THE HIGH COST OF VICTORY

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August 2, 1966
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Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 August 11, 1966 CONGRESSIONAL RECORD - APPENDIX A4249 products because of the "problem of uncer- tainty" that endlessly confronts thefn; baffled by all the claims they are exposed to, uncer- tain of the merits of unadvertised products, they decide to play it safe-so stick with the products they have heard most about. Thus heavy advertising outlays, sustained over long periods of time, create such durable preferences that it is impractical for com- peting firms to introduce new products- unless, of course, they are prepared to invest heavily in advertising themselves. These investment requirements tend to discourage outside firms from entering a field, lead to more concentration of business in the field, and enable firms established in it to charge "monopolistic prices." According to a study of consumer industries cited by Turner, there is "a significant correlation between the proportion of industry sales devoted to ad- vertising and the average profit rates which were earned." This is the main line of the argument, but there is an interesting subsidiary theme. Sometimes, Turner allows, firms without a position in a particular market may decide to accept the cost of entering it-i.e., they may decide to make that heavy Investment in advertising their own new products. In this case, there is no question about monop- oly; indeed, Turner refers to advertising as "an important form of rivalry among firms." But at this point he is bothered by another thought: the possibility that "advertising costs [may be] excessive in relation to what we get out of them, and may create durable preferences going beyond the relative su- periority of the product.... . His argument has a certain plausibility to it; however, a few major' countervailing thoughts may be in order. First of all, it is important to observe that Turner's co.rll- plaints about advertising might be applied to any management operations that are suc- cessful. On his view, what is ultimately dan- gerous about advertising is that it leads to markets dominated by too few firms. But businessmen, are always trying to raise their shares of markets; and their efforts involve not only advertising and promotion, but sophisticated research strategies, plant in- vestmehts, quality control and improvement, pep talks to dealers, inventory-control tech- niques-In short, the entire apparatus of modern management. Any time that one company's apparatus works better than its competitors', there is, on Turner's logic, an incipient problem of concentration. A WANTED TOUCH OF GLAMOUR Why, then, did he single out advertising? It is obviously Impossible to answer the question categorically; but there may be a clue in those remarks of his relating adver- tising costs to "what we get out of them." Turner suggests, in this and other passages of his speech, that he believes the legitimate function of advertising to be informational. When an ad specifies the wattage of a stereo receiver, it is doing something socially use- ful; when it merely registers general en- thusiasm for the taste of a certain chewing gum, it is wasting society's resources, and perhaps leading consumers to pay more than "the relative superiority of the product" warrants. Another countervailing thought may be in order at this point. A good deal of the "puffing" that goes on in ads is certainly obnoxious, but most of it is easy enough to take-and some, in fact, seems able to invest products with a touch of glamour,. Further- more, many consumers seem to want that touch of glamour. Turner's rather prim formulations about the proper role of ad- vertising, and about ads that lead consumers to overpay, seem to preclude the notion of any real value attributable to glamour or, more generally, to the "image" that clever advertising men are able to wrap around some products. Most of us would probably disagree, and insist that Volkswagens are more valuable because of all that high-class advertising. Given his general fix on advertising, Tur- ner's solution to the problems he raised is not surprising, At one point in the speech he considers the possibility of limiting the proportion of sales that firms may be per- mitted to spend on advertising. Alterna- tively, he considers the possibility that "we might promote and develop other methods of supplying information to consumers-meth- ods which would give the consumer much better and more useful information than he now gets and at lower social cost." In prac- tice, this seems to involve a kind of govern- ment-sponsored version of Consumer Re- ports. He is not very explicit, however, about the manner in which any such opera- tion could be made to work fairly. Meanwhile, it is pertinent to note one large irony about his speech. The statements about the effectiveness of advertising were about as extreme as any ever made in an ad agency's plteh for a big new client. ("In- dustries with high advertising outlays tended to earn profit rates which were about 50 per- cent higher than those which did not under- take a significant effort.") The statements were based, furthermore, on a large and scholarly study of advertising's effectiveness, undertaken jointly by William S. Comanor of the antitrust division and Thomas A. Wil- son of Harvard. Madison Avenue, it is safe to predict, will be rushing to get its hands on'the study. Elbie Jay Saves a Marriage EXTENSION OF REMARKS OF HON. J. ARTHUR YOUNGER OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Thursday, August If, 1966 Mr. YOJJNGER. Mr. Speaker, again our satirist, Arthur Hoppe, has published another of his columns on "Elbie Jay," in the Friday, August 5, issue of the San Francisco Chronicle. His column fol- lows: ELBIE JAY SAVES A MARRIAGE (By Arthur Hoppe) Howdy there, folks. How y'all? Time for another tee-vee visit with the rootin'-tootin' Jay Family, starring of Elbie Jay-the kind- liest, lovablest, humblest feller in the world. And, like he's fond of saying, "Don't you ever forget it!" As we join up with of Elbie today, he's browsing through a poll on whether he should get a haircut. That young feller com- ing hesitantly in the doot is his prospective son-in-law, Pat Somethingorother. Pat (nervously) : Excuse me, sir. Elbie (jovially) : Why, howdy, there, son. Come in and set a spell. Can't tell you how much I'm looking forward to having little old man-to-man chats with you after the wed- ding Saturday. When, of course, my sched- ule permits. Pat: Yes, sir, about the wedding . Elbie: Don't worry, son. I'm all for it. In fact, you've made me a mighty happy man. Already, I've gone up three points in the polls. Pat: That's nice, sir. But there's some- thing I've got to say. Elbie: Go right ahead, son. It's a free country. There's nothing I treasure more highly than free speech, freedom of religion and freedom of, the press. Excepting, natu- rally, for Women's Wear Daily and others who'd violate our national security. Pat: (wetting his lips) : Well, sir, about the wedding, there's kind of a hitch . Elbie (frowning) : They forgot to send you an invitation? Don't fret, son, I'll take care to see you get in. Pat (blurting out) : No, sir, it's-that-I've- decided-not-to-get-married. Elbie: Well, now, son, I'm sure these minor details can be . You what? Pat (hastily) : It's not that I don't think your daughter isn't a fine girl, sir. It's just that with all this publicity ... Elbie : Publicity? Why, it's going to be a small, private, family wedding attended by your 700 closest friends, Like the Cabinet, the bi-partisan leaders of Congress, a couple of Governors. And there'll be me, smiling proudly. And Birdie-Bird, maybe shedding a tear or two. My, what a glorious day. I ought to go up ten points. And we got to think of the future, son. Pat: I am, sir. I'm thinking about how it'll be to go on a honeymoon with Secret Service agents and reporters and . Elbie: And I'm thinking about the No- vember elections. You're not going to leave me standing at the altar, boy. Pat (stouTly) : As you said, sir, it's a free country. And I don't have to get married If I don't want to] (As Elbie turns purple) Er, do I? Elbie (forcing a smile) : 'Course not, son. And let me say how much I admire your courage. It's not many young men who'd give up a chance to marry my daughter in order to go off next Tuesday to fight for their country in the jungles of Vietnam. The hot, slimey, poisonous, bullet-ridden jungles of Vietnam, where your chances of surviving Well, tune in to our next episode, folks. And meantime, as you mosey down the trail of life, remember what Elbie's of grandaddy used to say: "Never underestimate the courage of our young folk. Give them the grim choice 'tween marriage and war, and they'll bravely take Marriage every time." The High Cost of Victory EXTENSION OF REMARKS OF HON. G. ELLIOTT HAGAN OF GEORGIA IN THE HOUSE OF REPRESENTATIVES Tuesday, August 2, 1966 Mr. HAGAN of Georgia. Mr. Speaker, the Atlanta Constitution editorial of August 9 reiterates the probable commit- ments which the U.S. Armed Forces may have to face to achieve total victory. I agree that the objectivity of this editorial is most commendable, but I am of the opinion that even with the escalation proposed, that our position vis-a-vis the Soviet Union and Communist China should be again carefully reexamined to insure that we leave no reason for doubt as to our full intentions. The editorial follows: The Pentagon's estimate that it will take three quarters of a million men for a decisive military victory in Vietnam is, if anything, conservative. Some estimates have run as high as a million. The essential element in a purely military solution is cutting off the flow of men and supplies from North Vietnam. That Involves blocking the so-called Ho Chi Minh Trail, which is not a well defined road, but rather any jungle route that is open at any given time. So a blockade requires arming the entire North Vietnamese frontier, including the border with Laos. That would take a huge number of men. Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 A4250 Approved For Release 2005/06/29 :.CIA-RDP67B00446R000400100015-1 CONGRESSIONAL RECORD -APPENDIX August 11, 1966 The Pentagon study, which reflects the col- lective judgment of civilian. as well as mili- tary experts, makes it clear that such a build- up cannot be achieved without at least partial mobilization of our military reserves and/or massive withdrawal . from Europe. That latter course Is diplomatically impos- sible. It would shatter Western European confidence in America's commitments, and Invite Soviet mischief. So the Pentagon study is a useful reminder that "getting it over with"-a course de- manded by an increasing number of im- patient Americans-means calling up the reserves, interrupting family life and busi- ness careers,_ and surly raising taxes. North Viet Nam at the same time should realize that this country is capable of crush- Ing It militarily, and will do so if given no reasonable alternative. American policy under both President Kennedy and President Johnson has been a gradual building of forces and military action in hopes the Communists would realize the hopelessness of military seizure and would Instead come to the conference table. Our escalation already has made Com- munist victory impossible. But without further escalation, our position is one of stalemate. The Communists hold the key to peace in Viet Nam. Peace will come only when they agree to reasonable negotiations-or when they are crushed militarily. The choice Is theirs. In the meantime, it is good that the Ameri- can public has been reminded of the costs involved. Fair Housing Gives North Its Moment of Truth EXTENSION OF REMARKS OF HON. CHARLES McC. MATHIAS, JR. OF MARYLAND IN THE HOUSE OF REPRESENTATIVES Tuesday, August 9, 1966 Mr. MATHIAS. Mr. Speaker, during the recent debate on H.R. 14765, the Civ- il Rights Act of 1966, the Dayton, Ohio, Daily News offered some perceptive ob- servations on the real meaning and chal- lenge of this bill. In bringing this editorial to the at- tention of the Congress, I would like to pay tribute to the gentleman from Ohio ?Mr. MCCULLOCHI, the ranking minority member of the Committee on the Judi- ciary, who has fully recognized the seri- ous problems facing our Nation, and has worked long and hard to develop re- sponsible, equitable solutions. The editorial follows: FAIR HOUSING GIVES NORTH ITS MOMENT OF TRUTH The searing debate on and uncertain fate of the civil rights bill in the House of Repre- sentatives this week grows out of a simple political fact: For the first time the pro- posed law would hit the North, not the South. No use blinking that fact. All the shoot- ing Is over Title IV of the proposed act. That is the part that would speed fair hous- Ing. It would require, In some circum- stances, that real estate agents sell or rent houses to people regardless of whether they are white, black or somewhere in between. Residential segregation is primarily a northern phenomenon. In the South, the old racial bars were so high that whites could have Negroes living among them as a servant-type convenience, and never be bothered with social integration. As a re- sult, residential segregation into ghettos is rare in Dixie except in the largest cities. In the North, Negroes were quickly ostra- cized into ghettos. That way, the whites could permit them legal equality without living as neighbors, attending the same schools or having much to do with them. Now the hidden walls which keep the Negro in the ghetto (real estate practices, refusal to lend money for home purchases in all-white areas, and so forth) are chal- lenged. The present federal bill has been watered down considerably. It would not apply to a homeowner who wants to sell or to a broker handling a private sale for an owner. But it still is stirring quite a fuss. Many northern congressmen, ardent sup- porters of civil rights measures as long as they could woo Negro votes that way with- out losing white ones, now are opposing this measure. They fear white resentment. So the moment of truth comes nearer. Does the northern white really want to bury his head in the sand and attempt to maintain an un-American barrier to Negro freedom to move about? That is the ques- tion. It is a question citizens must answer, just as Congress must. The answer, of course, In the long run is that American democracy must apply to all. Americans. The best way to move that answer closer at the moment is to pass the current bill. The Quest for Peace EXTENSION OF REMARKS HON. EDWARD R. ROYBAL OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Tuesday, July 26, 1966 Mr. ROYBAL. Mr. Speaker, in pro- testing the administration's Vietnam policy, many of us do not sufficiently stress the wider implications involved in our actions there. Yet we must recog- nize that the war In Vietnam represents a dangerous overdependence upon mili- tary means. Further, it represents an unforgivable disparity between the American dedication to liberty and to the rule of law on the one hand, and on the other, the American disregard of inter- national law and morality. These two interpretations of the sig- nificance of our Vietnam policy are con- tailed in a very thoughtful and pene- trating analysis of American problems written by one of my constituents, Mr. Joseph R. Grossman. In his paper, Mr. Grossman convincingly shows us the necessity of proving to the world that our Constitution is a living document which actually guides us when we cope with our internal problems and that we honor our international commitments In the same spirit by a strict observance and even furtherance of international law. Mr. Grossman comments on the chal- lenges facing America from the van- tage point of one who has had personal experience with the forces of aggression. His foresight and sense of values prompted him to leave Czechoslovakia before Hitler invaded. He had to aban- don his home and his business, which had belonged to his family for four generations. Later, in 1939, he relin- quished a very rewarding position, of- fered to him by the Government of Northern Ireland, because he felt that the British Government was not ade- quately preparing for the onslaught of Hitler, which actually came a few weeks after Mr. Grossman's return to the United States. Mr. Grossman has been a citizen of our country for 20 years, and he is now concerned with the way in which we are meeting the Communist aggression. He believes that superior military might and strategy was the only way to defeat Hitler but that it is exceedingly dan- gerous to equate that situation with the situation we have today. We must consider our present military strength- He writes- as a preventive, and not as a curative In- strument. I have unanimous consent that Mr. Grossman's analysis be printed in the RECORD at this point: MissinG Liners ne Oust QUEST FOR INTERNAL AND EXTERNAL PEACE (By Joseph R. Grossman) No meaningful evaluation of our contem- porary scene can lose sight of the following: We live in a world of specialists who are con- stantly and miraculously advancing our tech- nological progress. In this seemingly unend- ing process, our specialists in the physical sciences have already created the means of mass destructions which, unless wisely and responsibly controlled, could put an end to life on this planet. This realization makes it inevitable that we compare our tech:nolog- teal advances with those that can be detected in the fields of psychology, sociology and hu- man advancement per se-and we will arrive at the most threatening and fateful realiza- tion that our moral and sociological failings may well bring about the destruction of our civilization through the misuse of our tech- nological advances. By carrying these logically Irrefutable facts and conclusions just one step further, we will recognize that as long as our technological progress is running way in front, we must embark on a supreme and concerted effort to direct the same scientific ingenuity which has shown such phenomenal results in the physical and related sciences, to an ever greater extent toward research In the fields of human conduct and human co-existence and that both In the national and Interna- tional areas of our contemporary world. The task to remove the stated disparity and to effectively cope with the bewildering complexity of our internal and external problems requires an effort in depth penetra- tion, wihch often seems to transcend the present limits of the thinking power of the human mind and of the present stage of our moral enlightenment. It Is all the more de- plorable that so much that we are now wit- nessing In official utterances appears to be based on superficiality, on preconceived notions, faulty analogies and emotionalism, rather than on the indispensable interplay between scientific minds of the highest and most diversified order and the field of prac- tical politics. To erect and maintain an artificial barrier between research and polit- ical action, can only prove disastrous, since nothing but research, analysis and mean- ingful anticipation, which must precede our decisions, can adequately guide us, not only as to steps which we must take, but equally importantly as to pitfalls and courses of action which we must avoid, dangers which we must foresee and be prepared for, In- equities which we must remove before they get out of hand. Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 Approved For Release 2005/06/29 : CIA-l DP67B00446R000400100015-1 August 11, 1966 CONGRESSIONAL RECORD - SENATE portions of the corporate tax revenue would subject -to progressive Income taxes insures be used for direct Cash payments to the that the federal government's revenues from voters. . Government should introduce cut- personal taxes will rise continuously as a backs in some of its programs after the percent of personal income. National Dividend payments, are large At the rate at which American families enough to substitute for them. have been moving Into higher income brack- In 1965, corporate income taxes amounted ets, the federal government has been bene- to $30 billion. And there were roughly 70 fiting to the extent of approximately one- million voters in the 19$4 national elections. half of one percent per year simply because Assume that by the time the National Divi- progressive rather than uniform tax rates ap- dend plan could be put into full effect the ply to all personal income. corporate income taxes had risen to $40 bil- So we see how these built-in economic lion and the number of voters had grown factors practically assure a steady six percent to 80 million, this would mean that the Na- annual increase In federal revenues. One tional Dividend would be $500 per year, per percent comes from the growth of the labor voter. For a man and wife, it would be force; three percent from the increase in out- $1,000 tax free income. put per man-hour; one and one-half percent The point is, however, that whatever these from the increase In prices, and one-half of payments are, they will have to come from one percent from increased dollar income productive earnings, not from additionally and progressive income tax rates. inflationary spending. We will have earned And we also see that this six percent an- them and they will not be diluting the value nual increase in federal revenues can pro- of the dollar. And herein lies one of the vide all the funding needed to phase the basic values of this plan as against other National Dividend plan into full operation to economic proposals such as the Negative In- bring its broad-based benefits to all our come Tax or the Guaranteed Annual Wage. citizens. Several built-in factors in our ecofiomy The National Dividend offers far more than have been responsible for the substantial just a simple plan for distributing corporate annual growth In the federal government's profit taxes directly to those citizens who cash income in recent years. Combined, regularly fulfill their voting obligations. they practically assure a continued six per- it would be a perpetual feed-back of con- cent annual increase. Sumer buying power, into the economy. One major reason lies in the steady growth It would remove much of the fear of tech- of the country's population and labor force. nological advance and would accelerate auto- The labor force grows by more than one per- mation with its ever increasing benefits cent per year. Consequently, the nation's spread evenly among all citizens. genuine output and genuine income also By reducing centralized federal spending grow one percent per year. power, It would strengthen the constitutional This means that federal income grows by principles of states' rights and the basic con- about one percent per year. cept of the rights of private property. Another factor which continually lifts the It would improve dollar stability by remov- nation's real output, real income and fed- ing inflationary taxes, and reduce artificial eral tax revenue is the steady annual in- and burdensome controls. It would make crease of about three percent in the worker's American products more competitive in world man-hour output. The increase is brought markets, and it would increase the gross na- about by investors giving our working citi- tional product by stimulating the incentives zens more and better equipment to work for investment and production. with. This means that for the nation as And, finally, It could be an effective device a whole, the real output, the real income, for achieving lasting world peace by under- and the true standard of living also rise by mining the senseless ideological attacks on about three percent per year. Consequently, capitalism by Marxism. By making every so does federal tax revenue-which is geared voter a partner in a vigorous and under- to real income-rise by about that same standable free enterprise system, the argu- three percent. merits for world socialism would begin tb The third factor which lifts federal rev- fade away. enues is a form of creeping inflation. It Real wages come out of production, not out is the result of wage Increases being greater of government decrees. Partners would pro- than production increases, thus necessitat- duce more, free citizens would have more Ing price increases. cash, more confidence, more dignity. Men Since World War II, wages have risen of good will could, through the National about 41/2 percent per year, while production Dividend, work more harmoniously together. has been boosted only about three percent. We can hdvbs Great Free Society Inspired had resulted in a price increase of about and financed profit. We can have oppor- nd This 1~/2 percent per year since the end of the tunity for for all. . We can be fed, free and war. Chronic price inflation such as this does happy, a shining example to other peoples of the rid not lift national output. But it does in- w9, who also want these same, basic crease the nominal dollar income. There- thin st fore, so long as the built-in price inflation proceeds, personal income, corporate income I'Y IS A CIVIL WAR IN VIETNAM- and the corporate tax revenues that depend FOUR FOREIGN CORRESPOND- on these Incomes will increase annually an ENTS CONFIRM PREVIOUS VIEW additional 11/2 percent per year. The final factor Involved in the Increase OF PRESIDENT KENNEDY AND in government revenues is the manner in SENATOR STEPHEN YOUNG which personal income taxes are levied. Mr. GRUENING. Mr. President, lit- War tie byi little the truth about Vietnam is II The has msteadyoved rise more e 'wages and ges more e citizens World into o higher income tax brackets. Although the coming out-the truth which has been dollar income has been boosted by about persistently obscured by administration 41/2 percent per year, real income has been propaganda. growing only at the rate of three percent, Last February, Under Secretary of the rate of increase in the production of State George W. Ball, in the course of real goods. addressing the Northwestern University However, personal income taxes are based Alumni Association at Evanston, Ill., in on countable dollar income, not on realty in- a speech entitled "The Hanoi Myth of hcome, been Since shar1942, ply personal progressiveinco-methe tax higher rates an Indigenous Rebellion," declared that have the dollar income, the higher the rate. So, the civil war allegations were indeed a the fact that all workers are experiencing' myth. But he made this pertinent Com- rising real and countable income and are merit: 18181 If the Vietnam war were merely what the Communists say it is-an indigenous rebel- lion-then the United States would have no business taking sides in the conflict and helping one side to defeat the other by force of arms. This is an important declaration by the second ranking official in the De- partment of State. We now have further evidence that it is a civil war. President, who was elected to the House of Representatives in 1946, and was in the Senate from 1954 to 1960, during which time he was a member of the Foreign Relations Committee, re- ferred, in his news conference of July 18, 1963, to "the civil war which has gone on for 10 years." On February 6 of this year, Senator STEPHEN YOUNG of Ohio, a combat vet- eran, returning from a 3-week visit to South Vietnam, declared on the floor of the Senate: This is a civil war going on in Vietnam. Before-I visited Southeast Asia, it had been my belief that all of the Vietcong fighting in South Vietnam were communists and in- filtrators from the North. But I had not been in Vietnam for more than 4 days-and during that period of of time, I was in every area of Vietnam-when almost immediately I observed very definitely that we were in- volved in a miserable civil war in the steam- ing jungles and rice paddies of South Viet- nam. I learned from General Westermore- land that the bulk of the Vietcong fighting in South Vietnam were born and reared in South Vietnam. I learned from General Stillwell and other Generals that 80 per cent of the Vietcong fighting the Americans and the South Vietnamese in the Mekong Delta south and west of Saigon were born and reared in that Mekong Delta area. This is a civil war in which we are involved. The fighting has been going on there since 1945. Now, we have a report from four ex- perienced newspaper correspondents at the front to the same effect. This was heard in an educational television broad- cast, transmitted over channel 13, WNDT, New York, on Monday, August 1, and, at Washington, D.C., over WETA, channel 26, on August 3. It was a production of National Educational Television. The participants were: Malcolm Browne, for- merly of the Associated Press and a Pulitzer Prize winner for his book on the war in Vietnam, entitled: "The New Face of War"; Jack Foisie, of the Los Angeles Times; Charles Mohr, of the New York Times; and Dean Brelis, of the National Broadcasting Co. Touching on the question of whether this was a civil war or a war of aggres- sion, this is what the four correspondents said: BaowNE. Yes, One of the problems, of course, is that the administration itself, par- ticularly Secretary McNamara, have tended to obscure some of the issues here and have deliberately misled American public opinion. For example, the continual harping on the North Vietnamese aggression has led to the supposition that the Vietcong is a North Vietnamese outfit. Well, of course, it has North Vietnamese leadership and a lot of North Vietnamese cadres and a lot of North Vietnamese weapons. But the bulk of the Vietcong Is South Vietnamese. And this, of course, tends to interfere with the Mc- Namara statement this is not a civil war. Well, of course, it is a civil war, by the Webster definition of the thing. Approved, For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 18182 NrvEN (moderator). Do you all agree? F,orsm. I think it is. BRELrs. Yes, I agree. MOHR. Yes, a special kind of civil war. CONGRESSIONAL RECORD ?- SENATE August 11, 1966 ForsrE. And it was more so in its early stages than it is now. BRowNE. Yes. Just as the Spanish civil war in its early stages was more of a civil war than it got to be later. MOHR. And also, especially, if you under- stand the distinction between North and South Vietnam is not made by Vietnamese in the same way that it's made by the Depart- ment of State in Washington. Even if North Vietnam is committing aggression against South Vietnam, that in itself is a form of civil war. Ths is a partitioned country, but it's one country. Essentially it once was. With this further evidence, it is well to recall the statement of Under Secre- tary George W. Ball; namely, that if it was a civil war, "the United States would have no business taking sides in the con- flict and helping one side to defeat the other by force of arms." Quite so; and yet, that is precisely what the United States has done. The administration persists in denying that this is a civil war, because then it's contention that North Vietnam is the aggressor and that we are there to repel aggression, would be patently invalid. EUPHORIA ON VIETNAM Mr. HARTKE. -Mr. President, the noted columnist, Joseph Kraft, in his article appearing in the Washington Post Wednesday, has taken a close look at the question of whether the curious euphoria about Vietnam, recently making itself felt in official statements and press re- ports, is really justified. He finds that our current actions, ba.5ed on the new rash of optimistic hope, both serve to diminish our chances for a negotiated peace and to heighten the danger of in- creased intervention by Peking and Moscow. It is at least questionable, Mr. Presi- dent, whether our growing military pres- sure will weaken, or whether it will actually increase, Hanoi's resolution to fight on. We have now bombarded the demilitarized zone, with no greater prov- ocation than has existed for a long time past, since infiltrators have been crossing the DMZ since at least 1961, as officially noted by the State Department. But our violation of the Geneva ac- cords in this respect, liy bombing of the demilitarized zone, has set back the pros- pect that they may form the basis for negotiations, as so many have suggested, including Secretary General U Thant. Mr. President, I ask unanimous con- sent that the article by Mr. Kraft may -appear in the CONGRESSIONAL REOORD. There being no objection, the article was ordered to be printed in the RECORD, as follows: [From the Washington Post, Aug. 10, 1966) INSIGHT AND OUTLOOK: DANGERS OF EUPHORIA (By Joseph Kraft) As the President's press conference yester- day indicates, a curious euphoria now shapes the official outlook on Vietnam. And perhaps the confidence is justified. But the supporting arguments are, to put it mildly, inconclusive. As usual, moreover, bouyant hopes have yielded actions that serve to erode further the chances of a negotiated peace. And these same actions heighten the danger-now airily dismissed-of increased intervention by Peking and Moscow, The marks of euphoria are to be found chiefly in things that are being said at the White House and State Department. It is being said, for example, that growing Ameri- can military pressure is causing the other side to scale down its operations. Supposedly the scaling down is the first step toward a slow petering out of enemy activity that is now seen as the way the war will end. It is also being said that the last hope of Hanoi is a setback for the Democrats in the elections this fall, but that actually the poll, by showing the President's strength, will serve to shorten the war, as Lincoln's victory in the 1864 election is supposed to have has- tened the end of the Civil War. None of these claims can be disproved. But Washington has not had a good record in assessing what is happening on the other side. Many recent visitors to Ilan of-most recently General de Gaulle's friend, Jean Sainteney-report growing resolution to fight on. As to the American elections, while North Vietnamese officials have talked about defeat for the President, they have never pitched their main hope on a failure of nerve in this country. Their focus has been the weakness of the Saigon government-a deepening con- dition advertised every day by the personality and actions of Marshal Ky. These obvious flaws in the supporting logic, however, do not represent the real case against official bouyancy. The real case lies in the actions that are being taken out of a surfeit of confidence. For a starter, there is the bombardment of the DMZ or demilitarized zone separating North and South Vietnam, which got under way last week. Ostensibly, the bombing was brought on by the North Vietnamese who suddenly began using the DMZ as a refuge against American attacks. But in fact, ac- cording to a Senate Department White Paper of December, 1961, hostile troops have been passing through the DMZ by the thousands for years. The truth is that the American command now feels that it can usefully seal off the DMZ, and has chosen to do so, picking out a pretext that was available for years. What is blithely ignored is that the DMZ repre- sents. one of the principal elements of the Geneva agreements. To violate the accord openly weakens it by that-much as a basis for negotiation. A similar difficulty applies to the appeal by the Thai government for a meeting of Asian states to consider a settlement; in Viet- nam.. The appeal has the backing; of the United States, and it seems plausible as an expression of Asian leadership in Asian af- fairs. But actually the That appeal is set in the context of a charge that the Geneva accords are unworkable because of sabotage by the Russians. There is no chance that the Thais can bring to a conference any of the bellig- erents on the other side. The upshot of their appeal is merely to dilute still further the one agreement that does affect all bellig- erents-the Geneva accords, Playing fast and loose with Geneva might be done with impunity if it were only a ques- tion of the United States and North Viet- nam. Indeed, since Hanoi shows no present signs of wanting to negotiate, it could even be argued that the United States in the in- terests of teaching a lesson should throw Geneva to the winds, and go all the way to military victory before sitting down to a con- ference. But of course China and Russia are also affected. While they have behaved with singular prudence so far, that is largely be- cause North Vietnam has been doing so well on its own. Even so the continuation of the war has _ brought from Moscow and Peking a steady stream of increasingly serious warnings. Thus the intensification of the enemy ef- fort-either by further Soviet input of mod- ern equipment, or by Chinese support on the ground-remains a genuine peril., the more so as Washington, in its mood of con- fidence, is paying so little heed to the danger. CONCLUSION OF MORNING BUSINESS The PRESIDING OFFICER. Is there further morning business? If not, morn- ing business Is concluded. STIMULATION OF THE FLOW OF MORTGAGE CREDIT FOR FHA AND VA ASSISTED RESIDENTIAL CON- STRUCTION Mr. MANSFIELD. Mr. President, I ask unanimous consent that the unfin- ished business be laid before the Senate. The PRESIDING OFFICER. Without objection, the Chair lays before the Sen- ate the unfinished business, The Senate resumed the consideration of the bill (S. 3688) to stimulate the flow of mortgage credit for FHA and VA as- sisted residential construction. Mr. COOPER. Mr. President, I sug- gest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The legislative clerk proceeded to call the roll. Mr. COOPER. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. DIRKSEN. Mr. President, as Members of this body are aware, Sena- tor BENNETT, the ranking minority mem- ber of the Banking and Currency Com- mittee, is unable to be here for debate on this legislation, because he is in. the hospital recuperating from an ulcer. He has sent me a statement giving support for the measure and expressing his dis- approval of the administration policies that have brought the situation about. He has asked me to make the state- ment for him. STATEMENT BY SENATOR BENNETT READ BY SENATOR DIRKSEN Mr. President, I would like to go on record as supporting an increase in. the borrowing authority of the Federal Na- tional Mortgage Association. Earlier in the year, I cosponsored a bill, S. 3432, providing an additional $110 million to the capital stock of FNMA, which I thought would be a better means to that end. When it was discovered that that measure would not have enough support to be passed by the Congress because of budgetary, considerations, I was willing to support the alternative which would increase FNMA purchasing authority by changing the borrowing ratio from the present 1 to 10 to the proposed 1 to 15, included in this bill. HOMEBUILDING NEEDS RELIEF I believe that we are all aware that the shortage of mortgage money for home fi- nancing is one of the most critical prob- lems in our economy today. While other Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 august 11, 1966 Approved 8 IMTNAOWiti)i1b-RD ROM46ROOO4OO1OOO15-1 18161 and representing a 39 percent increase of my time and attention to the situa- come in Vietnam will mean the end of war. from the $25 million spent in 1960. tion in Vietnam. I am now engaged in We have been told that we are fighting for the "forces of freedom and justice." Diem The consensus of the experts who a three-speech 'review of this situation, and Ky hardly qualify as democratic types. testified before the Joint Committee on covering first, the overall problem and Finally, we are told that this is a struggle the Organization of the Congress, a com- a number of suggestions as to what U.S. to stop the expansion of Chinese commu- mittee of which I have the honor of being policy ought to be; second, elections; and nism. But, while this is true in part, it ob- a member, ran strongly in the direction third, social and economic reform. scures a larger truth, and it also covers over of the need for fuller d}S. closure and On August 8, I delivered the first of the fact act that the Vietnam conflict--going on stricter review of financial reporting. these speeches, "The Dilemma of Viet- the injhe late of 's-erupts much as from outside Faulty reporting frequently occurs not nam," in New York before the Conven- the In the only because of the volume of contribu- tion of the Disabled American Veterans. All of these explanations betray a lack of tions leadink to mistakes, but also be- The theme of this address was that the faith in the judgment of the American peo- cause of deliberate omissions. Irrespon- United States has taken'its eyes off the ple. They spring from the belief that the sible bookkeeping and the short-circuit- real challenge in Vietnam, off the essence American people will support efforts of this ing of funds result in part from fore- of guerrilla war; that these wars begin kind only if they are sugar-coated. I main-that knowledge that campaign reports are un- and end in the hearts and minds of the there just would the contrary. and confusion audited except in cases of special inves- people themselves and they are nurtured our own ess division the real objectives on were set before the ranks if tigation. Only outside inquiry can bring in uncorrected injustices. Like guerrilla withon clarification or elaboration of reports wars of the past, we should not count We are fighting in Vietnam for Asian sta- that contain fragmentary, uneven, in- on this conflict ending either by means bility, for time, and for a practical principle. consistent, and sometimes deceptive in- of a negotiated settlement or a military Stability, on the Asian continent so that formation. victory. Forces, of course, are needed Asia does not become the Balkans of the This issue is too important and neces- in order to pacify the country, in order world, so that Communist China is not sary for cavalier treatment in any year, to provide a shield of confidence behind tempted to test our will in a wider and more but especially in an election year. which free elections and social and eco- dangerous context. Time, for the non-communist countries of Mr. WILLIAMS of Delaware. Mr. nomic reform can take place. But it is Asia to strengthen and solidify their own President, will the Senator yield? what goes on behind this shield that societies and to develop a sense of regional Mr. CASE. I yield. will determine ultimate success or colective responsibility so that U.S. presence Mr. WILLIAMS of Delaware. I ap- failure. will no longer be necessary on the continent preciate the fact that the Senator has I ask unanimous consent to have as such. had that letter printed in the RECORD. printed in the RECORD the text of my riskThe s of practical t principle, that in vie ld the I have received many similar letters speech before the convention of the Dis- be brought about by force and tshou error and from civil service employees who were abled American War Veterans. against the wishes of the majority of the being pressured to contribute to the There being no objection, the ad- people of a country. Democratic Party. dress was ordered to be printed in the Fighting in Vietnam will not necessarily This situation got so bad a couple of RECORD, as follows: prevent a guerrilla war from starting in years ago that I introduced a resolution THE DILEMMA OF VIETNAM Thailand, nor a resurgence of the Laotian which called on the Attorney General As a nation we have passed the point of conflict, nor a repeat of aggression in Ko- either to enforce the law or, if he found no return in Vietnam; it makes no sense to rea. Indeed, it is very likely that the guer- the law inadequate, to make recom- turn back or pull out. But it makes even rilla each significant r in Thailand, lrey going on, tcould hree mendations to Congress by a certain date less sense to charge forward head down, with. r proportions out knowing where we have been, without years. as to what changes he felt were ces- seeing the costs ahead, and without some The problem is not what we shall be able sary in order to prohibit, this practi tice. certainty about the end and when it will all to prevent by our present efforts in Vietnam; The resolution was passed and sent to be over. There have been far too many un- it is how much more dangerous and difficult the Attorney General, and we have not answered questions about Vietnam, and future conditions would be if we did not act action inaction , the heard from him since. there have been far too many answers that now. . In other w ords risks risks than In addition, the President said in his have rung hollow. message that he wanted something done Yet, we axe plunging forward, often armed It would be a decision of high irrespon- to correct this practice. I take it that he with half truths, hoping for some decisive sibility for the United States simply to with- had his tongue in his cheek when he said military victory, for the miracle of a peace draw from Vietnam without due cause, for conference, waiting for it all to end as sud- it would throw the continent of Asia into a that, because I introduced an amend- denly as it appeared. These are illusions, situation of grave uncertainty and tension. ment to a bill this year which would have illusions fostered by a false sense of optimism It would make all future conflicts that much prohibited these solicitations. It would and nurtured by our own frustration. The more difficult to control. have closed this loophole, but not one facts are unpleasant, but unless we ace There should be no i t iningot ce the word of support did I receive from the them, we shall be carried step by step by point-it is White House or from anyone connected events and by decisions into a situation that non-communist countries of Asia that keeps with it. The amendment was defeated few willed and that no one can control. general instability from erupting into wide- What are we really trying to achieve in spread violence. Of course, there is violence on close to party lines. Vietnam? Can we achieve it by military and risk of escalation in Vietnam right now, Mr. CASE. I called attention to that means? Will differences be settled at the but, in my judgment, to do nothing in Viet- in my remarks, and I join wholeheart- conference table? How long is the road nam would be an open invitation to aggres- edly in supporting the Senator's efforts ahead,, and are we willing to travel itl sion elsewhere. in this respect. If we are to persevere, we must understand There are none who realize this better than Mr. WILLIAMS of Delaware. I thank our goals and the costs. If we are to make the Asians themselves. In July of this year, the Senator. further sacrifices, we must have conviction Prime Minister Sato of Japan said: "An in- The of truth and not of illusion. creasing recognition should be made of the The only Conclusion we can reach is I believe we should persevere, but only if fact that the United States is making a major that there is an organized shakedown of the Saigon Government takes the proper contribution to the security of the Far East, civil service employees going on today to steps to legitimize its government by free including my country." On June 18, 1966, finance this Great Society. The Presi- elections under a constitution, and under- Prime Minister Lee Kuan Yew of Singapore, dent knows it, he must like it, he con- takes the necessary reforms to build a base also in the past has shown no particular dones it, and I- assume he wants it to of support responsive to the aspirations of affinity for the U.S., stated: "A premature continue. That statement stands until the people. We should persevere only if we withdrawal of American forces from Viet- he helps us to pass legislation. Let him use our military power in a cautious and nam could threaten the security of South- limited manner. It is fruitless to fight for east Asia." In March of this year, President put a little arm twisting on the members those who have neither the will nor the con- Marcos of the Philippines said: "The fact of his party to help pass it, rather than viction to fight for themselves, and it is that the United States shoulders the major telling them to use this subject in politi- folly to act as if the danger of a wider, per- burden of the Vietnam war does not change cal speeches but not to vote for it. haps even world-wide, war does not exist. the fact that this is an Asian challenge." Mr. CASE. I thank the Senator. WHAT ARE WE FIGHTING FOR? Even more impressive evidence of these The American people have been subjected feelings is the Conference of Asian and REVIEW OF VIETNAM to a whole kit of unconvincing reasons for Pacific Countries which met in Korea in our presence in Vietnam. We have been told June. The conference was composed of Mr. JAVITS. Mr. President, for the that we are fighting for"peace in the world." nine nations from this area, with Laos as past 2 years, I have devoted a good deal But surely we cannot believe that the out- an observer. The find declaration of this Approved For Release 2005/06/29 : CIA-RDP67BOO446ROO0400100015-1 18162 Approved For ReIM&&40f6 , iI 8ft OOt lJ%400100015-1August .11, `11966 conference "upheld the inherent right of the limited armed strength, but we cannot base ing with a rational enemy, that he has a' Vietnamese people to self-defense and to our policy on the success of either. sense of proportion, that he was values more choose their own way of life and their own To dangle the prospects of a seemingly un- important than victory In the South. It form of government free from external ag- likely peace conference before our eyes is to seems to me that Hanoi, at least, has lost gression and subversion," and affirmed its Invite public disillusionment and lack of touch with reality. Hanoi appears willing solidarity with South Vietnam In this confidence; and to pour more and more men to sacrifice its economy and Its social fabric struggle. and arms into Vietnam and to widen the for its ends. Reaction to our bombing near bolizes the time factor I just spoke of. It represents the first concrete Step by the na- tions of this area themselves In recognizing their common economic, political, and de- fense interests. It will take time for the nations concerned to develop common de- termination and combined muscle, and we must give them that time. Lack of U.S. staying-power in Vietnam would demoralize this effort and undermine confidence in our commitments. Just as NATO was necessary to provide a shield behind which a shattered Western Europe could reconstruct itself, so U.S. power is needed in Asia to give reality to the independence of this region. Lastly in reviewing our objectives, we must not forget about the Vietnamese people themselves. There are some who assert that these people really want the U.S. out and do not really care if a communist takeover en- sues. I do not know where they get their evidence or their certainty. No mortal can search the Vietnamese mind for the truth, all we can do Is look at some facts and see what they indicate. There are dozens of different groups and factions in South Vietnam each with Its own point of view and desire for power. Among them, obviously, is a minority-per- haps even a sizeable minority-which sup- ports and sympathizes with the Vietcong. But despite this powerful and organized mi- nority and despite the terror it employs, the rest of South Vietnam has been able to wage a grueling and unwanted war for the good part of ten years. Yes, there have been de- fections from the ARVN forces and protests against the Saigon Government, but despite these, they continue to maintain over one- half million men-in-arms. Yes, the Bud- dhists dislike the U.S. presence In their country, but one never hears them ask us to leave. If the significant majority of South Vietnamese did not want to keep the communists out of power, the whole effort would have collapsed a long time ago--no matter what the U.S. did or did not do. We can supply men and arms, but we cannot create the will to fight on unless It already exists. Our objectives in Vietnam are hard to understand. But in my judgment, the American people do not need demons, devils, and illusions, to understand their interests. The real issue is not whether we should be in Vietnam, but how we should conduct our diplomacy and our military action in order to reach the objectives of stability and time and live up to the principle of self-determi- nation free from aggression and subversion. PURSUING OUR OBJECTIVES: FORCE AND DIPLOMACY Every war brings out a parade of prophets with bottled panaceas and pat solutions, of alarmists betokening us to concede more, and of town-criers advising us to kill more. bombing targets without firmly set limits to Hanoi and Haiphong was to build more air- our operations is to escalate unknowingly raid shelters and move people out of these and unwillingly into a major Asian land war. cities to the country-side. Why am I so dubious about a peace con- Hanoi and the NLF have their own theory ference? Very simply, the Hanoi :regime and about us. They believe that it is we who the NLI+ want much more than we can pos- have the earlier breaking point, that they sibly give-they want guarantees prior to only have to continue a little longer before talks that U.S. troops will be evacuated from. we become tired, before domestic opposition Vietnam and that the NLF should have the swells, and we withdraw. They are as wrong "recisive voice" in a Saigon Government be- in their theory as we are in ours. fore elections. On our part, we are concerned At worst, these mutual breaking-point that, for the moment, any inclusion of com- theories can lead to World War III; at best, munists in the Saigon Government would they will lead to a resumption of guerrilla mean the immobilization of that government war, leaving us back where we started. Let and Its speedly fall into Hanoi's hands. We me explain this proposition. have good reason to be troubled about the We are bombing supply lines in North extent of the popular base of support of the Vietnam. We have already bombed oil present Saigon Government, and the instabil- depots right outside of Hanoi and Haiphong. ity and pitfalls of a coalition government In- In a year's time, we will have upwards of eluding the communists. half a million men in South Vietnam. What Yet, even with this big gap between the steps remain? Mining the Haiphong bar- objectives of Hanoi and the NLF and our bor, bombing the cities themselves, attack- own, it is conceivable that negotiations could. ing airfields in the North and in China, find some common ground and provide some invading North Vietnam, and starting the guarantees-if only they would agree to talk showdown with Peking. Crossing any one of about the differences. But as far as we can these lines could produce a very new and see now, this seems highly unlikely. more menacing' configuration of battle, in- We have only to review the recent past cluding greater if not direct Soviet assist- for confirmation. At first, they said they ante and the Introduction of Chinese man- would talk if we would return to the, provi- power. I do not think that either Moscow sions of the 1954 Geneva Conferenge. We or Peking want to become directly involved said we would, but there was no conference. in the fighting, but we should not; force Then, the stumbling block became the ac- their hands. ceptance by us of the NLF sitting as an in- Make no mistake-Vietnam is not Cuba, dependent party at the peace table. We gave and if we challenge Soviet and Chinese in- this assurance publicly and privately, but terests directly, they will react. To speak nothing happened. Next carne the bombings, as Premier Ky does of invading North Viet- A conference could be had if only we would nam and having a showdown with Peking cease bombing targets in North Vietnam. We Is the height of folly. Premier Ky says there did for thirty days, but that did not turn can be no peace in Asia unless the U.S. out to be enough. Now we hear it rumored defeats Communist China. This is tanta- that'Hanoi and the NLF are waiting for our mount to saying there can be no peace with- promise to include them in a provisional out World War III. Our own government government, to let them have a "share of the should publicly disavow Premier Ky on responsibility." We responded that we were these matters. ready to talk about anything. Again, there What happens, on the other hand, If we was no conference. do not pursue the path of "quiet" excala- There has been a continuing Stream of tion, and if, Instead, we concentrate our proposals for cease-fires, U.N. supervision military power in South Vietnam Itself? and discussion, heads of state meetings, While this is the course of action I prefer, pressure on the Soviet Union to reconvene it also has its limitations. the Geneva Conference, military freeze and With half a million U.S. troops, a similar the recent Thai proposal for an Asian Con- number of South Vietnamese soldiers, with ference of "all the principals"--some of allied support, with helicopters, modern them I made myself. But all of them were weaponry, and air power, the communist of no avail, troops operating at regimental and divisional If Hanoi and the NLF have any doubts levels in South Vietnam will get hurt and about our sincerety for negotiations, if they hurt very badly. Even If Hanoi infiltrates believe we are bluffing, and if they want as many as six thousand troops per month, to prove what they call our "hypocrisy", they the attrition rate on these forces will be in- have only to try us at the peace table. I tolerably high. The Communists will soon hope they do, but I would not count on it. discover that operating at Stage II of Mao I have supported our military efforts in Tse-tung's Theory of Revolution-at the Vietnam and I have voted the requisite ap- conventional force level-is too costly. propriatfons, but I have made it plain each But will their answer to this be negotia- time that these efforts be limited and con- tions? Most probably not. Most probably nected to rational policy objectives. I am they will revert to Stage I, or strictly guer- concerned that out of frustration. because rilla type warfare. This, in turn, will leave the commuists refuse to negotiate, we may us back where we were three years ago. True, be using force as an excuse for policy. we shall have more troops on hand, but the The theory behind the Administration's guerrillas will still be there . more killings. Never since World War II have present military policy seems to be the idea If I were convinced that we could use more guerrillas been brought to the conference of the breaking-point. it assumes that force without causing a general Asian land table or defeated finally on the battlefield. Hanoi and the NLF must have some point war, and that this would put an end to guer- What I think the American people must of damage acceptance at which it will no rilla strength in the South, or that this would know is that there seems little likelihood of longer be rational for them to continue to bring about negotiations, such a policy would settling the conflict in Vietnam through fight. We have only to proceed along the have my support. But I do not believe that negotiations or by means of increasing doses spectrum of force-more troops, more and force alone, even measured and concentrated of force. This does not free us of the reapon- newer weapons, more bombings, new tar- force in South Vietnam itself, is the main sibility of refining and rethinking our diplo- gets of devastating impact-to find their route to peace. macy, nor does it relieve us of the necessity to breaking-point and make them negotiate. THE REAL CHALLENGE: ELECTIONS AND REFORM use our armed forces. We should continue The assumption underlying this theory is With our hopes tied to a peace conference to seek peace through negotiations and to faulty, and the consequences of the theory and our remedies focused on force, we have pacify the country through measured and are dangerous. It assumes that we are deal- taken our eyes off the real challenge, off the Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 A g s't 11, 1966 ApprovE$ ft~ ()5 f6 ftlg A-F 7. Q0446R000400100015-1 essence of guerrilla war. These wars begin and end in the hearts and minds of the peo- ple themselves, and they are nurtured in un- corrected injustices. As long as there is a sizeable number of people who feel they can receive a better deal from the Vietcong, or that the government is unresponsive to their needs, there will be guerrillas. Force, of course, is required to meet the guerrilla on the battle field, to prevent the collapse of authority, and to pacify the c(>un- try. Force can provide a shield of confidence behind which free elections and social and economic reform can take place, but it is what goes on behind the shield that deter- mines success or failure. This has been the case in every guerrilla war since 1945. The British and the Malays fought the predominantly Chinese guerrillas in Malaya for ten years, with a numerical superiority of twelve to one. Malaya being a peninsula, there was little outside help for the guerrillas, and the guerrillas being pri- marily Chinese were readily identifiable. Still, it took ten years. The Philippine Gov- ernment battled the Huks, who had virtually no external assistance, for eight years. In both of these instances, the tide was not turned against the guerrillas until the indi- vidual peasant began to feel the fruits of reform in, his own life and until he could give his loyalty to the government. I am not saying that our government is unaware of this time factor; it is. I am not saying that our government has ignored the social and economic reform side of the war; quite the opposite is true. I am not saying that our government fails to comprehend how vital free elections are to obtaining the loyalty of the Vietnamese people; it knows this only too well. My point is that despite our Government's understanding of these problems, it has not taken the necessary ac- tion to resolve them. Consequently, a num- ber of hurdles to success still exist: 1) the American public's impatience with the in- evitably slow progress, domestic pressures for quick results; 2) our own hesitancy in push- ing the Saigon Government along the neces- sary paths because we fear undermining its authority; and 3) the delaying tactics and equivocating of the Saigon Government and the wide-spread corruption throughout South Vietnamese society. In effect, the Administration has not been straight-forward enough to dispel the illu- sions about quick results and has not been forceful enough with the Saigon .regime to press for implementation of the aspirations of the Vietnamese people. Our economic aid program to South Viet- nam has been massive, considering it is a country with a population of only about six- teen million. Since 1954, and including what is projected for the next fiscal year, the total will be approximately $3.8 billion. This year alone, we are spending about $730 million for a variety of programs like rural reconstruction and pacification, financing of commercial imports and food assistance. This is already a massive program, in some respects too massive since it has produced rampant inflation. We do not need to pro- vide more dollars in aid; we do need to en- sure that what we give is properly used and that it actually gets to the people. As things now stand, the Saigon Govern- ment is dragging its heels on land reform, refuges, and corruption. The United States has to talk tougher to the Saigon leaders on these matters. We did get tough on the monetary side, and it worked-they reduced by half the value of the piaster and this did put the brakes on inflation. We have been too squeamish on the matter of elections as well. After procrastinating, the military junta scheduled elections for a constituent assembly for September 11. This assembly is given a period of six months to draft a constitution, which in turn has to be approved by some virtually defunct body called the National Assembly, and then pro- mulgated by the military junta itself. By November of 1967, if the constitution is aap- proved and promulgated, the requisite na- tional institutions are to be established. There is no provision, at present, for a gen- eral election of a civilian government. Equally distressing, is the section of the electoral law for the constituent assembly itself which prohibits "communists and neu- tralists" from participating. Some explana- tions have been offered about this, but they are unsatisfactory. It is my concern that the military junta will use those abstract classifications to prevent anyone from run- ning for office or voting of whom they disapprove. Genuinely free and open elections are the only real basis for generating peoples' loyalty for their government. With so much at stake, our own government should be direct and forceful in clearing up these ambiguities and in promoting free elections for a civilian government as soon as possible. I have taken you along the road of my own thoughts on Vietnam, and these thoughts are not optimistic. I hope I am wrong. I hope there will soon be a peace conference; I wish our military power could produce negotiations without unacceptable escalation. But I would not count on either, and I would not allow myself to be taken in by false optimism, or phrases like "renewed determination." If I am right, if we face a long and uncertain future, the American people must know it, and we must accommo- date our policy on Vietnam and at home to meet it! SCHOOL MILK PROGRAM SHOULD KEEP PACE WITH INCREASED FARM COSTS Mr. PROXMIRE. Mr. President, this year farm costs are at an alltime high. In the second quarter of this year farm production expenses were estimated at an annual rate of $32.5 billion. This Is an increase of $1.8 billion over 1965 and an increase of almost $10 billion since 1957. Yet in spite of this whopping 30-percent increase in farm costs, food prices have risen only 15 percent over this period. In addition, Secretary of Agriculture Freeman indicated only last week that 80 percent of the increase in food prices since 1947 was received, not by the farmer, but by the marketing agencies, processors, and other middle- men. Mr. President, this is one way of show- ing why so many dairy farmers are sell- ing out. It also should serve as a warning that our economy is going to have to give the dairy farmer a decent income if we are to continue to expect to receive plen- tiful supplies of milk at modest prices. With milk prices going up, with dairy farmers getting a relatively small per- centage of the increase, this is an ex- tremely poor time for us in Congress to attempt to exercise false economy by putting a lid on the school milk program. By allowing the Federal Government to pay a part of the cost of the milk con- sumed by our schoolchildren, the school milk program has played an important role in encouraging milk consumption- thus improving child nutrition and dairy income at the same time. If the program is to continue to op- erate effectively, we in Congress must do our best to make sure that adequate funds are made available to offset the 18163 recent rise in milk prices. This is why I intend to take a close look at the pro- gram as it proceeds in fiscal 1967 to see if Congress has provided sufficient funds. Additional money may be required in a supplemental bill. It is also the reason why I hope Congress will act rapidly to agree on the amount to be provided for the school milk program in the 1967 agriculture appropriation bill. ONE VOICE FOR AMERICA IN VIETNAM Mr. KUCHEL. Mr. President, lately, there has been criticism of intensified U.S. air activity over North Vietnam on the grounds that It may discourage Soviet efforts to bring about peace through negotiation. For my own part, I question whether the Soviet Union has ever had any intention of bringing this conflict to the bargaining table. The Soviet Union has endorsed so- called "wars of national liberation" and is supplying war material to North Viet- nam. The New York Daily News re- cently reported the arrival of new ship- ments of Soviet-built aircraft to North Vietnam to counter American attacks. And, on July 6, Leonid Brezhnev an- nounced that Soviet aid to the Commu- nist north would grow. In the same speech, Mr. Brezhnev charged that American acts have pro- duced "a storm of indignation among all honest people of the world. Even the close allies of the United States." he argued, "are disassociating themselves from the crime committed by the Ameri- can imperialists., Never before has the prestige of the United States fallen to such depths as now." If the Soviet Union finds it so shame- ful for the United States to fight in Vietnam, why has she been so anxous to provide missiles and aircraft and mili- tary instruction to the north, and to urge aggression against the south, under the counterfeit cry of "war of libera- tion"? If the world is outraged, let the U.S.S.R. show leadership, 'let her show that she will pave the way for the recon- vening of a conference at Geneva. It was at Geneva that the agreement giving South Vietnam autonomy was reached, and the Soviet Union approved the agreement. As cochairman of the ear- lier conference, she has the authority, if not the duty, to act. If the Soviet Union regards the Viet- nam situation as a grave danger to peace, she should be prepared to persuade her North Vietnamese friends of the wisdom of such a course, even if it means in- curring the wrath of the paranoids in Peking. But this is a kind of leadership rarely found among totalitarians. While Brezhnev talks, Red infiltration, terror, and savagery continue. It is clear that no meaningful effort at negotiation will succeed until the Com- munist side finally recognizes that it can- not succeed through force of arms and violence; but that, on the contrary, the United States, South Vietnam, and their allies are capable of putting an end to aggression and insurrection in the south. Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1 18164 Approved For Release ONGRESSIONAL RECORD 44 SENATE 100015-1 August 11 19, 66 people who would benefit from such an improvement, in his view. The first, "significant in number," con- sists of those who have come to be termed the medically indigent, for whorn services are fragmented, delayed, demeaning, un- available-or all four at different times and places. The second consists of those who are in fact "buying medical care," but who are not getting the best care we know how to give because the physicians who are deliver- ing it are overburdened or lack. adequate equipment or training or because the pa- tients are in no position to find their way through the maze of contemporary sophisti- cation In medicine. The Department of HEW is in no way seek- ing to order these things better by flat. It does, however, intend to look into the whole question of delivery of medical care. Sec- retary John W. Gardner, for example, be- lieves that more has to be done In many ways and particularly in measuring performance from the standpoint of what the patient needs, Dr. Silver said. Internally, also, the department is moving toward rationalizing its own approach to the selection and coordination of programs-de- fining a mission, examining the resources available, setting priorities, and allocating the resources to meet them. OUTSIDE CONSIDERATIONS CITED Naturally enough, a good many considera- tions from outside will enter into these rationalized calculations. Dr. Silver is not talking about mysterious pressures when he mentions these other considerations. It is rather, a matter of simple fact that if, to take a hypothetic example, "people are thinking more about children than about old people at a given time, you will get better child programs than aged programs." That, in his opinion, is "not a threat, but a democratic necessity." And, In any case, he said, "people here [in the department] are dedicated to the notion of the pluralistic society. If that sounds like a cliche I can only point out that if you love your mother and you say, 'I love my mother,' that's a cliche too, and it is also the truth." While the manpower problem extends throughout the health field, the need for physicians is a striking example of time lag versus immediate necessity. Dr. Silver is not disposed to lay great stress on arguments about the exact number of physicians or the physician shortfall, because he believes that whatever the over-all num- bers may be, It is beyond argument that there are not a sufficient number of the right kind in the right places at any given moment. If there are some 50,000 general practition- ers and about 20,000 internists available for private practice, that's "nothing like enough to take care of the need we have for family health practice today." NUMBER MAY SUFFICE On the other hand, "if medical practice could be rationalized so that physicians used their time more effectively, if medical stu- dents could be channeled to the career goals where the need is greatest, if hospitals were regionalized-then perhaps we could get on quite well with the numbers we have now and are likely to have in the foreseeable future." As to the numbers we are likely to have, he pointed out that since the big push to increase student intake began just two years ago, about 1,000 new places have been created in medical schools, new and old. The target of present legislation is another 1,000 places over the next few years. Though a great deal has been heard about various kinds of curriculum reform, the adoption of any vast and sweeping change that would make a serious dent in the length of training is not to be anticipated in the near future, in his opinion. As usual, the Communist camp is counting on its double standard of mo- rality in world affairs, which dictates that violence is permitted in the name of Lenin, Marx, and Mao, but not in defense of human freedom. Because Americans believe in human values, many of our cit- izens accept the argument that it is wrong forcefully to resist violence in whatever cause. Sometimes, alas, it appears that Amer- ica speaks with two voices. The Com- munists, judging others by a mirror of themselves, delude themselves into thinking we are playing a reverse of their own double game. For the American people are overwhelmingly united to see this ugly affair through. The Commu- nists continue to misgage the firmness of our national will. They intensify their own military activity, believing that America is deeply divided and will give up, and that they are on the edge of victory. I quote Ho Chi Minh on July 19: Of late the U.S. aggressors hysterically took a very serious step further in the escalation of the war: they launched air attacks on the suburbs of Hanoi and Haiphong. That was an act of desperation comparable to the agony convulsions of a grievously wounded beast. What kind of self-hypnosis is this? This war has become far too deadly to tolerate further shadow . shows. The oriental aggressors should look behind the screen to see that the tiger is real. It is highly important that America's voice come through, loud and clear and officially. There is no second American voice. However hard some may try to mount one, it is a false voice. If the Soviet Union wants to promote a just peace, it should seek it through diplomatic negotiations rather than propaganda. Those Americans who vo- cally demand some kind of abrupt end- ing to this war, and most of us wish we could be spared all of it, must recognize that amateur attempts at political action are only convincing to the other side, and that in fact they are a cause of inten- sified war efforts because they deceive the other side. The point America must emphasize is that her people are united in a deter- mination to see the conflict grimly through. It is time the message got through, too. TRIBUTE TO THE LATE CHARLES DRESSEN Mr. DOUGLAS. Mr. President, I would like to comment about Charley Dressen, Detroit Tigers manager, who died yesterday. Charley Dressen was an outstanding son of Decatur, Ill., who got his start in baseball at Moline and once played for the Decatur Staleys pro football team- which later became the Bears. He loved and mastered baseball to an ultimate degree. Modesty was not one of his virtues but everyone recognized Dressen's compet- ence, his almost fanatical love, for his way of life-baseball, and his concern for DELIVERY OF HEALTH CARE Mr. WILLIAMS of New Jersey. Mr. President, medicare, young as it is, has already brought us many blessings. Not the least of them is the increase in at- tention paid to our overall national health needs. Many experts and lay- men are taking a new hard look at prob- lems that affect, not only older Ameri- cans, but all age groups. Dr. George A. Silver, Deputy Assist- ant Secretary of the Department of Health, Education, and Welfare, is among those who believe that action should be taken now to counter foresee- able pressures on our health protection resources. In an enlightening interview given to the Medical Tribune for its July 25 issue, Dr. Silver said that he is much con- cerned, not only with medical manpower shortages, but also with inadequacies in the delivery of medical services. In the face of such shortages, he asks, should not we find ways to help medical per- sonnel make the best possible use of their precious time? Mr. President, Dr. Silver's views are as timely as they are significant. I ask unanimous consent to have the article printed in the RECORD. There being no objection, the article was ordered to be printed in the RECORD, as follows: RATIONALIZING OF DELIVERY OF CAPE CALLED BEST IMMEDIATE PROSPECT (The following news interview was ob- tained in the light of rapidly increasing pres- sures on medical manpower as part of Med- ical Tribune's coverage of these critical prob- lems. Physicians are invited to express their own views in Letters to Tribune.) WASHINGTON, D.C.-The nation's immedi- ate health manpower problems are more likely to respond to the "rationalization of our systems for the delivery of medical and health care" than to programs designed specifically to increase that manpower. That is the opinion of Dr. George A. Silver, Deputy Assistant Secretary of Health, Edu- cation, and Welfare, one of whose more press- ing responsibilities in that job is the health manpower problem. Dr. Silver does not dismiss as useless the many efforts aimed at producing greater numbers of medical and health personnel, whether old, new, or prospective. Moreover, he applauded, in an interview, President Johnson's recent appointment of a National Advisory Commission on Health Manpower charged with recommending ways to help meet the "critical shortage" in these fields (Medical Tribune, May 18). But, he said, significantly increased num- bers of doctors, nurses, technicians, and aides will not be available for some time, and therefore the country's present body of health workers should be employed more efficiently to meet the needs of the present and near future. TASK COMPLEX AND DIFFICULT Dr. Silver is under no illusion about the complexity and difficulty of the task. "The profession opposes many of these sugges- tions," he told Medical Tribune, "and a variety of other special interests in the health field interpose themselves." But he feels that there is a clear case for "improving the systems of delivery of medi- cal care." There are at least two classes of Approved For Release 2005/06/29 : CIA-RDP67B00446R000400100015-1