CIA LEAVE POLICY FOR OVERSEAS PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01377R000200010026-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 27, 2016
• Document Release Date: August 28, 2013
• Sequence Number: 26
• Publication Date: February 28, 1951
• Content Type: MEMO

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"Pr -A
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? ? tON ENT1AL
Comptroller
Assistant Comptroller
CIA Leave Policy for Overseas Personnel
28 February 1,81
1. At & meeting on 21 February 1951 attended by representatives of the
Legal, Security and Comptroller's Office (See Tab A) it was recommended that:
a. The Agency should adopt a leave policy for overseas employees
which vas secure, consistent, and equitable.
b. Since the *auditions of service of CIA overseas employees
are comparable to the conditions of service of Foreign Service
employees, the Foreign Service Leave System, should be adopted by CIA.
I mas instructed to study the Foreign Service leave regulations, confer with
State Department officials regarding the methods of operating this system.,
and prepare a specific instruction providing for the adoption of this system
by CIL.
2. There is attached hereto as Tab R a comparison schedule showing the
principal points of difference between the Standard (Civil Service) and the
Foreign Service Leave Systeme.
S. There is also attached as Tab C a letter from the Assistant Secre-
tary of Defense to the Speaker of the Rouse of Representatives regarding
proposed legislation to correct inequity and disparity among the three
military departnents in the matter of leave of overseas employees. Mile
the leave problems confronting the military agencies are not identical to
those confronting CIA it is perhaps significant that their study and review
of the general problem resulted in the folio:dug conclusions:
a. The existing disparity in leave policies and practices has
a depressing effect upon employee morale and efficiency.
b. Smployees who are recruited in the U. S. for oversees duty
should be permitted to accumulate annual leave to a higher maximum
than that which is presently authorised for domestic service in
the U. S.
o. The authority to grant duty-status round-ttip travel time to
mainland recruited employees for the purpose of taking annual leave
in the U. S. is desirable for its salutary effect au employees' morale
and efficiency.
Ton will note that the Foreign Service Leave Regulations, attached hereto as
Tab D, incorporate the principles outlined above.
enNE1
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? _
MFIDENTIAL
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40.
4. I have reviewed with State Department officials the methods employed
by the Department in accruing. granting and reoording leave under the Foreign
Service Leave Systems and it does not appear that CIA would experismeso any
unusual difficulties in the practical adainistration of this system.
5. The Foreign Servioss Leave System would appear to have the followiag
advantages as compared to the Standard (Civil Sortie') Leave Systems
e. would improve emplOyee morale and soffloisseey by increasing
the maxima accumulation of leer* that could be used for rest, reeup-
erationtand in emergenoies;
4. would be fair and equitable to the employees and the governmen
sine* it would extend privileges and benefits identical to those
approved by the Congress for Foreign Service personnel serving under
comparable conditions (as well as SCA personnel and personnel of other
government &Emotes. Comoro', Agrieulture. *to., serving with State
Department overseas);
f. would enable the Agency to withhold the granting of leave
when the employee', absence 'would adversely affect the interests of
the service.
O. The Foreign Servios, Leave System *mid appear to have the following
disadvantages as compared to the Standard (Civil Service) Leave Systems
a. Costs to the Agency -would be increased became* the ezeose
rate of asteroid and the inerease in maximum aoeumulaticei would result
in larger lump sum 'sapient. at the time of termination or transfer te
50X1 a different lows systems.
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MPoien= *,CONFIDENTIAL
Q.111Eitim '-
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CONFIDENTIAL
b. Presumably the Agency would be deprived of the employees*
services ter a longer period of time each year because of the increased
rate at which annual leave is earned. Hevever, I an informed by State
Department officials that restrictions on granting leave under the
Foreign Service Sywtemare mach that as a practical matter the actual
leave taken is not as great iniroportion as the inereased rate of
accrual under this system might indieste.
7. Attaohed hereto asTab X is a draft of a proposed Administrative
Instruction which provides for the adoption of the Foreign Service Leave
System as of 1 April 1951. This Imstmuetion Is in offset a synopsis of
the Fbreign Service Leave Regulations, except that paragraph 5 e, paragraph
8 after the word Provided, and paragraphs 9 and 10 contain provisions that
are intended to oex-ovontingenciis and problems that are peculiar to CIA.
8. If it ls decided that the Foreign Service Leave System should be
adopted by CIA as of 1 April 1951, the following action mould be required;
a. The attached Administrative Instruction should be released
on or 'before 15 March 1951;
b. A copy-of the Foreign Service Leave Regulations with an
appropriate Agency Notice should he released to all Agency field
installations not later than 20 March 1951;
c. The Personnel Division would establish a roster of "Field"
employees as of 1 April 1951;
d. The Finance Division would oonverb the leave of all employees
on this roster fraa the Standard (Civil Service) Leave System to the
Foreign Service LIMY'S System of 1 April 1951;
e. Thereafter the leave of field employees would be accrued,
accumulated, granted, and administered in accordance with the provisions
Of the attached Administrative Instruction and Foreign Service Leave
Regulations.
Attaolments
FPB:jhb
.CONFIDENTIA,
STAT
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Comparison of Staneard (Civil Servie)'and /*reign, Service Leavy Benefits
Standaervi2a1p_..._._.___LeaveRenefltsForeiServiceLeaveBenefits
1. Rate of aeons,/
(a)
Annual lam acerues at the rate
of 2 orkin &we per year.
Equiva en 36 calendar days.
Sick leave accrues at the rate
of 16 Totting days per year.
Rquiva en to 21 calendar days.
2. Miximna accumulation
( a )
The accumulated maxim= of annul
leave whioh may be earned inte t
new calendar year (with certain
exoeptions) 10 60 eorking,der.
Equivalent to $4 .alwdar days.
(b) The aseumulated maximum of silk
leave which may be oarrisd into a
new calendar year is 90 ear
days. Equivalent to 126 ca in
days.
3. Granting of Annual Leave
( a )
An employee has a legal right ,to
take leave ehieh he mauld Other-
wise lose, without regard to the
needs of the service.
(b) Any pr all leave soeumnlated may
be granted at any time or place.
Exeept that all leave earned in
the U.S. in the *slender year 1.960
must be taken before 30 June 1961
or forfeited (Public; Law 769)
4. Lump Sam Parents for Leave
(a) Lump Sum payment for accumulated
annual leave may be made upon
termination or upon transfer to a
position under another leave system.
1. Rate of Atonal
(a)
Annual have accrues at the rate
of M eitendar days per year.
iquivilekt to 42 working. der.
(b) Sisk leave uterus* at the rate
of 16 Calendar days per year.
Equivalent to 10 'working days.
Maximum aopumulation
(a)
The ammoniated maximum of
annual leave 'thick may be
carried into a now calendar year
is 160 ealendar days. Equivalent
to 120 0prkinA days.
(b) The accumulated maxima of slok
leave whieh nay be earried into
riWcalendar year is 120
calender dive. Equivalent to
A working, days.
Granting of Annual team,
(a)
An employee must take his leave
at tines and periods when his
absence will not adversely affect
the interests of the U.S. He
does net have the right to take
leaviniorthout regard to the needs
of the service.
(b) leave is limited to 30 calendar
days per year. exospt that after
a full year abroad, and there-
after in alternate years during
the ?course of his tour of duty
abroad, an employee may be granted
an additional 30 ealendar daye of
annual leave for use oni../ in the
U.S. Not more than drileendar
days of leave may be granted at
any one time except in the case of
illness or under unusual oiroun-
stances.
4. Lump Sum Parents for Leave
(a) Lump SVM payment for accumulated
annual leave may be made upon
termination or upon transfer to
position under another leave
system.
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3TAT
1951 ?CONGRESSIONAL RECORD-CSE
things are needed. First, greatly increase
size of these ICC orders: second, insist upon
immediate compliance with orders: third,
extend life of orders beyond expiration date
of March 31. Urgency of ithmediate action
on this program cannot be overemphasized.
LUTHER W. YOUNGDAHL,
Governor of Minnesota.
NORMAN BRUNSDALE,
Governor of North Dakota.
JOHN W. BONNER,
Governor of Montana.
SIGURD ANDERSON,
Governor of South Dakota.
PERMISSION TO ADDRESS Tilt, HOUSE
Mr. JAVTrS. Mr. Speaker, I ask
unanimous consent to address the House
for 1 minute and to revise and extend
my remarks.
The SPEAKER. Is there objection to
the request ?f the gentleman from New.
York?
There was no objection.
TELEVISING AND BROADCASTING
IMPORTANT HOUSE DEBATES
Mr. JAVITS. Mr. Speaker, the new
smash hit on TV is the Senate Crime In-
vestigating Subcommittee in New York.
The hearings have hit a Hooper rating
of 26.2?more than 1 in every 4 sets is
tuned in?in the New York area, a new
all-time high and 20 times normal.
Yet this is not entertainment. It
demonstrates the deep interest of the
people in seeing and hearing what goes
on in public affairs. I think it fair to
say it proves that televising and broad-
casting the important debates in the
Congress would prove just as popular
and just as important. Let us make the
fishbowl in which we properly operate
as big as the country.
My resolution?House Resolution ,62?
gives the Speaker full power to control
televising and broadcasting of the House
sessions to be sure that it is not done
with a snooping camera seeking to em-
barrass. Rather it is a means for ex-
tending the House gallery to include the
whole country. Those who havetheen
deeply disturbed by the fact that 40 per-
cent of Americans chronically do not
vote despite the present crisis for democ-
racy, have their answer in awakening
the interest of our people in Government
by making them a part of it as TV is
doing in New York today.
HOUR OF MEETING TOMORROW
Mr. PRIEST. Mr. Speaker, I ask
unanimous consent that when the House
adjourns today it adjourn to meet at 11
o'clock tomorrow.
The SPEAKER. Is there objection to
the request of the gentleman from Ten-
nessee?
There was no objection.
SPECIAL ORDERS GRANTED
Mr. BEES of Kansas asked and was
given permission to address the House
for 10 minutes tomorrow, following the
legislative program and any special
orders heretofore entered.
? Mr. BENDER asked and was given per-
mission to address the House for 20 min-
? utes tomorrow, following the legislative
program and any special orders hereto-
fore entered.
SPECIAL ORDER
The SP:. AIC-R. Under previous order
of the Hoe, Lie gmtleinan from Cali-
fornia [Mr. McKumoN] is recognized for
30 minutes.
? MEDICAL EDUCATION
Mr. McKINNON. Mr. Speaker, the
medical education bill which I am in-
troducing today speaks for itself. The
average citizen, I am sure, can under-
stand it onthe first reading. More im-
portant, he will appreciate the soundness
of a plan that proposes to safegUard the
health of our fighting forces and civilians
alike, by the investment of a quarter of
1 cent for every dollar spent on guns,
tanks, planes, and ships, in the construc-
tive effort to increase the number of doc-
tors in our country.
There is a critical shortage of doctors
in the United States today. In the year
1950 we had fewer general practitioners
of medicine than we had in the year 1940.
Significantly, while the population of the
United States increased abOut 15 percent
In the 10 years from 1940 to 1950, the
- number of general practitioners de-
creased over 12 percent in these 10 years.
During these years not only did the needs
for medical care increase but since the
Korean crisis last summer the Armed
Forces have announced they will need
17,500 physicians, which is 11,300 addi-
tional physicians to care for our ex-
panded force of 3,500,000 in the arm
services. The needs of our Armed F
for additional doctors has alre In-
creased the shortage of doctor or the
civilian population, and the St is yet
to come. If any crisis s ? d develop,
such as an atomic at upon us, the
need for doctors would become desper-
ate?tragically desperate.
Even now the acute shortage Of doctors
Is a critical national problem. Gener-
ally, medical education?as well as other
forms of education?should be a local
community problem. It is the hope that
the towns, cities, and States of this coun-
try will continue themselves?combined
with private effort?to do everything
humanly possible to increase the number
of well-trained doctors to meet the pres-
ent emergency needs. But the problem
on a Nation-wide scale is today of such
an emergency character that the Federal
Government should participate over the
next 5 years to help finance the training
of an adequate number of doctors to meet
our national health needs.
It is to be borne in mind that in order
to graduate more doctors annually with:.
out impairing the level of medicine, we
must provide for an expansion of exist-
ing medical colleges, particularly as to
classrooms and teaching staffs, in addi-
tion to the expansion of the hospitals
connected with the medical colleges, in-
cluding clinics and kindred facilities.
Yet it is well known that the medical
colleges today are experiencing great
difficulties in supporting themselves as
they are. They, therefore, are in no po-
sition to finance a 5-year expansion plan
In order to increase the number of doc-
tors for our people.
If we have enough well-trained doc-
tors to meet the health needs of the coun-
try, the free competitive system will work
so that there will be more doctors avail
able for the rural areas and smaller citie
where there exist today a dangerou
lack of physicians. With enough well
2787
trained doctors, we ought to be able
effectively to work out an extension of
the voluntary hospital plans and other
private means for supplying adequate
medical care to all the American people.
When we consider what we are spend-
ing for guns, planes, ships, and tanks
and other weapons of war to prevent war
and to safeguard the peace, we ought to
be willing to spend one-fourth of a cent
for every dollar spent for munitions in
order to help preserve life and to safe-
guard the national health without which
we cannot be a strong and vital nation,
and a nation capable of securing the
peace:
We need to act?and to act promptly?
to begin ? to,. have enough highly trained
doctors, particularly general practition-
ers, to meet the vital health needs of this
country, for it is already later than we
think.
Mr. Speaker, I ask unanimous consent
to yield the balance of my time to the
gentleman from North Carolina [Mr.
CHATHAM].
The SPEAKER. Is there objection to
the reque
fornia?
he gentleman from Cali-
as no objection.
SPEAKER. The Chair recognizes
gentleman from North Carolina [Mr.
narnAml for 25 minutes.
ORGANIZATION AND OPERATION OF THE
DEPARTMENT OF STATE
Mr. CHATHAM. Mr. Speaker, on
Wednesday, March 14, the gentleman
from Illinois [Mr. BUSBEY] made a
speech on the floor of this House and
said that the Secretary of State, Hon.
Dean Acheson, was scheduled to release
a directive which, in his opinion, would
have a far-reaching effect on our for-
eign policy anc: would be more detri-
mental to our country than anything
that has taken place in our entire his-
tory. He said that it was by far the most
subtle and clever scheme he?the Sec-
retary of State?had ever engineered
and that without any Member of Con-
gress having knowledge of it, except for
the last few days, he was about to put
into effect a so-called amalgamation or
integration of the State Department and
our Foreign Service. The gentleman
further stated that if Congress did not
take steps immediately to have Secre-
tary Acheson hold this directive in
abeyance until such time as all Members
of Congress could thoroughly study. the
meaning of it. and all its implications, it
would be too late for us to do anything
about it.
I do not know where the gentleman
from Illinois got his information, but as
chairman of the Subcommittee on the
Organization and Operation of the De-
partment of State of the Foreign Affairs
Committee I can say that he evidently
did not know the true facts of the case.
This consolidation has been worked_ on
and talked about for several years, and
there has been nothing secret or ne-
farious or of "clever maneuvering"
going on. The gentleman further has
charged that the Secretary of State is
attempting to make himself a dictator
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2788 COIPRESSIONAL RECORD-HOUS,
gentleman apparently entertains. The
gentleman from Illinois said last week
that this personnel improvement plan
was based on one sentence of the
Hoover report. That is not so. On the
contrary, the Hoover report on foreign
affairs covers this subject thoroughly on
eight pages out. of their 73-page report.
It is interesting to know further that the
Hoover Commission task force which
made this study was headed, not by Sec-
retary Acheson as Congressman BUSBEY
suggests, but by two former Republican
Assistant Secretaries of State?James
Grafton Rogers and Harvey H. Bundy?
with Henry R. Stimson as principal
adviser.
To set the record straight, I would like
to recall to you that after the Hoover
Commission's report was issued a special
committee was set up composed of Hon.
Robert Ramspeck, who probably knows
more about civil service than any other
man in the country; Hon. Jam a Rowe,
? who was a member of the Hoover Com-
mission; and the United States Ambas-
sador to Haiti, Mr. DeCourcy, a veteran
a 30 years experience in the career of
Foreign Service. This* commission en-
dorsed the proposal made in the Hoover
Commission report, and the State De-
? partment has been working on the mat-
ter constantly ever since.
I can reassure the Members of this
House that the State Department had
no intention of reorganizing its person-
nel systems before consulting with the
Congress. The representatives of the
State Department have been trying for
some time to set up a meeting with
our committee, but our crowded sched-
ules and various other reasons prevented
this first meeting until last week. For
the information of the gentleman from
Illinois I will take personal responsibil-
ity for the delay in the meeting which
was scheduled to occur at the request
of the State Department before his
speech on the floor of the House. As
chairman of the subcommittee, I asked
that the meeting be scheduled with the
State Department at the end of our
hearings on the proposed grain for
India legislation, and a meeting was set
for the morning of Wednesday, March
14. I had a long-standing engagement
in North Carolina on that date and the
following day, -the 15th, to speak at the
annual Farmers Day in my district, and
knowing there was no hurry in the mat-
ter I asked the clerk of the committee
to postpone the meeting until Friday,
the 16th, at which time it was held.
The gentleman from Illinois has indi-
cated that a directive was to have been
issued by the Secretary of State on
March 16. In reply to his telegram to
'Secretary Acheson asking that he with-
hold issuance of the directive, he re-
ceived a message from Assistant Secre-
tary of State Humelsine, as follows:
In reply to your telegrams to Secretary
and me. As I advised you in previous con-
versations, Department does not and never
did have any intention of releasing any ma-
terial on personnel subject Until consulta-
tion held with appropriate committees of
House and Senlite.
It has been my understanding that
the date-Of Marell 16. MI:Ad Yuitaffie=
el,
,4 i!4**r.,
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er
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time ago as a target date by which time
the State Department had hoped to
have completed its hearings before the
appropriate congressional committees.
I think most of us are in favor of a
great many of the Hoover Commission's
recommendations, and certainly I per-
sonally am for consolidating and stream-
lining the State Department in many
respects. The Honorable John Peurifoy
did an outstanding job as Assistant Sec-.
retary of State working along these lines.
He is personally known to a great many
of you. The proposed amalgamation of
the State Department and Foreign Serv-
ice personnel has been endorsed by the
Board of the Foreign Service, which is
an interdepartmental group set up by
the Congress in 1916 to advise the Sec-
retary of State on the administration of
the Foreign Service. In fact, the Board
of the Foreign Service recommended to
the Secretary that he issue the directive
which has so frightened the gentleman
from Illinois. The Executive Commit-
tee of the Foreign Service Association,
which is a voluntary association of For-
eign Service officers, has endorsed this
program. They evidently believe that it
is going to help their organization rather
than "wreck the Foreign Service," as the
gentleman from Illinois has alleged.
The whole tenor of the recommenda-
tions has pointed out the fact that the
amalgamation should take place over a
period of several years so as to gradually
go into effect and not upset the orderly
operation of the State Department. I
believe the members of the Foreign
Affairs Committee who sat with me last
Friday when Mr. Humelsine explained
the State Department plan will agree
that it is utterly ridiculous to charge
that this measure would give the Secre-
tary of State "the absolute power of a
dictator" as the Member from Illinois
said last week.
Mr. MANSFIELD. Mr. Chairman, will
the gentleman yield?
Mr. CHATHAM. I yield to the gen-
tleman from Montana.
Mr. MANSFIELD. I wonder if the
gentleman at this point would include in
his remarks the names of the members
of the ? committee who were present at
that meeting?
Mr. CHATHAM. I should be delighted
to. At the meeting at which I presided
the following members were present:
? Mr. KEE, Mr. CARNAHAN, Mr. Voays, Mr.
CARROLL REECE, Mr. BATTLE, and Mr.
MANSFIELD.
I cannot understand how a perfectly
logical, sensible plan of administrative
reform can be magnified into a mon-
strous threat to the traditions and ideals
of the Foreign Service.
Let me tell you what the State De-
partment plans to do, then you can see
how obviously'exaggerated was the cry
that this would put an end to the Foreign
Service We have known.
For one thing, the State Department
plans to have more of its people get ex-
perience abroad. This seems like a sen-
sible thing to work toward in an or-
ganization that is in the business of for-
eign affairs. There are several ways
by which they expect to accomplish this.
First, they will have a number of For-
eign Service and civil-service people
MARCH 20
switch jobs for a couple of years under
a personnel exchange program. That
way the civil service careerznan will get
the benefit of experience working abroad
at one of our embassies, while the For-
eign Service man learns how things are
done here in Washington. Under this
exchange system, they will both retain
their previous status?Foreign Service
or civil service?after the exchange has
been completed.
? Mr. RICHARDS. Mr. Speaker, will
the gentleman yield? "
Mr. CHATHAM. I yield to the gen-
tleman, from South Carolina.
Mr. RICHARDS. Is not what the
Secretary of State proposes to do here
exactly what the Hoover Commission
recommended?
Mr. CHATHAM. It was within- the
recommendations of the Hoover Com-
mission.
Mr. RICHARDS. It does not go as
far as the Hoover Commission went, does
it?
Mr. CHATHAM. It does not go as far
as yet.
Mr. RICHARDS. Neither does it go
as far as the Rowe-Ramspeck-DeCourcy
special committee recommended.
Mr. CHATHAM. That is correct.
Mr. RICHARDS. In other words,
these changes are very moderate pro-
posals along the lines of the recommen-
dations of the Hoover Commission and
the special committee?
Mr. CHATHAM. These changes are
In line with the recommendations. As
yet they have not gone as far as they
have recommended, but they are leading
toward the complete recommendation.
Whether that will be adopted is up to the
State Department and the Congress and
the congressional committees.
This program should assure you that
the Government would have more ex-
perienced Foreign Service officers work-
ing in the various departments in
Wa?hington and more experienced de-
partmental officers working abroad. It
will also assist in keeping our Foreign
Service representatives abroad more
closely in touch with the trend of things
back here at home. lam personally con-
vinced that there is absolutely no danger
of weakening the Foreign Service
through this process, but that it will be
immeasurably strengthened. Civil-serv-
ice people are not going to be blanketed
into the Foreign Service. They are going
to be very carefully screened and only
the best qualified people will be admitted.
The over-all quality of Foreign Service
will be improved in this program. From
all I have been able to learn the stand-
ards of the Foreign Service will be
raised, not lowered, under this -program.
Those chosen, Strictly by merit, will be
taken according to the provisions of
section 517 of the Foreign Service Act
of 1946.
I also understand the State Depart-
ment plans to increase Foreign Service
officers' recruitment at the bottom of
the scale by taking into the Service a
greater number of qualified young men
and women by the competitive Foreign
Service examination process. This is
necessary to build up the strength of
the Foreign Service for the years ahead
and is in keeping with the Foreign Serv-
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1951 CONGRESSIONAL RECORD?HOUSE
ice Act of 1946. Today's high standards
will continue to prevail and only the very
best candidates will be accepted. That
is the way it has been, the way it should
be, and the way it is going to continue
under these plans.
Still another improvement is going to
be to simplify the various categories of
Foreign Service personnel. The Foreign
Service staff category will be converted
into a technical and clerical group, and
the Foreign Service reserve group will be
used for temporary appointments.
Other points in the personnel im-
provement program will eliminate some
of the existing inconsistencies in pay,
classification and leave systems, and im-
prove the processes of recruitment selec-
tion, assignment, training, and promo-
tion of both Foreign Service and depart-
? mental employees. I have looked into
this matter very carefully, and I am
satisfied that the personnel improvement
program is intelligent, logical, and a per-
fectly honest and conscientious attempt
to improve the work of this Government
in the field of foreign affairs.
The gentleman from Illinois has
charged that the Secretary of State is
attempting to make himself a dictator
in the field of personnel administration,
and alleges the plot is to throw wide the
doors to patronage and favoritism in
making appointments in Foreign Serv-
ice. He has alleged that by clever
maneuvering the Secretary of State has
brought his stooges into 19 of the 20
top jobs of the State Department, and
I say to you that this charge is reckless,
unfair, and has no basis in fact. I
would like-to list about 30 of the top
jobs in the State Department?I will not
stop at 20?and let you decide whether
these men are stooges of the Secretary.
I might remark that outstanding among
these top places are outstanding citi-
zens from North and South Carolina,
and if Secretary Acheson has maneu-
vered them into these top jobs, I con-
sider that he has done a most patriotic
deed for his country.
I list herewith the top men under the
Secretary of State in their ranking
order in respect to the gentleman from
Illinois' statements that Mr. Acheson
had- brough this stooges into 19 of the
20 top jobs in the State Department.
First. Hon. James E. Webb, Under Sec-
retary of State: An outstanding citizen
not only of North Carolina but until he
came into the Government an outstand-
ing success in the business world. You
may know of his brilliant achievement
in organizing the Sperry Corp., for this
company grew from 800 men to 30,000
men, and gained widespread recognition
as one of the best organized and operated
corporations in America. Jim Webb left
his position as vice president of the
Sperry Corp. to enter the marines during
the war. He served as a marine officer
until he was called into the Treasury
Department in a high position in 1945,
and was brought here by our beloved
North Carolinian, Hon. 0. Max Gardner.
He was next made Director of the Bureau
of the Budget, and his work there was
proof of his ability: With Jim Webb
at the helm the Bureau of the Budget
reached an efficiency it had never ob-
taMed before, respected inside and out-
side the Government. He was chosen
to be Under Secretary of State during
a time of critical international condi-
tions and has provided leadership and
enlightened direction in the reorganiza-
tion of the State Department. I per-
sonally believe that Jim Webb has done
more to improve the operation of the
State Department than any Under Sec-
retary in the history of the Department.
Second. Harrison Freeman Matthews,
Deputy Under Secretary: Mr. Matthews
is a career Foreign Service officer. He
entered the For,eign Service at the
bottom in 1923 and served in diplomatic
posts -all over the world. During the
First World War Mr. Matthews was a
naval officer; in the Second World War
he served effectively on the important
Combined Civil Affairs Committee of
the Combined Chiefs of Staff, and as
Minister and Counselor of Embassy in
London. In 194'7, after a long and ex-
ceptionally outstanding career as a
diplomat capable of handling any as-
signment in the Foreign Service, Mr.
Matthews was confirmed as Ambassador
to Sweden. He was recalled from this
important post last year to become the
Deputy Under Secretary of State
charged with coordinating the foreign-
political affairs of the Department.
Matthews has the well-earned reputa-
tion of being one of this country's most
knowledgeable and distinguished ca-
reer diplomats.
Third. Carlisle H. Humelsine, Deputy
Under Secretary of State: Mr. Humel-
sine, after graduating from college, be-
came assistant to the president of the
University of Maryland. During the
war he was a colonel of the General
Staff, serving with distinction in the War
Department and two theaters of opera-
tion. He was awarded the Distinguished
Service Medal. After the war he joined
the State Department as Director of
the Office of Departmental Administra-
tion when Mr. Byrnes was Secretary of
State. When General Marshall be-
came Secretary of State, Mr. Humel-
sine was given the mission of organizing
and directing the executive secretariat,
which has proven to be one of the most
significant organizations of the De-
partment. Mr. Humelsine served as
director of the executive secretariat ?
until he became Jack Peurifoy's deputy
last spring. He succeeded Mr. Peuri-
foy as Deputy Under Secretary ? when
the latter became Ambassador to
Greece. Mr. Humelsine is as near a
carer public servant as you can become,
and still occupy a political job.
Fourth. John Dewey Hickerson, As-
sistant Secretary, 'UN Affairs: Jack
Hickerson is another career Foreign
Service officer, a Texan, and a Republi-
can. He entered the Foreign Service in
1920 as a lowly clerk in the consular
service. Through outstanding ability he
worked his way up to the position he
holds today?Assistant Secretary for
United Nations Affairs. Hickerson's ex-
perience Las been comprehensive and
varied. He is an expert in international
organizations and international aviation,
as well as an authority on Europe, South
America, the Near East and Africa.
2789
Moreover, he is a master of the difficult
art of multilateral negotiation.
Fifth. George W. Perkins, Assistant
Secretary, European Affairs: Mr. Per-
kins has been in the State Department
for less than 2 years. He came to the De-
partment from the business world in
which he had distinuished himself for 30
years. Incidentally, he is also a Re-
publican. It takes but a glance at Mr.
Perkins' background to confirm that he
is eminently qualified for the post he
holds. Not only has he held high posi-
tions in an impressive number of im-
portant business enterprises but he has
done much to further educational insti-
tutions and has served his country both
in uniform and as a civilian. He served
in World War I as a second lieutenant,
in World War II as a full colonel. Mr.
Hoffman prevailed upon him to head the
important industries branch of ECA in
Paris. He accepted his present post as
Assistant Secretary of State for Euro-
pean Affairs at a great financial sacrifice
because he felt it his patriotic duty to
serve his country in time of crisis once
again. ?
Sixth. Willard Thorp, Assistant Secre-
tary, Economic Affairs: Mr. Thorp, a
doctor of philosophy in economics, first
entered the Government in 1923. Be-
tween that time and 1945, he served in
various Government capacities, as a pro-
fessor, and as a successful businessman.
He was appointed Deputy Assistant
Secretary for Economic Affairs under
Secretary of State Stettinius; Assistant
Secretary for Economic Affairs under
Secretary of State Byres; continued as
Assistant Secretary under Secretary of
State Marshall and now Secretary of
State Acheson. Mr. Thorp is more than
one of this country's best economists; he
is a skillful negotiator and a far-sighted
and astute planner. He is also as much
at home with international political
problems as he is with the economic
problems. Mr. Thorp, by the way, was
the Director of the Bureau of Foreign
and Domestic Commerce during the
Hoover administration.
Seventh. Henry A. Byroade, Director
ci; the Bureau of German Affairs: Colonel
Byroade is a Regular Army officer who is
on loan to the State Department from
the Army. Colonel Byroade has a bril-
liant war record and was one of the
youngest generals in the World War II.
His reputation for politico-strategic
planning is respected in military and dip-
lomatic circles both in the United States
and in other countries.
Byroade has distinguished himself in
this country and abroad in his handling
of the German problem. He came into
the Department when General Marshall
was Secretary of State.
Eighth. Thomas E. Cabot, Director,
International Security Affairs: Mr. Cabot
has been a distinguished Boston busi-
nessman for years. He is a former pres-
ident of the United Fruit Co. and a for-
mer member of the board of this com-
pany. He has had a great deal of ex-
perience in dealing with other countries
and has an enviable reputation for get-
ting things done. He was brought into
the Department to supervise the NATO
operation and to administer the Mutual
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2790 CONGRESSIONAL RECORD-HOUSE
Defense Assistance Act?a very tough as-
signment in view of the requirement to
stimulate the enthusiastic cooperation
of so many nations. Mr. Cabot, inci-
dentally, is also a Republican.
Ninth. Jack McFall, assistant secre-
tary, congressional relations: Jack Mc-
Fall was well known to many of us long
before he became an Assistant Secretary
of State. He is a career Foreign Service
officer who, before joining the Foreign
Service, was clerk of the House Appro-
priations Committee.
Tenth. Charles E. Bohlen, counselor:
Mr. Bohlen is a career minister in the
Foreign Service. He has been a distin-
guished career officer for 22 years and is
one of the foremost experts on the Soviet
and world communism. He has held
high posts in many of our embassies?
including London, Paris, Berlin, and
Moscow?as well as in the Department.
Bohlen was also counselor when Gen-
eral Marshall was Secretary of State.
Moreover, he has been adviser to five
Secretaries of State.
Eleventh: George F. Kennan t former
counselor: Mr. Kennan is also a career
Foreign Service officer of distinction. He
is now on sabbatical leave from the De-
partment and is studying at the Institute
of Advanced Studies at Princeton. Mr.
Kennan is one of the most brilliant
thinkers of our time and until recently
held the position of counselor in the De-
partment. He is the author of the fa-
mous Mr. X article, which depicted the
treacherous and sinister nature of Soviet-
directed world communism. Under Sec-
retary of State Marshall he became the
first Director of the Policy Planning Staff,
an organization the general established
to assure long-range foreign-policy plan-
ning.
Twelfth. Dean Rusk, Assistant Secre-
tary for Far Eastern Affairs: After a most
impressive education and university-
teaching experience, Mr. Rusk entered
the Army in December 1940. His World
War II service lasted until early 1946.
He distinguished himself in intelligence,
operational, and planning assignments
In the Burma campaigns and in the War
Department. He entered the Depart-
ment in February 1946, when Mr. Byrnes
was Secretary. After serving as a Spe-
cial Assistant to the Secretary of War
in 1946 and early 1947, he returned to
the State Department as Director of the
Office of Special Political Affairs. A short
time later Secretary of State Marshall
appointed him Director of UN Affairs,
an assignment he executed with excep-
Commission. He reentered the Depart-
ment of State as legal adviser in June
1949. Incidentally, Fisher was a Phi Beta
Kappa at Princeton and captain of the
Princeton football team.
Fourteenth. W. Park Armstrong, Jr.,
special assistant, Intelligence: After a
successful career in the investment
banking field from 1929 to 1942 Mr.
Armstrong joined the Board of Eco-
nomic Warfare during the early stages
of the war. Shortly, however, he was
commissioned in the Army Intelligence,
serving With distinction as an Intelli-
gence officer until 1946. He entered the
Department of State as an intelligence
adviser in July 1946 when Mr. 'Byrnes
was Secretary. He was named to his
present post by Secretary Marshall in
recognition of his outstanding ability for
planning, directing, and coordinating in-
telligence activities. The post of Special
Assistant for Intelligence is comparable
to that of an Assistant Secretary of
State.
Fifteenth. Edward W. Barrett, Assist-
ant Secretary for Public Affairs: Mr.
Barrett entered the Department of State
alter 20 years of journalistic experience,
gained through over .15 years with a
leading weekly news magazine and work
with newspapers and in radio. He also
brought to his present highly important
post the experience of several years of
top-level work in the Office of War In-
formation and as a member of the
Psychological Warfare Branch of the
Allied Forces Headquarters in North
Africa. He also las considerable experi-
ence in the management phase of news-
paper and magazine publication. This
record of achievement in fields in which
he now advises the Secretary of State
plus his driving energy and initiative
bear witness to his fitness for his State
Department job.
Sixteenth. George C. McGhee, Assist-
ant Secretary for Near Eastern, South
Asian, and African Affairs: Mr. McGhee,
as you may know, is a successful busi-
nessman who started his career in the
Texas oil fields as a young man without
funds but with a determination to suc-
ceed. By the time he was 30 he was
a phenomental success. Then he turned
to his life-long ambition?to serve his
country. So he entered the Govenment
in 1941, working first in the Office of
Production Management and then in the
War Production Board. Soon he was
commissioned in the Navy and rose to
the rank of lieutenant commander, serv-
ing with distinction in the Pacific opera-
tional ability. He was made Assistant tions. When he entered the Department
Secretary in February 1949, and later in of State on January 2, 1946, as a special
March of last year was given the critical assistant in the Office of the Assistant
Par East post he now holds. Mr. Rusk Secretary of Economic Affairs, Mr.
is one of the most outstanding, truly bril- Byrnes was Secretary. McGhee's driving
liant men in public service today, energy and pronounced ability soon
Thirteenth. Adrian S. Fisher, legal ad- earned him the position of special assist-
viser : Mr. Fisher has held a series of ant to the Under Secretary for Economic
high legal posts in the Government since Affairs. Later, under Secretary of State"
1939. He entered the Department of Marshall, he Undertook, with a degree of
State in April 1941 when Mr. Hull was success which is a matter of common
Secretary and resigned in May 1942 to knowledge to the Congress and the rest
enter the Air Force, serving as a combat of the free world, the direction of the aid
navigator and a war crimes prosecutor, programs for Greece and Turkey, in
After World War II he served as Solici- 1947. His appointment to his present
tor of the Department of Commerce and job as Assistant Secretary for an area
general counsel of the Atomic Energy the tremendous political and strategic
MARCH 20
Importance of which grows daily, is the
direct result of the imaginative, force-
ful and able execution of every assign-
ment Mr. McGhee has been given in
the Department. His success in his
present position testifies to the wisdom
of -the choice.
Seventeenth. Edward G. Miller, As-
sistant Secretary, Inter-American Af-
fairs: Mr. Miller, a lawyer of ability, en-
tered the Department of State in 1941
when Mr. Hull was Secretary of State.
He rose- through the ranks to become a
Special Assistant to Acheson when he
was Assistant Secretary under Secre-
tary Stettinius. Later he became Spe-
cial Assistant to Acheson when the latter
was made Under Secretary during Mr.
Byrnes' regime as Secretary of State.
Mr. Miller reentered private law prac-
tice briefly. In June 1949, however, as
a matter of patriotic duty in face of the
emergency and at considerable financial
sacrifice, he returned from the firm of
Sullivan and Cromwell to the Depart-
ment to assume his present post.
Eighteenth. Henry G. Bennett, Ad-
ministrator of the .Technical Coopera-
tion, point 4: Dr. Bennett is known to
and respected by many Members of this
House. After a distinguished career in
secondary and university education in
Oklahoma, Dr. Bennett served as presi-
dent of the Oklahoma A & M from 1928
until he was named to take over the
point 4 program some months ago.
That Dr. Bennett was named to run the
highly important point 4 program augurs
well for the administration of this pro-
gram. That Dr. Bennett accepted this
position was a fine thing for the Gov-
ernment and the country, as well as for
the Department of State. Henry Ben-
nett got the position he now holds for
the reason that he has made a tremen-
dous record over the years as the head
of an important land grant college.
DEPUTY ASSISTANT SECRETARIES
Now let us look very briefly at the
backgrounds of all of the Deputy Assist-
ant Secretaries?the No. 2 men:
Nineteenth. Livingston Merchant,
Deputy Assistant Secretary for Far East-
ern Affairs: Career Foreign Service
officer.
Twentieth. Burton Berry, Deputy As-
sistant Secretary for the Near East and
Africa: Career Foreign Service officer.
Twenty-first. James Bonbright, Dep-
uty Assistant Secretary for European
Affairs: Career Foreign Service officer.
Twenty-second. Thomas Mann, Dep-
uty Assistant Secretary for Inter-Amer-
ican Affairs: Career Foreign Service
officer.
Twenty-third. Geoffrey Lewis, Deputy
Director of the Bureau of German Af-
fairs: Career civil servant.
Twenty-fourth. Durward Sandifer,
Deputy Assistant Secretary for United
Nations Affairs: Career civil servant.
Twenty-fifth. Ben Hill Brown, Dep-
uty Assistant Secretary for Congres-
sional Relations: Career civil servant.
Twenty-sixth. Howland Sargeant,
Deputy Assistant Secretary for Public
Affairs: Career' civil servant.
Twenty-seventh. Walter K. Scott,
Deputy Assistant Secretary for Admin-
istration: Career civil .servant.
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1951 CONGRESSIONAL RECORD-HOUSE
1 Twenty-eighth. Fisher Howe, Deputy
Special Assistant for Intelligence: Career
civil servant.
Twenty-ninth. Jack Tate, deputy legal
adviser: Career civil servant.
Thirtieth. Harold Linder, Deputy As-
sistant Secretary for Economic Affairs:
Recently appointed to the Department,
Mr. Linder has extensive experience in
economics, particularly finance. He was
president of an important investment
.banking house.
Thirty-first. Charles A. Coolidge, Dep-
uty Director of International Security
Affairs: Recently appointed to this im-
portant post, Mr. Coolidge is widely
known as one of New England's most dis-
tinguished lawyers.
In passing I should like to call atten-
tion to the record of another officer of
high position in the Department,
especially since this officer is the Secre-
tary's spokesman with the press.
Michael J. McDermott, special as-
sistant to the Secretary of State for
press relations: Secretary Acheson is
the ninth Secretary of State for whom
Mr. McDermott has worked. Mr. Mc-
Dermott entered Government service,
in the War Department and the Execu-
tive Office of the White House, in July
1917. He entered the Department of
.State in August of 1920 when Mr. Colby
was Secretary of State, back when they
paid junior officers $1,600. Secretaries
Kellogg and Stimson saw fit to promote
him. When Mr. McDermott became
special assistant to the Secretary on
press matters, it was Cordell Hull who
named him to this post, and he has held
this high position under four Secretaries
of State.
Could one conclude from this record
that Mr. Acheson is rewarding his friends
with State Department posts. If such a
conclusion can be drawn, I can only say
that the Secretary has a singularly apt
group of old friends. '
Could one conclude from this record
- that party patronage has dominated the
appointment of Assistant Secretaries
and comparable officials. I say such a
conclusion would be difficult indeed in
view of the overwhelming number of
career civil servants, career Foreign
Service officers, and Republicans in-
volved.
I hope that the Department's demon-
strated policy of selecting the best man
for the job will allay the gentleman's
concern that the Foreign Service will be
emasculated by politics and favoritism.
I would like further to say to the
Members of Congress that these pro-
posed changes which can be made under
the law as it now stands will be brought
before the Committee on Foreign Affairs
and the Committee on Foreign Relations
of the other body, and any other changes
that are proposed will be brought before
the Congress if enacting legislation is
needed. There is no secret about this
thing. It has been talked about and
planned, as I have said. It is a logical
carrying out, step by step, of the recom-
mendations of the Hoover Commission
and of the Ramspeck-Rowe committee,
and certainly from all I have seen of iti,
and from people who are better qualified --
No. 50-10
than I who know the State Department
inside and out, looking at it from an ob-
jective standpoint it is an orderly process
of improvement.
I would like also to add that I did not
Include the name of Hon. William D.
Pauley, former Ambassador to Brazil,
and a native South Carolinian, and who ?
has just returned to the State Depart-
ment from private business to be a spe-
cial assistant to the Secretary. He is
one of the outstanding career men in
this country. If people like that are
bringing in stooges, as the gentleman
has charged, then I wish to Heaven we
had more of them in Government.
gr. MANSFIELD. Mr. Speaker, will
the gentleman yield?
Mr. CHATHAM. I yield.
Mr. MANSFIELD. I wish to commend
the gentleman from North Carolina for
the fair statement he has just made.
I wish again to call to the attention of
the House the fact that the gentleman
now addressing this body is the chair-
man of the subcommittee in charge of
this particular aspect of the affairs of
the State Department.
(Mr. MANSFIELD asked and was given
permission to extend his remarks.)
Mr. MANSFIELD. Mr. Speaker, in the
light of recent remarks made by the gen-
tleman from Illinois [Mr. RUSSET] about
the so-called Rowe-Ramspeck report
recommending an amalgamation in the
Department of State of the Foreign
Service and the departmental service
and a directive by the Secretary of State
on this subject, it is my desire, in the
light of certain misconceptions about,
this matter, to present to the House cer-
tain facts concerning it.
I do not wish at this time to state a
personal point of view about either the
Rowe-Ramspeck report or the Acheson
directive because I have not sufficiently
studied this old and complex problem to
have a point of view.
The gentleman from Illinois has stated
that there is a sinister and clever plot to
ruin the Foreign Service. If I am cor-
rect in my interpretation he even darkly
hints that there may be something sub-
versive about it.
If that is so, I think the gentleman
from Illinois will be even more shocked
when he learns that the most active
group fomenting this sinister plot are
the leaders of his own party.
He will find, if he cares to explore the
subject, that the amalgamation of the
Foreign Service with the departmental
service in the State Department is being
actively pushed by the only living former
President of the United States, Herbert
Hoover. He will find that a proponent
in this House is the Honorable CLARENCE
BROWN of Ohio. He will find that in the
other House standing foremost among
the group supporting this amalgamation
are Senator TAFT of Ohio and Senator
JOE MCCARTHY Of Wisconsin.
I will call the roll of all these names
in just a moment. But first for a bit of
history.
One of the reports of the Commission
on Organization of the Executive Branch,
better known as the Hoover Commission,
was its report on foreign affairs. The
2791
Vice Chairman of the Hoover Commis-
sion at that time was Dean Acheson, who
was then in the private practice of law.
When he later became Secretary of
State he carried out all the recommenda-
tions of the Hoover Commission in re-
organizing the Department of State with
one major exception. That major ex-
ception was recommendation No. 20?
Foreign Affairs, a report to the Congress
by the Commission on Organization of
the Executive Branch of the Govern-
ment, February 18, 1949, page 61?which
reads:
The personnel in the permanent State De-
partment establishment in Washington and
the personnel of the Foreign Service above
certain levels should be amalgamated over a
short period of years into a single foreign
affairs service obligated to serve at home or
overseas and constituting a safeguarded
career group administered separately from
the general civil service."
The report of the Commission explains
at some length why this is a desirable
recommendation. Its recommendation
was based primarily on the report of the
Task Force on Foreign Affairs of the
Hoover Commission, which presented a
preliminary report on Foreign Affairs
and which made exactly the same recom-
mendation.
The gentleman from Illinois will be in-
terested to know that the two members
on that task force group were two Re-
publicans who had been Assistant Secre-
taries of State in the administration of
Herbert Hoover.
They were Harvey Bundy, a partner in
the conservative Boston firm of Choate,
Hall & Stewart, who was also an assistant
to the Secretary of War in World War II,
and James Grafton Rogers of New York,
President- of the Foreign Bondholders
Council, and a former deputy director of
OSS.
The adviser to the task force was the
late Henry L. Stimson, Secretary of State
under President Hoover and Secretary
of War under President Franklin Roose-
velt and President William Howard Taft.
He endorsed the task force report.
The 12 members of the Hoover Com-
mission were unanimously in favor of
this recommendation. Besides Herbert
Hoover and Clarence Brown, there were,
among others on the Commission, For-
mer Representative Carter Manasco, of
Alabama, Former Ambassador to London
Joseph Kennedy, whose views on foreign
policy, although he is a Democrat, are
probably more acceptable to the gentle-
man from Illinois [Mr. BUSBEY] than
those of Dean Acheson; George Mead, a
Republican industrialist and business-
man of the Middle West; Senator JOHN
MCCLELLAN of Arkansas and Professor
James Pollock, a Republican who is
chairman of the government depart-
ment at the University of Michigan and
who was appointed to the Hoover Com-
mission by Senator VANDENBERG. Inci-
dentally, it is my understanding that
Senator VANDENBERG has been vitally
interested in the question of amalgama-
tion.
Despite this impressive background of
support, Dean Acheson hesitated to put
this recommendation into effect when
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2792 CONGRESSIONAL RECORD?HOUSE
he became Secretary of State. I assume
he did so because he was disturbed by
the possible effect on morale of his em-
ployees. Incidentally, the late Secre-
tary of Defense, James Forrestal, a mem-
ber of the Commission, favored the rec-
ommendation but stated he feared the
effect on morale of the employees.
Secretary Acheson for many months
had the problem carefully studied within
the Department. Still dissatisfied he
decided to appoint an outside committee
to study this and related personnel prob-
lems.
It is clear from the appointments that
Secretary Acheson attempted to bring
several different points of view to the
work. Mr. James Rowe, for instance,
had been a member of the Hoover Com-
mission. He was not appointed by the
administration, but was an appointee of
this House. He was nominated by the
present minority leader, the- Honorable
JOSEPH MARTIN, who was, at the time the
Hoover Commission was created, the,
Speaker of the House. He had been rec-
ommended to the then Speaker by the
leader of the then minority, party, the
Honorable SAM RAYBURN. He served,
therefore, on the Hoover Commission,
as I have said, as a representative of this
House.
Another member of the State Depart-
ment Committee was the Honorable
Robert Ramspeck who is well known to
all of you through his many years of
service in this House and who is the
new Chairman of the Civil Service Com-
mission. He was selected because of
his long background and experience in
Government personnel problems.
A third member was William E. De-
Courcy, a brilliant Foreign Service offi-
cer of more than 30 years' of experience
In and devotion to the Foreign Service,
whose present post is Ambassador to
Haiti.
This committee studied this problem
of amalgamation for 6 months begin-
ning in December 1949.
It conducted many separate studies.
It held hearings for many weeks, listen-
ing to more than 70 experts, including
many departmental officials, numerous
ambassadors and Foreign Service of-
ficers, representatives from other Gov-
ernment agencies concerned with for-
eign affairs, political scientists and dip-
lomats from other countries. Inciden-
tally, only the United States and Siam
have a sepailate foreign service and a
separate home service handling foreign
affairs. All other nations have a single
service. The Rowe-Ramspeck committee
also circulated 2,200 questionnaires td
departmental and Foreign Service em-
ployees. A large majority of these em-
ployees believe a single foreign affairs
service is the best thing for the United
States.
It submitted its report to the Secre-
tary of State in June 1950. Since that
time there has been no action on the
report until very recently.
I understand, however, that former
President Hoover has seen the Rowe-
Ramspeck report and has described it as
a fine job. Also, in view of Mr. HUSSEY'S
previous career in the investment busi-
ness, I am sure he will be impressed by
?
the fact that Francis Adams Truslow,
who was President of the New York Curb
Exchange until 2 weeks ago, appeared
before the Rowe-Ramspeck committee
last spring vigorously supporting a single
service.
It is my understanding that the so-
called Rowe-Ramspeck report has been
studied since July 1950 throughout the
Department by many individuals, both in
the Foreign Service and in the depart-
mental service. It has also been studied
by the other agencies in the departments
of the Government interested in foreign
affairs. Whatever their reasons these
advisers have convinced the Secretakry of
State once more that there should be no
amalgamation, and despite and miscon-
ceptions and statements already made it
Is clear that the forthcoming directive
of the Secretary of State, while it in-
cludes a number of personnel reforms,
does not, and I repeat not, call for amal-
gamation.
I do not know whether Rowe and
Ramspeck are right or Acheson is right.
I am stating only the facts centering
around this problem.
There has been one other recent de-
velopment. Last week, on March 15 a
resolution was introduced in the Senate.
That resolution is Senate Concurrent
Resolution 19. It requests the Secretary
of State to submit to the Congress within
90 days after its adoption a plan for
amalgamation of the personnel of the
departmental service and the personnel
of the Foreign Service "into a single For-
eign Affairs Career Service, administered
separately from the general civil service"
as recommended by the Hoover Commis-
sion. Two of the sponsors of Resolution
19 are Senator TAFT and Senator JOE
MCCARTHY.
Other Republican Senators who are
sponsoring this resolution which carries
out the recommendation of the Hoover
Commission and also of the Rowe-Ram-
speck report are DIRKSEN, of Illinois;
FERGUSON, of Michigan; IvEs, of New
York, LODGE, of Massachusetts; DUFF, of
Pennsylvania; AIKEN, of Vermont; and
SMITH of New Jersey.
Democratic Senators sponsoring the
same resolutions are Senators McCLEL-
LAN, BENTON, DOUGLAS, HUMPHREY, LEH-
MAN, and O'CoNOR.
It is clear from this nonpartisan list
of Senators and from the membership of
Herbert Hoover, Joe Kennedy, and Dean
Acheson on the Hoover Commission
that views on foreign policy do not have
anything to do with the resolution on
amalgamation.
The Citizens Committee on the Hoover
Report, a nonpartisan group, are work-
ing actively for a single foreign affairs
service.
Secretary Acheson apparently is
against amalgamation for two reasons:
The departmental employees fear that
they will be sent abroad; the Foreign
Service personnel fear that their corps
will be destroyed. For purposes of mo-
rale the Secretary of State apparently
agrees with them and opposes the im-
posing group listed above. Both the
Hoover Commission and the Rowe-
Ramspeck Committee insist their fears
are groundless.
MARCH 20
In view of some of the remarks made
on this floor, I wish to make a statement
about Mr. Rowe, whom I have known
for 25 years. The statement speaks for
itself.
Mr. Rowe was born in Butte, Mont., in
1909, the son of James H. and Josephine
Sullivan Rowe. He attended Santa
Clara College, a Jesuit university in
California, Harvard College, and Har-
vard Law School.
After several positions as an attorney
in various Government departments he
became Administrative Assistant to
President Roosevelt early in 1939. After
3 years in the White House he was
nominated- by President Roosevelt to be
The Assistant to the Attorney General,
the position now known as Deputy At-
torney General, in the Department of
Justice, and served there during the first
2 years of World War II. Among
other things he was in charge of Alien
Enemy Control during part of that
period.
In May 1943 he resigned as Assistant
Attorney General to become a lieutenant
junior grade in the Navy. He spent the
rest of the war in the Pacific, serving on
three different aircraft carriers, the fa-
mous Essex, the Ticonderoga, and the
Suwanoe. He participated in all the
major battles of the Pacific after the
Marshalls, including the landings at Hol-
landia; New Guinea; Saipan, Tinian, and
Guam; Halmahera; the battle of Leyte
Gulf; Okinawa, and took part in the last
2 months of carrier strikes against the
main islands of Japan. When the war
ended he was 50 miles off Tokyo with the
famous Task Force Fifty Eight.
During the battle of Leyte Gulf his car-
rier, the Suwanee, was struck by the first
kamikaze suicide plane of the war. He
was later decorated for his conduct at
that time in putting out the resulting
fire on his ship by taking a fire hose into
the middle of exploding ammunition.
As a Naval Reserve officer he is entitled
to wear eight battle stars, two Presi-
dential citations, the Naval Commenda-
tion Ribbon, the Philippine Liberation
Ribbon, the Asiatic-Pacific Ribbon, the
American Defense Ribbon, and the Vic-
tory Ribbon.
Since the war he has been practicing
law in Washington with the exception of
his service as a member of the Hoover
Commission, on which he sat as a nom-
inee of the House, appointed by Speaker
Joe Martin.
In the last Congress he served this
House as counsel of its Campaign Ex-
penditures Committee.
Mr. RIBICOFF. Mr. Speaker, will
the gentleman yield?
Mr. CHATHAM. I yield.
Mr. RIBICOFF. As I understand the
situation, many of these proposed
changes come within the 1946 act and
the 1949 act, and those changes that
come within the act will be placed into
effect in accordance with the provisions
of law. Is that correct?
Mr. CHATHAM. That is correct.
Mr. RIBICOFF. There are certain
provisions which are recommended,
which will require new legislation and
under orderly procedure, as I under-
stand the situation, these recommenda-
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?
1951 CONGRESSIONAL RECORD-HOUSE
tions will come before the Committee on
Foreign Affairs in the form of various
bills and hearings will be held in the
Committee on Foreign Affairs and then
the bill will be reported to the House.
Each and every Member of the House of
Representatives will have a chance to
study and debate and then vote upon
those recommendations, is that cor-
rect?
Mr. CHATHAM. That is correct. The
gentleman is exactly correct.
Mr. RICHARDS. Mr. Speaker, will
the gentleman yield?
Mr. CHATHAM. I yield.
Mr. RICHARDS. It is my under-
standing that these proposals have been
or will be brought not only before the
Committee on Foreign Affairs of the
House, but the Committee on Foreign
Relations of the other body as well as
the Committee on Appropriations of
both House and Senate.
That is my understanding.
There is one other thing, the gentle-
man mentioned the 1946 reorganization
bill. I had the honor of serving on the
subcommittee that shaped up the act
along with the distinguished chairman,
Judge KEE, who was the author of the
bill, also the distinguished gentleman
from Ohio [Mr. VosYs] . I know of no
bill which has come from the Foreign
Affairs Committee with more unanimous
support on both sides than the Kee Act.
This proposal by the Secretary of State
Is in harmony and in line with the basic
principles of the Kee Act.
Mr. CHATHAM. The gentleman is
exactly right.
Mr. RIBICOFF. Mr. Chairman, will
the gentleman yield further?
Mr. CHATHAM. I yield.
Mr. RIBICOFF. I understood, the
gentleman from Illinois was complain-
ing about the Department's meticu-
lously following legislative procedure.
The reason that the directive was not
released publicly was that the Depart-
ment felt that it was their duty first
to disclose and discuss the recommen-
dations with the Foreign Affairs Com-
mittee of the House, the Foreign
Relations Committee of the Senate, and
the proper appropriations subcommit-
tees of both the House and the Senate,
and then after that consultation they
were going to release this report to the
public and make it available to anyone
who desired a copy.
Mr. CHATHAM. That is exactly
right, and I would add further that had
not the State Department acted as they
did I think they would have been dere-
lict in their duty under the Hoover re-
port and also the Rowe-Ramspeck Re-
port. They are working it out in a
proper manner ahd I am proud of what
is being done. I think it will make for
better foreign relations and a more able
Foreign Affairs Bureau of the State De-
partment which, of course, is the most
important bureau of the State Depart-
ment.
Mr. RIBICOFF. Mr. Chairman, will
the gentleman yield further?
Mr. CHATHAM. I yield.
Mr. RIBICOFF. I think it is worthy
of comment that almost everyone gives
lip service to the recommendations of
the Hoover Report, and yet every time a
recommendation comes down which
seeks to put the Hoover report into
effect it immediately brings vigorous
opposition. Much of the opposition
comes from those who shout the loudest
about economy.
These recommendations seek to carry
out partially the recommendations of
the Hoover report. I believe it be-
hooves the House to study this report
and pass upon the recommendations not
only for the benefit of the economy of
our country but also the foreign service
of our Nation.
Mr. CHATHAM. I thoroughly agree
with the gentleman.
SPECIAL ORDER
The SPEAKER. Under previous or-
der of the House, the gentleman from
New York [Mr. REED] is recognized for
30 minutes.
Mr. REED of New York. Mr.
Speaker?
Mr. VAN ZANDT. Mr. Speaker, will
the gentleman yield?
Mr. REED of New York. I yield to
the gentleman from Pennsylvania.
[Mr. VAN ZANDT addressed the
House. His remarks appear in the
Appendix of today's RECORD.]
(Mr. REED of New York asked and
was given permission to revise and ex-
tend his remarks and include extra-
neous matter and tables.)
NATIONAL TAX EQUALITY ASSOCIATION
Mr. REED of New York. Mr. Speaker,
an unscrupulous racket, known as the
National Tax Equality Association, has
been in operation for some time, direct-
ing its vicious propaganda against the
farm cooperatives. To get contributions
from businessmen, this racketeering or-
ganization has propagandized business-
men with false statements to the effect
that if farm cooperatives were taxed and
not exempted the revenue to the Govern-
ment would amount annually to over
$800,000,000. This is, of course, abso-
lutely false and nothing more nor less
than getting money under false pre-
tenses. To spread such falsehood
through the United States mails to get
contributions for the racketeering .outfit
Is a fraudulent use of the United States
mails. This outfit of racketeers known
as the Tax Equality Association has led
honest businessmen to believe that their
contributions were doductible from gross
income as an ordinary and necessary
business expense with reference to their
Federal income-tax return. This has
misled contributors to deduct their con-
tributions from their gross income,
which, unless the internal-revenue
agents check the contributors' income
tax returns, the failure to do so will re-
sult in substantial amounts of revenue
being lost to the Treasury of the United
States. As I have asserted, the statement
that farm cooperatives and other co-
operatives are escaping $800,000,000 or
more in Federal income taxes is false.
What are the facts? Let us hear from
official sources.
There appeared before the Ways and
Means Committee in November 1947
2793
Undersecretary of the Treasury Wiggins
who testified as follows:
Question (by Mr. Knutson) : It has been
frequently suggested that tax exemption now
granted certain cooperatives be removed.
? ? * Assuming that all cooperatives
were placed on the same footing as far as
taxation is concerned, about how much
would that amount to in increased revenue
in the Treasury?
Answer (by Mr. Wiggins) : It is very diffi-
cult to determine that, Mr. Chairman, be-
cause of the various devices that might be
used, but it would run somewhere, we figure,
between ten million and twenty million a
year.
At a more recent date Mr. Cohn Stam,
chief counsel of the Joint Committee on
Internal Revenue Taxation, stated to
the Ways and Means Committee that in
his opinion the loss of revenue from the
removal of the exemption of taxation
from cooperatives would not exceed $18,-
000,000. Secretary Snyder testified on
cross-examination following the presen-
tation of the Truman tax bill that the
removal of the tax exemption on cooper-
atives would not exceed $25,000,000.
The National Tax Equality Associa-
tion has been sailing under false colors.
On November 25, 1947, Ben C. McCabe,
then president of the National Tax
Equality Association, testified before the
Ways and Means Committee and stated:
As you have been previously informed,
NTEA is devoted solely to research and
educational activities and no deviation from
these limitations is permitted either by the
association charter or by vote of its directors.
Was this statement true or false? Let
the Tax Court answer. The court found
as late' as November 1, 1950-3 months
ago?that?
NTEA was organized and primarily oper-
ated from its inception for the carrying of
propaganda with the ultimate objective being
a revision in the tax structure.
This racketeering NTEA, to get money,
led their contritfutors to believe that the
contribution made would be deductible in
computing gross income under section 23
(a) (1) (A) or 23 (g) (2) of the Internal
Revenue Code.
What motivated the National Tax
Equality Association not to register un-
der the Lobbying Act and report quar-
terly to the Congress during 1947 and
1948 and to defer such compliance un-
der the law until 1949?
Why has the National Tax Equality
Association misled and deceived their
contributors into believing that they
could, under the law, deduct their con-
tributions to NTEA from gross income
under section 23 (a) or 23 (g) of the
Internal Revenue Code? Because it
was thought to be an inducement to busi-
nessmen to contribute.
Thus this unscrupulous National Tax
Equality Association has caused their
contributors to escape payment of taxes
to which the Government is entitled.
The NTEA that is shedding propaganda
crocodile tears over alleged lost revenue
has aided and abetted their contributors
to escape taxation. What unadulter-
ated hypocrisy in the light of the fact
that NTEA is tax exempt.
Now, then, in the trial of the case of
Roberts Dairy Co., petitioner, against
Commissioner of Internal Revenue, re-
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2754
CONGRESSIONAL RECORD-HOUSE
spondent, Tax Court of the United
States, November 1, 1950, in which it
was held that a contribution of $750 in
1943 which ? Roberts Dairy Co., Omaha,
Nebr., made to the National Tax Equal-
ity Association to be nondeductible in
computing gross income, the record
shows that Vernon Scott of the firm of
Scott & Schuler appeared at the trial
in this case as the chief administrative
officer of the NTEA since its inception.
What was his testimony? He testified
that NTEA never did urge anyone to in-
fluence legislation.
The outpouring of vicious and inflam-
matory literature by the NTEA attack-
ing Congress and members of the Ways
and Means Committee, because neither
would yield to propaganda, is a complete
answer to the false statement of Mr.
Scott, then chief administrative officer
of the NTEA, who ,testified in court that
NTEA never did urge anyone to influ-
ence legislation.
In the recent hearings relating to the
taxation of exempt farmer cooperatives,
the president of the NTEA testified that
the organization had collected $600,000
from businessmen, corporations, and
utilities, to carry out the lobbying activi-
ties of the NTEA.
I am inserting a list of the contributors
and the amount contributed by each one
where the contribution was $500 or more.
The contributions of less than $500 do
not appear in the report to the House
Select Committee on Lobbying Activities.
These contributions of $500 or more to
this racketeering lobby organization cov-
er the years 1947, 1948, 1949, and, up to
December 18, 1950.
Here is an example of the most brazen
attempt yet made by any group of men
to destroy a basic industry, viz; Ameri-
can agriculture.
Could any program be devised by Sta-
lin to more effectively weaken our free
enterprise system and to eventually de-
stroy our basic economy than the one
which has been planned and put into op-
eration by the National Tax Equality
Association?
The irony of this drive to destroy agri-
culture is that it is financed by business-
men and firms who could not prosper
were it not for the prosperity of the
farmers.
Here is the list of contributors to the
National Tax Equality Association in the
drive to destroy farm cooperatives:
NATIONAL TAX EQUALITY ASSOCIATION, INC.,
Chicago, December 18, 1950.
Congressman FRANK BUCHANAN, Chairman,
House Select Committee
on Lobbying Activities,
Congress of the United States,
Washington, D. C.
DEAR SIR: Mr. Scott is out of town, so in
conformity with his letter of December 6 to
you, and in compliance with your request,
I am enclosing a list showing the total
amount received by National Tax Equality
Association from each member making con-
tributions of $500 or more, from January
1, 1947, to date, together with the amount,
date, and purpose of each such contribution.
Yours truly,
ELLEN POWERS,
Secretary to Mr. Scott,
1950
The contributions listed below were made
for the purpose of supporting the research,
publicity, and general activities of NTEA.
MARCH 20
Contributions are not made for special pun. Date
poses. All funds received are used to sup-
port the general activities of the organiza-
tion. None are earmarked for specific pur. Mar. 16
poses.
Amount
Name and address
1950
Date
Amount
Name and address
1950
Jan. 1 $1,000
3 500
Mar. 8 500
1,000
Jan. 4 400
4 600
12 500
Apr. 10 500
1,000
Jan. 9 500
10 6,000
11 1500
11 500
13 1,000
17 500
19 1,000
20 500
20 500
23 500
Mar. 21 500
1,000
Jan. 23 500
24 750
20 500
30 500
31 1,000
Feb. 1 1,250
I 5,000
6 1,500
500
10 600
14 750
15 750
16 500
17 1,000
23 600
Mar, 1 500
2 1,280
2 500
500
9 600
10 1,000
10 500
13 1,000
13 BOO
Moore-Handley Hardware Co.,
Birmingham 2, Ala.
New Orleans Public Service, Inc.,
317 Baronne St., Post Office Box
340, New Orleans, La.
Central Power & Light Co., Corpus
Christi, Tex.
Bridgeman-Russell Co., 1102-1116
West Michigan St., Duluth 1,
Minn.
Gulf States Utilities Co., Baton
Rouge 2, La.
Consumers Power Co., 212 Michi-
gan Ave. West, Jackson, Mich.
Association of Casualty & Surety
Co's., 60 John St., New York,
N.Y.
Capital Fertilizer Co., Room 1824,
61 Broadway, New York 6, N. Y.
Zork Hardware Co., El Paso, Tex.
Charles W. Sexton Co., McKnight
Bldg., Minneapolis, Minn.
Uhlmann Grain Co., 1480 Board of
Trade Bldg., Chicago 4, Ill.
International Minerals & Chenical
Corp., 20 North Wacker Dr.,
Chicago 6, Ill.
Consolidated Gas Electric Light dr
Power Co., Lexington and Lib-
erty Sts., Baltimore 2, Md.
Union Electric Co. of Missouri, 315
North 12th Blvd., St. Louis, Mo.
Louisiana Power & Light Co., 142
Delaronde St., New Orleans 14,
La.
Stockham Pipe Fittings Co., Post
Office Box 2592, Birmingham 2,
Ala.
Consolidated. Edison Co. of New
York, Inc. 4 Irving PI., New
York, N.Y."
Cincinnati Gas & Electric Co., 4th
and Main Sts., Cincinnati 1,
Ohio.
Tex-O'Ka.n Flour Mills Co., Post
Office Box 448, Dallas, Tex.
Fullerton Lumber Co., 918 Roanoke
Bldg., Minneapolis, Minn.
Nichols Wire & Aluminum Co., 1725
. Rockingham Rd., Davenport,
Iowa.
Marshall-Wells Co., Duluth, Minn.
Kelly-How-Thompson Co., Duluth,
Minn.
Petroleum Advisers, Inc., 60 Wall
Tower, New York 5, N.Y.
Duquesne Light Co., 435 6th Ave.,
Pittsburgh 19, Pa.
Baker & Hamilton, 700-768 7th St.,
San Francisco 19, Calif.
Kentucky Utilities Co., Inc., 159
West Main St., Lexington, Ky.
St. Paul Fire & Marine Insurance
Co., Sc. Paul, Minn.
Marsh dr McLennan, Minneapolis,
Minn.
Atlantic Refining Co., 260 South
Broad St., Philadelphia, Pa.
Wisconsin Power & Light Co., 122
West Washington Ave., Madison
1, Wis.
Smith-Douglass Co., Inc., Norfolk 1,
Va. 18
Washington Water Power Co., Post
Office Box 1445, Spokane 6, Wash. 18
Texas Wholesale Hardware Associa-
tion, Post Office Box 367, Pearsall, 20
Tex. 22
The Colorado Milling & Elevator
Co., Equitable Bldg., Denver 2, 25
Colo.
The Bostwick-Braun Co., Summit
and Monroe Sts., Toledo, Ohio.
if 64
Humble Oil & Refining Co., Hum-
ble Bldg., Houston, Tex.
Lumbermen's Association .of
Second Nationa Ban g., 8
Houston, Ttir. '
Fresh Milki e, 1200 South %tk0
Spring Avik, V. ouis, Mo. .,k
".6
17
23
28
Apr. 3
27
June 23
27
28
28
29
30
July 5
6
7
10
11
11
12
June 6
July 18
21
24
25
Sept. 28
July 26
Aug.
27
28
28
2
3
14
15
26
Sept. 14
14
15
18
$500
500
500
500
300
300
200
500
2,500
2, poo
500
500
1,000
1,000
500
500
500
750
500
250
500
2,500
500
300
250
550
500
900
500
500
600
5,000
500
500
500
500
500
500
500
500
I, 500
1,000
500
750
500
500
1,500
500
500
500
500
Allison-Erwin Co., 209 East 5th St.,
Charlotte, N. C.
St. Paul Live Stock Exchange
South St. Paul, Minn.
Samson Cordage Works, Boston,
Mass.
Carolina Power & Light Co., Box
1551, Raleigh, N. C.
Pacific Gas & Electric Co., 245
Market St., San Francisco, Calif.
Delaware Power & Light Co.,
Wilmington, Del.
The Cincinnati Gas & Metric Co.,
4th and Main Sts., Cincinnati 1,
Ohio.
Peden Iron & Steel Co., Houston,
Tex.
F. H. Peavey & Co., 312 Chamber
of Commerce, M inneapol is, Minis.
Van Dusen Harrington 13
Chamber of Commerce, Co.,dinne-
apolis 15, Minn.
The Rocky Mountain Grain &
Commission Co., 1205-1211 Board
of Trade Bldg., Kansas City 6,
Mo.
Simonds-Chields-Theis Grain Co.,
100 Board of Trade Bldg., Kansas
City 6, Mo.
Tex-O'Kan Flour Mills Co., Post-
office Box 448, Dallas, Tex.
Belknap Hardware & Manufacturing
Co., Ill East Main St., Louisville
2, Ky.
Bowman Dairy Co., 140 West
Ontario St., Chicago 10,
Public Service Co. of Indiana, Inc.,
110 North Illinois St., Indianapolis
9, Ind.
Columbus & Southern Ohio Electric
Co., 215 North Front St., Colum-
bus 15, Ohio.
Utah Power & Light Co., Salt Lake
City, Utah.
Orgill Bros. & Co., 10 West Calhoun
Ave., Memphis, Term.
Pennsylvania Power & Light Co.,
Allentown, Pa.
Montana Flour Mills Co., Box 631,
Great Falls, Mont.
Standard Oil Co., 910 South Michi-
gan Ave., Chicago 5, Ill.
State Loan & Finance Corp., 402
Ring Bldg., 1200 18th St. NW.,
Washington 6, D. C.
Moncrief-Lenoir Manufacturing
Co., Houston, Tex.
Sloss & Brittain, 100 Potrero Ave.,
San Francisco 1, Calif.
Texas Electric Service Co., Post
Office Box 970, Fort Worth 1, Tex.
Western Cottonoil Co., Box 521,
Abilene, Tex.
Florida Power & Light Co., Post
Office Box 3100, Miami, Fla.
American Hardware & Equipment
Co., Charlotte, N. C.
Marshall-Wells Co., Duluth, Minn.
Montana Elevator Co., Great Falls,
Mont.
Roberts Dairy Co., 2901 Cuming
St., Omaha, Nebr.
New Orleans Public Service, Inc.,
317 Baronne St., Post Office Box
340, New Orleans, La.
The Denver Clearing House Asso-
ciation, Denver, Colo.
Wilcox Lumber Co., Lock Drawer
651, Detroit Lakes, Mimi.
The Detroit Edison Co., 2000 2d
Ave., Detroit 26, Mich.
R. Wallace & Sons Manufacturing
Co., Wallingford, Conn.
Stratton-Warren Hardware Co.,
Inc., Memphis, Tenn.
The W. Bingham Co., Box 6026,
Cleveland, Ohio.
American Cotton Shippers Associa-
tion, 801 Cotton Exchange Bldg.,
Memphis 1, Tenn.
Allison-Erwin Co., 209 East 5th St.,
Charlotte, N. C.
Baker & Hamilton, 700-768 7th St.,
San Francisco 19, Calif.
Zork Hardware Co., El Paso, Tex.
Humble Oil & Refining Co.,
Humble Bldg., Houston, Tex.
Farwell, Ozmun, Kirk & Co., Kel-
logg Blvd. and Mackson St., St.
Paul 1, Minn.
Gold Seal Co., Bismarck, N. Dale.
Dunham, Carrigan & Hayden Co.,
Post Office Box 3021, San Fran-
cisco 19, Calif.
Montana Power Co., Box 1332,
Butte, Mont.
Atlantic Refining Co., 260 South
Broad St.. Philadelphia. Pa.
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