FOREIGN ASSISTANCE ACT OF 1965

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June 10, 1965
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Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 June 10, 1965 CONGRESSIONAL RECORD - SENATE The bill was ordered to be engrossed for a third reading, was read the third time, and passed. Mr. JAVITS. Mr. President, I move to reconsider the vote by which the bill was passed. Mr. PELL. Mr. President, I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. PELL. Mr. President, I wish to express my delight and joy that the bill has passed. When we look back in his- toric perspective 10 or 15 years from now, we shall realize that the proposed legislation is one of the milestones of these yers. Mr. MANSFIELD. I wish to express my deep appreciation to the distin- guished Senator from Rhode Island [Mr. PELL, the distinguished Senators from New York [Mr. JAVITS and Mr. KEN- NEDY], distinguished Senators from Cali- fornia [Mr. KUCHEL and Mr. MURPHY], the distinguished Senator from Alaska [Mr. GRUENING], the distinguished Sena- tor from Texas [Mr. YARBOROUGH] and all other Senators who have contributed to the introduction and the passage of this bill. The National Foundation on the Arts and the Humanities is a mile- stone and a step in right direction. Mr. WILLIAMS of New Jersey. Mr. President, I express my great pleasure at the action of the Senate this afternoon in passing S. 1483, the arts and humani- ties bill. This bill has benefited from the long-term interest and dedicated support of Senator JAVITS. Our able colleague, Senator PELL, introduced this year's ver- sion of the bill, and conducted lengthy hearings on it before his Special Sub- committee on Arts and Humanities. During the course of the hearings, many constructive and useful suggestions were made for improving the bill. Under the imaginative leadership of Senator PELL, and with the aid of his hard-working staff, the subcommittee reported the ex- cellent version of the bill which we have passed today. As a member of the full Committee on Labor and Public Welfare, and as a co- sponsor of this legislation, I was partic- ularly gratified to see its speedy enact- ment after final approval by our com- mittee. I think the bill will provide a vitally needed stimulus for all the branches of the arts and humanities in every locality in the United States. Under the provi- sions of the bill for direct grants and loans to performing groups, as well as to students of the various humanistic dis- ciplines, I am convinced that we shall see an inspiring upsurge in activity and creativity. The passage of this bill truly marks recognition of the central impor- tance of the arts and humanities in our American culture. S. 1483 IS A LANDMARK IN THE DEVELOPING AMERICAN CIVILIZATION Mr. YARBOROUGH. Mr. President, America has ever been the great proving ground for the idea that the citizens of a nation are capable of governing them- selves, of running their own lives and of building a humane and civilized society in the process. There have been critics of democracy, and of American democ- racy in particular, who have argued that high cultural attainment is beyond our reach. They see Americans as a rather boorish lot who are concerned solely with increasing their possession of material goods. A significant portion of Americans has never accepted this judgment. Sharing Walt Whitman's vision of a great litera- ture arising from deep within the Amer- ican spirit, they have attempted to show that a democracy is capable of producing great works of art and that the whole people of the democracy will form the greatest audience that any society has ever known. Indeed, as the penetrating study of the Rockeller Panel Report on the Performing Arts points out: There have long been thoughtful people among us who believe that the ultimate test of democracy lies in the quality of the artis- tic and intellectual life It creates and supports. The action which the Senate of the United States has taken today in passing the Arts and Humanities Foundation bill is a sign that American culture, far from standing still, is pressing forward toward her appointed rendezvous with a golden age. This bill establishes a National Foun- dation on the Arts and the Humanities, consisting of a National Endowment for the Arts and a National Endowment for the Humanities. The National Endow- ment for the Arts provides matching grants to States, to nonprofit or public groups and to individuals engaged in the creative and performing arts. The Humanities Endowment provides grants and loans for research, provides fellow- ships and grants to institutions for train- ing, supports the publication of scholarly works in the humanities, and fasters un- derstanding and appreciation of the humanities. In the arts the influence of this pro- gram will have, I believe it is safe to say, a secondary influence far greater than the primary influence of the money which the Federal Government itself awards. The impetus which this pro- gram will give to private philanthropy, to State and community effort, and to per- sonal involvement of -persons who had never involved themselves in the arts before, will produce a net effect many times greater than might be expected. As a study of State arts councils by the U.S. Office of Education shows: Adequate financial stimulation of high quality art will result in enthusiastic par- tielpaition and enjoyment by large numbers of people, in greater private support and box office income, and in gradual reduction in need for subsidies. Equally important to the advancement of the American civilization is adequate support for activities in the humanities. Indeed, if any nation should be con- cerned about the humanities, that nation is the United States. This Nation was conceived in the notion that what counts most in life is that which is most human. This is what the humanities are con- cerned with. The report of the Commis- sion on the Humanities reminds us: Throughout man's conscious past they have played. an essential role in forming, preserving, and transforming the social, 12643 moral, and esthetic values of every man in every age. One cannot speak of history or culture apart from the humanities. They not only record our lives; our lives are the very substance they are made of. Their sub- ject is every man. * * * All men require that a vision be held before them, an ideal toward which they may strive. Americans need such a vision toward which they may strive. Americans need such a vision today as never before in their history. It is both the dignity and the duty of humanists to offer their fel- low countrymen whatever understanding can be attained by fallible humanity of such en- during values as justice, freedom, virtue, beauty, and truth. Only thus do we join our- selves to the heritage of our Nation and our human kind. In today's world, when the growth of man's understanding of technology is greater than the growth of his under- standing of his fellow man, it is vital that we pay some attention to the humanities, to that which is human and therefore common to all men. This is every bit as vital to our national defense as the bil- lions of dollars we spend every year on missiles and bombs. PROPOSED NEW LIBRARY BUILDING Mr. HARRIS. Mr. President, the Sen- ate Public Works Subcommittee on Build- ings and Grounds, chaired by Senator STEPHEN YOUNG, Democrat, of Ohio, yes- terday adopted restrictive amendments to a Senate resolution to build a new library building. The amendments adopted included taking jurisdiction over the construction from the Office of the Architect of the Capitol and placing it in the General Services Administration, a requirement for competitive bidding on construction and equipment and restricting the au- thorization to $500,000, rather than $72,- 500,000, as was proposed. The people's business ought to be han- dled in such a way as to demonstrate to them that their interests are being fully protected. That is why I made the motion to up- hold the view of our chairman, Senator YOUNG, that the construction of any new Library of Congress building should be handled by the General Services Admin- istration, which has a long and excellent record in the field of public construction. Further, I made the motion that all construction and equipment contracts on any such new building should be let only after competitive bidding, under the same procedures now applicable to other GSA contracts. I also made the motion to reject the proposal that the bill fully authorize the construction of the new building at a cost of $72,500,000 and that the authori- zation be limited to $500,000 only, for the completion of detailed plans, design, and cost estimates. The subcommittee agreed with me that we should not at this time fully authorize the construction of the build- ing, because it was not yet certain whether the land adjacent to the Library of Congress could be secured and there had been no detailed plans, design, and cost estimates made and filed with the subcommittee. By authorizing"only $500,000, as I sug- gested, the subcommittee made it clear Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 CONGRESSIONAL RECORD - SENATE June 10, 1965 that we do not intend to make any au- thorizations in the dark and without full knowledge of the facts; further author- izations for the construction of the building can be made after the full facts have been obtained, and the people. through the subcommittee, have an op- portunity to know all about the project. There is no question in my mind that the Library of Congress needs an addi- tional building and that the James Madison Memorial building is a worthy project, but I am proud that the sub- committee made it clear that we intend to see that the taxpayers' Interests are safeguarded in its construction. I intend to continue vigorously my efforts to assure that these safeguards are continued in this or any other au- thorization legislation adopted for this project by the Congress. FOREIGN ASSISTANCE ACT OF 1965 The PRESIDING OFFICER- The hour of 12 o'clock having arrived, under the unanimous-consent agreement the Chair lays before the Senate the pending business, which will be stated. The LEGISLATIVE CLER)c. A bill (S. 1837) to amend further the Foreign As- sistance Act of 1961, as amended, and for other purposes. The Senate resumed the consideration of the bill (S. 1837) to amend further the Foreign Assistance Act of 1961, as amended. and for other purposes. The PRESIDING OFFICER. Under the agreement, the Senator from Penn- sylvania [Mr. CLARK], or somone whom he might designate, will be recognized for 45 minutes. Air. CLARK Mr. President, I ask unanimous consent that the understand- ing may be changed, and that the Sena- tor from Arkansas [Mr. FULSRICITTI, chairman of the Foreign Relations Com- mittee, and the Senator in charge of the bill. may be substituted for me. The PRESIDING OFFICER- Without objection, the Senator from Arkansas will have control of the time previously designated for the Senator from Penn- sylvania [Mr. CLARK]. The Senator from Alaska [Mr. GRUEN- ING] will have control of 45 minutes of the time available. Mr. GRUENING, Mr. President. I ask unanimous consent that I may be permitted to suggest the absence of a quorum without the time necessary for the quorum call being charged to the time of either side. The PRESIDING OFFICER. Without objection, it is so ordered. Air. GRUENING. Mr. President, I sue;aest the absence of a quorum. The PRESIDING OFFICER- The clerk will call the roll. The legislative clerk proceeded to call the roll. Mr. MANSFIELD. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER (Mr. KENNEDY of New York In the chair). Without objection, It is so ordered. UNANIMOUS-CONSENT AGREEM EN'r Mr. MANSFIELD. Mr. President, I send to the desk a proposed unanimous- consent agreement and ask that. It be given Immediate considenitlon. The PRESIDING OFFICER. The clerk will read. The legislative clerk read as follows: UNANIMOUS-CONSENT I.GaE1rM N? Ordered, That, effective 3 me 11, 1985, at the conclusion of routine mining business. during the further consider.tion of the bill (S. 1837) to further amend the Foreign As- sistance Act of 1981, as ameaded, debate on any amendment, motion. of appeal, except a motion to lay on the table, shall be Lim- ited to 1 hour. to be equally divided and controlled by the mover of any such amend- ment or motion and the Si nator from Ar- kansas [Mr. Fuf.alucarl : Pr )vided, That in the event the Senator from Arkansas Is In favor of any such amends ent or motion, the time In opposition thereto shall he con- trolled by the majority lead 'r or spare Sen- ator designated by him: P-ovfded further, That no amendment that is not germane to the provisions of the said bill shall be re- ceived except for two amendments to be offered by the Senator from New Yolk [Mr. JAVITSI. Ordered further, That on the questlon of the final passage of the said Din debate shall be limited to 4 hours, to be equally divided and controlled, respectively, by the majority and minority leaders: Prodded. That the said leaders, or either of ti.em, may, from the time under their control on the passage of the said bill, allot additional time to any Senator during the consideration of any amendment, motion, or appeal. The PRESIDING OFFICER. Is there objection to the unanimous-consent request? Mr_ JAVITS. Mr. Press lent, reserving the rieht to object, I have 10 objection to the time limitation, but I may desire to submit two amendments. One is print- ed, one is not. One amei.dment relates to the Peace by Investment Corporation; the other relates to East-West trade. I ask the majority leader t3 except those amendments from the germaneness rule, If there is any prob' em. Mr. MANSFIELD. Of Course. The PRESIDING OFFII,'ER. Is there objection to the unanimo is-consent re- quest? The Chair hears lone, and it is so ordered. Mr. JAVITS. Mr. President, do I cor- rectly understand that U. e two amend- ments are excepted from the rule of ger- maneness? Mr. MANSFIELD. Yes The PRESIDING OFFICER. Who yields time? Mr. GRUENING. Mr. President, I yield myself such time as I may require. Subsection 205 of the present Foreign Assistance Act provides: If the President determines that it would more effectively servo the G urpeses of this title and the policy oontalnel in sect`.on 619 (pertaining to newly indepenlent countries), he may. in accordance with the provisions of this title, lend not to exceed 10 per centum of the funds made available for this title to the international Development Association for use pursuant to the International Devel- opment Association Act (Pu )lic Law 88--565, 74 Stat. 293) and the artlci w of agreement of the Association. The bill reported by the Committee on Foreign Relations chang.is the law in three respects: First. It inserts the fcilowillg policy finding by the Congress: That the United States and other free world nations place an increasing portion of their assistance programs on a multilateral basis. Second. It Includes in the agencies to which the President is authorized to transfer development loan funds to two international lending institutions-the International Bank for Reconstruction and Development and the International Finance Corporation, in addition to the International Development Association, to which funds can be transferred under existing law. Third. The committee bill increases from 10 to 20 percent the amount of funds which the President can transfer to these three international institutions. My amendments-Nos. 221 and 224 combined, which are now being consid- ered en bloc-would delete these three committee amendments and leave the present law undisturbed. - My amendments do nothing more. On page 12592 of the CONGRESSIONAL RECORD for July 9. I have inserted a list of the loans made by the Interna- tional Development Association. These are soft loans. They are repayable over the term of 50 years with an interest rate of three-fourths of 1 percent with no repayment of principal for the first 10 years. With the United States borrowing the money to turn over to the International Development Association at more than Sala percent interest, this means a con- cealed grant is going to each borrower from the International Development As- sociation of at least 5 percent interest. For example, the loan made to India by the International Development Asso- ciation of $300 million contains a con- cealed grant to India from the United States of $15 million per year. It is con- cealed because, while the taxpayers of the United States are paying this $15 million annually, it is treated by the In- ternational Development Association and the people of India as a loan, rather than a grant. If the people of the United States and their elected representatives want to make grants, let them do it openly and knowingly. The effect of the committee amend- ments continues a trend to obviate the restrictions placed on the Development Loan Fund by the Congress over the years. The committee amendments would free an additional 10 percent of the De- velopment Loan Funds from the follow- ing restrictions: First. The Hickenlooper amendment, a great deterrent to expropriations of U.S.-owned property abroad. That would go down the drain if my amendments were rejected. Second. The safeguards for the use of Development Loan Funds for pur- chases in the United States provided a restriction of great assistance to our bal- ance-of-payments problem. That would go down the drain if my amendments were rejected. Third. The requirement for detailed plans and cost estimates on public works projects is a safeguard. These safeguards would also disappear if my amendments were rejected. Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 CIA-RDP67B00446R000600130002-0 June 10, 1965 CONGRESSIONAL RECORD - SENATE Fourth. The requirement for the shipment of a certain percentage of pur- chases in American bottoms is a safe- guard. All purchases made through the pro- ceeds of these loans, including the addi- tional 10 percent through the interna- tional corporations, would have no pro- tection for American shipping. Fifth. The restrictions on aid to Cuba, Poland, Yugoslavia, and other Commu- nist countries are safeguards. The international bankers lend this money wherever they see fit. Sixth. The restriction on aid to coun- tries shipping goods to Cuba is a safe- guard. That, too, would disappear. Seventh. The restriction on aiding businesses abroad that will ship goods into the United States in competition with our own businesses is a safeguard. They would ship goods into America in competition with our own businesses. The following are safeguards: Eighth. The restriction against aid to countries preparing for aggression against their neighbors; Ninth. The restriction against aid to Indonesia; Tenth. The restriction against aid to countries having no investment guaran- tees; Eleventh. The restriction against aid to economically developed countries. Rather than increasing the amount of U.S. taxpayers' dollars we permit to escape from the control of.the Congress, we should reverse the trend and seek ways and means of bringing more and more of the foreign aid program in all its aspects under the close and con- tinued scrutiny of the Congress. Mr. President, these are conservative and mild amendments. They would only tend to retain the. commitments already given. They would not seek to reverse the commitments of a previous Congress. If I were introducing the bill, I would scrap this section entirely and have no further waste such as occurs when this money goes to international organiza- tions and Congress loses complete con- trol of our taxpayers' money. Mr. President, I ask for the yeas and nays on my amendments. The yeas and nays were ordered. Mr. GRUENING. Mr. President, I yield the floor. Mr. FULBRIGHT. Mr. President, I yield myself 5 minutes. The PRESIDING OFFICER. The Senator from Arkansas is recognized for 5 minutes. Mr. FULBRIGHT. Mr. President, be- fore commenting directly with regard to this matter, I wish to observe that, with regard to the alleged great waste of the taxpayers' money which has been men- tioned by the Senator from Alaska- which he calls the 10-percent provision in the existing law, it has not been very wasteful. It has never been implemented because of the restrictions put on it in the appropriations act. The Senator does not know whether it would be wasted or not. It has not been done. That is an inoperative provision. One may ask why I want this provision for 20 percent in the committee bill. This is a matter of principle. This is the way the foreign aid program should be ad- ministered, even though it is not now so administered. I believe it is significant that the prin- cipal sponsors of the amendment are people who, generally speaking, have al- ways opposed foreign aid in its entirety. It is not a question of whether they are interested in passing a bill. I believe that the Senator from Alaska, if -my memory serves me correctly, has voted against the aid bill for several years. Is that correct? Mr. GRUENING. No; that is incor- rect. I have at times opposed a foreign aid bill when I felt it was a bad bill. But I have sought to improve all foreign aid bills by amendment. And when they were improved I voted for them. Other- wise not. Mr. FULBRIGHT. I thought the Sen- ator always voted against it. Mr. GRUENING. That shows how misinformed the chairman of the com- mittee is. Mr. FULBRIGHT. If the Senator has not voted against the bill, he has voted against certain provisions of it. Mr. GRUENING. The Senator is correct. I have voted in favor of amendments that would improve the for- eign aid bills, stop wasting the taxpay- ers' money, and stop sending money to ruthless dictators who are aggressors, who burn our libraries, permit attacks on our Embassies, and denounce us. That has been the purpose of my amend- ments. Some of the amendments I have sponsored and were enacted have suc- ceeded in improving the foreign aid bill. Mr. MORSE. Mr. President, will the Senator yield? Mr. FULBRIGHT. I yield. Mr. MORSE. Mr. President, I say goodnaturedly that I am a little surprised that the lack of knowledge of the King's English possessed by my good friend the Senator from Arkansas, led him to make a mistake and think of us as being op- posed to foreign aid. I have voted against the bill. However, I have said that I would vote for more money for foreign aid if we could really have a decent foreign aid bill that would eliminate waste, inefficiency, and the cause of corruption in the administra- tion of foreign aid in so many parts of the world. I am greatly indebted to the Senator from Arkansas for giving support in the committee to the Morse amendment that is in the present bill. My amendments seek to carry out that objective with a study that would seek to outline an im- proved foreign aid program for us in the future. Mr. FULBRIGHT. Mr. President, the impression was given to the uniniti- ated from the discussions of the bill last year and the year before that the Sen- ator from Oregon was opposed to for- eign aid. He interprets that to mean that he is opposed to this bill. I do not recall that the Senator has ever offered a complete substitute or an entirely new or different kind of bill. Mr. MORSE. I know that the Senator wants to be fair. Mr. FULBRIGHT. Perhaps that will come out of this study. I hope that it will. Mr. MORSE. I know that the Senator from Arkansas wants to be fair. We would have had a Morse foreign aid bill if the Senator from Arkansas and other Senators had been willing to adopt the long list of amendments that I have offered here on the floor of the Senate now for the past 3 years, which amounted to a rewriting of the foreign aid program. That is the kind of for- eign aid I am for. Mr. DIRKSEN. Mr. President, will the Senator yield? Mr. FULBRIGHT. I yield for a question. Mr. DIRKSEN. I would rather have the Senator yield for an observation. Mr. FULBRIGHT. I yield for an ob- servation. Mr. DIRKSEN. Mr. President, I pointed out last night that there are 92 countries in the international develop- ment program. A country must be a member of the World Bank in order to be a member of the Association. So 10 countries are not members of the Asso- ciation. Mr. Henderson's figures indicate to me that we have now committed $632 million of U.S. funds. Once that money goes into the "kitty," they can evade the Hicken- looper amendment. They can evade shipping instructions. There is no ap- propriation control. We are at sea with- out a paddle. That is what it amounts to. I do not mind being generous about this. However, I do not want to go whole hog and commit the U.S. Treasury to the keeping of people who have an interest in getting money out. That has not been our interest there.' There ought to be some restraint in fairness to the tax- payers of the country. Mr. FULBRIGHT. The Senator from Illinois, of course, has every right to his own opinion, but we differ very greatly as to what is designed to improve the efficiency of this program. The interna- tional agencies have a far better reputa- tion in the eyes of 99 percent than does AID when it comes to efficient admini- stration of their funds. The amendment of the Senator from Alaska raises fundamental policy ques- tion involved in the program. As I stated before, the 10-percent provision has never been operative because of the lim- itation put on it by the Appropriations Committee of the House. So we are deal- ing here, as we often find ourselves doing in the foreign aid bill, with a kind of windmill. We argue at great length and acrimoniously about various provisions, only to find in the long run that the arguments have been largely futile, just as is this point. I am not at all sanguine, even if the 20-percent provision stays in, because under the 10-percent provision, not one nickel has been spent for this purpose, although the provision did es- tablish a good policy. The justification for foreign aid must ultimately stand or fall on a political base. Whether we are killing mosquitoes in Africa, or building dams in Latin America, or supplying weapons in Asia, Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 CONGRESSIONAL RECORD - SENATE June 10, 1965 we are doing it for essentially political purposes. We are doing it because we hope that, if we are successful, there will emerge in the affected countries a politi- cal order which is not incompatible with U.S. interests. This does not have any- thing to do with trying to buy friends; it has to do with the much more subtle and complex task of trying to influence the course of events toward the devel- opment of situations more nearly in our interest than the situations which now exist. This, of course, is the general and continuing objective of our foreign policy in all its aspects. The foreign aid pro- gram is only one of a number of instru- ments available to us to achieve this objective. The other instruments in- clude old-fashioned diplomacy,theover- seas information program, the activities of the Central Intelligence Age y, our Armed Forces, our commercial and trade policies, and our exchange-of-persons programs, among others. None of these is an end in itself, but rather a means to a broader end. It should be clear that what we are talking about in this amendment Is not the foreign aid program as a whole, but the particular segment of it which is called development loans and which con- sists of dollar-repayable loans to un- derdeveloped countries other than those of Latin America. Further, we are talk- ing about a relatively small percentage- whether it be 10 or 20--of the funds available under that program. These funds, if the administration gets the full appropriation requested, will total $780,- 250,000 in fiscal year 1966. Now, these funds-which are only a little more than the Senate recently ap- proved with a whoop and a holler for war in Vietnam-are aimed directly and ex- clusively at economic development In Africa and Asia. But even economic de- velopment is not an end in itself; It is a means to the end of political stability and compatibility with U.S. national interests. I hope no one any longer deludes him- self that economic development Is a suffi- cient condition for political development. It is probably a necessary condition. At any rate. it can be a helpful contributing factor-if it is not offset by international political irritants. The real issue involved In this amend- ment is whether development loans can contribute more effectively to the long- term, broad political purposes of the United States if they are administered bilaterally or multilaterally. The PRESIDING OFFICER (Mr. MONTOYA in the chair). The time of the Senator has expired. Mr. FULBRIGHT. I yield myself an additional 5 minutes. Deeply involved in this issue are the feelings and attitudes of the people of most of the countries of Africa and Asia. These feelings and attitudes are best de- scribed as being intensely nationalistic and independent. From the comfort and security of an established world power and an affluent society, this na- tionalism frequently appears perverse and irrational; but we fail at our peril to try to understand it and to take account of it. Africans and Asians know t ley need development assistance, and at the same time they resent their need for t. They consequently sometimes try to rational- ize it as their just due. They are very sensitive about it-and espe:laliy so when they hear themselves d snounced periodically in the United Stl.tes gen- erally, and particularly in the Senate, as incompetent or worse. When development lending I: done on a bilateral basis, all of the manil estations of this nationalism are compounded. When aid is extended on a me ltilateral basis, these manifestations are muted and diluted. The question here is, What Is the Sen- ate trying to do? If it is trying to pro- mote economic development Ir selected countries of Asia and Africa, without a constant irritant in our own relations with those countries, then a modest flex- ibility should be provided the President to channel some of these torn funds through the International Bank and its affiliates. But if the Senate is simply trying to assert Its own brand c f nation- alism, then this flexibility should be de- nied the President and the program should be surrounded with still more restrictions and conditions, w h ch seems to me to be its purpose. Much has been said by the pi oponents of this amendment about how lie use of the World Bank will take all the strings off aid and enable a group of Inter- national bureaucrats to scatter Ameri- can largesse throughout the world. Do Senators think the World Bark has no standards of feasibility, no requirements for economic performance, no compe- tence In administration and manage- ment? Why do Senators think the World Bank refused to make Gny loans to Brazil for several years prfo to 1964? Because the Bank was not sati. Bled with the economic record of the Brazilian Government. Why do Senators think the World Bank has refused to nake any loans to Greece? Because G ?eece has been in default on an international loan contracted In 1929. That is a matter which has lust been considered by our commit' ee. The Greeks have gone to great effo ts to ar- rive at an international agreement set- tling that particular loan and clearing up their back debt In order to I.e eligible for International Bank loans. These are rather higher tandards than AID-or the U.S. Congress, for that matter-has applied. We hear a great deal in tl a Senate about GAO reports on maladmi* listration of our own aid program. Hass ny Sena- tor ever heard of an auditor 's report which questioned in the slighte;t the ad- ministration of the World Bank? In another title of this bill, there is an item of $44 million to be contributed to the Indus Basin Development Fund, which is administered by tic World Bank. This large project has been under way for several years, and there has not been the slightest criticism of t. What is wrong with trying to work out similar projects elsewhere? To sum up, Mr. President, the com- mittee bill provides that the President "after consideration of the extent of additional participation by other coun- tries, may make available" up to 20 per- cent of the development loan funds to the International Bank and its affiliates. The existing law provides that he may lend up to 10 percent to the Interna- tional Development Association. The existing law, incidentally, has been effec- tively nullified by a prohibition in the appropriation act; so the present au- thority has never been used. The committee bill represents a very modest effort to encourage the President to shift a small portion of development loans from bilateral to multilateral ad- ministration. For both political and economic reasons, I strongly believe that this is the direction in which economic development programs should move, and I hope the Senate will reject the amend- ment of the Senator from Alaska. Mr. CLARK. Mr. President, will the Senator yield? Mr. FULBRIGHT. I yield. Mr. CLARK. There was some criticism on the floor of the Senate yesterday about loans made by the International Bank organization; that IDA had not properly made long-term, soft loans at appropriate interest rates. What can the Senator tell us about standards of IDA, an affiliate of the World Bank, in making loans? Are they not pretty careful about loans they make, even though less interest is charged than for loans under conventional terms? Mr. FULBRIGHT. They are. The PRESIDING OFFICER. The ad- ditional time of the Senator has expired. Mr. FULBRIGHT. Mr. President, how much time have I left? The PRESIDING OFFICER. Eighteen minutes. Mr. FULBRIGHT. I yield myself 5 minutes, or as much as I wish to use of the 5 minutes. The Senator is correct. They are called soft loans, but such loans are usually worked out and result from very careful consideration by the Bank Itself, very often with an eye to a regular loan from the Bank. But because of the in- ability of a particular country to service a loan at the regular rate, and for the short terms on which a regular rate is based, they have to fall back on IDA. It is a complementary organization. It has complementary standards that comple- ment the regular operations of the Bank. Over the years, the Bank has developed a highly skilled international group of technicians in the engineering, auditing, and economic fields. It has done a re- markable job in administering the affairs of the Bank. IDA is a more recent orga- nization, which has been operating for only a few years, but I have never run into any serious criticism of the efficiency of its operation. We fail to allow them to administer a part of our funds, but let me empha- size one point: I believe that some of the major troubles we are today encoun- tering throughout the world stem from the relationship between the patron and the client that grows from the bilateral loan, which is the beginning of a sour and disillusioned relationship between the underdeveloped countries of the world and the United States. We, being such a large, and to them at least, rich Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13: CIA-RDP67B00446R000600130002-0 June 10, 1965 CONGRESSIONAL RECORD - SENATE 12647 country, they immediately become im- patient with any kind of restriction. The most glaring instance I heard of was in Malaysia where, after long nego- tiations, we raised the problem of the regular interest rate. They staged a great anti-American demonstration in Kuala Lumpur because of that interest rate-the only such demonstration I ever heard of in Malaysia. This poisons our relationship rather than improves it because of the nature that adheres to, such a relationship. It is not because of David Bell or anyone else in the organization. It is inherent in this kind of program, particularly if it is a lending program. If it is a program for the eradication of malaria, or a technical assistance program for the construction of a school, it does not result in disillusionment. It is funda- mentally bad for us to continue this bilateral lending program. This applies only to the lending part of the program. Mr. CLARK. What would the Sen- ator's comment be with respect to the criticism made here that, by encourag- ing multilateral loans by world organi- zations, Congress is losing control of the program? Have we not a good deal to say about the organization of the World Bank and its affiliates as to where loans should be made? Mr. FULBRIGHT. Technically the criticism is correct,' because Congress does not have a representative on the Board. But some agency of the Govern- ment, or the administration, which is a legitimate part of the Government, of course, do have representatives on the Board. These representatives carry sub- stantial voting weight in accordance with the constitution of the World Bank, so that they possess great influence. They do not dominate the Bank, and I do not wish them to dominate it, but they do have a substantial vote. Mr. AIKEN. Mr. President, will the Senator from Alaska yield? Mr. GRUENING. I yield 3 minutes to the Senator from Vermont. The PRESIDING OFFICER (Mr. KEN- NEDY of New York in the chair). The Senator from Vermont is recognized for 3 minutes. Mr. AIKEN. Mr. President, there have been many times when I have felt that these programs, including the ex- tension of credit, have been handled con- siderably better by multilateral organi- zations than by a bilateral arrangement. However, if we are to take this recom- mendation in the bill as reported by the Committee on Foreign Relations factu- ally and realistically, we must accept the amendments offered by the Senator from Alaska. Part 4 of the bill provides that the for- eign aid programs will terminate on July 1, 1967. It also requests the President to submit to Congress his recommendations for a continuation of the aid programs, and specifies the different factors to be considered in extending such a program. It also provides for setting up a tem- porary planning committee comprised of four members to be appointed by the President, four from the Foreign Rela- tions Committee, and four from the Com- mittee on Foreign Affairs of the House of Representatives. The committee will be required to make a final report to Con- gress not later than January 1, 1967, or approximately 18 months from now. If we already knew what should be done in revising foreign aid programs, including lending programs, there would not be much need to set up committees or request the President to submit a new program. In view of that fact, it seems to me that we had better let the situation remain where it is, authorizing the transfer of 10 percent of the funds to the interna- tional lending agency. The PRESIDING OFFICER. The time of the Senator from Vermont has expired. Mr. GRUENING. Mr. President, I yield 1 additional minute to the Senator from Vermont. The PRESIDING OFFICER. The Senator from Vermont is recognized for 1 additional minute. Mr. AIKEN. Mr. President, I believe that we should accept the amendments offered by the Senator from Alaska. However, I would not vote to reduce the 10 percent, or eliminate it, as was sug- gested yesterday on the floor of the Senate. Mr. GRUENING. Mr. President, this is a conservative amendment. Let me point out some of the loans which have been made by the International Devel- opment Corporation, which shows how the money is being disbursed. In Formosa, there are four loans at three-fourths of 1 percent interest, one for harbor dredging, another for water development, another for municipal sup- ply, and another for the development of private industry. Please note that the loan for the de- velopment of private industry is making our Government money available to private industry at the interest rate of three-fourths of 1 percent, with no re- payment on the principal for 10 years and then a 50-year term before the loan is to be paid. Going on down the line, we find loans to be of the same character. Nowhere does it seem that any effort is being made to save American taxpayers' money. All the loans are at three-fourths ,of 1 per- cent. They are all for the same terms, with no repayment on the principal for 10 years, and 50 years to run. In India, there are about a dozen loans for highway construction and Improve- ment, irrigation, flood control, and so forth. It is interesting that we cannot seem to do anything about flood control in our own country, but we can give our money away this liberally for flood con- trol purposes in every country of the world except the United States. Only this year and last year, we wit- nessed the terrible floods in the Midwest and in the Northwest. The States have come back to the Government year after year after year for help, but do we sup- pose that States could borrow money from the United States at the rate of three-fourths of 1 percent with no re- payment on the principal for 10 years? Of course not. This is a double standard which I have consistently opposed. Mr. FULBRIGHT. Mr. President will the Senator from Alaska yield? Mr. GRUENING. I yield. Mr. FULBRIGHT. Does the Senator hold the view that either the AID pro- gram or IDA is intended as a money- making bank? Mr. GRUENING. No; not as a money- making bank. Neither was it intended to be a complete giveaway, which is pret- ty much what it is in a number of areas. Mr. FULBRIGHT. It is not. These loans are repayable. Formosa is one of the few countries which is making such great progress that this year the AID will discontinue completely its economic assistance to that country. Mr. GRUENING. How about the Haiti loan, which is now in default, which was made by the International Development Corporation? Mr. FULBRIGHT. I believe that ev- erything is in default in Haiti, at the present time. Mr. GRUENING. I know that, but the Senator was relating how safe the loans made by the international organization are. Mr. FULBRIGHT. Yes, but I did not say that it was infallible. It has had relatively greater success than many of the AID programs. We have some AID obligations in default in Haiti also, but on balance the International Bank and its affiliates have done an excellent Job. Their standards of lending and their su- pervision, I believe, have been more effi- cient because they do not encounter na- tionalism and resentment on the part of the borrower. Mr. GRUENING. Why would not the record be an excellent record when based on these generous terms, when we give this money at virtually no interest and let the borrowers have 10 years be- fore any payment is due? Nevertheless, already there has been some default. Mr. President, I yield such time to the Senator from Oregon as he may require. Mr. MORSE. I shall not take more than 5 minutes. I am ready to vote. I believe that in fairness to myself and in fairness to the Senator from Alaska I should recapitulate the two main argu- ments that I made in my major speech on the subject last night. The amendment in principle is the amendment that the senior Senator from Oregon proposed in committee. It will have substantial support on the floor of the Senate when the yea-and-nay vote is had, as there was substantial sup- port for it in committee. A number of the committee members will vote for it. My two main reasons are that I believe the report of the committee itself, which contains the Morse amendment that provides for creating a special body to make a Federal survey and analysis of the foreign aid program with the re- quirement of a report on its findings and its recommendations at the beginning of fiscal 1967, Justifies our urging that we not adopt a policy change as important as this policy change would be. This is the type of policy question that ought to go to the special committee for consideration between now and the be- ginning of fiscal 1967. Therefore I do not believe that this type of proposal should be added to the Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 CONGRESSIONAL RECORD - SENATE June 10, 1965 bill this year. If, after careful analysis, the special committee should decide that there is merit in the proposal, I believe we ought to consider it at that time. The second point, which I discussed at some length last night, is my attitude toward our constitutional system in re- gard to maintaining congressional checks over the executive branch of Government. This committee proposal, in my judgment greatly weakens the checking power and authority and duty of Congress, because no matter what se- mantics are used, when all is said and done we transfer out of direct control by Congress the checking authority to pass judgment upon the policies that shall prevail in the expenditure of taxpayer money in the foreign aid program. The Senator from Alaska has pointed out the side effects of the amendment in connection with the policy that we have already adopted in exercising our power of check through the Hickenlooper amendment and the Lausche-Mundt amendment that we have already adopted. We cannot, in my judgment, reconcile this proposal with the pro- cedures under the Hickenlooper amend- ment and the Lausche-Mundt amend- ment in respect to the amount of money that will be transferred to foreign finan- cial agencies, which to a large degree will exercise control over the expenditure of money, without an effective congres- sional check. I do not believe this is the time for us to further delegate the authority which I believe to be so precious and that we must have it remain inviolate. Congress must stop building up a gov- ernment of executive supremacy in this country. Every time we delegate this kind of control, this degree of checking. we simply vest more and more power in the executive branch of the Government. in this instance in the State Department and in a foreign financial agency, to which we would give ultimate control. Lastly, it has been pointed out by the supporters of the amendment, both In committee and on the floor of the Senate. that we have a voice in this agency, that we have a voice in the World Bank, that we have a voice in the Inter-American Bank, and that we have a voice In many other international agencies. Mr. President. I used to teach my stu- dents that, although we are a govern- ment of laws and not a government of men, and that we must keep our govern- ment of laws in order to preserve the freedoms and liberties of the American people. we should never forget that we are a government of laws administered by mere men. Senators know something about the human relations that develop, the cama- raderie, the exchange of agreements, and the compromises--in this instance the support of someone for a compromise on another issue that may develop on the board. I take judicial notice of the fact that within the international agencies the human factor plays a very important part in working out arrangements and adjustments of policies that become the program of that agency. We have no effective ch ck on the American representative. It may be said, "You can get him off the boE rd." I say, '"Try It." It may be said, "You can g the him In- structlons." I say, "Try it." The fact is that we lose cc ngressional control. Therefore I urge Senators this after- noon to adopt the Gruening E mendment, because its adoption would give us time necessary to consider this policy by the group which the Morse am 'ndment, a part of the bill, envisions shal I be created to make a thorough analysis u f the whole foreign aid program betwee i now and the beginning of fiscal year 1967. Mr. GRUENING. Mr. President. how much time have I remaining? The PRESIDING OFFICER. The Senator from Alaska has 18 minutes remaining. Mr. GRUENING. I point cut that this is an extremely conservative amend- ment. It merely keeps th> situation where it is now. As these h ans do not require repayment for 10 years, how do we know how good any of them are? Not one of them will become due for its first payment until 1970 or 1371 or 1972 or 1974 or 1975. What is more reasonable gran to keep the provision that is now n the bill, which permits 10 percent of the money to be loaned, instead of doubling it and going ahead on an unchartec sea, where there is great profligacy as 13 shown by the loans already made? I; is absurd for Congress to double the ante in view of what we have been giving sway in the past few years since this Irternational Development Bank was created. Mr. FULBRIGHT. I yielc 5 minutes to the Senator from Pennsylvania. Mr. CLARK. Mr. President, I associ- ate myself with the remarks A the Sen- ator from Arkansas in support of the committee amendment to double the amount of multilateral aid which can be furnished. I direct particular attention to his comment about our trying to promote economic development in sel-eted coun- tries of Asia and Africa by n oving some of the loans into the World Bank and its affiliates. We have been shocked in recent years by the spreadi-kg all over the world of the slogan `Yankee go home." We have been shocked by the burning of our libraries, by the attacks on our embassies. However, has any- one ever said, "World Bank go home"? Has anyone ever said, "Irternational Development Organization f o home"? Has anyone ever tried to burn down the foreign offices of the World Bank and its affiliates? This I i Itself Is strong justification for extensing multi- lateral aid. Let me point out that this is not a policy change, as the Senator from Ore- gon has suggested. The policy of making a certain amount Sf develop- ment loan funds available o interna- tional institutions was adopted by Con- gress in section 205 of the foreign Aid Act as long ago as 1961. We are not changing any policy. We are merely implementing a policy which a majority of the members of the Committee on Foreign Relations thought was sound. There is another reason why I believe the committee should be supported, and it is very important. In my judgment, the committee position represents a wave of the future and the Gruentng amend- ments represent a relic of the past. We are in a situation in which an expanding internationalism is becoming essential not only to remedying the vast disparity between the rich nations and the poor nations, but, indeed, to preserve our Western civilization from destruction in a nuclear holocaust. We are moving slowly but surely toward a limited yield- ing of national sovereignty, a situation in which the 13 States found themselves unable to govern themselves under the Articles of Confederation finally and re- luctantly made to the Federal Govern- ment. as result of which our country had a great and marvelous growth. We now have the United Nations, the International Monetary Fund, the In- ternational Labor Organization, the World Health Organization, and a great many other international organizations to which some small part of our national sovereignty has gradually been yielded. Therefore, I take no credence in the sug- gestion that the Congress ought to keep a tight rein on every dollar which we put into programs of international coopera- tion. I feel, rather, that it is far wiser to expand the growing internationalism essential to the survival of a complex and completely changing world. It is for that reason, in addition to the reasons stated by the Senator from Arkansas, that I support the committee position. Mr. PASTORE. Mr. President, will the Senator yield? Mr. CLARK. I yield. Mr. PASTORE. The point that dis- turbs me in relation to the amendment is as follows: What is wrong with the borrower knowing that the money in- volved is American money coming from America? Why should it be funneled through an international agency, with al- legiance being, let us say, to an entity, as against a nation that is actually mak- ing the sacrifice to put up the money? What is wrong with that? Mr. CLARK. There is nothing wrong with it. Mr. PASTORE. America should be generous. We should have a generous heart. Not long ago I heard that in the Dominican Republic, where we are furnishing food, there was resentment that the food bore a mark "From Amer- ica." What is wrong with that? If they are going to eat our food, why should not the people know that it has come from us? If they are-going to have our money, why should not the people know that the money is coming from us? What is essentially wrong with that? Mr. CLARK. May I answer the Sen- ator? 'sir. PASTORE. Yes. Mr. CLARK. There is nothing essen- tially wrong with that. The vast ma- pority of our funds are indicated as com- ing from America. I say to my friend the Senator from Rhode Island that it Is a question of com- Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07113 : CIA-RDP67B00446R000600130002-0 June 10, 1965 CONGRESSIONAL RECORD - SENATE monsense. Will we get a better result for each dollar spent if we make it pos- sible for international institutions such as the World Bank, IDA, and the others, to have an expanded amount of capital with which to make available loans to the countries of Africa and Asia? If the Senator should desire-and I am sure he does not, because he is not that kind of individual-we could point with pride all over the world and beat our chests about the great generosity and say, "Look at what Uncle Sam has done for you." I agree there is nothing wrong with that. The only problem is wheth- er it is not more sensible to move an ad- ditional amount of loans into the inter- national field, as we have done in con- nection with the United Nations and the other agencies I have spoken about. There is nothing wrong with what the Senator has stated; it is only a ques- tion of what is wise. Mr. PASTORE. The Senator from Rhode Island does not mean that we should go around beating our breasts and pointing `with pride. I do not mean that at all. I believe it is a fallacy to think for one moment that we accomplish more if people do not know where the benefits come from. I would hope that whatever we do, we do the thing that is right in the long run. I do not believe that America ought to be wearing its affluence on its sleeve. I have never said that. I do not 1nean that. Too often I hear people say that our way of giving is not good, that our aid is resented by people because they know we are giving it. If they resent it, they need not ask for it. Mr. FULBRIGHT. Mr. President, I yield myself 2 minutes. The PRESIDING OFFICER. The Senator from Arkansas is recognized for 2 minutes. Mr. FULBRIGHT. There is nothing wrong with giving away money as charity or as anything else. What we are talking about is a lending program. It has been well acknowledged-certainly since the days of Shakespeare-that a borrowing relationship between friends, for exam- ple, very often results in some resent- ment. The lender expects to be paid. A personal feeling goes with a loan, and the borrower feels that he is obligated in a way beyond mere repayment of a loan, and the lender feels that he has done a personal favor, which is aside from busi- ness, to the borrower. It is difficult to maintain a satisfactory relationship. That is one reason why we have banks. I know that in my private life, wise people of my acquaintanceship have always re- fused to lend directly to friends, but they have helped those friends obtain money through a bank. They do so in order to maintain their personal relations on a proper basis. The attitude of which I speak enters into our relations with a small country such as Malaysia. Before the Senator came into the Chamber, I believe, I cited an instance in that country. Mr. PASTORE. I heard the Senator make that reference. Mr. FULBRIGHT. I do not know why they did it, but the fact is, whether we like it or not, for the first time to my knowledge there was a large anti-Amer- ican demonstration in the capital city because we had insisted on an interest rate on a loan that did not please them. That factor has not entered into the re- lationships of that country with the Bank. I am judging by our experience. There is nothing wrong in what the Sen- ator has said. I am not talking about a moral question. It is purely a political, practical question. The Bank has had very satisfactory relations in a lending program and we have had some very un- satisfactory relationships. I know that the record of the Bank is that there has never been a default. Never in its his- tory has there been a single default. I know of instances in which countries have rescheduled their other obligations in order to avoid defaulting to the Bank. They have felt that their reputation with the Bank was at stake, and they have gone to great pains to preserve their reputation with the Bank. Our own record of bilateral lending, even by private sources to Latin Amer- ica after World War I, is deplorable. Practically every country down there de- faulted. Much ill will resulted. The very fact that we are big and rich ex- aggerates the problem. The PRESIDING OFFICER. The time of the Senator from Arkansas has expired. Mr. FULBRIGHT. I yield myself 1 additional minute. The PRESIDING OFFICER. The Senator from Arkansas is recognized for 1 minute. Mr. FULBRIGHT. A psychological problem in relation to loans is created. I do not believe the same thing arises with regard to gifts. They accept ma- laria control; they accept milk for their children; they accept teachers in their schools. But there is not established a relationship of borrower and lender. This has not created any bad feeling, but I believe that lending by the great United States to a small country at the kind of rates, for example, that the Sen- ator from Alaska advocates has resulted in ill will and the alienation of those countries rather than a continuation of satisfactory political relationships. It is a fact of life; it is not a moral question. Mr. PASTORE. Mr. President, will the Senator yield? Mr. FULBRIGHT. I yield. Mr. PASTORE. First, I have the high- est respect for the integrity and the re- sponsibility of the Foreign Relations Committee, especially because of the fact that it is headed by my distinguished friend from Arkansas, But what has he to say to the following question: Now 10 percent can be used for the stated purpose. The committee has decided that the percentage should be increased from 10 percent to 20 percent without changing the overall total figure. Would the increase implicate us to the extent that it would be harder for us to extri- cate ourselves in the future from the re- sponsibility? Would not such action become an obligation, in a multilateral sense, to many nations, as against deal- ing with one person? Would the pro- posed action mean that from now on the percentage rises from 10 percent to 20 percent-and maybe later it may even go above that percentage-but even if it does not, we shall have committed our- selves to 20 percent, and from now on we might as well reconcile ourselves to the fact that the program will be our obligation from now into the future? Mr. FULBRIGHT. There is no com- mitment in the bill beyond the life of the bill. Mr. President, I yield myself 1 addi- tional minute. The PRESIDING OFFICER. The Senator from Arkansas is recognized for 1 minute. Mr. FULBRIGHT. The 10 percent is an expression of policy. It has never been implemented. Not one red cent has ever been transferred in accordance with the authorization because the great Ap- propriations Committee, in its greater wisdom, has refused to appropriate the amount necessary. Instead, it has in- cluded a flat prohibition. In another part of the bill, in addition to section 205, is a statement of policy adopted by the committee. This is not the first one ; there have been similar ones. Some time ago there was a state- ment of policy which I remember spe- cifically. As I recall, it was with regard to Africa. It was felt that loans to new countries should be made on a multi- lateral basis. I was in favor of that, and so was the committee at the time. The purpose of the negotiation of the loans was to prevent the alienation of those countries. This proposal is permissive; it provides that the President may make funds available. It is, in a sense, a statement of policy. I believe-and I feel that a majority of the committee believe-that with respect to a lending program of de- velopment loans-that is all the policy applies to-it is wise to move in this di- rection, because it involves fewer political risks. It would be more successful in achieving the purpose of economic de- velopment. After all, that is what I as- sume is the purpose in this instance. That was the judgment of the committee. But it is not the judgment of the Com- mittee on Appropriations, so we have nothing to go on. The Committee on Appropriations has never done anything about it, and I do not know that it will in this instance. But the principle is important. It is no secret that I am dissatisfied with the way the program has developed. It has involved us in many places where I do not like the conditions. It operates in a good many countries. However, I have tried to do the best I could with what we have. I support the amendment of the Sen- ator from Oregon for a revision of the program. I am not too hopeful that anything can be done that will change it much. One thing that we hope can be done is to make greater use of the suc- cessful international organizations work- Ing in this field. For the most part such organizations have been successful; there have been few failures. Another aspect is that it is hoped that if the President takes advantage of the program, he will use it as a lever to persuade other countries to match us, Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 CONGRESSIONAL RECORD - SENATE June 10, 1965 and thus make a larger total amount available for development loans. Mr. MORSE. Mr. President, will the Senator from Alaska yield me 1 minute? Mr. GRUENING. I yield 1 minute to the Senator from Oregon. Mr. MORSE. I direct my remarks to the Senator from Rhode Island. Al- though the committee report favors this approach, a strong minority in the com- mittee does not share this view. The Committee on Appropriations tied down the flap In front of the nose. I be- lieve this is the beginning of a program to go beyond 20 percent. I believe that is what is contemplated. In my judg- ment, it would be a great mistake to do that. For the time being, we ought to leave well enough alone, or bad enough alone, and await the study that is contemplated in connection with the program. Mr. PASTORE. What has the Sena- tor from Oregon to say about the ob- servation made by the chairman of the committee; namely, that this program will be used as an instrument to induce other people and other nations to match what the United States does? Mr. MORSE. There are nations which, if they can succeed in having the jackpot increased by millions of Ameri- can dollars, will make token loans them- selves in order to exercise control over the expenditure of American money. This is not a matching-money proposal. It does not mean that if we put in 20 percent, some other country will put in 20 percent. We should look at the amounts other countries are contribut- ing. It is a token in comparison with what the United States is investing in the international program, on an inter- national sharing basis. I do not buy that argument at all. I reject it. Mr. GRUENING. Mr. President. I yield myself 2 minutes. I, too, wish to address my remarks to the Senator from Rhode Island. We do not know yet how these loans will fare. No repayment will be made for 10 years. Yet although this experi- ment has been in operation briefly, it is now proposed to double the amount. Why not continue with the present 10 percent? Doubling it is what I object to. My amendment does not provide for its repeal. Several Senators yesterday in debate suggested that the program be abolished. I do not go that far. The chairman of the committee refers to the high interest rates I propose. What are those high interest rates. which occur under the direct aid pro- gram? One percent; and after 2 years, 212 percent. That should not be dis- astrous to any borrower, when we have to borrow the money from the American people at a cost of twice or three times that amount. All the international loans are on these generous terms. There never seems to be any discretion. All the loans are made at three-quarters of 1 percent, with no repayment of principal for 10 years, and the life of the loans is 50 years. Is there any flexibility In the overall analysis of the projects for which we make these foreign so-called loans? Ap- parently not. This amendment would m!rely hold the program in status quo fo.' the next 2 years, and we would procei d on that basis. Whir double the amo int before we know how the program will work? We do know that these loans are made at negligible interest rates. Actually, they are not loans at all; they ire grants. Mr. President. I am prepar ld to vote. Mr. FULBRIGHT. Mr. F ?esident, I am prepared to yield back the remainder of my time. Mr. GRUENING. Mr. Pi esident, I suggest the absence of a qt orum, the time for the quorum call to Ile charged to neither side. Mr. FULBRIGHT. Let the time for the quorum call be charged t) my time. The quorum call need only be notice that Senators are prepared to vot. The PRESIDING OFFI-.ER. The clerk will call the roll. The legislative clerk proceeded to call the roll. Mr. FULBRIGHT. Mr. President. I ask unanimous consent that the order for the quorum call be rescin led. The PRESIDING OFFICEF. Without objection, it is so ordered. Under the unanimous-con;ent agree- ment, the Senate will proceed to vote on the amendments (Nos. 221 aid 224) of the Senator from Alaska [Mr. GRUEN- INGI. The yeas and nays ha 'e been or- dered, and the clerk will call the roll. The legislative clerk proce? ded to call the roll. Mr. MANSFIELD (when hi; name was called). On this vote I have a pair with the distinguished minority .eader, the Senator from Illinois [Mr. DIRxSEN). If he were present and voting he would vote "yea." If I were at liberty to vote, I would vote "nay." Therefore, I with- hold my vote. The rolicall was concluded. Mr. MORTON (after having voted in the negative). Mr. Presidelt, on this vote I have a live pair with the Senator from Colorado [Mr. ALLOTTI. If he were present and voting he would vote "yea." If I were at liberty to vote. I would vote "nay." Therefore, I withdraw my vote. Mr. LONG of Louisiana. I announce that the Senator from Conn? cticut [Mr. DODD], the Senator from Missouri [Mr. LONG]. the Senator from Washington [Mr. MAGNUSON], and the S?nator from Oregon [Mrs. NEUBERGER] ar, absent on official business. I also announce that tie Senator from North Dakota [Mr. BtRDIcKl, the Senator from Minnesota [Mr. Mc- CARTHYI, the Senator from 4faine [Mr. MUSKIE] and the Senator from Alabama [Mr. SPARKMAN] are necessarily absent. I further announce that, if present and voting, the Senator frorr North Da- kota [Mr. BURDICK], the Senator from Connecticut [Mr. DODD], tie Senator from Washington [Mr. MAGr'usoN), and the Senator from Alabama l Mr. SPARK- MAN] would each vote "nay." Mr. KUCHEL. I announce that the Senator from Kansas [Mr. DARLSON I is necessarily absent. The Senator from Kansas [Mr. PEAR- SON] is absent on official bus ness and, if present and voting, would vcte "yea." The Senator from Illinois [Mr. DIRK- sKNI is detained on official business, and his pair has been previously announced. The Senator from Colorado [Mr. ALLOTTI is absent on official business, and his pair has been previously an- nounced. The result was announced-yeas 40, nays 46, as follows: [No. 114Leg.] YEAS-40 Aiken Gruening Russell. Ga. Bartlett Hartke Simpson Bible Holland Smith Byrd, Va. Hruska Stennis Cannon Jordan,N.C. Symington Cotton Jordan, Idaho Talmadge Curtis Lausche Thurmond Dominick McClellan Tower Eastland Morse Williams, Del. Eliender Moss Yarborough Ervin Mundt Young, N. Dak. Fannin Murphy Young, Ohio Fong Robertson Gore Russell, B.C. NAYS-46 Anderson Hickenlooper Monroney Bass Hill Montoya Bayh Inouye Nelson Bennett Jackson Pastore Boggs Javita Pell Brewster Kennedy, Mass. Prouty Byrd. W. Va. Kennedy, N.Y. Proxmire Case Kuchel Randolph Church Long, La. Ribicoff Clark McGee Saltonstall Cooper McGovern Scott Douglas McIntyre Smathers Fuibright McNamara Tydings Harris Metcalf Williams, N.J. Hart Miller Hayden Mondale NOT VOTING-14 Allott Long. Mo. Mwskie Burdick Magnuson Neuberger Carlson Mansfield Pearson Dirksen McCarthy Sparkman Dodd Morton So Mr. GRUENING'S amendments (Nos. 221 and 224) were rejected. AMENDMENT NO. 240 Mr. MORSE. Mr. President, I call up my amendment No. 240 and ask that it be stated. The PRESIDING OFFICER. The amendment of the Senator from Oregon will be stated for the information of the Senate. The LEGISLATIVE CLERK. The Senator from Oregon [Mr. MORSE] proposes an amendment to amend further the For- eign Assistance Act of 1961, as amended, and for other purposes; namely- On page 11, line 13, strike out "1.170,000.000" and insert in lieu thereof ??$l,000,000,000,'. Mr. MORSE. Mr. President, this amendment reduces the sum for military aid to $1 billion. The hearings reveal that military aid has increased for Viet- nam and for one other country whose name is deleted from the committee hearing. The reason is that a 5-year agreement was reached with that country which is still secret. It pledges U.S. military aid in the sum of several tens of millions each year. The Congress has not been notified, except when the foreign aid bill was presented with this amount in it for the next fiscal year. The Congress has never passed on the advisability of this agreement. The American people have never been told of it. Yet when we see the foreign aid presentation for next year, there it is. Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 June 10, 1965 CONGRESSIONAL RECORD - SENATE It is a prior commitment. It was never made by Congress nor had Congress ever heard of it; yet we are told it is a com- mitment on which Congress must make good. To digress from my brief manuscript, I have just put my finger on one of the greatest evils of our whole-foreign aid program, the evil of concealment practiced by this administration against the best interest of Congress and to the great detriment of the American people insofar as their right to full disclosure of the public business is concerned. This administration is increasingly guilty of concealing from the Ameri- can people the facts that the American people are entitled to know about if we are to protect the precious right of free men that in a democracy there is no substitute for full public disclosure of the public's business. I am waiting "all ears" for a Member of the Senate to tell me why the Penta- gon, the State Department, and the White House should be allowed to get by with entering into a secret agreement with a foreign country in regard to mili- tary aid to that country for a 5-year period that will involve many millions of dollars. I know that I have probably spoken to my colleagues to the point of boredom, time and time again, during my 20 years in the Senate, about the precious guaran- tee of the right of the people to know. But during those 20 years there has been a great acceleration of the trend toward government by secrecy and government by executive supremacy. Let the American people know that they cannot go to any library and find a single example of any country in the history of mankind in which the execu- tive of that country became supreme and the people remained free. Executive su- premacy and freedom for the people are irreconcilable, inconsistent concepts of government. Some of my colleagues In the Senate will say we are not over the abyss yet; it is a matter of degree, and we have not gone that far yet. I believe we go too far when we go a step in the direction of government by executive supremacy. I should like to answer another argu- ment that we shall hear undoubtedly before we finish with this statement. We shall hear about Vietnam. This amend- ment has nothing to do with Vietnam. There is no Senator who does not know that if the President continues to prose- cute his shocking, illegal war of outlawry in Asia, he will be here time and time again for additional funds to prosecute that war. Vietnam is used in connec- tion with the foreign aid bill every time they think they can make the argument in order to justify a sum in the bill far in excess of what Congress ought to ap- propriate. We are in a period of war hysteria. All that need be done is to wave the flag into tatters and the votes will be cast for any waste that is advocated in connection with the foreign aid bill. Mr. CLARK. Mr. President, will the Senator yield? Mr. MORSE. I yield. Mr. CLARK. I commend my friend from Oregon and emphasize a point he has made. This amendment to out $170 million off military aid, has nothing to do with Vietnam. The purpose is, hope- fully, to arrange a situation in which we shall not give military aid to the Turks so that they can fight the Greeks, or give military aid to the Greeks so they can fight the Turks, or give military aid to Pakistan so it can fight India, or give military aid to India, so that it can fight Pakistan. I strongly support the Sena- tor from Oregon. Mr. MORSE. I appreciate the Sena- tor's comment very much. I am grateful indeed to the Senator for emphasizing the major thesis of my speech. This pro- posed cut in military aid has nothing to do with Vietnam. One of my purposes in offering the amendment is to try to get the United States back inside the framework of morality. We are a shock- ingly immoral Nation with respect to the policy we are following in connection with military aid. The Senator from Pennsylvania has alluded to one phase of this problem. We have fully equipped Greece and Turkey with American mili- tary aid so that Greece and Turkey stand as a threat to the peace of the world. The United Nations must maintain a peace- keeping force in Cyprus to prevent the outbreak of a major war in that area of the world. No one knows whether we shall succeed in preventing a war there even under the peacekeeping force of the United Nations. The United States has equipped, 100 percent, the military establishments of Pakistan and India. When we have done that, we have gone outside the framework of morality. We have equipped two nations that are threaten- ing to make war against each other over Kashmir. The United Nations has had to move into Kashmir in order to give some hope of preventing those two Amer- ican military-equipped countries from going to war against each other with American equipment. I was shocked the other day to have colleagues in the Senate say, "But, WAYNE they bought a great deal of this military equipment." Imagine that. Does that make it moral?. I say to American labor leaders that the senior Senator from Oregon is exceedingly dis- turbed in connection with their stand on American foreign policy. Too many American labor leaders seem to think that we can justify these millions of dol- lars in foreign aid because 80 percent of the money is spent in the United States and thereby makes jobs for American workers. Let me say to American labor, "I do not intend to support your program in the advocacy of blood money." I yield to no man in Congress or in the country in support of the legitimate objectives of organized labor. But if it is a make- work program for the arms industry which labor desires-what an immoral premise on which to stand. Mr. President, there are many crying domestic needs in this country for the ex- penditure of the savings that the senior Senator from Oregon is at least going to give the Senate an opportunity to vote upon in the days immediately ahead that would help strengthen the greatest de- fense weapon this Republic has; namely, our domestic economy, for if we weaken that economy, we weaken the strength of the Republic. I say to American labor that it would be much better to have American work- ers working in connection with programs that seek to build up the economy of this country than arguing to retain jobs that make it possible for potential belligerents to fight a war against each other with American weapons manufactured by American labor. I repudiate that argument on the part of American labor leaders. By arguing for military aid on the basis of jobs for workers, they are performing a great disservice to the workers of our country. I suggest to them that they join in a tapering-off program with regard to the manufacture of military equipment and join in the development of a wealth- creating series of programs, such as the great reclamation program across the country, from coast to coast. The American people must realize that we are in danger of jeopardizing fu- ture generations of Americans by leaving to them a heritage of a polluted water supply and a falling water table from coast to coast. Go into any New York City hotel in the very hour at which I speak and read the sign that one will find in every room in every hotel in which there is a water faucet urging conserva- tion of water because New York City is in short supply of water already. They are greatly concerned about the potential danger, unless the water table starts coming back, of water rationing in the largest city in the land. Come with me into the West, into the Colorado River Basin, which we think of as a surplus water area, and take note of the great concern of cities in that area in regard to an assurance that there will be an adequate water supply 12 months of the year. Consider the waste of hundreds of mil- lions of dollars in the foreign aid pro- gram. Consider the fact that since 1946 the American taxpayers have been fleeced out of billions of dollars of tax- payers' money in a wasteful and ineffi- cient foreign aid program that has reached, according to the latest figure that was given to me, some $111 billion since 1946, with billions of that money completely wasted. Politicians may think that there is no limit to the patience of the American taxpayer. They may think that they can continue to fool the American tax- payer by waving the flag into tatters every year when we get into a historic debate on foreign aid. I have more confidence in the judg- ment of American taxpayers than have most politicians. When at long last the American taxpayers catch up with Mem- bers of Congress who, year after year, continue to waste money by hundreds of millions of dollars, they will hold them to an accountability at the polls. Their first opportunity will be 1966. I hope the people will take a toll by way of an accountability of the Congress of the United States at the polls in 1966, if that is the only way we can teach politicians. Mr. President, when I think of the edu- cational crisis in America, when I think Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 CONGRESSIONAL RECORD - SENATE June 10, 1965 of what we are doing as a nation of cheaters against the young of this coun- try in denying to them by the tens of thousands an opportunity to develop to their maximum extent their intellectual potential, I am aghast to see Senators vote for a continuation of the waste of hundreds of millions of dollars in a for- eign aid program, denying to the young people of our country adequate schools that they need for the education to which they are entitled as a matter of right. One of, the paradoxes is the millions of dollars that we spend each year for schools under a foreign aid bill with no restricted checks placed upon it in foreign lands, and the difficulty we have in ob- taining adequate financing to meet the educational crisis in this country. As chairman of the Senate Subcom- mittee on Education, I say that there are so many phases of the educational prob- lem that pop up in my mind as I raise the issue, that if I did not leave the issue. I should be on It for the rest of the after- noon and be charged with conducting a filibuster. Yet every moment that I might take In discussing the educational crisis of the United States and arguing for a substitution of millions of dollars in the foreign aid bill for expenditures on the schools of America would really be time well spent. My views are pretty well known to Senators. Let us face it. The votes on the bill are already cast. The lineup has been formed. Pressure has been re- sponded to. Politicians are surrendering right and left to the pressure that states, "You must not disturb the foreign aid bill in an hour of war." I say that In an hour of war we had better start saving our money so that we can use It to a much greater advantage for the protection and security of our country than using it in connection with the foreign aid program, for I happen to believe that we are on our way now to a major war. Is it not a little amusing to hear the alibis, the rationalizations, and the downright misrepresentations of the State Department in regard to trying to qualify the announcement they made the day before yesterday as to what would go on with regard to American troops In South Vietnam? To the American people, I say: Here is one Senator and one member of the Committee on Foreign Relations who does not believe the statements that have been uttered by Dean Rusk and by the administration in regard to what the policy is now. It is no different from that which was announced yesterday in regard to the use of American troops in the war in Vietnam. I say to the American people : Do not be fooled. American boys are now pledged to battle in South Vietnam. American boys are going to die by the thousands in the months ahead if this undeclared, unconstitutional, illegal war is allowed to continue. Of course they are committed to combat. Even Dean Rusk becomes hung up in his own se- mantics when he issues a statement, as he did yesterday, that they do not sit over there as hypnotized rabbits. Read that statement. One can reach no other conclusion that that Rusk, in spite of his evasive language, is tacit] admitting that American boys are cor unitted to combat. I am willing to axept that reality. Mr. President, in this Bonne ction I ask unanimous consent to have printed in the RECORD at this point the devastating answer to the Secretary of Slate, which is contained in an editorial published In the New York Times this morning entitled "Ground War in Wishington." It is also a devastating answer' to a large part of the speech of the Se:iator from Connecticut (Mr. DODDl. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: (From the New York Times, Juste 10, 10,351 Gsotme WAR IN WABri7No roN The Johnson Administration's ieclsion au- thorizing a combat role for American troops in South Vietnam is only confr;ned by yes- terday's White House statement; yet the statement is carefully drafted to five the Im- pression that the United States is not em- barking on a radical new course The White House admits ti at General Westmoreland, since March, has :lad the sec- ondary mission of providing "combat sup- port" to South Vietnamese units in trouble. But why did Secretary Rusk it the time say that "ground combat personnel is not what is needed" and that there would be "a problem about foreign ground tr Sops under- taking the kind of pacification effort that Is required in South Vietnam"? The White House denies tha- the Presi- dent ordered the new combat role in March "or at any other time." It is explained that General Westmoreland's authorl v was "im- plicit" In the assignment of ma; ines to Da- nang. Yet, how could "implicit" authority have been so explicitly defined all along as was finally claimed In yesterc,ay's White House statement? It is there lit alted to In- stances when South Vietnamea , forces are "faced with aggressive attack when other effective reserves are not avallab a and when In his f Westmoreland'sl judgment the mCI- tary situation urgently requires It." As recently as last Saturdai the State Department did not mention this role when, at the request of newsmen, it r.rdeflned the mission of American troops in i statement reportedly approved at the high at levels of the Department. It admitted th it American troops had stepped beyond an a ivisory role, but described their function abnply as de- fense of American inatallatioi s and pa- trolling nearby. The new role of "combat support," which the State Department finally am ounced this week, seems to be one of serving as a strategic and tactical reserve for the South Vietnamese Army. It presumably can take American combat troops anywhere In the country. De- spite an effort semantically to ',xeiude "of- fensive" campaigns. It appears to include aid to South Vietnamese units t sat get Into difficulty during offensive as. well as defen- sive operations- A land war on the continent of Asia, which many of the country's leading military men long have opposed, is not undertaken lightly or without premeditation and careful plan- ning. The doubling of Americr n troops in South Vietnam since March and the reports that the 54.000 now there are bet ig Increased to 70.000 suggest Implementation of a plan approved in February and pre eared much earlier. The time has come for the :'resident to take the country into his confidence and to give the Congress time for a full debate before the war is escalated any further. Mr. MORSE. I was much interested in the statements made on the floor of the Senate yesterday in opposition to a declaration of war. Several Senators expressed their opposition to a declara- tion of war. It is interesting, is it not? What are they afraid of? To give my interpretation, they are afraid of Amer- ican public opinion. The American peo- ple are entitled to know whether or not this Government is going to make war, and continue to make war, in Asia-and we know that is its intention. If it is, the American people are entitled to re- ceive from the President a proposal for a declaration of war, and they are en- titled to receive from Congress a standup count as to who will vote for a declara- tion of war under article I, section 8, of the Constitution of the United States. Let the President bring in that pro- posal for a declaration of war and con- front the American people directly with the issue. Then he will get a direct re- sponse from the American people. It is the opinion of the senior Senator from Oregon that the American people are not in support of an undeclared war in Asia. This is contrary to the statement made by the Senator from Connecticut [Mr. DODD] on the floor of the Senate today, as to most of which I have already an- nounced that I am in strong disagree- ment. The American people are confused, and they will continue to be confused, be- cause of the concealment by the admin- istration of the facts in regard to what is taking place in Asia. The American people are entitled to receive from the administration a clear drawing Of the issue. Either we should go to war legally, under article I, section 8, or the President should proceed to reverse his position and take the position I took in Madison Square Garden the night before last. That position is my answer to the Senator from Wyoming [Mr. MCGEEI, who said earlier today on the floor of the Senate that we who are opposed to the administration's policy in South Vietnam do not offer any alternatives. Mr. President, we have been offering al- ternatives for most of 2 years, only to be met with, until recently, dead silence on the floor of the Senate, although not in the cloakrooms. In the cloakrooms, there has been strong approval of the alternatives: but only silence, until re- cently, on the floor of the Senate. In closing my speech in Madison Square Garden the other night, I said I had no right to criticize my Government in regard to its policies In South Viet- nam unless I were willing to offer alter- native proposals, which I have been offer- ing for many months. I said, "We meet here but a few blocks from the temple of international law and justice-the United Nations. I now recommend to my President that he make use of a procedure in the United Nations Charter which we have not made use of yet, but which we ought to make use of, a procedure calling for an extraordinary session of the General As- sembly of the United Nations. I recom- mend that my President walk out onto that historic platform and proceed to make history that will shock the world, by announcing that the United States lays before the United Nations the threat Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 June 10, 1965 CONGRESSIONAL RECORD - SENATE 12653 to the peace of the world as it now exists this bloodletting. They are asking ques- over the so-called economic projects that in Asia, and that the United States tions. "What will it profit us? Where we have sought to develop in South Viet- pledges its support to the United Na- is the end? What will it accomplish?" nam. tions to arrive at a peaceful, honorable, I have been heard to say, during the The proposal of the President for $89 negotiated settlement through the past 18 months on the floor of the Senate million for so-called economic develop- procedures of the United Nations, thus in speech after speech in opposition to ment in South Vietnam will be largely bringing to an end the killing in Asia this international outlawry of my coun- wasted until we get a negotiated peace. and the threat to the peace of the try in Asia, that we are driving millions We must stop the war. When we get world." of people in the underdeveloped areas of that war stopped, it must be stopped on An interesting incident happened the world into the arms of communism. an honorable basis and stopped on the thereafter. There followed for the next We have the greatest weapon to defeat basis of an understanding that will not hour an increasing demand on the part communism that mankind has ever permit a massacre and blood bath of the of the leaders of that rally for a march forged. That weapon is not hydrogen South Vietnamese by the Communists, on the United Nations Building as the bombs. That weapon is not nuclear war- and will not permit of a blood bath of best way for that group to symbolize its fare. That weapon is not military the Vietcong by the South Vietnamese. protest against U.S. outlawry in might. That weapon is not the substi- Let us not forget that on both sides there Asia. It was the best way for that tution of the jungle law of military force are participants who are ignorant and group to symbolize its protest in opposi- for the rule of law of international jus- illiterate, and are victims of military tion to the record of the administration tire for the settlement of disputes that forces that control and direct their lives. of open violation of article after article threaten. the peace of mankind. That I want to bring the direction of their of the United Nations; in fact, the viola- weapon happens to be economic freedom, lives by military forces to an end. I tion by this country, since 1954, of article which is the very strength of this Re- want an honorable, negotiated peace. after article of the United Nations by public. That weapon happens to be the Then I want to see this great, free land the course of action we have followed giving to the underdeveloped peoples of of ours beat communism in Asia by the in Vietnam. the world the right to be free men eco- exportation of economic freedom to the Without my knowing what was really nomically, because that breeds political people of that area. taking place, because I remained on the freedom. It nourishes the development That will not take place in a year, 5 platform to hear other speakers, arrange- of political freedom. years, or 10 years. That would be a ments were made with the New York We have no more chance of export- long, hard pull. However, I would much City Police Department for a march on ing political freedom to Asia or to Afri- rather spend the next 25 years supporting the United Nations. I wrote to the chief ca -or, for that matter, to any other un the exportation of economic freedom to of police of the New York Police Depart- derdeveloped area of the world-than I Asia than spend billions of dollars of the ment yesterday, expressing my high have of walking down to the Washing- money of the American taxpayers in try- praise for the way the police department ton Monument and putting it on my ing to support a bogged down U.S. handled the demonstration that fol- shoulder and walking away. military force in Asia. That force lowed the meeting. It was announced at Mr. President, we do have a great op- will become bogged down. 11 o'clock that arrangements had been portunity to help make the people in the still waiting, may I say to Mr. MI am still the Seng may of Defense, for made with the police for a march from underdeveloped areas of the world eco- I am Madison Square Garden to the United nomically free. However, we cannot do Mm to come forth with any rebuttal to Nations Plaza. At 20 minutes before it until we first have a peace settlement of General midnight, that march started. in Asia. the Bradley, aft-to the oft-repeated advice advice of Some Senators would be a little amused We in the Senate well know my rea- General Collins, he to the oft padvi elf to read some of the correspondence I sons for fighting the $70.0 million military GMarshall eo ate oft- have already received from superpatriots, program that the President requested repeated General rica of rshal l Eisenhower, because I had the high honor and the for the purpose of fighting an illegal war and to the oft-repeated Gen of Gen- distinct privilege to join with Dr. Ben- in Asia. I fought that proposal first be- and MacArthur, all advice whom told us- while Spook at the head of that column, cause, by his own admission, it was not- eral American military o Colds and while more than 2,500 people out of that needed. He used the measure only as military staff leaders that they are-that audience, at 20 minutes before midnight, a vehicle through which to obtain an- Asia is no place to bog down an American 2 by 2, walked down Broadway, other vote of confidence from the Senate army. across 42d Street, to the Plaza of the and the House by which to continue a happen to believe United Nations for a second rally that policy that he never should have started It nuclear till true. bombs I and atomic bomve was held at 1 o'clock in the morning. in Asia. that is have not changed it. I call again b the Mr. President, this administration is I voted against the measure, too, be- ha havenso Eanged it. for a rebun o whistling by graveyards. But its whis- cause I knew that it would not result in the advice to which I have a butt tling will not prevent filling all the graves the exportation of economic freedom. It other domestic needs in those graveyards if it thinks that the would result only in the further exporta- There are many which save of the grassroots of America happen to be in tion of war to Asia. confronting dollars I am country seeking-to g sthe support of its killing in Asia and the of- I suggested the other day, as Senators millions of twasteful foreign aid program fering of no hope to the American people will recall, with regard to the $89 million out bill can id program for years to come for an ending of those proposal of the President-which was provided the help ie for providing this economic security of at killings. another attempt on his part to get an- In my judgment, if this administra- other vote of confidence in his program this country. They are well known to tion follows its outlawry in Asia, Amer- in Asia-that we cannot build economic the Members of this body-great public ican troops will be bogged down in Asia projects in the Mekong area of South works programs, the great urban renewal for a quarter of a century, at the mini- Vietnam because the area is controlled program, the great need for slum clear- mum. Then, at long last, we shall have by the Vietcong and will continue to be ante programs. Millions of dollars more to come to a negotiated settlement that controlled by the Vietcong until there is will be needed if we are ever to have an could not possibly be.any better than a negotiated peace. effective poverty control program. the negotiated settlement that could be Same of my colleagues did not like Any dollar of saving we are willing to reached now, in my judgment. that. . vote out of the.foreign aid bill will pro- The rally that was held in New York As a member of the Committee on For- duce much more good, eventually, for the City the night before last could be held in eign Relations, I have read too many re- world if spent to meet domestic needs Chicago, the Twin Cities, San Francisco, ports and interviewed too many people here at home, because in that way we will St. Louis, Los Angeles, any other major who have been involved in the adminis- strengthen our Nation at home and will city in the country. This is not a matter tration of our so-called economic aid then be in a stronger position to be of of New York locale. program in South Vietnam not to know assistance with sound programs involving Mr. President, at the roots of America, that the Vietcong have succeeded in sa- the exportation of economic freedom the American people are concerned about botaging and emasculating and taking abroad than will ever be the case if we No. 105--6 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 12654 CONGRESSIONAL. RECORII - SENATE continue to waste huge sums of money under this bill. The last remark I want to make by way of digression from the manuscript deals with the argument Senators will hear over and over again in the days ahead-that this is a very economical foreign aid bill; that it is a barebones bill: that it provides for only $3,380 mil- lion. Mr. President, that sounds good, but even if it stood alone-and it does not stand alone-this so-called bare-bones bill has hulks and humps of fat upon it. The foreign aid bill must be considered in terms of the total foreign assistance bill. The total foreign assistance bill amounts to nearly $7 billion-not $3,380 million. Mr. President, on this amendment I am asking for a saving of $170 million. I repeat, it does not interfere in the slightest with Vietnam. Everyone knows that Vietnam is now in a class by itself. Everyone knows that so long as American boys are being killed in Vietnam, the administration is in a position to come before the Congress and ask for whatever funds it thinks necessary to supplement its financial needs in Asia. But the $170 million I am asking to have taken out of the military foreign aid program deals with other countries. The Foreign Assistance Act has been amended to eliminate military aid to Western Europe except for "prior com- mitments." It contains certain restric- tions on military aid to Latin America, except for "prior commitments." In many ways this is a futile exercise because it is the Department of Defense that enters into these commitments, not the Congress, and because we are not told of them in advance, they are all "prior commitments." so far as Congress is con- cerned. Senators who are not members of the Foreign Relations Committee should sit with me on that committee and listen to the testimony we receive from the Defense Establishment, the State De- partment, and the AID Agency. Talk about making a saving in some of these expenditures, and the representatives of the Defense Department, the State De- partment, or the AID Agency say, "Oh, we have an agreement on that." Who entered into the agreement? The Con- gress? Of course not. For Congress to enter into it would be unthinkable. It would merely be carrying out the basic principles of representative government. It would be consistent with our demo- cratic processes. It would be in keeping with our professing of a government of law, and not of men. These commitments are made in se- cret conferences. These commitments are made by the executive branch of the Government without the advance knowl- edge of the Congress. When we ask. "Did you not tell those countries there was no constitutional authority to bind this Government?" They say, "Well, we told them it was subject to the approval of the Congress." Then they come in with the clincher argument. Senators should see my colleagues, wilt before this sophistry: "It was a hard agreement to negotiate. It was difficult to get them to agree. We had to work lone * and hard to get certain concessions ou?. of them. We do not believe you will want to turn down an agreement that we worked so hard to negotiate. We hope yiu will not want to do so." Let me say to the Congress that until It starts turning down such agreements, until it starts making clear to the execu- tive branch of the Governs Sent that Congress is entitled to give a rproval in advance of any agreement. th ere will be an increase, at a rapid rate. o! this gal- lop down the road toward govt rnment of this country by executive supromacy. Mr. President, I am not at all moved by the fact that the Defense DE partment, the State Department, and tt a AID of- ficials have entered into see- et agree- ments, so far as prior knowled.re of Con- gress is concerned, and the argument that we should not reduce the military aid program because it might interfere with some of those agreements. Such agreements are not binding on Congress. Congress has the authority. if I t Is neces- sary to make savings in th4, military assistance aspects of the bill. to reduce any amounts that any representatives of the State Department, the Dc Iense De- partment, or the AID officials have pro- vided In the agreements they have en- tered Into. It should be dor a for the people. They are entitled to that pro- tection by the Congress. Now we have a new prior co: nmitment on which Congress and the American people will have to pay for 5 y ?ars. Yet all these secret commitment, and the military aid for Vietnam still take only little more than half the total requested for military aid. In 1963, the committee head( d by Gen- eral Clay to study the forelgr aid pro- gram took no serious issue with the theory of military aid-what ever that theory may be. But it did p-otest the number of countries receivini: military aid, and made it clear that we should be contemplating a military aid p -ogram of not more than $1 billion a yea:,. Mr. President, we had it dower to $1.055 billion last year; but under this bill it is back up to $1.170 billion. It will go much higher than i hat again if Congress has not the eapac .ty to say "no.', One of the annual justiflci.tions of- fered for military aid is that it makes available millions of more r fen from other countries, particularly from Asia, who will be on hand to fight ;-ny Com- munist attack or aggresison. Well, the Communist attack Is under- way in South Vietnam. Yet there are no millions of Asians from Japan or South Korea or Taiwan or the Philippines. or Thailand, or Pakistan, or Indio, helping American troops do the fighting. They have our money and our milita y aid but not to help us do any of the fighting, except for a token force frc m South Korea, a token force from A istralia- about which there is great doubt as to whether there is nay commitment for them to go anywhere near ti a line of battle-and a token force offs red from the Philippines. Our so-called Asian allies ha re walked out on us. so far as the war in Asia is June 10, 1965 concerned, but they are taking their mili- tary aid from us by the millions of dol- lars. They are perfectly willing to spend our money to build up their own military prestige and to keep themselves in a position where they can threaten to make war on their neighbors. As I have been heard to say many times. but in the interests of consistency I wish to repeat, the military aid we have supplied to any of these countries-I do not care which one is named-India, Pakistan, Greece, Turkey, Thailand, any other country-will be of absolutely no value to the United States in case of war with Russia. Mr. President, that is my answer to the sophistry of Senators who each year are heard to say, "Oh, but it is cheaper to keep a Pakistani In uniform than an American boy. It is cheaper to keep a South Korean in uniform than an Ameri- can boy. It is cheaper to keep a Turk in uniform than an American boy." There is no cause-to-effect relation- ship in that kind of argument, because It is a complete nonsequitur. If there ever is a war between the United States and Russia, every one of those countries will be dependent for its protection not upon the military aid which the United States has supplied them, but upon the nuclear power of the United States. In case of war between the United States and Russia, it will be a nuclear war-a war which will be over quickly, in an exceedingly short time. Out of it will come no victors, American or Rus- sian. Out of it will come only world devastation. Mr. President, the military route is not the road to peace. The military route is the road to continued war, ending up eventually in a nuclear holocaust. I would rather be condemned in my day by the superpatriots and by those who believe that force is the answer to the threat to peace, by those who have substituted their adrenal glands for their cortexes in facing the issue of war or peace. Mr. President, I will not walk out on a great ideal which has always symbolized my country; namely, that we believe in a peaceful approach to the threat to peace. It is not true that military aid to these countries will strengthen the security and the defense of the United States. The ugly reality is that our military aid to many countries in the world has greatly increased the danger of war. This morning or yesterday there was reported affirmation of a matter with respect to which I warned the Senate about not so many days ago, that our Government is in the process of selling to Saudi Arabia more than $100 million worth of weapons. What a blot on our history. The danger is great. No more than Lady Macbeth will we be able to wipe out that bloody spot. For that aid to Saudi Arabia is aid which will increase the warmaking power of the Arab States. The Arab States continue to threaten to drive into the sea, up to the moment that I speak, the only free nation in all the Middle East. the State of Israel. Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 June 10, 1965 CONGRESSIONAL RECORD - SENATE I hold no brief for any mistakes of Israel, but we cannot justify strength- ening the military power of Arab coun- tries which threaten-to destroy Israel. As I have been heard to say, I am op- posed to military aid to any country in the Middle East, including Israel, for military aid to countries in the Middle East increase the danger of war. I have stated earlier in my speech that the position of my country in the matter of military aid cannot be rec- onciled with morality. I say to my administration today, "Your proposal to send $100 million in arms and military equipment to Saudi Arabia is shockingly immoral. History will condemn us for it, for I am con- vinced that if you continue to build up such war machines as we are building up in the Middle East, the end will be war." We seem to have hurt feelings when critics abroad charge us with being a hypocritical nation, when the ugly real- ity is that the United States is a hypo- critical nation. Our record in foreign policy is a record of hypocrisy. We pro- fess one thing and we practice another. That is hypocrisy. We profess to be- lieve in the rule of law, but we refuse to resort to an application of the rule of law under existing treaty obligations, which really place a compelling duty upon us to resort to the procedures of those treaties to which we have affixed our signature. Are treaties signed by the United States to be but a scrap of paper, except when we believe that carrying out their provisions might be, momentarily, in our national, selfish interest? We cannot maintain peace in the world on the basis of any such premise or any such policy as that. Mr. President, we are hearing from faint noises that suggest that troops from Taiwan might be landed to fight in South Vietnam. Or they might be used as a threat against mainland China. Who would pay for that? Why, it would take more military aid out of Uncle Sam's pocket. Do not forget that for 6 or 7 years we sent tens of millions of dollars worth of military aid to South Vietnam on the basis that it would enable that country to do its own fighting and defend itself. But when a real challenge was encount- ered, Americans have come to do the fighting not just in the air or on the sea, but now on the ground. That is what will happen in South Korea, too, and in Taiwan if either of them is ever put to the test. And their troops are not going to join Americans in South Vietnam in any but the most token numbers. Of Indians, and Paki- stanis, and Japanese we will see none at all. The Indians and Pakistanis are concentrating on fighting each Other with American military aid. I point out to the Senate, and to the American people, that the war has come to Asia, and despite the billions and bil- lions of military aid we have given to Asian countries since the end of World War II, their forces have not joined us in the battle. That is perhaps as much our choice as theirs, because it would cost us tens of billions more to support both their armed forces and their na- tional economies in any kind of a war effort. Every one of the. 2,106 South Koreans in Vietnam, for example, is financed by American money. I ask unanimous consent to have printed at this point in the RECORD the table from page 643 of the committee hearing show- ing free world assistance for Vietnam. The PRESIDING OFFICER (Mr. TYDINGS in the chair). Is there objec- tion? There being no objection, the table was ordered to be printed in the RECORD, as follows: Free world assistance for Vietnam Persons inRVN Canada_______ China--------- Germany----- Italy -------- _ Japan --------- New Zealand__ Philippines --- Thailand ------ United Kingdom. Netherlands Combat advisers, aircraft and crews medical aid, technical aid, civic action aid, and ra- dio stations. Medical aid, scholarships, and wheat. Agricultural aid [deleted ,elec- tric power aid. Professors, technical experts, credits, and 30 ambulances. Surgical team_________________ Electric power aid, medical aid, ambulances, and tran- sistor radios. Karate Instructors, mobile Army surgical hospital, com- bat engineers with security forcer. Army cnglneers, surgical team, and educational aid. Medical aid, psywar assist- ance. [Deleted] cement and roofing. [Deleted]. Police instructions, professor educational and technical equipment. Surgical team_________________ 32 34 r) I Deleted. NOTE.-The French, though their policies in South Vietnam differ from ours, continue to have a number of educators, medical and technical personnel there. Mr. MORSE. Mr. President, the con- tention that military aid and supporting assistance was guaranteeing us allies and allied manpower in the event of an Asian war has been proved false by the war in Vietnam. I strongly suspect that a war anywhere else will prove it wrong in most. parts of the world. Of the countries shown in the chart, we have not extended any direct mili- tary aid to Canada, New Zealand, or Aus- tralia, though they have received some through channels of regional aid. But through fiscal year 1964, China had re- ceived $2.458 billion from us in military aid. Germany had received $951.6 mil- lion; Italy, $2.312 billion; the Nether- lands, $3.242 billion; the United King- dom, $1.035 billion; Japan, $1.057 billion; Korea, $2.191 billion; the Philippines, $445 million; and Thailand, $68 million through 1963. I do not mean to single out these coun- tries for criticism because.they at least have some people in South Vietnam, even if they are not combatants. Dozens of other recipients of U.S. military aid over the years have no one there at all. Nor do I believe we should continue to increase our military aid program in the absence of some indication of its fu- ture objectives. Take, for example, the constant question of obsolescence. Each year the Foreign Relations Committee is told that country A or B needs new tanks to replace some we furnished them 5 years ago and which are now "obsole- scent." Or we are told that a given army must be reequipped because our earlier military aid is now obsolete. That is good for the military equipment manufac- turers. Who knows what the standards are for obsolescence? And who knows how long we plan to go on arming the world with new material? There is never a point at which some nation's military equip- ment will not become obsolescent. Do we intend to go on indefinitely replacing existing equipment with new? Never in the life of the military aid program have I heard any indication from the Defense Department of the an- ticipated future programing for military aid. There is another important omission from our projected military aid program. That is an estimate of how much it would cost the United States to support any one of these countries in the event it became involved in a major war. Some are say- ing that the soldiers of Taiwan should be transported to mainland China to di- vert China away from Vietnam; or that Taiwan troops should be moved to South Vietnam to fight in the war against the guerrillas. But none of these voices ever tells us how much it would cost the United States to support a war economy, iIn Taiwan. Would it be enough that we would have to arm, equip, and supply all her soldiers? Or would our economic aid to Taiwan also have to be expanded, as some form of lend-lease? Here again, we went through all this with South Vietnam. But the cost ? of maintaining South Vietnam on a war footing has vastly exceeded the cost of maintaining her even in the years im- mediately after the French withdrawal. I have no sympathy for the argument that military aid to undeveloped coun- tries gives us something for nothing, or that it gives us cheap manpower for use in place of American soldiers. Nothing of the sort has happened in the one place where a war is going on. Yet this is the basis for our military aid in most parts of the world. It should be examined right down to its roots. In the meantime, the level should not go above $1 billion. Mr. LAUSCHE. Mr. President, I send to the desk an amendment, the essence of which is to reduce the amount of -20 percent in the pending bill to be used in the discretion of the administration for multilateral aid. My amendment would reduce that 20-percent allowance to 12 percent. In principle, it is identical with the proposal that was voted upon at 1:30 this afternoon, the Gruening amend- ments, to reduce the 20 percent to 10 percent. My amendment would reduce the 20 percent to 12 percent. The PRESIDING OFFICER. The amendment will be received and printed, and will lie on the table. The question is on agreeing to the amendment offered by the Senator from Oregon. Mr. MANSFIELD. Mr. President, I ask unanimous consent that the vote on Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 CONGRESSIONAL RECORE - SENATE June 10, 1965 the amendment be had at 5 minutes after 3. 10 minutes from now. In the mean- time, I suggest the absence of a quorum. The PRESIDING OFFICER. With- out objection, it is so ordered. The clerk will call the roll. The legislative clerk proceeded to call the roll. Mr. MANSFIELD. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. With- out objection, it is so ordered. Mr. MANSFIELD. Mr. President, I ask for the yeas and nays. The yeas and nays were ordered. The PRESIDING OFFICER. The question is on agreeing to the amend- ment of the Senator from Oregon [Mr. MORSE]. On this question the yeas and nays have been ordered, and the clerk will call the roll. The legislative clerk called the roll. Mr. LONG of Louisiana. I announce that the Senator from Tennessee [Mr. BASS], the Senator from Virginia [Mr. BYRDI, the Senator from Arizona [Mr. HAYDEN], the Senator from Hawaii [Mr. INOUYE], the Senator from Missouri [Mr. LONG], and the Senator from Wash- ington [Mr. MAGNUSONI are absent on official business. I also announce that the Senator from North Dakota [Mr. BURDICK], the Sena- tor from Minnesota [Mr. McCARTHYi. the Senator from Maine [Mr. MUSKIE], the Senator from Oregon [Mrs. N?USER- cER], the Senator from South Carolina 1 Mr. RUSSELL], and the Senator from Alabama [ Mr. SPARKMAN I are necessarily absent. I further announce that, if present and voting, the Senator from North Dakota I Mr. BURDICKI would vote "yea." If urther announce that, if present and voting, the Senator from Washington IMr. MAGNUSON] would vote "nay." On this vote, the Senator from Vir- ginia [Mr. BYRD] is paired with the Sen- ator from Alabama [Mr. SPARKMAN). If present and voting, the Senator from Virginia would vote "Yea," and the Sen- ator from Alabama would vote "nay." Mr. KUCHEL. I announce that the Senator from Kansas [Mr. CARLSON I Is necessarily absent. The Senator from Colorado [Mr. AL- LOTT I and the Senator from Kansas [Mr. PEARSON] are absent on official business and, if present and voting, would each vote "nay." The result was announced--yeas 22. nays 63, as follows: INo. 115 Leg.] YEAS-22 Bartlett Ervin Morse Bible Uruening Nelson Church Hart Pell Clark Hartke Proxmire Cotton Hruska Randolph Curtis Long, La. Young, Ohio Douglas McClellan Ellender McGovern NAYS--83 Aiken Dlrksen Hill Anderson Dodd Holland Bayh Dominick Jackson Bennett Eastland Javlts Boggs Fannin Jordan, NC. Brewster Fong Jordan. Idaho Byrd, W. Va. Fulbrlght Kennedy, Uses. Cannon Gore Kennedy, K.Y. Case Harris Kuchef Cooper Hickenlooper Lausche Mansfield Mundt Smi It McGee Murphy Ster nis McIntyre Pastore Sym tngton McNamara Prouty Tall lodge Metcalf Ribicoff Thurmond Miller Robertson Tow er ondaie Russell. Gs. Ted ngs AI Monroney Saltonstall Wit lams, N.J Montoya Scott Wit lams, Del Morton Simpson Yar iorough Moss Smathers Yoc ng. N. Dak. NOT VOTING-15 Allott Hayden 11u: kie Maas Inouye Neuberger Burdick f ong, Mo. Pea Bon Byrd, Va. Magnuson Rus tell. B.C. Carlson McCarthy Spa ?kman So Mr. MORSE's amendmnr t was re- iected. Mr. FULBRIGHT. Mr. Pl esident. I move that the Senate reconsider the vote by which the amend nent was iriected. Mr. JAVITS_ I move to la! that mo- I.ion on the table. The motion to lay on the table was agreed to. Mr. PROXMIRE obtained the floor. Mr. HARRIS. Mr. Preside: it, will the Senator from Wisconsin yield to permit me to call up an amendment? Mr. PROXMIRE. Mr. Pi esident, I ask unanimous consent that, without losing my right to the floor. ] may yield to the Senator from Oklahoma. Mr. HARRIS. Mr. President, I call up my amendment which is it the desk and ask that it be read and made the pending business. The PRESIDING OFFI =. The amendment will be stated. The LEGISLATIVE CLERK. C n page 18, after line 22. it is proposed tt insert the following : (31 add the following new suasectton: "(n) No assistance shall bi furnished under this Act, and no sales shall be made under title I of the Agricultural Trade Development and Assistance Aa of 1954, as amended, to the United Arab Ri public or to Indonesia so long as either of eu:h countries shall continue to oommlt aggre.ston, as the President shall determine in accnsrdance with section 6201 it of the Foreign Ai sistance Act of 1961, as amended." Mr. HARRIS. Mr. Preside lot, on this amendment I ask for the yeas and nays. The yeas and nays were crdered. Mr. PROXMIRE obtained I he floor. Mr. PROX'MIRE. Mr. F resident, I ask unanimous consent that 1 may yield briefly to the Senator from 0 ?egon with- out losing my right to the floor. The PRESIDING OFFIC] R. With- out objection, it Is so ordered. THE U.S. USE OF A LOF BYIST AS INTERMEDIARY WITH it DOMINI- CAN POLITICIAN Mr. MORSE. Mr. President, I have a statement to make as chair nan of the Subcommittee on Latin American Affairs. One of the more disturbing elements in our troubles with the Dor linican Re- public is one that need rift have oc- ciu'red and which certainl; i need not have occurred and which ce:'tainly need not continue. It is the use by the United States of a lobbyist as Lltermedaary with a Dominican politician The lobbyist Is I. Irving Davidson, and the Dominican he represents is Joaquin Balaquer. Mr. Balaquer was President of the Dominican Republic for a time after the death of Trujillo. I do not doubt that Balaquar is still a factor in Dominican politics, and he rightly should be considered as a possi- bility for public office there again. Moreover, I expect the United States to have some contacts with him as we seek to put together a new government down there, pending new elections. But to use Mr. Davidson as the inter - mediary is completely unnecessary and cannot help but cloud still further the l.ood intentions of the United States. Let us face the fact that our virtual oc- cupation of the Dominican Republic and our current, undisguised intention of in- stalling a new government favorable to the United States is not exactly enhanc- ing our standing or our good name in the Western Hemisphere. It is a dirty business at best. But we are making it dirtier by includ- ing in our dealings a paid lobbyist who has advertised his claimed connections with the President by advising his cli- ents in Central America that in 1960 he had assurances from the "L.B.J. policy board" that there will be a general housecleaning of the policymakers of the State Department for Central America, and that the same "L.B.J. policy board" had also promised him "first refusal for representations-ambassadorial, mili- tary, et al." Mr. Davidson made these claims in a letter to Senor Luis Somoza, of Nicara- gua, its President, and one of his clients, In a letter dated July 7, 1960. This let- ter and Mr. Davidson's testimony about it came up in the inquiry of the Foreign Relations Committee into the activities of agents for foreign governments. I ask unanimous consent that portions of the testimony of Mr. Davidson before the committee In 1963 be printed at the conclusion of my remarks. The PRESIDING OFFICER. Without objection, it is so ordered. 4See exhibit 1.) Mr. MORSE. Mr. President, Mr. Davidson is an influence peddler. Among his clients in 1963 were Presi- dent Somoza of Nicaragua, Ecuadorian sugar interests, Israel military interests, and economic and military interests of Indonesia. On behalf of these clients, he seeks grants and loans under the for- eign aid program and sugar quotas. Today, Mr. Davidson's clients also in- clude President Duvalier of Haiti, and a Texas company controlled by the Mur- chison family. Two weeks ago, the Jus- tice Department asked Mr. Davidson t D register as a representative of Mr. Bala- quer as well, which he has not done on the ground that his relations with Bala- quer were conducted at the request of the State Department. One of the items that was included in our hearing record was a letter from Mr. Davidsonto President Somoza in 1956, in which he told him: The colonel is cooperating with me on sev- eral good public relations moves, which will be very beneficial for Nicaragua. For in- stance. he has taken five tickets for the Eisen- hower dinner to be held here on January 20. These tickets, which sell for $100 each are Approved For Release 2005/07/13 : CIA-RDP67B00446R000600130002-0 r~tre PO1 T I TT 0 UNCLASSIFIED CONFIDENTIAL CENTRAL INTELLIGENCE AGENCY OFFICIAL ROUTING SLIP TO NAME AND ADDRESS DATE INITIALS I Mr. Elder 7D5617 2 3 4 5 6 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION SIGNATURE Remarks : Your attention is called to page 12646. FOLD HERE TO RETURN TO SENDER FROM: NAME, ADDRESS AND PHONE NO. DATE Legislative Counsel, 6D0109 UNCLASSIFIED CO 1F AL FORM NO. 237 Use previous editions 2-61 G I