NATIONAL PATENT POLICY IN GOVERNMENT CONTRACTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000200180001-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: November 11, 2016
• Document Release Date: February 23, 1999
• Sequence Number: 1
• Publication Date: January 29, 1962
• Content Type: OPEN

886
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CONGRESSIONAL RECORD - SENATE January 29
and fw' p#her purposes; to the Committee
on`the Judiciary.
(See the remarks of Mr. Wu,EY when he
introduced the above bill, which appear un-
der a separate heading.)
By Mr. SMATHI;RS:
S. 2755. A bill to repeal the tax on trans-
portation of persons; to the Committee on
Finance.
By Mr. KERR:
S. 2756. A bill to amend title 38, United
States Code, to provide Increases in rates
of disability compensation, and for other
purposes; and
S. 2757. A bill to amend the Tariff Act
of 1930 to provide for the free entry of
records and diagrams of engineering and
exploration data not imported for sale or
general distribution; to the Committee on
Finance.
By Mr..LONG of Hawaii:
S. 2758. A bill for the relief of Mesepa
(Naesepa) and Tuileau, both of Aloau Vil-
lage, American Samoa; to the Committee
on the Judiciary.
By Mr. JOHNSTON (for himself and
Mr. HIIMPHREY) :
S. 2759. A bill to provide for further re-
search relating to new and improved uses
for farm and forest products and for de-
velopment of new crops, and for other pur-
poses; to the Committee on Agriculture and
Forestry.
(See the remarks of Mr. JOHNSTON when
he introduced the above bill, which appear
under a separate heading.)
By Mr. PROXMIRE:
S. 2760. A bill for the relief of Yuk-Kan
Cheuk; to the Committee on the Judiciary.
By Mr. ERVIN:
S. 2761. A bill for the relief of Lily Jing-
hua Pan; to the Committee on the Judici-
ary.
By Mr. DIRKSEN:
S.J. Res. 149. Joint resolution authorizing
the President of the United States to desig-
nate the week of May 6, 1962, as "Interna-
tional Castings Week"; to the Committee
on the Judiciary.
(See the remarks of Mr. DinxsEN when
he introduced the above joint resolution,
NATIONAL PATENT POLICY IN
GOVERNMENT CONTRACTS
The Patents Subcommittee has before
it several bills designed to deal with
the patents problem. I believe that the
bill introduced by me today will begin
calling attention to the need to reevalu-
ate and to balance the interests of both
industry and the public.
This bill was prepared originally by a
committee of the Milwaukee Patent Law
Association. It is the belief of those
responsible for the drafting of this bill
that this bill will answer the need for
clarification of patent rights arising out
of Government-sponsored research.
"(2) patented or made the subject of a
pending application for United States Let-
ters Patent.
269. Title In the Government
"The Government may, notwithstanding
section 269(a), contract for title to inven-
tions made in the performance of a Gov-
ernment research and development contract
in which:
"(a) the contract is for the development
of a new field of technology as to which there
is at the time of the contract no significant,
non-Government experience to build upon;
or
"(b) the contractor is to function primar-
ily as an administrative agent of the Govern-
before the Senate Patents Subcommittee, meat; or
"(c) the contract is for the development
they all represent different points of of a product in a form suitable for com-
view in connection with this important mercial use and the availability of said prod-
issue, and I hope this bill will help ucts for public use does not depend upon
focus attention on other important
aspects of this legislation.
I request unanimous consent to have
the bill and the accompanying analysis
of its provisions printed at this point in
the RECORD.
The PRESIDING OFFICER (Mr.
BuRDICK in the chair). The bill will be
received and appropriately referred;
and, without objection, the bill and
analysis will be printed in the RECORD.
The bill (S. 2754) to establish a uni-
form national policy concerning rights
to inventions under contracts with the
U.S. Government, and for other pur-
poses, introduced by Mr. WILEY, was re-
ceived, read twice by its title, referred
to the Committee on the Judiciary, and
ordered to be printed in the RECORD, as
follows:
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That this
Act may be cited as the "National Invention
Act".
Sc. F2. Congress recognizes-
(a) that the United States patent system
was established to encourage inventions and
discoveries and the disclosure and commer-
cial use thereof; and
(b) that the general welfare and the pro-
motion of science and the useful arts are
Mr. WILEY. Mr. President. by re- better served by taking advantage of the in-
quest, I introduce, for appropriate ref- centives provided by the patent system:
(1) to encourage industry's participation
erence, a bill to establish a uniform in Government sponsored research and de-
national policy concerning rights to in- velopment; and
ventions under contracts with the U.S. (2) to achieve greater commercial explot-
t owned inventions and
Government. tation of Governmen
eat(s) was secured before or after the
This bill constitutes the redrafting of discoveries. invention became the property of the Gov-
b
h
entio
ere
S. 2601, which I introduced during the SEC. 3. The Patent Act of 1952 is
y and which is not sold as provided
last session of Congress. amended by adding to title 35 of the United ar ) section 7whi thereof within ovided
There is much concern in industry states Code, chapter 27, the following: months from the effective date of the pat-
circles, in Government offices and all "? 268. Licenses to the Government ent(s) issued for a Government-owned in-
over the country with regard to the title "(a) The property rights to be secured by vention or from the date the Government
to patents resulting from Government the Government through any agency thereof acquired title to the patent(s) for an inven-
contracts. The question is a very liii- with respect to inventions made in the per- tion that was patented when the invention
portant one. If the taxpayers are pay- formance of Government contracts (exclud- became the property of the Government,
ing for research-from which patents ing agreements between the Government and shall then be dedicated to the public as pro-
result-should they be entitled to keep its individual employees and consultants) vided by section 270(d) hereof.
patents? On the other hand, If the shall, except as provided in section 269 "(f) Any patent(s) covering inventions
the hereof, be a nonexclusive license to practice which are owned by the Government on the
industry contributes much of its know- such inventions. Such contracts shall not date this Act becomes effective and which are
how to the development of these patents, require that title to said inventions shall not sold as provided by section 270(a) hereof
should they be entitled to compensation vest in the Government. No such license to within twelve months after said date, shall
for their efforts? And finally, how do the Government shall convey any right to then be dedicated to the public as provided
we make certain that patents developed the Government to provide services or sup- by section 270(d) hereof.
in the course of Government-sponsored plies to the general public in competition "(g) Any person who desires a license un-
with the contractor or its licensees. der an invention and/or patent(s) purchased
contracts reach the American public? "(b) Unless separately negotiated no Ii- from the Government may file a petition
Is industry likely to develop products to o cease shall be acquired by the Government for such a license in a United States district
which they do not have patents and with respect to the contractor's inventions court and the court may declare the in-
where anybody could compete with which are at private expense- vention and/or patent(s) to be affected with
them? Which answer would better "(1) designed, engineered, tested, or used; the public Interest and grant the petitioner
serve the public interest? and a nonexclusive license on royalty terms and
patent incentives.
270. Sale of Inventions by the Government
"(a) The Government may sell outright
to the highest bidder Government-owned
inventions including any acquired under
section 269 hereof. When the Government
proposes to sell any such Invention, public
notice identifying the invention for sale
and specifying the terms of sale shall be
given, in the Federal Register and in the
Official Gazette of the United States Patent
Office at least ninety days prior to the date
set for the opei5ing of bids. An opportunity
shall be given to any interested person, firm,
or corporation, to submit a bid, such bid to
be sealed.
"(b) Any such sale shall be subject to
the right of the Government at all times to
make use of the invention for governmental
purposes only.
"(c) All proceeds from the sale of such
inventions shall be paid into the United
States Treasury for the general use of the
United States.
"(d) . Any unpatented invention which the
Government proposes to sell as provided in
section 270(a) hereof and which is not sold
within twelve months from the date of the
first public notice of the proposed sale, shall
then be dedicated to the public and notice
to that effect shall be published in the Fed-
eral Register and in the Official Gazette of
the United States Patent Office, such notice
to be published for four consecutive weeks.
Any patent(s) issued for a Government-
owned invention that has been dedicated as
provided by this subsection (d) shall be
deemed to have been dedicated to the public
on the date the patent Issued.
"(e) Any patent(s) covering a Govern-
ment-owned invention (whether the pat-
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1962 CONGRESSIONAL
Md., transmitting, pursuant to law, a report
of that Board, for the year 1961 (with an
accompanying report) ; to the Committee on
Armed Services.
FEDERAL-Ail, AIRPORT PROGRAM AND PROGRAM
FOR ESTABLISHMENT OF AIR NAVIGATION FA-
CILITIES
A letter from the Administrator, Federal
Aviation Agency, Washington, D.C., trans-
mitting, for the information of the Senate,
copies of the fiscal year 1962 Federal-aid
airport program, and the program for the
establishment of air navigation facilities
(with accompanying documents); to the
Committee on Commerce.
STATEMENT OF RECEIPTS AND EXPENDITURES OF
THE CHESAPEAKE & POTOMAC TELEPHONE
Co.
A letter from the vice president, the Ches-
apeake & Potomac Telephone Co., Washing-
ton, D.C., transmitting, pursuant to law, a
statement of receipts and expenditures of
that company, for the year 1961 (with an
accompanying report); to the Committee on
the District of Columbia.
AMENDMENT OF FEDERAL PROPERTY AND ADMIN-
ISTRATIVE SERVICES ACT OF 1949. RELATING TO
TITLE III
A letter from the Administrator, General
Services Administration, Washington, D.C.,
transmitting a draft of proposed legislation
to amend the Federal Property and Admin-
istrative Services Act of 1949, to make title
III thereof directly applicable to procure-
ment of property and nonpersonal services
by executive agencies, and for other pur-
poses (with an accompanying paper); to the
Committee on Government Operations.
-AUDIT REPORT ON ST. LAWRENCE SEAWAY
DEVELOPMENT CORPORATION
A letter from the Comptroller General of
the United States transmitting, pursuant o
law, a report on the audit of the St. Law-
rence Seaway Development Corporation, for
theperiod July 1, 1959, through December 31,
1960 (with an accompanying report); to the
Committee on Government Operations.
AUDIT REPORT ON FEDERAL NATIONAL
MORTGAGE ASSOCIATION
A letter from' the Comptroller General of
the United States transmitting, pursuant to
law, an audit report on the Federal National
Mortgage Association, Housing and Home
Finance Agency, fiscal year 1961 (with .an
accompanying report) ; to the Committee on
Government Operations.
REPORT ON REVIEW OF UTILIZATION OF CERTAIN
AIRCRAFT ENGINES AS A SOURCE FOR SPARE
PARTS
A letter from the Comptroller General of
the United States transmitting, pursuant to
law, a report on the review of the utilization
of excess 83350-26WA aircraft engines as a
source for spare parts by the Department of
the Navy, dated January 1962 (with an ac-
companying report); to the -Committee on
Government Operations.
REPORT ON PROCEEDINGS OF ANNUAL MEETING
OF JUDICIAL CONFERENCE OF THE UNITED
STATES
A letter from the Chief Justice, Supreme
Court of the United States, transmitting,
pursuant to law, a report of the proceedings
of the annual meeting of the Judicial Con-
ference of the United States, held at Wash-
ington, D.C., September 20-21, 1961 (with
an accompanying report) ; to the Committee
on the Judiciary.
FINANCIAL REPORT ON THE FOUNDATION OF THE
FEDERAL BAR ASSOCIATION
A letter from the secretary, the Founda-
tion of the Federal Bar Association, Wash-
ington, D.C., transmitting, pursuant to law,
a report on the audit of the financial trans-
actions of that association, for the fiscal
year ended September 30, 1961 (with an
885
lina and the surrounding area in i tat. It will
not only involve construction costs of 9p-
proximately $280 million and will create
needed jobs during both construction and
operation, but will annually add to the
economy an estimated 10 billion kilowatt-
hours' production, 3 V. -million-ton coal con-
sumption at a cost of $26 million, $21/% mil-
lion payroll, $7,450,000 State and local taxes,
and $9,200,000 Federal income taxes; and
Whereas the General Assembly of South
Carolina, in furtherance of its belief in the
importance of this proposed project to the
State of South Carolina, desires to urge the
Congress promptly to enact the necessary
enabling legislation authorizing the con-
struction of this dam: Now, therefore, be it
Resolved by the house of representatives
(the senate concurring), That the Congress
of the United States is hereby memorialized
to enact, as promptly as possible, S. 1795 or
H.R. 6789, now pending before the Congress,
or similar legislation authorizing Duke Power
Co. to construct across the Savannah River
a dam necessary for its proposed steam plant;
and be itfurther
Resolved, That a copy of this resolution be
forwarded to the following officers and
Members of the Senate and House of Rep-
resentatives of the Congress: the Vice Presi-
dent of the United States and President of
the Senate, the Speaker of the House of Rep-
resentatives, the chairmen of the Commit-
tees on Public Works of the Senate and the
House of Representatives, each Senator from
South Carolina, and each Member of the
House of Representatives from South Caro-
lina,
Attest: -I hereby certify that the fore-
go pg is a true and correct copy of a resolu-
tion adopted by the South Carolina House of
Representatives and concurred in by the
Senate.
accompanyinrt); to the Committee on
the Judiciary.
REPORT ON STATUS OF PUBLIC BUILDINGS
A letter from the Acting Administrator,
General Services Administration, Washing-
ton, D.C., transmitting, pursuant to law, a
report on the status of construction, altera-
tion, or acquisition of public buildings, dated
December 31, 1961 (with an accompanying
report); to the Committee on Public Works.
DISPOSITION OF EXECUTIVE PAPERS
A letter from the Acting Administrator,
General Services Administration, Washing-
ton, D.C., transmitting, pursuant to law, a
report of the Archivist of the United States
on a list of papers and documents on the
files of several departments and agencies of
the Government which are not needed in the
conduct of business and have no permanent
value or historical interest, and requesting
action looking to their disposition (with
accompanying papers) ; to a Joint Select
Committee on the Disposition of Papers in
the Executive Departments.
The VICE PRESIDENT appointed Mr.
JOHNSTON and Mr. CARLSON members of
the committee on the part of the Senate.
PETITIONS AND MEMORIALS
Petitions, etc., were laid before the
Senate, or presented, and referred as
indicated:
By the VICE PRESIDENT:
A resolution adopted by the Federal Com-
munications Commission, expressing the re-
spect and sorrow of the Commissioners on
the untimely death of the late senator
Andrew F. Schoeppel; ordered to lie on the
table.
INEZ WATSON,
Clerk of the House.
REPORT OF A COMMITTEE
The following report of a committee
was submitted:
By Mr. BURDICK, from the Committee on
Labor and Public Welfare, without amend-
ment:
S. Res. 273. Resolution to provide addi-
tional funds for the Subcommittee on Mi-
gratory Labor of the Committee on Labor
and Public Welfare; referred to the Com-
mittee on Rules and Administration.
BILLS AND JOINT RESOLUTION
INTRODUCED
Bills and a joint resolution were in-
troduced, read the first time, and, by
unanimous consent, the second time, and
referred as follows:
By Mr. DOUGLAS:
S. 2751. A bill for the relief of Susan Gu-
dera, Heinz Hugo Gudera, and Catherine Gu-
dera; to the Committee on the Judiciary.
By Mr.. BYRD of West Virginia (for
himself and Mr. RANDOLPH) :
S. 2752. A bill to authorize the Secretary
of Commerce, acting through the Coast and
Geodetic Survey, to assist the States of
Maryland, Pennsylvania, and West Virginia
to reestablish their common boundaries, and
for other purposes; to the Committee on the
Judiciary.
By Mr. FONG:
S. 2753. A bill for the relief of Duk Man
Lee and Mal Soon Lee; to the Committee on
the Judiciary.
By Mr. WILEY (by request) :
S.2754. A bill to establish a uniform na-
tional policy concerning rights to inventions
under contracts with the U.S. Government;
CONCURRENT RESOLUTION OF
SOUTH CAROLINA GENERAL AS-
SEMBLY
Mr. rHURMOND. Mr. President, on
behalf of my colleague, the senior Sena-
tor from South Carolina [Mr. JOHNSTON]
and myself, I present a concurrent reso-
lution of the General Assembly of South
Carolina memorializing the Congress of
the United States to enact as promptly
as possible S. 1795 or H.R. 6789, or simi-
lar legislation, authorizing Duke Power
Co. to construct a dam across the Savan-
nah River, and ask that it be printed
in the RECORn.and appropriately referred.
There being no objection, the concur-
rent resolution was referred to the Com-
mittee on Public Works, as follows:
CONCURRENT RESOLUTION MEMORIALIZING THE
CONGRESS OF THE UNITED STATES TO ENACT
AS PROMPTLY AS POSSIBLE S. 1795 OR H.R.
6789, OR SIMILAR LEGISLATION AUTHORIZING
DUKE POWI1R Co. To CONSTRUCT A DAM
ACROSSTHE SAVANNAH RIVER
Whereas Duke Power Co. has announced
plans for constructing a giant 2-miilion-
kilowatt steam-electric generating plant on
the Savannah River in Anderson County,
B.C.; and
Whereas, in order to form a pool for con-
denser cooling water for this plant, it is
necessary for Duke Power Co. to construct
a dam across the Savannah River; and
Whereas, before this dam can be con-
structed, congressional approval is required,
and bills for such approval, designated S.
1795 and H.R. 6789, were introduced on May
3, 1961, and are now pending in both bodies
of the-Congress; and
Whereas the proposed Duke Power Co. 2-
million-kilowatt generaitng plant would be
a great asset to the economy of South Caro-
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887
1962 CONGRESSIONAL RECORD -SENATE
condi~rion's teemed reasonable by the court,
if th2 court finds as a matter of fact that
the following conditions precedent exist-
"(1) the owner of such invention has not
diligently acted to commercially exploit the
invention; and
"(2) that a license to the petitioner will
result in such exploitation; and
"(3) the said petitioner cannot otherwise
obtain a license from said owner on reason-
able royalty terms for such exploitation; and
"(4) the Government policy of achieving
commercial exploitation of such inventions
will not be accomplished unless said peti-
tioner is granted the license."
SEC. 4. (a) The Space Act of 1958 is here-
by amended by repealing section 305.
'(b) The Atomic Energy Act of 1954 is
hereby amended by repealing section 152.
(c) All sections of Acts in conflict with
this Act are hereby repealed.
The analysis presented by Mr. WILEY
is as follows:
ANALYSIS or BILL To ESTABLISH A UNIFORM
NATIONAL POLICY CONCERNING RIGHTS TO
INVENTIONS UNDER CONTRACTS WITH THE
U.S. GOVERNMENT
The accompanying bill constitutes a re-
writing of S. 2601 having its principle pur-
pose to eliminate the section 270 providing
for "Licenses by the Government" of Govern-
ment-owned patents and to substitute
therefor a new section 270 providing for
"Sale of Inventions by the Government."
The present bill provides in section 270
for the sale of all Government-owned patents
to the highest bidder at terms set by the
Government, and subject at all times to the
reservation of a right in the Government to
make use of the invention for governmental
purposes. All bids are to be sealed and sub-
mitted upon appropriate notice in the Fed-
eral Register and the Official Gazette of the
U.S. Patent Office.
All proceeds from the sale of patents
are to be paid directly into the Treasury
for general use and not earmarked for
credit to the agency from which the sale
arises.
Sections 270 (d) (e) and (f) provide in
general that all Government-owned inven-
tions and patents are to be dedicated to the
public if they are not sold within a given
specified time. This recognizes the fact that
the Government should not at the same
time create a monopoly and enforce it
against the public. Consequently, if the
Government is to retain title to it the
patent in effect becomes a nullity and should
be dedicated.
Section 270(g) spells out conditions under
which any member of the public may obtain
a license from one who has purchased a
patent from the Government, thus making
sure that any commercially valuable inven-
tion thus sold by the Government will be
put to use and riot suppressed.
The new bill on a whole satisfies the needs
of the Government and the public with less
of an administrative problem and without
being
nment a
enc
G
f
g
y
over
any
the danger o
put in the position of creating a monopoly several interested groups, individuals ditch." The leading corporations are
and then negotiating a return for it. and the Department of Agriculture. On strong on research.
The system of selling property by means the basis of these conferences I have Mr. President, we must do for research
of sealed bids is well known to the Govern- drafted a new bill covering the same in agriculture what industry does for its
ment and is employed every day by various subject, which I have sent to the desk research. We cannot, in national self-
and Governmshouldent produce agencies. the It is best-price eminently to fair the for introduction. The name of the Sen- interest, afford to do less. Every dollar
Government without the dangers of negotia- ator from Minnesota [Mr. HUMPEREY] invested in agricultural research will
tion. also appears on the bill. come back manyfold, and the beneficial
The bill has the added advantage that those This bill incorporates most of the effects will pour into all segments of the
inventions that may have commercial value declarations and findings contained in economy.
will receive the normal patent incentives S. 173 and S. 174 which were intro- Judging by commercial standards, the
toward initiating, commercial use of them duced in the first session of this Con- ratio of expenditures for research to the
thus permitting our patent system to eon- gress last year. This matter of agri- total dollar value of the Nation's agri-
research i n benefit whiof the ch the Gov- public cultural research with particular em- cultural products is relatively small.
in t th hnose tofields work work of for the
ernment is itself interested. phasis on finding new industrial uses of More, much more, needs to be done.
The bill has the same objectives as those agricultural products is tremendously The bill I am introducing contains cer-
given for S. 2601 and has been drafted to important. I would like to reassure tain authority that is not now avail-
overcome certain objections raised by in- Members of Congress and other citizens
dustry and attorneys to the Idea that the interested in agricultural research that
Government should ever create a monopoly this legislation carries no purpose or in-
and then negotiate with members of the tent of diminishing the importance of
public to grant licenses for a price. This the other agricultural research pro-
petition Government research directly in com-
petition with private industrial research and grams already in progress. Certainly,
also encourages possible disregard of the we do not wish to undertake this pro-
principles of patentability of invention in gram if it would cause any reduction in
the granting of patents for which the Govern- research programs now underway, gar-
ment may receive a negotiated royalty in- ticularly those eradicating plant disease
come. Furthermore, under S. 2601 the ad- and insects.
ministrative problems of negotiating royalty All real friends of the farmer are going
producing licenses were not taken care of.
A minor change is a restatement of section to concentrate on ways of helping him,
269(c) to more clearly specify the principle rather than on dissipating their energies
intended to apply in cases where the Govern- on details of how we help him. Aid for
ment may desire to take title. agriculture is the main point; if we en-
'Mr'JOHNSTON. Mr. President, I in- joy the luxury of differing as to method
troduce, for appropriate reference, a bill we must not hinder progress toward as-
1 i ult 1 indus-
c ura
t
providing for increased uses of agricul-
tural products and for creation of new
industrial uses of agricultural products
and to promote new crops.
For several years the Congress has
received bills attempting to implement
the findings and the purposes of the
study by the President's bipartisan Com-
mission on Increased Industrial Use of
Agricultural Products.
In 1958 several Senators, including my-
self, introduced proposed legislation on
this subject. The Senate Agriculture
and Forestry Committee took the various
bills introduced and combined the better
qualities of each into a committee bill.
This committee bill passed the Senate
practically without dissent. The House
failed to act.
Again in the 86th Congress I intro-
duced this bill and I was supported by
several Senators. The Senate Agri-
culture and Forestry Committee reported
the bill unanimously, and in 1960 the
Senate passed the bill with only one or
two dissenters despite opposition from
former Secretary of Agriculture Benson.
In the House of Representatives Mr.
Benson was more successful, and the
House substituted its version for the
Senate bill. I realize there must be
compromise in legislation, but in this
situation there was no compromise.
Therefore, we did not meet in agreement
in conference and the proposed legisla-
tion died with the end of Congress.
Last year I introduced S. 173 for my-
self and several other Senators provid-
ing basically for the same legislation
we had passed in the Senate in the 86th
Congress. This bill is now pending in
one of the Senate agriculture and fores-
try subcommittees and we have taken
no action upon it. Since introducing
S. 173, I have been in conference with
lona agr
.slstmg our na
try. I am sure that all of us are in
agreement on this basic idea: our Na-
tion's farmers are the backbone of the
national economy; and in helping them,
we help ourselves. I may feel that my
ways of rendering assistance are better
than the next fellow's; but this is not
going to deter me one whit from giving
my wholehearted support to a compro-
mise program that carries with it the
hope of bettering agriculture.
Research is the key that unlocks many
doors. When we view the surpluses of
agricultural products, we realize the
urgent need for wider and more inten-
sive research for new uses for those prod-
ucts and for new products that will yield
paying crops.
Research is a multiplier that increases
multiple uses on basic products. I never
cease to wonder at the work of George
Washington Carver, whose genius was
able to develop more than 100 byprod-
ucts from the humble peanut. Who
knows what untapped secrets nature has
stored up in other everyday products?
Yes, research is a creative force, gen-
erating progress, sparking productivity,
promoting comfort, adding to total liv-
ing. Research creates wealth through
inventiveness, and ministers to man's
welfare.
Behind any successful manufacturing
company we find a substantial research
program. The more successful the com-
pany, the more funds are'being poured
back into the business, through the me-
dium of research. Fiscal analysts tell
us one of the best ways to determine the
future prospects of any given company
is to read its financial statement and
learn what part of its earnings is being
plowed back in the form of research.
Companies that fail to provide adequate
research programs soon wind up "in the
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CONGRESSIONAL RECORD -SENATE January 29
able to the Department of Agriculture,
but which I believe is necessary if agri-
cultural research is to produce the ex-
pected results. This includes author-
ity for research grants, student fellow-
ships, scholarships, and similar aids to
strengthen graduate training.
There is widespread recognition that
a prosperous agricultural industry is one
of the basic necessities of a strong
America. Farmers are one of the most
important consumer groups in America.
For our Nation to be prosperous, the
farmer has to be in a position to buy the
products of industry. It is true that the
number of farmers in America has de-
creased in recent years, but statistics
show that purchases by farmers for pro-
duction and consumption have in-
creased. %
The. President's bipartisan commission
on increased industrial use of agricul-
tural products stresses the economic
Importance of the farmer in the follow-
ing words:
Two-fifths of the Nation's total economic
activity arises from agriculture and related
business functions.
Mr. President, the broad objectives of
the measure we are now considering
were outlined in the report of the afore-
mentioned commission. After a thor-
ough study and survey of the agricul-
tural industry, the commission made
major, recommendations looking toward
comprehensive research to bring about
the greatest possible industrial uses of
agricultural products.
In its report, the commission said:
In the past 25 yeatsagriculture often has
been researched right out of its natural do-
main. Industry will continue to explore the
unknown in search for new products and
new uses for old products. Nothing is
plainer in the economic pattern of today
than that agriculture must compete in
areas of basic and applied scientific re-
search. Agriculture should be enabled to
compete as an equal, in the contest for con-
sumer acceptance. It is now losing by
default.
The Commission was created in ac-
cordance with section 209 of Public Law
540, 84th Congress. It filed an interim
report on April 17, 1956, and its final
report on June 15, 1957.
Altogether, the Commission made
eight pertinent recommendations, and
also obtained suggestions through cor-
respondence with experiment station di-
rectors and more than 350 industrial
executives. The work of the Commission
was well planned and comprehensive.
In its report, the Commission stated
it found it-necessary to obtain quickly:
1. An adequate assessment of the current
state of industrial utilization research.
2. A sound appraisal of its possibilities.
3. Adequate, understanding of the obstacles
to further development.
To this end, the Commission set up
task groups or special committees in the
following areas:
Corn wet-milling, cotton, crop resi-
dues, industrial alcohol from grain, in-
dustrial uses for grain other than alco-
hol, dairy products, forage crops, forest
products, fruits and vegetables, hides,
skins, and animal byproducts, new and
.special crops, oilseeds and animal fats,
poultry products, rice, sugar, tobacco,
white potato products, wool, and mohair.
Not the least important of the Com-
mission's conclusions of its studies was
the last, which reads:
The dynamic forces which created Ameri-
can industrial development must be moti-
vated in the farm economy.
Mr. President, it is noteworthy that
the Commission's first recommendation
called for a substantial increase in re-
search funds, and did so in the following
language:
The Commission proposes at its first and
most necessary recommendation that the
funds for industrial uses research be in-
creased to not less than three times the
amounts ($16,145,000) currently available;
and that additional sums be provided, as
herein suggested, for new crop research, trial
commercialization, development, and in-
centives.
Immediately following this, the Com-
mission recommended that the facilities
of the Department of Agriculture be fully
utilized in furthering the research pro-
gram, as well as land-grant colleges, ex-
periment stations, universities and col-
leges, private research organizations, and
foreign institutions. There followed a
recommendation for research grants and
fellowships, scholarships, and similar
aids that, while furthering research proj-
ects, would also increase the supply of
trained scientists.
Special emphasis was put by the Com-
mission on the new crop projects with
the purpose of creating durable, addi-
tional markets, and for rapid disposal,
through industrial channels of accumu-
lated surpluses.
The Commission found that the cur-
rent industrial outlets for the products
of the total farm acreage, estimated to
be less than 7 percent, are udeniably
small.
One of the most encouraging leads to
be developed by the Commission was the
prospect of a major crop for the South-
bamboo. This product has shown great
potential in the paper field, as well as
in furniture and plastics. I am pleased
to report that preliminary experimenta-
tion and work with this crop have already
been started in South Carolina and
Georgia by private firms, and through
the Clemson College Edisto experiment
station, near Blackville, S.C.
A whole regional economy can be up-
lifted and transformed through the de-
velopment of some such good, new pay
crop. We all know what has been ac-
complished with the soybean-the com-
mercial markets it commands, the jobs
it has created, the payrolls it accounts
for. Who knows how many such undis-
covered commercial products await in
the darkness that can be pierced only by
the searchlight of research. Is it any
wonder that we approach this research
program with enthusiasm and great ex-
pectations-holding as it does, vast vis-
tas of opportunities?
In my opinion, no proposed legislation
that has come before the Senate in re-
cent years is more important from the
farmers` standpoint.
We must enact this bill in order to step
up our research. The Congress has ap-
propriated billions of dollars':ar foreign
aid; much of it has gone for rese'ar.i in
foreign countries. It is inconceivable to
me that this opportunity to help our own
people and our own economy would not
be availed of.
I hope this agriculture research bill
will pass Congress this session. There is
tremendous need for agriculture re-
search. Such research can help our
farmers and industries find new sources
of income and production.
Mr. President, I ask that the bill lie on
the desk for 1 week, in order that Sen-
ators who may wish to consponsor it
with me may have an opportunity to do
so. I have received several requests re-
garding cosponsorship.
The PRESIDING OFFICER. Without
objection, the bill will be received and ap-
propriately referred, and, without objec-
tion, the bill will lie on the desk, as re-
quested by the Senator from South
Carolina.
The bill (S. 2759) to provide for further
research relating to new and improved
uses for farm and forest products and
for development of new crops, and for
other purposes, introduced my Mr.
JOHNSTON (for himself and Mr.HUMPH-
REY) , was received, read twice by its title,
and referred to the Committee on Agri-
culture and Forestry.
Mr. JOHNSTON. Mr. President, I
ask unanimous consent that an explana-
tion of the bill be printed at this point
in my remarks.
There being no objection, the explana-
tion was ordered to be printed in the
RECORD, as follows:
EXPLANATION OF BILL PROVIDING FOR RESEARCH
ON INDUSTRIAL USE OF AGRICULTURAL PROD-
UCTS
Section 1 incorporates most of the declara-
tions and findings contained in S. 174, intro-
duced in the 87th Congress, 1st session.
Section 2 authorized the Secretary of Agri-
culture, independently or in cooperation
with public and private organizations and
individuals, to conduct research to expand
markets and uses for farm products and to
develop new crops.
Section 3 provides authority, which the
Department does not now have or the use of
Which is restricted, to make grants to re-
search institutions and individuals, provide
graduate fellowships, to enter into contracts
or cooperative arrangements, and to grant
exclusive licenses, subject to the limitations
prescribed in the bill.
Section 4 authorizes establishment of not
to exceed 100 positions for scientific or pro-
fessional personnel, at rates not in excess of
those established for Public Law 313 posi-
tions.
Section 5 comprehensively defines "agri-
cultural products" and "farm and forest
products" as used in the bill, to be the same
as in the Agricultural Marketing Act of 1946
(7 U.S.C. 1626).
Section 6 provides an appropriation au-
thorization and for the use of foreign cur-
rencies available to the Secretary under Pub-
lic Law 480.
Section 7 specifically states that the au-
thorities contained in the bill are in addi-
tion to other authorities.
DESIGNATION OF WEEK OF MAY 6,
1962, AS "INTERNATIONAL CAST-
INGS WEEK"
Mr. DIRKSEN. Mr. President, I intro-
duce, for appropriate reference, a joint
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 ApprovedoNp,Agkg8LyfCgpg64Qg6R00020018000'&cary 29
r v-
areturn flight, Boston to Washington. I Article I, section 8, provides that the his fellow men. By the monopoly that goes
with a patent, then, the Government recom-
the wer to pro-
might add that no prior notification was n oterthe progress of science and useful penses and, for a limited time, protects the
given on that occasion either. inventor or discoverer who gives to the world
My bill will not only provide a deter- arts, by securing for limited times to the use and benefit of his invention or dis-
use a?thn, c and inventors the exclusive right covery. This is a kind and a degree of mu-
th
e
of
public by these airlines. W i e some
country awaits this higher standard, the by President George Washington on awards monopoly to the producer of
some- April 10 1790. The original law pro- thing original, something superadded to the
ines, but should make for higher stand- coveries. s
the ing the First Congress and was pproved vidual or sa ogroup complete gave dominion dof
aids of responsibility to the American
thin already existent. A patent
air passenger should not be the de ens
Sys/j less victim of the present "no go" pol- vided as a primary condition of a patent common store. So it is that two things
f the airline management. grant that the applicant should have bearing the same name need not be of the
ame nature
seful art
s
o
ides .
invented or discovered a u
, manufacture, engine, machine or device, The Congress in 1935 created a Ses-
HE UNIQUE CONTRIBUTION OF or any improvement therein, not before quicentennial Commission to commem-
THE PATENT SYSTEM TO AMER- known or used." The law also required orate the 150th anniversary of the for-
ICAN CIVILIZATION that the inventor submit a detailed spec- mation, ratification, and establishment
The SPEAKER. Under the previous ification of his invention. This condi- of the Constitution. A former distin-
order of the House the gentleman from tion was imposed "to the end that the guished Member of this body, the Hon-
Indiana [Mr. ROUDEBUSHI is recognized after the expiration of the patent term." orable Sol Bloom, a Representative from
for 15 minutes. the State of New York, was appointed
Mr. ROUDEBUSH. Mr. Speaker, it Another provision of the law was that Director General. The Commission pre-
has been my privilege as a member of the invention should be deemed by the pared an authoritative review of the his-
the Committee on Science and Astro- administrators of the law sufficiently tory of the formation of our Federal
nautics to have witnessed some of the useful and important." The adminis- Union. In referring to the powers
important developments of American re- trators were the the Attorney General. Al- granted to the Congress by the Consti-
search. of War and t tution, it states that, and I quote:
The American Colonies established though the Secretary of State, Thomas Under its power to confer upon authors
their own patent system long before the Jefferson, was concerned with the com- and inventors "the exclusive Right to their
advent of the American Revolution. It plex problems of establishing the foreign respective Writings and Discoveries" Con-
appears that the first patent issued in relations of our new Republic, he never- gress has powerfully stimulated the inven-
America was granted in 1646 by the Com- theless personally devoted a considerable tive faculties of the American people.
monwealth of Massachusetts to Joseph portion of his time to the detailed work It is significant that America's lead-
Jenks for improved sawmills and scythes. of examining patent applications. ers have attributed so much of our Ares-
In 1652, a patent was granted in Vir- Thomas Jefferson was himself a dis- ent industrial strength to the American
ginia to George Fletcher for a process tinguished inventor. He detested mo- patent system, which in many ways is
of distilling and brewing with wooden nopoly grants of a perpetual nature that unique among the industrial nations of
vessels. This would appear to be one of tended to vest rights, and privileges in a the world. Mr. Speaker, I shall quote
the earliest chemical process patents. few of our citizens at the expense of all statements by American Presidents quote
Probably the origin of the constitu- others. However, he was a firm sup- both political parties whose judgment
tional provision with respect to patents porter of the patent system because it has been vindicated parties the achievements
stems from South Carolina which af- granted to authors and inventors the ex- of our people.
forded general protection to inventions clusive rights to their own efforts for other
by an act for the encouragement of the only a limited period. He supported the Most side of of the my aisle subscribe to on the the a t otcr
He
arts and sciencies. The language there- patent system because it provided an in- doctrines of Thomas poli
in contained it provision that inventors centive for discoveries which would later dais:
of useful machines should have the ex- become a part of the public domain. s
The issue of patents for new discoveries
elusive privilege of making and vending Mr. Speaker, a statement by a former has given a spring to invention beyond my
their devices for 14 years. Commissioner of Patents, Conway P. conception.
The American patent system was de- Coe, is relevant, and I include it in my first Republican President, Abx a-
veloped in parallel to that of Great Brit- remarks at this point: Thhame a frstn, said:
ain, whose Parliament in 1654 enacted Americans generally detest monopoly in
legislation endowing inventors with the the true sense of the term because it makes The patent system added the fuel of in-
ow-. I?_ terest to the fire of genius.
a ...
f
p
o
possible
l
u~_~-- -
of 14 years. Its fruitfulness had been deed, the America.. Revo
demonstrated by the work of Newcomen tated by popular resentment of the monop-
and Watt in the perfection of the steam oly on tea by the been exceedingly o.
engine which played a major role in es- It would therefore have if, only a few years been , ca detablishing Great Britain's industrial strange gates sent to the Constitutional Convention
supremacy. by Massachusetts and the other Colonies
It is extremely doubtful whether our should have been willing to sanction an
present programs in many fields of equivalent form of monopoly under the new
science and technology would have been government they were creating. In the 16th
possible if our forefathers had not pro- and 17th centuries a king or queen of Eng-
vided for the establishment of a patent land could reward a favorite by granting
system in the Constitution itself. him a monopoly on salt or some other ne-
cessity of life. This beneficiary of royal
As we look back on the formative years favor was not, of course, the discoverer of
of the American Republic, each of us salt. That came ready made from the hand
must be impressed by the fact that the of the Creator eons before the advent of
American colonists, far removed from the man. What the darling of Hit or Her Maj-
cultural centers of Europe, were dedi- esty received was the power to compel others
cated to the ideals of liberty and per- to use salt solely of his supplying and only
sonal freedom. What is perhaps even on terms of his dictation.
more remarkable is that most of their But a patent is no such monopoly. It is
leaders were very young-many of them a reward for the invention or discovery of
in their early twenties. something new, something before unknown,
something added to the sum total of human
The Constitution of the United States knowledge, utility, well-being and which
came into effect with its ratification by the inventor or discoverer, despising the lure
North Carolina on November 21, 1789. of money or fame, might have withheld from
dent whose memory is greatly revered,
Franklin Delano Roosevelt, said:
The American patent system has promoted
countless applications of the arts and sci-
ences to the needs and well-being of our
people.
The most recent Republican Presi-
dent, Dwight D. Eisenhower, said:
Soundly based on the principle of protect-
ing and rewarding inventors, this system
has for years encouraged the imaginative to
dream and to experiment--in garages and
sheds, in great universities and corporate
laboratories. From such explorations on
the frontiers of knowledge has welled a flood
of innovations and discoveries which have
created new industries and reactivated old,
giving more and more Americans better jobs
and adding greatly to the prosperity and
well-being of all.
Mr. Speaker, while the Congress was
in adjournment, the Nation celebrated
American Patent System Week, which
started October 15,1961. President Ken-
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 If the Salazar Government is in truth a
dictatorship, it is not a heavy-handed one.
060D GOVERNMENT NOTED
A Portuguese official quoted to me the fol-
lowing from an editorial in the January 2,
1962, London Daily Telegraph and Morning
Post, not notably a pro-Salazar newspaper:
"Between 1910, when the monarchy fell, and
1926, when Dr. Salazar first took office as
minister of finance, Portugal knew 8
presidents, the most promising of whom was
assassinated, and 44 ministries. Econom-
ically, the country had been, if possible, in
an even worse position than it was politically
ever since the civil wars of the early 19th
century.
"No one will pretend that the present
regime in Portugal is in any British sense
democratic. It has, however, produced good
government and economic stability. * * *
Dr. Salazar has sought nothing for himself
personally. He is alleged, by such foreign
critics as oppose his government on princi-
ple, to have treated his political enemies
with harsh injustice. It is safer to suggest
that the Portuguese dictatorship has a bet-
ter record in the matter of political im-
prisonment than any parallel regime,
whether of the right or of the left, in the
modern world."
DETERMINATION VOICED
The Salazer government is determined to
retain Angola and Mozambique to the end
of time, in the words of a Government min-
ister, "even if it means suicide."
Any other course, it believes, will result
in a Communist takeover, placing mid-
Europe in the grip of a Red pincers-with
Russia and East Germany on the east and
a Communist-dominated Iberian Peninsula
on the west.
Should this happen, the Azores bases will
be lost to the United States without a
negotiation.
Why, then Portugal asks, through its
ministers, does the United States pursue a
policy that weakens the strongest anti-
Communist nations in Europe-Portugal
and Spain.
Why does the Kennedy administration
put the interests of African tribesmen above
theinterests of America's old ally, Portugal?
Why did it permit Nehru to seize Portu-
gal's ancient Province, Goa, 463 years a
member of the Portuguese union, without an
effective protest?
Why has it driven Lisbon to the point that
Portugal now refuses to shed the blood of
one Portuguese soldier if Russia forces
NATO into a war over Berlin?
These are the questions the Salazar gov-
ernment asked me.
[From the Standard-Times, Jan. 25, 1962]
PRESIDENT Is HOPEFUL. ON AZORES BASES
(By Donald R. Larrabee)
WASHINGTON, January 25.-President Ken-
nedy has voiced strong hope that the Portu-
guese Government will continue to allow the
United States to use its huge air base on the
strategically located Azores Islands when the
current lease agreement expires at the end
of this year. Importance of the base to this
country and the North Atlantic Treaty Or-
ganization was underscored by the President
at his news conference yesterday in response
to a question by the Washington Bureau of
the New Bedford (Mass.) Standard-Times.
The question was prompted by remarks
made by high Portuguese officials to the edi-
tor of the Standard-Times, Charles J. Lewin.
During a recent visit to Lisbon, Lewin said
in an exclusive story distributed nationally
on Tuesday by the Associated Press and
United Press International, these officials
told him the United States will have hard
going when negotiations get under way soon
for renewal of the lease. They said rela-
tions had been dangerously strained by U.S.
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IO
S
N
-89
votes in the United Nations condemning quires the Civil Aeronautics Board to
tories. tugal's policies toward its oversea ter- issue regulations by which the aggrieved
Por
In the light of these reports, the Presi- traveler collects an assessment of $5 or
dent was asked if he expects the Govern- 50 percent of the fare, whichever is
ment to have any difficulty negotiating re- more, whenever a domestic flight is can-
newal of the Azores lease. In reply, the celed or unduly delayed due to reasons
Chief Executive left no doubt that the-mid- other than the weather or inability to
dle-Atlantic base is vital to the security of meet Federal safety standards. I have
the free world. introduced this bill to counterbalance a
"I think the Azores base is very important recent Civil Aeronautics Board ruling-
to us and to NATO and the negotiations will Order No. E-17914-which permits the
take place this year. We're hopeful that they airlines to assess "no show" will continue to permit us to use this base passengers
upon which 75 to 80 percent of our military in a similar ratio as my "no go" bill
air traffic to Europe depends. So that in would assess the airlines.
these rather critical times, that base is ex- If passengers are required to pay as-
tremely important to us. sessments to the airlines for not meeting
"I am hopeful," the President added, "that their flight reservation commitments, it
it will be possible for us to reach an agree- is only fairplay that the airlines pay an
ment with the Portuguese for our continued
use of it, but that's a matter to be negotiated assessment to the passenger when they
between the countries." fail to live up to their part of the ticket
The United States has been using the agreement. Almost everyone who has
Azores base since World War II and has had traveled by air has been adversely af-
a firm leasing arrangement since 1951. This fected as a direct result of the poor on-
was renewed in 1957 for a period ending in time performance of air carriers. This
December 1962. legislation is designed to protect the
State Department officials said no date traveling public against these unneces-
has been fixed for negotiations. sary cancellations and delays which
In recent months, the United States has
been voting in the United Nations for reso- often result in their discomfort and ex-
lutions calling on Portugal to adopt changes pense.
in policy and practices toward its oversea The ontime record of our major air-
territories. lines in 1960 was so poor that one had
At the moment the U.N. has before it an less than a 60-40 chance that his flight
Afro-Asian resolution calling on Portugal to would leave either on time or within 15
recognize the right of the people of Angola to minutes of schedule. I am sure that the
self-determination. In his published ac-
count, Editor Lewin said a Portuguese official
American traveling public would rather
Harbor was to the United States-it had
united the people of Portugal behind the gov-
ernment of Premier Salazar. He reported
that Portuguese officials said the Government
was determined to hold Angola, an the west
coast of Africa, and Mozambique, on the
east coast, to the- end of time, even if it
meant suicide.
THE QUESTION AND THE ANSWER
Question. Mr. President, assuming the
American airbases in the Portuguese Azores
are vital to our security, could you explain
to us whether you expect the Government
will have any difficulty negotiating leases-
renewed leases-on those bases this year,
especially in light of reports from Lisbon of
our strained relations with Portugal?
Answer. I think the Azores base is very
important to us and to NATO and the ne-
gotiations will take place this year. We're
hopeful that they will continue to permit us
to use this base upon which 75 to 80 percent
of our military air traffic to Europe depends.
So that, in these rather critical times in
Europe, that base is extremely important to
us.
I'm hopeful that it will be possible for
us to reach an agreement with the Portu-
guese for continued use of it, but that's a
matter which will be negotiated between the
countries.
forgo the so-called benefits in travel frills
or faster speed records in return for
greater certainty as to ontime perform-
ance.
Most of the cancellations and long de-
lays are due to factors which are under
the direct control of the airlines and
which could be corrected by proper plan-
ning. A substantial amount of this poor
ontime performance may be ascribed to
carelessness and laxity ; lack of adequate
standby facilities, the overtaxing of air-
plane equipment, the overscheduling of
certain aircraft, and the poor routing of
traffic at peak hours. The condition can
be-and should be-remedied, Delays
will continue to occur when airport and
airplane capabilities are exceeded.
The issue of demanding better ontime
performance should not be confused with
a CAB ruling requiring airlines to sub-
mit monthly arrival performance re-
ports. This ruling-part 234 of the Eco-
nomic Regulations-Flight Schedules of
Certified Carriers, Realistic Scheduling
Required-was made in an effort to de-
ter erroneous scheduling tactics and mis-
leading public releases of time perform- -
ances. These statistics do not provide
any direct information on the problems
of ontime scheduling; these r
t
epor
s do
ASSESSMENTS FOR UNWARRANTED not include cancellations of flights but
FLIGHT CANCELLATIONS merely detail "block to block" time.
(Mr. Masked and was Under the present laws there are very
few reliable statistics relating to overall
given permission MACDONALD address the House
for 1 minute, and to revise and extend ontime performance. These statistics
his remarks.) should be required to be submitted to the
Mr. MACDONALD. Mr. Speaker, I CAB.
sure that the traveling public
should like to call your attention, and could document the significant amount
the attention of my colleagues in the of cancellations and delays. Last week
House, to a bill which I introduced today, a flight from Washington to Boston, for
permitting passengers to collect an as- which I had purchased a ticket, was can-
sessment from airline companies in case celed with no prior notification by the
of unwarranted flight cancellations and airline. To prove that this was no fluke,
undue delay to airlines. This bill re- a different airline did the same thing on
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 Approved For
CONGRESSIOI~t~ Reef~fst ~cRL) - ~~,,pp~ RDfib03468000200180001-4891
t ,7'J
ne IV - at makes the United States such better in proclaiming this 'fitting tom- is it th
nation? and we investigated and been without results.n The This brought
t the
memoration of the American patent Sys- a giea industry tern said: found that it was patents, and we will bame negahave
t eatmentUeThe word of
Whereas in the year 1961 there will be have patents.
granted the 3 millionth patent since en- Although most Americans associate Congress has failed to impress either
actment of the Patent Act; and Mark Twain, with his literary accom- the Commission majority or the State
Whereas the grant of a patent is a tradi- plishments, it should be noted that he, Department.
tional incentive for the promotion of the too, was an inventor and had applied for When these results are read in the
useful arts and thereby contributes notably and received three patents. I am sure light of the constitutional authority of
to the well-being of people everywhere; and that many of my colleagues have read Congress to regulate our foreign com-
whereas encourcontinutd of invention his work entitled "A Connecticut Yankee merce and to make the tariff, they take
olo co the come economic and
essential
teN w, the therefore, f, John F. Kennedy, Presi- you that his character, "Sir Boss" who g ess bytthe executive branch. of Con
of elim -
eople
some
esc ape pcl usetalalt gether. nating This
dent of the United states of America, do mhad "Merlin
try w thoutianpat- theNow
hereby designate the week of October 15,
1961, as the American Patent System Week; ent office and good patent laws is just would represent an ignominious retreat.
and
and I invite the people during that week to a crab and cannot travel anyway but The exact opposite is needed. I am
ys." pleased to note that the President has
commemorate the American patent system sideways and cannot
which, t to inventors as protection aged and en and u a- Mr. Speaker, our country must always recommended the retention of the
a cruet by the Constitution, ncontributes - travel forward, nd greatly to the encouragement of inventive have seen supports the cothe ntinuation of clause that will do what the clause was
genius. sound patent policies. The contribution intended to do in the first place, namely,
President Kennedy's statement repre- of our patent system to America's ac- provide a remedy against overzealous
sented the sense of the Congress and par- knowledged leadership as an industrial and foolhardy tariff-cutting by the bu-
ticularly of our own Committee on the nation is of such importance that I in- reaucrats. I intend to urge the Ways
tend from time to time to discuss with and Means Committee to retain the
Judiciary. my colleagues on the floor of the House escape clause idea in any new legislation
of thast 8mhe tee-, the le chair- other aspects of this important consti- written in the field of international
mom New that committee, the gentleman tutional provision. I believe it has play- trade.
House oYork No. [Mr. 871 CELLERI, which authorized submitted ed a vital role both in times of peace Mr. Speaker, an enlightening article
HuReport Nof the which Americ authori pate and times of war in advancing the wel- on this subject has come to my hands
the celebration of an nt
system. This report included the foe-fare of the American people. and I hope that all Members will read it.
It was prepared by Mr. O. R. Strack-
lowing pertinent statements, and I bein, who has had close contact with the
quote: WRECKAGE OF THE ESCAPE CLAUSE escape clause since its enactment. As
July 4, 1961, marked the 125th anniversary The SPEAKER. Under the previous chairman of the Nation-Wide Commit-
grantingng order of the House, the gentleman from tee on Import-Export Policy, Mr.
present nd Patent Act ion 18s6, system which for created
examination
patents and which established the V.S. Pat- West Virginia [Mr. BAILEY] is recog- Strackbein has been able to observe the
ministration of the clause at first
with Office as a scone of and distinct bureau nized
(Mr. BAILEY IIasked and was given hand,
with a Commissioner atents its head.
patent permission to revise and extend his re- Under leave to extend my remarks in
be he 3 granted millionth patent _ the RECORD, I Offer the article above
u; is nder this ac ehic act that will the
uted in in Septem- marks.)
legislation THE ESCAPE CLAUSE: WHAT Is WRONG WITH
her 1961. referred to: The patent grant has been a traditional in- Mr. proach the BAILEY. trade Mr. agreements Speaker, as we ap-
in the present session, great interest will IT? WHAT SHOULD BE DONE ABOUT IT?
chairman, the
of the centive foUnited and the r the promotion of the useful arts B 0. R. Strackbein, chairman, tNation-
escape clause and its ( Y
function benefiting the welfare of the people
function of the Statespatent :grant has world. administration, wide Committee on Import-Export Policy)
added significance in view of the present day This clause, as Members will recall, The escape clause of the Trade Agreements
was adopted as an amendment to the Act suffers from two ruinous defects that
of the necessity ining technological have prevented it from accomplishing its
lead and i incrreasi easingg the rate of f economic nm Trade Agreements Act in 1951. Ihadthe purpose.
growth of this Nation. honor of presenting the amendment to The principal cause of the breakdown of
Mr. Speaker, the American patent sys- this body. It was adopted by a one- the clause is centered in the White House.
The President's unlimited discretion in over-
tern has provided establish the nspiration for sided vote.
other countries to esttheir own I am sorry to say that the administra- riding Tariff Commission recommendations
procedures to encourage scientists, in- iron of the escape clause under past ad- has resulted in a turndown ndoww n of of evtwoery Co ommm s-
out
every three.
is to
ventors and others who possess creative ministrations has been not only ex- Sion second recommendations sthe of
talents. Switzerland is one country tremely disappointing but has provided The be found source the Taof a brew dow i
iseto In Comm whose citizens have contributed to sci- us with a measure of the attitude of the About 60 percent of the cases that have been
entific progress. It has served as a executive branch, or more specifically, processed by the Commission have resulted
citadel of freedom in ever-, recent world the State Department, toward congres- in a negative finding.
conflict. The record shows that its pat- sional action. The law has been all but- Between these two millstones, the interest
ent system was first established in 1888. nullified in the process of administra- of domestic producers, including industry,
been to
ag the ground
The legislation was inspired by- a visit to tion. Tariff Commission has been re- agrriicese. lt reThe , and
composite
percent been
cases.
this country by a Swiss shoe manufac- luctant to hold hearings for proof of rejection of nearly-90
cases since 19 a the Tariff Commis cases.
who was also a commissioner to o injury arising from increased import rSejion has recommended relief in only 40 cases.
the Philadelphia Centennial Exhibition competition attributable to tariff cuts, and acted fa-
in 1886. He was so impressed with the and the White House, in turn, has re- The on only House 13. rejected 23 cases are still at
American patent system that on return- jected well over half, In fact, two-thirds vorably e White
ing home, he told his countrymen, "We of Tariff Commission recommendations, the White House awaiting a decision.
must introduce the patent system. when the Commission did find serious The failure he Tariff Commission the
law bestows foua found in the broad discretion that has
America has shown us how. May our injury to exist, also
has
sister Republic serve as our model in Altogether the chances of an industry permitted the It. his play ay o of political discretion philosophy,
this." is also of some interest that obtain relief under the clause
bers aversions of Commission me to play too great a role in their inter-
are pone of the first examiners in the Swiss overwhelmingly in the negative,-that is, sympathies he mem-
patent office was Albert Einstein. about 10 to 1. A congressional law that pretation of the criteria of injury.
In 1900, a Japanese commissioner gets only 10 percent effectiveness in its Since members of the Commission are ap-
visited this country and upon his return administration is very close to being a pointed by the President, subject to Senate
he reported, "We have looked about us dead letter. confirmation, this latitude of Commission
see what nations are are the e greatest, s so that at Yet Congress has on several occasions discretion permits an unjustified degree of
we can be like them." We said, "What amended the escape clause to assure Presidential influence in a field that belongs
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SIONAL RECORD,- HOUSE. Jana, ry 29
exclusively to Congress under the Constitu- precisely the interpretation under which the osophy for the law; and does so i
n mite
tion, Each of two Commissioners reaching escape clause has been administered, disregard of the solemn assurances given to
conclusions on the same set of facts may This procedure helps explain the debacle the Congress and to the country by the var-
come to an opposite decision, simply because of the escape clause and the deep cynicism ious heads of the State Department itself
of their personal views and sympathies. its administration has engendered. A wholly over a period of years under various admin-
Since Presidential appointments are not ugly disrespect of rights and of constitu- istrations. It cannot sustain the claim'that
made in a vacuum, the background, inter- tional probity is involved. it must oppose tariff increases under the
national political outlook and other evidence It is now clearly established that the execu- escape clause either to satisfy other members
of alinement of prospective appointees may tive branch has gravely abused its power, of GATT or to overcome any question about
be examined before a nomination is made. wrecked the law, and broken faith with the the sincerity of the liberal trade policy
If the President is so minded he may pack Congress during this 11-year period. The of this country.
the Commission with members who will be escape clause has not remotely done what These pleas are devoid of the least merit
amenable to his views and predilections various Secretaries of State, Under Secre- and represent no more than an effort to
rather than independent judges. If then taries, and Assistant Secretaries, have sot- conceal the real motives, which arise from the
the Commissioners have a wide latitude of emnly assured Congress in hearing after personal trade philosophies of the officials
discretion, the interest of the executive hearing, that it would do. The law has been concerned and from their conviction that
rather than that.of Congress will prevail. extended under false pretenses under reli- the State Department rather than Congress
As a result of these two wide latitudes of ance on these assurances. should regulate the foreign commerce of this
discretion through which escape clause cases The State Department has been so hungry country.
must pass, the administration of the clause for power and so engrossed in serving the The result of this disingenuous position
has produced effects that are wholly at odds wishes of other countries that it has evi- or duplicity of the Department of State by
with Presidential and other high executive dently not paused or bothered to read the which it has turned one face to congres-
assurances to Congress and to the public escape clause in its proper context; or, having sional committees and to the public while
with respect to its purpose and the results read it, the Department has treated the con- in the conduct of its business it has worn
that might be expected of it. gressional intent and the Department's own an entirely different face, has been the be-
'these assurances were given on every occa- words before congressional committees with trayal of the escape clause. Implicit in this
sion when the Trade Agreements Act was up disdain and contempt. Is hostility toward domestic industry.
for renewal by Congress and it may be as- There can be no other explanation of the It is this latter face that would indict any
sumed that these promises helped materially sharp and shocking discrepancy between the American industry as inefficient if it cannot
in obtaining congressional approval of the fair words spoken by Secretaries of State and compete with imports. This is also theface
trade agreements program from time to time. their assistants before the House Ways and that would confer upon imparts the right
Now, after 10 years of the statutory escape Means Committee and the Senate Finance of eminent domain in this country and sad-
Clause, it must be clear that there is no Committee, on the one hand, and the record dling our Government with the burden of
effective intent in the executive branch to of the Department under the escape clause rehabilitating industries that might. be
honor these solemn assurances and promises, and its insistence upon the President's wide driven to the wall by imports, even though
and that they were monitored and issued by latitude in upsetting the Tariff Commission, the competitive advantage of the latter were
the State Department not with the idea that on the other. The two cannot be reconciled. derived from nothing more virtuous than
they would be kept but as a means of ob- It is obvious that the State Department the payment of the low wages in other
taining further, Congressional approval of the seeks to use the regulation of foreign trade countries.
program, as an instrument of diplomacy and has seized It may be considered a settled fact that
The core of the contention that the Presi- the Trade Agreements Act and its escape so long as the President continues to have
dent should continue to exercise the power clause in particular as a means of doing so. the authority to override the Tariff Com-
of veto over Tariff Commission recommenda- The denial of a remedy under the escape mission's recommendations under the escape
tions, as extended to him by Congress, is to clause to domestic industry and its workers clause, the remedy for the errors of the
be found in the observation that he has when serious injury from imports is incurred tariff-cutters will continue to be a false bait
more to think about than the Commission, or threatened is a position that neither the as it has been these past 10 years. A remedy
The statute lays down the criteria by which State Department nor the President can that is only 10 percent effective is no remedy
the Commission is to be guided, and this is justify. worthy of the name. If an antibiotic remedy
as it should be. Constitutional authority Every member of the General Agreement for a disease were no more effective it would
cannot be delegated properly without the on Tariffs and Trade (GATT) is aware that go off the shelves as an outright failure.
establishment of. clear guidelines. To issue we, no less than all its other members, re- The escape clause today is a-monument to
a blank check would represent a clear viola- serve the right whenever we enter into a duplicity, cynicism, and a Machiavellian atti-
tion of the Constitution. trade agreement to restore the duty to its tude toward governmental
g
Yet it isargued that when a recommenda- unreduced level if the lowered rate causes tegrity. The effect roducedrby lon In
tion from the Tariff Commission reaches the serious injury to a domestic industry. GATT p by prolonging
President he may bring to bear considera- itself has an escape clause. most its ltfe deplorable. same lane t of sound be evil and
tions that are entirely extraneous to the point -k Therefore nothing more should be involved the clause use should be be retained but amended
d
statute, such as the effect of a proposed tariff than a finding of fact by a duly constituted to wash out of it the objectionable elements.
increase upon foreign relations. In effect, public agency, proceeding under lawful proc- The executive branch has been entrusted
this represents an amendment of the law by esses. If the degree of injury called for in with this congressional function for adecade.
the President. - the escape clause is then found to exist, the The record has been one of shameful be-
Since it is only because of the statute that remedy should follow as a matter of course. trayal of a delegated power, and the delega-
the President is invited to participate in Any aggrieved import interest, or foreign tion should be withdrawn.
administration of the escape clause, the in- exporter, may have recourse to the Customs Considering the nature of the escape
vitation cannot properly be construed as Court. He may allege improper procedure clause, which is a multilateral reservation,
vesting the President with additional power by the Tariff Commission, failure of the Com- with its invocation contingep't-on a factual
not expressed in the law. mission to obtain all the facts - or that the development, there w , rib reason for in-
How may the President then properly en- facts do not support the Commission's con- volvement of the f Executive in its ad-
large the statute once a Tariff Commission elusion, etc. He may have his day in court. ministration in the first place. Now it is
recommendation reaches him by reading into Certainly the State Department is not clear that it was an unfortunate mistake.
It what it does not contain? justified in saying that if we raise the duty As for the Tariff Commission's impartiality
The statute provides a remedy against seri- or impose an import quota as a remedy under it is more than a coincidence that the ma-
ous injury or a threat thereof if certain cri- these circumstances that any member of jority has found against a remedy more often
teria of injury are fulfilled, and these criteria GATT has a right to resent our action or to than not; and such findings have been in
are confined totests of injury. invoke retaliatory measures. conformity with the climate of opinion in
Now it is said that the President is not We go beyond these processes of law in' the White House.
bound by such a narrow field of considera- actual practice: we compensate the coun- The sharing-
haring of congressional authority
tions. Apparently he may reach out in the tries that ship to us the particular item on with the Executive in such a manner that
air and amend the statute, which we have raised the duty by reducing This represents strange legal philosophy, the duty on other items that we import represented a resignation or bdicationxof its
indeed. Apparently there is no limit to the from them in roughly equal volume. We constitutional power by Congress. The in-
grounds on which the President might upset thus make good any damage that might fluence of the appointive power as repre-
the Commission's recommendation. He have resulted from the duty increase imposed sented by the President's appointment of
might use any pretext that might come to under the escape clause.
his mind. Tariff Commissioners can best be counter-
The incontrovertible conclusion from these balanced by restricting the latitude of the
The fact is that under this bizarre inter- observations is that what really actuates the Commission's interpretative powers. This
pretation the power of Congress to regulate Department of State is a deeply imbedded means that the criteria of injury in the
foreign commerce and to establish and mod- philosophy" of free trade; and that in throw- escape clause must be made more precise.
ify import duties, collapses the second that Ing its weight against tariff increases when- The presence of certain factual conditions
a Tariff Commission recommendation is sent ever these are recommended by the Tariff must be given controlling weight in the
on its way to the White House. That is Commission, it substitutes its trade phil- findings.
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