PROPOSED JOINT COMMITTEE ON THE BUDGET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500290001-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: December 17, 2003
• Sequence Number: 1
• Publication Date: February 17, 1965
• Content Type: OPEN

moved For Release 2004IQjI WApO 4 Q5p9?2"Pfr5
propriations to take care of any obliga-
tions required to meet retirement pay-
ments, But also I believe it would be
much wiser and better financial business
to heed the suggestions of the Board of
Actuaries and of the Civil Service Com-
mission that legislative action be taken
before the emergency arises. That is
why I hope that Congress at this session
will give favorable consideration to pro-
posed legislation which would provide a
solution of the situation on a gradual
basis over a period of years.
TRIBUTE TO SALVATION ARMY
Mr. CARLSON. Mr. President, this
year, the Salvation Army, which has
rendered humanitarian service through
peace and war, will be observing its cen-
tennial,
On July 2, the Salvation Army will
celebrate its centennial anniversary at
Westminster Abbey, London.. Celebra-
tions will also be held not only in our own
Nation, but in many countries of the
world. The entire year of 1965 might
well be devoted to commemorating the
founding of this great organization.
The Salvation Army is 'active in 69
countries throughout the world, includ-
ing 11 In Europe. It uses 162 languages
for preaching the Word. It operates
from about 18,000 centers, including more
than 2,000 social. institutions, and it has
nearly 900 day schools, mostly in non-
Christian lands. Nearly 40,000 bands-
men and 16,000 boys play Salvation
Army music.
The Army operates more than 3,000
welfare institutions, including 31 general
-,hospitals, 70 clinics, 367 hostels for home-
,less men and women, 66 employment
bureaus, 88 maternity homes for unwed
mothers, 38 maternity hospitals, 145
children's homes, 30 boarding schools,
115 camps, 6 leprosaria, 10 institutes for
the blind, 30 centers for alcoholics, and
51 residence hotels.
The original aim of the Salvation
Army was the saving of souls and ex-
posing evil social conditions. These ob-
jectives have not changed, but the meth-
ods of dealing with these problems have
been modernized to meet present-day
conditions.
Th basic problems which faced Gen.
William Booth, the Army's founder, still
exist today. His outstanding work is
carried on now by thousands of salva-
tionists who are keeping contact with
the common people.
Today the Salvation Army has more
than 5,000 officers In the United States
alone, and 8,072 work and worship cen-
ters with 283,109 members there.
The millions of American men and
women who served in our Armed Forces
will never forget the kindly word and
warm welcome from the Salvation Army
personnel-the friendly smile of. the Sal-
vation Army lass-the doughnuts and
coffee-tpe encouragement and inspira-
tion they received In training areas and
on the battlefield in every sector of the
globe.
Recently the Salvation Army in my
own State of Kansas was called on and
rendered outstanding service during one
of the most disastrous air crashes in our
State's history.
Capt. Ramon L. Wert, area director for
the Salvation Army Civil Defense Unit
in Wichita. Kans., advises me that on
January 16, on the day of the crash, they
immediately set up operations in the
area which was so badly devastated.
They continued their work in this area
for 6 full 24-hour days.
Captain Wert wrote me as follows:
On Sunday, it was ascertained that we
would be there at least 4 or 5 more days and
that we would need supplies. A plea for
supplies was issued via the TV stations and
radio stations at 3 P.M. .Sunday, January 17,
1966. The response was so overwhelming, so
much was given that we had to ask the TV
and radio media to discontinue our distress
call at 5:30 p.m., Sunday, January 17, 1965.
So many people came direct to the disaster
area, bringing their donations, that they were
blocking the streets. All in all, the people
of Wichita donated over 9 tons of food-
stuffs, including canned goods, bread, dough-
nuts, chile, hot chocolate, coffee, cakes, pies,
milk, orange juice, soups, cups, napkins, etc.,
ad infinitum.
Captain Wert also wrote in his report
of the outstanding assistance they re-
ceived from Salvation Army units and
citizens generally in Wichita and other
areas.
Here again the Salvation Army proved
its effeptiveness in Mime 6f emergency.
Mr. McCLELLAN. Mr. President, the
first bill passed by the'Senate this year
was S. 2, a bill to create a Joint Com-
mittee on the Budget. This marks the
seventh time that I have offered this
proposal and the seventh time that it has
been adopted by the Senate since 1952.
The measure has consistently received
the unanimous support of the Members
of this body and continues to do so, as
evidenced by the fact that it was spon-
sored by 77 Senators this year. The bill
has not heretofore, except for the first
time it passed, had a vote cast against It.
I regret to say, however, that the other
body has not yet manifested the inter-
est or given the support to the bill that it
deserves. This year we are hoping for
passage by the House. Our constitu-
tional responsibility I or appropriating
funds for the operation of the Govern-
ment increases with each dollar added
to the budget. In these days of $100 bil-
lion budgets we need a Joint Committee
on the Budget, staffed with nonpartisan
fiscal experts, to help us discharge our,
obligations to the taxpayers more intel-
ligently and prudently than is possible
under the present system.
Mr. President, support for this measure
appeared in an editorial of the Washing-
ton Post on Sunday, February 14, and I
ask unanimous consent to have this ar-
ticle, calling for the enactment of S. 2,
printed at this point in the RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
[From the Washington (D.C.) Post, Feb. 14,
19651
MR. MAHON's OPPORTUNITY
The House Appropriations Committee has
a unique opportunity for statesmanship un-
der Its current chairman, Representative
(isoacs H. MAIDON, For many years the San-
2731
ate has been working for the creation of a
Joint Congressional Committee on the
Budget with a staff of professional experts
who would study spending programs and
help Congress with its appropriation prob-
lems on a year-round basis. The House Ap-
propriations Committee under Mr. MArrON's
predecessor Showed no interest. With the
more cooperative spirit that now prevails,
there is once more hope that a professional
staff of budget experts serving both houses
will be created.
Recently the Senate passed a bill for this
purpose. It is the seventh time it has done
so since 1962. An accompanying report
points out that the bill would avoid the dup-
lication of staff work, would stimulate joint
hearings on appropriation bills and thus
speed the legislative process. Assurance is
given that the proposed Joint Committee on
the Budget is not designed to interfere with
any prerogative which the House now pos-
sesses, such as the right of initiating money
bills.
Students of Congress have long urged this
reform as one of the most effective means of
facilitating the study of our $100 billion
budgets. Mr. MaxoN could render a great
service to his fellow Members of Congress
and to the country by putting aside preju-
dices of the past and sponsoring this bill on
its merits.
INTER-AMERICAN DEVELOPMENT
DAM
The PRESIDING OFFICER (Mr.
HARRIS in the chair.) The Senator from
Ohio is recognized.
Mr. LAUSCHE. Mr. President, pend-
ing on the Senate Calendar is S. 805, a
bill to increase the resources in the fund
for special operations of the Inter-Amer-
ican Development Dam. The bill would
authorize the Federal Government to
subscribe $750 million to this bank In
the next 3 years, at the rate of $250 mil-
lion a year.
I voted against the proposal in the
Committee on Foreign Relations. I was
the only one who did so. At first, I indi-
cated my approval of the bill. Later I
called in to change my vote. I did so be-
cause subsequent to the meeting which
I attended, testimony was given concern-
ing the adverse impact that this au-
thorization, if carried into effect, would
have on the imbalance in our interna-
tional payments, which already is a very
acute problem, as my colleagues well
,know.
A representative of the State Depart-
ment testified that 80 percent of the $750
million would be spent in buying prod-
ucts made in the United States, That
seemed acceptable to me. I thought that
the impact on the imbalance in pay-
ments would be $150 million at the most.
However, a transmitted letter from the
International Economic Policy Associa-
tion was presented before the committee.
I assume that the speed with which the
bill was passed made it impossible for
this agency to appear and testify. This
association, through its representative,
points out in its paper that the adverse
impact on our imbalance in payments
will probably be 40 or 50 percent, instead
of the 20 percent that was described at
the hearing when I was present. If it is
a fact, it is a serious one. We are now
in the process of removing the first leg
from the support of our dollar currency.
That bill, in which the 25-percent sup-
port of deposits of member banks in the
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 CggNGRESSIONAL RECORD - SENATE February 17
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Federal Reserve system is involved, will thinly seems inappropriate rHence the adverse impact on the U.S. balance
be up for hearing. Sign borrowing in U.S. capital markets and of payments may be on the order of 40 or 50
removed the 25- apply capital controls to long-term bank percent of the U.S. contribution (i.e., $300 to
support have removed the loans, while at the same time requesting $375 million) instead of the 20 percent (i.e.,
When percent we gold shall
$760 million for the Inter-American De- $160 million) which Secretary Dillon Bug-
next step will be to remove the 25-per- velopment Bank with its concomitant, ad- gents.
cent gold support on the currency of the verse Impact on the U.S. balance of pay- PREVIOUS HISTORY OF THE IMPACT OF THE
Nation. All of this is the result of the rents. OPERATIONS OF THE WE ON THE U.S. BALANCE-
fact that we are spending more dollars BALANCE-OF-PAYMENTS EFFECT OF THIS Or-PAYMENTS POSITION
abroad than foreign nations are spend- PROPOSAL Since 1961 when the Bank started In oper-
ing In the United States. Our gold re- According to Secretary Dillon's testimony, ation, the United States has paid to the
serves are down to $15 billion. Twelve the adverse balance-of-payments effect of Bank the following amounts: (1) $150 mil-and
Pro-gin-
1962 OR and one-half billion of that $15 billion Secretary stated before $150 a million. on capital (2g) $1960, 1961 394 mill on in the Sociapaid
we now earmark to support the Federal eral y Re$eTV? System's operations, mittee on Banking and Currency on Febru- Pens Trust Fund (SPTF) In 1961; (3) $100
The $2.5 billion are available to meet ary 3, 1966, that the Department of the million to the Fund for Special Operations
Treasury intends to reach an agreement in 1961; (4) $50 million to the FSO in 1964;
the claims of $25 billion held by short- with the IDS to the effect that approxi- (5) $131 million to the SPTF in 1964. This
term creditors throughout the world. To mately 80 percent of the appropriated funds makes a total of $825 million. Added to this
me there is no more Serious problem con- will be used for procurement in the United enumerated outflow of dollars is $225 million ted in the
United fronting 8the ty-than whatt the threat
section I can which done prohibits members of Stat s dun ng 1962-64.oaDuring that sa e
happen the dollar. dollaollarr.. what
The pensioners, is gsito tO the IDB from imposing restrictions of any period only $47.6 million worth of BOB bonds the annuitants, the holders of Govern- - kind upon uie by the bunk of more than 50 were floated in the Western European n
1n
pert ercent t of its contributions to its quota tries of Italy (April 5, 1962-$24 million in
melt bonds, people with bank deposits in the FSO. lire), Germany (July 7, 1964-$15 million In
accumulated to carry them, in some de- The resolution of the Board of Directors of marks), and England (September 2, 1964-
gree, through their old age, are not con- the IDB entitled "Increase of Resources of $8.4 IDB milhas lion received n pounds). That means that
from h
sorous of the fact that we are in the first the Fund for Special Operations" made at United States
e total resources amounting
steep of setting Into motion forces that the April 1964 annual meeting of the IDB U U
are going to erode away the buying power states that will the additional csosntrribu1tiionsse to to approximately $1,398 million to use in its
of f the dollar. currency" not covered by the provisions of Secretary Dillon stated in testimony be-the If the bill, on which hearings are to article V, section 1(b). According to article fore this committee on December 4, 1963,
be held, becomes law, which will result V. section 1(c), such "member's currency" that approximately 47 percent of all procure-
in an additional $375 million in our im- may be used by the Bank or any recipient ment both identified and unidentified, stim-
balance in international trade payments, from the Bank for payments In any country ulated by IDB loans has gone to the United
I respectfully submit that we shall merely without restriction of any kind, unless the States. This would mean that of $1,165.5
aggravate the grave problem confronting member notifies the Bank of its desire that million a in total IDB loans approved as of
the people of this Nation, such currency or a portion thereof be re- December 31, 1964, approximately $647.8 mil-
l contemplate making further inquiry stricted to procurement in the member lion was procured in the United States. Yet
country. we have noted that the IDB has obtained
or ther the impact will be $150 Secretary Dillon has stated that an 80-per- $1,050 million from the United States to use
as to-
million or whether it will be more. cent tying agreement has been discussed In its lending operations. That leaves ap-
I therefore ask unanimous consent that with the Bank. It would appear to be a proximately $503 million U.S. dollars unac-
the statement of the International Eco- sounder method of proceeding to have this counted for.
nomic the RECORD that printed agreement formalized before the
wor h of hcur-:
ates the requested funds. Congress it approximately b$110 mile nh' ere
have the benofthefit of the my colleagues
the the benefit statement, may y p opPr
statement, nt. would appropriate for the United States available for commitment the IDB rencies on , the state- to exercise Its right under article V. section to to conduct its ts three lending Operations-
There
ment was being no ordered to objbeectiprinted in the (1) (b) (i) to tie to U.S. procurement 50 per- ordinary capital, FSO and SPTF. Of that
cent of any future contributions to the amount approximately 87 million was in d01-
REdORD, hs follows: Bank's paid-in capital. lays, or hard currency convertible into.dol-
STATEMENT OF THE INTERNATIONAL ECONOMIC There is, secondly, good reason to believe lars, and approximately $23 million worth
POLICY ASSOCIATION SUBMITTED TO THE that the negative impact of this proposal was in local currency' Assuming that 47
SENATE FOREIGN RELATIONS COMMITTEE ON upon our balance-of-payments position will p~rcent of those remaining funds are used for
8. 805, A Bat To INCREASE THE RESOURCES be greater than 20 percent of the U.S. con- U.S. procurement, that will mean an addi-
OF THE FUND FOR SPECIAL OPERATIONS OF tribution of $750 million (i.e., the untied por- tional $52 million will flow to the United
THE INTER-AMERICAN DEVELOPMENT BANK, tion). As was pointed out by Congressman States. Subtracting this figure from the
FEBRUARY 8, 1065 W. E. BROCK, Republican, of Tennessee, in $503 million unaccounted for dollars con-
S, 805 would empower the U.S. Governor the hearings on February 3, 1965, many IDB tributed by the United States, we see that
of the Inter-American Development Bank projects such as local housing and local sew- the approximate adverse impact upon the
(IDB) to vote in favor of an Increase of
$900 million in the resources of the Fund for
Special Operations (FSO)-the soft loan
Window of the Inter-American Development
Bank. This increase will provide $300 mil-
lion ayear for the next 3 years for this por-
tion of the Bank's activities. The U.S. con-
tributton is to be $750 million or $250 million
per year for fiscal 1065, 1966, and 1967. This
u-
t
r
represents 83.3 percent of the total con
tions. The Latin American contribution is
to be $150 million or $50 million per year.
This represents 17.7 percent of the total
contributions.
The IEPA feels that this bill is most un-
timely. It is clear that the U.S. balance-of-
payments deficit became critically large
again in the fourth quarter of 1964 and that
jhe administration is now giving serious con-
gideratlon to new, more vigorous actions, to
TeditceE~ our persistent deficit.
Amdng the new steps likely to be taken
are: (1) application of the interest equaliza-
tinn tax to Iona-term bank loans; (2) a
result in local al procurement. This problem is total operations of the BOB over a brief 3-
allegedly solved by using the letter of credit year period has been $451 million or ap-
technique whereby the recipient government proximately $150 million per year.
sells import licenses to its citizens drawn on At a time when the U.S. balance-of-pay-
the IDB Issued dollar denominated letter of ments position is quite critical and the ad-
credit and uses the local currency generated
thereby for the local IDB financed project. ministration has been compelled to consider
The problem is that there is no way of con- several fairly drastic measures to correct the
trolling where that local Importer spends persistent disequilibrium in our balance of
those dollars and hence there occurs what payments, this request is difficult to recon-
Secretary Dillon refers to as "leakage." There cile with the major task of correcting our
is no way of telling how great this leakage balance-of-payments problem.
or substitution 1s, but in view of the U.S. This committee may deem it appropriate
deteriorating trade position vis-a-vis Latin to condition its approval of this measure by
America as a whole, it is likely that it is the Secretary of the Treasury to
substantial. The U.S. share of total Latin directing
American Imports has slipped steadily down- reject any applicatiol of the IDS to float
ward from 61.5 percent In 1957 to 38.6 per- new security issues in the U.S. capital mar-
cent in 1963. The figures for the intervening
years show a steady downward trend: 1958-
47.3 percent; 1959-45.9 percent; 1960-45.1
percent; 1961-44.1 percent; 1962-40 per-
cent; and finally in 1963-38.6 percent'
the interest equalization tax; ana tol a'e
exit tax on the passports of U.S. tourists.
Irrespective of the question of the dsira-
bility of these and other measures, it cer-
I Source: United Nations, "Direction of In-
ternational Trade" and IMF, "Direction of
Trade."
'Annex 2 of Secretary Dillon's testimony
before the House Committee on Banking and
Currency on Increasing the Resources of the
Fund for Special Operations of the Inter-
American Development Bank-February 3,
1965, 10 a.m. -
' Source: Information Ofnce-Inter-Ameri-
can Development Bank.