FOURTH ANNIVERSARY OF THE ALLIANCE FOR PROGRESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP11M01338R000400340047-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 27, 2016
• Document Release Date: September 6, 2013
• Sequence Number: 47
• Publication Date: August 19, 1965
• Content Type: OPEN SOURCE

Declassified and Approved For Release 2013/09/06: CIA-RDP11M01338R000400340047-2
August 19, 1965
sheet or profit and loss statement is a
key professional accounting service.
They are prepared from the' financial
data accumulated in the accounting rec-
ords and are intended to tell the busi-
nessman, where his company has been,
where it is now, and where it is likely
to be heading.
Fourth:
The preparation of tax returns whether
Federal, State, or local.
CONGRESSIONAL RECORD ? HOU
were heard in opposition. No further ac-
tion was taken on the bill in that Con-
gress I have introduced H.R. 112 in this
Congress, which is identical to HR. 9548.
These bills are broader in scope than
HR. 10529, which would prohibit banks
from performing professional account-
ing services only.
Banks should not be allowed to per-
form professional accounting services
for the business community. It is in the
best interests of individuals, customers,
business firms and the public account-
ing profession, and probably even the
banks themselves, for banks not to per-
form professional accounting services.
I have introduced H.R. 10529 upon re-
quest of the National Society of Public
Accountants.
This activity depends upon accounting
records and accounting principles for its
foundation. While there is no present
Federal regulation over persons or firms
who may prepare a tax return for a tax-
payer for a fee this is not an activity in
which a bank should engage. Banks
would not be prohibited under the bill
In any way from preparing estate, in-
heritance, or fiduciary tax returns or any
other tax returns which are necessary in
connection with their lawful functions
as trustee or agent.
Fifth:
The conduct of audits and the preparation
of reports based on audits.
Audit is a procedure which examines
records and statements to safeguard
against fraud and error and to assure
that the records and statements are in
accord with accepted accounting prin-
ciples. This assurance is vital to man-
agement, third parties, and particularly
banks.
Often an accountant is called upon to
express a profe.ssiona opinion in his
audit report about the firm's operation
as reflected in its financial records.
Training and experience is required to
carry out this responsibility.
The bill recognizes that when a bank
occupies a position of trustee or agent,
It must' necessarily have the authority to
provide a wide variety of services. The
bill does not interfere in any way with
necessary activities when the bank is
acting as a trustee or agent, even if such
activities or services include those pro-
hibited by this bill under other condi-
tions.
The bill would apply to national banks,
members of the Federal Reserve System,
and those banks whose deposits are in-
sured by the Federal Deposit Insurance
Corporation. The act would be admin-
istered by the supervising agencies hav-
ing jurisdiction over the banks.
The bill would also apply, to insured
members of the Federal Savings and
Loan Insurance Corporation.
During the last Congress I introduced
H.R. 9548, a bill to prohibit banks from
performing clerical, administrative,
bookkeeping, statistical, accounting, or
other similar services for depositors, ?
borrowers, or other customers, except to
the extent necessary incident to the
proper discharge of lawful functions of
such bank as a depositor, lender, trustee
or agent. Hearings were held on this
bill by the Subcommittee on Bank Super-
vision and Insurance, House Committee
on Banking and Currency, House of Rep-
resentatives. Representatives of the So-
ciety of Public Accountants were heard
in support of the bill and representatives
of the American Banking Association
No. 163-12
ECONOMY IN GOVERNMENT: THE
, PRESIDENT'S EXAMPLE
(Mr. MULTER (at the request of Mr.
GREIGG) was, granted permission to ex-
tend his reniarks at this point in the
RECORD and to include extraneous
matter.)
Mr. MUL'izit. Mr. Speaker, no single
person in the administration has taken
the drive to stimulate the economy and
eliminate waste as seriously as President
Johnson himself.
The importance he attaches to this
problem is clearly demonstrated by the
steps he has taken to tighten up on op-
erations involving the White House and
its staff.
I commend to the attention of our col-
leagues the following article from the
August 15, 1965, edition of the New York
Journal-American outlining the example
set by the President; it should inspire
others to increase their efforts in this
area.
The article follows:
D.C. CuRankrr: L.B.J. SETS EXAMPLE IN
GovEssurforr ECONOMY
(By Marianne Means)
Wasmnarow.?President Johnson practices
what he preaches. When he admonishes the
Government to pinch pennies, he applies
that parsimonious approach to himself as
well as lesser officials. Nowhere in the ad-
ministration has the budget been pared more
ruthlessly than inside the White House.
The President's staff has 26 fewer members
than a year ago; L.B.J. is now getting along
with fewer special assistants and secretaries
than President Kennedy employed. John-
son has also halved the number of black
limousines available at the White House;
their use is now restricted to special assist-
ants.
As often as he can, especially on short trips
such as weekends at his Texas ranch, the
President travels in an eight-seat Jetstar in-
stead of the huge, sleek Boeing 727 Presiden-
tial jet. Although he cannot carry as many
friends with him, he spends one-fifth as
much on the smaller plane as he would on
the larger one.
Among other savings cited at the White
House is an item of several thousand dollars
a year achieved by cutting down on the num-
ber of copies of newspapers and magazines
on order. The President still gets approxi-
mately 20 newspapers a day and a consider-
able number of magazines, and has not
changed his reading habits. But daughters
Lynda and Luci and Mrs. Johnson and indi-
vidual staff members and secretaries no long-
er receive individual copies of every newspa-
SE 20315
per and magazine. Now one copy suffices for
the Johnson family, one for each floor of
offices and one for the President himself.
The President's successful efforts to save
money in White House operating costs have
enabled him to redecorate the staff offices
without putting a strain on his budget. The
offices were shabby, badly in need of refur-
nishing and were not laid out to make maxi-
mum use of the limited space.
The President, however, kept a close eye
on the redecorating. He wanted furniture
that would be modern and tasteful, as be-
fitting the White House. But he wanted
bargains whenever possible. The President
insisted that the General Services Adminis-
tration, which is in charge of providing Gov-
ernment office furnishings, intall in the
White House furniture from its. surplus
stocks when possible.
Under the President's prodding, GSA or-
dered some furniture from Federal prison
carpentry shops instead of from retail or
wholesale catalogs. A large, modern walnut
table in the office of Press Secretary Bill
Moyers cost $125, for instance, because it
came from a prison; a similar one would have
cost $800 from another source.
The President has also personally gone over
each remodeling plan. The original plans to
enlarge the press office Were estimated at
$20,000. The President sent the plans back
with a big "too costly" written on them. The
- planners came up with a different way to do
essentially the same thing, but for $10,000.
The President runs a taut budget in his
own shop to demonstrate to the rest of his
administration that he really means busi-
ness when he talks about economy.
An as if all these examples Weren't enough,
he recently acquired, in a staff shuffle, a new
secretary named Ginny Thrift.
(Mr. GONZALEZ (at the request of
Mr. GREIGG) was granted permission to
extend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
[Mr. GONZALEZ' remarks will appear
hereafter in the Appendix.]
(Mr. GONZALEZ (at the request of
Mr. GREIGG) was granted permission to
extend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
[Mr. GONZALEZ' remarks WilLappear
hereafter in the Append
WI/
FOURTH ANNIVERSAR ? HE
ALLIANCE FOR PROGRESS
(Mr. 'UDALL (at the request of Mr.
GREIGG) was granted permission to ex-
tend ,his remarks at this point in the
RECORD and to include extraneous
matter.)
Mr. UDALL. Mr. Speaker, this week,
the fourth birthday of the Alliance for
Progress it seems advisable to review the
overall impact the Alliance has had on
the citizens of the United States. Broad-
ly speaking, there are two relevant ques-
tions which arise in this connection:
What is the scope of the total U.S. com-
mitment to and involvement in the ob-
jectives of the Alliance, and has the
United States benefitted either directly
or indirectly from its participation in this
hemispheric effort toward self-help and
reform?
Declassified and Approved For Release 2013/09/06: CIA-R6P11M01338R000400340047-2
Declassified and Approved For Release 2013/09/06: CIA-RDP11M01338R000400340047-2
20316 CONGRESSIONAL ? RECORD ? HOUSE
Today, 26 States in the United States
are in active partnership with areas in
13 Latin American Republics. Within
those States a host of private organiza-
tions and citizens contribute to the pro-
gram of public agencies working in this
field. For example, American voluntary
organizations such as CARE and Catho-
lic Relief Services, along with many other
agencies, are distributing surplus agri-
cultural products not only for relief, but
as parts of food-for-work programs aimed
at promoting -long-term development. ?
In addition, over 3,000 Peace Corps
volunteers are working in Latin America
contributing 2 years of their lives to help
the Alliance for Progress achieve its goals.
A large number of individual firms, con-
tractors and private universities under
contract with AID are engaged in im-
parting U.S. know-how to help the people
of Latin America help themselves.
Private U.S. foundations such as Ford,
Kellogg, and Rockefeller provide funds
and valuable 'technical assistance. The
junior chamber of commerce has a pro-
gram designed to aid community devel-
opment projects in several Latin Ameri-
can nations.
And through a participant-training
program, American labor unions, col
leges, 'business firths, lodal gaVeriunent
units and agricultural organizations have
imparted advanced and specialized
knowledge to over 3,000 midcareer
people from Latin America. To give
these trainees a feeling for .life in
the United .States, a network of, unpaid
volunteers devote many hours as mem-
bers of international hospitality groups..
Early last year, I had the privilege of
helping to organize a partners program
to assist El Salvador. Now, at the urg-
ing of the Ambassador to El Salvador,
the Honorable Raul Castro, a .distin-
guished Arizonan, the Arizona partner-
ship has begun to expand into a state-
wide effort.- This grassroots project, in-
volving the ,University of Arizona.as well
as many public-spirited leaders in the
rural school in El Salvador, plans to
build a science laboratory in another
school. The rural school will be con-
structed next summer by a Boy Scout
troop from Tucson with funds already
raised by a Tucson high school teacher,
Mr. Edward Mazzarella.- ?
Thus, the commitment of the United
States to the Alliance for" Progress
reaches deep into the lives of a signifi-
cant number of our citizens.
Apart from the personal satisfaction
felt by the individuals concerned, has the
United States benefited from the Alli-
ance?
The answer is "Yes." For one thing,
over 80 percent of the funds allotted to
the Alliance for Progress by the Congress
are used to purchase goods and services
in the United States. Thus a large num-
ber of U.S. manufacturing firms receive
direct benefits from the program. In
addition, there is a direct correlation be-
tween the amount of economic develop-
ment in the Latin American republics
and an increase in U.S. exports to that
area. Between 1959 and 1964, for ex-
ample, total U.S. exports to the members
of the Central American Common Market
increased by 56 percent. Such an in-
crease naturally stimulates industrial
production in this country.
' The value of this program cannot be
measured in dollars and cents, however,
for it is based not on material help as
such but rather on the concept of a two-
way partnership at all levels of our so-
ciety. In keeping with the two-way flow
of the partnership, Costa Rica has sent
12 educators to Oregon to assist that
State in upgrading the teaching of Span-
ish, and as a resource staff for social
studies. One of' our State universities
is organizing a new department and has
requested professional help from its
Latin American partner which happens
to have a strong cadre of technicians and
professionals in the required discipline.
The partners of the State of Parana, in
Brazil, have sent a professor of Portu-
guese to introduce that language to high
school teachers in their partner State of
Ohio. Florida is developing a scholar-
ship program with Colombia. The Alli-
ance for Progress is a true partnership,
not merely foreign policy. ?
Overall, the breadth of the bate of our
effort strengthens our contribution to
the Alliance and affords an opportunity
for some of our citizens to get to 'know
Latin Americans and their problems. ,
(Mr. THOUPSON of New Jersey (at
the request of Mr. GREIGG) was granted
permission td extend his remarks at
'this 'point in the RECORD and to include
extraneous matter.)
[Mr. THOMPSON of. New Jersey's re-
Marks will appear hereafter in the Ap-
pendix.]
THE RACIAL RIOTS IN CALIFORNIA
' (Mr. WAGGONicER (at the request of
Mr. GREIGG) was granted permission to
extend his remarks at this point in the
RECORD and to include extraneous' mat-
ter.) ?
Mr. WAGG.ONNER. Mr. Speaker, if it
were not so tragic, the recent effort of
the liberal social apologists to explain
away 'the explosion of racial irresponsi-
bility in California would be ethnic.
Some of the leftwing moralists tried to
persuade the people that the $200 million
rape of the Watts district had no racial
overtones. The argument wa's so absurd
that it got nowhere at all. An attempt
was then made to blame it all on the
ghetto conditions under which these in-
surrectionists lived, but television pic-
tures of the tree-lined streets, neat lawns,
and well-kept hbmes soon gave the lie to
that verbal fraud. As a final resort, an
argument has been hit upon that seems
to satisfy all the apologists: blame it on
the South.
As I say, this would be comic if it were
not interwoven with the tragedy of 34
deaths and $200 million in property de-
struction.
Columnist William Buckley, in his col-
umn in yesterday's Washington News,
summarized the utter foolishness of this
radical twisting, squirming, and frothing
in a clear and lucid way. His column is
worthy of everyone's attention and I
make it a part of the RECORD:
The sociologists and moralizers are des-
perate to motivate the Los Angeles disaster
August 19, 1965
and' well they might be, considering the
emptiness of the flimsy hypotheses on which
they instinctively relied. The Los Angeles
explosion tests and explodes several of these.
Very recently we were told in a national
newspaper that interracial frictions at Los
Angeles had substantially dissipated as the
result of successful biracial diplomacy.
Wrong.
The notion that the Negroes in Los An,.
geles expressed the frustration of the larger
Negro community at the intransigence of
American white society is hardly plausible.
The explosion occurred just at the moment
when a major civil rights bill was passed:
a bill which should have, brought to the
Negroes whatever that satisfaction is to,
comes from having gotten an unconditional
surrender from the enemy, namely the
southern whites.
By orthodox standards, the Watts district
in Los Angeles is not of the highest octane:
it isn't an area in which the inhabitants
suffer from unbearable overcrowding; from
rats or lice or raging disease. In purely
economic, terms?for, those who always look
for that explanation?the people of the
-Watts area have been making do. Their
economic privations?again in economic
terms?were bearable, and people go to7Cali-
fornia in droves precisely because their ex-
peatations over the years have been realized;
that livings are made, and there is progress
year after ' year. ?
The ; average -Negro moving into Los An-
geles could?can?hope more realistically for
material progress .than could the refugee
who trekked there during the depression
period, whose hopelessness was written into*
literature by John' Steinbeck in "Grapes of
Wrath": to whom it did not, however, occur
to go about shooting innocent people. ?
And yet they 'all, in the Watts ?district, or
rather a substantial number of them, be-
came animals. The statistics are widely
known-30-odd , dead,' $200 million 'in
damage. ' .
There is no discovering the single basic
cause of such disruptions in civilization.
Those Who rush to make out of this episode
a case for invidious racist generalizations
have short historical memories. What hap-
pened in Los Angeles was at' least spontane-
ous, as for example .what happened in Nazi
Germany and *white Russia was not spon-
taneous.
' What it does remind us is that a destruc-
tive lawlessness is lodged in every single one
of 'us, and that a society that tolerates such
indulgences in lawlessness oughtn't to be
surprised when the destructive flame sud-
denly lashes out, tearing, people's eyes out
of their sockets and burning down $200 mil-
lion worth of property.
- Less than a year ago, Mario .Savio, hero of
the anarchic beatniks, was defying, roughly
speaking, the administration of the Univer-
sity of 'California, of the governing council
of Berkeley and the legislature of California;
and the wisemen on the faculty were in effect
egging him on.
A year or so ago, the Supreme Court ruled
that illegal sit-ins were not to be prosecuted
for having defied laws that were unquestion-
ably legal at the time they were broken, be-
cause in due course Congress passed laws ren-
dering those laws illegal. Two years ago, Ad-
lal Stevenson, giving a commencement ad-
dress at a posh eastern college ventured the
thought that the distinguishing attribute
of the heroes of the future may be that they
spent time in jail.
Martin Luther King never tires of inform-
ing us that those laws he believes to be unjust
are laws that men ought not, if they believe
as he does, obey.. For such sentimentS he
gets Nobel Prizes and extreme editorial
unction.
If there is a point to be got out of this
inscrutable tragedy, it surely is only this:
that it can happen again, and very probably
-
Declassified and Approved For Release 2013/09/06: CIA-RDP11M01338R000400340047-2