THE PRESIDENT'S ACTION IN THE DOMINICAN REPUBLIC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500120037-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 22
• Document Creation Date: December 15, 2016
• Document Release Date: September 22, 2003
• Sequence Number: 37
• Publication Date: April 29, 1965
• Content Type: OPEN

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of America PROCEEDINGS AND DEBATES OF THE 89 CONGRESS, FIRST SESSION
Vol. 111
~on~re~~ional Record
WASHINGTON, THURSDAY, APRIL 29, 1965
House of Representatives
The House met at 12 o'clock noon.
Rev. Harry E. Olson, Jr., pastor, Mes-
siah Lutheran Church, Fargo, N. Dak.,
offered the following prayer:
Let us pray.
Almighty God, the eyes of all wait upon
Thee in this moment of silence and pray-
er. Empower these chosen men and
women with evidence of the spirit of God
within them. Help us to remember that
this place is not an island unto itself
but a part of the mainland. It is within
these walls that we must remember the
needs of all men. To that end enable
those in positions of responsibility with
such a sense of duty that no self-interest
shall turn them from it. May we full well
realize this day, 0 Lord, that history is
being made by our judgments and the
destiny of men's lives charted by our de-
cisions. Grant Thy mighty aid to the
efforts of men to establish peace among
the nations of the world, through Jesus
Christ our Lord. Amen.
THE JOURNAL
The Journal of the proceedings of
yesterday was read and approved.
THE PRESIDENT'S ACTION IN THE
`'DOMINICAN REPUBLIC
ALBERT asked and was given
permission to address the House for 1
minute and to revise and extend his
remarks.)
Mr. ALBERT. Mr. Speaker, I am sure
the American people and the Congress
will not only support strongly but appre-
ciate the action taken by the President of
the United States in dispatching troops
to the Dominican Republic for the pur-
pose of safely evacuating American
civilians and other foreign nationals.
The President had no alternative under
the circumstances.
The President had made urgent ap-
peals to both sides in this struggle to
cease fire long enough to permit the re-
moval of civilians from the area. His
petitions were ignored. Those in charge
of the law-enforcement agencies of the
Dominican Republic had notified Ameri-
can officials that it would no longer be
possible for either civilian or military
personnel on the ground to protect Amer-
ican citizens.
Under the circumstances the action of
the President of the United States was
not only correct; it was absolutely neces-
sary. Marines were used in a protec-
tive evacuation and up to this time have
not engaged in any shooting incidents.
The President has been joined in his
appeal for an immediate cease fire by
the Organization of American States
which will present a formal request at an
open meeting of the OAS later today.
I understand that the French Repub-
lic also has taken steps to protect the
lives of its citizens in the Dominican
Republic by sending in two warships for
evacuation purposes.
'J
(Mr. RIVERS of South Carolina asked
and was given permission to address the
House for 1 minute and to revise and
extend his remarks.)
Mr. RIVERS of South Carolina. Mr.
Speaker, I want to supplement and ap-
prove what the majority leader has said
concerning the Dominican Republic. It
has been established beyond the perad-
venture of a doubt that while that which
the commentators have referred to as a
local and internal conflict which started
with the best intentions In the world to
keep it a local affair, it has been docu-
mented that those now In charge have
been oriented, trained, and directly
identified with Castro's Cuba and that
they are Communists. There is no ques-
tion about this. It has been established.
The Americans in that part of the
world were in grave danger. The local
government could not cope with this
type of warfare. The people in charge
of this activity have been trained to con-
duct this type of guerrilla warfare and
the government was unable, even with
the implements in their possession, to
control it.
It has also been established that those
who started this and who had good in-
tentions have repudiated the present
leadership. After getting these facts
the President had no alternative.
The Marines are now ashore and this
No. 76
Is the only way to protect the Americans.
There are great numbers there. I ap-
plaud the action of the President. He
had to act as he did. I am sure he will
have the backing of the Congress and of
the American people because had he not
acted, Castro-and it was his intention
to do so-could well have taken charge
of the Dominican Republic. We cannot
and must not permit such a thing to
happen as happened in Cuba. It will
happen if we are not firm and if we had
not acted as we have.
LANDING OF MARINES IN THE
TDOMINICAN REPUBLIC
(Mr. EDMONDSON asked and was
given permission to address the House
for 1 minute and to revise and extend
his remarks.)
Mr. EDMONDSON. Mr. Speaker, our
distinguished majority leader, the gen-
tleman from Oklahoma [Mr. ALBERT],
and the distinguished chairman of the
House Committee on Armed Services, the
gentleman from South Carolina CMr.
RIVERS], have already said much more
eloquently and authoritatively than I can
say what I came to the floor today to
remark upon.
Mr. Speaker, there is no question of
the fact that the landing of our marines
in the Dominican Republic is a matter
of very grave import. There is no ques-
tion of the fact that having our marines
in battle positions in this capital city
poses a very grave crisis in our relations
in the Western Hemisphere. But I be-
lieve the President has undoubtedly been
in possession of information on this sub-
ject which has not been available to most
of us. I believe further that the course
of wisdom is to give to him the full and
strong support which our Presidents
have uniformly commanded in the ac-
tions which they have taken to protect
American interests around the world. To
me it is encouraging that our good friends
and neighbors in Latin America are urg-
ing restraint on the subject in the reac-
tions of the capitals of those countries on
-this subject as the Council of the Organ-
ization of American States meets today.
Mr. Speaker, I hope that in the halls
of this great body and the other body on
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CONGRESSIONAL RECORD HOUSE April 29, 1965
the other side of the Capitol and across
the country there can be restraint in any
criticism of the President's actions at
this time and support for the Chief
Executive and Commander in Chief as
he endeavors to meet a fresh threat to
freedom and justice in the democracies
in the Western Hemisphere.
CALL OF THE HOUSE
Mr. SPRINGER. Mr. Speaker, I make
the point of order that a quorum Is not
present.
The SPEAKER pro tempore (Mr. AL-
BERT). Evidently a quorum is not
present.
Mr. MAHON.. Mr. Speaker, I move a
call of the House.
A call of the House was ordered.
The Clerk called the roll, and the fol-
lowing Members failed to answer to their
names:
[Roll No. 431
Ashbrook Halpern Pepper
Ashley Hanna Powell
Blatnik Harris Redlin
Bolton Harvey, Ind. Resnick
Broyhill, Va. Hawkins Schisler
Corman Hays Scott
Culver Holland Senner
Daddario Jarman Sisk
Dawson Jones, Ala. Steed
Dingell Lindsay Todd
Dow Madden Toll
Dulski Mathias Tupper
Evans, Colo. May Van Deerlin
Farnsley Moeller Waggonner
Giaimo Morrison White, Idaho
Gibbons Nix Willis
Goodell O'Brien Young'
Green, Oreg. Olson, Minn.
The SPEAKER. On this roileall, 380
Members lave answered to their names,
a quorum.
By unanimous consent, further pro-
ceedings under the call were dispensed
with.
COMMITTEE ON EDUCATION AND
LABOR
Mr. POWELL. Mr. Speaker, I ask
unanimous consent that the Committee
on Education and Labor may sit during
general debate during the session of the
House this afternoon.
The SPEAKER. Is there objection to
the request of the gentleman from New
York?
There was no objection.
CORRECTION Ol' ROLLCALL
Mr. MATSUNAGA. Mr. Speaker, on
rollcail No. 81 I am recorded as absent.
I was present and answered to my name.
I ask unanimous consent that the per-
manent RECORD and Journal be corrected
accordingly.
The SPEAKER pro tempore. With-
out objection, it is so ordered.
There was no objection.
SUPPLEMENTAL APPROPRIATION
BILL, 1965
Mr. MAHON. Mr. Speaker, I call up
the conference report on the bill (H:.R.
7091) making supplemental appropria-
tions for the fiscal year ending June 30,
1965, and for other purposes, and ask
unanimous consent that the statement
of the managers on the part of the House
lx read in lieu of the report.
The Clerk read the title of the bill.
The SPEAKER. Is there objection to
tie request of the gentleman from
T uxas?
Mr. GROSS. Mr. Speaker, reserving
ti.e right to object, since this bill Is over
$39 million more than was approved
b l, the House a couple or three weeks
ado, may I assume the gentleman will
take ample time to explain where these
ir. Creases occur and why?
Mr. MAHON. I shall undertake to
do so and will be glad to yield to the
gentleman for any inquiries or statement
h wishes to make.
Mr. GROSS. Mr. Speaker, I thank
the gentleman from Texas and with-
d:.aw my reservation of objection.
Mr. SAYLOR. Mr. Speaker, a par-
liamentary inquiry.
The SPEAKER. The gentleman will
state it.
Mr. SAYLOR. Will it be possible to
gut a separate vote on one of the items
ii disagreement?
The SPEAKER. If an item is report-
ed in disagreement, that would call for
separate action.
Mr. SAYLOR. Will it be possible to
gat a separate vote on an Item involving
veterans' insurance?
Mr. MAHON. Yes.
The SPEAKER. Is there objection to
the request of the gentleman from
'T'exas?
-There was no objection.
The Clerk read the statement.
(For conference report and statement,
sae proceedings of the House of April
28, 1965.
Mr. MAHON. Mr. Speaker, I would
11 ke to announce that the Committee on
P..ppropriations this morning approved
a recommendation of about $8 billion
f, )r the Departments of Labor, and
health, Education, and Welfare, and the
bill is scheduled to be before the House
f )r consideration on next Tuesday. We
are continuing to move along with these
appropriation bills.
Now, Mr. Speaker, today we have the
conference report on the second supple-
r rental appropriation bill of the session.
There are three items in disagreement
yrhere the committee has insisted upon
t[ie House position. They relate to a
r.umber of matters, and on one of them
the gentleman from Pennsylvania [Mr.
f AYLOR] has already Indicated a desire to
tie heard.
Mr. Speaker, I believe it would be well
it we withheld discussion of these espe-
c tally controverted questions until we
have adopted the conference report. We
will have an hour, if necessary, on each
of the separate motions. The Members
who have an Interest will have full op-
iortunity to discuss the issues involved.
Mr. Speaker, insofar as the confer-
(=e report itself is concerned there is
no great controversy.
As the conference report will indicate,
I here is about $2.227 billion Involved. It
I s over the House bill by $109.2 million.
31 is under the Senate bill by $30.3 mil-
lion. It is under the budget estimates
Iiy$52.7 million.
Mr. Speaker, in this supplemental bill
we only considered matters generally
considered of the greatest urgency.
Naturally, there is not the latitude for
deep reductions that might otherwise
have been taken. So the reduction in
the bill, in this $2.2 billion, is only $52
million below the budget estimates.
Mr. Speaker, the other body had be-
fore it some $53 million in budget re-
quests not considered by the House.
This accounts for a large portion of the
increase made by the other body.
Another matter here involves $30 mil-
lion which the House disallowed to pro-
vide funds under the urban renewal
program. The House did not consider
this to be of an emergency nature, but it
must eventually be paid under the law.
The other body put It in the bill and
we have agreed to it. We thought it
could be provided In. the regular bill,
but in order to come to agreement with
the other body we agreed to it.
Mr. Speaker, :I would also call the
attention. of the Members to the $100
million contained in the bill for the
Small Business Administration in which
many are interested. There are, in ad-
dition, a large number of items-in the
bill involving the Department of Agri-
culture, the District of Columbia, the
foreign operations program, independent
offices, the Interior Department, the De-
partment of Health, Education, and Wel-
fare, and Labor, the legislative branch,
public works, the Departments of Jus-
tice, Commerce, and the Judiciary as well
as the Department of the Treasury.
Many of these-most of these, in fact-
are of course unchanged frond the orig-
inal House position.
Then we have funds in here for Ap-
palachia, and a lot of money for pay in-
creases. We passed a bill providing for
pay increases throughout the Govern-
ment and appropriations had not previ-
ously been made to cover those Increases.
In many cases the funds were partially
absorbed, but not in all cases was that
possible. Again the other body did not
change the great majority of House
amounts.
As I said, Mr. Speaker, I know of no
objection to the conference report itself.
Mr. Speaker, I yield to the gentleman
from Iowa for a question.
Mr. GROSS. It has come to the point
in the House of Representatives and in
the Congress where regular appropria-
tion bills have less and less meaning; is
that not true?
Here you have another supplemental
or a deficiency appropriation bill
amounting to some $2.25 billion. So that
the regular appropriation bills really do
not mean what they say or say what they
mean.
Mr. ]MAHON. I believe that the regu-
lar appropriation bills say what they
mean. We will probably never get com-
pletely away from supplemental and de-
ficiency bills if Ave follow the pattern of
last year. After the regular appropria-
tion bills had been approved, the Con-
gress passed new legislation changing the
picture and at least :implying additional
demands for this current fiscal year, 1965.
New legislation, mandatory-type items,
and emergency measures account for 85
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CONGRESSIONAL RECORD - HOUSE April 29, 1965
Registrations of applicants In the various
countries, since the beginning of the pro-
gram, have been as follows:
Austria ---------
996
2,435
3,481
Belgium--------
------------
1,602
1,602
France___
------------
8,759
8,759
Germany--.---.
630
3,382
4,012
Greece-.......--
986
290
1,276
Ita19
4,467
2,603
7,070
Lebanon----_.-
------------
3, 564
8,564
Total-._--
Of the refugees who registered during the
ninth period, 397 were camp residents and
1,597 were out-of-camp residents.
M of December 31, 1964, a total of 8,600
aliens, who have been in the United States
for at least 2 years after their parole as
refugee-escapees had been inspected and ex-
amined for admission, and accorded the sta-
tus of permanent residents under section 4
of the act.
During the ninth period, the Congress ap-
proved private laws for four aliens in the
United States, providing that these aliens
shall be held and considered to have been
paroled into the United States as provided for
In the act of July 14, 1960.
In compliance with the provisions of sec-
tion 2(a) of the act, detailed reports on indi-
viduals paroled into the United States are
attached.
Sincerely,
THE DOMINICAN CRISIS
(Mr. BENNETT asked and was given
permission to address the House for 1
minute, to revise and extend his remarks,
and to include extraneous matter.)
Mr. BENNETT. Mr. Speaker, Presi-
dent Johnson Is to be highly commended
for his prompt action in sending in U.S.
'marines to the Dominican Republic to
protect U.S. citizens in the country.
I sincerely hope the Marines may also
serve as an indication of U.S. assistance
to protect the freedom and stability of
the government in that area of the world.
Although the activities of the original
revolutionary forces in the country were
apparently led by freedom-loving people,
as far as the leadership was concerned, it
seems clear to me now that the present
leadership of the revolution is in the
hands of Castro-Cuban-trained Commu-
nist agents.
Under these circumstances it Is neces-
sary, I believe, for the Organization of
American States, or the United States
acting independently, to bolster the stable
and free government in the country to
prevent another Cuba.
Today I have reintroduced a resolu-
tion, first introduced in 1961 by me, that
asserts the sense of Congress to be that
in emergency situations such as the one
we have today that the United States
and other free countries in this hemi-
sphere do not have to wait on the action
of the Organization of American States
to deal with emergencies of this type.
The resolution follows :
Whereas the intervention of international
communism directly or indirectly in an
American republic would constitute a fact
or situation threatening the sovereignty and
political independence of the states of the
entire New World; and
Whereas the American continents, by the
free and independent position which they
have assumed and maintained, have long
since ceased to be considered as subjects for
future colonization by any European power
or powers; and .
Whereas the intervention of international
communism, directly or indirectly, or how-
ever disguised, in any American state, would
be in effect such a colonization by a non-
American power or powers, and would violate
the sovereignty and political independence
of an American state; and
Whereas such a fact or situation extended
to any portions of this hemisphere would be
dangerous to the peace and safety of the
United States and the American continents;
and
Whereas the American Republics have con-
demned intervention or the threat of inter-
vention, even when conditional, from any
extrahemispheric power and have rejected
the attempt of the Sino-Soviet conspiracy In
its attempt to destroy hemispheric unity and
security; and
Whereas in the rapidly developing contin-
gencies of the atomic age there might not
be time to assemble a meeting of the Inter-
American Organ of Consultation to provide
for joint action to repel the danger: There-
fore be it
Resolved by the House of Representatives
(the Senate concurring), That if such a fact
or situation should present a s,.tdden emer-
gency, then any one or more of the high
contracting parties to . the Inter-American
Treaty of Reciprocal Assistance would be
justified, in the exercise of individual or col-
lective self-defense under article 51 of the
Charter of the United Nations, in taking
steps to forestall Intervention, domination,
control, and colonization by international
communism in the New World.
In case of such defensive measures having
been taken by the defending state or states,
it or they should report to the Inter-Ameri-
can Organ of Consultation, to the end that
an emergency committee, after the manner
provided by the Convention of Havana of
1940, be set up for the provisional adminis-
tration of the state thus defended, pending
its restoration to a government of the people,
by the people, and for the people.
WARSAW GHETTO UPRISING
(Mr. RYAN asked and was given per-
mission to extend his remarks at this
point in the RECORD and to include ex-
traneous matter.)
Mr. RYAN. Mr. Speaker, spring is a
time of year when all nature seems to
come back to life. It is a joyous time;
a time of renewal; a time of regeneration.
But, over two decades ago spring was
not such a time for the Jewish Inhabit-
ants of the Warsaw ghetto; for theirs
was a spring of sorrow, a spring of trag-
edy, a spring of death.
To speak of the Warsaw ghetto is to
speak again of man's inhumanity to man.
Before Poland was overrun by the Ger-
man and Soviet military forces in Sep-
tember 1939, the Jewish population of
Poland was estimated at 3 million. On
the eve of the invasion the population of
the Warsaw ghetto was placed at ap-
proximately 300,000. After the Nazi and
Soviet conquest of Poland, Jews from
other' areas throughout Poland were
brought into the ghetto. The ill-fated
inhabitants of the ghetto now numbered
an estimated 450,000.
This is a formidable number of people,
a number almost equivalent to the popu-
lation of the city of Buffalo, N.Y.
These people, these unfortunate souls,
imprisoned In their ghetto, were destined
by fate and by the will of their Nazi over-
lords for total extermination; they were
destined to be destroyed in the Nazi cre-
matoriums.
In November 1940 the Nazi rulers of
Warsaw began to take measures that
would eventually lead to the so-called
"final solution" of Poland's Jews. At
that time the Warsaw ghetto was sealed
off, and the prisoners, subjected to star-
vation, disease, and cruel and inhuman
treatment by their Nazi captors, awaited
the tolling of their death knell.
The destruction of the Warsaw ghetto
and its inhabitants was carried out in
an orderly and systematic manner, a
manner that fits very well the image and
reality of Nazi precision and thorough-
ness.
The "final solution" got underway in
the summer of 1942.
On July 22, 1942, the Nazi forces be-
gan a systematic reduction of the War-
saw ghetto. On that day, they trans-
ported 6,289 persons to Treb]inka where
they perished.
On the following day, July 23, another
7,815 were transported; on July 24, an-
other 7,444.
During the period from July 2 to July
23, 66,701 were taken from the ghetto.
In August, another 142,353 were re-
moved.
In September, the number was 56,730.
It has been said that after this forced
evacuation during the summer of 1942
only an estimated 40,000 to 50,000 Jews
remained in the Warsaw ghetto. Re-
duced in numbers but not in their de-
termination these human remnants of
the Warsaw ghetto began in January
1943 to stage an open resistance to-the
Nazi campaign of extermination.
Let me say at this point that the de-
tails I am about to relate are taken from
an account written in May 1943 by eye-
witnesses.
According to this account, In early De-
cember 1942 a new wave of massacres
and deportations began. Rumors circu-
lated in Warsaw that January was the
deadline. On January 18, the Germans
began a campaign of total destruction
that led to the obliteration of the Warsaw
ghetto.
Early in the morning on January 18,
strong detachments of the Nazi SS and
their henchmen entered the ghetto.
But, to their surprise some of the im-
prisoned Jews, in a final act of despera-
tion, barricaded themselves in blocks of
houses and mounted a bitter and heroic
last-ditch fight.
In the first few days of the attack the
Germans lost a score of dead and a few
score wounded. The battle raged on un-
til January 23, whereupon German tanks
drove into the ghetto. Houses were
burned down, and their dispossessed in-
habitants were captured and killed.
Over a thousand Jewsperished.
However, the majority in the ghetto
were forced to submit to the Nazi terror.
Large transports departed each day for
Treblinka; and after a few days this in-
itial resistance to their Nazi oppressors
ceased. The fate of the tragic remnants
In the ghetto was still undecided.
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April 29, 1965 CONGRE3SIONAL RECORD - HOUSE
To allow it to become marginal and then non-
productive would be inviting famine at some
future date. The wornout and eroded soil of
many Countries has causedfood to be scarce
in them and hunger and malnutrition to be
high.
Even with the technical aid the Soil Con-
servation Service has been giving, it is diffi-
cult to obtain the cooperation of all land
owners. Without this aid soirdistricts would
probably lose much of their usefulness. We
believe there are many other departments of
Government, which could stand a reduction
far better than the Conservation Service.
For a number of years we have believed
that the most useful :money expended by
the Federal Government in water control is
at its source. If through the construction of
terraces, structures, ponds, timber and grass
strips on the lands where: the water originates
its flow can be slowed, giving it achance to
seep into the ground, then the erosion will
be checked and the heavy silting of our main
streams will decrease. Such a plan can also
raise the level of our water table and lessen
the danger of water shortage.
Damsand levees have been constructed to
control floods, but slowing the runoff at the
source would be much more effective in the
long run. The Soil Conservation Service pro-
vides the most important aid, which can be
given by the Government to the landowner;
and it should not be curtailed when so much
remains to be done and there is such un-
necessary waste in other departments of
Government.
IMMIGRATION HEARINGS
(Mr. FEIGHAN, asked and was given
permission to address the House for 1
minute, and to revise and extend his
remarks.)
Mr. FEIGHAN. Mr. Speaker, I take
this opportunity to announce that hear-
ings on pending immigration; legislation
by the Subcommittee: on Immigration
and Nationality have been delayed nec-
essarily because of consideration of the
voting rights bill by the full Judiciary
Committee.
Our hearings opened on March 3, 1965,
at which time Attorney General Nicho-
las Katzenbach appeared before the sub-
committee. Secretary of State Dean
Rusk, Secretary of Labor Willard Wirtz,
and representatives of the U.S. Public
Health Service appeared at subsequent
hearings. We have taken' testimony
from interested Members of Congress
and the record of hearings is still open
for inclusion of statements from Other
interested Members.
It has been necessary to cancel sched-
uled hearings on three occasions since
completing testimony from the Public
Health Service on March 31, 1965.
I wish to assure representatives of
nongovernmental organizations and the
interested public who have made written
requests to appear, that we expect to tame
up this phase of our hearings; during the
week beginning May 10. Full Judiciary
Committee meetings preclude setting an
earlier date. Notre will be provided wit-
nesses of,the day and time set for their
appearance.
REPORT ON REFUGEE ADMISSIONS
(Mr. FEIGHAN asked and was given
permission to extend his remarks at this
No. 76---4
point ill the RECORD and to include
extrans;ous matter.)
Mr.: IGHAN.. Mr. Speaker, pursu-
ant to the provisions of the act of July
14, 19(0-Public Law 86-648-the so-
called fair share law, enabling the
United States to participate in the. re
settlement of certain refugees, the
A.ttorn(iy General is directed to forward
to the Congress every 6 months a report
on administrative operations authorized
under that law.
In vidw of the continuing interest of
my colleagues in the House and for their
informittion, I wish to include in the
RECORD. at this point the ninth semi-
annual -report of the Commissioner of
Immigration and Naturalization cover-
ing the operations from July 1 to Decem-
ber 31, 1964, together with a summary
covering the preceding eight semiannual
periods,
Detailed case reports on each person
paroled Into the United States are in the
custody of the Committee on the Judi-
ciary and are available for inspection by
any Member of the House at the office of
subcommittee No. 1 at 2139-A Rayburn
House i)ffice Building. ,
The :leport which is addressed to the
Speaker,, of the House of Representatives
is as follows :
8573
U.S. DEPARTMENT OF JUSTICE, IM-
MIGRATION AND NATURALIZATION
SERVICE,
Washington, D.C., February 4, 1965.
Hon. JOHN W. MCCORMACK,
Speaker, House of Representatives,
Washington, D.C.
DEAR MR. SPEAKER: Refugee operations
under the act of July 14:, 196), as amended
by the act of June 28, 1962, were continued
during the 6-month period ending December
31, 1964. This was the ninth. 13-month pe-
riod of operations under the act. During
the preceding 6-month period, according to
advisory report furnished by the Secretary
of State, 17,651 :refugee-escapees, as specified
in section 1 of the act, availed themselves of
resettlement opportunities offered by na-
tions other than. the United States. Accord-
ingly, the number authorized by statutory
"fair share" during the period covered by this
report was 4,41:3. During the period, 1,994
registrations were received from refugees in
the seven countries in which refugee opera-
tions were carried out under the act.
In addition to the 1,994 refugees who reg-
istered under the act during the 6-month
period, there were 366 registrations pending
at the beginning of the period, making a
total of 2,360 refugee applicants available
for consideration. Of these, 1,485 were
found qualified for parole and 348 were re-
jected or otherwise closed, leaving 527 regis-
trations pending, at the end of the period.
The following reflects the activity in each
of the countries in which the refugee opera-
tions were conducted during the period:
Registra-
Registra-
Found qual-
Rejected or
(ifntry
tions peed-
lions re-
Total
ified for
otherwise
Pending
ing June 30,
ceived during
parole
closed
Dec. 31, 1964
1964
period
Gerrnany-,---------------
13
130
143
49
51
43
France _-- .----------------
50
349
399
261
78
60
Austria_-
31,
152
183
99
25
59
BelgiumD --- - _________
11
24
35
7
:13
5
Italy ------ - ---------------
230
965
1,195
772
80
334
Greece-___---------------- .
16
59
75
37
19
19
Lebanon -------------------
15
315
330
260
113
7
Tots 1----------------
366
1,994
2,360
1,485
318
527
Established screening procedures resulted
in the *ejection of 122 applicants during
the peri id, on the following grounds:
Ineligibls----------------------------- 19
Security grounds ----------------------- 18
Crimina::grounds ---------------------- 3
Medical ;pounds ----------------------- 4
Immorality---------------------------- 0
Undesirspility------------------------- 7
Firmly s'ittled -------------------------- 26
Split far lilies (spouses and children left
behinC:an country of origin) --------- 11
Spouses and children of above princi-
pals---------------------------------- 34
Total -------------------- ~ 122
As of December 31, 1964, the total number
of refugee-escapees authorized by statutory
"fair shiire" since the effective date of the
act totaled 31,467 and a total of 29,714
refugees 'had registered since the beginning
of the program. Statistics for the program
are tabu ated below:
1st through
8th periods
9th
period
Authorizes by statutory
fairshare --.----_ -_--
Pendipg be ginning of
period
Registered during period
Total regis .eyed (pending
plus rece.ved)__________
27,720
Found qua lifted for pparole-
17,408
Rclosed_ejected a otherwise
9,946
Pending en n of periud_ _ __
366
4,413
366
1,994
2,360
1, 485
348
527
Of the refugees approved for parole to
date, 365 have been approved under section
2(b) of the act, which provides for a numer-
ical limitation of 500 "difficult to resettle"
cases.
A total of 18,022 refugees, in whose cases
assurances of housing and employment have
been received, have been referred to the In-
tergovernmental Committee for European
Migration for transportation to the United
States. Of these, 16,322 had arrived in the'
United States as of December 31, 1964, as
follows:
During
1st 8
During
9th period
periods
Albania ________________
432
18
450
Bulgaria----------------
257
67
324
Czechoslovakia---------
1.6
0
24
East Germany ---------
6
0
5
Estonia________________
1.4
0
14
Hungary-------- ---
1,426
112
1, 538
q
I'll
26
0
26
Jor
--------------------
an -----_----_.._--
2
0
2
Latvia-----------------_
70
0
70
Libya-
I
0
1
Lithuania______________
49
0
39
Poland------------------
929
41
970
Rumania -_--_____.epub-
Syrian Arab Rliie__
2, 988
46
785
6
3,773
52
Turkey -----------------
1.5
0
15
United Arab Republic
(Egypt)--------------
2,861
181
3,042
U.8.8. R--------- - - --- --
F
5
98
Yugoslavia_--_-_-----_-
5, 3
7
522
5,879
14,57-6
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CONGRESSIONAL RECORD - HOUSE April 29, 1965_
tend their remarks on the subject of my
special order.
. The SPEAKER pro tempore (Mr. AL-
BERT). Is there objection to the request
of the gentleman from Illinois?
There was no objection.
REPUBLIC
EN asked and was given
permission to address the House for 1
minute and to revise and extend his
remarks.)
Mr. SELDEN. Mr. Speaker, the revolt
which brought a request from the Do-
minican military for assistance in pro-
tecting the lives of U.S. citizens made
the action of President Johnson last eve-
ning not only necessary but urgent as
well.
In a report issued only last week, the
House Subcomniitee on Inter-American
Affairs, of which I am chairman, pointed
out that recent failures of the Com-
munists in Latin America only increase
the possibility that they will now seek
to extend their influence in that area by
violence and by terrorist activities.
While the situation in the Dominican
Republic is far from stable at this mo-
ment, there is every indication that the
rebel forces are now controlled by left-
ist, Communist, and Castro elements.
In my opinion, the President acted
wisely in sending U.S. Marines to the
Dominican Republic to protect the lives
of U.S. citizens. Developments in that
country should be watched carefully, as
there is every indication the Communists
are attempting to exploit the situation.
ECONOMIC WARFARE AND
ECONOMIC SUICIDE
The SPEAKER pro tempore (Mr. AL-
BERT). Under the previous order of the
House, the gentleman from Florida (Mr.
ROGERS) is recognized for 30 minutes.
(Mr. ROGERS of Florida asked and
was given permission to revise and extend
his remarks and to include a table.)
Mr. ROGERS of Florida. Mr. Speaker,
the Soviet Union is openly engaged in
an all-out effort to bury us-at sea.
This point can best be illustrated by
the high priority which the Kremlin has
assigned to the construction of ships
for the Russian merchant and naval
fleets. There can be little doubt that the
Soviet Union is determined to control
the oceans and trade routes of the world.
As a naval power, she is already second
only to the United States. As a mari-
time power, experts predict she will sur-
pass the United States in less than 2
years. Because of her enormous fleet ex-
pansion program, the Soviet Union may
soon be able to manipulate world ocean
freight rates at will, and through a supe-
riority in terms of numbers of ships, she
may be well on the road to economic
domination of the world. The weight of
numbers will soon begin to tell.
As of February 1, 1965, 612 merchant
vessels of various sizes and types-mostly
dry cargo ships and tankers-totaling
more than 4,197,200 deadweight tons
were on order or under construction for
the Soviet Union. With her own ship-
yards fully utilized, this tremendous
building program is being accomplished
by awards of sizable contracts to ship-
yards in East Germany, England, Fin-
land, Holland, Hungary, Japan, Norway,
Poland, Sweden. and Yugoslavia.
During the 3-month period from No-
vember 1964 through January 1965, the
Soviet Union accepted delivery of 27 dry
cargo ships. By comparison, U.S. ship-
yards delivered only 16 merchant vessels
during the entire year of 1964. More-
over, it needs to be pointed out that other
satellites in the Communist orbit-Bul-
garia, Czechoslovakia, East Germany,
Hungary, Poland, Red China, Rumania,
Soviet Cuba, and Yugoslavia-are also
participating in this maritime buildup.
As will be seen from the attached tabula-
tion, the Soviet bloc countries are build-
ing another 173 oceangoing vessels to-
taling more than 2,031,964 deadweight
tons.
The extensive building program has
obviously not been undertaken merely
to serve Soviet foreign trade or as a mili-
tary contingency, but must represent the
Communists'. approach to the cold war
on the economic front, and recognition
of ships as instruments of major eco-
nomic influence. The present Soviet
merchant shipbuilding effort alone is
more than 10 times that of the United
States. Nearly 2 million tons of the ves-
sels under construction for the Russian
flag are being built in Russian ship-
yards-an activity level 3 times that of
U.S. shipyards. It should be noted that
the Soviet Union has placed shipbuild-
ing contracts with other countries-in-
eluding some of our friends in the com-
munity of free nations-- only because of
this high degree of utilization of her own
shipyard capacity.
As of February 1, 1965, there were 44
commercial vessels, totaling about
613,829 deadweight tons, on order or un-
der construction in the United States.
These involved 2 tankers, 39 cargo ves-
'sels, and 3 ferryboats. In other words,
the Russians are building 15 times as
many merchant ships as we are. In
terms of tonnage, they are outbuilding us
by a ratio of 7 to 1. And, I might add,
the Soviet Union is committing large do-
mestic resources and a substantial por-
tion of its foreign exchange to enlarging
its merchant fleet.
While the Communists are building a
new and modem sea power potential, al-
most half of our naval fieet1is composed
of vessels 20 years of age and older. In
less than 2 years, more than two-thirds
of our Navy fleet will be overage. About
90 percent of all U.S.-flag dry cargo ships
and 55 percent of our U.S.-flag tankers
are 20 years of age or older. Our fleet
of dry cargo ships engaged in domestic
trades is virtually extinct. The average
age of the ships in our Great Lakes fleet
is 47 years. Our private shipyards are
more than 50 percent idle. And, U.S.-
flag shipping is carrying only 5 percent
of our export and import commercial
cargoes.
About these facts and figures, it is vir-
tually impossible to find an adjective
which would appropriately describe the
depth of my concern and alarm. Our
national security is at stake-so, too,'is
the collective security of the Western
Hemisphere and the entire free world.
Every new ship delivered to Russia by
any shipyard on this side of the Iron
Curtain nourishes the ever-extending
arm of Soviet economic tyranny. it is
particularly ironic that Spain-with
whom we have a mutual security pact
and with whom we conducted a large-
scale military amphibious assault exer-
cise only several months ago-has ac-
cepted contracts to build ships for Soviet
Cuba. The necessary funds can probably
be traced to the Kremlin.
One of the experts on this problem,
Mr. Vincent F. Caputo, Director for
Transportation and Warehousing Policy
in the Office of the Secretary of Defense,
stated recently:
Spearheading the economic warfare of the
U.S.S.R. is the oil offensive. In struggling
for the world's petroleum markets, the
U.S.S.R. has the oil, and can undercut the
Western competitive prices. But it needs the
tankers and pipelines that it cannot con-
struct itself.
It has asked the West to make the boomer-
anging poison darts that will ultimately un-
do the maker. And the West-a part of the
West-has naively agreed to thus contribute
to its own economic suicide.
Last year the Soviet bloc was building
10 tankers in its own yards. But it can't
meet the needs of its grand economic war-
fare strategy. So 43 tankers are being built
for the bloc in the free world yards.
Once in a position to control the seas
and the trade routes of the world, the
hammer and sickle fleet will be able to
force the ships of other nations into
layup. To exploit Communist strategy,
ocean freight rates will be deliberately
and adroitly manipulated to undermine,
bankrupt, and eventually eliminate free
world shipping. Then, we may witness
the display of Communist ships serving
American ports.
There is another aspect to our present
predicament. We also have the anomaly
of witnessing the rapid decline of U.S.-
flag passenger ships at a time when the
Soviet Union and other countries are
vying with one another in the construc-
tion and operation of luxury-class ves-
sels. While in this country there are nc
oceangoing passenger ships on order
elsewhere in the world 43 are presently
under construction, and 16 of these are
for the Russians.
Press dispatches of January 3, 1965,
reported Soviet Russia's ambition to
operate regular passenger liner service
between Odessa and New York.
Agreement has already been reached
on new transatlantic passenger service
between Leningrad and Montreal with
stop at Helsinki, Stockholm, Southamp-
ton, and LeHavre. Russia's desire for a
passenger service link with the United
States was expressed last year when
Soviet Merchant Marine Minister Victor
Bakayev stated in a Moscow press con-
ference :
It is our dream to have them (the new
Franko-class of luxury liners being built in
East German shipyards) operate on a Soviet-
American service between Odessa and New
York.
All of this takes place while the United
States apparently has decided to aban-
don passenger trade. All of this takes
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Aril 29, 1965 CONGRESSIONAL RECORD - HOUSE
The Turkish Government was looking for
the opportune moment to exterminate the
Armenian people. This time came when the
Allies were preoccupied with World War I.
The,.Turkish Government tookadvantage of
the .isolated Armenians and at midnight
April 24 arrested 100 intellectuals in the cap-
ital of Istanbul, deported them inland, then
executed them. During the ensuing holy
week began the deportation of Armenians
from every village, from every town-black
clouds hung over Armenians who were driven
from their homes of 3,000 years to the barren
desert land.
I witnessed with my own eyes in Syria,
thousands of starved women and children--
unrecognizable, skeletonlike, nearly naked
Of these Armenians, noble Christians, many
died before my eyes.
Between 1915 and 1918 Armenians took
refuge in Syra. The Turks wanted to kill us
all but they did not reach their objective.
Evil never succeeds. For the Armenians that
began to gather in Syria? aid came from
America through the Near East relief.
Orphanages and hospitals were set up. Ar-
menians are eternally indebted to Americans
for this aid.
Today 50 years have passed since those
dark days and the Armenian population
throughout the world has increased to at
least that of 1915. Armenians have estab-
lished themselves as good citizens in coun-
tries throughout the world.
In 1918 Turks made Armenia a burial
ground. Armenians bore a cross on their
shoulders; their faith in Christ gave them the
strength to endure.
In this, the 50th year since the massacre,
this must be our lesson-our martyrs died to
teach us to live. Armenians all over the
world are commemorating this day. We must
have faith in Christ; faith in our future.
Faith is a must to succeed and faith is tied
to hope and love. Love of God, love of
friends, neighbors-no matter of race, na-
tionality. Love works miracles.
SSPEEQH By CONGRESSMAN EDWARD P. BRLAND
The long and turbulent history of the
Armenian people has been sad and tragic.
Throughout its uneven course the Armenians
have seldom enjoyed peace and rest in their
homeland for any length of time. Their
homeland, had been the bridge, as well as
the battleground, of invading and conquer-
ing forces, from the east and from the west,
and because of that geographic fact they
have suffered in the course of wars between
Rome and Persia between Byzantium and
the Arabs, between Byzantium and the
Turks. Numerous times their country was
partitioned between Rome and Persia.
Early in the fifth century, nearly the whole
country became part of Persia, and every
effort was made by Persian rulers to have
Armenians renounce their Christian religion.
A bitter religious war was fought in 451,
one in which the Armenians were the losers,
but they still refused to yield to superior
Persian power on matters of conscience. By
clinging to their Christian faith, they
claimed moral victory over Persian author-
ities.
Toward the middle of the seventh century
Armenia was overrun and conquered by the
Arabs-and for some 250 years, Armenians
lived under the ruthless Arab governors ap-
pointed by caliphs of Damascus and Bagh-
dad.
In the late ninth century, as the Arab rule
weakened, Armenians asserted their free-
dom, regained a good measure of independ-
ence and then for about 200 years lived in
freedom and glory in the northern part of
the country. That period was the medieval
Golden Age of Armenia.
By the middle of the 11th century, Asiatic
invaders-Sul juk Turks-were harassing the
Armenians on their eastern borders. In
1071, the list Armenian stronghold surren-
dered to tee invaders. Large groups of
Armenians` ed the country ? ? * seeking re-
fuge and eventual homes in other lands.
Thus late ' In the 11th century began the
Armenian cdaspora, the dispersion of Armen-
ians from -jieir historic homeland. Despite
this, the majority of the population refused
to abandor their native land and remained
there until ;their extermination in 1915.
During tie next several centuries, Armen-
ians in Armenia endured all the hardships
caused and brutalities committed by their
Asiatic conquerors. Certain Turkish tribes
replaced others as rulers of the land. As
time went ,1n, the number of invading peo-
ples increayed while the number ofArmen-
ians inevitably decreased through emigra-
tion? force( t conversion to Islam and also
through waOtpn massacres. Early In the 16th
century, mast of the country and the ma-
jority of Aimenians were brought under the
rule of the-Ottoman Sultans. This did not
improve the lot of the Armenian people.
The Armenians were fated to suffer under
their new idasters as they had suffered un-
der others--slid for 400 years they endured
their unenviable lot.
They mate the best of a very bad situa-
tion, and t1 rough it all more than a million
of them meinaged to survive in their home-
land until the outbreak of the First World
War. .
And theli came their. national tragedy.
Then came ..the day that we commemorate
this day. iartyr's day. This day, marked
by Armenia as the world over, retells the bru-
tal massacres by the Turkish rulers in April
of 1915. F`.fty years usually notes a golden
anniversary But not this event.
This event and this day commemorate one
of the most tragic pages in the history of
mankind. I'l ink of it. Over a million Ar-
menians massacred. This barbarous, inhu-
man sacrifice of human life has been exceeded
in the wor(d,s history only by the insane
actions of filer against the Jews In World
War II.
And so wo gather this day so that the world
will never f 3rget what happened 50 years ago
to a brave a ad resolute people.
Is this oco sion and the many, many like it
throughout the world, an exercise in futility
and frustraion? No. I think not. The
world. must pause and reflect and point with
shame to the events that this martyr's day
brings to n Ind. It must not be allowed to
forget. Fa: the placid acceptance of the
Armenian tragedy of 1915 begets the danger
of repetitio:L
So I como to join with you in this mean-
ingful occasion. To congratulate you on
keeping the memory of your national tragedy
alive--to commend you for your magnificent
adherence to the cause of Christianity-to
compliment `you for not forgetting.
I expressiae gratitude of this Government
for the contributions you have made and are
making to his Nation. Your culture, your
attractivene as, your intelligence, your spirit,
have spread -the world over. This Nation has
been the be)leftciary of these attributes and
the United z States of America appreciates
them.
:PROGRAM
Invocatlo:i: The Reverend Emerson W.
Smith, ex acutive director, Council of
Churches of Greater Springfield.
Dinner.
Message: 3arnig Philigian, chairman, board
of trustees, St. Gregory Armenian Apostolic
Church.
Armenian recitation: Mrs. Ardashus A.
Aykanian, Airs. Nlshau H. Vartanian,
Honored guests: The Honorable Charles V.
Ryan, mays r of Springfield; the Honorable
EDwARD P. BOLAND, House of Representatives,
Washington, D.C.
Armenian address: The Very Reverend
Ehachadour Guiragossian, St. Gregory Ar-
menian Apostolic Church.
Choir: St. Gregory Armenian Apostolic
Church.
Address: The Most Reverend Christopher
J. Weldon, bishop of the Springfield Diocese.
Hayr Mer.
Benediction: The Very Reverend lCaacha-
dour Guiragossian.
Chairman of Armenian Martyrs' Day Ob-
servance: Ardashus A. Aykanian.
Mr. BUCHANAN. Mr. Speaker, the
tragic story of Turkey's brutal slaughter
of 11/2 million Armenians in 1915 is a
record of infam:' to match the worst of
the atrocities which have so filled and so
defiled this century of human history.
The genocide of this little natiol: which
was America's 'stanch ally ranks with
the crimes of Red China or of Nazi Ger-
many. Indeed, Hitler himself drew from
the fate of the Armenians inspiration to
move forward in his war of extermina-
tion against Poland. To the military
commanders of the Third Reich at Ober-
salzburg on August 22, 1939, he said:
Our strength is in our quickness and our
brutality. ? ? ? 1 have given the order, and
will have everyone shot who utters one word
of criticism. a . ? Thus for the time being I
have sent to the east only my Death's Heads
with the order tokill_without pity or mercy
all men, women, and children of the Polish
race or language. Who still talks nowadays
of the extermination of the Armenians?
He did well to cite the terrible fate of
these brave people as his example, for
this genocide by Turkey set the pattern
for the other mass exterminations of
our time.
This was, however, not even. 50 years
ago, a new pattern for the Turks. In a
long record of systematic slaughter of
Armenians, Greeks, and other groups,
it has been estimated that Turkey has
been responsible for the deaths of some
2,600,000 persons in a series of acts of
genocide stretching from 1822 until the
present time.
It is worthy of mention that in this
55Oth anniversary year of the Armenian
tragedy, the nation responsible is en-
gaged in another conflict, this time
against America's friend of longstand-
ing and stanch ally, the nation of Greece.
It is my profound hope that in this
conflict we will neither be unmindful of
Turkey's demonstrated propensity for
violence and cruelty, or Greece's long
and strong traditions of Christian faith
and morality and of friendship for the
United States. it is my further hope
that as we remember the tragedy of these
noble friends of yesterday, we shall be
redetermined to keep faith with and act
responsibly toward our friends of the
here and now, so that nevermore shall
an ally ofthis country suffer the terrible
fate at the hands of Turkey that did the
brave Armenians whose memory we
honor this day.
GENERAL LEAVE TO EXTEND
Mr. DERWINSKI. Mr. Speaker, I ask
unanimous consent that all Members
have 5 legislative days in which to ex-
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April 29, 1965 CONGRESSIONAL RECORD -HOUSE
place despite actions by the Congress Communist shipbuilding contracts on order
more than 5 years ago authorizing the as of Jan. 31,1965-Continued
construction of two superliners to aug-
ment the 'U.S. fleet-one for the Pacific
and one for the Atlantic service.
It is clear that we are relaxing while
the Communists aggressively build more
ships and expand their maritime
strength. Have we f ailed to recognize
the real aims of Communist ideology?
Much public attention must be fo-
cused on this problem. The solution can
be found only through nationwide reso-
lution, stating in effect that America
needs and wants a strong merchant ma-
rine. A first step could be taken by this
Government, acting in, the, interests of
the, American people to preserve and
build a strong merchant fleet for the
sake of national defense. A first ap-
proach may well be increasing the re-
quirement that U.S. Government-
generated cargoes be shipped aboard
American merchant ships. Is the pres-
ent requirement that 50 percent of U.S.
Government cargoes be carried by our
own ships and-, crews sufficient? I do. not
think it is. More Government cargoes
for our own shippers would help their
business, create demand for more ships
to be built, and cause adjustments in our
national maritime policies, `And cutting
down the amount of U.S. Government
cargoes shipped aboard foreign-flag
ships would certainly cut down the out-
flow of U.S. gold. This step would surely
be appropriate for the Government to
take.
To serve the national interests on the
oceans' and Great Lakes, where foriegn
shippers have penetrated to the point
where they carry the majority of cargoes
transported into the heartland of
America, a reappraisal is in order. We
must note the difference between de-
structive pennypinching and construc-
tive investments.
The American people must be
awakened to the threat that.faces us on
the oceans. We must recognize the wis-
dom of engaging in realistic maritime
and shipbuilding programs. We must
realize the time for action is now. To
delay longer could be disastrous.
As part of my remarks I ask that the
following table be included:
Communist shipbuilding contracts on order
as of Jan. 31, 1965
Num-
ber
Dead-
weight
tons
Soviet Russia:
Dry cargo vessels----------------
427
2,269,900
Tankers ------------------------
120
1,769
800
Bulk carriers --------___-_______
7
,
157
500
Passenger and specialized vessels-
68
,
(1)
Total------------------------
Poland:
Dry cargo vessels.
71
531, 400
Bulk carriers __-
6
135,000
Total --------------------------
77
Yugoslavia:
Dry cargo vessels________________
18
139
000
Tankers.................. -----
8
,
264, 000
Bulk carriers____________________
11
320
000
Passenger and specialized vessels.
4
,
(1)
Total -------------------------
Bulgaria:
Dry cargo vessels-------- ------
Tankers- ----------------------
Total -------------------------
Rumania:
Dry cargo vessels________________
Tankers- -----------------------
Bulk carriers____________________
Total----------_______________
Red China:
-Dry cargo vessels ________________
Specialized vessels -------------- ;
Total -------------- __---__ _ __ _
'Soviet Cuba:
Dry cargo vessels_______________
Specialized vessels--------
Total-------------------------
Best Germany: Dry cargo vessels---
Czechoslovakia: Dry cargo vessel-__
Hungary: Dry cargo vessel -________
Total-- --- ----------
Num-
ber
5
2
5
1
Dead-
weight
tons
41, 295
49,900
38,500
71, 900
204,000
70, 660
(1)
81, 709
(1)
Si, 709
69, 200
12,700
source: Fairplay Shipping Journal, "World Ships on
Order," February 1965.
SON'S ACTION IN DOMINICAN
REPUBLIC CRISIS. ,
The SPEAKER pro tempore: Under
previous order of the House, the gentle-
man from Florida [Mr. FASCELL) .is rec-
ognized for 5 minutes,
Mr, FASCELL. Mr. Speaker, Presi-
dent Johnson's action in sending the
U.S. Marines into the Dominican Repub-
lic to protect the lives of American citi-
zens caught in the attempted. revolt, is
urgent and necessary and I fully sup-
port it.
Furthermore, it appears that the rev-
olutionary group is infiltrated by Castro
Communists and they are attempting to
take over the Dominican Republic.
The United States should promptly
support the request for assistance by any
anti-Communist provisional government
so that this attempted takeover can be
quashed.
The Organization of :American States
acting under article 39 of the charter
of the OAS, should immediately send
an observation group to the Dominican
Republic to assure the Latin American
countries and the other nations as to
what is transpiring and to insure the
return of a democratic government to
the people of Santo Domingo.
Mr. ROGERS of Florida. Mr. Speak-
er, will the gentleman yield?
Mr, FASCELL. I yield to the gentle-
man from Florida.
Mr. ROGERS of Florida. Mr. Speak-
er, I want to say that I commend the
gentleman for his comments and I agree
with him. It is my. sincere hope that
the President's actions represent a fore-
shadowing of the new approach that our
Government will use in its foreign pol-
icy, that wherever the lives of Americans
are in danger in any part of the world,
8591
the President will use whatever strength
and force is necessary to give protection
to American nationals.
STATUTES, REGULATIONS, POLI-
CIES, AND PRACTICES OF SE-
LECTED FOREIGN COUNTRIES
PROVIDING FOR PREFERENCES
FOR DOMESTIC MATERIALS AND
FIRMS IN THE AWARDING OF
PUBLIC SUPPLY AND PUBLIC
WORKS CONTRACTS
The SPEAKER pro tempore (Mr. AL-
BERT), Under previous order of the
House, the gentleman from Pennsyl-
vania [Mr. SAYLOR] is recognized for 1
hour.
Mr. SAYLOR, Mr, Speaker, contin-
uing the series of findings developed out
of a study of the public purchasing poli-
cies of leading industrial nations doing
business with the United States, I am
today presenting the third. of a series of
documents that first appeared in the
CONGRESSIONAL RECORD on April 27. The
set to be included at the and of my re-
marks relates to the policies and prac-
tices of France, Germany, Italy, Greece,
and Turkey.
As this series is continued, Members
of Congress can understand more clear-
ly and to appreciate more sympatheti-
cally why American industry and labor
-cry out against the U.S. Government's
insistence on buying with tax funds for
public use the products of alien industry
and labor when the facilities and man-
power to make them are available at
our own plants.
Why, we ask, are U.S. Treasury funds
expended outside this country at the
expense of this Nation's work force?
Why, when our unfavorable balance-
of-payments position threatens our
whole monetary stability, are Federal
dollars.not kept at home whenever prac-
ticable?
Why is our own self-interest ignored
when our friends abroad are so careful
to exclude use of American products for
public works projects?
It would be naive to suggest that the
U.S. Government is pursuing its anom-
alous course as a gambit or strategem to
induce reciprocal treatment, for by now
it must be obvious even to the most stub-
born doctrinaire that the most friendly
governments are not so magnanimous as
to make contracts with outsiders while
home industries and workers go begging.
The one remaining question, Mr.
Speaker, is: How much longer must we
tolerate Federal frivolity favoring for-
eign fiduciaries?
Following is part three of the series:
FRANCE
(Member of EEC, GATT, and OECD)
French Government contracts are generally
governed by the Public Contracts Code estab-
lished by Decree No. 64-729 of July 17, 1964
(Journal Omciel, July 21, 1964, p. 6438),
which is for the most part a codification of
a large number of earlier decrees and other
regulatory provisions.
The Code provides for the following prin-
cipal methods of letting contracts;
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9592 CONGRESSIONAL' RECORD - HOUSE April 29, 1965
1. Open public tendering (adjudication work, sipplies and services which, due to eral Contract Specifications of the Ministry
cuverte) : bidding is open to all interested urgency, are motivated by unforeseeable cir- of War (article 11) and the Ministry of the
persons. cumstauces; for all those which, in the in- Navy. (article 2), the General Contract
2. Restricted public tendering (adjudica- terest ot the nation, must be kept secret or Specifications for Military Supplies (article
tion restraints) ? Only persons approved by for any Similar work, supply or service con- 21), the General Contract Specifications for
the contracting authority may submit bids. cerning national defense. Public Works of the P.T "C. (Posts, Telegraph
3. Open invitation for bids (appel d'offres As the result of the broad interpretation and Telephoners Administration) (Article 2)
ouvert) : Bidding is open to all interested given by the administrative authorities to and the General Contract Specifications for
persons. the ape al cases permitting the use of the Public Works of the City of Paris (Article 2).
4. Restricted invitation for bids (appel private contract method, which the code and In the field of military procurement and
d'offres restraint) : Only persons approved by previoui statutory and other provisions on works contracts, specific regulatory provi-
the contracting authority may submit bids. which it is based regard as the exceptional sions have the effect of reserving orders (ex-
5. Private contract (marche de gre a gre) : method,, it is in fact the one most frequently cept on very rare occasions) to purely French
The contractmay be negotiated with a sup- used. According to the December 1964 issue companies. Section 2 of Article 30 of the
plier or contractor selected by the contract- of "Marches Publics", [public contracts] pub- ArrSte (Order) of the Minister of National
Ing authority. lished t y the French inistry of Finance and Defense and Armed Forces of May 7, 1958
. The Code also provides for a special type of Econon: is Affairs, during the calendar year (Journal Officiel, May 29, 1958, p. 5111) , ap-
competitive invitation for bids (appel d'offres 1983 contracts concluded by open or re- proving the General Administrative Clauses
aver contours), which is authorized when stricted public tendering represented 1 per- applicable to industrial contract of the De-
technical, aesthetic or financial considera- cent., of the total value of all contracts, con- partments of National Defense, provides as
tions justify special research; such as a pro- tracts Concluded by open invitations for bide follows (unofficial translation from French):
posal for a new public building of mod- 6.4 percent., contracts Concluded by re- "2. Unless authorized by the Minister [of
ern design. The competition takes place stricted invitations for bids 33 percent. and National Defense] and subject to the supple-
on the basis cf a program drawn up by the private contracts 53.8 percent. During that mental provisions of Article 33 relating to
contracting authority. year th military contracting authorities con- war materiel, allocation of orders can only
Both types of public tendering and the tinued to use the private contract and re- be obtained by:
open invitation for bids must be preceded striotet.- procedures in preference to open "Physical persons who are nationals of
by advertisement in the official bulletin pub- procedures much more frequently than the the French Union;
lished for that purpose and in other media, civilian contracting authorities. "Corporate bodies which are not, in law
such as trade and technical journals. Most In practice, therefore, there Is ample oppor- or In fact, subject to foreign Influences which
government departments maintain lists of tunity for, discrimination against foreign the contracting authority would consider
approved suppliers and contractors and writ- bidden f incompatible .with the requirements of oa-
ten application must be made to each depart- Under the provisions of decree No. 60-724 tional defense. "
ment for inclusion on its list. The lists are of Juli ; 25, 1980 (Journal official, July 27, The provisions of Article 33 of the same
used in the selection of suppliers and con- 1960), , c ontracts of the departments, corn- Ministerial Order relating to orders for "war
tractors who are to be contacted in the case munes, departmental and communal public materiel" imply that enterprises manufactur-
of restricted invitations for bids as well establii;bments, urban districts and other ing such equipment must. be French or at
as the negotiation of private contracts. An local and municipal entities, including the least must manufacture in France. The
unofficial translation from French of the City of Paris, are governed in general by the provisions of that Article are as follows (un-
application form of the Prr (Posts, Tele- same rules as French government contracts. official translation from. French) :
graphs and Telephones administration) Is The 1980 Decree does not, however, suppress "1. In addition to the obligations provided
attached hereto. the suaremacy of public tendering, as does for in Art. 80, every candidate for a `war
In the case of public tendering the con- the Public Contracts Code, and grants much materiel' contract must fulfill the special
tracting authority must award the contract less dii cretion to use the invitation for offers legal and regulatory obligations concerning
to the lowest bidder, provided the price does method and the private contract method. such materiel, and in particular:
not exceed the stipulated maximum and sub- The 1964 code is not applicable to nation- "Special nationality requirements;
ject, in the case of open public tendering, to slued industries or state monopolies or to "Obtaining a manufacturing license or a
the right of the contracting authority to ex- porirtions wholly or partly owned by the sales authorization;
elude bidders whom it regards, as presenting cor are the "Control of the management,
the same as procurement partly owned
those of private are es- "Maintenance of net price accounting in
insufficient moral, financial or technical state. Their
qualifications. prises, although the provisions of the Code compliance with the provisions of Article
In the case of invitations offers the naturally have considerable influence. 34 below;
contracting authority need d not ot accept the "These provisions apply to concession
lowest bid and may accept the bid which In nlamy cases, government contracts may ctors an well as to sub-
it deems the most advantageous (la plus be rest r ved for French nationals by the terms holde holders sub-contractors srs" who are
set forth interessante) Code. according to objective criteria of the request for tenders or the suppliers ,,to invitation themselves ["b-cocommanufacturing; cowonear
for off ;rs. That situation is expressly recog-
.
Except t for the private contract method, nized in the "Guide de Fournisseur de classified as -war materiel.
"2. If, in an exceptional case, the State
the contracting authority has, complete dis- L'Etat' (Guide for the State Contractor) should give formal notice of a war contract
cretion to select the method by which the publisaed in 1964 by the Commission Cen- to an enterprise which does not hold a man-
contract is to be let. Theoretically, the use trale ties Marches (Central Contracts Com- ufacturing license or sales authorization for
of the private contract method is limited to .mission). The Guide states (page 12) that the materiel concerned, such notice shall
the special cases specified in the Code. foreign suppliers can submit bids subject to take the place, for such enterprise and for
In any case the contracting authority al- having; satisfied, if necessary, the conditions the materiel under consideration, of a manu-
ways retains the right to reject every bid and prevailing for importations of goods, but that facturing license or sales authorization.
to order the bidding procedure repeated. in certain cases the French citizenship of the entire duration of the execu-
tracting the case of invitations for bids, the con- the cintractors is required. The French "During enterprise shall -
tracting authority may elect to negotiate a Connell of State has held, however, that the tion main of the subjthe e entir ect contract,
all lethegally aprised regula-
private contract. contracting authority does not have the ns which apply all legally enacted
Under re-
Under the provisions of, article 104 of the power to reject a bidder by reason of his to hol.
code that method of awarding contracts may foreigi i nationality, if the exclusion of for- "Not later than one month after the giv-
be used for items of exclusive manufacture, eigneri was not expressly provided for by a ing of formal notice of such contract, the
for negotiating with owners of patents or !n- provision of the law or of the General Con- enterprise must deposit with the competent
ventors, or persons with exclusive rights to tract specification. An example of such a authority a file containing the documents
patents or inventions; incases for which the provision is Section 2 of Article 6 of the laid down for all requests for a manufactur-
technical problems and investments require General Administrative Clauses applicable to ing license or sales authorization for the
the use of direct agreement, for products contracts for current supplies (fournitures materiel which forms the subject of the
which must be bought at the place of pro- coura;ites) approved by Decree No. 62-1?10 contract.
duction or at the stockpile, for work and of December 14, 1962 (Journal Officiel, De- "In case of non-compliance with this time-
services carried out at research centers In cembtr 16, 1962), which provides that, sub- limit, the holder is liable to fines which, in
places of experimentation, etc.; whenever ject ti not contravening the stipulations of the absence; of respective regulation in the
bidding by other methods has proved un- intern ational agreements, the Minister can contract, shall be computed at the .rate of
acceptable to the contracting authority; for decide- that the bidders must be of French 1/Z per mil of the amount of the contract per
products and supplies as to which, on ac-, nationality. The decision must be men- day of delay."
count of the shortage of material it is im- tlone< in the notice of public tendering or Under the provisions of Article 1 of the
possible to `employ competitive bidding; invitation for ,bids. The notice must also Decree-Law of April 18, 1939 (Journal Offi-
when the enterprises and persons who were speclf the nature of the documents to be cfel, June 13, 1939, p. 1589) the term "war,
previously awarded contracts failed to carry furniibed by way of proof of nationality. materiel" is defined as firearms and ammuni-
them out and they are awarded to others at Aecorling to the treatise by Hainaut and tion conceived or intended for land, naval or
their risk and peril; In cases of shipping by Joliet cited infra (volume 1, section 104 bis), aerial war and material intended to carry or
public transportation services;, and for all similar provisions are contained In the Gen- employ such :firearms in combat.
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-April 29, 1965 CONGRESSIONAL RECORD - HOUSE
Article 2 of the same Decree-Law pro- will hestiate to order French equipment as Posts-Telegraphs-Telephones
authorization of the. State and under its
control, pursuant to the conditions pre-
scribed by decree. Article 5 of the Decree
of August 14, 1939, for the implementation
..pf such Article 2 and following Articles
(Journal Officiel, August 19, 1939, p. 10438)
provides that, in order to receive a manu-'
facturing license, a corporation (societe par
actions) must be of French nationality, must
be managed and directed by French citizens
and the majority of its capital must be held
by French citizens.
In the field of public works, article 21 of
the General Administrative Clauses appli-
cable to public works contracts entered into
in the name of the State established by De-
cree No. 61-529 of May 8, 1961 (Journal Of-
ficiel, May 31, 1961, p. 4915), provides for
preferences for materials, etc., of French
origin in the following terms (unofficial
translation from French) :
"5. With the exception of provisions aris-
ing from international treaties or agree-
ments, where applicable, all materials, ma-
teriel, machines, apparatus, tools and appli-
ances used for the execution of the works
must be of French origin.
"6. With the same exception, special devia-
tions may be provided for in the special con-
tract specifications or may be granted in the
course of the contract by ministerial deci-
sion.,,
The reference to international treaties and
agreements is obviously intended to take
into account the provisions of 'the Treaty
of Rome, particularly those relating to
the right of establishment and the free pro-
vision of services.
Article 3 of the same decree requires the
submission with bids of proof of the na-
tionality of the bidder and its personnel as
required by the tender notice or the invita-
tion for offers, if the contract is entered into
for defense requirements.
The opportunities for preference in favor
of French contractors and French materials
in practice and under the applicable regula-
tory provisions are described in the following
statement contained (pages 8-9) in the letter
dated December 10, 1968, from Maitre Jean
L. Sarrut and Maitre Bernard Siegler, cited
infra.
"(b) Our public authorities have various
possibilities to put aside foreign suppliers:
In connection with national defense they
may invoke the above referred regulations;
They may raise the import duties;
In connection with adjudications they may
put aside the foreign tenderers, in the same
manner as French tenderers who, in their
opinion, do not fulfill the required condi-
tions, without any recourse being possible;
In connection with the "appeals d'offres"
and the "marches de gre a gre" they may
choose French suppliers without contacting
foreign suppliers.
Another means may consist, in connection
with contracts concerning equipment of ma-
terial, for example, in requiring such char-
acteristics concerning the material that only
French equipment can comply with.
"(c) In fact, certain of these means are
indisputably used in some cases in France.
In connection with national defense, for ex-
ample, it might happen that French sup-
pliers be selected, although their prices are
much higher than those of foreign suppliers.
"But according to the information that
we have gathered, the preference in favor of
French suppliers has certain limits:
"The preference for French suppliers will
not play if French prices are fairly higher
"Also there are eases when, by reason or
economic _ policy, for example when the
French prices are going up, our public au-
thorities buy abroad deliberately.
"All this is not theoretical, and we know,
for example that our public authorities in
charge of the manufacturing of French coins
made abroad substantial orders which might
have been passed in France. Also certain
employers' federations complain about the
fact that our public authorities pass too
often contracts abroad."
The situation in the field of civilian gov-
ernment procurement is succinctly and
accurately summarized in a publication
entitled "France's Fifth Republic and the
Business World" published in 1963 by Busi-
ness International S.A., as follows (at page
31):
"Foreign companies can sell to civilian
state 'markets' whether they manufacture
in France or import, provided they abide by
import regulations. There is no equivalent
of the 'Buy American Act' in France. But
in the absence of written regulations and
presuming equal prices and services, the
'love-rate' (cote d'amour) is applied in fa-
vor of national suppliers, a reaction that
the Commission Centrals [des Marches] calls
'visceral.' "
The situation in France was confirmed by
a conversation which two members of the
United States Embassy in Paris had in April
1960 with Mr. Paul Gros, then Chief Purchas-
ing Officer of the French State Railways and
at the same time President of the French
Association of Purchasing Agents, and a Mr.
Dumas, of the Government Procurement
Committee. The conversation is reported
in Foreign Service Despatch No. 1685 (un-
classified) dated April 12, 1980, from the
United States Embassy in Paris to the Depart-
ment of State, Messrs. Gros and Dumas were
reported as stating that, while there are
no legislative or administrative regulations
corresponding to the Federal Buy American
Act in France, preference would generally
be given to the French suppliers without
any official requirement to do so. Mr. Gros
Is also reported as stating that for a non-
French firm to be seriously considered as
a potential supplier, its bid would have to
be 20 percent to 30 percent below the low-
est French bid.
PRINCIPAL SOURCES
(1) Letter dated December 10, 1963, from
Maitre Jean L. Sarrut and Maitre Bernard
Siegler, Avocats 8 is Court d'Appel, Paris,
letter dated May 28, 1964, from Maitre Siegler
and letter dated November 6, 1964, from
Maitre Sarrut, all to Cravath, Swaine &
Moore, Paris..
(2) Foreign Service Despatch No. 1585
dated April 12, 1960, from the United States
Embassy in Paris entitled "EXPORT: Public
Procurement Methods in France".
(3) Business International, S.A., France's
Fifth Republic and the Business World (Ge-
neva, Switzerland, 1963).
(4) Commission Centrale des Marches
(France), Guide du Fournisseur de 1'Etat
[Guide for the State Contractor] (Paris,
1964).
(5) de Grand Ry, L'Harmonisation des
Legislations au sein due Marche Commun en
Mati6re de Marches Publics [The Harmoniza-
tion of Laws concerning Public Contracts in
the Common Market), Revue de Marche
Commun (No. 37) pp. 247-251 (No. 38), pp.
282-292 (1961).
(6) Hainaut and Joliet, Les Contrats de
Travaux et de Fournitures de l'Administra-
than foreign ones. If, for example, foreign tion dans le March6 Commun [Public Works
equipment costs, say 10 percent less than and Supply Contracts in the Common Mar-
8593
FORM OF GENERAL INFORMATION FOR SUPPLY
CONTRACTS [FRANCE]
(Unofficial translation from French)
L Administrative and Legal Information
A. to be furnished by all candidates:
Correct name of enterprise ----------------.
Address and telephone number:
(a) of business seat --------------------.
(b) of plants, workshops or storage places
where the supplies will me manufactured
or kept -------------------------------
Manner of working: working owner -_--_
lessee-manager (state since what date) 1
(B) to be furnished by companies only:
Juridicial form (example: stock company,
limited liability company, partnership lim-
ited by shares) ___________________________.
Business capital --------------------------.
Date of information-----------------------
Persons authorized to bind the company in
matters of contracts:
Name.
Office.
Nationality.
Authorizing documents.
(1) President-director general, manager,
commercial director, etc.
(2) As applicable: by-laws, board of di-
rectors' resolutions dated ------- - etc.
II. Technical Information
1. Activities of the enterprise:
(a) List current manufactures:--_-__-___.
(b) Do you wish to be consulted on all
these manufactures or only on certain among
them? (In that case, list them) -------------
2. Area of plants, workshops, or storage
spaces indicated on page 1 under 1-A, section
b: ----------?
3. Personnel force used: Total number:
------ of which ------ laborers.
4. Energy used: Nature and power: ------.
5. Machines and installations comprising
plant equipment (list with indication of
power and maximum capacity of each) : __-_.
GERMAN FEDERAL REPUBLIC
(Member of EEC, GATT and OECD)
The only statutory provision relating to
public procurement in the Federal Republic
of Germany is the Reich Public Budget Regu-
lation (Reichshaushaltsordnung) adopted
December 31, 1922, and now in effect as last
revised on April 30, 1938. Section 46 of the
Regulation provides as follows (unofficial
translation from German) :
"(1) Contracts made for the account of the
Reich must be preceded by public tender,
unless the nature of the transaction or spe-
cial circumstances justify a deviation.
"(2) The Government of the Reich shall
establish uniform principles for the making
of contracts."
The public budget laws of the L3.nder
(States) contain similar provisions.
The basic provisions which are applied by
public procurement authorities are:
(1) Regulations for the Placing of Public
Orders-Except those in the Construction
Industry (Verdingungsordnung fir Leistun-
gen-ausgenommen Bauleistungen) (VOL);
and
(2) Regulations for the Placing of Con-
struction Contracts (Verdingungsordung
fir Bauleistungen) (VOB).
The VOL and the VOB are not mandatory
legal provisions but only general principles
drafted by specialists and considered by them
to constitute the best procedures. They have,
however, been made binding on federal gov-
ernment departments and agencies and the
French equipment, our public authorities ket], vol. 1 (Brussels, 1962), vol. 2 (1963). x Strike out one or the other, as applicable.
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CONGR]33SSIONAL RECORD - HOUSE April 29. 1965'
Lander by means of administrative circulars?
The VOL applies to most government depart-
ments, including the Ministry of Defense,
the Ministry of Posts and Telecommunica-
tions (PTT), the State Railways, the Min-
istry of the Interior and the Ministry for
Economic Property. The VOB is applicable
to all :public works financed by means of
federal credits. All nine Lander have also
adopted both the VOB and the VOL and they
are also binding on the municipalities.
Section 3 of the VOL andl Section 3 of
the VOB prescribe the followingmethods for
the letting of contracts:
(1). Public. invitation for offers (offentliche
Ausschreibung)-invitations for offers are
made to an unrestricted numl.Jer of firms by
publication in the Bundesausschreibungs-
biatt (Federal Bulletin for the Invitation of
Offers) and in the Bundesanzeiger (Federal
Bulletin) as-well as in daily newspapers and
trade journals.
(2) Restricted invitation for offers (be-
schrankte Ausschreibung)-limited invita-
tion for offers addressed privately to selected
firms.
(3) Direct procurement (freihandigo Ver-
gabe)-contracts are awarded without for-
mal proceedings in the discretion of the
contracting authorities, usually on the basis
of informal offers by at least three firms.
The first method is the standard one, but
is used principally for construction con-
tracts and even then accounts for only
about one-third of such contracts in value.
The second method may be used, if the na-
ture and extent of the order or work de-
mands special reliability, capability, or
competence. The third method may be
used in the restricted cases specified in the
VOL and the VOB. In practice, however, the
applicable provisions of the VOL and VOB
are liberally interpreted by the contracting
authorities, with the result that the method
to be used is largely in their complete
discretion.
In any event, even in the case of a public
invitation for offers, the contracting au-
thority is under a duty to accept the offer
which is the most economical, (wirtschaft-
liche), taking into account all relevant
factors; hence, there Is no duty to accept the
lowest offer pricewise. There is, accord-
ingly, ample opportunity for discrimination
in favor, of domestic suppliers and con-
tractors. .
Both the VOB and the VOL regulate ex-
plicitly the utilization of products or mate-
rials of foreign origin but they do not contain
any specific provision dealing with the treat-
mentto be given to foreign bidders.
Section 10, No. 4, of the VOL contains the
following discriminatory provision (unofficial
translation from German) :
:"4, Specified places of. origin or supply
sources shall be ?prescribed only in a case
where required because of important reasons.
Foreign products may not be supplied if ap-
propriate products are manufactured in the
interior of the country at reasonable prices."
ally tc effect- performance of the class for
which tenders have been invited".
All The foregoing provisions are, however,
tempolwrily suspended. On May 20, 1954, the
Federal Finance Minister issued a Circular
(Minis eerialblatt dos Bundesministers fur
Wirtsc;zaft, No. 12, June 30, 1954) initially
providng for their suspension in the-follow-
:ing terms (unofficial translation from Ger-
:man).
"In trade exchanges with the country of
origin, the principle of reciprocity must be
granted in the case of public invitations for
tender;; i.e., offers by foreign competitors
and of;foreign products will, in the evalua-
tion of 'bids, be .considered in application of
the sane handicaps which the country of
origin concerned will apply to West German
bidderE"
Moreover, for'contracts valued at more
than :3M50,000 ($12,500), Which Involved
the deilgnation of a foreigner as the con-
tractor- of the use of products of foreign
origin, the authorization of the Federal Min-
iater o:'Finance was required.
The 3954 Circular was superseded by, a
Circular of the Federal Minister for Eco-
nomic Patrimony dated April 29, 1960, and
still in effect, which, at least literally, placed
foreign competitors and products on the
same level with domestic competitors and
producke. An unofficial translation from
Germa:i of the 1960 Circular is attached
hereto. -.It should be noted that paragraph 3
of the circular states that application of the
principle of reciprocity will again be taken
into consideration if difficulties should arise.
The 1960 Circular does not affect provi-
sions fir the award of contracts to the fol-
lowing previleged groups:
(a) lapelled people and refugees from the
Soviet Zone of Germany, individuals and
firms iii areas classified as "distressed areas"
(including West Berlin), evacuees and vic-
tims o:." National Socialist persecution.
(b) ltuitably qualified German "medium-
sized" arms (i.e., employing not more than
50 pers ms) . The Ministry of Defense places
a proportion of the total value of its con-
tracts 1vith such firms. The proportion va-
ries according to the type of supplies re-
quired "but in practice ranges between 30
and 40 3ercent.
In tie case of the first mentioned group,
the contract is to be placed with the privi-
leged igiplioant provided he is otherwise
qualified and his bid is as economical as (or
even, sibject to adequate budgetary funds
being avallable, slightly above) the most eco-
nomica bid submitted by a non-privileged
applieaat. The Lander and municipalities
are required to apply the same preferences.
It wr.l benoted that the provisions relat-
ing to privileged groups bear considerable
resemblance to the provisions of Executive
Order Flo. 10582 under the Federal Buy
Americs 41 Act relating to awards to small bus-
iness a 1oerns and to concerns located in
economically distressed areas.
By virtue of agreements with the United
States fgreat dead of German defense pro-
curemejlt is carried out in the United St
t
a
es,
"Tne use of materials or construction eom- , primari.- to offset the coat of maintaining
ponents of foreign origin must not be re- United States armed forces in the German
quested if appropriate national products ex- Federal Republic.
tat on the same terms and conditions." PRINCIPAL SOURCES
N
Section 8,
o. 1,. of the VOB. provides that
(unofficial translation from German) :
"In case of public invitation for offers, the
contract documents must be sent to all do-
mestic applicants who undertake profession-
was confirmed in effect with amendments by
a Circular dated May 11, 1960, of the Fed-
eral Ministers of Economic Property and
Economy. The current (1952) edition of the
VOB was promulgated by a Circular dated
April 23, 1953, of the :Federal Ministers of
Finance, Trade and PTT.
(1) A iirgram No. A-737 dated October 31,
1963, entitled "Orders Placed by the German
Bundeslxrst with 'Privileged Bidders"':
(2) Letters dated January 31, 1964, and
October 15, 1964, from the United States Em-
bassy ir-Bonn to Cravath, Swalne & Moore,
Paris.
(3) ce Grand Ry. L'Harmonisation des
Legislatfins au seindu March6 Commun en
M:atiere _de Marches. Publics [The Harmon-
ization If Laws concerning Public Contracts
in the Oommon Market], Revue du Marche
Commu:i (No. 37) pp. 241-251, (No. 38) pp.
282-292 (1961).
(4) Hainaut and Joliet, Les Contrats de
Travaux et de Fournitures de l'Administra-
tion dans Is ldarche Commun [Public Works
and Supply Contracts in the Common Mar-
ket], vol. 2 (Brussels, 1M).
(5) . Marketing Conditions: Germ
(
III, Business International, February 5, 1965.
an
... GERMAN,_FEDERgL R.EPuBLiC
(Joint Ministerial Circular dated April 29,
1960 (Minista;rialblatt of the Federal Min-
ister for Economy, No, 11, 1960, page 269)
(Unofficial translation from German)
Bonn, April 29, 1960.
The Federal Minister for Economic Prop-
erty of the Federation: Ref.: III gen.-0
8060-2/60.
The Federal Minister for Economy: Ref.:
I B 9-4436/60.
Foreign Offce Ref.: 400-80.10 (21).
To:
(a) The Federal Minister.
(b) The Federal Minister for Atomic En-
ergy and Water Administration.
(c) The Federal Minister of the Interior.
(d) The Federal Minister for Post and
Telecommunications.
(e) The Federal Minister for Transporta-
tioif-wfth a copy to the Central Adminis-
tration of the German Federal Railroads.
(f) The Federal Minister for Defense.
For information to:, (g) the Federal Min-
ister for Housing Construction.
Subject: Procurement Matters: Consider-
ation of Foreign ;Bidders and Foreign Prod-
ucts (VOL/A, ? 10, No. 4, second sentence;
VOP/A ? 8, No. L. first sentence, ? 9, No. 7).
Reference:--
Enclosures: One.
The rules provided for in the Regulations
(VOL/A ? 10, No. 4, second sentence; VOB/A
? 8, No. 1, first sentence; ? 9, No. 7), con-
cerning :
(a) the consideration of foreign bidders,
and
(b) the use of products of foreign origin
(where domestic bidders perform services)
in the case of public orders moist be applied
in keeping with the general economic de-
velopment and, in particular, the progres-
sive integration within the framework of the
European Economic Community (EEC); in
agreement with the Federal Finance Min-
ister, it is requested that the following prin-
ciples be observed in connection with all
procurements within the Federal territory:
1. In `view of the increasing liberalization,
especially of the European Market, the Ger-
man economic situation makes the purchase
of foreign products and the consideration of
foreign bidders,desirable from the viewpoint
of commercial and economic policies.
2. The advantages and disadvantages for
the domestic employment situation which
arise from the use of foreign products or
ordering fromforeign bidders must not be
judged from the viewpoint of the individual
economic section directly concerned. In the
case of individual sectors of the economy for
which special circumstances exist (e.g., min-
ing),.a need for protection might be justi-
fied from the point of view of National econ-
omy; in cases of doubt, it is recommended
that an inquiry be addressed to the Federal
Minister for Economy (Department I B 9;
telephone Bonn 3 0161).
3. The principle of reciprocity in the case
of granting state orders to foreign bidders,
as it had been set forth in the circular by
the Federal Finance Minister dated May 20,
1954 (II D-0-6060-25/54), shall for the time
being not be applicable. If. in the 'future,
in certain cases, particular difficulties should
arise, the problem of reciprocity will be ex-
amined again. The circular of the Federal
Finance Minister dated May 20, 1954 (II D-0-
6060-25/54) shall in this respect become
invalid.
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'April 29, 1965 CONGRESSIONAL RECORD - HOUSE
4. When considering offers by foreign bid-
ders, attention is to be given first of all to
the following:
(a) the principle for granting orders must
be observed (VOL/A ? 2, No. 1, VOB/A ? 2),
i.e., that the bidders are competent, efficient
and reliable;
(b) considering all circumstances, the offer
must be the most economical ["das wirt-
schaftlichste'] (VOL/A-? 24, VOB/A-? 25),
in which connection, particularly in the case
of foreign bidders and foreign products, the
sufficient securing of warranty rights, sup-
plies of replacement parts and, where ap-
plicable, servicing of delivered equipment
must, among other things, be carefully
weighed.
Since the Federal Republic will, for the
time being, no longer apply the principle
of reciprocity in the case of public orders (No.
3). offers by foreign bidders shall be evalu-
ated the same as all other offers, although
the guiding principles for preferred bidders
shall be observed.
5. The principles set forth in Nos. 3 and 4
shall apply mutatis mutandis in cases where
domestic bidders intend to use foreign prod-
ucts in the execution of the work.
6. The participation of foreign bidders
In public bids is promoted by the distribu-
tion abroad of the Federal Gazette publish-
ing invitations to bid which the Foreign Of-
fice has originated. In connection with the
nomination of suitable foreign bidders for
limited Invitations for offers and direct
orders, to which special attention should be
paid, it is recommended that Inquiries be
addressed to the representatives of foreign
industrial organizations In the Federal
Republic of German (see enclosure) or to
the Consular offices.
The Economic Ministers (Economic Sena-
tors) and Finance Ministers (Finance Sena-
tors) of the States ["hander"] as well as the
municipal central organizations have today
been informed correspondingly.
The Federal Minister for Economic Prop-
erty of the Federation :
By order:
RossiG.
The Federal Minister for Economy:
By order:
Dr. LANGER.
Foreign Office:
By order:
Dr. IIARKORT.
Attested
OFFICIAL SEAL]
ROWALD.
(ilowald)
Enclosure: to the joint circular from the
Federal Minister for Economic Property of
the Federation, the Federal Minister for
Economy and the Foreign Office dated April
29, 1960 concerning: Defense Matters: Con-
sideration of Foreign Bidders and Foreign
Products (VOL/A ? 10 No. 4 second sentence;
VOB/A ? 8 No. 1 first sentence, ? 9 No. 7)
German-Belgian-Luxembourg Chamber of
Commerce: (22c) Kiln Cacilienstr. 48.
United States Chamber of Commerce (16)
Frankfurt (M) Rossmarkt 12.
Italian Chamber of Commerce for Germany
(16) Frankfurt (M) Feldbergstr. 24.
Netherlands Chamber of Commerce for
Germany (18) Frankfurt (M) Forsthausstr.
111.
French Commercial Service in Germany
(22 c) Bad Godesberg Kappellenstr. 1 a.
Federation of British Industries (22 c)
K61n-Marienburg Goltsteinstr. 219.
The Austrian Commercial Delegate in the
Federal Republic of Germany (16) Frankfurt
(M) Friedensstr. 5.
ITALY
(Member of EEC, GATT, and OECD)
The public works and public supply con-
tracts of the State are governed by the pro-
visions of Royal Decree No. 2440 of Novem-
ber 18, 1928, making new provisions regard-
ing the administration of Government funds
and the general accounting for Government
services, as implemented and regulated by
Royal Decree No. 827 of May 23, 1924, ap-
proving the rules for administration of Gov-
ernment funds and the general accounting
for Government services.
Articles 3, 4, and 6 of the 1923 decree pro-
vide for the following four methods for the
letting of contracts:
(1) Public tender (aster pYlbbliea)-public
invitations for tenders are issued to an un-
limited number of bidders by notices in the
press, and, in the case of larger contracts,
in the Gazetta Ufficiale (Official Gazette) of
the Republic.
(2) Selective tender (liticazione privata)-
private invitations to tender are issued to a
limited number of suppliers or contractors
selected by the contracting authority.
(3) Competitive tender (appalto-concor-
so)-this method is essentially the same as
selective tender but is used in special cases.
(4) Private contract (trattativa privata)-
the contract is let after private negotiation
with one or more selected suppliers or con-
tractors.
The 1923 decree prescribes public tendering
by means of advertising as the normal
method. Under the provisions of the 1924
decree selective tendering may be adopted
in specified cases, including cases of urgency.
Competitive tendering is essentially the
same, except that it is used only for special
works or supplies requiring well established
technical, artistic or scientific qualifications.
Under the provisions of the 1924 decree the
private contract method may be used in
specified cases where special or exceptional
circumstances prevail which do not conven-
iently permit the use of any of the other
procedures.
Under the public tendering and selective
tendering procedures, the contract is awarded
to the bidder who offers the best terms (i.e.,
the lowest tender in price). The contract-
ing authority does not have discretion to
select the bid which appears to it to be the
best or the most advantageous. Neverthe-
less, the contracting authority has the power
to exclude any bidder, despite the regularity
of the documents which he presents. The
exclusion may not be appealed and no rea-
son need be given therefor.
The bidding procedures described above
are mandatory for the entire State admin-
istration, that is, not only for the Minis-
tries and their subordinate departments, but
also for the autonomous agencies and other
governmental agencies. They are also man-
datory on the local administration level but
different rules obtain in the Regions. They
are not, however, applicable to industrial
enterprises owned by the State, which op-
erate like private corporations.
The only express statutory provision dis-
criminating in favor of Italian firms and
Italian materials are contained in Law No.
429 of July 7, 1907, as amended, relating to,
the State Railways, Articles 33 and 84 of
which provide as follows (unofficial transla-
tion from Italian) :
"33. Supplies of fixed and moveable ma-
terial and metal structures are, as a rule,
contracted out to national industry, by the
system of public bidding.
"The general management of the State
Railways, upon appropriate resolution of the
Board of Directors, may proceed by selective
tendering or private contract, when the in-
terest of the Administration so advises or
for the purpose of assuring an equitable dis-
tribution of the equipment among similar
establishments in the various parts of the
Kingdom, the provisions of Art.. 16 of the
Law of July 8, 1904, No. 351, remaining in
effect.
"If the result of the public bidding, se-
lective tendering or private negotiations
demonstrate that the conditions of national
industry do not permit the obtaining of
satisfactory prices, the general management
of the State Railways, upon due deliberation
of the Board of Directors, and following
authorization of the Council of Ministers,
may proceed with international tenders, to
which national firms are also invited.
"The director general shall give a de-
tailed accounting of the above-mentioned
supplies in the annual report pursuant to
Article 9.
"34. Under the same conditions; national
industry must be preferred in international
tenders,
"For supplying of materials pursuant to
the preceding article, there will be granted
by deliberation of the Board of Directors an
adequate protection to national industry,
which, however, may never exceed 5% of the
offer of foreign industry, increased by the
expenses of customs and transport to the
place of delivery.
"By offer of foreign industry is meant the
average of the lowest offers which represent
one-half of the number of foreign offers
deemed valid. If these are in odd numbers,
one-half is arrived at by the number itself
increased by one.
"If the foreign offer consists of only one,
the determination of equality of conditions
will be submitted to the judgment of the
Board of Directors.
"Whenever it may be necessary to provide
promptly for the normal supply of materials
for the operation of the State Railways, there
may be specially authorized, upon resolu-
tion of the Council of Ministers, selective
tendering or private negotiations with for-
eign firms.
In the case of public works, bids by foreign
firms are effectively precluded by the fact
that all contractors perform works pertain-
ing to the State or to public entities in gen-
eral In an amount exceeding 10,000,000 lire
(about $18,800) shall be registered in the
national list of contractors established by
Law No. 57 of February 10, 1962 (Gazzetta
Ufficiale, March 2, 1962). Articles 13-15 of
such Law, copies of an unofficial translation
from Italian which are attached hereto, con-
tain detailed prerequisites for inscription on,
the list. Most important, Article 13, read
in conjunction with Article 15, requires,
with respect to private firms, partnerships
and corporations that the technical manager
and all legally responsible directors be
Italian nationals, or If they are foreigners,
residents of Italy and nationals of countries
which grant the same privilege to Italian
citizens on a reciprocal basis. Exception-
ally, Article 4 of 1962 Law provides that,
when the works described required a very
particular skill and no suitable contractor
appears to exist among those registered on
the list, the contract may be awarded to
Italian contractors not registered on the List
or even to foreign contractors, subject to
prior notice setting forth the reasons there-
for being given by the contracting authority
to tLe Committee in charge of the List.
Nevertheless, the basic form of discrimi-
nation against foreign bidders is administra-
tive in nature. Despite the fact that the
basic laws and regulations prescribed public
tendering as the standard and normal method
of letting contracts, the contracting author-
ities have so interpreted the law and regu-
lations as to relegate public tendering to
second place in favor of selective tendering,
with the result that that method is used in
an estimated 70 to 80 percent of the cases.
In selective tendering the contracting au-
thorities resort to companies included on
lists of suppliers, the most important of
which is that maintained by the Provvedi-
torato Generale dello State (General State
Purchasing Office).
In order to obtain registration on the
List of that Office, an application must be
submitted and the applicant's technical and
commercial ability must be established.
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Other lists of suppliers, more or less gar- It the technical manager (direttore) of the ARTICLE 1.5. REQUIREMENT," FOR COMMERCIAL
caned by the same practice, are maintained unriertakine is a diff'rnn+ ,.~ ., s .. ..
T." ..o,.,..,.- ?-"`----- - wan -
uy sne vnree oranches of the Ministry of ap, ly to both;Y ~..~o ~~ `?`" ` olio G must
Defense (Army, Navy, and Air Force). Other (3) certificate of registration with the
ministries and government offices normally Chisaber of Commerce, Industry and Agri-
use the fkrst mentioned list. It is extremely cul':ure with -indication of the specific
difficult, although not impossible, for a for- act: vity of the Arm,
eignn company to obtain inclusion on any (gig) certificate of direct taxes of the dis-
particular Mat, unless it operates in Italy trict office from which income under cate-
through its own organization or a permanent gor;' B is realized, for which the applicant
representative, Each agency maintaining has been registered in the income tax rolls
a list has full and complete discretion, in the 3-year period preceding the registra-
moreover, as to whether it will or will not in- tiorapplication, with respect to the particu-
scribe a company on the list, even if it com- lar activity as a contractor developed by
plies with all the requirements prescribed him., If the latter is not yet registered, he
The same discretion exists in the case of must produce an appropriate statement by
removal from a list. such office;
Furthermore, a number of important aged- c
ties are expressly authorized to lot contracts in (` ) --similar a certificate atioional) of registration
by private negotiations. Article 1 of Royal a =similar association.
Decree No. 540 of March 11, 1923, prescribes A] TICLE 14. SPECIFIC REQUIREMENTS FOR
eral State Purchasing Office, which purchases
certain supplies for all central and local ad-
millistrations, except the State Railways.
Under the .provisions of Article 1 of Royal
Decree-Law No. 1718 of September 30, 1929,
the Ministry of Defense (Air Force) has com-
plete discretion in most cases to use either
the selective tendering or private contract
methods. Also, Article 31 of Royal Decree
No. 728 of June 28, 1912, grants the State
Railways complete discretion to use the
private contract mvehod. Numerous other
agencies have similar statutory dispensation.
drill'Avv. Eroole Graziadel, attorneys of
Rome, Italy, to Cravath, Swathe & Moore,
Paris.
(2) Foreign Service Despatch No. 922 dated
March 25, 1960, from the United States Em-
harry in Rome, entitled "EXPORT-Italian
Procurement Regulations and practices as
they affect American Bidders and Suppliers".
(8) Airgram No. A-1241 dated March 5,
1963, from the United States Embassy in
Rome, entitled "Foreign Government Pro-
curement Practices".
(4) Letter dated December 6, 1963, from
the United ,States Embassy in Rome to Cra-
veth, Swains & Moore, Paris.
(5) de Grand By, L'Tfarmonisation des
Legislation au rein du Maareh8 Commun en
Matlere de Marches Publics [The Harmoniza-
tion of Laws concerning Public Contracts, in
the, Common Market], Revue du Marche
Common (No. 37) pp. 247-251, (No. 38) pp.
.282-292(1981).
(6) Hainaut and Joliet, Las Contrats de
'rravaux, et _de Fournitures de l'Administra-
tion Bans he Marche Commv,n, [Public Works
and Supply Contracts In the Common Mar-
ket]volume 1 (Brussels, 1962), volume 2
(1953)-
ITALY
(Excerpts from law of February 10, 1982,
concerning the institution Of a national
registry of contractors (Gazzetta Ufficiale,
Mar. 2, 1962) )
(Unofficial translation from Italian)
ARTICLE 13. GENERAL REQUIREMENTS FOR
'RSEGISTRATION
The general requirements and necessary
certifications for,registration in the Registry
are:
(1) Italian citizenship, or residence in
Italy with respect to foreigners, contractors
or directors of legally constituted commer-
cial companies, provided they belong to
States which grant reciprocal treatment with
respect '-o Italian citizens.
(2) absence of penal records or pending
matters relating to crimes under No. 2 of
article 21.
(1) Technical qualification-Technical
qualification is demonstrated by means of
dipl Rnas, certificates issued or confirmed
by ;echnical officials in service activities
referring to work executed or directed by
the applicant and by any.other document.
Tie certificates under the preceding para-
grap a must specifically indicate the works
execs tted or directed, their amount, the time
and ;glace ofexecution and state If they were
carri 3d out properly and successfully or
whether there were disputes with the Ad-
ministration by arbitration or judicially,
with an indication of the results of the.same.
If the works were executed on behalf of
the iitate or public entities, the certificate
is ianied by an official in active service,
with qualifications no less than those of
the Chief Engineer of Civil Engineering or
by an office director, under the immediate
direr ion of whom or under the supervision
of the office, of which the official himself
is chief, the works were executed.
If l he works were executed on behalf of
priva::.e parties, the relative declaration to
be issued by the contractor or, if there was
one, by the director of the works, must be
confirmed, subject to verification, by the
Chief Engineer of Civil Engineering.
For works executed or directed abroad,
there may be submitted certificates by the
props. consul, which contain all data re-
quireci above, with the explicit declaration
that, before issuing them, the official by
whom the documents are signed carried out
accurh,te investigations and obtained infor-
matio:l from the technical authorities of the
locaticm:
(2) Financial capacity-This is demon-
strated by proper bank references or by
docun: ents which validly prove the economic
and financial potential of the interested
party.
Bann references are requested directly and
;reserve d.ly by the competent Committee of
the institutions indicated by the applicant
in the eegistration of the request in question.
The other documents must be of a date not
earlier than one month from the date of the
application for registration and, if of an
earlier state, must be expressly confirmed
under date no earlier than 1 month from
that of the application.
(3) Technical equipment--The posses-
sion of-technical equipment must appear In
the declaration of the applicant, in which
there crust be listed and described means of
operati On, equipment, and materials in gen-
eral at its disposal, reserving to the Ad-
ministration facilities to execute controls and
to provide for legal redress in case of false
or inaccalrate statements.
Wherever the owner of the undertaking is
someone other than the technical manager,
the documents under No. I must refer to
the mahger, those under Nos. 2 and 3 must
refer to.the owner.
For the registration of commercial com-
panies, cooperatives and their branches:
(a) The requirements under Nos. 1 and 2
of article 18 are applicable: to the technical
manager and all "components" if It is an un-
limited partnership; to the technical man-
ager and all partners, if it is a limited part-
nership; to the technical manager and the
directors (amministratori) furnished with
powers of representation, for every other
type of company.
(b) Thee documents under No. 1 of article
14 are applicable to the technical manager.
The companies must also exhibit an au-
thentic copy of their certificate of incorpora-
tion and acertificate of the court issued not
more than two months prior to the applica-
tion for registration, from which it may be
ascertained. that the company is not in a
state of liquidation or bankruptcy and has
not submitted an application for bankruptcy.
It must also be ascertainable from the cer-
tificate whether bankruptcy proceedings or
an application for bankruptcy have occurred
within the: 5-year period prior to the above
date.
GREECE
(Associate member of :EEC; member of GATT
and OECD)
Under the provisions of Law No. 3215 of
April 26, 1955, Greek industrial products are
accorded preference in purchases (through
public bidding or otherwise) by State or
quasi-governmental agencies, municipalities
and communities as well as private business
organizations enjoying partial or total duty-
free import privileges. An unofficial transla-
tion from Greek prepared by the U.S. Em-
bassy in Athens is attached hereto assched-
ule A.
The preferences are applied as follows:
(a) The margin of preference for Greek
products Is 8 per cent of the landed cost of
foreign products (i.e., c.i.f. invoice price plus
all duties and taxes, other than turnover tax,
payable upon Importation). The maximum
allowable margin of preference, calculated on
the c.i.f. price of a similar foreign product,
is 30 percent for domestic products In gen-
eral and 35 percent for the products of the
domestic iron and steel and metalworking
Industries. In determining the landed cost
of imported products, the amount of import
duty and taxes added as above to the c.i.f.
invoice value may not be higher than 30
percent ad valorem generally and 35 percent
ad valorem for metal products, exemption
being granted for any duties and taxes in
excess of those percentages.
(b) In lieu of the foregoing preferential
treatment, Greek enterprises may apply for
the duty and tax-free importation of the
raw and auxiliary materials required for the
production of the goods being procured, in
which case the margin of preference accorded
the domestic industry is 10 perecnt (instead
of 30 percent or 35 percent) of the c.i.f.
price of the foreign product.
(c) In comparing the prices of Greek pro-
vincial industrial and handicraft products
with those ofimported products, the price
differentials in favor of Greek products in-
dicated in paragraphs (a) and (b) above,
are further increased by the margins of pre-
ference accorded provincial products in
relation to porducts manufactured in the
capital area, under the provision of Decree
Law 2176 of 1952. The margin of preference
accorded provincial products over those of
the Athens area varies, according to the type
of product involved from -2 percent to 5
percent and may in no case exceed 8 percent.
By virtue of Law No. 3213 of 1955 thoseper-
centages are further increased by 50 percent
for industrial enterprises operating on Greek
islands (except the island of Ewboea). Ac-
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'April 29, 1965 CONGRESSIONAL RECORD - HOUSE
cordingly, provincial industrial and handi-
craft enterprises may be given a price pref-
erence of 11 percent to 20 percent of the
landed cost of foreign products, depending
on the location of the producing plant and
the type of product involved.
The provisions of Law No. 3215 are not
applicable to procurement contracts pertain-
ing to industrial projects authorized under
Greece's basic foreign investment law (Law
No. 2687 of 1953) and under Law No. 4171
of 1961. For such projects, equipment and
supplies may be purchased freely from any
source at the discretion of the investor.
THE AGREEMENT OF ASSOCIATION WITH THE
EUROPEAN ECONOMIC COMMUNITY
The Agreement was signed on July 9, 1961,
and took effect on November 1, 1962 (Journal
Officiel of, the European Communities, Feb-
ruary 18, 1963). It provides for the associ-
ation of Greece with the Community under
the provisions of Article 238 of the Treaty
of Rome on the basis of a customs union,
with the prospect of full membership when
the progress of the Greek economy allows
Greece to assume fully the obligations im-
posed by the Treaty. The customs union is
to become fully effective on November 1,
1974, except in the case of specified manu-
factured goods produced in Greece as to
which the effective date will be November 1,
1984.
Article 3 of the Agreement provides for an
institutional structure for Its implementa-
tion. The Association Council, which is
composed of representatives of Greece on the
one hand and of the Member States and of
the Community on the other hand, has the
general function of taking all measures
necessary to assure the realization of the
aims of the Agreement and to conduct all
examinations into the development of the
cooperation between the Contracting Par-
ties. All decisions adopted by the Council
must be unanimous.
The Agreement in general follows the out-
line of the Treaty of Rome. In the field of
public contracts the most important pro-
visions are Article 5 relating to the elimina-
tion of discrimination on the basis of na-
tionality, - Articles 47 and 48 relating to
establishment, Article 49 relating to serv-
ices, Article 57 dealing vaguely with the
approximation of laws and Protocols 1 and 9
limiting the application of the Agreement
In the field of public contracts. A copy of
an unofficial translation from French of
those Articles and Protocols is attached
hereto as Schedule B.
It seems obvious that the application of
the provisions of the Agreement, as limited
by the Protocols, is not likely to have much
effect in the foreseeable future in the field
of public contracts. Protocol 1 contains ex-
press limitations on the, application of Ar-
ticle 5 of the Agreement in so far as public
contracts are concerned; Protocol 9 contains
an exception with regard to agreements for
financial aid between the United States and
Greece and exempts them, at least until the
end of the first transitional period ending
in 1974, from the application of the provi-
sions of Article 5. Moreover, Articles 47 and
48 contain only vague provisions with re-
gard to the right of establishment and leave
the ultimate decisions in this field to be
worked out by the Association Council. Also,
under Article 49 the authority to regulate the
furnishing of services between the Com-
munity and Greece is reserved to the Asso-
ciation Council.
PRINCIPAL SOURCES
(1) Industrial Development Corporation
S.A. (Athens), Greece: Basic Incentives to
Industrial Development and Foreign Invest-
ment (July 1963).
(2) United States Department of Com-
merce, Basic Data on the Economy of Greece,
No. 76-7
Overseas Business Reports, No. OBR 64-20
(February 1964).
(3) United States Department of Com-
merce, Establishing a Business in Greece,
Overseas- Business Reports, OBR No. 62-10
(November 1962).
SCHEDULE A. GREECE
(Law No. 3215 of 1955 providing preference
for domestic industrial and, handicraft
products (Official Gazette, Apr. 30, 1955))
(Unofficial translation from Greek by U.S.
Embassy in Athens)
PAUL, KING OF THE HELLENES
Having unanimously voted with Parlia-
ment, we decide and ordain:
Article 1
1. In connection with procurements ef-
fected by the State, or by Municipalities, or
Communities, or any other legal entity of
public or private law enjoying total or partial
exemption from import duties, either through
competitive tender or otherwise, directly or
through the State Procurement Service or dny
Committee, the products of domestic indus-
try and handicraft are given preference as
against the products of foreign origin even
if the cost of the domestic products in ques-
tion is higher up to 8 percent than that of
the respective foreign products.
2. Procurements of domestic fertilizers are
excepted, as coming under the application of
law 760 of 1948 "re marketing of fertilizers"
and as long as the law in question is valid.
3. Power production enterprises operating
by virtue of contract privileges ratified by
specific law, are excepted as well.
Article 2
To ' determine the comparative cost of a
foreign product, we add to the offered CIF
price the corresponding import duty-basic
and additional-which is provided for each
time by the duty tariff, as well as any other
tax or due levied on importation, excepting
the business turnover tax, which is not reck-
oned on the cost of the respective home prod-
uct, and then we add the 8 percent rate pro-
vided for in the previous article to the price
resulting in this way.
Article 3
1. A 30-percent rate on the respective CIF
price of the foreigi product is fixed as a
maximum of the preference provided for in
article 1 hereof in respect of home indus-
try and handicraft products.
2. The maximum rate provided for in the
previous paragraph is increased to 35 per-
cent in respect of home metal industry
products.
3. As places of delivery for such comparison
of prices, according to the above, are deter-
mined: (a) the Customs House for the im-
ported foreign products, and (b) the sup-
plier's factory warehouse for the local
products.
Article 4'
1. At the request of a local industry or
handicraft, in lieu of the protection provided
for In articles 2 and 3 hereof, exemption from
import duty is granted by joint decision of
the Ministers of Finance and Industry in
respect of the raw and auxiliary material re-
quired for the manufacturing of the prod-
ucts offered, in which instance the home
product preference rate is fixed at 10 percent
on the CIF price of the respective foreign
items.
2. The terms and formalities for duty free
importation of the raw and auxiliary mate-
rial dealt with in the previous paragraph,
as well as for control over the disposal of
these for whatever puropse they have been
imported, will be determined by joint deci-
sions of the Ministers of Finance and In-
dustry to be promulgated in the Government
Gazette.
8597
Article 5
In respect of monopoly items, as well as
of industrial products, on which no direct
or indirect duty is levied according to the
duty tariff operating each time, the prefer-
ence rate for the respective home industry
and handicraft products is fixed either at
10 percent on the CIF cost of the foreign
product, with duty free importation of the
raw and auxiliary material required for the
manufacturing of such home products, or up
to 30 percent without duty free importation
of the material in question. The above
10 percent preference rate can fluctuate be-
tween 10 and 20 percent in respect of cer-
tain monopoly items, following decision of
the Ministerial Council.
Article 6
1. The terms of the procurements pro-
vided for in article 1 hereof are compulsorily
formulated in such a way as to correspond to
the possibilities of the local industrial or
handicraft production under the prerequisite
that the relative products can meet the re-
quirements for which they are intended.
2. The method of application in general of
to previous paragraph will be specified each
time by joint decisions of the Ministers of
Finance and Industry to be promulgated in
the Official Gazette.
3. After 3 months from effect hereof, the
procurements provided for in article 1 of
the present law shall be effected in accord-
ance with the decisions provided for in the
previous paragraph.
Article 7
1. In connection with procurements ef-
fected according to the provisions hereof,
eventual preference for items of foreign
origin as against the respective local ones,
entails an obligation for payment of the
relevant duties and other taxes whose total
cannot, however, exceed 30 percent on the
CIF cost of these, or'35 percent as regards
iron or metal industry products. in respect
of duties and taxes over this percentage,
exemption is granted in accordance with the
relevant provisions, paragraph 8 of article 2 of
E.L. 896/37 having no effect in this
connection.
2. Particularly as 'regards Municipalities
and Communities, full exemption from
duties and taxes can be granted-following
decision bf the Ministerial Council issued
upon proposal of the Ministers of Finance
and Industry-in respect of water pipes im-
ported from abroad, as long as the price of
those offered by the local industry exceeds
the preference rate of the CIF cost of the
former.
3. The previous paragraphs are applicable
on procurements of State items as well.
Article 8
The preference rates in favor of local in-
dustry products which were determined by
virtue of the relative RD. of the 2nd Sep-
tember 1952 in application of the provisions
of article 3 of L.D. 2176/52 re protective
measures for provinical industry, as well as
by virtue of para. 1 of article 2 of the Law
"re amendment and supplementation of the
provisions concerning protective measures
for provincial industry", are valid collec-
tively in every instance of application of the
provisions of the present Law.
Article 9
The contribution on every kind of wax ma-
terials, either foreign or local, which is levied
In favor of T.A.K.E. (Greek Clergy Insurance
Fund) by virtue of E.L. 816/1937, as subse-
quently amended and supplemented by E.L.
2293/1940, Law 1017/1949 and E.L. 3092/1954,
is hereby abolished, as long as the materials
in question are utilized-in the opinion of
a Committee to be set up by joint decision
of the Ministers of Industry and Education-
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CONGRESSIONAL RECORD - HOUSE April 29, 1965
for industrial or handicraft purposes, except
for the manufacturing of candles or tapers.
Article 10
Transgression of the provisions heregf con-
stitutes a disciplinary offense, while any
civil, municipal or communal servants, or
any municipal or communal authorities, or
any of the administrative councils or the
competent officials of the other entities pro-
vided for in article 1, who would eventually
approve, or suggest for approval, the min-
utes of an adjudicated competition, or other-
wise carry out a procurement in transgres-
sion of the above provisions, shall receive
a disciplinary punishment by the competent
agents, irrespective of any other legal con-
sequency Of such transgression.
Article 11
The following provisions are abolished:
(a) article 6 of Law 294:8/1922 re promoting
industry and handicraft, (b) article 2 of
Law 4536/1930 re amendment and supple-
mentation of Law 2948/22, the Decrees Is-
sued In application of this article (1) of
14-5-31 re extending the preference limit for
all kinds of stamps, (2) of 23-3-32 re extend-
ing the preference limit for military cart-
ridges and ammunition. from 20 to 30 per-
cent, (3) of 25-10-35 re extending the prefer-
ence limit up to 27 percent In respect of
machinery and iron construction in general
made by the Greek industry, (c) of article 8
para. 4 of E.L. 254/36 re amendment of the
emergency laws of 19-10-35 and 28-12-35 re
organization of a cotton institute, (d) of
joint decision No. 6825/1263/22-1-37 of the
Ministers ofFinance and National Economy
re fixing the preference limit for local cotton
Industry products at 35 percent, issued in
application of para. 4 of article 8 of E.L.
254/36, and (e) of E.L. 477/37 re supplemen-
tation of article 16 of Law 2948/22 re pro-
moting industry and handicraft, as amend-
ed by article 2 of Law 4536/30.
Article 12
Acts Nos. 261/3-3-1951 and 628/21-5-51 of
the Ministerial Council are hereby ratified
for the period they have operated, and are
abolished by the present. Act No. 602/7-6/52
of the Ministerial Council Is likewise abol-
ished.
The acts in question read as follows:
[Note: Translation of Acts No. 261 and 628
of 1951 and Act No. 602 of 1952 omitted]
The present Law, having been passed by
Parliament and ratified by Us today, shall be
promulgated in the Official Gazette, and en-
forced as a Law of'the State.
ATHENS, April26, 1955.
The terms and tempo under which the
adaptation provided for in this Protocol must
be realized shall be fixed by the Association
Council taking Its inspiration from the solu-
tions which may be adopted in this field by
the Member States of the Community.
This Protocol shall be attached to the
Association Agreement.
PROTOCOL NO. 'I--CONCERNING UTILIZATION OF
AMERICAN AID BY GREECE
The contracting parties, in an endeavor
not to interfere with the utilization of
American aid by Greece, have agreed on the
following provisions:
1. If the provisions of the Association
Agreement form an obstacle to utilization by
Greece of special assistance funds placed at
the disposal Of the Greek economy, either
directly by the Government of the United
States of Ameirica, or by intermediary of an
organization designated by it, Greece shall
havethe power, after notification to the As-
sociation Council:
(a) To establish tariff quotas in observa-
tion of article 21, paragraph 2, of the Agree-
ment for the importation of merchandise
originating In the United States the pur-
chase of which is financed with the funds in
question;
(b) To import duty-free merchandise
which forms the substance of the gifts pro-
vided for by Title III of "Public Law 480";
(c) To restrict awards of contracts to sup-
pliers of products originating in the United
States only where the utilization of the
funds in question involves the importation
of merchandise originating in the United
States and where a competitive bidding pro-
cedure is required under legislative provi-
sions either of Greeceor the United States.
2. At the end of the transition period pro-
vided for in article 6 of the Agreement
[19741, the Association Council may decide
whether the provisions- of this Protocol
should be abolished or amended.
In the meantime, if changes occur in the
nature of the funds referred t4) in paragraph
1 of this Protocol or in the procedures for
utilization, or if difficulties arise with respect
to such utilization, the Association Council
shall re-examine the Situation with a view
to taking appropriate measures.
This Protocol shall be annexed to the As-
sociation Agreement.
TURKEY
(Associate member of EEC; member of GATT
and OECD)
The basic law concerning public pro-
curement is law No. 2490 of June 2, 1934
(Official Gazette, June 10, 1934), as subse-
quently amended. Under the provisions of
that Law, sealed public tenders are the
standard and, In practice, the usual pro-
cedure. Procurement authorities may re-
sort to open public tenders or to direct
negotiation only when an invitation for
sealed public tenders has met with no
response, the volume of the goods and serv-
ices is small Or the articles in question are
available only from a single source.
The objective of the sealed-envelope bid-
ding system was to eliminate bargaining
and price cutting by requiring every bid-
der to state his lowest price at the outset
of the adjudication. In practice, however,
there is much bargaining after the bids are
opened, since- all of them must then be
reviewed privately by the Adjudication Com-
mission, which subsequently invites each
bidder separately to explain or amplify his
offer. -
Foreign firms or individuals may tender
in the same way as Turkish nationals, unless
the contract is for less than LT15,000 (about
$1,667). In that event foreign nationals
may not tender unless they are registered
with the Turkish Commercial Registry Office
L. EFTAxIAS.
Ratified and sealed Athens, April 29, 1955.
The Minister of Justice:
CL. THSioPHANOPOULOS.
SCHEDULE B. GREECE
(Excerpts from agreement establishing an
association between the European Eco-
nomic Community and Greece and at-
tached documents 1)
Article 5
1. In the area of implementation of the
Agreement, and without prejudice of any
special provisions which it contains, none of
the Contracting Parties shall exercise or tol-
erate discriminations by reason of nationality
or against physical persons who are nationals
of another Contracting Party established in
the terr.tory of one of them.
2. Poi the implementation of the preceding
paragraph,. companies constituted pursuant
to legislation of a Member State of the Com-
munity or of Greece which have their cor-
porate lousiness seat, their central adminis-
tration or their principal establishment in
the territory of one of the Contracting Par-
ties shall be given equal standing with phy-
sical persons.
By companies, companies of the civil or
commercial law shall be. understood, includ-
ing cooperatives, and other juridical persons
under public or private law, with the excep-
tion of Iron-profit companies.
3. Th,s Association Council shall, in so far
as necessary, make the appropriate decisions
for putting an end to the discriminations re-
ferred to in this article.
TITLE IN. CIRCULATION OF PERSONS AND
-SERVICES
Article 47
The ';ontracting Parties shall facilitate,
in a prsgresstve and balanced manner, the
establishment of nationals of the Member
States in the territory of Greece and of
nationais of Greece within the Community,
in accordance with the principles of articles
52 to 5t inclusive, and.58 of the Treaty es-
tablishing the Community, with the excep-
tion of the provisions and articles relating
to time-limits and to the procedure for the
realizaton of a liberalization of establish-
ment.
Article 48
The "association Council shall by decree
set the tempo for this realization and es-
tablish the terms of implementation con-
cerning the provisionsof the preceding arti-
cle for the different categories of activities:
progres+:ive implementation shall take place
after - the corresponding directives provided
for in articles 52 to 56, inclusive, of the
Treaty -3stablishing the Community have be-
come e:fective and in consideration of the
special - economic and social situation of
Greece.
Article 49
The lwsociation Council shall decide, dur-
ing the- transition period provided for in
article S of the Agreement [1962-1974], on
appropriate provisions to be taken in order
to facilitate the rendering of services between
the Community and Greece.
TITLE IV, PROVISIONS RELATING TO COMPETITION,
TAXAT CON AND GRADUAL ELIMINATION OF DIF-
FEREIS CES BETWEEN LEGISLATION
Article 57
In the areas not covered by the provisions
of this Agreement which have a direct in-
fluence on the functioning of the Associa-
tion or In the areas covered by these pro-
specifieii procedure, the Association Council
may make recommendations to the Contract-
ing Parties Inviting the latter to take meas-
ures which will serve to harmonize legisla-
tive, regulatory or administrative provisions.
PRO )COL NO. 1--CONCERNING PUBLIC
CONTRACTS
The contracting parties have agreed on the
followli ig - provisions: -
In dgviation from the provisions of the
Association Agreement, and in particular
article g, the Contracting Parties shall pro-
gTessivcly adjust the terms and conditions
for participation in contracts awarded by
the adrainistrations or public enterprises as
well as private enterprises to which special
or exclaslve rights have been granted, in
such a Manner that, by the end of the tran-
sition Ieriod provided for in article 15 of the
I Unofficial translation from French. The Agreement [1984], all discrimination be-
Agreement was executed in Dutch, French, tween nationals of the Member States of
German, Greek and Italian, each of which the Community and those of Greece estab-
is equally authentic- (Article 77). There Is lished 'within the territory of the Contract-
no official English translation. ing Parties will be eliminated.
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 - -- - -------- ---- -- -- - - - --- -- --- --- ------- --- -
-
April 29, 15 CONGRESSIONAL --
- RECORD -
- - HOUSE $599
and have been established in Turkey for at Is no specific provision with regard to the Members of the House of Representa-
least l0 years. elimination of discrimination on the basis
in principal no preferential treatment is of nationality in the field of public contracts. Lives a petition I recently received from
given to tender from any one foreign coun- Articles 8 and 9, however, contain the follow- some 400 good citizens of the Lambert-
try as compared to any other country, ex- ing general provisions with regard to the Ville, Ottawa Lake, and Temperance
cept in the case of "tied" external financing elimination of discrimination on the basis areas in the Second Congressional Dis-
arrangements. Under the provisions of De- of nationality during the transitional stage triet of Michigan. The petition urges
cree No. 6/3083 dated June 1, 1964, however, (unofficial translation from French by the Congress to remove the Federal excise tax
the Ministry of Finance is authorized to American Society of International law, 3 on telephone service.
designate the country from which imports of International Legal Materials 85 (1964)) : This is an outstanding example of citi-
capital goods exceeding $50,000 are to be ,
made
m i
hentsn the State sector. The pro- "In order to realize the objectives set forth interested in national legislation, and
cerement authorities concerned are required in Article 4, the Association Council shall wisely acting to inform their representa-
to obtain information concerning foreign-a- establish, prior to the start of the transi- tives in Washington of their opinions.
naming possibilities from the Ministry of tional phase, and in accordance with the pro- The merits of the reduction or aFinance prior to their decision to purchase, cedure provided in Article 1 of the of the excise tax on telephone olit service
Or award of contracts for, imports exceed Provisional Protocol, the conditions, terms
ing $50,004. The Ministry may require that and rate of application of the provisions per- deserves careful attention.
the terms and conditions of available credits taining to the fields covered by the Treaty Few would argue today that telephone
be taken into consideration by the procure- establishing the Community which will have service is a luxury; certainly the produc-
ment authority concerned before a contract to be considered, , specifically those covered tivity Of my own office would be consider-
award is made. by the present Title, as well as any safeguard ably diminished without our telephones.
Preference for Turkish products is pro- clause which might be considered useful. I have received a number Of letters from
vided by the requirement that, if the Minis- "Article 9 elderly people in Lambertville athendy live
Tem-
try of Industry determines that a product "The Contracting Parties acknowledge that perance reminding me that
is manufactured in Turkey In sufficient within the field of application of the con- alone and must maintain their telephone
amounts to meet local demands, no similar vention, and without prejudice to the spe- service, but that the tax on this service
product can be Imported. tJuly 28, that es , cific provisions which might be established is a heavy load on their severely limited inis the list of y announced a y virtue of Articles, any discrimination on
products manufactured in. Tur- account of nationality is prohibited in ac- tis Most
no luxury will for agree that the
key was being compiled with a view to is- cordance with the principle set forth in telephone elephon these
people.
suing new regulations precluding the impor- Article 7 of the Treaty establishing the Is it, in fact, a luxury for any of us?
tation of all such products, Community." Is the telephone a luxury for the
AGREEMENT or ASSOCIATION WITH THE EURO- Vague provisions relatine to the
- - ---- ---- --
u erally conducts a great deal of his busi-
The Agreement between, Turkey and the
European emen
omic t Turkey signed wservices hich p are cant ifollows: the
ne in Articles 13 and 14, ness on the Phone? Is it a luxury for
in Ankara on September 12, 1963, and en- "Article 13 professional coon; the housewife; the
tared into force on December 1, 1964 (Jour- public administrator?
ter Official or ton Dec ember Communities, "The Contracting Parties agree to take Of course, Mr. Speaker, the answer to
December 29, f9 the, inspiration from Articles 52 through 56 and
The Agreement , 1658 of the Treaty establishing the Community these ec esiori 20th The telephone
provides for the associa- in order to eliminate the restrictions on the a necessity i n 20th century America,
tion of. Turkey with the Community under freedom of establishment among them.
the provisions of Article 23B of the Treaty and everyone iIm from knows it. My
of Rome on the basis of a customs union, "Article 14 petition has come from citizens of the
with the long-term possibility of full mem- "The Contracting Parties agree to take in- Second District of Michigan, but I be-
bership of Tin the Community, spiration from Articles 55, 56, and 58 through lieve they speak for millions of Ameri-
'The.,Agree Turkey rke provides for a preparatory, 65 of the Treaty establishing the Community can telephone users.
a transitional and a final stage in the associa- in order to abolish the restrictions on the As we all know, most excise taxes now
tion. During the preparatory period Of 5 free performance of services among them." in force were enacted in order to dis-
years, possibly extended to 9 years, from Similarly, vague provisions relating to the courage "consumer" s
the effective date, Turkey will continue its approximation of legislation are contained when national pending
resources and dg at a time
efforts to reorganize its economy and for in Article 16, which provides as follows: r a war nd production
that purpose the Community granted certain, "Article 16 were needed for a war effort. Today, we
concessions in the form of tariff quotas for,' "The Contracting Parties recognize that promote consumer spending in an effort
(imports of particular importance to the the principles set forth in the provisions re-
Turkish. economy as well as the granting lating to competition, fiscality, and the ap- economy. Is it wise to maintain a tax
through the European Investment Bank of proximation of legislation, contained in title which operates in opposition to national
The Agreement assistance. I of the third part of the Treat establishing economic
Agreement provides only a general y policy? I think not.
outline of the arrangements for the transi- the the [sic] Community, must be made ap- And, I would add, it is particularly in-
in-
outl stn plicable in their Association relations."
ge, the details iof which will be It seems obvious that the application of an appropriate is continue a tax, falling hn
settled only towards the end of the prepara- the provisions of the Agreement Is not likely essential see family's which taxes
tory stage. During the transitional stage, to have much effect in the foreseeable future out regard to a family's ability to pay.
ay.
which may not exceed 12 years from the effec- in the field of public contracts. In this country, we have established the
tive date, the Contracting Parties will grad- graduated income tax as that tax most
ually institute a customs union and bring PRINCIPAL SOURCES Into alignment the economic policies of - (1) Union of Chambers of Commerce, In- relatilikation n to fall hi s s ab ab thilitye citizen with y his
Turkey and the Community. dustry and Commodity Exchanges of Turkey, , as judged by his
The final stage is based on the customs Investment Guide to Turkey (Ankara, 1964).
income, to pay. We have tried to re-
union, which will cover all commodity trade (2) United States Department of Com- serve excise taxes largely to the func-
except products of the European Coal and merce, Investment in Turkey: Basic Infor- Lion of "user taxes.", This is how we
Steel Community. mation for United States Businessmen justify, for example, gasoline taxes:
Article 23 of the Agreement provides for (1956). they force the user of motor vehicle
an institutional structure for its implemen- (3) United States Department of Com- fuel to pay his share of the cost Of con-
tation similar to that provided by the Agree- merce, Selling in Turkey, Overseas Business structing and maintaining highways.
ment of Association with Greece. The Asso- Reports, OBR No. 64-97 (September 1964). is no ciation Council, which is composed of repre- But surely there the cost to ehe use of
sentatives of Turkey on the one hand and teal Government in the private use of
of the Member States and of the Community EXCISE TAX ON TELEPHONE telephone service. And the impact, for
on the other hand, has the general function the aver
of taking all measures necessary to assure SERVICE sae family any given tax
pme
per-
the realization of the aims of the Agreement (Mr. VIVIAN (at the request of Mr. centage bracket, of falls income, most on heavily, those as low-income
and to conduct all examinations Into the de- KRE85) was 9S granted npnPrmlee9nn
th
--Ilvo 4c4bL' le to pay.
e Contracting Parties. All decisions - adopted tend his remarks `" this Point in the For these reasons, Mr. Speaker, ,I am
by the Council rhmust os, be unanimous. RECORD and to include extraneous mat- happy to submit the petition from the
The Agreement in general follows the out- ter.) citizens of the Second Congressional
ine of the Treaty of Rome. Unlike - the Mr. VIVIAN. Mr. Speaker, I am District of Michigan, and to edoe ethat that.
lgreement of Association with Greece, there pleased to bring to the attention of the petition.
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CONGRES31ONAL RECORD - HOUSE April 29,,196-5
When legislation to adjust the Federal
excise tax reaches this' floor for a vote
during this session of Congress, I hope
we will abolish the fiction of the "lux-
ury" telephone and remove this tax from
the statute books.
[The matter referred to will appear
hereafter in the Appendix.]
NEW YORK CITY IN CRISIS-
PART LIV
(Mr. MULTER (at the request of Mr.
KREBS) was granted permission to extend
his remarks at this point in the RECORD
and to include extraneous matter.)
Mr. MULTER. Mr. Speaker, I com-
mend to the attention of our colleagues
the following articles from the March 11,
1965, edition of the New York Herald
Tribune.
These articles concern New York City's
participation in the poverty program and
is part of the series on "New York City
in Crisis."
The articles follow:
NEW YORK CITY IN CRISIS-CITY POVERTY PLEA
TODAY: $11 MILLION
(By Barry Gottehrer)
An anticipated request by Mayor Wagner
for more than $11 million in additional anti-
poverty funds from the Federal Government
is expected to trigger at least two moves to
audit the books of and investigate Haryou-
Act, the controversial Harlem community-
action program. Haryou.-Act, which has been
beset by internal conflict and external criti-
cism since its formation last June, has been
attacks and rumors
asin
in
g
cre
the target of
weeks," he saict
during the last 2 months. investigation. If. there is anything Wrong will consume the large snare of the $11 mil-
The audit reportedly would come from here, I'c:like to know about It. No project in lion, will resemble the Haryou-Act and mo-
Sargent Shriver's Office of Economic Oppor- the Nat Lon has done as much as we have in bilization-for-youth programs where all of an
tunny, which mayor Wagner will ask today to so ahorl a time. Any investigation that will area's antipoverty programs are consolidated.
wive $1.5 million of the requested $11 million give us afair and honest appraisal will be These six centers are reportedly scheduled
to Hary . most welcome." for south Jamaica, Brownsville, east Harlem,
Though h the the audit is expected to be de- Mr. jAcarnee heartily disagreed with the Bedford-Stuyvesant, south Bronx, and lower
scribed as "customary procedure" when it criticism that he had packed Haryou-Act Manhattan.
takes place in the next 10 days, it is under- With friends and associates of Representative Criticism o1' the city's program and its
stood that the Federal agency has been wait- POWELL, delay in making; its Federal request occurred
ing for its first opportunity
ce behind the doors This criticism has existed since early last at a luncheon of the Federation of Protestant
what has been taking place wren Dr. Kenneth Clark, acting chair- Welfare Agencies yesterday afternoon.
of the Harlem organization, which now oc- man of Haryou whose perceptive study, Lester Granger, former president of the
cupies two floors of the Hotel Theresa at ?Youth In the Ghetto," helped to launch International Conference of Social Work,
125th Street and 7th Avenue. the Hislem program, resigned from the said, "We haven't got a war on poverty.
Though more than $5 million in city and group which was to be merged with Act. We have a government pronouncement of
Federal funds have already been appropriated His 3harge: Representative POWELL was an objective. Whether or not we have a rea
for Haryou-Act, today's request represents trying 0 control the entire program. war on poverty is going: to depend on this
the first time any funds have been requested Thesi charges flared anew last month when man (gesturing at Mayor Wagner) and you
directly from Sargent lion er's office. Kennei h : Marshall, Haryou-Act's program guys and gals."
The second investigation will be called for directo Was ousted. After the .luncheon, Mayor Wagner told
by Representative ADAM CLACTON POWELL, Mr. Ifarshall and his attorney, Paul Zuber, reporters that Mr. Granger, "an old friend"-
Haryo -Ac Co adq a ter D and whose chargers that the entire organization had be- had "made a broad statement."
ported influence huence eadq and uarters control sli of d the whose program come Representative POWELL's private prof- "We have a lot of programs," said the
por ect and brought their charges to the atten-
has been the chief source of much of the tion of at least one New York Representative mayor, who then conceded that there had
organization's'continuing difficulties. and a Middle Atlantic Senator. been "a great deal of delay due to bureauc-
t racy " "We are really just at the beginning,"
l
'
p
y
ntipover
been privately conducting its own intensive ered that the area served by Haryou-Act is
audit of Haryou-Act's books for nearly a a high-tension area and a potential danger
month. area daring the summer if there are no fa-
Though Anne Roberts, the $22,500-a-year cilitiesand programs available for youngsters
staff director of the city board, maintained In the community"
last night that the city audit was "standard Although Mr. Wingate-and the city ad-
practice whenever city funds are used," Liv- ministration-say that the Haryou-Act pro-
ingston Wingate, executive director of Har- gram has made "tremendous strides," con-
you-Act, said that the audit has been sideriI g that the first funds were not
brought about by "outside criticism" and "all receivi d until last September, others in addi-
M h 11 have serl-
&
M
NEW YORK CrrY IN CRXSIS-FOR THE CITY's
WAR ON POVERTY, A $500-A-WEEE CON-
aULTANT
(By Martin J. Steadman)
The city's antipoverty program has a $500.
a-week consultant.
She is Mrs. Mary Conway Kohler, one o:
three consultants hired by the Poverty Oper.
ations Board,
r. ars
those rumors." tion to-Mr. Zuber and
The othersare Mrs. D'Jaris Watson, Wif
Mr. Wingate, a onetime assistant to Repre- ous d