UNITED NATIONS SPECIAL FUND PROPOSAL FOR CUBA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000200170009-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: February 13, 2004
• Sequence Number: 9
• Publication Date: June 14, 1961
• Content Type: OPEN

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Council of United Nations Special Fund
has approved a project which will pour
$1,157,600 into an agricultural research
program in Cuba.
Apparently, the purpose of this project
is to enable Castro to carry on research
in agriculture designed to relieve the
Cubans of their reliance on sugar as the
principal product of their soil. The
newspaper account of this action relates
that the Governing Council acted over
the protests of the United States, but
also pointed out that 40 percent of the
Special Fund, raised by "voluntary"
contributions, comes from the United
States of America.
Madam President, I ask unanimous
consent to have printed in the RECORD,
at this point, the story by John Molle-
son which appeared in the New York
Herald Tribune of May 25, 1961, under
the heading "U.N. Votes C11ba $1,157,600
Over Protest by United States."
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
U.N. VOTES CUBA $1,157,600 OVER PROTEST BY
UNITED STATES
(By John Molleson)
UNITED NATIONS, N.Y., May 24.-The United
Nations Special Fund today approved a
$1,157,600 grant to the Cuban Government
for agricultural research. The step was
taken by the Fund's 18-nation Governing
Council despite the expressed reservations of
the United States, which contributes 40 per-
cent of the Fund's annual budget.
Diplomatic sources said the United States
based its reservation on a changed economic
situation in Cuba in recent months. Live-
stock herds have been deciminated, Cuban
agronomists have lost their jobs, and Cuba
has shown a reluctance to cooperate with
other multilateral aid programs, it was said.
Some members of the Council, it was re-
liably reported, agreed with the United
States, while other nations concluded that
the American objections were politically
motivated. The Council is composed of nine
members from contributing countries and
nine from receiving countries.
AIM OF PROJECT
The aim of the Cuban project is to expand
agricultural research, with special attention
to livestock, production, soil classification,
conservation and crop diversification. Cuba
will contribute $1,878,000 to the 5-year proj-
ect under the terms of the agreement
worked out between the U.N Food and Agri-
culture Organization and the Cuban Gov-
ernment last February.
In accordance with tradition, no vote was
taken at today's session of the Governing
Council. In the discussions of projects only
economic considerations are theoretically
allowed to control the decisions.
While expressing its reservations, the
United States stated its confidence that Paul
Hoffman, managing director of the Fund,
would make every effort to determine if the
project could be carried out as originally
planned.
Mr. BRIDGES. Madam President,
although the Herald Tribune has a very
high reputation for accuracy, I could
scarcely credit my senses when I read
this extraordinary story. I requested
the staff of the Appropriations Commit-
tee to verify this report. I have here
a memorandum headed "U.S. Action on
CONGRESSIONAL RECORD -SENATE
U.N. Special Fund Project in Cuba."
This document is not a newspaper story.
This is an official report.
I ask unanimous consent to have it
printed in the RECORD at this point.
There being no objection, the state-
ment was ordered to be printed in the
RECORD, as follows:
Subject: U.S. action on U.N. Special Fund
project in Cuba.
The project calls for an allocation by the
Special Fund of approximately $1.1 million
to assist in the expansion of agricultural
research at the Central Experimental Station
in Santiago de Las Vagas. This project, pri-
marily of a research nature, will extend over
a period of 6 years. The Cuban Government
is required to contribute approximately $1.8
million. The Cuban project was I of 42 pro-
posed projects reviewed by the Governing
Council at its semiannual meeting on May
23-24.
The U.N. Special Fund derives its resources
from voluntary contributions pledged an-
nually. Pledges for 1961 are about $48 mil-
lion, of which 40 percent is contributed by
the United States on a matching basis.
There are 18 nations represented on the
Governing Council--9 from more developed
countries and 9 from less developed coun-
tries. The present membership includes, in
addition to the United States, France, Italy,
Sweden, Japan, the United Kingdom, Canada,
Mexico, Guatemala, the Netherlands, India,
Senegal, Pakistan, Ghana, Thailand, Argen-
tina, Yugoslavia, and the U.S.S.R.
All projects recommended by the manag-
ing director (Paul Hoffman) so far have
been approved without a formal vote after
project by project discussion. There are
precedents for objections to individual proj-
ects: for example, the U.S.S.R. objected to a
project for the Republic of China (Formosa)
and the U.A.R. objected to a project for
Israel. Both were approved by the Govern-
ing Council. The Special Fund charter pro-
vides that Special Fund assistance shall not
be means of political or economic interfer-
ence or be accompanied by political condi-
tions. The United States has consistently
maintained that the integrity of economic
and technical institutions of the U.N. be
preserved against the intrusion Of liti 1
o
o ca
18 members of the Governing Council
of the United Nations Special Fund show-
ing amounts they pledged for 1961, the,
amounts paid in, and the balance due in
each case
Balance
due
1. Argentina----------
$97,561
$1, 557
$96,004
2. Canada --------- -_-
2,350,000
2,359,000
0
3. France_____________
1, 072, 056
607, 649
4514,417
4. Ouatalnala--------
8, 000
8, 000
S. Ghana-------------
0
0
0
6. India--------------
1,750,000
1,750,000
0
7. Italy ---------------
1, 350, 000
750, 000
000, 000
8. Japan --------------
1,422,483
1,422,483
0
9. Mexico__.___-__
34,000
34,000
0
10. Netherlands_______
2,561,436
2,561,436
0
11. Pakistan-----------
129,998
129,998
0
12. Sonagal._-_______--
140,000
0
40,000
13. Sweden --____-_---
2,100,000
2,100, 000
0
14. Thailand ---_____--
160, 000
160,000
0
15. U.S.S.R...........
1,000,000
1,000,000
0
16. United Kingdom__
5, 000, 000
5, 000, 000
0
17. United States______
18, 811, 869
17, 8114,143
947,726
18. Yugoslavia--------
192,000
192,000
0
1 This pledge was announced for the U.N. Special
Fund and the U.N. Technical Assistance Fund, but the
allocation of a portion to these funds has not been made.
2 The United States agrees each year to contribute an
amount equivalent to 40 percent of the total amount
collected.
Mr. BRIDGES. Madam President, it
is hard to believe-but it is true. The
United Nations Special Fund approved,
on the recommendation of its managing
director, a project to hand over to Castro
nearly half a million American dollars.
Even more incredible, but also true, the
managing director of the Special Fund
who recommended this project is an
American-Paul Hoffman.
And, equally startling, but also true,
the protest lodged by the representative
of the United States was not on the
grounds that Castro is a blackmailer, a
blood-soaked dictator who denies his
nation the right to vote, a bandit who
villifles our leaders and the clergy of his
own nation, the leader of an outlaw gov-
ernment with which we have broken
diplomatic relations-no, none of these
p
motives.
things are protested. Our U.S. delegate At the Council meeting, the United States objected on "technical, economic, and
administrative grounds."
objected to the project on technical, eco-
nomic and administrative grounds based Madam President, it is high time the
largely on conditions in Cuba which have members of the Appropriations Commit-
arisen since the project originally was tee of the Senate did some objecting on
screened by the Special Fund staff. Our "technical, economic, and administra-
representative questioned the successful 1m- tive grounds" before we approve any
plementation of the project under present further outlay of taxpayers' money for
conditions in Cuba and his statements were such nonsense as this contribution to
made a matter of record. He stated that we Castro.
have complete confidence in the managing
director and the staff of the Special Fund I plan to ask some very "technical"
and are assured that the project will not go questions about the "administrative"
forward until they have satisfied themselves aspects of this $48 million fund and the
on the questions we have raised and that "economic" reasons why the United
the project can be undertaken successfully. States should contribute 40 percent of
Several other delegates supported the need that amount.
for careful consideration of the objectives
raised by the United States. In view of the Whether the United Nations knows it
fact that approval by the Governing Council or not-the American people know
merely constitutes authorization to the Castro is an enemy of the United
managing director to enter into detailed States-you know it, Mr. President, and
negotiations, the effect of the U.S. position I know it. I, for one, do not propose
was to gain assurance that the project would to approve a program to give the enemies
receive further careful study. This was done of the United States any handouts from
without damaging the integrity of the Spe- the pockets of the American taxpayer.
cial Fund, with our statement making clear p the grounds for the U.S. position. No vote To me it is inconceivable that we
was taken on any of the projects, in accord- should condone this action. It is incon-
ance with precedents of the Special Fund. ceivable, too, that we should have in
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CONGRESSIONAL RECORD - SENATE June 4
Cuba at the present time a group of
so-called technical experts negotiating
with Castro on tractors, or bulldozers,
for the release of political prisoners.
All these things are almost beyond the
realm of comprehension. Here is a great
power, the United States of America,
that has proud traditions, that has
shown every friendship for the country
of Cuba, that fought a war to make
Cuba free, that has maintained the econ-
omy of Cuba by subsidizing the sugar
crop for a long period of years, and now,
one after another, we are taking steps
which, to my mind, stultify our senses.
This last event, which I mentioned,
paying taxpayers' money, through
the United Nations, to a country that is
threatening us and is now holding us
up for ransom and blackmail, is more
than I can stand for in silence.
There may be some people around
this country who enjoy seeing American
citizens negotiate a ransom agreement.
I just want to register the fact that there
is one Senator who does not like it, who
protests it; and I hope this country will
wake up before it is too late.
It is shocking to find the United Na-
tions being used for the purpose of pay-
ing money to Cuba when we have at the
moment such strained relations with
Cuba, and when we have now-even
though it is a private committee-a
group of technicians negotiating to pay
blackmail and ransom. It just does not
make sense.
I predict further trouble, nothing but
trouble, in the months and years ahead.
The sooner we face up to it, the better.
People who like to close their eyes to
all that is going on are welcome to close
them. My eyes are open. They have
been open for some time. Two and a
half years ago I stated my views predict-
ing what Castro meant to this country-
that he was a menace to the freedom of
his own country. Everything that I
warned would happen has come true, and
more. I think some people now finally
should be awakened to the danger.
Mr. KEATING subsequently said:
Madam President, I wish to say a few
words about the matter which the Sen-
ator from New Hampshire discussed a
few moments ago. I was astounded that
our delegate to the United Nations had
not taken a more forceful position with
reference to the payment to Cuba. If
the Senator from New Hampshire were
sitting, as I was sitting this morning, and
as the distinguished junior Senator from
'Connecticut and other members of the
Internal Security Subcommittee have
sat, in hearings about the Fairplay for
Cuba Committee, he would understand,
as I am sure he does understand, and as
members of the committee understand,
that the Fairplay for Cuba Committee
has developed into simply a pro-Com-
munist organization. There may have
been some sincere people in it in the
beginning, and there may still be, but
the organizers of it and the active mem-
bers are following the Communist line
completely.
The Senator from New Hampshire is
being very realistic when he points out
what we are up against in Castro's Cuba,
I congratulate him on his remarks.
PROPOSED SUMMER RECESS OF
CONGRESS
Mr. McGEE. Madam President, I
ask unanimous consent to have printed
in the RECORD at this point as a part of
my remarks an editorial entitled "Full-
Time Job," published in the Washington
Post of June 14, 1961, regarding a pro-
posed summer recess of Congress, and
pointing out the necessity for full-time
operations, with reasonable allowance
for summer vacations, campaigning, and
contacts with constituents.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows :
FULL-TIME JOB
Congress seems to be settling down to its
hot weather siege in Washington. Hope that
it might finish its work by the end of July
are steadily fading, and most of the wishful
talk is now of adjournment by Labor Day.
Even that target date seems to be enveloped
In a deep haze because of Senate Majority
Leader MANSFIELD'S determination to bring
out of the Rules Committee a proposal to
curb filibustering in the Senate.
The numerous unfinished tasks are usually
cited as an argument against the summer re-
cess for which many Congressmen have been
pleading. We think that they point in the
opposite direction. They suggest that the
idea of Congress finishing Its legislative
work from January to July or August is
really an illusion and that the Congress
would do well to acknowledge the necessity
for full-time operations, with reasonable al-
lowance for summer vacations, campaigning
and contacts with constituents.
The chief opposition to any change in
thinking about the congressional sessions
seems to come from Speaker RAYBURN, who
derides talk of a summer recess as "non-
sense." Maybe this means nothing more
than that Texas is hotter than Washington
in summer. A Congressional Quarterly poll
indicates that a majority of those who re-
sponded (175) are willing to let the present
arrangement stand, but this is far short
of a majority of the total membership, and
109 specifically favored a summer recess. We
surmise that this number will grow as more
of the younger and less inflexible Members
come to realize that serving in Congress is a
full-time job.
GOALS OF RESOURCE DEVELOP-
MENT
Mr. KEFAUVER. Madam President,
the Honorable Stewart L. Udall, Secre-
tary of the Interior, did my State of Ten-
nessee the honor of appearing before a
joint meeting of resource development
groups in Fayetteville recently.
This meeting, sponsored by the Ten-
nessee River and Tributaries Associa-
tion and by the Elk River Development
Association was an important landmark
along the road to great achievements
such as have been exemplified by the
Tennessee Valley Authority over the
years.
It marked a vigorous stride into a New
Frontier. The future growth and devel-
opment of our economy, not only in Ten-
nessee, but in many other portions of our
Nation relies upon leadership such as
that offered by Secretary Udall and
groups similar to the Tennessee Rivers
and Tributaries Association and the Elk
River Development Association.
Mr. Udall's remarks sounded a strong
keynote which should give encourage-
ment to all those seeking progress toward
our goals of resource development.
I ask unanimous consent that Mr.
Udall's speech be printed in the RECORD
at this point in my remarks.
There being no objection, the address
was ordered to be printed in the RECORD,
as follows:
ADDRESS BY HON. STEwART L. UDALL, SECRE-
TARY OF THE INTERIOR, AT THE TENNESSEE
RIVER TRIaUTARIES ASSOCIATION AND ELK
RIVER DEVELOPMENT ASSOCIATION, FAYETTE-
VILLE, TENN., MAY 12, 1961
You do me a unique honor in asking me to
talk with you about development of water
resources. You were in the frontlines of
the long battle for water development in this
region when I was a schoolboy in a little
Arizona ranch town. You were among the
first New Frontiersmen because you were
pioneers in a coordinated, comprehensive
river development plan. To all of you resi-
dents of the Tennessee Valley, the subject
of water and its planned control and use is
far from novel.
I understand your valleywide association is
only slightly more than a year old. You can
accomplish much through joint and coor-
dinated action, and you hold it within your
power to be of considerable assistance to the
directors of the Tennessee Valley Authority.
You are holding fast to the original brilliant
concept of TVA. You well realize that we
can no longer afford to be piecemeal in our
development of water resources. We must
devise plans which will transcend the inter-
ests of individual localities or agencies, and
which will conform to a broad plan of inte-
grated development of all the resources of a
great watershed. This is no time for stand-
patters, it isno time for the overly cautious
approach to resource development-it is a
time for broad-gaged planning and bold ac-
tion. President Kennedy has told us, "Fail-
ures to act now may be opportunities lost
forever."
Years ago you and other far-sighted men
set the pattern. You saw the opportunities
available in harnessing the mighty Tennessee
and making it work for mankind. In so
doing, you made ,the three letters TVA
synonymous with the idea of overall basin
development.
It wasn't a simple matter. I'm sure many
of you vividly remember the slow and often
disappointing struggle which you underwent
before TVA became a reality. Perhaps by
now, though, that stirring story is "old hat"
to some of your neighbors in this valley. I
know that you here tonight, representing
various area development associations, have
not forgotten and will not forget.
The world outside this beautiful valley of
yours continues to hold up TVA as a shining
example of the best that man can accom-
plish in utilizing nature. Just 6 days ago,
the Christian Science Monitor carried a long
story about the Cauca Valley Corp., a new
river development effort in the South Amer-
ican nation of Colombia. It quoted the
English-speaking general manager of the
CVC as saying, "We think we are admirably
suited for a TVA-type development." It isn't
the admittedly great water development
works of Russia that these South Americans
look to as a guide-it is your own, our own,
TVA. And so it goes, everywhere in the
free world. Do not, yourselves, become im-
mune to the great accomplishments around
you.
Not all of the development of the Ten-
nessee River region is to be spoken of in the
past tense. Part of the job still remains
to be done. I'm sure you recall the words
of the late George Norris who said in his
autobiography:
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1961 CONGRESSIONAL RECORD - SENATE
ciation for Retarded Children, in profes-
sional groups, like the American Academy of
Pediatrics and the Association on Mental
Deficiency-would also play an important
part in developing what I believe could be
a landmark toward new action.
3. The research phase alone on mental re-
tardation is an enormous one. It involves
public and private research, study by the
National Institute of Neurological Disease
and Blindness, the National Institute for
Mental Health and other Federal units. It
includes the historic collaborative study on
perinatal problems, which of course, cuts
across the board to a host of research areas.
A consultative study as proposed by this
amendment could look at the "big picture"
of all biomedical research, bearing on mental
retardation-its cause, diagnosis, therapy (to
the extent possible), etc.
4. Fortunately, H.R. 7035, like earlier ap-
propriation bills, takes significant note of
the retardation problem. H.R. 7035 soundly
provides $1 million more for teachers of the
mentally retarded; this is one of the most
important needs in this field. It is, how-
ever, but one of the many phases of the
needs of the mentally retarded-medical, ed-
ucational, vocational, parental, community,
etc.
5. One of the virtues of taking a rounded
look at the total needs of the mentally re-
tarded is that it will bring to light what
might be termed "gap areas." In other
words, we will find out what is now lacking
in services to the mentally retarded.
6. There is much to be gained and nothing
to lose from a consultative study of this
nature.
Surgeon generals' consultative groups
have in the past provided invaluable guid-
ance, as have HEW Secretary advisory groups,
such as the one proposed herein.
The need for this particular study has
been carefully determined; its direct and
indirect dividends could be immense to
literally millions of families across the
Nation. It would lay the basis for well-
rounded, instead of piecemeal or ad hoc
action in the future.
INDEPENDENT OFFICES APPROPRI-
ATION BILL, 1962-AMENDMENT
Mr. JAVITS (for himself and Mr.
KEATING) submitted an amendment, In-
tended to be proposed by them, jointly,
to the bill (H.R. 7445) making appro-
priations for sundry independent execu-
tive bureaus, boards, commissions, cor-
porations, agencies, and offices for the
fiscal year ending June 30, 1962, and for
other purposes, which was referred to
the Committee on Appropriations and
ordered to be printed.
ESTABLISHMENT OF PEACE CORPS-
ADDITIONAL COSPONSORS OF
BILL
Mr. HUMPHREY. Madam President,
I ask unanimous consent that the names
of Senators DOUGLAS, Moss, and NEU-
BERGER be added as cosponsors to S. 2000,
a bill to establish a Peace Corps, which
I introduced on June 1 on behalf of my-
self and Senators FULBRIGHT, PELL,
CLARK, SMITH Of Massachusetts, MCGEE,
HART, and GORE.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
EXEMPTION OF CERTAIN INDIVID-
UALS FROM OLD-AGE, SURVI-
VORS, AND DISABILITY INSUR-
ANCE PROGRAM - ADDITIONAL
COSPONSOR OF BILL
Mr. GOLDWATER. Madam Presi-
dent, on June 7, 1961 the distinguished
junior Senator from Pennsylvania [Mr.
CLARK] introduced a bill to exempt from
coverage under the old-age survivors
and disability insurance program self-
employed individuals who hold certain
religious beliefs.
I believe this to be a very worthy bill.
I have discussed the proposal of my ap-
pearing as a cosponsor of the bill with
the distinguished junior Senator from
Pennsylvania, and he has agreed.
Therefore, I ask unanimous consent that
my name may appear as a cosponsor of
Senate bill 2031.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
AMENDMENT OF INTERNAL REVE-
NUE CODE OF 1954-ADDITIONAL
COSPONSOR OF BILL
Mr. WILLIAMS of Delaware. Madam
President, yesterday I introduced S.
2069. On the next printing of the bill,
I ask unanimous consent that the name
of the Senator from Wisconsin [Mr.
PROXMIREI be added as a cosponsor.
The PRESIDING OFFICER. Without
objection, it is so ordered.
THE 100TH ANNIVERSARY OF EN-
ACTMENT OF THE HOMESTEAD
ACT-ADDITIONAL COSPONSORS
OF BILL
Under the order of the Senate of
June 7, the names of Senators CASE of
South Dakota, MORSE, and PROXMIRE
were added as additional cosponsors of
the bill (S. 2027) to provide for the
issuance of a special series of postage
stamps in commemoration of the 100th
anniversary of the enactment of the
Homestead Act, introduced by Mr. CUR-
Tis (for himself and other Senators), on
June 7, 1961.
OBSERVANCE OF CENTENNIAL OF
ENACTMENT OF THE HOMESTEAD
ACT-ADDITIONAL COSPONSORS
OF JOINT RESOLUTION
Under the authority of the order of
the Senate of June 7, 1961, the names of
Senators HUMPHREY, CASE of South Da-
kota, MCCARTHY, MORSE, and PROXMIRE
were added as additional cosponsors of
the joint resolution (S.J. Res. 98) to pro-
vide for the observance of the centen-
nial of the enactment of the Homestead
Act, introduced by Mr. CURTIS (for him-
self and other Senators), on June 7, 1961.
HOUSE BILL PLACED ON CALENDAR
The bill (H.R. 7218) "An act to pro-
vide that the authorized strength of the
9571-
Metropolitan Police force of the District
of Columbia shall be not less than three
thousand officers and members," was
read twice by its title, and placed on the
calendar.
NOTICE OF RECEIPT OF NOMINA-
TION OF ROBERT M. MCKINNEY
TO BE AMBASSADOR TO SWITZER-
LAND
Mr. FULBRIGHT. Mr. President, as
chairman of the Committee on Foreign
Relations, I desire to announce that to-
day the Senate received the nomination
of Robert M. McKinney, of New Mexi-
co, to be Ambassador to Switzerland.
In accordance with the committee
rule, this pending nomination may not
be considered prior to the expiration of
6 days of its receipt in the Senate.
ENROLLED BILLS AND JOINT RES-
OLUTION PRESENTED
The Secretary of the Senate reported
that on today, June 14, 1961, he repre-
sented to the President of the United
States the following bills and joint reso-
lutions:
S. 847. An act to change the name of the
Army and Navy Legion of Valor of the United
States of America, Incorporated, and for
other purposes;
S. 1852. An act to authorize appropriations
for aircraft, missiles, and naval vessels for
the Armed Forces, and for other purposes;
and
S.J. Res. 65. Joint resolution designating
the week of May 13-19, 1962, as Police Week
and designating May 14, 1962, as Peace Offi-
cers Memorial Day.
ADDRESSES, EDITORIALS, ARTI-
CLES, ETC., PRINTED IN THE AP-
PENDIX
On request, and by unanimous con-
sent, addresses, editorials, articles, etc.,
were ordered to be printed in the Ap-
pendix, as follows:
By Mr. SPARKMAN:
Address entitled "Economic, Social, and
Political Implications of Community De-
velopment," delivered at the closing ses-
sion of the Inter-Regional Conference on
Community Development, May 6, 12, Seoul,
Korea.
By Mr. HUMPHREY:
Address delivered by Senator LONG of Mis-
souri to the American Stockyards Associa-
tion, at St. Joseph, Mo., on June 7, 1961.
By Mr. SMATHERS:
Address delivered by Secretary of Labor
Goldberg at dedication of Library of Hebrew
Union College-Jewish Institute of Religion,
Cincinnati, Qhio, June 3, 1961.
By Mr. BYRD of Virginia:
Address entitled "Parks for America Is Our
Common Concern," delivered by National
Park Service Director Conrad L. Wirth at the
annual meeting of the Outdoor Writers' As-
sociation of America, at Grand Teton Na-
tional Park, Wyo., June 2-9, 1961.
By Mr. HARTKE:
Address of Mr. Edward H. Foley at testi-
monial dinner honoring him for his service
as General Chairman of the 1961 Inaugura-
tion.
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CONGRESSIONAL RECORD -SENATE June 14
By Mr. BRIDGES: DEFENSE CONTRACT AWARDS company the regularly issued report of
Article entitled "A Dangerous Business: Mr. ENGLE. Madam President, last the Secretary of Defense, entitled "Mili-
Government Seen Involved If Tractor Deal Is tary Prime Contract Awards by State."
Made," written by Roscoe Drummond and week the distinguished Senator from New No reading of the figures in these reports
published in the New York Herald Tribune York [Mr. KEATING) renewed his criti-
benefit of
of May 26, 1961, relating the proposed ex- clam of what he termed a "great se should this be made explanatory without language. I the regret that
change of tractors for Cuban prisoners cap- parity" in the distribution of defense
tured during the recent abortive invasion of work. in making this assertions on the matter
Cuba. In his remarks in the Senate on June of defense contract awards, Senator
Article entitled "Accepting Castro's Swap KEATING fails to read this very im-
Is Immortal," written by George E. Sokolsky 6, Senator KEATING stated that the gap portent language into the RECORD.
and published in the New York Journal in the distribution of defense procure- I think the footnotes bear a rereading
American of May 29, 1961, relating to the ment dollars is apparently increasing,
proposed exchange of tractors for Cuban rather than decreasing, under the new at -
prisoners. administration. He pointed out that. It this point: emphasized that data on prime con-
Editorial entitled "What Goes On Here?" "one State, which is neither the biggest tracts by State do not provide any direct
published in the Manchester Union Leader nor the most populous, gets nearly one- indication as to the State in which actual
of May 31, 1961, regarding the proposed ex- production work is done. For the majority
change of tractors for Cuban prisoners. quarter of the value of all military prime of the contracts with manufacturers, the
Editorial entitled "Nazis Once Offered To contract awards"; and that "during the data reflect the location of the plant where
Trade Jews for Trucks-The Morals of Dicta- first 3 months of 1961, California got the product will be finally processed and
tor Castro Are Similar," published in the 23.3 percent of defense procurement assembled. Construction contracts are
Knoxville, Tenn., Journal of May 27, 1961, dollars-more than twice as much as shown for the State where construction is to
relating to the proposed exchange of tractors New York." be performed. However, for some contracts
for Cuban prisoners. Since Senator KEATING continues to with large companies with more than one
By Mr. ANDERSON: plant, and for contracts with service, whole-
Editorial comment by various newspapers make his charges on an area basis, I sale, or other distribution firms, the location
on the obstacles in connection with Geneva should like to point out that the State is usually the address of the contractor's
nuclear test ban talks. of California comprises an area of main office.
Editorial entitled "Saving the Park 156,750 square miles. The area of six of More important is the fact that the re-
Lands," published in the Washington Post of the industrial States on the eastern sea- ports refer to prime contracts only, and can-
June 14, 1961, relating to the establishment board totals 123,158 square miles. Yet not in any way reflect the distribution of the
of the George Washington Memorial Parkway these States combined, smaller in size very substantial amount of material and
and purchase of land for future park sites. component fabrication and other subcon-
By Mr. BUSH: than California, received 32.6 percent tract work that may be done outside the
Editorial on the dangers of massive deft- of the defense contracts during the first State where final assembly or delivery takes
cit spending, published in the Wall Street 100 days of the Kennedy administration. place.
Journal of June 9, 1981. These States are New York, Connecticut, think it should be clear to everyone
By Mr. PROXMIRE: Pennsylvania, New Jersey, Massachu- I how h k it is to o get a distorted picture
Editorial tributes to the late Daniel Web- setts, and Maryland-a contiguous bloc.
ster Hoan, of Milwaukee. In his June 6 remarks, Senator KEAT- if we fail to use this language as a back-
By Mr. THURMOND: also made the statement that by drop in interpreting the figures on mili-
Editorial on confusion resulting from too ING comparison to the Eisenhower admin- tary prime contract awards.
much governmental - interference and regu- In any case, the points that Senator
lation of business enterprise, published in istration, the present administration KEATING raises ignore the fact that the
the Wall Street Journal of June 14, 1961. "seems to be causing a real depression
Letter on the current crime wave, written for New York State defense contractors." basic asic criteria
areiteria neither used in geography, , defense
d un-
by John Wyndham to the editor of the Na- Without arguing Senator KEATING'S
tional -
tional Review, and published on June' 17, point, I wish to cite some figures to show employment, nor politics. They shy
1961. that California's defense industry also clear of the fact that the Department of Mr. Be en G entitled "Pro Ect has its problems. Defense makes its awards, first and fore-
Prestige," entitled "Protecting Presidential most, on the basis of capability, expe-
lished written by Claude Witze and pub- Figures prepared by the Bank of rience, acost.
lished in the Air Force magazine. America indicate that employment in the experienced
By Mr. RANDOLPH: California's defense industry complex in In e, and
fCforcos the we plant have tcapabi capability, and the
Article by Mr. Phil Conley, entitled, "Birth March of this year was more than personnel,
of West Virginia." 20,000 jobs less than its peak in 1959. product quality that enable the Federal
Government to get the best possible
By Mr. WILEY: aircraft categories was
e Honorable e Employment 48,000 below in its 1959 peak. The report product at the lowest possible total cost.
Article Again," "How To Start
Luther Booming Agai Hodges, n," Secretary written of f the Commerce, and d notes that-?no precise measurement of For more than 25 years the United
urrc, turned to 0 concerns in Cali-
18, in This Week magazine of June California's total share of defense States States for has tu Curt d its aeronautical and
18, 1961. procurement expenditures is possible fornia By Mr. KEATING: owing to the lack of detailed data on the aerospace needs. As a result, we have
Article containing questions and answers amount and geographical distribution of built up the comprehensive capacity to
about courses on communism to be taught subcontracting and the location of ape- tackle, with maximum efficiency and
in schools, published in the New York Daily cific work done under prime contracts." minimum time, almost every phase of
News of May 27, 1961. producing the modern weapons of war.
By Mr. COTTON: The Bank of America report also
Winning essays by New Hampshire high shows that 8.3 percent of California's We are living in the most critical pe-
school seniors in an essay contest sponsored total labor force were unemployed in riod of our Nation's history, and we can-
by the Manchester (N.H.) National Bank, March 1961 an increase of 37.8 percent not allow defense procurement to be
on the subject of communism. over 1960. This represents an unem- awarded on any basis other than compe-
By Mr. DAVITS: ployed force of 540,000, or about 10 per- tence and excellence. As long as great
cent of the country's total unemployed numbers of people who possess the nec-
Resolution adopted May 9 and 16, 1 the Forum of the Men's Class of the he
Riverside Church in New York City, regard- of 5,495,000 I may add that the De- essary skills. would rather live in Call-
ing the foreign-aid program. partment of Labor, in its May 13 report, fornia, and as long as contracts are
By Mr. ALLOTT: places California's State insured un- awarded in the best interest of the
Letter to him dated April 21, 1961, from employment at 6.8 percent-compared country, I will continue to rise to the
Byron W. Hansford, Colorado commissioner with 6.1 percent for New York, and 5.9 defense of California's carrying out its
of education; resolution dated March 9, 1961, percent for the country as a whole. responsibility as a major producer of our
of Colorado State Board of Education, rela- defense needs.
tive to the establishment of a universal To return to Senator KEATING's charge
language; and article entitled "Man Against of "great disparity" in the distribution
Babble," written by Jacob Ornstein, which of defense work in the United States: UNITED NATIONS SPECIAL FUND
will appear hereafter in the Appendix. On April 24 of this year, I made some
PROPOSAL FOR CUBA
By Mr. HRUSKA: extended remarks in the Senate on the
Article entitled "Arlene Deena Bridge subject of defense procurement con- Mr. BRIDGES. Madam President, it
Friendship," " published in the Denver Post, ,
issue of June 11, concerning visit of young tracts. At that time I called attention is a shocking experience to pick up a
Filipino woman to Nebraska. to the explanatory footnotes that ac- newspaper and read that the Governing
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1961 CONGRESSIONAL RECORD - APPENDIX A4371
The U.S. Department of Commerce sent suppose he wants to know where the best I was so taken aback by his prompt re-
export survey teams to key areas of the world domestic sales opportunities are. He can sponse that I asked, "Why?"
last year. Our experts who went to Aus- draw on $135 million worth of our census He said, "Because you're the first person
tralia and New Zealand came back and told statistics, some of them broken down as fine who's ever been interested enough to ask
us of a startling number of cases in which as a city block. me." -
potential new customers had been almost lit- HET,P IN SELLING OVERSEAS SECRETARY HODGES' THREE-POINT CODE FOR
erally'turned away. They heard complaints If he wants to sell overseas (and I hope SALESMAN
from executives of more than 100 firms more manufacturers will-today less than 1. The customer is a human being. As
"down under." Though growing in the spe- 5 percent do) we can help him with infor-
cial soil of the export situation, most of mation we and the State Department collect such, he deserves and will get my respect and
them originate in the same root as our sell- from 260 oversea points. (Much of this ma- courtesy whether he buys anything or not.
ing troubles at home-we're just not being terial is published in our Foreign Commerce 2. The customer is an individual. He has
courteous to the customer. Weekly, available for $6 a year from the U.S. his own special needs and feelings. I will
I was shocked and ashamed to hear that Government Printing Office. A bit of sell- seek to understand his feelings, just as I
Australian businessmen, and many of their ing by Luther Hodges, with no apologies hope he will try to understand mine.
3 The customer has a right to informa-
colleagues in other lanas, sala Lua.5 ' eau,?- made.) tion and the salesman an obligation to pro-
ber of U.S. firms failed to answer their mail, Businessmen and women who have tapped vide it. As a salesman who takes pride in his
acknowledge orders, or supply needed tech- the resources of our Washington or field of-
nical information. fices often tell us that this act was the job, I will make it a point to learn all there
The situation is similar in our own back- starting point of their selling-success stories. is to know about my merchandise.
yard-Mexico and Central America. Though Mrs. Helen Sullivan, export manager of
we are still the leading supplier there, our Mixermobile Manufacturers, Portland, Oreg.,
share of the market has been declining, offers this colorful example:
while West Germany, Japan and others are "The first step we took was to analyze t Cuba Moves Into U.S. Politics
improving their positions. Why? Not just the foreign market with the help of the local
lower prices. The 150 local businessmen department of commerce. EXTENSION OF REMARKS
f
our
interviewed in this area said we could over- "It was up to us to make each one o
come a price disadvantage of as much as 15 prospective dealers feel that he was the only OF
on such matters as credit, delivery, service,
parts, and packaging.
Thoughtful consideration to the needs of
the customer-that's our problem every-
where. But so pitifully little is being done
about it in relation to the need! Only about
1 percent of the people engaged In sales
and service are taking extension courses in
distribution. And less than 10 percent of
industry's research dollar goes to improve
the efficiency of marketing the products that
are improved with the other 90 percent.
NEEDED: 6 MILLION EXPERTS ON SELLING
Without more training, where will we get
the 6 million additional people who will be
needed during the next decade in sales, cleri-
cal, and service occupations? How will they
learn to sell and service the deluge of new
products that's on the way-even today,
about one-third of all sales revenue is from
products that did not exist 10 years ago.
Salesmanship alone, of course, will not
provide a magic solution to our complex eco-
nomic problems. The President has sent to
Congress a whole package of constructive
proposals to help us grow. But I believe
salesmanship can give just that extra push
we need to get moving toward the new
heights of which our economy is capable.
If we did a better selling job at home, it
could bring about a slight but important
shift in how we consumers divide our in-
come between spending and saving. During
the prosperous year 1955 we spent 93.7 per-
cent of our personal income after taxes; in
the last quarter of 1960, only 92.4. A 1-per-
cent shift in favor of spending would mean
sales of about $3,500 million more goods.
Once consumer goods start moving faster,
businessmen will be more inclined to invest
in modern machinery, which is a key to
prosperity at home to success in competing
for the export market.
If we project a vigorous desire to serve we
should also be able to do a much better job
of selling abroad. Today we send only 4
percent of our gross national product into
the channels of world trade, a far smaller
percentage than other nations. We-busi-
ness, labor, and government together--have
a heavy stake in increasing exports. For
business it means greater profits. For labor,
every $6,000 of export sales provides one job.
For the government, and that means for
all of us, it helps to keep the dollar sound,
as the President has pledged to do.
Any businessman who really wants to sell
his products or services at home or abroad
can get help from the U.S. Department of
Commerce.
Inns ms success was that we had.
HON. ROBERT H. MICHEL
OF ILLINOIS
"We followed with the very best possible IN THE HOUSE OF REPRESENTATIVES
service we could render. To illustrate: A Wednesday, June 14, 1961
cable from Stockholm advised us they had
a machine down at Kiruna, at the Arctic Mr. MICHEL. Mr. Speaker, I ask
Circle, and could we air freight the repair unanimous consent that the following
part. Well, I dashed downstairs to make editorial by Gould Lincoln contained in
sure we had the part, tagged it for export,
sent out an S 0 S for the boxer-carpenter, the Washington Evening Star, June 13,
and dashed back upstairs to make up the 1961, be reprinted in its entirely in the
shipping papers. Within 40 minutes that RECORD:
part was on its way to the airport. The CUBA MovES INTO U.S. POLITICS
Swedes now think that Scoopmobiles are the (By Gould Lincoln)
next best thing to nude bathing."
We may never face the same problem as Efforts to keep the Cuban problem out of
Mrs. Sullivan, but whether we're doing busi- partisan politics are fast going down the
ness across the Atlantic or on Broadway or drain. Both President Kennedy and former
Broad Street, let's take the "how can I help President Dwight D. Eisenhower have at-
you?" approach. tempted in the past to avoid this in the
Businessmen most study intensively the interest of a united front by this country
customer's needs and wants, using both Gov- In dealing with vital foreign affairs. Re-
ernment data and personal investigation. publican National Chairman WILLIAM E.
Then they should do some critical self-ques- MILLER, Member of Congress from New York,
tioning: "Is our product, in the form we now however, has brought the Cuban issue-as
make and package it, just what the customer between the two political parties-right out
can best use? Could we perhaps adapt it into the open. His vehicle was his state-
just a little better to his requirements?" ment in a television and radio interview
Having made sure what the customer with Senators Scott and Clark of Pennsyl-
wants, they face the all-important step of vania that President Kennedy had revoked
presenting the product to him. That boils an Eisenhower plan to give the anti-Castro
down finally to an effective person-to-person Cuban invaders air support. The Republican
contact. The best advertising in the world chairman said this was a fatal mistake on
will be useless if a rude or uninterested sales- the part of President Kennedy-since he
person handles the job. [Kennedy] had permitted the Cuban in.va-
We must face up to our growing need for sion and had allowed American support of
salespeople who radiate courtesy and an atti- the venture. Mr. Kennedy's second mistake,
tude of service to the customer, and have the Mr. MILLER insisted, was to announce at the
knowledge about the product to be really time of the invasion that the United States
helpful. Anyone who wants to make a career would use none of its Armed Forces to aid
in selling must recognize that it takes train- an invasion. In view of that statement,
ing, and from time to time retraining, to Mr. MILLER argued, how could any one expect
keep up with change. - anti-Castro Cubans in the island to rise up
against the dictator?
THE ONE WORD SECRET OF SELLING It was Senator JOSEPH S. CLARK, Democrat,
Some may ask, "Is a career in sales worth who first broached the subject of the Eisen-
that much effort?" I can testify that it is, hower plan for the invasion of Cuba during
both in financial reward and the satisfaction the interview with Chairman MILiF:R. As
that comes from being of service. Secretary of the Interior Udall did soon after
The problem of salesmanship is not a prob- the invasion of Cuba failed, Senator CLARK
lem for businessmen alone. What I am talk- charged that the invasion plan had been in-
ing about is an attitude toward people, which herited by President Kennedy from the Eisen-
concerns every one of us. It could be boiled hower administration. He added that if Mr.
down to the one word courtesy, defined as Kennedy had agreed to use U.S. Armed Forces
a regard for the other fellow. we would have violated our treaty obliga-
If we breathe this spirit into our transac- tions and that we would have been perma-
tions, we'll get results. I know I have always nently in the doghouse with other Latin
found this so. During my first campaign for American nations. Mr MILLER's response
public office, I introduced myself to a came quickly. While Mr. MILLER did not say
stranger and told him I'd like him to vote it, there is strong belief that had Mr. Eisen-
for me as Lieutenant Governor of North hower been in the White House when the
Carolina. "I will," he said. anti-Castro invasion took place, the invaders
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A4372 CONGRESSIONAL RECORD - APPENDIX
would have had air and naval support-or
there would have been no invasion.
BLACK EYE FOR UNITED STATES
The Cuban invasion fiasco has been a black
eye for the Kennedy administration that will
not down. Mr. Kennedy showed his courage
when he took on his own shoulders the re-
sponsibility immediately after Secretary
Udall made his statement that the whole
affair had been handed Mr. Kennedy by the
Eisenhower administration; that the plans
had been made under Mr. Eisenhower and
inherited by Mr. Kennedy to carry out. It
was a courageous statement by President
Kennedy and General Eisenhower declined
to be critical, declaring that the country
should back President Kennedy in any ef-
forts lie made to clean up the Cuban situa-
tion.
Nothing has so far been done to clean up
that situation. President Kennedy's trip to
Europe to meet with President de Gaulle,
Prime Minister Macmillan and Premier
Khrushchev shoved the Cuban problem into
the background for a time. But it is clear
from reports from all parts of the country
that Americans are exercised, disgruntled and
humiliated. The Castro proposal to trade
1,200 Cuban invaders for 500 American-made
tractors and the support given the proposal
by President Kennedy-as a private citizen-
aroused still further criticism of the admin-
istration. Democratic supporters of the
President have done their best to gloss the
thing over by saying that Castro has lost
ground in other Latin-American countries
by ihs callous and cynical proposal to barter
human beings for machines.
EFFORTS IN HEMISPHERE
,The only plan so far advanced by the Ken-
nedy administration to deal with Castro and
his pro-Communist government has been to
give economic aid to the other Latin-Ameri-
can countries, and to persuade the Organiza-
tion of American States to go along with an
anti-Castro, anti-Communist program.
President Kennedy sent Adlai Stevenson, our
Ambassador to the United Nations, on a tour
of the republics to the south of us to see
what could be done to improve our rela-
tions. The reports from this trip so far
have given no hope that the OAS will do
anything about Castro and his government
in Cuba.
Red Russia's Premier, Nikita Khrushchev,
is keeping the spotlight now on West Ber-
lin and Germany, on Laos and on nuclear
test-ban talks. Meanwhile, the Communist
drive to take over completely the Castro gov-
ernment in Cuba goes forward, very much
as the Communists operated to take over
the China mainland. In addition, Castro and
his government are receiving a lot of sympa-
thy and support from liberals and so-called
intellectuals in this country, who urge the
United States to give the Cuban dictator
pretty nearly everything he wants.
So far it's a gloomy outlook. If the Com-
munists take over Cuba, as they have vir-
tually done already, it is going to be a Her-
culean task to prevent the spread of com-
munism into other Latin-American nations.
The United States, as leader of the free world,
can scarcely regard such a prospect with in-
difference.
Democratic claims that armed intervention
in Cuba by this country would have been
and would be a violation of treaty obliga-
tions are not so clear when it is recalled
that part of our treaty obligations with the
OAS is to keep communism out of the West-
ern Hemisphere. Also, what did President
Kennedy mean when he told Castro he (Ken-
nedy) would not abandon Cuba to commu-
nism?
Tariff Policy
EXTENSION OF REMARKS
OF
HON. ABNER W. SIBAL
OF CONNECTICUT
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 14, 1961
Mr. SIBAL. Mr. Speaker, under leave
to extend my remarks, I would like to
have inserted iii the RECORD an article
from a recent issue of the Journal of
Commerce and the response to it of Mr.
Henry C. Wheeler, president of the Acme
Shear Co., of Bridgeport, Conn. Both
concern questions of U.S. tariff policy
and contain aspects of the questions that
I think should be considered by every
Member :
TARIFF AID PROGRAM FOR SMALL FIRMS
PROPOSED
WASHINGTON.-It has occurred to many
people that U.S. small businesses-not the
larger corporations-are today the most
seriously affected by a rising tide of import
competition.
Howard Piquet gave the matter a little
more thought, however, and came up with
an idea, one that could offer a way out of
the awkward entanglements that beset a
Government which tries to maintain a quali-
fled free-trade policy.
Dr. Piquet, senior economist with the
Library of Congress and one of the country's
top tariff experts, says simply that there is a
case to be made for protection of efficient
small businesses.
SKILLS NEEDED
He assumes that the national interest
would be served by the preservation of indus-
tries which help preserve special skills.
There also are considerations of employ-
ment, economic diversification, and national
security.
While the tariff at one time was the
"mother of the trusts"-that is, it served
the purposes of big business-Dr. Piquet says
that today it is significant only for protect-
ing smaller industries.
He cites the dreary muster of industries
which have gone to the Tariff Commission
for help-ax heads and ground chicory are
il:ustrative-and points out that most have
been turned down because they couldn't
meet the tests of the economic injury.
GOOD SOCIOLOGY
"The preservation of small business enter-
prise may be poor economics, but it may be
good sociology and an important force for
preserving democracy," he states.
This is precisely the point raised by Con-
gressmen and Senators who respond to the
pleas of constituents for protection. When
either the Tariff Commission or the Presi-
dent rejects-this point, as so often has been
the case, the legislators are then obliged to
oppose more general, and more important,
foreign trade and aid proposals from the
White House.
If the Government. decides it wants to
protect industries which contribute some-
thing special, Dr. Piquet says it can be done.
He has devised an efficiency formula to de-
termine which producer deserves protection
and which is to be steered into some other
line of work.
Other trading nations, told in advance
that artistic or social values will get such
protection, could adjust to the U.S. policy.
Other trading nations, fully apprised in
advance that artistic or social values require
June 14
such protection, could be made to under-
stand.
The lower wage rates prevailing abroad
give the foreign suppliers of high labor-
input products a distinct advantage and Dr.
Piquet has a point that it makes no sense
to open the door wide to indiscriminate
competition.
Arrangements to protect the efficient U.S.
small business and ease the inefficient coun-
terpart into some other line of work have at
least one advantage: They would help avoid
those unseemly wrangles that blow up when
the United States slaps a tariff on Icelandic
fish or a quota on Japanese cutlery.-J.F.K.
THE JOURNAL OF COMMERCE,
Washington, D.C.
(Attention of J.F.K.)
DEAR SIR: We read your Newsletter on
World Trade in the June 1 issue with great
interest, since we are in a small industry
that has been seriously hurt by imports.
You might be interested in one case h, s-
tory. We have manufactured household
shears and scissors since 1882 in an industry
that has probably never employed over five
thousand people. At one time we had a siz-
able export market, particularly to South
America. This is all gone. In 1950 there
were 27 companies employing from 5 to 400
people. Today-after two tariff reductions---
there are only about 9 or 10 of us left, with
several of these very close to closing their
doors. We applied to the Tariff Commission
for relief in 1954 and they recommended to
President Eisenhower that we should get
added protection. The President rejected
this. In 1958 we applied again and, al-
though many more companies had folded in
that 4 years, this time the Tariff Commis-
sion voted unanimously that we were not
being hurt.
Of course, each time a weaker company
goes out of business, this temporarily helps
those that are left. Thus when we applied
for relief, most of the companies were mak-
ing a profit and, apparently, that is why the
Tariff Commission says that we are not be-
Ing hurt. If carried to the extreme, this
means that we can't get any relief until there
is only one or two companies left and they
are losing money. At that stage, it could
well take-so long or be so expensive to apply
for and getprotection that our industry will
die, and the skills of the people and the spe-
cial equipment and tools needed will dis-
appear.
We recognize that the United States must
trade, but we can't see why a small group of
industries should have to bear the major part
of the burden. My company has spent many
hundreds of thousands of dollars over the
last 12 years and has, I believe, the most
modern equipment in the world for making
shears and scissors. Shall we ship this
equipment and know-how to some foreign
country with lower wage rates?
We wonder why it wouldn't be possible to
have a quota arrangement that would, at
least, protect an industry from being com-
pletely wiped out. Couldn't we say to other
countries-"You can have part of the U.S.
market, but we are going to save part of it
for our own companies"? Our industry
would be happy now if the Government
would let us keep even half of the U.S.
market. In some cases this has been done;
not by our Government but by the foreign
countries agreeing to hold down their ship-
ments to the United States. Should we be
dependent on the generosity of other-coun-
tries to decide whether our industry should
live or die?
Sincerely yours,
HENRY C. WHEELER,
President, the Acme Shear Co.
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CONGRESSIONAL RECORD - APPENDIX June 14
This is not to argue that everyone out of
work can find a job if he wants it. There
are many honestly unemployed, for whom
the unemployment compensation system
was designed.
Chiselers on the system drain the funds
which should go to the real unemployed, in
the form of larger checks for longer periods.
They also swell the statistics to alarming
proportions, obscuring the fact that the
main trouble is in key industrial areas which
have failed to engage in sufficiently vigorous
price competition, either for the domestic
or the foreign market.
No U.S. Action on Cuban Piracy
EXTENSION OF REMARKS
OF
HON. ROBERT H. MICHEL
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 14, 1961
Mr. MICHEL. Mr. Speaker, I ask
unanimous consent that the following
editorial by David Lawrence contained in
the Washington Evening Star, June 13,
1961, be reprinted in its entirety in the
RECORD:
No U.S. ACTION ON CUBAN PIRACY-JUSTICE
DEPARTMENT RAPPED FOR FAILING To PROTEST
HIJACKING OF AIRLINER
The Kennedy administration is likely to
come in for some severe criticism because it
is ignoring the right of American citizens,
traveling on commercial planes, to be safe-
guarded against attack in the air by citizens
of foreign governments.
The Department of Justice, which has been
busily engaged in trying to get political favor
by supporting the nonviolence crusades that
provoke violence in the South, has not found
time to do anything to secure the extradition
of the Cuban pirate who attacked an Amer-
ican passenger plane in the middle of its
flight, jeopardizing the lives of the 10 other
persons aboard, mostly Americans.
On May 9,. the National Airlines sent a
letter to Attorney General Kennedy which
read as follows:
"National Airlines' Flight 337, a sched-
uled revenue Convair 440 flight between
Miami and Key West by way of Marathon,
Fla., departed Marathon Airport at 3:34 p.m.
e.s.t., Monday, May 1, 1961, for Key West.
Aboard the flight, in addition to the crew of
three, were eight passengers.
"Shortly after takeoff, one of the passen-
gers, carried on the manifest as Elpir Cofresi,
forcibly entered the cockpit and ordered the
pilot at gunpoint to overfly Key West and
proceed to Havana, Cuba. The copilot was
ordered to leave his seat and take a place in
the main cabin, while said Elpir Sofresi took
over the copilot's seat and through continued
theatening display of the gun required the
pilot to proceed to Havana, Cuba, where a
landing was subsequently effected at San
Antonio de Los Banos at approximately 4:30
p.m., e.s.t.
"The aircraft, of U.S. registry and flown
by a scheduled U.S. carrier, with its passen-
gers, was subjected to extreme hazard during
the course of the flight into and subse
quently out of Cuba. The pilot, at the com-
mand of military personnel, was required to
shut the engines down and remain within
the airplane with the passengers, except for
a short period of time, for approximately 3
hours.
"Said Elpir Confresi was ultimately de-
planed with his baggage at the request of
Cuban officials, and the flight released for a
circuitous return to Key West, Fla.
"The crew and passengers were apparently
courteously treated while on the ground at
San Antonio de Los Banos. Detailed reports
from the three crewnlembers, supplementing
interrogations given at Key West and Miami
following arrival by agents of the bureau, are
in hands of the Miami office of the Federal
Bureau of Investigation.
"It is respectfully requested that action
be taken by the U.S. Government to obtain
extradition of said Elpir Cofresi to the
United States that proper legal action may
be taken for his unlawful actions."
The Department of Justice on May 18 re-
plied that it would consider the extradition
question only in the event that criminal
charges are instituted in a Federal court in
this country.
Nothing was said to Indicate that the act
of piracy complained of had been drawn to
the attention of the State Department for
action.
Plainly, here is a case where the Govern-
ment of the United States, by failing to
demand redress from Cuba, gives the im-
pression today that it is not going to pro-
tect American lives and property abroad.
Here is a case, moreover, in which the
lives of American citizens traveling in the
air over their own territory were placed in
danger by an act of invasion by a national
of a foreign state. Piracy of this kind is not
immunized by any treaty, and it is within
the right of the United States to take steps
to gain satisfaction.
A demand from this Government to the
Cuban Government for the return of the
criminal has not been made. Nor have any
steps been planned in the event that the
Cuban Government refuses to give up the
man who committed the act of piracy.
In connection with the episode, it is a
matter of interest to the American people
that such an act of piracy was permitted
within our own defense zone. The Ameri-
can pilot, who was forced to fly at the point
of a gun, did his utmost to attract atten-
tion. He flew through restricted military
areas between Miami and Key West and at
abnormal altitudes as he took a zigzag
course. It was learned later that he had
been tracked by military radar, but no sig-
nificance was attached to the flight because
it appeared to be going away from the
United States. This episode happened too
close to a Communist base to be handled in
such a careless way by American military
authorities charged with the duty of ob-
serving what goes on in the air.
Our Flag
EXTENSION OF REMARKS
OF
HON. JOHN H. ROUSSELOT
OF CAI,IFORNIA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 14, 1961
Mr. ROUSSELOT. Mr. Speaker,
Chaplain Thomas H. Clare, an Ameri-
can patriot who gave his life in the
service of the United States during the
Second World War, penned a poem en-
titled "Our Flag." Chaplain Clare had
emigrated to the United States from
South Wales, England, and from a deep
sense of gratitude for the opportunities
and freedom he enjoyed in America was
inspired to write this poem while serv-
Ing with combat troops in India.
I deem it a fitting tribute to Chaplain
Clare, at the suggestion of his sister,
Miss Dollie Clare, to have his poem
printed in the CONGRESSIONAL RECORD on
this day which we observe as Flag Day.
Under unanimous consent I include
it in the Appendix of the RECORD:
OUR FLAG
See! Our country's flag is flying
Over village, field, and town;
Symbol to the Nation's children
Of the glorious land they own.
Let us now recall her story
And with reverent voices raise
Songs proclaiming high her glory;
Hymns o'erburdened with her praise.
Like a holy light that shineth
Let her hallow all our ways.
See her now on God's horizon
Flashing, rippling with the breeze.
Hope of men of every nation
Fevered still by war's disease.
In her folds the weary stranger
Seeks and finds a safe retreat.
Born of hope and sired by danger
Never has she known defeat;
In the strife for right and justice
May she triumph, Lord, complete.
-Chaplain Thomas H. Clare.
Confusion Resulting From Too Much Gov-
ernmental Interference and Regulation
of Business Enterprise
EXTENSION OF REMARKS
OF
HON. STROM THURMOND
OF SOUTH CAROLINA
IN THE SENATE OF THE UNITED STATES
Wednesday, June 14, 1961
Mr. THURMOND. Mr. President,
there appears in the June 14 edition of
the Wall Street Journal an excellent edi-
torial which vividly describes the confu-
sion which results from too much gov-
ernmental interference and regulation
in the field of business enterprise. The
antitrust laws and their enforcement
are essential to the function of our eco-
nomic system. Competition cannot ex-
ist where price fixing and collusion are
permitted.
The purpose of antitrust laws, howev-
er, is to foster and insure competition;
and it becomes somewhat difficult to
detect diminution of competition due to
the offering of goods at a price which is
characterized as being too low. Vigor-
ous enforcement of the antitrust laws
must be made, to prevent collusive price
fixing and padded prices. Price fixing
is the antithesis of competition.
When, however, those enforcing the
antitrust laws attack the prices of one
company at the same time in different
forums, on the grounds that they are
both too high and too low to conform to
antitrust provisions, there is grave dan-
ger that the Government itself becomes,
in practical effect, a price fixer, and
thereby itself defeats the purpose of the
antitrust laws.
I ask unanimous consent that this edi-
torial, entitled "Too High and Too Low,"
be printed in the Appendix of the
RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
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CONGRESSIONAL RECORD - APPENDIX A4377
by the well-known columnist Roscoe
Drummond, entitled "A Dangerous Busi-
ness," which appeared in the New York
Herald Tribune on Friday, May 26, 1961.
Mr. Drummond, who is a thoroughly
experienced and able observer, makes
the point, of which all Americans should
be aware, that Castro's crude and brazen
blackmail proposal is designed simply to
make himself stronger. If we are in the
position of strenthening a Communist
henchman 90 miles from our shores,
then it certainly is time that wishful
thinking is replaced by hard, sane real-
ism. Mr. Drummond also raises the
question of how a committee of private
citizens can engage in an international
deal, involving a foreign country, with-
out necessarily invoking participation
by the U.S. Government. The answer is,
of course, that it cannot be done, and
the result is that, in the eyes of the
world, our Government has been hu-
miliated by a petty, bearded tyrant.
I hope that Mr. Drummond's able and
penetrating statement will be read by
all thoughtful people.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
[From the New York Herald Tribune,
May 26, 1961]
A DANGEROUS BUSINESS-GOVERNMENT SEEN
INVOLVED IF TRACTOR DEAL IS MADE
(By Roscoe Drummond)
WASHINGTON, MAY 25.-Fidel Castro esti-
mates that the lives of two and two-tenths
Cuban prisoners ought to be worth one
bulldozer or one truck with spare parts. He
gives the United States 10 days to come
through-or else.
The fact that such Americans as Mrs.
Eleanor Roosevelt, Dr. Milton Eisenhower,
Walter Reuther, Joseph Dodge, and others,
volunteer to help raise the money to buy
the freedom of the 1,206 Cubans who were
captured during the invasion shows that the
plight of the freedom fighters instinctively
touches the heart and conscience of this
Nation. The money is already coming in.
I am not sure this is the way to help
Cuba or the United States or enslaved peo-
ple anywhere. But, if we are going through
with it, let us recognize what we are doing,
name this Castro thing for what it is, and
not pretend that the United States Govern-
ment somehow has nothing to do with it.
CRUDE BLACKMAIL
This is crude, brazen, high-handed inter-
national blackmail perpetrated by a political
dictator who is proposing to trade human
beings for metal in order to make himself
stronger.
This is a dangerous business. Once a
nation yields to blackmail, where does it
stop? What next? If we yield 500 trucks
and bulldozers to Castro, aren't we inviting
some other country to throw a few Ameri-
cans in prison to trade for a dozen airplanes,
a steel mill, or a low-interest loan?
There is no way whatsoever to make this
Castro thing a little detached, personal deal
between a few private American citizens
and somebody or other in Havana, with the
Government of the United States uninvolved.
Administration officials would like to keep
the Government out of it. It seems to me
impossible.
After a conference at the White House,
Speaker SAM RAYBURN reported: "The Presi-
dent said the Federal Government is out of
it and going to stay out of it."
Mrs. Roosevelt said: "We have the agree-
ment of the Government. We got permis-
sion beforehand."
A CONTROVERSY?
The hard fact is that the deal cannot be
brought off without some Government par-
ticipation. The Logan Act makes it unlawful
for private citizens to negotiate with a for-
eign government "with intent to influence
its conduct in any disputes or controversies
with the United States." President Ken-
nedy says he is advised that the Logan Act
is not involved. because the people-for-trac-
tors deal is not a "controversy," But since
Castro has stated that he views the tractor
"gift" as "indemnity" or reparations for the
invasion, there seems to me a very real con-
troversy here.
I cannot see how the Americans can go
to Havana to negotiate the prisoner-tractor
arrangement without breaking the law un-
less they have the authority of the Govern-
ment. If they have this authority, then the
United States makes itself a partner to the
deal.
If this deal is to be realized, as its sponsors
have described it, then the United States
will have to participate at four points: The
Government will have to issue export li-
censes for the machinery, issue visas for the
negotiators, authorize them to negotiate so
as not to violate the Logan Act, and make
contributions tax-deductible. The latter
action means that the United States would
be paying for part of the cost.
FULBRIGHT'S VIEW
All this is why Senator WILLIAM J. FuL-
BRIGHT, chairman of the Foreign Relations
Committee, has said: "I agree that our Gov-
ernment should not in any way lend itself
to this kind of blackmailing operation."
Senator STYLES BRIDGES, of New Hamp-
shire, put it this way on the floor of the
Senate: "Not since the days of Hitler, when
the infamous Eichmann offered to trade one
Jew for one truck, has the civilized world
been confronted with such a heinous barter.
Would it not be far more humanitarian to
exchange food and medical supplies?
The point is that all the Cuban people,
not just the captured invasion fighters, are
Castro's prisoners. It seems to me that our
objective and the objective of the Organiza-
tion of American States should be to free
the Cuban nation, not just a few of its
people.
EXTENSION OF REMARKS
OF
HON. VICTOR A. KNOX
OF MICHIGAN
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 14, 1961
Mr. KNOX. Mr. Speaker, under leave
to extend my remarks, I wish to call to
the attention of the House an article
that appeared in the June 10 edition of
the Evening News, Sault Ste. Marie,
Mich., written by Mr. Hugh H. Holloway,
superintendent of schools.
The article follows:
COLLEGE FUNDS
(By Hugh H. Holloway, in Sault School
Bulletin)
None of the recipients of public funds are
happy with the austerity budget of the most
recent legislature. We can understand this
readily because schools and colleges are
definitely recipients of public funds.
A word of caution is in order, now that
the matter is settled. Good sense might
show that the legislature has shown good
judgment. Rather than spitefully try to
keep their judgment from proving correct,
let us try to determine the truth. Let us
live within our budget. The people can
determine whether the pressure group or the
legislature has been wrong.
May I suggest to the colleges that their
acts not be arbitrary, that their acts be well
thought out to benefit the entire State.
Across the board restrictions in enrollment
may not be in the best interests of students.
Why not determine those areas of educa-
tion best served by the State institutions and
those areas that can be best served by the
private colleges?
Let the State institutions use their funds
in the areas where the private colleges can-
not serve. In this manner the private col-
leges may effectively absorb the overflow. In
this manner the college students of tomor-
row may still be served.
Of all States of the Union, Michigan ranks
first in the percentage of students in public
supported colleges. Even a small change in
this percentage will not drop Michigan from
her first place spot.
Public a cation has been tightening its
belt for the past 4 years and is still doing a
good job. With dedication, effort, coopera-
tion, and hard work, we can produce class
one education.
May I recommend that we make the best
out of this bad situation. Maybe it is not
as bad as many of us think.
Let's Get the Facts on Unemployment
EXTENSION OF REMARKS
OF
HON. BRUCE ALGER
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 14, 1961
Mr. ALGER. Mr. Speaker, during the
debate on extension of unemployment
compensation some of us pointed out
that there were many misleading figures
used in compiling unemployment statis-
tics. How much outline the actual fig-
ures are is clearly indicated in the edi-
torial, which I include herein, from the
Washington Daily News.
BUILTIN UNEMPLOYMENT FIGURES
Any commonsense consideration of the
U.S. unemployment problem should start
by disposing of some of the myths which
confuse the issue.
Principal among these is the idea that
there are nearly 5 million seeking work and
unable to find it. The exact, current figure,
issued by the Government, is 4,768,000.
The impression these figures convey ob-
viously is false. In high percentage-no one
knows how high-these figures are built into
the system and are multiplied by it.
Consider, for instance, the millions re-
tiring from the labor market for reasons of
age; in the case of women, to get married,
or just because they are sick of work and
can avoid it. They don't intend to go back
to work. They are not hunting jobs. They
are avoiding them. And yet they can collect
unemployment compensation for half a year
or more. For this length of time they are
statistically unemployed.
Another fairly large class is composed of
those not looking for steady work. They pile
up enough credits to get on unemployment
compensation, lay off until it runs out, get
another job and repeat the process.
There is, furthermore; a class which would
rather maintain a mere existence on relief
than work for a living. These also add to
the unemployment statistics.
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