THE FIAT DEAL

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CIA-RDP69B00369R000100240033-3
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December 15, 2016
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April 13, 2004
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33
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May 9, 1967
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May 10, 1,~gVroved For Rq,ViVC7R A~1ffij ,CRECORD BOA 69ROO0 X0240033-3 The bill now goes to the Senate where the funds can be reinstated. Rep. Hervey G. Machen, a Maryland Democrat whose dis- trict includes the Potomac shore, and a group of supporters are rallying all who will hear to write to their Senators and House of Repre- sentatives members to support the restora- tion of the funds into the bill. Neither of Virginia's two Senators nor, as far as we can recall, Virginia's House mem- bers have been put on record on this issue, so important to Northern Virginia and to the preservation of the Old Dominion's historic heritage. We urge all those in sympathy with the program for retaining the Potomac's beauty to make their minds known to their legislators in Congress. Basic Vietnam Policy Was Set by Republicans EXTENSION OF REMARKS OF HON. ABRAHAM J. MULTER OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Wednesday, May 10, 1967 Mr. MULTER. Mr. Speaker, the Re- publicans are trying to disavow their party's role in establishing. the policy followed by President Johnson in Viet- nam. Those of us who have been here since 1954 remember the sequence of events quite clearly. For those who were not here or who have forgotten, the follow- ing column from the May 8, 1967, edition of the Washington Evening Star gives in detail the formulation-by the Repub- licans of the Eisenhower administra- tion-of the very policy some of them are now trying to disavow. The article follows: EISENHOWER DID SET THE BASIC VIETNAM _ POLICY (By Richard Wilson) Among many other matters gotten out of proportion by the Republican Policy Com- mtttee white paper on the Vietnam war is the attitude of the Eisenhower administration toward the conflict in Indochina. The staff of the Republican Policy Com- mittee of the U.S, Senate would have us believe that the Eisenhower attitude was so detached that President Johnson cannot claim his policy Is a natural extension of the Eisenhower policy. This simply is not so. President Dwight D. Eisenhower, Secretary of State John Foster Dulles and Vice Presi- ,dent Richard M. Nixon, in fact and demon- strated by the record, defined repeatedly precisely the basis upon which Johnson un- dertook the massive Vietnam intervention. Research into this matter is very reveal- ing. It reveals that the policy of the U.S. government has been consistent through three administrations, Eisenhower's, Ken- nedy's and Johnson's, over a period of 15 years. The critical and controlling statements on policy were made by Eisenhower, expanded by Dulles and elaborated somewhat beyond their real limits by Nixon. Eisenhower asserted the United States vital interest in arresting A 2317 a fight to send U.S. troops to Indochina if noble document modeled after our own Eisenhower decided it was necessary. Constitution. The national commitment Nixon told an editor's convention on April to free and democratic institutions, as 16, 1954, that if the French failed in Indo- china the Free World could not afford fur- proclaimed in the Constitution of May 3, ther retreat in Asia and "must face up to lives still in the hearts of the Polish the situation and dispatch forces." people in the mother country and in Dulles on Sept. 3, 1953, said Communist other lands throughout the world. China was equipping and supplying the In the words of the Constitution: forces in Indochina and warned th t a a sec- ond Chinese aggression in Asia "could not occur without grave consequences which might not be confined to Indochina." On March 29,'1954, he said the U.S. could not passively accept imposition on Southeast Asia of "the political system of Communist Russia and Its Chinese ally," and though preventing it would involve serious risks they "would be far less than would face us a few years from now if we dare not be resolute today." Eisenhower, it is true, did say that no one could be more bitterly opposed to "ever getting the United States involved in a hot war in that region than I am," but declared what he was doing, which was supporting the French at the rate of $400 million a year, was intended to avoid getting into a hot war. That was on Feb. 10, 1954. On March 10, 1954, under the pressure of Senator Sten- nis' stated fears that a war might be caused by the killing of U.S. Air Force technicians Eisenhower had sent to Indochina, the President declared: "I will say this: There is going to be no war unless it is a result of the constitutional process that is placed upon Congress to declare it. Now, let us have that clear." Then on April 26, 1954, Eisenhower told the U.S. Chamber of Commerce: "No matter how the struggle may have started, it has long since become one of the testing places between a free form of government and dictatorship. Its outcome is going to have the greatest significance for us, and possibly for a long time to come." States owe our citizens of Polish an- So let there be no more dissembling about cestry. The dedication of the Polish what the true attitude of the Eisenhower people to the principles of their Constitu- administration was toward the war in Viet- tion is the best assurance that one day nam. All this was 13 to 15 years ago. No one their land will again stand in full free- can say whether under similar circumetn,it., sive intervention Johnson decided was necessary. But what can be said with certainty is that the concept of what is involved in Southeast Asia and its long range signifi- cance and importance was the same in the Eisenhower administration as it is in the Johnson administration. Bobby Kennedy is right. There is sufficient blame in this whole matter to go around for everybody, including himself, when he was advising President John F. Kennedy. The Indochina policy has been a prolonged and sustained bipartisan policy undertaken in the conviction that it is In the national interest of this country and is vital to the Free World to arrest the expansion of com- munism In Asia. The 176th Anniversary of the Polish Constitution SPEECH OF HON. JOSEPH G. MINISH ing so closely upon the termination of the IN THE HOUSE OF REPRESENTATIVES Korean War. His words were neither weasel- Wednesday, May 3, 1967 Ing nor vague. With the Viet Minh insurgents carrying on Mr. MINISH. Mr. Speaker, it is right a general attack against Dien Bien Phu, the and proper that all Americans join in Republican leader in the Senate William F. observing this 176th anniversary of the Knowland of California, volunteered to lead adoption of the Polish Constitution, that All Power in civil society should be de- rived from the will of the people, its end and object being the preservation and integrity of the state, the civil liberty and the good order of society, on an equal scale and on a lasting foundation. It is tragic that the gallant Poles have been so cruelly thwarted in their per- sistent efforts to move forward as a free nation, first by partition by the empires of Russia, Austria, and Prussia, and later by the totalitarian forces of nazism and communism. The United States cham- pioned Poland's right to freedom at the end of the First World War and gladly witnessed the rebirth of the new Poland which tragically was engulfed by the forces of nazism in 1939. At the end of the last war we did our very best to see a free and independent Poland, but un- fortunately we were not successful. Today we hope and pray that the indomitable will and brave spirit of the people of Poland will sustain them until their longed-for liberation into a free and independent country can be achieved. On this the 176th anniversary of the Constitution, I am happy to send sincere greetings to the people of Poland and also to express the genuine appreciation EXTENSION OF REMARKS of HON. THOMAS L. ASHLEY OF OHIO IN THE HOUSE OF REPRESENTATIVES Tuesday, May 9, 1967 Mr. ASHLEY. Mr. Speaker, an edi- torial in the may 8, 1967, edition of the Washington Post discusses intelligently and reasonably some of the issues in- volved in proposed U.S. participation in the Italian-Soviet Fiat plant deal. The question of U.S. participation should be considered on the basis of our total short- and long-term national interests and not on the basis of shortsighted visceral attitudes. This editorial is very timely and germane to the broader ques- tion of East-West relations. I insert this editorial in the RECORD: THE FIAT DEAL Whether the Government should finance export of machine tools for the Soviet Fiat' plant is, in economic terms, not just a mat- ter of a one-shot $50 million deal. The issue is whether the United States will put on- limits or off-limits a major world market, one that is growing and one that is particularly interested in the advanced technology which Approved For Release 2004/05/05 : CIA-RDP69B00369R000100240033-3 Approved For Release 2004/05/05 RD R000100240V 10, Y!!~ii7 A2318 CONGRESSIONAL RECOR - is the American forte. The precise size and REMARKS Or HERMAN ROBINSON, ELIZABETH- That's our problem In this matter of biring shape Of that market cannot be foreseen. TON, TENN., CHAIRMAN, TENNESSEE GovER- the handicapped. saw together. ~cno What can be foreseen is the outrage and NOR'S COMMITTEE ON EMPLOYMENT OF THE put the pieces of the jig-s why frustration that would arise from 116 dtardy n Sz HANDICAPPED, BEFORE THE SECOND P ER RAL wthat' ant to talk to you it. here about missed. n this occasion-C realization that a good opportunity DENT'S Co![Mr2'TEPs ON EMPLOYMENT OF THE We need to look our problems and fears The path to that opportunity lies in legs- HANDICAPPED. in the eye-and conquer them. Export-Import Bank, ht now--? And we need to be able to see the gpl~or- lation to the G carry on the We could close this program right that always accompany our paob- he Government agency that hat would guaran- and maybe we should. What can I say that tee credit to sell the machine tools to o Fiat; Can add anything to what these people, these sme of us, unfortunately, never see be- Fiat will sell them to Russia in a $1 billion handicapped people, have just demonstrated yond the pus, unf There y, quite a few auto-plant package. The House Banking and to your Currency Committee has just beat back a I tell you that If we didn't have a good "fear words" among us today. War is one- cancer move to exblock pected the Flat deal; similar moves r picture of what our work is all about, we and with demonstration reason. is Race one; is one; strike is one; poverty is one; are expected on the House , If not sooner have it now. is one, and handicapped is one-a bi?, De. in the Senate e Banking Committee. ed iAdmire- The only question remaining is: "What Some n of us h start dodging and ducking Istration. he deal deal spokesmen testified forthrightly for are we going to do about it?" t the in the House hearings but the cru- We hear a lot about problems. when the word "handicapped" is mentio.ied. cial voice, the business community's, has We do not hear enough about oppor- Yet we know that there is more trouble in this area than any other, in so far as prob- yet to be heard. tunnies. lams of employment are concerned. Behind most. opposition is the visceral view I believe we have as many opportuntles in I don't have to tell you that uneDrxloy- that the United States should not trade with portunities to our problems. .... ment percentages are down, overall. the Soviet Union while it supports the enemy And what we have seen with our own eyes Vietnam. Those most deeply bound this yesterday and this morning shows us clearly But they remain relatively high among the viped, as you know. view were not reassured even. whelk the he Na- what can happen when we apply our op- handicapped, Poyrty? Trouble? Don't all lion's military and intelligence chiefs test portunities to our problems these tto go tope+therT and you beg.n lied that there are bones of strategic objections. My home town is nestled in the Appala- tEmploy hese tend en the handicapped, tog together? it It is deep perhaps in can the only bones be eroded many by citizens, time, and not oliians. The other day a lady walked into our III- curing some other sicknesses, too. argued away. Now, ladies and gentlemen, I am not to escape from cent store to buy a birthday present for her speaking theoretically. I am not telling am you The fact that, trying sop what somebody I have somebody read. I am not just repeat- p the unrelieved East-West antagonism expect the 10-year-old clerk son, pulled down one of those put- something past the United States cannot expect together toys-you know the kind. They g telling you wI have experienced, spurt quickly into unrelieved serenity and d come with an assortment of nuts, bolts, I was telling you what from birth. I still e lag peace ndlc and Congressionai es but there may screws, wheels, circles, squares, gee-haws and The doctors told my mother and father I lag behind changing world realties but hee-haws-a little bit of everything. would never walk or talk--and I didn't until that th a good r has r 7.ed, In doubt "But," asked the mother, "Isn't this a lit- =was seven. years old. that the new era has arrived. In the in- tie complicated for a young boy?" They said I would never learn anyt,hi.nz3- b but I did learn, not much maybe, but bee-fears of of -f err error long and and habitst3 o b of distrust thatstrust may will "Oh no, not complicated," the clerk told tug at chances for East-West cooperation and her, "but educational) It helps a boy adjust Something;. to the world in which he lives. You see, no And here I am today doing the best l can at of latest hopes worthy ob yeobj days. The Fiat the deal is the matter how he puts it together, it's wrong!" with what I have-not doing very well, per latejectivil air agollowing the consula A pretty good commentary, wouldn't you Naps, but doing, nevertheless. frefu and the co war nt, and of this fragile What I have done, others can do beiter-- fateful tug between cold war say') What does seem that no matter how we put if given the chance. And they must be given Herman Robinson, of Elizabethton, Tean,, Speaks on the Employment of the Handicapped o . g. too muc not every OF HON. JAMES H (JIMMY) QUILLEN it together, it's wrong. the chance. Vietnam, the population explosion, the If kind and concerned individuals hadn't soaring crime rate, the climbing divorce rate, given me it chance, I would have been a riots and demonstrations in the streets, re- nothing: Certainly I would not be addressing volts on the college campus, disrespect for you here today. the flag, beatniks and Vietniks. My affiiction was spastic paralysis. My d Yes, these we have with us--But they are hands shook. I walked like a man who ha People got out of my way h t drink thin We are beginning to put the puzzle together ball-anal everybody laughed. It was a Rig In end out of school.. right. joke , Our program this morning is surely proof Then came the big turning point 'ln my OF TENNESSEE of that. So don't sell us short. We are not life. The high school coach took me in hand. IN THE HOUSE OF REPRESENTATIVES about to give up the fight. He made me the waterboy, and I warn happy. It was my privilege a couple of years ago to But I doubt that he was happy. Biicause Monday, May .4, 1967 visit Russia on a people-to-people mission. on several occasions I spilled so much water Mr. QUILLEN. Mr. Speaker, one of While I was there I think I learned some that opposing teams accused him of "wetting the most moving speeches I have ever things. One, the Russian people are alot like down" the field. read is the one made by my good friend, our people, two, the Russians don't have And our players would say "Coach, don't the Second gall hire-the-handicapped-problems. Under their let Herman have the ball. He'll shake ill the Herman Robinson, to system, the M.D. tells the commisar what a air out of it." eral session, annual meeting of the Presi- Phan is capable of doing. The commisar tells Oh y it was a big joke-and the fellows dent's Committee on Employment of the the factory head of the farm manager to put couldn't get enough of it. Handicapped, at the Washington Hilton him to work-and that takes care of that. But, let me tell you, the next year or two, Hotel, Washington, D.C., on April 28, Everybody does something-he does what he they got enough! For I went out and mixed 1967. is told to do. Those who don't or can't aren't with them--and eventually made the team. likely to eat. It's that cold-blodded-and the And Started giving out as many lict:s as I Mr. Robinson is chairman of the Ten- state determines what, when, where, why and was getting1 nessee Governor's Committee on Em.- how. When I would make a bad mistake, Coach ployment of the Handicapped. Now, in our democratic society, we can't would say, "Herman, you just stay in there Mr. Speaker, Mr. Robinson is a former order any individual-handicapped or not- and keep plugging." He was an inspiration State senator, and he is also the best to take this or that job. through, the years, example that could ever be given to the Thank God, there is a right of choice They called him "Mule," and I think that handicapped, for his courage, patience, here--and the individual-although handi- was because he was too darn stubborn. to capped is not yet the pawn of the state. May give up on people like me. and faith have hurdled him over obsta- he never be! I am so humbly glad that "Mule" never did ales that few of us are asked to face. But the free and voluntary nature of our laugh at me back in those days when I was He is truly an inspiration for us all. way does impose its penalties. We have to do a blundering kid, and be was a young? coach I am proud to call him my friend, and by understanding and compassion and wis- turning out champions, asee nd lie le"? es yhere ou. I insert his speech at this point in the dom what the Communists do by decree and Would up, like to RECORD. edict. Approved For Release 2004/05/05 : CIA-RDP69B00369R000100240033-3 R2M8 ~$A. JI NPJ9B7?8 9A000100240033-3 May YD, 196~pproved F`or F~e the acquisition of necessary equipment and instructional matexjals) of programs which are designed to upgrade the quality of the entire program of schools consisting of a large proportion of children from non- English-speaking low-income families or special programs designed jo meet the edu- cational needs of children in areas having high concentrations of children from non- English-speaking low-income families, in- cluding "(1) intensive early childhood programs involving bilingual education techniques de- signed to provide children during the pre- school, kindergarten, and early elementary years with educational experiences which will enhance their learning potential; "(2) special programs or projects designed to supplement and enrich the programs of elementary and secondary schools, including bilingual education programs and bicultural education programs which acquaint stu- dents from both English-speaking and non- English-speaking homes with the history and culture associated wjth each language; "(3) comprehensive programs of support- ive services to students, including guidance and counseling, remedial instruction, sum- mer programs, psychological and social work services, health and,putrition programs, and efforts to establish;,, closer cooperation be- tween the school and the home; and "(4) adult education programs related to the purposes of this title, particularly for parents of children. participating in .bilin- . `Approval of project applications "SEC. 703. (a) A grant may be made under this title only for a project under clause (a) of section 102 or a project involving pro- grams under both of clauses (b) and (c) of section 702, upon application submitted to the Commissioner jointly by a local educa- tional agency and an institution of higher education, at such time or times, in such manner, and accompanied by such Informa- tion as the Commissioner deems necessary. Such application shall- "(1) provide that the local educational agency and the institution of higher educa- tion jointly submitting the application will be responsible for carrying out the programs for which assistance is sought under this title; "(2) set forth procedures and policies which assure that the training provided by the institution of higher education for teachers' and teacher-aides will be coordi- nated with the bilingual education programs of the local educational agency in which such persons are serving or will serve; "(3) provide for such methods of admin- istratlon as Will best carry out the purposes ,of this title; "(4) set forth policies and procedures which assure that the Federal funds made availableunder this title will be so used as to supplement and, to the extent practicable, increase the level of funds that would, in the absence of assistance under this title, be made available by the applicant for the education of children served by programs assisted under this title, and in no case sup- plant such funds; "(6) show the estimated total, current educational expenditure per pupil partici- pating in the programs for which assistance is sought under this title; "(6) provide for such fiscal control and fund accounting procedures as may be nec- essary to assure proper disbursement of and accounting for Federal funds paid to the H5319 to extend his remarks at this point in RECORD and to include extraneous mat- ter.) [Mr. GONZALEZ' remarks will appear hereafter in the Appendix.] (Mr. GONZALEZ (at the request of Mr. MONTGOMERY) was granted permission to extend his remarks at this point in RECORD and to include extraneous mat- ter.) [Mr. GONZALEZ' remarks will appear hereafter in the Appendix.] SOCIAL SECURITY IMPROVEMENTS (Mr. ST GERMAIN (at the request of Mr. MONTGOMERY) was granted permis- sion to extend his remarks at this point in the RECORD and to include extraneous matter.) Mr. ST GERMAIN, Mr. Speaker, our senior citizens should be able to look upon the sunset of their lives with the assurance that they will not be darkened by the ugly shadow of poverty. We in the Congress must take the nec- essary legislative steps to improve our social security system so that our senior citizens will have the assurance they so rightfuly deserve that their retirement years will be lived in dignity and self- respect. I have received a resolution from the Rhode Island chapter of the National Council of Senior Citizens requesting such action which I would like to insert into the RECORD at this time: RESOLUTION FOR SOCIAL SECURITY IMPROVEMENTS Whereas, President Johnson has urged the Congress of the United States to' increase Social Security benefits by an average of 20 percent with the biggest proportionate share going to the 211/2 million retirees who now get only the minimum of $44 a month ($66 for a couple); and Whereas, even the proposed increases would fall short of assuring Social Security beneficiaries genuine financial independence, as contemplated by the Social Security Act; and Whereas, many other nations, far less af- fluent than the United States, have far more adequate social welfare systems; and Whereas, no remotely comparable insur- ance protection is available to Americans at any price; Therefore be it resolved, that the Congress of the United States take prompt, positive action to attack the deficiencies that exist in the Social Security system, so that older Americans, widows and children, and the dis- abled can live out their retirement years in dignity and self-respect rather than in pov- erty and despair; and Be it further resolved, since the program's biggest single defect is the lack of adequate cash benefits, that the Congress act to in- crease these benefits as proposed by the President; and Be it further resolved that copies of this resolution be sent to Senator Pastore, Sen- ator Pell, Congressman St Germain, Con- gressman Tiernan, and Chairman Wilbur Mills, requesting them to support the Presi- dent's proposals, and to place this resolu- tion in the records of Congress; and Be it further resolved that this resolution be given the fullest publicity through the Approved For Release 2004/05/05 : CIA-RDP69B00369R000100240033-3 as the Commissioner may find necessary to assure the correctness and verification of such reports; and "(8) provide assurance that, to the extent consistent with law, provision has been made for the participation in the project of non- English-speaking children who are not en- rolled in public school on a full-time basis. "(b) Applications for grants under this title may be approved by the Commissioner only if- "(1) the application meets the require- ments set forth in subsection (a); "(2) the project set forth in the applica- tion is of such size, scope, quality and design as to provide reasonable assurance of making a substantial impact in meeting the special educational needs of persons who come from non-English-speaking low-income families; and "(3) approval of the project is consistent with criteria established by the Commission- er, including criteria designed to achieve an equitable distributionof assistance under this title and criteria designed to take' into account the impact upon the educational programs in communities in which the num- ber of non-English-speaking persons from low-income families constitutes a substan- tial proportion of the population. "(c) Amendments of applications shall, except as the Commissioner may otherwise provide by or pursuant to regulations, be subject to approval in the same manner as original applications. "Payments "SEC. 704. (a) The Commissioner shall pay to each applicant which has an applica- tion for a project approved under this title such amounts as the applicant may expend under the terms of the grant, which may include an amount for development of the proposal of not to exceed one per centum of the grant in the first year of a project as- sisted under this title, "(b) Payments under this title may be made in installments and in advance or by way of reimbursement, with necessary ad- justments on account of overpayments or underpayments. "Labor standards "SEC. 705. All laborers and mechanics em- ployed by contractors or subcontractors on -all construction projects assisted under this title shall be paid wages at rates not less than those prevailing on similar construc- tion in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5). The Secretary of Labor shall have with respect to the labor standards spe- cified in this section the authority and func- tions set forth in Reorganization Plan Num- bered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z- 15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c)." SEC. 3. (a) That part of section 801 (as so redesignated by section 2 of this Act) of the Elementary and Secondary Education Act of 1965 which precedes clause (a) is amended by striking out "and V" and inserting in lieu thereof "V, and VII". (b) Clause (j) of such 801 is amended by striking out "title II and title III," and in- serting in lieu thereof "titles It, III, and VII". (Mr. GONZALEZ (at the request of Mr. MONTGOMERY) was granted permission to extend his remarks at this point in RECORD and to include extraneous mat- ter.) [Mr. GONZALEZ' remarks will appear hereafter in the Appendix.] (Mr. GONZALEZ (at the request of Mr. MONTGOMERY) was granted permission H 5320 Approved For Ca3"8TtESSIbON/ f : 69 &?PO00100240033*ay 10,. 1967 RUMANIAN NATIONAL HOLIDAY (Mr. ST GERMAIN (at the request of Mr. MONTGOMERY) was granted permis- sion to extend his remarks at this point in the RECORD and to include extraneous matter.) Mr. ST GERMAIN. Mr. Speaker, on May 10, the national holiday of the Rumanian people is celebrated. On this day in 1866, Prince Charles of Hohen- zollern-Sigmaringen was proclaimed Prince of Rumania and the Rumanian dynasty was founded. Eleven years later, in 1877, the principality of Rumania severed her links with the Ottoman Erii- pire and proclaimed her independence and on May 10, just 15 years after the founding of the Rumanian dynasty, Charles I was crowned Icing of Rumania. Therefore, Mr. Speaker, May 10 is a most significant day for the Rumanian people and for the world because man- kind has been greatly enriched by the many contributions made to it by this great nation. A nation, which we are sad to say, not stands beneath the dark shadow of communism. Twenty-two years have passed since the independence of thisspirited nation has been disrupted by the forces of com- munism but this passage of two decades has not destroyed the will of the Ru- manian people to assert their sense of national pride and national independ- ence. It still remains to pierce the shadow of communism with the bright light of hope and historic strength. This spirit of nationalism is particu- larly significant when we view how it has managed to break the monolithic So- viet bloc into many factions of com- munism, some of which are opposed to each other. And the spirited light of na- tionalism shines brightest in Rumania. Someday I expect this spirit to overcome the darkness of communism and office again clearly place before the world the splendor an independent Rumania. EXP R -I T FIAT CASE (Mr. GERMAIN (at the request of Mr. MONTGOMERY) was granted per- mission to extend his remarks at this point in the RECORD and to Include ex- traneous matter.) Mr. ST GERMAIN. Mr. Speaker, too often immediate considerations cloud ultimate objectives and cause us to veer off course in our endeavor to gain a last- ing world peace. Such is the case concerning the au- thorization of the Export-Import Bank to grant a $40 million credit to Italy's Fiat Co. in order to allow the company to purchase machine tools in the United States for a huge auto plant to be built in the Soviet Union. Because of Russia's assistance to North Vietnam, an immediate consideration, too many people have failed to realize that the loan in question would provide for an increasing amount of the Soviet's industrial capacity to be geared to pro- ducing consumer goods, an ultimate ob- jective. For the benefit of my colleagues, I would like to insert into the RECORD an editorial concerning this matter that ap- peared in the May 9 edition of the Pro- vidence Journal. This article brings to light all the con- siderations of the case at hand and Is as follows: TOOLING UP The House banking committee has acted in the nation's best interest by helping to establish what could be an important ele- ment in President Johnson's plan, for im- proved East-West trade. The committee narrowly rejected an amendment that would have barred the Ex- port-Import Bank from granting a 40-million dollar credit to Italy's Flat company in order to allow the company to purchase machine tools in the U.S. for a huge auto plant to be built in the Soviet Union. The amendment had a political ring be- cause, generally speaking, it would, prohibit the bank from making loans or guaranteeing any loans for the use of any nation whose government is providing goods or services for an antagonist of the United States. The Soviet Union happens to be helping North Vietnam in the Vietnam War, and the machine tool credit involved in the Fiat- Soviet auto plant would fall under this prohibition. The House committee fortunately was guided by long-range and more valid con- siderations concerning U.S. security. It is to America's advantage and in the cause of world peace if an increasing amount of the Soviets' -industrial capacity is geared to producing consumer goods. There also is Im- portant American self-interest in selling ma- chine tools in what probably will be a rapid- ly growing market. It is to be hoped that the entire House will see these advantages as clearly as did the majority of the banking committee and help to move along this important bit of liberal trade legislation. WAR ON POVERTY (Mr. ST GERMAIN (at the request of Mr. MONTGOMERY) was granted per- mission to extend his remarks at this point in the RECORD and to include ex- traneous matter.) Mr. ST GERMAIN. Mr. Speaker, one of the glories of anaffluent society is its ability to combat poverty wherever and whenever it may exist. Being cognizant of our ability to re- move the ugly shadow of poverty from the face of our land, the Congress com- mitted itself to this task by waging a war on poverty. Our commitment is a firm one. And it should be. Therefore, it was with great delight that I listened to President Johnson's stirring words yesterday about the war on poverty. It is clear that we are not backing off from our commitment to fight poverty-- He stated- Nor will we-so long as I have anything to say about it. We are staying for the long pull. Continued the President. These words embrace the tenacity that must be the very backbone of our antipoverty program. The President knows that victory In the war on pov- erty will not be easy to come by. He is aware of the strong political forces that threaten to destroy the war on poverty in favor of short-range political gain. But the President is determined that the war on poverty shall be won and he is willing to stick it out. And, I submit, so is this House and the rest of the Nation. It would indeed be a tragedy for Amer- ica, Mr. Speaker, if this body should fail to face up to the long pull and should fail in its commitment to our under- privileged citizens. And this Is what would occur if the so-called Republican opportunity crusade were to be enacted. This "crusade" would abolish t]:le Office of Economic Opportunity, the only voice the poor have ever had in the Falls of Government. It would scatter the anti- poverty programs throughout the old bureaucracy to agencies whose heads have publicly warned that they are strained to the administrative breaking point by the programs they already have. Much to my dismay, Mr. Speak e.-, there is a great deal of inisunderstanding about the Office of Economic Opportunity and the President's war on poverty. To) many people have failed to realize that the war on poverty is not, a matter of welfare or the dole. On the contrary, its aims are to abolish the dole by making productive members of society out of those., welfare recipients who are not able to help them- selves. And there is another misun6le:..stand- Ing, Mr. Speaker, to which the President alluded yesterday. That is the erroneous idea that the economic opportuntty leg- islation Is an exclusively Negro program. Poverty wears different masks in different places-- The President wisely remarked--- We may sometimes think of it as a Negro affliction, but seven out of ten poor people are white. I would like to emphasize for the bene- fit of my colleagues, Mr. Speaker, that the war on poverty is a comprehensive program and a national program. It has the strong support of the President and of the Nation. It, therefore, deserves the strong support of this body. PANAMA CANAL : BETRAYAL GF OUR TAXPAYERS' VAST INVESTMENT PROPOSED (Mr. FLOOD (at the request of Mr. MONTGOMERY) was granted permission to extend his remarks at this Point in the RECORD and to include extraneous matter.) Mr. FLOOD. Mr. Speaker, since De- cember 18, 1964, the governments of the United States and the Republic of Panama have been engaged in diplo- matic negotiations for a new treaty to replace the treaty of 1903 under which Panama granted in perpetuity to the United States exclusive sovereignty over the Canal. Zone for the construction of the Panama Canal and its perpetual maintenance, operation, sanitation, and protection. In a joint statement by the Presidents of the United States and Panama on September 24, 1965, they announced that agreement had been reached on the fol- lowing points: First. That the 1903 treaty viLl be ab-.< rogated. Second. That the new treaty will of festively recognize Panama's sovereignY over the Canal Zone territory--Unted States owned. Third. That the new treaty will ti- nate after a specified number of ye,#. Fourth. That a primary objecio of the new treaty will be to integr? the Approved For Release 2004/05/05 : CIA-RDP69B00369R000100240033-3