CONGRESSIONAL RECORD--SENATE

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January 1, 1962
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1962 Approved For R CrR2WWN lLC ftID44806pff 500030005-3? mainland China, North Vietnam, and Cuba have fallen under the yoke of Communist domination. All throughout Africa, Asia and Latin America we have daily evidence that mere economic assistance, our one- pronged response to communism is not enough. While it is true that military ac- tion has played a part in bringing some of these areas into the Communist realm, the fact cannot be ignored that the military aspects of these conquests were no more- and often far less-instrumental in bringing about the final result than were the non- military aspects. By nonmilitary aspects I mean that well, defined and highly systematized warfare concept developed by the Communists, which utilizes a multiple arsenal of manip- ulatory skills, including subversion, infiltra- tion, ideological persuasion, di lomatic g 16233 methods available to' a free people to resist Communist infiltration, subversion, and ag- gression, thus, nurturing the soil for the growth fo democratic societies. Lest there be any misconceptions as to my assessment of the role which the Freedom Academy can play in the`?conflict between freedom and communism le me hasten to emphasize that I most certai ly do not look upon this proposed agency anci?the functions it will execute as an easy panacea to our problems or a cure-all patent n),edicine for ridding the world of Communist tyy}}''anny. It is only one of a series of steps whiclir: must be taken so that this Nation and our free world allies can seize the initiative in the cold war conflict. I do, however, sincerely feet, that the establishment of this training, research and development institution is of paramount ful improvement of this Nation's cold war`, blackmail, and coup d'etat. With the capabilities. ",integration of political, ideological, psy- I am not alone in the conviction that this blaological, economic, organizational, and institution can be the foundation for im- phramilitary skills into a single artistically provement of our cold war capabilities. I coordinated warfare concept, the Commu- am joined by the members of the Senate nista_have conceived an entirely new dimen- Judiciary Committee, who in reporting the sion '-of ' conflict which, operating on a Freedom Academy bill to the Senate in 1960 foundation of military strength, cows and said: paralyzes its prey with the threat of armed "The committee considers this bill to be combat-then conquers him through polit- one of the most important ever introduced ical collapse without the use of. military in the Congress. This is the first measure action. to recognize that a concentrated development The Communists have imparted this new and training program must precede a signifi- dimension of warfare to their cadres through cant improvement in our cold war capa- an extensive network of training institutions. bilities. The various agencies and bureaus Political-warfare training in the Communist can be shuffled and reshuffled. Advisory com- sphere predates the Bolshevik revolution, mittees, interdepartmental committees, and and, indeed, It was the training institutions coordinating agencies can be created and re- established ? by Lenin" which produced the created, but until they are staffed by highly revolutionists responsi'kale for undermining motivated personnel who have been Sys- the Kerensky government. Today, the Com- tematically and intensively trained in the munists .are operating an'-glaborate chain of vast and complex field of total political war- schools, providing training in political and fare, we can expect little improvement in our psychological warfare at all levels. The pres- situation." ent leaders in Red China were trained in Viewed in this light, I think the Freedom such schools. Academy becomes a far more appealing and We have evidence that in the last 10 years plausible idea to those who might instinc. there has been a substantial incregse in the tively react against it, either because they training of African, Asian and Latin Ameri- oppose the creation of new Government can students at the Communist liolitical- agencies or because they see this new agency warfare schools behind the Iron Cr rtain. infringing on the activities of the existing The training in these centers is both illten- agencies in the national security complex. sive and comprehensive; it is carefully\de- Let me assure you that this is not a make- signed to produce a knowledgeable and hatd.- work proposal or a school for dilettantes in ened political-warfare combatant, who calf the field of international affairs. Neither is effectively execute the marching orders of the?, it our intention that this proposed agency should infringe or encroach upon the func- tions or operational activities of any existing agencies in either the public or the private sector. The Federal Government is today spend- ing over 60 percent of its annual budget or in excess of $55 billion for equipment and activities directly related to national se- curity. It seems fair to assess this gigantic annual expenditure as probative evidence that our governmental leaders are acutely aware that Sino-Soviet communism poses a formidable threat to the survival of our Na- tion. Of this total expenditure over $50 billion are being spent for military require- ments and other defense needs. We must, of course, maintain strong and modern arma- ments, and although I wish it were other- wise, I do not begrudge the expenditure of one defense dollar for I recognize the es- sentiality of this disbursement. But let us not fail to recognize that while these ex- penditures are preparing us for the hot war-which, thank God, we are not fight- ing-they are contributing precious little to our preparations for the cold war, which we are fighting at this very moment in every corner of the world. We are not only fighting a cold war: we are, in my opinion, losing it. If anyone doubts the truth of this commentary, they have only to look to the history of the past two decades, when all of Eastern Europe, great detail the buildup of revolutionary training schools and the training of Com- munist cadres in that country. According to this article, the first cadre training institutions were established by the Marxist-Leninist Party of Cuba in 1925-37 years ago. - This article reports that in De- cember of 11960 a system of schools of revolu- tionary, education was launched. Starting with lase schools of revolution this system is built on up to the national cadre school, We highest rung on the ladder. To give .you some idea of the extent of this cadre training program, the author of the article predicted that by December 1961, there would be 330 base schools in the provinces, educating approximately 12,600 students. This is the training program for just one small Latin American country-duplicate this system some 20 or more times and you begin to get a picture of the magnitude of Communist revolutionary training. What are we doing to offset this near assembly line production of conspirators and revolutionaries by the Communist? My friends, the kindest commentary which I can make on our own political warfare train- ing efforts is to describe them as minimal. Exemplary of how little we are doing in this area was an announcement yesterday by the Department of State that it is initiating a training program to educate its employees on the nature of Communist subversion and indirect warfare techniques. The an- nouncement stated that the Department of State hoped to run some 4,000 employees through this training program in the next few months-a training program that will consist of 5-I repeat 5-lectures on Commu- nist political and psychological warfare techniques. This announcement is revealing on two counts. First, it shows that our present training program is so abysmally poor that it can be upgraded by the addition of five lec- tures on Communist tactics and strategy. Second, it point up our continuing unwill- ingness to come to grips with the import and complexity of Communist conflict tech- niques. The absurdity of an announcement by our Department of State that this agency is going to enlighten its employees on Com- munist subversive and political warfare techniques with a series of five lectures could only be equaled by an Atomic Energy Commission announcement that it i t d d n en e managers of protracted conflict in Moscow `'?,tu initiate a 2-week course in the rudiments and Peiping. It is these individuals-these ?pf nuclear physics. The base political war- practitioners of conflict doctrine-these fare schools in Cuba are providing the cadres of tyranny-who have brought the peasants in the provinces with infinitely Communists victory after victory in the last more, training than is scheduled for our two decades-each one narrowing the perim- employees at the Department of State. Ac- eters of freedom. Speaking to this very cording to authoritative reports from Cuba, point, the Senate Judiciary Committee report these base schools, which are the lowest of 1960 on the Freedom Academy bill ob- rung in the Communist political warfare served with frightening accuracy that "the training system, provide their students with Communists have conquered nearly a billion 60 days of full-time training. The training people during a period when their sphere proposed by the Department of State is was markedly inferior in industry, technol- akin to preparing a group of prep school ogy, science, and military capabilities-in students at a Ping-pong table for a football fact, inferior in almost everything except game with the Green Bay Packers. power-seeking know-how." My friends, can you envision the. immense It is this power-seeking know-how of the public furor which would erupt if someone Communists and its tactical, ideological, reported that we had not yet established strategic, and organizational elements, which our first research and production facilities we in the free world must understand in for a nuclear weapons system, with which its most minute detail. Not so- we can mimic to defend ourselves in the event of a hot it, but rather so we can develop the opera- war. I dare say that the public indignation tional skills and frame our positive programs generated by such a report would manifest to effectively counter and defeat commu- itself in a demonstration, which by com- nism's carnivorous thrusts inside the boun- parison would make Coxey's army look like daries of freedom. In a nutshell this will a gathering of the local Dickens Club. Yet be the mission of the Freedom Academny. there is no room for conjecture or specula- I know of the intense concern of this au- tion about our involvement in a cold war-- dience with the Communist takeover in we are in a cold war of the most deadly Cuba. Here again we can find Communist nature with the Communists and we have political, warfare and revolutionary training been in it for nearly two decades-yet we in the background. An article carried in still have not created the basic facilities for the November 1961 issue of Cuba Socialista, producing the weapons system required to a Communist journal in Cuba, describes in fight this nonmilitary contest. For in this Approved For Release 2002/01/02 : CIA-RDP64B00346R000500030005-3 Approved For FtJ91@N@j 91&46Jffi4 BQ R Q0500030005-3 August 22 cold `w r-this ideological conflict-our ina- jor striking power is ideas with highly skilled and well-trained individuals to lin- plement them. When, I ask, are we going to bring to a close the ever-widening gap In the training of cold war combatants? Our urgent need is not only for individuals trained and skilled in the manifold and de- manding disciplines of psychopolitical war- fare; we also need ideas--a grand battle plan if you will-for these soldiers of peace and freedom to execute. Some will say, I am certain, that what I am, proposing. is that we emulate the tactics of the Com- munists-that we master the arts of coups d'etat, blackmail, insurrection, and diplo- matic deceit. I am suggesting no such thing, for to do that would be to make a mockery of the free institutions which we are seeking to preserve. What I am suggesting is that we act upon our recognition that we are engaged in a war of new dimensions and that we develop the forms, the techniques, the skills-all consistent with our national tra- ditions-which are required to wage and win this nonmilitary contest. Today it seems to me that we have a fetish about economic aid. Indeed, those resporisi- ble for out foreign affairs seem to look upon economic aid as the pat answer to inter- national communism. Certainly, economic and technical assistance are important ele- ments in any program directed at the de- struction of Communist totalitarian'domina- tion; but we cannot afford to place our total reliance on economic, assistance to. win the war. Economic development is a process, which even in the most favorable climate requires years-often generations-to accomplish its objectives. We have only to look to our own history to know that this is true. But po- litical revolutions can be planned, executed, and achieved in a matter of months. This is the forte of the Communists, and once they have achieved success in a political revolu- tion there is no longer in being a nation, in which we can conduct our high-minded pro- grams of modernization and nation building. I say if we do not start fighting and win- ning some of these political and psychological contests, we will soon be evicted from the real estate on which to conduct our lofty enterprises for the material and spiritual upliftment of our fellow man. I shall conclude with these final obser- vations, and I leave it to you to decide whether or not the proponents of the Free- dom Academy know what they are talking about. For many years, we have recognized the necessity for using well-trained specialists in our military ventures. We would today consider it unthinkable to send untrained, enthusiastic, patriotic amateurs into mili- tary combat against hardened professionals. Consequently, we have our military acad- emies to prepare junior officers, our basic training for the rank and file, and our war and general staff colleges for the expert and elevated leadership. But in the theater of the cold war, we still operate with far too many amateurs who have the desire to win but who completely lack the needed train- Ing and background with which to succeed. Thus, today we train and prepare our mili- tary people for the war we are not fighting and which we hope will not eventuate, but we fail to train our citizens and our repre- sentatives abroad to operate in the cold war-the ,only war which we are presently fighting. Because of this amateurism on our side, we find ourselves in the ridiculous and tragic role of aiding and abetting the armed sup- pression of the single bona fide anti-Com- munist element in the Congo. Through lack of know-how and a failure to effectively resist Communist conflict methods, we have now been pressed into the position of try- ing to convince ourselves as well as the rest of the world that freedom has been saved by the establishment of a coalition govern- ment in Laos strongly weighted in favor of the Communists. We can no longer fight with amateurs. Unfortunately, in a contest with the Com- munists, virtue is not its own reward. Win- ning the cold war is the only possible way we can avert 'a shooting, nuclear conflict, and by arraying amateurs against professionals in the cold war of today, we only compound the failures which must eventually lead to a nuclear holocaust. Let us delay no longer- let us establish the necessary training and development facilities as an essential first step in equipping ourselves to meet today's challenges with today's techniques. In my opinion, such an agency as the Freedom Academy offers the best hope for providing high-level training to the greatest number in the shortest time-and time, my friends, has never in kind's history been more of the essenc ~,,, "FREE WORLD AMATEURS VERSUS COMMUNIST PROFESSIONALS ADDRESS BY SENATOR DODD Mr. SMATHERS. Mr.. President, I ask unanimous consent that an address delivered by the very able and distin- guished Senator from Connecticut [Mr. Donn] at Orlando, Fla., on August 11 be printed in the body of the RECORD. The remarks related to an effort being made to inform the public of the Free- dom Academy bill presently pending be- fore the Senate Foreign Relations Com- mittee, a measure designed to provide an effective weapon to combat the atheistic philosophy of communism. I commend the reading of this speech highly to the Members of Congress. There being no objection, the address was ordered to be printed in the RECORD, as follows: FREE WORLD AMATEURS VERSUS COMMUNIST PROFESSIONALS (By Senator THOMAS J. DODD) Gentlemen, there is a strange argument now current in bur land. The question at issue is whether we are winning or losing the cold war. It is important that we decide this question, because the future conduct of our foreign policy really hinges on it. If we are winning, then obviously the course we are now pursuing is correct, and no alteration of course is called for. If, on the other hand, we think we are moving for- ward when in reality we are moving back- ward, we may soon find ourselves back- stepping over a precipice. For my own part, I think that the record is clear that, despite certain defensive vic- tories, we have been losing round after round in the cold war since the close of World War II. Let us look at the record of recent years alone: Cuba has gone Communist. A government under Communist leader- ship has been established in British Guiana. The existence of Castroism has created a climate of fear and - political instability throughout Latin America which has, in turn, produced a massive flight of capital, both domestic and foreign, for which no foreign aid program can compensate. The whole' of Latin America now is seething with discontent. There are riots, guerilla move- ments, open insurrections against govern. ment authority. Only at a few points in years, the Communists have taken over the country and train them in administration better part of Laos and are seriously threat- and the professions. This is all well and ening the Vietnamese Government with the most massive guerilla movement they have ever mounted in any country. The future of SEATO has now become a. big question mark. In the Near East, the stable pro-Western government of Nuri as-Said in Iraq has given place to the instable, militantly anti-West- ern government of General Kassim. With- out Baghdad the Baghdad Pact has become a seriously truncated organism. From Tur- key to Algeria, instability has become the chief. characteristic of this entire area. And in Europe the Kremlin has, with im- punity and in violation of all its agreements, erected a wall which effectively severs West Berlin from East Berlin and free Germany from Communist Germany. It is true that the Communist world is having grave economic and agricultural dif- ficulties. It is all the more distressing, in my opinion, that despite these difficulties the political initiative belongs to the Sino- Soviet bloc at virtually every point. If we have been losing the.cold war, if we ave thus far found it impossible to seize the 'initiative at any point, this is because of three basic failures. First of all, we have failed to face up to the unpleasant fact that we are locked in a life-and-death struggle with an implacable enemy. Second, we have failed to face up to the fact that this enemy wages war in an in- finitely subtle and indefinitely complex man- ner; that the so-called cold war is not a simple condition of hostile confrontation, but a mortal conflict waged by a thousand different means-a war in which the enemy offensive is integrated on every plane of hu- man activity-the economic; the political, the diplomatic, the psychological, the social, the cultural-a war conducted by stealth and subversion and Pavlovian techniques. Our third basic failure is that we have been amateurs fighting against professionals. We have failed to draw the necessary les- son from the fact that the Communists have been able to best us in situation after situa- tion in the cold war. We have failed to recognize that, to a very large degree, the Communists have been able to achieve their victories because, since the days of Lenin, they have placed primary emphasis on the training of professional revolutionaries. We have failed to face up to the fact that the free world will never be able to meet this type of attack unless it trains its own pro- fessional practitioners in the art of total warfare. . The free world has unchallenged superior- ity over the Communist world in economic resources, in military strength, in moral values. I do not think, moreover, that any- one will contest our superiority over a sys- tem of government that maintains itself in power only by totalitarian terror. But, de- spite our incontestable advantages, despite our massive and generous foreign aid pro- grams, and despite the incredible difficulties which the Communist regimes are having in feeding their peoples-despite all of these things, world communism continues to make giant strides. The reason for this, I believe, should be obvious to all in this, the 17th year of the so- called cold war. It boils down to the fact that the Communists, by a relatively tiny investment of funds, have trained some scores of thousands of professional revolu- tionaries, who are now active in every coun- try in the world. In doing so, they have given themselves an advantage which by it- self more than offsets our vast economic, agricultural, military, and moral advantages. Let me illustrate this point with a simple question: It has ha n -1...~+e.a +s...+ ...- Approved For Release 2002/01/02: CIA-RDP64B00346R000500030005-3 1962 Approved Form1q4Mq2j 41j RQVOW.64 ,V 3A 000500030005-3 good. I believe it should be done and I will wholeheartedly support such a program. However, if we train 1,000 Congolese as technicians and administrators, out of a humanitarian desire to help the Congolese people improve their lot, and if the Soviets train 100 Congolese in political warfare-- which group will win control of the Congo? Long before he achieved power in Russia, Nicolas Lenin, the father of modern com- munism, told his associates that if he had a handful of professional revolutionaries, he could conquer the world. Lenin's prediction has already proved itself true in country after country. Today the flag of interna- tional communism waves triumphantly over more than a quarter of the earth's surface and over the prostrate bodies of more than one-third of the world's peoples. It flies over most of the land mass of Europe and Asia; it flies "openly over the island of Cuba, only 90 miles from our own shores; and there are many other countries where this flag of tyranny and godlessness may at any moment be unfurled from the seat of power. The first Communist training schools were set up by Lenin in the period preceding the Bolshevik revolution of 1917. The granduates of these schools played a major role in assur- ing the success of the revolution. The graduates of the so-called Sun Yet Ben University, set up in Moscow after the revolution, are today in power on the Chi- nese mainland, in North Korea and in North Vietnam, and are guiding the further ex- pansion of Communist imperialism in Asia. The graduates of the famed Lenin School in Moscow, are today serving as the Soviet gauleiters in Poland and Hungary and Czechoslovakia and the other countries of central and eastern Europe. The graduates of the special schools for Latin American students in Prague today hold key positions in Communist Cuba, and are spearheading the Communist drive which today has come so ominously close to suc- cess in so many Latin American countries. It is not the power of the Communist ide- ology that gives it its strength. It is the skill and cunning of its professional conspirators. No people in the world has opted for a Com- munist regime or the Communist ideology. On the contrary, wherever communism has succeeded In imposing itself, it has done so only by force or by deception or by a com- bination of the two. The movement which Fidel Castro com- manded in Cuba never consisted of more than several thousand men, of whom several hundred, at the most, were Communists. But they were able to take over a country of 7 million people, the overwhelming majority of them devout Catholics who abhorred communism. They were able to do so be- cause they were professional revolutionaries. As we proved helpless to deal with Castro at the time, so we have been helpless to deal with other aspects of the Communist cold war offensive. When, for example, repeated riots by Jap- anese students threatened to prevent a state visit by President Eisenhower to Japan, there was apparently nothing we could do and nothing we could think of doing. The result was that the scheduled visit was called off and without firing a bullet, Moscow had scored a sensational victory in the cold war. The ability of the relatively small Com- munist'Party in Japan to manipulate scores of thousands of students stems from their control over the Japanese Teachers' Union, whose 500,000 members staff Japan's public schools. While the overwhelming majority of the union's members are non-Communist, the machinery of the union has, for many years now, been in the hands of a small Communist faction. In its pamphlet called the Teacher's Code of Ethics, the Japanese Teachers' Union states that "the realization of socialism is the historic task imposed on the teacher. It is the duty of the teacher to foster young people who would help realize such a society." In line with this directive, chil- dren in Japanese schools are being taught by their teachers that the U.S.S.R. stands for everything progressive, while the United States is identified with Imperialism and everything evil. All of this goes to prove once again that humanitarianism, superior ideals, and mas- sive foreign aid are not enough to defeat the Communist onslaught. For nearly a decade we occupied Japan and directed Its reorgani- zation along democratic lines. We . spent hundreds of millions of dollars and devoted the energies of many of our best minds to the problem of reorienting its government. Yet we may have failed because, in our political innocence, we thought that the only enemy was Japanese militarism, which was crushed and discredited, and we neglected to prepare the Japanese to defend them- selves against the real enemy. We have proved helpless, too, to prevent the inroads of Communist agitation even in a prosperous Latin American country like Venezuela, which is governed by a tolerant and socially minded regime. In Venezuela there exists today a serious Communist- Castroite infiltration among the university professors and the students, and even among the younger officers of the army. This in- filtration has already resulted in a continu- ing epidemic of bomb explosions and ter- rorism and in two bloody uprisings by mili- tary units stationed in the two principal ports of the country. These are some of the more -tangible suc- cesses the Communists have had in the cold war: But they have had other successes of a far more subtle and far more dangerous nature in the realm of conditioning interna- tional public opinion. The Communists were able to seise power in China largely because they succeeded in persuading an important segment of our public opinion molders and policymakers that they were not really Communists but agrarian reformers. The Communists scored a similar victory In the closing years of World War II, when they succeeded in persuading Britain and America that the resistance forces of General Mihailovitch in Yugoslavia were actually collaborating with the Germans, and, having persuaded us of this, they then induced us to support the Communist forces of Marshal Tij;o in a war of extermination against the anti-Communist forces of Mihailovitch. And a scant 8 years after we had fallen for the agrarian reformer shell game in China, the Communists again succeeded In deceiving the free world with much of the same sort of shell game in Cuba. Respon- sible newspapers and radio networks joined in telling the American people that Castro was not a Communist, but a nationalist re- former, something of a cross between Thomas Jefferson and Robin Hood. With this propaganda, they inactivated us just as ef- fectively as they might have done with the most modern nerve gases. By the time we had recovered our judgment and our capac- ity for action, it was already too late to do anything. Communist propaganda, when it is clearly identified as Communist propaganda, the free world can cope with: The trouble Is that 99 percent of the articles and publica- tions and radio and TV programs that serve .the Communist cause cannot be clearly iden- tified as Communist propaganda. It is, in fact, through their hidden ap- paratus, which is infinitely complex and infinitely subtle, that the Communists achieve their greatest successes in the manip- ulation of public opinion. Because of these things, and many other things, I do not accept the thesis that all is going well for the free world, and that there is no need for improvement in our cold war posture or capability. I do not accept the thesis that there is nothing we can do, beyond what we have already been doing, to cope with the many- pronged offensives of international com- munism. I believe that freemen, with proper under- standing, and proper training, can con- stitute more than a match for the Com- munist professionals. We are now in the process of developing more effective methods of dealing with Com- munist guerrilla warfare. I believe we can also develop more effective methods of ex- posing and countering Communist propa- ganda; of keeping our unions, and our schools and our public organizations free of Communist control; of exposing and coun- tering the crypto-Communist movements that are now active throughout Latin America and many other countries. Finally, I believe that we can devise methods that will enable the free world to place the Communist world on the defensive in the cold war. I believe that if it is pos- sible for the Communists to peacefully sub- jugate other peoples, it is possible for the free world to peacefully liberate countries that have already been subjugated. But to do all these things we shall have to have professional cold war practitioners of our own, who have made an intensive study of the tactics and strategy of international communism in the cold war, who understand this strategy and these tactics; and who have been taught the art of parrying and counter- ing Soviet thrusts, on whatever plane they may occur. It is because I believe in the need for such a core of cold war specialists, that I have from the first supported the proposal to establish a Freedom Academy, where Govern- ment employees and university professors and business representatives about to leave for abroad could be given a rounded cold war education. Such an academy would be the free world's answer to the Lenin Acade- my. It would be the one way of putting an end to the situation in which we pit free world amateurs against Communist world professionals. We have been pushed around, insulted, outmaneuvered, outfought long enough. The Freedom Academy would be a declara- tion, to both our friends and our enemies, that we have at last understood the nature of the struggle and that we are getting down to the practical work of devising the- tools and training the manpower for victory. Unfortunately, the Freedom Academy bill seems to have bogged down in the American legislative process. The Senate Judiciary Committee, to which the bill was first re- ferred, reported on the measure favorably, describing it as one of the most important measures that had ever come before it for consideration. Two years ago this Septem- ber, in the closing days of the session, the Senate passed the bill by voice vote, with- out any recorded opposition. But the House committee to which it had been referred failed to take any action on it, and the measure died. The Freedom Academy bill was reintro- duced in February of 1961, sponsored by a remarkable broad bipartisan group of Sen- ators. On the Senate side, it was referred to the Foreign Relations Committee; and it has languished In the committee's pigeon- hole ever since, that time, I regret to say, without a report and without any hear- ings. I believe that the Freedom Academy bill must be unfrozen. I believe that public opinion can play a decisive role in bringing It out of committee and getting it passed. I believe that an organization like the junior chamber of commerce, which speaks fpr the America of today and tomorrow, could make a significant contribution to the establish- ment of a Freedom Academy by taking an ac- Approved For Release 2002/01/02 : CIA-RDP64B00346R000500030005-3 16236 Approved For FZ >R A,: -eRfj64BQD ILZ.200500030005-3 August 22 spectrum drugs remained the same while the price of penicillin dropped 96 per- cent. During the hearings it was em- phasized that any increase in costs af- fecting production of the broad spec- trum drug should also have affected pen- icillin, Mr. President, statistics compiled by the Federal Trade Commission show that the drug industry has by far the highest markup rate of any industry in the coun- try. In 1957 this industry showed a rate of return after taxes of 21.4 percent. Compare this with the figure for the next highest industry, 16.2 percent, and with the figure for all manufacturing, 11 per- cent, and one cannot help but con- clude that in certain instances some of the larger drug companies have abused their ability to operate by means of administered prices. The amendments of the Senator from Tennessee [Mr. KEFAUVER] would require compulsory licensing of prescription drugs where the price to the druggist represents a markup of more than 500 percent of the factory cost, including re- search, and to require that patent and license agreements on drugs be filed with the Commissioner of Patents to be avail- able to the antitrust agencies. Mr. President, I commend the great senior Senator from Tennessee [Mr. KEFAUVER] on the consistently outstand- ing service that he has rendered the Na- tion as chairman of the Subcommittee on Antitrust and Monopoly. He has been and continues to be a dedicated foe of the abuse of power and a diligent cham- pion of the rights and interests of the people. Mr. President, the time for drug law reform is now. Chemistry and drug com- pounds have advanced. New compounds can ease the pains of the human race, but they can cause terrible malforma- tions in babies, too. We need new laws to assure safe use of the new drugs. The old laws are inadequate for the. mid- ,,20th century; the old laws do not match tpe new chemistry. We must move the sibw-moving laws in an effort to keep the abreast of our fast-moving re- search. Only by law can the people be protedt?ed. Our sense of individual re- sponsib'flity, unsupported by law, has not proven alequate to protect the people. The new l ws must come now. j tive interest in the measure now pending be- r The proposed committee amendment fore Congress. I earnestly recommend it for your study. TIME FOR SAFETY IN DRUGS IS NOW Mr. YARROROUGH. Mr. President, 21/2 years ago; under the chairmanship of the distinguished senior Senator from Tennessee [Mr. KEFAUVER], the Senate Subcommittee on Antitrust and M[o- nopoly opened an investigation of abuses in the marketing of drugs. As the investigation progressed, shock- ing abuses in the drug manufacturing industry were discovered, forcefully in- dicating the need for corrective legisla- tion. - - The drug bill before the Senatb,rep,ce- sents the first fruits of this thorough and enlightening investigation of marketing practices of the drug industry. i The recent history of the drug Thal \ more thorough consideration than it can domide further demonstrates the need ?.zpow give each new drug application. for more effective regulation. A large- scale national tragedy was averted in that instance only by the determined and brilliant work of Dr. Frances Kelsey of the Food and Drug Administration. Legislation is vitally needed" to make it easier for bad drugs to be kept off the market, and for commercial pressures to be resisted, in the protection of the pub- lic interest. I am in favor of the proposed addi- tional committee amendments to the drug bill. While in certain instances I would favor a different approach, the ad- ditional - amendments represent an ef- fective answer for the different interests involved. METHOD OF ENFORCEMENT Under present law, the Government must follow a drawn-out procedure to prove a suspected drug is unsafe before the company can be forced to take the drug off the market. The proposed committee amendment, a major step forward, would allow the against suspected drugs, to take thenx Fourth. Require the Government to off the market if they create "an imam print and distribute information to doc- nent hazard" to the public health. tors about the usage, side effects, effec- The manufacturer would be entitled tiveness, and dosages of a drug. to a fair hearing, protecting him against Mr. President, I strongly support these unjust and uncalled-for action by the and the other proposed committee Government. This procedure protects amendments. the public health, and the rights of the PRICE REDUCTIONS manufacturer. The drug bill, as originally introduced EFFICACY on April 12, 1961, had three objectives: Under present law, a drugmaker can First, safer drugs; second, providing bet- market any -compound which can be - ter information to doctors; and third, shown to be safe. A manufacturer could price reductions. The present bill, with market plain water if he could find or the addition of the proposed committee create a market for it. - amendments, will accomplish the first However, one authoritative witness has two of these aims. - said in hearings that: The subcommittee's study of the drug No physician, or one who has ever been re- industry proved that in many instances sponsible for the welfare of individual pa- where so-called administered, or non- tients, will accept the idea that safety can competitive pricing policies exist, the be judged in the absence of a decision about need for price adjustment is clearly in- efficacy. dicated. The exorbitant prices charged The theory, I believe, is that no drug through noncompetitive pricing policies is safe if it fails to cure a disease for can be illustrated by comparing the rec- which cure is available. Nor is any drug ord of the noncompetitively priced, broad too "dangerous" if it would cure a fatal spectrum antibiotics with the record of disease for which no other cure is avail- the competitively - priced penicillin. able. From 1951 to 1960 the price of the broad LEGISLATIVI, PROGRAM AND ORDER FOIE\ADJOURNMENT UN- TIL 10 A.M. TQMORROW Mr. ROBERTS6,N obtained the floor. Mr. DIRKSEN. Ur. President, will the Senator yield? Mr. ROBERTSON. ``I yield to the Senator from Illinois with the under- standing that I will not lose my right to the floor. Mr. DIRKSEN. Mr. President, I should like to query the distinguished majority leader about the schedule for this afternoon and, if possible, the schedule for tomorrow also. Mr. MANSFIELD. Mr. President, in response to the question raised, I think the Senate ought to remain in session until around 7 or 8 o'clock tonight, and Approved For Release 2002/01/02 : CIA-RDP64B00346R000500030005-3 istration to pass not only on safety but also on claims for efficacy, both initially and at any future date. This is a good amendment. Drugmakers marketing drugs with a reasonable proof of value should not ob- ject to FDA review of the product. NEW DRUG APPLICATIONS Present law requires that the FDA act on a new drug application within 60 days or the manufacturer is free to market the drug. The proposed committee amendment would require the Govern- ment to take positive action before the drug could be marketed commercially. If the HEW Secretary did not act,'within 180 days, the applicant would have 30 days in which to request a hearing, which the Secretary would be required to hold 1t'-requently, the amount spent promot- ing a, drug actually exceeds the cost of making.. it. A major aim of certain drug manu- facturers tg to induce physicians to pre- scribe a drug, by the trade name rather than by the `generic name-the name used in formularies, teaching medicine, and so forth. The large number, of trade names pro- duces great confusion. To correct this, the committee has accepted amendments that would: First. Require that advertisements show the-generic name in large type and carry information on the drug's side ef- fects and effectiveness. Second. Require a drug label to show the Contents of the bottle or package, with the generic name printed in type at .least half as large as the trade nal'ike. ,"Third. Empower the Secretary oi; Health, Education, and Welfare to es- :'tablish generic names which will be