Congressional Record Senate

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000300150012-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: September 25, 2003
• Sequence Number: 12
• Publication Date: May 14, 1965
• Content Type: OPEN

Approved For Release-2003/10/14; CIA=RDP67B00446R000300150012-0
May 14, 1'965 CZ7NGESIOIAL ItEb'D =1~TA'E
of U.S. Government agencies, foreign ship-
owners, U.S.grain Interests, and the Soviets
themselves all cooperated to keep cargoes for
U.S. ships at a minimum.
Why should it be so difficult to carry out a
staightforward Presidential commitment on
giving to U.S. ships a fair share of U.S. car-
goes. Is it a lack of patriotism on the part
of the people involved? We doubt it. It is
simply that the U.S. merchant marine is a
stgpchild-except in time of emergency.
for this we have paid heavily in the past-
not only in billions of dollars but in thou-
sands of lives. And it is not only in war
that we pay the price of our indifference to
the meaning of a strong U.S. merchant ma-
rine. We pay every day in many ways.
You will note in the foregoing article that
the Soviets,- are keenly aware of what a
strong merchant marine can mean to them
in'terms of 'income, a favorable trade bal-
ance, international prestige and prepared-
ness. Such awareness and concern are sad-
ly lacking amoii gmost of our own Govern-
mont officials and the majority of our own
people. Which is our reason for reprinting
this article.
Let me cite just one more item to demon-
strate the shortcomings of our national at-
titude and what this leads us into:
-There is more U.S.-owned ship tonnage op-
erating under Liberian, Panamanian, and
Honduran flags, than there is under our own
flag.
These are what we call runaway-flag ships.
They are also known as flag of convenience
ships. And note this: The U.S. Government
has given its blessing to this kind of run-
away operation, through something official-
ly known as the effective control policy.
American seamen have another couple of
words for it.
According to the effective control policy,
ffips under Liberian, Panamanian, Hondu-
ran, and certain other foreign flags, can be
regarded as part of the U.S. merchant ma-
rine for defense purposes, provided only
that the American owners sign a piece of
paper stating that their ships will be avail-
able to the Government when requested.
Anyone who knows ships and history
knows how phony a position this is. It is
ridiculous for our great Nation to have a
policy of relying for an important part of
our national maritime strength on ships sail-
ing under foreign flags in foreign waters and
,manned by seamen of other countries who
owe no loyalty to the United States-simply
because the owners, sitting at their desks,
have signed a piece of paper stating that
they will be available.
The effective control theory is a fraud
Which will put us on the verge of disaster
if it is ever tested. It is a fraud from which
nobody profits except the owners of the run-
away flag vessels, who include some of our
richest and most illustrious corporations-
the largest oil companies, steel and alu-
minum producers, and others.
The owners profit from runaway flag op-
eration because they are free from any direct
taxes on their vessel operation, they are
free from U.S. labor standards and can pick
up the cheapest available crews anywhere
in the world without security controls of
any kind, they are free from many'other
cost items that go ' with operation under
U.S. flag.
The owners gain hundreds of millions of
dollars through this operation. The United
States loses that and much more-lost taxes,
lost wages of American seamen and other
maritime workers, lost income for, the in-
dustries which support U.S.-flag shipping,
a>d further damage to our international
balance of payments.
There is also a loss of national dignity
and stature, in these ships-which should
be showing proudly the Stars and Stripes-
slinking around under false colors with
abused and exploited crews.
Why does the United States encourage
this kind of operation? The most common
explanation given by Government spokes-
men and the runaway shipowners is that,
unless these ships are operated under foreign
flags, our Government would have to sub-
sidize them.
It is difficult to see how these corpora-
tions could make a case for Government
subsidies for the vessels which, serve their
gigantic enterprises. But even if they could,
no conceivable subsidy could match what our
country now loses, in terms of dollars and
cents alone, through the operation of their
vessels under foreign flags. And far more
important, is the loss to our country in terms
in terms of security and prestige.
A strange thing about the foregoing arti-
cle is that the Soviets apparently meant it
for the purpose of allaying whatever con-
cern has been shown here over the rapid
building of their merchant fleet. They want
us not to worry. Their belief that such an
article would serve that purpose, is an in-
dication of how confident the Soviet officials
are that Americans will continue to be in-
different to their own national self-interest
and pride where the merchant marine is
concerned.
Their approach In this is strangely like
the propaganda which has been put out here
by the American Committee for Flags of
Necessity, which is the powerful lobbying and
pubic relations machine set up by the biggest
owners of runaway flag ships.
In the slickness of the publication (the
Soviet article was published in full color)
and in the lack of respect for American intel-
ligence, the technique of the Soviets and the
"Flags of Necessity" people is remarkably
alike.
The Russian officials blithely give assur-
ances to Americans that they have no desire
to invade the world shipping market and
have no crafty objectives. And they expect
Americans to overlook the obvious power and
drive of their merchant marine program,
which goes far beyond any normal require-
ments of their foreign commerce.
In the same way, in their publications, the
Americans who make up the Flags of Neces-
sity Committee blithely assure their fellow
Americans that the giant fleet which they
operate under runaway flags for greater prof-
its, actually is a national asset. And they
expect Americans to overlook the obvious loss
to our own economy, prestige, and security in
having American ships sailing under runaway
flags, manned by exploited crews, carrying
materials which are the lifeblood of American
industry.
The runaway operators blithely state our
Government has effective control over their
ships. And they expect Americans to take
their word for it. The fact is our control
over these foreign vessels can be counted on
to about the same degree as we can control
any other foreign vessels-including the So-
viet.
Nobody can blame the Soviets for seeking
to promote their economic and political in-
terests by launching more and more passen-
ger ships, bulk carriers, and freighters to
serve their purposes in all parts of the world.
Rather, Americans should look to our mer-
chant marine and recognize how it should
serve to promote our own economic and po-
litical interests and is failing to do so because
there is so much negative and destructive
thinking about our merchant marine among
Americans.
We are a nation with some 11,000 miles
of seacoast, on every aide of us. We are the
greatest producer of goods in the world, with
our 'production increasingly dependent on
raw materials brought In from overseas. We
are the leader of the free world in a period
of grave international tensions which show
no sign of easing.
Yet ours is no better than fifth, and prob-
ably sixth, among the merchant marines of
the world. We have fewer ships in action to-
day than we had in 1939, despite the tre-
mendous increase in our foreign commerce
and our international responsibilities since
that time.
It is not fear of the Soviets that should
impel us to act to restore our American-
flag merchant marine. We should do so out
of a sense of positive national purpose, de-
cent self-interest and national pride. And
we had better do it fast.
SUMMARY OF MEDICARE TESTI-
MONY, MAY 14
Mr. HARTKE. In the course of its
progress through the list of 81 scheduled
witnesses testifying before the Finance
Committee on the medicare bill, today's
session heard five more representatives
of interested organizations. I ask
unanimous consent that an unofficial
summary of that testimony may appear
in the CONGRESSIONAL RECORD.
There being no objection, the sum-
mary was ordered to be printed in the
RECORD, as follOWS:
(SUMMARY OF TESTIMONY)
AMERICAN ASSOCIATION OF RETIRED PERSONS
AND NATIONAL RETIRED TEACHERS ASSOCIA-
TION
(William C. Fitch, executive director)
The combined membership of the asso-
ciations totals almost 1 million individuals
55 years of age and older.
1. Support the bill as meeting most of
long-term aims of these associations,
2. Urge choice of carriers and plans under
supplementary benefits, similar to that of
the civil service retired employees.
3. The section on medical expense deduc-
tion should eliminate the 3-percent limita-
tion, which is giving with one hand and tak-
ing away with the other.
4. The bill should provide benefits for all
over 72, rather than requiring three-quarters
of coverage at that age. Many have had no
opportunity to qualify. This (the 1964
Byrnes proposal) is actuarilly feasible and has
precedent in the 1935 Railroad Retirement
Act.
5. Since the last adjustment in 1958, living
costs have risen 9 percent and medical care
costs 20 percent. The 7-percent general in-
crease with $4 minimum should be increased
to 10 percent with $6 minimum.
6. Earnings up to $1,500 should be per-
mitted without reduction in benefits.
7. Amendment should enable the aged di-
vorced woman or aged widow to continue to
receive benefits based upon her former hus-
band's earning record even though she re-
marries, if the result is loss in her income.
AMERICAN PUBLIC WELFARE ASSOCIATION
(Charles I. Schottland, dean, social welfare
graduate- school, Brandeis University; for-
mer HEW Commissioner of Social Security;
member, association's committee on public
welfare policy)
1. Express our general agreement with the
major features. Has long supported the
social security approach.
2. Oppose deductibles as a barrier to early
hospitalization.
3. Charges for the services of radiologists,
anesthesiologists, pathologists, and physia-
trists should be included under the hospital
insurance plan.
4. Strongly support the proposed unifica-
tion of all medical assistance under the new
title XIX as a far-reaching improvement.
5. States should be given the option of
including coverage in their plans for medi-
cally needy persons who do not happen to
meet the special requirements for classifica-
tion under any of the public assistance cate-
gories * * * who do not have the tie-in
Approved For Release 2003/10/14: CIA-RDP67B00446R000300150012-0
 Approved For Release 2003110/14 CLA-RDP67B00446R000300150'012-0
'10184
CGNG12ESSIGN-AI: RE-CORD`=SENATE
The LEGISLATIVE CLERK. A bill (S.
1564) to enforce the 15th amendment to
the Constitution of the United States.
The Senate resumed the consideration
of the bill.
Mr. MANSFIELD. Mr. President, I
yield myself 1 minute.
I suggest the absence of a quorum, on
my time.
The PRESIDING OFFICER. The
clerk will call the roll.
The legislative clerk proceeded to call
the roll.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent to withdraw the
order for the quorum call.
The PRESIDING OFFICER. Without
objection, it is so ordered.
Mr. MANSFIELD. I yield 2 minutes
to the distinguished Senator from Idaho.
-With a category,'hilt who meet the same test
'Of need.
6. Method of State financing for public as-
sistance medical programs "should not in-
clude prohibition against local financial par-
+ticipation; in any case, it should not be
mandatory until 1570 because it will require
in some States a great deal of internal re-
arranging.
7. Federal participation should be pro-
vided at 75 percent for training personnel
needed for effective administration of medi-
cal assistance program.
8. Strongly endorse increased grant au-
thorization to States for material, child
health and crippled children's services as
proposed. Authorization for child welfare
services should be in equal amount as for
these two.
9. Recommend improvement of Federal
participation in welfare programs for Puerto
Rico, Virgin Islands, and Guam, above that
provided.
10. Support a further upward adjustment
in level of benefits under OASDI.
AMERICAN FOUNDATION FOR THE BLIND
(Irvin P. Schloss, legislative analyst, repre-
senting also American Association of
Workers for the Blind)
1. Disability beneficiaries should be in-
cluded for health care benefits; need is as
acute as for the aged.
2. Propose three amendments to improve.
services for crippled children, including
change of program name to meet present
broader scope description. Program for
children's eye care service by physicians
.should be expanded.
S. States should have privilege of desig-
mating administrative structure without Fed-
eral restriction, to suit their own conditions
best.
4. Disability insurance program should
.incorporate S. 1787 provisions, to spur re-
habilitation of the blind, by providing dis-
ability benefits for six quarters of covered
-employment. '
AMERICAN OPTOMETRIC ASSOCIATION
(W. Judd Chapman, O.D., Tallahassee, Fla.,
immediate past president, comprised of
State associations representing most of
the country's 17,000 practicing optome-
trists)
1. Bill is not consistent, specifically pro-
viding for optometrists in some sections but
not clearly in others. Offers an amendment
providing that where the bill authorizes pay-
ment for services an optometrist is licensed
to perform, beneficiary may choose either a
physician skilled in diseases of the eye or an
optometrist. -This amendment adds noth-
ing to the program not does it take from it.
It simply recognizes the * * * concept of an
individual's freedom.
2. Proposes amendment of section 532 to
make possible grants to schools of optometry
equally with schools of medicine and dentis-
try.
AMERICAN PARENTS' COMMITTEE, INC.
(Barbara D. McGarry, executive director)
'Specifically supports title IV increase in
aid for dependent children; title II, increase
in maternal and child health services; in-
-crease in crippled children's services; train-
ing of professional personnel for crippled
children; payment for inpatient hospital
services (sec. 204); special project grants for
health of school and preschool children;
'implementation of mental retardation plan-
VOTING RIGHTS ACT OF 1965
The 'PRESIDING OFFICER. The
h0ux.of ,1?~,; 30 ,lfaying arrived, the Chair
lays, before the Senate the unfinished
business, which will be read by title.
Mr. CHURCH. Mi. President, yester-
day, President Johnson gave an excellent
speech on V'etnam to the Association of
American Editorial Cartoonists. In this
speech he stressed the fact that the
United States would remain firm in its
commitment to the Saigon Government,
in which I strongly support him.
Second, he emphasized the need for
a political settlement, saying:
The second face of war in Vietnam is the
quest for a political solution-the face of
diplomacy and politics, of the ambitions and
interests of other nations.
We know, as our adversaries should also
know, that there is no purely military solu-
tion in sight for either side. We are ready
for unconditional discussions.
In regard to this position, for a year
now, I have continually spoken up for a
recognition that no military decision can
be reached on either side in Vietnam,
and that a political settlement of the
struggle would serve the best interests of
this country and the other countries
concerned.
Third, President Johnson reaffirmed
his prior offer to help in the develop-
ment of southeast Asia, including the
creation of an Asian development bank.
In this wise concentration on the need
for economic development, I again
strongly commend the President of the
United States.
President Johnson correctly pointed
out in his speech that the only country
which has anything to gain by a con-
tinuation of the war in Vietnam is Com-
munist China. Neither North Vietnam,
nor South Vietnam, nor the United
States, stands to benefit from a con-
tinuing war in southeast Asia.
I ask unanimous consent to have a con-
gratulatory editorial on the President's
speech from the May 14 issue of the
New York Times inserted at this point in
the RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
To H.C.M, FROM L.B.J.
President Johnson's speech on Vietnam
yesterday could not have been more clearly
addressed to Hanoi if it had been marked
"attention Ho Chi Minh." It was an effort
worth making even if it remains unanswered
at present. For the mere attempt to talk
May 14, 1965
intelligently at, if `unfortunately not to, the
adversary forces the formulation of ideas in
a new and useful way.
In an administration that has generally
emphasized the military approach, it is im-
portant that the President is now stressing-
as many critics of administration policies
have long Insisted-that there is no purely
military solution in sight for either side. In
his remarks yesterday, there was no unreal-
istic talk of victory or winning the war as
there often has been in the words of his
advisers.
The purpose to which he intends devoting
unlimited resources, Mr. Johnson indicates,
is that of denying victory to the other side
while seeking a negotiated settlement. This
is a policy that is welcome and needs even
more explicit clarification at a time when-
after denials that any such decision had been
made-additional American troops in large
numbers are being sent to South Vietnam.
At 46,500, the number of American troops
there now is well over three times the pre-
Johnson level.
The President yesterday drew a useful dis-
tinction between Hanoi and the Vietcong
guerrillas, which seek the fulfillment of
Vietnamese nationalism, and Communist
China, which seeks domination over all of
Asia including, he implied, Vietnam. And,
in a tone new to Washington, Mr. Johnson
observed that many of the individual fight-
ing men we must now, sadly, call the enemy,
are trying to shatter the old ways which have
imprisoned hope and to reach for the material
fruits from the tree of modern knowledge.
He urged Hanoi to pursue its own interests
by coming to the conference table, freeing
itself from the control of a China that wants
to continue the war irrespective of the cost
to China's allies.
It is in this context that the President has
now indicated for the first time that pace
peace is restored, all forms of American aid-
not just the fruits of a projected Mekong
Valley development that might not touch
North Vietnam directly-will be available to
all the people of Vietnam, north and south
alike. The wise decision to help found an
Asian Development Bank with, it is hoped,
the backing of all industrialized nations
including the Soviet Union, has evidently
been taken on the recommendaton of Eugene
Black. It should open the way for the kinds
of soft loans and long-term multilateral de-
velopment aid needed in Asia's special cir-
cumstances, with which present American
and United Nations machinery is unable to
cope.
The President wields the country's vast in-
fluence most effectively when he voices, as
he did yesterday, Its desire to explore every
possible path to peace. If he will but con-
tinue now to pursue honorable negotiations
with the vigor and persistence he has applied
to military measures, he will be on the road
that is most likely to lead to the honorable
settlement he and the American people
clearly want.
VOTING RIGHTS ACT OF 1965
The Senate resumed the consideration
of the bill (S. 1564) to enforce the 15th
amendment to the Constitution of the
United States.
Mr. MANSFIELD. Mr. President, I
suggest the absence of a quorum, out of
my time.
The PRESIDING OFFICER. Out of
the Senator's time.
The clerk will call the roll.
The legislative clerk proceeded to call
the roll.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that the order
for the quorum call be rescinded.
Approved For Release 2003/10/14: CIA-RDP67B00446R000300150012-0