DURIEUX TO RUSK: QUESTION OF THE HOUR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000400090001-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 16, 2016
• Document Release Date: June 20, 2005
• Sequence Number: 1
• Publication Date: July 29, 1966
• Content Type: OPEN

16$08
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CONGRESSIONAL RECORD - HOUSE July 29, 1966
Mr. CELLED. Mr. Chairman, I move policy. Like most Americans, however,
that the Committee do now rise. he recognizes that communism has
The motion was agreed to. forced this struggle upon us and as he
Accordingly, the Committee rose; and puts it:
the Speaker having resumed the chair, I myself would rather see no flag at all
Mr. BOLLING, Chairman of the Commit- over our country than the Star Spangled
tee of the Whole House on the State of Banner flying in shame and disgrace.
the Union, reported that that Commit- I urge all of the Members of this body
tee having had under consideration the to read this very thoughtful letter:
bill (H.R. 14765) "to assure nondis- '[From the Ashland Times-Gazette,
crimination in Federal and State jury July 26, 1966]
selection and service, to facilitate the de- To the EDITOR:
segregation of public education and sure, we could get out of southeast Asia
other public facilities, to provide judicial and perhaps save thousands of lives. You
relief against discriminatory housing wouldn't have to open your morning papers
practices, to prescribe penalties for cer- to read headlines about a bloody war which
tain acts of violence or intimidation, and you think is foolish and very costly. To
for other purposes," had come to no res- begin sowith, you ns being dd ft habetoreor about
olution thereon.
drive a car and life in
h t
ld
tional-because it is the title that affects
them most directly.
Mr. Chairman, although I feel that
this section of the bill is without ques-
tion unconstitutional, I do not believe
it to be any more unconstitutional than
the rest of this bill.
In 1963 Supreme Court Justice Harlan
stated in the case of Peterson against
Greenville :
Freedom of the individual to choose his
associates or his neighbors, to use and dis-
rose of his property as he sees fit, to be
irrational, arbitrary, capricious even unjust
in his personal relations are things all en-
titled to a large measure of protection from
government interference.
This language states as clearly as pos-
sible that the Federal Government has
no business telling a person to whom he
may or may not sell his home. CORRECTION OF ROLLCALL
TITLE V
Mr. PRICE. Mr. Speaker, on rollcall
Title V of the omnibus civil rights bill No. 186, on July 28, a quorum call, I am
is supposedly based on the equal protec- recorded as absent. I was present and
tion clause of the 14th amendment. But answered to my name. I ask unani
this title would apply to the action of mous consent that the permanent REC-
both States and private individuals, ORD and Journal be corrected accord-
which in my judgement violates the ingly.
Constitution. I quote from the Supreme The SPEAKER. Is there objection to
Court in the 1948 case of Shelly against the request of the gentleman from
Kraemer: Illinois?
The principle has become firmly embedded There was no objection.
in our Constitutional law that the action Mr. DON H. CLAUSEN. Mr. Speaker,
as s may the 14th fairly on rollcall No. 189, a quorum call, I am
such action section
amendment nby is the only first
a
be said to be that of the State. That amend- recorded as absent. I was present and
I ask unani-
ment erects no shield against merely private answered to my name.
conduct, however discriminatory or wrong- mous consent that the permanent REC-
ful. ORD and Journal be corrected accord-
enoug
o
hardly o
general, might seem a lot more peaceful all
around.
But while you're thinking of how good
things would be, you might also stop and
remember the some 4,500 boys who have al-
ready paid the supreme price, their lives.
You might also think of the thousands who
have been wounded, many crippled for life,
because while people in this country protest,
hold marches and demonstrations, burn draft
cards and write their congressman about
how bad and awful this war is (these men,
who several months ago, in a great many
cases, hadn't even seen an M-14 or a 45, who
knew no more about the ways and means of
war than about the man in the moon, much
less places such as Chu-1i, DaNang or even
Viet Nam itself) were and still are fighting
and dying in a war of which few even know
how it started. But yet, you could ask any
one of them why they were there and behind
every reason would be an answer similar
b
tt
d
a
ere
ear.. . its colors from the Asian
under the law, this section would-afford The SPEAKER. Is there objection to Pointing towards a
special protection to certain groups. the request of the gentleman from sun, showing not eo lythe effects ofoweather
TITLE VI California? but also bearing the evidence of war. Here
Title VI authorized the Attorney Gen- There was no objection. a man might say, I have a son at home and
because of him and his mother and all peo-
eral to institute court proceedings to ple's children, I am here.
and other public afac lit es. This section ASHLAND, 'OHIO, SAILOR SPEAKS States of America. I believe in her past, lher
would grant him the power to institute OUT present but most of all her future and to
such proceedings as he may desire even (Mr. ASHBROOK asked and was giv- her future. I will pledge my own life. I
though there may be no complaints of en permission to address the House for also believe in that banner up there. Mil-
any discrimination in the case involved. 1 minute, to revise and extend his re- lions have given their lives in its defense. I
am no different. God gave us the privilege
This section to me reveals that those marks, and to include extraneous mat- to live in a country of which there is no
proposing this legislation have no con- ter.) equal and I intend to give this opportunity
fidence in our present judicial procedure. Mr. ASHBROOK. Mr. Speaker, every to not only my children but everyone who
There is no doubt in my mind that this now and then you run across a state- believes in freedom and justice for all.
bill would further restrict the indi- ment that cuts through all of the double- Therefore, we must stay in Viet Nam until
vidual liberties so granted by our talk, all of the veil of duplicity of pur- Communism is driven, not only from Viet
Nam, but the entire world. It is not only a
Constitution. pose and protest which seems to cover threat to our way of life, but to our very
In summary, this bill is unnecessary our current Vietnam involvement. In existence as a free nation on this planet.
and unconstitutional. It does not en- reading the July 26, 1966, issue of the If we admit to defeat in Viet Nam, we'are
courage equality for all-it seeks to pro- Ashland Times-Gazette, I saw the fol- not only letting our boys down, we are/ letting
vide special treatment for minority lowing statement by a young serviceman every American who ever died for America's
groups. This bill must be defeated in who is heading for Vietnam: cause down. But most of all, we would be
country down and we might as
order to guarantee the rights and liber- I am here because I believe in the United letwttlintg ke our down Old Glory forever. I. myself,
Cos tithe individual as provided in our States of America. would rather see no flag at all over our coun-
onstitution. What a succinct statement. Sounds try, than the Star Spangled Banner flying in
i
shame and disgrace
,. --- -- - ` --
---'
.
he
N All
ment offered by the gentleman from power or pocketbook but by their patri-
N
North Carolina [Mr. WHITENERI. otic fervor. (Boyd, who is the 19-y r d ri)
Mr. WHITENER. Mr. Chairman, I Robert C. Boyd is in the U.S. Navy. and Mrs. Charles E. Boy
'
l
t
eav
o
demand tellers. Like many young servicemen, he has Ave., is scheduled
Tellers were ordered, and the Chair- seen the grumblings, the anti-American in November: Ed.)
h
d
o
oes w
man appointed as tellers, Mr. WHITENER slogans and the campus weir
and Mr. CELLER. protest our involvement in Vietnam. He
The Committee divided and the tellers is probably like most Americans when he
reported. that there were-ayes 51, noes feels a regret that it is necessary in this
116. supposedly enlightened age to still use
THE HOUR
warfare as an instrument of national - permission to extend his remarks at this
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CONGRESSIONAL RECORD = HOUSE 16967,
hearings, where this is dealt with-that guarantee the fundamental rights of all Republicans opposed it by a margin of
is the only reference I find to the title. our citizens. greater than 5 to 1. In doing so, they
We have the Attorney General before The New York Times today carried an voted for legislative responsibility on the
this committee testifying that there is editorial, entitled "Legislating Bias," and part of this body.
no evidence of discrimination in the it is so appropriate to our discussion here H.R. 14765 is composed of eight titles.
Federal system that he believes requires and now that I am taking the liberty of I want to say at this point that I have
any further legislative action. We have inserting it in the RECORD at this point. always been opposed to this type of omni-
the Attorney General saying that he is I would call the attention of all my col- bus legislation. The administration has
not taking it up with the Judicial Con- leagues to this editorial, which is, I be- made a practice of presenting this type
ference. He has not sought, in effect, lieve, self-explanatory. of legislation intending to include in it,
the opinion of the judges. The editorial follows:
record that we have made here on the The House of Representatives is now en-
floor 01 the House, which shows that out gaged in the unseemingly specatcle of decid- TITLE I
of the 90 U.S. districts in the Federal ing who shall be allowed to discriminate Title I of this bill would eliminate al-
court system, not a single judge has come against Negroes and who shall be required to leged discrimination in the selection of
forward and urged or approved the en- treat them fairly. Federal Juries. However, in an unprec-
actment of title I of this bill. Representative CHARLze MATIHIAS, Maryland edented manner, this section received
Mr. CASEY. Mr. Chairman, will the Republican, believes the distinction should very little consideration by the Judiciary
be drawn at the city line. Those who rent
gentleman yield? apartments in buildings with five units or Committee. This is one of the faults of
Mr. WHITENER. I yield to the gen- more will have to be good Americans and not omnibus legislation-invariably, some
tleman from Texas. ' discriminate against otherwise qualified ten- sections of the bill are either purposely
Mr. CASEY. In further reference to ants just because they are Negroes. Since or accidentally overlooked.
this, at the bottom of page 1185 of the these buildings are mostly in the center of TITLE n
hearings, the gentleman from Ohio [Mr. cities, bigotry would be banned there. But
at the city line where the suburbs begin and Title II would supposedly prohibit so-
MCCULLOCHI asked if the Department of the neighborhoods are made up of one-family called discrimination in the selection of
Justice in the last 25 years had recom- houses, discrimination against Negroes would State jurors. All a defendant would
mended to the Judicial Co feren
t
ce or
o
recommendations that there be uni- The defenders of the suburban interests be- the burden of proof would shift to the
formity, to which the Attorney General lieved that they had achieved their goal of State to prove the charge untrue. Under
said "No." writing this dual standard into the civil
rights bill when this provision all criminal prosecutions
Mr. WHITENER. That is correct. they amended Title IV in
committee. But since the Attorney General could be delayed indefinitely. In the
I hope Members will vote in support of has expressed the opinion that brokers acting light of several recent Supreme Court
the amendment. on behalf of bigoted property owners would decisions increasing the rights of crim-
The CHAIRMAN. The Chair reCog- not necessarily be immune, these proponents inals, and the recent riots in Chicago,
nizes the gentleman from Ohio [Mr. Mc- of the double standard have another, more South Bend, Omaha, Cleveland, and
CuLlocHi to close debate on the amend- explicit, amendment to make their intent Brooklyn, this is clearly not the time to
meet. clear. It leaves no doubt that both brokers further restrict our law enforcement
Mr. McCULhOCIi. Mr. Chairman, and owners can discriminate with no worry
notwithstanding the about punishment, It is a dismal per- machinery.
questions I pro- formance. TITLE III
pounded to the Attorney General and his what is most astonishing is that Repre- Title III of this omnibus civil rights
answers thereto, I came to a studied sentative EMANUEL CELLES and the other Ad- bill would authorize the Attorney Gen-
judgment that title I should have my ministration managers of the bill seem in- eral to institute proceedings to prevent
support. clined to accept this latest amendment as a person from having his civil rights vio-
The method of selecting Federal jurors the neecssary price of Republican support lated. Undoubtedly, if this title is en-
and grand jurors is not uniform in all for the bill. Admittedly Mr. CELLER and his
Democratic colleagues in the House have re-
parts acted, the courts would be flooded with
of-the United States, and judges ceived something less than stout-hearted cases, since the term "civil rights" can
who are most conscientious find that the support from the white House and the Jus- be construed to cover any form of human
guidelines are not all clear. By reason tice Department on this issue. But that is activity. The Federal Government
of the fact that the guidelines are not no reason for timorous counsels to prevail. would also have to pay the costs of any
clear, from time to time convictions are There is no certainty that the majority of suits under this title. The defendant
had by juries which have not been se- House Republicans are going to desert this would be entitled to no such services.
Netted in accordance with constitutional bi or even this section of it f realyeseate
brokers are denied the immunity they seek. This is merely another attempt to give
basic rights and principles. The original Mathias amendment, aa; preferred treatment to certain minority
Mr. Chairman, I know that this is adopted in committee, was a mistake and groups instead of equal treatment for all.
going to entail the assembly of millions an act of injustice. This further clarifying TrTLE - rv
of names in some districts or divisions amendment only makes it worse. Title IV of the Civil Rights Act of
thereof and that it will require additional Mr. WALKER. of Mississippi. Mr. 1966, better known as the so-called fair
clerks for that work. But when the work Chairman, H.R. 14765, the so-called housing section could in my estimation
is done I am sure there will be a uniform Civil Rights Act of 1966, is just another be termed the "great equalizer." On
constitutional method of selecting jurors one of the many Great Society bills which four previous occasions in recent years,
in this country which will meet the tests this body has been ordered to pass with- the Congress has passed four separate
laid down by the highest court of this out giving adequate consideration. This civil rights bills. But, none of the four
land. When those who are indicted are bill was brought to the floor under the previous bills have had anything included
tried and convicted there will be far few- 21-day rule. However, the Rules Coal- that would have such a nationwide
er reversals and remanding of convictions mittee was allotted only one-.third of effect as would the fair housing section
than there have been in the past. this time to give the bill ample examina- of this bill. For the first time, many of
For that reason, and notwithstanding tion. The final report on this bill was my colleagues from north of the Mason
the fact that it will cost substantial mon- submitted an July 14, giving the Rules Dixon Line have expressed concern that
ey to implement this title, I expect to vote Committee barely over a week to exam-
against the amendment and in support of ine it. If this bill is as important as the they feel this bill goes too far. I well
title I. I hope others will, too. Great Society administration says it is, understand what they mean, it goes too
Mr. ROSENTh AL. Mr. Chairman, then certainly all committees concerned far north. For the first time, we have
yesterday I spoke on the Civil Rights Act with it should have ample time to debate a civil rights proposal that reaches
now before us, and expressed my views all the issues at hand. The rule for the home-every home in the Nation. And
in favor of the strongest possible bill, if consideration of H.R. 14765 passed by a now, many of my colleagues are saying
we are to fulfill our obligations to vote of 200 to 180 and I am proud that that title IV of this bill is unconstitu-
No. 123--3
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of us who serve In the Congress, as it is of our older Americans. There can be
to all Americans. However, it is most no matter of more extreme importance
especially a matter of concern to the mil- In this field.
point in the RECORD, and to include ex-
traneous matter.)
Mr. ASHBROOK. Mr. Speaker, a con-
stituent and good friend, Lee Durieux, of
Mount Vernon, Ohio, was in town last
week, He left his mark. He was attend-
ing a meeting of the International Plat-
form Association and was present when
Dean Rusk opened up a session to ques-
tions and answers. Lee offered the ques-
tion : -
Why don't we bomb the port of Haiphong-
and to hell with Russian shipping?
What Mr. Durieux did not expect, how-
ever, was the evasive and questionable
answer which the Secretary _ of State
gave.
My constituent came up with about the
best summation of the handling of the
Vietnamese war that I have seen as yet.
He noted:
It is like a mackerel hanging in the moon-
light-it shines and stinks.
To clarify the matter, Mr. Durieux
wrote to Drew Pearson. A copy of his
letter follows. It is a good summation of
what many Americans from our part of
the country are thinking. Congratula-
tions, Lee, and please come to Washing-
ton more often:
WASHINGTON, D.C.,
July 23, 1966.
MR. DREW PEARSON: Yesterday after Dean
Rusk's speech, I handed you a card with the
question, "Why don't we bomb the port of
Haiphong-and to hell with Russian ship-
ping?" I note that this made headlines in
the newspapers.
I was, however, disappointed with Rusk's
answer even though I feel he was the top
speaker so far in the IPA.
I too was a flier during WW II and can re-
call that we had more than a dozen places
like Vietnam to conquer, but in those days we
went in to win! Therefore, you can under-
stand my bluntness and inability to compre-
hend this "half-vast" war in Vietnam!
I have two sons in college; one of which
is going into the army in 2 weeks-the other
carries a draft card. I would prefer that
these sons go into the service to end this
war, not a part of appeasement and delayed
action.. I would like for Mr. Rusk to name
one instance since 1945 that the Communists
haven't backed down when we showed sin-
cerity and force! I would even go so far as
to state that I would like to see us dare
China to come into this war just for an
opportunity to knock out their atomic in-
stallations before the day comes that we all
know will come when they will be able to
"deliver" these weapons.
I have always admired your comments and
editorials; I also feel you have been a god-
send to the IPA.
Sincerely,
lions of our fellow citizens who live on
fixed incomes. Today, I have introduced
two bills which are directed particularly
at the needs of this group of people-
the aging.
This past year I have had the privi-
lege of serving on the Republican Na-
tional Task Force on the Problems of
the Aging. If there is any one fact which
stood out in the course of our investiga-
tions, it is the fact that inflation and the
consequent rise in living costs have often
brought harsh and dire consequences to
our senior citizens.
Inflation steals from everyone, but
those who live on pensions and fixed in-
comes are especially hurt. When infla-
tion takes place, the purchasing power of
the dollar goes down. Money that has
been allocated to the later years of one's
life often becomes inadequate in meeting
unforeseen increases in the cost of vital
goods and services.
Congress has not remained entirely
oblivious to this problem in the past.
The social security and the railroad re-
tirement programs have had their bene-
fits raised periodically. However, these
increases have been sporatic and uneven.
Between these increases, there has usu-
ally existed a period during which the
purchasing power of the pensioners' dol-
lar has drastically declined. For exam-
ple, our task force found that between
1956 and 1964 inflation cost social secu-
rity pensioners approximately $1.4 billion
in loss of purchasing power.
Statistics such as this are alarming,
but not nearly as alarming as the dep-
rivation suffered by those of the aging
who cannot keep pace with the rising
cost of living. Mr. Speaker, I believe
that my two bills will directly aid those
caught in this squeeze.
Our task force recommended that the
Social Security Act and the Railroad Re-
tirement Act be amended to provide an
automatic increase in their insurance
benefits which is tied to increase in
the Consumer Price Index, the principal
indicator of inflation. My bills are de-
signed to accomplish this objective by
raising those benefits when there is a 3-
percent cost-of-living increase.,
I am pleased to note that the Repub-
lican leadership in the House of Repre-
sentatives have joined our efforts to
achieve these goals. Enactment of my
twin proposals is essential if we are to
meet the needs of the aging.
Mr. Speaker, under my proposal the
increased benefits will not necessitate an
MOUNT VERNON, OHIO.
P.S.-I am a signer and entertainer-not
a writer. To sum up this war in Vietnam,
it has its bright prospects and bad ones. It
is like a mackerel hanging in the moonlight-
it shines and stinks!
HORTON SUBMITS BILLS TO HELP
AGING KEEP PACE WITH IN-
CREASES IN COST OF LIVING
(Mr. HORTON asked and was given
permission to address the House for 1
minute and to revise and extend his re-
marks.)
Mr. HORTON. Mr. Speaker, increases
in the cost of living are a concern to all
increase in taxes. Inflation brings with
it increased wages. In turn, increased
wages will naturally bring increased pay-
ments into social security and, addition-
ally, the benefits paid represent a smaller
proportion of an individual's wages as
his wages approach the maximum limit-
$6,600. Therefore, because of these fac-
tors, there will be no increase in payroll
deductions to finance my proposal.
I believe that my bills, if passed, will
have an immediate and immensely bene-
ficial impact on our senior citizens. Mr.
Speaker, I urge all my colleagues to sup-
port these bills. We need to act immedi-
ately if we are to meet the present needs
JIM FARLEY AT 78
(Mr. JOELSON asked and was given
permission to extend his remarks at this
point in the body of the RECORD and to
include extraneous matter.)
Mr. JOELSON. Mr. Speaker, because
of the admiration which we all feel for
James A. Farley, I am sure my colleagues
will enjoy reading the following article
about him by Ernest Cuneo. It appeared
in many papers, and was published by
the Morning Call in the congressional
district which I represent on May 31,
1966. It is good to know that "Jim"
Farley is still going strong, and I am sure
that we all wish him many more years of
success and accomplishment.
The article follows:
NEW YORK.-Big Jim Farley was 78 years
old yesterday. He celebrated with his usual
78-hour work week. Since his last birthday
he has attended 125 dinners and 70 luncheons
at many of which he was principal speaker.
He also traveled 60,000 miles by land, sea,
and air, visiting 20 countries, including all
European capitals, all Central American capi-
tals, and the principal cities of Mexico. He
reads the box scores of every major league
ball game-without glasses-as part of his
habit of reading at least four newspapers
every day. He is 6 feet 3 inches tall, literally
in the well-known pink, and his 205 pounds
haven't varied in the last 20 years.
He has a most peculiar walk, one of very
quick and very short steps. His towering
figure seems to scoot through the New York
winds, in spite of the fact that it is inter-
rupted every 10 paces by some one who wants
to shake his hand. Perhaps no man since
Daniel Webster's Boston has so much received
the adulation of a city. New Yorkers give him
the respect accorded Al Smith and the affec-
tion bestowed on Jimmy Walker.
There is an astonishing simplicity about
this most sophisticated of men. He still has
the clean wholesomeness of the lanky coun-
try boy who played first base for the town
team 60 years ago. He brought this same
zest to politics. The Democratic Party was
his team, and he gave it all he had.
From 8 every morning till 6 at night, he's
in there pitching for his current team, Coca-
Cola Export. He's head of it, but he puts on
no airs. He calls himself a salesman, and sell
he does.
Jim was the second of five boys. His father
was a Hudson River schooner captain, sailing
bricks down to New York City. He prospered.
He bought two small brickyards. But just
before Jim was 10, his father went out to
harness the horse to go to a neighbor's fu-
neral. The halter was long, the horse frisky.
Suddenly wheeling, he kicked Captain Farley
in the chest. He died that night.
Ellen Goldrick Farley, Jim's mother, would
run neither a schooner nor brickyards. Cap-
tain Farley left no debts, small assets, sturdy
bodies, an honorable name, and a great
mother for his boys. Jim promised his
mother he would never touch an alcoholic
drink, and he never has. He doesn't smoke
either. These are tremendous advantages for
a man to bring to the hard-dealing games in
the smoke-filled rooms of politics.
Jim wanted to be Town Clerk. An Irish-
American Catholic Democrat stood as much
chance in the rock-ribbed Republican town
of Grassy Point then as Mao Tse-tung stands
of being elected Governor of Utah now. But
Jim took to the mails. Apparently Republi-
cans like to receive letters because they
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CONGRESSIONAL RECORID - HOUSE July 296, 1966
elected him, This started the most unbe-
lievable romance in history between Jim
Parley and the United States mails. He be-
came Postmaster-General of the United
States, then practically a concomitant of be-
ing chairman of the Democratic National
Committee. He deserved it as its chief cus-
tomer alone. Being at the head of the Post
Office Department did not soothe his letter-
writing propensities; it inflamed them. Fol-
lowing the 1932 campaign, he signed 22,000
first-name letters of thanks; In 1936, 27,000.
And not when he got around to it; immedi-
ately. Within a week after election, there
were 27,000 families in thousands of cities
and villages proudly exhibiting the letters of
thanks with the famous green-ink signature.
HOW TO SUCCEED
Parley, a boy who never graduated from
high school, has 22 honorary degrees. He,
with President Herbert Hoover, were the two
distinguished members of both parties select-
ed to reorganize the United States executive
department. He has served on New York
State's sacrosanct Banking Commission, and
its Boxing Commission, and is currently on
its Racing Commission. He can discuss as an
expert whether foreign trade will expand (he
thinks it will multiply) or whether Mickey
Mantle is swinging too hard (he thinks he is).
About 10,000 letters will pour Into his office
this week. The whole world waved to Jim
Farley on his birthday.
And Big Jim beams back. To him this is a
great big wonderful world.
THE IRS AUDITORS' IMAGE
(Mr. FASCELL asked and was given
permission to extend his remarks at this
point in the body of the RECORD and to
include extraneous matter.)
Mr. FASCELL. Mr. Speaker, the au-
ditors of the Internal Revenue Service
often have been depicted as unreason-
able, almost inhuman automatons, in-
terested solely in squeezing every pos-
sible cent from taxpayers,. regardless of
how far they have to stretch the tax
laws to do so. I believe it is fair to say
that that impression has so grown that
the average taxpayer who has not gone
through the experience dreads the pos-
sibility that sometime he will be put
through the auditing process. The In-
ternal Revenue Service has done much
to attempt to dispel the unfavorable
image of its audits and auditors, by in-
sisting that its auditors deal in all fair-
ness with taxpayers. Nevertheless, in-
stances continue to arise in which IRS
auditors are accused of overzealousness,
to the point of ]harassment.
The May 5, 1966, issue of the Reporter
magazine contained an article entitled
"The Tax Appeal Ordeal," in which the
author, Mr. William R. Frye, detailed
his experiences with IRS audit proce-
dures. Perhaps the author fully sum-
marized his feelings of what he had been
through when he said it was "a miser-
able experience."
The article follows:
THE TAX-APPEAL ORDEAL
(By William R. Frye)
Pity the poor taxpayer. He assembles his
records, studies the instructions, wrestles
with the forms, pays his tax-and then sits
back to await doomsday. Doomsday, for him.,
is the day Form 3R73 arrives with this mes-
sage: "Your above-described tax return or
document for the year indicated has been
assigned to the above-named Agent for ex-
amination. Please communicate with the
Agent.. . .
The possibility of being audited is the third
dimension of the Income-tax nightmare.
Substantiating that office at home, finding
that Washington hotel bill, proving that
lunch was a business entertainment-these
could be more difficult than making out the
return itself. They could even be impossible.
Some sixty-six million personal income-tax
returns were filed in fiscal 1965; 3,092,000--
one in twenty, or just over five per cent-
were "examined," as the Internal Revenue
Service puts it. Deficiencies, or taxes due,
were found in fifty-one per cent of the cases,
producing $1,063,000,000 in additional rev-
enue; refunds were paid by the government
fourteen per cent of the time, for a total of
$47,052,000. No change was made in thirty-
five per cent of the returns. The average
deficiency was just below $700; the average
refund just above $100. Aside from gamblers
and other special cases, only 1,216 of those
who were examined (or 0.04 per cent) were
prosecuted for fraud.
How many of the more than 1.5 million
taxpayers who were made to pay additional
tax really had short-changed the govern-
ment, accidentally or intentionally? How
many ran afoul of an IRS overeager to maxi-
mize collections? The IRS feels sure it was
practically always right (an understandable
view), but many taxpayers are by no means
sure.
I know how they feel. I have just been
through the mill. Mine was one of the
relatively rare cases-one in seven-where
the taxpayer is found to have overpaid his
tax. The return had been prepared for me
while I was abroad and contained several
major errors in the governments favor. I
was due for a refund.
It was, nevertheless, a miserable experience.
Day after day after exhausting day was taken
up in minutely detailed, repetitive nit-
pick-ing. Accountants whom I told about the case
said that they had never known an audit to
be so detailed and prolonged. At the end of
each session, I was assigned to prepare fur-
ther data for the next visit-a task requiring
long days and longer nights, sometimes run-
ning into weeks. (Everything involved had
happened three years before.) My profes-
sional life was intermittently disrupted for
more than seven months. The lost time was
worth conservatively $4,000 to $5,000-and
since I was self-employed, I had no way to
cushion the loss. Moreover, legal and other
fees ate up much of the refund.
The only comic relief was that each time
I was ordered to dive deeper into the records,
I came up with a new accounting error in
the government's favor, and hence a larger
potential refund. This was not what the
agent had in mind. "How am I going to
justify my time?" he asked. Finally, as a
consequence of another of his probes, I dis-
covered a $1,500 reimbursement that had
been reported, both as income and as a credit
against expense. Whether by coincidence or
not, the roof promptly fell in.
My agent (or his supervisor) re-opened
the whole audit and disallowed deductions
that previously had been fully substantiated.
The law had not changed; the facts had not
changed; nothing had, except that someone
seemed to have decided that letting a tax-
payer get back that much money would not
look good at all on the report of such a pro-
longed audit.
I could appeal the ruling, first to a "con-
feree"-a higher official of the IRS--and then,
if necessary, to a still higher one, I could
even go to tax court. But in the process,
the additional time lost and the new legal
fees Incurred could more than wipe out any
tax recovered. It seemed I would have to
take the licking; either way, I would lose.
After considerable additional dispute, the
agent reconsidered and an appeal became
unnecessary. But in my bitterer moments,
I felt my government had subjected me to a
form of legalized extortion.
THE HIGH COST OF APPEALS
A spot check of accounting firms in the
New York area suggests that thousands of
taxpayers every year may have similar un-
pleasant experiences. Similar, that is, not
in the denial of refunds that are due but in
the levying of additional taxes which they
consider unjustified but which they cannot
recover economically through the normal ap-
peal process. By comparison with the total
number of returns filed, the number of these
taxpayers may be small, but to the people
concerned it is a serious matter.
Mr. S., a partner in a New York accounting
firm that specializes in tax work (because
of his continuing dealings with the IRS, he
insisted on remaining anonymous), said he
used to fight, on behalf of his clients, as
many as fifty appeals at a time. But
in virtually every case, once the appeal was
over the client was so angry at the size of the
accounting bill that, whatever the results of
the appeal, Mr. S. would lose the account.
So he made it a firm rule never to handle
appeals. He now negotiates with the las
agent as stoutly as posible the first time
around, and then proposes to the client that
he accept the outcome, favorable or other-
wise. If the taxpayer wants to appeal, some
other firm must take the case. His rela-
tionship to the client is then finished either
way.
The effect of this policy is that In cases
where Mr. S.'s advice is accepted, the gov-
ernment has been allowed virtually to dic-
tate its terms to the taxpayer on the issues
in dispute. If Mr. S. is right, many if not
most appeals are too expensive to be practi-
cal. Other accountants are not quite so
sweeping; but they say that unless at least
$1,500 to $2,000 In tax is involved, the tax-
payer can scarcely expect to break even from
an appeal to "conference," even if he wins.
Unless he feels qualified to handle it on his
own, he must pay an accountant $50 to $200
a day, not merely during the conference it-
self but throughout a period of preparation.
And the taxpayer's own time is also a, factor.
Still higher appeals, beyond the conference
stage, are not considered economical, unless
something in the neighborhood of $10,000 in
taxes is involved. The ras does not release
figures on how many cases went to confer-
ence; but In 1965, 21,737 disputes (less than
one per cent of the total) were handled at
the appellate level, the next stage, and only
5,448 (roughly one quarter of one per cent)
were disposed of by the tax courts. The
money In question however, was in the hun-
dreds of millions.
The man who decides to do without costly
help is, in effect, throwing himself on the
mercy of the IRS. Mr. C., a partner in a
Connecticut consulting firm, was on the
road five days a week, year round, returning
home only for weekends. He naturally had
a large travel and entertaintment deduction.
When the return was selected for audit, he
could not take time off to attend personally;
his "billing rate" (the rate at which clients
were charged for his services) was $250 a
day, and he was fully booked. So he sent
his wife to the tax auditor, armed with can-
celed checks and credit-card bills. The audi-
tor contended there was not proof the travel
was not personal, and disallowed the whole
amount. The wife did not know how to pro-
test persuasively. So the whole year's travel
was lost.
This couple could have hired professional
help, but did not. Many others cannot af-
ford to. Few men making less than $15,000
a year care to pay $15 to $50 an hour for an
accountant, let alone $25 to $100 an hour for
a lawyer. A return showing a $4,000 Income
is not as likely to be examined as one show-
ing $400,000, but it can happen. The test,
the IRS says, Is not the size of the income
but whether there is anything unusual about
the return, anything that causes raised eye-
brows. If the ax falls, the little men have
no choice but to fend for themselves.
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Approved
tiously optimistic," but said he saw no indi- BOMBINGS CLEAR AIR-No OTHER CHOICE
cations that the Communists were ready to There is a new feeling of pride and a sense
go to the negotiating table. He indicated of purpose among the people of the United
additional appropriations, above the present States of America that can almost be felt
figure of $1 billion a month, might be neces- tangibly.
sary, and other administration spokesmen It dates from the day when the United
have indicated the U.S. might have to beef States Air Force and Navy carried the most
up its troop commitment in Vietnam. telling blow of the war to the enemy in Viet
Secretary of State Rusk was equally realis- Nang by bombing military targets at Hanoi
tic when he said, "One can be encouraged and Haiphong.
without believing the war is over." And then The President is entirely correct in his
he added, "We are not over the hump yet. assessment that American people "would
We haven't begun to see the end of this rather reason than fight. We are using our
thing. There has not been the necessary power in Viet Nam because the Communists
decision on the other side." have given us no other choice."
The President, speaking to the American He also is entirely correct in the state-
Alumni Council meeting at White Sulphur ment that American people "when they un-
Springs, W. Va., Tuesday said that peace derstand what is at stake have never run
"may be long in coming, but it is clearly on from their duty ... The American people
the way. And come it must." have never left an ally in a fight."
If the average American gets impatient Unfortunately, at times in the past the
with alternate messages of optimism and American public has been justifiably con-
pessimism, he must realize that no one can fused o,,er the war in Viet Nam, not about
predict day-to-day developments on a battle- goals but in tactics.
field. What Americans should realize is that For too long the initiative has been given
the Vietnam war is going better for us than the enemy. Our responses were only to meet
for the enemy, in a military sense, and that some new condition of battle he imposed.
a new element of political stability seems to Important strategic targets such as the oil
have asserted itself in Saigon. Only a few storage facilities that now have been severe-
months ago, the Buddhists were burning ly damaged were untouched by our superior
themselves all over the place and the peace- air might.
niks were saying the U.S. could not possibly Equally confusing is the fact that some of
win. The pendulum may have swung too far our other allies who protest loudly at each
the other way last week, but it has been countermove the United States made to an
Fo~MsJ4&02ikte.P67,R00040009000J*gy 29, 1966
Why have American balance of pay-
ments and monetary policy had these
bad results-so opposite to those for
which any reasonable man would hope?
The answer, I believe, is that there has
been the same kind of open-ended com-
mitment, the same kind of increasingly
frozen position, and consequently, the
same kind of escalation of effort, without
characterized our policy in Vietnam,
reconsideration of purpose, that have
Our commitment to total elimination of
our payments deficit, our frozen position
on the emergency balance-of-payments
program, and our escalation of interest
rates-all three require immediate re-
consideration. In Vietnam our purpose
must be peace-I hope it is, and I pray
that this administration seeks peace-
and our policies must be brought into
line with that purpose. Just so, in the
economic world, our pta-pose must be
prosperity-and our policies must be re-
thought, refashioned, and reformulated
to bring them into line, too. As our un-
precedented military po er must be
used for world pe e soyour unprece-
dented econom'l wJr oday must be
STAKES IN VIETNAM
Mr. SMATHERS. Mr. President, the
Arizona Republic takes us to the heart
of the Vietnamese situation in an edi-
torial commenting on waves of public
optimism and pessimism over the fight-
ing in southeast Asia.
President Johnson and Secretaries
Rusk and McNamara have put matters
into perspective, the newspaper says,
after an unduly optimistic impression
sprang from the President's guarded
news conference remarks early in July.
Whatever else, the Republic comments,
Americans should realize that the fight-
ing is going better for us than for the
enemy, that a new element of stability
has asserted itself in Saigon and that a
campaign of economic and social recon-
struction is progressing in South Viet-
nam.
The stakes are high, says the newspa-
per-high enough for patience and forti-
tude at home as well as courage and
strength on the other side of the Pa-
ciflc.
I wish to insert this editorial in the
RECORD.
There being no-objection, the editorial
was ordered to be printed in the RECORD,
as follows:
[From the Arizona Republic, July 14, 1966]
VIETNAM PENDULUM
President ,fohnson made an optimistic as-
sessment of the Vietnam war in his July
4 interview on the ranch. He said "diplo-
matic reports" indicate the Communists "no
longer expect a military victory." He felt
the air raids on the oil depots near Hanoi
and Haiphong had destroyed well over half
of the enemy's reserves and equipment.
"Success will be ours in Vietnam." he said.
if these guarded statements were parlayed
into the general impression that Ho Chi
Minh_ was hanging on the ropes and that his
backers were likely to throw in the towel
at any minute, that is unfortunate. For
such is not the case.
This week, Secretary of Defense McNa-
mara put matters into better perspective
when he told a news conference he was "cau-
righted this week. enemy tactic are themselves contributing
In the meantime, if anyone has any doubt, substantially to prolongation of the war.
the Vietnam war gives every appearance of Without the supplies they ship to North
being one of the decisive battlefields on Viet Nam through the port of Haiphong, the
which communism must be stopped. Just war may have taken a far different turn some
as communism was stopped in Greece and time ago. In other words, some of our allies
in Korea, it must be stopped in Vietnam or have made our drastic action necessary.
the future, not only of Southeast Asia, but From recent history Americans are aware
of the whole free world, will be endangered. that the only way to meet what the President
Nor should Americans forget the other war, calls "raw Communist pressure" is by looking
the campaign of reconstruction, that is be- it in the eye and making it unmistakably
ing waged in Vietnam. Just as South Korea clear that we will not retreat.
and Formosa have built up their economies It was this type of confrontation that made
to the "take-off point," at which economic the Communist guerrillas retreat in Greece,
aid is no longer needed, so can South Viet- it broke the blockade of Berlin, prevented
nam establish a viable economy. And when Russian nuclear tipped long range missiles
that is done, the siren call of communism from being installed in Cuba and it worked
will fall on deaf ears in South Vietnam and in the Dominican Republic where a free elec-
the international conspiracy will have suf- tion has been conducted.
fered another great setback in its effort to It was understandable that the U.S. public
subvert and conquer free countries every- might be confused why we were not apply-
where. ing the same pressures in air and naval
The stakes are high-high enough to call superiority, as military leaders suggest.
for patience and fortitude on tie part of Since the enemy has not shown any desire
strength for thon the othe/ side the'
tle be-
Pacific. This w n't e 1 t bat le
tween freedom nd r y, put its impor-
BOMBINGS CLEAR AIR
Mr. SMATHERS. Mr. President, the
Copley newspapers detect a new feeling
of pride and sense of purpose among the
American people.
They suggest it dates from the day our
planes bombed the oil storage facilities
near Hanoi and Haiphong.
The newspaper organization agrees
with President Johnson that we would
rather reason than fight, but we never
run from duty nor desert an ally. The
air strikes served notice to the enemy
that the price they may have to pay for
aggression might not be to their liking.
And they represent tactical action aimed
at a quicker honorable peace in Vietnam.
I offer for the RECORD the Copley edi-
torial as it appeared in the Elgin, Ill.,
Daily Courier-News.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
any conditions, the price of the war to him
must be made untenable.
The air strikes against oil storage and other
strategic targets were a plain notice to the
enemy that the price they might have to
pay for the war might not be to their liking.
On a purely military level, the latest air
strikes undoubtedly hampered the flow of
supplies to the south and as a result saved
many American lives by reducing the Viet
Cong ability to wage war.
For these reasons, the long delayed air
strikes are really tactical action for a quicker
honorable peace in the embattled nation.
ORDER FOR ADJOURNMENT TO
MONDAY
Mr. SMATHERS. Mr. President, I ask
unanimous consent that when the Sen-
ate completes its business today, it stand
in adjournment until 12 o'clock noon
on Monday, August 1, 1966.
The ACTING PRESIDENT pro tem-
pore. Without objection, it is so or-
dered.
REDWOOD PARK A NATIONAL MUST
Mr. KUCHEL. Mr. President, I have
introduced S. 2962, to establish a Red-
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ease RECORD-SENATE 16903
rowers, Even subsidiaries of American superseded by a-once more-growing mestic expansion, has now become a
corporations have been flriven to finance deficit; dollars spent to buy imports and crazy international competition at ever
their operations and investments in the to pay the dollar price of escalation in higher levels. Just as currency devalua-
narrow, divided financial markets of con- Vietnam have risen faster than the emer- tion by one nation breeds competitive de-
tinental Europe. Every dollar that is not gency program can cutdown on produc- valuations by others, so interest rate
invested abroad today means a dollar tive dollar investments. A $1.3 billion escalation in one financial center leads to
that will not return as income on that deficit in 1965 has become a 1966 pay- competitive escalation in others. Dur-
investment tomorrow. Further, begin- ments deficit which is headed toward ing the last 3 months alone, as U.S. rates
ning in June 1965, there has been a $2.5 billion; no firm figure is possible as have moved to historically high levels,
breakout in international borrowing In only the Defense Department planners four major foreign central banks--
Europe, with the lions' share being taken can even estimate the further dollar- cost Germany, Belgium, Holland, and Brit-
by the subsidiaries of American com- of Vietnam escalation.
ain-have increased new their discount rates
parries. Such international financings Third. The international negotiations to meet et this neww competition.
have more than doubled in the last 12 on monetary reform have demonstrated The United States is not alone respon-
months, This rise-desirable in Itself as clearly that there is no consensus either sible for this destructive competition.
it contributes to a growing ability of in- for the need or for the method of reform; But the international aspect and impact
dustrial Europe to finance its own ex- they have demonstrated equally clearly of higher U.S. interest rates is incom-
pansion-has taken place haphazardly that we cannot depend upon these nego- parably greater than that of any other
and recklessly. From February to May tiations to bail our bankrupt policy out nation's monetary policy. There is yet
of this year, in fact, the European capital before It bankrupts the world. another irony here in American economic
market broke down; no issues could be For, :let us make no mistake about it, policy. Without
floated whatsoever. This forced-draft question the United
expansion, too, has involved a driving l world. The unmistakable signs have tor in determining the course of the free
of interest rates to levels rarely seen be- been seen in Britain. After months of world's economy and finances. But in-
fore. Moreover, much of the cash which creeping, Government-sponsored defla- ternational considerations are-in nor-
has gone into the new European capital tion, after two full-scale, international mal times, at least-far from the most
market has simply been taken out of New rescue operations inspired, organized, important factors in determining U.S.
York for that purpose-thus, once again, and led by the United States-the only economic policy. There is an old saw
offsetting the supposedly positive impact alternative to devaluation of the pound that when America sneezes, the rest of
of the emergency program. The fact is has been seen to be savage economic re- the world catches pneumonia. It is
that U.S. balance-of-payments policy, by strictions and the deliberate promotion neither excuse nor consolation to say
placing a near-embargo on New York, of unemployment in Britain. In simple that we did not even know we were
has placed a in-supportable burden upon terms, the British Government has de- sneezing.
the free world's financial system. Here, termined that its only hope for avoiding It is also no excuse or consolation to
the balance-of-payments policy of the devaluation is to create unemployment. note that European central bankers
United States is clearly self-defeating. i point out parenthetically that this is seem happy with the financial situation,
Finally, American balance-of-pay- the same policy that was followed In 1931. Their irresponsibility is no excuse for
ments policy has struck at the under- This continuing, cruel British experi- ours. When Germany, for example, de-
lying stability of the entire international ence points up the bitter irony of Amer- Oates at a time of sound U.S. expansion
monetary system. The compromise sys- ican policy. On the one hand, the and contribution to prosperity, Ger-
tem formulated at Bretton Woods more United States has-as I have said--in- many's restrictiveness is isolated before
than 20 years ago was based upon inter- spired, organized, and led emergency it hurts the prosperity of others. But
national cooperation. At its center was rescue operations to save the pound by today, German restrictiveness--which
a twofold determination: the United pumping dollars into British reserves. has, incidentally, sent short-term Ger-
States determined to supply the rest of But, on the other hand, U.S. restraint man interest rates up to 10 percent-is
the world with dollars for trade, Invest- on dollar outflows has created a condi- being aided, abetted, and international-
ment, and reserve purposes; and the rest tion of international tight money which Ized by American policy.
of the world determined to hold and use has forced ever greater restrictiveness There is no excuse again for American
those, dollars for these productive ends. on Britain. It is clear, after all, that policy, in the fact that the run on the
Unilateral action by France and a range the fundamental problems in the British London money market has "at least"
of other nations to cash in their dollars economy-an outmoded industrial plant, brought new funds to New York to off-
for gold has for some time threatened archaic union, and management prat- set the dollar outflow. For these funds
the second determination. And the U.S. tices-require massive new investment to are the notorious "hot money" which
reaction to the excessive dollar outflow solve. Jumps from of the 1958-63 period-a reaction em- Deflation, effective as It may or may center at the drop-Dr ciao center of financial
inter-
bodied in the emergency program- not be in the short run to "save the est rate. In fact, it is this "hot money"
now threatens the first determination. pound," only at best puts off the day of which has again and again provoked the
The indispensable basis for the mere op- reckoning with the critical need for mod- sterling crisis of the past 35 years. There
eration of the present monetary system is ernization of plant, equipment, and at- is no consolation for American policy in
disappearing more quickly than negotia- titudes. It has been American balance- making the United States, as well, today,
tions can proceed to reform that system. of-payments policy which bears a share a prisoner,of hot money.
The fact Is that a growing number of of the responsibility for this forced re- There is neither excuse nor consolation
nations no longer desire to hold dollars- straint. It is American economic policy for American monetary policy In any
despite the clear need of their bankers in another field which has put a halt, aspect of the growing international fl-
and businessmen for dollars with which for the time being at least, to Britain's nancial and monetary anarchy. Inter-
to do business-and the United States modernization hopes. U.S. monetary nationally, as well as domestically, Amer-
is just as desirous to prevent their get- policy, which has produced unprece- ican monetary policy has proved disrup-
ting more dollars. dentedly high interest rates at home, tive where it has not actually been
The emergency program, and its sub- here in the United States, has contrib- destructive, as the homebuilders demon-
sequent extension to cover direct foreign uted to the international interest rate strated in their march on Washing-
Investments by American corporations, war and has helped provoke the current ton yesterday. Domestically, American
was explicitly intended as a temporary crisis in Britain.
expedient to eliminate the dollar drain monetary policy has
baen destructive to
and, thus, to gain bargaining Interest; rates have been rising higher the housing industry and disruptive to
power for and higher in every financial center in the savings industry. International
the effort to reform the monetary system. the world. In good part, this reflects the American monetary policy has been de-
What has been its real effect? deliberate tightening of credit by foreign structive to Great Britain and disruptive
First. A temporary expedient has be- central banks. But the movement to the whole complex system of interna-
come ever more institutionalized. toward tighter money in the majority of tional financial relations. This is con-
Second. The immediate achievement of Industrial countries, which began as sep- sistency of a kind-and it is a kind that
surplus in the summer of 1965 has been crate, individual efforts to restrain do- spells disaster.
No. 123-15
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Approved For F19?0??fft. ?kN(l~;W7B~,FQ0400090001-8July 29, 1966
5. Depletion allowance of 25 per cent on summit meeting between the two Presi-
income receiyed by nonoperators from gross dents, if feasible.
royalties or rentals based on production. President de Gaulle's stop in Guade-
6. Shareholders can deduct 20 per cent of
their dividend income from companies that loupe seems to me to offer an ideal op-
get at least 75 per cent of their earnings portunity for these two statesmen to
from mineral production. meet, if not at Guadeloupe then perhaps
7. Full deduction from producers' federal in Puerto Rico. Surely, our differences
income tax of any provincial taxes against should not stand in the way of such a
production, meeting. On the contrary, a discussion
8. Special 40 per cent, or $4 per ounce- of these differences should contribute to
whichever is greater-depletion allowance
for gold mines. improving understanding between the 9. Ten-cents-per-ton subsidy for coal-pro- two countries.
duction. I hope that the President will give
T?r r_T?TTT. TTTTTr1 TTr DnuniAe?~ ??a serious consideration tdi myet;ing with
now let me aaa that the passage by the
Senate today of H.R. 4665 introduced by
our able House colleague, Representative
AL ULLMAN, of Oregon, a companion bill
to S. 338 which I introduced is an im-
portant and gratifying first step in the
direction of encouraging mining as Can-
ada has done.
My bill was favored by a number of
dishinguished cosponsors who were my
colleagues Senators BOB BARTLETT of
Alaska, ALLOTT of Colorado, BENNETT Of
Utah, BIBLE of Nevada, CANNON of Ne-
vada, CHURCH Of Idaho, DOMINICK of
Colorado, HART of Michigan, JACKSON of
Washington, JORDAN of Idaho, LONG of
Missouri, McGOVERN of South Dakota,
METCALF Of Montana, MONTOYA of New
Mexico, Moss of Utah, MUNDT Of South
Dakota, RANDOLPH of West Virginia and
SIMPSON of Wyoming. The strong sup-
port of these able colleagues has been
invalua le in achieving the result today
of enactment of this important legisla-
tion to aid the American mining indus-
try.
The amendment of Senator SMATHERS
which increased the flexibility of the
measure is a very useful contribution
and a provision I am happy to have
seen adopted.
. In the work which has been done to
obtain passage of H.R. 4665 our able and
distinguished colleague from Montana,
Senator METCALF, has been invaluable.
His energetic and constructive assistance
represents a major contribution to the
welfare of the mining industry and one
for which I am very gateful.
SUMMIT MEETING WITH
DE GAULLE
Mr. CHURCH. Mr. President, this
week's issue of Newsweek suggests that
some diplomats, in both Washington and
Paris, see a good chance for a meeting
in September between President de
Gaulle and President Johnson. Presi-
dent De Gaulle has planned a trip
around the world, stopping in southeast
Asia to visit Cambodia, and according
to Newsweek, has scheduled a 48-hour
stop on the French, Caribbean island of
Gua eloupe on his way back from the
Pacific.
As Senators know, I visited Europe in
early May. In a report to the Committee
on Foreign Relations, entitled "Europe
Today," I made a number of recommen-
dations. One of them was that effective
communications must be restored be-
tween the French and American Govern-
ments.. I suggested, in this connection, a
THE DANGER OF EMPIRE MT ASIA
Mr. CHURCH. Mr. President, the
course of the war in Vietnam has begun
to generate an uneasiness that we may
be slipping unawares into the role of a
colonial power in Asia. A recent edi-
torial in the July 12 edition of the Lewis-
ton, Idaho, Morning Tribune raises a
clear alarm over this possibility. Quot-
ing two widely respected foreign corre-
spondents, the editorial concludes with
the following warning:
Two American presidents have said this
must never be permitted to become an Amer-
ican war. It not only has become an Ameri-
can war, but South Vietnam has become an
American enclave and Southeast Asia has
become a bog from which we will have a
most difficult time escaping. The possibility
of empire by accident is by no means remote.
Mr. President, I ask unanimous con-
sent to have printed in the RECORD the
editorial from which I have quoted, en-
titled "The Danger of Empire in Asia,"
published in the Lewiston, Idaho, Morn-
ing Tribune of July 12, 1966.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
THE DANGER OF EMPIRE IN ASIA
Is the United States in danger of stumbling
into empire in Asia? C. L. Sulzberger, the
foreign affairs columnist of The New York
Times, thinks so, and a reporter's conversa-
tion with some military officers bears him
out.
Sulzberger pointed out in a recent column
that the United States has plowed millions
of dollars into Southeast Asia in the form of
harbor developments, roads and military
bases. He believes the temptation may be
great, once the shooting war ends, to seek to
protect these enormous investments by main-
taining a strong American presence there.
This would create the danger "that the
United States might unoonsciousv create an
empire in Southeast Asia. At whatever cost
we must avoid any absent-minded imperial-
ism that would not only contradict Amer-
ica's national philosophy but could lead to
nothing but trouble."
One can scarcely argue with Sulzberger's
point of view. Yet there are ominous signs
that some military men on the scene are
not daunted by the prospects of empire.
Richard A. Dudman, a roving correspondent
of The St. Louis Post-Dispatch, is writing a
aeries of reports from Saigon. American
officers in South Viet Nam, he writes, are now
speaking in terms of 400,000 U.S. troops in
Southeast Asia by the end of this year and
possibly 600,000 by the end of 1967. "Some
speak seriously of needing a total American
buildup of 1-million men." Dudman adds:
"Carried to its logical conclusion, the
Americanization of the war could conceivably
lead to a complete American takeover of
South Viet Nam. A widely respected Amer-
Scan commander advocates this course
privately in so many words.
"'We should occupy and rule this coun-
try,' he says, 'instead of pretending to respect
the sovereignty of a government that really
is only temporary and illegal and could
change tomorrow. It would be more efficient,
and probably the end result would be better
if we abandoned the idea of assistance and
pacification and settled for subjugation, re-
garding South Viet Nam as an enemy
country ...' "
Two American presidents have said this
must never be permitted to become an Amer-
ican war. It not only has become an Amer-
loan war, but South Viet Nam has become an
American enclave and Southeast Asia has
become a bog from which we will have a most
difficult time escaping. The possibility of
empire by accident is by no means remote.-
L. H.
EDITORIALS COMMEND 'SENATORS
BYRD OF WEST VIRGINIA, ERVIN,
AND DIRKSEN ,
Mr. SIMPSON. Mr. President, I ask
unanimous consent to have printed in
the RECORD two editorials entitled "BYRD
Sparks U.S. Promise of Aid To End Race
Riots" and "Would Lift Confession Bar,"
published in the Huntington, W. Va.,
Advertiser of July 26, 1966, and an edi-
torial entitled "Congratulations to Sen-
ator DIRKSEN," published in the Chicago
Tribune of July 18, 1966.
In connection with the latter editorial,
the concluding sentence, I believe, is
very pertinent:
For his successful leadership Senator
DIRKSEN deserves the thanks and congratu-
lations of the American people.
I certainly subscribe to that sentiment.
There being no objection, the edi-
torials were ordered to be printed in the
RECORD, as follows:
[From the Huntington (W. Va.) Advertiser,
July 26, 1966]
BYRD SPARKS U.S. PROMISE OF-AID To END
RACE RIOTS
Law-abiding Negroes and responsible civil
rights workers as well as other conscientious
citizens will welcome the federal govern-
ment's promise of assistance to cities har-
assed by race riots.
The announcement of federal aid was made
by Attorney General Nicholas Katzenbach
in response to a letter by Sen. ROBERT C.
BYRD (D-W.Va.) to President Johnson urging
him to use the power and prestige of his
office to stop the outbreaks of "lawless and
provocative demonstrations."
Sen. BYRD'S letter declared "There is no
rational justification for tolerating these in-
credible attacks on firemen, policemen and
innocent victims."
In calling the President's attention to the
responsibility of the federal government to
discourage outbreaks of lawlessness, Sen.
BYRD was serving the cause of law-abiding
Negroes as well as the public generally.
His statement that continued violence
would set back the cause of civil rights was
substantiated in part by the announcement
from New York that extremism was sharply
cutting contributions to the more militant
organizations.
There are also Indications in Congress that
riots are causing reluctance to enact the ad-
ministration's civil rights measure now pend-
ing.
Much of the money for civil rights efforts
has come from northern liberals. In spite
of this some of the militant individuals and
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 July 29, 1966 Approved F ft1 %i5AJ6/i~C DPNgR9i46R000400090001-8 16899
Minerals: Canada's diversified mineral in-
dustry is pacing the world in growth rate.
Output has tripled in value since 1950 and
is expected to approach the 4-billion-dollar
mark this year as Canada-
Leads the world in nickel, zinc and asbes-
tos production.
Ranks second after the U.S. in total out-
put of uranium and of molybdenum, a vital
additive in steel manufacturing.
Beeps Its place as the world's third biggest
producer of aluminum.
Stands fourth in output of lead, fifth in
copper and iron ore, and sixth in production
of potash. Canada ranks ninth in output of
oil and gas.
The future, to Canadian geologists and
mining men, is even more exciting than the
feverish present. The potential of Canada's
mineral wealth Is awesome. The rush to
measure it and bring It out of the ground is
turning the country into the world's biggest
mining camp.
Ores: Two big iron-ore bodies, far to the
north, are getting attention.
One is on Baffin Island, almost 300 miles
beyond the Arctic Circle. There, Baffinland
Iron Mines has mapped more than 127 mil-
lion tons of high-grade ore that can be
shipped directly to mills without upgrading.
In the Yukon, Crest Exploration, Ltd., a
subsidiary of Standard Oil of California, has
located an estimated 11 billion tons of
medium-grade ore. The deposits are near
the Snake River, close to the boundary be-
tween the Yukon and the Northwest Ter-
ritories. A rail line nearly 600 miles long
would be needed to haul the ore to tide-
water at Skagway, Alaska, but an existing
narrow gauge road, the White Pass & Yukon,
might serve as the final leg, from White-
horse, Yukon Territory, to Skagway.
The search for nickel, too, is moving north-
ward. A belt of mineralized rock cutting
across the Ungava Peninsula In northern
Quebec is believed to hold rich nickel de-
posits. Canada now produces 80 per cent
of the world's nickel, mostly from mines in
Ontario and Manitoba.
Metals locked together: Canada's booming
base-metals industry feeds chiefly from ore
bodies that produce more than one metal.
The big nickel deposits in Ontario and
Manitoba also are major producers of copper
concentrates. Zinc, lead and copper-often
with silver included-are found linked in
various combinations in the mineralized
rock that is found throughout Canada.
Spurred by a worldwide shortage and high
prices, the search for copper deposits now is
centering in the mountains of British
Columbia and the Yukon.
Several copper mines in Western Canada
already In production are being expanded,
and a number of new bodies of ore are being
developed to meet Japanese requirements.
Production from a deposit found on an
island in remote Babine Lake in northern
British Columbia is to start this year at a
5,000-ton-a-day rate.
Potash success story: Within the last four
years, Canada has emerged as a major pro-
ducer of potash-an ingredient in much of
the world's fertilizer.
Thick beds of potash were found far un-
derground in Saskatchewan by oil drillers.
During 1965, three companies were In pro-
duction, two others were sinking shafts or
wells, and three more had announced major
potash projects.
Production in 1965 totaled 1.3 million tons
of refined potash, either by mining or by a
process using wells to pump dissolved potash
to the surface.
By 1970, is estimated, 750 million dollars
will have been invested in developing. Sas-
katchewan's potash beds, and Canada will be
producing 7 million tons of potash, enough
to make it the world's largest supplier. Re-
coverable potash in vast Saskatchewan beds
has been estimated at 60 billion short tons,
about half the world's known supply.
Asbestos is another giant Canadian indus-
try. Asbestos Corporation, Ltd., a major pro-
ducer with large mines in Quebec, is spend-
ing 50 million to develop a large deposit at
Asbestos Hill, 1,100 miles north of Montreal.
The mine is expected to be turning out
100,000 tons of asbestos fiber a year in 1970.
It will be shipped to plants in Canada,
Britain and the U.S. from Deception Bay, on
Hudson Strait, during the phort ice-free sea-
son there.
Uranium marks time: Canada has the big-
gest known reserves of uranium--an esti-
mated 200,000 tons producible at $5 to $10
a pound. Even under current conditions of
relative depression in the uranium market,
Canadian production is second only to that
in the U.S.
Most mines in the major producing areas--
Beaverlodge, Sask.; Elliot Lake and Bancroft,
Ont.-are shut down or operating only part
time.
Rising world demand, however, is expected
to revive the uranium-mining industry In
the 1970s, Stockpiling by the Canadian
Government is helping to keep the mines
functioning.
Forests: Canada leads the world in news-
print production, ranks second In the pro-
duction of wood pulp for other paper prod-
ucts and fourth in output of lumber and
plywood.
Exports of Canadian forest products total
nearly 2 billion dollars. New mills are being
built all across Canada to meet the growing
demand for newsprint and other paper goods.
Currently, Canadian timber workers cut
an estimated 8 billion feet of wood annually.
Experts say the forests of the country could
sustain an annual yield of 12 billion cubic
feet under intensive management.
Oil and gas: Vast quantities of oil and
natural gas in Canada's sedimentary rock
provide one of the best guarantees of future
prosperity.
"As far down the road as we can see.,"
says a geologist-executive of the oil industry,
"Canada will have oil for world markets."
Present known reserves are set at 7.7 bil-
lion barrels of oil, enough for 23 years of pro-
duction at the present rate, and 44.4 trillion
cubic feet of gas, a 35-year supply. These are
the proven reserves of fields that have been in
production. for some time.
There are new discoveries in northern Al-
berta and northeastern British Columbia that
soon will send the official estimates of reserves
soaring.
It is believed that more than a million
cubic miles of sedimentary rock, of the type
that bears oil and gas, lies under Canada's
northern regions.
On the basis of the North American average
of production per cubic mile, the oil potential
of the Yukon Territory is set at 3 billion
barrels of the Northwest Territories at 13
billion barrels and of the .Canadian Arctic
islands at 33 billion barrels.
Oil from sand: Oil-impregnated sands :fie
close to the surface under several hundred
square miles of wilderness along the Atha-
baska River in northern Alberta. This "tar
sand" can be mined by strip-mining
processes.
Production is to begin next year on a
limited basis, Great Canadian Oil Sands
Ltd., a subsidiary of Sun Oil Company, is
rushing a 230-million-dollar plant and pipe-
line system into completion.
Early next year, the firm will start pump-
ing 9:5,000 barrels of oil a day through Its
266-mile pipeline.
Water: Canada now produces 22 million
kilowatts of hydroelectric power. All of it,
plus 7 million kilowatts produced by ther-
mal-electric plants, is used by Canada's own
booming industrial machine.
Giant new projects are under way in Que-
bee, British Columbia and Manitoba. All
told, U.S. power authorities believe, 7 million
kilowatts of new hydroelectric power will be
available for export to the U.S. within the
next decade.
Electric power in Canada is now a billion-
dollar business. But much of the value of
the country's hydroelectric resources shows
up in the form of exports. Canada's position
as the third-biggest producer of aluminum,
for instance, is due to its plentiful supply of
hydroelectric power.
Canadians are beginning to view their al-
most limitless flows of fresh water as a val-
uable source of export dollars.
Arthur Laing, Minister of Northern Affairs,
sees water "as one of the prime resources of
the Yukon-one which I predict in the fu-
ture will be of equal, if not greater, impor-
tance than the mining industry
Two plans are being pushed in the U.S. to
make use of the waters of the Yukon River-
the Rampart Dam proposal in north-central
Alaska and the North American Water Alli-
ance proposal.
The latter is a plan advanced by private
engineering interest with support from some
western members of Congress. It would di-
vert Alaskan and Yukon water southward
through a network of waterways reaching
into Mexico and across the plains to the
Great Lakes.
The U.S. stake: In the race now going on
to develop the resources of Canada, the big-
gest spenders are American firms or their
Canadian subsidiaries.
Foreign corporations, mostly from the U.S.,
already own or control more than half of
Canada's industry. American-owned firms
dominate the oil and gas fields and their
pipelines. Nearly 60..per cent of Canada's
mineral production belongs to outsiders.
One Canadian leader who welcomes even
more American investment is Premier W.
Ross Thatcher of Saskatchewan, who has
this to say:
"In the last several years, American capital
has been responsible for a dramatic trans-
formation of Saskatcehwan from an impov-
erished 'have not' province to its present
position as one of the most .... 11
.
U.S. companies are spending heavily in
the search for oil and gas, in developing
Saskatchewan's rich potash beds, and in cre-
ating a pulp and paper industry in the
Province.
"Had our doors been even partially closed
to America's capital," Mr. Thatcher says, "we
would still be one of Canada's backward
Provinces. The Government of Saskatche-
wan, in the months ahead, intends to take
every practical or feasible step to attract
additional American investment."
National policy toward foreign investment
in Canadian resources, and ownership of
those resources, may change in the future.
But meanwhile in Canada, with the help
of U.S. dollars, the biggest deveolpment
boom of modern times is under way.
[From U.S. News & World Report, July 25,
1966]
A HELPING HAND-TAX INCENTIVES
Here are the ways Canada encourages min-
eral development:
1. A full write-off of exploration, drilling
and excavation costs in connection with the
search for minerals.
2. Any company with income from min-
eral production can write off its off-property
exploration costs against its mineral income.
New syndicates for mineral exploration can
write off cost against future mineral income,
with unlimited carry-forward privileges.
3. Income from production of new mines
is exempt from income tax for three years.
4. Depletion allowance of 331/3 per cent for
most types of oil, gas, prime-metal and in-
dustrial-minerals operations on net income.
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 A4000
Rep. FALLON is chairman; James E., 20, a
student at Cornell in the field of Metallurgi-
cal engineering and Joseph Robert, 18, a re-
Approved J-I?6"g91@"M6 MADRD f~Ib~R0004000900" 29, 1966
cation and are motivated by the highest
principles in our religious heritage, what can
we expect of our future leaders?
Freedom of religious expression is a basic
human right. Many of the original Colonies
were founded upon religious liberty. Jeffer-
son's "wall" between church and state should
remain intact, but the religious principles
upon which this country was founded must
not be discarded nor replaced by godless
doctrines in our public schools.
J. E. Kennedy Retires From Customs
Post
EXTENSION OF REMARKS
HON. CLARENCE D. LONG
OF MARYLAND
IN THE HOUSE OF REPRESENTATIVES
Friday, July 29, 1966
Mr.-LONG of Maryland. Mr. Speaker,
after more than 42 years of outstanding
customs work in Baltimore, Mr. J. Eu-
gene Kennedy retired from his post as
District Director of Customs. Baltimore
is one of the busiest and most important
port cities in the United States, and effi-
cient and reliable customs workers like
Mr. Kennedy have contributed to,Balti-
more's current status as a port city. The
Havre de Grace Record of July 14, 1966,
summarized Mr. Kennedy's accomplish-
ments in his long career, and I should
like to bring this article to the attention
of my colleagues:
J. E. KENNEDY RETIRES FROM CUSTOMS POST
Mr. J. Eugene Kennedy, district' director
of customs, retired on his birthday last
Thursday after more than 42, years of cus-
toms work in Baltimore. A native of Havre
de Grace he has been dubbed "Mr. Customs"
cent graduate of Boys Latin Sch
Mr. Kennedy is an accomplis
and studied for a number of ye
body Conservatory of Music. Lon
dents remember with pleasure
certs he gave in Havre dy Chrac
ago.
Treatment of AmeWans Captured by the
North Vietnamese
EXTENSION OF REMARKS
HON. STROM THURMOND
OF SOUTH CAROLINA
IN THE SENATE OF THE UNITED STATES
Friday, July 29, 1966
Mr. THURMOND. Mr. President, on
Wednesday, July 27, 1966, the Augusta
Chronicle, Augusta, Ga., published an
editorial entitled "The Mark of the
Beast." The editorial concerns itself
with the treatment of American fliers
captured by the North Vietnamese and
reports of executions by beheading. It
also takes note of the barbaric actions
of the Communists who have been shoot-
ing our wounded on the field of battle.
This entire area is a most serious prob-
lem and demands immediate and affirm-
ative attention. I ask unanimous con-
sent that the editorial be printed in the
Appendix of the RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
THE MARK OF THE BEAST
mane" Communists summarily beheaded
the American they had caught.
These men, wounded on the battlefield
or fleeing a prison camp, were beyond com-
bat status. They were defenseless, and by
all the rules of civilized conduct were pris-
oners. By the vicious and barbarous way in
which they were done to death, they join
many thousands of others in South Viet
Nam who have suffered hideous deaths at
the hands of Communists. They share the
fate of village chiefs and their families tor-
tured to death to intimidate the villages.
They share the fate of civilians in Saigon
who have been callously bombed into
oblivion by the Viet Gong who-we are told
in some quarters-simply are seeking their
rights.
Regardless of who is spared from a
trumped-up "war crimes" trial in the prison
camps of North Viet Nam, these men were
given not even the benefit of mock trials.
They were simply slaughtered by Commu-
nists acting like Communists.
Such incidents mark the character of the
forces under Ho who will be enabled to perpe-
trate more of the same kind of atrocities if
we can just be persuaded to cease oil depot
bombing, and let more of the killers move
south. They mark the foreseeable action of
future waves of invaders if we will just "de-
escala?te," or withdraw our forces and let
Ho's horror sweep over the South Vietnamese
countryside.
Such incidents place the mark of the beast
also on the Soviet Union, which is supposedly
a peace-loving member of the United Na-
tions, and on Red China, for which many
persons in a soft-on-communism bloc are
trying to win UN membership. Russia's
active participation' in aggresion by sending
weapons and munitions to Hanoi, and Pe-
king's vociferous moral support and threats
of intervention brand them as being un-
worthy of associating in the society of civil-
ized nations.
A group of American fliers captured by the
North Vietnamese after being shot down will
not be tried as "war criminals"-yet, at least.
That's the word relayed to our government
through diplomatic channels.
President Ho Chi Minh is quoted by a
Czech news agency as stating, in Hanoi, that
North Viet Nam in this decision has behaved
Colorado River Project-Address by Hon.
Barry Goldwater
EXTENSION OF REMARKS
and "the fount of all knowledge" regarding
collection problems along the entire East
Coast.
In an interview with the Record on
Monday, Mr. Kennedy was enthusiastic about
the full life he anticipates in the future as
he maintains an interest in a warehouse
business he helped to found, plays the piano
for his "own amazement" and flies the me-
mentos of the past fruitful years.
Mr. Kennedy was honored at a gathering
of some 300 persons last Thursday night in-
cluding many co-workers, the city's Congres-
sional delegation-Representatives FALLON,
"GARMATZ, and FRIEDEL, and Thomas J. D'Ale-
sandro, 3rd, president of the Baltimore City
Council and acting mayor.
In paying tribute to Mr. Kennedy, the
speakers praised him for helping to build
Baltimore to its present status as a port city.
One recalled when he entered the customs
service in 1924 as a clerk-stenographer-"a
freckle faced boy with bushy red hair". Pres-
ent indications are that the hair has given
way to forehead.
The Bureau of Customs' highest award was
presented Mr. Kennedy, the Honor Award,
making him the tenth man ever to receive
it. He has also received the Treasury De-
partment's Gallatin. Award for distinguished
service. Mr. D'Alesondro presented him the
The Kennedy family, not to be confused of any wounded Americans who moved, kill- in a slightly different role from the one in
with the Cape Cod Kennedys, the retiree ing at least six and then looting the bodies which I have appeared here on so many occa-
-hastened to point out, consists of his wife, of any valuables, sions in the past. For once, I am not going
Aberdeen and At the same time, an American Navy air- to exhort you about politics or my views on
four former
children: Agnes John EE. Jr. of
four the IB, 25, a Company; Ann man who had escaped from a North Vietna- the state of international affairs or the prob-
Cornell now with the IBM Company; Ann mess prisoner of .war camp was telling of lems we are encountering on the domestic
Carey, c a graduate of Notre unior Colpay- the fate of a fellow-escapee who was cap- front. I have no doubt that some of you
now mpool and Villa Juie Junior College, tured by pursuing North Vietnamese. As will get at these matters when the question
Public c as an Works Investigative Commimmttee of aide whicych the survivors hid and looked on, the "hu- period is held. But, in the meantime, you
the now em House employed
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in a humane manner. No doubt, around the HUN. JOHN J. RHODES
world, advocates of a free hand for the Com-
munists in South Viet Nam will parrot this
claim, and use it as ammunition for new at-
tacks against resistance to. aggression.
If a humane element is involved, it is sheer
coincidence. Humaneness is not commu-
nism's way. Ask refugees from the Baltic
states, from Hungary, from Tibet. The de-
ciding factor in the decision with regard to
the fliers is propaganda value. By this
means the friends of communism around the
mane" He with the "ruthless" Johnson, who dressed himself to the false impressions
is ordering barbarous attacks on a Viet Cong
which wants only a peaceful, democratic dia- given by preservationist groups as to the
logue with the obstinate South Vietnamese effect Marble and Hualapai Dams would
who erroneously think freedom is good for have on the Grand Canyon. Since the
them. Senators knows the canyon like he knows
Even as the message on rejection of a his own Arizona patio, his remarks are
"trial" was being evaluated in Washington, particularly well-informed and persua-
North Vietnamese regular army units ille-
gally rive, and I include them herewith:
in South Viet Nam were overrunning an
American unit. The Americans had been EXCERPTS OF REMARKS BY HON. BARRY GOLD-
forced by heavy attack to withdraw with- WATER TO THE NATIONAL PRESS CLUB, WASH-
',out even an opportunity to evacuate their INGTON, D.C., WEDNESDAY, JULY 27, 1966
__ _ - ..
f +he P ess T trust
o
OF ARIZONA
IN THE HOUSE OF REPRESENTATIVES
Monday, July 18, 1966
Mr. RHODES of Arizona. Mr.
Speaker, on Wednesday, July 27, former
Senator Barry Goldwater addressed the
National Press Club on one of his favor-
 Approved For Release 2005/06/29 CIA-RDP67B00446R000400090001-8
Appendix
Grand Canyon Threat
EXTENSION OF REMARKS
or
HON. JEFFERY COHELAN
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Friday, July 29, 1966,
Mr. COHELAN. Mr. Speaker, a timely
defense of the Grand Canyon was pre-
sented by our distinguished colleague,
the Honorable HENRY S. REUSS, in his
letter to the Washington Post of July 25,
1966.
As Congressman REUSS points out:
If Congress acts wisely, Arizona can have
Water and America can continue to have the
Grand C