UNTITLED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000300130004-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 17
• Document Creation Date: December 15, 2016
• Document Release Date: September 29, 2003
• Sequence Number: 4
• Publication Date: August 26, 1965
• Content Type: OPEN

August 26, 1965
Approved EeMsffseti3iNtlOAWRI4S-13D?tystippg46R000300130004-1
Like most public works of its size and
scope, the canal is justified with a complex
and sometimes bewildering battery of fig-
ures, estimates, charts, and diagrams.
But for the American taxpayer, the basic
question remains:
Why build a $1.25 billion canal from the
Ohio River to Lake Erie?
People have been asking this question
since the early 1820's, when the project was
first considered. It has been proposed a
number of times since.
Each time, it was rejected by various
governmental agencies as impractical and
economically unsound.
The original argument for the canal, that
of linking two major shipping routes, re-
mains the same today, but with a new
twist.
Supporters point hopefully to projected
benefits that they feel will sweep across the
Nation after the Ohio River and Lake Erie
are joined.
But they are most enthusiastic over the
low-cost transportation the canal would pro-
vide to landlocked steel industries in the
Youngstown area.
Some 95 percent of the freight that is
expected to travel on the canal will be coal
and iron ore, the basic raw materials for
steel production.
At present, Youngstown area steel indus-
tries obtain their raw materials by rail.
Canal boosters maintain water transporta-
tion would be less than half the cost of rail
rates. At first, the corps predicted that the
canal would yield annual transportation sav-
ings of $138,100,000.
Later, higher corps officials slashed this
figure to $68,500,000.
There is no doubt there would be savings
for the steel mills in the Youngstown area.
While economic experts hired by the corps
admit that the canal would not help the
Nation's total steel output, they stress that
it would reverse the current decline of the
Youngstown-Pittsburgh area in the ranks of
the country's major steel manufacturing
centers.
In 1950, the Youngstown-Pittsburgh area
produced 38.8 percent of the total national
steel output.
Since then, it has dropped to 33 percent of
the total national production.
Supporters admit that the steel production
in the Youngstown-Pittsburgh area has not
declined over the years. But it has not
grown as rapidly as it has in other areas of
the country.
If the canal is not built, corps consulting
economists predict that the Youngstown-
Pittsburgh area will produce only 15.7 per-
cent of the Nation's total steel production
by 2025.
However, if the canal is built, the area will
produce 25.7 percent.
Supporters feel that by slowing the area's
declining role in American steel production,
the existing economic problems in the
Youngstown-Pittsburgh district will be
reduced.
Surprisingly, while the economic consul-
tants have dealt with the "Youngstown-
Pittsburgh area" when speaking of benefits
to the economy, Pittsburgh leaders are
strongly opposed to the canal.
The Pittsburgh Chamber of Commerce, in
a recent survey of businesses and industries,
received a strongly negative response to the
project. Included in those industries object-
ing to the canal were Major steel firms.
Pittsburgh area labor leaders and city offi-
cials are also opposed to the canal. This
opposition is echoed all the way to the State
House in Harrisburg.
In fact, canal supporters find it difficult
to obtain any backing in Pennsylvania.
Senator HUGH Soo= seemingly summed up
his State's opposition when he said, "The
canal would make it cheaper to manufacture
steel in. Youngstown, but only because the
taxpayers would pay for the transportation."
Scam continued: "Even this benefit would
be offset by losses of steel production and
employment in the steelworks of the Pitts-
burgh district, the upper Ohio Valltey, Johns-
town, eastern Pennsylvania, and probably
even Buffalo and Chicago."
While Pennsylvania leaders are obviously
worried about the canal's effect on their
economy, the leaders of 19 Major railroads
are even more fearful.
The Upper Ohio Valley Association, an or-
ganization formed by the railroads to oppose
the canal, predicts that the canal would
indeed result in transportation savings for
the steel industry, but at a staggering cost
to railroad employment and revenue.
Labeling the project a "planned disaster,"
the rails warn that more than 7,500 workers
in 10 States will lose their jobs if the canal
is built.
Ohio railroads claim that 3,679 workers
will be laid off if the project goes through.
This, they say, will result in an annual pay-
roll loss of $26,888,263.
In recommending construction of the canal
the Corps of Engineers discounted recom-
mendations of the Arthur D. Little, Inc.,
economic consultants hired by the engineers
to determine the economic effects of the
canal.
While the corps used much of the eco-
nomic and transportation data obtained by
the consulting economics firm, it used few
of its conclusions.
A corps spokesman explained: "These, we
felt, were the Little firm's opinions. Based
on data our people obtained, we felt their
opinions were incorrect."
Nevertheless, the corps paid the Little firm
$75,000 for the study and its conclusions.
These conclusions were:
The canal would force the railroads to
lower their rates, but the rails would con-
tinue to carry most of the freight.
The canal would not create new, diversi-
fied industry in the area.
Steel prices would not be reduced.
Total U.S. steel output would not be
Increased.
Area coal production would not be affected.
The canal would have little effect on the
region's total economy?aside from the $1.25
billion that would be spent to build it.
The corps objected most strongly to the
Little Co.'s information concerning project-
ed rates.
After the economists presented their re-
port, the corps undertook its own study and
produced new projected rates that indicated
the rails could not compete with the barges.
The railroads registered sharp protests over
the corps' new figures. They felt they did
not reflect technological advancements cur-
rently being made and planned for by the
rails.
Further, the railroads charged that the
corps figured the lowest possible barge rates
and the highest possible rail rates to pro-
duce their net savings figures.
In June of this year, the Council of Lake
Erie Ports issued a sharply critical state-
ment on the corps' canal proposal and its
figures.
The council, composed of representatives
from the 14 major ports on Lake Erie,
charged, "the report contains so many im-
ponderables and omissions that authoriza-
tion should not be considered until a more
comprehensive study can be made."
Like the railroads, the Council of Lake
Erie Ports felt the corps had used "unreal-
istic figures," which showed rail rates at
their worst and barge rates at their best.
The corps insists, however, that its pro-
jected barge rates would produce an aver-
age annual savings of $68,500,000.
These savings alone would barely justify
the cost of a $1.25 billion canal, the corps
admits.
But the corps felt that the project would
provide additional benefits besides the trans-
portation savings.
They listed benefits obtained for the pro-
posed recreational facilities at the Grand
River Reservoir.
The huge, manmade lake would supply
the northern end of the canal with water
pumped from Lake Erie.
It would also serve as a vast recreational .
center with 34,350 acres set aside around
the reservoir for hunting, fishing, swimming,
boating, and camping areas.
The corps determined that the benefits
that would be obtained from recreation at
the Grand River Reservoir were worth $21,-
500,000 a year.
Further, the corps valued the wildlife ben-
efits from the reservoir at $1,281,000.
And finally, the corps placed a value of
$2,750,000 annually on flood control benefits
from the reservoir and the canal.
This brought the total annual benefits to
$94,100,000.
The engineers figured the total annual
costs of the canal at $55,800,000.
Using these figures, the corps gave the
project a cost-benefit ratio of 1.7 * * * or a
return of ,$1.70 for each dollar spent on the
canal.
Canal opponents, however, charged that
the corps' cost-benefit ratio was completely
false.
First, they said, the corps left out the costs
of a major harbor at the Lake Erie end of the
canal.
Also, they noted the corps failed to include
the costs of terminal facilities along the canal
at various plants and cities.
These costs, the opponents said, would be
more than $150 million.
These facilities would be paid for by local
interests ? * ? which could be anything from
the State of Ohio, to private companies.
Opponents also echoed a criticism of the
project which was originally made by the
1955 Hoover Commission in a study of a
previous Lake Erie-Ohio River canal proposal.
The Commission slapped the previous canal
plan for failing to consider the economic
losses that the canal would create in the rail-
road and trucking industries and existing
Lake Erie ports.
The railroads, using the Corps' projected
canal tonnages, claim they will suffer a gross
revenue loss of $225 million a year.
The railroads hardest hit by the canal
would be the Baltimore & Ohio, the Chesa-
peake & Ohio, the Norfolk & Western, the
Pennsylvania, and the New York Central.
Lake Erie port operators also are fearful of
severe economic damages that they feel would
be inflicted by the canal.
As indicated in the corps' report, some 95
percent of the freight carried on the canal
would be coal and iron ore.
At present most of the material handled
by the major Ohio lake ports is coal and iron
ore.
Lake ports in Toledo, Ashtabula, Sandusky,
Cleveland, Huron and Lorain would lose large
amounts of freight according to figures listed
in the corps report.
The corps did not place an economic value
on the hardships that the canal would create
for the railroads, or existing lake ports.
Nor did the corps give a value to the effect
the canal would have on Cleveland.
Cleveland civic and industrial leaders have
been sharply opposed to the project. Their
opposition stems from two pages in the eco-
nomics phase of the overall canal report.
These pages show that if the canal is
built, the Cleveland-Detroit area steel indus-
try will suffer badly.
At present, the mills in the Cleveland-
Detroit area produce 10.6 percent of the
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Approved For RelmsgTa
Nation's total steel output. The Youngs-
town-Pittsburgh area produces 33 percent.
If the canal is not built, the Cleveland-
Detroit area will produce 18.1 percent of the
Nation's steel production, while the Youngs-
town-Pittsburgh area will decrease to 15.7
percent 111 2025.
However, If the canal is built, steel plants
in the Cleveland-Detroit area will actually
drop from their present rank in the national
level of steel production.
The canal will help the Youngstown-Pitts-
burgh area, but at the expense of the Cleve-
land-Detroit area according to the engineers'
own figures.
Supporters of the canal admit that if Cleve-
land continues to oppose the canal, it prob-
ably will not be built. So, earlier this month,
an attempt was made to woo Cleveland.
Retired Cleveland port director, William
Rogers, was hired as a consultant by Inter-
connecting Waterways, Inc., one of the orga-
nizations boosting the canal.
Shortly after going to work for the canal
supporters, Rogers proposed a 29-mile break-
wall that would extend along the shores of
Lake Erie from the mouth of the canal at
Fairport Harbor to Cleveland.
The canal traffic could travel behind this
breakwall to Cleveland. Rogers explained.
Cleveland could become the major canal port
Instead of small Fairport Harbor.
It would cost more than $200 million he
added.
? TO date, Cleveland officials have not
readted to Rogers' proposal.
In _their, own study of the corps' report,
the railroads Upper Ohio Valley Association
leveled the heaviest blow at the engineers' 1.7
cost-benefits ratio.
In the 650 page report created by civil
engineers, economists and transportation ex-
perts hired by the railroad, the association
said that for every dollar spent on the project,
taxpayers would receive 20 cents in benefits.
The association based its cost benefits
ratio on the following points:
1, The actual cost of construction will be
nearly 82 billion, or more than twice the
corps' estimate.
2. Cost to the State of Ohio and its politi-
cal subdivisions would be at least $272 mil-
lion, or more than r',Xree times the engineers'
original estimate of $85 million.
The association report questioned the
recreational benefits of the Grand River
Reservoir and the practicality of pumping
water from Lake Erie to fill the manmade
lake.
In the engineers' report, it was noted that
the reservoir water level would have a 7,.
foot. fluctuation. Water would be drained
Into the canal during dry periods in the
Slimmer, when the lake would be used the
most for recreational purposes.
The association charged that with a 7-foot
decrease in the reservoir% water level, the
water worad be surrounded by a muclilat
more than 100 feet wide. This opponents
said, "would not make the most attractive
recreational area."
Further, the association raised the possi-
ble danger to the water level of Lake Erie
from pumpage to the reservoir.
This fear for Lake Erie's water level has
been echoed by the New York State Power
Authority, which controls the hydroelectric
facilities at Niagara, Falls.
The power authority has filed an official
statement of opposition to the canal on the
grounds that it would endanger the lakes
water supply.
Also fearful of the canal% effect on Lake
Erie is the Great Lakes Commission, an
organization composed of representatives
from the various States surrounding the lake.
Corps engineers predict that the pumpage
of water from Lake Erie into the huge reser-
voir will not alter the level of Lake Erie.
But opponents Warn that "making sure
millions and millions of gallons flow north
10/t4_ ? CIA-RDP671300446R000300130004-1
SIONAL RECORD ?SENATE August 26, 1965
instead of south will be all but impossible
due to the divide cut south of the reservoir."
One of the most interesting aspects of the
billion dollar project is the silent treatment
given it in Columbus.
Ohio's Gov. James A. Rhodes and his job-
conscious development department are
known nationally for their instant enthusi-
asm towards new investments in the Buckeye
State,
But Rhodes has stayed out of the canal
battle. He has not given it his support, or
opposition.
Considering the canal is one of the largest
Federal projects ever proposed for Ohio,
Rhodes' silence is remarkable.
During the recent program to hire a $200-
million-plus atom smasher to the Ravenna
Arsenal area Rhodes organized one of the
strongest drives in the Nation. And he
fought strongly to keep discord in Ohio at
a minimum.
But no speeches have been made from the
Governor's office about the 61.25 billion canal.
One State official explained the silence,
saying, "No one is really sure what this thing
win do,
"On the surface, it looks good. But when
you get into it, there are a lot of questions
nobody seems to want to answer."
?
At present, the organizations lending offi-
cial support to the canal are smaller in nu.m-
ber than those opposing it.
The Ma.honing Valley Industrial Council
is strongly in favor of the project. So is
Interconnecting Waterways, Inc., a lobby
organization created by the council.
The Ohio Highway and Turnpike Associa-
tion, lobby group composed of paving con-
tractors, cement manufacturers, and other
firms related to the heavy construction in-
dustry, is giving its full support to the proj-
ect along with the Ohio Operating Engi-
neers Union.
The canal will have little direct effect on
the Akron area if it is constructed.
In fact, according to industrial leaders in
Akron, any possible effect might be a nega-
tive one.
At present, a large amount of crude rubber
is unloaded at Ashtabula Harbor from boats
that have traveled down the St. Lawrence
Seaway.
The rubber industry spokesmen say it
would not pay to transfer the crude rubber
from the seaway boats to barges because of
high handling costs. Hence, they would not
use the canal.
They note that because the canal would
take away a major portion of the freight
from existing lake ports, the port's ability
to handle other freight would suffer.
In recent years, the rubber industry has
invested heavily in a program to unload
crude rubber at the Ashtabula Harbor.
The harbor would be hurt by the canal,
industry leaders fear. And the industry's
investments would be endangered.
Trucking spokesmen in Akron are less
quick to comment on the canal than their
counterparts in industry.
While the Pennsylvania Trucking Associa-
tion opposes the project, the Ohio trucking
group has remained silent.
Today, the various factions across Ohio,
Pennsylvania, and the Nation are waiting
for the corps of Engineers Board for River
and Harbors to rule on the project.
This group currently is evaluating the
material and recommendations from the
corps.
In the near future, possibly within a
month, the Engineers Board will act on the
corps' proposal to build the canal.
It could do one of three things.
It could refuse to approve the project.
This would finish the issue.
It could return the project to the corps for
further study. This is what has happened
in the past.
It could approve tli,p project and in time
the proposal would bb sent to Congress.
MADAME CHIANG
Mr. YOUNG of Ohio. Mr. President,
over the years billions of dollars of our
taxpayers' money has been paid out to
maintain Chiang Kai-shek. Now Ma-
dame Chiang Kai-shek is in this coun-
try reportedly to appeal for more money
for this boastful former corrupt warlord.
It appears to me that we should long
since have stopped pouring American
dollars into this rathole. There was
talk for political purposes some 10 years
ago that we should unleash Chiang Kai-
shek for invasion of the Chinese main-
land to free the Chinese from communist
rule. Of course, the American people
were not informed then that unleashing
Chiang Kai-shek meant logistical sup-
port, so-called, and protecting him with
our 7th Fleet and wax planes.
What is that logistic support that this
warlord sought then and is apparently
seeking now? It is that we provide our
air power and our transports and our
7th Fleet to fight and kill Chinese civil-
ians?men, women and children?as well
as the armed forces of Red China in order
to land some of the troops of Taiwan
that have been trained over the years
under, American direction and equipped
at the expense of American taxpayers.
Then he would need our air forces and
GI's to establish and maintain the
beachhead. Except for the protection
of our Air Force and 7th Fleet this
boastful warlord would have been driven
from Taiwan some years ago. Unfor-
tunately we Americans have a bear
by the tail?Chiang Kai-shek. We
should let go.
The most fantastic proposal that he
has made recently, and no doubt Ma-
dame Chiang Kai-shek will make in
speeches in this country and in talks
with any Government officials who listen
to her, is that we invite some of Chiang
Kai-shek's 600,000 troops to participate
in the Vietnamese war. All Chiang and
Madame Chiang request of this conutry
Is that the United States should furnish
all logistic support, meaning protection
by our air power and fleet of the 10,000
or more soldiers who would be moved
from Taiwan to South Vietnam.
Of course, it would be required that
? the United States fully clothe these
troops, equip them completely with arms
and ammunition, pay them, and feed and
maintain them during such time as they
were in South Vietnam.
It would be a stupid and foolhardy pol-
icy on the part of the United States to
permit even a token force of 100 of these
troops to be transported to Vietnam.
Chiang's army has grown old in parading
and strutting around Taiwan. His sol-
diers may apparently parade well and
look good except somewhat overage. It
is certain that they would have to under-
go training of some months before they
could possiblY be of any service in com-
bat. The only thing accomplished by our
permitting Chiang Ka:i-shek to unleash
some of his soldiers for service in South
Vietnam would be to aggravate the Com-
munist leaders of Red China.
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August 26, 1965 CONGRESSIONAL RECORD- SENATE
For 18 years Chiang Kai-shek has
been boasting about his making an at-
tack on mainland China and conquering
the Red Chinese. His boast is that fol-
lowing his landing with our logistic sup-
port and the backing of our 7th Fleet the
peasants of Red China would rise in re-
volt. He overlooks the fact that very
few peasants among the '700 million Red
Chinese have any guns or ammunition
and that modern wars cannot be won by
hurling stones or fighting the enemy
with bare hands. Nor could anyone be
certain the Chinese peasants prefer Chi-
ang Kai-shek. It is utter folly that after
all this time we still support and main-
tain this so-called Generalissimo. Of
course, some of the superduper war
hawks in this country will echo Madame
Chiang's plea that the United States
should immediately perpetrate a Pearl
Harbor?engage in a day of infamy?by
destroying Red China's crude nuclear
installations.
This lady's visit to the United States
accomplishes nothing except embarrass-
ment to administration leaders. Let us
hope they ignore her. The facts are that
the Vietnamese, those who live in the
south as well as in the north, regard the
Chinese as their natural enemies. For
thousands of years the Vietnamese have
fought and beaten back the Chinese in-
vaders. In fact, the troops of this cor-
rupt old warlord Chiang Kai-shek in-
vaded Vietnam around 1947 directly after
World War II and looted and killed in
the northern area of Vietnam. The
President of North Vietnam, Ho Chi-
minh, was imprisoned in a cell for a
year by the Chinese Communists. It is
untimely that Madame Chiang Kal-shek
has come to this country for anything
other than personal reasons and to see
what a free country looks like in contrast
with Taiwan. Were we to permit any of
Chiang Kai-shek's armed forces to march
along with our soldiers in South Vietnam,
even though none of them fired a gun,
there would be danger that their pres-
ence along with our own GI's would pro-
voke Chinese Communist intervention.
THE 25TH ANNIVERSARY OF THE
OCCUPATION OF LITHUANIA BY
SOVIET RUSSIA
Mr. PELL. Mr. President, recently,
there was an impressive gathering in my
State of Rhode Islanders of Lithuanian
extraction, deploring the 25th anniver-
sary of the occupation of Lithuania by
Soviet Russia. The assembly, which was
held in the hall of St. casimir's Church
in Providence, voted unanimously to con-
tinue Lithuania's brave and unrelenting
fight to regain independence. The words
of their resolution deserve the thought-
ful consideration of everyone who treas-
ures the precious right of political self-
determination.
I ask unanimous consent that the text
of this resolution be inserted in the
RECORD at this point.
There being no objection, the resolu-
tion was ordered to be printed in the
RECORD at this point.
RESOLUTION APPROVED KY RHODE ISLANDERS OP
LITHUANIAN EXTRACTION ON OCCASION OP
25TH ANNIVERSARY OF SOVIET OCCUPATION
Whereas Soviet communism has demon-
strated by principle and by act that its whole
purpose is the domination of the world by
the proletariate through the ruthless destruc-
tion and annihilation of all existing forms
of government; and
Whereas the Soviet Union took Lithuania,
Estonia, and Latvia by force of arms; and
Whereas Soviet Russia has deported nearly
400,000 Lithuanian citizens to concentration
camps in Siberia and other areas of Soviet
Russia for slave labor and death; and
Whereas Lithuanians, Estonians, and Lat-
vians sincerely desire, fight and die for their
national independence and liberation; and
Whereas Lithuania has been for over 20
years unjustly subjugated by Soviet Russia
which has to this date steadfastly refused to
permit the people of Lithuania to hold free
elections: Now be it
Resolved, That we thank the Presidsnt of
the United States, Members of the U.S. Sen-
ate and Congress for their many kindnesses
shown the Lithuanian cause, which caused
the free World to recall and keep in mind the
atrocities committed upon Lithuania and
other Baltic nations by Soviet Russia; and
be it
Resolved, That our Government take im-
mediate and concrete steps to compel Soviet
Russia to leave the territory of Lithuania,
to return free elections in Lithuania under
supervision of the United Nations; and be
It further
Resolved, That the representatives of free
Lithuania be given a full fledged seat in the
United Nations which would permit her to
state her righteous case to the world.
Rev. VACLOVAS MARTINKUSM,
Chairman.
JOHN A. STOSKTJS,
Secretary.
THE $22 MILLION PAYMENT TO OKI-
NAWA IN PRETHEATY CLAIMS
Mr. INOUYE. Mr. President, in view
of the recent Senate vote to pay Oki-
nawans $22 million in pretreaty claims,
I thought that my colleagues would be
interested in editorial comment on our
action by the Honolulu Advertiser, the
major morning newspaper in Hawaii.
I ask unanimous consent that the edi-
torial be printed in the RECORD.
There being no objection, the editorial
was ordered to be printed in the Record,
as follows:
RIGHTING A WRONG
Amid news of far bigger spending and
more heated problems this month was the
Important report that the U.S. Senate voted
to pay Okinawans $22 million in claims
stemming from our postwar occupation.
This has been called righting an old wrong.
It is a progressive step from the standpoint
of justice, morality, and good international
politics.
Most of the claims?about $15 million?are
for rental of land that was seized by occupa-
tion forces. The rest covers property dam-
age, death, and injuries to Okinawans.
Okinawa was part of the Japanese empire
when it was invaded in March of 1945. In
the 1952 peace treaty, Japan waived all war
claims for itself and its nationals, a fact
cited as taking away any legal obligation by
the United States or Japan.
But clearly U.S. Senator DANIEL H. INOUYE
was right when he told the Senate recently
that this country should not let fine points
of international law obscure the fact that it
21199
assumed full responsibility for the protection
and administration of the islanders in 1945.
The claims would go to about 180,000 fam-
ilies. With an average of five members to
a family, the claims would benefit about
400,000 people, perhaps half the Okinawan
population.
It is, in brief, an expression of good will
and justice to a people who, through some
good reasons and unfriendly agitation, have
often indicated restlessness at U.S. rule.
The action is even more impressive this
year because it is taken with the full back-
ing of the administration which has not sup-
ported past attempts of INOUYE and other
members of Hawaii's Congressional delega-
tion to help the Okinawans.
Favorable action in the House can be ex-
pected on this basis, and Hawaii can again
take some satisfaction for a role in helping
our Pacific neighbors.
EXEMPTION OF POSTAGE COSTS
FOR GOVERNMENT REPORTS
Mr. HARTKE. Mr. President, on
July 21, 1965 I introduced a bill?S.
2314?to provide for payment by the Fed-
eral Government of postage costs in the
required distribution of Internal Revenue
Service form No. 1099 information re-
turns to individuals who receive $10 or
more in interest or dividends. On July
30, I received a letter from Mr. James H.
Lynch, Jr., assistant general counsel of
the Association of Stock Exchange Firms,
endorsing my bill. As Mr. Lynch wrote:
We see, on the one hnd, the really tremen-
dous effort by President Johnson and the
Congress to lighten the tax burden on our
expanding economy. Income tax rates have
been reduced. Income tax forms have been
simplified; and, just recently, the President
signed legislation which eliminated, or sub-
stantially reduced, a great number of out-
moded excise taxes.
We are confronted, on the other hand, with
the rising costs to industry and the individ-
ual of tax compliance. Those costs, in many
areas, are at or near the point of exceeding
any benefits that may have resulted from
tax relief or reform.
I am grateful, indeed, for Mr. Lynch's
judgment, speaking for the Association
of Stock Exchange Firms, that "S. 2314
is a constructive step in the right direc-
tion towards solving at least a part of
this increasingly serious problem."
I ask unanimous consent that -Mr.
Lynch's letter be printed in the RECORD.
There being no objection, the letter
was ordered to be printed in the RECORD,
as follows:
ASSOCIATION OF
STOCK EXCHANGE PIRNIS,
/Vew Fork N.Y., July 30,1965.
Re S. 2314.
Hon. R. VANCE HARTKE,
U.S. Senate,
Washington, D.C.
DEAR SENATOR HARTKE: On behalf of the
Association of Stock Exchange Firms, I com-
mend?most warmly and appreciatively?
your constructive effort to eliminate a very
burdensome cost on American industry. We
thoroughly support your bill, S. 2314 (to
amend chapter 57 of title 39, United States
Code, so as to authorize the free use of the
mails in making reports required by law of
certain payments to others) .
The association, for your information and
ready reference, is the voluntary trade orga-
nization for some 600 member firms of the
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AL tthceED -- SENATE August 26, 1965
New York Stock Exchange. Our member-
ship, which is nationwide, is most seriously
affected by the present information return
regulations of the Internal Revenue Service.
We believe that your bill will do much to
ease this increasingly onerous burden?and,
more importantly, to resolve the seeming
conflict between this administration's
dynamic economic philosophy and the MS
regulatory pattern.
We see, on the one hand, the really tre-
mendous effort by President Johnson and the
Congress to lighten the tax burden on our
expanding economy. Income tax rates have
been reduced. Income tax forms have been
simplified; and, just recently, the President
signed legislation which eliminated, or sub-
stantially reduced, a great number of out-
moded excise taxes.
We are confronted, on the other hand,
with the rising costs to industry and the in-
dividual of tax compliance. Those costs, in
many areas, are at or near the point of ex-
ceeding any benefits that may have resulted
from tax reduction and reform. Your bill
is beamed to an area where this situation
has become acute.
Our association has called pointed and
repeated attention to these areas that create
needless tax compliance costs for the secur-
ities industry and for other financial institu-
tions as well. While we are fully aware of
the need for realistic compliance measures,
to insure enforcement of the tax statutes and
to guarantee that every taxpayer will bear
his proper tax load, we reiterate two com-
pelling questions: At what point does the
cost of tax compliance imposed on/ private
industry outweigh the tax benefits realized
by Government? Is it fair to impose systems
and procedures on the American business
community that result in substantial?even
excessive--administrative costs, in order that
Government's rightful enforcement role may
be somewhat easier?
Our prime case in point is this: The In-
ternal Revenue Code presently requires pay-
ors, including nominees, to furnish the Gov-
ernment information returns indicating the
aggregate amount paid to taxpayers, and also
to furnish a like statement to the taxpayer
himself. Our member firms, other members
of the securities industry, and other financial
' institutions are thus required to furnish tax-
payers with a completely useless piece of in-
forMation. This makes the postage cost
feature even more unpalatable.
I say "useless information" with good rea-
sOn: Our Member firms already supply their
ettatonaers with monthly or quarterly item-
ized statements which contain not only a
record of their stockholdings and securities
transactions, but also a record of all dividend
and interest payment credited to them dur-
ing the month. These customer statements
itemize such dividends and interest pay-
ments received from the corporate payors
by the broker as nominee for his customer.
These statements are what the customer-
taxpayer uses in preparing his income tax
return. This is the information he must
have in order to properly prepare his in-
come tax return--not some aggregate figure
on a Government-prescribed form which is
meaningless to him and, in many cases, to
the broker who prepared it.
We have attempted?many times, and with
a marked lack of success?to convince IRS
that furnishing such information to our
customers is a wholly unnecessary, exces-
sively expensive duplication of data already
available.
We think, therefore, that your bill, S.
2314, is a constructive step in the right direc-
tion towards solving at least a part of this
increasingly serious problem. We hope the
bill receives early and favorable considera-
tion in the committee on Post Office and
Civil Service. If there is any way the Asso-
ciation of Stock Exchange Firms can be or
further assistance to you in expediting its
passage, please let me hear from you.
Sincerely,
JAMES H. LYNCH, Jr.,
Assistant General Counsel.
THE WHEAT SHIPPING
REQUIREMENT
Mr. MONDALE. Mr. President, on
Monday the Senator from South Dakota
I Mr. 11(feCtrOvERE] appeared on the Na-
tional Broadcasting Co.'s "Today" show
to discuss with Sander Vanocur the re-
quirement that 50 percent of commercial
sales of wheat to Russia and Eastern
European countries must move in Ameri-
can ships.
The requirement has simply prevented
any sales occurring, as Senator Mc-
GOVERN explained.
The junior Senator from South Dakota
made such a fine and clear explanation of
the issue that many of us are getting a
heavy volume of mail expressing wonder
that the regulation exists.
Because of the mail in regard to the
broadcast, I obtained a transcript of .it
and believe others would benefit from
having a copy available. I ask unani-
mous consent, Mr. President, that it be
placed in the RECORD.
There being no objection, the tran-
script was ordered to be printed in the
RECORD, as follows:
THE TODAY SHOW
, (On NBC Television, Aug. 24, 1965,
Washington, D.C.)
FRANK BLA/R. The recent purchase by the
Soviet Union of Canadian wheat has caused
a stir among Democratic and Republican
Senators from wheat producing States.
They're seeking to have the White House
change the requirements set during Presi-
dent Kennedy's administration that 50 per-
cent of such U.S. wheat exports be shipped in
UB. vessels. This requirement, the Senators
believe, so raises the cost for the Soviets that
they will no longer buy our wheat.
One of the Senators who is leading the
fight agains the requirement is GEORGE MC-
GOVERN, Democrat, of South Dakota. He is
in our Washington studios this morning with
"Today" show's Washington correspondent
Sander Vanocur. (Sander?
Mr. VANOCITR. Senator McGoveasis since
the Soviet Union has recently purchased
almost a half a billion dollars worth of wheat,
mostly from Canada, and are likely to con-
tinue purchasing Western wheat for the next
few years, why can't the American wheat
farmer get a share of this market, since the
principle of selling wheat to the Soviet Union
was seemingly approved in 1983?
Senator McGoveasr. Well, the American
wheat farmer should have a share of this
business. We have about 800 to 900 million
bushels of wheat in surplus in this country,
in our reserve stocks, a good part of which
we ought to sell. We have another big
crop coming on this year, and as you say,
we made a policy decision 2 years ago that
it was in our national interest to sell wheat
to the Soviet Union, and to the countries
of Eastern Europe, then, very mistakenly,
In my view, we put on an administrative
ruling that required that 50 percent of any
wheat that we sell to the Soviet Union, or
to the countries of Eastern Europe, must
move in American ships, and that simply
raises the price, anywhere from 11 to 15
cents a bushel, to the buyer, and as a
consequence, the Soviet Union and the
other countries in Eastern Europe are not
buying any American wheats They're going
to Canada, Australia, France, or Argentina,
and completely bypassing the American
market, and as long as that shipping restric-
tion exists, we're not going to sell any wheat,
in my view, to the Soviet Union.
Mr. VANOCCR. Senator, was this an ad-
ministrative decision by President Kennedy's
administration, in 1963, or did Congress
have to do it? -
Senator MCGOVERN, The Congress had
nothing at an to do with it. It was a
decision that was reached by the Kennedy
adminLstration at the time of the Russian
wheat proposal in 1963. My understanding
is that that restriction was placed on the
deal as a Means of winning support from
some of the maritime unions. Actually, it
hasn't helped them in any way at all, be-
cause the net result of that restriction
placed by the administration, it's been con-
tinued by the present administration, has
been to deny us any opportunity to sell
wheat in Eastern Europe, so when we talk
about requiring 50 percent of the wheat
and other grains that might move into that
part of the world going in American ships,
we're actually talking about 50 percent of
nothing. We're not helping the maritime
unions; we're not helping anyone, and we're
depriving the wheat farmers of this country
of an opportunity to sell hundreds of mil-
lions of dollars of wheat and other grains
to the Soviet Union, and to the countries
in Eastern Europe.
Mr. VANOCUR. Senator, tell me first, what
is the size of the potential market, given
Soviet agricultural difficulties?
Senator McGovern's. Well, I would estimate
that this year, the Soviets may be in the
market for as much as :L4 or lb million tons
of wheat. Now, they have recently com-
pleted arrangements with the Canadians,
and a smaller deal with the Argentines, and
a somewhat smaller deal with the French, to
purchase somewhere around 7 million tons,
but every indication is, that before the end
of this year, they're going to need another
6 or 7 million tons. Now, the Canadians
have just about exhausted their capacity to
meet that need. Their port facilities are
strained to the limit; their shipping oppor-
tunities are almost fully utilized, and they're
contraoted now for almost the maximum
amount of wheat they can deliver.
Mr. VANOCUR. Put this in dollar figures on
a yearly 'basis.
Senator MCGOVER1V. Well, I would say
somewhere around a billion dollars this year.
Now, last year, the Russians purchased
something over a half a billion dollars in
wheat from the Western World, and they're
going to be in the market this year for an
even larger amount, from all indications.
The evidence we have is that this year, their
crop is no better than it was in 1963, which
was a bad year. They had a somewhat bet-
ter crop in 1964, although it was not par-
ticularly a good harvest. Now, from what we
can learn, they're back to the level of about
1983, in terms of production, so that I would
think there's still a half a billion dollars
worth of potential business that has not yet
been completed in this calendar year.
Mr. Vaarocua. And for the foreseeable fu-
ture?
Senator McGovisus. Well, every indication
is that for the next few years, they're going
to be in the market for several billion tons
of wheat each year, in the Western World.
There's no reason that I can see why we
wouldn't get at least half, and maybe more
than half, of that business.
In other words, we're talking about per-
haps as much as $250 million in wheat
sales that the United States could make,
were it not for this restriction on shipping,
what I referred to as a self-defeating re-
striction; it's a restriction that doesn't help
anyone.
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st rgf
-4? "k "Ci. 13f ncl nc A -12 4-m-A-fs justified, and that mounting pressures and
fading victory hopes may serve before too
long to bring the Communists to the confer-
ence table.
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) !CONGRESSIONAL RECORD ? APPENDIX
EXTENSION OF REMARKS
OF
HON. ROY H. MNICICER
OF COLORADO
IN THE HOUSE OF REPRESENTATIVES
Thursday, August 26, 19645
Mr. McVICKER. Mr. Speaker, how
are we faring in the Vietnamese war?
Many competent and sophisticated ob-
servers, inside Government and out, now
are expressing cautious optimism con-
cerning the progress of the war there.
The summer offensive of the Vietcong
aggressors has not been an unqualified
success. A recent operation by U.S. Ma-
rines in the Van Tuong Peninsula was a
striking military success. And many ob-
servers feel that other signs are develop-
ing which give us reason to be hopeful.
Two excellent editorials on this sub-
ject appeared recently in newspapers in
the Washington area. I commend them
to the attention of my colleagues, and I
offer them today for inclusion in the
RECORD. The first, entitled, "Brighter
Day in Vietnam," appeared in the Wash-
ington Evenin?, Star, Wednesday, Au-
gust 25; the second, entitled, "Optimism,
Cautiously," appeared in the Baltimore
Sun on the same day.
[From the Evening Star, Aug. 25, 1965]
BRIGHTER DAY IN VIETNAM
There is no reason to doubt that the domi-
nant feeling in Washington official circles
today is one of optimism with respect to the
war in Vietnam.
Almost 'nothing is being heard from the
Cassandras who, just a few months ago, were
shouting from the housetops that the United
States was headed for a major disaster in
southeast Asia. They are silent, significantly
so, and the reason is not hard to find.
For some weeks now the tide of war has
been slowly turning in South Vietnam,
There have been no spectacular victories of
late for the Vietcong. The monsoon season
is approaching its end and the massive Com-
munist assault, which the pessimists feared,
has yet to materialize. Finally, last week's
smashing victory at Chu Lai by the U.S.
Marines has put a new face on the whole
business. It had been accepted as gospel
that a numerical superiority of 10 to 1 was
needed for successful offensive operations
against the guerrillas. But the Marines,
with a superiority of less than 3 to 1, trapped
the unit of some 2,000 battle-hardened Viet-
cong, dug them out of their caves and tun-
nels, and decisively defeated them in the
worst setback of the war for the Communists.
The difference probably was in airpower
and superior firepower. These are advan-
tages, however, which the enemy cannot take
away from us. And the demonstration at
Chu Lai of their effectiveness must be caus-
ing serious second thoughts in Hanoi about
the wisdom of any mass attack on U.S. posi-
tions. In this connection a word might be
said about the bombings by the B-52's and
other aircraft. They have been ridiculed as
attacks which accomplished nothing except
to devastate jungle areas abandoned by the
Vietcong. Yet the evidence is accumulating
that these bombings have kept the Vietcong
off balance, prevented any large massing of
their forces, and have seriously depressed
their morale.
It is true, of course, that the course of
battle does not necessarily run in one direc-
tion all the time. In Vietnam, it may change
again. But for the moment there is plenty
of reason to believe that cautious optimism
[From the Baltimore Sun, Aug. 25, 19651
OPTIMISM, CAUTIOUSLY
Cautious and tentative optimism about
Vietnam in Washington is based on a num-
ber of factors, among them the failure a
the Vietcong to step up its activities as
heavily as had been expected during the mon-
soon season, supposedly favorable to their
sort of fighting, and last week's successful
Marine action on the Van Tuong Peninsula.
As to the first, no one knows why the Viet-
cong have not so far taken greater advantage
of the monsoon. Perhaps they are hurt more?
than had earlier been thought. Perhaps
they are having troubles of morale and sup-
ply. And perhaps to a considerable degree
the monsoon is more supposedly than really
favorable to them; perhaps their capabilities
in rainy conditions are not, after all, so
distinctly superior to those of their op-
ponents.
As to the Van Tuong Peninsula battle, as
it may properly be described, Mark S. Watson
has noted in the Sun that conditions were
exactly right for that undertaking. These
conditions he lists as: a sufficiently large force
of U.S. troops concentrated at one point,
well armed and trained for this kind of
fighting; a compact concentration of the
Vietcong, so that a well-planned attack could
envelop an entire enemy force; exact in-
telligence of the enemy concentration; per-
fect coordination of all U.S. elements, with
no less-trained troops taking part; a false
sense of safety on the part of the Vietcong.
In addition we may note that, unlike most of
the inland areas of Vietnam, the Van Tuong
Peninsula had the character of a field for
decisive?locally decisive?battle. Merely
from the published air photographs, it looked
like a battlefield.
The rarity of a coincidence of such condi-
tions is written in the bitter record of fight-
ing in Vietnam over many years. The action
does suggest that in other specifically Amer-
ican operations similar conditions will be
sought for, and the geography of Vietnam
suggests that they will be along the coast,
not inland. But this is not to be read as
the beginning of victory. Any optimism
must continue to be most cautious, and most
tentative, most limited, in the short term
and in the long. And in Vietnam, what in
any case is the definition of "victory"?
Activities of the Rightwing Minutemen
Organization in Wisconsin
EXTENSION OF REMARKS
OF
HON. LYNN E. STALBAUM
OF WISCONSIN
IN THE HOUSE OF REPRESENTATIVES
Thursday, August 26, 1965
Mr. STALBAUM. Mr. Speaker, under
leave to extend my remarks in the Ap-
pendix of the CONGRESSIONAL RECORD, I
want to call to the attention of my col-
leagues that my good friend, Congress-
man JOHN A. RACE, of Wisconsin's Sixth
District, has received support from a Mil-
waukee television station in his efforts to
document the activities of the militant,
rightwing Minutemen organization in
Wisconsin.
The TV editorial of WTMJ-TV, on
Friday, August 20, said RACE deserved
encouragement for his work in spotlight-
A4837
Ing the Minutemen efforts to enlarge the
scope of their activities.
The editorial follows:
BROADCAST ON WTMJ-TV BY MR. BOB REISS,
10:15 P.M., FRIDAY, AUGUST 20, 1965
Last month California became the 24th
State to make private armies illegal. At the
time, the State's attorney general, Thomas
Lynch, ,said: "We cannot allow bands of de-
luded individuals to wander our deserts and
mountains armed with grenades, bazookas,
mortars, and machineguns, and plotting out-
rageous schemes of guerrilla warfare."
Of course they can't. No State should. If
Wisconsin's laws are inadequate our legisla-
ture ought to ban armed groups. Perhaps
Federal legislation is needed to cope with
the growing threat.
Wisconsin's Sixth District Congressman,
JOHN RACE, is mustering forces to get such
legislation on the books. He is aiming par-
ticularly at the Minutemen, which is a mili-
tant, rightwing organization. Although the
Minutemen claim their primary purpose is to
protect American citizens from Communist
subversion, RACE fears the organization itself
may be an embryonic subversive group. He
charges that while the Minutemen are voic-
ing a callous disregard for the leaders and
policies of the Federal Government, they are
hurriedly amassing a large arsenal of auto-
matic weapons. In this connection. Minute-
men leaders urge members to join gun clubs
so they can get free ammunition from the
Government. This creates a ludicrous situ-
ation in which any potentially subversive
organization could be partially subsidized by
Washington.
Although the Minutemen organization
probably has made its greatest gains in Cali-
fornia, RACE says he has proof of activities in
Wisconsin. Representative RACE has care-
fully documented his reasons why groups
such as the Minutemen should be outlawed.
He is gathering more evidence before de-
ciding whether to sponsor restrictive legisla-
tion. He deserves encouragement. For while
the Constitution confers upon private citi-
zens the right to bear arms, it certainly does
not give them the right to form private
armies. This must be stopped.
Now It Can Be?Fresh Water Anywhere
EXTENSION OF REMARKS
OF
HON. GLENN R. DAVIS
OF WISCONSIN
IN THE HOUSE OF REPRESENTATIVES
Thursday, August 26, 1965
Mr. DAVIS of Wisconsin. Mr. Speaker,
my hometown of Waukesha, Wis., was,
in earlier days, known as one of the
great watering places of the Middle West.
Here, mineral spring water has been bot-
tled for decades. To this "Saratoga of
the West" came Mrs. Abraham Lincoln
in the years of her desperate search for
restoration of her health.
In 1965, Waukesha has again achieved
worldwide renown as a watering place?
this time through the efforts of Aqua-
Chem, Inc., probably the best known of
all the producers of desalting plants for
making fresh water.
As a matter of interest to my col-
leagues, relating to this highly current
and greatly significant matter, I set
forth here the lead article from the
August issue of Wisconsin Business News
magazine:
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A4838 CONGRESSIONAL RECORD ? APPENDIX August 26, 1965
Now IT CAN BE--FRESH WATER ANYWHERE
The state of the art is a favorite expres-
sion these days when summarizing progress
made in a particular scientific or mechanical
area.
In the matter of converting seawater to
fresh water, no one company is more aware
of the state of the art than Aqua-Chem, Inc.,
Waukesha, a subsidiary of Cleaver-Brooks CO.,
Milwaukee.
Aqua-Chem is the first and only company
In the world devoted entirely to the manu-
facturing of water desalting units. -Desalt-
ing plants by Aqua-Chem?over 4,000?ac-
count for nearly 50 percent of all such plants
operating in the world today.
Land-locked and coincidentally located in
a city known for its pure spring water, Aqua..
Chem has shaped and fused Metals inte de-
salination plants from Point Barrow, Alaska,
the northermost city in the United States,
to a lonely U.S.Navy Base at McMurdo
Sound, Antarctica, and from southern Cali-
fornia around the world to Kuwait.
Visitors in the beautiful Princess Hotel
in Bermuda enjoy Aqua-Chem pure water
converted from the sea near the island resort.
Our Navy men on the supercarriers Inde-
pendence and Enterprise shower daily with
pure water converted from the sea by Aqua-
Chem units.
Passengers on the two Italian luxury liners,
Michelangelo and Raffaello, can drink, swim
in, bathe in, and eat fresh vegetables cooked
in pure water converted from the sea.
Patients in many hospitals like the King
Edward Hospital, Hamilton, Bermuda, have
received intravenous injections containing
water purified from the Atlantic Ocean.
Italy's largest steel producer, Italsider, at
Taranto has an Aqua-Chem unit Converting
nearly 1,200,000 gallons of fresh water per
day?water ultrapure with less than one
part of salt per trillion parts of fresh water,
An 800,000 gallons per day plant extension
by Aqua-Chem ha a given one of the largest
seawater desalting plants in the world--lo-
cated on the island of Aruba, Netherlands
Antilles?a total capacity of 3,300,000 gallons
of fresh water per day.
The importance of adequate supplies of
fresh water has been underscored recently by
developments along the Atlantic coast from
Maine to Virginia where a combination of
drought and eroding shores has created
shortages of water as well as serious pollu-
tion of deep water wells.
New York City and its environs, heavily
dependent on its aqueduct and reservoir
supply system, has been particularly hard-
hit. Eroding shores along the New Jersey,
Delaware,. and Maryland coasts have suc-
ceeded in forcing saline water into nearby
fresh Water wells.
What then is the state of the art in the
water conversion field? Can we meet this
challenge to our greatest natural resource,
not only here in the United States but
throughout the world?
Last year, by speoial invitation of a Pres-
idential task force, Gordon Leitner, Aqua-
Chem executive vice president, reported that
his company riould guarantee performance
on water desalination plants in the 50 to 150
million gallons per day range, using nuclear
energy as a power source.
Fred Loebel, president of the company and
holder of many vital patents in the field, has
revealed that Aqua-Chem -has aceornplished
design studies for a 25-million-gallons-per-
day plant for the Puerto Rico Water and
Power Commission?a 50 -million-ga non s-
per-day plant for the Presidential task
force?and a 150-million-gallons-per- day
unit for large municipalities such as the Los
Angeles and Long Island, N.Y., areas.
A representative set of figures from the 50-
million-gallons-per-day plant indicates a
cost of 34 cents per 1,000 gallons of fresh
water, within range of the ability to pay
most municipalities requiring large capacity
plants.
While large capacity plants are getting the
major share of attention from planners,
paaskaged plants have also attracted interest.
Loebel reports that another dimension of
Aqua-Chem has been its packaged unit con-
cept for hotels, resorts, institutions, etc., and
that there is a growing market for these all
over the world.
Packaged plants, he says, are getting larger
as well as smaller, or because of technological
advancements, a plant of z capacity built
just 5 years ago would be much more com-
pact today. Marine plants are now one-half
the physical size they were 10 years ago.
Aqua-Chem, for instance, has six plants on
order in the 100,000-gallons-per-day size and
one in the 200,000-gallons-per-day capacity?
all high temperature, multistage flash evap-
orators?that will be fully packaged, com-
plete with all piping, pumps, controls ready
to go when set down, and utilities connected.
Loebel discloses that his company now
has the capability of putting a 500,000 gal-
lons-per-day plant on a flat-car and will be
able, in a short time, to completely package
a 1 million gallons-per-day plant.
Aqua-Chem has manufactured the three
largest marine sea water conversion plants
in the world-280,000 gallons per day for the
U.S.& Enterprise and two 240,000 gallons-per-
day units for the new twin luxury liners,
Michelangelo and Raffaello.
Every cabin?from tourist to first class?
on the latter ships has a private bathroom.
More than 300 modern flash evaporator
plants on all types of ships throughout the
world from nuclear submarines to the first
nuclear-powered transport, NS Savannah,
have been designed and manufactured by
Aqua-Chern.
Aqua-Chem, though, is not Only looking
up?at 150 million-gallons-per-day plants?
but down as well, as the low-capacity unit.
As Loebel puts it, "Sometimes it's more
difficult to build small things. It's more
difficult, for instance, to make a wristwatch
than an alarm clock."
For several years, Loebel has been working
on the development of domestic units from
1 to 50 gallons per day. He has a unit now
with almost no moving parts and a hot water
tap as svell as cold water tap.
Aqua-Chem has manufactured a number
of 5 gallons-per-day units and is marketing
them on a limited basis. In addition, the
company has made a number of the 50
gallons-per-day-size units for the Army Medi-
cal Corps for field use in producing sterile
water for intravenous injection solutions.
A couple of dozen vending machines of
the 50 gallons-per-day capacity are being
test-marketed in the southern California
area.
Is there an overall market to justify this
development activity?
Certainly. A recent survey indicates that
more than 3 million people in 1 million
households are now served by public water
systems with 1,000 parts per million of dis-
solved salts. The U.S. Public Health Serv-
ice considers this type of water unfit to
drink.
And water pollution problems are be-
coming increasingly acute throughout the
Nation.
Aside from the obvious health benefits?
absence of salt, nematodes, bacteria, etc.?
pure water has numerous other bonuses.
Contrary to popular belief, pure water is
not flat Cool and aerated, it has a pore
flavor very few people have experienced.
The fiat idea, Loebel discloses, comes from
distilled water left on shelves for months and
tasted warm. Even the best spring water, he
says, would be unpalatable under similar
conditions.
Pure water, the Aqua-Chem president
claims, really opens up new dimensions in
cooking. Market studies show that people
who have once tried the pure, desalted Water
in coffee, soups, for cooking seafood, in ice
cubes and water for cocktails, never want to
return to their old water supply, even if it
is fairly good.
Uses for small units would be in con-
taminated areas where private wells suffer
from septic tank pollution, detergent con-
tamination or from sea water itself; in areas
where qualitative problems are great--bad
taste, foul odor, etc.; in vacation or mobile
homes; and in hospital and commercial lab-
oratories where the need is great for sterile
water.
Aqua-Chem, says Loebel, is cooperating
with President Johnson who has called for a
major breakthrough in the cost of desalting
water and urged the beginning of a bold new
program toward converting large quantities
of heavily salted water at the lowest possible
cost in the shortest time.
"Whether the source of energy needed to
desalt water be the atom, coal, oil or gas, the
work accomplished by our research and engi-
neering has made us ready," Loebel con-
cludes.
New Coinage
EXTENSION OF REMARKS
OF
HON. JOSEPH W. MARTIN, JR.
OF MASSACHUSETTS
IN THE HOUSE OF RE.PRESENTATIVES
Thursday, August 26, 1965
Mr. MARTIN of Massachusetts. Mr.
Speaker, last Friday I had the honor to
witness the manufacture of the one-mil-
lionth pound of clad metal for our new
coins.
The ceremony took place at the Metals
and Controls Division of Texas Instru-
ments, Inc., in Attleboro, Mass. It
marked the first stage of a large contract
that will not only transform our coinage
system but will prove to the world the
usefulness and serviceability of clad
metals.
Already clad metals are contained in
every household, every automobile, every
TV set and every radio, but all this seems
only the beginning of a dramatic expan-
sion of the use of such metals in every
phase cif American life.
We were particularly pleased to have
as guest of honor at this ceremony my
colleague from western Massachusetts,
Congressman Siva? 0. CONTE. I ask
unanimous consent that a portion of his
speech be printed at the conclusion of my
remarks:
RED/Limas OF CONGRESSMAN SILVIO 0. CONTE
Today when I can see the results of a pro-
tracted legislative battle, I am satisfied that
all the long hours of study, meetings, de-
bates and speeches were worth every minute
of the effort expended.
Today we stand at the end of a long and
torturous road and at the beginning of a
new era. I look back on my call for a new
system of coinage for this country, which I
first made more than 3 years ago?a coin-
age system that would break the tie of de-
pendence upon an ever more critical supply
Of silver. We all look back on the tradition
Of silver coins. That tradition could be
traced back to 1792, but today had become a
luxury that we simply could no longer afford.
We all look back on periods of serious coin
shortages, of doubling and redoubling our
annual coin production, of working our mints
24 hours a day, 7 days a week, and still not
bringing the supply of coins in line with the
demand for them.
More importantly, for Metals and Controls,
for the people of Attleboro, for all of Massa-
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August 26, 1965 CONGRESSIONAL RECORD ? APPENDIX A4829
opposition of those who "know it can't be
done and those "who like the town the
way it is."
What is that little something which makes
it possible for one small town to show all
the signs of a boom while most towns of
its size are slowly fading away? It is diffi-
cult to point out exactly what provides the
spark but we think it must be the commu-
nity leaders.
In a small town, an enormous amount of
good can be done by a few people working
with the betterment of the community at
heart. A few individuals, working sep-
arately or together, who are willing to de-
vote a few hours a week to thoughts and ac-
tions aimed at improving their community
can do wonders.
We think therein lies the secret of Oak-
land's success. Due to the generosity of the
late Frank Eckels, long a respected com-
munity leader, and the followthrough o
younger citizens, the golf course and the
library came into being. From that time,
Oakland has displayed far more than its
share of community growth and pride.
' How far the present impetus of com-
munity accomplishment can carry Oakland
is difficult to say. Those of us who know
the young businessmen that are providing
the spark in that community wouldn't want
to sell them short. We wish them all the
luck in the world.
A Veto by the President
EXTENSION OF REMARKS
OF
HON. RAYMOND F. CLEVENGER
OF MICHIGAN
IN THE HOUSE OF REPRESENTATIVES
Thursday, August 26, 1965
Mr. CLEVENGER. Mr. Speaker, the
President weut to great pains to explain
that he vetoed the important military
construction measures only because he
was advised, it was an unwarranted and
unconstitutional restriction on the power
of the President to deal quickly and de-
cisively with national emergencies.
The newspaper reaction to this deci-
sion has been extremely favorable as this
editorial from the August 24 Philadelphia
Inquirer illustrates. This incisive analy-
sis deserves wide distribution, and I in-
sert it in the RECORD at this point:
. A VETO BY THE PRESIDENT
We support strongly President Johnson's
veto of the $1,780 million military construc-
tion bill. The veto is a weapon that Mr.
Johnson has used sparingly. In this instance
he used it wisely.
It should be emphasized, however, that the
bill he vetoed p an essential piece of legisla-
tion which needs to be enacted at this ses-
sion of Congress. In view of the critical
situation in southeast Asia it would be folly
to postpone vital military construction proj-
ects until next year. We urge Congress to
remove or modify the provision to which the
President objected and then proceed prompt-
ly to pass the measure again.
The veto was aimed at a section of the bill
that would have forbidden the President to
close any military installation, or reduce its
functions substantially, unless an advance
notice of 4 months were given to the Senate
and House Armed Services Committees, Mr.
Johnson declared?rightly so, in our opin-
ion?this wOulti be congressional intrusion
upon constitutional powers of the Presi-
dency.
Aside from the constitutional question, the
provision would hamstring national security
and defense. In these troublesome and un-
certain times it is ikecessary to maintain
military flexibility. If the President deems
it advisable?for the safety of the country
and to maintain maximum efficiency of the
Armed Forces?to shift the functions of a
military base to some other location, he
ought to be able to do so speedily and with-
out political interference. It is neither rea-
sonable nor prudent to demand that he no-
tify Congress 4 months in advance.
We would advocate that, as a routine mat-
ter of policy, the President make a practice
of consulting with Congress and keeping its
Members fully informed on changes of status
in military installations?but he should not
have his hands tied by a mandatory 4-month
waiting period. To impose unwarranted re-
striction upon Presidential power to act de-
cisively and immediately, in the national in-
terest, is to tamper dangerously with the
security of the country.
EXTENSION OF REMARKS
OF
HON. DAVID S. KING
OF UTAH
IN THE HOUSE OF REPRESENTATIVES
Thursday, August 26, 1965
Mr. KING of Utah. Mr. Speaker, re-
cently the trustees of Freedom House in
New York, a distinguished and well-
informed group of patriots, issued a bal-
anced, temperate, and wise statement
concerning this Nation's involvement in
Vietnam.
The reasons advanced by these Amer-
icans for continuing to support free
South Vietnam in its struggle against ag-
gression are, I think, incontrovertible.
Highlights of the Freedom House state-
ment appeared recently in the Deseret
News of Salt Lake City, Utah.
I offer for entry in the RECORD the
highly interesting editorial on this mat-
ter, "Why We're in Vietnam," and I rise
to salute the officials of Freedom House
for the excellent statement which they
advanced. This editorial?and the Free-
dom House statement?will lend balance
and perspective to the national dialog
on Vietnam:
WHY WE'RE IN VIETNAM
As any American who has followed the
course of events in Vietnam knows, there are
plenty of valid reasons for being critical of
the U.S. involvement there.
Among them is the danger of spreading
our military forces too thin, of doing the
South Vietnamese fighting for them, of
fighting an unfamiliar type of warfare on
the enemy's terms rather than on our own
in a land where it's hard to distinguish foe
from friend, and of drawing Red China into
the conflict in such a way that might bring
on world war III.
These criticisms?and others?are being
loudly voiced by the administration's critics
in the intellectual community.
The administration and its supporters
maintain, however, that the North Vietnam
Government is just a puppet being manipu-
lated by Red China for the purpose of spread-
ing its Communist empire, that the will of
the. V.ietnamese people to resist this aggres-
sion is attested to by the hundreds of thou-
sands who have given their lives fighting it
or who have fled before its advances, that
the United States is receiving help in Viet-
nam from a score or more of nations, and
that opinion polls show the great majority
of the American public believes President
Johnson is doing the right thing in Vietnam.
In a debate where both sides are so dia-
metrically opposed, what's the ordinary citi-
zen to believe?
In the interest of clarifying the thinking
being done about Vietnam, the trustees of
Freedom House in New York have issued a
credo which makes a great deal of sense. It
includes:
Our withdrawal from Vietnam under pres-
ent circumstances cannot be sustained on
moral grounds. * * * Having freely accepted
responsibility as a world power and a
champion of freedom, the United States
would dishonor that role by defaulting on its
promises and commitments. Such default
would not only abandon men, women, and
children to cruel reprisals; it would seriously
undermine the credibility of our commit-
ments to other nations.
The decision to halt Communist aggres-
sion?whether in Vietnam, Laos, or the
Congo?is clearly in the interest of the
United States and other nations of the free
world.
We welcome the recognition of a common
interest which has prompted Australia, New
Zealand, and South Korea to take an active
part in the present struggle. We hope other
allies will join in the defense of free world
areas threatened by Communist wars of na-
tional liberation.
The United States is not embarked on a
military crusade against Communist nations.
Our record in dealing with the Iron Curtain
nations of Europe and living peaceably with
their Communist-controlled societies is our
credential.
We regret the world is still racked by force
rather than run by reason. But we also see
no hope for reason until the force of law-
lessness is checked. Our troops and arms
are not mere engines of destruction; they are
instruments of prevention. We mean to use
them as judiciously as possible. But we do
mean to use them effectively.
The objective of our involvement in Viet-
nam is not total annihilation of the Com-
munist Vietcong; rather, it is to convince
them by the only means they apparently
understand?strength and the willingness to
use it?that the best interests of all will be
found not on the battlefield but at the
conference table.
In working to achieve the goal of an hon-
orable peace in Vietnam, the administration
needs the wholehearted support of the Amer-
ican people.
Near East Refugee Problem
SPEECH
OF
HON. KEN W. DYAL
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, August 24, 1965
Mr. DYAL. Mr. Speaker, I wish to
commend the thoughtful and careful
presentation of my colleague, the gentle-
man from California [Mr. RoossvELrl,
on the refugee problem in the Near East.
He has performed a great service in the
last few weeks in bringing to the Con-
gress the problem of the arms race and
its dangers, the water conflict and today
his excellent suggestion on refugees. He
has performed, a great service to the
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A4830 CONGRESSIONAL RECORD -- APPENDIX August 26, 1965
House and the State Department in his
researeh and analysis.
Mr. Speaker, when I traveled in that
land I discovered that every effort had
been made to settle the Arab question in
an equitable and just manner. I dis-
covered that there were Arabs in the
Knesset and there were at least three
Arab political parties, with complete free-
dom to participate in the affairs of gov-
ernment. Arab Christians are permitted
freedom of religion and enjoy the use of
their own language. The Israeli Govern-
ment maintains Arab schools. There are
over 250 state schools for Arabs with
some 34,000 pupils. You may be assured
that there is freedom and opportunity for
these people within the new nation.
Under the Israeli Government they have
made advancement and progress, far in
excess of their fellows across the border.
The refugees have been forcibly kept
from returning and have been main-
tained as a festering sore in the Near
East. The truth that I speak here today
has been well documented. This House
knows that it is true, our State Depart-
ment knows that it is true. We should,
therefore, make it plain to Mr. Nasser
and his puppets that they should quit
playing polities with the unfortunate
lives of these poor people.
Mr. ROOSEVELT'S suggestions on the
floor this week deserve careful considera-
tion.
American Ac ommunity-Su
Freedom House Statement Un V et-
ROM
? EXTENSION OF REMARKS
OF
HON. WILLIAM T. MURPHY
OF ILLINors
IN THE HOUSE OF REPRESENTATIVES
Thursdaw, August 26, 1965
Mr. MURPHY of Illinois. Mr. Speaker,
the teach-ins on the American college
campus and the Poet Robert Lowell 's
dramatic refusal to participate in the
White House Festival of the Arts have
widely been interpreted as an indication
that America's intellectuals do not agree
with our policy in Vietnam.
I have never felt this to be the case and
I want to call your attention to a graphic
piece of evidence which demonstrates the
general support which President Johnson
has in the academic community.
Faculty members at '70 colleges, univer-
sities, and other institutions of higher
education?a total of more than 130 in
all?have endorsed the Freedom House
statement whil:th declares that with-
drawal from Vietnam under present cir-
cumstances would be morally indefen-
sible and that the decision to halt Com-
munist aggression is in the vital interest
of the free world nations.
Evidence of this kind of general sup-
port is so important that I include the
August 23 Freedom House release in the
RECORD at this time:
Assasscasr ACADEMIC COMMUNITY SUPPORTS
FREEDOM HOUSE STATEMENT ON VIETNAM
/Lore than 130 members of the American
academic community have publicly backed
the position of the ILS. Government in
South Vietnam. Their action was taken in
endorsing a. Freedom House statement, which
declares that the present policy of the
United- States "deserves the Wholehearted
support of the Amerioan people."
Faculty members at 70 colleges, universi-
ties, and other institutions of higher educa-
tion in the United States are among those ex-
pressing their agreement. Although a ma-
jority are in the fields of political science and
international relations, the group includes
scholars from a wide range of academic dis-
ciplines. A professor of economics at Cor-
nell University, however, withheld his sig-
nature although he agreed with the state-
ment and has "written various public officials
to this effect." He expressed the feeling that
"it is inappropriate for individuals with ex-
pertise in one field to use their position to at-
tempt to influence the public."
The endorsements are in response to a let-
ter mailed to a selected list of persons in
academic life by Leo Cherne, chairman of
the Freedom House Executive Committee.
Writing on behalf of Freedom House, Mr.
Cherne declared: "Too long, we feel, those
with opposing views have been left a clear
field to present themselves to the world as
the single voice of American intellectuals."
In addition to the faculty members, hun-
dreds of Americans in all walks of life have
written to declare their agreement with the
Freedom House statement on Vietnam. Most
of them backed up their declaration with a
contribution to permit the statement to be
disseminated more widely.
They overwhelmingly endorsed the view
that if the "aggression against South Viet-
nam?disguised as a 'war of liberation'?is
not successfully resisted, more aggression and
perhaps even larger scale war will follow."
The Freedom House statement included a
credo of support, which declared that with-
drawal from Vietnam under present circum-
stances Would be morally indefensible and
that the decision to halt Communist aggres-
sion is clearly in the interest of the free world
nations. At the same time the statement
noted that the United States is "not em-
barked on a military crusade against Com-
munist nations" and that American military
operations are "only past of the substantial
U.S. program to enlarge the economic, social,
and political future of the Vietnamese
people."
The Freedom House effort to enlist support
for our Government's Vietnam policy was
welcomed by President Johnson in a letter
to the organization's public affairs commit-
tee, dated July 19, as follows:
"I believe your statement in support of the
policy of the United States toward Vietnam
reflects the strong Opinion of most Amer-
icans. What you say takes increased impor-
tance from your long and courageous record
of opposition to all forms of tyranny.
"I am grateful for the position stated in
your credo of support and I hope that others
who feel as you do may be willing to join in
this expression. Effective public support of
our national purpose in Vietnam will hasten
the coming of the peace which is our common
purpose."
The members of the academic community
who have endorsed the administration's pol-
icy in Vietnam are part of a growing list of
faculty members who are communicating
their views to Freedom House. New sponsors
are adding their names daily; the list to date
follows:
SPONSORS OF FREEDOM HOUSE STATEMENT
American International College: C. S.
The American University: Ernest S. Grif-
fith, clean, School of International service;
Loy W. Henderson, director, Center for Di-
plomacy and Foreign Relations. '
Bowling Green State University: Emanuel
Solon, department of chemistry.
Brandeis University: Max Lerner, professor
of American civilization.
Brooklyn College: Harry D. Gideonse, pres-
ident; Hyman Kublin, department of his..
tory; Ivan D. London, department of
psychology.
Brown University: William T. Hastings,
professor of English emeritus.
Bryn Mawr College: Angsline N. Lograsso.
Carleton College: Reginald D. Lang, de-
partment of government and international
relations.
The Catholic University of America: B. S.
Browzin.
Claremont Graduate School: George S.
Blair.
Claremont Men's College: William S.
Stokes, senior professor of comparative polit-
ical institutions.
The College of Idaho: George V. Wolfe,
professor of political science.
Columbia University: Daniel Bell, profes-
sor of sociology; Zbygniew Brzezinski, direc-
tor, research institute on Oommuniat affairs:
William K. Jones, professor of law; Willis L.
M. Reese, director, Parker School of Foreign
and Comparative Law; Joseph H. Smith, pro-
fessor of law.
Cornell University: Charles Ackerman, de-
partment of sociology; George H. Hildebrand,
department of economics; Jacob Wolfowitz,
department of mathematics.
Dartmouth College: John W. Masland, de-
partment of government.
Drew University: Will Herberg.
Elmhurst College: Royal J. Schmidt, pro-
fessor of political science and history.
Fairfield University: John Norman, depart-
ment of history.
Gallaudet College: Kurt Beerinann, profes-
sor of history and political science.
George Washington University: Franz Mi-
chael,, associate director, Institute for Sino-
Soviet Studies.
Georgetown University: James D. Atkin-
son, department of government; Walter W.
Wilkinson, department of history; Rev. Ger-
garrams.
dF. Yates, S.J., international student pro-
Harvard University: Robert Braucher, pro-
fessor of law; Carl J. Friedrich, professor of
government, Littauer Center; Morton H. Hal-
perin, Center for International Affairs;
George C. Homans, department of social rela-
tions; Samuel P. Huntington, professor of
government; William L. Langer, professor of
history; Harvey C. Mansfield, Jr., department
of government; George H. Quester, Center for
International Affairs; George C. Shattuck,
Medical School; Roland W. Thorwaldsen,
Center for the Study of World Religions.
Hofstra University: Robert A. Christie;
John C. Moore, department of history.
Hollins College: Victor Zitta.
Indiana University: Robert F. Byrnes, di-
rector, Russian and East European Institute;
John E. Stoner, department of government.
Lehigh University: if. S. Braddick, depart-
ment of international relations; Aurie N.
Dunlap, department of international rela-
tions; A. Roy Eckardt, department of religion.
? Macalester College: Arthur Upgren, depart-
ment of economics.
Marquette University: Arthur C. Marlow,
chairman,, political science; Quentin L.
Quade, department of political science; Eric
Waldman, department of political science
Massachusetts Institute of Technology:
Lincoln P. Bloomfield, department of politi-
cal science; Ithiel de Sola Pool, department
of political science; Lucian W. Pye, depart-
ment of political science.
Miami University: Dan N. Jacobs, pro-
fessor of government.
Michigan State University: Charles R.
Adrian, chairman, department of political
science; Wesley R. Fishel, department of
political science; J. Oliver Hall, department
of social science.
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August 26, 1965 CONGRESSIONAL RECORD ? APPENDIX
New York University: Sidney Hook, de-
partment of philosophy; Frank N. Trager,
professor of international affairs.
Ohio State University: James A. Robinson.
Princeton University: Rowland Egger,
Woodrow Wilson school of public and inter-
national affairs; Brooks Emeny, advigory
council, Woodrow Wilson school of public
and international affairs; William W. Lock-
wood, Woodrow Wilson school of public'and
international affairs.
Ripon College: William Fleming, chair-
man, department of political science.
Rutgers?The State University: Donald G.
Herzberg, executive director, the Eagleton
Institute of politics.
Sacramento State College: George Tok-
makoff, department of history.
Saint Louis University: Francis J. Corley,
department of history.
Smith College: M. Salvadori, department
of history.
Southern Illinois University: William
Goodman, chairman, faculty of government.
Stanford University: Stefan T. Possony,
director, international political studies pro-
gram, Hoover Institution.
State College, Shippensburg, Pa.: Benjamin
Nispel, dean of arts and sciences.
Texas A. & M. University: Daniel Russell,
professor emeritus of sociology.
Texas Christian University: Charles W.
Procter, department of government.
Texas Western College: S. D. Myres, de-
partment of government; Roland I. Perusse,
department of government.
Tulane University: Henry L. Mason, pro-
fessor of political science.
University of Bridgeport: Victor E. Muniec,
Justus M. van der Kroef, department of
political science.
University of California, Berkeley: Eric C.
Bellquist, department of political science;
Joseph P. Harris, department of political
science; Seymour Martin Lipset, director,
Institute of International Studies; Frederick
C. Mosher, department of political science;
William Petersen, department of sociology;
Robert A. Scalapino, department of political
science; Raymond J. Sontag, department of
history; Aaron Wildavsky, department of
political science.
University of California, Los Angeles: J. A.
C. Grant, Robert G. Neumann, department
of political science.
University of Chicago: Morton A. Kaplan.
University of Cincinnati: Paul F. Power,
department of political science.
University of Colorado: James L. Busey,
department of political science; Edward J.
Rozek, department of political science.
University of Connecticut: Arthur Bron-
well, dean of engineering.
University of Maryland: Walter Darnell
Jacobs, department of government and
politics.
University of Michigan: Russell Fifield,
department of political science.
University of Minnesota: Carl A. Auerbach,
professor of law; Harold C. Deutsch, chair-
man, department of history; Samuel Krislov;
C. H. McLaughlin, department of political
science; Arnold M. Rose, professor of
sociology.
University of Montana: Thomas Payne.
University of Pennsylvania: William R.
Kintner, deputy director, Foreign Policy Re-
search Institute; Robert Strausz-Hupe, di-
rector, Foreign Policy Research Institute.
University of Pittsburgh: Daniel S.
Cheever, Graduate School of Public and In-
ternational Affairs; John 0. Hall, director,
overseas programs, Graduate School of Pub-
- lie and International Affairs; Donald C.
Stone, dean, Graduate School of Public and
International Affairs.
University of Richmond: Spencer D. Al-
bright.
University of South Carolina: Robert W.
Foster, professor of law; James E. Larson,
professor of political science.
University of Tennessee: Douglas Carlisle,
department of political science.
University of Texas: Page Keeton, dean,
school of law.
University of Washington: Imre Boba, Far
Eastern and Russian Institute; Karl A. Witt-
fogel.
Upper Iowa University: Charles B. Clark.
Utah State University: Jay M. Bagley, civil
engineering department; Carlton Culmsee,
dean, College of Humanities and Arts; Elliot
Rich, civil engineering department.
Wabash College: George A. Lipsky, politi-
cal science and geography department; War-
ren W. Shearer, economics department.
Western Washington State College: Man-
fred C. Vernon, department of political
science.
Yale University: Eugene V. Rostow, pro-
fessor of law; Walter R. Sharp, professor
emeritus of international relations; Alex-
ander von Graevenitz, department of micro-
biology.
Yeshiva University: Joseph Dunner; Rd-
man Vishniac, professor of biology.
Additional listings: Robert A. Goldwin,
director, Public Affairs Conference Center,
University of Chicago; William V. O'Brien,
chairman, Institute of World Policy, George-
town University; Robert Sobel, Department
of History, Hofstra University.
Federal Government and Washington:
Partners in Crime and Vice
EXTENSION OF REMARKS
OF
HON. PAUL A. FINO
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Thursday, August 26, 1965
Mr. FINO. Mr. Speaker, today I would
like to tell the Members of this House
about the uninformed partnership of the
Federal Government and the State of
Washington in keeping gambling illegal
in Washington and thus making gam-
bling's lucrative profits available to the
underworld.
Last year, the parimutuel turnover
in Washington came to $30 million.
More significant?and more menacing?
is Washington's illegal gambling activ-
ity. Testimony before the McClellan
Committee indicated that off-track bet-
ting conies to about $50 billion annually
throughout the Nation, with this figure
accounting for only some 42 percent of
the national annual illegal gambling
total, which would thus be $120 billion.
On a population basis, illegal gambling in
Washington would come to about $1.92
billion a year so that Washington is
really a lucrative stamping ground for
the syndicate. The mob cuts itself 10
percent of the illegal gambling take
which means that they must be prosper-
ing mightily in Washington. Govern-
ment-run gambling would siphon these
moneys from mob treasuries putting
gambling revenues to work for the
people.
The best way to make gambling work
for the public good?since it is basically
ineradicable?is a national or series of
State lotteries. If the State of Wash-
ington would wake up to social and
financial reality, it would legalize, regu-
late and control gambling so that the
gambling urge of the people of Wash-
ington could be made to work for rather
than against society.
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A4831
Why Does Not Economy Begin at Home?
EXTENSION OF REMARKS
OF
HON. GLENN CUNNINGHAM
OF NEBRASKA
IN THE HOUSE OF REPRESENTATIVES
Thursday, August 26, 1965
Mr. CUNNINGHAM. Mr. Speaker,
the situation in the Post Office Depart-
ment is unbelievable indeed. Each day,
my attention is called to some new and
outrageous example of inefficiency. Just
a few weeks ago, I called to the attention
of my colleagues the incredible disap-
pearance in the mails of over a half-
million dollars worth of coin "proof sets"
produced by the U.S. Treasury. This
was a prime example of the gross in-
competency with which our Post Office
Department is presently being operated.
While Post Office Department officials
contend they are taking steps to improve
our mail service, the record is to the
contrary.
My distinguished colleague on the
other side of the aisle, the Honorable
GEORGE SHIPLEY, of Illinois, recently
made some very pointed comments about
economy in the Post Office Department.
They were reprinted in he Omaha
Postal Clerk and I ask unanimous con-
sent to enter this article in the RECORD.
The article follows:
DEPARTMENT ATTACKED BY ILLINOIS
CONGRESSMAN
The following article appeared in the Nixie
local 239, Springfield, Ill.
(What Representative SHIPLEY thinks of
the mail service. Reprinted by permission
of Gene Callahan, Illinois State Register po-
litical reporter.)
U.S. Representative GEORGE SHIPLEY, of
Olney, has leveled severe criticism at the
administration of Postmaster General John
Gronouski for a Post Office decision to con-
solidate seven rural mail routes in SHIPLEY'S
23d District. Here are excerpts from SHIP-
LEY'S attack:
"Recently the Post Office Department an-
nounced it was going to cut some of the ex-
penses within the Department and there
would be a great savings to the taxpayers.
"It appears the Postmaster General is fall-
ing into the same old trap of the Washington
bureaucrats in deciding where these savings
should be made. It seems it is customary
when the bureaucrats in Washington decide
on savings, it is always savings someplace
where it does not affect them."
SHIPLEY goes on to tell of his trip to
Gronouski's office to complain of the cut in
rural service.
"When I drove down to the Department, I
pulled in front of the building which has
a long drive about 500 feet long. This drive
was filled to capacity with limousines and
Cadillac& equipped with telephones and
chauffeurs. But to the Postmaster General it
is not a waste of money when you invest it
in Cadillacs and limousines which are for the
Department executives to travel around
Washington and the country at taxpayers'
expense.
"There is a limousine for the Postmaster
General, one medium sedan for the Deputy
Postmaster General and three medium and
six light sedans for the various other postal
executives. These are just for traveling
around the District of Columbia. Nor was
it a waste of funds for the Postmaster Gen-
eral to have ankle deep, plush carpeting and
a reclining lounge chair in his office.
"The Department administrative staff in
Washington numbers 1,498 and they have re-
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A4832 CONGRESSIONAL RECORD ? APPENDIX August 26, 1965
quested 286 new employees for fiscal year
1960.
"The Postmaster General wants to cut
down on the little rural route jobs which pay
about $4,000 to $5,000 a year, but he certainly
doesn't think it is Wasteful when he requests
266 additional employees for his office. I
can't figure out how he thinks he is saving
the taxpayers money When he takes em-
ployees out of the rural areas and surrounds
himself with new employees in the District
of Columbia, where there are far too many
employees already. If cuts are to be made,
they should be made in Washington and not
in rural areas.
"There would be snore economy in Gov-
ernment if people in Washington, such as
the Postmaster General, would do away with
air-conditioned Cadillacs, chauffeurs, tele-
phones in cars, red carts and lounge chairs.
Frankly, they could do away with a chauf-
feured Cadillac and there would be a lot less
Cost to the taxpayers than doing away with
a rural route that we need. The air-condi-
tioned, chauffeured limousines are not essen -
tial but the rural routes of America are
SHIPLEY and Gronouski are both Demo -
errata.
The above concludes the portion quoted
from the Nixie. We in the State of Nebraska
and local 11 are well aware of the waste in
regional and top departmental offices. Re-
cently four or five top Wichita regional offi-
cials Canth to Omaha to present the curtail-
nient proposal to local 11 peciple. Then sev-
eral Weeks later a three- or four -Man delega -
ten from Wichita traveled the State of Ne-
braska telling the different communities
about the Sectional center concept Accord-
ing to one Federationist in an outside town
nothing was mentioned about the removal of
RPO cars from the trains. My question is
how Much did the per diem and travel cost
these men.' The total savings for the Depart-
ment in the proposal was less than $2,500.
Teen Pickle Pickers Fail as Bracero
Replacements
.EXTENSION OF REMARKS
HON. ELFORD A. CEDERBERG
F` MICHIGAN
nq Tim HOUSE OF REPRE$ENTATIVES
Thursday, August 26, 1965
Mr. CEDERBERG. Mr. Speaker,
many self-styled experts on farm labor
have belittled and scoffed at the earnest
pleas of Michigan cucumber farmers
for help in harvesting the 1965 crop.
The Johnson administration even se-
lected this crop for one of its Great So-
ciety experiments by establishing the
A-team program, the letters of another
alphabetical creation meaning "athletes
in, temporary employment as agricul-
tural manpower."
Today, cucumbers are rotting in the
fields or are becoming so large they are
no longer suitable for packing.
The Detroit Free Press sent one of
its able writers into the Michigan cu-
cumber growing areas for a firsthand re-
port on the situation. The writer, John
L. Dotson, Jr., has presented a very
graphic picture of what is happening to
the cucumber harvest.
His article, which appeared in the
Free Press under the heading "Teen
_Pickle Pickers Fail as Bracero Replace-
ments" follows:
TEEN PICKLE PICKERS PAIL AS BRACER?
REPLACEMENTS
(By John L. Dotson, Jr.)
sixteen-year-old Stan Snaffle admits now
that he didn't know what he was getting
Into.
He signed up as a pickle picker on a Sagi-
naw area farm one day last week and found
himself bent into one of the most excruciat-
ing positions he'd ever known.
"Backbreaking," he grimaced. "It was just
backbreaking."
But, it was the first job he had ever had
and he wasn't going to let it whip him.
Stan showed up again the next day with his
bagful of sandwiches and a canteen of cold
water, ready to do battle with the sun and
the hidden fruits on the 12-inch high vines.
Brazille, a Saginaw High School senior, and
most of the boys around him had no idea
why their services were in such great demand
this year. Or of the controversy that sur-
rounded their employment.
They were the domestic replacements for
the Mexican braceros, the hard-working la-
borers whose annual trek to the Michigan
pickle fields had been banned by Congress
this year.
But, the question was, were they adequate
replacements? Even if they learned how,
would Brazille and the others stay at the job
long enough to complete the harvest?
That first day, they had worked 6 hours.
They expected to put in a full day and see
what it's really like the second day. The
field man in. charge had showed the boys how
to do the job the first morning.
Bend over, with your legs straight and
about 3 feet apart, straddling the row of
cucumber plants. Roll back the vine on One
side and pick all the cumumbers longer than
your thumb. Then, roll back the other side
and do the same.
Over and over again, it was roll, pick, roll,
pick, step, roll, pick, roll pick, step, through
with one row, there was another to begin.
The field man in charge Made sure there was
never an idle moment.
There aren't enough pickers in the pickle
fields this year' to have one able bodied, will-
ing soul waste a minute.
At latest count, there was a shortage of
1,000 pickers at the peak of the crop, accord-
ing to a survey by the Michigan Employment
Security Commission, growers and processers
claim that figure is far short of the actual
need.
Saginaw Valley and Thumb area farmers
are feeling the pinch the hardest. They had
employed nearly 6,000 of the 13,800 Mexicans
that: had been imported for the harvest in
1964. This year they had cut back their
planting by nearly a third, figuring they
could get at least 4,000 domestic laborers
through an intensive recruitment program.
They failed.
The result is hurting every cucumber farm-
er just as badly as the extended drought,
which was the worst they had seen in nearly
30 years.
"That's a truckload of garbage I've got,"
said farmer Hank Keytylo, as he backed the
latest harvest from his 20-acre cucumber
patch into the receiving dock at the H. W.
Madison Co. in Pinconning.
"I'll get $50 for the whole truckload," he
griped. "Any other year, I'd get $150 for a
truckload.
The trouble was that Keytylo's cucumbers,
like most others in the valley, had been
allowed to grow too large. And, large pickles
are what a processor can do best without.
Pickle cucumbers, unlike the long, green
table variety, are short, stubby fruits?the
smaller the better for processing.
"I can't go on growing pickles at that rate,
Keytylo said. Neither can other farmers.
Unless something is done, they say,,Michi-
gan can forget about the title of King Pickle.
The growers had warned Congress and the
rest of the agencies involved in the elimina-
tion of the bracero program that Americans
iiist wouldn't pick pickles the way Mexicans
did.
"The Latins are built for the job," said
one farmer. "They're used to stooping in
the fields all day and they're used to the
heat. You can't get Americans to do the
same thing."
"Poppycock," say Government labor ofd-
cials. "That's just the impression that the
growers would like everyone to get so that
next year they can cry again to Congress for
the return of braceros," one aid said.
The growers tried right up to planting
time in May to get Secretary of Labor W.
Willard Wirtz to approve the importation of
Mexicans for the Michigan fields. One com-
mittee recommended 5,000 for the harvest,
but Wirtz was adamant.
The pickle farmers are the only ones in
Michigan who miss the braceros because they
are the only ones who used them. Every
other crop in the State was picked by domes-
tic laborers last year, except some truck
crops, for which a handful of braceros was
kept on.
There, are several reaso:as Michigan farm-
ers miss their braceros.
The Mexicans lived in migrant camps near
the pickle fields and worked according to
the cucumber growth. When the pickles
grew fast, they worked longer hours and got
through the fields more times. That meant
money in the farmer's pocket.
For this, the Mexicans got a dollar an
hour, a healthy wage by their standards.
The rate of exchange gave them 12 pesos at
the border, which bought a great deal more
food and clothing in Mexico than it would
here. That meant less money out of the
farmer's pocket.
This year, cucumber growers are paying
$1.25 an hour to anyone over 16 years old
and 95 cents an hour to younger pickers.
To replace the braceros, most pickle grow-
ers associations headed into Texas to line up
friends and relatives of the few Mexican-
American families that bad traveled to the
pickle fields with the braceros in other years.
Some, like the Croswell Pickle Growers
Association, Inc., which supplies cucumbers
for Aunt Jane's Foods, hired former migrant
crew leaders to scour the Texas villages dur-
ing the winter.
Erasmo (Eddie) Contreras, whose home is
in Alamo, Tex., recruited more than 900 in
the Rio Grande- Valley to fill the shoes of
the 1,290 braceros the Croswell growers had
used the year before. The firm added an-
other 500 local laborers to the force to make
up the difference.
Just to make sure there'd be no waste in
the cucumber fields, Field Manager Russell
Horn said, Croswell Ordered only 1,400 acres
Planted this year, a 47-percent reduction
from last year.
"We're not short now, but maybe in the
next 10 days we will be," Horn said.
It all depends on the weather. If there
are warm nights and plenty of rain, the cu-
cumbers may grow too large for pickling be-
fore they can be picked.
As it is this year, there are gangs of over-
ripe, Pumpkin-yellow cucumbers lying in
the rows between the vines.
Vlasic Foods Co., a Detroit-based firm, put
up a $20?000 deposit with a private Texas
recruiting agency for 2,000 field hands for
the 6-week pickle harvest. Only 500_ showed
up.
It caught Viasic off guard. The year be-
fore, it and Crown Pickle Co., which Vlasic
acquired during the winter, employed 2,000
braceros. It was too much to make up.
"We had hoped earlier that we'd get 60
percent of the crop," a spokesman said.
"But, now it looks as though we'll only get
40 percent.
"We gambled and we lost."
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August 26, 1965 CONGRESSIONAL RECORD HOUSE
IteStified befOre the mint COMMittea to which a Standing committee is entitled,
in the following WOltIS: be established. It would be a committee
of our peers equally divided in membership
We in the Congress often lose sight of our between the two parties.. This committee
would meet regularly, discuss all relevant
questions, and hear grievances filed against
Members of Congress. This committee
would also provide a much needed source
for Congressmen to consult when an au-
thoritative opinion on a question of ethics
is required.
Sniping by political opportunists who use
inuendo and smear to besmirch the char-
acters of Members of Congress will, under
this proposal, be put to the strictest of tests.
The complaint charge will not be tried on
the streets or in the newspapers or in the
political clubhouses of the district in ques-
tion. The conduct of the accused ,Member
of Congress will be evaluated and a- dee ion
rendered by a group of his own peers who
could be more exacting and more severe tha
any other body which could possibly b? ^ -
sernbled for that purpose.
The present code does not provide for a fair
and impartial hearing of ethical questions.
Each Member of Congress should be entitled
In objective hearing into the proprieties of
his or her conduct. This Committee of
Ethics which I propose would enhance the
public's respect for the Congress and its
Members. Equally important, I feel, is the
revision and the updating of the remnations
governing the earning of outside income by
Congressmen. The incomplete and gen-
eralized grouping of regulations does not
permit anyone, and that includes Members
of Congress and the public, to reasonably
determine the prOpriety of a Congressman's
actions in private business or financial affairs
which would involve his position as a rep-
resentative of the people.
En light of last year's Supreme Court de-
cisions ' in the cases of the New York Times
Company v. Sullivan and Garrison v. Lou-
isiana which hold, in effect, that public offi-
cials are subject to open criticism and even
slander and that such statements made
against public officials shall be considered a
part of the liability assumed when the office
was sought. Such a Committee on Ethics
Is made even more necessary. Little satis-
faction may be made through a long, drawn-
out contest in the courts: The charge will
remain in the people's minds long after any
judicial exoneration might be extended.
House Concurrent Resolution 260,2 intro-
duced by Mr. RIIDISFELD, provides for a re-
vamping of our ethics code, and, in my opin-
ion. Is a good bill. However, even it does
not make provisions for a permanent con-
sultative body, as I feel is necessary.
The Fair Campaign Practices Committee ,
exercises a certain amount of beneficial in-
fluence in determining campaign practices
cm all levels of government in an States, but
the existence of this body and its effective-
ness, as demonstrated In the past by ferret-
ing out and exposing unfair political tech-
niques and practices does not mean that we
may abdicate our responsibility to them.
The hearings held on December 17, 1964,
relative to an article in Pageant magazine
responsibility for the perfection of our de-
mocracy and the increased strength of our
representative form of governinent. We
sometimes fail to recognize that this per-
fection lies in the strength of our determi-
nation and willingness to regularly examine
our Congress, its practices, and its achieve-
ments,
Those who drafted our Constitution in
Philadelphia almost 180 years ago were Vase
in providing that each body should estab-
lish its own rules, and determine the quali-
fications of its own members. They knew
that the Constitution could not specify a
permanent code of rules or behavior for
either the House of :Representatives or the
Senate. They realized perhaps better than
we do today that both of these bodies must
be constantly involved in perfecting and
changing their mode of operation to insure
represehtation which would be neither out-
dated nor perfunctory.
They gave to us, the Members of the 89th
Congress, as they gave to the Members of
each Congress preceding us and every one
that will follow, the responsibility for clean-
ing our own house and maintaining the
principles which they so highly valued.
It was for these reasons that on January 4
of this year, I stibmitted H.R. 1193 to estab-
l.sh a Commission on the Organization of
Congress. This commission was to have
studied the operations of the Congress Much
as this Joint Committee is doing here today.
I am most appreciative of this opportunity
to come before you to discuss with you some
ways in which T feel Congress may be im-
proved.
Citizens today have a massive distrust of
men in public life. The misconceptions in-
volving men holding elective office extend
even to a general assumption on the part of
the public that every man in public life has
one time or another used his position for
personal gain, pecuniary or otherwise. In
the popular mind, the question is not even
debatable.
This is a regrettable circumstance of
present day participation in public life.
Claims need no substantiation, they need
no background, they do not even require a
basis in fact. They need merely to be stated
and promulgated to be believed.
What most people do not realize, even
though it is comparatively simple, is that
men holding public positions must be even
more careful than any businessman or
worker not to involve himself in any situa-
tion which could possibly compromise his
oath of office or make him a culpable tar-
get of corruption charges. People do not
seem to realize or understand the scrutiny
which every man in public life Must endure.
His every action, public or private, is open
to the examination of those he represents.
Suspect behavior on the part of a man hold-
ing public office is immediately noticed and
criticized by the citizens who elected him.
livery action is carefully scrutinized by his
political opponents. It would be a difficult
thing indeed for a man in public life, es-
pecially a Congressman, to escape discovery
of any corrupt or other reprehensible be-
havior of his.
Our code of ethics in the Congress is one
to which Many persons in private industry
could not truthfully say they subscribe to
in their business dealings. However, our
code has one great failing: While it is there
for reference by Members of 'Congress, it
does not provide for any source which could
advise a Congressman on specific questions
of ethics or conduct.
Therefore, it would be my suggestion that
a standing committee of the House of Rep-
resentatives, to be known as the Committee
on Ethics, with all the rights and privileges
The New York Times Company v. Sulli-
van, 876 U.S. 254, Docket No. 89, cited Mar. 9,
1964. Also, Garrison v. Louisiana, 379 U.S.
64, Docket No. 4, Nov. 23, 1964.
11. Con. Res. 260, 89th Cong., 1st seas.;
Introduced on Feb. 8, 1966 by Representa-
tive DONALD RTYMSFELD of Illinois; referred
to the Committee on Rules.
The Pair Campaign Practices Committee
(PCPC) is a privately supported educational
organization located in New York City. Bi-
partisan and nonprofit by specific intent, it
was established in 1954, and includes the fol-
lowing men as members of Its board of di-
rectors: Charles P. Taft, of Cincinnati, chair-
man; James A. Parley' Steve Mitchell, Len
Hall, and Mead Alcorn.
211.51
referring to certain Members of Congress
held before the Special Committee to In- -
vestigate Campaign Expenditures in the
House of Representatives is ample evidence
that there is indeed a need for such a com-
mittee. I hope that this joint committee
will look favorably upon my suggestion.
Another area which I believe demands our
attention is that of constituent relations.
It has been suggested by some of my col-
leagues that congressional responsibilities in.
the area of constituent caseWerk be trans-
ferred from the respective offices of the Mem-
bers of Congress to a central clearinghouse
which would expedite those matters to which
the letters refer.
The critics of the present system of indi-
vidual Member responsibility for his con-
stituents' problems point out that if these
heavy and often tedious responsibilities
were shifted to a special OffiCe which would
devote all its time to such matters, Congress-
men would have more time to spend on
legislative affairs and other matters related
to the deliberative nature of the Congress.
These critics claim that a Congressman is
hot a social. worker, nor is he a ward boss
seeking favors for his supporters, nor is he
responsible for the crabgrass, arthritis, and
selective service difficulties among his con-
stituents. But I fear these men miss the
point, for if the Congressman is not responsi-
ble for the well-being and comfort of those
who live within his district then whet is he
responsible for? During this 89th Congress
we are no longer even responsible for legis-
lation. That job has been transferred to the
Executive Office Building on Pennsylvania
Avenue.
In Norway, a system of centralized case-
work for the members of the legislature, as
has been suggested before this committee
and by other critics of the present arrange-
ment, has apparently worked well. For each
member of the Norwegian parliament, the
Storling, a caseworker, or Onbudsmann is
appointeda But the drawbacks of this sys-
tem if transplanted in the United States
would soon become apparent. The Onbuds-
mann would be merely one bureaucrat deal-
ing with another. He would be only another
officeworker, would hold no mandate from
anybody, and would have none of the prestige
or other influence of a Member of Congress.
It would just be adding another process into
the already overgrown collection of bureaus,
agencies, departments, boards, committees,
authorities, and other offices. Besides elimi-
nating substantial portion of the personal
contact between a Congressmen and his con-
stituents, and thereby damaging the Con-
gressman's ability to accurately represent
them, it would subject the petitioning con-
stituent to .an even longer and more annoy-
ing wait for satisfaction of his request or
complaint.
I feel that the present procedure for han-
dling congressional inquires iE both desirable
and efficient. I believe it should be main-
tained.
Another area which has attracted my
attention for the last 21/2 years is that of the
lack of automation in the operation of Gov-
ernment. It appears to be the popular con-
ception even among the members of Con-
gress that computers and cybernetic systems
are for use only ,in science and technology.
However, Mr. Chairman and members of the
committee I submit that we are missing a
great opportunity in not adapting new tech-
niques of automation to the needs of Gov-
ernment.
To be sure, there has been, some progress
made in certain limited areas, but there has
not been a comprehensive program to better
utilize better programs in ,oybernetics for
the improvement of governmental opera-
Created by H. Has. 795, on July 2, 1964.
2information provided by the Norwegian
Consulate, New York City, N.Y.
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21152 CONGRESSIONAL ItttoRD HOUSt August 26, 1965
tions and we have lagged too long: Not long
ago we saw the first completely automated
post office go into operation but with a dis-
appointing lack of success. We must im-
prove.
While there are still some duties which
cannot be delegated to a machine, there are
certainly many others of a routine nature
which could be more efficiently handled
through automated means. Reference work
in the Library of Congress would be one
area where a computerized research system
would be most helpful.
Data analysis now in use by the National
Aeronautics and Space Administration and
other agencies must be considered for use
In the business of Congress and its investiga-
tive functions. Committees could make great
use of such analysis systems, and I would
urge that an investigation of possible areas
for use of modern computer methods be
commenced.
A prime area for involvement of computer-
ized administration would be the myriad and
varied accounting systems employed by Gov-
ernment agencies and departments in regard
to financial grants. I was advised by Joseph
Campbell, Comptroller General of the United
States, in a letter dated May 11, 1965, that
there is no standard auditing procedure for
all of the governmental units involved in
dispensing money for research.
For example, the Atomic Energy Commis-
sion and the Federal Aviation Agency use
research contracts but not direct grants,
while the Departments of Agriculture and
the Interior use direct grants, contracts, and
cooperative agreements for research. At the
same time, the Departments of Defense and
Health, Education, and Welfare, the National
Aeronautics and Space Adirdnistration, Na-
tional Science Foundation, and Arms Con-
trol and Disarmament Agency use contracts
and grants for research. However, there is
no single policy which deternlines which re-
search arrangements shall be audited, and
which not.
While Comptroller General Campbell as-
sures me that the "general policies and prac-
tices of the agencies in regard to the audit
of their activities are for the most part under
continuous review by us as an integral part
of our accounting, auditing, and investigative
functions," I cannot help but wonder why
a uniform procedure in auditing all grants-
in-aid, research contracts, and cooperative
agreements is not instituted. There is no
consistent treatment of these matters.
Witness, the Departments of Agriculture,
Interior, and Health, Education, and Wel-
fare have certain agencies and bureaus which
do not require regular audits of research
activities?that is, grants, contracts, and
other agreements?on not even a selective
review basis. Certain cooperative agreements
for research entered into by the Agricultural
Research Service, Forest Service, Economic
Research Service, and Statistical Reporting
Service of the Department of Agriculture do
not contain auditing provisions. The De-
partment of Interior does not have any
departmentwide policy for auditing research
grants, and grants by the Office of Saline
Water Research are seldom audited.
It was not until June 1964 that cooperative
research grants made by the Bureau of Land
Management to State agricultural experiment
stations included provisions for auditing the
cooperators' procedures. The Bureau of
Reclamation has never made an audit of a
research contract, and research contracts
entered into by the Welfare Administration
and the Vocational Rehabilitation Adminis-
tration of the Department of Health, Educa-
tion, and Welfare are not audited at all, save
for some desk reviews in the Division of
Internal Audit.
Audits are not made of Welfare Adminis-
tration grants to nonprofit organizations
such as hospitals, foundations, and educa-
tional institutions, the only exceptions be-
ing those grants by the Office of Juvenile
Delinquency and Youth Crime which are
audited by the Grants Audit Section of the
National Institutes of Health, or the Divi-
sion of Grants and Aid Audits in the office
of the Secretaxy?
? Further, tlie National Science Foundation
is now in' the process of phasing in an audit
process by which Foundation grants awarded
to educational institutions will be audited
by the institution itself. Only a periodic
review by the foundations will be made to
determine the reliability of the institutions'
audits.
This inexact and unsure plethora of pro-
cedures and counterprocedures, if investi-
gated, will prove to be responsible for a great
deal of waste. Periodic computer review by
the appropriate congressional committees of
all Federal grants and aid research contracts
and cooperative agreements, I feel, would
be the best solution for this problem. In
addition, the formulation of a uniform ac-
counting and auditing procedure should be
required.
In relating the above-mentioned incidents
of erratic auditing practices, I have used
the language of the Comptroller General of
the United States as he replied to my in-
quiries extensively. These are not the par-
tisan figments of a Republican imagination
but rather a palpable danger to whatever
basis in fiscal security we have left in our
Government.
Chairman MONRONEY, Chairman MADDEN,
members of the Joint Committee, I want to
thank you for this opportunity to come
before you this morning. You have been
very patient in listening to me and I thank
you for your attention. I shall look forward
with the greatest of interest and place the
highest value on the report of this com-
mittee. If members of the committee have
any questions which they would like to put
to me at this time I would be more than
happy to do my best to answer them.
The SPEAKER. Under previous order
of the House, the gentleman from Ohio
[Mr. FEIGHAN] is recognized for 60 min-
utes.
[Mr. FEIGHAN addressed the House.
His remarks will a ear her after in the
Appendix.
TOWARD VIETWAM TALKS
(Mr. LOVE was granted permission to
extend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
Mr. LOVE. Mr. Speaker, during last
year's presidential campaign, President
Johnson several times characterized his
administration's search for peace in this
way:
Our guard is up?but our hand of friend-
ship is out.
Recently, the President has said of
his policy in Vietnam that he is using
the distinguished Secretary of Defense,
Mr. McNamara, and the Joint Chiefs of
Staff as a "strong right arm" to keep the
United States presence in Vietnam strong
and impossible to defeat. On the other
hand, the President says he is using Sec-
retary Rusk and Ambassador Goldberg
as a counterbalancing arm?charged
with getting us out of Vietnam honor-
'ably through negotiations which will
lead to peace and freedom for the em-
battled people of South Vietnam.
I think this makes sense. I congratu-
late the President for his strong efforts
on both fronts?the tragic and necessary
war front and the uncertain but promis-
ing peace front.
I should like to offer for entry in the
RECORD an excellent editorial from the
New York Times of Wednesday, August
25 entitled, "Toward Vietnam Talks."
This highly interesting analysis sheds
light on our effort in Vietnam. An effort
directed toward military success, but also
toward liberty and a durable peace.
[From the New York Times, Wed., August 25,
1965]
TOWARD VIETNAM TALKS
The Johnson administration has followed
the military success on Van Thong Peninsula
with a convincing demonstration of its desire
for early negotiation of a Vietnamese settle-
ment.
Secretary Rusk, Ambassador Goldberg and
McGeorge Bundy, in their hour-long CBS
television interview Monday night, made it
clear that the Marines' extraordinary combat
feat has not revived old Washington dreams
of military victory. On the contrary, the
entire tone of the discussion underscored
Mr. Bundy's assertion "that now is a good
time to negotiate."
In substance, what President Johnson's
top advisers had to say was new only in
bringing together many of the bits and
pieces of American policy that have emerged
gradually since President Johnson's April
offer of "unconditional discussions." But
that very process clarified the opening posi-
tion the United States is taking in informal
peace contacts and showed how far Wash-
ington has moved in its readiness to facili-
tate peace talks.
Washington and Hanoi seem to be within
negotiating distance of each other now ex-
cept on two significant points: Hanoi's in-
sistance that the Vietcong represent South
Vietnam at the conference table and that
Saigon be excluded; and Hanoi's demand for
a coalition government in South Vietnam
with Communist participation, if not domi-
nance. On the first, Washington proposes
that Saigon represent South Vietnam and
that the Vietcong sit in Hanoi's delegation.
On the second, the United States has coun-
tered with the challenge of free elections to
choose a South Vietnamese Government.
Ways undoubtedly can be found to nar-
row these differences once Hanoi decides,
as Washington clearly has, that it too wants
a negotiated settlement. The real question
is whether the Van Tuong battle has moved
Hanoi in this direction.
THE GREAT PUBLIC SERVICE OF
W. AVERELL HARRIMAN
(Mr. JOELSON (at the requdst of Mr.
Lovx) was granted permission to extend
his remarks at this point in the RECORD
and to include extraneous matter.)
Mr. JOELSON. Mr. Speaker, I want
to take the opportunity of saying just a
few words about Averell Harriman,
whom I consider one of the most valuable
public servants of our times. His
modesty and unassuming manner some-
time obscure the great importance of his
contribution to the national interest of
the United States.
Recently I attended a luncheon at
which he briefed some Members of Con-
gress, and I was tremendously impressed
by him combination of idealism and
imagination on the one hand and the
tough practicality and realism on the
other hand.
At a time in his life when many men
would be staying by the fireside, Averell
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the Kies from May 1 to 5. 1966, that is, (Mini MIKA Of the Senate to, the: bat
UN).
going oarresporids to the terms at its In-
structions contained in the reeoliniern of
May 1. 11165, at the lesetMe of Consultation.
especially with Whittle etated in penteraph
concerning Abe eseeinfirs, and the content
of lienigraph 4, which Metes: 1The Tenth
Idestime of nonsultationq uests the
Ase?agovernesses:its and the Secretary
General of the Organisation cd American
States to extend their full connontIon in
order to facilitate the work of the
Oocamittee.' "
Atter the Act ot Santo Domingo was
segued, by which the cease-Are of April 30.
1905, wee ratified and amplified, the Special
Ctiminittee min to the Ambassador of the
United. Mines in the Dosninicein Republic a
note In which it exprimily requested the ors-
operanon ot the Government of that country
in applying the stipulations at that docu-
inent The note from the Special Committee
and the reply from the Secretary of State,
Mr. Dean Runt, are transcribed below:
"Sanyo Doeniwoo,
"May S. 1985.
"The Honorable W. Tarim Reerrarr.
'Ambessador of the United States of Ameri-
ca to the Domtisiosa Republic, Santo Do-
mingo de Gunman, Dosensiossi Repubiie.
"Seat I have the honor to transmit to you.
Sir. under Instructional of the Special Oons-
[tattoo of the Tenth Meeting of Consona-
nces of Ministate of Foreign Affairs of the
American States, a ?Gentled espy of the Mt
at Santo Domingo aimed today by the parties
who entitle themselves, respectively,
Anita of Government' and *Constitutional
Government'
"As Item 4 ot the rentution of May 1.
1965, of the Tenth Meeting of Coneultation
'requests the American Governments to ex-
tend their full cooperation in order to fa-
enlist* the work of the Cionamittee; LIM*
Committee hopes that your Government will
cooperate with It in observing the stipula-
tions of the Act of Santo Domingo
"Accept, Sir, the renewed assurances. of
my highest consideranon."
litsceeso M. Cotastaci.
-Repreamtative of Argentina.
Chairmen of the Committee."
WaaatINOTON.
May 7, 1985.
? Itecellerary Da. Itscasum V. Comnsno.
Repreteesietive of Argentina on the Oonn-
eti the Orpenteation of Americo*
States.
itimeamicy; I have been advised by the
United States Ambassador to the Dominican
Repoli/1c of Tour Excellency's coniratuilaa-
non to him of May 5, transmitting e certified
espy of the "Act of Santo nominee" and ex-
pressing the hope that the Vatted States
Cimernmene will cooperate in its ebservanbe.
Muss the Comesission has now returned to
Washington. I sun taking the liberty of re-
plying directly to you.
I have the honor to expellee my Govern-
ment's gratitude for and support at the work
of the Commission In Santo Domingo. The
United States will ecoperste fully in. the ob-
servance at the provisions of the Act ef
Santo pludnito. I do not have before me
the amp attached to the Mean Santo Do-
but I Assume that the boundaries at
the, Want Intety ,74.061 +MOM* with
tliAt theit PM 11nm ersig
agft DOW is itiOvtartiteritist?.
'ageopt. Inserrearcy; Via,' linswed sorer-
ands Of rar 100111104141.*Uoa.
- Ina* Itusar. ,
? Tiralleerstary f otott.
: nt. :isorrerxessuisai arentenCkuctimemeire
In ,preientliii this report to the Teat%
Meeting of Consultation at Ministers of
Foreign Maim. the Special Consanttes has
Mitred only to glee an amount at It. softie-
the visit to the city of Santo Domingo.
The Special Committee _achieved, wider
truly dramatic circumstanees. the main ob-
Motives?see birth in the ? previa:putty 'MM.
noised resolution 'with respect to emee-ON.
%tie orderly evacuaelan of peniens who Mee
.taken asylum Jan regent and eresaintarsia
easistance to the Datainieen peeps wiener*
any disttnction aa to parties or aciellesieng
factions. 'The Special " Committes the
achieved the demareatiou of a safety sans
in the city of Sarno nominee is seeardssies
with the map eteetany drawn up by its
military advisers. This map wee trans-
mined to both parties, and the arielnal is
at the disposal at the Tenth limns" of
Consultation.
As the representatives will note, the Act
of Santo Domingo and the results thus tar
obtained by the Special Committee eon-
Istituto the first stage of a proems of restor-
ing pesos and normality in the Dominican
Republic, which requires the Inter-Asnericen
System to take several Maps toward eon-
ealidation.
Among the measures we believe could be
adopted at once by *he 10th Meeting of Con-
sultation, we suggest the following:
1. Designation of a permanent technical
military group in the city of Santo Domingo
to supervise the cense-ere and other meas-
ures agreed upon by the parties in the Act
of Santo Domingo.
3. Designation at another qualified group
to organise humanitarian aid to the Daman-
Mau people and evaluation of the most urgent
needs with regard to food, medicine, and hos-
pital equipment.
S. Study and planning of the Inter-Amer-
teen Force created by the Resolution or
May 6, 1985. of the 10th Meeting of Comm/te-
non In order to assure it the best conditions
of operation and efeciency.
a To empower the Special Commission to
establith mordination among all these ele-
ments and activities In the Dominican Re-
public in order to attain the goals set forth
in the reeolutiorui approved by the 10th Meet-
of Consultation.
Waturnoroin D.C., Mae 7, 1345.
Menke? M. Cowman
Ambassador of Arpmensa. Chairmen.
Ltum Parma 11..annuo.
Aabsaarter of 1re.0
&teem Vinson' Celismosn,
Ambassador of Colombia.
costa' oAsett
Ambassador of Guatemala_
nuirszaro Ca-Anna G.,
Ambassador 0/ Armless
ILEJZIAPTIONS PROM ANTITRUST
LAWS TO ASSIST IN SAFEGUARD-
11(0 THE BALANCE-OF-PAYMENTS
POSITION or THE UMTED STATES
The PRESIIHNO OFFICER (Mr.
KENNEDY of New York in the chair), laid
before the Senate the amendments of
the House of Representatives to the
amendment of the Senate to the Mil
MR.. 1280) in provide for exemptiona
from the antitrust laws to assist in safe-
ruinns the balance-of-payments posi-
tion let the Untiedires, Witch were.
on Pet ffe.. Ilait 4.. Athe Senate en-
aired sisiandstiisd. Vise "PeSilionts"
Insert "poultices", and an Page 3, Eh* It
of - the Seitatek siseresseti.:sintentiment.
'program" insert la taken until
after each voluntiorogreathent orluto-
Mr. MANSFEEIA "kr. President, I
move that the Senate concur in the
amendments a/ the Reese to the amend-
- The gepge was aimed to. "
. ;.
ViantLit WAR IMF
VIRTHAall: z
Vietnam *re Sou
Of th ,eilf
lir. JAVTIIS. 'MO Intatill them%
pie
as they should be el esti tieteneleahkm
to wage the leas visible war against Povb
erty and despair in that counirir., Oh-
fortunately much of the geed' Await of
ow- aid program?the baste ecienttrics?-
aurgenel effort and the otherIszoottent
emir on the political and *concede lev-
el?has been obscured and reiggelesd-
owed by the smokers: battle. ? -
I feel that we must 'mike ears that
the people of South Vietnam tbeiondeis
are aware of the fact that we are aside-
termined to aid in the ftsffnlesentUttIlis
social revolution for their benefit; all we
are to halt Vietrxmg military liateli=
slats; that we are determined not't0 12r
low the Communists to capture this rep=
elution, with their hYlloOrttittel And,
fraudulent espousal of its objectives, can
as a means of collaring a trusting pseple
into eternal slavery. ?: ?
We must underline once agefix -Our
determination to help the Peel* at
South Vietnam retain their indenasdr
61106, and also to make that independence
nleaningful. We must again and again
remind ourselves and the veirld that car
military efforts are not an end In-
selves, but only the means of Ittlyikui the
Vietnamese Monk to achieve tben.kertet
!mate aspirations.
. .
Pram reports out of: Waehinginerthe
Last few days indicate that there is an
"air of optimism" bi- official tallnidne
about the Vietnam situatiOn. The Ohl-
ing seems to be that the words of our
highest ?facials. the deeds of the MS:
and the other actions the UAL.
rine* on Chu Lai peninsula, ISO
a =
Forces have made it plain to the .Viet-
cong, and thedr North- Vietnamese and
Communist Chinese supporters that, me
are determined not to bow to 114311011110n.
This determination, so runs this line Of
thinking, may well compel the
Ocu-
ntiS side to actively explore the pomlblhlty
of negotiating peace.
Certainly I hope that these reports
are correct and that we are ekeer.:.49
ending the fighting in South !Vletesaa.
However, I feel that those who soros-
this sPtimism over the sittottien in Viet*
nam are failing to take into ftdl tate***
the less-visible war, the legittniatie MU)
and economic revolution. Ass 014.41.
of fact, to benellt from anymass gpas or
mom settIetrient. the-:
South Vietnam. working- wt .8L4irn
ettleaus, and with our . heath must aneo.
earrhsUy wage this war onsmileranie and
political inadequacies skid ;seam to
esearathe eciaddenee of falba Viedgiarn- .
ese wok ?. ?fra ?t t
` Thie medal reirCil
Pp.717.1',
Pertportant.Sly 6111
by pollees!
sought to turn this.
Into the cutting edge of their earn star
against the people of South rifteessa.
The highest officials of our Government
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have made plain our determination to aid
the legitimate economic and social aspi-
rations of the South Vietnamese people.
Certainly, this determination has been
underlined by the many-times valiant
efforts of the 998 civilian emPloyees of
the Agency for International Develop-
ment in that country; 6 of them have
been killed since 1960, 3 others have been
kidnapped, and 12 wounded. But by the
exigencies compelled upon us, we got a
late start in helping the South Vietnam-
ese to mount a counterinsurgency effort
to bring direct, practical aid to the peo-
ple of the countryside, and despite many
Imaginative and practical programs, our
response to this challenge has not yet
been effective enough. There are many
valid reasons why this is so, but reasons
cannot get done the job that Must be
done; only effective action can accom-
plish it.
The maximum effective response to
this social revolution is also required by
the situation in all of southeast -Asia.
Our Government admits that the firm-
ness of our determination to meet the
military challenges in South Vietnam is
designed, in part, to prove to the world
that the United States meets its commit-
ments. But our determination to wage
effective battle at the economic, social
and political levels to help the people
of that nation is similarly necessary to
prove to Asians and others that we are a
Nation truly committed to helping other
nations to become self-sufficient and
capable a mastering their own destiny,
free from outside interference?includ-
ing ours, and that we understand their
aspirations for independence.
This should be the significance of Am-
bassador Lodge's acceptance of the
cruelly trying post of Ambassador to
South Vietnam. It is the significance of
his appointment of retired Maj. Gen.
Edward G. Lansdale as his special as-
sistant. In past actions and comments,
both of these outstanding men have
shown that they know the importance
of the economic and political levels in
fighting insurgency. These appoint-
ments are to be highly praised, and it is
my hope that they signal a new emphasis
on providing answers, as far as possible,
to the basic discontent in Vietnam.
For the reasons that I have stated, I
have taken a close look at the U.S. eco-
nomic development and counterinsur-
gency efforts in South Vietnam. I have
found much which is highly commend-
able. However, further inadequacies
need correction. I have found that we
and our South Vietnamese allies are suc-
cessfully solving many of the age old
problems of that nation, without fanfare.
For example, about 80 percent of the
countryside has been freed from the
threat of malarial infestation-80 per-
cent is a very important and impressive
figure?and more than 9 million people
have been vaccinated against cholera in
joint United States-South Vietnamese
effort. We have helped to build 4,000
classrooms in the last 26 months, have
aided in the construction and the stock-
ing of 12,000 hamlet health centers, and
have trained the teachers and the health
workers to man them.
Of course, it is clear that the South
Vietnamese people, through their duly
constituted government, must carry on
these programs. We can only help; we
cannot stand in their place, lest we ac-
tually become guilty of the false charge
of "imperialism" now hurled at us by
the Communists. Accordingly, we must
take the South Vietnamese Government
as we find it, and do our best as advisers
and friends to bring about stable and
effective government without seeking to
substitute ourselves as a government or
to become political manipulators. This
Is one of the built-in limitations to what
we can do in South Vietnam, and it is
just as well for the American, as well as
the Vietnamese people, to know it.
But even within this present context,
I believe there is much more we can do
that urgently needs to be done. I
recommend:
First. That we materially expand the
funds and the AID personnel available
to carry out the counterinsurgency pro-
gram which is designed to meet the im-
mediate and most pressing needs of the
people. In the 1965 fiscal year, for ex-
ample, we earmarked $65.8 million for
this critical program, as compared to
$330 million under the military assist-
ance program and $217 million for all
other AID programs, including long-
range economic development and the
necessary commercial import program
designed to maintain the stability of the
South Vietnamese economic system.
Together? this represents about half of
the cost of our operation in Vietnam,
which is running now at well over $1
billion a year. The three figures that I
have mentioned constitute about half a
billion dollars.
I have pointed out that, of that half a
billion dollars, only about 10 percent goes
for counterinsurgency and that we
should materially increase that amount.
Second. That we intensify and ex-
pand the refugee relief program in
South Vietnam. It is now estimated
that close to 600,000 refugees have been
forced from their homes and villages
since last January, largely because of an
apparent step up in Vietcong tactics of
terror. Whatever the reason, we have
been told in the Judiciary Subcommittee
on Refugees?presided over by the Sen-
ator from Massachusetts?that we can
expect them to arrive in greater num-
bers. This increased flow of refugees?
the most visible sign of the heartbreak
of war?could critically strain the re-
sources of the South Vietnamese Gov-
ernment and cause panic and grave civic
discontent.
The refugee program is very serious.
Certainly the refugee crisis is one area
where the U.S. Government, in coopera-
tion with South Vietnam, can provide
most effective aid, since nearly 500,000
of the 600,000 refugees are now located
in coastal north and north central South
Vietnam.
Third. There are several specific pro-
grams, already underway or planned by
AID and the Government of South Viet-
nam, that should be intensified and ex-
,panded.
(a) Urban housing: The influx of
21253
refugees into Saigon and the concentra-
tion of our aid efforts in the countryside
to meet the immediate threat of Vietcong
activity, has worsened living conditions
in Saigon and other major population
centers. A survey of low-income housing
needs in the Saigon area was sponsored
by AID and completed last January.
The Saigon government has now pro-
duced a slightly altered plan, and is con-
sidering a variety of types of construc-
tion aid offered by the United States. In
fact, however, only one, small Viet-
namese Government program, in Saigon,
is actually under construction. This
program should immediately be accel-
erated in the capital area, and should
be made available to other coastal cities.
(b) Development of the Port of Cam
Ranh Bay: Experts claim that this bay,
midway between Saigon and Da Nang is
the best natural harbor, next to Hong
Kong, on the coast of the Asian main-
land. It is now being developed as a
military harbor, and extensive plans
have been drawn for its eventual use as
an industrial-maritime center. However,
if this type of development for civilian
uses were accelerated, the new port of
Cam Ranh could be one of the wisest in-
vestments ever made in South Vietnam.
It would inspire pride in the heart of
every South Vietnamese citizen.
(c) Land reform: a positive and effec-
tive program of land reform is absolutely
necessary. Political and security prob-
lems have prevented implementation of
such a program, but the South Vietna-
mese Government has now announced
its intention to move in this direction.
This program must conform with the
views of the peasants, must be made
available to the tiller of the soil, and con-
tain provisions for the security of tenure
and for rents that are fair in relation to
the productivity of the land. Since this
program is considered to be crucial to the
attainment of our aims in South Viet-
nam, appeals for quick action should be
made to the Government of South Viet-
nam from the highest levels of our Gov-
ernment.
Certainly the refugee crisis is one area
where the U.S. Government, in coopera-
tion with the South Vietnamese, can
provide most effective aid. Since nearly
500,000 of the 600,000 refugees are now
concentrated in or near the coastal cities
in central and northern South Vietnam,
it would appear that we have also been
presented through the terror of war with
an opportunity to prove our concern and
intention to help the people themselves.
It has often been said that our aid efforts
have not really been effective because the
Vietcong control the land where the peo-
ple live; that they can undo with terror
what we have tried to do with agricul-
tural, educational and health programs.
But in the case of the refugees, they
have come to areas which are nominally
at least controlled by the Government.
They have come to our side, and we
should spare no effort to make sure that
while they are under our protection, they
are satisfactorily fed, clothed and housed
and that at least minimal health and
education needs are provided for.
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One suggestion on the refugee program
which was mentioned several time in
the Refugee Subcommittee hearings con-
cerned the more effective vise of the many
voluntary agencies now active in Viet-
nam. I wilrurge the subcommittee mem-
bers to suggest to the administration
that U.S. aircraft be used to transport
supplies and personnel, provided by the
U.S. voluntary agencies, from the United
States to Vietnam. In this way, fonds
now needed for transportation will be
freed for the direct benefit of the
refugees.
Running through this entire discussion
is the awareness of the central fact which
faces our AID mission at every turn;
namely, we can aid, we can advise, but
we cannot replace the Vietnamese them-
selves. ft is their country, their future,
their freedom, and their show.
If one of our principal objectives is to
strengthen the support of the people of
South Vietnam for their own Govern-
ment, it would be self-defeating to even
attempt to supplant South Vietnamese
cdlicials in administering the AID pro-
gram. I am convinced that there is
much impatience and frustration with
the administrative facilities now made
available to us.
But must not our impatience and frus-
tration be softened by the startling fact
that 603 Vietnamese Government civilian
officials have been killed in the perform-
ance of their duty since Jaunary 1, 1964.
Another 1,431 have been kidnapped by
the Vietcong. If this terror campaign
occurred in the United States in the
same intensity, it would mean that some
35,600 U.S. elected officials and civil
servants would be killed or kidnapped
the same period of time. This sheuld
give us some sober idea of the mortal
dangers faced by every conscientious
South Vietnamese Government official.
The fact is that this is, just one of the
grave difficult es facing the effective ex-
ectition of our vital aid and economicde-
velopirient program in South Vietnam.
We are forced by the pressure of events
to work in an atmosphere of war and ter-
ror in a nation of 16 million people who
have been at war virtually continuously
for the past quarter of a century. Is it
any wonder that the bulk, of the farmers
in the hamlets and villages of South
Vietnam are at best 3;leutral in the
struggle against the Vietcong, and at
worst hostile to the Smith Vietnamese
C4overnment and it American allies and
advisors?
This is the situation we face, and must
overcome. The fact is that it can only be
overcome by positive efforts on the pelit-
ical and economic levels, Our aid pro-
gram to South Vietnam ,is designed to
do this, and it is worthwhile pointing
out some of our aceomplishments in this
field.
Since 1954, the Government of South
Vietnam as received more than $2.1 Inl-
lien in economic aid under U.S. programs.
The bulk of these funds have been used
to Drotnote long-range economic devel-
derma and to provide the essential lin-
Pbrts required by the Vietnamese econ-
omy and necessary to maintain price
stability.
The remainder of AID funds have been
used to directly benefit the Vietnamese
people by increasing rural incomes and
by providing concrete social benefits,
such as schools, health clinics, and so
forth.
Many of these programs haye been
successful and are too little known in
this country. For example, a novel idea
to raise food production and living stand-
ards by providing each participant with
the use of American surplus corn, 3
pigs and 8 sacks of cement to con-
struct pigsties has already put 5,000
families in the pig-raising business. This
is no giveaway program. The farmers
take out 8-percent loans to buy one fe-
male breeder pig and two market pigs
and to pay for whatever local materials
they need to complete their concrete Pig-
sties. They buy the surplus corn_ on a
credit basis without interest from their
cooperatives, but are expected to repay
when they sell their first pigs. Repay-
ments have already started. All it costs
AID is the equivalent of about $6 per
farmer to pay for the concrete. So for
$30,000 we can improve materially the
conditions of 5,000 families.
Another program is designed to in-
crease crop yields through the distribu-
tion of fertilizer by direct grant and
through easy credit sales at subsidized
prices. In 1964, 23,000 metric tons were
granted, and another 77,000 metric tons
sold through the Vietnamese National
Agricultural Credit Organization and co-
operatives. These amounts are in addi-
tion to about 150,000 metric tons fi-
nanced under the commercial import
program for regular sale, making a quar-
ter znillion metric tons used in that
country.
There are other successful programs
designed to increase the yields of rice and
to introduce new agricultural products.
To take just two examples, Guatemalan
Golden Flint Corn and five improved
varieties of sweet potatoes have been suc-
cessfully introduced in South Vietnam.,
and plant protection and agricultural ex-
perimentation centers have been estab-
lished throughout most of the country.
One of the most impressive and pro-
ductive programs has been the technical
aid to fishermen. Production of fish
products increased from 52,000 million
ton in 1955 to 342,000 million tons in 1963
due to nylon nets, junk motorization and
new methods introduced by AID. This
project serves to overcome the dietary
protein deficiency and reduce the con-
sumer price of fish products in Vietnam.
Our AID, personnel are also involved
In many programs designed to provide
immediate social benefits to the people
of Vietnam. We have made impressive
gains in at least two areas, education and
health.
First, as to education:
In addition to the hamlet school con-
struction program mentioned earlier,
and the training of hamlet schoolteach-
ers and the distribution of textbooks, we
are helping to expand and to improve
long-established teacher-training and
vocational education programs. We have
provided the funds for the construction
of normal schools to train up to 2,100
elementary schoolteachers a year, a cen-
tral polytechnical school and three sec-
ondary level polytechnical schools in the
provinces. In addition, six other tech-
nical schools have been expanded and
reequipped. These ten technical schools
have a student capacity of 6,550. But
some of the most effective activity in the
education field has been in the area of
trade schools institutions which can pro-
vide the majority of Vietnamese youth
with the skills their nation so desperately
needs. For example, we have established
a system of 20 schools to provide practi-
cal training in such areas as woodwork-
ing, general mechanics, metal working,
forestry, irrigation practices, and the use
of basic agricultural implements to grad-
uates of the 5-year elementary school
Program. In addition to construction,
this project provides hand tools, labora-
tory equipment, teaching aids, and school
furniture. Construction of 17 additional
schools has been approved and 14 sites
selected. Enrollment in Vietnam's rural
trade schools totals over 7D0 students.
Second, as to health:
In the field of health, the hamlet
health station is designed to show the
people of South Vietnam that their gov-
ernment is concerned for their medical
needs and is trying to meet them. This
is probably the most dramatic part of a
complete health program which is trying
to improve standards at all levels.
This program includes funds for a new
medical college, nurses training courses,
and the retraining of hamlet health
officials; as well as vaccination and dis-
ease control projects, similar to the
highly successful malaria and cholera
control programs.
AID also supports a provincial hospital
development program designed to im-
prove the standards of patient care by
extending the capacity for surgical serv-
ices and improving the quality of medi-
cal and nursing services in selected hos-
pitals. Nearly 6,000 operations were
performed in 1964 under this program.
Sixteen hospitals have been or are being
renovated for the use of U.S. or other
free world surgical teams, and addition-
al surgical suites have been constructed
at several other sites for a total of 26 in
provincial hospitals. At present, surgi-
cal teams from the United States, New
Zealand, Philippines. Australia, Italy,
and Taiwan are operating in 11 different
locations.
The Netherlands has an advanced
party there now and South Korea has a
large military hospital there now.
Mr. President, I conclude as follows:
These then are some of the concrete
accomplishments of our AID program in
South Vietnam. We have already dis-
cussed some of the grave disadvantages
and limitations facing us in trying to
help the people of that beleaguered land.
But these difficulties should not dis-
suade us from endeavoring to muster the
spirit, resources, and imagination nec-
essary to win the support of the people by
showing, first, our concern, and then, the
tangible things that the free world can
do with their cooperation to improve
their own situation, far outshining any -
thing that the Communists can do.
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August 26, 1965 CONGRESSIONAL 'RECORD ? SENATE 21255
Let us always remember that the Viet- nedy?Years of Lightning, Day of murdered President and an eloquent
namese people are the same people who
fought with such spirit and so success-
fully in the name of freedom and inde-
pendence to oust the French colonial
administrators. Our job is to bring home
to them by the substance of what we do,
the contrast between our role and the
terror, the rapacious taxation, and the
cruel exploitation which the Vietcong are
trying to disguise under the label of "na-
tional liberation." We must make clear
that if the Vietcong are successful, South
Vietnam would be crushed as a nation,
the land of its farmers would be collec-
tivized, and the spirit of its people broken
as it would be in a prison or a garrison.
I am convinced that much can be ac-
"complished, and that it is an objective as
important to the United States as any
military victory.
Mr. President, I have spoken today in
order to emphasize to the American peo-
ple, to the people of South Vietnam, as
well as the people of all Asia, the con-
crete things which we have already done
in fighting a less visible but equally im-
portant war?the war on poverty, the
war on disease, the war on despair, the
, war on unjust land tenure, and the war
on other difficulties which have assailed
the people of Vietnam for centuries.
I feel that I speak for many millions of
Americans when we pledge to the people
of Vietnam that these are our real ob-
jectives, and that the miltary actions we
are taking in their country are only a
means by which these objectives may be
attained, so that we may prevent the
people of Vietnam from being sold into a
slavery from which they may never be
redeemed, and in which they will never
realize or attain the legitimate objectives
of their own revolution for which they
have fought so long.
Mr. President, let me express my ap-
preciation to the majority leader for
making this time available to me.
Mr. President, I yield the floor.
Mr. MANSIoiELD. Mr. President, the
speech of the Senator from New York
was most interesting, enjoyable, and
worthwhile.
am glad that the Senator from New
York had an opportunity to make the
speech today, because it is on a most im-
portant subject which has been over-
looked as it affects our relations with
Vietnam today.
Mr. JAVITS. I thank the majority
leader very much.
SHOWING IN THE UNITED STATES
OF U.S. INFORMATION AGENCY
FILM "JOHN F. KENNEDY?YEARS
OF LIGHTNING, DAY OF DRUMS"
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that the Senate
proceed to the consideration of Calendar
No, 629, Senate Joint Resolution 106.
The PRESIDING OFFICER plr. HOL-
LAND in the chair). The joint resolution
will be stated by title for the information
of the Senate.
The LEGISLATIVE CLERK. A joint reso-
lution (S. J. Res. 106) to allow the show-
ing in the United States of the U.S.
Information Agency film "John F. Ken-
Drums."
The PRESIDING OFFICER. It there
objection to the present consideration of
the joint resolution?
There being no objection, the Senate
proceeded to consider the joint resolu-
tion.
Mr. McGOVERN. Mr. President, I
wish to express my deep appreciation to
the Senate leadership for scheduling floor
action today on Senate Joint Resolution
106?a resolution to permit the showing
in the United States of the USIA film on
the White House years of the late Presi-
dent Kennedy, entitled "Years of Light-
ning, Day of Drums." I first proposed
that the Congress take such action after
seeing the film at a special showing in
the State Department auditorium in
November 1964.
On the opening day of the current ses-
sion of the Congress, I introduced an
appropriate resolution for myself and 38
cosponsors from both sides of the aisle.
Joining as cosponsors in that effort were
Senators BARTLETT, BAYH, BIBLE, BREWS-
TER, BURDICK, BYRD Of West Virginia,
CANNON, CHURCH, CLARK, COOPER, DOUG-
LAS, ERVIN, GRUENING, HARRIS, HOLLAND,
INOUYE, JACKSON, LONG Of Missouri, MC-
CARTHY, MCGEE, MCINTYRE, METCALF,
MONDALE, MONTOYA, MORSE, MOSS,
MUSKIE, NELSON, NETJBERGER, PASTORE,
PROUTY, RANDOLPH, RIBICOFF, SALTON-
STALL, SMATHERS, TYDINGS, WILLIAMS OF
New Jersey, and 'YARBOROUGH.
A similar resolution, House Concurrent
Resolution 285, was subsequently intro-
duced in the House of Representatives
and passed that body on June 9 by an
overwhelming bipartisan vote of 311 to
75. Under the terms of that resolution
the USIA was authorized to make the
film available to educational and com-
mercial media in the United States.
Senate Joint Resolution 106, the
resolution before us today, authorizes
USIA to transfer to the trustees of the
John F. Kennedy Center for the Per-
forming Arts six master copies of the
film, and the exclusive rights to dis-
tribute copies thereof, through educa-
tional and commercial media for viewing
within the United States.
If the American people should be given
an opportunity to view an excellent mo-
tion picture that is a part of the history
of our Nation every American citizen is
entitled to share. From all across the
country, interested Americans have
written to urge that the Congress
authorize its domestic showing.
Wherever it has been shown abroad,
the movie has been enthusiastically re-
ceived. For example, the Daily Mirror
of Manila described it "as a real work
of art." Said the Times of India: "Each
and every shot of this one and a half hour
long film is so effective and heart touch-
ing that the spectators remain spell-
bound to the last minute." The Star of
Johannesburg observed: "This film
makes one want to be an American."
Bosley Crowther, noted drama critic of
the New York Times, referred to it as
"substantially a superior documentary
that articulately and artfully combines
a comprehension of the basic aims of the
eulogy for him." The reviewer for the
Washington Post, Richard Coe, said:
"This masterfully imaginative hour and
a half documentary is the first full-
length feature and by all odds the finest
film I've seen by the U.S. Information
Agency." The New York Herald Tribune
reviewer, Judith Crist, describes the film
as "an inspired and inspiring document,
a beautiful memorial to a man who em-
bodied so much of the American ideal
and who gave voice to the American
aspiration." An editorial in the Louis-
ville (Ky.) Times stated that "it is a
stirring and powerful hymn to the ideals
and goals of American life."
As one who attended the first special
showing for Government officials and
Members of Congress at the State De-
partment and having hosted a special
viewing here on Capitol Hill for Members
of Congress and their staffs, I can per-
sonally testify to the impressive quality
of this film.
The film focuses on the "six faces of
the New Frontier" which highlight the
Kennedy years?"The Years of Light-
ning"?first, the Peace Corps; second,
the Alliance for Progress; third, the space
program; fourth, the drive for racial
equality; fifth, the fight for global free-
dom; and, sixth, the slowing of the arms
race. Interspersed throughout are stir-
ring scenes of the late President's fu-
neral procession?the "Day of Drums."
This motion picture is an American
story, a part of our national heritage.
It is the story of the American Presi-
dency, and the ideals for which our late
beloved President stood. John Kennedy's
love of American history, his passion for
learning, and his zest for politics gave us
all a new pride in our country, and a more
meaningful commitment to its service.
He made us want to be better, intellec-
tually and physically?more useful, more
vigorous citizens, more actively dedicated
to the peaceful development of the world
and the advancement of the Nation at
home.
One of President Kennedy's favorite
musicals, "Camelot," ends with the
words:
Don't let it be forgot that once there was
a spot, for one, brief, shining moment, that
was known as Camelot.
I do not think Americans will ever for-
get the "one, brief, shining moment" of
John Kennedy's days in the White House.
The mark which he has left on our his-
tory has been brilliantly captured in this
USIA documentary. It is a drama which
grows out of the life of the American
people, and its message will have the
deepest meaning for our citizens. Its do-
moestic showing will encourage millions
of Americans to rededicate themselves to
the task of building a better, more just
society.
Mr. President, I urge the Senate to ap-
prove this resolution overwhelmingly.
The PRESIDING OFFICER. The
joint resolution is open to amendment.
If there be no amendment to be pro-
posed, the question is on the engrossment
and third reading of the joint resolution.
The joint resolution was ordered to
be engrossed for a third reading, was
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21256 CONGRESSIONAL RECORD ? SENATE August 26, 1965
read the third tine, and passed, as
follows:
KJ. Ras. 106
Resolved by the senate and LIcnoe of Rep-
resentatives of the United States of America
in Congress assembled. That it is the sense
of the Congress that the people of the United
States should not be denied an opportunity
to view the Alm prepared by the United
States Information Agency entitled "Years
of Lightning, Day of Drums," depicting
events in the administration of the late
President John F. Kennedy.
It is further the sense of Congress that
the expression of congressional intent em-
bodied in this joint resolution is to be lim-
ited solely to the film referred to herein,
and that nothing contained in this joint
resolution should be construed to establish
a precedent fee making other materiels pre-
weed by the United States Information
Agency available for general distribution in
the United States.
SEC. 2. Accordingly, the United States In-
formation Agency is authorized to make
appropriete arrangements to transfer to the
trustees of the John P. Kennedy Center for
the Performing Arts six master copies of
- such film and the exclusive rights to dis-
tribute copies thereof, through educational
and comInercial media, for viewing within
the United States. The net proceeds re-
sulting from any such distribution shall be
entered into the Treasury for the benefit of
the John F. Kennedy Center for the Per-
forming Arts and shell be available, in addi-
tios to appropriations authorized in the
John P. Kennedy Center Act, to the trustees
of such Center for use in carrying out the
purposes of such Act.
Bac. 3. In order to reimburse the United
States Government for its expenditures in
connection with production of the film, such
arrangements shall provide for payment, at
the time of delivery of the said master coniese
for such rights in the amount of $122,000,
which shall be covered into the Treasury
as Iniseellaneoua receipts.
Sec. 4. Any documentary film which has
been, is now being, or is hereafter produced
by any Government department or agency
With apprOpriations out of the Treasury con-
eeening the Ries character, and public serv-
ice of any individual who has served or is
serving the Government of the United States
In any official capacity shall not be distrib-
uted or shown in public in this country
during the lifetime of the said official or
after the death of such official unless au-
thorized by law in each specific case.
Mr. mANarnam Mr, President, I
move that the vote by which the joint
resolution was passed be reconsidered.
Mr. PELL. Mr. President, I move that
the motion to reconsider be laid on the
table.
The motion to lay on the table was
agreed to.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent to have printed
In the RECORD an excerpt from the re-
Port (No. 647) explaining the purposes
of the bill.
There being no objection, the excerpt
was ordered to be printed in the RECORD,
as follows:
PURPOSE OE LEGISLATION
The resolution expresses the sense of the
Congress that the people Of the United States
should not be denied an opportunity to see
the film prepared by the U.S. Information
Agency (USIA) and entitled "John F.
Kennedy?Years of Lightning, Day of
Drums." It authorizes USIA to transfer to
the trustees of the John P. Kennedy Center
for the Performing Arts six master copies of
the film, and the exclusive rights to dis-
tribute copies thereof, through educational
and gornmercial media for viewing within
the t(salted States, The resolution requires
that at the time of delivery of these master
copies of the film, the John P. Kennedy
Center for the Performing Arts will pay the
Treasury $122,000 to reimburse the 'U.S. Gov-
ernment for its costs in producing the film.
The resolution further provides that the net
proceeds resulting from the distribution of
the film by the John F. Kennedy Center for
the Performing Arts will be covered into the
Treasury for the benefit of the Center and
will be available to the trustees of the Center
for use in carrying out the purpose of the
act authorizing the Center. Finally, the
resolution provides that any documentary
film which has been, is now being or is
hereafter produced by any Government
department or agency with appropriations
out of the Treasury concerning the life,
character, and public service of any indivi-
dual who has served or is serving in any
official U.S. Government capacity will not
be distributed or shown in the United States
unless authorized by specific law.
BACKGRouND
After the assassination of the late Presi-
dent John P. Kennedy, USIA produced a
color motion picture entitled "John P.
Kennedy?Years of Lightning, Day of
Drums." The film was released in the fall of
1964 and has been distributed in 117 foreign
countries. USIA has also distributed, or is
in the processof preparing for distribution,
translations of the film in 29 foreign lan-
guages. According to press reports, and the
reports of U.S. representatives abroad, the
film has been received enthusiastically by
foreign audiences.
Section 501 of the United States Informa-
tion and Educational Exchange Act of 1948,
as amended, (Public Law 80-402) provides
that the output of USIA shall be made
available for examination by Members of
Congress as well as by representatives of the
press and of other communications media.
This provision was included in the law in
order to assure that the output of USIA
would ee subject at all times to scrutiny by
responsible persons outside the Agency. Un-
der this provision, the film has been :shown
to a limited number of people within the
United States. The film has also been shown
in Boston, Mass., at the dedication of the
Boston Civic Memorial Center on February
22 1965, pursuant to House Concurrent Reso-
lution p82, and in Cambridge. Mass., at the
25th class reunion of the Harvard class of
1940, pursuant to House Concurrent Resolu-
tion 426.
It has not, however, been shown to the
public at large in the United States. Sec-
tion 2 of the United States Information and
Educational Exchange Act of 1945, as
amended,, states, that USIA is "to disseminate
abroad information about the United States,
its people, and policies."
Section 501 of the same act contains simi-
lar language limiting USIA's activities to
disseminating information about the United
States abroad. It was clearly the intent of
Congress when the act was passed, an intent
that has. been reaffirmed frequently since,
that USIA should not disseminate informa-
tion domestically.
COMMITTEE ACTION
At executive sessions on March 3 and 16,
1965, the committee considered three resolu-
tions relating to the showing of the film in
the United States. These resolutions were
Senate Concurrent Resolution 4, which had
been introduced in the Senate on January 8,
1965, by Mr. McGovenee Senate Joint Resolu-
tion 8 which had been introduced in the
Senate by Mr. PELL also on January 6, 198$:
and House Concurrent Resolution 285 which
had been introduced in the House on Feb-
mazy 10, 1985, passed by the House by a
vote of 311 to 75 on June 9, 1965 and placed
on the Senate Calendar on June 10, 1985.
All three of these resolutions expressed the
sense of the Congress that the people of the
United States :should riot be denied an oppor-
tunity to view the film and that USIA should
make appropriate arrangements to make the
film available for distribution through edu-
cational and commercial media for viewing
within the United States. Senate Concur-
rent Resolution 4 also provided that the net
proceeds resulting from showing the film
would be contributed to the John F. Ken-
nedy Center for the Performing Arts. Sen-
ate Joint Resolution 8 provided that these
proceeds would be covered into the Treasury
for the benefit of the Center. House Con-
current Resolution 285 made no mention of
the disposition to be made of the proceeds
resulting from showing the film. The com-
mittee reached no decision on these resolu-
tions at the two executive sessions in March.
The committee met again in executive ses-
sion on August 24 to consider House Concur-
rent Resolution 285. While the committee
decided that the people of the United States
should not be denied an opportunity to see
the film, the committee considered it im-
portant that it be made clear that no prece-
dentowouid be established which might en-
courage USIA to turn from its assigned task
of conducting ;information activities abroad
to disseminating information at its discre-
tion in the United States. The committee
also decided that the commercial distribu-
tion of the film in the United States should
be taken out of the hands of USIA; that the
net proceeds resulting from showing the film
in the United States should be made available
to the John F. Kennedy Center for the Per-
forming Arts; and that the Center should pay
$122,000 for six muster copies of the film, and
the exclusive rights ito distribute copies
thereof within the Un:ited States, in order
to reimburse the U.S. Geeernment for its ex-
penditures in producing the film. In addi-
tion, the committee concluded that the au-
thority to allow the showing of the film in
the United States under the conditions de-
scribed above should be by joint resolution
having the force and authority of law rather
than by House Concurrent Resolution 285
which would merely express the sense of the
Congress. It thus decided not to recom-
mend favorably House Concurrent Resolu-
tion 285 and to report in its place an original
Senate joint resolution.
The committee agreed that there should be
no partisan political consideration in the
arrangements made for distributing the illm
in the United States and that there should
be no showing of the film, as at a political
convention for example, which would serve
a partisan political purpose.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that Calendar
No. 628, House Concurent Resolution 285
be indefinitely postponed.
The PRESIDING ()FFICER. With-
out objection, it is so ordered.
Mr. PELL. Mr. President, I am de-
lighted with the passage of Senate Joint
Resolution 106, allowing the showing in
the United States of the USIA film "John
P. Kennedy?Years of Lightning, Days
of Drums," the wonderful film concern-
ing the life and death of the administra-
tion of our late beloved President Ken-
nedy. The people of our own State of
Rhode Island, which always had a par-
ticular affection for President Kennedy,
will be particularly glad when the time
comes that they can view this film.
I salute, too, those who made this film,
which is truly an excellent one.
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