IS PRESIDENT KENNEDY PREPARING US FOR ANOTHER BACKDOWN IN CUBA?

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65B00383R000200240058-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 15, 2016
• Document Release Date: June 18, 2004
• Sequence Number: 58
• Publication Date: April 30, 1963
• Content Type: OPEN

Approved For Release 2004 65 000200240058-3
CONGRESSI
up the free-world to the inevitability of
the Communist takeover.
White House. statements have declared
that we would never abandon Guars-
tanamo. Yet, within the past week we
begin to hear about a strange case of
a murdered Cuban spy who was given
free run of our base. It will be inter-
esting to learn all the facts about this
case and how and why it only now has
been leaked to the press.. -
To appreciate the full absurdity of this
deal, it will help to bear in mind the follow-
ing facts:.
The United States is urgently looking for
customers for our vast store of surplus wheat.
Brazil is an Importer of wheat, to the ex-
tent of about 1 million tons a year. It. has
been buying most of this from the United
States under our food-for-peace program
with Brazilian cruzeiros. This doesn't con-
tribute to our dollar receipts, to be sure, but
it's better than paying to store the un-
wanted grain.
Although Russia once was a leading ex-
porter of wheat and continues to export
wheat to. favored customers, it has recently
been having trouble filling its own needs,
and last year even had to import some Ca-
nadian wheat.
The State Department has just announced
a new loan of $400 million to Brazil.
During the talks which led to this loan,
Brazilian negotiators repeatedly belittled re-
ports that Brazil was edging toward closer
relations with the Soviet Union.
Meanwhile, David Bell, foreign aid admin-
istrator, assured ? Congress that the Kennedy
administration wants our foreign aid to be
used, as much as possible, for the purchase
.of American products.
Now, if Russia had insisted that Brazil
take Russian wheat as part of the price for
helping to relieve Brazil of her own surpluses,
we might have been able partly to under-
stand, if not appreciate, Brazil's slap at us.
But as it is, we doubt that Mr. Khru-
shchev is begging anybody to take his wheat.
We must, therefore, assume that it was
largely Brazil's idea and that -Russia con-
siders the deal of such strategic importance
that it is worth the wheat. What might
have been explained as economic expediency
thus becomes a gratuitous slap at the United
States as well as deliberate complicity in
Russia's penetration of Latin America.
When our overly generous foreign aid
yields this sort of duplicity, it is time to re-
examine the whole program instead of blindly
turning the other cheek and shelling out
IS PRESIDENT KENNEDY PREPAR-
ING US FOR ANOTHER BACKDOWN
IN CUBA?
(Mr. ALGER (at the request of Mr.
{MACGREGOR) was given permission to
extend his remarks at, this point in the
RECORD, and to include extraneous mat-
ter.)
Mr. ALGER. Mr. Speaker, when the
Kennedy administration announced we
would begin protecting Castro from at-
tack by Cuban freedom fighters, the
fuzzy little dictator announced that the
United States had accepted the first of
his four-point ultimatum? Is the Presi-
dent now preparing the country for an-
other backdown in Cuba?
A number of disturbing hews items
have appeared in papers across the coun-
try during the past few days regarding
In these feeler stories
am
a
o.
Guant
n
there seems to be the same old pattern petted of him, impose the Monroe Doe- auctions in theburden on individual- tad
refuse to make any further con- payers.
trine
f
;
or
of softening up the American people
abandonment of our base there. Re- cessions to Khrushchev in Cuba and set For instance, a .$I billion reduction works
member the shocked denials that the a time limit for the complete removal of out to a $20 tax break for the average family.
00; lighten-
family. y.tax would load by mean $2200.
had made a deal with Khru- Communist troops and missiles from that tag the A. he e average ereduction
President shchev to 'remove our bases in Greece Island. The United States cannot stand Congress needs to hear from you. Your
and Turkey? Yet, within less than a many more Kennedy failures and giving message to Congress. could well be that your
year that is exactly what we did. Con- up Guantanamo could be the final blow_ family needs $200 more than it needs new or
gressional committees have been warning to send freedom reeling throughout expanded Federal projects.
us that part of the Communist strategy Latin America and cause our allies to The only sure way to cut taxes is to out
.Intensified since Hungary, is to soften desert us everywhere in the world. spending.
Even now the House Armed Services
Committee is studying the Defense De-
partment proposal for an alternate base
to Guantanamo to be set up in Puerto
Rico.
Mr. Speaker, we have seen this pat-
tern in operation and I think the Presi-
dent should assure the country now that
he is not going to give in to Khrushchev
and the Russian puppet, Castro, on this
second point of the Communist ultima-
tum. The failure of President Kennedy
to handle the Cuban situation should not
be allowed to go any farther. We can-
not continue to allow a weak admin-
istration to give in on point after point
until the Communists are in a position
to take over the Western Hemisphere
and seriously challenge the security of
this Nation.
Just how far is President Kennedy
prepared to go to keep from ruffling the
feelings of Khrushchev? What has the
President to fear in a policy of strength
and determination to protect the sover-
eignty of the United States? History has
proved that the Communists gain ground
only when we appear-to be weak. They
have backed down and the free world
has chalked up victory whenever the
United States was tough, strong, and let
our enemy know in no uncertain terms
that we have the means and the will to
protect ourselves and our allies.
If the design is to soften us up for
giving away Guantanamo, are we also
prepared to give up the Panama Canal?
Driving the United States out of the
Canal is also on the Communist agenda.
Will President Kennedy give in to their
demands on that question?
Convinced that history in on their side
the Communists p^.tiently whittle away
at freedom's foundations by using every
means to convince the world that the
rule of communism is inevitable and we
must accept this Have those close to
7033
It could be that the news stories are
not an indication of another backdown.
If they are not, Mr. President, prove
them wrong by demonstrating to Khru-
shchev and Castro that we will not give
up Guantanamo and are prepared to
defend our rights there.
WANT A $200 TAX CUT?
(Mr. ADAIR (at the request of Mr.
MACGREGOR) was given permission to ex-
tend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
Mr. ADAIR. Mr. Speaker, having in
mind the concern which virtually all
Americans have over the possibility of
a tax reduction and. the need for a cut
in Federal expenditures, I thought the
attached editorial from the LaGrange
Standard, LaGrange, Ind., was well writ-
ten and illuminating:
WANT A $200 TAX CUT?
As of February of this year, there were
only 47. workers in private employment to
support each. 10 workers for our various gov-
ernments.
And make no mistake: Every American
worker must pay about a fifth of the salary
of a government worker, plus fringe benefits,
office space, equipment, mimeograph paper,
and all the things a government worker
uses.
The average American makes between
$5,000 and $6,000 a year and pays about a
fourth of that in taxes. In a lifetime, the
experts say, the average individual earns
about a quarter of a million dollars-a rather
princely sum-and pays out about $60,000 in
taxes, at the current rate.
There are about 50 million families in the
United States. All government expenses
must be paid by them, and the businesses
they own, on the local, State, .and Federal
levels.
A growing population almost automatically
means larger local and State expenses, but
the Federal Government does not meet popu-
lation-connected needs of police, firemen,
schools, sewers, and other local services in
any great degree. Yet, Federal expenses have
been growing much faster than our popula-
tion has.
The administration's new budget of more
than $107 billion in actual spending works
out to over $2,100 for each American family.
Too much of this budget is made up of
loans to prosperous groups, aid to prosperous
communities, grants to often uncooperative
President Kennedy convineed~him of the and wasteful-and even corrupt-foreign
inevitability of communism? Are we governments, status projects for local areas,
now being prepared, on that basis, to and many other items which could and in
many instances should be either canceled or
accept the demand that we give up deferred to a time when we can afford them.
Guantanamo? - The reason the budget is so big is that
Mr. Speaker, we can rid this hemi- small groups who want specific projects are
sphere of Communist aggression and the very demanding, while taxpayers in general
threat it poses to this country. All that suffer in silence.
Is needed is a courageous President who But relatively minor decreases in the Fed-
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CONGRESSIONAL RECORD - HOUSE April 30
NATIONAL SHARECROPPERS FUND
(Mr. LINDSAY (at the request of Mr.
MACGRE00R) was given permission to ex-
tend his remarks at this point in the
RECORD, and to include extraneous
matter.)
Mr. LINDSAY. Mr. Speaker, recently
I had occasion to study with care the
annual report to the board of directors
of the National Sharecroppers Fund,
written by Fay Bennett, executive
secretary.
It is an excellent report summarizing
the plight of migrant farm workers and
low income farm families in this coun-
try. Of particular interest are the para-
graphs which deal with the application
of Federal aid programs. Every Mem-
ber of Congress will be interested In the
fund's conclusion that applications for
loans and other government aid are be-
ing processed in a discriminatory and
therefore ineffective fashion. This is a
point worth noting when Members come
to the problem of considering fair op-
portunity requirements in Federal
legislation.
I would urge every Member of the
House to examine the fund's report for
1962, and for that reason I am, with the
permission of the -House, placing the re-
port in the body of the CONGRESSIONAL
RECORD.
NATIONAL SHARECROPPERS FUND
THE YEAR IN BRIEF
Human waste, men displaced by machines.
exploitation of the hungry, foreign workers
competing for vanishing jobs-progress is
coming too little and too late for many farm
families of America.
The year 1962 saw several real changes for
the better; action, in which National Share-
crappers Fund has played a role, toward
bringing industry to the underem-
ployed workers of the rural South and re-
training those who must or wish to leave
the land; increased union organizing and
collective bargaining activities, particularly
In California and Louisiana; a significant
drop In the number of imported contract
workers, because the Department of Labor
enforced more diligently the provisions to
prevent adverse effects on domestic wages
and working conditions; a Federal health
program for migrants; progress in imple-
menting Federal aid programs for the rural
families who need them most.
But these few restrained measures are
pitted against an agricultural revolution
which has forced millions of people off the
land in the last 10 years. As one result,
untrained workers are arriving in cities
where jobs are already scarce and necessary
skill levels are rising. This same agricul-
tural revolution has concentrated economic
power so that one-half of 1 percent of all
our farms (those with annual sales of over
$100,000) account for 20 percent of all farm
products sold, while the workers those farms
employ receive the lowest wages and have
the highest unemployment rate of any group
in our economy, and lack the cushion of
social legislation which protects other
workers.
CONCENTRATION OF CONTROL; WEALTH VERSUS
POVERTY
There were 5.4 million farms in 1950.
These were reduced to 4.8 million in 1964;
to 3.7 million in 1969. Between 1959 and
1960 an estimated 370,000 more, involving
over a million people, havegiven up. Two-
thirds (about 2 million) of the families who
stayed on their farms earned less than $1,000
a year from both farm and nonfarm work.
Only 21.6 percent of U.S. farms have sales
of $10,000 or more, which the Department of
Agriculture estimates will return a mini-
mum family income of $2,600. But It takes
$4,000 to place the multiperson family
above poverty in the American context to-
day, Recording to the Conference on Eco-
nomic Progress and other authorities. At
the other end, only 2.7 percent of the farms
have sales of $40,000 or more. They control
20 percent of all farmland and 14 percent of
all cropland harvested, and profit from more
than 30 percent of all farm products sold.
GREATEST POVERTY IN THE SOUTH
About one out of every six southern farm
operators Is Negro. Less than one-third own
or even rent their own farms; about 40 per-
cent are sharecroppers, and the rest are
tenant farmers.
The average size white-operated commer-
cial farm in the South Is about 382 acres;
the average nonwhite commercial farm, 56
acres. The averagevalue of land and build-
ings is $37,816 for whites, and $7,328 for
nonwhites. The average value of products
sold Is $10,396 for whites and $3,029 for non-
whites. Displacement, greater In the South
than elsewhere. Is proportionately greater
among Negro farmers. In the last decade
the South has lost half Its Negro-operated
farms. The number of tenants, both Negro
and white, dropped about 45 percent and
the number of sharecroppers about 56
percent.
HIRED FARMWORKERS
Average annual earnings of farmworkers
dropped from $1,125 In 1960 to $1,054 in
1901 because of Increased unemployment in
agriculture and the difficulty of finding sup-
plementary nonfarm work; a slight rise in
hourly wage rates was thus counterbalanced.
Migrants fared even worse. Their 1960
average of $1,016 dropped to $902. Employ-
ment of seasonal workers declined for the
third straight year In 1962.,
DISPLACEMENT ACCELERATED By MECHANIZATION
The need for new jobs In the rural South
has been intensified by acceleration In cotton
harvest mechanization. In 1950, only 8 per-
cent of the cotton crop was machine har-
vested. By 1969, this had risen to 40 percent.
The Department of Labor estimated that In
1981 the harvest was 57 percent mechanized.
Between 1959 and 1961, peak employment
declined by at least 250.000. while produc-
tion dropped less than 3 percent.
Agricultural workers are even being dis-
placed by geese. The Wall Street Journal
has reported: "Growers here in the South-
west and in other cotton regions are finding
that geese ' ' ' can do weeding better and
more cheaply than men with hoes * *
Machines such as cotton pickers and culti-
vators, plus herbicides, had already slashed
their employment opportunities, and now the
Increasing use of geese is further reducing
jobs."
Each year sees new crops coming under
mechanization as. development of both ma-
chines and plants continues, For Instance,
in 1962, 95 percent of the Massachusetts
cranberry crop (one of the largest on record)
was harvested by picking machines.
MEXICAN CONTRACT WORKERS
By far the largest number of foreign work-
ers came from Mexico, but total employment
of Mexican contract workers (braceros) was
down one-third, from 291,420 in 1961 to
194,978 in 1962. But with many apparently
recontracted. some 244,000 braceros worked
here for an average period of about 3 months
in 1962. Less than 1 percent of American
farms used braceros. A primary reason for
the decrease was the U.B. Department of
Labor's decision-bitterly protested by bra-
cero employers-to set minimum wage rates
for braceros in keeping with Its statutory
responsibility to prevent adverse effects on
the wages and conditions of domestic work-
ers. The minimum wages set ranged from
00 cents an hour in Arkansas to $1 in Cali-
fornia and Michigan and were below State
average farm wages in every case.
The National Sharecroppers Fund sub-
mitted testimony at all open hearings held
by the Department of Labor in bracero-em-
ploying areas before the minimum rates were
set; NSF asked that the minimum be not
less than the average State or National farm
wage, whichever was higher. NSF has also
urged the Department of Labor to recom-
mend to Congress that Public Law 78 (under
which Mexicans are imported) be permitted
to expire at the end of 1963.
Green-carders: Mexican workers are enter-
ing the United States as immigrants in
greatly increasing numbers. Between 1951
and 1960, nearly 300,000 were admitted, a
395-percent rise over the 60,589 admitted In
the previous decade. In fiscal 1961 alone,
41.632 were admitted.
The immigrant farm worker is free to
move from job to job and does not pose so
great a threat to labor standards as the
contract worker. But, like the native work-
er, he lacks the protection of a minimum
wage and other standards. Some growers
in border areas pay such low wages that
the Immigrants cannot afford to live here,
so they leave their families behind and cross
the border daily.
Blue carders. A similar problem is
caused by Mexicans who have border-cross-
Ing permits to visit or shop but not to work
in the United States, and who nevertheless
do work here. More than 135,000 of these
permits were issued In fiscal 1962, but pre-
cise Information is not available as to how
many border creasers are working illegally.
Completely unprotected and therefore ex-
ploited, these workers have contributed to
undermining wage rates In the Southwest,
which sometimes range from $2.50 to $3.75
a day. The Texas AFL-CIO is suing the
Federal Government, demanding a halt to
this Illegal use of cheap labor.
PUERTO RICAN FARMWORKERS
In 1962, 13,526 Americans from Puerto
Rico came under contract to work on main-
land farms. Their guaranteed minimum
wage was 90 cents an hour, an increase from
the 80 cents minimum In 1961. In addition
to a guarantee of 160 hours of work In each
four-week period, the contract included
workmen's compensation coverage, health in-
surance, and English classes for workers
who wish to further their education.
OTHER FOREIGN WORKERS
Other specially imported foreign workers
for American agriculture in 1962 included
approximately 1.200 Japanese, 125 Filipinos,
13,000 British West Indiana, and 8,700
Canadians. Peak employment of all foreign
contract workers was the lowest since 1950.
FAaMWORKER ORGANIZATION
The Agricultural Workers Organizing
Committee. AFL-CIO, centered in California,
spent last year In strengthening its locals
and registering eligible farmworkers as
voters. Increased organizing and collective
bargaining activities are predicted for 1963.
In Louisiana, the organizing drive of the
Agricultural and Allied Workers Union No.
300 (formerly the National Agricultural
Workers Union) made notable progress in
1962. Overcoming strong opposition, this
affiliate of the Amalgamated Meat Cutters
and Butcher Workmen of North America won
recognition for some workers at Sweetlake
Farms, a 6.000-acre rice, cattle, and poultry
operation employing some 200 people, in-
cluding 46 tenant farm families.
SUGAR ACT BENEFITS DENIED FARM WORKERS
During the 1982 congressional debate on
extension of the Sugar Act, which guaran-
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CONGRESSIONAL RECORD - APPENDIX.
outstanding tribute and memorial to
the late Allan B. Rogers who died sud-
dently last June after being elected pres-
ident of the organization being honored
in Washington today. It was Mr. Rogers
who initiated the climactic stage of the
chamber's now famous program.
Those who have followed the cham-
ber's activities today recognize the out-
standing work of President Robert M.
Maguire, Executive Vice President Elbert
G. Moulton, Jr., Walter Demers, Jr., and
Albert B. Gordon, to mention just a few,
as symbolic of the community's and or-
ganization's success. These officials of
the Lawrence Chamber of Commerce
are attending the 51st annual meeting of
the U.S. Chamber of Commerce and will
be presented the National Chamber's
Award of Merit signifying the Greater-
Lawrence Chamber's standing as one of
the top 25 chambers in the Nation.
This is a proud moment for the,
Greater-Lawrence area community, as
evidenced by the accomplishments of the
Greater-Lawrence Chamber of Com-
"` Cloudy Intelligence
f EXTENSION OF REMA
RKS
OF
HON. CLARK MacGREGOR
OF MINNESOTA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 30, 1963
Mr. MAcGREGOR, Mr. Speaker, a
great many Members of Congress, of the
press, and a large segment of the general
public have often questioned the discre-
pencies between various figures and
claims made by the administration and
certain Members of Congress in regard
to the Cuban situation. The most re-
cent example of these differences is
whether the Russians are actually with-
drawing troops from Cuba or are merely
rotating them, bringing in new men as
they take out some already there. Per-
haps the following editorial from the
April 29 New York Times gives at least
part of the answer:
[From the New York Times, Apr, 29, 19631
CLOUDY INTELLIGENCE
Are U.S. intelligence estimates being
colored or distorted by policy?
The differences between President Ken-
nedy and Senator KEATING about how many
Soviet troops in Cuba could reflect a serious
weakness in the elaborate apparatus the
Nation maintains for collecting and evaluat-
ing the data on which policy must be built.
The problem is not new to this administra-
tion, nor did it originate with the Cuban
crisis. But when intelligence becomes, as it
has become today, the very cornerstone of
policy, an almost superhuman objectivity is
required on the part of our intelligence
chiefs to avoid estimates and evaluations
tailored to policy. Intelligence, if it is to be
worth anything, must be completely non-
partisan.
A Senate subcommittee, which has been
quietly investigating the Cuban crisis, has
already found considerable evidence that the
intelligence estimates of last summer and
fall were keyed to the "it can't happen here"
atmosphere, then prevalent in Washington.
The belief of all the Nation's top Soviet ex-
perts that Premier Khrushchev would never
risk installing Russian missiles in Cuba ap-
pears to have influenced most of the intelli-
gence judgments that reached the President
in that period. The awakening led to a con-
centration on missiles only, that caused us
to downgrade the significance of the small
Soviet force that had been sent to Cuba.
Today, the basic differences between the
President and his critics concern the size of
this force, and whether it is being reduced.
Both Mr. Kennedy and Senator KEATING are
getting their information from the same
source-Government intelligence agencies,
But, because Cuba' has become a partisan
issue, it is not easy for the top level estimates
that reach the President to remain com-
pletely objective. The men who provide these
judgments are appointees of the President's
own administration. Given the present cen-
tralization of intelligence activities, it is
especially hard for minority views, which
might happen to be right, to reach the top.
This problem will not be helped by the
appointment of Clark M. Clifford to replace
Dr. James R. Killian, chairman of the board
of directors of the Massachusetts Institute
of Technology, as chairman of the Foreign
Intelligence Advisory Board. The board was
established as a result of a recommendation
of the Hoover Commission in 1956 to monitor
continuously CIA and other intelligence
activities.
Mr. Clifford has a brilliant mind, but, as a
long-time troubleshooter for the Democratic
Party, he is inextricably associated with
partisan politics. He replaces a skilled and
objective scientist-administrator. The selec-
tion is at best unfortunate. It is bound to
give the impression that our intelligence,
activities will now be monitored-not by a
chairman who is an expert in the field-but
by one who is essentially a politician.
Fifteenth Anniversary of Independence of
Israel
SPEECH
OF
HON. EDWARD P. BOLAND
OF MASSACHUSNNr$
IN THE HOUSE OF REPRESENTATIVES
Monday, April 29, 1963
Mr. BOLAND. Mr. Speaker, as Israe-
lis celebrate their 15 years of independ-
ence, they can be proud of the progress
which they have achieved since the
declaration of independence was first
proclaimed on May 14, 1948. From a
fledgling nation with fed resources and
little manufacturing, the people have
built their country into the stronghold
of democracy which the Western World
recognizes as a friend and ally.
From the first, the Israelis were forced
to persevere over almost insurmountable
odds. The massed attacking Arab forces
threatened the very existence of the
newly established state. Yet unity and
the desire to survive helped the Jews to
throw back their enemies and to acquire
needed additional territory. Out of war-
torn factories were constructed modern
oil refineries and phosphate plants.
Crops were planted in irrigated desert
land to provide for the ever-increasing
number of immigrants who came to live
in this promised land.. Everywhere in
Israel there has been some form of de-
velopment-the harbor and recreational
April 30
facilities of Eilat, the irrigated lands of
the Negev, the shipyards of Haifa, and
the schools of Jerusalem and Tel-Aviv.
The record of development is stupen-
dous. Credit for this achievement lies
with the Jews who founded the state,
with those who came to settle and to
prosper, and with the leaders of the gov-
ernment, such as David Ben-Gurion and
the late Chaim Weizmann and Itzhak
Ben-Zvi, who had the foresight to plan
ahead for the future.
On the 15th anniversary the future
has been reached, yet even newer goals
must be set so that Israel will continue
to prosper. On this their important oc-
casion, we in the United States extend
our congratulations on the progress of
Israel and offer our continued friendship
to the people of this dynamic nation.
Fifteenth Anniversary of the Independ-
ence of Israel
SPEECH
HON. JAMES C, HEALEY
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Monday, April 29, 1963
Mr. HEALEY. Mr. Speaker, on April
29, the gallant State of Israel marks its
15th anniversary.
I am filled with deep admiration for
the tremendous accomplishments of this
tiny country, in this incredibly short
period of time, against almost insur-
mountable odds.
The people of Israel have opened their
doors to their brethren from the dis-
placed persons camps in Europe, from
countries behind the Iron Curtain, from
Asia, Africa; and the Arab lands. They
have housed and given employment-
and a chance to start a new life-to more
than 1 million immigrants since 1948.
They have conquered the desert and
have created cities where not so long ago
there was nothing but desolate wilder-
ness. They have built hospitals and
schools, increased their agricultural out-
put and industrial production and have
doubled their exports.
But even more important, Israel has
not forgotten the debt it owes to nations
of the free world. Just as the countries
of the West came to Israel's aid when
the new state needed technical, financial,
and moral support, so Israel has come to
the assistance of the new nations of
Africa and Asia.
Last year, more than 300 Israeli were
providing expert knowledge in agricul-
ture, education, health, construction, and
economics -to governments on four con-
tinents. Another 800 Israelis were at
work on projects sponsored jointly by
Israel interests and the foreign govern-
ments. And over 1,600 students from
Africa, Asia, and Latin America came
to Israel on scholarships. Although
small and poor in material resources,
Israel now has a technical assistance
program in 83 states and territories.
And the fact that its program empha-
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Why Give Off Charitable Giving?
EXTENSION OF REMARKS
OF
HON. DONALD RUMSFELD
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 30, 1963
Mr. RUMSFELD. Mr. Speaker, a great
many thoughtful and responsible citizens
of the 13th Congressional District of Illi-
nois have expressed deep concern about
the President's recommended tax revi-
sions, particularly the proposal to place
a 5-percent floor on itemized deductions.
To homeowners, and to many chari-
table institutions, community social and
welfare agencies, educational institu-
tions, and churches which rely to a great
extent on voluntary contributions, the
5-percent floor will add to the burden of
the homeowning taxpayer and severely
curtail contributions to worthwhile
causes.
The Skokie, Illinois Home Owner's
Council, in an unprecedented action,
went on record as opposing this tax pro-
posal. The council's president, Mr. Har-
vey Schwartz, in the following press
statement, points out how homeowners
would be penalized if the 5-percent floor
were in effect:
The Kennedy administration's controver-
sial tax reform measure which will place a
5 percent floor on itemized Income tax de-
ductions came under attack by the Skokie
Home Owners' Council this week.
In an unprecedented action the council,
representing Skokie's 14 homeowner associa-
tions, went on record opposing the tax re-
form measure. Under the present tax law,
taxpayers who itemize personal deductions
receive 100 percent of their deductions for
such items as real estate taxes, mortgage
interest, and charitable contributions, In
the future, taxpayers who itemize their de-
ductions would have their personal deduc-
tions limited to an amount in excess of 6
percent of their adjusted gross income. A
taxpayer with an adjusted gross income of
$10,000 with $2,000 of itemized deductions
would be allowed to take only $1,500 of these
deductions from his income tax. "The coun-
cil would be remiss if it did not speak out
on this proposal,' said Harvey Schwartz,
council president. "We will be paying more
taxes than ever it this so-called reform be-
comes a law. The Government is attempt-
ing to take away the only relief the home-
owner has from the real estate tax burden
he Is carrying. A lot of middle income brack-
et taxpayers may not be able to continue
owning their own homes if they don't get
100 percent credit for their personal deduc-
tions. Certainly, this proposal will adversely
affect an already soft real estate market."
Schwartz called upon interested Skokie
taxpayers to write to Congressman DONALD
RUMSFELD and Senators PAUL DOUGLAS and
EVERETT DIRKSEN In protest of this action.
Mr. Speaker, in voicing my opposition
to the proposed 5 percent floor, I should
also like to include in the RECORD the
following editorials, relating to the 5 per-
cent floor, which appeared In recent is-
sues of Chicago area newspapers:
[From the Chicago Daily News, Apr. 22, 19631
WHY KILL OFF CHARITABLE GIVING?
In protesting the proposed elimination of
the unlimited charitable contributions de-
duction from the Federal income tax, the
Chicago Catholic Charities organization
says:
"The administration points out that
wealthy individuals who can qualify for this
provision have been able to reduce their In-
come taxes substantially. But aren't the
real beneficiaries the churches or charities
who receive contributions from such Indi-
viduals and devote them to worthy causes?"
The answer is obviously yes. But one may
wonder whether this fact is the primary con-
cern of the Government tax theorists.
Implicit In the administration argument Is
the viewpoint that the main purpose of taxes
is disciplinary, and that any detour around
taxes must be in some manner heinous.
Witness the almost criminal overtone that
attaches to words like "avoidance" and "loop-
hole." Even phrases like "expense deduc-
tion" and "depletion allowance" have been
given an acid flavor.
The fact Is, of course, that an Individual
In the 91-percent bracket who elects to give
$10,000 to his church le evading nothing.
He is paying out every dollar he would have
paid in taxes and 9 percent more.
The further fact is that a church must
subsist either by the contributions of its
private beneficiaries or by the bounty of the
Government. Theformer arrangement was
favored by the Founding Fathers and has
been the accepted practice ever since.
We do not suggest that the administration
holds a contrary view. But It does appear
that some of Its advisers get so carried away
with the idea of socializing the economy
that commonsense gets lost in the scramble.
[From Paddock Publications, Mar. 14, 1963)
TAx ON HosxowNINo
Northwest area realtors have raised a cry
over an aspect of President Kennedy's tax
reform proposals which directly affects sub-
urban homeowners.
Crux of the controversy is that taxpayers
who now deduct such Stems as Interest on
mortgage, charitable contributions, and
State and local taxes from thegross Income
on which they pay Federal taxes would be
allowed to deduct only the sum of these
Items that exceeded five percent of their
taxable income.
In other words, a taxpayer with an Income
of $8,000 who claims $1,400 in deductions will
be permitted to deduct only $1,000. Under
present law he can deduct the entire $1,400.
Homeowners in northwest suburban com-
munittes are usually heavily mortgaged and
local taxes are high, so the proposed changes
would have considerable Impact on their
budgets.
The question to ask then is whether the
tax cuts the administration is proposing
would offset this tightening up In the tax
deduction area? The question, of course. is
unanswerable at present. Only by imple-
mentation would one be able to discover
what benefits, If any, would be accrued.
What it could amount to is taking money
from one pocket and placing it in another in
a kind of fiscal sleight of hand.
There is merit, however, in the realtor's
contention that Congress can always increase
taxes but once deductions are lost their Is
little chance of getting them back.
The realtors further seem to think that
this tax reform will prove detrimental to
the home selling market. Whatever effect
passage of such a proposal would have on
this market is difficult to forecast.
It seems that potential home buyers are
rare who Inquire about the number of Items
they could deduct from the fact of home-
ownership. Then. there always apepars to
be a group of younger buyers graduating
from the rental stage to the permanency of
homeownership.
The realtors score another point, though.
when they note that the proposals would
adversely affect renters. If apartment own-
era are not permitted to take the full mort-
gage deductions, they will undoubtedly pass
on this added expense to their tenants.
What this amounts to is that the tax cuts
would actually feed an inflationary trend.
The necessity of curtailing these modest
tax breaks homeowners now enjoy Is ques-
tionable. Most of this group of mortgaged
homeowners, whose taxes have been soaring
as a result of the Increased number of chil-
dren requiring an education, budget pretty
close to the belt.
The Illinois Legislature hiked the State
sales tax a few years ago and hurt those per-
sons who could least afford it (the lower in-
come groups which spent most of their In-
come on groceries) rather than examine
others areas of possible tax reform. The
same can be said for the home deduction tax
plan.
Lawmakers would be well advised to con-
sider revision of the oil depletion allowances
which favor the giant oil industrialists.
They might also look for new sources of in-
come by studying a Wall Street Journal re-
port of February 20 which reported that the
corporate profits in the final quarter of
1962 "probably reached a peacetime record."
Or they might reassess the whole Defense
Establishment in which arms expenditures
now represent more than half the Federal
budget and more than 10 percent of the gross
national product.
Not only could they weigh the posibilitles
of trimming traditional military wastes, but
they mght also exert more pressure on the
Defense Department to insure an adequate
return on the tax dollar for defense expendi-
tures.
The taxpayer's confidence Is not bolstered
by the knowledge that the contract for the
TFR fighter plane went to the highest bid-
der. The fact that the contract was awarded
to a company located in States heavily pop-
ulated with voters rather than to a lower
bidder whose firm was in a sparse population
area in further grounds for discouragement.
The point Is that there are many other
areas where tax reforms could be undertaken
before penalizing the homeowner.
Greater Lawrence Chamber of Commerce
Receives Award of Merit
EXTENSION OF REMARKS
OF
HON. F. BRADFORD MORSE
OF MASSACHUSETTS
IN THE HOUSE OF REPRESENTATIVES
Monday. April 29, 1963
Mr. MORSE. Mr. Speaker, it is with
great pride that I call the attention of
the House to the award to be given this
evening to the Greater Lawrence, Mass.,
Chamber of Commerce. The Greater-
Lawrence Chamber has been named one
of the top 25 chambers in America. This
award is richly deserved.
The chamber has done an outstanding
job 'of revitalizing the economic life of
the Lawrence area. It has come up with
exciting solutions to the serious eco-
nomic problems facing our area of New
England, and has worked closely with
similar groups in surrounding commu-
nities to meet the challenges of the times
through a program known as "Opera-
tion Bootstrap."
This award is a tribute to the cham-
ber's leadership, to Its membership and
to the community. Similarly, it Is an
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A2636 CONGRESSIONAL RECORD - APPENDIX
down borrowing costs by supporting prices
of Government bonds in the open market.
"We've got the most combat-ready com-
mittee on the Hill," sums up one member.
HOSTILE COLLEAGUES
All this, however, is causing less anxiety in
the banking community than might-be ex-
pected, mainly because of deepseated hostil-
ity among his fellow Congressmen toward
PATMAN theories. There is, to be sure, un-
easiness among some banking groups about
bad publicity. But Mr. PATMAN would have
to marshal more than expected support
either to revamp the banking laws as he
wants or to compel the Federal Reserve
Board to be more obedient to its congres-
sional critics.
Nevertheless, the chairman is sure to raise
a fuss in keeping with the historic PATMAN
penchant, for legislative warfare. He was one
of the eight House Members who voted to
impeach Herbert Hoover in 1932. He quar-
reled bitterly with F.D.R. over a $2.4 billion
bonus bill for World War I veterans. He has
battled with bankers, labor unions, lobby-
ists, editors, fellow Congressmen and count-
less business groups-almost always under
the chivalrous cloak of defending the small
man against the big man.
From a personal standpoint, it is hard to
imagine a more unlikely creature of con-
troversy then the soft-spoken dean of the
Lone Star State delegation. His warm, brown
eyes, boyish grin, snips of gray hair and dark
blue suit smack more of a country parson in
his cotton-growing east Texas bailiwick than
a congressional hell raiser. Even when ques-
tioning Federal Reserve Chairman William
McChesney Martin, his No. 1 adversary, Mr.
PATMAN jousts jovially and never raises his
temper.
COMMITTEE'S BROAD POWERS
Although he has served as chairman of
the Senate-House Economic Committee and
the House Small Business Committee, neith-
er of these units has the authority to orig-
inate legislation. But the banking unit, one
of the most important committees in Con-
gress, has broad jurisdiction over a wide
variety of bills pertaining to banking, mone-
tary, and housing matters. And as chairman,
Mr. PATMAN possesses immense power over
the activities of the 31-member committee
as well as the legislation within its domain.
The liberal Democrat became chairman in
January, succeeding Kentucky's retired 88-
year-old Brent Spence. During. Mr. Spence's
16 years at the helm, the Committee rarely
ventured into storm fields, avoided dramatic
investigations, maintained the smallest staff
of any major congressional committee, and
spent the least money.
Now, under PATMAN prodding, the com-
mittee has become one of the busiest in Con-
gress. The chunky southerner already has
pushed along several Kennedy administra-
tion bills, including ones to provide $50 mil-
lion in subsidies to streamline metropolitan
transit systems and to boost the Export-Im-
port Bank's lending authority by $2 billion,
and to OK more funds for aid to depressed
areas. Mr. PATMAN personally shepherded
through both the committee and the House
the administration's package pill to overhaul
the silver laws.
The installation of the soundproof siding
was, of course, a manifestation of this spurt
in activity. But there are others. To move
more speedily, Mr. PATMAN summoned the
committee into session at 9 o'clock one re-
cent morning-an unheard of hour for
transacting any kind of congressional busi-
ness. While practically all of Washington
officialdom relaxed at the American League's
opening baseball game, Mr. PATMAN rebel-
liously held an afternoon hearing on the de-
pressed areas bill; only 4 of the 31 Members
showed up. "Business as usual with PAT-
MAN means business all the time," cracks a
close associate.
In contrast to the Spartan Spence reign,
the new regime is operating on a 1963 budget
of $180,000, many times greater than
amounts spent in bygone years. The peda-
gogic Mr. PATMAN is busily mapping cross
country itineraries to take his committee
"pupils" on educational trips to Federal Re-
serve banks. The number of subcommittees
has jumped from four to six and new per-
sonnel are streaming in, including three doc-
torate professors of economics. "We haven't
had a Ph. D. around here in 20 years," chor-
ties a veteran staffer.
NEED PEP PILLS _
The invigoration movement draws hurrahs
from many of Mr. PATMAN's colleagues.
"Some of us will need pep pills to keep up
With WRIGHT, but his dynamism 1s going to
make this one of the great committees of
Congress," exults Ohio's Democratic Repre-
senative VANIIc.
But the VANIi view is by no means unani-
mous. Some Members believe Mr. PATMAN
is roaming too far afield, undertaking too
many projects and using the committee too
much for his own designs. Critics contend
Mr. PATMAN'S prejudices against the Federal
Reserve and "big banks" distort his judg-
ment. By adopting what they regard as a
rigid stance, they think the chairman is un-
able to see. monetary and banking policies in
the light of overall, modern-day needs.
Even PATMAN defenders think he goes too far
in his denunciations of the Reserve Board.
Democratic leaders are worried that some
administration bills may go down to defeat
under the PATMAN banner. This concern is
based on the controversy that perpetually
swirls about the old warrior and the sus-
picions that many rank-and-file Members
have against his proposals. Even with the
late Speaker Rayburn's support, the House
twice overwhelmingly rejected PATMAN res-
olutions for full-scale monetary policy
probes. '
Administration masterminds, in fact, are
looking to the Banking Committee's No. 2
Democrat, ALBERT RAINS, of Alabama, for
plenty of help. "He'll have to carry lots of
loads," says a Kennedy strategist. Mr. RAINS
is being counted on to carry the ball during
floor debate on the transit aid measure.
. THE PATMAN RECORD
But the PATMAN record is far from blank
despite the low opinion many Members hold
of. his monetary views. He was coauthor of
the 1936 Robinson-Patman Act designed to
protect small businesses against predatory
pricecutting of merchandise. He helped
guide through Congress legislation author-
izing credit unions for Federal employees
and was coauthor of the 1946 law decreeing
full employment as a national policy. A few
years ago he was a principal sponsor of the
bill setting up a new Federal fund to en-
courage the creation of small business in-
vestment companies.
Years ago, too, Mr. PATMAN originated the
first congressional newsletter, now a must
for nearly all Members. To this day it re-
mains a gem of crackerbarrel comment on a
wide range of topics. A recent issue con-
tained a prediction of the economic outlook
(sluggish unless there's a tax cut) as well as
a tip on a new miniature watermelon (called.
the Craybelle) developed by the Agriculture
Department.
Certainly Mr. PATMAN is one of the most
prodigious workers in Congress, As a 7-day-
a-week man, he grinds out a steady stream
of statements, magazine articles, and even
books. He recently authored a 401-page
tome designed to serve as a guide for
economists and lawyers studying the Robin-
son-Patman Act.
Running through all of this work is the
PATMAN philosophy of low-interest rates, -
more help for small business and suspicion
of big business. Mr. PATMAN never hesitates
April 30
to seek converts and once even tried to put
across his liberal ideas in a serious speech
before the, conservative Daughters of the
American Revolution.
Although many Members don't. buy PAT-
MAN philosophy, he is well liked among his
conferees. He was a close friend of Mr. Ray-
burn and is'held in equal esteem by the
present Speaker, JOHN MCCORMACIc, of Massa-
chusetts. Even critics concede Mr. PATMAN
Is a fair chairman who permits all sides their
Fthe President Planning To Give up
Guantanamo?
EXTENSION OF REMARKS
OF
HON. BRUCE ALGER
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
. Tuesday, April 30, 1963
Mr. ALGER. Mr. Speaker, today on
the floor of the House I expressed con-
cern that the President may be attempt-
ing to soften up the American public to
accept a withdrawal from Guantanamo.
Mr. Speaker, there is enough smoke on
this issue to make us very suspicious
that a fire, in the form of. a deal, has
already been kindled. I hope Congress
and the American people will be suffi-
ciently aroused to warn the President
that no such deal can or will be
tolerated.
The following editorial from the
Dallas Morning News of April 27 states
the feeling, I know, of the majority of
the people from the Fifth District of
Texas and, I am sure, of the overwhelm-
ing majority of the people of the United
States.
The editorial follows:
[Front the Dallas Morning News, Apr. 27,
1963]
GUANTANAMO
The report that the Pentagon is request-
ing $18 million to expand Navy facilities in
Puerto Rico has touched off speculation that
the United States may be preparing to with-
draw from Guantanamo. It is claimed that
President Kennedy may have agreed to pull
U.S. forces out of the Cuban base in his
correspondence with Soviet Premier Khru-
shchev last October, or that U.S. military
authorities are merely preparing an alterna-
tive site in the event that Castro should
,force us out of Guantanamo.
Whatever the actual facts on the Cuban
base, it does seem strange that such a large
increase in our Puerto Rico naval facilities
is being asked at this time. Several Mem-
bers of Congress insist that there is no indi-
cated need for this increase-unless we are
preparing to move Navy and Marine forces
from Guantanamo.
Legally, of course, the United States cannot
be forced out of the Cuban base. In 1903-
after
the Spanish-American War-we were
granted a 99-year lease on "Gitmo." The
original treaty set an annual rent of only
$2,000 for the base, an exceptionally low
figure that was indicative of Cuban grati-
tude to the United States for its help in
winning Cuba's independence from Spain.
In 1934, this treaty was- renewed and ex-
panded, granting the United States a per-
petual lease on Guantanamo which could be .
nullified only by the consent of both Cuba
and the United States or if we voluntarily
abandoned the site.
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CONGRESSIONAL RECORD - APPENDIX A2635
made that more than 3,000 U.B. troops will
join with allies for massive maneuvers In
Thailand, next door to Laos, In June.
NO-NONSENSE BTAND7
In Washington, emergency sessions of the
National Security Council were held. Aver-
ell Harriman, Under Secretary of State, said
in London on April 23: "It is very important
that we make the Communists realize that
we are not going to stand for any nonsense."
President Kennedy sent him to Moscow for
talks with the Russians.
Mr. Harriman earlier had been convinced
that the deal with the Communists to "neu-
tralize" Laos could be made to stick. He had
negotiated a settlement with the Commu-
nists in mid-1962, only to see it violated in
one form or another from the start. Sud-
denly Communist armed forces had taken
the offensive and put themselves In a posi-
tion to dominate that strategic area.
Talk quickly revived that another deal now
might be needed in which Communists
would be given outright control over the
northern half of Laos as they had gained
control of North Vietnam and North Korea.
Military men, however, argued that Commu-
nists. If permitted a secure base in Northern
Laos, would be in position both to step up
their effort to take over Vietnam and to
threaten Thailand Increasingly.
War could spread gradually, involving a
still larger American military effort.
Laos, in other words, is seen to be a very
strategic area. The country by Itself is with-
out economic or political Importance. Its
geography is described as the Important
thing: It lies in the center of the south-
eastern part of Asia that Communist China
covets and expects sooner or later to get.
On the other side of the world-7,500 and
more miles to the east-Cuba also holds a
strategic position.
THE CLOSER DANGER
In Communist hands, Cuba lies athwart
major shipping lanes to South and Central
America and to the Panama Canal. The
location is pictured by naval officers as Ideal
for a clandestine base close to United States
for Soviet submarines that otherwise must
be supplied across thousands of miles of
water when operating off the U.S. coast.
It is this potential as a secret supply base
for missile-carrying submarines of the Rus-
sian fleet that most concerns U.S. defense
officials. A point is made that Russians were
able to sneak into Cuba, itself, and to put
in place batteries of missiles before United
States happened to detect them.
Cuba in Communist hands and under Rus-
sian control, however, is taking second place
to far-off Asia in the calculations of Amer-
ican officials.
In southeast Asia. American military forces
are directly Involved. In Cuba. American
power is being used to protect the Com-
munists against Interference by anti-Com-
munist Cubans.
Castro recently praised the United States
for its effort to keep his enemies under
control.
A CONFUSING SWITCH
It's this contrast between war against
Communists in Asia and a form of coexist-
ence with Communists next door to the
United States that has raised questions.
There are beginning to be hints, however,
that this contrast may not always exist to the
same extent as now.
A point is made that sporadic raids from
uninhabited islands in the Bahamas-with
use of small boats --could have only a
nuisance value without interfering seriously
with the Communist hold on Cuba. But
some American officials point out privately
that Cuba is highly vulnerable to effectively
organized infiltration, internal subversion,
and sabotage-all weapons that the Commu-
nists use freely whenever they get a chance.
LEAF FROM CASTRO'S BOOK
Cuba is plagued by shortages of all kinds,
Oil must come from Soviet sources to be
refined in Cuban refineries that are close
to the coast. Cuba pays her bills to Rus-
sia with sugar. and sugar mills are easily
tampered with. There are opportunities
to organize and to supply guerrilla bands
in the mountainous areas of Cuba-Just
as Castro organized his bands and was sup-
plied from the United States during his suc-
cessful campaign to unseat the anti-Com-
munist Batista regime.
The problem of upsetting communism in
Cuba. however, is complicated, officials say,
by the presence of large Russian military
forces on the island. One mission of those
forces is to make sure than anti-Castro
Cubans do not generate a successful uprising.
SOON FR OR LATER
There are some important U.B. officials who
are convinced that In the end--regardless of
present policies-It is going to be necessary
to threaten to put American troops into
action in Cuba. These officials question the
logic of using U.S. troops to do a job In Asia
while drawing back from Involvement close
to home.
Another factor is advanced by high officihls
of the U.S. Government to explain the con-
trast in policy toward Communists In Cuba
and In Asia-
In Asia, these officials say, the rising
danger is from Red China. The Communists
running Red China are pictured as hard and
willing to assume great risks. They are in
a mood to expand, and they have their eyes
on the riches of southeast Asia-in terms of
food, minerals, and oil.
Cuba. on the other hand, can rather easily
be crushed by United States if the decision
is made.
A DOUBTFUL BALANCE
The position of Soviet Russia in each case
is a controlling factor. -
American officials appear to hope that the
Russians will be able or willing to control
the Red Chinese. It Is to Russia that China
must now look for much of her oil and her
Industrial products.
But Russians also are In Cuba. If the
United States presses too hard to get the
Russians out of Cuba, then the chance to
get Russian help In Asia will be lost. Instead.
the Russians will heat up trouble In south-
east Asia. And, if that is not enough, there
is always Berlin that Russia can beat up. So
the reasoning goes.
In either case, currently It seems in the
opinion of some officials to leave the United
States behind the eightbaii.
EXTENSION OF REMARKS
OF
HON. FRANK J. HORTON
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 2, 1963
Mr. HORTON. Mr. Speaker, before
this month comes to a close, all of us
should pause for a moment and pay trib-
ute to those brave men, women, and chil-
dren of the Warsaw Ghetto, who 20
years ago this month, rose in revolt
against the ruthless oppression of Nazi
tyranny. Theirs is a tragic, heartbreak-
ing story, an all too vivid reminder of
man's inhumanity to man.
The outstanding bravery of these
Polish Jews and their 6 million brethren
who died in Nazi horror camps, cannot
and should not be forgotten. As others
the world over have, let us join in rever-
ence for the memory of these brave
people.
Wall Street Journal Article on the Hon-
orable Wright Patman
EXTENSION OF REMARKS
of
HON. HENRY S. REUSS
OF WISCONSIN
IN THE HOUSE OF REPRESENTATIVES
Wednesday, April 24, 1963
Mr. REUSS. Mr. Speaker, I include
in the RECORD the leading article by Paul
Duke in the Wall Street Journal on the
Honorable WRIGHT PATMAN, chairman of
the House Banking and Currency Com-
mittee. The article describes the unique
qualities of integrity, knowledge, and
dedication of WRIGHT PATMAN.
The article follows:
I From the Wall Street Journal
BANKING BATTLER: REPRESENTATIVE PATMAN
STIRS UP KEY HOUSE COMMITTEE To TEST
DISPUTED IDEAS-NEW CHAIRMAN INVESTI-
GATES BANK REGULATORY POLICIES, DRAWS
14EW BEAD ON FRB-THE Busy EASY MONEY
MAN
(By Paul Duke)
WASHINGTON.-One recent morning a con-
struction crew flied into a congressional of-
fice building and began hammering up
acoustical siding in a third-floor suite. Un-
til a few weeks ago the rooms were graveyard
quiet, but lately the din and clatter had be-
come so loud, that in the words of one
harassed employee, "you just couldn't hear
yourself think."
The sound-softening step is symbolic of
the great goings on these days in the House
Banking Committee. Congressman WRIGHT
PATMAN, the controversial crusader from
Texas. Is transforming one of Capitol Hill's
sleepiest panels into a bustling battleground
for his disputed ideas. As the new commit-
tee chairman, the self-styled champion of
small business is striking swiftly along a
broad front against old enemies in the mon-
etary and banking field.
Mr. PATMAN already is deep into plans for
a scrutiny of bank ownership, ostensibly to
determine whether monopolies exist and
whether the antimerger laws need tightening
to prevent big banks from gobbling up small
banks. He is set to take a searching look
at the bank regulatory policies of U.S. Comp-
troller James Saxon, under fire from many
small bankers; hearings will start today.
.Too, the new committee chairman plans
extensive hearings on this month's report,
by a group under Presidential Economic Ad-
viser Walter Heller, suggesting major changes
in Federal regulation of financial institu-
tions. Mr. PATMAN feels the recommenda-
tions didn't go far enough. He and other
Democrats are hoping to build steam for a
major overhaul of the Nation's banking laws
next year.
On one subject or another, this tireless
investigator expects to hold hearings every
working day in May. Come summer and Mr.
PATMAN Will top things off by fulfilling a
lifetime dream: His own full-scale investiga-
tion of the money-regulating Federal Reserve
Board. As one of the country's foremost
champions of easy money, the 69-year-old
zealot for years has waged a one-man fight
with Federal Reserve officials on various
Issues, notably Interest rate policies and the
board's reluctance to help the Treasury hold
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1-963 CONGRESSIONAL RECORD - APPENDIX A2637
Considering the value of the base and its
strategic location, it would be sheer stu-
pidity to abandon it., An old installation,
Guantanamo today is one of the most mod-
ern American naval bases in the world. Its
facilities are valued at approximately $76
million. It is regarded as an ideal fair
weather training center for the Atlantic
fleet. Its harbor is well fortified and ex-
tensive enough to accommodate 50 of this
country's largest warships. The mere pres-
sence of American forces on Cuban soil, of
course, is of important psychological value
and a tremendous embarrassment to Castro.
That is why Fidel listed U.S. withdrawal
from Guantanamo as one of his five major
demands last October 28. The ultimatum,
however, was primarily a face-saving maneu-
ver` and designed for local consumption in
Cuba. There is good reason to suspect that
Castro is not really that anxious to see the
United States pull out of "Gitmo."
Castro badly needs the American dollars
he receives for our occupation of the base.
Every year Fidel makes a big point of refus-
ing to cash the annual rent checks-now
about $3,400. But he never fails to cash the
much larger check we give him for our water
supply-amounting to about $178,000. Much
more important to him, of course, are the
dollars he receives from the 3,400 Cubans
employed - on the base. The annual payroll
comes to about $7,500,000.
If it were not for his desperate need of
these dollars, Castro naturally would be
anxious to see us leave Guantanamo. He
may, in fact, feel that our departure would
be more valuable than this revenue. And
we can be sure of one thing. If and when
we do leave the base, Castro will blow up
the move into one of the biggest propaganda
victories in history.
That is why we cannot, under any circum-
stances, even entertain the idea of allow-
ing our forces to be pushed off the base,
much less giving up the facility voluntarily.
Small Firm Versus Industry Giant
EXTENSION OF REMARKS
OF
HON. THOMAS P. O'NEILL, JR.
OF MASSACHUSETTS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 30, 1963
Mr. O'NEILL. Mr. Speaker, under
leave to extend my remarks I wish to in-
sert in the RECORD at this point two ar-
ticles which appeared in the Boston
Globe on April 4 and April 5 of this year
concerning the Airtechnology Corp., of
Cambridge, Mass., of -which my good
friend, William H. McMorrow is presi-
dent. I am more than proud of the tre-
mendous courage shown by this small
business outfit in my home city in mak-
ing the decision to go forward against
this giant of. industry and of the great
victory which they have achieved. It is
my belief that it will cheer and
strengthen other small business firms
and I commend the articles for the at-
tention of my colleagues in the House.
[From the Boston Globe, Apr. 4, 19631
DAVID VERSUS GOLIATH: SMALL FIRM SUES
INDUSTRY GIANT
(By Peter B. Greenough)
A Cambridge industrial mouse has roared
back at the lion-mighty General Electric
Co. .
Airtechnolbgy Corp., a smallish elec-
tronics concern, has just won two legal
rounds against GE, If Airtech eventually
succeeds in court (the case is being ap-
pealed), it stands to gain a penalty award
of $128,734.
Nothing phenomenal, but the principle at
stake is very great indeed for Airtech. And
for almost all small businesses, too.
Involved is a civil suit which lawyers here-
abouts term one of the most unusual ever
seen. It comes out of the jungle of current
defense contracting, where little outfits must
fight for every small crumb.
This David versus Goliath tale dates back
a couple of years when AirTech and G.E. got
together on what the Cambridge firm be-
lieved (and the court agrees) was a team
effort for the Air Force.
Under the so-called 477L NUDETS project,
the Air Force sought a nuclear detection
system for its many continental bases. The
idea: locate a nuclear blast, assess the dam-
age and feed it to a computer for evaluation.
The resulting information would automati-
cally be relayed to Air Force's headquarters
at Colorado Springs.
In this system, as proposed by General
Electric, AirTech would supply a key electro.
magnetic sensor under subcontract.
Briefly, things went well for a while.be-
tween the two companies. Then it became
apparent to AirTech people that something
strange was afoot.
"It became reasonably clear to us that G.E.
(through its Defense Systems Division at
Syracuse, N.Y.) planned to go ahead and do
things 'in house,' " says William H. McMor-
row, president and treasurer, of AirTech.
"One of our men went up there, and they
told him that we couldn't meet the delivery
schedules," McMorrow adds.
From then on things deteriorated rather
rapidly. .
"We had certain misgivings about, starting
legal action against G.E. We're small busi-
ness. But we felt so strongly about this that
we had no other recourse," McMorrow
continues.
Sue they did.
Last summer lengthy court hearings went
on here, which tied up AirTech's scientific
people and just about stopped the company
in its tracks.
The testimony of both companies was
taken under consideration by a special mas-
ter appointed by the court: Theodor Chase
of Palmer, Dodge, Gardner & Bradford.
Chase's report was submitted in January
to Judge Reuben L. Lurie of Suffolk County
Superior Court.
Within the last 10 days Judge Lurie issued
an interlocutory degree sustaining Chase's
report, with all exceptions made by defense
counsel overruled.
Highlights of Chase's study show this:
General Electric "did not fully perform
its part of the undertaking,"
A General Electric engineer, W. J. Hynes,
told Owen Cunningham, AirTech representa-
tive, upon receipt of the preliminary Air
Force contract:
"We feel pretty good about it here, and I
want you to know that your people (Air-
Tech) had a heck of a lot to do with our
getting it."
Then, according to AirTech, the runaround
began.
Chase's report touches on the feeling
among AirTech personnel, that "GE had
picked their brains and was now trying to
get rid of them."
A certain amount of candor was exhibit-
ed by GE people on the stand. One acknowl-
edged that the whole matter was "one of
the most fouled-up procurement efforts ever
seen at GE."
Mixed up, and also heated. At the Battle
Green Motel in Lexington personnel from
both companies met and apparently fought
the Second Battle of Lexington.. Chase mere-
ly describes the gathering as "a stormy ses-
sion."
The master's report further shows that -
one GE official (Hynes) later told AirTech
it "would be taken care of if it didn't cre-
ate a fuss." -
Although GE still contests it, Chase has
recognized (and Judge Lurie, too) that there
was a bona fide joint venture effort involved
here. Therefore: -
"Participation in this joint venture im-
posed an obligation upon each of the par-
ties to do nothing inconsistent with - the
interests of the other in the common un-
dertaking."
By a complicated mathematical formula
Chase arrived at the $128,734 damages for
AirTech. Conceivably it could be revised
downward by Judge Lurie in his final de-
cree. -
Since the matter is still under litigation,
General Electric officers decline to discuss
it. Walter Ferris of GE's legal department
at Syracuse acknowledges that it is a "very
interesting case." -
To Ferris' knowledge, there never has been
similar litigation based on the "team bid-
ding approach."
Here there exists an almost gray area of
law and practice, yet one in very real need
of proper. definition.
[From the Boston Globe, Apr. 5, 1963)
EVEN LAWYERS PUZZLED: TEAM EFFORTS DEFY
DEFINITION
(By Peter B. Greenough)
"Well, how-. Gee, I don't know. It's a
normal definition where two or more com-
panies agree to work on a project, isn't it?"
Lest you get the impression that the fore-
going quotation comes from a bumbling idiot,
let me set things straight.
This was an answer I got from an astute
Air Force colonel in procurement at Hanscom
:Field, Bedford, in response to a relatively
simple sounding question:
"How does the Air Force or the Department
of Defense define the term 'team' in defense
production?" - -
I wouldn't have blamed the colonel if he
had suggested that I consult a good lawyer,
not that it could have accomplished much,
either.
Lawyers are equally in a tizzy when it
comes to spelling out things in this area.
Considering the tremendous amount of co-
operative effort between companies and varied
industries in the complex area of systems
development, the fact that a legal void does
exist at all is somewhat astonishing.
This area of confusion bears further con-
sideration in light of current litigation be-
tween AirTechnology Corp., Cambridge, and
General Electric Co. In a column yesterday
I described how AirTech had sued G.E., all
because of the uncertainties involved in
team relationships.
Small businesses are having a rough enough
time, as is, in getting their share of major de-
fense work. This is just another pitfall, but
one that has received little, if any, public
attention.
Lawyers themselves are at a loss for words
in this field (this is possible?). -
Even at General Electric's legal depart-
ment within their electronics systems head-
quarters at Syracuse, there is confusion here.
Through nobody's fault I talked to Walter
Ferris, G.E., lawyer involved in the AirTech
case. Here's what he said:
"What the heck is a team? Team bidding
is not defined anywhere in armed services
literature. There's no official designation
* * * it is a very difficult area."
Warren F. Farr, attorney with Ropes &
Gray, Boston, has also represented G.E. In
this case. While he naturally will make no
comment about the litigation with AirTech
since it has not been concluded, Farr does
admit this:
"If anyone knows what a team relation-
ship is * * * procurement regulations and
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people say they don't know anything. It
is a very elusive type of concept. A very
interesting case."
William H. McMorrow, president of Air-
Tech, doesn't set himself up as any crusader
against G.E. But regardless if his company
wins or loses, it still will serve a useful pur-
pose by helping to bring into the open a
thoroughly confused situation.
"One of the repercussions that should
come from this Is a tightening up of the
relationship between a prime and the sub-
contractor," says Henry W. Ekstrom, man-
ager of AirTech's contract department.
If the Department of Deffnse will now
insist on such a definition (and also per-
haps draw one up), then other little outfits
will not be placed in a similar bind.
AlrTech by no means is the sole victim
of such a situation. It merely got mad
enough to sue.
One lawyer entirely independent of the
case told me this: "This is fairly typical of
how many big companies treat little ones."
Thus a change of rules becomes Imperative.
Forty-one Million Americans in the Lower
Brackets Are Paying for Kennedy's
Spending Spree
EXTENSION OF REMARKS
OF
HON. BRUCE ALGER
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 30, 1963
Mr. ALGER. Mr. Speaker, President
Kennedy can make a heartrending ap-
peal to the loaf-income groups in encour-
aging them to think that all his social
welfare programs are a gift to them paid
for by the filthy rich. At last, the facts
do not support the President. It is those
in the lowest income brackets who pay
for the President's wild spending sprees.
Even in his loudly touted tax cut, it will
be minor for those in the lower brackets
and an actual increase for the middle
income group.
The Kennedy welfare programs are no
gift. Somebody pays and it is the people
the President is seemingly worried most
about who pay the bill. The Kennedy
administration is conducting the great-
est shell game in history and the people
are the victims. Let us wise up and bring
about a return to fiscal sanity by living
within our means as a nation and let the
Kennedy family finance their own works
of charity.
The following editorial from the Fort
Lauderdale News of April 26, shows who
pays and the facts may startle some:
[From the Fort Lauderdale News, Apr. 26,
1963[
WATT A MINUTE, CITIZEN: STOP AND PONDER
How DEEPLY You ARE IN DEBT
We wonder today how many people in this
country who are clamoring for more and
more Federal spending regardless of what it
will do to our national debt realize that it
now takes all the income tax payments of
41 million Americans earning up to $6,000 a
year just to pay the annual interest on the
current national debt.
Think about that statistic for a moment.
It takes the labor and the full income taxes
of 41 million Americans just to pay the in-
terest on our national debt which now
amounts to $10 billion a year.
This is a frightening thing because it
demonstrates the hellbent pace at which we
are rushing toward financial disaster. Yet,
despite the implication inherent in all this,
there Is no inclination to call a halt to Fed-
eral spending. Instead it grows apace and
the few men in Congress who are trying to
stop it and return the country to fiscal sanity
are called stodgy old fogies who don't want
to get the country moving again.
Moving where, we might ask? To com-
plete serfdom of our people to a progressive
Income tax structure that even the spenders
admit is crippling our incentive and destroy-
ing our initiative to work and to produce?
To the mythical "Random Village" that
President Kennedy pictured the other day
where everybody lives the good life through
the splendid generosity of our Federal bu-
reaucrats? To a dream existence where
everybody gets from these same bureaucrats
while nobody pays the piper?
It would be nice if somebody didn't even-
tually have to pay for all the favors and all
the aid that Government dispenses. But as
somebody once said, "There's no such thing
as a free lunch," and our Government has
been living off the cuff for so long a time now
that the idea has spread there Is no limit
whatsoever to the amount of debt we can
pile up and put on the backs of present and
future generations of taxpayers.
To those who might think this present ad-
ministration Isn't being as deceptive as
regards our spending and debt situation as
it has been in regards to the Cuban situation
we recommend the reading of an article In
the May Issue of the Reader's Digest.
Entitled "The Real Truth About the Fed-
eral Budget," this article strips the deception
away from President Kennedy's proposed
$98.6 billion budget and reveals the truth
about the phony economy claims being ad-
vanced by the administration. It reveals
how the budget, itself, Is an almost meaning-
less document as it falls to Include "back-
door spending" which doesn't have to be ap-
proved by Congress and which is merely
tacked on to our soaring national debt.
How many of us, for Instance, know that
whereas Mr. Kennedy's budget pegs spending
at the aforementioned $98.8 billion figure,
actual spending will come closer to $128 bil-
lion? And how many of us know that since
President Kennedy took office defense spend-
ing has Increased by 17 percent while non-
defense spending has Increased by some 27
percent?
Yet. In the face of these figures, adminis-
tration apologists keep on bleating that non-
defense spending Is being held down and that
desirable programs are being curtailed or
postponed.
This is a crock of baloney. No President
In this Nation's history has ever proposed
such a wild-eyed spending program as Presi-
dent Kennedy has presented to the Congress.
It is so fantastic in Its present and future
scope that when Representative CLARENCE
CANNON, of Missouri, who has been scanning
Presidential budgets since some of the
younger Members of the House were In dia-
pers, first saw it. he threw It on the floor
with the-exclamation:
"I've never seen a budget like this In all my
40 years In Congress nor has anybody else."
Men like Representative CANNON and Sen-
ator HARRY F. BYRD, of Virginia, another
budget opponent, are apparently In a minor-
ity, however. A few days ago we saw the
House backtrack on a previous decision and
add another $450 million to a gigantic Fed-
eral aid make-work program for State and
local governments. Acting in the same
spending mood this week, the House ap-
proved a $205.7 million spending program to
provide construction grants and student
loans for medical and dental schools.
it can be argued that these are desirable
programs and perhaps they are. But few of
us in life can afford to satisfy all our desires
as the facts of economic life dictate that we
use caution and prudence in determining
what desires we can satisfy without spend-
ing ourselves into bankruptcy.
But prudence and caution seem to be un-
known words In Washington these days as
regards Federal Government spending. We
have a breed in office that actually believes
the people do not know how to spend their
money for their own good and who think it
Is the Government's duty and prerogative
to take it away from the people and spend it
for them.
To these officeholders and bureaucrats a
huge debt is nothing to worry about as we
only owe it to ourselves and if it takes the
annual tax payments of 41 million Americans
Just to pay the interest on this debt, who
cares?
We happen to care and we think it Is time
millions of other Americans started to worry
about where we are heading. We have got
a bloated Federal Government that is be-
ginning to eat us out of house and home, and
unless its spending appetite Is curbed we
won't have to wait for the Russians to bury
us, as we'll do the planting job all by our
apathetic and happy little selves.
EXTENSION OF REMARKS
OF
HON. WILLIAM FITTS RYAN
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 30, 1963
Mr. RYAN of New York. Mr. Speaker,
yesterday we observed the 15th anni-
versary of Israel's independence. Jacob
Landy, a constituent of mine, has written
a poem which should remind all of us of
the strength of Israel. The poem fol-
lows :
ISRAEL's REBIRTH
Hail to thee, eternal light
Which cruel oppression and armed might
Vainly striving for three thousand years,
Could never extinguish.
All hall thy deathless spirit,
Of freedom and independence,
Which has and still survives,
Indomitable.
Like anvil of best forged steel.
Thou hast withstood all hammers,
Nor been split asunder, by blows
Most vicious.
Scattered like dust by winds of long ago,
Are thy traducers and sometime conquerors;
Yet thou livest on; they were of an age;
Thou, immortal.
Whence came thy strength and courage,
Thy boundless hope under dire adversity,
That at long last, all would be well
With thee?
Yea, despite the wrangle and strife
Of covetous men and envious nations,
Thou surely wilt and must endure.
Verily thou art a troubled world's necessity,
For Israel's mission is peace.
-Jacob Landy.
CHANGE OF RESIDENCE
Senators, Representatives, and Delegates
who have changed their residences will please
give Information thereof to the Government
Printing Office, that their addresses may be
correctly given in the RECORD.
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 1963 Approved For RCe ~ s~ ~~p ?F000200240058-3 - 12 "
tees subsidies and import quotas to Ameri- approved, while 42 percent of the applica- projects, and cooperate in organizing re-
can sugargrowers, Senator EUGENE McCARTHY Cons by whites were granted. Of the money training projects to teach new skills to un-
proposed that the minimum wage set under advanced for farm ownership loans, Negroes deremployed and unemployed farmers, farm:
the Fair Labor Standards Act be substituted received only 4.5 percent; of the money lent workers, and youth.,
for the present vague "fair and reasonable for farm housing, only 6.1 percent. A BETTER LIFE FOR FARM FAMILIES
wage." His proposal failed. In 1962, mini- In this and other Government programs, That such work needs to be done andthat
mum hourly wages for sugarworkers in this the policy of the Federal Government to have additional staff representatives are needed to
highly protected industry ranged from 60 local control has created the problem. Ap- answer increasing requests from other States
was made clear by enthusiastic response to
cents in Louisiana to 95 cents in sugarbeet plications for loans and other Government
fields. In Hawaii, where sugar workers are aid are processed by appointed committees the National Sharecropper Fund Southern
members of the International Longshore- of local farmers, who function without deft- Rural Conference at Bricks, N.C., in Novem-
men's and Warehousemen's Union, the low- nice guidelines and with little Federal super- her 1962. More than 160 people attended
est paid receive $1.46 an hour, plus valuable vision or administrative review. Negroes this pioneering conference, called to inform
fringe benefits. are - almost never represented and play no low-income southern farmers about the new
FEDERAL PROGRAMS part in the decisionmaking of the commit- Federal programs and to discuss how to go
tees, which are ostensibly intended to repre- about obtaining their benefits locally. Par-
Farmers Home Administration: FHA has sent and safeguard the interests of the whole ticipants ranged from an Assistant Secretary
greatly increased its activities and liberalized community. This is, of course, typical of of Agriculture to sharecroppers from Missis-
its criteria in the past 2 years. In 1962, the local power structure throughout the sippi. Others came from Louisiana, Alabama,
FHA granted $754 million in loans to rural South, but its extension to the implements- Georgia, Tennessee, South Carolina, North
families, the largest amount in any 12-month lion of Federal policy frustrates the intention Carolina, and Virginia. Those in official po-
period in its history. Of the 214,000 families of the Congress to aid the very people who are sitions were brought face to face with people
who used FHA facilities in the last fiscal year, most disadvantaged. who live daily with poverty and frustration.
,000 - sere Negro borrowers. erceent over LEGISLATION Proceedings of the conference, entitled "A
sents
is an increase of about 40 percent The Migrant Health Act: The 1962 Health Better Life for Farm Families," have been 1960. fiscal al A
fiscal
Rural Areas Development: The Office of Services Act authorizes up to $3 million an- published and are being widely circulated.
Fayette County, Tenn.: With the help
Rural Areas Development in the Department nually for 3 years for health projects in areas Fa
of USDA and ARA officials, residents of Fop
of Agriculture implements the Commerce with a sizable. influx of migrant workers. sate Count RAeoe hundreds of t of Fa-
Department's Area Redevelopment Adminis- This can be used for such services as family yette County, where of evicted n t
tration projects to help depressed rural areas. clinics which are convenient to migrants and farmers and after ere re uppers were vote have terin Some 2,700 economic development projects regularly scheduled visits by public health years
formed ago
corporation to alt goer new industry
to limit child into the area. The West Tennessee Develop-
Otherole migrant legislation: A camps. a
in the submitted to Rural 317 Areas projects Development nurses
proved, r past l months; an estimated $9 million labor g agriculture passed the Senate and ment Co. grew out of a local, biracial com-
involving et0 m to the floor loor of f the House for action but mittee formed by National Sharecroppers
annd d 45 45,000 new jobs. About 950 $9 industrial went to
A 9 Fund field representative Yancey to provide
or commercial projects were reported in the never came to a vote. Three other bills industrial jobs on a nondiscriminatory basis
planning stage or "underway" in the rural passed the Senate but were stopped in the for persons who are no longer able to make a
South. House by the Rules Committee. These would p
Retraining: The training programs of the have provided aid to States to improve edu- living in agriculture but who nevertheless
Area Redevelopment Administration and the cational opportunities for migrant children, want to remain in the area.
even broader program of the Office of Man- set up an Advisory Council on Migratory CONCLUSION
power, Automation, and Training in the U.S. Labor, and required registration of labor con- At the present time, a major part of Na-
Department of Labor, include provisions to tractors. New bills to help farmworkers in tional Sharecropper Fund goes toward its
raise the skill levels of unemployed and un- these and other areas (such as minimum Southern program. As funds permit, the
deremployed farm workers so that they can wage) have been introduced in the 88th staff will be enlarged to include representa-
qualify for better paying jobs in agriculture Congress. tives in other States, with Mississippi prob-
or industry. They also provide for training NATIONAL SHARECROPPER FUND FIELD SERVICE ably next in line. , Other National Share-
farm youth between the ages of 16 and 22 PROGRAM cropper Fund grants in 1962 were made for:
years. The U.S. Department of Labor reports The National Sharecropper Fund analysis A survey of Louisiana sugarcane workers;
a need for year-round hired farm laborers of a steadily deteriorating economic situation the pension fund for members of the old
able to perform a wide variety of tasks: oper- in the rural South has resulted in a new Southern Tenant Farmers Union; the Na-
ating and maintaining farm machinery, emphasis and expansion of effort. tional Council on Agricultural Life and La-
pruning and cultivating, and making safe use National Sharecropper Fund is stepping bor; the National Advisory Committee on
of chemical insecticides and weed killers. up its program of providing information, Farm Labor; and the Migrant Children's
FEDERAL AID- PROGRAMS NOT APPLIED EQUALLY guidance, and organizing help to local groups Fund.
Most of the southern rural counties eligible throughout the South, to enable them to The National Sharecroppers Fund reports
for Rural Area Development and Area Rede- take advantage of these Federal aid programs and releases are sent to a large number of
velopment Administration aid meet the cri- before they are deprived of their land and newspapers and magazines, libraries, public
homes, or to make alternatives available to officials, and concerned citizens. National
of to t Need because , the abject pheeaiy Sharecropper Fund will continue its efforts famil goes their Negro but most of the aid those already sta. The National to improve the conditions of seasonal and
to the white families. There are about Sharecropper Fund d staff ff works to insure that migratory farm Workeracross the country
1 million rural Negro families (1960), at least - applications for aid that originate outside b back needed legislations ace the supporting
85 percent of them in the South and most of the established local power structure receive y g
these in the coastal plain between southern the same consideration as any others. When union organizing efforts, and providing lit-
Vi. sharecroppers in Mississippi were de- erature and speakers for a growing audience.
cent oft the and eastern Texas. Fifty- tseven 00 0 vied inc 0 It must also look ahead to a steadily declin-
aent r, while e et have 19 per a less than white winter 1962, surplus commodities in ter the ing demand for seasonal workers; to the vir-
after participating gs participating In voter end of sharecropping; and to the dis-
pyul are in only percent of the white drives, National e
otesti possession of the marginal farmer. Alterna-
The discrepancy the bracket. registration with o with other groups in protesting Sharecropper
h is increasing. The me- Fund joined g tives planned now can secure a better future
local power structures to use
t b
ttem
thi
'
y
p
s a
for these orker~ of the lan
than income Of Negrb farm families was 52
moor e + of that of white southern farm fam- denial of Government food as a means of
eat
- - ..
ilies in 1950 but only 45 percent by 1960.
In 1950 the proportion of white southern ture responded by seeing that the commod- WHEN IS THIS ADMINISTRATION
e of the affected
i
n som
farm families who had hot and cold piped ities were distributed
water inside their homes was only seven per- counties. The executive secretary of the GOING TO DO SOMETHING BE-
centage points higher than the proportion National Sharecropper Fund serves as a mem- SIDES TALK?
among Negroes; by 1960 it was 50 percentage her of the National Advisory Committee on (Mr. CRAMER (at the request of Mr.
points higher. The proportion of young peo- Rural Areas Development of the Department MACGREGOR) was given permission to
ple obtaining a high school education has in- of Agriculture.
creased among both groups, but not nearly A second field representative was added to extend his remarks at this point in the
so rapidly among rural Negroes as among the NSF staff at the turn of the year. He RECORD and to include extraneous mat-
rural whites. is Mr. L. S. James, who will work in his home ter.)
The distribution of FHA loans (1959-61) in State of South Carolina to help low-income Mr. CRAMER. Mr. Speaker, I am in-
nine counties of South Carolina, reported in farmers and farmworkers qualify for Fed- serting into the RECORD an editorial
a Southern Regional Council study, is reveal- eras aid programs. Mr. James is cosponsored which appeared in the April 24, 1963,
ing. In five counties, more than half the by the South Carolina Council on Human wwhic of tFort LheeApri 24, News. I
farmers were Negroes, and Negroes made up Relations. Like NSF's Tennessee field rep- am doing the because it dierdal and s. I
at least 39 percent of the farmers in the other resentative, Mr. Allen Yancey, Jr., Mr. James
four counties. Only 29 percent of Negro will help farmers apply for FRA loans, assist fully puts into words what many Ameri-
applications for farm ownership loans were communities in qualifying for RAD and ARA cans have been thinking privately:
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 7036 Approved F 3I RJ/2,bBDPqig 83R000200240058-3 April 30
"When is this administration going to
do something besides talk on Cuba?"
For all those who, like myself, have
deep reservations about the adminis-
tration's policy toward Communist Cuba,
I recommend the reading of the follow-
ing editorial:
WASHINGTON SAYS ONE THING, DoEa ANOTHER,
AND CITIZxws GE'r BEwn,nxaxn, CONrvsED
In all the long history of this country we
don't think there has ever been a time when
our people have been more confused, bewil-
dered, and perhaps just plain disgusted over
the actions of their Government than they
are right now.
We are not a devious kind of people. We
like forthright action and blunt talk. Yet,
what we are witnessing today is anything but
forthright action, and the talk we are hear-
ing from our Government officials is like
something taken right out of Alice in Won-
derland.
One can understand President Kennedy's
reluctance to do anything which even re-
motely might get this Nation Involved In a
nuclear war with Soviet Russia. One can
also understand well enough why the Cuban
situation has to be viewed as just one part
of a global picture.
Yet, if we are going to do nothing about
getting Russian troops out of Cuba, and if
we have decided on a policy of peaceful co-
existence with a Communist satellite In our
backyard, as now appears to be the case,
then why in heaven's name do Mr. Kennedy.
Secretary of State Dean Rusk and other ad-
ministration bigwigs keep on mouthing
phrases and cliches that conflict completely
with their own actions.
For Instance, we have been told time and
again this Nation cannot accept the presence
of Russian troops in Cuba. Presumably, this
means the troops must go or we are going to
do something to force the issue.
But when are we going to do something
besides talk? Admittedly, this Is a touchy
subject for the administration. But one
reason it Is so touchy is that so many ad-
ministration officials from the President
right on down the line have declared the
Russian troops must go, that they are verb-
ally committed to doing something that
actually they are afraid to do. In truth,
they have been caught up by their own
tongues, but Instead of admitting this has
happened they go on talking in the vain
hope that if they talk long enough everybody
will forget a lot of what has been said or
who said It.
Unfortunately for Mr. Kennedy and some
of his bumbling advisers this is not hap-
pening. Our people still remember being
told right from the White House that com-
munism in this hemisphere was not
negotiable. Yet, it has not only been ne-
gotiated but it is now even being protected
by our own Navy and our own Coast Guard
on direct orders from this same White House.
And what about the fairy story of our
Government having nothing to do with the
ransom payments to Fidel Castro? Can any-
body in their right mind believe that New
York lawyer James B. Donovan has not been
representing our Government in his dealings
with Castro? For Government officials to
deny this is absolutely preposterous, yet
they do It with a straight face and then
wonder why people think they are lying
through their teeth.
We can understand why our Government
wants to deny any responsibility for this
shameful deal and particularly when It was
reported a short time ago that Castro got
a cool million dollars in cash out of It for
his own pocket. But why carry on with
such a patent falsehood? Do our officials
believe one deception merits anbther? Do
they think the American people are such
stupid idiots they can no longer put two and
two together and come up with four?
We hope not, but the more we hear out
of Washington these days the more we be-
come convinced this is the prevalent atti-
tude and particularly among the shiny domes
in the State Department who have made
such an incredible mess of things that most
Americans now have to pinch themselves to
realize it all isn't just a horrible dream.
Perhaps we are overly bitter, but we think
It is about time the American people did get
bitter over what is happening to this great
country because their leaders are too fearful
to do what needs to be done.
Words can never substitute for deeds no
matter how brave, how noble and how
resonant the words sound. And the trouble
with us today is that we have too many
men in high places who are so charmed
with the sound of their own words that they
are even deceiving themselves on what the
words mean.
We don't think there is a person In this
country who Isn't fearful of what another
war might bring. But there are times when
fear of war can be carried to the point where
it is just as destructive to a nation's inter-
ests as war itself and we may well be reach-
ing that point in this Nation right now.
We have talked big and we have acted
mighty small. Call that restraint if you will
but to many, many Americans there is an-
other word for it and it is not a nice one.
The people know this only too well and
that is the reason they are as confused, be-
wildered and disgusted as they are right now.
BRAZIL AGREEMENT TO TRADE
WITH RUSSIA FOLLOWS U.S. AID
(Mr. CRAMMER (at the request of Mr.
MACGREGOR) was given permission to ex-
tend his remarks at this point in the
RECORD and to Include extraneous mat-
ter.)
Mr. CRAMER. Mr. Speaker, on March
18, 1 discussed on the floor of this body
the administration's policy concerning
Brazil and specifically the multimillion
dollar U.S. loan for which the Brazilian
Finance Minister, San Tiago Dantas, was
at that time negotiating.
In my remarks, I quoted the following
United Press International story from
Rio de Janeiro:
RIO DE JANLIEO.-Brazil is about to sign a
long-term $160 million a year trade agree-
ment with the Russians as part of a 3-year
plan the United States will be asked to help
finance, it was reported today.
Government sources said they do not ex-
pect the United States to press for curbs on
Iron Curtain trade which will be approxi-
mately doubled by the new agreement and
may increase to as much as $300 million a
year by 1065.
A mission headed by Finance Minister San
Tiago Dantas Is to leave soon for Washing-
ton to seek liberalized terms on existing
loans and $1.5 billion In new U.S. loans and
Investments over the 3-year period.
Likewise, in the Evening Star of March 11,
as a result of an Interview with Finance
Minister Dantas this was reported:
"Brazil's Finance Minister said today that
part of the financial help he Is seeking here
would be used to develop trade with all coun-
tries-including Russia.
"Francisco San Tiago Dantas made that
statement to newsmen after conferring at
the White House with President Kennedy.
"Air. Dantas, a former Foreign Minister for
his government who voted against the ex-
pulsion of Cuba from the Organization of
American States, said of his talk with Mr.
Kennedy:
"'I think it was a very Interesting con-
versation and I hope that my visit will be
helpful for the mutual understanding be-
tween our countries. We had a general pic-
ture of the situation and before I leave for
Brazil we will have a new talk.'
"A reporter asked whether 'some of this
loan you are seeking from the United States'
would be used to help develop trade with
Russia. No, Mr. Dantas replied, 'with all
the countries.'
"'Including Russia?' he was asked.
"'Including Russia,' he replied.
"Mr. Dantas is reported to be hoping to
persuade the United States to add some $84
million to the $553 million in U.S. aid
given Brazil since 1851, and to obtain a
postponement of the $450 million Brazil is
due to pay to the United States this year on
its debts.
"He said that in his talk with Mr. Kennedy
there was mention of a visit to Brazil. No
date has been fixed he said, but Mr. Ken-
nedy confirmed that it would be this year."
On March 16, I made a request through
Mr. Moscoso's office that I be informed
concerning the requests that had been
made by Brazil as to loans and aid and
also what was being discussed with re-
gard to trade between Russia and Brazil.
I was denied any information other than
that negotiations were underway.
Although the State Department
would not admit it at the time for fear
of rightful indignation by the American
taxpayer, they obviously knew that even
while negotiating this loan negotiations
were underway to increase Brazil's trade
with Russia. No one can deny that the
U.S. loan will be used, partially at least,
to enable Brazil to carry out its end of
the deal, witness subsequent events.
On April 21, 1963, the following very
revealing Associated Press story confirm-
ing my charges appeared in the St.
Petersburg Times.
At this point, I am inserting this
article in the RECORD:
BRAZIL SIGNS TRADE PACT WITH RUSSIA
RIO DE JANEIRO, BRAZIL..-Brazil signed a
new 5-year trade agreement with the Soviet
Union yesterday. A Brazilian official indi-
cated it might be expanded into an economic
and technical assistance program with the
Russians.
The trade agreement calls for an exchange
of more than $600 million worth of goods in
the next 3 years. Trade for this year will
amount to $160 million-more than double
that of last year. It will Increase to $200
million next year and $225 million in 1965.
Ironically, the terms were spelled out in
U.S. dollars.
Brazil will export coffee, cacao, and cotton
to Russia. The Russians will send petroleum
and wheat, two chief Brazilian imports, plus
manufactured goods and goods of produc-
tion.
The Brazilians tacked onto the agreement
a guarantee that the Russians would not
resell any of the Brazilian products to other
countries. There had been local newspaper
reports the Russians would sell the coffee
to Cuba.
Brazil began trading with the Soviet Union
In 1959 on a small scale. The exchange of
goods since then has amounted to about
$145 million.
United States-Brazilian trade for 1962 alone
amounted to $1.15 billion worth of goods.
But Finance Minister Francisco San Tiago
Dantas gave every Indication Brazil wanted
to expand economic ties with the Soviet
Union,
"Brazil finds In the Soviet Union a market
of unforeseeable potentiality not only for
coffee and other tropical products, but even
for consumer goods manufactured in our
country," San Tiago Dantas said.
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House of Representatives
The House met at 12 o'clock noon.
The Chaplain, Rev. Bernard Braskamp,
D.D., offered the following prayer:
Isaiah 55: 6: Seek ye the Lord while
He may be found, call ye upon Him while
He is near.
Eternal and ever-blessed God, we
thank Thee for this new day, calling
upon us to be grateful for the joys which
cheer us and for the trials which teach
us to put our trust in Thee.
We humbly acknowledge that life often
seems to be full of hardships but may
we never allow their hardness to get into
our hearts and fill them with weariness
and wretchedness.
May we be numbered among the seek-
ers and finders of God in order that we
may learn the meaning and value of life
and know the secret of carrying on faith-
fully and courageously.
Gird us with strength and sturdiness
of faith for we know - that- if our faith
holds then the way of life before us will
brighten but if we lose our faith then
we will stumble and stagger.
Hear us in Christ's name. Amen.
THE JOURNAL
The Journal of the proceedings of yes-
terday was read and approved.
CORRECTION OF ROLLCALL
Mr. ARENDS. Mr. Speaker, on roll-
call No. 31 I am recorded as being 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. Is there objection to
the request of the gentleman from Il-
linois?
There was no objection.
Mr. NIX. Mr. Speaker, on roileall
No. 31 I am recorded as being absent.
I was present and answered to my name.
I ask unanimous consent that the perma-
nent RECORD and Journal be corrected
accordingly.
The SPEAKER. Is there objection to
the request of the gentleman from Penn-
sylvania?
,-There was no objection.
TUESDAY, APRIL 30, 1963
The other day in London, on his way
to Moscow to cringe and beg once again,
Averell Harriman said:
It is very important that we make the
Communists realize that we are not going
to stand for any nonsense.
The only thing Mr. Harriman did not
take with him was his umbrella.
If there is any combination of words
that the Communists do understand it
is that this kind of gentlemanly nicety
means once again that we are unwilling
to stand up and be counted for freedom.
To say we will stand for no nonsense in
Laos and do nothing about Communist
military operations in Cuba is worse
than the language of Munich, because
it deceives the American people. I sup-
pose we should come to expect this from
the Kennedy administration because it
has happened so often.
While Kennedy pussyfoots Communist
ships continue to dock in Havana. Com=
munist personnel and goods of war and
potentials of wcr continue to be ac-
cumulated in our own backyard by the
Godless punks who plot our destruction.
Mr. Speaker, whatever the Senate does
or does not do, whatever the President
does or does not do, I say shame on this
House of Representatives for failure to
urge the Executive to run the Commu-
nists out of Cuba with the full force and
authority of the United States of
America. Let us put politics aside long
enough to tell the White House, as that
branch of the Government closest to the
people, our people want communism out
of Cuba. Every day that we delay now
in ending- Communist preparations In
Cuba will eventually cost untold added
numbers of American lives.
CALL OF THE HOUSE
Mr. CEDERBERG. Mr. Speaker, I
make the point of order that a quorum is
not present.
The SPEAKER. Evidently a quorum
is not present. I -
Mr. ALBERT. 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 :
The SPEAKER. On this rollcall 384
Members have answered to their names,
a quorum.
By unanimous consent, further pro-
ceedings under the call were dispensed
with.
SPECIAL SUBCOMMITTEE INVESTI-
GATING HIGHWAYS
Mr. FALLON. Mr. Speaker, I ask
unanimous consent that the Special Sub-
committee Investigating Highways, of
the Committee on Public Works, have
permission to sit this afternoon and the
rest of the week during general debate.
The SPEAKER. Is there objection to
the request of the gentleman from Mary-
land?
There was no objection.
CORRECTION OF ROLLCALLS
Mr. ABBITT. Mr. Speaker, ?on roll-
call No. 20 I am not recorded. I was
present and voted "yea." I ask unani-
mous consent that the permanent REC-
ORD and. Journal be corrected accord-
ingly.
The SPEAKER. Is there objection to
the request of the gentleman from Vir-
ginia?
There was no objection.
Mr. SELDEN. Mr. Speaker, on roll-
call No. 31 I am recorded as not pres-
ent. I was-present and answered to my
name. I ask unanimous consent that the
permanent RECORD and Journal be cor-
rected accordingly,
The SPEAKER. Is there objection to
the request of the gentleman from Ala-
bama?
There was no objection.
Mr. GLENN. Mr. Speaker, on rollcall
No. 30 1 am recorded as voting "nay."
I was not present and did not vote. I
ask unanimous consent that the per-
manent RECORD and Journal be corrected
accordingly.
The SPEAKER. Is there objection to
the request of the gentleman from New
Jersey?
There was no objection.
~--/' SHAME
(Mr. WYMAN asked and was given
permission to address the House for 1
minute and to revise and extend his re-
marks.)
Mr. WYMAN. Mr. Speaker, sooner
or later the United States must move
on Cuba. There is no use waiting for a
trumped-up excuse.
Castro's Moscow reception is an in-
sult to every American citizen. Our peo-
ple cry for an end to the Communist
military buildup in Cuba:
6990
[Roll No. 34]
Alger
Forrester
Miller, N.Y.
Anderson
Gary
Nedzi
Ashley
Gavin
Osmers
Aspinall
Hagan, Ga.
Pillion
Beermann
Hardy
Powell
Buckley
Healey
Rich
Cameron
Hebert
Rivers, Alaska
Celler
Henderson
Rivers, S.C.
Chelf
Hoffman
Rogers, Tex.
Clancy -
Jensen
Roosevelt
Clark
Johansen
Shelley
Colmer
Lennon
Staebler
Davis, Tenn.
Lesinski
Taft
Dawson
McDade
Walter.
Dent
Macdonald
Willis
Fino
Miller, Calif.
Wilson, Bob
COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE
Mr.- FRIEDEL. Mr. Speaker, I ask
unanimous consent that the Committee
on Interstate and Foreign Commerce
have permission to sit today during gen-
eral debate.
The SPEAKER. - Is there objection to
the request of the gentleman from Mary-
land?
There was no objection.
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tion of the criminal law which Is not affected
by preoccupation with economy of money
and economy of human feeling. That our
wealthy society approaches its responsibili-
ties in forma pauperis, as It were, is a na-
tional scandal. It daily contradicts the
democratic humanism under which we pro-
fess to live.
While we debate how and whether to at-
tack the roots of the problem, what measures
do we and should we take against those who
endanger us by violent crimes? No one
would deny that we need vigorous law en-
forcement. But should this entail, for ex-
ample, the use of terror evoked by the threat
of setting beasts against human beings?
I refer, of course, to the use of police dogs.
Although I am not aware that this use has
reduced the crime rate, the police assert that
it is effective. Assume for the moment that
It Is. A full-scale reign of terror might be
effective, too. But could we respect our-
selves if we instituted one? Can we pretend
that resort to such tactics will foster respect
for the law and not merely respect for brute
force? By measures such as these, perhaps
you can force even the most unsocialized and
antisocial people into a kind of submission-
and not have to bother to look for the rea-
sons for their plight. But at what a price.
As a practical matter, the head of one munic-
ipal police force has explained to me, only
respect for the law can insure public safety
upon the thousands of city blocks of a large
metropolis. It isn't feasible to maintain a
policeman on each block 24 hours a day, even
If that were thought desirable.
Many people persist in thinking that with-
drawal of legal rights and safeguards from
those accused of crime would have a bene-
ficial effect. We are told that crimes cannot
adequately be solved if the police are not
permitted to make arrests for investigation.
And we hear that the rules established In
the Mallory and Durham decisions Increase
our crime rate by enticing offenders into the
District of Columbia from outlying areas. I
doubt that the perpetrators of crime calcu-
late nicely the length of time during which
they may be interrogated by the police be-
fore deciding where to snatch a purse, or
consider that, if caught, the chance of being
sent to a mental hospital instead of a prison
may be greater here than it would be else-
where.
I suspect that the causes of aberrant be-
havior run a good bit deeper than this, and
that the factors which trigger it are less
subject to rationalization. But suppose I am
wrong. Suppose, for instance, it could be
shown that the Durham rule Increases the
crime rate. Then we should have to weigh
the morality of punishing mentally III peo-
ple by prison or by death. Perhaps we would
even go so far as to abolish the Insanity de-
fense. But, as Justice Cardozo remarked:
"if insanity is not to be a defense, let us say
so frankly and even brutally, but let us not
mock ourselves with a definition that palters
with reality. Such a method is neither good
morals nor good science nor good law."
Some of the measures which are advocated
to deal with the problem of crime raise seri-
ous Issues under our Bill of Rights. We have
generally assumed that we are not subject to
arrest unless the police have probable cause
to think we have committed a crime. But
the police tell us they need to make arrests
without probable cause and solely for inves-
tigation in order to solve crime. Such expe-
rience as we have had since the District
Commissioners' courageous action to halt
arrests for Investigation does not bear them
out. But even if the position of the police
should later prove to be factually correct. we
should have to decide whether such arrests
violate the fourth amendment. as the local
bar Is convinced that they do; and if so, then
whether the fourth amendment must be
abandoned in an attempt to stem the crime-
wave. But we should heed the warning of
Justice Douglas in Jones v. United States
that "though the police are honest and their
alms are worthy, history shows they are
not appropriate guardians of the privacy
which the fourth amendment guarantees.-
I urge that we face the constitutional is-
sues which lurk In some of the proposed
solutions to the crime problem. I do not
mean that we should see If the words of the
Constitution can be juggled so as to reach
a desired end, but whether what is planned
would In fact offend the letter and the spirit
of the Constitution. I suspect that sub rosa
infringements of constitutional guarantees
are more dangerous than frontal attacks.
With the latter we can see just how far our
basic principles are being surrendered: with
tht former. the erosion may go a long way
before.we understand what to happening.
We should he aware that If the protections
of the Bill of Rights are restricted we shall,
In practice, be affecting directly the rights
of only one section of our population.
When we talk about arrests for Investiga-
tion, lengthy police interrogation prior to
arraignment, and the like, the subject under
discussion is not you or me. We don't get
arrested without probable cause because, to
put it plainly, we don't look as if we would
commit acts of violence and we do look as if
It might not pay to trifle with our rights.
Nor would you or I be subjected to long In-
terrogation by the police without the bene-
fit of counsel. Nor do you and I live In
neighborhoods where the police dragnet is
used, and where suspects are subjected to
wholesale arrest.
So the Issue really comes down to whether
we should further whittle away the protec-
tions of the very people who most need
them-the people who are too ignorant, too
poor, too ill educated to defend themselves.
On Law Day It is appropriate to inquire
whether we can expect to induce a spirit
of respect for law in the people who con-
stitute our crime problem by treating them
as beyond the pale of the Constitution.
Though the direct effect of restricting con-
stitutional guarantees would at first be lim-
ited in this way, indirectly and eventually
we should all be-affected. Initially the ten-
tacles of incipient totalitarianism seize only
the scapegoats of society, but over-time they
may weaken the moral fiber of society to the
point where none of us will remain secure.
A debate earlier this month at a meeting
of the District of Columbia Bar Association
showed the healthy concern of the legal pro-
fession with the perennial and inevitable
conflict between police demands and consti-
tutional mandates. The overwhelming vote
which followed that debate demonstrated
that lawyers are still In their rightful place
at the forefront of the movement to protect
civil rights. There could have been no better
prelude to law Day than that.
Our attitude toward crime reflects our
lcw of the value of the Individual in society.
In our deepest democratic and national
commitments, we are a society of individuals.
It is for the protection of individuals and of
society that one who is accused of crime is
deemed Innocent until proved guilty and is
afforded all the other legal safeguards. In
protecting him, we protect ourselves. In a
sense the entire system of criminal juris-
prudence is symbolic, since every part of It
stands for something more than Itself;
namely, the preservation of the worth of each
individual In the society of individuals. We
must deter not only crime, but also the de-
basement of the individual.
ADJOURNMENT TO 11 A.M.
TOMORROW
Mr. MORSE. Mr. President, in ac-
cordance with the order previously en-
tered, I move that the Senate adjourn
until 11 o'clock tomorrow morning.
The motion was agreed to; and (at 5
o'clock and 59 minutes p.m.) the Senate
adjourned, in accordance with the order
previously entered, until tomorrow,
Wednesday, May 1, 1963, at 11 o'clock
a.m.
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