JOINT ECONOMIC COMMITTEE HEARING ON THE CHINESE ECONOMY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP69B00369R000200110001-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: March 31, 2004
• Sequence Number: 1
• Publication Date: January 16, 1967
• Content Type: OPEN

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January 16, 1967 CONGRESSIONAL RECORD - SENATE
ceeds to understate the conservatism by
100 percent.
The editorial states that the Kuchel
resolution would permit 20 days of de-
bate. The fact is that on any significant
issue, the opposition can and will debate
the motion to "take up" for 20 days un-
der the pending resolution. If cloture
is invoked, they would have another 20
days fora second marathon debate.
Anyone who calls this gag rule is being
funny. They certainly are not being
accurate in any sense.
I ask unanimous consent that the edi-
torial entitled "Fighting the Filibuster"
be printed at this point in the RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
FIGHTING THE FILIBUSTER
The most striking aspect of the anti-
filibuster fight in the Senate is the extreme
conservatism of the reforms offered. Sena-
tors McGovern and Morton are asking only
that the number of Senators required to end
debate be reduced from two-thirds to three-
fifths, or, if all were present, from 67 to 60.
Senators Kuchel and Clark would permit de-
bate to be ended by a constitutional majority
(51) regardless of how many members might
be present and voting. And this cut-off could
be invoked only after discussion of the issue
had been in progress for 20 days or more.
The more liberal of these measures stops
somewhat short of meeting the argument
that any systematic frustration of majority
action is unconstitutional. A rule that
would permit the Senate to chew over every
highly controversial issue for 20 days or more
without restraint could be a potent source of
obstruction. No doubt Senators Kuchel and
Clark have made their resolution extremely
lenient in the hope of establishing the prin-
ciple of majority cloture. But in practice it
would require substantial refinement before
the Senate could be regarded as a modern
legislative body.
We agree, however, with the view that the
most important thing is to establish the
principle of majority cloture. With that once
recognized, the Senate would be free to
bring about further changes by majority
action wherever the need for it might arise.
The right of the majority to work its will
in the Senate has become the foremost issue
before that body. We think it ought to be
decided this time before the Senate turns
to other business. There is a strong hope
that Vice President Humphrey will rule, when
the right moment comes, that the Senate
has a constitutional right to modify its rules
by majority action in disregard of the odious
Rule 22. The whole country has an Interest
in demanding that Mr. Humphrey stand by
his convictions of the past on this issue and
that the Senate sustain him.
Nothing is to be gained by further pro-
crastination. The question Is one of prepar-
ing the Senate to meet its broadened
responsibilities in addition to reinstating the
constitutional principle of majority rule. It
is a principle worth fighting for, and those
who are carrying the burden of the battle
ought to have unflagging support until their
objective has been won.
WHY THE WASHINGTON POST
OPPOSES THE TAX HIKE
Mr. PROXMIRE. Mr. President, the
Washington Post has published a series
of some of the finest and most thought-
ful editorials in the Nation in opposition
to the proposed tax increases.
The Washington Post has been
thoughtfully sympathetic to the Presi-
dent and to the so-called new economics.
It enthusiastically favors the use of fiscal
policy-taxing and spending-to influ-
ence economic growth and retard infla-
tion. Its voice on the tax increase
deserves thoughtful attention.
Recently the Post published an edito-
rial entitled "The Wrong Fiscal Path."
This editorial makes the vital point that
the tax increase will not achieve the end
its proponents fervently want. They
want lower interest rates. But interest
rates are already beginning to move
down and they can and will continue to
move down if the Federal Reserve Board
simply increases the money supply.
Whether taxes are raised or lowered will
have little effect.
What the Federal Reserve Board does
will have the only significant effect on
interest rates.
Proponents want a tax increase to save
Great Society programs. The tax in-
crease, as a matter of cruel political fact,
is far more likely to kill such programs,
as Members of Congress and the public
recognize the price.
Finally, the tax increase could lead u
to a recession, unemployment, an end td
this long, happy period of economic
growth.
I ask unanimous consent that the Post
editorial, entitled "The Wrong Fiscal
Path," be printed in the RECORD at this
point.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
THE WRONG FISCAL PATH
Some observers believe that President
Johnson proposed the 6 per cent surcharge on
Income taxes In an effort to buy more mone-
tary ease. Others lean toward the view that
he wished to keep the administrative budget
deficit below $12.4 billion, the record estab-
lished by the Eisenhower Administration in
the fiscal year 1959. But whatever the
motives, it is difficult to defend the Ad-
ministration's proposal on either economic or
political grounds. If the proposal has any
virtue, it is the July 1 effective date which
gives the Congress ample time to debate
the issue in the light of economic develop-
ments that unfold during the course of this
year.
The economic objection to the higher taxes
Is that the economy is .exhibiting unmistak-
bale signs of sluggishness and is more likely
to require a fiscal stimulant than a seda-
tive in the months ahead. On the day that
the President delivered his message, it was
announced that retail sales declined in De-
cember. There Is a slump in the construc-
tion industry. Capital expenditures will
not rise significantly in the first half of
this year and are likely to decline in the
second.
In view of these trends, the tightening of
fiscal policy, by diminishing the stream of
consumer expenditures and dampening busi-
ness expectations, involves the very real
risk of precipitating a deep recession. There
is a widespread-a.nd erroneous-belief that
such a recession could not occur in the face
of high defense expenditures. But defense
expenditures-and more importantly, de-
fense production-are leveling off.
There are those of the President's advisers
who cling to the view that a tighter fiscal
policy, however inappropriate, is the price
that must be paid for a reversal of the Fed-
eral Reserve Board's monetary policy. In
addition to viewing the Board as If it were
somehow a sovereign power instead of a
creature of the Congress, this view overlooks
the fact that interest rates have already
fallen as a consequence of the softening of
S 271
the demand for credit. And with the deci-
sion of the German Bundesbank to lower its
discount rates and the prospect that other
European central banks will follow there is
no balance-of-payments reason why market
force should not be permitted to lower rates
on this country.
Professor J. Kenneth Galbraith and others
who believe that the attainment of the high-
est good is predicated on shifts of resources
from the private to the public sector of the
economy, are supporting the surcharge. But
they are blind to the dangers of tying
specific programs to tax increases. Raising
taxes to continue Great Society programs is
a move hardly calculated to Increase their
popularity, and the difficulties will be com-
pounded if the economy is also depressed
in the process.
President Johnson said that he would soon
send his specific proposals to the Congress
and added that: "Yours is the responsibility
to discuss and debate them-to approve or
modify or reject them." Congress made a
mistake by rushing through the suspension
of the investment tax credit. There is no
reason at all for haste on the income tax
surcharge.
JOINT ECONOMIC COMMITTEE
HEARINGS ON THE CHINESE
ECONOMY
Mr. PROXMIRE, Mr. President, dra-
matic and momentous events are oc-
curring in China today, events that may
not only shape history for many years in
the Far East, but could have a most
serious effect on our own military and
foreign policy.
The Milwaukee Journal spelled out
in an editorial yesterday how serious is
the gap in our knowledge about develop-
ments in this immense Communist dic-
tatorship.
This Government has a responsibility
to the security of our country to find out
all we can about China, not only about
its attitudes and the tendencies of its
political developments, but the more
basic facts about its economy-what
kind of potential threat or promise
China really represents.
What limits does the Chinese economy
really place on its military capacity, on
its ability to help or hurt other nations
in Asia and throughout the world?
Senator JAVITS suggested to the Joint
Economic Committee last year that the
committee should study and hold hear-
ings on the Chinese economy.
The Javits suggestion made excellent
sense. The Joint Economic Committee
has made some of the very best and most
authoritative studies of the Russian
economy. They are highly prized among
university experts as well as in Govern-
ment.
Since Senator JAVITS made his sug-
gestion last summer, the committee has
been busily following up with a series
of studies of the Chinese economy by
the Nation's top experts. Those studies
are now being printed. And hearings
will begin before the Joint Economic
Committee an the Chinese economy after
hearings are held on the President's
Economic Report.
What we learn about the Chinese
economy should contribute greatly to
our evaluation of our military and for-
eign policies throughout Asia, and, in-
deed, the world.
 S272
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CONGRESSIONAL RECORD - S?JENATE January 16, 1967
I ask unanimous consent that the edi-
torial from the Sunday Milwaukee Jour-
nal be printed at this point in the
RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
NEWS COVERAGE OF CHI PTA
The news stories out of Communist China
reported mostly from Hong Kong or Tokyo
are blood chilling. The nation is apparently
in a power struggle and In great turmoil.
What is really happening? We don't ac-
curately know. The sources of news are so
limited and restricted that coverage Is all
but impossible.
Much of the news now comes from Red
Guard posters displayed in the cities. These
are political documents meant to serve politi-
cal ends and cannot be accepted as factual.
Many may not even be posted by the Red
Guard but by their opponents.
At a recent meeting of the International
Press Institute in India, news coverage of
China was discussed In depth.
There are only 30 foreign correspondents
in Peking and nearly half are from Com-
munist countries. Nine represent Japan,
four the west. None is from the United
States. All are restricted to within 25 miles
of the center of Peking. Their sources are
confined to Peking newspapers, New China
News reports and official publications. They
may not buy any provincial publications not
sold in Peking. They may not talk with
Chinese on the streets. Their interpreters
are supplied by the diplomatic service bu-
reau, a government agency. There are al-
most no press briefings. When there are, the
Chinese officials talk in a mixed jargon of
Chinese obscurities and their brand of Marx-
ism. Radio Peking broadcasts drab, unnews-
worthy programs that tell little or nothing.
The basic fact is that, as an Israeli editor
said, one does not cover China, one seeks to
uncover it and with little success because
the Chinese don't want outsiders peering
around. The Chinese trust no one. The
Chinese people get so little outside news
that they know nothing of the world. What
news there is has to be read between the
lines for the most part. When the Com-
munist coup in Indonesia was crushed there
was no mention of it for almost two weeks in
Chinese papers. Then the only indication
that something had happened came in a let-
ter reprinted in the press in which President
Liu Shao-chi -congratulated President Su-
karno on his being in good health in spite
of what has happened. Only later was the
coup discussed.
The United States has almost no contact
at all with China. Our nationals don't travel
there, nor theirs here. We have no diplo-
matic contact save occasional meetings in
Warsaw. It is indeed the "mysterious east."
And the problem is all the more aggravating
now when momentous things may be hap-
pening but no one knows for sure what
they are or what they mean.
DICKEY CHAPELLE MEMORIAL
DISPENSARY
Mr. PROXMIRE. Mr. President, on
V'ovember 4 the Dickey Chapelle Me-
norial Dispensary was dedicated in
7letnam. This dispensary is a most ap-
;lropriate memorial to a native of Mil-
'vaukee who was a great war cor-
i espondent. She died as she lived, in
i,war zone on patrol with a group of
r narines.
General Walt made an excellent
speech at the dispensary dedication cer-
emonies highlighting the ingredients
t :fat made Dickey Chapelle a unique
human being, who; brought great pride
to my State of Wisconsin. Her uncom-
promising honesty as well as her g Teat
courage should be an inspiration:; to all
who follow in her footsteps.
I ask unanimous consent that the
speech be printed at this point In the
RECORD so that Senators can better
understand the sorrow Wisconsinites felt
at the death of this unique woman.
There being no objection, the speech
was ordered to be pi!inted in the RECoaD,
as follows: 1
REM RKS BY LT. GEN. LEWI8 W. WALT, USMV.LC,
CU, III MAP, DELIV 'RED AT DEDICATxON OF
DICKEY CISAPELLE MEMORIAL DISPENSF.ItY,
NOVEMBER 4, 1966
A year ago today, not far from here, the
world lost a dedicated and professional com-
bat correspondent-a;Lid American fighting
men lost a true friend.
For more than twenty years, Dickey Cha-
pelle could be found where the action was;
Iwo Jima, Okinawa? Lebanon, Hunga y,
Cuba, Quemoy, India, ( Laos, the Dominican
Republic, and finally south Viet Nam.
Mr. Jim Lucas has `spoken this morning
about Dickey Chapelle from his correspond-
ent's point of view. She was a professional
from any point of vies!-highly respected, by
her contemporaries, her readers, and by the
men whom she accompanied into battle, The
front lines was her befit.
It is difficult to say just when the mutual
romance and respect the etween this reporter
from Milwaukee and American fighting
man :began. Perhaps It was aboard a lice,.
pital ship off Okinawa or on the bla-,k
beaches of Iwo Jima i-But wherever it had
its start, It coIppelieq her to travel the
world over to be with gur fighting men and
to tell the story of what they were doing.
She wore baggy utii ties-a jauntily set
jungle hat-and a perpetual smile. She was
half the size of the [Marines she followed
into combat, until she spoke: then sudden-
ly she grew in stature, speaking with the
authority of a combat; veteran-which, of
course, she was.
When this frail looking woman showed[
up on the front lines, tough veterans Would
shudder. Who was going to take care ci'
her, they wondered. .
"Forget that I'm a woman," she woul9
say. 'I'ii lug my own stuff and ask no
favors." And she was true to her word. She
asked no quarters, anc would have been
offended had it been offered.
As General Krulak noted shortly after her
death, "The Marines are a fraternity, and
if a woman can belong to a fraternity, Dick-
ey Chapelle managed to j do It"
Never complaining, determined always to
carry her share of the lead, ever enthusias..
tic, she had the ability to convey the reality
of war to film and paper, in a degree seldom.
matched. She had a deep-seated feeling: for
people and events. She howed no fear and
had a total disregard for her personal safety,
For twenty years her lite was one of being
with the fighting men ' and telling their
story to the world.
It is most fitting that we here today dedi-
cate the dispensary to her memory-the
memory of a woman who loved people and
hated the violence which} causes hurt and
pain and misery.
For this facility is, by its very nature,
dedicated to overcoming the physical r5,v-
ages of war and disease and pestilence.
Today marks a beginning-for this build-
ing is only the central portion of a dis-
pensary that will events. ally grow to en-
compass a 44-bed facility.
Built by the 9th Engineer Battalion, the
dispensary will serve our etnamese friends,
staffed by both Vietnam se and American
medical personnel. It ha been made pos-
sible by funds which have been provided
through C.',ISE ant donated by friends of
Dickey hapo1le.
Anyo a 'who met Dickey Chapelle could
not for t hear. Har willingness to involve
herself Sill the clines of our time showed
a rare pirit. As a result, thousands of
America skit home lived closer to our men
in Viet an and came to know the strug-
gle for d g7hit;? and freedom of the Vietnam-
ese pea le',
She h d'. dinner it my quarters the day
before s e'. was killed. Several of my offi-
cers and myself had a wonderful evening
listening t4 h ,)r tell of her many experiences
with our 1arines. As she left my quarters
that eve ilg, she mentioned she was going
out on atxol the next day. I told her to
keep her cad down and notto take chances.
She said !`When the time comes for me
to go, I apt it to he on a patrol with Ma-
rines." ric[ that's the way it was.
And so we dedicate this building to the
memory f, Dickey f.hapelle--combat corre-
spondent, patr,.ot, ant humanitarian.
CHEATHAM
Mrs, i4flH. Mr. President, Satur- -
day, one f [thy outstanding women of our
times pa sod away-Mrs, Bessie Staley
Cheatha i.he died at the age of 86,
as she w s born on April 11, 1880.
It was 1{rlcst 7 years ago, on April 11,
1960, wh n I made a statement on this
floor calling the atrention of the senate
to her 8 h birthday that day. In ob-
serving t alt he wits a grand lady well
known d b~llovec. to the Members of
the U.S. epaire; I said that the shortest
and best esc::iption that we could give
her was t q u,iofilcial, title of "the 101st
Senator" of she had truly become one of
the fixtur sof the Senate.
For de cues, Bes.~ie Staley Cheatham
was as co star. t in her attendance of the
sessions o the U.S. 3enate as was any of
the Sena r's. She faithfully took her
place in he Senate Gallery near the
clock. S followed, the debate ever so
closely wi h, h:r ever keenly analytical
She was probably a better parliamen-
tarian tha most Members of the Senate.
In fact, at tir.oi s, fell ow gallelyites over-
heard he - ;quarterback" remarks in-
tended for her favor:.te choice for Presi-
dent, and P4 en Sensate majority leader,
Lyndon Jo ;ion.
The Se e will not seem the same
without th glowing presence of Bessie
Staley Che tham in the Senate Gallery.
It has lost nr' of its most beloved fixtures
with her p ssing. We have lost a good
counselor - nd it loyid friend who con-
stantly gav Inspiration to us.
The chu c r.. services in Washington
will be hel lioniorrow morning at 11 at
the All Soul M:e:norial Episcopal Church.
The next d y the afternoon of Wednes-
day, Janua y, 18' at 2 o'clock, final rites
will be cond ted at the Suffolk Christian
Church in ufl'o: k, Va., where her father
was pastor f r,::warly :, 0 years. The serv- -
ice will be rducted by a minister, who
assisted her f alter and was later pastor
at that chur h.
Among h r survivors is her son,- Wil-
liam S. Ch atlis m, former administra-
tive assistan to the Sergeant at Arms of
the Senate. T10 1t Senate doorkeepers
will serve as oncrary pallbearers.
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