FREE WORLD TRADE WITH NORTH VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000400060001-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 38
• Document Creation Date: December 16, 2016
• Document Release Date: June 21, 2005
• Sequence Number: 1
• Publication Date: April 28, 1966
• Content Type: OPEN

8832 Approved For Rt a P9?f L II&i ?7JE101q ? Q00400060001 April 28, 1966
subject has recently been given to the public
in the published hearings of the Senate Sub-
committee on Internal Security Laws. Cop-
ies of these hearings are available to all
schools. The teacher who uses such mate-
rials as assigned readings in her classroom
gives her pupils the satisfaction of knowing
that they are holding in their hands the very
latest published information on the subject
of subversive activities.
In conclusion, the reports and hearings of
the congressional committees furnish ma-
terials that are indispensable for an adequate
understanding of the ideology and operation
of the Communist Party In all countries as
well as the United States. Much of this ma-
terial is available in no other source. The
reports conform to the best research stan-
dards of scientific method. The information
is authentic and fully verified. These reports
should be in the hands of every teacher giv-
ing instruction relating to communism.
And they should also be found in the library
of every public and private school.
TRANSPORTATION, SALE, AND HAN-
DLING OF DOGS AND CATS FOR
RESEARCH PURPOSES
(Mr. KUPFERMAN (at the request of
Mr. MCCLORY) was granted permission
to extend his remarks at this point in
the RECORD and to include extraneous
matter.)
Mr. KUPFERMAN. Mr. Speaker, I
today supported the Helstoski and Bolton
amendments to H.R. 13881-Poage bill-
and also supported the motion to recom-
mit H.R. 13881-Poage bill-in order to
achieve a better bill with more coverage.
Unfortunately, the amendments and
the recommital motion were defeated.
I then reluctantly supported H.R.
13881-Poage bill-on final passage, in
order to attain a first step, although im-
perfect, in the fight for more humane
treatment for animals. We must not let
t1te lalatter rest here.
FREE WORLD TRADE WITH NORTH
VIETNAM
(Mr. CHAMBERLAIN (at the request
of Mr. MCCLORY) was granted permis-
sion to extend his remarks at this point
in the RECORD and to include extraneous
matter.)
Mr. CHAMBERLAIN. Mr. Speaker, I
have for many months been trying to
spotlight the nature and extent of free
world trade with North. Vietnam. On
numerous occasions I have sought to
present information about this shocking
aid and comfort being given to the war
economy of the Hanoi regime. Unfor-
tunately, and I believe unjustifiably, full
information about this trade has been
kept from the American people. The
Government has been keeping two sets of
books. For instance, in my report of
February 7, I listed 119 free world ship
arrivals in North Vietnam during 1965
as made available to me by the Depart-
ment of Defense. I said then that this
was not the true number but was the un-
classified number. The true number, I
said, was more than double the 119
figures.
After months of prodding, the Defense
Department today has finally agreed to
begin to release the true figures about
this trade which, although it has recently
been on the decline, still has not been
stopped. Today's decision, however, was
not easily obtained. My repeated pleas
for declassification made on the floor of
this House met with no response.
Finally, last month in the course of hear-
ings before the Armed Services Commit-
tee, I pointedly asked Assistant Secre-
tary of Defense Arthur Sylvester why the
Department was keeping a secret set of
books on this trade. In response, Mr.
Sylvester challenged the accuracy of the
figures I cited. In my defense, I simply
said the source of these figures was the
Department of Defense. Days went by
without any indication when an answer
would be forthcoming as Mr. Sylvester
had promised. I, therefore, felt com-
pelled to write the following letter which
I ask unanimous consent to be included
at this point in the RECORD:
APRIL 19, 1966.
lion. ARTHUR SYLVESTER,
Assistant Secretary of Defense for Public
Affairs, The Pentagon, Washington,
D.C.
DEAR SECRETARY SYLVESTER: When you ap-
peared before the House Armed Services
Committee with Assistant Secretary Solis
Norwitz on March 31, I asked why certain
facts and figures with reference to free world
shipping with North Vietnam were classified,
indicating my belief that the people of our
Nation should be fully apprised of this
trade.
At that time, you promised to give me a
full report about this situation but up to
the present date I have not received it. As
I am sure you are aware, I am deeply con-
cerned, not only about the extent of such
free world trade but about so much of the
information being kept from the public.
During our discourse, it appeared that the
classified figures you had were at variance
with those which had been given me. I am,
therefore, anxiously awaiting your report
clarifying this matter.
Thanking you for your courtesy, I am,
Sincerely yours,
CHARLES E. CHAMBERLAIN.
Today, I finally received an answer to-
gether with the first set of the declas-
sified statistics concerning free world
trade and I ask unanimous consent that
this material be inserted in the RECORD
at this point:
Free world ship calls at North Vietnam
4th quarter,
1st quarter,
1965
1966
United Kingdom-flag vessels. -
135
329
Norway -----------------------
3
0
(lrcece------------------------
3
4
Cyprus----------------------
2
2
France------------------------
1
0
Italy--------------- -----------
0
1
I Ownership: Singapore, 1; United Kingdom, 6; Hong
Kong, 28.
2 Ownership: United Kingdom, 2; Hong Kong, 27
As will be noted, this information goes
back only as far as the last 3 months of
1965. To underline the discrepancy that
has existed between what the Defense
Department has announced to be the
truth about this trade up until today with
the actual fact, I would merely point out
that while the unclassified figure of the
total number of arrivals of free world
ships during October, November, and De-
comber of 1965, was 21, it is now conceded
that there were, in fact, 44. And while
in the first quarter of 1966 the unclassi-
fled figure was given as 16, the true figure
as announced today, is revealed to be 36.
American people have been greatly dis-
turbed by reports of this trade even when
told less than half the truth about it.
Our efforts to win the struggle in South
Vietnam can not be aided here at home
by the official dispensing of misinforma-
tion which is designed not to protect our
security but to cover up ineffective
policies.
STATES ARE FINALLY GOING TO BE
CONSULTED ON THE AFTER-1972
HIGHWAY NEEDS STUDY TO BE
PRESENTED TO CONGRESS JANU-
ARY 1968
(Mr. CRAMER asked and was given
permission to address the House for 1
minute and to revise and extend his
remarks and include extraneous mate-
rial.)
Mr. CRAMER. Mr. Speaker, on Au-
gust 28, 1965, the President of the United
States signed into law Senate Joint Res-
olution 81, pertaining to the Federal-aid
highway program.
This law, Public Law 89-139, among
other things, stated that it was the sense
of Congress that the Secretary of Com-
merce, acting under authority of exist-
ing law and through the Bureau of Pub-
lic Roads, shall report to Congress next
January 1968 and in January of every
second year thereafter his estimates of
the future highway needs of the Nation.
There have been disturbing rumors
during the past few months that the
States might not be permitted to fully
participate in the formulation of the
plans for a program for improving the
Nation's highway systems after 1972,
particularly any possible extension of the
Interstate System. This has been a
matter of serious concern to many indiv-
iduals and organizations who are vi-
tally concerned with the proper func-
tioning of the Nation's highway programs
and with the States retaining an effective
voice in the determination of future
highway needs beyond 1972. Others are
also concerned that the anticipated Jan-
uary 1968 study of future highway needs
might not be sufficiently comprehensive
or submitted in sufficient time to permit
the Congress to adequately work its will
in determining legislation for the future
highway programs beyond 1972, when the
present highway program is scheduled
for completion.
During the first week in March, I re-
ceived a letter dated February 25, 1966,
from Mr. Floyd B. Bowen, chairman of
the Florida State Road Department, con-
cerning the participation of that depart-
ment in the formulation of the Federal-
aid highway program after 1972. Chair-
man Bowen stated in that letter that the
Bureau of Public Roads had not re-
quested to that date that his department
formulate any recommended future im-
provement program' for Federal-aid
highways.
On March 18, 1966, I wrote to the Fed-
eral Highway Administrator, Hon. Rex
M. Whitton, inquiring as to the progress
of preparation of the January 1958 re-
port to Congress and as to the participa-
tion of the States in its formulation. I
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 w it, 28, 1966 Approved Foj&[,e Pffi~I/2 ,C%~DP6~71 99Q 6R000400060001-1
U iE OF C ,)N,;RESSIONAL COMMITTEE
VIe 'xiiTALS
(Fly Dr. Kennet:n Colegrove, professor of
political science, (.,,. W. Post College of Long
Island University)
Many public schools as well as colleges and
universities fail to make adequate use of one
of our most important sources of accurate
ititonn.ation regarding the Communist inter-
national conspiracy.
't'his source is the large number of reports
and hearings on communism published by
congressional conutittees: The two most im-
portant of these sources are the resorts of
the Subcommittee of the Senate Committee
on the Judiciary on internal Security Laws,
and the reports of the Committee on Un-
tiinericau Activities of the U.S. House of
t.onresen tatives.
1?roin i,ime to time, I have asked teachers
who were not using congressional committee
materials why such a valuable source was
ignored. Sometimes, the answer by even col-
lege and university professors indicated an
ignorance of the existence of these materials.
hometinics, teachers excused their failure to
use these materials by declaring that the
committee reports were "mere propaganda"
or lacked "objectivity." Most teachers who
expressed such a prejudice against the re-
ports admitted that they had never road a
i:oport by either one of the two congressional
corn rn itteees.
The widespread propag.:aida against con-
! cession:d eon inittce investigations has in-
chided the charge that the congressional com-
mn.ittee reports lack 'objectivity.'' The ac-
cli ration of lack of "objectivity" is often
bandied by persons who have not even the
remotest idea as to the meaning of this tech-
meal term in scientific method. Among
ii:holars, it is generally assumed that objec-
tivity is attainable in the physical sciences.
At the same tune, most scholars seriously
doubt whether any studies in the social
.icicnces can ever achieve objectivity, or the
=complete absence of bias, prejudice, or pre-
mmticeived notions. Suffice is here to say
there are no textbooks, monographs, or
treatises in history, political science, eco-
nomics, or sociology which are "objective"
to the s:une manner as treatises in mathe-
mattes or the physical sciences. Perhaps the
i)o~;t that can be attained in all the social
sciences is an approximation toward objec-
ti v i Ly.
'l ucr committee reports, of course, fall in
i,he- field of the a)cial sciences. And here
he problem is not one of "objectivity," but
either the question whether the report or
asonogroph or findings meet the standards of
ss;icntific method in the social sciences.
What ire standards of scientific method in
the: social sciences'? 'T'hese standards in-
clude: (1) documentation of sources; (2)
:u-curie' of data uud verification of evidence;
(31 authenticity of quotations and avoidance
of distortion of quotations; (4) scientific
:analysis of data; and (5) the logical formula-
l;iou of Cunclusfaus.
ii honest appraisal of the committee re-
puris will show that they fully meet the
'Ii ions of scientific method in the social
;e:iences. In fact. the committee reports are
detiberately prepared in conformity with the
n;inons of modern scientific method. 'Phe
sc:;carcli ,talfs of the committees do not en-
in name coiling, card stacking, ques-
tion begging, glittering generalizations, and
jr +,tepropaganda tricks. On the contrary,
I,he research stalls of the committees em-
ploy approved standards of research in test-
ing; the creditability of evidence, in the verif-
lc:dion if. sources, in the analysis of data,
and in Lire fcninilation of conclusions.
phviocisly, the committee reports contain
a large anrourit of testimony by experts and
eyewitnesses which is derogatory to Commu-
nir;i; leaders and Communist regimes. But
Ito research stalls treat such evidence as
hnn:aiinoi,y, the validity of which must be
appraised i.n a scierd;ific manner. Quotations
of Communist leaders are always carefully
verified. And they are not distorted or lifted
from context. Nothing is stated as a fact,
which has not been carefully substantiated.
Most of the reports have complete docu;:nen-
tation, such as would be found in a treatise
by an erudite university professor. Indeed,
the staffs of the committees show the same
intellectual honesty found in the best re-
search work in American universities and col-
leges, and in the research institutions sup-
ported by the Rockefeller Foundation, the
Ford Foundation, the Carnegie Corporation,
or any of the other:, great foundations. It is
naive to assume that the research staff of a
governmental agency cannot maintain the
same scientific standards as the stall of it
private institution.
The reports of the congressionr.:.1 con?mit-
tees contain a vast array of .:acts care fully
verified in thousands of hours of stall re-
search. For instance, the Subcommitt.:'e on
Internal Security Laws of the Senate t om-
mittee on the Judiciary has issued a commit-
tee print on "Soviet Political Agreements and
Results." This compilation enumerates
(with details covering 100 pages) over 200
violations of treaties and other international
agreements by the Soviet Union. I have
used this compilation on numerous occa;Lons,
and have never found an error of fact. Nor
have my students who frequently study this
compilation ever reported, to Inc any error of
fact.
Not only do the committee reports finish
a vast amount of accurate informatio,i but
also the information is generally pre?cnted
in convenient form. For instance, the first
volume of "Facts on Communism," i sued
by the Committee on Un-American Activities
in 1960, is devoted to "The Communist ideol-
ogy." T2ie volume gives, with proper : ocu-
nientation, the principal Communist doc-
trines, arranged under 80 topics. Will!. this
booklet in her hand, a high school teacher
who, for example, is unfamiliar with theft his-
tory of the Communist doctrine of the' "in-
evitability of war," can promptly inforni her-
sell regarding this dogma with very littlr i:ime
and effort. Or again, she can readily ascer-
tain the Communist distinction be;.ween
"propaganda" and "agitation" or still '.;;ain,
fathom the Marxis`;-Leninist hocus-pocts of
"dialectical materielism."
As to documentation, a large part e the
contents: of the committee reports is baa and on
testimony given under oath ! n the he e rings
of the committee and in other authent sated
evidence laid before the committee. To re-
ports indicate the sources of such evict?nce.
Many reports, such as the Senate does,nent,
prepared by the Subcommittee on Ir':.crnal
Security Laws on "The Comn-uvnist Pr: ty of
the United States of America.." contain ma-
terial acquired by research as well as d,?rived
from testimony before the several celnrni.t.-
tees. Another example nf' a completely 'locu-
me,nted research paper is "The Soviet Empire:
Prison House mP Nations and Races: A ;ttidy
in Genocide, Discrimination and Abu ;e of
Power" (S. Doc. 122, 85th Cong., 2d sees,
1958). In all such cases, the reports indi-
cate the source of all evidence obtair,'d by
research. In ether words, the resaareh ;ataffs
of the committees comply with the star I-irds
of scientific method regarding docuna nta-
tion of sources in the social sciences.
It will not the amiss to emphasize again
the remarkable corivenierice of the sortie of
the committee reports. :Forty years al :,, the
standard treatise for studying the incoicist-
encies and false predictions of comm)tuism
was Vladimir G. Simkhovitch's "Ma'rxism
versus Socialir;m" (New York, 1913). But
that was 40 years ago. Today, where cc,.n the
student find in systematic and succinct form
a review of the inconsistencies of modern
Marxism-Leninism and Soviet practice?
There are many ponderous tomes. Brit for
brevity and modernity, none of them Can i hold
a candle to the 59: pages of the committee
print of the Subcommittee on Internal Secu-
rity Laws, published under the title of "Con-
tradictions of Communism." The 172 foot-
notes in this compilation furnish all that is
required in the matter of scholarly docu-
mentation.
The reports of the congressional comrnit.-
tees, of course, cannot take the place of ade-
quate textbooks, study guides, or syllabuses.
Textbooks, of course, must include the
pedagogical devices required by educational
experts. At the same time, however, the
committee reports offer a vast amount of
pertinent material to supplement a textbook,
or to supply the broad field of information
required by a study guide or syllabus.
Again, a textbook. by itself, cannot furnish
,,It of the workshop activities that should ac-
company studies in the social sciences in the
public and private schools. There are prob-
lems which the pupil should attempt to solve
outside the confines of his textbook. Waiere
did the authors of a textbook obtain the in-
formation furnished in the textbook? What
are the various sources of information on the
subject? Has the textbook failed to present
evidence that might conflict with the .-on-
clusions of the textbook? What further in-
formation should be offered on any subject?
These are Important questions. And the
pupil should be encouraged to test these
problems for himself.
With reference to questions which unfor-
tunately have become controversial, the com-
mittee reports furnish information that may
be difficult to obtain elsewhere. No textbook
adequately covers all phases of many of these
problems. A case in point is the student
riots in San Francisco in May 1960. Incon-
testable proof shows that a large number of
students in the San Francisco area were the
dupes of the Communist Party In staging
these riots. And, since American youth were
involved in this spectacular outburst of vio-
lence, boys and girls in our high schools in
all States of the Union are particularly in-
terested in this episode. If this case is; de-
liberately omitted from classroom discu.s.;ion,
the chances are that some bright boy or girl
will raise the subject. The prudent leacher
will take the precaution to arm herself with
authentic information. For this purpose, slue
should study the report entitled "The Com-
munist-Led Riots Against the House Com-
mittee on Un-American Activities in San
Francisco, Calif., May 12-14, 1960" (Apure
Rept. No. 2228, 86th Cong., 2d seas., O(t. 7,
1960). In particular, she should study the
report of these riots by J. Edgar Hoover the
Director of the Federal Bureau of Invesi.iga-
tion, published under the title of "Commu-
nist Target-Youth: Communist Irtfiltr.tion
and Agitation Tactics" (July 1960). She
should complete this preparation by a study
of "The Truth About the Film 'Operation
Abolition' " (House Rept. No. 1278, 87th
Cong., let sess., Oct. 5, 1961). The alert
teacher will not allow herself to be em-
barrassed by lack of information on a sub-
ject of this character,
The well-informed teacher will also punt
out to her class that youth has always been
a special target of Communist tactics. grid
that in recent years the Communist I'.irly
in all countries has instigated si:udenIss to
mob violence. Where will the teacher bud
evidence for this conclusion? It will sullice
to read the committee print of the Sr pate
Committee on the Judiciary, entitled "C'orn-
munist Anti-American Riots: :Mob VioP'n ee
as an Instrument of Tied Diplomacy: Lop.
Caracas-La Paz-Tokyo" (Aug. 26, 1960).
In particular, the committee reports and
hearings often present more timely informa-
tion than can be found in any textbook or
study -tilde. The best textbooks, of co.r: se,
depend very heavily upon the findings or the
committees. But, at the present moment,
I know of no textbook that shows the con-
nection of the propaganda organ, the Fair
Play for Cuba Committee, with the Corcinu-
nist regime of Fidel Castro. Data on this
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 April 28, 1966 Approved CONGRESSIONAL06/ R~fibA-RC}~PN7Rf446R000400060001-1 8887
OLD SYSTEM'S FAULTS issued Bulletin 66-3 to all major agencies, Mr. PROXMIRE. Mr. President, the
The complaint against the old "input- telling them.to set up staffs and begin work- administration's proposal to cut the
oriented" budget is simple. Too.many pro- ing on program categories for the new sys- special milk program by 80 -percent and
grains, Presidential aids say, are presented tem. redirect the program to the needy, as
for decision to an agency head or the Presi All major agencies now have a PPBS staff well as those in schools without a lunch
dent with objectives unclear, likely benefits or the nucleus of one. The Agriculture De-
vague, costs uncertain, and alternatives lack- partment has 12 men working on PPBS in the ated by program, the was House onTuesdayoverwhelmingly repudi-
ing. There is little indication of the long- Secretary's office, plus full or part-time men .
term commitments at stake. Decisions tend in each of the Department's, eight major di- The House Appropriations Commit-
to bunch up in November and December, and visions. Many of the men putting the sys- tee's report on the fiscal 1967 Department
then are made in a crisis atmosphere. Cer- tem into effect are, expectably, alumni of of Agriculture and related agencies ap-
tain bureaus within an agency operate almost the Pentagon or of Rand Corp., which sup- propriation bill set the tone. In concise
independent of top control, relying on pro-
decided to provide $103 why the
tection from powerful Congressmen or out- There still are ernm nt. All 66r3 in ys,
out of the are many PP "All tens wand fashion, the
side pressure groups. one longtime public official, "is to lion for school milk in the fiscal 1967
The new ssotcle seeks lay out budget snorts think things through and get them in on budget. The report read:
potential almost alternatives, forces time, something any good man should have At a time when many young Americans
close examination n cof fy that that
close tand been doing all along." are being turned down for military service
possible inefficiency and duplication, annd
long-term consequences. ORGANIZED COMMONSENSE because of defects traceable to nutritional
Each agency now is setting up a number Budget Bureau men counter that PPBS is deficiencies, it is recommended in the budget
of broad goals it seeks to achieve, and then needed precisely to require efforts to think that the special milk program be virtually
more specific subcategories. All operating things through. "It's really no more than or- eliminated. * * * The reduction in the spe-
programs with similar purposes are being ganized commonsense," one official admits, cial milk program from $103 million to $21
grouped into the appropriate category or "but that word 'organized' is just as vital as million-a cut, of $82 million-would deny
subcategory, no matter which subordinate the 'commonsense' part. PPBS forces peo- supplemental milk *to about 80 percent of
unit or division does the job. ple to consider costs, to consider alternatives, our schoolchildren rwho ar Furthere the ere fiting
PPBS then attempts to show the cost of to look ahead."
each program and possible alternatives, in- Another objection is the difficulty of meas- of those needy children selected for free milk
eluding pay, research and development, uring or "quantifying" results. "It's utter could result in the complete abandonment
capital investment, operating expenses, and garbage," an agency head declares. "How of this valuable program. * * * The bene-
so on. Next comes the most difficult part: an do you quantify the extent to which pre- fits of this program to the health and dietary
attempt to measure in specific. nonfinan- kindergarten training now will reduce pov- habits of schoolchildren of this Nation are
cial terms just how much good is expected erty 15 years from now?" well recognized. Many witnesses have testi-
from the program-how much educational PPBS backers admit such assessments fled to the benefits to school attendance and
levels will be raised, or poverty reduced, or often will be difficult, especially, say, in an improved approach to learning by stu-
water pollution abated. For each program foreign affairs or in some basic research pro- dents receiving the mlik free or at reduced
all these cost and benefit figures are calcu- gram that could lead unpredictably either to prices.
lated for 5 years or longer, a cancer cure or to a new plastic. But they ion bill came to
floor n floor the the House appropriation Till cam to
Then the benefit-cost analysis for one pro- contend that most results can be estimated When
gram will be compared with benefit-cost by making reasonable assumptions.
analyses for other programs serving the same "The Job Corps is supposed to make kids Appropriations Committee was highly
ends, or even completely different ends. capable of holding better jobs," says one praised, and rightly so, for adding $82
Then, it is argued, top Federal officials will administration official. "You can look at the million to the budget request for the
be in a good position to make crucial jobs obtained by kids who go through the school milk program. In fact, more fa-
choices. Corps, the jobs obtained by kids who don't, vorable comments were made on this
So far the poverty program, which has and make some allowance for the fact that item than n were voiced on any other item
used PPBS for over a year has made most the Job Corps staff is working extra hard in the bill. Twenty-seven House tem
progress on the new system. The space and to get jobs for their kids. Then you have
atomic energy programs, Agriculture De- extra values such as a reduction in juvenile bers took the floor to commend the com-
partment, and parts of the Federal Aviation delinquency, or better family relationships, mittee for providing adequate funds to
Agency are well along. Many other agencies or the impact o?h younger brothers. And you continue the program at this year's
are starting slowly. can then say at so many dollars spent levels.
While the present focus is on getting PPBS on the Job Corps probably will provide this he Senate
shares the President, other I body's know concern that that the
going within each agency, eventually the many more kids with decent jobs, and that Mr.
over the
Budget Bureau would stress comparisons be- you'll also be getting some additional bene- d Bother body's cutback.
This is
tween agencies also. Some agencies already fits you can't measure so precisely." proposed
attested ho to it the fact that 67 of
are comparing notes to set up similar pro- ROLE OF POLrrzcs
gram categories. The Agriculture and In- A far more basic reservation many ofll- my Senate colleagues have cosponsored
terior Departments and the Department of cials have is whether the economic analysis my bill to make the school milk pro-
Housing and Urban Development are doing actually will control major decisions or gram permanent. As a member of the
rough consultation on categories for recre- whether political realities will dominate. Agriculture Subcommittee of the Sen-
ation programs. "Suppose we find the Job Corps is doing ate Appropriations Committee, I intend
Before the McNamara revolution at the a much better Job than the Neighborhood to do everything in my power not only
Pentagon, each military service had Its own Youth Corps, or vice versa," one official sug- to avert a big cutback in this program
budget, broken down into outlays for pay, gists. "The President and Congress still are but also to actually increase the pro-
research, and maintenance, construction, going to make a political decision on the over last year's vel, to bring i-
research, and the like. Mr. McNamara basis of what is most popular or the least gram
switched to nine major missions: Strategic trouble back home." more into line with increasing participa-
retaliation, continental defense, airlift and But PPBS advocates insist that the new tion as well as the jump in the school-
sealift, general-purpose forces, etc. The system at least will give agency heads and age population.
were allocated all the costs of developing, or to show that new program a is actually SHOWS VIETNAM WAR HAS NEG-
procuring and operating it. Then the more valuable than more popular new pro- SHOW E IMPACT ON ECONOMY
amount of protection or deterrence offered gram B.
by each system was assessed. Mr. PROXMIRE. Mr. President, a
END OF A CARGO PLANE HOUSE GIVES OVERWHELMING few weeks ago on this floor, I pointed out
With such information, it is said, Mr. Mc- SUPPiORT TO RESTORATION OF that the Vietnam buildup was having
Namara recently was able pl to conclude that a very.limited impact orb our economy. 1 the existing cargo plane wasn't as effec- SCHOOL MILK FUNDS In fact, I inserted figures in the RECORD
tive as the proposed, much larger C-5A for Mr. PROXMIRE. Mr. President, I to show that we spent a greater per-
port pr obabl the equipment t a big military 0-141 ask unanimous consent to speak for 2
centage of our gross national product on
art pr have carry. C-14-
procurement would ent accordingly was s tapered off. additional minutes. defense in the years 1956 through 1964
Last summer Mr. Johnson ordered the en- The PRESIDING OFFICER (Mr.
tire Government to prepare to shift to the CHURCH in the chair). Without objec- than we, in all likelihood, will spend in
new method. In October the Budget Bureau tion, it is so ordered. fiscal 1967.
Approved For Release 2005/06/29 : CIA-RDP67B00446R000400060001-1
 Approved For Release 2005/06/29 : CIA-RDP67B00446R000400060001-1
CONGRESSIONAL RECORD -SENATE April 28, Y tk6
Now the Defense Department has come
up with a study which reaches substan-
tially the same conclusions, using slightly
different; statistical indicators. This
ztudy shows that the economic effect of
i,he Vietnam war is less than one-third
that of Korea. It points out that whereas
the share of gross national product go-
ing into defense expenditures increased
by 9.1 percentiles during the Korean war,
projections for the Vietnam buildup show
an increase of only 0.4 percent.
This is an incredible testimonial not
only to the strength of our economy but
also to the ability of Secretary McNa-
inara to keep our defense apparatus well-
oiled and ready for any contingency. It
:11ould give the prophets of economic
doom and gloom some food for thought.
Above all, it shows that our dynamic
economy is perfectly capable of providing
guns and butter.
T ask unanimous consent that a sum-
mary of the study as well as the study
itself be printed in the RECORD.
'w'here being no objection, the summary
was ordered to be printed in the RECORD,
as follows:
THE ECONOMIC IMPACT OF THE VIETNAM BUILD-
lip is f,E:si THAN ONE-THIRD THAT OF
KOREA
ROMMARY
Compared to the Korean buildup, the eco-
noinic impact of the present military build-
up for Vietnam is one-fourth to one-third as
large.
Defense expenditures as it percentage of
gross national product were much higher in
the Korean period (14 percent as compared
to 8.1 percent).
A more significant measure of economic im-
pact Is the increase In defense expenditures
from the prebuildup years. During the
Korean buildup, the share of gross national
product going to defense expenditures In-
creased by 9.1 percentiles (4.9 percent to 14
percent of then gross national product).
Projection, for the Vietnam buildup show an
increase of only 0.9: percent (7.7 percent to
8.1 percent of current gross national prod-
uct).
Although increases in defense spending for
Vietnam are much lees, they do come at a
time of already low unemployment and on
top of significant fixed business investment.
At the start of the Korean buildup there
was 5.2 percent unemployment (as against
4.6 at mid-1965) and 9.6 percent of gross na-
tional product was going into business fixed
investment (as against 10.2 percent at the
start of the present buildup). Making the
extreme CEA assumption that 1 percent less
unemployment produces across the board', 3
percent more gross national product, there
was 1.8 percent of gross national product
more economic "slack" in mid-1950 than in
raid-1965.
Summary a`able--Comparative impact of de-
fense ;5uildup, Korea and Vietnam
In percent]
I. Differences in size of buildup:
Percent of (;NI' going to
defense expenditure:
Start of buil.dun______
Peak of buildujp__-___
Increases during
buildup-. --------
Ilf. Ditfcrences in domestic
ecunonny at start of
buildup: Greater use, of
resources at start of Viet
n:.ni buildup -------,------..._
III. Conipnrarive impact in-
eluding the difference in
rl