follows a well-estab-
lished habit of all, Communist regimes.
5611
Oppression of human rights is a standard
,Practice for all under their control and
certain elements of the population are
singled out for particularly harsh treat-
ment.
Our sympathies go out to the Ru-
manian people for the persecution they
have suffered at the hands of the Com-
munist regime in control of their country.
We are aware that neither the Commu-
nist Party nor the government installed
by force in Rumania represents the freely
expressed will of the people. The fault
for persecution of minorities in Transyl-
vania rests solely upon the Communist
Party of Rumania which, as is well
known, controls every facet of life in that
country.
Mr. Speaker, I have today introduced
House Resolution 290 for the purpose of
providing the House of Representatives
with an opportunity to condemn publicly
the oppressive practices of the Com-
munist regime in Rumania against the
Hungarian and Saxon minorities in
Transylvania. My resolution requests
the President to use his good office in
such manner as he deems appropriate to
bring relief to these persecuted minori-
ties.
I hope the House will act favorably and
soon on this matter.
(Mrs. GREEN of Oregon asked and was
given permission to extend her remarks
at this point in the RECORD and to include
extraneous matter.)
[Mrs. GREEN of Oregon's remarks will
appear hereafter in the Appendix.]
THIRD ANNUAL MEETING OF THE
INTER-AMERICAN ECONOMIC AND
SOCIAL COUNCIL
The SPEAKER. Under previous order
of the House the gentleman from Massa-
chusetts [Mr. MORSE] is recognized for
30 minutes.
Mr. MORSE. Mr. Speaker, between
November 30 and December 12, of last
year, the Inter-American Economic and
Social Council-IA-ECOSOC-held its
third annual meeting to review develop-
ments under the Alliance for Progress in
Lima, Peru. IA-ECOSOC is one of the
three dependent organs of the Organiza-
tion-of American States-OAS-and has
provided since 1961 inter-American mul-
tilateral direction for the Alliance for
Progress.
It was my good fortune to serve with
my colleague, Congressman ARMISTEAD
SELDON, as a member of the U.S. delega-
tion to the conference last December.
Congressman SELDON is Chairman of the
House of Representatives' Subcommittee
on Inter-American Affairs. His pro-
found knowledge of Latin American af-
fairs was an invaluable contribution to
the delegation.
The conference opened with a pre-
paratory 1 week meeting at the expert
level preceding the meeting at the min-
isterial level. The U.S. delegation at the
ministerial meeting was headed by the
very able Assistant Secretary of State
and U.S. Coordinator of the Alliance for
Progress, Thomas C. Mann, recently
nominated by the President for Under
Approved For Release 2003/10/10 : CIA-RDP67B00446R000300160013-8
 5612
Approved ForCONGRESSIO/NAL RECQRDP67%086 R0003001600~1~3ar8ch 249 1965
Secretary of State for Economic Affairs. to grow. There is no question in my
Deputy U.S. Coordinator William D. mind that greater efforts will therefore
Rogers leaded the U.S. delegation at the be necessary in this field.
meeting of experts. The quality of the The Latin American delegations were
work of both of these men deserved high particularly concerned with the relative-
commendation. Certainly, the effective- ly slow pace of regional economic inte-
ness of the U.S. delegation was due In gration through the Latin American
large part to their experienced and ef- Free Trade Association, and made a call
fective leadership. for early action to accelerate Integra-
The climate of the conference was tion through existing institutions. BY
both positive and optimistic. The meet- contrast, the Central American countries
ing saw the launching of a new special were congratulated on the progress they
development assistance fund, to be op- have made in the completion of the Cen-
erated and supported on a multilateral tral American Common Market.
basis. The statutes of the fund and its The general satisfaction expressed by
first annual budget were approved. A all delegations with respect to the work
number of participating nations pledged of the Inter-American Committee on the
specific-contributions, while others stated Alliance for Progress--CIAP-which had
their intention to pledge specific contri- been created by IA-ECOSOC the year
butions in the near future. The fund, before, was a highlight of the discussion
with a budget of about $9 million will at Lima. CLAP was set up as a sort of
support a number of multilateral Alliance year-round multilateral executive com-
activities including technical assistance mittee of the IA-ECOSOC. Among
for planning, technical training pro- other things, it conducted for the first
grams, public information and technical time a review of each country's perform-
assistance for institutional development. ance under the Alliance for Progress.
The IA-ECOSOC also considered and This country review process Is the heart
approved a number of resolutions in of the economic and social development
addition to the statutes and budget of the programs embodied In the Alliance. The
special development assistance fund. concept is premised on the-thesis that
Among these were requests for the Inter- aid is useless unless the recipient coun-
American Committee on the Alliance for try has developed a comprehensive plan
Progress-ClAP-to give special atten- which coordinates development prob-
tion to certain problems such as external lems such as land and institutional re-
trade, maritime transport charges in re- form with monetary and fiscal problems.
lation to the balance of " payments, This was not done a few years ago with
regional - integration and capital flight, regard to Brazil, for example. The re-
and the relationship between population sult? The United States was support-
growth and social and economic develop- ing the Brazilian currency during a
ment. period when -the Brazilian Government
One of the most hopeful reports made was taking no steps to control an ex-
at the conference was the Ministers' esti- tremely high and rapidly growing rate
mation that in 1964 for the first time, the of inflation.
average per capita growth rate for all of I was greatly impressed. by the preoc-
Latin America would equal or possibly cupation of Latin American member
exceed the target rats--21/2 percent per countries with external trade conditions
capita- per year-urged in the Charter of . and prospects. Of course, 1964 was a
Punta del Este. They also noted the year that witnessed considerable inter-
substantial increase--at least 8 per- national attention focused on the trade
cent-in export earnings which will problems of the developing nations. This
probably materialize in 1964, when all the attention centered around the United
statistics become available: Nations Conference on Trade and Devel-
In the estimation of the Latin Amer- opment-UNCTAD-held in Geneva,
ican ' delegates, however, foreign trade March 23 through June 16, 1964. Prior
continues to be a major problem, par- to this conference, the Latin American
ticularly with respect to maintaining nations held two meetings, the first at
recent price increases for basic com Brasilia and the second at Alta Gracia in
modities. Argentina. At Brasilia, the government
On more pessimistic note, concerning experts considered a document prepared
agriculture, the review stated "that no by the secretariat of the Economic Corn-
great progress has been made, except in mission for Latin America-ECLA. The
isolated cases, in the technical improve- conclusions adopted at this meeting were
ment of agriculture, in increasing agri- subsequently reviewed at Alta Gracia by
cultural productivity, or in carrying the representatives of 19 Latin American
out programs of agrarian reform." countries under the auspices of the Or-
The Ministers stressed the need to pro- ganization of American States. These
mote more active participation in the meetings were intended to produce a con-
programs for development by all the peo sensus as to the goals of the UNCTAD.
ple, including rural and urban commu- In Lima, most spokesmen were critical
pities, labor union, business groups as of what they feared to be a protectionist
well as government instrumentalities, tendency of the industrial countries.
This is a healthy development, in my Substantial improvements by the de-
opinion, and demonstrates a growing un- veloping countries, both in export earn-
derstanding of the social aspects of eco- ings and in terms of trade in 1964, did not
nomic development. prevent considerable concern about the
In the housing field, IA-ECOSOC rec- future trade prospects of the region.
ognized the important efforts which Underlying these criticisms is a con-
many . countries have already made. tern which has been explicit in inter-
However, the gap between requirements American relations for the last three dec-
and new housing construction continues ades: The Latin American nations, their
economies oriented toward primary prod-
ucts, believe that the trend of the terms
of trade is moving against them in favor
of the Industrial nations. They believe
that the basic trend of the ratio of prices
of their imports as compared with the
earnings of their exports is increasingly
unfavorable. Furthermore, they are
faced with the prospect of greater bal-
ance-of-payments deficits as their im-
ports increase due to development needs,
imports made up for the most part of
vitally needed machinery and machine
products.
An obvious answer to these problems
is a diversified economy. Even partial
industrialization, however, is a lengthy
process, especially in the face of severe
social and consequent political strains.
The one immediate answer that the Latin
Americans see to this problem is ex-
panded exports at stable world markets
at higher prices. Under the umbrella
of favorable world markets, the develop-
ing nations believe they can diversify
and expand their economies.
Two things are certain: Most Latin
American countries do not earn the im-
port credit that they feel they need to
achieve a satisfactory rate of economic
growth: and, second, they believe that
the answer to their problems lies in some
form of regulation of the world markets
for primary goods which are controlled
in one way or another by the industrial
nations. They believe primary products
are sold in a buyer's market whereas in-
dustrial goods are sold in a seller's
market.
It is obviously very frustrating to be-
lieve that the solution to one's problems
is dependent on the good will of other
nations. In the case of the Latin Amer-
ican nations, the expression to their frus-
tration was found in UNCTAD and the
meetings which preceded it.
These meetings are especially signifi-
cant because they portend a new aline-
ment in world relations. We no longer
have an inter-American dialog, but a
world duolog with industrial nations
more or less alined on one side of the
conversation and the developing nations
alined on the other.
The effects of this alinement were cer-
tainly felt at UNCTAD where the de-
veloping nations clearly dominated the
proceedings. If it maintains coherence,
it will certainly be heard again in in-
ternational organizations in general and
in inter-American relations in particular.
The United States has clearly sup-
ported efforts of economic organization
in the hemisphere, such as the Latin
American Free Trade Association and
the Central American Common Market.
These groups are directed toward self-
help by increasing intraregional trade.
However, they also represent a possible
base for a future duolog between the
north and the south.
I believe that several important ob-
servations can be made about this con-
ference:
First. The Latin American govern-
ments remain keenly sensitive to the pos-
sibility that wide price fluctuations of
their principal export commodities may
cause a recurrence of serious balance-of-
payments deficits, thus wiping out their
Approved For Release 2003/10/10 : CIA-RDP67B00446R000300160013-8
 March 24, 1965' " JV "" ' 'e 0R'U~RESSIONAI'RECQRA H QUS '
sulated this effort from the fear of Fed-
eral control. Alsp, the National Science
Foundation has no institutional interest
in the administration of public educa-
tion.
This .cannot be said for the U.S. Office
of Education. , By its very nature it is
interested in educational policy, as dis-
tinct from the advancement of knowl-
edge in particular fields. The distinction
is profound.
Recent amendments to the National
Defense Education Act extended the
teacher preparation of the Office from
the fields of modern languages and stu-
dent counseling into the areas of English,
geography, reading, and history. The
research centers in title IV of this, bill,
and the Federal-local supplementary
centers in title III clearly project the
Office into every aspect of the school
curriculum, including the subjective and
politically charged fields of the social
sciences.
In terms of our structure of educa-
tional control, to say nothing of public
policy, this progression of Federal in-
fluen& in the sciences to Federal in-
fluence in the social sciences is a quan-
tum leap toward a centralized standard-
ized, uniform national school system.
Whether it is wise to make this "great
leap forward" should be a question for
intensive national debate. There can
be no debate, however, about the fact
that such a leap is being proposed.
THE ACTUAL SCOPE OF THE BILL
Aside from passing references in title
I to "educationally deprived children"
and the use in that title only of a dis-
tribution formula based upon the num-
ber of children in low-income families,
this bill is not confined to the needs of
the educationally deprived.
The actual scope of the bill ranges
over the entire spectrum of American
education and probes into its most sen-
sitive and vital areas., The textbooks
and instructional materials in title II are
not, limited to needy children or im-
poverished schools, but are admittedly
provided as part of a general program;
the Federal-local school centers in title
III are not limited to the needs of de-
p4ived persons, or "problem" students,
but specify "persons of varying talents
and needs"; that is, everyone. The same
universal scope is found in the rest of
th~ bill.
It is a complete misnomer, therefore,
to label this bill as one for impoverished
and neglected children. Whether the
bill merits support or not is beside the
point. The true purpose of this bill is
to authorize general aid without regard
to need, and the clear intent is to radi-
cally change our historic structure of
education by a dramatic shift of power
to the Federal level. ,
Mr. PERKINS. Mr. Chairman, I move
that the Committee do now rise.
The mptiou was agreed to.
Accordingly, the Committee rose; and
the Speaker having resumed the chair,
Mr. BOLLING, Chairman of the Commit-
tee of the Whole House on the State of
the Union, reported that that Committee,
having had under consideration the bill
(H.R. 2362) tQ, strengthen and improve
educational. quality and educational op-
portunities in the Nation's elementary
and, secondary schools, had come to no
resolution thereon,
TRIBUTE TO VIRGIL I. GRISSOM
(Mr. HAMILTON asked and was given
permission to address the., House for. 1
minute and to revise. and extend, his re-
marks.)
Mr. HAMILTON. Mr. Speaker, a dis-
tinguished son of Indiana, Virgil I. Gris-
som, become the world's first space
pilot and the first man to venture twice
into the vastness of outer space.
As captain of the Gemini spaceship,
Major Grissom altered his flight path
and orbit in another historymaking
achievement in America's brilliant space
program.
In their 4-hour and 54-minute flight,
Astronauts Grissom and John W. Young,
wrote another chapter of excellence in
our Nation's continuing effort to reach
the moon and travel beyond.
Back home in Mitchell, in Indiana's
Ninth District, the Grissom family con-
tinues to follow the quiet pattern of
community life, while their most famous
son makes history.
The parents, Mr. and Mrs. Dennis
Grissom, live at the family home in Mit-
chell. Norman Grissom, "Gus' " older
brother, lives in Mitchell. Another
brother, Lowell, is in St. Louis; and a sis-
ter, Mrs. Joe Beavers lives in Baltimore,
Md.
Major Grissom is married to the for-
mer Betty L. Moore, of Mitchell, whose
father, Claude Moore, is still a hometown
resident.
Back in Indiana, this great space pio-
neer is known as "Gus," the railroader's
son who went to Purdue University,
joined the Air Force, and became a
much-decorated veteran of the air war
over Korea.
All the world knows he is the man who
rode the Mercury-Redstone flight of the
Liberty Bell 7 on July 21, 1961.
Launched from Cape Canaveral, the
flight was suborbital, but its success com-
pleted the Redstone program and laid
the foundation of our continuing series
of manned flights.
Now, it is this same "Gus" Grissom
who has had the well-earned privilege
to open another vital part of our pro-
gram of space exploration.
In Indiana, we are especially proud of
him and his many achievements.
ELIMINATE STATUTE OF LIMITA-
TIONS ON WAR CRIME TRIALS
(Mr. SCHWEIKER asked and was
given permission to address the House
for 1 minute and to revise and extend
his remarks.)
Mr. SCHWEIKER. Mr. Speaker, I am
disturbed by the upsetting possibility
that_the West German Parliament may
extend the statute of limitations for
prosecuting Nazi war criminals for only
4 more years. I speak out against that
possibility. Four years is too short a
period of time. I urge the German Par-
liament to consider that, for the heinous
crimes of genocide, this statute of limita-
tions should be extended indefinitely.
5597
There is no_ justifiable reason to do
otherwise.
I have been following with great inter-
est the progress of the West German
Government as it has moved toward ex-
tending the statute of limitations. It is
a subject which has evoked wide debate
within .the German Government.
Members of the U.S. Congress also
have registered their deep interest in this
debate. On January 22, 1965, I joined
with a .number of. other Members of Con-
gress in signing a petition to both houses
of the West. German Parliament, ex-
pressing our support for extending in-
definitely the German statute. of limita-
tions for the prosecution of Nazi war
criminals.
That was a good petition; it had a sig-
nificant effect, For just recently the
Bundestag,, the lower house of Parlia-
ment, voted overwhelmingly for the prin-
ciple of unlimited prosecution of war
criminals. It sent to a parliamentary
committee two draft bills, which would
eliminate the statute of limitations.
Only in this way can the Government of
West Germany be sure that none of the
mass murderers shall ever achieve im-
munity to prosecution. I hope the lower
house of Parliament in Germany will
have the fortitude and perseverance to
continue their argument for this change
in the law. I support their efforts, their
candor, and their courage.
I am aware that German law-article
103 of the Bonn basic law-may require
more than a simple act of Parliament to
extend the statute indefinitely. By ap-
plying the regular method of constitu-
tional amendment approved by two-
thirds of the members of both houses,
the statute could legally be extended in-
definitely and war criminals previously
not indicted could be prosecuted as they
are found. Four years is not enough.
The Government of the German Federal
Republic has legal power to do more; to
avoid a "reprieve from infamy" it must
use this power.
Certainly there is ample precedent for
having no statute of limitations on mur-
der. None of the 50 States in our country
has a statute of limitations. on murder.
Nor should any State or nation impose
such limitations.
The limitation for the prosecution of
war crimes to 20 years under the statu-
tory criminal law of the Federal Republic
of Germany does not have its origin in
any enactment concerning war crimes.
This limitation derives from the general
provision of the German Criminal Code
of 1871. By virtue of this code, prosecu-
tion for major crimes, including murder,
is barred by the lapse of 20 years, unless
the running of the period of limitation is
either interrupted or suspended. But the
crime of genocide, in which millions were
exterminated, cannot be judged under
the traditional standards for homicide.
Nor was genocide even contemplated
when this code was first adopted.
Genocide demands a different stand-
ard. It is time for that standard to be
established. It can be achieved by con-
stitutional amendment supported by two-
thirds of both houses. This is the action
which seems most advisable to assure
that the statute on genocide will be ex-
tended indefinitely.
Approved, For Release 2003/10/10 : CIA-RDP67B0044-6R000300160013-8
 ,' 08
Approved For Release 2003/1011 :`IA-RDP67B0044 Q00300160013-8
CONGRESSW AL RECORD - USE March 4, 1965
Excellent and thorough efforts by the
German Government have been made to
round up war criminals who may still be
at liberty. I am impressed by the work
that has ben done by state prosecutors
and investigations at the Ludwigsberg
Center, I have read with interest the
statistics on their success. But I urge
that the German Parliament extend the
statute of limitations indefinitely so that
the embarrassment caused by one unin-
dieted war criminal walking free on May
9, 1965, or even on May 9, 1969, may be
avoided. This is an eternal debt, still
owed-owed in perpetuity-to those who
lost their lives at Auschwitz, at Dachau,
at Belsen, at Buchenwald, or any other
center of infamy now part of the German
past.
RESULTS OF 1965 OPINION POLL
FOIL $2D CONGRESSIONAL DIS-
TRICT OF OHIO
(Mrs. BOLTON asked and was given
permission to' address the House for 1
minute, to revise and extend her re-
marks, and to include extraneous
matter.)
Mrs. BOLTON. Mr. Speaker, during
the past 3 weeks over 21,000 replies have
been received from residents of the 22d
Congressional District of 'Ohio' to my
1965 annual opinion poll. This response
has been most gratifying, and as in
previous years indicates the great in-
terest and deep concern people have in
the actions of their Federal Government.
It was good to receive the many hun-
dreds of letters and comments on the
questions containedon this poll. The
views expressed on-these issues together
with the results obtained on this ques-
tionnaire are most helpful to mein sens-
ing the real feeling of my constituents
on the important legislative proposals
coming before the Congress.
The question on establishing a na-
tional policy for control of water and
air pollution received the largest favor-
able response-88 percent, with only 6
percent opposing, and 6 percent having
no opinion on this issue. Residents of
the 22d District and all Greater Cleve-
landers are particularly familiar with
and sensitive to the question of water
and air pollution. It is their overwhelm-
ing view that local and State efforts
combined with those of private industry
are unable to handle this troublesome
problem without further Federal partic-
ipation.
Legislation to provide for presidential
succession brought forth an 80-percent
favorable response, with 11 percent op-
posing and 9 percent having no opinion.
The people of our Nation have been
aroused by the assassination of President
Kennedy to the immediate and dire
necessity of the Congress taking early
action to provide for the orderly transi-
tion of our Government in any future
emergencies.
The question bringing forth the least
favorable support concerned admission
of Red China to the United Nations, with
28 percent favorable, 59 percent opposed
and 13 percent having no opinion. The
repeal of Section 14(b) of the Taf t-
Hartley Act brought forth the next
lowest favorable response with 33 per-
cent favoring, 51 percent opposing, and
16 percent having no opinion.
With all the publicity on the 'subject
of health care to the elderly, and public
awareness that some Federal solution
must be forthcoming to assist those in
need, it is interesting to note the con-
cern of the residents of the 22d District
as to whether the social security ap-
proach is the best way to solve this prob-
lem. Favoring the social security ap-
proach were 49 percent of the replies,
with 45 percent opposing this method,,
and 6 percent having no opinion.
The House of Representatives recently
approved an appropriation to continue
the House Committee on Un-American
Activities. Residents of the 22d District
supported this action by a 4-to-1 major-
ity. It is also heart warming to see the
5-to-1 majority in favor of legislation I
have introduced to provide an income
tax deduction of the cost of college
tuition.
The complete results of this poll
follow:
Do you favor or oppose-
)Vied11c~al.care:
1. A hospital and nursing home program for the elderly paid through increased social s4curity payroll taxes on employers and employees?-__
jrm~igration: the skill of immigrants or their
2 Aboli joining close
. shinthe present "national origin" quota system in favor of a priority system based on
relatives in the United States? ------------------------------------------------------------ ---------------------------- ------------
Elimination of Federal excise taxes on such items as jewelry, cosmetics, toilet articles, furs, luggage, and ladies' handbags?
?Tabor relattiealions:'of con-
4. Re the Taft-Hartley Act which now permits States to enact right-to-work laws barring union membership as a con-
dition sec. 14(b) of of employment?--------------------------------- ---- --------------------------------------------------------------
Area redevelopment:
5, Federal aid to areas plagued by chronic unemployment?- ---_ _______________ _____________________________________________
Education:
6. A Federal scholarship program for needy college students?_______________________________________________________________________________
-7. An income tax deduction of the cost of college tuition?-----------------------------------------------------------------------------------
8.. The administration's general educational proposals for Federal aid in some form to all levels of education?-------------------------------
Water-air pollution:
9. Legislation to establish a national policy for control of water and air pollution?__________ ______________________________________________
Presidential succession:
10. The appointment by the President, with the consent of both Houses of the Congress, of a Vice President when a vacancy exists in the
ion of resi dent? ------------------?- ------- ------ --- --- -----------------------------------------
1. , 0C0 0 omen of Vice e8
con gressional committees:
1112. wing foreign of t e House Committee on Un-American Activities?. ---------------------
or Feign ollcy:
military and economic aid only to countries whose national policies are in basic agreement with the goals of the United
states? -------------------------------------------------------- ------------------------------------------------------------
13. Admission of Red China into the United Nations?_________________ _______-------___----.-------------------------------------
14. Liberalizing our trade relations with Communist nations? __-_-__-__ ------------------------ ______--_----------------------
15. Continued participation in the conflict in Vietnam?------------------------------------------------ ____-_-_____-________-____-_____
AUTHORITY TO USE GAS IN
VIETNAM
(Mr. CLEVELAND asked and was given
permission to address the House for 1
minute.)
Mr. CLEVELAND. Mr. Speaker, yes-
terday, several Members `of the House
commented 'oil the use of. nonlethal gas
in Vietnam., Whatever differences of
opinion there may be on this issue, I
think we can all agree that the decision
.to use the. gas is one that should have
been blade "at the highest level," the ex-
pression: used by the gentleman from
New York L14r. STRATTON]. I would as-
sume that means the President.
Therefore, it is surprising to learn that
President Johnson was not consulted
about the matter, even though it in-
volved "only tactical problems." One is
-reminded perhaps of the rather striking
debate that took place during the last
campaign over the feasibility of allowing
field commanders to employ tactical
atomic weapons under certain conditions
on their own authority.
The President, as a candidate, rejected
such a policy out of hand. The Repub-
lican candidate was characterized as
"trigger happy."
Now, it is odd to find that field com-
manders apparently have been allowed
33
66
68
78
88
11
17
No
opinion
to make a military decision with tre-
mendous political implications. The
news of it has certainly had international
impact. Our adversaries have been given
a propaganda opening.
Had this development occurred under
a Republican President, the other side of
the aisle surely would have been a tur-
moil of Members seeking recognition to
criticize such a decisionmaking process.
I would be the last to urge that we
shape our policies in the world in accord-
ance with the shifts of world opinion. I
support our President's policy in Viet-
nam but I emphasize it should be our
President's policy. In view of the state-
March 24, 1965 CO
meats made in the last campaign by the
President 'and members of his admin-
istration and candidates of his party, it
seelps only fair to ask how it was that
A proved For Release 2003 1?i 00160013-8
ft -o no~ave merle o ear nee
by the ulthi, to authority of the l ational
Governrn4nt, at"the bite Eloise.