INTERNATIONAL HEALTH, EDUCATION, AND LABOR PROGRAMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP71B00364R000500200042-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 12, 2016
• Document Release Date: January 10, 2002
• Sequence Number: 42
• Publication Date: February 20, 1968
• Content Type: OPEN

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February 20, 1968 CONGRESSIONAL RECORD - SENATE
Credit cards don't eliminate paper-they some 90-million coins a day. But even these
increase it. And paradoxically, they increase ranks aren't solid. Canteen Corp. has come
check volume, too. Charles A. Agemian, ex- up with a machine that takes credit cards.
ecutive vice-president of Chase and one of A LOOK AHEAD
the most caustic critics of banks' credit card
binges (which he marks down to "herd in-
stinct"), argues that for the most part, credit
card sales replace cash sales, and the bills
are' eventually paid by check. Of course,
check-guarantee plans replace some cash
sales, too.
g
proje
Guaranteed checks and overdraft privileges style company, with communications com-
make the step to pre-authorized payments panies, hardware suppliers, and perhaps the
an easier one, says Harold B. Hassinger, exNa- - public sharing ownership. ecutive tional. vice-president of Boston's First Meantime, commercial banks will plunge
tional. because the customer needn't into pre-authorized payments, and many re-
have the cash in his account at"the time. tail outlets will get terminal hookups with
Big department stores with their own cards
have so far given no indication that they'll bank people will computersstart. getting Within 10 bank yearsdata, a few
ever agree to join bank card plans. phones
Stumbling block. This last fact could prove for patterns. Certainly, the shape of the
an enormous stumbling block for the banks, New their homes.
banking industry could undergo great
and has played a large role in past failures of changes. If bank services are as convenient
bank cards. For instance, when Minneapolis' as the nearest telephone, branch banking
two largest banks, Northwestern and First
National, tried cards in 1958, "the experience could laws prohibit eventually branching wither; in and many states where
inde-
was horrendous," remembers Philip B. Harris, pendent neighborhood banks have sprung
of the ity's ' "sbig five" executive vice-president. None a uch as Florida, Illinois, and the Great
of the city's merchants -Dayton's, Plains states-telephone banking may en-
Sears, Penney, Donaldson's and d Wards-
would participate. Yet the "big five" control courage computer sys-
terns will cost of mergers.
The a major chunk of the city's retail market. The many
encourage mergers, sophisticated too, among
banks, which could only sign up small
stores, lost their shirts and finally sold off medium-understandssized banking, urban banks. though, No one who
seriously ex-
the card plans in 1960 to Economy Finance pects all 14,000 banks to coalesce into a
Corp. of Indianapolis. monolith on the order of AT&T, at least not
The fact is, big department stores have a in the few centuries. As it is, the 1966 Bank
big banking business of their own going- Merger Act is currently under heavy fire
S1497
Dale Reistad, in quiet moments, has be-
gun to ponder ways that the lower third of
the population can be taught to manage per-
sonal finances more effectively-perhaps by
bankers who might be recompensed from the
savings the government stands to make in
a checkless system by not printing, sending,
receiving, and storing the 552-million checks
it now issues each year.
Monumental task. The sheer complexities
of designing an electronic money economy
are more than most mortal brains can bear.
A certain discouragement is inevitable. "It
would take thousands of man-years to con-
vert what everyone wants to computers," says
Continental Illinois' Joseph B. Fitzer.
If the banking community wants to avoid
an enormous duplication of effort as every-
one tries to computerize the same services
independently, it may have to make some
quiet deals with the Justice Dept. For this
reason, some outside the industry are con-
sidering sponsoring total bank systems, pre-
designed, that would be leased throughout
the industry.
Most big banks are likely to resist this
sort of intrusion, whether it's economical
or not. Extemporizing on the future of the
computer utilities, which would provide
many services above and beyond banking,
MIT's Fano says: "The system, on the sur-
face, must appear to the customer to be a
single national system; but underneath,
technically and organizationally, it doesn't
have to be" On the other hand, he feels that
"having a specialized system isn't economical.
The private computer system will disappear
faster than companies' own power plants"
when public electric utilities came into be- "
ing.
which they aren't likely to relinquish easily. from the Justice Dept., and any attempted
Whether they make much direct profit on merger may get mired for years.
It is another matter. They clean up on re- Mitchell,
Fed will be Goverrnor nor Mitchell,
volving and installment accounts (on which As for one, for rural doubts they
ul,
"" they charge interest) ,and lose heavily on 30- because of the industry's curiously lopsided
day charge plans (on which they don't). shape: A full 82% of the nation's deposits
Sums up Richard Sprague of Touche , Ross, are in only 15% of the banks. That means
Bailey & Smart, the accountants s that that s special- small-town and country banks have,
ize in the retailing industry: "Most retailers that markets too small to entice urban giants.
lose money over-all on their credit business." The small banks can still get data process-
Two big exceptions: Sears and Penney. ing through their correspondent relation-
TRB&S, along with the noon, Allen & banking in- Hamilton, ships. In some areas where rural bankers
sdue too. accountants
day, they the ey may find find themespecially distrust city slickers, computer co-
selves . Some d we ops are getting under way.
gelves chief mediators between the two o Wary S&Ls. Commercial banks' cousins
giants. But it will be holdouts a uob. (and rivals), the savings banks and savings
The hldtand loan associations, will have to make
Retailers know there's more to their card sure they aren't left out of an electronic
plans than just interest rates. For one, cards payments network. New York University's
give them an identity and image in the Dr. Paul S. Nadler, a leading adviser to and
shopper's pocketbook: A woman with a student of banking, raises the question:
Macy's card goes to Macy's-and often comes "Will a savings and loan association be
back, in person, to pay the bill, which in- given the right to generate savings through
creases sales all the more. Secondly, retailers automatic movement of funds from indi-
who care about customer relations don't viduals' demand deposits into its own check-
want some cold, snobbish banker in the ing account [at a commercial bank]? In
middle if something goes wrong. Thirdly, practice, this is no different from the auto-
they consider the information in their cus- matic payment of utility bills."
tomer .files pure gold for sales analyses and Nadler hypothesizes that commercial
mail promotions, banks, like utilities, might be "forced to
All this makes department stores less eager act as common carriers do in the transporta-
to join in a single system than other in- tion business-having to accept business
dustries with cards-oil companies, for ex- from any and all comers."
ample. Mobil has begun accepting bank Will the public ever do anything but talk
cards: Though Mobil must pay the banks' to computers in a Checkless Society? One of
discount, the cards vastly increase its service the great themes of this century is that
station business. Shell accepts Bank-Ameri- technologies should liberate people to be-
card in California. come' more human, but that they may be
Grocery chains are more stubborn hold- dehumanizing them on the way. Most bank-
outs-and` are contemplating their own ers are aware that their industry must seek
charge plans. Only St. Louis's Mercantile ways to promote personal contact in an elec-
Trust Co. has gained a toehold in this field: tronic banking era. George Mitchell, for in-
It has tied some food stores to its computer stance, wonders if bankers might not become
to identify customers' credit and check- living room financial consultants, a bit like
cashing cards. Meantime, some department the more tactful examples of insurance
stores with established cards are now eying agents. Many in banking foresee their busi-
their small specialty food departments and ness becoming more and more an advisory
are, considering a counter-offensive against one,
the banks: expanding their food depart- Electronic money could present many
ments to supermarket size. sociological opportunities. Fano at MIT spec-
some industries are vehemently against ulates about the possibility of reducing
caeds altogether, including vending machine punishments for tax evasion, for example, as
makers, into whose products the public drops the odds of getting caught increase. ABA's
Who'll take charge?
No one has any idea who will inherit such
a huge new industry. Certainly, those who
would like to design and lease bank systems
intend to stay in the running. Western Union
is one; at least one computer maker is study-
ing the angles. So far AT&T has shown no
sign that it wants to provide computer power
for others, but it hopes to hold onto the
communications lines and to claim a major
portion of the rich computer terminal field.
Even publishing giants have a stake in the
future of the comptuer utility. The question
that visionary bankers are chary of voicing,
but that haunts them nonetheless: Why
shouldn't the banks themselves be the heirs?
Two lawsuits, little publicized, but highly
significant, give some glimpse of the future.
In the Twin Cities, a Minneapolis service
bureau, Data Systems, Inc., teamed up with
the Assn. of Data Processing Service Orga-
nizations to bring suit against St. Paul's
American National Bank & Trust Co. for sell-
ing "nonbanking" computer services. In
Providence, R.I., another service bureau is
suing Industrial National Bank for the same
reason, after the bank took over the city's
ailing data processing department. The Min-
neapolis action was also aimed at the Comp-
troller of the Currency, William B. Camp,
who frankly feels banks should be able to
provide new services related to banking, but
who refuses to be drawn into discussing legal
nuances. The court threw out the case on a
technical point this week.
Fading boundaries. The key word is "re-
lated," and the courts will likely be a long
time untangling its meanings once they come
to grips with the issue. The problem is that in
a world of high-speed information, "there is
no boundary that you can set that is mean-
ingful between one activity and another,"
says Fano. Traditional industry demarca-
tions are breaking down. The fact is-legal
opinions aside-everything is becoming in-.
terrelated.
Banks have been performing services
peripheral to their saving-lending-fund
transfer business for years. All across the
country, banks do payroll computations for
companies, inventories, accounts payable and
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Whatever happens with credit cards, other
moves can definitely be plotted within the
next decade. For one, the Fed will begin tying
its computers to those of big-city banks. It's
already considering a satellite for transmis-
sions among its own regional offices. This
ht well evolve into a Comsat-
ct mi
 S I498
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CONGRESSIONAL RECORD - SENATE February 20, 1968
receivable for stores, lockbox remittance
services for oil and insurance companies,
realty management for latullords, accounting
for doctors and dentists, and mortgage serv-
icing for corporations.
Philadelphia's Fidelity Bank has been run-
ning a computer service bureau since 1961,
now collects $1-million a year in fees. Be-
sides performing. correspondent services, it
does subscription fulfillment (for several
Chilton Co. publications), stock transfer
work, brokerage accounting, and golf handi-
capping for the 26,000 members of the Golf
Assn. of Philadelphia at $2.50 a head.
In Dallas, Preston State Bank, in a stra-
tegem to gain new accounts, operates a
travel agency and a ticket agency for local
theatrical productions. One result: When
the Beatles appeared in Dallas last year,
several thousand people stormed the bank.
Helping. Hand. Continental Illinois' Joseph
Fitaer says that "for a good customer, we'll
entertain any situatio1 that comes to us"-
but he emphasizes that the service must be
"related" to some normal banking function,
no matter how loosely.
The limits are fuzzy indeed, and the fric-
tions are becoming very real. The National
Assn. of Insurance Agents sued to stop
Georgia's Citizen & Southern from selling
Insurance. In Massachusetts, a group of
travel agents is suing South Shore National
Bank for buying a travel agency. In New
York,. First National City's mutual fund, a
natural extension of consumer banking and
investment trust operations, has been out-
lawed by the courts. But Citibank is man-
euvering to tie a rider to a bill in Congress to
get the law changed.
Meantime, another bill has been intro-
duced to keep banks out of the accounting
field; most big accounting firms would just
as soon the banks took over the drudgery
of accounting so they themselves can move
more deeply into management consulting-
but many small accountants feel their liveli-
hoods are threatened.
Since the 1930s, banks have been able to
Underwrite only Treasury securities and mu-
nicipal. general-obligation bonds. At the
urging of the industry, the Senate Banking
& Currency Committee recently passed a bill
that would allow banks to underwrite tax-
exempt revenue bonds, too, The bill has now
reached Patman's committee in the House,
and Wall Street's investment bankers are
fighting it tooth and nail.
Troubling questions
Two factors set banking apart from all
other industries. It can get money, in huge
quantities, more cheaply than anyone else-
if only by creating credit. Thus, it exercises
an undeniable influence over every other in
industry in the country. Banking also is
privy, as financial fiduciary, to reams of cru-
cial information about communities, com-
panies;, and individuals.
Just what banks might do with such re-
sources, of course, has been a subject of spec-
ulation for centuries. Indeed, In a letter to
Elbridge Gerry, the Massachusetts governor
and U.S. Vice-President (under Madison)
whose name survives in the word "gerry-
mander," Thomas Jefferson once wrote that
"banking institutions are more dangerous
than standing armies." They have also proved
themselves, over the decades, to be respon-
sible pillarsof the nation.
"Theoretically," points out Robert Chant,
president of M. A. Schapiro & Co., the leading
U.S. dealer in bank securities, "the banks can
do anything." That they have stuck to bank-
ing is due mostly to their long-standing con-
viction that to own industries or to lead na-
tions is to flirt blindly with that capricious
wench, Dame Fortune: Kings and economise
may rise and fall, but the lender and his
spread presumably go on forever.
Whither now? Banks are now bidding to
become, in Chant's words, "the octopi of fi-
nance." Behind the bid Is a new conscience
in banking, the business that helps all other
companies grow. That conscience is asking an
understandable, and proper, questions "Why
ca.n't banks grow, too?
It may take 20 years for all the pieces of
the so-called Checkless Society to be assem-
bled and synchronized. It may take half a
century, The process will bring Olympian
struggles and Olympian misunderstandings
that may kill the electronic economy when
it's only half way home. But, as is usual for
Americans, the exctiement-and the oppor-
tunities-will lie in the dynamics of change
itself.
LITHUANIAN INDEPENDENCE
Mr. PERCY. Mr. President, in 1918,
Lithuanian independence was reestab-
lished. In 1940, that independnce was
desecrated.
What was done 50 years ago must not
be forgotten. What was done 28 years
ago must not be forgotten.
And free men will not forget, just as
those who have lost their freedom can-
not forget.
Today, as we recall the tragic recent
history of Lithuania, let us who live in
freedom draw strength from the perse-
verance and courage of the Lithuanian
people who have kept alive their national
spirit under the most trying and heart-
rending circumstances.
When I visited Lithuania just 2 years
ago, I rejoiced to find that the national
spirit was still strong. Let us pray that
this spirit will one day be rewarded with
a rebirth of freedom.
INTERNATIONAL HEALTH, EDUCA-
TION, AND LABOR PROGRAMS
Mr, YARBOROUGH. Mr. President, I
am pleased to announce the establish-
ment of a special subcommittee under
the Labor and Public Welfare Commit-
tee-the Special Subcommittee on in-
ternational Health, Education, and La-
bor Programs. Serving on this new sub-
committee with me will be the distin-
guished senior Senator from Oregon,
Senator MoasE, the junior Senator from
Rhode Island, Senator PELL, the senior
Senator from New York, Senator JAVITS,
and the junior Senator from Vermont,
Senator PROUTY. The formation of this
subcommittee is the culmination of a
year of active interest in America's role
and responsibility in this area and I
would like to thank especially the distin-
guished chairman from Alabama, Sena-
tor HILL, and the chairman of the Edu-
cation Subcommittee, Senator MORSE,
for their support and cooperation.
The first business of this sbucommittee
will be S. 1779, a bill which I have intro-
duced to establish a quasi-governmental
corporation to provide open support for
private activities in health, education,
labor, and related welfare fields. I ask
unanimous consent that this bill be
printed at the conclusion of my remarks.
The PRESIDING OFFICER, Without
objection, it is so ordered.
(See exhibit 1.)
Mr. YARBOROUGH. Mr. President, I
have already heard from private orga-
nizations, and representatives of foun- Only then will we be able to meet the
dations and government programs ex- world's real need for cooperation in con-
pressing an interest in testifying at structive ventures with people in the
hearings. developing areas. As Sargent Shriver
We will be particularly interested in has observed:
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three areas: First, the nature, amount,
and effectiveness of current international
activities by private organizations; sec-
ond, the need for governmental assist-
ance; third, the role of an independent
agency such as the Foundation proposed,
In increasing both the quality and quan-
tity of the private sector's effort.
OUR NATIONAL INTEREST
Our vital national interest in this field
is well established. For 15 years the
Central Intelligence A'',ency, following
National Security Council initiatives,
contributed millions of dollars to pri-
vate organizations involved in interna-
tional affairs. Although this CIA fund-
ing, with all its negative implications, has
rightly been stopped, no one can doubt
our continuing national interest in seeing
private involvement grow.
This interest was further affirmed by
the special Presidential Committee es-
tablished last year after revelations about
CIA funding of private organizations.
Their report, signed by HEW Secretary
John W. Gardner, CIA Director Richard
Helms, and Under Secretary of State
Nicholas Katzenbach, stated:
It is of the greatest Importance to our
future and to the future of free institutions
everywhere that other nations, especially
their young people, know and understand
American viewpoints. There is no better way
to meet this need than through the activity
of private American organizations.
WHO WILL MEET NEED?
The question is before us whether this
national need will be met. Newspaper
reports indicate that the Government has
terminated its covert support but is un-
decided on any new way to meet the
need. The New York Times of December
18, 1967, and the Washington Post of
December 19, 1967, reported that after
1 year of study the Presidential Com-
mission is deadlocked and will do noth-
ing. I ask. unanimous consent that those
two articles be printed at the conclusion
of my remarks.
The PRESIDING OFFICER. Without
objection, it is so ordered.
(See exhibit 2.)
Mr. YARBOROUG11. Mr. President,
the amount of support that will be avail-
able from the private sector is also in
doubt. When organizations 15 years ago
were unable to obtain support from pri-
vate sources, they turned to the Govern-
ment and received CIA funds, Because
the CIA used businessmen and founda-
tions as conduits for their support, the
private sector received credit. But now
that support must be more than in name
only, we must ascertain whether Ameri-
can industry and philanthropy will ac-
cept this responsibility. Several organi-
zations have informed me that attempts
to raise funds from our largest founda-
tions and corporations have been diffi-
cult.
This subcommittee will be particularly
interested in determining what exist-
ing Government agencies and others will
do to support our private organizations'
efforts because we are determined that
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Feeruary 20, 1968 CONGRESSIONAL RECORD - SENATE S 1499
There is a world election now under way (b) The term of office of each member of practicable, an equitable distribution of
on every continent. The "voting" takes place the Council shall be six years, except that grants among the various applicants for such
outside the election booths. The "returns" (1) the terms of the members first appointed grants and types of activities to be supported
are measured in terms of people fed, jobs shall expire, as designated by the President, by such grants, but which will assure that
found, schools built, children educated, three at the end of two years, four at the grants will be made to those qualified recipi-
bodies cured, and economies growing, end of four years, and four at the end of ents most capable of achieving a successful or
six years after the date of enactment of this significant contribution favorably related to
'T'here are those who believe we cannot Act; and (2) any member appointed to fill the purposes set forth in the first section of
win that election. But we must at least a vacancy shall serve for the remainder of this Act. In making grants under this sec-
declare our candidacy. And I believe that the term for which his predecessor was ap- tion, the Director shall not impose any re-
we can win it. pointed. No member shall be eligible for re- quirements therefor or conditions thereon
appointment during a two-year period fol- which impair the freedom of thought and
ExHIBIT 1 lowing the expiration of his term. expression of any recipients or other bene-
s. 1779, (c) The members of the Council shall ficiarles of such grants.
Be it enacted by the Senate and House of receive compensation at the rate of $100 for (d) The Director may (1) pay grants in
Representatives of the United States of each day engaged in the business of the such installments as he may deem appropri-
America in Congress assembled, Foundation and shall be allowed travel ate and (2) provide for such adjustments of
ESTABLISHMENT of FOUNDATION expenses as authorized by section 5703 of payments under this section as may be nee
(a) There is hereby established title 5, United States Code. essary, including, where appropriate, total
withholding of payments.
SECTION
as a an n inin 1, dependent agency of the Govern- (d) The President shall call the first meet-
ing of the Council and designate an Acting PUBLIC REPORTS BY DIRECTOR
anent b IFoun aation Heina Education, Chairman. The Board shall, from time to SEC. S. The Director shall, on or before the
t Labor Foundation (hereinafter referred time thereafter, select one of its members to 31st day of January of each year, submit an
to o as the "Foundation"). serve as Chairman of the Council. annual report to the President and the Con-
(b)
n an International onshall Health, composed 'of (e) The Council shall meet at the call of gross setting forth a summary of his activi-
c cation, Director and an il (hereinafterre- the Chairman, but not less than once every ties under this Act during the preceding cal-
fer o as Labor Council (er re- six months. Six members of the Council shall endar year. Such reports shall include a list
tetrad ed to as
r the Council") constitute a quorum, of the grants made by the Director during
(c) The establish and con purposes conduct Foundation interna- (f) The Council (1) shall advise the D1- the preceding calendar year; a statement of
ti to elthe labor rector with respect to policies, programs, and the use to which each recipient applied any
under health, the noun and is all program provide procedures for carrying out his functions, grant received during the preceding calendar
under which Foundation on nongovernmental and (2) shall review applications for finan- year; and any recommendations which the
open support for private, f nhealth, ongove cial support submitted pursuant to section 4 Director may deem appropriate. The contents
activities ane th education, and make recommendations thereon to the of each report so submitted shall promptly
and labor, and other welfare lfare fields, de- Director. The Director shall not approve or be made available to the public.
signed- disapprove any such application until he has GENERAL AUTHORITY
(1) to promote a better knowledge of the received the recommendation of the Council
United States among g the peoples Of the SEC. 6. The Director shall have the author-
world; thereon, unless the Council fails to make a ity, within the limits of funds available un-
(2) to increase friendship and under- recommendation on such application within der section 9, to----
standing among the peoples of the world; a reasonable time. (1) prescribe such rules and regulations as
and (g) The Council shall, on or before the 31st he deems necessary governing the manner
(3) to strengthen the capacity of the day of January, of each year, submit an of the operations of the Foundation, and its.
other peoples of the world to develop and annual report to the President and the Con- organization and personnel;
maintain free, independent societies in their gross summarizing the activities of the (2) appoint and fix the compensation of
own nations. Council during the preceding calendar year such personnel as may be necessary to en-
DIRECTOR OF FOUNDATION and making such recommendations as it may able the Foundation to carry out its func-
deem appropriate. The contents of each re- tions under this Act, without regard to the
SEC. 2. (a) The Foundation shall be headed port so submitted shall promptly be made provisions of title 5, United States Code, gov-
by a Director who shall be appointed by the available to the public. erning appointments in the competitive
President, by and with the advice and con-
sent IN SUPPORT OF PRIVATE ACTIVITIES service and the provisions of chapter 51 and
sent of the Senate; The person nominated subchapter III of chapter 53 of such title
for appointment as the Director shall be a SEC. 4. (a) To effectuate the purposes of relating to classification and General such title
distinguished citizen who has demonstrated this Act, the Director is authorized, subject re pay rates: except that the nera Sched-
exceptional qualities and abilities necessary to section 3(f), to make grants to private, pule of any
erson so employed shall not exceed the max-
to enable him to successfully perform the nonprofit agencies, associations, and organi- imum salary established by the General
functions of the office of the Director. zations organized in the United States, to Schedule under section 5332 of title 5, United
(b) The Director shall receive compensa- Public or private nonprofit educational in- States Code;
tion at the rate prescribed for level II of stitutions located in the United States, and (t obtain the services of experts and con-
the Executive Schedule under section 5311 to individuals or groups of individuals who sultants from private servi safe, as may be -
of title 5, United States Code, and shall are citizens of the United States not em- quired by the Director or the Council, in
ployed by the Government of the United
serve for a term of five years. accordance with the provisions of section
States, a State or political subdivision of a
(c) The Director, with the advice of the State or the District of Columbia, for the 3109 of title 5, United States Code;
Council, shall exercise all of the authority purpose of enabling them to assist, provide, (4) accept and utilize on behalf of the
granted to the Foundation by this Act and or participate in international activities, Foundation the services of voluntary and
shall serve as chief executive officer of the conferences, meetings, and seminars in the uncompensated personnel from private life
Foundation, fields of health, education, and labor, and and reimburse them for travel expenses, in-
COUNCIL other, welfare fields related to the purposes eluding per diem, as authorized by section
SEC. 3. (a) The Council shall consist of set forth in the first section of this Act. 5703 of title 5, United States Code;
eleven members to be appointed by the Presi- No portion of any funds granted under this (5) receive money and other property
dent, by and with the advice and consent section shall be paid by the Director, or by donated, bequeathed, or devised, by private,
of the Senate. The persons nominated for any recipient of a grant under this section, nongovernmental sources, without condition
appointment as members of the Council (1) to support any intelligence-gathering ac- or restriction other than that it be used
shall be eminent in the fields of education, tivity on behalf of the United states or to for any of the purposes of the Foundation;
student activities, youth activities, labor, support any activity carried on by any ofll- and to use, sell, or otherwise dispose of such
health, scientific research, or other fields cer or employee of the United States. property in carrying out the purposes of this
pertinent to the functions of the Pounds- (b) Each grant shall be made by the Di- Act; and
Lion; (2) 'shall be selected solely on the basis rector under this section only upon applica- (6) make other expenditures necessary to
of established records of distinguished serv- tion therefor in such form and containing carry into effect the purposes of this Act.
ice; and (3) shall not be officers or employees such information as may be required by the PROHIBITION AGAINST REQUIRING INTELLIGENCE
of the Government of the United States. Director and only on condition that the GATHERING
The President is requested, in the making of recipient of such grant will conduct openly SEC. 7. No department, agency, officer, or
onijnations of persons for appointment as all activities supported by such grant and employee of the United States shall request
members, to give due consideration to any make such reports as the Director may re- or require any recipient or any other bene-
recommendations for nomination which may quire solely to determine that the funds so ficiary of any grant made under this Act to
be submitted to him by leading private granted are applied to the purpose for which obtain, furnish, or report, or cause to be
associations, institutions, and organizations application is made. obtained, furnished, or reported, any in-
concerned with private activities in the fields (c) The Director shall develop procedures formation relating, directly or indirectly, to
of health, education, and labor, and other and rules with respect to the approval or any activity supported by such grant, except
welfare fields related to the purposes set disapproval of applications for grants under as Is (1) provided by section 4(b) of this Act
forth in the first section of this Act. this section which will provide, insofar as or (2) authorized under law in the case of
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CONGRESSIONAL RECORD SENATE Pebrwtry 20, 15768
any information directly relating to the vio-
lation of any criminal law of the United
States by such recipient or beneficiary.
INDEPENDENCE FROM EXECUTIVE CONTROL
SEC. 8. (a) Determinations made by the
Director and the Council in the discharge of
their functions under this Act shall not be
subject to review or control by the President
or by any other department, agency, officer,
or employee of the Government.
(b) The provisions of subchapter II of
chapter 5 of title 5, United States Code (re-
lating to administrative procedure), and of
chapter 7 of such title (relating to judicial
review), shall not apply with respect to the
exercise by the Director or the Council of
their functions under this Act.
APPROPRIATIONS
SEC. 9. There are hereby authorized to be
appropriated to the Foundation such sums
as may be necessary to carry out the purposes
of this Act, except that the aggregate of
such sums appropriated prior to June 30,
1972, shall not exceed $100 million. Sums
appropriated under this section shall remain
available until expended.
EXHIBIT 2
[From the New York Times, Dec. 18, 1967]
PANEL ON CIA SUBSIDIES DIVIDED OVER
ALTERNATIVES
(By Robert H. Phelps)
WASHINGTON, December 17.--The commit-
tee set up to propose a plan for openly
financing voluntary organizations once
secretly supported by the Central Intelli-
gence Agency is divided so sharply that it
cannot meet the Dec. 31 deadline for report-
ing to the President.
The study panel, headed by Secretary of
State Dean Rusk, has narrowed its choice
to four plans. These range from a stopgap
appropriation that would help some of the
organizations carry on their work next year
to the establishment of a semi-public inde-
pendent organization that would take over
many of the overseas academic and cultural
activities now under other agencies.
While the committee will meet again in
January, the division among the 18 members
is so deep that there is little hope of agree-
ment. As a result, the problem Is expected
to be tossed back to the White House with-
out a clear-cut decision.
Most Congressional members, feeling the
need for economy, favor the least costly of
the four plans. Uner this proposal, known as
Alternative I, up to $5-million would be ap-
propriated, probably to the State Depart-
ment, for the fiscal year beginning next July
1.
BACKED BY REPRESENTATIVES
This money would be used to finance the
neediest of the student, religious, union, cul-
tural and other groups subsidized for years
by the C.I.A. to counter Communist influence
abroad.
At a recent meeting, the four House mem-
bers of the panel gave their support to Al-
ternative I. They were George Mahon, Demo-
crat of Texas; L. Mendel Rivers, Democrat
of South Carolina; Thomas Morgan, Demo-
crat of Pennsylvania, and Frank Bow, Re-
publican of Ohio.
After the House members announced their
support, Senator Carl Hayden, Democrat for
Arizona, said the Senate would go along with
the House. However, not all the Senators
on the committee agree.
Some of the Senators and many of the
private members of the panel favor the most
ambitious of the four plans. Under this pro-
posal, known as Alternative IV, a quasi-
public commission of 15 to 29 members
would be set up. It would receive about $25-
million to finance what the panel members
call the "C.I.A. orphans"-the voluntary
groups formerly subsidized In secret.
This proposed agency would also take over the C.I.A. has never been disclosed, but one
the State Department's academic and cul- informed guess is $15-million a year.
tural exchange program, which supervises With Dec. 31 as the cutoff date for such
Fulbright scholarships, performances abroad C.I.A. subsidies, the Rusk committee once
of American orchestras and plays, seminars considered asking Congress for a supplemen-
and courses in American studies, and other tare appropriation to help some of th
l
e vo
durin
h
g t
e period when
The agency would also assume control of there will be no Federal program.
the libraries now operated by the United One of the organizations that is said to
States Information Agency and handle grants need assistance is the Asia Foundation,
now made by the Agency for International which provides technical assistance to under-
Development to colleges and hospitals for developed countries, aids in the establish-
projects abroad. merit of rice cooperatives and helped write
COST $50 MILLION A YEAR the South Korean Constitution.
The programs of these other agencies cost A strong supporter of the subsidy program
more than $50-million a year. said he believed that theC.I.A. had "thrown
To protect the proposed commission from a little fat" into its grantg in recent months
to tide some voluntary difficult 'to race over.
possible charges of being a tool of American The subsidies dr di
from om ounda-
foreign policy, the plan calls for the new they y are often hidden in grants n totrace
agency to be operated independently of the Punda-
Government. A majority of the members bons to the voluntary group.
mission would have a permanent staff From the Washington Post, Dec. 19, 1967]
abroad. But Congress would have to appro- CIA SUBSIDIES STUDY REACHES No DECISION
priate funds for the commission, although it (By Richard Harwood)
could receive money from private founda- When the Central Intelligence Agency's
tions. secret philanthropies were discovered last
This plan is being vigorously pushed by spring, President Johnson's response was to
Dr. Milton Eisenhower, former president of appoint a study committee.
the Johns Hopkins University; Dr. Herman it was headed by Under Secretary of State
B. Wells, chancellor of Indiana University, Nicholas deB. Katzenbaci and it recom-
and Paul R. Porter, a Washington lawyer mended that still another study committee
and former chairman of the Federal Com- be appointed because of the "considerable
munications Commission. complexity" of the problem.
Mr. Porter commented in a telephone The President agreed and the new com-
Interview that the subsidization of voluntary mittee was formed with Secretary of State
organizations had accomplished so much for Dean Rusk as its chairman. It was a "con-
so little money that, in a way, it was "too sensus" group that included Senators and
bad the C.I.A. got caught." But, he said, Representatives, young men and old men,
the subsidy program should be strengthened Democrats and Republicans, academicians
and the best way of doing this is to put all and businessmen, thinkers and doers. Its as-
the programs under a "single protective signment was to figure out how the govern-
umbrella." ment of the United States could do publicly
StIPPOPT'Wn A4 MTT Vnrrvn. . .. __ - _
Senator J. W. Fulbright, Democrat of was to subsidize the overseas activities of
Arkansas, the chairman of the Senate For- countless religious, cultural, labor, and
eign Relations Committee, also favors Alter- scholarly organizations.
native IV, on the basis that detachment of NOTHING DECIDED
the program from foreign policy concerns In the nine months that have passed, the
would improve the American Image abroad. Committee had decided nothing except that
Budget Director Charles Schultze, however, there are at least four ways for the Govern-
favors a gradual approach. Cattel Alternative ment to hand out money to the CIA's for-
III, his plan would set up a quasi-public com- mer clients-through the State Department
mission but give it only authority to make (Plan 1), through the foreign aid program
grants to the "C.I.A. orphans." The other (Plan 2), through a new "quasi-public" cor-
programs would continue under the State poration with limited responsibilities (Plan
Department, U.S.I.A. and AID. 3), or through a "quasi-public" Frank A. Rose, president of the Univer- with bil i corporation
sity of Alabama, commented that while he One very reason broad for re the that e Co mtt (Plan 4). ee's favored Alternative IV, he thought that the itth has sp
to
failure ent very
present need for economy in Government little come to a time decision the job. There e as been only
made Alternative III the wisest choice now. three meetings thof substance e . There have March. arch h
The other programs could be brought in last t one g D . Milton ch. Eisenhower
later, he said. one, according t to o Dr. Milton r
But Dr. Eisenhower insisted, in a telephone of Johns Hopkins University, was held three
interview, that if only the previous functions months ago.
"We were going to be included, then "unfortu- ber, Dr. all," Rose, " sosee , pre, press isdent of committee the Uni-
nately the effort would be discredited before varsity . of f Alabama, RThe
it began." "very busy men. The
Secretary of State is very busy. So is the
One fear Is that there would be competi- Budget Bureau (whose director, Charles
tion for funds between the proposed agency Schultze, is a committee member, and whose
and the cultural unit of the State Depart- international programs man, James Clark, is
ment, the information agency and the aid the committee's executive director.)"
agency.
"All the other outfits would have their Senator NO Milton SENSE OF Young, on URGENCY
con-
knives out for the new commission," one foe ca Young, the of the been gressional of Alternative III commented, so busy y that he hasn't Republicans e panel, has been
gn.
The other proposal, Alternative II, would meetings" "beer-, t a one those
isn't sure what is going on.
make the subsidization of the voluntary or- meetings" and hasn't
Another reason for the inaction is the gen-
ganizations a part of the foreign aid program. eral feeling that, as Rose put it, "there's no
There has been little support for this idea, sense of urgency about this. No deadline or
however, anything of that kind." A State Department
President Johnson set up the Rusk commit- official on Rusk's staff used the phrase "no
tee last spring after directing the C.I.A. to in-built deadline" which was Interpreted by
end covert financing of private voluntary Clark at the Budget Bureau to mean no "ex-
groups. He acted after disclosures that the ternal" deadline fixed by the President or by
intelligence agency was supporting private Rusk.
voluntary organizations engaged in overseas Sen. J. William Fulbright (D-Ark.) was
programs. The amount of yearly subsidies by under a different impression. He thought
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Feb'bruary 20, 1968 CONGRESSIONAL RECORD - SENATE
he and his fellow committeemen were 'ex-`
pected to come up with a plan` by Dec. 31,
,which is the date the CIA expects to cut off
its covert subsidies. "But r guess;" said Ful-
bright yesterday, "that deadline has been
dropped."
DEADLOCK REPORTED.
A third explanation for the position in
which the committee finds itself at Christ-
mastime is that it is hopelessly deadlocked
over fiat should be done. '
This is . denied by Rose, Eisenhower and
men in the Administration who prefer an-
onymity. Frulbri'ght, however, reports that
there are rather substantial disagreements
and Young has heard rumors to the same
effect,
One faction, "highly oriented toward the
military," as Fulbright puts it, is represented
by three House members on the committee-
George Mahon (D=Texas), L. Mendel Rivers
(D-S.C.), and Frank Bow (R-Ohio). They
favor the inexpensive Plan 1 (about $5 mil-
lion a year) which would be administered
by State.
Fulbright, Eisenhower and Rose favor the
more ambitious Plan 4 which "would involve
new funds of about $25 million a year, would
extend subsidies to groups presently unsub-
sidized, and would take over some of the
cultural and information programs presently
administered by State, USIA, and AID.
Schultze, presumably speaking for the
President and Rusk, favors Plan 3, and does
not favor, taking any programs away from
existing agencies.
Plan 3 would be cheaper than Plan 4 and
for that reason Rose is willing to go along
with it "in view of the budget squeeze."
In reply, the Administration says money
is no problem.
The panel, in any case has come to no de-
cision which means that some of the CIA's
secret beneficiaries may begin the New Year
with pinched budgets.
"But there's no real problem," says Dr.
Rose. "All we have to do is sit down afid
come to a conclusion."
That effort will be made again in Janu-
ary.
THE, FIVE OUTSTANDING YOUNG
MEN OF MARYLAND
NIr. BREWST Tt. Mr. President, each
year, junior chamber of commerce chap-
ters throughout Maryland select the five
outstanding young men of the year. Each
of these men is the recipient of the out-
standing young man or distinguished
service award in his own community.
Selection is based on achievements in
his business or profession as well as serv-
ice to his community. The quality of
these accomplishments is demonstrated
in the sketches of each nominee con-
tained in the'program of the final awards
Mr President, I ask unanimous consent
that the descriptive sketches of the five
outstanding young men of Maryland be
printed in the RECORD.
There being no objection, the sketches
were ordered to. be printed in the RECORD,
as follows:,
Thomas E. Embree, Greater Elkton, age 21,
Instructor, Service School Command, USNTC,
Bainbridge. In addition to his military duties,
this young man finds time to serve his com-
munity and state. He is currently President
of the Cecil, County Council of P.T.A.s and
has served as a member of, the State'Board
of Managers of the Maryland Congress of
Parents and Teachers. He was a member of
the Pplicy Advisory Committee for the Heach.
start rplect of the Cecil County , Board of
EducaIon, He Is a former vice president and
international director of the Maryland Jay-
cees and' was selected for inclusion in the
196$ edition of "Outstanding Young Men of
America."
Werner Ii. Fornos, Annapolis, Age 34, Man-
agement Consultant, Werner Fornos and As-
sociates. This newly elected representative
in the Maryland House of Delegates ended
his freshman session as a guiding force in
the General Assembly. His work in the Ways
and Means Committee and his political
knowledge led to his appointment to the
Legislative Council's Committee on Legisla-
tive Organization. He was selected as a dele-
gate` to the Maryland Constitutional Con-
vention from Anne Arundel County and was
cited as being among the progressive leaders
of the Convention. He is finance chairman
for the Committee for a Beautiful Annapolis,
Chairman of the Promotion's Committee of
the Annapolis Fine Arts Festival and a mem-
ber of the Board of Trustees of the David-
sonville Methodist Church. In 1966, he was
awarded the Distinguished Citizen's Award
by the Governor of Maryland.
Michael P. Goodrich, Severna Park, Age 32,
General Agent, Northwestern Mutual Life
Insurance Company. The youngest general
agent ever appointed by his company, Mike
has many accomplishments to his credit in
his young career. He is a member of the Mil-
lion Dollar Roundtable for the fifth consecu-
tive year and his company honors include
the "Top Twenty" in production for the
past two years. He received his CLU degree
in 1967. Active in community life, he is the
author of a five year development plan for
the Pasadena Methodist Church. He holds
a Local Minister designation in the Meth-
odist Church. Mike is the president of the
Folger McKinsey School P.T.A. and was the
charter treasurer of the Severna Park
Jaycees.
William D. Greene, Jr., Crescent Cities,
Age 26, Supervisor, Program Planning Con-
trol Data Corporation. While keeping pace
with his position and furthering his educa-
tion, Bill is active in community service. He
is a member of the Crescent City Jaycees and
his performance has won for him every com-
petitive award within the Jaycee organiza-
tion. He is chairman of a building project to
construct a 21/2, million dollar sports park
for the Boys' Clubs of Prince Georges County.
The project won the Maryland Jaycee Com-
munity Development Award for 1967. Bill is
president of the Prince George's Coordina-
ting Council of Jaycee Chapters and in a
short time has turned an almost defunct
organization into an effective instrument of
Jaycee activity. He is a supervisor of a group
responsible for the Polaris training planning
and has achieved status as one of the leaders
in his career field.
Robert M. Lawrence, Salisbury, Age 35,
President, Lawrence Volkswagen, Inc. A
quiet, unassuming young man, Bob is one
of the most active individuals in his com-
munity. In 1967, he conceived, coordinated,
and underwrote the expense of a program to
stimulate business in the community. En-
titled "Business Is Great In Salisbury," the
program was very successful. It became a
household phrase and boosted morale in the
community. Bob was chairman of the 1967
Cancer Crusade in the county, chairman of
the Industrial Development Committee of
the Chamber of Commerce and a Director of
the Delmarva YMCA. Active in the Faith
Lutheran Church, Bob was chairman of the
Building Fund Committee, and through his
efforts and initiative, the church has a new
building. He teaches in the Sunday School
and is a member of the Church Council. In
1964, he purchased control of Lawrence
Volkswagen, Inc. and was the youngest
franchise operator in the United States.
FREE PRESS, FAIR TRIAL
Mr. LONG of Missouri. Mr. President,
yesterday, the American Bar Association,
S 1501
meeting in Chicago, adopted'new rules of
conduct for lawyers and new procedures
for judges designed to restrict the release
of crime news to the press.
As a lawyer, and as a subcommittee
chairman concerned not only with legal
problems but also information problems,
I feel compelled to urge a note of caution
on this subject. The problem of balancing
the first amendment-which guarantees
a free press and free access to informa-
tion-and the sixth amendment-which
guarantees a fair trial-is certainly not
an easy one. But neither is the problem
a new one. The very same American Bar
Association which yesterday adopted the
new guidelines, many years earlier` con-
sidered identical issues as a result of the
famous Bruno Hauptmann-Lindbergh
kidnaping case. Thus, as lawyers, we
have lived with the delicate balance
problem for a long time.
According to an article which appeared
in this morning's New York Times, writ-
ten by Fred P. Graham, the distinguished
law editor of the Times:
The impact of (the ABA's) action will not
be immediately apparent to newspaper read-
ers across the country, because it amended
only the rules of ethics of the national bar
group and not those of state bar associations,
which handle most lawyer discipline matters.
But, Mr. Graham suggests that the
ABA approval is "expected to touch off
a wave of similar actions by State bar
associations."
Mr. President, a strong plea was raised
by responsible representatives of the
newspaper industry at yesterday's ABA
meeting, to delay any action for 1 year.
This request for delay, in my opinion, was
not a dilatory tactic. Rather, it was based
on a number of factors.
First, this country is experiencing a
tragic and increasing crime wave. The
function of a free press to inform the
public of such a crime wave not only
alerts us to the many dangers, but also
keeps the responsible law enforcement
officers on their toes. Additionally, often
the report of capture of a heinous crimi-
nal relieves community tensions and dis-
pels community fears.
Second, the American Newspaper Pub-
lishers Association is presently conduct-
ing a study of the effects of publicity on
juries, and it would have been desirable
for the results of this study to be avail-
able to the bar association members con-
sidering the current action.
A third valid reason for delaying the
ABA action, in my opinion, is the fact
that voluntary agreements have been
worked out in several States by bar and
press groups on the subject of pretrial
and trial publicity. From what I under-
stand, these agreements have been suc-
cessful.
Accordingly, I can only express the
hope that the State bar associations
across this,country, including my own
bar association of the State of Missouri,
will heed the pleas of the newspaper pro-
fession, and will not jump on'the band-
wagon of arbitrarily curtailing crime
news.
At the Federal level, we have yet an-
other aspect to this problem. On July 4,
1966, President. Lyndon Johnson signed
into law the Freedom of Information Act.
As chairman of the Subcommittee on
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 S 1502
Administrative Practice and Procedure,
charged with legislative oversight Of this
act, I intend to continue to encourage
Federal Government agencies to abide
both by the spirit and letter of this Free-
dom of Information Act. Accordingly, I
do not feel that it would be in the best
interests of the American public at this
time to adopt the ABA guidelines as the
policy of the Federal Government. The
Subcommittee on Administrative Prac-
tice and Procedure will hold hearings
shortly to review the operations of the
FOI Act. At that time, we will also con-
sider the American Bar Association
guidelines.
Mr: President, I ask unanimous con-
sent to insert, at this point in the RECORD,
the article by Fred Graham.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
NATIONAL BAR ADOPTS STANDARDS To
Cuss RELEASE OF CRIME NEWS
(By Fred P. Graham)
CHICAGO, February 19.--The American Bar
Association approved today new rules of con-
duct for lawyers and new procedures for
judges designed to restrict the release of
crime news to the press.
It acted over the objections of news media
officials who had warned that the move would
hinder nonprejudicial press coverage and
could prevent full public discussion of rising
crime patterns.
The action was taken by the bar associa-
tion's policy-making body, the House of Dele-
gates, which today opened its two-day mid-
winter meeting at the Palmer House here.
The House of Delegates voted overwhelm-
ingly to adopt the recommendations of the
controversial "Reardon Report."
The report is the product of a three-year
study by the association's Advisory Com-
mites on Fair Trial and Free Press, headed
by Justice Paul C. Reardon of the Supreme
Judicial Court of Massachusetts. It sets out
detailed rules aimed at sharply curtailing the
flow of information about arrested persons
that is made available to the press in most
communities.
The report was approved by a strong voice
vote-only a few noes were heard-after the
group voted 176 to 68 against a proposal by
the news media to delay any action for a year.
The impact of today's action will not be
immediately apparent to newspaper readers
across the country, because it amended only
the rules of ethics of the national bar group
and not those of state- bar organizations,
which handle most lawyer discipline matters.
However, the approval is expected to touch
off a wave of similar actions by state bar
associations, which would mean that lawyers
in these states could be disbarred if they
gave the press more information than the
new standards allow.
Also, much of the Reardon report consists
of suggested rules for judges to follow in
preventing the police and lawyers from giving
what might be considered prejudicial infor-
mation to the press, and in barring news-
men from certain hearings.
In most states, trial judges can adopt these
rules on their own volition. Some have al-
ready done so, and now that the American
Bar Association has given the rules its bless-
ing, many more local judges are expected to
put the news restrictions into effect despite
opposition from local news media.
Today's action accompliskes four basic
results.
First, it amends the Bar Association's can-
ons of ethics, subject to the formality of
drafting the exact wording, to declare It un-
ethical for any prosecutor or defense lawyer
to'tell the press anything about it pending
case except basic identifying facts about the
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CONGRESSIONAL RECORD -SENATE February 20, 1168
defendant and the circumstances surround-
Ing the arrest.
Lawyers are specifically forbidden to men-
tion a defendant's prior record of arrests or
convictions, to say whether he made a con-
fession, to divulge the results of any tests or
the identity of witnesses, or to make any
other suggestions about the possible guilt of
the accused.
THE POLICE EXHORTED
Second, the report urges police depart-
ments to impose similar restrictions on their
members, and calls upon judges to use their
contempt powers to enforce the restrictions
on both lawyers and the police, if necessary.
Third, it calls upon courts to adopt the
report's judicial standards, which would
make it easier for defendants to get trial
delays or transfers to other communities and
to keep potentially prejudiced jurors off jury
panels.
These standards would also bar the press
and the public from pre-trial hearings and
from any part of a trial held outside the
presence of the jury, if the defense lawyer
or the judge felt that coverage might pre-
vent a fair trial.
Fourth, it gives judges the power to punish
newsmen for contempt if they publish arti-
cles during the course of a trial that are
willfully designed to affect the outcome.
In many communities now, the police dis-
close the conviction or arrest records of ar-
rested persons and give such information as
the apparant motive. This pattern of dis-
closure would not be permitted in any juris-
diction that adopts the new standards.
FINAL PLEAS HEARD
Before the vote today the bar delegates
heard final pleas for a delay from D. Tennant
Bryan, publisher of The Richmond Times-
Dispatch and The Richmond News Leaders,
who was a spokesman for the American News-
paper Publishers Association; Michael J.
Ogden, executive director of The Providence
Journal and The Providence Bulletin, who is
pesident of the American Society of Newspa-
per Editors; and Theodore Koop, a vice presi-
dent of the Columbia Broadcasting System,
who is chairman of a committee that repre-
sents eight more news media groups.
They said there was a need for full public
scrutiny of the phenomenon of rising crime
and added that voluntary agreements be-
tween bar and press groups in a half-dozen
states had been successful.
They also pointed out that the American
Newspaper Publishers Association was con-
ducting a study of the effects of publicity
on juries, and argued that the lawyers should
not act on the Reardon report before all the
evidence was in.
However, many leaders of the association
spoke out for an immediate decision.
They Included Chief Judge J. Edward Lum-
bard of the United States Court of Appeals
for the Second Circuit, in New York, who
heads the parent committee that sponsored
the Reardon study; William T. Gossett of
Detroit, the president-elect of the bar as-
sociation; Earl F. Morris of Columbus, Ohio,
the incumbent president; and two former bar
presidents, Lewis F. Powell of Richmond and
Ross L. Malone of New York.
OTHER REPORTS APPROVED
The 190-member House of Delegates also
appoved five other reports from subcommit-
tees of Judge Lumbard's Special Committee
on Minimum Standards for the Administra-
tion of Criminal Justice.
Four of these were approved with little
debate. They urge states to adopt post-con-
viction review procedures as a normal part of
the criminal process; endorse the theory of
plea-bargaining between prosecutor and de-
fense lawyers for guilty pleas, under proper
safeguards; call for the outright dismissal
of charges when a speedy trial is denied; and
ask for free lawyers for poor defendants in all
cases that might result in jail sentences.
The delegates voted to change a fifth re-
port, which had urged that appellate judges
be given the power to reduce harsh prison
sentences. The delegates limtead approved a
rule that would permit appeal judges also to
raise sentences that they found too lenient.
SENATOR ALBERT GORE AD-
DRESSES BORAH FOUNDATION
Mr. CHURCH. Mr. President, the dis-
tinguished Senator from Tennessee [Mr.
GORE] recently delivered an address of
unusual importance at, the University of
Idaho, which was the climax of a 3-
day conference on American foreign
policy, conducted under the auspices of
the Borah Foundation.
The address is an eloquent expression
of the frustration and futility which in-
evitably accompanies the frantic effort
we are now making to adapt the world
to the realities of our current foreign
policy, rather than adapting our foreign
policy to the realities of the world.
I commend the address to the
thoughtful consideration of Senators
and ask unanimous consent that it be
printed in the RECORD.
There being no objection, the address
was ordered to be printed in the RECORD,
as follows:
ADDRESS OF SENATOR ALBERT GORE, BORAH
FOUNDATION SYMPOSIUM ON VzerNAM, UNI-
VERSITY OF IDAHO, MOSCOW, IDAHO, FEBRU-
AnY 17, 1968
The receipt of your invitation to partici-
pate in this symposium with such distin-
guished and eminent Americans on the sub-
ject of Vietnam was exhilarating. The
moment of my participation is far more
sobering than exhilarating. Indeed, I ven-
ture my views somewhat ttrnidly. but in the
hope that a searching public analysis and
debate of the present, such as you have had,
may possibly be of some assistance in shap-
ing the momentous decisions in the days and
months ahead.
It is with regret and disappointment that
I note the absence of an incisive public dia-
logue between the President and the Senate,
through their selected agents, in particular
the Secretary of State and the Senate For-
eign Relations Committee. The most vital
thing to a democracy, without which a de-
mocracy cannot function or survive, is an in-
formed, enlightened, alert, and Interested
public opinion. A nation, its government, and
its policies can be only so wise, only so
sound, only so progressive, and only so se-
cure as the people are informed on and in-
terested in public issues, Our form of self
government, in my view, requires the maxi-
mum public dialogue between the executives
of our government and the elected repre-
sentatives of the people. The President and
the Senate, in my view, shale equally the re-
sponsibility to conduct an informed and in-
cisive examination of foreign policy so that
the people can understand our policies and
the objectives of policy, form an opinion as
to whether these objectives are reasonable
and attainable at acceptable risks and costs,
assess the probable consequences and possi-
ble alternatives. There is no Justification for a
lack of public dialogue at this crucial hour.
Unless a policy can withstand the light of
public examination, then a change in policy
is indicated.
Free debate is necessary for a free society;
for it is through debate that the truth is
distilled and the truth shall make a nation
free.
True, the President is our nation's leader
in foreign policy, but he cannot-lead very
far where the elected representatives of the
people will not follow. The Constitution
places the Congress, more particularly the
Senate, and the President in a position of
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