LOAN OF NAVAL VESSELS TO FRIENDLY FOREIGN COUNTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500260008-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: September 22, 2003
• Sequence Number: 8
• Publication Date: September 27, 1965
• Content Type: OPEN

damnation of qny statua?_duly enacted dV
the legislature of Mioliigan orany other
State, what they do is their business-
not mine.
I do not wlghh to provoke Mr, FARNUai
Into attacking other State laws on this
subject. However, for his enlightenment
I Invite his attention to a rule of law
established by the courts of New Jersey
in a decision involving that State's statu-
tory requirements for nonresident tui-
tion. In Mansfield Township Board of
Education against State Board of Edu-
cation, the court held:
Public policy forbids admission in public
schools of pupils from other States, and
whose parents reside there, to be educated
at expense of local taxpayers, irrespective of
length of time pupils have been living in
State with friends or relatives, of as pupilsin
private schools.
Even the Nation's Capital requires tui-
tion of` nonresidents. Congress passed
such a law for the_,District et Columbia
In 1900. Public Law 86-725 requires pay-
ment to the board of education of tui-
tion for each child who attends a public
school, and does not have a parent or
guardian who resides in thebistrict of
Columbia. Orphans are exempted
Somehow, Mr. FARNUI:I neglected to di-
sect his indignation toward thelggisla-
Lure of Michigan or the U.S. Congress for
doing much earlier the same thing the
Mississippi Legislature has done.
Mr. FARNUM failed to tell the House
that a total of 23 States have laws on
this subject. _ They ,are: Arizona, Con
ileeticut, Florida, Iowa, Kentucky, Mas-
eachusetts, Michigan, Montana, Ne-
braska, New Jersey, New Mexico, New
York, North Dakota, Ohio, Oklahoma,
Oregon, South Dakota, Tennessee, Utah,
Vermont, Virginia, Wisconsin, and Mis-
sissippi.
Many States have wrestled with the.
problem of providing an education to
children whose parents do not pay taxes
In the State. Mississippi spends more of
Its income on education than any other
State. Because Mississippi has the lowest
per capita Income of all the States, we
have to stretch our tax dollar as far as
possible. Every citizen must bear his
share of the, burden,. parents w}ioprefer
to live In another State without their
children should have no misgivings over
contributing to the education of their
children, It Is their rpgponsibility.
The Mississippi Legislature_needs_no
defense from me. The Michigan Legis-
lature, in its wisdom has passed judg-
ment on this matter and it, should he
subject to the same criticism as the other
22 States which have acted on this sub-
ject matter.'
The people of Mississippi welcome
honest and constructive criticism.How-
ever, we dislike being scorned in such a
manner wherein it is,made to appear that
Mississippi alone requires tuition from
nonresidents. Describing Mississippi's
law a "extraordinary" is quite mislead-
ing, and Is an Injustice to a State of this
LOAN OF NAVAL VESSELS TO
FRIENDLY. FOREIGN COUNTRIES
Mr. RIVERS of South Carolina. Mr.
Speaker, I ask unanimous consent to take
from the Speaker's table the bill (H.R.
7812) to authorize the loan of naval ves-
sels to friendly foreign countries, and
for other purposes, with a Senate amend-
ment thereto, disagree to the amend-
ment and ask for a conference with the
Senate.
The SPEAKER. Is there objection to
the request of the gentleman from South
Carolina?
The Chair hears none, and appoints
the following conferees: Messrs. RIVERS
of South Carolina, PHILBIN, PRICE,
FISHER, BATES, and ARENDS.
eiency Is the strongest bulwark for the
assurance of peace in the free world.
Too often a devoted and dedicated
public servant slips quietly out of the
limelight and into the anonymity of pri-
vate life without notice or recognition of
his fine contribution- to the public wel-
fare. In the case of Eugene Zuckert we
of the House of Representatives want
him to know that we recognize and
deeply appreciate the many contribu-
tions he has made in his public service.
Likewise, we appreciate him as a friend
who has shown patience and under-
standing of our problems as Members of
Congress. It is indeed with heartfelt
thanks that we say goodby to you, Gene.
HON. EUGENE M. ZUCKERT, SECRE-
TARY OF THE AIR FORCE
(Mr. ROGERS of Colorado asked and
was given permission to address the
House for 1 minute and to revise and
extend his remarks.)
Mr. ROGERS of Colorado, Mr.
Speaker, on September 17, the Air Force
Association sponsored a banquet com-
memorating the 18th anniversary of the
creation of the U.S. Air Force as a sepa-
rate branch of our Armed Forces. The
honored guest on that occasion was the
Honorable Eugene M. Zuckert, who on
September 30 will have completed 4
Years, 8 months, and 8 days as Secretary
of the Air Force. He will have served
for a longer period of time in that post
than has any Secretary before him. I
believe also that within recent time, this
will constitute a record of continuous
service as the civilian leader of any of
the military services.
On the occasion of the anniversary
banquet to which I have referred, the
Vice President of the United States paid
the following tribute to Gene Zuckert:
It is fitting and proper that you are honor-
ing a great man a dedicated public serv-
ant-our departing secretary of the Air
Force-who has worked with such distinc-
tion-my friend, Gene Zuckert. He has
served and led the Air Force with outstand-
ing devotion and brilliance during times of
stress, of change, and of challenge. This
country is indebted to him for his leader-
ship. We wish him well and Godspeed in the
years ahead.
Mr. Speaker, I wish to identify myself
with the Vice President in this tribute to
my friend, Eugene Zuckert, and I am
sure that my colleagues in this House
join me in this tribute and in wishing
him "Godspeed in the years ahead,"
Eugene Zuckert has spent most of the
years of his adult life in the public serv-
ice. He was the strong right arm of the
first Secretary of the Air Force and now
the senior Senator from Missouri, Sen-
ator STUART SYMINGTON. As assistant
Secretary, he helped formulate and mold
the policies that have guided the Air
Force in its formative years and in its
maturity. As a member of the Atomic
,Fw,nergy Commission, he exemplified the
Me .tutul&,. I_hgpe the gentleman highest type of devotion to his. country in
LO?1, St,GAlfgalt vfitl, i.SQ1QS,q?t~hc_full gtgry his performance of his duties as a mem-
before attempting arbitrarily to single her of that great Commission,
: As Secre-
..
out one State as a scapegoat for a polit- tary of the Air Force, he leaves us with a son given by administration officials for
ical tirade. , global Air Force whose high state of effi- fallbng totreflect_.the market?demand to
A WHIPPED PUP
(Mr. HARSHA (at the request of Mr.
HORTON) was granted permission to ex-
tend his remarks at this point in the
RECORD and to include extraneous
matter.)
Mr. HARSHA. Mr. Speaker, President
Johnson's concession to Panama and ab-
rogation of the 1903 treaty by granting
Panama sovereignty over the Canal Zone
is indeed a severe blow to the prestige of
this Nation,
The U.S. Government has completely
capitulated to the demands of Panama
concerning the canal and we have come
home from the so-called negotiations like
a whipped pup with its tail between its
legs.
The country of Panama owes its en-
tire existence to the United States and
we have continually given friendship and
economic support to it.
The grant by Panama to the United
States of exclusive sovereignty over the
Canal Zone in perpetuity for Construc-
tion of the canal and its perpetual main-
tenance, operation, and protection was
an absolute, indispensable condition
precedent to the great task undertaken
by the United States, and the United
States has fully performed Its respon-
sibilities under the treaty of 1903.
Therefore, there was nothing to nego-
tiate, and this country should have stood
firm; instead the United States capitu-
lated.
This Nation has paid Panama the full
indemnity and annuities agreed upon by
the two nations, has completely carried
out the terms of the treaty, and stands
on firm moral and legal footing in this
dispute, and under no circumstances
should it have conceded to the Commu-
nist-inspired demands of Panama.
How do we- expect other nations to
have any respect for the United States
when we do not even have enough self-
respect to stand firm when we are on
solid, legal, and moral footing?
HIGHER INTEREST RATES DO NOT
DAMPEN BUSINESS EXPANSION
(Mr. CURTIS (at the request of Mr.
HORTON) was granted permission to ex-
tend his remarks at this point in the
RECOan and to include extraneous mat-
ter.)
 Ri i%ved For Release 200311 ~l r`4? Of r6~ 500 1 September 27, 1995,
tighten interest rates in the United States, borrow through. the international facilities For example, as leading commentators
and so alleviate our international bal- of U.S. investment bankers than it is to float have observed, it now is no longer possible
ance-of-payments problems-As that new issues at home. An example was the to cite the stability of the Bureau of Labor
higher rates Would inevitably curb busi- $55 million private placement that BP Statistics wholesale commodity index and
Hess plans for investment and thus lead North American Finance Corp., subsidiary ask where is in the inflation. This index
to a leveling off even a recession 1 of British Petroleum, arranged here about broke out on the upside in July to rise to
in the same time that Standard Oil of Indiana's 102.9, against 100.4 12 months earlier, up
the U.S. economy. An article in the subsidiary was arranging for $25 million for- some 2i/2 percent, after rocking along with
September 22, 1965, Journal of Com- eign money, only minor changes since 1958. Contributing
merce calls this theory into question, The British Petroleum subsidiary, on notes to the overall rise of 2% percent was a jump
The voluntary program for restraint repayable from 1971-85, paid 5% percent in- in farm products of some 6.3 percent. In the
of U.S. foreign lendin and investin 1ri terest. Since U.S. Investors Were subject to 5 months since last February the increase in
g g the U.S. interest equalization tax, it is pre- the total index has not been 21/2 percent but
context with the compulsory restraints Burned that much of the Issue was placed more than 3 percent.
in the interest equalization tax law calls with foreign Institutions or U.S. subsidiaries If other evidence Is needed of the rebirth
upon American companies operating of foreign organizations. It appears that of Inflation, look at bank credit. While the
abroad to borrow overseas instead of in British Petroleum got its funds here cheaper advance in bank loans and Investments in
the United States. The cost of borrow, than the U.S. oil company got funds abroad. the second quarter was not quite as rapid as
ing abroad is at least 20 percent more Up to now the capacity of foreign capital was the 12.4 percent increase In the first 3
than in the United States, and maybe as markets has been but a small fraction of months, it was well above the average of
ch as 50 percent more. In spite of that of the U.S. capital market. Foreign the past 4 years and for the 6 months aver-
much higher percent m corporations more. In spit are Issues In Europe last year were about aged around 11 percent, against the 8 percent
the go r rat s price. The fact arf that $1 billion and are likely to be less this annual rate of recent years.
willing year. What is significant, economists have noted,
American corporations are borrowing is that what rise In bank credit has occurred
abroad at these higher rates is an excel- has been in the face of a more restrictive
lent demonstration that high money rates PORTENTS OF INFLATION Federal Reserve policy which has kept banks
are not necessarily harmful and not (Mr. CURTIS (at the request of Mr. almost continually operating on reserves bor-
much feared by larger companies. Un- HORTON) was granted permission to ex- rowed from the Reserve system.
sal Reserve particularly watches
_ der unanimous consent, I include the tend his remarks at this point in the rice trends and some
article from the Journal of Commerce in RECORD and to include extraneous mdeade that t the ceuml is can be
m average price level going to
the R,eooap'at this point: matter.) advance still further ther and more rapidly. It
CORPORATE FINANCE: MONEY ABROAD Is WORTH Mr. CURTIS, Mr. Speaker, in an has been forecast that steel mills, in the
Cost editorial on September 22, 1965, the wake of the wage contract settlement that
(By Ed Tyng) Journal of Commerce Suggested that the President has held to be noninflationary,
Financing expansion abroad by borrowing within the very near future, signs Of will be slow and selective in increasing their
overseas instead of in the United States, such burgeoning Inflation will be more ob- prices. But padre of steel where wage rates
as Is encouraged by the voluntary program violas than they are now. The Journal are largely conditioned by the -
crease, have indicated that they hey will will in ln-
for restraint upon U.S. foreign lending and noted that between July 1964, and July crease prices.
investing, costs considerably more, but most 1965, the wholesale price index rose by Then there is the possible effects of the
businesses will gladly pay.
This cost is at least 20 percent more, ex- 2.5 percent. Since February 1965, the Vietnam war. One leading economist, Rob-
pressed in interest rates, may be as much Be increase in the index has been more ert Van Cleave, has made the point that up
50 percent more and in time may go still than 3 percent. to July Vietnam played no part in what signs
higher if there is any flooding of European Other evidence of the rebirth of in- of inflation have since become visible, for as
capital markets, which have limited capacity, as June worries about an economic
parity, flatten that was Cited included the sharp letdown were rife and ex-Chairman Walter
With American offerings. advance In bank credit, the Vietnam Heller of the President's Council of Economic
Incidentally, the willingness of major cor- war, the tremendous rise in all kinds of Advisers was calling for expansionary Gov-
porations to pay Be much Be 50 percent more debt, the growing liquidity of honbank erment policies for 1966.
interest cost on debt created abroad to an lenders and the persistent rise in per- But now the outlook has greatly changed:
excellent demonstration that high money sonal income. Vietnam seems likely to cost a minimum of $3
rates are not necessarily harmful and are
not much feared by larger companies. In the light of these inflations ten- billion and maybe much more by the time
COMPARATIVE aATea dencies in the economy, the Journal be- supplemental appropriations areasked for
next January.
A good example of what a high-credit U.S. lieves that it is increasingly difficult to There will be strains in providing both
company has to pay for foreign money is see how there can be much more justi-
fication for keeping Interest rates as easy and butter. And fighter planes which
the coming Issue of $25 million of bonds due Y coat $60,000 each each In World ld War II, as Senator
in 1985 by the Luxembourg subsidiary of the as they are now through Government Russzar. has noted, now cost $3 million each.
Standard On Co. of Indiana. This Issue, by intervention. This is particularly true They are being lost quite regularly. In short,
AMCO Oil Holdings, S.A., will bear a coupon in view of the evidence that the U.S. price levels must soon reflect war and any
rate of 5s/y percent. On the basis of recent balance of payments is worsening again increased Government budget deficit will be,
yields in the U.S. corporate bond. market it after a brief improvement in the second overall, inflationary.
is probable that Standard Oil of Indiana quarter. What is ahead in the way of stability,
could have easily obtained $25 million here which up to now has Justified too easy money
at, say, 4% percent. To illustrate how much our interest and expansionary Federal policies, promises
A recent Dun & Bradstreet survey of 300 the are Journal out of line with those in Europe, to be only relative stability in the sense that
top ranking corporation executives appear- the cited the ability of an Euro- our inflation may be kept less than that in
ing in September Dun's Review showed no pean oil company to borrow here, de- other nations. But It will still be inflation.
Concern over the higher coat of foreign spite the interest equalization tax, at 5.5 So it is Increasingly difficult to see how
money, Which would not be a barrier except percent, while at the same time an there can be much longer justification for
for marginal operations where profits were American oil company, loyally cooperat- keeping money rates Be easy as they are,
narrow. Borrowing Is much preferred to Ing with the foreign loan restraint pro- Particularly now that there is ample evi-
other ways of raising funds such as, for ex-
ample. the Bale of minority interests in stock gram, floated a loan in Europe at 5.75 dance that the U.S. balance of payments is
of an American company, some executives editorial referred to from the Journal How much out of line are our short-term
money rates has been shown, not only
feel, can produce legal and pricing problems. of Commerce in the RECORD at this point: through comparisons with those in Europe-
Nor is there much enthusiasm, overall, for PORTENTS OF INFLATION including the advance in Euro-dollar in-
pulling back to this Country, foreign subsidi- Fundamental economic trends still are In- terest rates-but also in the persistent ad-
aries' earnings in the form of dividends. conclusive enough to permit argument about vance in some of our own short-term money
This has been encouraged under the re- whether inflation is here again or whether rates to the highest in 5 years. Another
straint program but it, runs counter to the it isn't. We are almost willing to concede illustration recently was afforded by the
widespread feeling that most earnings of that within the very near future signs of ability of a European oil company to borrow
foreign subsidiaries should be reinvested in burgeoning inflation wil be more obvious here despite the equalization tax at 5% per-
the foreign sphere if the foreign operation than they now are and that they may even cent, while at the same time an American
is to prosper and keep up with competitors. become sufficiently evident to convince a re- oil company, loyally cooperating with the
For large amounts of money foreign cor- luctant Federal Reserve Board that it better foreign loan restraint program, floated a
porations often find that it is ches r to act. Europe at 5% a percent.
Approved For Release 20010/15 CIA-RDP67B00446R000500260dbW-r