REDUCTION OF DUTY-FREE ALLOWANCE ON FOREIGN GOODS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500110012-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: September 29, 2003
• Sequence Number: 12
• Publication Date: September 1, 1965
• Content Type: OPEN

Approved 1 -RD 46R000500110012-2
September 1, 1965 CU=ONAL~ - g 2 789
surplus Arctic water to the` International His reports confirm the position I took The law also cuts the amount of nonliquor
Joint oommtsslon iv'th the request that an in the Senate some weeks ago and which goods a U.S. citizen can take home duty free
eeonbmic an4''engln"oaring feasibility study I shall Continue to take until this body after 48 hours to $100 retail. The old figure,
be made and tha#'_the respective govern- acts to redress the economic Injury which still in effect until October 1, was $100 whole-
sale, be informed" of the results of such sale, which would allow about $160 worth
study b December 31, 1966; and this "shotgun measure" will cause. retail through Customs.
(2) tfie President of the United States I ask unanimous consent to have This cutback is expected to hurt the per-
$hoult invite the government of Canada to printed in the RECORD at this point ar- fume, camera, china, watch, and cashmere
oin in s__uch referral ` tidies by William Tucker published in sweater shops, all thronged by Americans,
the August 26, 27, and 29 editions of the and the merchants are making a last big sales
Miami lq ws. pitch.
"U.S. nEDU&ZON O:' noTY- ALLOW- There being no objection, the articles Customs will discount your purchases
ANOE, ON F6REIGN' GOODS by 40 percent," says a sign in some of the
were ordered to be printed in the RECORD, shops, giving away the markup then and
1V1r, NIA'?`IHERS. Mr. `President, on as follows: there. All purchases must be carried home-
June 29 the Senate took `what I have TOURIST IMPORT BAN BACKFIRES ON UNITED they can't be mailed-under the new law.
called a "shotgun approach" to our bal- STATES This will hit dealers in bulky items like sets
knCe-of-payments problem by voting to (In a move calculated to help restore the of china.
,reduce `the duty-free "allowance on for- U.S. balance of payments with foreign coun- But the liquor shops are the ones really
eign goods which may be brought home tries, Congress enacted a law limiting the hurting. Each has a red-lettered sign noting
amount of goods a citizen can bring home that 1 gallon may be taken home duty free
by American tourists. duty free. The merchants of Bay Street, until October 1, so "buy now." One shop
As I said in the Senate debate, that Nassau, immediately screamed "foul" and had a calendar pad with a page ripped off
portion, of the bill which reduced 1 gallon fired off indignant protests to the White daily noting "only 36 more days" in which
to 1 quart the amount of alcoholic beV- House. Miami News Reporter William Tuck- to buy a gallon, and the next day it would
erages allowed to a returning tourist er visited the Bahamas and discovered the read only 35 days. After that, said the sign,
would ;rove unduly damaging to some new law will have far-reaching effects here "you, can Only take out 1 quart (if you are
of ouI, Stanchest allies in the Caribbean in Florida and in all of the islands of the 21.)"
.,and areas Immediately adjacent to the Caribbean. They're described in this first The merchants don't want to go on record
of a two-part series.) as cussing the U.S. President and have agreed
United,States. to present a solid front of protest behind
particular, the BafiamaS-which (By William Tucker) David Lightbourn, a perfumer and former.
rely entirely on a tourist economy-re- NASSAU.-The U.S. customs inspector at president of the Nassau Chamber of Com-
ported that the reduced quota on liquor Nassau Airport surveyed the mountain Of merce. Lightbourn said the merchants are
colorful hats, beach bags and purses and stunned by the U.S. action. He p~redlcted a
purchases would reduce their gross na- joked, "starting your own straw market, eh?" sharp drop in the colony's revenue, which
tional, roduct by' 12 percent. All this He waived the family group through the comes mainly from the booze and other
would fake place in a country with which gate because the bulky collection of straw goodies sold to American tourists.
the' United States has long had a favor- goods easily fell within the $10 a person Three years ago the calypso bands struck
able trade position. limit of purchases they could take home from up ballads in tribute to President Kennedy
Mr. 'residen 2 I could not understand the Bahamas after only a day's visit. when he visited here. They sang another
then and f cer airily cannot understand The next traveler also carried a straw bag- tune about his fellow conferee at the big-
OUT eflarts to achieve a bet- but with a difference. This citizen had been two meeting, Prime Minister Harold Mac
no+A why, in
away from the United States for at least 48 millan.
ter balance-of-,payments positions, we hours and his bag contained five bottles of They called that one "Mac the Knife," and
would, take a linCof action which actu- liquor-equivalent to a gallon. the colony went on to win semiautonomy
ally, worsens our balance-of-payments Bahamas officials contend that for every from London, happy to fall within the U.S.
position, because it cuts off trade with visitor who buys a straw hat or beach bag economic sphere. Now the native balladiers
several countries with which we have a in Nassau on a day's outing, two others will are stringing up Mr. Johnson in song the
favorable balance of trade. In other stay long enough to lug away a gallon of way they did the Prime Minister.
words, it increases the deficit. booze. The native Progressive Liberal Party may
This $5 million annual traffic will come to a argue that the calypso singers in the hotels
If we make niohey`in our trade rela- crashing end Oct. 1 under a new U.S. law are under control of the "Bay Street boys,"
bons with the Bahama Islands, with limiting the amount of liquor a citizen can the big merchants in the majority party,
Bermuda, and with other countries, cer- bring home duty free from abroad to a quart, but even the Progressive Liberal Party ad-
toiinly to prohibit them from getting dol- no matter how long he stays. And Nassau, mits that the entire Bahamas economy is
lars which they, in turn, spend with us- while visitors throng its picturesque shops wrapped up in tourism.
not only do they spend, but for every $1 and native straw markets at a rates that will What are the liquor merchants doing In
our tourists leave there, they, in turn, topple all its tourist records this year, is un- the face of the oncoming cutback? They
dergoing quiet agony on Bay Street. are reducing imports and rapidly clearing
spend $2 with us-to stop that kind of The liquor shops are as numerous as gift inventories because swarms of tourists are
business does not make sense arithmeti- shops and banks, and 90 percent of their having a last fling with the duty-free gallon.
Lally or logically, because it hurts our business, they estimate, is in "five-pack" gal- They are adjusting prices-going up on
balance-of-payments position instead of Ions for stateside consumption. The liquor some types and brands in a bid to get a solid
helping it. merchants hop from one shop to another profit per bottle, whether or not it is for
I am hopeful that the Secretary of the wringing their hands and muttering impre- taking back to Florida. There is also dis-
Treasury,' the distinguished Henry H. cations against the United States and Lyndon cussion of cutting prices on some liquors
B. Johnson. such as rum, which are imported cheaply
Fowler, from Virginia, will take another They feel betrayed. They claim and gov- from other islands.
look at this approach to`improving our ernment figures back them us that the Ba- gallon package, the merchants will
balance-of-payments position, and will hamas spent in the last 6 years $135 million For a
it will still cheaper r buy it In
see fit to make a recommendation to more in the United States than was spent argue,
the islands than at home, with the duty
Congress at the * beginning of the next there by American tourists. (including the Internal Revenue levy) tacked
session which will permit the removal The Bahamas import liquor from Europe on. A five-pack that costs $15 will run to
of such limitations upon those countries bad other islands, and such favorite foreign $25 with the duty, but a tourist might pay
ways and they German are as decam-- $30 to $40 for the same brands at home.
But t in Swiss other watches
which now yield us "a favorable balance eras. bargains
of trade, because to do so will have the pendent upon the United States for their Arrangements also are being made for the
net effect of improving our net balance- basic needs as Miami Beach. duty to be paid in the liquor store and have
of-payments position. Lying so close to Florida, it would be the whisky packets stamped for clearance
foolish economics to go to any other market so the buyer won't have the customs worry.
Mr, President, William Tucker of the for building materials, furnishings, and even A big headache is the limitation of one
Miami News, areporteer who does a food stores. But their proximity and state- U.S. quart. The Bay Street dealers import
thorough job, went to the Bahamas~reC- side buying practices won no exception for their stock in fifths for the five-packs and in
t C this ru~11nwill have on one of our dent Johnson's suggestion to help restore The U.S. quart is 32 ounces. And while they
frienly neighbors. the U.S balance of payments. are sweating out the bottle size, the mer-
Approved For Release 2003/10/15 CIA-RDP67B00446R000500110012-2
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September 1, MAP ?Gr S - 21791
Many normally strong supporters of archy. Leaderless mobs roamed every- name and declared itself as the Domini-
the present administration have de- where sacking, burning, and killing can Communist Party-PCD.
plored the Pressidert's decisions in this -without reason. After repeated attempts The third party, called the 14th of
instnce, and, relying on reports from a by our distinguished Ambassador W. June Popular Movement, is an especially
certain segment of the Press, they have Tapley Bennett to bring key Dominican illuminating example of Communist tac-
accttsed the united States of misusing leaders of both sides together to restore tics. It takes its name from the landing
it3, might 'to thwart a legitimate demo- order failed, the Ambassador put in the Dominican Republic on June 14,
cratlc revolution. through an urgent request for American 1959, of a group of young Dominicans
It is unfortunate that the tone of this troops. who were opposed to the then dictator,
debate has tended to obscure the actual President Johnson, acting upon this Trujillo. It is because of its anti-Tru-
substantive issues at stake. Liberal request, and appeals from individual jillo activities that this movement was
spokesmen who, in the past, have coun- American citizens and foreign nationals long regarded, and still is by some people,
seled-and wisely, I believe-against stranded in the midst of a frighteningly as a democratic, patriotic Dominican
viewing domestic events in simple, ab- violent civil war, responded in precisely organization. The group that landed in
solute terms of black and white have the correct manner. the Dominican Republic in 1959, how-
themselves been guilty of this same folly On April 28, he announced: ever, came from Cuba and was thor-
when speaking of Lain America. Able I have, ordered the Secretary of Defense oughly trained by Cuban Communists.
to discern existing evils in the nations to put the necessary American troops ashore Castro's government supported and
in order to give protection to hundreds of equipped this band of guerrillas, and the
of the hemisphere, nfor any y fallen prey Americans who are still in the Dominican movement has always openly identified
to a fatal attrattian for movement, Republic and to escort them safely back to itself as pro-Castro.
regardless of its roots, which promises this country. The same assistance will be In late 1963, the 14th of June move-
an end to old injustices and the estab- available to the nationals of other countries,
lishtnent of a better society. some of whom have already asked for our ment resumed its guerrilla tactics, this
With careless ease, these individuals help. time against the triumvirate which suc-
divide Latins Into two' groups, the re- Shepherded by U.S. marines and para- ceeded Juan Bosch. Again, the guer-
actionary military and rich on one hand, troopers, over 5,000 people, Americans rilla fighters were led by Dominicans
and, the masses of poor' and their allies, and citizens of 45 other countries, left indoctrinated and specially trained in
the intellectuals, on the other. When- the violence of Santo Domingo for safety Communist Cuba. Despite the fact that
ever' a revolutionary figure rises' from during the early days of the Dominican many of the members of the 14th of June
this latter group bearing the banner of revolt. movement were-and a large number
liberation and calling on his followers We can all be proud of this accomplish- still are-non-Communist, the fact is
to throw off their shackles, his cause is ment. In the face of a complete break- that Communists gold its key leadership
embraced without question by many down of law and order, rifle fire from positions and that it has consistently
Americans who proclaim him a new snipers, acts of terrorism, growing vio- served Communist ends.
Bolivar. ,His opposition, automatically lence on the part of undisciplined gangs It was the 14th of June movement that
wrong, is branded worthy of destruc- of marauders, and indiscriminate killings took the leadership in rallying popular
tion. taking place throughout the city, the support for the rebel side from the very
't'here can be no doubt that grave evacuation mission was successfully car- beginning of the current upheaval.
wrdngs arc today perpetuated in many ried out. Not one of the thousands of Joining with their other comrades,
of .the lands south of our borders; that Americans, nor any of the other foreign these Castrolike fighters sought to even
hunger is a fact of everyday life for far citizens who turned to us for safety and the sides by aiding in the large-scale dis-
too large a number of our neighbors; evacuation, was physically harmed. A tribution of arms, including automatic
that for scme Latin Americans, democ- few heroic marines, however, gave their weapons and grenades, to civilians.
racy is only a vague, seemingly unattain- lives to carry out their mission of mercy. Soon the Communists completely took
able dreamy and that the rule of law is The fact that the President ordered over control of this activity in order to
soructimes replaced by the rule of de- the marines to land solely in order to make sure that their own followers and
ores: But, nevertheless, if we are' to protect innocent lives does rot, of course, sympathizers had guns.
effect improvements, we must learn to mean that our Government was unaware From their point of view, this was a
distinguish between the widely varying of the growing Communist strength and necessary measure, because at the height
factions that compete for political power influence on the rebel side. We were well of rebel strength, there were no more
in every part of the hemisphere. 'We acquainted with the personnel and tac- than 1,000 trained Dominican soldiers
must recognize, 'bad as existing evils tics of the Dominican Communist Parties who had defected to their cause. By
may be, their proposed remedies can be long before the revolt began. We knew arming more than 1,500 hard-core Com-
even worse. that many leading Communists had munists and as many as 4,000 other civil-
Mr. President, it is it tragic fact that secretly returned to Santo Domingo from ians, the rebels greatly increased their
the failure of an unquestioning majority exile late in 1964 and in the early months prospects for success.
of Americans to make 'these distinctions of 1965, after training in subversion and In addition, they moved quickly to or-
in 1959 aided Fidel Castro in the con- guerrilla tactics in Cuba and other Com- ganize street demonstrations, seize news-
solldation of his power in Cuba. By cun- munist countries. paper plants, take control of rebel prop-
ningly covering his baaic motives with Mr. President, there are today three aganda over radio and television, orga-
a cloud of rhetoric designed to appeal to Communist parties active in the Domini- nize paramilitary units, and establish
the democratic sensibilities of liberal can Republic. One of these, the Domini- commando units and command posts.
North Americans, Castro was able to can Popular Movement-the MPD-was Skillfully adapting the tried and
hasten the replacement of the tyranny of an underground party prior to the April proven model of Cuba, Dominican Com-
Batista with the tyranny of communism. 24 revolt, consisting of about 500 hard- munists hid behind and manipulated
Therefore, although overt Communist core members, and following the Chinese scores of non-Communist rebels.
influences were carefully submerged at Communist line of violent change For instance, there were several thou-
first, when revolt spilled into the streets through open insurrection. sand armed civilians who were not Com-
of Santo Domingo on_; April 24, respon- The second of these parties was known munists, ranging from patriotic Domin-
sible Americans were especially wary and as the Popular Socialist Party-PSP- icans who sincerely believed in what they
were concerned that a second Cuba could and was also an underground organiza- were doing to youngsters-some only 12
be in the making. tion before April, with between 700 and years old-who were in the fight for the
The prevention of a Communist coup, 1,000 dedicated members. This party has thrill, and hoodlums who were out to
however, was not the motive behind followed the Moscow line, preferring to kill policemen and to loot. Although
President Johnson's initial decision to attain its ends by subversion and many of these civilians probably never
land t S; marfnes.' Rather, . after the penetration rather than by the more vio- came under direct Communist control
short-lived provisional government of lent methods advocated by the MPD. and discipline, they were dependent in
l > p1iael Md'Iina Urena collapsed on Just 2 weeks ago, emboldened enough to varying degree on the Communists for
April 21, the situation in Santo Domingo openly proclaim its true identity, this leadership and for arms and ammuni-
gii clfly degenerated into 'a state of an- party discarded its popular-Socialist tion.
,Approved For Release 2003/10/15 : CIA-RDP67B00446R000500110012-2