CONGRESSIONAL RECORD - SENATE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500160003-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: April 13, 2004
• Sequence Number: 3
• Publication Date: July 9, 1965
• Content Type: OPEN

'5
01.4171 9 Approved For/Release:2'004i 5/22 CIAARDP676004461000500160003-7
1965 CONGRESSIONAL RECORD --$KNATE
falo 1Vluseuna of Science to relinquish
etigixiv of this collection and to transfer
it to the Institution, which has Once
been done. 'cinder the 'Trading With
the Enenly Act, vested alien property,
SUCh as the Von der Ileidt collection,
must be "liquidated, sold, or otherwise
dealt with in A),-ie interest of and for the
benefit of the United States." This
language has been previously construed
80 as to prohibit the 4ttprney General
from making donations of vested alien
prOperty. Thus, it is considered neces-
sari for legislation to be enacted to au-
thorize the transfer of title to this col-
lection to the Smithsonian Institution,
notwithstanding the existence of section
4 of the act of May 17, 1938-20 U.S.C.
76d--authoriz1ng agencies to donate to
the ?mithsonian any works of art under
their control.
Enactment of this proposal would be
In the interest of and for the benefit of
the United States. Rather than dispos-
ing of this collection lpy sale and thus
dispersing these important objects into
the. hands of various museums, private
Collectors, and dealers throughout the
world, the Attorney General could do-
nate these objects to the Smithsonian In-
stitution, where, as part of the national
Collections, they may be exhibited for
the benefit of the millions of visitors who
throng its museum halls each year and
where a highly competent professional
staff may study and publish manuscripts
describing them for the benefit of schol-
ars _throughout the world.
Enactment of this proposal would not
result in an appropriation request for
care of the Smithsonjan's collections
beyond current levels.
The Attorney General and the Bureau
of the Budget advise that they have no
objection to the enactm,ent of this legis-
lation.
The PRESIDING OFFICER. The bill
will be received and appropriately re-
ferred.
The bill (S. 2266) to authorize the
AttQrney General to transfer to the
Smithsonian Institution title to certain
objects of art, introduced by Mr. Fur.-
138IGAT (for himself and other Senators),
was received, read twice by its title, and
referred to the Committee on the Judi-
ciary.
EXTENSION OF PRiOVISIONS OF
TITLE XIII OF FEDERAL AVIATION
? ACT RELATING TO WAR RISK IN-
&MANCE
Mr. MAGNUSON. Mr. President, at
the request of the Secretary of Com-
merce, I introduce, for appropriate re-
ference, a bill to extend the provisions
of title XIII of the Federal Aviation Act
of 1958, relating to war risk insurance.
I a* unanimous consent that the Sec-
letaxy's letter requesting the proposal be
printed in thePECORD.
? The PRESIDING OFFICER. The bill
will ,be received and appropriately re-
ferred; and, without objection, the let-
ter Will be printed in the RECORD.
* 'nip kill (5. 2267) to _extend the pro-
-1710(084 title XIII Of. the Federal Avia-
tion_ Act of, 1958, relating to war risk
insurance, introduced by Mr. MAcNusoisr,
by request, was received, read twice by
Its title, and referred to the Committee
on Commerce.
The letter presented by Mr. MAGNUSON
Is as follows:
TI-TE $ECRETARY OF COMMERCE,
Washington, D.C., May 24, 1965.
Hon. HUBERT H. HUMPHREY,
President of the Senate
Washington, D.C.
DEAR M. PRESIDENT: The Department of
Commerce has prepared and submits here-
with as a part of its legislative program for
the 89th Congress, let session, a draft of a
proposed bill "to extend the provisions of title
XIII of the Federal Aviation Act of 1958, re-
lating to war risk insurance."
This proposed legislation would extend the
life of title XIII of the Federal Aviation Act
of 1958 (49 tT.S.C. 1542), relating to war risk
insurance, until September 7, 1970. Section
1312 of the act now provides for expiration
of aviation war risk insurance authority on
June 13, 1966.
Title XIII of the Federal Aviation Act of
1958 authorizes the Secretary of Commerce,
with the approval of the President, to pro-
vide war risk insurance for the protection of
aircraft and persons and property transported
thereon, and other liabilities pertaining to
aircraft or the OWIler or operator of such
aircraft of the nature customarily covered
by insurance, when commercial insurance
cannot be obtained on reasonable terms and
conditions. At present, as at the time of
original enactment of these provisions of
Public Law 47, 82d Congress (65 Stat. 65),
commercial policies covering aviation war
risks are issued only subject to automatic
termination clauses in the event of outbreak
of war between any of the four Great Powers
(France, Great Britain and/or any of the
British Commonwealth of Nations, the Union
of Soviet Socialist Republics and the United
States of America). Even though the United
States might not be involved immediately,
American aircraft would be without protec-
tion against loss by risks of war. Further-
snore, prompt mobilization of the air trans-
port facilities of the United States would be
jeopardized without such insurance.
The general order on aviation war risk
insurance which was issued on November 1,
1956, established an interim binder program
for war risk insurance, war risk liability
insurance, exclusive of cargo liability, and war
risk carriers' liability to cargo insurance.
Under a recent revision of this general order
war risk insurance is now being provided,
without premium, to the Department of
Defense for participants in the Civil Reserve
Air Fleet (CRAP) program; for certain civil
air carriers while providing international and
overseas transportation regularly required by
the Department of Defense, including emer-
gency airlift requirements not sufficient to
justify the activation of CRAP. The same
insurance is available to the Department of
State for American air carriers entering into
certain agreements with that Department.
The Secretary of Defense and the Secretary
of State have agreed to indemnify the Sec-
retary of Commerce against all losses covered
by such insurance.
If the provisions of title XIII are extended
as proposed, it is anticipated that binder fees
to be collected will more than cover ex-
penses chargeable to the war risk insurance
fund under peacetime operations.
The Department of Commerce recommends
the early enactment of this proposed legis-
lation.
The Bureau of the Budget advises there
is no objection to the submission of this
proposal from the standpoint of the admin-
istration's program.
Sincerely yours,
JOHN T. CONNOR,
Secretary of Commerce.
1,5q05,
AMENDMENT OF TITLE XIII OF THE
FEDERAL AVIATION ACT RELAT-
ING TO ,WAR RISK INSURANCE
Mr. MAGNUSON. Mr. President, by
request, I introduce, for appropriate ref-
erence, a bill to amend title XIII?war
risk insurance, of the Federal Aviation
Act of 1958. I ask unanimous consent
that a letter from the Secretary of Com-
merce, requesting the proposed legisla-
tion, be printed in the RECORD.
The PRESIDING OFFICER. The bill
will be received and appropriately re-
ferred; and, without objection, the letter
will be printed in the RECORD.
The bill (S. 2268) to amend title XIII--
war risk insurance, of the Federal Avia-
tion Act of 1958, introduced by Mr. MAO-
Nusorr, by request, was received, read
twice by its title, and referred to the
Committee on Commerce.
The letter presented by Mr. MAGNUSON
is as follows:
THE SECRETARY OF COMMERCE,
Washington, D.C., May 24, 1965.
Hon. HUBERT H. HUMPHREY,
President of the Senate,
Washington, D.C.
DEAR MR. PRESIDENT: The Department of
Commerce has prepared and submits here-
with as a part of its legislative program for
the 89th Congress, 1st session, a draft of a
proposed bill: "To amend title XIII?war
risk insurance, of the Federal Aviation Act
of 1958."
This proposal is a part of the legislative
programs of the Department of Commerce
and of the Department of Defense for the
89th Congress. The Bureau of the Budget
advises that, from the standpoint of the ad-
ministration's program, there is no objection
to the presentation of this proposal for the
consideration of the Congress.
Title XIII of the Federal Aviation Act of
1958 authorizes the Secretary of Commerce,
with the approval of the President, to pro-
vide insurance against loss or damage arising
out of "war risks." At the time this title
was enacted, however, specific consideration
was not given to the possibility that com-
mercial insurance covering risks other than
war risks might not be available to civil
carriers during periods of emergency while
performing air transportation services for the
Department of Defense or other Government
agencies. As the Department of Commerce
has gained experience in implementing the
war risk insurance program and as the De-
partment of Defense has developed its pro-
gram fOr the utilization of commercial aug-
mentation capabilities in emergency situa-
tions, it has become clear that the com-
mercial insurance industry in the United
States may not be able to provide insurance
protection against risks other than war risks
to which civil aircraft might be exposed
While performing services for the Depart-
ment of Defense or other Government agen-
cies in emergency situations.
Although U.S. air carriers can purchase
commercial insurance for aircraft operations
during peacetime under Department of De-
fense contracts, the Department of Defense
faces the real possibility that at precisely the
time an emergency situation arises making
the increased use of civil aircraft necessary,
the insurance industry will cancel the com-
mercial insurance covering those aircraft and
the air carriers would then be faced with the
alternative of (1) operating at their own
risk without any normal insurance coverage,
or (11) refusing to perform necessary Gov-
ernment defense transportation services
until insurance was made available.
The U.S. commercial aviation insurance
underwriters have indicated that upon acti-
Approved For Release 2004/05/22 : CIA-RDP67600446R000500160003-7
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15606 C4fbAt REcoitri ---
ancC Libustriess In a State of the united States,
and If the insured, after receipt of such no-
tice, has failed to act with reasonable prompt-
ness to obtain such commercial insurance;
and (4) the insured shall not be entitled to
any compensation for loss, damage, or liabil-
ity arising from any risk other than war
risk unless the loss, damage, or liability arose
in time of (1) airlift emergency determined
by the Secretary of Defense or his designee;
(11) airlift emergency or national emergency
determined by the President of the United
States; or (11i) activation of the Civil Reserve
Air Fleet; such determination or activation
mu; t have occurred subsequent to the en-
actr lent of this statute and the insured must
demonstrate that prior to the determination
or tetivation he had commercial insurance
with or without accompanying self-insurance
against such risks, which commercial in-
allitilee was canceled or ceased to be in ef-
fect by reason of the determination or ac-
tivation.
tion Of the Civil Reserve Air Fleet (CRAP)
demem-ha insurance 'coverage against
hide Of risks will terminate. In other
$, Upon activation of the CRAP, the
tlioilcipating airlines would be covered by
war risk insurance issued under title XIII of
-ate Federal Aviation Act, but would not have
y' insurance whatsoever against any of the
Other types of risk, unrelated to hostile activ-
ities.
- To ,provide assurance to the air carriers
participating in the Civil Reserve air fleet
program against such gaps in their insur-
-Wide Overage; the Department of Defense
has 'been compelled to use the extraordinary
contractual authority of Public Law 85-804
to specify that, subject to the availability of
appropriations, It would indemnify the air
Carrier against any loss occurring after
activation of the Civil Reserve air fleet if
that 1 'Was not, in fact covered by either
comilnercial insurance Or title XIII war risk
insurance. This IndemnifiCation applies to
an risks not Covered by title XII/ insurance,
including risks which the commercial insur-
ance industry is unwilling to insure during
periods when the Civil Reserve air fleet has
been activated. While this indemnification
is -limited Under the present' contract terms
to periods whin the Civil eServe air fleet has
been activated, the indemnification would
have to be extended to periods of lesser enter-
genet 11 commercial insurance' coverage was '
Withdrawn during such lesser emergencies.
The revision of title /Lit proposed in the
attached draft would enable the Department
inenta Of Commerce and Defense to assure
U.S. air carriers which hare guaranteed to
make 'their aircraft available to the Defense
Department' for transportation services in
periods of emergency that if commercial in-
suralice Overage is canceled, title XIII in.
aurince would be immediately available.
- The attached draft legislation would au-
thorize a program of insurance which, with-
but interjecting the Government into areas
Where commercial insurance coverage is
available, would provide asgurance of protec-
tion to air carriers providing essential airlift
in periods a emergency, a; principal objec-
tive of title XIII: '
The Departments of Commerce and De-
fense would expect to apply the new author-
ity by providing that any insurance provided
under the, provisions of title XIII pursuant
to, the request of the Secretary of Defense
shall, to the extent that is applicable to air
lcansportation services performed in whole
orn part outside the territory of the several
States under the terms of a contract with
the Department of Defense, attach, upon the
leslia4ce of the policy, and provide insurance
.coverage With respect to all types of risks
11)4 in the policy: provided, that (1)
the insured shall be comPensated pursuant
:to this insurance for anY loss, damage, or
11:10ility only to 'the extent that the insured
comPensated by commercial bonds or
insurance; (9) the aznotint of compensation
to the insured, together with all compensa-
n from commercial bonds Or insurance,
for any lois, damage or liability shall not ex-
. Oeed the 'arxiount which the insured would
have received friiin commercial bonds' and
hasuiance, and 'from any derrionstrable pro-
grain for self-insurance, for a similar loss,
damage or liability arising from a risk other
than, a "war risk" and arising during a trans-
portation operation unrelated to any GoVern-
ment contract;- in addition, the amount of
,
cOMpentatton in the case Of total loss of an
aircraft, together with all Compensation from
con it'rdtal bonds or insurance, shall not ex-
:teed-the iinourit determined ae specified in
eeetion 130'(a) Of title 'XIII; (3) the insured
thali not he 'entitled to any compensation
for loss, 'damage, or liability arising from
any' insured risk if the Insured has been
notified that the insurance against some or
all of the insured risks is Obtainable on reit-
Ontible 'Uinta and conditions from one or
More conipahies authorized to do an Maur-
Tie Department of Commerce, separate
and 'apart from Department of Defense con-
siderations, would also expect to apply the
new authority under this draft legislation to
con parable situations which might arise in-
volt Lig contractual relationship of other
Gotirnment agencies with U.S. civil air
can iers.
The Department of Commerce recommends
enaitment of the attached draft legislation
and the Department of Defense concurs in
thlt _recommendation.
Sincerely yours,
JOHN T. CONNOR,
Secretary of Commerce.
EQUITABLE POSTAGE RATES FOR
MUSEUMS
Mr. YARBOROUGH. Mr. President, I
introduce, for appropriate reference, a
bill to extend library postage rates to
qualifying museums for the mailing of
educational materials, loan exhibits, and
otl er materials.
he present law provides the low-li-
bri,ry postage rate for the mailing of
certain specified articles when sent to or
frcm schools, colleges, universities, or
pu'1lic libraries, and to or from nonprofit
religious, educational, scientific, philan-
thropic, agricultural, labor, veterans, or
fraternal organizations or associations.
Maly museums are considered to be
"educational" organizations within the
prtssent law, but exhibits and specimens
are not included in the articles specified
for low rates.
This bill would specifically include mu-
seums in the list of organizations and
wculd amend the law to include museum
materials, specimens, collections, teach-
ing aids, and interpretive materials in-
teiided to inform and to further the edu-
ea gonai work and interests of museums
in the list of articles eligible for prefer-
en tial rates.
Museums are doing significant work in
the educational process. Their travel-
exhibits reach millions of children
who never get to a museum, and such ex-
hi its can often lend to regular course
material that exciting touch of reality
capable of transforming a child simply
attending school into a student. Such
a program is certainly worth encour-
ag pig. Granting museums library postal
rates would recognize these program's
and give the mailing of their materials
the same status as other educational ma-
te tials.
.160003-7. July 9, 1965
The PIkESTDING OFFICER. The bill
will be received and appropriately
referred.
The bill (S. 2269) to extend preferen-
tial postage rates to qualifying museums
for the mailing of educational materials,
loan exhibits, and other materials, in-
troduced by Mr. YARBOROUGH, was re-
ceived, read twice by its title, and re-
ferred to the Committer 'Mee and Civil Service.
TR V LOWANCES FOR U.S. EM-
PLOYS UNDER CERTAIN HARD-
SHIP CONDITIONS
Mr. CANNON. Mr. President, I in-
troduce, for appropriate reference, a bill
to revise the statutory authority under
which payment for services is made to
U.S. employees.
The im:pa,ct of this bill would affect no
more than approximately 50 Govern-
ment workers at the U.S. Atomic Energy
Commission's Nevada test site.
Many of these men are called upon
daily to travel more than 200 miles round
trip in order to perform their services for
the Government. They work side by side
with employees hired by private industry
who do receive travel allowances. This
inequity would be corrected by the bill
I am offering.
I ask unanimous consent that the bill
may be printed in the RECORD at this
point.
The PRESIDING OFFICER. The
bill will be received and appropriately
referred; and, without objection, the bill
will be printed in the RECORD.
The bill (S. 22'11) to authorize the
payment of an allowance of not to ex-
ceed $10 per day to employees assigned to
duty at the Nevada test site of the U.S.
Atomic Energy Commission, introduced
by M. CANNON, was received, read twice
by its title, referred to the Committee on
Government Operations, and ordered to
be printed in the REcoan, as follows:
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That the first
section of the Act entitled "An Act to provide
authority for the payment of certain amounts
to offset certain expenses of Federal em-
ployees assigned to duty on the California
offshore islands, and for other purposes",
approved August 31, 1964 (78 Stat. 745; 5
U.S.C. 70c), is amended by inserting after
the word "islands" the words "or at the U.S.
Atomic Energy Commission, Nevada Test
Site, including the Nuclear Rocket Develop-
ment Station,",
SEC. 2. The amendment made by this Act
shall become effective on the first day of
the first pay period which begins on or after
the date of enactment of this Act.
NATIONAL FAMILY CAMPERS WEEK
Mr. COOPER. Mr. President, I in-
troduce, for appropriate reference, a joint
resolution to designate the week of
July 11, 1965, as National Family
Campers' Week.
More than 5,000 members of the Na-
tional Campers and Hikers Association
will pitch tents in a Kentucky park next
week as they begin their annual con-
vention. Representing a membership of
more than 12,000 families in the 50
States, Canada, and Mexico, the as,socia-
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mily rooftop heliport presently in use in the
United States.
Yoq. may have read in the papers that
the port is studying the feasibility of estab-
lishing an industrial foreigl trade zone at
the airport. Should such a,zone be created,
this again, would be a fir?t. ?These, with
many Other Arita or the port of Oakland, re-
late only to our industry, land and the air
arm of our operations. The port, however,
has marine terminals and in this field all
systems are also go. Sea-Land, which has
eStablished, OalFland as its west coast base,
has developed a great intercoastal container
operation. We recently Concluded negotia-
tions with Sea-Land from the doubling of
their present facilities.
The port established a port of Oakland
office in Tokyo this year for the purpose of
assisting in the expansion of trade.
, A week ago the board of port commission-
ers approved the leasing of space in its head-
quarters building for an international trade
center ,which will be occupied by importers,
exporters, U.S. customs, an international
bank and others engaged in world trade and
commerce. Again, with the future in mind
the planning of this center Contemplates ap-
proximately 30,000 square feet to be devoted
to the trade center. We have reason to, be
Optimistic about this development because
w& have letters of intent ,frona ,potential
tenants for most of the _space in the first
phase of this projeet.
We are working closely with BARTD on
their plans for tunneling under San Fran-
cisco Kay, and expect to develop a new deep-
water .terminal facility at_ the ow ,8,. mole
as a part of this tunnel pro-Jo-et.
Another first?we vialted 41,1r office in Brit-
sets, Which was established in ,19.44? apci
found it to be effective ,in t4liiag our stories.
These firsta and, accOOMPlisliMents, how-
ever, cannot be _attaine4 5vithpu,t people.
The port has people. In the past 2 years
many important changes in, port personnel
have taken place. A team with experience,
vitality and the spirit of making "all sys-
tems go" has been placed in the key posi-
? tions of the port, and I assure you they are
prepared to meet the challenges. We know
this team will help bring about the increase
inAinerican exports as predicted by Secretary
of Commerce Comae'', from the present $25,6
billion to the anticipated $38 billion and
imports from $19 billion to p$,5 billiOn
All in all we are very proud of past de- ,
velopments within the port of Oakland and
we are confident that this excellent progress
Will continue and evenepeed,:up is the com-
ing years.
Now ;et me talk about the, travels of port
peOple this year. First, we made a. trip to
Japan and a short time ? later, a trip to
Europe. The purposes of these trips were
threefold. First, ..we wanted to inform
people about the port Of _Oakland and the
airport. second, we wanted to become ac-
quainted with the -areas we visited; we want-
ed to learn more about the people and the
role of World -trade from their point of view.
Third and last, we ,?wanted.to study at first-
hand the problems of our trading partners,
so we cOuld plan and bring about even more
progresS for the port of Oakland to better
serve Ofir customers. I believe all three mis-
sions were successfully accomplished.
In our oversea visits we talked with busi-
nessmen, American Embassy personnel, ship-
, 4OWnersand`many others. We informed them
I or-the:port and airport facilities which now
exlsand dis,cussed, at length the facilities
which we have planned for the future in or-
der to provide better services for QUM. While
in Japan, we were searching for the "right
man" to be a representative for the port of
Oakland in Tokyo and to establish our office
there. This we accomplished with singular
f Blig.QeS4.
We also learned something about Japan
as a power in the field of world trade. Japan
ranks first in shipbuilding, second in the
production of electronics and electrical ma-
chinery. She is competing with Germany for
third place in steel production. Incidental-
ly as part of this industry the port of Oak-
land plays an important role; large quan-
tities of scrap iron and steel are shipped from
the port to Japan. Japan is fourth in
the world in automobile production.
Did you know that the Japanese gross na-
tional product last year was $78 billion?
When this is compared with Italy's gross na-
tional product of $52 billion, the United
Kingdom's $83 billion, France's $86 billion,
and West Germany's $103.5 billion, you
can readily see that Japan has become one
of the leading industrial nations in the
world. The Japanese are confident they will
increase their gross national product by at
least 10 percent this year, in spite of the
setbacks which have been occurring. They
have been increasins, the gross national prod-
uct on an average of 10 percent each year
during this decade.
In many instances the Japanese have over-
built their plants and as a consequence they
must strive even harder to develop their ex-
port markets.
The Japanese are devoting less than 1 per-
cent of their annual budget to defense. In-
dustry therefore is spending its time in the
manufacture of goods and services. Is it any
wonder then that they are confident of an
increase in their exports?
Japanese steel industry equipment invest-
ment is expected to be up 20 percent in fiscal
1965, over fiscal 1964. The petrochemical in-
dustry is expanding its capital investment by
5E1 percent; automobile and shipbuilding in-
dustries will be investing more heavily this
year than in past years.
Makers of steel, steel products, nonferrous
metal products and cameras have either
formed, or sought permission to form, car-
tels in order to control prices through pro-
duction control or by actual price fixing.
This means that they, will be even stronger
as competitors throughout the world.
With the beginning of the current fiscal
year, Japan's Ministry of International Trade
and Industry has been elevated to the status
of a trade promotion bureau, indicating that
they are actively and vigorously seeking an
expansion of their share of the world mar-
ket. As Japan's biggest trading partner, the
United States is bound to feel the impact of
this increased export drive. Last year Japa-
nese exports increased 27.5 percent over the
previous year, and during the current year
the Japanese Government predicts a gain
of "only" 13 percent in exports. This is
relatively nominal by Japanese standards
but still formidable by any other measure,
The Japanese have a serious policy deci-
sion to make concerning trade with Red
China. They know that China can become
a big potential market some day; their trade
with China has increased and I have the feel-
ing that the Japanese hope to act as the
bridge between the United States and China
in trade, as England has done in the past
between the United States and Europe. The
Japanese have been converted to capitalism;
therefore, when they are selling their prod-
ucts, they will be selling capitalism in Asia;
this will help the free world in its political
problems in Asia.
On the whole, we were most favorably im-
pressed With the Japanese indnstry, the in-
telligence and skill of its people, and certain-
ly with its capabilities to compete in today's
world.
It is my personal observation that the
Japanese market for goods produced in
America will increase, but at the same time
we must look to them as more serious com-
petitors in world trade.
In April and May we visited 10 countries
In Europe in a period of 20 days. This, of
course, makes me an expert on Europe. Had
we stayed a week longer, I can assure you I
would not have been an expert.
We were greatly pleased with our reception
as Californians and I can assure you that
when the name California appears on a prod-
uct in a foreign country, it is accepted as a
product of quality.
Throughout Europe we were greatly im-
pressed with the standard of living that
exists.
The development of supermarkets and self-
service markets in the Scandinavian and
other European countries has much to do
with this pattern. As this growth continues,
undoubtedly greater consumption of food-
stuffs will occur and, of course, the United
States has an edge on all other countries in
the world on mass marketing of its food prod-
ucts, therefore, California, being the fruit
basket of the world will play a major part
in this growth. We at the port of Oakland
are very optimistic about the prospects of
such a vast export market. But before any-
one thinks this is a cinch, they must look at
the ever-increasing competition in this field
from Africa, Spain, and other Mediterranean
countries.
As you know, we are now in the 52d
straight month of unprecedented expansion
in the United States; this is the longest such
period in our history. Our gross national
product in the last 4 years has increased by
$160 billion, an amount equal to our total
gross national product in 1942. Our per-
sonal income has increased from $403 billion
to $516 billion in the last 3 years. Invest-
ment in plant equipment has increased by
50 percent in the last 4 years. All of this
means that the United States is an attractive
market for imports from countries through-
out the world.
In Europe we learned that the EEC coun-
tries are concerned about inflation and have
adopted an antiinflation program, which
includes a 5-percent limit on governmental
budget increases, long-term loans rather than
central bank credit financing, and wage in-
creases are being tied to productivity. They
are very conscious that they do not want to
bring about too much of a slowdown in
economic growth, yet they realize that the
tendency toward inflation must be checked.
American companies are continuing to gain
footholds in the Common Market, in spite
of our administration's drive to try to stem
the dollar outflow. From what we were able
to learn, I have the impression that the
Europeans cannot handle the financing
necessary for American companies to set up
subsidiaries in the Common Market coun-
tries with European capital; however, this
could prove to be a short-term difficulty.
Europe is looking at the United States as a
market to help meet these problems.
We heard some doubt expressed about the
swiftness with which the GATT negotiations
can be concluded, because of the serious
problems concerning agriculture, but on all
sides we found a readiness on the part of the
Europeans, to whom we talked, to continue
the trade expansion which has taken place
over the past 15 years and we were assured
that U.S. products would continue to be well
received.
On the other hand, we found that both
the Japanese and the Europeans are becom-
ing cost conscious. They are seeking ways
to make world trade produce more favorable
results. It is no longer enough that their
so-called labor advantage can compete with
the other countries in the world. They
must, if our reading of the situation is
accurate, look for and adopt the most far-
reaching possible economies in conducting
their world trade in order to continue to
compete.
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Approved FoReIea OQ4iOI2P1; IAADP67
6Ndli 8SIONAt
confirmed our knowledge t at
MO- is Vital. They confirmed our
that without world trade, we, In this
Y, WOUld be -without Many of the ad-
es -Ve' enjoy. We also learned, how-
liat,others are looking at world trade
rove their economies. Cooperation in
;Old la most necessary. The Port of
?and Will continue to'rnake every effort
e0Operate with the world market to make
1 systenie go."
inally;Itiiali to thank You for this on-
&tunny to -briefly tell you the story of a
frig- Orgaiiiaation. We woUld be delighted
'have yen 'Visit the port Of Oakland and
it depth. We hope all of you can
?remain to: see the film of the hovercraft
lin operation, '
,41banle
ecretary McNamara
Retired Pa
NSION OE:REMARKS
HON: FfEtiVAtioIlEBERT?
.PY LPVIS*ISTA
IN THE II0IffSE OFlOilitSENTATIVES
, .,14F1V,cfY,
Mr. ITEI3ERT. Mr. Speaker, during
thp?recept hearings on military pay be-
fore the Kouse Comm' tee n Armed
Services, `the''SecietarY 'tif Defense Mr.
Robert SIVIcNarnara went Into consider-
able detail in -discussing The retired pay
benefits which accrue tO military person-
nel during their career in uniform: The
overall impression which he may have
left with some Members of Congress is
that the benefits are extraordinary.
Vet such is not actually the case.
) Now, tile journal of the Armed PotOe?
has published a fascinating study in
Which 1j conipares the retirement bene-
fits earned by Mr. 'Melslarnara during his
15 years'. With the Ford Motor Co., with
those earned by a brilliant young mili-
tary man. The analysis, by the Journal's
Congressional Editor; Mr. Louis
4t9eksi1t, is detailed right down to the
Penny and it underscores the 'fact that
Military retired pay is not all that it is
reported to be.
I coMinend the article to Members of
the nouse and I ask unanimous Consent
that it bp printed in the Iticoan at This
point:
SECRETARY MCNAMARA AND MILITARY PETIRED
L9uls,ft..Stockstiil, dongressional edi'tor)
No mtler
pw rapic'dly he may hair'S. Veen
prpinoted, no Matter what' Oulstanding con-
tro?vitiox*Iie May he,Ve rnade,"no matter 'how
important hie assignment or the significance
of his Aceomplishments; the most brilliant
Young ?Meer in the An-tied Forces, if he is
Bound mind and body, is entitled to abso-
lutely nothing in terms of retirement bene-
fits at the end of 15 years' service to his
cottritry. ?
Everyone In irdlitary 'serivee knows this,
fon, to the lOt of a brilliant young man
in 'industry.
Let's take the example of Secretary of De-
fe tee Robert S. McNamara.
Mr. McNamara joined the Ford Motor Co.
at the end of January 1946 as assistant direc-
tor Of the planning office. He was 29 years
ol 1. By all accounts, he was an outstand-
ing young man. In less than 3 years he be-
came director of the planning office. In 1949
hi'Vas made controller. In 1953, he became
cellistant general manager of the Ford Di-
vidon. in 1955, he was promoted to vice
pi esident and general manager of the divi-
sim. From 1957 to 1960 he was group vice
mesident of car divisions and a company
director. In 1960, he was elevated to the
ofIce of president.
lttEEN THOITSAND natf,sns 13ENEFTT
SaILLIRTy 1961, after slightly less than
1( years' service With-Ford, at the age of 44,
M. McNamara left the company to become
Secretary of Defence.
Without ever again returning to Ford, See-
n tary McNamara, on the basis of less than 15
1-7( tiPS' RIT11310yIlieTit With that company, is
eiftitled, when' he reaches age 65, to a re-
tirement income of 616,187.96 per year. Life
eivectancy tables indicate that he should
ceive this amount for a period of 10 years
total of $161,879.
e:dditI,on ib ,the hefty salary Mr. Mc-
bluxuera-rdeeived Clurin'g his years at Ford,
hi also became entitled to "supplemental
cippensation" in the amount of $618,750.
If he had Made retirethent contributions on
tide amount alone, at the 61/2 percent rate
nquired of _Federal civilian employees, his
contribution would have totaled more than
Actually, Mr. McNamara contributed ap-
robleimately $37,000 to the Ford retirement
fimd--a relatively small percentage of his
total compensation, counting both salary
aad supplemental pay.
,,At the time he left Ford, the Secretary of
Dafense, if he, had so desired, could have
ithdrawn the amount that he had paid into
Cie retirement' 'fund, together with interest
vertich had accrued on the payments, receiv-
ing a lump sum check in the amount of
$11,169.94.
.Bven hp had, withdrawn his retirement
eintribution, however, he ?ll would have
been entitled to a "noncontributory retire-
Ment benefit" of $33.83 per month when he
r faehes age 65.
EIGHTEEN THOrSAND DOLLARS FOR CHIEF OF
STAFF
'Secretary McNamara's $16,000 retirement
income from Ford?on the basis of 15 years'
cervice?compares with the $18,000 retired
pay received by a Chief of Staff after 30 years'
service and the $18,000 retired pay received
by former House Armed Services Committee
Chairman Carl Vinson, Democrat, of Georgia,
after 50 years in the Congress.
Ilt should be remembered, of course, that
the Pentagon chief made an enormous fl-
rtancia,l sacrifice when he agreed to leave his
t2p industry post to serve in the President's
Cabinet. Not only did he take a huge wage
Cat, but he lost certain company benefits to
thich he would otherwise have been entitled,
aftd he elected not to exercise stock option
rights which would have netted him a poten-
tial profit in the neighborhood of $60,000 to
$70,000.
eTlae comparison here is not designed to
sttow Mr. McNamara in an unfavorable light.
1i 1a intended .to,show that the Inilitaliy re-
kenient system, whatever its virtues, is not
c,laite as glorioiis as some believe.
but wit e current preoccupation about ?NO VESTED RIGHT
t4c, coste_el the military retirement -system, ,The military man has no vested right in
perhaps it would serve some useful purpose ids retirement income. The earliest he is
tp conipare the lot of the brilliant young Man entitled to any of its benefits (except in case
in the Armed Forces,' after 15 years in Uni- ct disability) Is after 20 years' service. He
,21)
00160003-7 _
July9, 1965
can i1eevr withdraw -any portion of the funds
in case of need. Nor can he pass any part
of the benefit on to his widow unless he
agrees to a substantially reduced benefit dur-
ing his own lifetime. If his wife predeceases
,him, the amount which has been deducted
from his retired pay is lost forever. And,
even so, the deductions continue although
no portion of his retired pay will thereafter
be paid to a second wife or other heir.
To go back to the example of the brilliant
young officer?if he is so outstanding that
he has been promoted to the rank of colonel
after 20 years' service (and the average officer
is not) and if he then elects to retire, and if
his retirement is approved, he is entitled to
an annual military retirement income of
$5,812.20. ,
The amount of annual income is only
about one-third the amount Mr. McNamara
will receive, but the military man has one
advantage not enjoyed by the Secretary of
Defense. Ile starts receiving his retired pay
immediately. He does not have to wait until
age 65.
Yet it will come as a surprise to some?
perhaps even to Mr. McNamara?to learn
what this means in terms of the total an-
nuity the two men will receive over their
lifetime.
SMALL DIFFERENCE
Chances are that if a military man has
becomd a colonel after 20 years' service he
will be younger than 44, the age at which
Mr. McNamara left Ford. This means his
life expectancy is shorter than Mr. Mc-
Namara's. For the sake of argument, how-
ever, let us assume he is 44, in which case
his life expectancy (73.78 years) is still less
than is Mr. McNamara's. This means he
will receive his retired pay for a period of
about 30 years, for a grand total of $174,366
(not counting whatever small percentage in-
creases he may be granted under the Con-
sumer Price Index formula).
This is about $12,500 more than the
amount to which Mr. McNamara is entitled.
Of course, Mr. McNamara contributed $37,000
toward his retirement plan, whereas the
military man is deemed to have contributed
nothing. But, the military man had to work
5 additional years, at far less compensation,
and with little opportunity to build up an
estate, in order to obtain his benefit.
And, if he elects to provide for his wife,
thereby accepting reduced retired pay, and if
his wife dies before he does, he will never
collect anything approaching the total
$174,366.
Secretary McNamara is to be commended
for his attempts to See that the Government
properly accounts for military retirement
costs, but in doing so, he should make a
greater effort to assure that all aspects of the
military retirement system are properly
weighted in assessing this important benefit.
As the counsel for the House Anned Serv-
ices Committee, Mr. Frank Slatinshek has
pointed out, active duty military pay always
has been "deliberately" held down in order
to, in effect, charge members of the Armed
Forces for retirement contributions which
they de not actually make.
If a contributory system had existed for
the services, Congress frequently has ob-
served that the Government would have had
to shell out more to maintain it than it has
spent on the noncontributory system, and
active duty military pay would have had to
be inoreased substantially, thereby boosting
Federal payroll costs and enlarging retire-
ment benefits.
Secretary McNamara's preoccupation with
the "accrued costs" of the system indicates
that, lie has devoted considerable time and
effort to developing a full imderstanclin'g
of this factor of the equation. But there
are other factors and they also must be taken,
Into account.
"7
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(4,6bei. 1, 1965 CONGRESSIONAL RECORD ? SENATE
gust 6 and September L }IR. 10236 was
unahttnowly, reported from, the House Edu-
cation and ;abor "0013unittee. It passed the
House, on the call of the Consent Calendar on
September 20,1965, with the apparent unani-
mous' elipport of fhe -House 'members.
Hearings were held by ihe Senate Sub-
corrinlittee opT.,.,abor on September 23 and the
bill was reported unanimously to, the full
Committee on Labor and Public Welfare the
same Clay.
NEED ron, THE r..toLatrorr
The need for this legislation is well stated
in ti's report issued by the house Education
and Labor Committee on.Setpember 1, 1965
(H. Rept. No. 94), as follows:
"Ida?ny on the employees performing work
recleral service contracts, are poorly paid.
The work is generally manual work and in
addition to craftwork, may be semiskilled or
unskilled. Types of service contracts which
the bill covers are Varied and. include laundry
and d,rycleaning, custodial and janitorial,
guard service, packing and crating, food serv-
ice, and miscellaneous housekeeping services.
"Service employees in many instances are
not cOvered by the Fair Labr Standards Act
or State minimum wage laws. the counter-
part of these employees in Federal service,
blue-c011ar workers, are by a Presidential di-
rective assured of at least the Fair Labor
Standards Act minimum. ipureau of Labor
Statistics surveys of average earnings in serv-
ice occupations in selected areas in 1961 and
196,2 show, however, that an extremely de-
pressed wage level may prevail in private
service employment. In contract cleaning
services, for example, in some areas less than
$1.05 an hour wasp aid. Eievator operators
? earned- low rates, varying from, $0.79 to $1.17
an how. Service contract: employees are
Often not Member. of 3.11110na. They are one
Of the most,. disadvAntaged groups of our
workers and little h,ope exists for an improve-
ment of their position without some positive
action to raise their wage levels.
"The Federal Grovernmeni 110 Eulded re-
sponsibility in this area because of the legal
reguirement that contracts be awarded to the
lowest responsible bidder. Since labor Costs
are the predominant factor in most service
cOntraCts, the odds on making a successful
low bid for a contract are heavily stacked in
favor of the contractor paying the lowest
wage. Contractors who wish to maintain an,
enlightened wage policy may find it almost
impossible to compete for Government serv-
ice contracts with those who pay wages to
their employees at or below the subsistence
level. When a Government contract is
awarded to a service contractor with low-wage
standards, the Government is in effect sub-
sidizing subminimurn wages.
TRANSFER OF CERTAIN CANAL
ZONE PRISONERS TQ ,THE CUS-
TOPY OF THE ATTORNEY GEN-
ERAL
The bill (H.R. '724) to Authorize the
- transfer of certain Canal Zone prisoners
" to the custody of the Attorney General
was considered, ordered to a third read-
ing, read the third time, and passed.
EXCERPT FROM THE REPORT (No. 799)
PURPOSE
This bill would permit the transfer of per-
sons colvinteA. Of,94eias,,PS ha ,the. Canal Zone
to the ,,custgcly of the Attorney. General for
transfer, to prisons within the United States.
ExPLANATrox
The Canal Zone Penitentiary has a popu-
lation that averages 90 to 190 prisoners of
whom not more than about 10 are citizens
of the United States. The small number of
-initiates makes the operation of a rehabili-
,
tation. program difficult. The location of the
penitentiary complicates possible visits from
relatives and friends. Rehabilitation pro-
grams and visits are both important elements
in accomplishing prisoner reform.
This bill woidd provide authority for the
Governor of the Canal Zn e to contract with
the Attorney General of the United States
for the transfer to the custody of the At-
torney General of prisoners who are citizens
of the United States. The law requires that
such contracts provide for reimbursing the
United States in full for all costs or other
expenses involved.
The American citizens imprisoned in the
Canal Zone normally are persons who are in
military service when convicted or who were
seamen or other persons in a transient status
at the time of conviction. The inmates all
were convicted of felonies and hence there
is no likelihood of returning prisoners with
very short sentences.
AUTHORIZATION TO CERTAIN
MEMBERS OF THE ARMED
FORCES TO ACCEPT AND WEAR
DECORATIONS OF CERTAIN FOR-
EIGN NATIONS
The bill (HR. 3046) to authorize cer-
tain members of the Armed Forces to
accept and wear decorations of certain
foreign nations was considered, ordered
to a third reading, read the third time,
and passed.
EXCERPT FROM THE REPORT (No. 800)
PURPOSE
The bill would authorize members and
former members of the Armed Forces of the
United States who have served in Vietnam
after February 28, 1961, to accept from the
Government of Vietnam or the government
of friendly foreign forces engaged in the
conflict in Vietnam, decorations, awards,
and emblems tendered to them as a result of
service there.
EXPLANATION
Clause 8 of section 9 of article I of the
Constitution of the United States requires
congressional consent before a person hold-
ing an office of profit or trust under the
United States may accept foreign decora-
tions or awards.
The qualifying phraseology "in which the
United States is not a belligerent party" is
included to cover circumstances in which
the Armed Forces of the United States are
operating under conditions short of formal
belligerency. The same phraseology was
used in earlier legislation to permit the
award of the Medal of Honor, the Distin-
guished Service Cross, and the Silver Star by
our military departments to members of
the U.S. Armed Forces as a result of their
service in Vietnam.
The qualifying date of February 28, 1961,
was selected because this was the approxi-
mate time when American military advisers
began accompanying their Vietnamese coun-
terparts on military operations.
Acceptance of decorations and awards
under the bill is subject to regulations pre-
scribed by the Secretaries of the Depart-
ments concerned. The committee was in-
formed that the decorations and awards au-
thorized for acceptance by members of the
U.S. Armed Forces would generally meet the
same criteria as are established for U.S.
decorations. The committee strongly de-
sires that the decorations and awards au-
thorized for acceptance will not be of a type
or quantity that would depreciate the honor
or value of U.S. decorations.
The committee was informed that our
military commanders in Vietnam regard ap-
proval of this legislation as being important
to the morale of (;,xu? forces there.
24943
DISBURSEMENTS TO ARMED
FORCES OF FRIENDLY FOREIGN
NATIONS
The bill (H.R. 5665) to authorize dis-
bursing officers of the Armed Forces to
advance funds to members of an armed
force of a friendly foreign nation, and
for other purposes was considered,
ordered to a third reading, read the third
time, and passed.
EXCERPT FROM THE REPORT (No. 801)
PURPOSE
This bill would authorize officers of the
Army, Navy, Air Force, Marine Corps, and
Coast Guard who are accountable for pub-
lic money to make advances of funds under
exigent circumstances to members of friend-
ly foreign armed forces.
EXPLANATION
'Except through the exercise by the Presi-
dent of war powers there is no authority for
disbursing officers of our Armed Forces to
make advances to members of friendly for-
eign armed forces. In recent years there
have been many situations short of war that
resulted in the quick assembly of troops of
several allied nations. In some of these cases
small groups of foreign troops have not had
a disbursing capability of their own. In
these circumstances it is desirable that the
disbursing officers of the United States have
authority to make advances to the members
of the armed forces of friendly foreign na-
tions.
Disbursing officers of the armed forces of
Britain and Canada have authority to make
advances to the Armed Forces of the United
States in peace and in war. This bill would
permit reciprocity for the benefits offered by
Britain and Canada and to other friendly
foreign nations.
The bill requires that any advances made
under its authority must be reimbursed by
the nation whose military forces are ad-
vanced funds. The bill also requires that
any nation that would benefit from this au-
thority must agree to make similar advances
to forces of the United States on a reciprocal
basis. No advance will be made under au-
thority of the bill until the President has
entered into an agreement with the foreign
nation concerned providing for reimburse-
ment and for reciprocity.
The committee understands that the De-
partment of Defense intends to advance
funds only to small detachments of troops
not having their own disbursing facilities.
COST
This bill would not increase the level of
Federal expenditures as the funds advanced
would be reimbursed by the nations to which
they were advanced.
LAND CONVEYANCE, SAN DIEGO,
CALIF.
The bill (H.R. 7329) to provide for the
conveyance of certain real property of
the United States to the city of San Die-
go, Calif. was considered, ordered to a
third reading, read the third time, was
passed.
EXCERPT FROM THE REPORT (No. 802)
PURPOSE OF THE BILL
The bill directs the Administrator of Gen-
eral Services to convey to the oity of San
Diego, Calif., at the estimated fair market
value, all of the right, title, and interest of
the United States to approximately 0.67 acre
of land located in the Navy Capehart hous-
ing area at the Admiral Hartman site in San
Diego, Calif.
Upon receipt 'of the property, the city of
San Diego plans to lease the land to the
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Approved For Releas 2004/05/2Z: CIA-RDP67BtX)44 160 03-7 -
CONGRESSIONAL RECORD -- SENATE October 1, .1965
I.,
C.* for the purpose of constructing a rec- e ..L.adfarr Atom nre REPORT( No. 868)
onal facility which would benefit the
poRPOSE
ry and civilian residents in the area. This bill would eliminate the statutory re-
ere are 439 single units of housing in the eriirement for reimbursement among the
Admiral Hartman site, and while the recrea- =Unary departments for hospitalization
Onal facility proposed to be constructed by "CA Wi not be for the exclusive use hernished to a member or a dependent of an-
ll
the' military and their dependents, it is other military department.
eltpected that they will be the principal sup- EXPLANATION
petters. Irrider current law when a member or a
The property in question has no current former member of a uniformed service (or
Usage by the Navy and has no improvements aa eligible dependent) receives inpatient care
thereon other than two construction shacks, in a medical facility of another uniformed
of dubious value, built by the contractor dur- sorvice, the service furnishing the care must
ins the construction of the Capehart project be reimbursed by the member's service the
Which was completed in 1960. It is now in r ttes established by the Bureau of the
the process of being reported to the General Budget. The current rates are $27 per day
Services Administration as excess to the fir persons on active duty receiving care in
needs Of the Department of the Navy. The f ditties of another military service and $42
estimated fair market value of the land is r er day for dependents receiving care in
stated to b legs than $10,000. f milities of a service other than that of the
FISCAL DATA sponsor.
n provides for the conveyanc
The Department of Defense considers that
d at the estimated fair market the current requirement for reimbursement
re will be no increase in budgetary it an expensive and unnecessary exercise in
ents. paperwork. Approval of this bill will neither
if.crease nor decrease the cost of medical
are within the Department of Defense.
Jaly changes in the funds available to one
military department will be compensated for
by changes in funds of the other services.
HIPMENT AT GOVERNMENT EX-
PENSE OF PRIVA.MLY OWNED
VEHICLES OF DECEASED OR MISS-
ING PERSONNEL
The bill (11.R. 9975) to authorize the
shipment at Government expense to,
from, and within the United States, and
between oversea areas of privately owned
'vehicles of deceased or missing person-
tel, and for other purposes, waa Consid-
ered, Ordered to a third reading, read the
Third time, and passed.
Exam.; PRONE THE Hero= (No. 804)
KilfPOSE
` This bill would authorize shipment at Gov-
ernnient expense from locations within the
continental United' States of private frehi-
dee oWned by missing or deceased military
or civilian employed" of the Federal Gov-
efelinent.
zersatrierfoN'
"
he MisSing Persons Act now provides au-
? thority for shipment at Government expense
of a privately owned vehicle of missing or de-
?easel personnel only when the vehicle is
located outside the continental United States
Or hi "Alaska at the time the casualty status
Oecurs. " ' ` ?
The absence of authority for shipinents of
Vehicles at Government expense from loca-
tions within the continental United States
has caused hardships to widows or other sur-
ViVors of deceased persons or other depend-
ents of persons who are missing. The hard-
ships are greater when there are minor chil-
dren or aged parents in the family of the
deceated or missing person. In these circum-
stances, because of their remoteness from
the automobile and the emotional condition
of the survivors, it is difficult for them to
:travel to the member's last duty station to
elairn the vehicle. `
The Department of Defense considers the
absence of authority to ship an automobile
in these cases as presenting a significant
morale problem.
REIMBURSEMENT AMONG MILT-
, TOT MEDICAI., FACILITIES
The bill (11.R. 10234) to amend sec-
tion 1085 of title 10, United States
Code to eliminate the reimbursement
procedure required among the medical
facilities of the Armed Forces under the
jurisdiction of the military departments,
was considered, ordered to a third read-
ing, read the third time, and passed.
Approved For Releas
Out patient medical care is now provided
ca a nonreimbursable basis within the De-
itatment of Defense and the same system
would follow for impatient care upon enact-
ment of this bill.
The current requirement for reimburse-
ment between an armed force under the
,urisdiction of a military department and an-
other uniformed service not under the De-
partment of Defense would be retained.
COST
Enactment of this bill will not increase
dr medical care within the Department of
'5eiense but should result in some adminis-
mative savings.
,3,ANK OF LIEUTENANT GENERAL OR
NICE ADMIRAL FOR SURGEONS
* GENERAL OF THE ARMY, NAVY,
AND AIR FORCE
The Senate proceeded to consider the
bill (HR. 7484) to amend title 10, United
States Code, to provide for the rank of
lieutenant general or vice admiral of
Officers of the Army, Navy, and Air
Force while serving as Surgeon General
which had been reported from the Com-
mittee on Armed Services, with amend-
ments on page 2, at the beginning of
line 1, to strike out "general, but is not
counted as a lieutenant general against
any strength prescribed by, or under,
law" and insert "general"; on page 3,
line 11, after the word "of", to strike out
"vice admiral, but is not counted as a
vice admiral against any strength pre-
scribed by, or under, law" and insert
"vice admiral"; and, after line 15, to
strike out:
"1 8036. Surgeon General: grade
:"The officer who is designated as a medi-
`I officer under section 8067(a) of this title
mid who is serving as Surgeon General of
he Ail:Force his, while so serving, the grade
bf lieutenant general. He is not counted as
AV lieutenant general against any strength
.prescribed by, or under, law."
(b) The analysis of chapter 805 of title 10,
United States Code, is amended by inserting
the following item:
"8036. Surgeon General: grade."
And, in lieu thereof, to insert:
"I 8036. Surgeon General.: appointment,
grade
"There is a Surgeon General of the Air
Force who is appointed by the President by
and with the advice and consent of the
Senate from officers of the Air Force who are
designated as medical officers under section
8067(a) of this title. The Surgeon General,
while so serving, has the grade of lieutenant
general."
(b) The analysis of chapter 805 of title
10, United States Code, is amended by in-
serting the following item:
"8036. Surgeon General: appointment,
grade."
The amendments were agreed to.
The amendments were ordered to be
engrossed, and the bill to be read a third
time.
The bill was read the third time, and
passed.
EXCERPT FROM THE REPORT (NO. 807)
PURPOSE OF THE BILL ?
The purpose of the bill is to amend exist-
ing law so as to provide, by statute, that
officers of the Army, Navy, and Air Force
while serving as Surgeons General will hold
the rank of lieutenant general or vice admiral
(three-star rank) and be entitled to the pay
and allowances of such grade while so serv-
ing.
The bill also would provide for retirement
in three-star grade for such officers subject
to Senate confirmation.
EXISTING LAW
Under existing law medical officers of the
Army and Navy who are designated as Sur-
geon General of their respective military
services are appointed in the grade of major
general or rear admiral of the upper half,
respectively (secs. 3036 and 5133, title 10,
United States Code). There is no similar
statutory provision for the position of Sur-
geon General of the Air Force, although the
officer assigned to that position is normally
a major general.
At the present time the Surgeon General
of the Army and the personal physician to
the President hold the rank of lieutenant
general and vice admiral, respectively, by
virtue of the authority vested in the Presi-
dent to designate certain positions of impor-
tance as warranting this grade for the in-
cumbents.
REASONS FOR THE BILL
The Senate Committee on Armed Services
is of the opinion that this legislation is
justified for the following reasons:
1. The bill will remedy the present anom-
alous situation in which the chief medical
officer of one of the military departments
holds a higher rank than the other two Sur-
geons General. Moreover, it will remedy the
situation in which the chief medical officer
of the Navy is, in fact, junior in grade to one
of the officers normally under his command.
This observation should not be construed as
indicating that the private physician to the
President should not properly hold the three-
star rank.
2. The responsibility of each of the Sur-
geons General of the three military services
justifies the rank of lieutenant general or
vice admiral for these positions. The Sur-
geons General have the vast responsibility
of worldwide medical care for several mil-
lions of military personnel and their depend-
ents. They are responsible for developing
and maintaining medical services necessary
to support military operations both in war
and peace. This position involves the re-
sponsibility for the health of about 3 mil-
lion military members on active duty. In
addition, there are about 4 million depend-
ents of active duty personnel, together with
additional retired members and their de-
pendents, all of whom receive medical care
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House of Representatives
The House met at 11 o'clock a.m.
The Chaplain, Rev. Bernard Braskamp,
AD., prefaced his prayer with this verse
of Scriptures: I John 3: 11: This is the
message that ye heard from the begin-
ning, that we should love one another.
Eternal God, in these moments of
prayer, may we come nearer to Thee and
cling to Thee with greater love and faith
and that we may have Thy light and love
to solve our problems and perform our
appointed duties.
We beseech Thee to enter our minds
by ways known only to Thyself and send
us into the crowded ways of life with
hearts of compassion and as servants of
Thy holy will and teach us that the hope
of the world lies in the realization of God
and the practice of brotherhood.
Help us to understand that we give
proof of our religion when we resolve to
make it strong enough to overcome our
apathy, our antipathy, our unkindness
and strong enough to unite us in a fel-
lowship and a willingness to serve the
needs of humanity.
Let us never be content with toleration,
but give us insight, understanding, and
appreciation. May we reveal love where
now there is hatred; where there is ran-
cor, may there be concord. May we lead
and lift ourselves and others into a more
radiant faith in Thy love and goodness.
In Christ's name we pray. Amen.
THURSDAY, SEPTEMBER 23, 1965
Act, and for other purposes," requests a
conference with the House on the dis-
agreeing votes of the two Houses there-
on, and appoints Mr. EASTLAND, Mr. Mc-
CLELLAN, Mr. ERVIN, Mr. KENNEDY Of
Massachusetts, Mr. HART, Mr. DIRKSEN,
Mr. FoNG, and Mr. aviTs to be the con-
ferees on the part of the Senate.
The message also announced that the
Senate insists upon its amendments to
the bill (H.R. 5688) entitled "An act re-
lating to crime and criminal procedure
In the District of Columbia," disagreed to
by the House; agrees to the conference
asked by the House on the disagreeing
votes of the two Houses thereon, and ap-
points Mr. BIB M;. MORS,E, Mr. McIN-
of New York, Mr.
TY, and Mr. Dominick
erees on the part of the
AL
of he proceedings of yes-
d and approved.
IISSAGE FROM THE SENATE
A message from the Senate by Mr. Ar-
ington, one of its clerks, announced that
the Senate had passed a bill of the fol-
lowing title, in which the concurrence of
the House is requested:
a. 587. An act to amend the Public Health
Service Act to provide for a program of grants
to assist in meeting the need for adequate
health science library services and facili-
ties.
The message also announced that the
Senate had passed, with amendments in
which the concurrence of the House is
requested, bills of the House of the fol-
lowing titles:
H.R. 2580. An act to amend the Immigra-
tion and Nationality Act, and for other pur-
poses; and
an. 9336. An act to amend title V of the
International Claims Settlement Act of 1949
relating to certain claims against the Gov-
ernment of Cuba.
The message also announced that the
Senate insists upon its amendments to
the bill (II.R, 2580) entitled "An act to
amend the Immigration and Nationality
No. 176-14
MENDING TITLE 38, UNITED
STATES CODE
Mr. TEAGUE of Texas. Mr.
Speaker, I ask unanimous consent to
take from the Speaker's desk the bill
(S. 2127) to amend title 38, United States
Code, in order to PrOVitte sped-a-M/17
.aetnnity insurance for members of the
rmi g n corn ? a zones,
urposes, With- a Sentrte
amendment to amendment,
and concur therein.
The Clerk read the title of the bill.
The Clerk read the Senate amendment,
as follows:
Page 17, lines 11 and 12 of the House
engrossed amendment, strike out "as a direct
result of an explosion of an instrumentality
of war; or" and insert "as a direct result of
the extra hazard of military or naval service,
as such hazard may be determined by the
Administrator; or".
The SPEAKER. Is there objection to
the request of the gentleman from
Texas?
Mr. ADAIR. Mr. Speaker, reserving
the right to object, I wonder if the gen-
tleman from Texas would give us a brief
explanation of the Senate amendment?
In advance of that I will say, Mr. Speak-
er, speaking for myself and I think for all
minority Members, we are completely in
accord with it, and that an excellent re-
sult was achieved. But I do wish the
gentleman would tell us briefly what has
happened.
Mr. TEAGUE of Texas. Mr. Speaker,
when this bill was being considered by
the House, last Monday, the case of a
young soldier was discussed. He was
killed in a vehicle which turned over on
the way back to camp from the training
area, where the young soldier had been
engaged in a training maneuver. The
question was raised whether this man
would be covered by section 3 of the
bill?the $5,000 death gratuity section.
We believed that the language used in
the bill, as reported to the House, would
cover such a case.
After the bill was passed by the House,
the Veterans' Administration informed
me that it would not cover him. So this
language merely broadens the death
graluity section.
Second, Mr. Speaker, the insurance
program represented in this legislation
is a prime example of private enterprise
combining with and cooperating with
the Federal Government in providing a
benefit to a segment of our population?
a most deserving segment, I might add.
It offers living proof that the Federal
Government and private enterprise rep-
resented by the insurance industry can
enter into a partnership with the result
of benefiting the Nation's citizens. It
is most unfortunate that we in the Con-
gress too frequently are called upon to
vote upon social reforms in which Gov-
ernment undertakes the entire program
with free enterprise stifled or being
given little opportunity to demonstrate
Its potential or its ability to solve the
problem. In this instance, it appeared
desirable to make life insurance protec-
tion available to members of the uni-
formed services. Our committee did
not respond by drafting a measure au-
thorizing a new government life insur-
ance program. Instead, the insurance
industry was consulted to see whether
or not they could solve the problem with-
out the Federal Government entering
further into the insurance business.
The Subcommittee on Insurance, as well
as the entire Committee on Veterans'
Affairs are to be commended for taking
this unprecedented step. The insurance
industry responded nobly to the call for
assistance. The result is the partner-
ship represented in the measure before
you today, with the insurance industry
issuing and underwriting the insurance
program and the Government bearing
the costs associated with extrahazard-
ous deaths. This is an excellent pro-
gram which serves to perfect a sound
structure of veterans' benefits.
Mr. ADAIR. Mr. Speaker, I should
like briefly and simply to say I do feel,
and I am sure this is the opinion of many
people as expressed when this legislation
was before the House a few days ago,
that this is first of all highly desirable
protection for the men who are now in
uniform and their families.
Mr. SAYLOR. Mr. Speaker, I rise in
support of the motion offered by the dis-
tinguished chairman of the Committee
on Veterans' Affairs to accept the Senate
amendment to S. 2127. Members will re-
call that last Monday the House amended
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24020
is Measure that passed the Senate with
$10,000 indemnity limited to men who
ed in combat. The House amendment
increased the scope of the Senate bill by
offering $10,000 worth of insurance to
every Member of the armed services, not
just those who were killed in combat.
The fact that this was a considerable im-
provement over the Senate bill is attested
to by the fact the Senate accepted the
arriendment yesterday without con-
tioverSia1 debate. The Senate amend_
nient is designed to eliminate some of the
inequities with respect to the payment of
the death gratuities for deaths occuring
between January 1, 1957, and the effec-
tive date of this bill that was brought
Out during the House 'debate on this
measure.
urge the adoption of the chairman's
motion.
The SPEAKER. Is there objection to
the request of the gentleman from Tex-
as fMr. TEAs usl?
There was no objection.
The Senate amendments were con-
Oared in-
A motion to reconsider was laid on the
table.
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zepannber 23, 1935
AMENDING SECTION 510 OF THE
MERCHANT MARINE ACT, 1936
Mr, GARMATZ submitted the follow-
ing conference report and statement on
the bill (11.R. 728) to amend section 510
of the Merchant Marine Act, 1936, which
Was Ordered to be printed:
CONFERENCE REPORT (H. REPT. No. 1085)
The committee of conference on the dia.
agreeing votes of the two Houses on the
amendment of the Senate to the bill (H.R.
728) to amend Section 510 of the Merchant
Marine Act, 1936, having Met, after full and
free conference, have agreed to recommend
and do recommend to their respective Houses
as follows:
That the House recede from its disagree -
=cut to the amendment of the Senate and
agree to the same with an amendment as
follows: In lieu of the matter proposed to be
Inserted by the Senate-amendment insert the
following:
"That (a) the first sentence of subsection
(1) of section 510 of the Merchant Marine
Act, 1936, as amended (46 U.S.C. 1160(1) ) , is
amended as follows:
"(1) By striking out 'within five years
front the date of enactment of this Act war-
built vessels (which are defined for purposes
of this subsection as oceangoing' and insert-
ing in lieu thereof the following: 'before July
6, 1970,'.
"(2) By striking out 'during the period
beginning September 3, 1939, and ending
September 2, 1945) ' and inserting in lieu
thereof the following: 'before September 3,
1945,'.
"(3) By inserting immediately before the
words 'owned by the United States' the fol-
lowing: '(which are defined for purposes of
this subsection as oceangoing vessels of one
thousand five hundred gross tons or over
which were constructed or contracted for by
the United States shipyards during the pe-
riod beginning September 3, 1939, and end-
ing September 2, 1945)'.
"(b) Paragraph (1) of subsection (1) of
- section 510 of the Merchant Marine Act, 19313,
as amended, is amended to read as follows:
"'(1) The traded-in vessel shall have been
owned by a citizen or citizens of the United
States, documented under the laws of the
United States, and shall not have been oper-
ated with operating-differential subsidy un-
der title VI of this Act by the applicant or
any affiliate of the applicant for at least three
year s immediately prior to the date of the
excl tange.'
"IC) Paragraph (2) of subsection (1) of
section 510 of the Merchant Marine Act, 1936,
as intended, is amended by inserting after
the period at the end thereof the following:
'The value of a vessel when traded out shall
be calculated in the same manner as its value
was determined when it was traded in, except
tha ; vessels traded in prior to October 1, 1960,
shall be valued on the basis yielding the high-
est fair return to the Government commen-
surate with the purposes of this subsection.
In each exchange of vessels under this sub-
section, the value of the vessel traded-in, un-
less based on scrap value, and the value of
the vessel traded-out shall be calculated in
the same manner.'
",11) Paragraph (9) of subsection (i) of
seci ton 510 of the Merchant Marine Act, 1936,
as amended, is amended to read as follows:
" ':(9) Except where traded out for use ex-
clutively in trade and commerce on the Great
Lakes, including the Saint Lawrence River
and 'Gulf, tanker vessels may be traded out
unc er the provisions of this subsection only
for major conversions into dry cargo carriers
or liquid bulk carriers, including natural gas
carriers but excluding bulk petroleum car-
riers.'
"IEC. 2. Section 510 of the Merchant
Maine Act, 1936, is further amended by add-
ing at the end thereof the following new sub-
sectlon :
" '(j) Any vessel heretofore or hereafter
acquired under this section, or otherwise ac-
quired by the Secretary of Commerce under
an other authority shall be placed in the na-
tional defense reserve fleet established under
authority of section 11 of the Merchant Ship
Sal s Act of 1946 (50 U.S.C. App. 1744), and
she 1,2not be traded out or sold from such
resorve fleet, except as provided for in sub-
sec,ions (g) and (1) of this section. This
limitation shall not affect the rights of the
Secretary of Commerce to dispose of a ves-
sel as provided in other sections of this title
or n titles VII or XI of this Act.' "
nfl the Senate agree to the same.
EDWARD A. GARMATZ,
THOMAS L. ASHLEY,
THOMAS N. DOWNING,
WILLIAM S. MAILLIARD,
THOMAS M. PELLY,
Managers on the Part of the House.
WARREN G. IVIAcncusoN,
E. L. BARTLETT,
DANIEL t . BREWSTER,
WINSTON L. PROUTY,
PETER H. Dosersticie,
Managers on the Part of the Senate.
STATEMENT
r.lhe managers on the part of the House at
th( conference on the disagreeing votes of
'au two Houses on the amendment of the
Senate to the bill (H.R. 728) to amend the
Merchant Marine Act, 1936, as amended, to
brcaden the vessel exchange provisions of
section 510 of the act, to extend such pro-
vis .ons for an additional 5 years, and for
other purposes, submit the following state-
ment In explanation of the effect of the ac-
tion agreed upon by the conferees and rec-
ommended in the accompanying conference
ret ort:
11e Senate amendment struck out all of
the House bill after the enacting clause and
int erted a substitute text.
'Tate committee of conference recommends
that the House recede from its disagreement
to the amendment of the Senate with an
air endment which is a substitute for both
tint text of the House bill and the text of the
Scutte amendment and that the Senate
agebe to the same.
Axcept for clerical and minor drafting
eh tnges, the differences between the Senate
an einiment and the substitute agreed to in
coiference are noted below.
Section 4 of the: Senate amendment
amended paragraph (3) of subsection 510(i)
of the Merchant Marine Act of 1936, as
amended, by providing that: "The value of
a vessel when traded out shall be calculated
in the same manner as its value was deter-
mined when it was traded in."
No comparable provision appeared in the
House bill.
The House receded from its disagreement
to this provision of the Senate amendment,
countering with a substitute. It was this
substitute which was accepted, serving to
amend paragraph (2) of subsection 510(1)
of the Merchant Marine Act of 1936, as
amended, which will read as follows:
"(2) The value of the 'vessel when traded
out shall be calculated in the same manner
as its value was determined when it was
traded in, except vessels traded in prior to
October 1, 1960, shall be calculated on the
basis yielding the highest fair return to the
Government commensurate with the pur-
poses of this subsection. In each exchange
of vessels under this subsection, the Value
of the vessel traded in, unless based on scrap
value, and the value of the vessel traded out
shall be calculated in the same manner."
It is not intended that this amendment
will affect the present law concerning the val-
uation of vessels of the military type, as
provided for in paragraph (3) of subsection
510(1). of the Merchant Marine Act of 1936,
as amended.
Section 1(c) of the House bill amended
paragraph (9) of subsection 510(1) of the
Merchant Marine Act of 1936, as amended,
so as to remove the absolute prohibition
against trading out tanker vessels, subject to
certain conditions. Section 3 of the Senate
bill provided for a similar amendment re-
[moving the absolute prohibition against
trading out tanker vessels. The position of
the managers on the part of the House was
that the 'Senate version was not sufficiently
definitive since it provided that:
"(9) Tanker vessels may be traded out
under the provisions of this subsection only
for nontanker use."
But failed to adequately define "non-
tanker use."
Section 1(c) of the House bill, on the other
hand, provided that:
"(9) Tanker vessels may be traded out
under the provisions of this subsection only
for conversion into dry bulk carriers to be
operated only in the domestic trades, except
where traded out for use exclusively in trade
and commerce on the Great Lakes, includ-
ing the Saint Lawrence River and Gulf. No
tanker vessel so traded out, or any part
thereof, shall be used in the construction or
reconstrnetion of a vessel."
The House receded from its provision re-
stricting the operation of such tanker ves-
sels to the dometsic trades. The Senate
agreed to the inclusion of the exception for
the Great Lakes. There was mutual agree-
ment to delete the restriction in the last
sentence of the House version barring the
use of such tanker vessels for the construc-
tion or reconstruction of a vessel.
The following language was agreed upon
as an amendment to paragraph (9) of sub-
section 510(1) of the Merchant Marine Act of
1936, as amended:
"(9) Except where traded out for use ex-
clusively in trade and commerce on the
Great Lakes, including the Saint Lawrence
River and Gulf, tanker vessels may be traded
out under the provisions of this subsection
only for major conversion into dry cargo car-
riers or liquid bulk carriers, including nat-
ural gas' carriers but excluding bulk petro-
leum carriers."
The language "for major conversion into
dry cargo, carriers or liquid bulk carriers,
including natural gas carriers but excluding
bulk petroleum carriers," was agreed upon in
recognition of technological changes within
the maritime industry. Under this pro-
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_
eptem%ber 2, 19d- 5 CONGRESSIONAL RECORD -- HO"uSE
- When PresikcleAr Johneoft stoke out re-
cently against the blot created on the U.S.
landscape by overhead utility lines, AOPA
and Most light plane pilots were quick to
agree 'that Soinathing should be done to rid
the Skies Of the growing maze of those
strands, 13 ut the reasons for ridding power-
lines from view were Vastly different.
To President jOhnaon and the architects
concerned with the esthetic aspects of his
Great Society, shake strung powerlines are
distasteful. because of the unsightly mar
they place abovS the rocks and rills. To the
light plane user they represent a too fre-
quently unsighted hazard to life and limb.
The number of pilots who have found
themselves ensnared by power or telephone
lines before crashing to death or injury over
the years cannot be easily calculated, but
it is no Mean number. Those who have un-
? dergone the heartstopping experience of col-
liding with the unseen but death-laden
cords on takeoff or landing and who have
lived to recount that terrifying instant can
be round at an airport. Statistically, the
powerline problem? deserves more than pass-
ingnotice. ?
Ill the most recent 2 years for which cora-
? plete reported figures are available (1962-63).
CAB records show that 293 planes collided
with utility lines or poles. These accidents
resulted in 66 deaths and 72 serious injuries,
destruction of 129 aircraft and substantial
'
damage to 164. Although CAB's figures
show that the majority of these accidents
occurred in flight?indicating that they may
have been the result of agricultural opera-
tions, or unwarranted low ftying?a review
of specific accident reports reflects that a
Sizable percentage of powerline entangle-
ments Oben?' during takeoff and landing
phases Offight.
It is more than a little probable that re-
pertable powefline mishaps represent only
a small portion of those that actually occur.
At a small rural airport near Washington,
D.C., for example?which, incidentally, of-
fers an excellent turf runway?nine pilots
have tangled With a four-strand pole line
that blocks one end of the runway. Only
two of those Stecidents resulted in reportable
damage or injury, but it is a safe bet that
all pilots involved emerged with a few new
gray hairs. And they have shelled out an
estimated $1,500 as a penalty for "trespass-
ing" into the Midst of those almost invisible
strands of Wire.
Since 1939, AOPA has waged a continu-
ing fight to bring about the burial or re-
moval of powerlines adjacent to airports,
but with scant success.' A study of the 1965
AOPA Airport Directory indicates that they
s,re more numerous today than ever before.
Out of approximately 8,300 hard-surface
landing places in. the 50 States, 2,366 list
utility lines or poles as runway obstructions.
Because the presence of such potential death
traps is hardly a matter to boast of, it is likely
that even more of the spidery sinews lurk
in airport approach and departure paths.
Another factor that makes that 281/2-per-
cent obstruction figure appear conservative
is the explosive infringement of suburbia
on previously rural locations of some air-
ports. Approaches and clear zones that may
have been unobstructed by manmade haz-
ards yesterday might today be liberally clut-
tered by the electrical webs that accompany
demegraphid shifts.
. In many locations, according to the Flight
? safety Foundation, farsighted and public-
Minded utility companies have marked some
iinee eisfisidered potentially dangerous to air-
Craft. tutlii. many More, the attitude seems
to be "Let the flyer beware."
? Until wires -ate iftafisecl by attention-com-
manding in
Or Made more visible by some
? proceas in Original manufacture, the founda-
tion believes, telephone and powerlines will
remain the hidden quantity capable of down-
:Jag an aircraft, sometimes as surely as if it
had been shot from the skies. In AOPA's
opinion, burial of lines in the vicinity of
airports is preferable to marking.
Depressingly, until the President's recent
fixation on natural beauty, there appeared
to be little that could be done to impede
the ivy-like spread of powerlines in the vi-
cinity of airports. A few years ago, for in-
stance, when the Potomac Electric Power
Co. announced its intention to erect a high-
voltage transmission circuit near Freeway
Airport in Mitchellville, Md., FAA's Obstruc-
tions Evaluation Branch determined that it
would constitute a definite hazard to the
more than 100 aircraft based there and to
transient traffic using the field.
Too bad, responded PEPCO, but that's the
most economical location for our line. And
that is where it went up. AOPA sought to
intercede in the case, claiming that FAA
had the authority to prevent construction of
such a hazard. FAA's Office of General Coun-
sel, however, didn't see it that way and de-
cided that nothing further could be done.
The issue of overhead powerlines as ob-
structions to airport approaches has been
a discouraging one to AOPA and other or-
ganizations in countless similar cases. In
the late 1940's AOPA mounted a fullscale
drive to eliminate the hazard by circulariz-
ing the country's leading utility companies.
It was pointed 'out that the potential disrup-
tion of service and increased maintenance
costs posed by highlines near airports should
be as distasteful to utility company offi-
cials as the hazard created by such struc-
tures was to the general aviation industry.
Only in rare instances were those pleas even
acknowledged by the omnipotent utility
company czars.
When?as happened more than infre-
quently?one of the metal webs claimed the
life of an airman or put his plane out of op-
eration, AOPA flooded the community con-
cerned with posters, boldly captioned: "Bury
the wires * * * not the pilot."
In a few cases such postmortem, graphic
pleas resulted in aroused public indignation
that drove the powerlines underground or
to new locations. All too frequently, how-
ever, the campaign met with more powerful
propaganda from the utility companies and
public indifference on the part of all except
family and friends of the departed pilots.
The question of legal liability in collisions
with powerlines is becoming more unsettled
as increasing numbers of such accidents oc-
cur. A few years ago, the pilot was generally
held liable for any damage inflicted on the
metal threads. Wear and tear on him and his
plane were unfortunate but not compensable
through the courts, because obviously he was
the trespasser who violated the stationary
and therefore innocent powerline.
More recently, however, the scale of justice
seems to have tilted the other way. Two Cali-
fornia cases tested the theory of "absolute
liability," meaning the pilot must pay for
damage to powerlines, regardless of circum-
stances. In one of these cases, the power
company sued to collect damages from a pilot
who had struck its line. The court refused
to render such a decision, pointing out that it
was. up to the utility company to prove to
the court's satisfaction that destruction of
the wires was caused by negligence of the
pilot.
Insurance companies have pointed to that
ruling with increased regularity and almost
uniform effect in States that are not saddled
with "absolute liability" statutes. In those
States in which such outmoded laws still
exist, strong efforts are being made to remove
them from the books.
Through the continuing efforts of AOPA
and others, the Federal Power Commission
appears to have reluctantly faced up to the
extent of the problem and the need to do
something about it, even before the Presi-
dent's pronouncement on natural beauty. In
- 23827
its two-volume National Power Survey 1964,
the Commission acknowledged that "Public
insistence for placing (power) lines under-
ground is increasing. Remarkable strides are
being made toward reducing the cost of un-
derground facilities. On one system, the ex-
tra cost in new (housing) developments as
compared with overhead service is one-fifth
the excess cost required in 1947."
Earlier an advisory committee to the FPC
had claimed peevishly: "For appearance rea-
sons, utilities are being subjected to increas-
ing_ pressures to place their facilities in un-
economic locations, to install them under-
ground, or to use more costly types of above-
ground construction. If they are to continue
in the future to supply adequate and reliable
service at low rates, solutions must be found
to this problem.
"On the part of public authorities this re-
quires that they recognize the public interest
in the economical distribution of electricity
and resist the pressures from minority
groups and snecial interests to force utilities
to use uneconomical locations and forms of
construction."
In another portion of the National Power
Survey 1964, it is stated: "In some circum-
stances buried cables are advantageous, but
the usual cost is 5 to 10 times that of over-
head circuits.
"Likewise, there are technical limitations
on the use of high voltage underground
cables * * ? and it is uncertain as to
whether present technologies allow for ade-
quate insulation at ? ? high voltages."
Nonsense, says Stanley Hiller, Sr., of
Berkeley, Calif. An aviation pioneer who
built his first plane in 1910, a noted business
leader and inventor, he has waged a long
and bitter feud with utility companies that
claim underground transmission and distri-
bution of electricity is more costly and prob-
lem-laden than overhead lines. To the con-
trary, Hiller said, underground cables can be
laid at just two-thirds the cost and in one-
third of the installation time for all utilities
that overhead systems require. And the
state of cable protection technology today
is such that continuing maintenance costs
will be greatly reduced by underground in-
stallation.
After retiring from the business world
some years ago, Hiller decided to develop
family land on the hills overlooking Oakland.
Calif., as a housing area. He was adamant
that the view of San Francisco Bay and sur-
rounding cities would not be marred by un-
sightly powerlines and devised a system to
consolidate utility cables underground. He
set up a corporation, Coordinated Utilities,
that provides installation franchises and
engineering consultation on the subject.
Since 1962, he has spoken widely on his
single-trench system, with winning results.
COmmunity planners in various parts of the
country are beginning to awaken to the fact
that they have been hoodwinked for years
by the power lobby's pressure tactics and
reluctance to change.
When Presidenet Johnson last February
delivered to Congress his message on
preservation of natural beauty, the previously
impervious power trust was shocked to its
highest strands. He announced his inten-
tion of calling a White House Conference on
Natural Beauty in mid-May, one subject of
which would be discussion in depth of under-
ground installation of utility transmission
lines.
"It is my hope that this conference will
produce new ideas and approaches for en-
hancing the beauty of America," Johnson
said. "It will look for ways to help and
encourage State and local government, in-
stitutions and private citizens, in their own
efforts. It can serve as the focal point for the
large campaign of public education which is
needed to alert Americans to the danger
to their natural heritage and to the need for
action."
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Approved For 'Re
CO?i9RESSIONAL ItECORD 7-- HOUSE September 22, 1965
us t recently, Johnson got the opportunity
eXemine the other, side of the coin?that
the hazard posed to flying by powerlines.
,Mid-July, a military helicopter making a
ormaissanCe flight over the area around
he Weekend White House at Johnson City,
ex., preceding the President's arrival, hit
powerline anti crashed. A Secret Service
man aboard the 'copter was uninjured, but
the pilot and copilot sustained minor in-
, juries end Ate craft was washed out.
The President's pitch for scenic beauty
alone was,enough to command rapid action.
In May, Federal Power Commissioner Joseph
SWidiel; announced the establishment of
a national power survey industry advisory
committee on underground transmission.
The committee, comprised of representatives
from 10 public utilities companies, was
charged with investigating and preparing a
rep:Sit on the .",state of the art" of under-
ground transmission.. Its report, to be com-
pleted within the next 2 years, is supposed
tO include an outline of the technical and
economic problems involved; progress in
Overcoming those problems; and recommend-
ations for accelerating research and develop-
ment on the subject.
An argument put up by the power com-
panies against undergrounding of utilities
Is that not enough research has yet been
done to prove that underground transmission
is either economically or technologically
feasible. Yet, interestingly, a recent con-
ference of the Institute of Electrical and
Electronic Engineers brought forth some 25
separate papers dealing with recent progress
In Anciergrounding of utilities.
?haired by Harold A. Peterson, head of
University of Wisconsin Electrical Engin
Mg Department, the committee held its
Meeting on May 19. Task groups were
igriated to report at a second meetin
JUne 23 on preliminary data being collec d
for an initial report, due to be drafted th s
month. Unfortunately, according to sources
within the FEV, the early blush of enthusi-
asm that attended the urge to preserve nat-
ural beauty already seems to have lost much
Of its luster. ,
FPC employees who staff the project re-
portedly regard it as a low-priority item and
expect the report--if and when it is com-
pleted?to merely gather dust on obscure
library shelves.
With an opportunity presented now for
the first time of possibly throttling the
Unbridled spread of these raanstrung tend-
ons of potential aeronautical disaster, AOPA
is taking a firm stand behind the preserva-
tion of natural beauty through elimination
of overhead power lines. The lives, health
and planes of general aviation pilots that
may also be preserved or lengthened through
such action are more than just incidental.
ars, fishermen, and herdsmen, Mali has
1}egun to tackle the long climb toward
modernization. Long self-sufficient agri-
culturally, Mali has begun new efforts,
through the Office du Niger, to intensify
cultivation and increase the stock of
those agricultural surpluses that will en-
Elale her to build an effective local food
processing industry.
Although she is making a concerted
Effort to build the industrial sector of her
economy as well, it is to the credit of the
Republic of Mali that economic growth
as been expressed in terms of increasing
tie prosperity and well-being of the
Malian people. In fact, in the realm of
labor legislation and social welfare,
Mali's accomplishments are equal to
those of many nations which would oth-
erwise be considered much more de-
veloped.
Although it has only been 5 years since
tl e people of Mali received their inde-
pendence from France, the efforts that
ey have already made, socially as well
as economically, emonstrate that they
ry resolution to make
ition to modernization.
e for me to extend my
ions to the Republic of Mali
fth anniversary of her inde-
pcesess the
the di cui
It
CO ra
on thi
p rid e.
? CONGRATULATIONS TO THE RE-
PUBLIC OF MALI ON ITS INDE-
PENDENCE DAY
(Mr. MATSUNAGA (at the request of
Mr. JAcoss) was granted permission to
extend his remarks at this point in the
REcoao and to include extraneous mat-
ter,)
Mr. MATSUNAGA. Mr. Speaker, the
Republic of Mali celebrates the fifth an-
niversary of its independence on the 22d
of September.
This vast landlocked country, located
in the heart of former French West
Africa, is a nation of brave and inde-
pendent peoples who can trace their an-
cestries back to the great Mali Empire of
the 13th century.
Once a quiet pastoral nation of farm-
3ILL TO ESTABLISH ACADEMY
ON FOREIGN AFFAIRS
Mr. WHITE of Texas (at the request
of Mr. JACOBS) was granted permission
to xtend his remarks at this point in the
RE ::01113 and to include extraneous mat-
ter)
Mr. WHITE of Texas. Mr. Speaker, I
have just introduced a bill to establish
an Academy of Foreign Affairs for the
Un: ted States. In this increasingly coin-
Pie: i world, virtually every department of
Go,rernment is concerned with foreign
affe irs in some way. With our world-
wide mission of promoting peace and Jus-
tice, of aiding other nations of the world
to become self-sustaining and inde-
pen lent, it is essential that we have a
well trained diplomatic force. It is also
essential that we have an institution
where we can coordinate the advanced
studies of our foremost educational in-
stitttions in the field of foreign affairs.
The Academy of Foreign Affairs, with its
college and graduate school is intended
to provide these services to the Nation.
My bill should make the Foreign Service
of our Nation a highly respected career,
to bit eagerly sought, with years of stu-
dioul preparation.
TI roughout much of modern history,
Great Britain and France have been ad-
mire.' and envied for their diplomacy.
Even when we may have disagreed with
their motives, we have admired their dip-
lomatic skills. Mr. Speaker, the bill I
have just introduced is intended to give
the *United States of America diplomatic
education second to none, and a grow-
ing tradition of high attainments of
scholarship in the affairs of nations.
I u ould respectfully urge the earnest
atten ;Ion of my colleagues to this press-
ing problem.
MEANINGFUL HOME RULE FOR THE
DISTRICT OF COLUMBIA
The SPEAKER. Under previous order
of the House the gentleman from New
York [Mr. MIMEO is recognized for 20
minutes.
(Mr. MULTER asked and was given
permission to revise and extend his re-
marks, and to include extraneous mat-
ter.)
Mr. MULTER, Mr. Speaker, as the
Members of the House well know, for
many long days and hours the gentle-
man from New York [Mr. Hoarobil , the
gentleman from Maryland [Mr. MA-
THIAS] , the gentleman from Maryland
[Mr. SicKLEs] , and I have been engaged
in a bipartisan effort to bring to the Dis-
trict of Columbia home rule which will be
meaningful home rule to the District.
We have just introduced a bill which
we believe accomplishes that purpose
and meets most of if not all of the objec-
tions raised to the bill due to be called
up on Monday next. At that time I will
offer the bill introduced today as an
amendment. I urge all of our colleagues
to read the bill and acquaint themselves
with its terms. We will in the meantime
send to each Member a brief explanation
Outlining the changes.
CALL OF THE HOUSE
Mr. WAGGONNER. Mr. Speaker, I
make the point of order that a quorum is
not present.
The SPEAKER. Evidently a quorum
is not present.
Mr. ALBERT. Mr. Speaker, I move a
call of the House.
A call of the House was ordered.
The Clerk called the roll and the fol-
lowing Members failed to answer to their
names:
Abbitt
Abernethy
Anderson, Ill.
Andrews,
George W.
Ashley
Baldwin
Baring
Battin
Belcher
Berry
Betts
Blatnik
Bolling
Bolton
Bonner
Bow
Brock
Broomfield
Broyhill, N.C.
Burton, Utah
Cahill
Casey
Clark
Clausen,
Don H.
Calmer
Conyers
Curtis
Denton
Diggs
Dowdy
Duncan, Oreg.
Edwards, Calif.
Erlenborn
Everett
Eying, Tenn.
Farnsley
Farnum
Findley
Vino
Fisher
[Roll No. 317]
Ford, Gerald R. Moorhead
Frelinghuysen Morris
Fulton, Tenn. Morton
Goodell Murray
Griffin Nix
Griffiths O'Brien
Gubser O'Hara, Ill.
Halleck O'Neal, Ga.
Hanna Ottinger
Hansen, Wash. Passman
Harris Patman
Harsha Pool
Harvey, Ind.
Herlong
Hicks
Holifield
Holland
Hosmer
Howard
Joelson
Johnson, Okla.
Jonas
Jones, Ala.
King, N.Y.
Kluczynski
Landrum
Latta
Lindsay
Lipscomb
Long, Md.
McClory
McEwen
McFall
McMillan
Machen
Mackie
Martin, Ala.
Martin, Mass.
Martin, Nebr.
Miller
Mize
Moeller
Powell
Price
Reid, N.Y.
Resnick
Rogers, Tex.
Roosevelt
Ryan
Schweiker
Scott
Senner
Smith, Calif.
Smith, Va.
Stalbaum
Steed
Stephens
Teague, Calif.
Teague, Tex.
Thomas
Thompson, Tex,
Thomson, Wis.
Toll
Tupper
Udall
Utt
Vivian
Walker, N. Mex.
Whitten
Widnall
Wilson,
Charles H.
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