THE OUTCOME OF THE RECENT WAR IN THE MIDDLE EAST

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July 11, 1967
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, iffif4A12j- 8&-FP6SENATER000200300017-3 July 11, 1967 Approved Fo~ ft However, that is only part of the story. The House Appropriations Committee warns that "the tempo and cost of the war in southeast Asia are on the upward trend" and that "the cost of wars can never be projected precisely." Thus, $70.3 billion may not pay the whole military bill during the next 12 months. So the committee has warned that the pitcher may have to return to the well. Nor does that warning put "finis" to the story. The $70.3 billion is in addition to an estimated $43.7 billion now available to the military establishment in funds previously appropriated by Congress. That makes a tidy total of $114 billion as a possible outlay for military expenditures in the new fiscal year beginning next month. And the end is not yet. Hidden billions, tucked away in the budget, pay for the an- nual operations of such hush-hush groups as the CIA. Authorities in these matters esti- mate that the CIA operations cost a mini- mum of $10. billion a year. So, on any abacus, the all-over figure totes up to $124 billion. Or, for the coming year, well over 50 per cent of the $200 billion that the world will spend this year on prepara- tions for war. The U.S. is very, very rich-the richest na- tion in history. But can even the U.S. indef- initely support the constant escalation of war funds? Especially at the expense of man himself? How can any congressman, voting such huge military expenditures, cry "economy" when-by comparison-piddling sums are asked for public education, for the eradica- tion of poverty, for the elimination of dis- ease, for unpolluted air and water, for better housing and for reconstruction of rotting cities? Materiel is obviously more important than man. So we and other nations go on buying more andjnore matches in a tinder world. AR IN THE MIDDLE EAST Mr. GRUENING. Mr. President, amid the vast reportage and editorial com- ment on the historic developments in the Middle East, a column. written by Ken- neth Crawford, a veteran able journalist, in the July 17 issue of Newsweek gives about as good a condensed summary as may be found anywhere. I have only a couple of comments to amplify Craw- ford's summary. He states : The United States' devotion to Israel is more sentiment than practicality. Its long- range interest is, of course, in peace and stability for the Middle East. It would be my view that while the at- titude of the United States toward Is- rael has not been consistent or uniformly favorable-since in our foreign aid pro- gram we have given vast sums to the sworn enemies of Israel, such as Dicta- tor Nasser's Egypt-a folly which some of us in the Congress finally ended-with- out attempting to demonstrate that "long-range interest in peace" which Mr. Crawford indicates to be U.S. policy, to wit John Foster Dulles' hostile position both to Israel and toward our then tradi- tional allies, Britain and France, when he took the side of Egypt and Soviet Rus- sia in Nasser's seizure of the Suez Canal in 1956-our Nation's attitude should be unqualifiedly favorable to Israel for the following reasons: Israel is an oasis of democracy in a Middle East desert of backwardness and .dictatorship. Even more than that, of the nearly 70 countries that have been born in the wake of the anticolonial re- volt all over the globe since World War II Israel is the. outstanding example of liberty and democracy. Its people enjoy government by consent of the governed, freedom of speech and press. In short, Israel is the counterpart in its ideology and actions of what the United States professes to be our own ideal and course of conduct. Since the United States professes that it is interested in maintaining the basic freedoms throughout the world and is likewise engaged-most unwisely, in this instance, in my view-in what is allegedly an effort to promote democracy in Southeast Asia, where it has never existed and where the representatives of that hope scarcely live up to the billing, it would seem almost inevitable that we should support Israel as a shining ex- ample of democracy for the whole world. So our support should not be based, as Mr. Crawford suggests, on mere senti- ment. We might add that in addition to these qualifications Israel is one of the few countries that publicly acknowledges its debt to Uncle Sam, makes no secret-as do practically all other countries-of the benefits of the foreign aid which we have given it, and is also helping backward nations by sending its technicians to aid some of them. Finally, one cannot but agree with Kenneth Crawford's concluding sen- tence; namely, that the outcome of the brief war in the Middle East and Israel's brilliant victory-certainly the most brilliant in modern times and perhaps in all history-could have been worse- much worse. One may shudder to think what would have happened if the Arabs had won and had succeeded in their 19-year-old un- remitting threats to exterminate the Israelis. Actually, secret captured orders reveal that they were determined to mas- sacre every man, woman, and child. That would, in the circumstances, have pre- sented the United States with a real problem, which fortunately the Israelis' courage, intelligence, and superiority in all the qualities that count, spared the free world. A strengthened Israel, secure against the unceasing threat of aggression and sporadic raids by the surrounding Arab nations, with a population 50 times as great and an area a thousand times as large, is essential for the peace of man- kind and the perpetuation of the de- cency and enlightenment which that lit- tle nation embodies. All free men have a stake in its maintenance and not least the Nation which represents the largest democracy on this planet, our own. I ask unanimous consent that Ken- neth Crawford's article entitled "Mid- dle East Outcome" be printed at the con- clusion of my remarks, and that it be followed by my comments, entitled "Jor- dan Had Ordered Its Troops To Kill All the Inhabitants of Captured Israel Vil- lages." There being no objection, the article was ordered to be printed in the RECORD, as follows: S 9381 MIDDLE EAST OUTCOME (By Kenneth Crawford) Debate on the Middle East crisis in the United Nations General Assembly was not an edifying spectacle. It must have been dis- illusioning to hopeful idealists, if there are any left, who still think of the U.N. as the world's last best hope for peace. Facts were twisted; logic was distorted; tortured se- mantics were confusing. Yet, after much non- sensical talk, the Assembly did the only sensible thing in the circumstances: it did practically nothing. So, in the end, reason somehow prevailed. The facts were clear enough to defy obfuscation, try as the would-be obfuscators did. The Israelis were quite clearly the ag- gressors in the sense that they assumed the offensive. But the Arabs were obviously the aggressors in a more fundamental sense. They had insisted that a state of war be- tween Egypt and Israel never ceased to exist after the British-French-Israeli attack on the Suez in 1956. They had closed the Strait of Tiran to embargo shipping by that route to an enemy. They had announced it as their firm purpose to drive Israelis into the sea and to destroy the Jewish state. __ FORMIDABLE BLOC How could the Arabs contend that the Israelis should be punished for a war al- ready started and for striking first in de- fense of their existnce? The Arabs could, and did, by ignoring inconvenient facts and by enlisting the support of nations willing to do the same thing. The Soviet Union, which had invested heavily in arms for the Arabs in the hope of banishing Western influence from the eastern end of the Mediterranean, was more than willing for reasons easily un- derstood. Gaullism, always eager to get even with the U.S. for rescuing France from Hit- ler and from economic collapse after Hit- ler, joined up, too. Together they assembled a formidable bloc. Had the U.S. been actuated by cynical short-range self-interest, it would have joined the Arab bloc itself. It has extensive oil in- volvements in the Arab countries and it has fostered them with food and other help for the Arabs. It has no comparable stake in Israel. Neither has it any treaty obligation to defend Israel, only statements of policy underwriting the territorial integrity of all the nations of the area and open passage to the Gulf of Aqaba. Its devotion to Israel is more sentiment than practicality. Its long- range interest is, of course, in peace and sta- bility for the Middle East. In the showdown, neither the Soviet- supported resolution demanding that the Israelis surrender unconditionally the Arab territories they seized during the six-day war nor the U.S.-supported resolution tying with- drawal to recognition by the Arab states of Israel's right to live won the required two- thirds majority. THE 10TH POINT This left Israel in possession of the Sinai; the eastern bank of the Suez; the Gaza Strip; Jordanian territory on the Israeli side of the River Jordan, including all of Jeru- salem, and Syrian hills overlooking Israel. There is no reason to doubt Israel's capacity to hold these acquisitions. Possession being nine points of the law, time in the normal course will take care of the tenth point if the Israelis want it to. Meanwhile, the conquered territories can be held hostage to peace negotiations. In their present irrational mood, the Arabs won't talk. But they may come to it eventually even if the Russians go through with their threat to rearm Nasser and his allies. Egypt's eco- nomic plight is already desperate and will get worse. Syria and Jordan are in similar straits. The squeeze may produce upheavals of leadership in any or all of these countries. A period of explosive instability is inevitable. Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 S9382 Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 CONG kESSIONAL RECORD - SENATE July 1.1 Having established themselves as the Arabs' best friend, the Russians will have an advan- tage in maneuvers to expl'pit this situation. But the West also has friends-silent now but perhaps not always-Ili the area. It also has a better reputation fpr generosity and helpfulness than the Soviet$ and more advan- tageous markets for Arab o)1.. The U.S.-Soviet confrontation induced by the crisis was inconclusive. Eyeball to eyeball, neither blinked but both 4verted their gaze. There seems to be tacit agreement that nei- ther will permit itself to: be drawn into a Middle East. shooting war' but otherwise to disagree. Party leader Brezlnev has defended his country's refusal to Intervene by force and promised only further "political strug- gle." Secretary Rusk has denied that the U.S. has any Idea of imposing s peace settlement on the nations of the Mid le East. And that is where matters now stand. This outcome could have been worse-much worse. ORDERED ITS TROOPS TO` KILL ALL THE INHABITANTS OF CAPTURED ISRAEL VILLAGES Mr.. GRUENING. Mr. 'President, a few weeks ago, King Hussein of Jordan, spoke before the United Nations, where he warned the General Assembly that if Israel were allowed to keep "even 1 square foot" of the larici it had taken, the United- Nations wo!lld never again be able to make a cease-fire stick any- where. His speech followed the usual pat- tern of what has become the Arab party line: injured innocence, claims of Israel aggression, charges of Western imperial- ism. This was followed up by a visit to President Johnson to ask for additional economic and military assistance which coincided with reports from Amman that the Jordanians were disillusioned with Nasser and were seeking new policies to take into account the realities of the Israel military victory.',' On June 27, 1967, I pointed out that this kind of hypocrisy could not be ac- cepted. ]: stated: Before the outbreak of this 4-day war the Israeli. Government sent messages to the king urging him not to attack and saying that if he did not there would be no counterattack or action by the Israeli !troops across the Jordanian border. King Hussein not only rejected this peace offer l ut rushed to em- brace Nasser, joined hi in his attack, started the bombing of I rael and brought upon himself the inevital1le reprisal. He has no case whatever in the record of history or in the court of Public opinion. He is and" should be thoroug ly discredited for his double-dealing, for his aggression, and for the folly deliberately embarked on, which not only cost many lives of Jordanians but quite a few Israelis who did everything in their power to obviate action on the Israel- Jordan front. Hussein as no legitimate claim of the kind that he hakes. He alone is responsible for the loss of previously Jor- danian territory. This morning we see another example of his hypocrisy. Under the caption "Three Arab Leaders Meet in Cairo," the New York Times carries a front-page picture of King Hussein! at the Cairo air- port, being warmly embraced by the architect of Arab aggression, Gamal Ab- del Nasser. When the Israel forces swept through Jordan's west, bank, they captured nu- merous top secret documents in the files of Jordanian military headquarters sy: tematic aggression against Israel. Tl.ose consisted of special orders issued to military units in the west bank for Oper- at: on "RA'AD" which involved orders to M.A. and destroy Israel settlements and to kill their inhabitants. These orders were found in the headquarters of all the Jordanian brigades positioned on the West bank. The orders were issued by the se:iior Jordanian headquarters of the west bank and provided that they would be :issued to the battalions to carry out at such time as the west front headquar- te: s decided to put into action the op- erations. As stated in the orders every rani was allocated to a force of infantry battalion strength with supporting artil- lery and engineers. All the raids were planned on the same system in all the brigades; that is, for one company to br ak into the Israel settlement, destroy it and kill all the inhabitants, another Co 7lpany to provide support and a third co npany to block off any Israel forces coning to the relief of the settlements. [ ask unanimous consent for the in- clusion in the CONGRESSIONAL RECORD of a ranslation I have obtained of the top secret order found in the files of the Imam Aly Ben Abi Taleb Brigade, sta- tic-ned near' Ramallah. The target speci- fied in this order is the Israeli colony of M )tza in the Jerusalem Hills. The date of this order is June 7, 1966. A second order was found at the brigade head- quarters which is dated April 1967 which is identical to the first except that it pro- vides for an attack on the Sha'alabim Settlement in the Latrun bulge. The orders state unequivocally that the intent of the planned military opera- tion is to kill civilians and to destroy the ci,'ilian settlements. It states that: The aim of H.Q. West Front is to raid Mi}tza Colony, to destroy it and to kill all persons in it. The Brigade Reserve Battalion will raid th3 Colony Motza, will destroy it and kill all its inhabitants upon receiving the code "E ADHAD" from Brigade H.Q. rn light of these documents it is m- pcssible to escape the conclusion that Jcrdan plotted aggression against Israel as d was a willing partner in the Arab pclicy to destroy Israel. This must be taken into account when the Foreign A: sistance Act is considered by the Sen- at in the near future in relation to the ariounts which the President will un- dcilbtedly request for continued eco- nc,rnic and military assistance to Jordan. There being no abjection, the top se- cret order was ordered to be printed. in the RECORD, as follows: [Top secret] (Copy No. 4, H.Q. Imam Aly Ben Abi Taleb Brigade (Operations). Registration No.: A'i/1/1. Date: 7th June 1966.) Special Operational Order "Opera-:ion (F?A'AD)." Ref. Maps: Jerusalem, Ramallah, Salfit, Ai'ur, Lud, Yafo-Tel-Aviv, 1:50000. Tc-s Commander Reserve Battalion 27th BI :gad e. 1, SITUATION A. Enemy: (1) The enemy forces in MOTZA Colony (13471342). The inhabitants number about 80),persons, engage in agriculture and brave guard details in the colony. (2) The colony mans five night guard - pc9ltions around it. (3) The colony is surrounded) by slit- trenches which are manned when ecessary. (4) The colony has barbed-wire fences. (5) The houses of the colony a1'e built of concrete, and some have red-tile hoofs. (6) The forces of the colony need 5-7 minutes to man their positions from the moment of surprise, (7) Enemy camps close to t 4e colony which can take part in the camaign and advance reinforcements:- (a) CASTEL Camp (163133) on! Infantry Co. with support detachments. Tl4e defence position of this unit is on the hill ( .71337). (b) SHNELLER Camp (170132) 6th Bri- gade Reconaissance Co. (c) ABU GOSH Camp (1680134) Border Police Co. (8) Air superiority to enemy. B.-Own Forces: (1) The intention of H.Q. Wes'ern Front is to carry out a raid on MOTZA olony, to destroy it and to kill all itsinha itants. (2) This task was allocated t the Bri- gadier of the IMAM ALY BEN A I TALES Bridgade who will further it to tl}e Brigade Reserve Battalion. C. Attached and Detached: (W1}en giving Reserve Battalion the Order to proceed). Under Command, the forces ii position at SHE Ill' ABD EL AZIZ Area and the RADAR from the Battalion responsible fo the Left wing of the Brigade. Direct support, 2nd Field B4ttery 1st Field Arty_ Regt. 1 platoon Field engineers. 1 section casualty collecting. 2. THE TASK The Brigade Reserve Battalion! will raid MOTZA Colony, will destroy it and will kill all persons in it upon receiving the code- word "HADHAD" from Brigade H.4. 3. MLTHOII A. General. (1) Night raid in one phase by Infantry Co. plus platoon plus Engineer patoon for the breaching and destroying, on Infantry Co. less one platoon plus battalion support weapons as firm base, one infantr Co. plus elements of pioneers and field engineers for blocking off reinforcements. (2) The whole battalion will my~ ch from the place of disembarkment fro'Fs the ve- hicles, to the dispersal area. B. One Company plus one pl toon-for breaching and destroying. (1) The task: The destructio'!n of the colony and killing all its inhabitants. (2) Attached: A.A.O. (Advancect Artillery Observer) One platoon field engineers. (3) Reorganization: (a) On finishing the mission It will re- tire to the assembly point allocated to it and from there will march to point 16441366, South-West of BEIT SOR1:K Village. (b) Axis of retreat, East of SI1EIH ABD EL AZIZ and from there by track eading to BEIT SOR.IK and up to the d ployment area (1640:1370). (c) The Company will travel with the Battalion in vehicles from ELO'IB BIDU cross-roads to BIR A'WAP-BIDU crossroads and from there tb its base in the ETUNYA Hills. C. One Company less a platoons plus Bat- talion Support Weapons.--Firm ) ase. (1) The Task: (a) Supporting the breaching force and harassing the target with heavy !fire when the raiding party Is discovered grid after it finishes the destruction. (b) Supporting the Assault Fqrce in its e of the retreat until it is beyond the raI" enemy's fire. (c) The Company will move from the dis- persal point to the place of the base-see Draught A', at 16441353. (d) The Company will retire after all the other forces complete their retreat. The C.O. of the Force will make sure that ally the forces of the mission have retired. Approved For Release 2004/05/25 : CIA-RDP69B00369R00020030001.7-3 July 11, 1967 Approved For Release 2004/05/25 : CIA-RDP6 00369R000200300017-3 CONGRESSIONAL RECORD - SENATE S 9383 (2) Attached: A.A.O. M.F.S. (Mobile Fire Spatter) . (3) Reorganization: (a) The Company will retire in full at the end of the operation when ordered by the Battalion Commander and will move by the track from Sheih Abd El Azlz to Belt Sorik, from there to the assembly point and from there by vehicles. (b) The Company will travel in vehicles with the Battalion to the Battalion's base at Bitunya by way of El Gib-Beit Awar Crossroads-Bitunya. D. Company plus pioneer platoon-Block- ing-off reinforcements will establish two Road Blocks: (1) Right position: at (16371342) on the main road leading to Abu Gosh Camp. (2) Left position: (16631342) On the slope of the Tel situated on the East side of the Motza Colony and overlooking the Jerusalem- Kolorya Road. (3) The task: (a) To prevent the arrival of any rein- forcements or forwarding succour which the enemy might send by their routes. (b) To engage the enemy in combat if he comes to the colony's aid. (c) Cut-off the road leading to the Colony, if the conditions require it, and that before the passage of the enemy. (d) Every force will move from the disper- sal point to its position as seen on draught "A" which is attached. (4) Reorganization: (a) The right position: When the task is accomplished and when it receives the code word for the order to retire, will move by the route west of Sheih Abd El Aziz up to Belt Sorik Village and will then proceed to the assembly area, embarkation point with the rest of the battalion. (b) The Left position: When the task is accomplished and when it receives the code word for the order to retire, will move by the route leading in the direction of Sheih Abd El Aziz from the East up to Hirbet Loza, Belt Sorik, assembly area and embarkation point. E. Mortar Platoon: (1) Will take up position at 16471356 North-West of Sheih Abd El Aziz. (2) The task: According to annexed plan of fire (A). (3) Reorganization: When the task is ac- complished will retire from its position by way of Sheih Abd El Aziz Village to Belt Sorik-assembly area-and will move with the Battalion to the embarkation point. F. Pioneer platoon: Will detach a rein- forced section to the Blocking-off forces. (1) The task: Will lay anti-vehicle and anti-personnel mines on the road leading to Motza Colony when ordered by the C.O. Blocking-off force. . (2) Reorganization: The section will retire with the Blocking-off force to the assembly area and to the embarkation point. G. Artillery: (1) Task: According to annexed plan of fire (A). (2) A.A.O.s will be attached to the firm base and to the Blocking-off force. H. Engineer platoon: (1) Task: (a) Breaching the wire fences on an aver- age of one breach per platoon. (b) Will completely destroy the colony with explosives, after the breaching through force finishes mopping-up the Houses. (c) The platoon will attach elements to the Blocking-off force. (2) Reorganization: The platoon will re- tire with the breaching -force to the em- barkation area and from there will travel in vehicles with the Battalion to Bitunya, I. Co-ordination: (1) "H" hour will be decided upon in due time by the Battalion Commander (2) Disembarkation and embarkation points. (3) Deployment area. (4) Dispersal point. (5) Route of advance. (6) Dispersal of forces, breaching, firm base, cutting-off. (7) Starting line. (8) The target. (9) Embarkation area. (10) Rate of advance 100 yards every three minutes. (See draught "A") 4. ADMINISTRATION (A) Transport: Combat echelon vehicles will remain in assembly area North of BEIT SORIK (164137). (B) Food: Supper will be served in the assembly area, and no rations will be carried. (C) Ammunition: Ammunition and explo- sives as will be decided for this Operation. (D) Medical: The casualties will be evacu- ated to the Battalion Advanced Dressing sta- tion by stretcher Bearers which are in the village (BEIT SORIK). (E) Clothing: Full battle dress. Light clo- thing is recommended. 5. COMMUNICATION AND CONTROL (A) Brigade H.Q.: At its present place. (B) Battalion H.Q.: In all the phases of operation behind the Assault force. (C) Communications: (1) No change in wireless or telephone nets. (2) Wireless silence will be observed up to discovery of the attack, when the artillery and mortar shelling will begin. (D) Codes: Word, Meaning, and Ordered by. "Hadhad," Reserve Battalion starts Opera- tion, Brigadier. "MA'AN", Destruction of target, Battalion C.O. "SALMAN", Leaving Assembly area, Bat- talion C.O. - "MOHAMED", Leaving Embarkation area, Battalion C.O. "AR$ED", Battalion back to reserve posi- tions, Battalion C.O. Zaim-Brigadier Imam All Ben Abi Taleb Brig. (Ahmed Shehada El Huarta). Information: Distribution List: Annexed. "A" Annex-Plan of fire. Annexes: "A' " draught: disembarking area, assem- bly, division of forces, dispersal point, start- ing line, target. PENSION PROTECTION PLAN IS NEEDED Mr. HARTKE. Mr. President, on April 26 I introduced a slightly revised version of the Pension Protection Act, on which 1 day of hearings was held last year. The bill, S. 1635 (S. 1575 in the 89th Con- gress), is designed to deal with the prob- lems which arise when private pension plans are discontinued due to discontin- uance of the business through failure, merger, or similar causes. The result of such loss of expected retirement income, through no fault of their own, has often left workers with 20, 30, or more years of employment without the resources on which they had counted. I have previously documented the need, and I shall from time to time bring be- fore the Senate other instances to illus- trate the necessity for action on this bill. The following cases illustrate the circum- stances in which the need is clearly de- monstrable. In 1961, the E. W. Bliss Co., of Cleve- land, Ohio, ceased operations. Employed at that time by the company were 32 workers. The company was organized under the United Automobile Workers, and there was a pension plan in effect. Yet, of the 32 workers, only two collected any pension at all, and they were already retired. Typical of those who received no future benefits, but who were fortunately young enough to find new jobs, were George Kuzel and Tony Tomatz, with 16 and 12 years of service respectively. In their new employment there is no private pension fund available. This is one instance. There are many more, some of which I have received spe- cific information as to their cases. I shall call them to attention in the future, and continue to hope that we may have more hearings and serious consideration for 8.1635. CONCLUSION OF MORNING BUSINESS The PRESIDING OFFICER. Is there further morning business? If not, morn- ing business is concluded. TRUTH-IN-LENDING ACT Mr. BYRD of West Virginia. Mr. President, I ask unanimous consent that the Senate proceed to the consideration of Calendar Order No. 378, S. 5, the un- finished business. The PRESIDING OFFICER. The bill will be stated by title. The ASSISTANT LEGISLATIVE CLERK. A bill (S. 5) to assist in the promotion of economic stabilization by requiring the disclosure of finance charges in connec- tion with extension of credit. The PRESIDING OFFICER. Is there objection to the present consideration of the bill? There being no objection, the Senate proceeded to consider the bill. Mr. BYRD of West Virginia. Mr. Presi- dent, I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The assistant legislative clerk pro- ceeded to call the roll. Mr. PROXMIRE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. The bill is open to amendment. Mr. PROXMIRE. Mr. President, after 7 years of consideration, the Committee on Banking and Currency has recom- mended a truth-in-lending bill to the Senate. If any one person is responsible for the idea of truth in lending, it is our great former colleague, Senator Paul H. Douglas of Illinois. Paul Douglas in- troduced this issue in 1960 and kept it alive for 6 long years while support for the measure gradually developed. I believe the committee has recom- mended a bill which retains the essen- tial objectives for which Senator Doug- las fought so long and hard. It requires creditors to disclose to consumers the full cost of credit. This would be ex- pressed in terms of dollars and cents and, for most forms of credit, as an annual percentage rate. The committee has also recommended a number of changes in the original bill, which I introduced last January 11, which I believe will go a long way to- ward making it more workable to the credit industry. In developing these changes, I believe the ranking Repub- Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 SS PPI wCU rVI RC ICCI,C LVV14IVJ1LJ . VI/1-ItL/r V7L3VVJV7ItVVVLVVJVVV I I-J SS 9384 CONGRESSIONAL RECORD --SENATE July; 11, 1967 lican member of the committee, Sena- cents. For example, it would require a loaned throughout the period. This has tor BENNETT, deserves a considerable creditor to indicate that a loan of $300 the effect of understanding) the true an- amount of credit. It is true that from payable in 18 monthly installments of nual rate by approximatel r 50 percent. the outset, all members of the committee $22 each month Involves a credit charge For example, if a consumer borrows $100 agreed upon the Central objective of of $96. and repays it in 12 equal monthly install-. truth in lending. No one seriously con- Second, the bill would require that in ments, and if the finance charge is $6, tested the fact that !the consumer is en- most forms of credit the creditor would some creditors will represent this to be titled to as much information as pos- disclose the annual percentage rate. This 6 percent. However, the true annual rate sible regardin c n u me dit g o s u r cre . No one is the universal common denominator by is nearly 12 percent since the consumer has argued that the: facts should not be which the cost of money is measured. It has gradually been repaying the full debt disclosed to the consumer. permits a consumer to readily compare and has not had the full u of the $100 The chief arguments within the com- the cost of credit among different :lenders for a full year. In fact, on the average mittee dealt not with the objective of regardless of the length of the contract he has had only $50 or close to it. the legislation but with its workability. or the amount of the downpayment. In Other creditors employ a system of ad- I believe we have recommended a bill effect, the annual percentage rate is a ditional fees and charges designed to in- today which will prove to be both fair price tag for the use of money. Just as crease the effective rate. Fo r example, it to the consumer and workable to the the grocer quotes the price of milk by is possible to increase the rate from 12 credit industry. Certainly, the committee the quart or one-half gallon, or the price percent to 18 percent by adding addi- has learned much from Massachusetts, of meal; by the pound, so the creditor tional charges for credit i vestigation, where truth in lending has been in ef- would quote the cost of money in. terms loan processing, or other si ilar charges, feet over the last 6 months. of an annual rate. This is somewhat an alogou to a grocer In addition, the Department of De- When all creditors quote the cost of advertising the cost of a loaf of bread fensc, has required for the last year that credit in the terms of an annual rate for 3 cents while in the fin print indi- creditors make full disclosure when ex- which is computed in the same fashion cating the wrapper will cost 2 cents, dis- tending credit to servicemen. the consumer can quickly determine tribution 5 cents, processing! 7 cents, and The credit industry was also helpful -which form of credit is the best buy. handling charges 4 cents. in suggesting technical changes which In computin the l Ot t i g annua ra e, cred - her creditors will merel disclose the will improve the workability of the bill tors would be required to include all costs amount of the weekly or onthly pay- from the standpoint of the average cred- incident to the credit transaction regard- ments without indicating he total fi- itor . -less of whether it was termed to be in- nance charge or any rate w atsoever. Finally, the leadership of the Senator terest, loan fees, credit investigations, A creditor might indicate, for example, from Alabama [Mr. SPARKMAN] was or the like. This will end a present con- $2 down and $2 a week fora i-fiset.Un- most influential in developing a bill fusing practice of quoting deceivingly low less the consumer gets out pencil and which every member of the committee rates while actually charging much paper and figures it out fo himself, he could support. There, is no Senator who higher rates by tacking on additional has absolutely no idea of th cost of the is more expert in this entire area than fees. credit either in dollars or ads an annual the distinguished Senator from Alabama, Under the legislation recommended by rate. who is not only extraordinarily compe- the committee, all lenders would com- As a result of these confusing prac- tent :in the field of banking and curren- pute their credit charges and rates in the tices, some segments of the credit indus= cy, credit, and who is recognized as the same way. In this way the consumer try have been able to charg truly exor- congressional expert on, housing, but a would be receiving comparable informa- bitant rates with relative ' punity. Re- man also who has a wonderful knack for tion on which he can make wise and cent cases from the files of the Cook persuading people to iron out their dif- proper decisions. It will be a significant County Bankruptcy Court dicated, for ferences and work out constructive com- measure for increasing the effectiveness example, that finance cha ges ran as promises and effective legislation. of the consumer's credit dollar. high as 283.9 percent for u d cars, 235 :1 believe this bill will represent a sig- NEED FOR LEGISLATION percent for TV and hi-fi se s, 199.6 for nificant advance for the American con- Mr. President, over 6,000 pages of testi- clothing, and 105.2 .percen for furni- susmer. It will provide; the average person mony have been taken before the Bank- ture. Numerous cases filed w th the com- with the information he needs to use ing and Currency Committee over the mittee indicate that this is by no means credit and to'shop Wisely for credit. It period of time that this bill has been in a unique or rare occurrences will end the present system of confusing committee, which Is more than 7 years, I recall a hearing we had' a couple of credit; practices and credit terminology and they have amply demonstrated the years ago in New York wherte case after which requires a trained mathematician need for this Important legislation. To- case was documented by witnesses who to understand. It will disclose the cost day the average consumer isfaced with came in and testified. We c mputed the a d the rates of credit in clear and simple terms to a-bewildering variety of credit rates and amount they were paying the average consumer so that he can terms. Even the Chairman of the Fed- in virtually all cases es exc exceedd 100 uer- understand fully the extent of the credit eral Reserve Board, William McChesney cent and often exceeded 200, percent. Frequently, these high rat's are levied and how it compares to rates being Martin--and I think all of l us wou d charged by other lenders. I believe this recognize that he is the national expert upon the low-income groups who can bill will save the American consumer on credi~-admitted he had trouble un- least afford to pay the exorbitant sums. millions of dollars a year in credit derstanding rates charged on consumer not I hasten p ecter of add that these hi h or u- charges and will prevent millions of fam- credit. If the top financial expert in the cation. a resollege graduates, inc age st- ilies from being saddled down with ex- country has difficulty, it is no wonder dens, professors, and others are legs as fre- cessive debt. dents, ore- the average consumer is completely at a WHAT THE SILL DOES loss when confronted with a typical quently the victims of this kind of over- Mr. President, this is a most simple credit transaction. charge and these very higrates as piece of legislation. It, is a disclosure bill What is so confusing about consumer people who are in the law-income brack- ets and not a regulation bill. It does not credit? In large measure It Is the variety higher education in can a afford be afford it b aple with had regulate the credit industry. It does not and inconsistency in t4 e way the cost of those higher eoe wh can exploited prescribe detailed credit practices. It credit is revealed. People who are eragiaal y does not dictate the terms of credit con- in the very low income area. ~ For example, some creditors quote only But it is not the low-income groups tract. It does not set; ceilings on credit. a month..y rate, tending to minimize the who are victimized by the hf den cost of It merely requires the full facts to be ?,ost of credit. How many customers credit. The well educated and wealthy disclosed to the consumer. fealize, for example, that a small loan ate are also taken in. For exampi , one of the The bill would per it the consumer to the rate of 3 percent per month amounts most popular education loan sponsored be the judge and let the effective forces to an annual rate of 36 percent. by consumer finance companies involve of informed competitiion work their way Other creditors employ an add-on or rates of interest as high as 4 percent. out in the marketplace. discount rate which measures the credit This is for higher -educatio . In fact, The facts to be disclosed are basically jn the original balance rather than the most people seriously undere timate the twofold. First of all creditors would dis- ieclining balance. Of course, It Is only true cost of their credit. A recent survey close the cost of credit In dollars and the declining balance that is being asked a sample of 800 famil es to esti- Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 July 11, 1967Approved For& J jff5A25kJftW 9 3000200300017-3 You may fool the whole world down the pathway of years And get pats on the back as you pass, But your final reward will be heartaches and tears If you've cheated the man in the glass." Post Imperial Potentate Sir George E. Stringfellow: Illustrious Sir, members of our Divan, Past Potentates, Noble Albert W. Hawkes, distinguished guests and members of the Albert W. Hawkes Class: I am most happy to take part in this Ceremonial honoring Senator Albert W. Hawkes, one of the nation's truly good citi- zens. It was my pleasure to have proposed our honored guest for membership in Free- masonry and the Shrine. Crescent Temple has among its members some of the most outstanding and patriotic citizens of North America, none, however, more illustrious than Senator Hawkes. Ralph Waldo Emerson, one of the wisest of Americans, must have had such a person in mind as Senator Hawkes when he said, "I consider him a great man who inhabits a higher sphere of thought into which other men rise with difficulty and labor." I know of no one who inhabits a higher sphere of thought and who has'done more to lift the moral and ethical standards of his fellow man than Noble Hawkes. In every movement there is someone who represents the conscience of that movement. I can think of no one who more nearly repre- sents the conscience of Freemasonry and the philosophy of the Shrine than Noble Hawkes. He has been my faithful friend for many years and, as Napoleon said "A faithful friend is the true image of diety." By his conduct and example Noble Hawkes has, for decades, been the image of things that help to make this a better world. CRISIS Mr. McGEE. Mr. President, among the momentous problems facing us today is the just solution of the crisis in the Middle East. If we are to end the threat to world peace that has existed in that part of the world for the last 20 years, we need calm, wise, and objective judg- ment. In my opinion, the recent page 1 editorial appearing in the AFL-CIO News, and written by George Meany, president of the AFL-CIO and twice a member of the U.S. delegation to the United Nations, deserves the careful consideration of us all. I ask unanimous consent that it be printed in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: WHO IS THE AGGRESSOR? For the last two months, irresponsible denunciations have marred the UN sessions on the crisis in the Middle East. Our country and to an even greater extent, Israel, have been the targets of bitter abuse and slanders by Soviet spokesmen and their Nasserite proxies. In such an atmosphere, the UN can- not serve as an instrument for fostering honorable and harmonious relations among its member states. In these UN sessions, the technique of the Big Lie, fanatically applied by Hitler and Goebbels against the Jewish people more than thirty years ago, has been perfected by Federenko and Kosygin. Though the outrage- ous charges of Nazism against Israel and the nations friendly to it are reprehensible frauds, they are not surprising. It is, however, shocking and distressing that the spokesmen of the democracies sat idly by in stony silence in the face of these diatribes. That such tolerance only encour- ages Communist arrogance and aggressive- ness was subsequently demonstrated in the tone and substance of Kosygin's remarks at the press conference before his departure for Moscow. It is an old trick of the Communists to charge others with the crimes of which they themselves are guilty. We need but recall that the Soviet government hailed the Nazis as "blood brothers." In partnership with Hitler, the USSR butchered Poland and snuffed out the independence of the Baltic republics. The Kremlin congratulated Hitler on his capture of Paris, while denouncing the Allies for resisting Nazi aggression. Nor has the world forgotten that Communist Rus- sia waged two cruel wars against the small heroic republic of Finland, while denouncing it as an aggressor against the Soviet Union. And the world can never forgive the So- viet government for crushing by force of arms Hungarian democracy. For years, this same Soviet government-whose representa- tives now so hypocritically insist on instan- taneous compliance with UN decisions-has flagrantly violated 13 UN resolutions for the withdrawal of Soviet troops and the restora- tion of Hungarian independence. Eighty-five thousand Soviet troops still occupy Hungary. In fact, the circulation of the UN reports and resolutions condemning the massive armed Soviet intervention in the 1956 Hungarian Revolution is still prohibited in all Commu- nist countries on the pain of severe prison penalties. The Kremlin and its Middle East clients have launched their assaults on truth and decency as a poisonous smokescreen for hid- ing the humiliating political and military defeat they have suffered at the hands of the overwhelmingly outnumbered Israeli forces, who were fighting for the very life of their country. The Soviet government is primarily re- sponsible for the dangerous crisis in the Mid- dle East. It equipped Nasser and goaded him on to rally the reactionary Arab rulers for the destruction of Israel. Since. the UN cease-fire, the USSR has resumed sowing the seeds of future war by stepping up its ship- ment of weapons for aggression to the dis- credited Nasser regime and its Syrian accom- plice. The Soviet dictatorship should be sternly condemned and unequivocally re- pudiated for this war-breeding policy. In this situation, Israel deserves the commendation and support of all people devoted to peace and freedom. SUPPORT PRESIDENT JOHNSON'S MIDDLE EAST PROGRAM We appeal to our government to mobilize all its influence and resources for UN sup- port of Pres. Johnson's five point program. It provides a just and sound basis for a peace settlement and joint efforts by all the nations in the Middle East for the social and economic reconstruction they so urgently need. We urge our free trade union col- leagues overseas to lose no time in having their governments give prompt and ener- getic support to this program. We urge all AFL-CIO organizations and ICFTU affiliates to provide generous assist- ance to the Histadrut in its efforts to meet the vital tasks of social and economic re- construction in peace and freedom. In view of its practical experience, Histadrut can make valuable contributions towards help- ing Arab and Israeli workers alike enhance their well-being, human dignity and self- respect. We appeal to the workers of the Arab lands to help their countries strike out in a new direction and cooperate with the people of Israel in building a peaceful, free and prosperous Middle East. CITIZENS COMMITTEE FOR PUBLIC TELEVISION Mr. JAVITS. Mr. President, as the House Committee on Interstate and For- S 9365 eign Commerce begins hearings on the Public Broadcasting Act of 1967, it is encouraging to me to learn of the or- ganization and growth of the National Citizens' Committee for Public Televi- sion. The New York Times this morning reports that the committee, formed lit- tle more than a month ago, has ap- pointed an executive director, Ben Kuba- sik, associate director of the Public Broadcasting Laboratory of National Ed- ucational Television. The appointment of Mr. Kubasik is indication that this committee, composed of such distinguished men and women in American arts, letters, and business- many of them residents of New York-is now ready to begin in earnest its work of establishing long-range public interest in public television. The list of the founders and initial members of this important group, Mr. President, is another indication of awak- ening national interest in the prospects and possibilities of noncommercial broadcasting. Its chairman is the dis- tinguished New Yorker, Thomas P. F. Hoving, director of the New York Metro- politan Museum of Art and formerly Commissioner of New York City Parks Department. As Parks Commissioner, Tom Hoving captured the spirit of New York and the imagination of its people. I know that his activities on behalf of public broadcasting will be equally ef- fective. In addition to Mr. Hoving, founders of the committee are: Ralph Ellison, author; Devereux Josephs, former chair- man of New York Life Insurance Co. and currently chairman of the board of WNDT, the New York educational tele- vision station; Ralph Lowell, chairman of the Boston Safe Deposit and Trust Co., and president of the Boston Educa- tion TV station, WGBH; and Newton Minow, former chairman of the Federal Communications Commission and now a director of WTTW, the educational TV station in Chicago. It has a stellar roster of members high- ly distinguished in every field of our Aa- tional life. The committee has been pledged fi- nancial support from the Danforth Foundation, W. K. Kellogg Foundation, Twentieth Century Fund, Inc., Alfred P. Sloan Foundation, the Ford Founda- tion, and the Carnegie Corp. of New York. When Tom Hoving took over as chair- man of the committee, he said: There is some real hope now that Public Television will not only get out of the poor house, but will be a magnet for high-voltage talent. I look forward to the day when people will cancel engagements because they have spotted a television show on that evening's program that they can't afford to miss. The formation of this committee, Mr. President, gives hope to all of us here who supported S. 1160 that the promise of noncommercial broadcasting will be fulfilled through the work of the Public Broadcasting Corporation proposed by the bill and the active support and work of distinguished Americans such as the members of this committee. Mr. President, I ask unanimous con- sent to have printed in the RECORD the names of the members of this committee, and an article concerning the committee Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 366 Approved For i:~3 l E5~lU1VA :e 69%gj9&00200300017-~u1y 1 jai 1967 published in today's New York Times. There being no objection, the list and article! were ordered to be printed in the RECORD, as follows: The following individuals have thus far joined the new National Committee: Thomas P. F. Roving, Chairman. David Amram, Composer in Residence, Philharmonic Hall, New York City. Robert O. Anderson, industrialist and rancher, Roswell, New Mexico. Seth G. Atwood, President, Atwood Vacuum Machine Co., Rockford, Illinois; Past Presi- dent, Young Presidents Organization. Leonard. Bernstein, conductor, composer, New York City. Kingman Brewster, Jr., President, Yale University, New Haven. Paddy Chayefsky, author, New York City. Sister Mary Corita, Professor of Art, Im- maculaste Heart College, Los Angeles. Nina Cullinan, Houston. Mrs. Moise Dennery, President, Greater New Orleans Television Foundation (WYES- TV). Carl J. Dolce, Superintendent of Schools, New Orleans. Lee A. DuBridge, President, California In- stitute of Technology; Chairman, Commu- nity Television of Southern California (KCET). Ralph Ellison, author, New York City. Mortimer Fleishhacker, Jr., Chairman, Precision Instrument Co.;. President, Bay Area Educational Television Association (KQED), San Francisco. R. Buckminster Fuller, engineer, Carbon- dale, Illinois. Gen. James M. Gavin, Chairman, Arthur D. Little, Inc., Cambridge. Michael Harrington, author, New York City. Leland Hazard, Professor of Industrial Ad- ministration and Law, Carnegie Institute of Technology; Honorary Chairman, WQED, Pittsburgh. E. William Henry, attorney, Washington, D.C.; former chairman, Federal Communica- tions Commission. Jerome H. Holland, President, Hampton In- stitute, Hampton, Virginia. ' Devereux C. Josephs, Mairman of the Board, WNDT, New York City. Milton Katims, conductor, Seattle Sym- phony. Arthur B. Krim, President, United Artists Corp., New York City. Ralph Lowell, Chairman, Boston Safe De- posit a:nd Trust Company; I'resident, WGBH Educational Foundation. Myrna Loy, actress, New York City. Arthur Miller, author, Roxbury, Conn. Newton N. Minow, attorney, Chicago; for= mer chairman, F.C.C. Mrs. Jennelle Moorhead; President, Na- tional P.T.A, Assoc.; Professor of Health Edu- cation, University of Oregon, Eugene. Hugo Neuhouse, architect, Houston. Prof. Antonia Pantoja, ]:'resident of the Board, Puerto Rican Forum;, New York City. I. M. Pe, architect, New Fork City. Gerard Piel, editor, Scientific American, New York City. Norman Podhoretz, editor, Commentary, New York City. Harold Prince, Broadway producer-director, New York City. Edward M. Purcell, physicist, Harvard Uni- versity, Cambridge. Robert Rauschenberg, artist, New York City. Edward :L. Ryerson, President, Chicago Edu- cational Television Association (WTTW). Carl E. Sanders, former Governor of Geor- gia, Atlanta. Susan Schmidt, editor, Colorado Daily, University of Colorado, Boulder. Budcl Schulberg, author, Los Angeles. Maria Tallchief, ballerina, Chicago. Alan Temko, Institute of Urban Affairs, University of California, Berkeley. Leslie Uggans, actress, New York City. Ed Wallach., actor, New York City. J'ene Wayne, Director, Tamarind Lithcg- rap. iy Workst-op. Los Angeles. Leonard Woodcock, Vice President, United Ant $ Workers, Detroit. VIitney Young, Jr., Executive Director, National Urban League, New York City. BED` KUBASIP: JOINS UNIT FOR PUBLIC TV Ben Kubasik, associated director of the Pul,lic Broadcast Laboratory of National Ed- ucational Television, was appointed yesteer- day as executive director of the National Citi tens Committee for Public Television. Mr. Kullasik, 38 years old, will assume his new duties on July 31 at an annual salary of ap- pro. Smately $40,000. The National Citizens Committee for Pub- lic Television expects to have as members mote than 100 leaders in the arts, educa- tion and business. Thomas P. F. Hoving, di- rector of the Metropolitan Museum of Art, is chairman of the group, which currently nuribers more than 60. IV.. r. Roving said yesterday that with Mr. Kulfasik's appointment "the committee can nov? begin to move. We have a helmsman now and `he certa`nly knows how to steer. He is the best in the business" B"hen the committee was formed in May, Mr. Moving sssid its main goal was to involve outstanding figures in the nation's cultural life in the promotion of a diversified pro- grain service outside commercial broadcs,st sch, edules. The committee has offices at 609 Fifth Ave- nue. FI DERAL SPENDING AND THE P PUBLIC DEBT Mr. MOSS. Mr. President, our citizens are always concerned about Fedeial spe.,iding and the public debt. But these ma Viers are of unusual concern at this time because of the military operations in Vietnam which are costing some $20 bill on a year. I have prepared a summary of current spending figures and debt totals which. I believe will be of interest to my col- leal 'ues. WHIBE DOES YOUR FEDERAL TAX MONEY GD? F ideral expenditures are dominated by item; connected with present world crises and past wars, including national defense, vets rans benefits, and interest on the debt. These three items alone account for almost four-fifths o:' total Federal spending-The Prolems and. Promise of American Demcc- racl p. 202. I:1 round figures, here are the 12 cate- gor.es of the administrative budget- which does not include Social Security: National Defense, $75t/ billion, 56.4 per- cen, International affairs and finance, $43/4 bil- lion, 3.5 percent. S:)ace research and technology, $51/3 bil- lion, 4.0 percent. Agriculture and agricultural research, $3 billion, 2.3 percent. Natural resources, $3t/a billion, 2.6 percent. Csmmerce and transportation, $3 billicn, 2.3 ' )ercent. Housing and community development, $1 billion, .07 percent. Health, labor, and welfare, $111/3 billicn, 8.0 Percent. E lucation, 42% billion, 2.0 percent. Vterans benefits and services, $6 billion, 4.5 percent. General government, $2% billion, 2.0 per- can,;.' Interest, $14 billion, 10.5 percent, (ldstimates for fiscal year 1968.) In June, Budget Director Charles L.. Schultze pointed out that Fed ral ex- penditures are going dowel in re)ation to the national income. Concerning[, admin- istrative budget expenditt.lres- hich do not include social security paymnts-he said: Excluding the costs of Vietnam Federal expenditures in the administrative budget were 16 percent of gross national product (GNP) in 1964-they will be 14 percent in fiscal 1967 and 1968. Taking all fou44 years of the Johnson Administration together, Fed- eral non-Vietnam expenditures averaged 14.2 percent of the gross national product, com- pared to 16.3 percent for the last sly years of President Eisenhower's Adnlinistra ion, the period after the end of the Korea War. Even including the cost of V etnam- which are running in excess; of $20 billion- the ratio of Federal expenditures to GNP, in both fiscal 1967 and 1968, will be! 16.8 per- cent, less than in 1955 and 1959 kyears in which there were no war expenditurres), and far below the 21 percent retk,ched dixring the Korean War. If social security is added in, expend- itures look like this-Schultze quote continued : If we use the more comprehensive! national income accounts budget (NIA), 4on-Viet- nam expenditures fall from 19.1 percent of GNP in..1964 to 17.6 percent in 1967. The ra- tio will increase to about 18 percent in 1968. The NIA budget (as a percentage of GNP) declines less. than the administrative budget primarily because of the rapidly rising ex- penditures of the self-financed trust funds. (Social Security and Interstate highway.) But these funds are running a substantial surplus--revenues have risen faster than ex- penditures. On any measure, non-Vietnam expendi- tures have risen less rapidly than) the na- tional economy. They account for a smaller- not a larger-share of our national income. THE FEDERAL DEBT HAS GONE UP Mt*JH MORE SLOWLY THAN PERSONAL, CORPO4t.ATE, OR STATE AND LOCAL DEBT Since 1947, the Federal debt has grown less than 30 percent, whil. private debt has risen about 550 percent ,and the debt of State and local gov4rnment about 700 percent: [Dollar amounts in ill ions 1950._._-.____ 1966_____.___. Increase (per- cent).....-. $256.7 $329.8 $83.9 $459.6 Corpora-1 tions $167; $533: 219! $20.7 $101.1 The facts clearly indicate teat the greatest portion of our Federal tax mon- eys and our Federal debt are spent on the security of the Nation. The bjll must be paid for war and defense. No one would deny a soldier the money n eded to fight a war; but many balk at pa'ing for the freedom, which that soldier! gained, when taxes are still. being collected 5, 10 or 20 years later. The responsibility of the Federal Gov- ernment is to protect the Nation's secu- rity and to render those service' which our citizens cannot provide as ndivid- uals. Wherever there is unneces ary ex- penditure or any degree of extraijagance, it should be ruthlessly cut out. But, by far the greatest proportion of Federal ex- penditures come in the military ald fixed cost areas. Proportionate to our national Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 H 8474 Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 CONGRESSIONAL RECORD - HOUSE July occurred in the past few months and in which your Committee has expressed a par- ticular interest. In addition, this letter will serve to re- view again with you, for your benefit and for the benefit of your Committee, the pro- cedures the Board follows in connection with the investigation and reporting of results in aviation accidents of this type. 1. Air collision at Urbana, Ohio, involving TWA DC-9 and a Beechcraft Baron B-55, privately owned, March 9, 1967. Since our last progress report to you in connection with this case, the detailed field investiga- tion has been completed; an extensive pub- lic hearing was held in Dayton, Ohio, on June 6-8, 1967; and we are presently receiv- ing comments and suggestions from inter- ested parties who have, under our rules, thirty days from the date of the hearing in which to submit them. 2. Delta Airlines training flight crash at New Orleans, Louisiana, March 30, 1967. The field investigation has been completed and a public hearing has been scheduled to begin in New Orleans on July 19, 1967. The hear- ing will be presided over by Member Oscar Laurel of this Board, and at that time all of the known or ascertainable facts will become a matter of public record. It is ex- pected that the hearing will not last more than two days. S. Lake Central Airlines, accident near Marseilles, Ohio, March 5, 1967. The field In- vestigation in this case has been completed and a public hearing is scheduled to be held in Indianapolis, Indiana, commencing on August 2, 1967. In this case, too, the hear- ing is expected to reveal all of the known and ascertainable facts and to point the way toward corrective action if such has not al- ready in factbeen instituted. I am sure'you are quite familiar with the investigative process of the Board in aircraft accidents of the sort we have been discussing, but it might be well to restate it for the record. The investigation of civil aircraft accidents is now the responsibility of the National Transportation Safety Board. This responsi- bility, with a staff of experienced air safety investigators, was recently transferred to us from the Civil Aeronautics Board under the provisions of the Department of Transpor- tation Act, but the function had been exer- cised by the CAB from 1940 until the recent transfer to us. The practice has always been to organize a team of experts in the various technical areas that might be involved in any such accident, under the leadership of trained in- vestigators representing the National Trans- portation Safety Board. After as exhaustive a field investigation as the situation requires and permits, the Board schedules and holds a public hearing at or near the site of the accident. At this'stage of the process, all in- terested parties, such as the airline con- cerned; the Federal Aviation Administration; air line employees associations; air-frame manufacturers; engine manfacturers; and any other possible interested, parties, are ac- tive participants in adding to and thus de- veloping a complete record of all the known or ascertainable facts. Subsequent to such public hearing, the Board analyzes the record and other informa- ),pn known to it and issues a formal report a the probable cause of the accident. course, as you know, the entire chain of rocess is conducted entirely in the open, and,as rapidly as facts are identified as un- contipvertible and relevant, beginning at the accident site, they are immediately made known, to the interested parties to the in- vestiga$ion and are at the same time released to the news media and the public. In fact, a major part of the constructive results which flow iron} accident investigations are the im- mediate putting to use for corrective pur- poses of all the information developed dur- ing the preliminary stages of the investiga- tion or in the public hearing. The Board appreciates and understands the continuing interest you and your Committee have with respect to the performance of the accident investigative functions by our Board. Please feel free to call on us at any time for information or report either as to our process generally, or as to the handling of any par- ticular case. Sincerely, JOSEPH J. O'CONNELL, Jr., Chairman. CONGRESSMAN HORTON INTRO- DUCES ANTISMUT BILL (Mr. HORTON asked and was given permission to extend his remarks at this point in the RECORD and to include extra- neous matter.) Mr. HORTON. Mr. Speaker, I am to- day introducing a bill which will permit a person to effectively remove himself from the mailing list of any publisher engaged in the dissemination of morally objectionable material. Existing laws, which are directed primarily at sup- pressing patently obsence materials, have proven woefully inadequate to protect the public from peddlers of filth. In recent months I have received nu- merous complaints from parents in my district who are appalled by the degener- ate publications which they and their children have received, unsolicited. It is imperative this body act promptly to protect people not only from that very limited range of materials which falls within the legal definition of obscenity but also from the myriad publications which are not within that definition but are, nonetheless, repulsive to the vast majority of Americans. Because the purveyors of smut almost universally develop their mailing lists by purchasing subscription lists from repu- table publications, any man or boy who subscribes to even such a wholesome publication as a sports magazine is likely to receive printed garbage at some future time. It is this unwarranted invasion of the individual's privacy which my bill seeks to prevent. The Horton bill provides that any per- son who receives unsolicited mail which he deems to be obscene, lewd, or indecent may return it to the Postmaster General and request that the sender be notified to cease sending such mail to the com- plainant. The bill specifically provides that any parent may take such action to protect the privacy of his children as well as his own privacy. Upon receiving a complaint, the Post- master General is required to notify the sender to halt all such mailings to the complainant. If the publisher continues to send smut to the complaining individ- ual, the Postmaster General is directed to schedule a hearing to determine whether or not the act has been vio- lated. If the act has been violated, the Postmaster General may direct the At- torney General to apply to a U.S. district court for an order demanding compli- ance with the act. The bill provides that if the sender does not comply with this court order he is subject to the penalties for contempt of court. This measure, which respects all of the recently announced constitutional 11, 1967 limitations on the police power of the Government, will provide every Ameri- can with a simple and totally effective method of preventing both his own privacy and that of his children from being disturbed by unsolicited and highly offensive pornography. I know many of my colleagues share my contempt for purveyors of smut and I look forward to your strong support of this lnucla-needed legislation. THE RESOLUTION OF THE MIDDLE EAST CONFLICT (Mr. HORTON asked and was given permission to extend his remarks at this point in the RECORD.) Mr. HORTON. Mr. Speaker, I am today introducing two much-needed measures to aid in settling the present conflict in the Middle East. The first of these measures is a sense-of-the-House resolution expressing what I believe are the guidelines within which a settlement must be achieved if it is to be enduring. The resolution provides that the sover- eignty of Israel must be recognized, that the Suez Canal must remain an inter- national waterway open to all nations, that all nations must recognize as final the boundaries that will emerge from the anticipated negotiations, that the ship- ment of arms to all countries of the Middle East be halted and that all Middle Eastern countries immediately devote their full attention to the longstanding problems of the Palestine refugees. The second measure I am introducing should provide the necessary stimulus to cause the countries of the Middle East to relocate these refugees. It is clear that if we are to forge a lasting peace in this historically contentious area these refu- gees, who have- long been one of the prime sources of friction between the Arab and Israel peoples, must be removed from the refugee camps along the 1949 frontier between Israel and the Arab nations and that adequate provision must be made for their permanent settle- ment elsewhere. Because the recent con- flict has dramatically increased the num- ber of refugees on both sides of the borders, it is now even more important that the refugee population be relocated. Those of us who have been intimately familiar with the situation in the Middle East have long recognized the continu- ing threat to peace which these refugee camps pose. Fortunately, many carefully considered and thoroughly documented newspaper articles have brought the im- portance of this problem to the public attention in recent days. However, public awareness of the problem is not enough. Absent positive action by one or more of the great powers of the world, these refugee camps and the concomitant hostility they generate will persist long after the present crisis of the Middle East subsides. My bill directs the Secretary of State to' reimburse-to' such extent as he deems appropriate-any Middle Eastern country for expenses it incurs in relo- cating Arab refugees from Palestine to within its own borders. These payments Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 July 11, 1967 CONGRESSIONAL RECORD -HOUSE CIVIL AERONAUTICS BOARD, i~ Washington, D.C., July 10, 1967. Hon. E ARI.EY 0. STAGGERS, Chairman, Committee on Interstate and Foreign Commerce, House of Represent- atives, Washington, D.G. DEAR MR. CHAIRMAN: This is in response to your letter of May 19, 1967, inquiring about the Board's position regarding the respective roles which interstate and intrastate carriers should play in aviation. The Board's policies towards intrastate carriers, and actions by State regulatory com- missions, have evolved in the context of the limited coverage of the Federal Aviation Act over the economic aspects: of intrastate ac- tivities. While that Act extends safety regu- latory control over any operation "in", or which "directly affects" interstate commerce, the economic regulatory provisions do not explicitly apply to operationns which "affect" commerce but are not "in commerce (I 101 (4) and (21)). The scope of this statutory grant of juris- diction affects the Board's actions with re- spect to both the intrastate aspects of the operations of interstate carriers and the op- erations of intrastate carriers. As to inter- state carriers, a State Supreme Court has held that the State commission can regulate the air carriers' rates for local transportation between points In the State (as opposed to rates for interstate passengers moving be- tween the same points). (people v. Western Air Lines, 268 P.2d 723, .appeal dismissed, 348 U.S. 859.) Another State Supreme Court has ruled that its State commission could not require an Interstate carrier to continue serving the intrastate portion of a route over which the Board had authorized the carrier to discontinue service. (Frontier Air- lines v. Nebraska Dept. of Aeronautics, 175 Neb. 501, 122 N.W. 2d 476.) As to the so-called intrastate operators, where a carrier operates only between points located within a single State, the Board's jurisdiction has been judicially upheld if the carrier pzrticipates substantially in the car- riage of traffic moving interstate (C.A.B. v. Friedkin Aeronautics, Inc., 246 F.2d 173; C.A.B. v. Canadian Colonial Airways,. 41 F. Supp. 1006), or if the carrier files its air- craft over a place outside the State. (Island Airways v. C.A.B., 352 F.2d 735.) The Board has never asserted authority over purely intrastate carriers (not carry- ing interstate traffic), even where the intra- state carriers compete with federally cer- tificated ones. Furthermore, the Board does not intervene before State commissions to oppose applications by local carriers for in- trastate authority, although it may on occa- sion file an amicus statement. The same pol- icies are generally followed with respect to State regulatory commission matters involv- Ing interstate carriers. The lack of federal control over intrastate carrier operations by air did not present sub- stantial economic problems until recent years. When the Civil Aeronautics Act was enacted in 1938, and for Many tears there- after, operations by intrastate carriers were not extensive; and no State de led inter- state carriers permission tp opera over in- trastate segments. Furthermore, are was little regulatory action by the S tes. By 1961, hoviever, 18 States had begun to Issue certificates of public convenience an neces- sity for intrastate common carriage y air. In California, at least, passenger traffic s al- ready sufficient to enable intrastate ca iers nia, the Board sought over a decade ago to enjoin the intrastate carrier, Pacific South- west Airlines (PSA), from operating unau- thorized flights which carried many passen- gers whose journeys began or ended outside California. (Fried kin, supra.) Eventually, PSA agreed to entry of a cease-and-desist order which barred such carriage. (Western Air Lines, Inc. v. PSA, CAB Order 1-19655,) Earlier this year the Board exempted PISA from Title IN' of the Act to the extent that those statutory provisions applied to PSA's othe >pies encl. several ' Pacific Ai4 Lines (Pacific), a subsidized car- rieI. The al:ifornia Commission has also 11- canoed at least one other carrier for opera- mi,sion as undertaken to assert exclusive jursdicti n to authorize new nonstop service between 4nchorage and Fairbanks, and ini- cer lificat4l carrier, Northern Consolida,ed Airlines, f tom offering such service. The State corimissi n also entertained an applicatl.on by an ant aatate carrier, Interior Airways, to offer the ery same service in competition with the xisting federally certificated car- rier; Alas Airlines. Although no final dcci- sio:I has en reached, a State court has en- joiled then Commision from authorizing In- teror to oerate; and Northern Consolidated has begun service. 7'he Fed4rai Government has a large stake in the sou d development of antra-Alaskan ser 'fee. Be ore Alaska became a State and ens:cted it aeronautics statute, the Board hail exclusf a jurisdiction over all air trans- portation lthin or to Alaska. From 1938 through mi -1959, the total subsidy bill for the Alaskar4 air carriers was $77 million, of which $42 million was for antra-Alaskan operations. or the two federally authorized carriers on he Anchorage-Fairbanks route, the subsidy pill for their total operations in all areas wa about $16 million during fiscal 19E2-1966 a d I. estimated to be over $2.6 mi: pion for cal 1967. If the Alaska Trans- PO Cation C mission allows an intrastate carrier to di rt Anchorage-Fairbanks traffic, th 'Federal reasury could bear much of the resulting bur en. It does no appear that State authoriza- tio as for ant astate air carriers have had a substantially adverse effect upon the devel- opinent of t' federally regulated air trans- potation sy em. They have given rise to problems, e.g the impact of PSA's operations in California upon Pacific, which is federally subsidized. ut there is little doubt that PS S's operat ns have had a salutary effect upm air tra el in California by way of :m- proved servic , lower fares, and increased 1,o1- un.e. This y be an appropriate place for thin Board to apply the policy that it should no pay sub idy to a carrier to provide air- line service ome other carrier will provide wi ,hout su sidy-which is easier said than !ifmiiarly if the State Commission in Alaska sh ld insist on actions impairing th r earns ability of federally subsidized ca.Tiers, o r Board may be driven to consid- eri[rg wit rawal of Federal subsidy. I very match do t, however, if it will come to that. h sum/nary, itch seems to us that there is a useful r e which intrastate air carriers can plz.y; t *t in most cases this will not im- pirrge duly upon the federally regulated sys to ;that we should undertake to mini- mi2e 'conflicts" through informal contacts wi State officials; that we should not in- th s purpose of asserting or extending Federal ju lisdictfon; that we should be alert to pre- ve:lt intrastate air carrier operations from impinging unduly upon the federally regu- lated system by taking such actions as are op an to the Board under the present law; and that, if it should prove unhappily that the 10 8473 present law is not'adequate for that purpose, we should then come to Congress for a legis- lative remedy. Sincerely yours, CHARLES S. MURP Y Chair,man. JULY ll, 1967. Chairman, Civil Aeronautics Board, Washington, D.C. DEAR MR. CHAIRMAN: Thank you! for your letter of July 10 replying to my i.jrqulry of May 19 regarding the Board's position on the representative roles which interstate and in- trastate carriers should play In avi tion. at is a useful role whiph intra- P' tore th sta carriers can play, and that there is a pro em of the extent to which interstate carri s should be supported byte Board where intrastate carriers provide improved and a qua.te service, at lower fars, to the AIRhIN ACCIDENT INVES''IGA- TIONS (Mr. STA ERS asked and was given permission extend his re arks at this point in the RECORD and t include extraneous; tter,) Mr. STAG ERS. Mr. Speaker, many Members of the House may be inter- ested in the rogress of ives igations into a number f airplane crash s which have shocked tie public during] the last 3 or 4 months.' For their information I include a lette from the Chairman of the National lTransportation! Safety Board to the ommittee on Interstate and Foreign C coerce in the1 RECORD. As may be se 'from the letter- The investigatl n of civil aircraft acci- dents is now the responsibility of the Na- tional Transports ion Safely Board. Investigations into three aircraft acci- dents oceurrin in March 1967 are presently under ay. It is to he noted that the investi ations follow standard procedures, in hich well-qua fled ex- perts are empl ed. The Public is kept informed throw hout the investigation by the Safety oa.rd-th.e primarily re- sponsible body After their investiga- tions are cornlete, detailed findings and the proba le causes of the acci- dents will be r leased. Our commi ee has been kept in- formed that study of theccidents was undel'way. I If any legisl tio:n is indicate as a re- sult of any re orts of the Safety Board, and if such 1 gislation it referred to our committee, e shall hope to itct on it with all du speed. The lett from the Chairman of the Natio al Transportation Safety DEPANNT OF TRANSPORTfTIOZ, AL TRANSPORTATION AFE:'p BOARD, Washington, D.C., July 17 J967. Hon. HARLEY 0. STAGGERS, Chairman, Committee on lnterstatond For- eign Commerce, House of resenta- tives, 'Washington, D.C. - i DEAR MR. CONGRESSMAN: In tocordance with your request, the Board is ore than happy to bring you up to date on he status of three commercial. airline aciide h is which Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 arily operate be- nnection with California r involve s jurls- Ordars alt Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 Ay 11, 1-967 are to be made directly to the host gov- ernments subject to such terms and con- ditions as the Secretary may deem nec- essary. It is my fervent hope that if this bill is enacted Into law, the Soviet Union, in furtherance of the spirit of cooperation which was manifest at the Glassboro summit meeting, will join with the United States in this worthwhile and nonpolitical effort to relieve world ten- sions. Since 1948 many thousands of Arabs who were formerly residents of Palestine have existed in the miserable squalor of refugee camps. These camps on the Arab- Israel frontier have not only been a source of continuing irritation to both sides, but also senselessly demeaned the residents of these camps who nearly 20 years ago were victims of the Arab-Israel war. An entire generation of refugees has grown to virtual maturity knowing no other life. United Nations statistics indi- cate that over one-half of the popula- tion of these camps is under the age of 18. If this body enacts into law the pro- posal I am making today, this Nation will not only be helping to eliminate one of the myriad sources of animosity that produced the recent crisis, but it will also be helping to terminate the senseless waste of human resources that necessar- ily continues as long as these refugee camps remain. DAY CARE ACT OF 1967 (Mr. REID of New York (at the re- quest of Mr. PRICE of Texas) was granted permission to extend his remarks at this point in the RECORD and to include ex- traneous matter.) Mr. REID of New York. Mr. Speaker, I am introducing today the Day Care Act of 1967 which was developed by Senator JAVITS and has already sponsored by a number of Members of both the House and the Senate. This legislation will provide day care for children of low-income families in order to enable their parents or relatives to choose to undertake vocational train- ing, basic education, or employment. Far more than merely providing additional day-care facilities, this measure is de- signed to attack the problem of grow- ing welfare rolls by encouraging parents to find vocational training or employ- ment once they are assured that their children will be well taken care of during the day. The increasing number of Americans receiving public assistance is staggering. In New York City alone, the monthly average of recipients rose from 531,000 in 1965 to 621,000 in 1966; nationally, some 7.5 million people are aided by the four federally sponsored welfare pro- grams. In dollar terms, the total cost has risen from $4.2 billion in 1962 to $6.1 billion in 1966 and' these figures provide assist- ance to only one-half of those Americans whose income level is below the na- tional poverty standard. However, a considerable proportion of the 900,000 mothers receiving assistance under the aid-to-dependent-children CONGRESSIONAL RECORD - HOUSE H 8475 program are anxious to undertake train- ing and employment if they can place their children in adequate day-care fa- cilities. These mothers want their chil- dren to grow up with parents who are working, participating members of the community, and who are not dependent on the monthly relief check. There is .a second important way in which this day-care program would re- duce the cycle of dependency. The large number of personnel needed to staff and maintain the day-care centers can, to a great extent, be drawn from among the mothers who children make use of these facilities. Several existing man- power training programs can assist in training these women for such subpro- fessional positions. The Headstart pro- gram has already indicated that parents and neighborhood residents actively par- ticipating in their children's experiences add meaningfully to the entire program. There are a number of other signifi- cant features to this legislation which I believe are worthy of special mention. Provisions are included in the program to make it self-liquidating. The Secretary of Health, Education, and Welfare- whose Department will administer the program-may require at least partial payment for the day-care services in the case of those families who, through em- ployment or otherwise, are able to make a contribution. Coordination at all levels of govern- ment and between all similar programs is mandated by specifying certain mech- anisms of program administration. Finally, evaluation requirements are written into the bill so that congressional oversight will be a meaningful, concur- rent procedure. The bill would authorize $60 million for 1 year as a new part B of title V of the Economic Opportunity Act. This should provide about 50,000 new, day- care slots-not nearly enough to meet the need but certainly a meaningful start with possibilities for expansion, and hope for self-confidence and self-sufficiency for many families who now know only a future of despair. THE NEW LEFT (Mr. ASHBROOK (at the request of Mr. PRICE of Texas) was granted per- mission to extend his remarks at this point in the RECORD and to include ex- traneous matter.) Mr. ASHBROOK. Mr. Speaker, Walter Trohan has written a most comprehen- sive article on the New Left which ap- peared in the Sunday, July 9, 1967, issue of the Chicago Tribune. Mr. Trohan is the chief of the Tribune's Washington bureau and has spent more than a year studying and reporting on campus move- ments which he finds shows a "hostility to law and order, to civilized behavior and to the concept of liberty under law." it is characterized by "anarchism, nihilism, and negativism and it flouts and dero- gates the institutions which give it the freedom it enjoys." Mr. Trohan's report is "must" reading for any American who wants to have a better understanding of the New Left in America. I include the article with these remarks, Mr. Speaker, and I hope all of the Members will read it closely: THE NEW LEFT (By Walter Trohan) The Student New Left is a many splintered thing. A common denominator is most diffi- cult to find. The New Left is a mixture of theory, sociological action, and bitter pro- test. It is linked with the civil rights move- ment, the fight against poverty, and the war in Viet Nam. It Is all of these things, yet no one of them. If It is any one thing, it is the cul- mination of the age of protest. We see it in flag burning, draft card destruction, demon- strations, and challenges to all forms of au- thority. It carries the seeds of revolution in its anarchism-and therein lies its great danger to those who revere and respect democratic law and order. The New Left is of the campus but goes beyond the campus. It involves students, faculty members, writers, intellectuals, beat- niks, and hippies. Many of its adherents dress wildly to accentuate their nonconformism. They wear beat-up trousers and dresses, long hair and beards, and the rest. Sometimes it is difficult to distinguish among the sexes. Members of the New Left are in the minority, but they have Influenced many of their fel- lows, and their activities affect almost every- one on all campuses, directly or indirectly. Let it be understood that the New Left is not communist, altho it is Communist infil- trated. Nor does it embrace all youth; the vast majority of young people have no part of it. This infiltration is coming from vari- ous directions. First, there is the Moscow wing in the Communist party and its youth organization, the W. E. B. Du Bois clubs. Second there is the Trotskyite wing of com- munism in the Socialist Workers party and its youth affiliate, the Young Socialist alli- ance. Finally, there is the arm of the pro- Chinese Communists, the Progressive Labor party. However, these Communists are neither in control of the New Left nor work- ing in concert. They see the movement as a means of gaining access to college cam- puses, reaching the minds of students, and gaining an aura of respectability. Many people are inclined to dismiss the New Left as another harmless manifestation of college foolishness, such as swallowing live gold fish or staging panty raids. There is more to the movement, however; if orga- nizers and Communists have their way, a dagger might be forged for the destruction of the American way of life. The average Amer- ican sees the New Left In terms; of protest marches and demonstrations. These should be enough to convince him that the move- ment has power to mobilize Its members in large numbers to win attention or conces- sions. One of the major aims of the New Left is to destroy the links between American in- dustry and colleges. Industry and indus- trialists are a major source of college revenue. Universities ate Institutions from which in- dustry can recruit the talent it needs and which serve as a valuable adjunct in re- search. The New Left is working to under- mine this relationship. It attacks industry as part of tht Pentagon complex, which is blamed for policies the New Left dislikes. The strongest attacks have been levied against industries directly producing for the war effort. For some, morality is "bourgeois" and "old fashioned." Some reject bananas as food but are devoted to them for hallucinatory smok- ing. Some smoke marijuana, and others dote on LSD or other drugs. New Leftists can and do look like the conventional boy or girl next door, and they often are the brightest students. A key ingredient of the New Left is ex- pressed in a word they like; "alienation," although its meaning is not always clear. Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3. H 8476 However, to the New Leftist it signifies whit he derides as "the establishment," the "power structure," or "the military-industrial com- plex." "The young people of the 'movement,'" writes one of its spokesmen, "make no poll a protest; they rage against the war becaiwe they see it as the embodiment of all they are fighting in American society. It is a product of 'the system' from which they ale alienated." The mood of the New Left is describes by one of its spokesmen, the Students for 3 Democratic Society S. D. S.), as one of dis- illusionment, pessimism, and alienatior.. Many see strong nihilistic or anarchists: strains in declarations that our present so- ciety is decadent and that bourgeois moral values are outmoded. In the core of the move- ment there seems to be a passionate desir-s 'to destroy, to hate, and to tear down. The,,, hate free society, the concepts of law anti' order, and established values. "Among the central questions that a radi- cal ideology must attempt to answer are these," according to a New Left spokesman: "What are the fundamental changes needed to transform society, .and what are the steps that radicals can take to bring these about?" These steps have Included defiance of law, civil disobedience, and disparagement of the American heritage. But when the New Leftists are asked to :describe their new so- ctety, they offer little other than impious in- cantations and misty generalizations. They have no practical suggestions in their accent on the negative. The Dow Chemical company, which is a major manufacturer of napalm, a fire chemi- cal, has been a major target. Last Feb. 28, a student demonstration was sponsored at Old Dominion college, in Norfolk, Va., when company officers were conducting job inter- views. The demonstration was orderly, altho placards and literature attacked the com- pany. A much larger anti-Dow demonstration was staged at the University of Wisconsin, in Madison. The student newspaper carried the headline: "S. D. S. to Block Chemical Com- pany Interviewing" and told of a massive sit-in against the interviews. Still another demonstration was staged at Penn State uni- versity. Students walked into the room where interviews were being conducted and called for a discussion of the "moral issues of the war in Viet Nam." The right to dissent is the key weapon of the New Left. However, its leaders would confound this right with what they believe to be a right to break any law that does not please their. Civil disobedience of the New Left has manifested itself in blocking traffic, lying down in doorways, and Invasion of pri- vate and public property. The New Left doesn't believe in attempting to repeal laws it dislikes or believes to be wrong or im- moral Instead It disobeys them and encour- ages others to disobey them. Running thru the New Left movement, like a weird leit motif, is a pattern of per- sonal habits as reflected in dress, language, and moral habits. In some respect these serve as recognition symbols for its members, not only on college campuses but elsewhere. Many New Leftists are identified by their beatnik-style long hair and sandals. Some of the young men wear beards, and the young women dress in black stockings, old shoes, and odd-fitting dresses. Often per- sonal cleanliness is neglected, as is evi- denced by dirty finger nails, unbrushed hair, and unwashed faces. In the anti-Viet Nam war demonstration in Kezar stadium in San Francisco last April, a high percentage of the participants were beatniks and hippies, who were conspicuous with their long hair, unkempt beards, san- dals, and multicolored wearing apparel. They were heckled during their parade to the sta- dium by pro-Viet Nam wax demonstrators, who kept calling, "Take a bathi" CONGRESSIONAL RECORD - HOUSE J 11, 19 A curious psychology seems to underlie the desire for unconventional dress. At the heart of the New Left is the concept of re- bellion against society and its institutions. Bizarre dress becomes, in the eyes of the New Leftists, a way of striking back at what they call regimentation, They want to be differ- ent. They seek ways to scoff at established institutions-not only to satisfy their own inner feelings of alienation, but to antago- nize those who believe In the accepted mo- rality. To the New Left, unconventionality is an inherent characteristic of its view of the world. Associated with the habit of weird dress is widespread use of drugs, or the psyche- delic world. It is difficult to state with accu- racy the extent of hippie activity among members of the New Left-the use of LSD, marijuana, opium, dried banana skins, and other types of drugs or supposed drugs. Obviously, many New Leftist followers have not dabbled in this activity, just as many do not adopt the strange mode of dress. How- ever, the New Left does nothing to discour- age use of or experimentation with drugs. Considerable publicity about drugs on cam- pus has appeared in the press. Don Smith, the onetime New Left president of the Stu- dent Council at Iowa State university, ad- mitted that he smoked marijuana at pot par- ties on the campus. The Scholastic, student magazine of the University of Notre Dame, has discussed use of drugs on the campus. The use of drugs seems to be part of the shock psychology of the New Left. It is a demonstration of its spirit of rebellion and practical evidence of Its unconventionality. Still another hallmark of the New Left is the use of obscene language. Here again is evi- dence of the desire to be different and to be nonconformist. Four;letter words ere fre- quent in "New Left Notes," the publication of the S.D.S., the New Left's campus bastion. Its writings are designed not only to shock, but also to make the authors feel themselves to be part of the "liberal modern trend," which accepts and encourages such lan- guage in literature and daily life. Some obscene language even appears In college newspapers. The Observer, ?.tudent newspaper at the University of Notre Dame, carried an article last Dec. 8, on California's anti-nudity laws. The story contained a paragraph sprinkled with obscenities. The March 14 issue of "The Spectrum," a publi- cation of the State University of New York, In Buffalo, published a review of a perform- ance given by "The Pugs," a university musi- cal group. The article described, in "frank" language, the music performed and the lyrics employed. The songs ranged from a gutter description of sex to an obscene description of American foreign policy. The moral standards of many New Leftists can be stormed up In the dictum: "What- ever you want to do goes!" S. D. S. members have held some meetings in rural resort areas with members of both sexes, dressed and undressed, using the same cabins. In sex, as in language, dress, and drugs, some New Leftists believe they can assert their in- lividualit;y and personality by unconven- onal behavior. It is ironic, however, that members of the New Left in their desperate effort to throw off the fetters of convention !adopt a code even more rigid and binding i:han what they throw off. A San Francisco church recently offered its facilities to hippies, and a controversy c.rose. The clergyman who made the offer e aid that hippies have "a very strong and urgent spiritual hunger" and the church should help them. An official of the church, l.owever, took exception, saying: "When a group of people reject the moral code of our society, curse and swear, are admitted forni- cators, are physically unclean, reject, if' not despise, the law, etc., I believe they are un- Christian and immoral. The fact that they may practice principles which are also Christian, does not make them either Christian or religious." Another key characteristic of the New Left Is unrelenting criticism of tae United States usually accompanied by )tpproval of its enemies. The New Leftists not only shout that the United States is wrong but they also assert that this country must have an evil, malicious, and unwoz;thy motive for almost any action it takes. In the war in Viet Nan, the United States is accused of "murd' r," "destroying civilians," and "unjustifleT and immoral bombing." At the same time virtually nothing is said about Viet' Cong or com- munist atrocities, raids, an terror tactics. This hatred of things Amer can constitutes a devil theory of modern hi tort'. An anti-Viet Nam war rally was held at the University of Hawaii on March 21, 1966. The platform of Hernenway hall was dec- orated with a large-parody o the American flag. Dollar signs replaced th stars; the flag was red, white, and black, d the stripes were pointed. A Viet Cong 1ag was flown. There were two signs, one w1 h swastikas at the top and bottom, which byre the legend, "Down with L. B. J. and his fascist running dogs."' The anti-Americanism of t a New Left is demonstrated in many way . Draft cards have been burned. The fag has been desecrated. Bitter attacks are ade on Amer- ican policy and on our leads s. In an anti- war demonstration in New Y 4 rk City, floats included a replica of the Statue of Liberty lying on Its side. Trucks wore filled with parts of mannequins to sym olize destruc- tion Ili Viet Nam. There was ;a replica of a submarine painted yellow. More than 50 persons burned their draft cads In Central Park during the demonstrati n in a cere- mony organized by the Cor ell university chapter of S. D. S. "They are a minority, a tiny minority, and not a very representative one 't that," the Washington Daily News commented edi- torially on the New York draft card burning. "What unites them is their Faulty vision. They have a truly. astigmatic! view of the war. They ignore United States motives in Viet Nam: to let the South Vietnamese set- tle their political future free fr nit subversteion from the north. They ascribe o he Unid States only the basest of mot ves: murder, conquest, dominance." One looks in vain for any, comparable criticism of North Viet Nam, of its com- inunist allies, Soviet Russia anti Red China, from the New Leftists. Not 11 the New Leftists, or even a majority of th~m, are Com- munists, but many Commun#ts are New Leftists. The New Leftists seem,to share the basic communist hatred of America, a hatred that apparently can be satisfied only by the total destruction of this county 1. In its nihilism and anarchism !es the dan- ger of the New Left. The Natio al Guardian of April 8 carried this analysis o S. D. S.: "A year ago S. D. S. was discussing the possi- bility of moving `from protest to politics.' Today the discussion is from p otest to re- sistance.' The distinction betty ten politics and resistance is so great as Ito Imply a qualitative change. By politics the S. D. S. meant the creation of a leftist pllliticai force in the United States that would work with- in the norms of society. By resistance, ac- cording to Gregory Calvert, S. D. S. national secretary, is meant this formulation: 'No matter what America demands, it does not possess us. Whenever that demand comes- we resist: " 1 - The concepts of "resistance," rot working within "the norms of society,"; should be noted. The S. D. S.. plans to orga ze unions of draft resisters. Carl Davidson, D. S. na- tional vice president, said anti- raft orga- nization "moves from protest activity to ac- tivity that takes on more and l4ore of the characteristics of a seditious resistance move- I Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 H 8466 Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 CONGRESSIONAL RECORD - HOUSE July 11, 1967 challenging his election under the Geor- gia election code of 1964. This litigation was terminated on March 30, 1967, by the Georgia supreme court's denial of a writ of certiorari to the Georgia court of ap- peals which, on January 25, 1967, had held in favor of Mr. BLACKBURN on the key issue in the case. In short, they adopted Mr. BLACKBURN'S contention that the election officials had been cor- rect in programing the computers to re- ject ballots where the voter had punched out the scored block for either "straight Democratic ticket" or "straight Republi- can ticket" and also punched out the scored block for the congressional can- didate of the opposing party. The court ruled that these were invalid "over-votes" and not valid "split ticket votes," as claimed by Mr. Mackay. As a result of the adverse court deci- sion, Mr. Mackay withdrew his election contest in the House by letter to the Speaker dated April 13, 1967. Accord- ingly, the committee has concluded that Mr. BLACKBURN should be declared to be entitled to his seat and urges adoption of House Resolution 542. If the gentleman from New York [Mr. GOODELL] will permit me to, I would like to yield for 1 minute to our colleague from Georgia [Mr. DAvis]. Mr. DAVIS of Georgia,. Mr. Speaker, I was named by the Speaker to serve on the Special Elections Committee on Cam- paign Expenditures which had its exist- ence from. the general election of 1966 until the organization of this Congress in January. As a part of my responsibility serving on that committee I was the Member of Congress who objected to the seating of the gentleman from Georgia [Mr. BLACKBURN] at the time that the 90th Congress was organized. I felt since the election was in doubt and was under contest by Mr. James Mackay that it was my responsibility to interpose this objec- tion. In the light of the fact that Mr. Mackay withdrew his objection by his letter of April 13, 1967, I am happy to join with the subcommittee, that is, Mr. ASHMORE's subcommittee, of the Com- mittee on House Administration, of which I am also a member, and to en- dorse the recommendation of that committee. Mr. GOODELL. Mr. Speaker, I also join in the committee decision in this in- stance to dismiss the contest brought by Mr. Mackay against the incumbent con- testee, the gentleman from Georgia [Mr. BLACKBURN]. It should be emphasized that at this stage Mr. Mackay has re- quested the withdrawal of his contest, so there is really no issue left to argue about. I think there is one point, however, that should be made in this debate which affects all of us in the possibility of elec- tion contests in our own districts in the future. We must move to clarify the whole procedure of election contests in the interim between the election date and the opening of a new Congress. In that period the jurisdiction lies to a de- gree in the Special Committee on Cam- paign Expenditures. As a practical matter, the ultimate decision for investi- gating and determining election contests rests with the new Congress and with the Subcommittee on Elections of the Com- mittee on House Administration. We have had in the past confusion in elec- tion contest cases. The contester in some instances has felt he had complied with the law by giving notice of contest to the Special Committee on Campaign Ex- penditures and failed to give notice under the law to the Clerk of the House and the Subcommittee on Elections of the Com- mittee on House Administration. In addition, Mr. Speaker, it seems un- necessary that we have two such sub- committees operating with overlapping jurisdiction, We have moved to a degree to provide that the membership of the Special Com- mittee on Campaign Expenditures will be the same as the membership of the House Subcommittee on Elections. ? Perhaps this would be a solution. In any event I believe this Congress should move to try to eliminate the overlapping and confusion that exists in the present law between the jurisdictions of these two committees. It caused some difficulty in this instance. The Special Committee on Campaign Expenditures, spent con- siderable time debating its proper juris- diction, and the special committee ulti- mately, by a divided vote, recommended that the gentleman from Georgia [Mr. BLACKBURN] not be seated on open- ing day. There was considerable dif- ference of opinion as to the proper juris- diction of the Elections Subcommittee as distinguished from the campaign ex- penditures special committee in this situation. Mr. Speaker, I would hope that we could move to eliminate any possibility of this type of confusion in the future. Mr. Speaker, one other point should be made. It is clear from the history and the contest that was brought by Mr. Mackay, that there were serious difficulties ex- perienced with the votomatic voting machines and the cards that were used and which were punched out by the voter. In many instances they appar- ently did not go through the machine properly. There were difficulties in counting the ballots. Because of this there were a great many allegations, brought by Mr. Mackay, with reference to this subject matter. They were not crucial turning points in the determination of this case. Mr. Speaker, we did not go into these allegations in any great detail in our sub- committee. We do not feel that it is our obligation as a committee of the Con- gress of the United States to investigate the relative merits of votomatic voting machines and other machine. But, cer- tainly, when we are dealing with a prob- lem of election contests and are trying in some instances to have a recount of the vote, we must be concerned with the automatic equipment which is used that might make it impossible to have an accurate recount, where such a recount may be indicated, as determined by our subcommittee. Mr. Speaker, the difficulties were numerous with the votomatic machines in this election. Another aspect of the election was the difficulty in controlling the votomatic cards. Allegations were made to the ef- fect that some of them were left out in the corridors overnight and then put through the machines, and so forth. Mr. Speaker, we do not pass judgment as a subcommittee, and as a committee we do not ask Congress to pass upon these allegations. But we do call atten- tion to the fact that these allegations were made and that there appears to be some substance to the allegations that great difficulties were experienced with reference to this particular type of equipment. It is very clear, however, that the decision of the Georgia courts to the effect that Mr. BLACKBURN won this election under the laws of the State of Georgia was correct and that the gentle- man is surely qualified to be seated. Mr. Speaker, the committee is unani- mous in recommending the dismissal of this election contest. Mr. BLACKBURN. Mr. Speaker, will the gentleman yield? Mr. GOODELL. I yield to the gentle- man from Georgia [Mr. BLACKBURN]. Mr. BLACKBURN. Mr. Speaker, I want to say that I certainly appreciate and thank my colleague, the gentleman from Georgia [Mr. DAVIS] for joining in the endorsement of the resolution which has come from the Committee on House Administration. I want to say on my own behalf that I am certainly grateful for the consider- ation shown to me by the leadership of the House and by the Members of the House during this period when this mat- ter was under debate. Mr. ASHMORE. Mr. Speaker, I move the previous question on the resolution. The previous question was ordered. The SPEAKER. The question is on the resolution. The resolution was agreed to. The title was amended so as to read: "An act declaring that Benjamin B. Blackburn was duly elected as Repre- sentative from the Fourth Congres- sional District of the State of Georgia to the 90th Congress and is entitled to his seat." A motion to reconsider was laid on the DER ISRAEL ADMINISTRATION (Mr. FARBSTEIN asked and was given permission to extend his remarks at this point in the RECORD and to include ex- traneous matter.) Mr. FARBSTEIN. Mr. Speaker, we have heard a great deal in recent days about the restoration of the status quo ante in Jerusalem. In a speech some days ago, I predicted that Arabs of Jerusalem, no less than Jews, would be pleased by the results of the unification of Jeru- salem under Israel administration. The press reports since that time-and I speak of every reliable press source-con- firm that this is the case. Jerusalem is free again, to Arabs, Christians, and Jews. What is holy to all three is receiv- ing careful attention and the people of the former Arab sector are being treated with generosity and brotherhood. I cannot help but contrast this, Mr. Speaker, to the late administration of the old section of Jerusalem under the Jor- danian Government. A story which ap? Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 July 11, 1967 CONGRESSIONAL RECORD -? HOUSE H 8465 der the law because a noncandidate can- Mr. GOODELL. Mr. Speaker, I yield not claim a right to the seat. These myself 3 minutes. precedents are cited on page 2 of Report Mr. Speaker, I join the distinguished No. 365 accompanying the resolution. gentleman from South Carolina, who Therefore, in accordance with the ,hairs this subcommittee, in the opin- same grounds asserted! in the conteste i; came down to a very simple ma election case, praying that the House i - The alleged contestant. Mr. Lowe. election invalid and the seat vacant. Th South Carolina indicated, Mr. Lowe had petition was referred to the Committ b -en a candidate in the Democratic pri- on House Administration on May 8. rrary and failed. After the nominee of attacks Mr. THOMPSON's election o the Democratic Party withdrew, Mr. ground that the nomination of his Dem L )we claimed there were some violations ocratic opponent was illegal, being con ` of Georgia law with reference to the trary to the Georgia Election Code an nomination of the replacement of Mr. the rules of the State Democratic Party, VJ eltner on the Democratic ticket. Those and that, since there:. was no lawful problems with the nomination of the Democratic candidate, the election of : D(gnocratic candidate were carried to Mr. THoMPsoN was a nullity. The report ' court. of the committee points out that there , There was a dismissal in the Georgia is no precedent for unseating a member yco arts of Mr. Lowe's case. The duly au- because of the illegality of his opponent's h )razed Democratic candidate ran nomination, even assuming it was illegal, 4g ),inst the Republican candidate, Mr. ang that ,the establishment of such a AtLITCHER THOMpsoN, and there is no con- precedent would jeopardize the integrity t ration that Mr. FLETCHER THOMPSON of congressional election. If, as petition- W43 in any way disqualified by his nom- his opponent's nomination, it is not diffi- cult to perceive the potential danger to the integrity of congressional elections. If the House were to find out that there was no lawfully nominated Democratic candidate and to declare the election null and void for that reason, ;the door would be open for the party of is losing candi- date in a congressional elections to im- peach the election of the pvinning candi- date by claiming that the election was invalid because the losing; candidate had not been nominated in accordance with election laws and party rules. It should be noted that, prior to the election, Mr. Lowe brolrght suit against the Democratic nominee and certain Lindsey's candidacy and of a special Democrats !to enjoin Mr. rdering the call primary. This Georgia State court prior to the. electio Therefore, Mr. Speaker,' tion of the resolution. Mr. HALEY. Mr. Spea gentleman yield? Mr. ASHMORE. I yield man from Florida. Mr. HALEY. Mr. Speaker contestant, Mr. Lowe, under political party in the State of G ,he general election, but he was, I be- ieve, third. Re was not the nominee of the party at any time. Mr. HALEY. Of no recognized politi- ,al party in Georgia? Mr. ASHMORE. No, sir. Mr. HALEY. I thank the gentleman. anl~ other irregularity in the election of Mr FLETCHER THoMPsoN as a Member of thi House. Ala matter of fact, Mr. Lowe never clai ed the right to the seat himself. He simply wanted to have another election. I uld Join the gentleman from South Carol na in indicating that whether we bass=, a ;sir dismissal in this instance on the fact end I believe it is a fact-that Mr. Lowe and h not open the door to this kind n contest. not he p were to simp'y h ve to see to it that there were irreg ilari ies in nominating its own can- didate. T ereafter it could challenge the election the candidate who had been duly Alec d, claiming that the nomina- tion A Pa defeated candidate was in some wa in violation of law. the giralffications of the Republican can- didatiE ho won the election. His nomi- mitte r and of our chairman that this case:5ould be dismissed, Including both which has been filed. Mr. ASHMORE. Mr. Speaker, I have no further requests for time. The SPEAKER. The question is on the res glution. The fesolution was agreed to. A motion to reconsider was laid on the table. CONTESTED ELECTION 'CASE OF JAMES A. MACKAY, CONTESTANT, AGAINST BENJAMIN B. BLACK- BURN, CONTESTEE, FOU#TH CON- GRESSIONAL DISTRICT, OF THE STATE OF GEORGIA Mr. ASHMORE. Mr. Speaker, by direc- tion of the Committee on Ho a Admin- istration, I call up House 2.esolution 542 and ask for its immediate consid- eration. The Clerk read the resolutipn, as fol- lows: H. Has. 542 Resolved, That Benjamin B. Blackburn was duly elected as Representative l from the Fourth Congresisonal District ofI the State titled to his seat. 'he SPEAKER. The gentleman from Sodth Carolina is recognized ftQr 1 hour. M. ASHMORE. Mr. Speake4, I yield 30' mliiutes to the gentleman Irom New York 'cMr. GOODELL], pending which I yield myself such time as I may ponsume. Mr. Speaker, the purpose of this reso- lution is to declare that BEN~rAMTN B. BLACKeui~} T, Representative fkom the Fourth ti strict of Georgia, was duly elected an* is entitled to his set in the 90th Congress. The question of 1 he final right of th6, gentleman from Georgia to his seat wa referred to the C mmittee o on House Ad inistration by H se Reso- lution 2 adop d on January 10? 1967. Briefly, the facts are that in phe gen- eral election bent Demoera rom the Ames A. ose race Mackay, was d D by the Republi n candidate, Mr1 BLACK- BURN. Voting as conducted by, use of Votomatic vote ecorders and puiichcard ballots tabulat td on computers. Mr. Mackay challenged the election results, claiming that ti-&e computers erropeously failed to count; about 7,000 votes and that the proced%ires for duplicating de- fective ballots were imprope -. His charges were the subject of a limited - investigation by; the Special Co 1966, which filet a report reeomm that Mr. BLACK URN' be made to of be While the m4tter was before the 4peciai committee, M . Mackay filed a formal election conte t in the House of epre- sentatives uz er the contested-el ction law. On the op 'nine of the 90th Corgress, an objectiol was made to the ad inis- tration of he oath to Mr. BLACBURN and he w asked by the Speaker to ptand aside w e the other Members were sworn. hereafter, pursuant to Ouse Resolu on 2, he was conditionally sated th-e-Committee on House Administration to determine, in the words of said ' ?eso- lution, "the final right of Benjam n B. Blackburn to a seat in the 90th on- gress." While the contested-election case! was in progress in the House, a group oMr. Mackay's supporters filed suit ag inst Mr. BLACKBURN in a Georgia State curt, Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 July. 11, 1967Approved For $Qg '/ E : 69.EQM?V000200300017-3 peared in the New York Times on July 4, a dispatch from Agence-France-Presse, tells of how the Jordanians, during their 20-year rule in Jerusalem, removed gravestones from the Jewish cemetery on the Mount of Olives, one of the holiest cemeteries in the Judaic world, and used them, literally, to pave the road to Jeri- cho. The inscriptions on the stones were still visible to the reporter who wrote the story. I trust that every Member of this body is as outraged as I by this bar- baric conduct on the part of the Jor- danians. Mr. Speaker, one might also have noted a story in the New York Times of July 9, telling of the damage the Jordanians did to the highly regarded Rockefeller Ar- cheological Museum in Jerusalem. The damage to the museum was slovenliness; to the cemetery, it was deliberate sacri- lege. Is there any civilized human who thinks that the Arab government of Jordan deserves to have restored to it the honor of taking care of the holy places of three great religions? I regard such an idea as folly. In my view, Jor- dan has forfeited its rights in Jerusalem forevermore. Never again, Mr. Speaker, can such gross irresponsibility be tolerated. Pre- mier Eshkol has indicated that Israel would be amenable to the presence of some international guard of the holy places of Jerusalem. I favor such a sym- bolic detachment. What we must never countenance, however-not for a min- ute-is a return to the way things were before last June 5. I include the full text of the July 4 article from the Times and the relevant paragraphs of the July 9 article: JORDAN DESECRATED A JEWISH CEMETERY JERUSALEM, July 3 (Agence France- Presse).-Many gravestones removed from the Jewish cemetery on the Mount of Olives were used to build Jordanian Army Camps at Al Azariya and Sur Bahir. The mount of olives, which for centuries had been the burial ground for the Jeru- salem Jewish community, was occupied by Jordan after the 1948 war and had been .naccessible to Jews until Israeli forces seized Jordanian Jerusalem June 7. Newsmen who toured the camp, on the ,oad to Jericho, saw dozens of gravestones, ;heir inscriptions still legible, in walls and iooring. The Minister of Religious Affairs, Dr. 1erah Wahrhaftig, who was on the tour, ;alled the sacrilege deliberate. He said that )y such acts Jordan had proved unworthy to )e a custodian of holy places. ISRAEL REPAIRING RAVAGED MUSEUM-BUILD- ING USED AS A FORTRESS GETS READY FOR VISITORS (By James Feron) JERUSALEM, July 8.-An Israeli workman ;pent this week removing the plaster that had long concealed the chiseled Hebrew signs on the walls of the Palestine Archeo- ogical museum in the former Jordanian sector of Jerusalem. The three languages of the British man- late-English, Arabic and Hebrew-had seen used when the handsome stone build- ng, familiarly known as the Rockefeller Mu- eum, came into use in the middle nineteen- hirties. The Rockefeller family donated unds for the museum in 1927 but stipulated hat it should not bear the Rockefeller ame. For the 19 years of Jordanian operation is Hebrew lettering had been hidden, plas- tered in where it was etched into the stone, hidden elsewhere with cardboard or display cases. Staff members of the Israel Museum, whose archeological department Is assuming control, have been removing the rubble of war to prepare one of the best known of Middle Eastern museums for an expected rush of visitors. MUSEUM BECAME FORTRESS Jordanian soldiers had used the fortress- like museum as a military position. It was one of the last buildings to fall before the Old City walls, which are across the street, were breached on June 7. The signs of battle are everywhere, and some will last for some time. Most of the windows are broken. Shrapnel holes punc- tured the ceiling and walls, and new cracks have been made in ancient pots and jars. Some ancient glass items spun 180 de- grees during the shelling. They remained intact but their showcases splintered. Dr. Avraham Biran, director of the Gov- ernment antiquities department, said that it would cost about $80,000 to make repairs. AVOIDING WATER POLLUTION IN NORTHEAST TEXAS-REMARKS OF FRANKLIN JONES, SR. (Mr. PATMAN asked and was given permission to extend his remarks at this point in the RECORD and to include extra- neous matter.) Mr. PATMAN. Mr. Speaker, my dis- tinguished constituent, Mr. Franklin Jones, Sr., a prominent east Texas at- torney, has shared my interest and con- cern for the lakes, rivers, and streams of northeast Texas for many years. As presi- dent of the Cypress Valley Navigation District, he has watched with particular concern the water problems resulting from industrial and population growth in many areas of our Nation, and has shown great foresight in alerting the people of the First Congressional District to the need for comprehensive planning to pro- tect our waterways. Excerpts from Mr. Jones' recent address to the Marion County Chamber of Commerce were cited in an editorial in the Marshall News Mes- senger, July 2, and I enter this editorial in the RECORD: CLEAN WATER Speaking before the Marion County Cham- ber of Commerce last April, Franklin Jones Sr., focused public attention on a subject that is seldom considered in Northeast Texas-water pollution. Our streams, rivers and lakes are clean, we say, and free of pollution. That's a prob- lem for the'big cities, we think. Jones, however, sounded the alarm in not- ing this area's lack of industrial growth in bygone years may have been a blessing in dis- guise. But he pointed out that this region is now beginning to grow Industrially, with possibilities unlimited, and that new Indus- tries should install pollution control devices, keeping the water free of pollution. "Had Northeast Texas undergone an in- dustrial boom several years ago, it would now be attempting to eradicate the pollu- tion problem as other areas are," Jones said. "Now as industry comes to our land, we can take precautions to keep our waters clean," he continued. So two months ago, Jones, president of the pypress Valley Navigation District was bring- n. g attention to the pollution problem in Northeast Texas. The visit to Texas of the President's Water Pollution Control Advisory Board has now served to focus public atten- tion on this very important problem of this generation: How can we,assure this and suc- H 8467 ceeding generations of Texas an adequate supply of potable water? Texans have thought big in many fields, but have betrayed only a limited vision on the subject of water supplies until recent years. Population growth and industrializa- tion have forced a complete reappraisal of the question of water supply and distribu- tion. The first tentative steps toward major redistribution of water supplies through in- terbasin transfer have already been taken. As with most beginnings the extent and the nature of the ultimate plan is still uncertain. In any comprehensive water plan for the state, though, the question of water pollu- tion assumes paramount importance. For wise use and reuse of water is essential to a successful program. This means that a mu- nicipality or an industry which uses water must return It to a river system without having reduced substantially its quality. The responsibility for pollution must be shared. There is more than enough blame to go around. It will not do to just blame indus- try for all our pollution woes. Municipalities, through sewage and storm sewer facilities, remain one of the most troublesome offend- ers of all. The people are as much to blame as business and industry and share responsi- bility for abating pollution. We in Texas are barely on the threshold of revolutionary developments in water treatment. Primary treatment is no longer good enough. Secondary and tertiary treat- ment may be required in many industries. Some industries may indeed be forced out of business if adequate treatment of waste waters cannot be developed. The days of "to hell with the downstream users" are over. Water treatment in Texas is going to be a tremendously expensive business. Tens of millions of dollars will be required for re- search to develop new processes or improve those now used. But there is no escaping the necessity for adequate treatment of water before it is returned to a river or stream. The health of our people as well as the economic well-being of our state, as Jones pointed out, demand it. BIG CORPORATIONS DOMINATE (Mr. PATMAN asked and was given permission to extend his remarks at this point in the RECORD and to include ex- traneous matter.) Mr. PATMAN. Mr. Speaker, over the course of many years in the Congress, I am strongly impressed with the great contribution of a few outstanding think- ers who combine a dedication to our democratic principles with a keen aware- ness of economic and social realities. One of this distinguished group is Prof. J. Kenneth Galbraith of Harvard who, over the many years, has shown a great ca- pacity for casting his bright light on the society around us and showing, in sharp focus, what the facts are and, even more important, how existing facts often devi- ate from our hopes and expectations. Un- like many other thinkers in and out of academic life, professors like J. Kenneth Galbraith are not blinded by their own preconceptions or misconceptions. They are accurate and brilliant observers of the world around them. Professor Galbraith's latest contribu- tion to thinking on public policy is a new book entitled "The New Industrial State." It deals with a matter that vitally con- cerns all of us here in the Congress- namely, the role of the huge corporation in our society. It Is his thesis that our economy is dominated by some 500 huge corporations which are controlled not so much by stockholders as by their own Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3 H 8468 Approved For fttqMIMMWAUR PMP69MO62R000200300011T-4ly ; Lz967 managerial officials. And their power and size frees them from their reliance on the traditional market economy. They raise their own money through pricing and goods high enough to'permit capital accumulation and they are powerful enough to manipulate demand in the market. Of particular concern to us in the Congress is his observation of how weak our antitrust- enforcement: has proven in reaching and coping with this growing dominance of the big colporation. I do not agree with Professor Galbraith's pessimism about the total ineffectiveness of antitrust laws. They continue to be our main hope and bulwark to stem a dangerous trend toward monopoly. But I think he has done a great service in ex- posing existing weaknesses. It is my fer- vent hope that this excellent book will be read widely by those of us in the Congress who are becoming more and more concerned by the merger trend and with the imperfections of existing antimonopoly laws. In nay opinion, we must strengthen these laws to preserve what Is left of our free competitive economy. The book, of course, is not primarily a treatise on antimonopoly provisions. It undertakes to analyze broad trends in our industrial society and, as such, it will be read by many people concerned with public policy. At the same time, it has particular relevance for antimonop- oly policy. I commend it to the atten- tion of my colleagues and all members of the public who are interested in pub- lic policy. I submit for the RECORD a summary of some of Professor Galbraith's conclu- sions on these matters which appeared in an article in the Atlantic Monthly for May 1967. Part of this article follows: MAzsczr PLANNING AND THE ROLE OF GOVERNMEsl' By John Kenneth Galbraith) In fact since Adam and as a matter of settled doctrine since Adam Smith, the businessman has been assumed to be subor- dinate to the market. In last month's ar- ticle I showed that modern'highly technical processes and products and associated re- quirements of capital and time lead In- evitably to planning-to the management of markets by those who supply them. It is technology, not ideology, that brings this result. The market serves admirably to sup- ply simple things. But excellent as it may be on muskets, it is very bad on missiles. And not even the supply' of components for the modern automobile Can be trusted to the market; neither is it safe to,assume that the market will absorb the necessary produc- tion at; a remunerative price. There must be planning here as well. The principal planning instrument in the modern economy is the large corporation. Within broad limits, it determines what the consumer shall have and at what price he shall have it. And It foresees the need for and arranges the necessary supply of capital, machinery, and materials. The modern corporation is the direct des- cendant of the entrepreneur. This has kept us from seeing it in its new role. Had the corporation been an outgrowth of the state, which we readily associate with planning, we world not be in doubt. The modern cor- poration has, In fact, moved Into a much closer association with the state than most of us imagine. And its planning activities are extensively and systematically supplemented by those of the state. Lei us consider first the regulation of prices in the modern economy and tha means by which public behavior is accom- modoted to plan. Here, I should warn, we encounter some of the more deeply en- trenched folk myths of our time, including a certain vested interest In error on the part of both economists and businessmen. If ore takes faith in the market away from the economist, he is perilously barren of belief. So, he defends the market to defend his E took of knowledge. And the large cor- poram enterprise needs the concept of the market as a cover for the authority it exer- cises. It has great influence over our mate- rial existence and also our beliefs. But ac:- cepti doctrine holds that In all of its be- havijr it is, subordinate to the market. It Is merely an automation responding to in.- struftions thcreform. Any complaint as to the Use or misuse of power can be met by the answer that there is none. Control of prices is an intrinsic feature of all planning. And it is made urgent by the spec.al vagaries of the market for highly technical products. In the formally planned economies-that of the Soviet Union, for ex- ample-price control is a forthright function of tie state, although there has been some tendency In recent times to allow some of the power of prices to devolve on the so- clali3t firm. In the Western-type economies, comprehensive systems of price control have come about by evolution and adaptation. No- bod" willed them. They were simply required by i orcumstance. The power to set minimum Industrial priers exists whenever a small number of firma share a market. The innocent at the unit ersities have long been taught that sma 3 numbers of firms In the market- oligcgsoly, as It is known-accord to sellers the same power in Imperfect form that has anciently been associated with monopoly. The principal difference is the imperfect na- ture of this monopoly power. It does not per- mit the exploitation of the consumer in quite suck efficient fashion as was possible under the patents of monopoly accorded by the first %lizabett- to her favorites or by John D. RocXefeller to himself. Bit in fact, the modern market shared by a few large firms is combined, in one of the more disconcerting contradictions of eco- nonic theory, with efficient production, ex- pan3ve output, and prices that are gener- ally thought rather favorable to the public. The consequences of oligopoly (few sellers) are greatly condemned in principle as being like those of monopoly-but greatly approved In ieractice. Professor. Paul Samuelson, titre most distinguished of contemporary econo- mis s, warns in his famous textbook on eco- noncs that "to reduce the imperfections of competition" (by which he means markets conicsting of a' small number of large firms or cligopoly) "a nation must struggle pe:r- pettEally and must ever maintain vigilance." Sinop American markets are now dominated by s very few small number of very large firer s, the struggle, obviously, has been a los- ing one and is now lost. But the result is that the economy functions very well. Samuelson himself concludes that man-hour efficiency in the United States "can hardly help but grow at the rate of three per cent or moire, evert if we do not rouse ourselves." A similar con het between the inefficiency of oligopoly and the efficiency of an economy composed thereof is present in every well-regarded eco- nondc textbook. Samuelson agrees that tech- nology and associated capital use are what imptove efficiency. But these are precisely whet require that there be planning and price control. Arid here we have the answer. Prices In the modern economy are controlled not for the purposes of monopolistic exploitation. They are controlled for purposes of planning. This comes about as an effortless conse- que ace of the development of that economy. Moc_ern Industrial planning both requires and rewards great size. This means, n It. that a comparatively small number f large firms will divide the production f most (though not all) products. Each, as a mat- ter of ordinary prudence, will act with full consideration of Its own needs and the com- mon need. Each must have control of its own prices. Each will recognize this to be a requirement of others. Each will foreswear any action, and notably any sanguinary or competitive price-cutting, which would be prejudicial to the common interest n price control. This control is not difficult either to achieve or to maintain. Addition Ily, one firm's prices are another firm's costs. So, sta- bility in prices means stability in costs. The fact of control Is far more important than the precise level at which pr Ices are established. In 1964 in the United States, the big automobile companies had profits on their sales ranging from 5 percent to over 10 percent. There was security against collapse of prices and earnings for firms at; either level. Planning was possible at either! level of return. All firms could function atisfac- torily. But none could have functio ed had the price of a standard model fluctuated, de- pending on whim and reaction to the current novelties, from, any, $1800 to $36o, with steel, glass, chrome, plastics, paint, tires, stereo music, and labor moving over a simi- lar range. However, the level of prices Is no unim- portant. And from time to time, in espouse to major changes in cost-often w pen the renegotiation of a wage contract prpvides a common signal to all firms in the in4lustry- prices must be changed. The prices sio estab- lished will reflect generally the goalslof those who guide the enterprise, not of thA, owners but of those who make the decisior;s. Secu- rity of earnings will be a prime ojective. This is necessary for autonomy-for freedom from interference by shareholders and credi- tors. The next most important goal will be the growth of the firm. This is alost cer- tainly more important than nyaximum profits. The professional managers a#rd tech- nicians who direct and guide the I modern firm do not themselves get the profits. These accrue mainly to the shareholders. But the managers and technicians do get the bene- fits of expansion. This brings the prestige which is associated with a larger firm and which is associated with growth s such. And as a very practical matter, it pens up new executive jobs, new opportun ties for promotion, and better excuses for higher pay. Prices, accordingly, will be set with a view to attracting customers and expand' g sales, When price control is put in the context of planning, the contradiction between expec- tation of monopolisti.c exploitation and ex- pectation of efficiency, which pervades all textbook discussion, disappears. Planning calls for stability of prices and costs,. security of return, and expansion. With none; of these 1s the consumer at odds. Reality has, by its nature, advantages of internal co sistency I must mention here one practical conse- quence of this argument, namely, is bear- ing on legal action against monopo y. There is a remarkable discrimination in the way such measures, notably the antitr ist laws are now applied. A great corporation wield. ing vast power over its markets Is ubstan- tially immune. It does not appear tpp misuse its power; accordingly, it is left alne. Anc in any case, to declare all large corSorationc Illegal is, in effect, to declare the modern economy illegal. That is rather imprlxactical- and would damage any President'sI consen? sus. But if two small firms making Fhe same product seek to unite, this corporate union will be meticulously scrutinized. 4nd ver; possibly, it will be forbidden. Thisl may is so even though the merged firm is rryy~~dniscul- In size or market power as oompat ad wit] the giant that is already a giant. The explanation is that the mod rn anti monopoly and antitrust laws are ubstar tially a charade. Their function I not I Approved For Release 2004/05/25 : CIA-RDP69B00369R000200300017-3