DEPARTMENT OF DEFENSE APPROPRIATIONS, 1975 - AMENDMENTS

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CIA-RDP75B00380R000700060018-4
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August 20, 1974
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e ,e 4/j August 20, lAproved ForeelitempViK)A9 itiebInf7_5_,RRA3M000700060018-4 8.15300 tive ways of using the energy content of the refuse which would otherwise be buried or burned with no ful return. The city of Nashville, Tenn. ir instance, provides heat and cooling all of the, city municipal buildings, me of the State buildings and some n rby private buildings by using one-thir the city's solid waste, plus some repr essed waste oil, for fuel. Mayor Briley Id us that the idea for doing this ca when they were struggling with solid te disposal problems at the same ti they were trying to decide what fuel use for new municipal buildings. Since the Nashville fac ty is owned and operated by a publi corporation, they were able to flnan ts construc- tion with general reven bonds. But many communities cont t for solid waste disposal with priv companies; more than half of the N on's residen- tial waste and nearly all ? the commer- cial and industrial wastes e handled in this way. If such towns, c es, and coun- ties want to encourage esource and energy recovery, tax-ex pt bonds to reduce the capital invest ? nt needed for the new facilities are a eful carrot to be able to dangle in fro of the waste .disposal industry. Energy recovery does t have to be limited to burning the bage as is. A plant being built in San P ego will con- vert solid waste to oil. er processes are being tested which p. 'uce gas from garbage. I have even be told of a sys- tem in which bacteria pr uce electricity directly from fermentin rice hulls. The legislation we produce ould allow for all of these, and others ot yet thought of. The amendment I o r today would have that effect. Mr. President, I ask animous con- sent that the text of endment be reprinted at this point ? the RECORD. There being no objecti the amend- ment was ordered to be rinted in the RECORD, as follows: AMENDMENT No. 1832 On page 2, line 1, after "of", insert ", or recovery of energy from". DEPARTMENT OF DEFENSE APPRO- PRIATIONS, 1975?AMENDMENTS AMENDMENT NO. 1833 (Ordered to be printed and to lie on the table.) Mr. KENNEDY submitted the follow- ing amendment intended to be proposed by him to the bill (H.R. 16243), ma.king appropriations for the Department of Defense for the fiscal year ending June 30, 1975, and for other purposes: AMENDMENT No. 1833 On page 7, in line 3, strike "June 30, 1976" and insert "August 15, 1974". AMENDMENT NO. 1834 (Ordered to be printed and to lie on the table.) Mr. 1VIUSKIE submitted an amend- ment intended to be proposed by him to the bill (H.R. 16243) supra. AME,NDMENT NO. 1835 (Ordered to be printed and to lie on the table.) . Mr. KENNEDY. Mr. President, I sub- mit an amendment for printing which I intend to propose to H.R. 16243, the Department of Defense appropriation bill, and I ask unanimous consent that a letter which I have prepared in connec- tion with the amendment be printed at this point in the RECORD, together with the text of the amendment itself. There being no objection, the amend- ment and letter were ordered to be printed in the RECORD, as follows: AMENDMENT No. 1835 On page 50, line 21, insert a new section as follows: Sec. ?. (a) No funds appropriated for the use or the Department or Defense by this or any other Act in fiscal year 11? (b may 04 usea 'or rae purpose stocgplIing war materials or equipment for use by any Asian country except to the extent authorized by title vn of this Act or by. the Foreign Assistance Act of 1961 or the Foreign Military Sales Act. (b) Any materials or equipment stock- piled by the Department of Defense on the date of enactmentails Act for future use by any Asian country may not be transferred to any such country except to the extent such transfer is specifically authorized by law. tallied substantial dangers of abuse in trans- fers of war stocks to allies, without siifficient accountability to the Congress. (4) DOD maintains that these stocks can be transferred to allies by the President without the specific authorization of Con- gress. This practice represents a serious loss of control by Congress of a major part of its powers in the area of foreign policy and military aid. If you would like to cosponsor this amend- ment, or would like further information about it, please call Joe Annunziata at X-, 54543. Sincerely, EDWARD M. KENNEDY. AMENDMENT NO. 1836 (Ordered to be printed and the table.) Mr. GLETON (for himself, Mr. HAT- FIELD, . PRoxmnnz, Mr. MATHIAS, Mr. STEVENS , and Mr. KENNEDY) submitted an amen ant intended to be proposed by them j ntly to the bill (H.R. 16243), supra. U.S. SENATE, Washington, D.C., Aug. 20,1974. DEAR COLLE.A.GtrE? I intend to offer an amendment to the FY 1975 Defense Appro- priations Bill which would prohibit use of defense funds to stockpile reserves for Asian allies. On May 6 of this year, the Foreign Rela- tions Committee revealed that the DOD has Included in its FY 1975 budget a request of $529 million for "War Reserve Stocks for Allies." These procurement funds are in ad- dition to those which are specifically author- ized and appropriated for U.S. forces. In FY 1973 and FY 1974, a total of $525 million was similarly set aside by the DOD for such stockpiling. Last June, by voice vote, the Senate ap- proved my amendment tp S. 3000, the DOD authorization bill, prohibiting the stock- piling of war reserves for allies out of FY 1975 Defense budget funds and requiring that the $525 million previously earmarked for such stockpiling be reserved for sole use by U.S. forces. That amendment was dropped in conference. The arguments for prohibiting the use of these funds for "War Reserve Stocks for Allies" are: (1) The DOD has been unclear in respond- ing to Congressional inquiries as to the na- ture, scope and transferral of these stocks. At times, it says these funds will be used to procure weapons for U.S. active and re- serve forces. Yet they are labeled "War Re- serve Stocks for Allies," and designated to support South Korea, South Vietnam, and Thailand in the event of a future conflict. (2) If the $529 million in FY 1975 repre- sent the value of supplies which the U.S. may turn over to allies, then such stockpiling should more properly be authorized in the Foreign Assistance Bill, and not the DOD bill. (3) These "Wax Reserve Stocks for Allies" are likely to become part of a highly-abused "excess stocks" program to certain countries, particularly South Vietnam, South Korea, and Thailand, Where definite ceilings on mil- itary aid have been established by Congress. Under this procedure, the $529 million would be used to purchase new equipment for U.S. active and reserve forces; the replaced equipment would go into the stockpile; and the equipment in the stockpile would then be declared excess and turned over to the allies. A GAO study last month concluded that the "War Reserve Stocks for Allies" item con- A At the me tor from MIs added as a c 1553, intend (S. 1361) to COSPONSOR OF AN MENT DMENT NO. 1553 t of Mr. ERVIN, the Sena- sippi (Mr. STENNIS) was nsor of amendment No. be proposed to the bill vise the copyright law. NOTICE OF TIONAL P VATION PR Mr. JACKS? to announce for Members of the ested parties that tenor and Insular open hearing on 1974, to take test national park camp gram and the award contract by the Pa known as the Park The hearing will be will be held in room 311 Office Building. ING ON THE NA- CAMPSITE RESER- RAM . President, I wish e information of the ate and other inter- e Committee on In- airs will hold an esday, August 21, concerning the reservation pro- g of a concession ervice to a firm rvation System. at 2 p.m. and Dirksen Senate NOTICE OF HEARING ATING TO EDUCATION IN TBE STRICT OF COLUMBIA Mr. STEVENSON. Mr. sident, on Thursday, August 22, 1974 t 10 a.m., in room 6226, Dirksen S ate Office Building, the Senate Corn ee on the District of Columbia will h a public hearing on H.R. 16543, a bill reorga- nize public post secondary ation in the District of Columbia, e blish a Board of Trustees, authorize direct the Board of Trustees to conso ' .te the existing local institutions of pu post- secondary education into a sin land- grant university of the District Co- lumbia, direct the Board of Tru to administer the University of the k.trict of Columbia, and for other pu Persons wishing to present test ony at that hearing should contact Mr n- drew Manatos, associate staff di tor of the committee, room 6222, Dir n Senate Office Building, by 12 noo n Wednesday, August 21, 1974. ? Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 S 15310 Approved For Release 2005/06/09-: CIA-RDP751300380R000700060018-4 CONGRESSIONAL RECORD ? SENATE August 20, 1974 ADDITIONAL STATEMENTS TH WORLD FOOD CONFERENCE Mr. MPHREY. Mr. President, last Septemb I offered an amendment to the Forei ssistance Act of 1973 which was subseq ntly incorporated in the legislation signed into law calling upon the Pres nt to "support the or- ganizing of a w a d food conference un- der United Natio auspices in 1974." During the confir on hearings of Sec- retary Kissinger, I u d him to lend his support to the propos In his first speech b e the United Nations after becoming ecretary of State, Dr. Kissinger asked at such a conference be organized to ? uss ways to maintain adequate food s ? les and to concentrate the efforts of all tions to meet hunger resulting from ural disasters. The United Nations formally adop a resolution calling for a World F Conference and Secretary General Wald- heim appointed Mr. Sayed Marei of the United Arab Republic as, the secretary general of the conference. The conference will take place in Rome, November 5-15. The agenda for the meeting focuses on national and in- ternational actions to increase food pro- duction, to improve consumption patterns In the developing world, to strengthen emergency relief and food aid, to develop more effective food production and con- sumption information and stockholding policies and to improve the access of de- veloping country exports to the markets of the developed world. This conference is most appropriate and timely. Cereal production must in- crease by an average of 25 million tons each year to meet rising demand. In 1972, Instead of increasing, world production of cereals actually dropped 33 million tons thereby creating havoc with prices and the commodity markets. As a resul of this shortfall, world stocks of cere dropped from 49 million tons in 1971 2 to 29 million tons in 1972-73 leavin e consumers of the world dependen a a 27-day buffer of the basis of wor con- sumption as protection against roduc- tion shortfalls. The cereal "gap" of the eveloping world is projected to reac 85 million tons by 1975, a figure w represents almost three times their a ss imports in 1969-72. This means the capacity of the producing co s will become evermore strained to et world demand, and producers will b subject to the pos- sibility of increas y wide fluctuations In world demand e result will be an ever-increasing certainty from year to year in regard ? food availability. We have n how Important the weather can in influencing crop pro- duction, a we must begin to share In- formation an a world basis on weather expectat s as well as crop forecasts. Won, food security should be the theme f the conference, and it requires more an the good intentions of inter- nati al statesmen. It is more than beau- tif y worded resolutions and principles; w Id food security is a commitment, and I is only with a sense of commitment that the leaders of the world will be able to assure future generations of the avail- ability of mankind's most precious ex- ternal resource. Delegates from over 100 nations will gather in Rome to address the issue of food security. The seriousness of their task must not be eclipsed by short range economic interests. Future generations will not judge us kindly if the opportu- nity to build a foundation for future food security is turned into an arena of myopic political concerns. I am pleased to see the great outpour- ing of interest in the World Food Con- ference. The World Himger Action Co- alition is a group of private organiza- tions which was organized to highlight the conference and build public and pri- vate support for it. I hope others will follow their lead in encouraging the broadest possible interest and atter ti to this most important initiative. On September 4, Ambassador in M. Martin, Coordinator of the U. . ar- cipation in the World Food Co rence, I hold a meeting with repr tatives o ongovernmental organize s to dis- cu he U.S. position in r rd to the conf nce. I encourage e interested indivi ? or organiza to contact Ambass r Martin'sice at the De- partment S We must ment that w challenge of now. This mea tion to deal suring foo tate. ke it ear to our Gov ern- epared to accept the world food security king constructive ac- urgent issues of as. for all people throighonr. e wor The U ed States he world's ma- jor f oo surplus Natio us t take the lead i dealing with th roblem We have unique role to pla nd history wil eat us harshly if we sh our duty a turn aside. ROUGHT AND MEAT PRICE ND SUPPLIES Mr. HUMPHREY. Mr. President, Impact and the implications of our cent Midwest drought on meat prices an supplies has only begun to sink into the consciousness of our people. The Wash- ington Post article, "USDA Says Drought Will Boost Meat Prices in '75," provides some understanding of what is expected to happen. The Department of Agriculture has an explanation as to what that impact will be although it has not been widely dis- cussed. The main result is that producers will begin to reduce their herds and feed them less feed grains. For this fall and early next year, the prices for meat are expected to remain about where they are now as herds are sold off. The clear implication is that by late 1975 meat will be less plentiful and, of course, much more expensive. This expected development on future prices and supplies has received very little attention, and the Department of Agriculture refers to this as if it were a minor adjustment. Mr. President, this is a development of major significance and I ask unani- mons consent that this article be printed In the REcoari. There being no objection, the article was ordered to be printed in the tORD, as follows: [From the Washington Post, A 15, 19741 USDA SAYS DROUGHT WILL Boa 555 IPeicss IN 1975 (By Jack Reduced harvest exp tions for coin and soybeans because of drought and result- ing higher feed pr "win have a suOstan- tial impact on livestock and poultry industry and c d set off a chain of events that may re erate through the livestock industry fo veral years," the Agriculture Departme id yesterday. The U A's livestock and meat situation report edicted a continued drought will for nchers to move large numbers of co steers and heifers directly from grass- pasture to slaughter for the rest of the r. This will increase meat supplies and lower prices in the short run, but will substantially reduce the number of animals and mean higher beef prices in 1975. Paradoxically, if last week's rains signal an end to the drought, this will mean higher meat prices this fall because more catale will be kept on pasture and less forced liquidation win take place. But meat prices in 1975 would be lower. Live cattle prices are currently around $48 per hundred pounds in Midwest markets, The USDA's outlook report said this could drop to the low 40s this fall in the event of liquidation. But if the drought abates and green grass is again available, the price could get pushed over the $50 level. The outlook summary predicted that retail meat prices "will probably turn lower again in the fall and remain 'below year-earlier levels for most of the last half of 1914." The farm price of livestock was down 7 per cent in the first half of this year from the comparable period ha 1973, according to the report. But Wholesale meat prices were only down 1 per cent, and retail prices were up to 10 per cent for the period, the report said. The American Cattlemen's Association in its monthly survey said the average :retail price of beef this month is up 11 cents per pound or 8 per cent from a month ago. But the group noted that beef prices remain below their highs reached earlier this year. The Agricultude Department meanwhile reported that the number of cattle on feed in seven major beef-producing stales was down 23 per cent from a year ago, although tal cattle numbers are up significantly. The sharp drop in the number of cattle eed lots reflects the high level of feed Farmers have preferred to kesa cattle and send them directly to slaughter eeding costs and prevent from being on toes sque Yeste sold abov for the se Chicago B rose the 10- However, the commodities wi Tuesday was bro wheat and soybe There were repo officials were consid export controls becau prospects, particularly corn?a major feed ingredient- 4 a bushel in some cash markets d consecutive day. And on the of Trade, corn futures all daily price limit again, ck-step advance of sal other corn that took place on as profit taking hit the its. that Some government g the impos tion of f the bleak harvest corn. But again trader obse discounted the possibility, claiming the e of corn would be sufficient to ration s es and would make export controls unnec "If corn gees up -to $4 a bu I and stays there, our exports Will be 50 pe nt off this year," Hubert Dyke, vice presi t of the U.S. Feed Grains Council, said. On Tuesday, the USDA in its is supply and demand situation report red 4 ex- pected exports of corn for the next e year Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 /A /692443 Au 'lust 20, 19 740 p roved F ceasjeatESUIONOtetORECURIRDP-Ungarn RO 00 7 0 0 0 6 0 0 1 8-4 S 15389 The Senator from Arkansas is recog- nized. Mr. Mc a N. I yield to the distin- guished Sena from Colorado. GEOTHERMA ENERGY ACT OF 1974 CO NCE REPORT Mr. HASKELL. President, I sub- mit a report of the mmittee of con- ference on H.R. 1492 and ask for its Immediate considerati The PRESIDING CER (Mr. HELMS). The report wi stated by title. The assistant legislative rk read as follows: The committee of conference the dis- agreeing votes of the two Hou on the amendments of the Senate to the (HR. 14920) to further the conduct of arch, development, and demonstrations i eo- thermal energy technologies, to estab a Geothermal Energy Coordination and agement Project, to amend the Natio Science Foundation Act of 1950 to provi par the funding of activities relating to geo thermal energy, to amend the National Aero- nautics and Space Act of 1958 to provide for the carrying out of research and develop- ment, in geothermal energy technology, to carry out a program of demosntrations in technologies for the utilization of geothermal resources, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses this report, signed by all the conferees. The PRESIDING OFFICER. Is the objection to the consideration of the ference report? There being no objection, the S te proceeded to consider the report. (The conference report is pri d in the House proceedings of the C GRES- BIONAL RECORD of August 19, 19 at pp. H8600-H8607.) Mr. HASKELL. I would li to state for the record that the confe cc report has been approved by the ator from Arizona (Mr. FANNIN), t senior Re- publican member of the c erence com- mittee. Mr. President, on y 11, the Senate took from th calendar H.R. 14920, the Geother Energy Re- search, Development nd Demonstra- tion Act of 1974 and ended the House bill with the text S. 2465, the com- panion Senate m .ure. Subsequently, the committee o onference met and reconciled the ? erences between the two versions of measure. I would like to compliment other members of th conference c ittee for their fin efforts in bri ng this important legis lation to th floor of their respectiv House for fi consideration. It is my ief that the conference re- port that have before us is an excel- lent meld g of the strong points which were co ined in each version of H.R. 14920. the Members will recall,. the objecti of the two versions was almost identi ; that is, bringing about the timel development of geothermal en- ergy sources for the benefit of all citi- zens f our Nation, but the mechanics of how his laudable goal was to be reached di ed. ? Originally, the House version would have established a "Geothermal Energy Coordination and Management Project" composed of the Federal Energy Ad- ministration, the National Sc ce Foun- dation, the Department of Interior, the National Aeronautics a Space Ad- ministration, and the ic Energy Commission with the A nistrator of the PEA as Chairman o e project. The project was to have erall manage- ment responsibility f geothermal re- source inventory, re ch and develop- ment and demonstr n programs. The Senate vers called for the De- partment of thetenor to carry out a resource inv ory with assistance from NASA an sted the authority.for the research development of geo- thermal ener technologies with the Atomic Ener Commission. The co ? tee of conference adopted the House n for a management proj- ect, but r mmends that the chairman of the pr t be designated by the Pres- dent. committee of conference also pan the membership of the proj- include an additional member pointed by the President. versions would have established guaranty program to encourage elopment of geothermal energy by non-Federal entities. This of course, was retained in con- th conforming amendments option of the House recom- at the loan program be by a designated agency Department of the In- oint out that this action he Department of the inistering the loan ated by the chair- ogra erence includin mendation administer rather than tenor. I shoul does not exclud Interior from program if so d man of the project. I would like to co end the able ef- forts of both the Se ir from Nevada (Mr. BIBLE), who I th can be charac- terized es the leader for ? development of geothermal resources, the Senator from Arizona (Mr. FANN who has established a long and disti ished rec- ord regarding efforts to brin bout the timely development of this ortant resource. Mr. President, I move the ado n of the conference report. The PRESIDING OFFICER. The q es- tion is on agreeing to the motion of the Senator from Colorado. The motion was agreed to. DEPARTMENT OF DEFENSE APPRO- PRIATION ACT, 1975 The Senate continued with the con- sideration of the bill (H.R. 16243) mak- ing appropriations for the Department of Defense for the fiscal year ending June 30, 1975, and for other purposes. Mr. McCLELLAN. Mr. President, today the Senate considers H.R. 16243, the Department of Defense appropriation bill for fiscal year 1975. This is the largest appropriations bill that the Senate will be considering this year, and one that is of vital interest to every American. Although the Nation can be grateful that we were at peace, peace can be maintained and insured only through vigilance and a strong posture. The com- mittee has carefully examined this year's Defense request and is convinced that the bill before the Senate will maintain the military strength we need at the minimum feasible cost. OVERALL RECOMMENDATIONS The committee recommends an appro- priation of $82,079,358,000 for the De- partment of Defense for fiscal year 1975. This includes transfer authority of $513.6 million. This amount will provide: $20,094,- 875,000 for the Department of the Army; $26,973,643,000 for the Navy Depart- ment; $24,727,643,000 for the Depart- ment of the Air Force; and $3,028,197,000 for the Defense Agencies and related items. By title, the committee's recommenda- tions include: $24,138,858,000 for mili- tary personnel appropriations; $6,040,- 600,000 for retired military personnel; 825,338,303,000 for operation and main- tenance accounts; $16,955,016,000 for procurement; $8,389,281,000 for research and development; and $700,000,000 for Military Assistance, South Vietnamese Forces. These appropriations do not include funds for military construction, family housing, foreign assistance, and civil defense, which are included in other appropriations bills. RECOMMENDED REDUCTIONS The $82,079,358,000 recommended in the bill is a reduction of $4,978,139,000? or 5.7 percent?below the administra- tion's budget request. It is $1,314,212,000 below the House allowance and $3,108,- 612,000 above the amount appropriated in fiscal year 1974. This will result in a reduction in actual outlays by $2.7 bil- lion during fiscal 1975, which should have a significant impact on reducing inflation, and it will help us move toward a balanced budget. SUMMARY OF ITEMS IN THE BILL The funds recommended in the com- mittee bill buy two basic things?day-to- day pay and operating costs of our mili- tary forces and investment in new items of military equipment, including both research and developfnent of new weap- ons and equipment, as well as actual pro- curement. All told, the committee is recommend- ing $49,477,161,000 for the pay and oper- ating costs of active duty military, Re- serve forces, and DOD civilians. This amount includes $24,138,858,000 for mili- tary personnel, and $25,338,303,000 for operation and maintenance?which in- cludes the pay for most of the civilian personnel. In the first category, the recommended funds will pay for an active Army of 14 divisions and 4 separate brigades; a Navy with 508 commissioned ships in the active fleet and 6,283 active aircraft; 3 active Marine Corps divisions, each with an associated aircraft wing; and an Air Force with 10,145 aircraft and 1,054 intercontinental ballistic missile launch- ers. Manpower funded in the bill is sub- Approved For Release 2005/06/09 : CIA-RDP75B00380R000700060018-4 S 15390 Approved For RielmtAlig/t99/s19L 11tc1151E135_13.0SWARIOR0700060018A4Igust 20,797, Ais weal: 2,127,912 in the Active Forces old 939,647 in the Reserve components, for a total of 3,067,559. This is still a agnincant reduction from the fiscal year 1974 total of 3,140,527, 72,968 below the number we had last year. In addition to ,he military manpower, funds are in- cluded for a total of 995,000 civilian em- iloyees of the Department of Defense. It is important to keep in mind the 'Berl' substantial cost of malapower, which Bs 56,1 percent of the fiscataear 1975 De- ielise budget. Now, as to the second aspect of this budget-the development and procure- ment of new weapons and equipment for our Armed Forces. The committee rec- ommends $25,344,297,400 for these pro- - rams which are a key part of moderniz- ing our military establishment-consist- -mg of $8,389,281,000 for research and de- velopment and $16,955,016,000 for pro- curement. I would like to highlight the funds in the bill for major program, in procure- ment and research and development. A total Of $1,749,152,000 is recom- mended for Army research and develop- ment. This sum includes: $32.7 million for the heavy-lift helicopter; $49.1 mil- lion for the utility tactical aircraft sys- tem, a new utility helicopter; $60.8 mil- lion for the advanced attack helicopter, a follow-on to the Cobra; $100 million for the SAM-D, a new and complex surface-to-air missile, a reduction of $11 million from the request; and, $60.8 mil- lion is recommended for further work on the Safeguard antiballistic missile de- fense system. For Navy research and development, the committee recommends a total of $2.979,612,000. This includes: $20 million for the Navy's new fighter prototype, but no funds for the F-401 engine. This en- gine was originally to have powered the F-14 aircraft, but the Navy seems to have abandoned its use in that plane and can- not decide where else to use this new and advanced technology engine: $31 million for the subreariiie launched cruise mis- sile; $641.1 million forth- Trident missile system; $63 million for the AEGIS sur- face-to-air missile system; $45.8 million for surface effects .ships; $107.2 million for the Trident submarine system; and, $15.7 million for the NATO patrol hydro- foil missile ship. For Air Force research and develop- ment, the committee recommended $3,- 144,460,000. This includes: $400 million is included for the B-1 bomber: $164.6 million for the F-15 fighter; $55.8 million for an advanced medium STOL-short eke-off and landing--aircraft; $32 mil- lion for the air combat fighter; $123.9 million is included for Minuteman las- sile squadrons; $119.9 million for devel- opment of advanced ballistic reentry sys- tems; and, $61.5 million for the air launched cruise missile. In the area of procurement, some of he major programs include the follow- For the Army, procurement of 25 new helicopters, including six All-1 Cobra attack helicopters and 19 CH-47 Chinook .-argo transport helicopters. New missiles procured include $80.3 million for the anproved Hawk air defense missile: $86.5 million for the Dragon antitank missile: $104.6 million for the TOW antitank missile; and $64.4 million for the Lance surface-to-surface missile. The bill in- chides funds for 950 tracked combat ve- hicles, including 510 M60A.1 standard combat tanks and 151 M113A1 armored personnel carriers. Over $720 million is included in the bill for procurement of Army ammunition, including funds to modernize Army ammunition facilities. For the Navy, the committee recom- mends $2,745,200,000 for various aircraft, including procurement of 191 combat aircraft, 13 airlift aircraft, 18 trainers. and 6 tanker aircraft. Some of the more significant aircraft and their associated funding are $118 million for 30 A-7E at- tack aircraft; $617.3 million for 50 F--14A fighter aircraft; and $388 million for 40 S-3A antisubmarine warfare aircraft. Funds *are included in the bill for procurement of a variety of Navy mis- siles, including $48 million for 73 Poseidon submarine-launched ballistic missiles and over 3,000 tactical missiles, including $51.6 million for 300 Sparrow. air-to-air missiles; $15.5 million for 800 Sidewinder heat seeking air-to-air mis- siles, $93.2 million for 340 Phoenix long- range missiles needed to support la-14A aircraft deployments; and $78.2 million for 150 Harpoon antiship cruise missiles. The committee recommends $3,140,- 400,000 for shipbuilding and conversion programs in the Navy, including pur- chase of 23 combat and auxiliary m hips as well as conversion and overhaul of other ships. The bill includes $927 Mil- lion for the second and third of 10 plan- ned Trident ballistic missile -firing sub- marines; $502.5 million for three ESN- 688 class high speed submarines; $457.1 million for seven DD-963 Spruance class multipurpose destroyers; $152.3 million for the fourth DLGN nuclear powered guided missile frigate; $92.3 million for four patrol hydrofoil missile slits; and $186 million for three patrol frigates. In addition, one destroyer tender, one fleet oiler, and a fleet ocean tug are also funded in the bill. Funds for procurement of 110 aircraft for the Air Force are included in the bill. This includes $100.1 million for 24 A-7D attack aircraft; $118 million for 20 A-10 close air support aircraft; $276.7 million for four E-3A airborne warning and con- trol system aircraft; and $690.7 million for 62 al-15A air superiority aircraft and trainers. In addition, $593.3 million is included for modification and modern- ization of in-service aircraft such as the 13-52, F-4, F-111, C-5 and others. For Air Force missiles, a total of $1,518,700,000 is recommended. This in- cludes $298.4 million for 61 Minuteman III intercontinental ballistic missiles: $11.1 million for 300 Shrike antiradar missiles; $57.7 million for 6.000 Maverick air-to-ground missiles; and $43.3 million for 300 Sparrow air-to-air missiles. Finally, Mr. President. the committee is recommending an appropriation of $700,1)00,000 for military assistance. South Vietnamese forces. This is a re- duction of $750,000,000 from the budget request and funds petroleum, ammuni- tion, aircraft, and other items needed by the South Vietnamese in fiscal year 1975. The bill also includes $*,040,000,00 for retired military personnel. There are over 1 million retired persons on ties rolls for fiscal 1975. csrLINGS OW APPROPRIATIONS Mr. President, on February 27, 1974 at the opening of hearings by the Com- mittee on Appropriations on the admin- istration's record $304.4 billio a-plus budget for fiscal year 1975, I anncunced that the committee would, as it d-d last year, establish tentative -ceilings for the bills coming before it. As part of that action, the Subcommittee on Defense projected a reduction a $3.5 billion in new budget authority from a total De- fense request which. at that time. was $85.6 billion. Mr. President, in announcing this tar- get, I said that it was a goal at ie hoped to meet or exceed. The bill re- ported by the Senate Appropriations Committee has significanitly sur ia,ssed this original objective. I point out. that, ' subsequent to submission of the fiscal year 1975 budget, amendments adding $1.5 billion were submitted, bringi ess the total budget request forniscal year 1975 up to a total of $87.1 billion. TWE RAPIDLY INCREASING COSTS OP DErEigsr I am certain that the Senate is con- cerned that Defense outlays hay( risen from $78 billion in 196?i-when we were fighting a war in South Vietnam-to over $85 billion in fiscal-year 1975, when we are no longer at war. The reason for this phenomenon re- sults principally from the very heavy impact that inflation has had cn the Defense budget. Between 1968 and today's Defense budget, military basic -pay rates have more than doubled, adding costs of $9.9 billion. Military allowances are up 41 pc reent This represents an additional $1 9 bil- lion to the Defense budget. Civil service pay has risen 59 percent, requiring an additional- $5.5 billion. The cost of supplies has increased 54 percent, for an additional $13.7 billion_ Retired pay cost Increases total 42.5 billion. In summary, between 1968 and 1975, pay and price increases alone have added about $34 billion to the Defense budget. Even as we discuss the Defense a ppro- priation today, inflation is taking its toll. We will lose $6 billion to inflation even beforewe start to spend the money appropriated in this bill. We will lose $3 billion to inflation from the money appropriated Curing, prior years before We can spend it. Indeed, if we wanted to stay even with last year, it would- require a total budget of $86 billion taking into al- eount a yearly rate of inflation of 11_.5 percent. During the last 2 years, purchas( price inflation has eaten into Aefease insets at a rate of 9 percent or more, compared to the period from 1958 to 1964, when it was less than 1 percent a year. There have been substantial Mcreases between the unit prices budgeted late year and the price the military is paying today f sr the very same item. The cost of a mechinegun is ip 23 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Reletssesn5/T/ff? 61MDP7R9h3pOR000700060018-4 S 15391 August 20, 1974, CONGR A - percent, for a dump truck 65 percent, for a 105 millimeter shell 29 percent, and for a pickup truck 38 percent. With increases of this magnitude in a single year, you can see what has hap- pened to the purchasing power of the defense dollar. Of course, a great deal of this dramatic jump in defense costs is due to the sophistication demanded in modern warfare. In World War II, a B-29 bomber cost $680,000. On a similar basis, if we buy the B-1, it will cost $48 million-almost 71 times as much. - A P-51 fighter aircraft of 30 years ago cost $54,000. An A-7D of today costs $3.3 million, more than 61 times as much. Some more recent comparisons are: A jeep has gone from $3,400 in 1964 to $4,160 in 1973 and is projected to cost $7,000 in 1976. A 21/2 ton Army truck cost $8,700 in 1964. A similar truck costs $15,500 today and is projected to reach $26,000 in 1977. An M-60 tank produced in 1964 cost $170,000, but today's M.-60A2 costs $717,000. A nuclear submarine of 1964 cost about $81 million; today an SSN-688 costs $194 million. A destroyer escort in 1964 cost about $29 million; the DD-963 in the 1975 budget is estimated to cost around $101 million. FOOD COSTS As every housewife knows, food prices have increased significantly in the last few years. In 1967, it cost $1.30 a day to feed a soldier. This rose to $1.52 in 1971, to $1.65 in 1973, and in 1974 has jumped to $2.28 a day. It is expected to go even higher. As shown by the table which I shall insert in the RECORD at this point, everyday food items increased on the average about 61 percent over the past 10 years. I ask unanimous consent that the table be printed in the RECORD. There being no objection, the table was ordered to be printed in the RECORD, as follows: Cost of food items Cost in 1964 (cents) Cost today 1 (cents) Percent increase White bread, 1 lb 0.21 0.27 28.6 Round steak; 1 lb 1.04 1.75 68.3 Rib roast, 1 lb .83 1.56 80.0 Chuck roast, 1 lb . 57 1. 23 115.8 Pork chops, 1 lb . 88 1. 80 104. 6 Bacon, 1 lb . 67 . 90 34. 3 Hamburger, 1 lb . 49 . 82 67. 4 Pork loin, 1 lb .61 1.60 162.3 Milk, Yi gal . 48 . 76 58. 3 Butter, 1 lb .74 .80 9.5 .Coffee, 1 lb . 82 1. 12 36. 6 1 August 1974. These are prices paid by the Department of Defense. INCREASES IN FUEL PRICES Mr. McCLELLAN. Fuel prices continue to increase despite diligent efforts of the Defense Department to reduce petrole- um consumption. Even though consump- tion in 1975 will be 226 million bar- rels-9 million less than last year's con- sumption of 235 million barrels-petro- leum costs have gone up $1,558,500,000 over the fiscal year 1974 cost. All told, it will cost $3,472,600,000 for petroleum products in fiscal year 1975-or 81 per- cent more than it did during the previous fiscal year, and we will be using less fuel. For example, between the middle and end of last year, Air Force jet fuel sky- rocketed from $6.43 per barrel to $13.63, while Navy distillate fuel, which is the prime ship steaming fuel, increased from $4.51 to $15.50 per barrel. Mr. President, I would ask that my colleagues take note of these increased costs in all military operations, so that they may be cognizant that when they insist, that we ought to operate our de- fense establishment on the same level of costs under these inflated prices that we operated it last year, that is tanta- mount to insisting that we reduce the military strength of this Nation. It could not have any other effect, INCREASES IN MILITARY AND CIVILIAN PAY Certainly one of the principal reasons for rising costs has been the huge jumps in pay of our military and civilian per- sonnel. Mr. President, I mentioned earlier that pay and related costs consume 56.1 per- cent of the defense dollar in fiscal year 1975. During the past 10 years, civilian salaries, including those for blue collar wage board employees, have risen by about 85 percent. Average regular mili- tary compensation increased about 93 percent, almost double, during the past 10 years. What effect do increases like this have on our payroll? Ten years ago it cost $14.7 billion for 2.7 million military per- sonnel and $7.3 billion for 1 million ci- vilians. Let us look at the contrast. To- day-in fiscal year 1975-it costs $32.6 billion for 2.2 million military personnel and $14.9 billion for 1 million civilians. In the last 10 years, then, although the number of military has declined signift- cantly and the number of civilians has remained about constant, their pay and related costs have more than doubled. Although good progress has been made in achieving an all-volunteer force, it has come at a high cost. The Department of Defense estimates the additional cost to be $3.7 billion alone during fiscal year 1975. - THE HIGH COST OF RETIRED PERSONNEL The cost of retired military personnel which, unlike most other Federal agen- cies, is funded in the Defense Depart- ment budget, has also increased dra- matically in recent yearS. In fiscal 1964- 10 years ago-retired pay was $1.2 billion. In 1975, it will be well over $6 billion- a fivefold increase in just 10 years. And with annual or semiannual increases in the cost of living retired pay will con- tinue to rise each year. This increase in retired pay is not unique to the mili- tary-Federal civil service retirement has gone up fivefold between 1964 and 1975, and social security increased about four- fold in the same period. All of this, Mr. President, is a product of both increasing numbers on the rolls as well as higher annuities. DEFENSE IN COMPARISON WITH OTHER FEDERAL AGENCIES AND PROGRAMS Finally, I would like to address myself for a moment to the charge made by many that there has been no real re- ordering of national priorities and no significant decline in our defense costs. An examination of the facts shows some- thing quite different. In the 1950's, outlays for national de- fense were about 50 percent of the Fed- eral budget of the Federal Government, total spending. In the 1960's, they were about 40 per- cent of the Federal budget-45 percent in 1968. In the 1970's, they have dropped below 30 percent. In fiscal 1975 they will be only 29 percent of the Federal budget. In the past decade-the 10 years from 1964 to 1974-human resource programs were increasing by the following amounts: Federal aid to education jumped 46.2 percent from $1.3 billion to $7.6 billion. Public assistance increased by 365 per- cent, from $3.1 billion to $14.5 billion. Social security and related retirement and disability programs increased by 283 percent, from $19.6 billion to $75 billion. Health services, including medicare and medicaid, increased by 4,418 percent, from $496 million to $22.4 billion. So, Mr. President, it is clearly evident that contrary to the misconceptions of many-including some Members of the Senate-we are spending far less propor- tionately to maintain our national secu- rity than we are spending for human needs and nondefense programs. Looking at this problem from a slightly different perspective, we find that be- tween 1968 and 1975, total Federal budget outlays rose from $178.8 billion to proposed $304.4 billion-a rise of 70 percent. Defense costs during that same period of time rose by 9 percent, but the remainder of the Federal budget rose 121 percent, legislative functions rose 161 percent, judicial functions rose 231 Percent, executive direction and man- agement rose 433 percent, human re- sources rose 173 percent, and State and local government spending rose 131 per- cent. Mr. President, I think it is obvious that the rising cost of defense is part of a pat- tern of increasing costs which affects all goods and services-and in most cases these costs all rose much more drama- tically and much faster than defense spending. During fiscal 1975, national defense will receive the lowest share of the Fed- eral budqt-under 26 percent, and of total public spending-under 18 percent -since 1940, the year before Pearl Har- bor when defense spending was 8.3 per- cent of all public spending and under 16 percent of the total Federal budget. During fiscal 1975, Defense will have the lowest level of manpower it has had since 1950. During fiscal 1975, Defense will have the lowest level in terms of real purchas- ing power it has had since 1951. This year defense spending will be less than 6 percent of GNP whereas in 1955 de- fense spending was 11.2 percent of GNP. In conclusion, Mr. President, I am aware that the amounts included in this bill will not please everyone. No measure that can be sent to the floor of the Senate could do so. No measure providing ap- propriations for the Defense Department for the military establishment can pos- sibly please everyone. There will always be some Members who will say that we have cut too deeply: Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 s 15392 Approved For RelRase 2005/06/09 : CIA-RDP75600380R000700060018-4 LuNGRESSIONAL RECORD --SENATE August 20, 1974 _ there will always be others who will say that we have not slashed-enough. This bill represents the considered and reasoned judgment of the Members of the Senate most familiar with the issues and problems involved in maintaining our national security. In reporting this bill, we have tried to provide security without excess, muscle without fat. I have been informed that efforts will be made on the floor or May be made to slash this appropriation even further-- to make across-the-boarct cuts-meateti x cuts. Such a move would, in my view, be misguided and irresponsible. The reduc- tions we have already made are substan- tial and represent the maximum that can prudently be made, in my judgment, In defense spending. In fact, in an effort to hold down Fed- eral spending and to balance the budget, we may have cut too much already. It is my hope, Mr. President, that since we have tried to take a middle course, have tried to balance out the necessity for strong defense and also the impact that spending has on defleits and on our economy, that we have struck a balance. It is my hope, Mr. President, that the Senate will accept and support the rec- ommendations of the corninittee. I hone it will accept the recommenda- tions we have made and pass this bill without substantial changes. Of course, during the debate, Mr. President, I will be happy to answer any questions Members may have. I yield to the distinguished Senator from North Dakota. The PRESIDING OFFICER (Mr. BARTLETT). The Senator from North Dakota is recognized. Mr. YOUNG. Mr. President, the Use guished chairman of the Senate Com- mittee on Appropriations, Senator MCCLELLAN, has already explained in considerable detail the various provisions of this defense appropriations bill. It in- cludes the major items of expenditures and other important provisions of the bill. The views he expresses with respect to the defense bill are much the same as mine. I recognize that this appropriations bill will not satisfy everyone. Some of our Members will want to teduce it even more by a percentage cut, or other means, to $81 billion or below, and others may have serious concern that the $5.5 billion reduction is much too great. The huge reduction of 45,491,739,000 in this defense appropriations bill rep- resents the biggest cut in any appropria- tions bill in my time. This big cut, I be- lieve, is responsive to the economic dis- tress we are experiencing in our country today. However, this reduction in the de- fense bill is not the only answer to our economic problems. It is only one of many actions that must be taken if we are to again experience economic stabil- ity. Reductions in other appropriations have and should be accomplished in an attempt to balance the budget and re- duce spending as much as possible. I have always strongly believed that our Armed Forces should- be equipped with the most modern and effective weapons possible, even if it meant that total troop levels would have to be re- duced. It is because of my strong belief in this principle that I am concerned this $5.5 billion reduction may be too much in some areas. I am particularly concerned about the research and devel- opment of newer and more modern weapons. This austere budget will provide con- siderable funding for research and devel- opment for the start of some new mod- ern weapons and the continuation of others. It certainly is inadequate to sup- port all of what mighe well be necessary in the development of new weapons of the future that are emerging as ideas today. At the outset of almost every war in which we have been Involved, our ene- mies have had better, more modern, and effective weapons. This was certainly true of World War 1 and World War II. The most recent example was the Middle East war. The arms :supplied by the Soviet Union to the Arab nations were equal to or better than most of the weapons we supplied to the Israelis. This is but one clear example of the ability of our potential enemy to equip his forces with the most modern and sophis- ticated weapons. It just does not make sense for a nation as great as ours to be second best in technology arid weapons systems necessary to protect our na- tional interests. One of the major reasons why it is so difficult to cut defense spending this year Is the cost of our all-volunteer mil.tary force. The average annual pay of mili- tary personnel just 6 years ago was ap- proximately $5,500. Now that average pay for military personnel is considerably beyond $11,000 a year. This bill reduced military and civilian manpower. Military manpower overall Is reduced by 24,211 to a total strength of 2,127,912 by the end of fiscal year 1975. This will be the lowest military strength in this country since 1950 or before the Korean war. This defense bill, as re- ported by the Senate Appropriations Committee, requires that the military personnel overseas be reduced by 25 000. This overseas reduction is in no way in- tended as a unilateral action on the part of the committee to reduce troops in Europe or prejudice the efforts of our representatives to negotiate in Vienna for a mutual and balanced force reduc- tion. This reduction in our overseas military force is left to President Ford and the Department of Defense. Civilian personnel will be reduced under this bill by 32,327 below the budget estimate at a savings of an estimated $403,000,000. Most of this reduction will be by attrition and denial of personnel increases. There has been a very sizable overrun in the cost of many of the important weapons systems that are now being pro- duced. Inflation is not only resulting in higher costs of weapons systems, but al- most everything that people have to buy. The cost of much more simple farm trac- tors has doubled or even tripled In the last 10 years. To a large extent this is true of automobiles and most things that the housewife has to buy. Inflation hurts the cost of military equipment evEn mare severely because these weapons systems are much more complex and sophisti- cated than ordinary industrial goods. Mr. President, every Ameriean is acutely aware of the etect inflation has and is having on our lives today. This is compounded by the energy eris s. The farmer, businessman, manufacturer-- and particularly the American famine-- are having to da without, delay or en into debt to even continue to do the things they were accustomed to doing only a year ago. This is also true of Government agencies. The Defense Department faces thane same problems. I belie that the $5.5 billion cut contained in this bill before us today cuts right down to the bone and any further cuts would jeopardize our defense. I urge all of my colleae nes to support this bill substantially as re- ported. The PRESIDING OFFICER. The Sen- ator from Wisconsin is recognized. Mr. PROXMIRE. Mr. President. I call up my amendment No. 1810. The PRESIDING Oren.CER. The com- mittee amendments have not been dee- posed of. Mr. Pik0XMIRE. I beg the Chair's pardon. Mr. MeCLELLAN. Mr. President I ask unanimous consent that the committee amendments be agreed to en bloe, and that the bill as amended be considered as original text for the purpose cf fea- ther amendment, with the understand- ing that no points of order be considered as having been waived bY reason thereof. The PRESIDING CeeluCER. Without objection, it is so ordered. The amendments agreed to en bloc are as follows: On page 2, in line 10, strike out "47,875,- 013,000" and insert in lieu thereof "47,762,- 213,000". On page 2, in line 18, strike out '15,720,- 230,000" and insert In lieu thereof "45.365,- 510,000". On page 3, in line 10, strike out "$1,713,- 506,000" and insert in lieu thereof "$1,686,- 206,000". On page 3, in liner 18, strike out "67.332,- 151,000" and insert in lieu thereof "$7210,- 881,000". On page 4, in line 1, strike out -$498,- 600,000" and insert in lieu thereof '$485,- 800,000". On page 4, in line 9, strike out "$216,- 200,000" and insert in lieu thereof '$202,- 900,000". On page 4, in line 17, strike out "$68,- 500,000" and insert in lieu thereof "$5'7,- 800,000". On page 4, in line, 25, strike out "$145,- 865,000" and insert in lieu thereof "$147,- 865,000". On page 5, in line 7, strike out "1800.- 800,000" and insert in lien thereof "$361,- 300,000". On page 5, In line 15, /strike out "$204,- 527,600" and insert in lien thereof "1205,- 027,000". On page 6, in line IO, strike out "0,228,- 389,000" and insert in lieu thereof '1,137,- 532,000". On page 6, in line 11, strike out "370,- 000,000" and insert in lieu thereof "$343,- 000,000". On page 6, In line 22, stake out "$7,177.- 915,000" and Insert in lieu thereof "$7,140,- 575,000". Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 August 20, 19744PPmved FrcfterZfRieffnicitvccditi6DPWIYMOR000700060018-4 S 15393 On page 7, in line 8, strike out "$451,- 624,000" and insert in lieu thereof "$449,- 284,000". On page '1, in line 18, strike out "$7,113,- 254,0000" and insert in lieu thereof "$7,077,- 930,000". On page 8, in line 2, strike out "$763,- 143,000" and insert in lieu thereof "$748,- 642,000". On page 8, in line 4, strike out "$203,- 932,000" and insert in lieu thereof "$201,- 932,000". On page 8, in line 1, strike out "$11,224,- 000" and insert in lieu thereof "$10,924,- 000". On page 8, in line 8, strike out "$14,772,- 000" and insert in lieu thereof 1314,356,- 000". On page 8, in line 13, strike out "$757,- 453,000" and insert in lieu thereof "$765,- 153,000". On page 8, in line 14, strike out "$2,357,- 375,000" and insert in lieu thereof "$2,350,- 159,000". On page 9, in line 12, strike out _"$279,- 600,000" and insert in lieu thereof 600,000". On page 10, in line 19, strike out "286,- 680,000" and insert in lieu thereof 580,000". On page 11, in line 13, strike out 500,000" and insert in lieu thereof "$589,- 500,000". On page 12, in line 9, strike out 500,000" and insert in lieu thereof 500,000". On page 12, in line 11, after the word "facilities", insert a colon and the following language: "Provided, That not less than ninety-two flying units shall be maintained during fiscal year 1976". On page 13, in line 5, strike out "$81,- 900,000" and insert In lieu thereof 456,- 900,000". On page 13, beginning at line 17, insert the following new language: CONTINGENCIES, DEFENSE "For emergency and extraordinary expenses arising in the Department of Defense, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of necessity for confidential military purposes; $5,000,000.". On page 14, in line 16, strike out "$224,- 300,000" and insert in lieu thereof "$265,- 700,000". On page 16, in line 5, strike out "$341,- 800,000" and insert in lieu thereof "$343,- 500,000". On page 16, in line 22, strike out "$726,- 500,000" and insert in lieu thereof "$720,- 200,000". On page 17, in line 20, strike out "$669,- 600,000" and insert in lieu thereof "$689,700,- 000." On page 18, in line 11, strike out "$2,814,- 000,000" and insert in lieu thereof "$2,745,- 200,000". On page 18, in line 23, strike out "$726,- 000,000" and insert in lieu thereof "$748,- 600,000". On page 19, in line 17, after $214,300,000" Insert a comma and the following language: "which shall be available only for construc- tion of DLCIN 41 and for advance procure- ment funding for DLGN 42, both ships to be constructed as follow ships of the DLGN 38 class." On page 19, in line 24, after "$116,700,000;" insert the words "for a fleet oiler, $81,- 400,000;". On page 20, in line 6, strike out "$3,059,- 000,000" and insert in lieu thereof the fol- lowing language: "$3,140,400,000 and in ad- dition $103,600,000 for escalation and cost growth on prior year programs which shall be derived by transfer from 'Shipbuilding and Conversion, Navy 1973/1974,'.' "$273,- "$292,- "$586,- "$632,- "$652,- On page 21, in line 5, strike out "$1,602,- 600,000" and insert in lieu thereof "$1,582,- 600,000". On page 22, beginning in line 12, strike out the following language: "$3,190,300,000, and in addition, $76,200,000, of which $49,- 400,000 shall be derived by transfer from 'Aircraft Procurement, Air Force, 1974/1976' and $26,800,000" and insert in lieu thereof the following language: "$2,706,700,000, and in addition, $153,600,000, of which $106,800,- 000 shall be derived by transfer from 'Aircraft Procurement, Air Force 1974/1976' and $46,- 800,000". On page 23, in line 9, strike out "$1,555,- 200,000" and insert in lieu thereof "$1,518,- 700,000". On page 24, strike out "$1,864,400,000" and insert in lieu thereof "$1,7'72,000,000". On page 24, in line 21, strike out "$102, 017,000" and insert in lieu thereof "$98,- 416,000". On page 25, in line 9, strike out "$1,831,- 630,000" and insert in lieu thereof "$1,749,- 152,000". On page 25, in line 17, strike out "$3,065,121,000" and insert in lieu thereof "$2,979,612,000". On page 26, in line 2, strike out "$3,377,317,000" and insert in lieu thereof "$3,144,460,000". On page 28, in lino 1, strike out the semicolon and the following language: "$622,600,000, and in addition, $77,400,000, which shall be derived by transfer from "Aircraft Procurement, Air Force, 1974/1976" and shall be available only for the procure- ment of F-5E aircraft" and insert in lieu thereof a comma and "$700,000,000". On page 31, in? line 5, strike out "$204,343,000" and insert in lieu thereof "$202,343,000". On page 42, in line 14, strike out the words "or drycleaning facility" and insert in lieu thereof the words "dry cleaning facility, or purchase of bulk milk dispensing equip- ment". On page 50, in line 9, strike out the figure "427" and insert in lieu thereof "436". On page 50, in line 9, strike out the figure "567" and insert in lieu thereof "576". On page 50, beginning at line 15, insert the following new language: "Sec. 847. None of the fimds appropriated by this Act shall be available for use after March 31, 1975, to support United States military forces stationed or otherwise as- signed to duty outside the United States in any number greater than 440,000, not in- cluding military personnel assigned to duty aboard United States naval vessels.". On page 51, in line 4, strike out "$1,100,000" and insert in lieu thereof "$800,000". Mr. McCLELLAN. Mr. President, I ask unanimous consent that the following changes be made in the bill to correct typographical errors: On page 20, line 6, after the amount "$3,140,400,000" insert a comma, and on line 9, strike the year "1974" and insert in lieu thereof "1977". The PRESIDING OFFICER. Is there objection? Without objection, it is so ordered. The Senator from Wisconsin. AMENDMENT NO. 1610 Mr. PROXMIRE. Mr. President, I call up my amendment No. 1810. The PRESIDING OrleiCER. The amendment will be stated. The assistant legislative clerk read as follows: On page 28, line 5, strike out "$700,000,- 000," and insert in lieu thereof, "41550,000,- 000,". Mr. PROXMIRE. Mr. President, I ask unanimous consent that the following Senators be added as cosponsors: Sen- ators KENNEDY, SCHWEIKER, HART, COOK, HATFIELD, SYMINGTON, CRANSTON, MOSS, CLARK, PELL, GRAVEL, ABOUREEK, MC- GOVERN, HATHAWAY, METZENBNUM, BATH, HARTKE, CHURCH, and STEVENSON. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. PROXMIRE. Mr. President, I ask unanimous consent that Mr. Ron Tam- men, of my staff, be permitted to remain on the floor during the debate and vote on this amendment. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. PROXMIRE. Mr. President, I ask unanimous consent that I may suggest the absence of a quorum without losing my right to the floor. The PRESIDING OFFICER Without objection, it is so ordered. The clerk will call the roll. The second assistant legislative clerk called the roll, and the following Sen- ators answered to their names: [No. 372 Leg.] Bartlett Hathaway Stevens Byrd, Robert C. Hughes Symington Clark Inouye Tower Cranston Mathias Young Goldwater McClellan Haskell Proxmire The PRESIDING OFFICER. A quorum is not present. Mr. ROBERT C. BYRD, Mr. President, I move that the Sergeant at /inns be directed to request the attendance of absent Senators. The PRESIDING OFFICER. The question is on agreeing to the motion of the Senator from West Virginia. The motion was agreed to. The PRESIDING OFFICER. The Sergeant at Arms will execute the order of the Senate. After some delay, the following Sen- ators entered the Chamber and answered to their names: Abourezk Ervin Montoya Aiken Fannin Moss Allen Fong Muskie Baker Fulbright Nelson Bayh Griffin Nunn Beall Gurney Packwood Bellmon Hansen Pastore Bennett Hart Pearson Bentsen Hartke Pell Bible Hatfield Percy Biden Helms,Randolph Brock HollingsRibicoff Brooke Hruska Roth Buckley Huddleston Schweiker Burdick Humphrey Scott, Hugh Byrd, Jackson Scott, Harry F., Jr. Javits William L. Cannon Johnston Sparkman Chiles Kennedy Stafford Church Long Stennis Cotton Magnuson Stevenson Curtis Mansfield , Taft Dole McClure Talmadge Domenici McIntyre Thurmond Dominick Metcalf Tunney Eagleton Metzenbaum Weicker Eastland Mondale Williams The PRESIDING 0.er iCER. A quorum is .present. MESSAGE FROM THE HOUSE A message from the House of Repre- sentatives by Mr. Hackney, one of its Approved For Release 2005/06/09: CIA-RDP75B00380R000700060018-4 S 15394 Approved ForRektatINAIP6105M130-4WPR7 g700060018-Au_ , ST 20, 1T7 reading clerks, announced that the House has passed the bill (S. 1871) to amend the Youth Conservation Corps Act of 1972 (Public Law 92-597, 86 Stat. 1319) to expand and make permanent the Youth Conservation -Corps, and for other purposes, with an. amendment in which it requests the concurrence of the Senate. The message also annostmced that the House agrees to the report of the com- mittee of conference on the disagreeing votes of the two Houses on the amend- ment of the House to the bill (S. 3783) to authorize in the District of Columbia a plan providing for the representation of defendants who are financially unable to obtain an adequate defense in crim- inal came in the courts of the District of Columbia, and for other purposes. The message further manouncesd that the House agrees to the report of the committee of conference on the dis- agreeing votes of the two Houses on the amendment of the Houseto the bill (S. 3703) to authorize in the District of Co- lumbia a plan providing for the repm- seritation of defendants who are finan- cially unable to obtain an adequate de- fense in criminal cases in the courts of the District of Columbia, and for other Purposes. The message further announced that the House agrees to the senendments of the Senate to the bill (H.R. 14402) to amend the Act of Septeiriber 26, 1966 (Public Law 89-606), as aziended, to ex- tend for 2 years the perioctduring which the authorized numbers for the grades of lieutenant colonel and colonel in the Air Force are increased. The message also annottaced that the House agrees to the report of the com- mittee of conference on tile disagreeing votes of the two Houses on the amend- ment of the Senate to the bill (H.R. 15842) to increase compensation for District of Columbia policernen, firemen, and teachers; to increase annuities par- able to retired teachers in the District of nolumbia an equitable tax on real prop- erty in the District of Columbia; to pro- eide for additional revenue for the Ma- llet of Columbia; and for other purposes. The message further announced that ihe House agrees to the report of Um committee of conference on the dis- agreeing votes of the two Muses on the mendments of the Senate to the bill (H.R. 15581) making appropriatiops for the government of the District of Columbia and other activnies charge- le in whole or in part against the rev- enues of said District for the fiscal year onding June 30, 1975, and for other put- ones; that the House recedes from its linagreNnent to the amendment of the eenate No. 20 and concurs therein; and tat the House recedes from Its disagree- ment to the amendment of the Senate J. 5 and concurs therein with an nnenciment in which it requests the con- ( irrence of the Senate. The message also announced that the reuse has passed the following bills in ?eich it requests the concurrence of the F 11 11. 5507. An net to authoeive the con- ? van ^e to the city of Salem, IlL, of a statute ? Nilliena Jennings Bryan; net 9054. An act to amend the act en- titled "An set to authorize the Secretary of Agriculture to execute a subordination agree- ment with respect to certain lands in Lee County, S.C.; HR. 11796. An act to provide for the duty- free entry of a 3.60-meter telescope and asso- ciated articles for the use of the Canada- France-Hawaii telescope project at Mauna Kea, Hawaii; H.R.. 12113. An act to revise and restate certain functions and duties Of the Comp- troller General of the United States, and for other purposes; H.R. 13157. An act to provide for the estab- lishment of the Clara Barton National His- toric Site, Md.; John Day Fossil Beds Na- tional Monument, Oreg.; Knife River Indian Villages National Historic Site, N. Dalt.; Springfield Armory National Historic Site, Mass.; Tusiregee Instituee National litatoric Site, Ala.; and Martin Van Buren National Historic Site. N.Y.; and for other purposes; H.s. 14217. An act to provide for increases in appropriation ceilings and boundary changes in certain units of the National Park System, to authorize appropriations for addi- tional costs of land acquisition for the Na- tional Park System, and for other puiposes; and H.R. 14600. An act to increase the borrow- ing authority of the Panama Canal Company and revise the method of computing interest thereon. HOUSE jerete REFERRED The following House bills were each read twice by their titles and referred as Indicated: H.R. 5507. An act to authorise the son- veyance to the city of Salem, Ill., of a statute of William Jennings Bryan to the Commit- tee on Rules and Administration. HR. 9054. An act to amend the Act ent.tled -An Act to authorize the Secretary of IL,gri- culture to execute a subordination agree- ment with respect to certain lands in Lee County, S.C.; to the Committee on Agricul- ture and Forestry. H.R. 11796. An act to provide for the d aty- free entry of a 3.60-meter telescope and as- sociated articles for the t-se of the Canada- France-Hawaii Telescope Project at Mauna Kea, Hawaii; to the Committee on Finance. H.R. 12113. An act to revise and restate certain functions and duties of the Comp- troller General of the DM -exi States, and for other purposes; to the committee on Gov- ernment Operations. MR. 13157. An act to provide for the es- tablishment of the Clara Berton National His- toric Site, Md.; John Day Fossil Beds Na- clonal Monument, Oreg.; Knife RIvereInditan Villages National Historic Site, N. Duke' Springfield Armory National Historic Site, Mass.; Tuskegee Institute Nation& Historic Site, Ala.; and Martin Van Buren National Historic Site, N.Y.; and for other purposes: to the Committee on Interior and insular Affairs. HR. 14217. An ate to prcvide for increases In appropriation ceilings and boundary rhangee in certain units of the National Bark System, to authorize appropriations for ad- itional costs of land acquisitlein for the National Park System, and for other pur- poses; to the Committee on Interior and in- . s War Affairs. E.R. 14600. An act to increase the borrows lag authority of the Panama GanarCompany and revise the method of ccrnputing interest ..ereon; to the Conunittee on commerce DEPARTMENT OF DEFENSE APP70- PRIATION ACT, 1975 The Senate continued with the eon- sideration of the bill (HR. 16243 ) mak. tog appropriations for the Department of Defense for the fiscal year ending June 30, 1975, and for other purposes Mr. PROXMIRE. Mr. President, I ask for the yeas and nays on the pending amendment. The yeas and nays were ordered_ AMENDMENT NO. 18111 LIMITARY AID TO BOWTH 'BETNA.kt Mr. PROXMIRE. Mr. Presider.% way should the Senate increase the amount of funds it approved last year for the South Vietnamese Armed Forces by 27 percent? That is precisely what the bill before us will do. It will increase the military aid provided to Vietnam from the $550 million the Appropriations Committee and the full Senate approved lint year to $700 _million. That $150 million in- crease represents the 27 percent. Last year the festal amOunt appropri- ated by the Senate for military assist- ance service funded was $650 million. This money was for two countries, South Vietnam and Laos. Laos received a little over $100 million. This left about $550 million as approved by the Senate for South Vietnam. BOLD TUE LINE TO LAST YEAR My amendment would allow the same appropriations for Vietnam as accepted by the Senate lest year.?$550 trillion. Money for Laos is now contailled ai the military assistanee program?MAP-- under the foreign aid bill. It is net a part of this bill and therefore the $100 million for Laos last year must be sub- tracted from the $650 million that was appropriated. This leaves $550 million--- the level established in my amendment. Mr. President, I am well aware that after the SMIlate approved the Slat' me - lion for Laos and the $$50 million for South Vietnam last year, the conference committee with thg House compromised at a much higher figure of $1,126 million. Of that total, $266 million subsequently has been charged to the fiscal year 1975 account to make up for deliveries and expenses incurred in prior years, The so-called bookkeeping was confined to the fiscal year 1974 budget by the astion of the Kennedy amendment on the iscal Year 1974 supplemental. The practiera effect of theenclusion of the charge of this $266 million to the fiscal year 1974 budget is to reduce the amount of new money in that budget by $266 million. When the Laos money of $108 million Is taken out of last year's final budget for MASF, and the $266-million is subtractel since it applies to prior_commitimints. and some $69inillion is reduced for :Ray. back of airemft shipped earlier, only $683 million vats left for new programs. Therefore, men ealging by the figures that came outlet the conference commit- tee, a Senate position of $550 mit ion the same as last year, is practical and not the reduction the administration would have us believe. Mr. President, I do not think it neees- -sere to point cut just how inflation Is affecting our economy. The stark facts are that, due as increased cost of inte es on the national debt, the Defense supple- mental request, veterans educatic nal benefits, arid a rise in court-released Impounded funds, spending?that is r - Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 0700060018-4 August 20, 1974 Approved tfurtitilt/882:11M6LOBCORADR-107313633i3OROO S 15395 lays?will rise to the $310 billion level this year. This is a cold fact of life that will occur even though the total appro- priations actions of Congress will prob- ably be below the budget request bY some $6 to $8 billion, and most of that re- duction is in this bill. The distinguished Senator from Arkansas (Mr. MCCLEL- LAN) deserves great credit for having made this kind of reduction. I know it was not easy. He worked very hard on it. He and the distinguished Senator from North Dakota (Mr. YOUNG) deserve great credit, in this inflationary year, for being very sensitive to the need for whatever reduction they could make. Congress and the President now face the fact that even with all of our hard efforts, fiscal year 1975 spending will be a mammouth $40 billion or 15 percent over last year at a time when we face the worst inflation in our peace time history. What this means is that the President and this Congress must now decide where further spending can be cut, slowed down, stretched out, or stopped. alto- gether. Of all the areas in the Federal budget, there is less need for sending hundreds of millions in military aid to Vietnam than any other single item. What I am proposing is not a cut in terms of the Senate's position of last year. It is the same appropriation as con- sidered in the Appropriations Committee and accepted on the floor last year. Granted, inflation has had an impact on this military aid to South Vietnam. But should we ask the American public to pay for their own inflation and add on top the inflation in the goods we freely give to South Vietnam? The very least we can do is let the South Vietnamese military forces ab- sorb the impact of U.S. inflation with- out asking the taxpaying American pub- lic for another subsidy. STRATEGIC IMPLICATIONS What about the strategic situation in South Vietnam? By not increasing our military commitment to that nation will we be handing it over to the Commu- nists? Well, the Vietnamese war has been going on for over 20 years. We have joined in the history of that conflict only in the last 10- or 12-year period. The war was going on before we got there. It Is going on even though we left. ? No one can say that our contribution has been inadequate. According to the Defense Intelligence Agency?DIA?U.S. military aid to South Vietnam was eight times greater?think of that, Mr. Presi- dent; our aid to South Vietnam was eight times greater than that given by the two Communist powers to North Vietnam in 1973. Since 1966 the DIA estimates show the United States spent 29 times as much in Indochina as the Soviets and Peoples Republic of China combined. This amounts to $2.57 billion from the :U.S.S.R. and $1.08 billion for the Peoples Republic of China--PRC. The United States on the other hand spent $107.10 billion in the same period including some $10.4 billion in direct military aid. This is not my estimate. It is the esti- mate of the Defense Intelligence Agency of our Government. Estimates for U.S.S.R. and PRC sup- port were said to be $290 million for calendar year 1973 compared to $2.3 bil- lion in military aid from the United- States to South Vietnam. While Chinese and Russian arms shipments were reduced by more than half from 1972 to 1973, the United States Increased its shipments by $286 million in the same 1-year period. I ask my colleagues, has our contribu- tion been inadequate? Have we spent enough money? Did we lose enough lives? Are we being foolish to try to hold the line on further spending for SOuth Vietnam? I think the answer is obvious. FOREIGN POLICY IMPLICATIONS The maintenance of high levels of military aid to South Vietnam could be contrary to our long-term foreign policy objectives in Indochina. We are com- mitted to a policy of military disengage- ment. Yet, the House has proposed an appropriation $150 million greater than that deemed proper by the Senate last year?a sum actually larger than the fiscal year 1974 final new appropriation when bookkeeping reductions are made. It has become more and more evident in the past few months that South Viet- nam does not need increases in military aid in order to survive. Within the last 2 months, both Defense Secretary Schlesinger and Admiral Moorer have declared that the military situation in South Vietnam is far from crtical. On June 5, 1974, Secretary Schlesinger told the House Foreign Affairs Commit- tee that the United States no longer ex- pects a major Communist offensive in South Vietnam. On July 8, Admiral Moorer, the 'former Chairman of the Joint Chiefs of Staff, told U.S. News & World Report that he saw no evidence of an offensive by the North Vietnamese and that the "main thrust of their effort has been directed toward developing the infrastructure and seeing what they could do to in- crease their political influence with the population." Reports in recent weeks about a new offensive have now died out, perhaps spawned in the first place by a desire to influence congressional consideration of the military assistance request. Congressional study groups returning from recent trips to Vietnam, including one led by Congressman PETER PRELING- HUYSEN of the House Foreign Affairs Committee, have reported that the Thieu government has done very well since the cease-fire. His study group estimated that Saigon has gained control over 779 more hamlets since the January 1973 Paris truce, while the Communists have lost their hold on nearly 400 hamlets over that same time span. There seems little need to increase military assistance to a nation enjoy- ing such successes in the field. The truth of the matter is that the Thieu government and the North Viet- namese have been on a limited warfare basis since the Paris truce. The peace agreements have been violated at will by both sides. ? WASTE AND CORRUPTION What happens to the hundreds of mil- lions that we give to South Vietnam? Unfortunately much of our assistance has gone to line the pockets of corrupt officers and bureaucrats. Talk to anyone who has served in Vietnam at any level. They will tell you of the black market operations, the U.S. military assistance goods being sold on the same street as the 'U.S. warehouses, the bribery and cor- ruption that is expected at every level of Government. But we need not rely on second hand evidence. We know about the thousands of "ghost" soldiers added to military pay- rolls for which the United States pays about 40 percent of the salaries. South Vietnam's 92 generals have only recently been ordered to cut their per- sonal staffs of chauffeurs, bodyguards, and servants from 36 to 11 each. They have also been told that they must make do with two rather than four, motor ve- hicles. That is ' where U.S. tax dollars have gone. Think of it. O'nly 11 chauf- feurs and servants each. Evidence has also been uncovered re- cently that a number of new American A-37's worth $500,000 each?are being dismantled and sold for scrap on the black market in Saigon. A police raid on an illegal scrap operation yielded the wings of 15 planes as well as substantial amounts of other U.S.-made military equipment which were being readied for foreign export. We ship it to them. They tear it down . and export it out of the country for a profit. Not a bad deal some would say. PLENTY OF ECONOMIC AM AVAILABLE Mr. President, the passage of my amendment would not leave South Viet- nam "high and dry." In addition to the $550 million I would provide in military assistance, the United States will con- tribute nearly $1 billion in economic aid to South Vietnam?by far the largest total allotted by us to any nation. It is true that the Foreign Relations Committee has just voted to reduce this to $500 million. If it stays at that level, it would still represent the largest total for any nation. This $500 million is in addi- tion to the $700 million that we have in this bill. The administration has requested $911,553,000 in economic aid to South Vietnam; $751 million will come out of security supporting assistance and the Indochina postwar reconstruction ac- counts; $160,553,000 was requested for Public Law 480, the commodity sales and. food for peace legislation. No other country in the world is sched- uled to receive this much economic aid. Not Central West Africa and the drought stricken Sahel, not the war torn Ban- gladesh, not Cambodia with its continu- ing strife, not Indonesia, India, or Korea. Not Pakistan, Egypt, or the entire eco- nomic assistance package to Africa. It surpassed the total economic aid planned for all of Latin America or the Middle East. It is one-fifth of all U.S. economic aid worldwide. Approved For Release 2005/06/09: CIA-RDP75600380R000700060018-4 S 15396 Approved For ReleCONSREASORWRIROMISOP?Mfteff00060018-4Auvust A; 1974 No?we will not be leaving South Viet- nam "high and dry." ? To conclude, Mr. President, there is no reason why the American taxpayer ehould be called upon to pay $700 million Leis year for supporting the South Viet- namese military machine. Keeping military aid to South Vietnam t the same level as the 'Senate approved lact year, when taken in the context of our raging inflation at home, is the very least we can do. Mr. President, I yield the floor. Mr. FELL. Mr. President, I am pleased to cosponsor the amendment of Senator PROXMIRE to the fiscal year 1975 Depart- ment of Defense approptiations bill. The amendment, which would reduce mili- tary aid to South Vietnam to last year's level of $550 million, is a necessary step in the process of phasing out the Amer- ican role in Indochina. Those who oppose the reduction in military aid claim that additional aid will enable South Vietnam to turn the corner and attain economic and military self-sufficiency. Yet this. Is a refrain that we have heard for too many years. The United States has sacrificed 50,000 lives and hundreds of billions of dollars to prevent the imposition of a militaty solu- tion in Vietnam. "Vietnamization" has had ample opportunity to prove itself the burden of defense must Increasingly be borne by the South Vietnamese them- selves. By reducing American aid, we will be saving precious funds we can ill-afford to spare. More important, the United States will be demonstrating its firm conviction that political accommodation must be found in Vietnam. Our aim should not be military victory for the south, but rather a political settlement consonant with the Paris Accords of January 1973. Reconciliation and recon- struction, long overdue, require a context of peace. The continuing war in Vietnam, to a significant extent made possible by American arms supplied to the south, must come to an end. RECESS FOR 30 MINUTES The PRESIDING OFFICER. The Senator from West Virginia. Mr. ROBERT C. BYRD. Mr. Presi- dent, I move that the Senate stand in recess for 30 minutes. The motion was egreed to; and, at 4:35 p.m., the Senate took a recess until 5:05 p.m.; whereupon the Senate reas- sembled when called to order by the Presiding Officer (Mr. Ttneeray). DEPARTMENT OF DEraNSE APPROPRIATION ACT, 1975 The Senate continued with the con- siderationeef the bill (H.R. 16243) mak- ing appropriations for the Department of Defense for the fiscal year ending June 30, 1975, and for other purposes. Mr. CLARK obtained the floor. Mr. CLARK. Mr. President, I yield to the Senator from West Virginia. Mr. ROBERT C. BYRD. Mr. Presi- dent, I suggest the absence of a quorum. I ask unanimous consent that the Sen- ator from Iowa not be deprived of his rights to the floor because of the quorum The PRESIDING OFFICER. Without objection, it is so ordered. The clerk will call the roll. The assistant legislative cleric pro- ceeded to call the roll. Mr. ROBERT C. BYRD. Mr. Presi- dent, I ask unanimous consent that the order for the quorum call be reminded. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. CLARK. Mr. President, I wish to add my name as a cosponsor of amend- ment No. 1810. applaud the significant reductions voted by the Appropriations Committee under Senator McCeeeeen's leadership in this appropriations bill. However, in my judge-lent, there :s a need and an op- portunity for additional reductions. Specifically, Senator PROXMIRE has pre- sented a most persuasive case for reduc- ing the military assistance appropriation to South Vietnam from $700 to $550 mil- licae To get a complete picture of U,S. assistance to South Vietnam, WE must Include the $420 million for postwar re- construction recommended by the For- eign Relations Committee in the Foreign Assistance Act of 1975 and the $160.5 mil- lion in commodity sales and food-for- Peace funds included in Public Law 480. Total aid to South Vietnam then, with the cuts suggested by Senator PROXMIRE, Will still approach $1.13 billion. Surely, this is more-than-generous support, to a less-than-model regime, in these most inflationary times. There are positive and compelling rea- sons for limiting our military assistance to South Vietnam. Senator Peoxesme has cataloged quite comprehensively the groes imbalance between Soviet-Chinese aid to the North and American aid to the South?We provide eight times as much aid to South Vietnam as the Communists provide to North Vietnam?and he has pointed out the waste and corruption which our aid has generated. The problem of a political settlement in South Vietnam is a key argument in favor of this amendment, because a re- sponsible limitation of our aid can en- courage such a long-overdue settlement. With each new weapon we supply the South Vietnamese, the incentives for the two adversaries to negotiate are further eroded. This is not to say that we should blanie the South Vieenamese alone for continuing the largest war on Earth or that we shonld allow their army to be- come weak. But by limiting our military assistance, wedo signal ally and adver- sary alike that it is time to negotiate. The enormous and disproportionate U.S. military assistance undermines the Communist powers' belief in America's peaceful intentions in Vietnam, and despite a carefully built detente, the pos- sibility of a cooperative American-So- viet-Chinese effort to force both sides to observe the Paris agreement is jeoPar- dized. Only through this cooperative ef- fort, with each side bringing pressure to bear on both the North and the South to abide by the Paris agreements, wel we have peace in that land. Surely we should have learned by now that there is no military solution to the war in Vietnam. Today, we can begin to change that. By limiting the military assist ince ap- propriated for South Vietnam to the level approved by the Senate last year, we will responsibly reduce Federal ex- penditures, while encouraging a real Peace in Vietnam. Mr. GOLDWATER, Mr. President, I rise in opposition to the pending meas- ure. In all due respect to the Senator from Wisconsin, whose efforts to cut the budget I applaud?as! generally go along with him?I must *element that the Committee on Appropriations has done an outstanding job he reducing the de- fense budget. I believe the cut is slightly in excess of $5 bill/oil I am not going to argue, as I normally would, about that cut, because I think there are places in the militare budget that can be cut, and Z am sure the dis- tinguished chairman from Arka isa.s has carefully worked on that bill. I can understand the desire of the Senator from Wisconsin to cut the money that we have promised to South Vietnam, but I am afraid that son* of his informa- tion, even though it .comes from high members of the Defense Department, does not jibe exactly with information that I have from equally high people. What the Senator does not realize is that the North Vietnamese have been preparing for this massive offensive for a long time. That offensive is underway. Contrary to what he may have been told, the offensive is Underway end the North Vietnamese are in better shape to pursue a successful campaign at this time than they have been at any time in the 20 years that this long war has gone on. Even though the figure that he uses, that we give eight times the aid that the Soviets in Red China give to North Viet- nam, I think if one reduces it to cost, one will find that they prebably give a little more than we do in actual equipment. They have not only rebuilt the a r bases that were used in the area Just south of the DMZ; they have built new peved runways north of the DMZ and south of the DMZ. They,have a petroleum pipeline that now can service air units and reservice ground units to the very close proximity of Saigon. They have railroads halt to- ward the south that they did not have before and, as I have mentionece some greatly improved roads. So far, Mr. President, I feel that if we renege on giving South Vietnam what we told her we would give, South Viet- nam is going to be in a very bad way. It is true that there has been graft over there. It is true that they have ntisused our equipment. I have been in that part of the world. In fact, in World War Ii I served in that part of the world. Mis- using equipment and haying dishonesty among the military seam to be a way of life for them. It has always been. But the important thing, I believe, is that?and 'lye cannot laugh this oft? with the present ability of the North Vietnamese to wage a successfie, war the whole of Vietnam can become a Communist part of this world. ihen 1 have to remind my colleagues that when this happens, Laos undoubtedly will fall, Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 _August 20.,':174 Approved b5/1$8ainiagria6w0iffj4.0133Thiati3BOR000700060018-4 S 15397 Cambodia will fall. Then we are going to be confronted with a question of what we do about our very valued allied, the Thais. Just to the south of Thailand, in fact, on the Thai peninsula, is the opportu- nity to build a canal or a pipeline across the isthmus that will make the delivery of oil to our own shores and to our ally, Japan, that much easier. If we lose all of Southeast Asia, Mr. President, because we want to renege on the money that we have promised them, then I think the United States is going to wind up suf- fering far, far more than the $150 mil- lion that is involved in the Senator's amendment. Mr. President, for these reasons, for the very great importance of Southeast Asia, whether we like to believe it or not, I hope that my colleagues will vote against this amendment. I should not want this to discourage my friend from Wisconsin from offering further amend- ments to cut. As he knows, I generally go along with him. But in this one, I think we are taking a risk that we can- not afford to take. Mr. PROXMIRE. Will the Senator yield briefly? Mr. GOLDWATER. I yield. Mr. PROXMIRE. I thank the Senator for a very fair and moderate statement on this amendment. I should like to ask the Senator, though, how long he would expect us to go along with this billion dollar aid, in effect, when we consider the economic aid and the military aid, because the average the Committee on Foreign Relations is recommending is that the Senate provide half a billion dollars in economic aid. We are providing $700 million here in military assistance, so it will be well over a, billion dollars. It Just seems to be endless. We just seem to be going on forever. It has been a 20-year war. We are now out of it by a year and a half or so. It seedis like an endless, hopeless expendi- ture. Mr. GOLDWATER. In answer to that question, I think that we can reach an agreement that if we do not show a military ability to resist the enemy within the next 12 months, we can well say that is all we are going to do. Mr. PROXMIRE. Does not the Senator agree that the South Vietnamese have done well enough, that all the indications are, on the basis of the testimony of the Secretary of Defense, of Admiral Moorer and others, that they are doing extremely well? They have taken more hamlets than the North Vietnamese have taken. Their position does seem to be strong, and we are providing, with this sub- stantial amount, far more than the other side is providing; eight times as much. Mr. GOLDWATER. As I mentioned earlier, the eight times figure can be a misleading one because of the difference in their currency and ours, and the dif- ference in the costs of building our equipment and their equipment. But I would accept the eight times figures. However, I believe that in hardware, they are probably getting as much, if not a little more. I related, when I think the Senator was talking to someone else, the fact that they have built roads, they have built a petroleum line. They have built airbases that will accommodate Mig's. We have not given them anything, really, in modern aircraft. Their best aircraft that they use from us is the A-37, which, at its best, is a very light- weight, easily destroyed attack fighter, while they are going up against Mig's, that even we were not up against in large numbers during our stay in that country. I think the test, to answer the Sena- tor's question, will be what happens in this present engagement. If the South Vietnamese can resist it, then I think we should take another look at it next year. If they cannot resist it, then I certainly would not favor throwing more money into it. Mr. PROXMIRE. I hope we can come to some kind of conclusion on this, be- cause for so many years, as I say, this has been going on, year after year. We say, "We shall just continue it another year, take a harder look at it next time." In the midst of tremendous inflation, it is a great burden on the American people, and with the enormous contri- bution we have made to South Vietnam, compared to anything from the outside, it seems to me that this is a limited, modest request which I make of the Senator. Mr. PASTORE. Will the Senator yield to me? Mr. PROXMIRE. I am happy to yield to the Senator from Rhode Island. Mr. PASTORE. Mr. President, the thing that bothers me is not so much the money that is involved. The thing that bothers me is the principle that is involved. I can remember only too well that cold day in January of 1961 when President Kennedy stood before the world and said: Let the world know, whether they bear us ill will or good will, that we shall endure any hard,ship, make any sacrifice, support any friend, resist any foe, in the cause of freedom. That is what America believed. That is what America is doing. That is why we became involved in Vietnam. That is why we became involved in South Korea. Now what do we find, in 1974? I picked up a newspaper last week and read that a Catholic bishop, a Protestant minister, and several governmental officials in South Vietnam, by the process of a secret martial tribunal, had been put in jail because they were enemies of the state. Why were they enemies of the state? Because they disagreed with the prin- ciples of the man in power. Is that what we are spending Ameri- can taxpayers' money for? Take South Vietnam. We have heard about the tiger cages. We have heard about political adversaries being put in prison. I ask, what are we spending our money for? What is this all about? We have spent, up to today, $146 bil- lion in Vietnam. We have suffered more than 45,000 dead, 303,000 wounded, 2,600 paraplegics?young boys today in Amer- ica who are in wheelchairs, who cannot even light their own cigarettes. We have 13,000 missing in action. What price must we pay for this in- dependence and this freedom that we are talking about, when there is no free- dom in those countries? I think the time has come when we have to reassess ourselves and find out where we are going. And I say to my friends here in the Senate, yes, maybe we cannot bring an abrupt closing to this charade, to this imposition on the American taxpayers, but something needs to be done. I agree with the Sen- ator from Vermont (Mr. AIKEN) , who a long time ago said that all we have to do is declare that we have served our purpose and we are getting out of South Vietnam. We would have been well off if we had done it at that time. Today we are having problems. We are being told by the President of the United States that we have got to say no?no to housing for the elderly, no to aid for elementary schools, no to all of the things that we need here in America, because we have not got the money. Here we are, meeting here today: We are asked to shell out almost another billion dollars to South Vietnam. And let me tell you something: With the evolution of time and the vicissitudes that are involved, unless they stand up and fight for their own freedom, and stop the corruption in South Vietnam which we have witnessed up to now, we are going to be in a bad way. We are in a bad way. Let me say very frankly, I believe what we do for Ameri- cans will never bankrupt this Nation, but the way we are spending our money abroad will bring us to bankruptcy, and the sooner we begin to realize that, the better off we are going to be. Mr. KENNEDY. Mr. President, I intend to support the amendment of the dis- tinguished Senator from Wisconsin, and I have asked to be a cosponsor of the amendment. I know the arguments that have been made here earlier in the afternoon, and during the recent past. We have heard talk about the buildup, the increased ac- tivities of the North Vietnamese in the South, the concentrations of military equipment, and the threat of military expansion by the North Vietnamese in contradiction to the agreements that were made in Paris. But I am also mind- ful of the testimony that was given by Maj. Gen. William Caldwell before the Armed Services Committee earlier this year, when he testified that outside some so-called landgrabs in the immediate post-cease-fire period, the overall control of territory has not changed adversely to the South Vietnamese; and in fact he in- dicated that the Saigon forces have in- creased their territorial and population control since the time of the cease-fire. He also testified earlier in the year, when questioned about it, that the dan- ger of a potential offensive by the North Vietnamese was also no longer considered an immediate threat. But there is another factor, Mr. Presi- dent. I ask the proponent of the amend- ment whether he is aware of the state- Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 S 15398 Approved For ReltrAMMAElikoPRir0s3E8NORAOTOE0700060018-4 August 20, 1974 ment that was made by the American Ambassador in Saigon when he was asked about what shmild be the eon- tribution of aid and asisistance by the United States, in its sport of South Vietnam, as compared with the con- tributions that would I* made by the Chinese and the Soviet innion to North Vietnam. He indicated, as showd in a cable that we placed in the proceedtags of the Sub- committee on Refugees, that he "wOUld completely agree that our intention all along was to balance theatid being giVen by the Soviet Union and the People's Republic of China to linnth Vietnam." And he "thought we should give material and training?to Saigon?to match that being given to North Vietnam by the Soviets and the Chinese." Mr. President, when you consider what the whole direction, what the trend has been over the period of recent years?certainly in the last 3 years?you find, according to Defense Intelligence Agency estimates, that there has been a dramatic decline in military assistance being provided North Vietnam by the Soviet Union as well as by the Chinese, and that there has been a slight reduc- tion in economic aid as well. As a matter of fact, the Defense In- telligence Agency estimates that in 1973 there was eight times as -much military aid to Indochina provided by the United States as that provided by the U.S.S.R. and China. And any review of the last year, as I understand recant estimates? even though the figures have not been developed comprehensively for the whole year?would show that this trend has continued. Reduction in military as- sistance by the Soviet Unbsn and reduc- tion in military assistance by the People's Republic of China, but an increase in total military assistance by the United States to South Vietnam. It makes no sense. I want to commend the Appropriations Committee for the job that they haVe done in many different areas of the re- quest for appropriations. Itio feel that in this area, and in the few others which I Intend to talk about as this debate con- tinues, it makes very little sense for the United States to be asked for an in- crease in money, especiallY for military assistance to South Vietnatn. Mr. PASTORE. Mr. President, will the Senator yield? Mr. KENNEDY. I yield. Mr. PASTORE. Does the senator know that in Paris they agreed that insofar as the surveillance commission was con- cerned, the North Vietnamese, the Viet- cong, and South Vietnaixt would each make a contribution to the commission? The North Vietnamese hate not paid a dime, and the Vietcong have not paid a dime. And what do you think our State Department has done? They have tsked us to pay the whole bill, How stupid can we become? This is an -,naposition upon the American taxpayer. All I am saying is that before we stop building homes for the elderly in our own country, let us cut out some of this commitment abroad. Mr. PROXMIRE. Mr. President, will the Senator yield very briefly on that point? Mr. KENNEDY. I yield. Mr. PROXMIRE. Which I think is an excellent point, that is, comparing our aid to South Vietnam with the aid by the Soviet Union and the People's Republic of China to North Vietnam. The Sena- tor's figures were the same figurer; that I have seen from the Defense Intelli- genee Agency. In addition, estimates of the aid by the Soviet Union and the Peo- ple'a Republic of China were said to be $290 million for calendar 1973, compared to $2.3 billion in military aid by the United States to South Vietnam. Furthermore, while the Chinese and Russian arms shipments were reduced by more than one-half from 1972 to 1973, we increased our shipments by $286 mil- lion in the same 1-year period. So if there ever has been a case?a clear, documented case on the basis of the only record we have, from the De- fense Intelligence Agency?foe us to make a reduction, it is here. And, as I say, I am not asking to elim- inate this military assistance to South Vietnam. I am asking tO make a reduc- tion back to the level that the Senate recommended last year. . Mr. KENNEDY. I think this amend- ment makes sense. The American Ambassador in Saigon has indicated that we, as a matter of policy, ought to keep our aid in some kind of balance. He did not indicate how long this balance should go on, and I think the Senator is quite correct in asking the question about how long_ we should ex- pect the American taxpayer to continue to pay for what is a very substantial :mili- tary assistance program. But, be that as it may, we have seen the dramatic decrease by these who are supplying the North Vietnamese, while we increase or maintain the levels of our suppOrt to South Vietnam. Fieally, I would say this, Mr: President. When we compare this kind of military assistance against our humanitarian as- sistance to South Vietnam, we find it is far less. Obviously, we have an ongoing and continuing responsibility, I think, in the name of humanitarianism, to provide for the needs of the million-odd orphans In South Vietnam, the thousands of young children who have lost arms and legs?and I believe that responsibility even extends to a child who happens to have lived north of the parallel and had his legs blown off. We have these kinds of responsibilities which aid based upon our humanitarian concern for individuals and people. But we have had very little leadership from our Government in that area. We have had very little diplomatic initia- tives to support these programs, or in- crease our funding for them. We do not even hear voices saying, "We are going to be able to do the humanitarian job and provide that ea- sistance if we are able to provide this level of military assistance as well." We find a woeful lack of diplomatic initia- elves or governmental concern in trying to end the fighting for which we bear a very heavy reepeonsibilitY. It always amazes me to find that the great majority of Americans believe this war is over and ended, simply because we are not shedding American blood. But the war is continuing, and we have an ongoing responsibility to bring that con- flict to an end, and to help the victims of that war. Yet we have seen shameful little in new initiatiVes in this area,, despite the brilliance of our diplomacy in other areas?and I have commended the Secretary of State for his actions in the Middle East and in other areas of the world. But the policy of d?nte and negotiation ought to be renewed le Indo- china, instead of endless support of end- less war. But, nonetheless, the war continues. And it seems to me that for all of these reasons the amendment of the Senator from Wisconsin (Mr. Peoxsente) seauld be agreed to. All it is saying is that we should con- tinue military assistance to South Viet- nam?which is very substantial--at the same rate as last year, and no more. I think this is a responsible amendment. I wish we had been able to win the votes to see some gradual modification and some reduction in-our militery aid' program. I think that would have been responsible indeed. But, it seems to me, this amendment is the bare minimum, and it certainly should be supPoited by the majority of the Members of the Sen- ate who are, I think, concerned about peace in that part of the world an cl. who have a sense of priority in terms of humanitarian needs, and who ars con- cerned about achieving a change Ii atti- tude by the Government of South Viet- nam in trying to reach some negotiated settlement to end, once and for all, the conflict in Vietnam. Mr. SYlVIINGTON. Mr. President, I support the amendment of the distin- guished Senator from Wisconsin. In 1961, on the famous trip oi Gen. Maxwell Taylor and Mr. Walt Rostow, I went to Vietnam; in 1965 I went aU over the country; in 1966 I went all over the country from top to bottom: E nd in 1967 I went all over the country. I came back and told President ,John- son that, in my opinion, every penny that we spent from there on out was wasted money. In 1972 I went back and saw ncthing to persuade me that I had not been nein in 1967. I can remember making an ad- dress in Kansas City in the fall of 1967 and, afterward invited questions from the audience. A young man asked, "Ave you saying that 13,500 of our best /Imes - leans have died in vain?" I said, "Well, my answer to you would be by putting another question. Would you rather kill 13,500 more than admit that you made a mistake?" Mr. President, that figure of the number of men who were killed became 54,000, four times the number who had died up until the fall of 1967. I told the President at that time that I felt all the money that we put into the; country would be wasted because, with - Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005/06/09i CIA-RDP755100260R000700060018-4 s 15399 *August 20, 1974, CONGRESSIONAL RECORD -- SEN A out our heavy military support, as well as our political influence, the govern- ment in Saigon could not last. I have never changed by mind since 1967. I have consistently supportedT all those who worked for a reduction in military aid to this country. It is for those reasons that I am glad to support the Proxmire amendment. Mr. McCLELLAN. I yield to the Sen- ator from South Carolina (Mr. Timm- MONO) . Mr. THURMOND. Mr. President, I rise in opposition to the Proxmire amend- ment. The administration originally favored a budget for South Vietnam of $1.6 bil- lion. But this, I believe, was reduced to $1.45 billion. The House authorized $1.126 billion. The Senate authorized $900 million. The conference between the Senate and the House agreed upon $1 billion. Now there was appropriated by the House $700 million. The Senate Appropriations Committee also authorized the same amount as the House, $700 million. Mr. President, any further reduction will seriously cripple the South Viet- namese capability to defend themselves and will be a violation of the clear under- standings they had from us at the time of the cease-fire. A level of funding of less than $700 million would be a drastic cut in support. At fiscal year 1974 levels of enemy activ- ity, a program of $550 million as proposed In this amendment, will probably cause the Government of South Vietnam to abandon large segments of the country and would weaken the prospects for a negotiated political settlement. The weaknesses such a reduction would cause will be fully recognized by Hanoi. This level invites increased, not reduced, hostilities. A ceiling of $700 million or less would mean: 0. & M. funds would have to be used primarily to support only selected opera- tional requirements. Many critical opera- tional requirements could not be sup- ported. Next, POL will be reduced more than 25 percent from the planned level. There will be more than a 20-percent reduction In current line-haul transportation ca- pacity?essential to a viable defensive posture. Next, communications will be critically weakened. Command and control will decay from shortages. Next, ground ammunition will be funded at less than 50 to 60 percent of the Defense-recommended program of $401 million. There would be a dangerous drawdown of incountry stocks. Ammuni- tion provided at this level will not begin to sustain the fiscal year 1974 level of combat?a level dicated by Hanoi. Am- munition restrictions already in effect have begun to affect the morale of the South Vietnamese soldier and have caused a definite increase in casualties. Now, Mr. President, many people who did not favor the war at all in Vietnam and have favored a smaller amount to help South Vietnam since the war ended have begun to reappraise the situation and take another view of it. For instance, the Washington Post? and everyone knows that paper's position on this matter?of August 11, 1974, con- tains an editorial entitled "Aid For Viet- nam." Even the Washington Post has come out for adequate aid to South Viet- nam. I congratulate this paper upon its change in attitude in this matter. I quote a paragraph here from the editorial: We now conclude that it is wrong to try to make Saigon alone observe the agreement, to its political detriment, when Hanoi is under no similar pressure to observe its side of the agreement. Unilateral pressure, fur- thermore, preclude's a new American ap- proach to Moscow and Peking?an approach we believe should be made?to reduce fur- ther all outsiders' roles, especially as arms suppliers. Another paragraph in the editorial reads: The only correct basis for phrasing out aid, we now believe, is a determination that it no longer is important to the United States what happens in South Vietnam, A powerful case for this can be made: the United States has invested an immense amount of blood, treasure and prestige in Vietnam, won that country the opportunity to fend for itself, and now has its own good reason to turn aside. But if this determination is to be made, we Americans owe to ourselves?and to the Vietnamese and to others elsewhere who rely upon us?to make it openly. To pledge fidelity but to reduce our support progres- sively or even precipitately is to undermine both interest and honor. If the Oongress in its fatigue or wisdom?whatever the mix?is to pare aid this year and to threaten to cut even more next year, it should have the cour- age to announce that it no longer considers the outcome in Vietnam as a matter of American consequence. Now, Mr. President, do we consider the outcome in South Vietnam a matter of serious consequence? I should think we would. I should think it is important that we want to see South Vietnam remain free. We know if South Vietnam goes down the drain, Cambodia, Laos, maybe Thailand, and other coun- tries in that part of the world will go down the drain. The whole of Southeast Asia will probably go down the drain. That will place this country at a tremen- dous handicap in that part of the world. We know it is necessary for South Vietnam to have aid if it is to deter Com- munist aggression, and if we are going to give meaning to the sacrifices made in South Vietnam, the more than 55,000 men who died over there, the more than 300,000 wounded, casualties, over there, and the billions of dollars we spent in South Vietnam. Mr. President, we have a policy there. Are we going to live up to it? Are we going to back down from it? Are we go- ing to step aside and say to the world that although we promised Vietnam a tank for a tank and a gun for a gun that now we will not deliver? Well, we cannot deliver unless we pro- vide for the aid that is needed. $700 mil- lion is bare bones; it is a bare minimum. _I would remind you again that the administration feels that twice that much is necessary. I would remind you that the conference committee of the Senate Armed Services and the House Armed Services, the men who have studied this matter in depth in confer- ence, agreed on a billion dollars. Now, the Senate Appropriations Com- mittee cut it to $700 million, but the amendment of the distinguished Sen- ator from Wisconsin would now reduce it to $550 million, $150 million less than the Senate Appropriations Committee agreed upon. Mr. President, it would be a great mis- take, in my judgment, if we do not pro- vide a minimum, a minimum, of $700 million for aid to South Vietnam. I hope that our colleagues will think about this matter and not allow Vietnam to go down the drain. I cannot see how anybody could favor this amendment if they want to see South Vietnam remain free. Certainly it is to the advantage of the Free World that South Vietnam re- main free, it is? to the advantage of the United States that South Vietnam re- main free, and from our own selfish in- terests, our oWn national interests, we ought to favor SOuth Vietnam remaining free. Now, there is another paragraph in this editorial that I want to quote from: We think that Americans would not like to live in a world where a small nation that had strong reason to rely on American stead- fastness had been let down. Quoting again from another para- graph: We are convinced, nonetheless, that the principle of American steadfastness deserves to be honored as best we can. Mr. President, does the honor of Amer- ica mean anything, does our honor, our commitment, mean anything, does our promise to South Vietnam mean any- thing? Are we going to live up to it? We can- not live up to it if we cut this appropria- tion bill further and I believe that the people of this country want to see us live up to our commitment and help keep South Vietnam free. If South Vietnam goes down the drain the people lose freedom there, and all the fighting in South Vietnam has been in vain. How do the mothers who have lost their sons over there feel about this? How do those 300,000 injured, 300,000 casualties, feel about it? Do they want anything done? Do they want to feel that their sons lost their lives in vain? I should think not. Mr. President, I want to say that the President of the United States is opposed to this amendment I am informed, I say to you that the Secretary of State is opposed to this amendment I am in- formed, I say to you that the Secretary of Defense is opposed to this amendment I am informed. Mr. President, when the conference committee of the Senate Armed Services and the House Armed Services, who are supposed to be experts in this field, go along unanimously and favor $1 billion for this cause, and when your President and your Secretary of State and your Secretary of Defense all come along and say that they favor a reasonable amount and oppose this amendment, then I think it is time for the Senate, for my col- leagues here, to hearken and to think and appraise this situation and not allow South Vietnam to go down the drain. These brave people have fought and Approved For Release 2005/06/09: CIA-RDP75B00380R000700060018-4 S 15400 Approved For Reltmanr6LQ9 ? CIA-RDP75600380R000700060018-4 MONA', RECORD SENATE August 20, la ;; they have suffered, probably like no peo- ple in any other country. They belong to the free world. Do we want to see them put under the heel of the Commimist dictator? Do we want Oa- see them lose their right to freedom? I hope that we rend not permit that. Mr. President, Secretary Kissinger, in a letter that he wrote tor the Honorable JOHN C. STENNIS, Chairman of the Calla- inittee on Armed Servicei of the Senate, had this to say: With regard to South Vietnam, I have a very personal sense of obligation to do every- thing I can to make go ct on our moral cmmitment to assist that station in its !sur- vival as an independent state. The adminis- tration's request for $1.6 billion in military assistance was made beast= of our conic- tion that the survival of South Vietnam is indispensable? Mr. President, did we catch that, that the survival of South Vietnam is indis- Pensable7 That is what the head of the Department of State says? to the creation of an enduring structure of peace in Southeast Asia. Without our mili- tary assistance. south Vietnam's ability to resist Communist military pressures, fueled by an extensive flow of arnis and supplies from, the North, would be critically endan- gered. In other words, it sirniffy means that South Vietnam cannot servive if we do not give them adequate assistance. I hope, Mr. President, that my col- leagues will think over this matter. I hope that they will reach a conclusion that we cannot let South Vietnam go down the drain. I hope they will ap- preciate the hard fighting and the suf- fering that these people have done to maintain their freedom and not now throw up our hands and say to the World, "We no longer have any liaterest In the freedom of the people thitere. America is no longer interested In thid part of the world. It can just go, go to the winds." Mr. President, I do not believe that is the feeling of the people pf America._ I know it is not in the best Interest of the people of America as well as the peo of Vietnam. I hope that the Senate will s to kill this amendment. FORMER SENATOR KARL muNta Mr. cCLELLAN. Mr. President, Diet Friday, ust 17, 1974, Zeal Mundt, former Se and Representative from South Dakota, a dear friend, passed away after a ion fruitful career of service to his comm State, and his country. He had a sch teacher, public schools _ istrat college professor, and official i ernment of South Dakota before elected to the 76th Congress. He s aye terms in the House of Repi Lives and three full terms in the ? ate. The character of a man, howev , can- aot be fully gauged by the-en eration of the offices which he has held lthough hey do indicate a conside measure of public esteem. Karl M as I knew inni in the Senate, was a an of high deals and great integr a man of eision and noble purpos a man of true (indication to the inter ts Of the people with whom he identified and whom he epresented so ably. Karl Mundt's sphere of interests was more extensive than most of the public was aware. Although his accomplish- ments In the fields of conservation fiscal responsibility, and sound, government operations were nubile knowledge, his ac- tivities in the realm of foreign relations were not so well known. One of his great dreams was the establishment of a Free- dom Academy which would prepare young students as potential diplomats to disseminate the philosophy of peace in then' assignments to foreign countries. He was not critical of the service schools which trained young men in the skills and science of defense. He realized this was necessary for the protection of our country. But he felt more emphasis should be placed on diplomatic training of our young people to insure peaceful coexistence with other peoples or the world. One of his most cherished appoint- ments was as a representative to NA During the latter period of his SE- with this organization, he became e man of the Educational and Culture - change Committee, a post whic de- manded much of his rime and e Ties. It was shortly after his return am a meeting of this committee in se/s? in Oetober of 1969?that he w stricken by Use illness from which h ver fully recovered. Senator Mundt and I ed together on the Government Ope ens Commit- tee. While I was chair of the com- mittee, he was for mar ears the rank- ing minority member. e also served to- gether for many y on the Senate Permanent Subco ttee on Investiga- tions?I as chai and he as ranking minority member.: ring our tenure on this subcommit we conducted more Investigations d held more hearings and made m reports to the Senate than possibly ave ever been conducted, held, and by any other investigat- ing commi in the history of the Con- gress. Our ervice together on the Sen- ate AP betimes Comniittee was an- other mining and vital interest whichshared for some 17 years. In performance cif his duties, both in co ttee and in the Senate Cham- ber,as able, vigorous, dedicated, in- di s, and effective. His friendship was a t to be treasured by those fortunate ugh to be so blessed. I consider my- among those thus designated, and all keep his regard fait me in cherished mernbrance. In this context and in awareness of the lasting effect Karl Mundt and his works and have on those living after him. I recall the words of an unknown poet as he spoke of greatness: an is as great as the dreams he dreams: as the love he bears; e values he redeems, he sha.-es, the thoughts he As gr And the A man is as As the worth he h As the, fountains at And the insight he has gain man is as great as the tru As great as the help he elves; ,-'.s great as the destiny he s seks, As great as the life he lives. I believe these words are as applicable to Karl Mundt as any I have aver read. :le was a man?statesnian and Arneri- ined; drinks, canenwhoni history our Nation's great. Mrs. McClellan ex sympathy along wit Mundt. We share wi ator's devoted staff loss in the pass colleague, d smartie her deepest to Mrs. er and tie Sen- e of personal a dear friend and ORDER OURNMENT UNTIL 9: ? TOMORROW Mr. M IELD. Mr, President, I ask unanimo consent that when tin Sen- ate corn s its business today, it stand in adi ent until 9:30 A.M. teener- row. T PRESIDING OrhICER. Without obi on, it is so ordered. DER OF BUSINESS TOMO:RROW Mr. MANSFIELD. Mr. President, at 10 a.m. debate on the pending amend- ment will occur, the time to be equally divided between the distinguished Sena- tor from Arkansas, the manager of the bill, Mr. MCCLELLAN, and the disinguished Senator from Wisconsin, the' sponsorof the amendment, Mr. PROXIVIIRE, ant the vote to occur at the how' of 11. The PRESIDING OFFICER. Is there objection? The Chair hears none, and it is so ordered. ORDER FOR THE RECOGNITION OF SENATOR BARTLETT TOMORROW Mr. ROBERT C. Byar). Mr. Preildent. I ask unanimous consent that en to- morrow, after the two leaders or their designees have been recognized under the standing order, Mr. BARTLETT be rec- ognized for not to exceed 15 minutes. The PRESIDING OFFICER. W theist objection, it is so otelered, ORDER FOR CONSIDERATION OF DEFENSE .ArteROPRIATION MIL TOMORROW Mr. ROBERT C. BYRD. Mr. President, I ask unanimous consent that at the hour of 10 o'clock tomorrow morning the Senate resume consideration of the Defense appropriation bill. The PRESIDING OFFICER. Withoin objection, it is so ordered. Mr. McCLEOLAN. We have 1 hoer, et; I recall, equally divided in time. Mr. ROBERT C. BYRD. That correct. Mr. President, t_suggest the absence of a quorum. The PRESFDING OFFICER. The cle k will call the roll. The assistant legislative clerk pro- ceeded to call the roll. ROB I' C. BYRD. Mr. Presi ient, I ask unanimous consent that the order for the quorum call be rescinded The PRESIDING Oteeatee.at. Without objection, it is so ordered. ORDER FOR PERIOD FOR TRANSAC TION OF ROUTINE MORNING BUSINESS TOMORROW Mr. ROBERT C. BYRD. Mr. President, I ask unanimous cement that aftex the Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Augurt 21, 19 7.4 p roved FOCERGRESSICESSERISEGM-EtDPME5114128D R00070006001 8-4 The PRESIDING OFFICER.. Is there objection? The Chair hears none, and It is so ordered. DEPARTMENT OF DEFENSE APPRO- PRIATION ACT, 19'75 The Senate continued with the con- sideration of the bill (H.R. 16243) mak- ing appropriations for the Department of Defense for the fiscal year ending June 30, 1975, and for other purposes. AMENDMENT NO. 1855 _ Mr. KENNEDY. Mr. President, I call up rny amendment No. 1835. The PRESIDING Or`FICER. The amendment will be stated. The assistant legislative clerk pro- ceeded to read the amendment. Mr. KENNEDY. Mr. President, I ask tmanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFIchat. Without objection, it is so ordered. fore these weapons could be turned over to other countries. In fact, when the General Accounting Office reported its findings to the Senate Foreign Relations Committee last month, the Defense Department objected to the GAO's use of the word "authorization" as being required prior to the transfer of stockpiled items to these Asian allies. The Department argued instead that only "consultation" with the Congress was required. I find this appropriation objectionable on two counts. First, it could mean that congressionally established ceilings?on aid to Vietnam, for example?could be- come meaningless if the Defense Depart- ment can circumvent those ceilings by comingling U.S. and allied reserve stock- piles, and thereby escape congressional control over their distribution. Second, it means that we are being asked?at a time of difficult economic circum- stances?to boost our own Defense budg- et for the purpose of meeting the future Mr. KENNEDY'S amendment (No. 1835) military_ needs of South Vietnam, South is as follows: /Korea, and Thailand. Clearly, this major On page '50, line 21, insert a new section / item should be considered as part of the as follows: k foreign aid request, not as a disguised SEC. .(a) No funds appropriated for the use of the Department of Defense by this or account in the DOD appropriations bill. any other Act in fiscal year 1975 may be used for the purpose of stockpiling war materials or equipment for use by any Asian country except to the extent authorized by title VII of this Act or by the Foreign Assistance Act of 1961 or the Foreign Military Sales Act. (b) Any materials or equipment stock- piled by the Department of Defense on the date of enactment of this Act for future use by any Asian country may not be transferred to any such country except to the extent such transfer is specifically authorized by law. Mr. KENNEDY. Mr. President, this is an amendment that deals with the war reserve stocks for allies. The amendment was initially accepted by the Senate last June, as part of the Defense Authoriza- tion bill, but it was dropped in confer- ence because of the opposition of the House conferees. Hopefully, they will have a different attitude this time in conference. Specifically, Mr. President, this amendment will prohibit $529 million from being used for war reservd stocks for allies. This ambiguous account is re- portedly used to obtain weapons and -ammunition on a contingent basis for the support of forces in the event of a future war involving South Vietnam, South Korea, or Thailand. This new ftinding account, quietly built up in the last 2 fiscal years, has not gone through the authorizing com- mittees of the Congress. It is a back-door means of bolstering increased procure-. merits by the Defense Department. When the disguised account was dis- covered by Senator FOLDRIGHT last spring, the Defense Department ex- Piained it as being used for supporting these three allies?South Vietnam, South Korea, and Thailand. At the same time, the Defense Department stated that the equipment remained in stock- piles controlled by the United States. However, the Department would not state that, inthe event of hostilities, con- gressional authorization was required be- The Defense Department now argues that much of the new equipment pur- chased by this account goes directly to the U.S. active military forces and the U.S. Reserves. If that is the purpose of these funds, then they should not be cate- gorized as "war reserve stocks for allies." Moreover, the GAO has informed me that there is a circle at work: Even if some of these weapons go to U.S. troops in the field, the weapons that are re- placed go to the Reserves and/or to the stockpile. Then, once in the stockpile, there is a clear tendency for the supplies to be declared excess and turned over to South Vietnam, South Korea, and Thai- land. Thus, the will of Congress can be thwarted by the backdoor. The process is misleading in another way. For example, in fiscal year 1973, the Defense Department listed $24,3 million In excess stocks as going to South Viet- nam, $6.4 million as going to Thailand, and $8.3 million as going to South Korea. But those figures are what the DOD calls actual value, not the acquisition cost of the supplies. The GAO found that the Department of Defense was listing those weapons at 8.9 percent of their acquisi- tion cost. Thus, the acquisition of wea- pons declared excess and turned over to those countries in fiscal year 1973 was approximately $390 million. In fiscal year 1974, the acquisition cost of equipment declared excess and turned over to those three countries was approximately $620 million. And in fiscal year 1975, the De- fense Department plans, according to the GAO, to turn over to those three countries weapons and equipment whose acquisition cost is approximately $738 million. I see no reason for the U.S. Congress to approve $529 million in an account listed as was reserves for allies and des- ignated for South Vietnam, South Korea, and Thailand, at the same time that the Department of Defense contemplates turning over excess items costing an estimated $738 million to those countries. S 15553 If there are stockpile needs that are not being met for U.S. active duty forces, let the Defense Department ask specifi- cally for that equipment as it usually does In its normal procurement requests. If this is a legitimate foreign military aid request, then let it be properly con- sidered under the foreign aid bill. Mr. President, it is also important to note what this amendment does not do: First, it does not affect in any way the Department's service-funded program of aid to South Vietnam. The committee has recommended $700 million for that fund. Second, it does not affect in any way the level of assistance which may even- tually be approved by the Congress under the authority of the Foreign Assistance Act or the Foreign Military Sales Act? $300 million has been requested for South Korea and Thailand under those programs. This amendment is unrelated to congressional approval or rejection of those requests. Finally this amendment does not affect the approximately half-billion dollars worth of stocks which have already been set aside for these Asian allies in the past 2 fiscal years. But it does put a halt to adding another half-billion dollars worth of weapons to that stockpile this year, until the purposes of the stockpile are more clearly explained to Congress, and the implications of such foreign aid have been properly deliberated. Mr. President, I have grave doubts whether such foreign aid should be au- thorized at all. Certainly, it should not be done without the consent of Con- gress. But primarily, I wish to stress that such foreign aid does not belong in this bill. This is a budget bill to provide funds for the operation and maintenance of the Department of Defense. Foreign as- sistance appropriations should not be mixed with appropriations for the U.S. armed services. The only foreign assistance fund ap- propriated along with funds for the serv- ices in this bill is the assistance for South Vietnam. All other foreign assistance is authorized in the Foreign Aid bill, under the military assistance program. This is true even of the $2.2 billion in military assistance authorized for Israel last year. The Armed Services Committee report on the Defense authorization bill strongly emphasizes the same point: As it did last year, the Committee is again recommending reductions of the items in- cluded for war reserves for allies. The Com- mittee does not agree that these Items should be procured for storage for allies in a title that is intended for the procurement of items for U.S. forces. In this year of the war powers bill and economic belt-tightening, Congress can- not avoid its responsibility to guarantee that such programs are fully justified In terms of foreign assistance, and that there are proper controls over transfer- ral of these weapons. We have had enough of Presidential wars. Mr. President, I ask unanimous con- Sent that the recent study prepared on this subject by the General Accounting Office may be printed in the RECORD at this point. There being no objection, ?the study Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 S 15554 -A ugust 27, 1074. Approved For ReownwpfeituclAttraibla(10A9pA3M700060018 was Ordered to be printed in the RECORD, RS follows: DEPARTMENT OF DEFENSE STOCKPILING OF WAR RESERVE MATERIALS FOR USE BY UNWED STATES ALLIES COMPTROLLER GENERAL OF THE UNITED STATES, Washington, D.C. Hon. J. W. FULBR/GHT, Chairman, Committee on Foreign Relations, U.S. Senate. DEAR MR. CHAIRMAN: This report is in re- sponse to a May 6, 1974, letter requesting in- formation on the stockpiling of war reserve materials by the Department of Defense (DOD) for possible future use by Asian allies. Our study concentrated on the scope of the program, the statutory authority being relied on by DOD for stockpiling these materials, and the authority under which they could be turned over to any of the allied forces. Our work was performed at DOD in Washington, D.C. Because of the short time allowed to meet the Committee's needs, we have been unable to verify the information provided by DOD or to obtain a legal analysik of the propriety of the program. However, we have included our views and interpretations and believe this report will be helpful during the up- coming foreign assistance authorization hearings. We have not submited the report to DOD for its official position; however, we have dis- cussed the observations with DOD officials and have considered their views. SCOPE OF THE PILOGRAM According to a DOD directive, the total quantity of a defense itent authorized for peacetime acquisition includes the quantity estimated (1) to equip and sustain U.S.- approved force levels in peacetime and in wartime for periods specified in planning documents, (2) to equip and sustain allied forces by satisfying approved requirements of the Military Assistance Program, the ap- proved requirements of the Foreign Military Sales Program, and approved wartime re- quirements for those allies specified in cur- rent program planning documents, and (3) to provide support for other U.S. Government departments and agencies. The term, used to describe the above procurement requirement Is approved force acquisition objective. This objective includes a quantity to be stockpiled abroad and in the United States for future national emergencies?war re- serves. These reserves are intended to sustain operations until production can be expanded to match combat consumption. DOD believes that the war reserves are es- sential to rapidly deployable combat forces so that the United States has the future capability to respond and be supported in combat for whatever period the national in- terest requires. We determined from DOD planning and programing documents that the approved force levels used to plan future requirements included the estimated number of allied forces that might need logistics support in future Asian hostilities. Estimated allied re- quirements add to but do not replace U.S. requirements. DOD stocks of munitions and equipment have traditionally been available for transfer to allies pursuant to appropriate military as- sistance legislation, as well as for use by U.S. Forces. Specific identification of war re- serve stocks for possible future transfer to allies in DOD budget documentation plan- ning begun with the development of the fis- cal year 1972 Defense program. Some avail- able assets were allocated for this purpose in fiscal year 1973. However, funds were not re- quested in budget submissions to the Con- gress until fiscal year 1974. Items held in reserve that are planned for potential allied use are not segregated from other reserve stocks, and almost all the same kinds of items are also required as war re- serves for U.S. Forces. If necessary, tee war reserves for allied forces could be used to support U.S. Forces. DOD considers that war reserve stocks for allies are not yet committed or authorized for transfer to any nation. They are for "al- lies" in theory only and, according to DOD officials, will remain U.S. property until the President, with appropriate congressional consultation determines that such stocks shonld be released to a specific ally. DOD officials said that the portion of the total war reserve stocks designated for future al- lied use is based on an arbitrary decision and it is the total (United States and allied) war reserve requirement that has validity. DOD planners for fiscal year 1973 allocated $23 million of its reserve assets toward the total allied requirement; for fiscal year 1974, $494 million was allocated. For fiscal year 1975, $529 million of the total procurement request has been proposed for application toward allied requirements. Some of each of the following types of items are proposed to be procured from the fiscal year 1975 funds. Army Small arms ammunition. Artillery ammunition. Tank recovery vehicles., Portable radar sets.1 Minor miscellaneous terns. Spares and repair parts. Mortar ammunition. Tanks., Machine guns. Rocket launchers., Landing boats.1 Air Force Air-to-ground munitions. Tanks, racks, adapters, and pylons. LEGAL AUTHORITY CITED BY DOD FOR ETC CKPIL- ING AND TRANSFERRING STOCKS We were told by officials of the Office of General Counsel, DOD, that DOD's legal au- thority to both stockpfle war reserve assets and transfer these assets to allies is con- tained in: The annual DOD authorization and appro- priation acts; The Foreign Assistance Act of 11.,61, as amended; and The Foreign Military Sales Act, as amended. No specific sections of these acts were cited. AUTHORITY FOR STOCKPILING AND TRANSFERRING ST0CK5-,--GA0 VIEWS Time did not permit us to perform a search for all possible means available to stockpile war reserves and to transfer these stocks. However, our brief look at the legis- lation mentioned by DOD disclosed that the general authority to procure U.S. defense material is contained in the annual DOD authorization and appropriation acts. This authority does not pro vide for the procure- ment of war reserves but rather for specific defense items (for example, Procurement of Ammunition, Army). Nevertheless, through backup data submitted with appropsiation requests and the testimony of witnesses, the congressional committees responsine for DOI? authorizations and appropriations were aware of DOD's program of stockpiling for All new procurement of these items will go directly to U.S. Army active and reserve units. The older pieces of equipment dis- placed by the new procurement will go into the war reserve stockpile that could be used to replace U.S. or (with proper authoriza- tion) allied combat losses in some future conflict. Therefore, this procuremert, al- thongh labeled as allied reserve, modernizes the U.S. Army Force structure while increas- ing the total assets available as war reserves. possible future allied use. Thus, the legis- lative history of the anneal DOD at them ins- tion and appropriation acts suggests that the committees intended to authorize the: stock- piling. However, the congressional committees re- sponsible for authorizing military grant and sales assistance to foreign allies apparently were not aware of the stockpiling program. We were informed that the Senate Foreign Relations Committee was unaware of the planned stockpiling, even though ransfers to allies (as well as the transfer of any de- fense articles to foreign governments, except Vietnam) would go through programs under the jurisdiction of the Committee. Authority to transfer procured defense stocks is separate from the authority to stockpile war reserves. Authorizatio. is relat- ing to transfers are contained in various sec- tions of the Foreign Assistance Act of 1961, as amended; the Foreign Military Sales Act, as amended; the Foreign Military Sales Act Amendments, 1971, as amended; and the an- nual DOD authorization and appropriation acts (Military Assistance Service Funded). Some of the pertinent sections of these acts are discussed below. (See app. I through 111.) Foreign Assistance Act?Military assistance Section 503(a) of the Foreign Assistance Act of 1961, as amended, gives the President the authority to provide military assistance to friendly countries and international orga- nizations. Ln fiscal year 1974, the Congress authorized the President to spent either through loans or grants up to $512.b million for this assistance, although actual appro. priations amounted to e450 million Section 503(c) provided that, teller. defense articles are loaned to foreign countries or international organizations, under section 503(a), the military assistance appropriation will be charged only for out-of-pocket RID. penses and depreciation. Da our report to the Chairman, Committee on Foreign Relations, in March 1973,1 we indicated that previously DOD had leased defense articles on he basis of different law (10 U.S.C. 2667). This law authorizes leasing of nonexoese defense articles when it is in the public in- terest or will promote national defense. How- ever, the law has no relation to foreign assist- ance and was enacted to authorize ,he leas- ing of defense plants and productiot equip- ment to private commercial interests. In our report, we specified that articles wese leased under law (10 U.S.C. 2667) at no cost to for- eign governments or international crganiza- tions and that it appeared the use of thief provision circumvented the Foreign Assist- ance Act of 1961, as amended. Our eiew was that such loans or leases Constituted military assistance and should be subject to ristraints imposed by the act. Additionally, under section 506(as , if the President determines it IS in the see irity in- terests of the United States, he may order tip to $250 million in defense articles from stocks?in addition to the $450 million ap- propriated?and reimburserhent will he pro- vided in subsequent appropriations available for military assistance. He exercised this au- thority during fiscal year 1974 by authorising the transfer of up to $200 million in defense articles to provide additional military assist- ance to Cambodia. Under section 614(a), the President also may authorize assistance, in an amount not to exceed $250 million, without regard to any provisions of the act. However, the Eresident may only use funds already appropriated under other sections of the act. During fiscal year 1974, the President exercised his author- ity under section 614(a) five times for pur- poses of military assistance. The total amount 1"Use of Excess Defense Articles and Other Resources to Supplement the Military Assist- ance Program," B-163742, Mar. 21, 11:73. Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 1;i:we d Fobl5siteitEsNWROUrel6r8921?EIXIMR000700060018-4 S15555 Aitgust 21, 19APP authorized by the President was $133.4 mil- lion. These and other related sections of the act are shown in appendix L Foreign Military Sales Act Although the Congress placed a ceiling on the total credit sales and guarantees under sections 23 and 24 of the Foreign Military Sales Act (see app. II), no similar restrictions are placed on cash sales under sections 21 and 22 of the act. Thus, an unlimited quantity of defense stocks could be sold under sections 21 and 22. During fiscal year 1974, DOD esti- mates that credit sales will amount to $730 million, the authorized ceiling, and cash sales will amount to approximately $7.2 billion. Military assistance service funded authority The provisions in annual DOD authorisa- tion and appropriation acts (see app. III) give DOD authority to use its appropriated funds to transfer any defense articles, includ- ing war reserve material, to support South Vietnamese forces, stibject to the $1.126 bil- lion ceiling. Foreign Military Sales Act amendments?Ex- cess Defense articles Excess defense articles are items in excess of DOD-approved force requirement level. The authority to transfer excess defense ar- ticles' is contained in section 8 of the For- eign Military Sales Act Amendments, 1971, as amended. (See app. II.) In our report to your Committee in March 1973, we indicated that excess defense articles were generated through modernizations of forces and changes in authorizations of ar- ticles to equip and sustain the approved forces. The decision as to what portion of the DOD inventory will constitute the approved force requirement level and what assets may be transferred as excess defense articles rests entirely with DOD. Excess articles are con- tinuously available in vast quantities and have been used in military assistance pro- grams since the inception of foreign aid. Use of excess articles to supplement the regularly funded military assistance program has in- creased since 1968 because of reduced mili- tary assistance appropriations. At the time of our earlier review, "value" was defined as not less than one-third of the amount the United States paid when the articles were acquired (acquisition cost). Since then, the law has been changed and value is now defined only as actual value plus the cost of repairing, rehabilitating, or modifying the article, which could range from as low as salvage value to as high as acquisition cost. A recent sampling by DOD showed the actual value of excess articles averaged only 8.9 percent of acquisition cost, considerably less than the one-third mini- mum required under previous legislation. Orders for excess defense articles are to be considered expenditures of military assist- ance funds. However, those articles gener- ated abroad are charged to the appropriation only if the aggregate actual value during any fiscal year exceeds $150 million. Under the old definition of value this would equal about $450 million (3 x $150 million) in excess articles, based on acquisition cost. Now, how- ever, if DOD decides to use the 8.9 percent (1/11) figure as actual value, approximately $1.65 billion (11 x $150 million) in excess articles, based on acquisition cost, could be granted to foreign countries without charge to the military assistance appropriation. This is over three times more than the value of excess defense articles granted through the military assistance program during any sin- gle previous year. The proposed Foreign Assistance Act of 1974 would further liberalize the use of ex- cess items. Our analysis of the proposed act showed that the theoretical ceiling of $1.65 billion could be increased to $4.4 billion. We believe that consideration should be given to providing more congreSsional control over excess defense articles. The stockpiling of defense assets for po- tential use by allies adds another level to the DOD procurement base. We previously mentioned that new Army procurement will modernize U.S. active and reserve units and the older articles being re- placed will make up the war reserve stock- pile. It is conceivable that once these U.S. Forces have been modernized, DOD will mod- ernize the war reserve, and thus make large quantities of defense assets excess and avail- able for transfer to foreign governments, in- cluding those for which the stockpile was originally intended. ? More importantly, however, is the fact 'that DOD has the authority to decide what 'portion of the DOD inventory will make up the approved force requirement level. Since the war reserve for allies represents a por- tion of the total war reserve in excess of U.S. 'approved force requirements, DOD can now stockpile older items that would immediately become excess upon replacement. If a future 'emergency arises over seas, DOD could reduce 'the approved force requirement level and im- mediately make the war reserve for allies 'available as excess for transfer to whichever 'country may need them. All this could be accomplished without adversely affecting the 'total U.S. approved force requirements. 'CONCLUSION ' In conclusion, we feel that the President 'and DOD at the present time have consider- able statutory authority to transfer reserve 'materials to allies if they are needed. It 'should be pointed out that the authority to 'transfer U.S. defense stocks under these pro- 'visions applies to any defense item in the 'inventory, whether planned for future use by 'allies or 'U.S. Forces. ' The broad authority is especially prevalent in the area of excess defense articles. Under present authority DOD is permitted to trans- fer vast quantities of excess items to foreign governments with little or no charge to any future increase in available excess items (1) because of the modernization of forces and/or 'the reduction in the approved force re- 'quirement level and (2) because of the pro- 'posed liberalization of the no-cost transfer Ceiling, the Committee may wish to con- 'aider tighter controls over the quantity of excess articles that can be transferred to foreign governments. This may include re- taming section 8 of the Foreign Military Sales Act Amendments of 1971, but modify- ing it (1} to establish actual value at not less than 333/3 percent of acquisition value and (2) to require that excess programs be stated in congressional presentation docu- ments in terms of acquisition cost. ' We recognize that there is legislation pend- ing on the DOD procurement authorization bill that would forbid the stockpiling of defense assets for possible future use by 'allied forces. Although passage would elimi- nate the war reserve for allies, it would not strengthen control over excess defense articles. We plan no further distribution of this report unless you agree or publicly announce its contents. ? Sincerely yours, ELMER B. STAATS, Comtprolier General of the United States. EXCERPTS FROM FOREIGN ASSISTANCE Ac r OF 1961, AS AMENDED MILITARY ASSISTANCE Section 503?General Authority?(a) The President is authorized to furnish military assistance on such terms and conditions as he may determine, to any friendly country or international organization, the assisting of which the President finds will strengthen the security of the United States and promote world peace and which is otherwise eligible to receive such assistance, by-- (1) acquiring from any source and pro- viding (by loan or grant) any defense article or defense service; or (2) assigning or detailing members of the Armed Forces of the United States and other personnel of the Department of Defense to perform duties of a noncombatant nature. (b) In addition to such other terms and conditions as the President may determine pursuant to subsection (a), defense articles may be loaned thereunder only 1f? (1) there is a bona fide reason, other than the shortage of funds, for providing such articles on a loan basis rather than on a grant basis; (2) there is a reasonable expectation that such articles will be returned to the agency making the loan at the end of the loan period, unless the loan is then renewed; (3) the loan period is of fixed duration not exceeding five years, during which such article may be recalled for any reason by the United States; (4) the agency making the loan is reim- bursed for the loan based on the amount charged to the appropriation for military assistance under subsection (c); and (5) arrangements are made with the agency making the loan to be reimbursed in the event such article is lost or destroyed while on loan, such reimbursement being made first out of any funds available to carry out this chapter and based on the depreciated value of the article at the time of loss or destruction. (c) (1) In the case of any loan of a defense article or defense service made under this section there shall be a charge to the appro- priation for military assistance for any fiscal year while the article or service is on loan in an amount based on? (A) the out-of-pocket expenses authorized to be incurred in connection with such loan during such fiscal year; and (B) the depreciation which occurs during such year while such article is on loan. (2) The provisions of this subsection shall not apply? (A) to any particular defense article or defense service which the United States Government agreed prior to the date of en- actment of this subsection to lend; and (B) to any defense article or defense service, or portion thereof acquired with funds appropriated for military assistance under this Act. Section 504?Authorization?(a) There is authorized to be appropriated to the Presi- dent to carry out the purpose of this part not to exceed $512,500,000 for the fiscal year 1974: PrOvided, That funds made available for assistance under this chapter (other than training in the United States) shall not be used to furnish assistance to more than thir- ty-one countries in any fiscal year: Pro- vided further, That none of the funds ap- propriated pursuant to this subsection shall be used to furnish sophisticated weapons Systems, such as missile systems and jet aircraft for military purposes, to any un- derdeveloped country, unless the President determines that the furnishing of such weap- ons systems is important to the national security of the United States and reports within thirty days each such determination to the Congress. Amounts appropriated un- der this subsection are authorized to remain available until expended. Amounts appro- priated under this subsection shall be avail- able for cost-sharing expenses of United States particiaption in the military head- quarters and related agencies program. Section 506? Special Authority--(a) Dur- ing the fiscal year 1974, the President may, if he determines it to be in the security in- terests of the united States, order defense articles from the stocks of the Department of Defense and defense services for the pur- poses of part II [military assistance], sub- ject to subsequent reimbursement therefor from subsequent appropriations available for military assistance. The value of such orders under this subsection in the fiscal year 1974 shall not exceed $250,000,000. (b) The Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 RVaniggLQ.6_/09 ? cIA-IIDE75130038QR000700060018 S 15556 Approved For -4 IONAT.: RECORD ? SENATE August .21, 19; .fr Department of Defense is authorized to in- cur, in applicable appropriations, obliga- tions in anticipation of reinViursements in amounts equivalent to the value of such orders under subsection (a) hf this section. Appropriations to the President of such snarls as may be necessary to reitaburse the ap- plicable appropriation, fund, or account for such orders are hereby authorized. GENERAL PROVISIONS Section 610. Transfer Betwden Accciunts.? (a) Whenever the President determines It to be necessary for the purpciees of this Act, not to exceed 10 per centurn of the funds made available for any provision of this Act (except funds made available pursuant to title IV of chapter 2 of pirt I [Overseas Private Investment Corporation]) may be transferred to, and consolicbted with, the funds made available for any other provi- sion of this Act, and may be used for any of the purposes for which euchsfunds may be used, except that the total la the provision for the benefit of which the transfer is made shall not be increased by mane than 20 per centum of the amount of funds made avail- able for such provision. * Section 614. Special Authorities.?(a) The President may authorize in Vetch fiscal year the use of funds made available for use un- der this Act and the furnishing of assistance under section 506 in a total amount not to exceed $250,000,000 and the use of not to ex- ceed 8100,000,000 of foreign Aurrencies ac- cruing under this Act or any other law with- out regard to the requirements of the Act, any law relating to receipts end credits ac- cruing to the United States, any Act appro- priating funds for use under Vais Act, or the Mutual Defense Assistance Control Act Of 1951 (22 U.S.C. 1611 et seq.),Jn furtherance of any of the purposes of suchnects, when the President determines that svich authoriza- tion is important to the security of the United States. Not mere than $50,000,000 of the funds available under this subsection may be allocated to any one country in any fiscal year. The limitation contained in the preceding sentence shall not apply to any country which is a victim of active Commu- nist or Communist-supported aggression. (c) The President is autherrized to use amounts not to exceed $50400,000 of the funds made available under this Act pursu- ant to his certification that it is inadvis- able to specify the nature of the use of such funds, which certification shall be deemed to be a sufficient voucher for such amounts. The President shall promptly and fully in- form the Speaker of the Rouse of Represent- atives and the chairman and ranking minor- ity member of the Committee on Foreign Relations of the Senate of each use of funds under this subsection. Section 662. Limitation Upon Exercise of Special Authority.?The President shall not exercise any special authority granted to him under section 506(a), 61.110), or 61404 of this Act unless the President, prior to the date he intends to exercise any such author- ity, notifies the Speaker of the Rouse of Rep- resentatives and the Committee on Foreign Relations of the Senate In witting of-each such intended exercise, the section of this Act under which such authority is to be ex- ercised, and the justification for, and the extent of, the exercise of such authority. Section 653. Change in Allocation of For- eign Assistance.?(a) Not later than thirty days after the enactment of any law appro- priating funds to carry out any provision of this Act (other than section 451 [Contin- gency Fund] or 637 [Administrative Ex- penses] ), the President shall manly the Con- gress of each foreign country and interna- tional organization to which the United States Government intends Us provide any portion of the funds under such law and of the amount of funds under the law, by cats- gory of assistance, that the United S-ates Government intends to provide to each. Not- withstanding any other provision of law, the United States Government shall not provide to any foreign country or international orga- nization any funds under that law which ex- ceeds by 10 per centum tie amount of mili- tary grant assistance or security supporting assistance, as the case may be, which the President notified the Congress that the United States Governmert intended to pro- vide that country or organization under that law, unless the President (1) detern ines that it is in the security interests of the United States that such aciuntry or organi- zation, receive funds in excess of the amount included in such notification for that coun- try or organization, and (2) reports to Con- gress, at least ten days psior to the date on which such excess funds are to be provided to that country or organization, each such determination, including the name of the country or organization to receive funds in excess of such per centum, the amount of funds in excess of the per centum which are to be provided, and the justification for pro- viding the additional assistance. (b) The provisions of this section shall not apply in the case of any law malting continuing appropriations and may not be waived under the provisions of section 614(a) of this Act. APPENDIX II?EXCERPTS FLOM FOREIGN MILI- TARY SALES ACT AMENDMENTS, 1971 AS AMENDED EXCESS DEFENSE ARTICLES Section 8. (a) Subject to the provisions of subsection (b), the value of any excess de- fense article granted to a foreign country or international organization by any depart- ment, agency, or independent establishment of the United States Government (other than the Agency for International Development) shall be considered to be an expenditure made from funds appropriated under the Foreign Assistance Act of 1961 for military assistance. Unless such department, agency, or establishment certified to the Comptroller General of the United States that the excess defense article it is ordering is not to be transferred by any means to a foreign ccun- try or international organization, when an order is placed for a defense article whose stock status is excess at the time ordered, a sum equal to the value thereof shall (less amounts to be transferred under section 632(d) [Reimburseiftent Among Agencies] of the Foreign Assistanct Act of 1961) (1) be reserved and transferred to a suspense ac- count, (2) remain in the suspense account until the excess defense article is either de- livered to a foreign country or international organization or the order therefor is can- celled, and (3) be transferred from the :sus- pense account to (A) the general fund of the Treasury upon delivery of such article or (B) to the military assistance appropriation for the current fiscal year upon cancellation of the order. Such sum shall be transferred to the military assistance appropriation for the current fiscal year upcn delivery of such article if at the time of delivery the stock status of the article is determined, in ac- cordance with section 844 (g) and (m) (defi- nitions of "excess defense articles" and "yal- iae"1 of the Foreign Assistance Act of 1961. to be nonexcess. (b) In the case of excess defense articles which are generated abroad, the provisions of subsection (a) shall apply during any, fiscal year only to the extent that the aggregate value of excess defense articles ordered dur- ing that year exceeds *150000,000. (c) For purposes of this section, the term "value" has the same meaning as given it in section 644(m) of the Foreign Assistance Act of 1961. (d) The President shall promptly and fully inform the Speaker of the House of Representatives and the Committee on Fur.. sign Relations and the Committee on Ap- propriations of the Senate of each decision to furnish on a grant basis to any country excess defense articles which are major weapons systems to the extent such major weapons system was not Included in Vie presentation material previously subolitfed to the Congress. Additionally, the Pre Sete at shall also :submit a nuarterly report to the Congress listing by country the total value of all deliveries of excess defense articles, dis- closing both the aggregate original aequisi- tion cost and the aggregate value at the time of delivery. (e) Except for excess defense articles granted under part 73 of the Foreign .assist- ance Act of 1961, the provisions of this sec- tion shall not apply to any excess defense article granted to aouth Vietnam ptior to July 1, 1972. CASII AND CREDIT SALES Section 21. Cash Sales From Stock --The President may sell defense _articles from the stocks of the Department of Defense and defense services of the Department of De- fense to any friendly country or international organization if such country or international organization agrees to pay not less than the value thereof in United States dollars, Pay- ment shall be made In advance or, as deter- mined by the President to be in the best in- terests of the United States, within s rea- sonable period not to exceed one ht mired and twenty days after the delivery of the defense articles or the rendering of the de- fense services. Section 22. Procurement for Cash Sales.? (a) Except as Otherwise provided in the sec- tion, the President may, -without require- ment for charge to any appropriation or con- tract authorization otherwise provided, enter Into contracts for the procurement of de. tense articles or defense services for sale for United States dollars to any foreign ccuntry or international organization if such century or international organization provides the United States Government with a depends:10 le undertaking (1) to pay the full amount of such contract which will assure the United States Government against any loss on the contract, and (2) to make funds available in such amounts and at such times as may be required to meet the payments required by the contract and any damages and costs that may accrue from the cancellation of such contract, in advance -of the time such pay- ments. damages, or costs are due. (b) The President may, when he deter- mines it to be in the national interest, ac- cept a dependable undertaking of a foreign country or international organization with respect to any such sale, to make full pay- ment within 120 days after delivery cf the defense articles or the rendering of the de- fense services. Appropriations available to the Department of Defense may be used to meet the payments required by the connects for the procurement of defense articles ant defense services and shall be reimburssd be the amounts subsequently received from the country or international organization to whom articles or services are sold. Section 23. Credit Salcs.?The President is hereby authorized to finance procurements of defense arttcies and defense service by friendly countries and international organi- zations on terms of repayment to the 'United States Government of not less than the value thereof in United States dollars within a period not to exceed. ten years aftex the delivery of the defense articles or the render- ing of the defense services. Section 24. Guaranties.---(a) The Prea dens may guarantee any individual, corporation, partnership, or other juridical entity doing business in the United States (etch:Alin; United States Government agencies) agsinst Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005aritiatIBDP7REK3FER000700060018-4 S 15557 August 21, 1974 CONGRESSION political and credit risks of nonpayment arising out of their financing of credit sales of defense articles and defense services to friendly countries and international organi- zations. Fees shall be charged for such guar- anties. (b) The President may sell to any indi- vidual, corporation, partnership, or other juridical entity (excluding United States Government agencies) promissory notes is- sued by friendly countries and international organizations as evidence of their obliga- tions to make repayments to the United States on account of credit sales financed under section 23, and may guarantee pay- ment thereof. (c) Funds made available to carry out this Act shall be obligated in an amount equal to 25 per centum of the principal amount of contractual liability related to any guaranty issued under this section, and all the funds so obligated shall constitute a single reserve for the payment of claims under such guar- anties. Any funds so obligated which are de- obligated from time to time during any cur- rent fiscal year as being in excess of the amount necessary to maintain a fractional reserve of 25 per centum of the principal amount of contractual liability under out- standing guaranties shall be transferred to the general fund of the Treasury. Any guar- anties issued hereunder shall be backed by the full faith and credit of the United States. Section 31. Authorization and Aggregate Ceiling of Foreign Military Sales Credits.? (a) There is hereby authorized to be appro- priated to the President to carry out this Act not to exceed $325,000,000 for the fiscal year 1974. Unobligated balances of funds made available pursuant to this section are hereby authorized to be continued available by appropriations legislation to carry out this Act. (b) The aggregate total of credits, or par- ticipations in credits, extended pursuant to this Act and of the principal amount of loans guaranteed pursuant to section 24(a) shall not exceed $730,000,000 for the fiscal year 1974, of which amount not less than $300,000,000 shall be available to Israel only. APPENDIX III.--EXCERPTS FROM DOD AUTHOR- IZATION AND APPROPRIATION ACTS DOD APPROPRIATION AUTHORIZATION ACT, 1974 Section 801. Subsection (a) (1) of section 401 of Public Law 89-367, approved ,March 15, 1966 (80 Stat. 37), as amended, is hereby amended to read as follows: "(a) (1) Not to exceed $1,126,000,000 of the funds authorized for appropriation for the use of the Armed Forces of the United States under this or any other Act are authorized to be made available for their stated pur- poses to support: (A) Vietnamese and other free world forces in support of Vietnamese forces, (B) local forces in Laos; and for re- lated costs, during the fiscal year 1974 on such terms and conditions as the Secretary of Defense may determine. None of the funds appropriated to or for the use of the Armed Forces of the United States may be used for the purpose of paying any overseas allow- ance, per diem allowance, or any other addi- tion to the regular base pay of any person serving with the free world forces in South Vietnam if the amount of such payment would be greater than the amount of special pay authorized to be paid, for an equivalent period of service, to members of the Armed Forces of the United States (under section 310 of title 37, United States Code) serving in Vietnam or in any other hostile fire area, except for continuation of payments of such additions to regular base pay provided in agreements executed prior to July 1, 1970. Nothing in clause (A) of the first sentence of this paragraph shall be construed as au- thorizing the use of any such funds to sup- port Vietnamese or other free world forces in actions designed to provide military sup- port and assistance to the Government of. Cambodia or Laos: Provided, That nothing contained in this section shall be construed to prohibit support of actions required to insure the sate and orderly withdrawal or disengagement of United States forces from Southeast Asia, or to aid in the release of Americans held as prisoners of war." DOD APPROPRIATION ACT, 1974 Section 737. (a) Not to exceed $1,126,000,- 000 of the appropriations available to the Department of Defense during the current fiscal year shall be available for their stated purposes to support (1) Vietnamese and other free world forces in support of Viet- namese forces; (2) local forces in Laos; and for related costs on such terms and condi- tions as the Secretary of Defense may deter- mine: Provided, That none of the funds ap- propriated by this Act may be used for the purpose of paying any overseas allowance, per diem allowance, or any other addition to the regular base pay of any person serving with the free world forces in South Vietnam if the amount of such payment would be greater than the amount of special pay au- thorized to be paid, for an equivalent period of service, to members of the Armed Forces of the United States under section 310 of title 37, United States Code, serving in Viet- nam or in any other hostile fire area, except for continuation of payments of such addi- tions to regular base pay provided in agree- ments executed priOr to July 1, 1970; Pro- vided further, that nothing in clause (1) of the first sentence of this subsection shall be construed as authorizing the use of any such funds to support Vietnamese or other free world forces in actions designed to provide military support and assistance to the Gov- ernment of Cambodia or Laos. Provided further, That nothing contained in this sec- tion shall be construed to prohibit support of actions required to insure the safe and orderly withdrawal or disengagement of United States forces from Southeast Asia, or to aid in the release of Americans held as prisoners of war. (b) Within thirty days after the end of each quarter, the Secretary of Defense shall render to Congress a report with respect to the estimated value by purpose, by country, of support furnished from such appropria- tions. Mr. KENNEDY. I appreciate the con- sideration of this amendment by my col- league and friend from Arkansas, and I hope that he will be willing to take the amendment to conference and fight for it there. Mr. McCLELLAN. Mr. President, I have discussed this amendment with its distinguished author, the Senator from Massachusetts (Mr. KENNEDY) I have considered it first in the light of the fact that apparently it is legislation on an appropriation bill; that was my first re- action to it, and I think that is true, and it might be subject to a point of order. However, this same language, as I un- derstand it, has been considered by the authorization committee and was re- ported out and passed here in the Sen- ate?no, it was a floor amendment agreed to in the Senate earlier this year, to the authorization bill; am I correct? Mr. KENNEDY. The Senator is correct. Mr. 1VIcOLELLAN. Therefore, the Sen- ate having acted upon it legislatively, I feel inclined, as I have said?and I do not find any objection to it from those with whom I have conferred?to go ahead and accept the amendment and let it go to conference and see what we can do with it there. I have no objection to the objectives and purposes of the amendment, if it can be accepted. It is an attempt to get control and keep control of expenditures and of materials and supplies that we may be appropriating for and trying to give away as assistance, and we have not made a provision in this bill with respect to even the sale of weapons, and so forth, to other countries, to try to get better control of that so we will know what is going on, and requiring reports. So I have no objection, unless there is objection on the part of some other mem- ber of the committee?and I hear none? to accepting the amendment and doing the best we can with it. Mr. KENNEDY. I thank the Senator. The PRESIDING OFFICER. The ques- tion is on agreeing to the amendment of the Senator from Massachusetts. The amendment was agreed to. AMENDMENT NO. 11336 Mr. EAGLETON, Mr. President, I ask unanimous consent that the Senate re- vert once again to the consideration of amendment No. 1836. The PRESIDING OFFICER (Mr. HELMS) = The Chair will advise the Sena- tor that that is automatic. Mr. EAGLETON. Mr. President, I yield 10 minutes to the distinguished junior Senator from Illinois. Mr. STEVENSON. Mr. President, I want, first of all, to commend the junior Senator from Missouri for the extraor- dinary effort with which he has in- vested this amendment, and for bringing it to the floor of the Senate, and I also commend the chairman of the Appro- priations Committee for his work and the work of that committee. It has done a good job of cutting excessive spending from the defense budget, though it has not, Mr. President, in my judgment, gone far enough. When it comes to national survival, we all agree that such sums as are nec- essary for national security must be raised and spent. The tragedy is that we stumble through our debates about na- tional defense with no reliable definition of national security and no reliable standard for determining what is nec- essary. An adequate definition of national se- curity includes not just military hard- ware and personnel, but the confidence of the American people in their Gov- ernment; the confidence of the world in our country for enlightened leader- ship; a healthy domestic and world economy, and the conditions of a good life at home. In order to rationally determine mili- tary policy, we need a coherent foreign policy. It is asking too much of the Con- gress and the military to forge a rational defense and military strategy if they do, not have a clearly defined and articulat- ed foreign policy. We do not have such a foreign policy. What we have had, instead in recent years, are promises, slogans, contradic- tory gestures, and personal diplomacy. An opening by the U.S. Government to the People's Republic of China, was appropriate and long overdue. But Presi- dent Nixon's Peking visit was handled in Approved For Release 2005/06/09 : CIA-RDP75600380R0007000600184 S 15558 Approved For Reinsaiggiefa] VMP.75BQIIMR000700060018-4 . u shiNATE A.ugzat 01, P a way?by secret arrangements and shock announcements?that demoralized our Allies in Asia and undermined our positeen in the United Nations with re- spect to Taiwan. And whet the U.N. ac- cepted the logic of his action, President Nixon chastised the U.N. President Nixon's visit this year to the Poviet Union was at best unnecessary. None of the heralded artns limitation agreements materialized. And in order to make some gesture of silecess for glo- hal television, President Nixon signed a limited nuclear test-ban treaty which Implies that the United States and the Soviet Union are not very serious about stopping nuclear proliferation. This comes at a time when worldwide inter- est in obtaining nuclear reactors is rap- idly accelerating. The visit?and the ad- ministration's continuing conduct?sug- gest American indifference to the re- pression of personal freedom in the U.S.S.R. What the United States has gained from these exercises in Presidential diplomacy remains to be seen and, what- ever it is, it could have been achieved without President partedpation and without the shocks we suffered in East Asia, South Asia, and Europe, as a re- sult of our bilaterial Maneuverings. Presidential posturing is no substitute for a prudent and thoughtful 'worldwide foreign policy which reeognizes the world's pluralism and the Nation's mul- titude of interests in all its parts. Drift Mad weakness in foreign relations and economic policy have direct and dan- gerous results in defense policy. The notion persists that world power and influence and national security are directly related to the size of the defense budget. As mistakes of foreign policy, or more accurately the absence of a princi- pled foreign policy, producesfrom South- east Asia to Eurasia U.S. weakness, the pressure increases to spend -more money on the military?and so the wheel takes another turn. Military spending by itself does not bring us added security in the world. Each increased expenditure usually brings a response from the other side, leaving us by and large in the same rela- tive positiori, but always poorer and a lit- tle closer to the flash point. The notion also persists that increased defense spending can stimulate a trou- bled economy. The idea that domestic problems might be solved simply and quickly by throwing dollars at them finds no advocates. Yet, the Same notion drives us to compulsive expenditures for weap- ons, military personnel, and power. Military spending does not stimulate the economy. It is an unhappy fact that excessive military spending contributes heavily to inflation. It diverts resources from productive uses?housing, health, energy, transportation, education?to nonproductive uses. Unlike most forms of Government spending, defense spending increases demand, without increasing supply. Other nations, notably West Germany and Japan, rose from the ashes of World War II to become our principal competi- tors in the world marketplace by spend- ing little, on the military?much on their economies. Now, our heavily weighted economy is crumbling. It is experiencing inflation and recession. Consumer prices are increasing at a rate of 12.6 percent, while wholesale prices increased in July at an incredible annual rate of 44 per- cent. Unemployment in July was 5.3 per- cent and rising. And productivity in- creased only 1 percent 3ast quarter. The economic consequences of run- away military spending?inflation, the diversion of funds from demonstrable needs, declining productivity, unempley- mente?,are as destructhe to the national security as an Inadequate defense budget. It 13 wrong to argue, as President Ford does, that inflation can be halted by cut- ting in the domestic sector but not in the defense sector of the budget. Some Gov- ernment spending in tune is deflation- ary. Initiatives in health, housing, en- ergy, and transportation could increase productivity and supply demand. Agri- cultural production can be increased in part at Government expense?to meet growing demands for food at home and abroad with deflationary consequences. President Ford, like his predecessor, ap- pears to have his priorities mixed up. If he offers more of the same, the Nation will suffer more of the same. The defense appropriations bill for fiscal year 1974 as reported by the AP-. propitiations Committee provides funds for the Department of Defense over and above those necessary for an adequate military posture. Reductions can be made without impairing the ability of the military forces of the United States to carry out those missions essential to our national security. The bill would provide $82,079,358,000 in new appropriations and transfers. On December 20, 1973, the House and Senate agreed to the conference report on the fiscal year 1974 Department of Defense appropriations bill providing a total of $74,218,230,000. It was signed into law by the President on January 2, 1974. On February 4, 1974, about 1 month later, the President transmitted to Con- gress a fiscal year 1975 defense budget totaling $85,582,297,000. This represent- ed an increase of $11,364,067,000, a 15- percent increase over the amount pro- vided by Congress 1 month before. At the same time, the President trans- mitted a fiscal year 1974 defense supple- mental request of $6,200,421,000, made up of $3,412,741,000 for a so-called readi- ness requirement due to the Middle East crisis and $2,787,680,000 for pay :in- creases. On May 30 and June 24, 1974, the President transmitted budget amendments totaling $1,475,200,000 for fuel price increases and certain per benefits, increasing the fiscal year 1975 Defense budget to a new total of $87,057,497,000. Thus, between February and June 1974, Congress was requested to consider a. total increase of $19,039,- 688,000 for the Defense Department. To date, the Congress has by law re- duced this increase by a mere $4,873,- 032,000. The Rouse recently passed a military appropriations bill of 483.4 bil- lion for a further reduction of $3.7 bil- lion. And the Senate Appropriations Committee has reported- out a mileare appropriations bill with an additional reduction of $1.4 billion. Yet, we still have left an increase of $11 billion. This increase in defense appropria- tions comes when the United States is militarily powerful and not at was. The involvement in Southeast Asia has been wound down?yet the spending Winds up. When President Nixon signed the mili- tary procurement authorization bill into law on August 5, he said that he was not completely satisfied with the bill be- cause "A number of provisions authorize spending for unneeded _equipment and could thus inflate defense spending un- necessarily in a time when we all seoulcl recognize the need to avoid waste! This amendment to the defense ae- propriations bill will establish a ceiling on new budgetary authority of $81 be- lion, and help eliminate some (X' the wastes to which the President referred. Next year the new Budget Committee will establish ceilings such as the one we are recommending. This method is also used by the Office of Management and Budget within the executive branch to establish priorities for the Federal budget. It Is an approach which has been used extensively in the past to con- trol and delimit the categories of the Federal budget, and now has been adopted by the Congress for the ft ture. The Nixon administration asked that the Federal budget be reduced by $5 bil- lion in outlays to help control infletion. President Ford has indicated that he would seek reductions in Federal wend- ing, and some predict that he will ask for greater cuts. A reduction in outlays of $5 billion woulderequire a reduteion in budgetary authority of $11 to $12 billion. If this goal is to be reached, the proportionate reduction in the deense budget would be in the $6 to $7 billion range. The $81 billion ceiling we pro- pose is on the high side of such a for- mulation. If Congress is serious about reducing the Federal budget as a means of con- trolling inflation, it _cannot overlools the fact that 70 percent of the controllable portion of that budget is attributable to the military and due to the nonproduc- tive, demand-generating nature of de- fense spending, reductions made in the defense appropriations bill, dollar for dollar, will be more effective in coun- tering inflation than any other cute Congress has appropriated snore money over the past 4 years than the delivery system?the defense industry? can keep up with. This is illustrate i be the steady increase in unexpended hal- ancee?money obligated but not spent-- - over the past 4 fiscal years. In effect the delivery of goods and services cannot keep up with the orders placed for them. An $81 billion ceiling on this year's budget can help rectify this unhealthy distortion of the appropriations process. Mr. President, the Senate Appropria- tions Committee should be commet- dee for the diligent job it has done in ex- amining the defense budget. It has, after months of work, reported out a bill which cuts over $5 billion from the ad- ministration request. Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 September 24, ippfroved 9 00700060018-4 S 1741 )4.4e /-1.24/-1 documents be printed at this point in the RECORD. There in ig no objection, the docu- ments were rdered to be printed in the RECORD, as f ows: CAPITOL HILL TED METHOD/ST CHURCH, Washingt D.C., September 24, 1974. DEAR FRIEND: ? day as delegates from 30 of the United S es and Canada arrive in Washington, D.C. assemble for the first national conferen of Meals-on-Wheels, Senator George S. Govern will introduce for himself and Sen or Richard S. Schwei- ker, the attached r lution which would declare- the week of eptember 23-27 na- tional "Meals-on-Whe week. It is our hope that will join your fel- low Senators in unani us support of this resolution. It is design to draw the na- tion's attention to a pro m which seeks to meet?now?the needs o ose who are el- derly and convalescent providing them with home-delivered, hot n ltious meals. These are mostly private ograms, spon- sored by local religious a civic groups. The programs work because unteers pre- pare, cook, package, and de r the food at cost. It is a worthy program worth v recogni- tion. We hope you agree with and will give your support by unanimous sent to- day when the resolution is introd d. With warm wishes, I am Sincerely yours, NEIL SCOTT, Chairman, Greater Washington on-Wheels Confederation. HOME DELIVERED MEALS?A NATIONAL DIRECTORY SOUTH DAKOTA Aberdeen Aberdeen Recreation-Home Service. Sponsor, if any: Aberdeen Senior Center, Inc. Meals served per week, 178. Different per- sons served per week, 34. Restrictions: 55 years and over. Other, un- specified restriction. Meals served: Hot lunch meal $.76-$1.00. Provision for special diets: Flexible diets. Minimum length of enrollment: No limit. Maximum length of enrollment: No limit. Age distribution of participants: Under 55, none; 55-64, 2 percent; 65-74, 23 percent; 75-84, 61 percent; 85 and over, 14 percent. Brookings .Meals on Wheels-Brookings Hospital A iary. Sponsor, if any: Hospital and Rest me Auxiliary. Meals served per week, 55. Diffe t per- sons served per week, 11. Restrictions: None. Meals served: Hot lunch me $1.01-1.25. Provision for special diets: exible diets. Minimum length of enroll nt; No limit. Maximum length of enro ent: No limit. Age distribution of parti ants: Under 55, 9 percent; 55-64, 37 per t; 65-74, 54 per- cent; 75-84, none; 85 an ver, none. Cl Meals on Wheels. Sponsor, if any: L 1 churches. Meals served per ek, 4. Different persons served per week, 4 Restrictions: e. Meals served: ot lunch meal $.76-1.00. Minimum le th of enrollment: No limit. Maximum 1 gth of enrollment: No limit. Age distri tion of participants: Under 55, none; 55-6 none; 65-74, 50 percent; 75-84, 50 percen 85 and over, none. Madison Meal n Wheels, Madison Senior Center. Spo or, if any: Interlakes Community Acti Meals served per week, ?Different persons served per week, 35. Restrictions: 55 years and over. Meals served: Hot lunch meal, $.51-.75. Minimum length of enrollment: No limit. Maximum length of enrollment: No limit. Age distribution of participants: Not noted. Milbank Meals on Wheels. Sponsor, if any: Ministerial Association. Meals served per week, '75. Different persons served per week, 15. Restrictions: None. Meals served: Hot dinner meal, $.'76-1.00. Provision for special diets: salt and sugar sulAtitutes. Minimum length of enrollment: No limit. Maximum length of enrollment: No limit. Age distribution of participants: Under 55, none; 55-64, none; 65-74, 10 percent; 75-84, 90 percent; 85 and over, none. Rapid City Mobile Meals, Inc., 213 Berry Pine Road. Sponsor, if any: Independent Corporation. Meals served per week, 50. Different persons served per week, 12. Restrictions: Shut in, living alone. Meals served: Hot dinner meal, $.'76-1.0 Provision for special diets: Special et prescribed. Minimum length of enrollment: imit. Maximum length of enrollment:, limit. Age distribution of participan nder 55, none; 55-64, 10 percent; 65_7:0 percent; 75-84, 40 percent; 85 and ove one. Sioux Fall Meals on wheels. Sponsor, if any: Luth ii Social Services. Meals served per we 215. Different per- sons served per week . Restrictions: Poo utrition. Meals served: lunch meal, $.76-1.00. Provision for ecial diets: Special diet rescribed. Minimum gth of enrollment; 5 days. aximu ngth of enrollment: No limit. dist'- .ution of participants: Under 55, 5 cen 5-64, 24 percent; 85-74, 24 per- ce 4, 29 percent; 85 and over, 18 per- cen Spear fish on wheels. if any: Spearfish Senior Citizens r. Meals ved per week, 20. Different per- sons serv er week, 6. Restrict s: None. Meals se : Hot lunch meal, $.76-1.00. Provision special diets: Flexible diets. Minimum of enrollment: No limit. Maximum 1 th of enrollment: No limit. Age distrib n of participants: Under 55, 0 percent; 5 4 0 percent; 65-74, 80 per- cent; 75-84, 20 cent; 85 and over, 0 per- cent. Meals on wheels. Sponsor, if any: million Civic Council. Meals served per ek, 60. Different per- sons served per week,'". Restrictions: 55 yea and over; other, un- specified restriction. Meals served: Hot d Provision for special Minimum length of e Maximum length of e Age distribution of part 0 percent; 55-64, 0 percent; '75-84, 70 percent; 85 and r meal $.76-1.00. ts: Flexible diets. lment: No limit. ment; No limit. nts: Under 55, 74, 10 percent; r, 20 percent. Watertown Meals on wheels. Sponsor, if any: None at p Meals served per week, 110, sons served per week, 22. Restrictions: None. Meals served: Hot dinner m Provision for special diets: Fl nt. erent per- $.76-1.00. e diets. Minimum length of enrollment: No limit MRXIMUM length of enrollment: No limit. Age distribution of participants: Under 55, none; 55-64, none; 65-74, 60 percent: '75-84, 40 percent; 85 and over, 10 pe ent. Yankton Meals on wheels. Sponsor, if any: Yankton Sen itizens. Meals served per week, 60. erept per- sons served per week, 15. Restrictions: None. Meals served: Hot lu meal $.76-1.00. Provision for specie ets: Special diet prescribed. Minimum length enrollment: No limit. Maximum leng f enrollment: No limit. Age distribut of participants: Under 55, 20 percent; 55..-, 20 percent; 65-74. 30 per- cent:. 75-84, percent; 85 and over, 10 per- cent. The ESIDING FiCER. The clues is on agreeing to the resolution. resolution was considered and ed to. _ he preamble was agreed to. The resolution (S. Res. 409) , with its preamble, is as follows: S. RES. 409 Resolution, designating the week of Septem- ber 23 through September 27 as "Meals-on- Wheels Week". Resolved, Whereas, the World Hunger Action Coalition has proclaimed the week of September 22 through September 29 as the "Week of Concern for World Hunger," and Whereas, the thousands of Meals-on- Wheels organizations in the United States, Canada, and many other countries provide hot, nourishing meals each day to the hungry, housebound, elderly, handicapped, and the disabled, without regard to race, creed, color, or financal ability, and Whereas, the vast majority of these Meals- on-Wheels organizations are privately or- ganized as activities of local churches, temples, or concerned civic groups, and Whereas, such Meals-on-Wheels programs enable millions of individuals to remain in their homes and maintain their health, and Whereas, Meals-on-Wheels has grown to serve the purposes previously listed since it was first started in England in 1939 and be- gun in the United States in 1954, and Whereas, as elected public servants, we welcome and encourage programs which serve the less fortunate and are especially grateful for efforts which originate on a vol- unteer basis in the private sector, and Whereas, those meals are planned, pack- aged, and delivered by the enterprice, com- passion and devotion of literally thousands of volunteers who are helping to bring a measure of human warmth and love to those they serve: Now, therefore, be it Resolved, That the week of September 23 through September 27 be designated as "Meals-on-Wheels Week" in the United States in recognition of the selfless service these Meals-on-Wheels units perform and in honor of the first National Conference of Meals-on-Wheels. DEPARTMENT OF DEFENSE APPRO- PRIATIONS, 1975?CONFERENCE REPORT Mr. McCLE'LLAN. Mr. President, I sub- mit a report of the committee of confer- ence on H.R. 16243, and ask for its im- mediate consideration. The PRESIDING OFFICER (Mr. DomENICI). The report will be stated by title. The assistant legislative clerk read as follows: Approved For Release 2005/06/09: CIA-RDP75600380R000700060018-4 S 17446 Approved For R ecitiNUMIRMiCA-M15_130ROARIT0700060018-4 se ember 24, 1974 The committee of eonfertiare on the Ills 1 agreeing votes of the two _Rouses on the amendments of the Senate to the bill (1116. 16243) making appropriations for the De- partment of Defense for the 'fiscal year end- ing June 30, 1975, and for -other purposes, having met, after full and. tree onferenee, have agreed to recommend and de recant- mend to their respective Braises this report, signed by a majority of the aponferees. The PRESIDING OFFICER. Is there objection to the consideration of the con- ference report? There being no objection, the Senate proceeded to consider the *port. (The conference report ,ds printed In the House proceedh*s of the Cormens- SIONAL RECORD Of September 18, 1974, at Page H9339.) Mr. McCLELLAN. Mr. President, I ask unanimous consent that ihe requirement that the conference reportbe printed as a Senate report be waived, inasmuch as under the rules of the House of Rep- resentatives it has been prkited as a re- port of the House. The PRESIDING, OPPItER. Without objection, it is so ordered. Mr. bilceLELLAN. Mr. President, on Tuesday, September 17, 11174, the con- ferees on the Department cif Defense ap- propriations bill for fiscal year 1975 reached agreement 1712 the differences between the two Houses ,after 2 days of meetings and about 8 hours of delib- erations. The total amount agreed to was 282,- 576,297,000 in new budget authority, in- cluding transfers of 2480 111111.1011. This is 24.481,200,008-er 5.15 per- cent - below the adasitlistraticee amended budget request of $87.057,497,- 000. It is also 2817,273,000 below the amount approved by the House and 3478,439,000 above the ,aniount ap- proved by the Senate, The appropriation agreed upon by the conferees will rerstdt ift it reduction In actual outlays of $2.5 billion during the 1975 fiscal year, which should have a significant impact on helping to com- bat inflation. Although strong efftwts were made by the House conferees to restore Sizable appropriations which bad been cut by the Senate, your tonfvsetz Were success- ful in limiting add-ons to only 26..2 per- cent of the Senate reduction. There were 57 ansendesents made by the Senate to the House bill, and in all, a total of 368 individual line-item dol- lar or language differences that needed to be resolved. I am convinced that the -conference committee has produced a reasonable compromise and that the amount ap- propriated in this bill establishes a level of funding that is a fair balance between the requirements of the Nation's de- fense and the need for reduced Federal spending in order to deal with inflation. Mr. President, I wish to point out that the reductions made in The admin- istration's budget request are significant- ly greater than was thought possible at the time that the Defense Appropria- tion Subcommittee of the Committee on Appropriations forecast a reduction of $3.5 billion in new budget authority. We have, instead, by applying the most rigid Standards, made savings of nearly $1 billion more than the target amount we set at the time the hearings were opened on this bilL FISCAL YEAR 1975 SUPPLEME/9TALS Mr. President, I want to make it clear to my colleagues that, althotigh large, this bill will not fund all of the Nation's military costs in fiscal year 1975. In addition to the military construction, family housing, military assistance, and civil defense areas, which will be in- cluded in other bills, there is $1,740 mil- lion which will be reqaired in a Sinai year 1975 supplemental to pay for mili- tary and civilian pay raises to be granted in October 1974 and wage board Pan increaaes which are automatically re- quired as wages in the private sector rise. I want to make It very clear to the Defense Department that, barring exceptional and unexpected changes in the security posture of this Nation, the Congress will takes very dim view of sup- plementals for anything other than those statutory pay and wage board in- creases. We do not want a repetition of last Year's "readiness supplemental," which included many items that probably could have waited for the fiscal year 1975 ap- propriation. Of course, if there are com- pelling reasons for funding a critical item, they will be considered, but only after all means of readjusting within available funds and reprograming have been exhausted by the Department of Defense. OEPARTMENT Of DEFENSE APPROPRIATIONS, 1975 (WR, 11243) Appropriations (by Imactiasaal MILO Revisa fiscal year 1975 budget estimate House Senate aRewance allowance TITLE 4--4111LITARif IllfiRSONNK Military personnel, Army ....... . . Military personnel, Navy ...I Military parae? Remy 1211, lin Miellierdiee of deficiencies). ? =, Military parse Matins tarps_ .7.1 Military pen Air fence a Reserve personnel, Army a Reserve person Repave per Co _.....a Reserve *mama National 'Guard personnel, Army----------e National Guard personnel, Air Fott...._.-----a Tom!, title 1-8otary 17, 963, 208,100 5, 809, 900,1100 51, 026,1300 1, 72,500, 000 7, 475, 700,000 418, 600, 000 209, 700, 000 73, 000400 /41, 565, OM 4321, 700, 000 IN, 577, 000 87, 875, 013, 000 5, 720,230, 000 43, 356,000 1, 713, 506, 000 7, 332, 151,000 498, 600, 000 216, /CO, ODO 48,100, 000 145, 865, 000 660, 800, 000 204, 527, 000 17, 762,213,308 5, 665, situ* 43, 356, 000 1,688,206,000 7, 210, Sat 000 485, 880,800 202,111000 I wish to emphasize, Mr. PreAdent, that while some military authorities may regard this is a lean budget, their objec- tives will be met if they apply the same diligent scrutiny 'to their programs as the members of the Senate Committee on Appropriations applied in maktag our recommendations for spending (luring fiscal 1975. In view of the economic and fiscal dis- array in which the United States pres- ently finds itself, the most strenuous ef- forts must be made at all levels of the Department of Defense to become more cost-conscious, to examine all Item n with the view of eliminating or dispensing with those that are unnecessary w- thout unduly or adversely affecting essential operations. Perhaps one of the problems with military spending is that the profes- sional soldiers, the generals and ad- mirals who manage programs and proj- ects in the Defense Department, have not had the experience of working n the Private marketplace where profits-sand not appropriations--determine expendi- tures. We must get full value for every dollar expended. Our generals and ad- mirals must come to reelive that we do not intend to appropriate for any pur- pose unless it is fully justified. I have asked each service secretens to make a determined effort to save dollars and personnel and to submit penodic reports on these efforts and their results. In conclusion, Mr. President, it is my hope that we will soon enter a period in which international tensions will be re- duced. But until then, we must maintain a defense posture that will be an ado- quate shield for OW liberties and a de- terrent to aggression-While taldne into account the limitations of our resouroas. I am certain that the appropriations contained in this bill are adequate to meet this challenge. As George Washington said In his ftrst Inaugural address: To be prepared for war is one of the most effectual means of preserving peace. Mr. President, I ask unaninukus con- sent that a list of major items in confer- ence and a tabulation summarizinn the actions of the House, the Senate and the conference be printed in ,the RECOED at this point. There being no objection, the tabula- tion was ordered to be printed in the RECORD, as follows: Conference aveement conference compared with- Budget estimate Howe 250WIRCS 3eparte allowance $7, 7111 163,000 -2182, 937, 000 -994, 750,500 +518, 050, 9110 5, 679, tie, feo -120,090,000 -48,420,900 +04,311,600 43, 356, 000 -7,670,000 1,695, 456, 000 -37,044,004 -18,050,000 +9,200,000 7, 229, 131, 000 -206,169,510 -102.610,000 +12.050,000 493,100, 000 +3,200,900 -4,800,000 +1,000,000 211,1101 000 +2, 200, 000 -4, 300,+0, 001i, 008 , 100,0111 66,100,000 -6, 200, 000 -1, 700, -1, 001, ODD 147,12000 147,115,000 -700,000 +2,804000 66L 301008 661100, 000 +39,100,000 -511, 030 205 127, 000 204, WI, 000 +5,151100 -501, DOD 24, 77A 468,aoa 2 478, 748, 000 24, 131851 0110 24, 214, 108, 000 -560, 360, 000 -264, 640, ON +75, 2sg,040 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 205/..06L0.9 '_CIA:RDUR:Ipi8OR000700060018-4 September 24, 1974 CONGRESSIONAL RECuitu- sr. S 17447 Appropriations (by functional title) Revised fiscal year 1975 budget estimate House allowance Senate allowance Conference compared with- Conference agreement Budget estimate House allowance Senate allowance TITLE II-RETIRED MILITARY PERSONNEL Retired pay, Defense 6, 040, GOO, 000 6,040, 600, 000 6, 040, 600, 000 6, 040, 600, 000 TITLE III-OPERATION AND MAINTENANCE , Operation and maintenance, Army 7, 048, 500, 000 6, 228, 389, 000 6, 137, 532, 000 6, 137, 532, 009 -910,968,000 -90, 857, 000 Operation and maintenance, Navy " 7, 665, 900, 000 7, 177, 915, 000 7, 140, 575, 000 7, 151, 175, 000 -514, 725, 000 -26,740,000 +10, 600, 000 Operation and maintenance, Marine Corps 457, 100, 000 451, 624,080 449, 284, 000 449, 284, 000 -7,816,000 -2, 340,000 Operation and maintenance, Air Force 7,855, 200, 000 7, 113, 254, 000 7, 077, 930, 000 7, 062, 030, 000 -793,170,000 -51, 224,090 -15, 900, 000 Operation and maintenance, Defense agencies 1, 881, 700, 000 2, 357, 375, 000 2, 350, 159, 000 2, 350, 159, 000 +468,459,000 -7, 216,000 Operation and maintenance, Army Reserve 281, 400, 000 279, 600, 000 273, 600, 000 276, 600, 000 -.4, 800,000 -3,000, 000 +3,600,000 Operation and maintenance, Navy Reserve 247, 900, 000 245, 200, 000 245, 200, 000 245, 200, 000 -2,700,000 Operation and maintenance, Marine Corps Reserve_ _ 11, 700, 000 11,700, 000 11, 760, 000 11, 700, 000 Operation and maintenance, Air Force Reserve 288, 800, 000 286, 680, 000 292, 580, 000 286, 680, 000 -2,120,000 -5,900,000 Operation and maintenance, Army National Guard 614, 900, 000 586, 500, 000 589, 500, 000 589, 500,000 -25,400,000 +3,000,000 Operation and maintenance Air National Guard 628, 500, 000 632, 500, 000 652, 500, 000 642, 500, 000 +14,000,0011 +10,000,000 -10,060,000 National Board for the Promotion of Rifle Practice 178, 000 178, 000 060,000 178,000 Naval petroleum reserve 6, 900, 000 81, 900, 000 56, 900, 000 69, 400, 000 --I 62, 500,000 -12, 500, 000 +12,500,000 Claims, Defense 54, 600, 000 54, 600, 000 54, 600, 000 54, 600, 000 Contingencies, Defense 5, 000, 000 5,000, 000 2, 500, 000 -2, 500, 000 +2, 500, 000 -2, 500, 000 Court of Military Appeals 1, 065, 000 1, 065, 000 1, 065, 000 ? 1, 065, 000 - Total, title III-Operation and maintenance 27,049, 343, 000 25, 508, 480, 000 25, 338, 303, 000 25, 330, 103, 000 -1,719, 240, 000 -178,377,000 -8,200,000 TITLE IV PROCUREMENT Aircraft procurement, Army 339, 500, 000 224, 300, 000 284, 200, 000 242, 800, 000 -96,700,000 +18,500,800 -41,400,000 Transfer from other accounts (7, 000, 000) (7, 000, 000) (7, 000, 000) (+7, 000, 000) Missile procurement, Army 459, 200, 000 416, 500, 000 416, 500, 000 416, 500, 000 -42, 700, 000 Transfer from other accounts (15, 000, 000) (15, 000, 000) (15, 000, 000) (+15, 000, 000) Procurement of weapons and tracked combat vehicles, Army 385, 300, 000 344, 800, 000 343, 500, 000 344, 800, 000 -40, 500, 000 +1,300, 000 Transfer from other accounts (3, 000, 000) (3, 000, 000) (3, 000, 000) (+3,000, 000) Procurement of ammunition, Army 1, 344, 800, 000 726, 500, 000 720, 200, 000 720, 200, 000 -624,600,000 -6,300,000 Transfer from other accounts (170, 000, 000) (170, 000, 000) (170, 000, 000) (+170, 000, 000) Other procurement, Army 786, 200, 000 669, 600, 000 689, 700, 000 681, 100, 000 -105, 100, 000 +11, 500, 000 -8, 600, 000 Transfer from other accounts (3, 1100, 000) (3, 000, 600) (3, 000;000) (+3, 000, 000) Aircraft procurement, Navy 2, 960, 600, 000 2, 814, 000, 000 2, 745, 200, 000 2,775, 400, 000 -185,200,080 -38,600,080 +30, 200, 000 Weapons procurement, Navy 833, 900,000 762, 000, 000 748, 600, 009 729, 500, 000 -104, 400, WO -32, 500, 000 -19, 100, 000 Transfer from other accounts (10, 000, 000) (10, 000, 000) (10, 000, 000) (+10, 000, 000) Shipbuilding and conversion, Navy 3, 562, 600, 000 3, 059, 000, 000 3, 140, 400, 000 3, 059, 000, 000 -503,600,000 -81,409,000 Transfer from other accounts (103, 600, 000) (70, 000, 000) (+70, 000, 000) , (+70, 000, OM) (-33, 600, 000) Other procurement, Navy 1,684, 500, 000 1, 602, 600, 000 I, 582, 600, 000 1, 582, 600, 000 -101,900,000 -20,000,080 Transfer from other accounts (20, 800, 000) (20, 800, 000) (20, 800, 000) (+20,800, 000) Procurement, Marine Corps 228, 800, 000 207, 800, 000 207, 800, 000 207, 800, 000 -21,000, 000 Transfer from other accounts (10, 000, 000) (10, 000, 000) (10, 000, 000) (+10,000, 000) Aircraft procurement, Air Force 3, 496, 600, 000 3, 190, 300, 000 2,705, 700, 000 3, 062, 800, 000 -433,8110, 000 -127, 500, 000 +357, 100, 000 Transfer from other accounts (76, 200, 000) (153, 600, 000) (153, 600, 000) (+153, 600, 000) (+77, 400 000) Missile procurement, Air Force.- 1, 610, 800, 000 1, 555, 200, 000 1, 518, 700, 000 1, 533, 700, 000 -77, 100, 000 -21, 500,000 +15,000, 000 Transfer from other accounts (5, 000, 000) (5, 000, 000) (5, 000, 000) (+5, 000, 000) Other procurement, Air Force 2, 071, 800, 000 1, 864, 400,000 1, 772, 000, 000 I, 776, 500, 000 -295, 300, 000 -87, 900, 000 +4, 500, 000 Transfer from other accounts (12, 600,000) (12, 600, 000) (12, 600, 000) (+12, 600, 000) Procurement, Defense agencies 102, 017, 000 102, 017, 000 , 98, 416, 000 98, 416, 000 -3, 601, 000 -3, 601, 000 Total, title IV-Procurement 19,866, 617, 000 17, 539, 017, 000 16, 973, 516, 000 17, 231, 116, 000 -2, 635, 501, 000 -307, 901, 000 +257,600, 000 Transfer from other accounts (332, 600,000) (513, 600, 000) (480, 000, 000) (+480,000, 000) (+147,400, 000) (-33,600; 000) TITLE V -RESEARCH, DEVELOPMENT, TEST, AND EVALUATION Research, development, test, and evaluation, Army 1, 985, 976, 000 1,831, 630, 000 1, 749, 152, 000 1,779, 339, 000 -206, 637, 000 -52, 291, 000 +30, 187, 000 Research, development, test, and evaluation, Navy__ _ _ 3, 261, 933, 000 3,065, 121, 000 2, 979, 612, 000 3, 006, 914, 000 -255,019,1100 -58,207,000 +27,302,000 Research, development, test, and evaluation, Air Force_ 3, 518, 860, 000 3, 377, 317, 000 3, 144, 460, 000 3, 274, 360, 000 -244, 500, 000 -102, 957, 000 +129,900, 000 Research, developmant, test, and evaluation, Defense agencies , 528, 700, 000 492, 057, 000 491, 057, 000 491, 057, 000 -37,643, 000 Director of Test and Evaluation, Defense. 27, 000, 000 25,000, 000 25, 000, 000 25, 000, 000 -2, 000, 000 Total, title V-Research, development, test and evaluation 9,322, 469,000 8, 790, 125,000 8, 389, 281, 000 8, 576, 670, 000 -745, 799,000 -213,455, 000 +187, 389, 000 TITLE VI-SPECIAL FOREIGN CURRENCY PROGRAM Special foreign currency program 2, 900, 000 2, 900, 000 2, 900, 000 2, 900, 000 TITLE VII-MILITARY ASSISTANCE, SOUTH VIETNAMESE FORCES Military assistance, South Vietnamese forces (1, 450, 000, 000) 622, 600, 000 700, 000, 000 700, 000, 000 +700,000,000 +77.400, 000 Transfer from other accounts (77, 400, 000) (-77, 400, 000) TITLE VIII-GENERAL PROVISIONS Additional transfer authority, sec. 834 (750, 000, 000 (750, 000, 000) (750, 000, 000) (750, 000, 000) TITLE IX-RELATED AGENCY Defense Manpower Commission 1. 100, 000 1, 100, 000 800,000 800, 000 -300.000 -300.000 New obligational authority 87, 057, 497, 000 82, 983, 570. 000 81, 584, 258, 000 82, 096, 297,000 -4,061. 200.000 -887.273,000 +512.039, 000 Transfers from other accounts (410 000.000) (513, 600. 000. (480, 000, 000) (+480, 000. 000) (+70. GOO. OW) ( -33, 600, 000) Total funding available 87. 057. 497. 000 83, 393, 570. 000 82. 097. 858.000 82, 576. 297. 000 -4, 481, 200.000 -817,273.000 +478.439,000 Transfer authority_ (750. 000, 000) (750, 000, 000) (750. 000, 000) (750, 000, 000) - _ Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 S 17448 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 CONGRESSIONAL RECORD SENATE September 24, 1974 MAJOR ITEMS IN THE OONFERENCE TITLE I-MIL/TARY PERSONNEL Mr. McCLELLAN. Mr. President, the conference agreed to restore the $61 mil- lion reduction made by the Senate in support and headquaters staffing trans- fers. The conferees agreed that, as the military become more efficient in the use of manpower, the savings must ulti- mately be passed on to'the taxpayer; however, they felt that fUrther study of specific changes in force structure Pro- posed by each service was needed prior to taking further action fo reduce man- power levels significantly. The conference also agreed to reduc- tions in terminal leave payments, supe- rior performance pay, and junior en- listed travel benefits as proposed by the Senate. TITLE IV-PROCUREMENT AIRCRAFT PROGRAMS The conference agreed to inelude $18.5 million for the 48 UH-1H helicopters for the Army as proposed by the Senate and delete $41.4 million for 19 CH-47C Army helicopters. A total of $118 million for 30 A-7E Navy attack aircraft is in- cluded in the conference 1 agreement as proposed by the Senate, instead of $130.7 million for 34 aircraft as proposed by the House. The conference agreement provides $429.4 million for 45 S-3A antisubmarine warfare aircraft as pro- posed by the Home instead of $385.8 million for 40 aircraft as proposed by the Senate. The conference agreed to in- clude $138 million for procurement of 25 A-10 close air support aircraft, which is midway between the 20- aircraft pro- posed for procurement by the Senate and 30 proposed by the House. 'The conferees also agreed on the appropriation of $328 million for six airborne warning and con- trol system aircraft and $42 million for advance procurement as proposed ha the House, instead of funding only four aircraft as proposed by the Senate. The conference agreed to provide $756.9 mil- lion for procurement of 72 F-15 fighter aircraft as proposed by the House in- stead of $690.7 million for'62 aircraft as proposed by the Senate. The agreement also provides $205.5 million for 12 F- 111F aircraft as proposed by the House, but deletes $15 million for advance pro- curement of future F-111%. I cannot emphasize more strongly that the conferees do not Intend to pro- vide any further funds Dor the F-111 Program unless it is requested by the ad- ministration and sufficiently justified before the proper congressional com- nsittees. SHIPBUILDING The conference deleted the $81.4 mil- lion provided by the Senate for a fleet oiler. The conference also agreed to pro- vide $70 million for escalation and cost growth associated with the procure- ment of two submarine tenders instead of the transfer of $103.6 nsillion as pro- nosed by the Senate. These two sub- marine tenders were funded in fiscal years 1972 and 1973, but the sums appro- priated are insufficient to construct them. The additional $70 million will be obtained by the cancellation of a de- stroyer tender, but the conferees indi- cated that if it is required, the destroyer tender can be included in the fiscal 1976 budget request. TITLE V-RESEARCH, DEVELOPMENT, TSST AND EVALV ATION AIRCRAFT DEVELOPMENTS For the Navy, the conference agree- ment provides $4.6 million for develop- ment of the F-401 jet engine instead of $21 million proposed by the House and no funds as proposed by the Senate. These funds are provided to pay only for prior year effort and the conferees agreed that further development should be de- layed until the Navy adequately justifies a requirement for this engine. The con- ference agreed to provide $20 million as proposed by the Senate instead of no funding as proposed by the House for the Navy VFAX fighter aircraft, but stipu- lated that the development program must make maximum use of the Air Force's YF-16 and YF-17 fighters, and indicated that future funding is to be contingent upon the capability of the Navy to produce a derivative of the se- lected Air Force air combat fighter de- sign. For the Air Force, the conference agreement provided $445 million for the B-1 bomber instead of $400 million pro- posed by the Senate and $455 million proposed by the House. The conferees also agreed to provide $2 million for the advanced tanker/cargo aircraft which may be required to keep our bomber force viable in the future. The conferees agreed to provide $210 million for the airborne warning and control system instead of $190 million proposed by the Senate and $219.7 mil- lion proposed by the House. MISSILE DEVELOPMENTS The conference agreed to provide $104.2 million for the Army's surface to air missile development program? SAM-ID, instead of $100 million as pro- posed by the Senate and $111.2 million as proposed by the House. The confer- ence agreement provides $118 million for the site defense antiballistic missile system. instead of $123 million proposed by the House and $100 million as proposed by the Senate. The conferees also pro- vided $2 million for the Pershing II mis- sile system, instead of $95 million as pro- posed by the House and no funds as pro- posed by the Senate. The conference agreement provides $27.7 million for the advanced forward area air defense sys- tem, instead of $30.7 million as proposed by the House and $24.7 million as pro- posed by the Senate. Of the total pro- vided, $18.2 million is for the short range air defense missile system. In the area of cruise missiles, the con- ference agreement provides $38 million for the Navy's strategic cruise missile, instead of $41 million proposed by the House and $31 million as proposed by the Senate. The conferees agreed to pro- vide $66.5 million for the Air Force air launched cruise missile instead of $61.5 million as proposed by the Senate and $71.5 million as proposed by the House. TITLE vo?sntrrsar ASSISTANCE SOUTH VIETNAMESE FORCES The conference agreed to appropriate $700 million for Military Assistance South Vietnamese Forces instead of $622.6 million in new obligational au- thority and $77.4 million by transfer as proposed by the House. GENERAL PROVISIONS The conference reached agreement on a number of language differences in the general provisions, providing as follows: For a reduction of 12,500 in military personnel stationed overseas, instead of 25,000 as proposed by the Senate and none as proposed by the House. That no funds may be used for site ac- quisition or construction of the conti- nental United States Over the Horizon radar system. The original Senate pro- vision had prohibited use of funds for development of this system. That no war materiels may be trans- ferred to any foreign country unless such transfer is specifically authorized by law. The Senate provision had also originally prevented the use- of funds for the pur- pose of stockpiling war materiels for equipment for Asian countries. Mr. President, I yield to the distin- guished Senator from North Dakota. Mr. YOUNG. Mr. President, I support- and concur in the remarks by the distin- guished chairman of the Committee on Appropriations (Mr. McCasanas) . Our conferees strongly supported the Senate position and sought to retain to the max- imum degree the position of the Senate on the specific- issues, as well as to main- tain the maximum reductions possible. The difference between the House bill and the Senate bill was approximately $1.5 billion. On balance the restoration of $478,439,000, approximately one-third of the difference between the two Houses, indicates strong support of the Sente's position. I am certain that the Senate is con- cerned that defense outlays have risen from $78 billion in 1968?when we were fighting a war in South Vietnam--to a request of over $85 billion in fiscal year 1975. The reason for this results primar- ily from the very heavy Impact that in- flation has had on the defense budget. Between 1968 and today's defense budget, military basic pay rates have more than doubled. Military allowances are up 41 percent. Civil service pay has risen 59 percent. The cost of supplies has increased 54 percent. These items have added $31 billion to the budget request. Another way of explaining this De- fense appropriations bill is to compare it in constant fiscal year 1975 dollars to past bills. In 1964 approximately $50 billion was appropriated bot When converted to fis- cal year 197f. dollars it would be approxi- mately $94 billion. In 1968, the peak year of the war in Vietnam, approximately $78 billion was appropriated but in today's dollars that would be almost $125 billion. In 1972 approximately $75 billion was appropriated which was the equivalent of $95 billion in fiscal year 1975 dollars. This was a reduction of $30 billion in buying power, personnel, goods and services. In 1075, this conference report before us today continues a downward trend in the funds available for defense. Overall this fiscal year 1975 appropri- Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Se''ptember 24, / "Iproved ROIROREIRMACIWatCONERDFSMAQUOR000700060018-4 S 17449 ations bill is less in constant dollars than the pre-Vietnam appropriations and since 1968 has been decining each year. Although in current dollars this is the biggest appropriations for defense in our history it will provide less purchasing Power. In fact, this appropriation bill will require the Department of Defense and the Armed Services to reevaluate and tighten their respective belts. This is particularly true in the area of research and development. However, the con- ferees believe that the vital programs contained in this bill will be preserved or continued as appropriate and that no high priority project or weapon system has been dealt a fatal blow. This bill reduces the budget request significantly, as the chairman has indi- cated, and will contribute to the reduc- tions in Federal expenditures requested by the President. Mr. President, I urge my colleagues to adopt this conference report. Mr. STENNIS. Mr. President, will the Senator yield to me very briefly? Mr. McCLELLAN. I yield. Mr. STENNIS. Mr. President, I com- mend and also thank the Senator from Arkansas and the Senator from North Dakota for the long months, in fact 12 months, of work, attention, and effort that they have put into this bill. They have had to go over and over and over the same instruments, the same weapons systems, the same political questions, the same hardware, and the Same manpower questions, all these months, and I know that they have already started work on next year's bill. I think few of us realize how much there is involved here. I think we all rea- lize that it is important. But they have done an excellent job and, in my opinion, the reductions have not cut into the bone and muscle of this military program, and the people of America can have the satis- faction of knowing, as I see it, that we do have a strong military protection, secu- rity or whatever name we may call it. I made a speech the other day of a general nature, but about our Navy, the naval power which we have, which has been unfavorably compared by some with the Soviet Navy. I think the facts are to the contrary. It is partly due very much to the work these gentlemen have done. Mr. McCLELLAN. I thank the distin- guished Senator from Mississippi. I do not think there is anyone in the Senate who is more familiar with the military, with its problems, its requirements, and the need for our support of it. He is also a very valuable member on the Appropriations Committee, and has given us his assistance as we mark up these bills. His advice and counsel are always very helpful to the distinguished Senator from North Dakota (Mr. YouNc) and myself. We value this assistance that the Senator has given. Mr. YOUNG. I, also, want to thank the distinguished Senator from Mississippi for his favorable comments. His advice and counsel all through these months was very helpful. I do not know anyone In the Senate who has tried harder to reduce military spending but, at the same time, to maintain an adequate defense than the Senator from Mississippi. He has been most helpful. Mr. THURMOND. Mr. President, will the distinguished Senator yield? Mr. McCLELLAN. I yield to the Sen- ator from South Carolina. Mr. THURMOND. Mr. President, I want to take this opportunity to con- gratulate the able distinguished chair- man of the Senate Appropriations Com- mittee, Senator MCCLELLAN, and the able ranking member of that cohunittee, Sen- ator YOUNG, for the hard work, the dedi- cation, and effective manner in which they have handled the defense appro- priations bill. The defense appropria- tions bill is one of the most important bills to come before the Senate. Some years ago it consumed?in fact, in 1968?about 42.5 percent of the budg- et. It is down now to about 27 percent of the budget. There is no piece of legislation that can mean more to the survival of Amer- ica than this defense bill. There are some items in here that some may feel are too low?and they probably are. There are other items that some may feel are too high. But I am pleased that these gen- tlemen have brought to the Senate a bill that we feel will protect the interests of America, and protect the survival of this country, and also that of the free world. I just want to express my high approval of their magnificent work. Mr. McCLELLAN Mr. President, I thank the distinguished Senator from South Carolina. I know he is one of those who believes strongly, as strongly as anyone in the Senate, that it is impera- tive that this country remain a first-rate power militarily. I certainly share his views. It is true that, in some instances, we may have cut a little too much, but we are under the compelling necessity in these critical times with respect to the condition of our fiscal affairs to make reductions wherever possible. I do believe, Mr. President, I say again, that we have struck a fair balance tak- ing all attending circumstances and conditions into consideration, and I hope this bill will be, and I believe the funds to be provided will be adequate to main- tain the deterrent that is necessary to make a contribution to the peace of the world. Mr. President, I yield to the distin- guished Senator from Massachusetts. Mr. KENNEDY. Mr. President, I am gratified to learn that the conferees to the fiscal year 1975 Department of De- fense Appropriations bill have agreed to retain the essential spirit, if not the exact wording, of my amendment to that bill: SEC. 850. No funds appropriated to the Department of Defense in this Act may be used to transfer war materials to any foreign country, unless such transfers are specifically authorized by law. As you know, the Department of De- fense, in its request for fiscal year 1975 funds, proposed to? procure $529.6 mil- lion of? weapons and equipment for the purpose of adding to the war reserve stockpile in anticipation of future South Korean, South Vietnamese, and Thai- land requirements in the event of war affecting those countries. Such a sum would have been in addition to the $517 million in weapons and equipment al- ready stockpiled by the Department of Defense for such purposes during fiscal years 1973 and 1974. This excess in the U.S. war reserve stockpile, which would have amounted to over $1 billion, presents, according to a July 17, 1974, GAO report, a situation whereby the excess could be transferred to foreign countries outside of the pur- view of the foreign military assistance ceilings as heretofore enacted into law. I have several questions to address to the manager with regard to his under- standing of the import of this section of the act. Is it the manager's uriderstanding that no funds in this act can be used to trans- fer war materials to a foreign country unless such a transfer is specifically au- thorized in some other act, such as the Foreign Assistance Act or the Foreign Military Sales Act? Mr. McCLELLAN. Yes. Mr. KENNEDY. In the absence of a specific authorization to transfer U.S. war materials to a foreign country, then no such transfer can be made? Mr. McCLELLAN. That is correct. Mr. KENNEDY. If the authorization to transfer U.S. war materials to a foreign country specifies that the costs of such a transfer?including the value of the ma- terials themselves as well as any inci- dental transfer costs?are to be charged to foreign military assistance accounts, or to some other accounts, then such a specification would have to be adhered to? Mr. McCT.RT,LAN. Yes. Mr. KENNEDY. And there would be no cost at all to the Department of Defense budget as appropriated in this act? Mr. McCLELLAN. Yes. That is right. Mr. KENNEDY. By the use of the lan- guage "specifically authorized," does this section mean that the transfer must be authorized on a country-by-country basis, or in a general sense? Mr. McCLELLAN. In a general sense. Mr. KENNEDY. Is it your understand- ing that the requirement for authoriza- tion to transfer U.S. war materials in- cludes any transfers, such as by cash sales, credit sales, guaranties, grants, loans and leases, excess, or scrap? Mr. McCLELLAN. That is correct. Mr. KENNEDY. Is there current legis- lative authority to transfer U.S. war materials to a foreign country under the various manners I mentioned above? Mr. McCLELLAN. There is. Mr. KENNEDY. Would you cite the provisions covering each of those manners? Mr. McCLELLAN. The Foreign Assist- ance Act and the Foreign Military Sales Act. Mr. KENNEDY. Is it your understand- ing that the $529.6 million in war reserve stocks which the Defense Department has proposed to procure this year, as well as the $517 million in such stocks pro- cured in prior years, are over and above the war reserve stocks requirements of U.S. active and reserve forces? Mr. McCLELLAN. No; the materials Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 S 17450 Approved ForReN9WERN9M9A1CREEIRIT9139giRM0700060,0151tmber $ /9 1-.4 are not identified within overall war re- serve material stockpiles Mr. KENNEDY. Would the chairman consider requesting that a distinction be made in the future between the United States and the requirements of potential allies? Mr. McCLELLAN. The General Ac- counting Office has been directed to make an in-depth study of the matter and re- port to the Committees on Appropria- tions in 6 months. The committee will explore the subject during its hearings on the fiscal year 1976 Defense budget. Mr. KENNEDY. I thank the chairman. 'UNWANTED WEAPONS XN erscsn YEAR Lava DEFENSE APPROPRIATIONS DILL Mr. PROXMIRE. Mr. Pmsident, there are two defense items remaining in this fiscal year 1975 Defense Appropriations bill that were not requested by the De- partment of Defense. There is a little over $100 million for 24 A-'7D attack aircraft and $205.5 nnl- lion for 12 F-111 fighter-bombers. )3y placing money in this bill for both these weapons, Congress hae once again turned a deaf ear toward requests for moderation and good sense. There is no justification for these air- craft to be in the budget. The Defense Department did not request funding for either plane. And yet for the second year running, the conference report turns out to have full funding for both aircraft. It is somewhat amazing to see how these two planes get full funding while other programs requested by the Pentagon are cut hack. The sense of priorities seems distorted at best. On August 7, I wrote the Secretary of Defense asking for a Clear statement that the Defense Department does not need these aircraft and that they were not requested. I told Secretary Schlesin- ger that I would try to remove these ap- propriations if I could get a strong state- ment from him that they were not neces- sary to the national defense. In place of a clear ariswer from the Secretary of Defense, I received a bu- reaucratic whitewash from the As- sistant Secretary on Defense John M. Maury. Mr. Maury wrote on August 10 that: There are specific categories in which we might have wished to see larger authoriza- tions and appropriations. He went on to say: While we concur in the high regard the Committee on Armed Services of both the House and Senate have for the F-111F and A-ID aircraft, we believe these aircraft to be of lower priority than a variety Of other programs included in our original request. Should the Congess desire to add funds for these aircraft, we would hope that this would not be done at the expense of pro- grams which, we consider of higher priority. For that statement, Mr. Maury should receive the bureaucrat of the year award. He could not even force himself to say that the Pentagon had not even re- quested funds for these two aircraft. Mr. President, I ask Unanimous con- sent that the letter from the Assistant Secretary of Defense be printed in the RECORD. One can only conclude; Mr. President, that once again Congress Will look the other way and not question the most obvious example of wasteful spending in the defense budget. There being no objection, the ]etter was ordered to be printed in the RECORD, as follows: ASSISTANT SECRETARY OF' DEFENSE, Washington, D.C., Aug. 10, 1974. Hon. WILLIAM PROXMIRE, U.S. Senate, Washington, D.C. DEAR SENATOR PROXMTIE: The Secretary of Defense has asked that I reply to your let- ter of August 7 regardi:ag funds for 5=111F and A-7D aircraft in the FY 1975 Appropria- tions Bill. With respect to the overall PT 75 Defense budget, there are specific categories in which we might have wished to see larger authori- zations and appropriations. However, in pres- ent circumstances, we believe it to be an austere, but prudent budget. While we concur in the high regard the Committee on Armed Services of both the House and Senate have for the F-111F and A-7D aircraft, we believe these aircraft to be of lower priority than a variety of other programs included in our original request. Should the Congress desire to add funds for these aircraft, we would hope that this would not be done at the expense of programs which we consider of higher priority. Thank you for your continued interest in the Department of Defense. Sincerely, JOHN M. MAIM. Mr. McCLELLAN. Mr. President, I move the adoption of the conference re- port on H.R. 16243. "The PRESIDING- OFFICER. The ques- Mon is on agreeing to the conference report. The conference report was agreed to. The PRESIDING OtaraCER. The clerk will report the amendments in disagree- ment. The assistant legislative clerk read as follows: ResolVed, That the House recede from its disagreement to the amendment of the Sen- ate numbered 7 to the aforesaid bill, and concur therein with an amendment, as follows: In lieu of the sum proposed by said amend- ment, insert: $66,800,000' Resolved, That the House recede from its disagreement to the amendment of the Sen- ate numbered 15 to the aforesaid bill, and conc.ur therein with an amendment, as follows: In. lieu of the sum proposed by said amend- ment, insert: $7,062,030 000 Resolved, That the House recede from its disagreement to the amendment of the Senate numbered 15 to the Aforesaid bill, and concur therein lath an amendment, as follows: In lieu at the sun-, proposed by said 'amendment, Insert: $7,062,030,000 Resolved, That the House recede from its disagreement to the amendment of the Senate numbered 28 to the aforesaid bill, and concur therein wits an amendment, as follows: In lieu of the matter proposed by said amendment, insert: CONTINGENCIES, DEFENSE For emergency and extraordinary expenses arising in the Department of Defense, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of -hecessity for e,onflderittal military purposes: $2,600,000. Resolved, That the Manse redede from lts- disagreement to the amendment of toe Siu- ate numbered 34 to the aforesaid bill, and concur therein with an amendment, as follows: In lieu of the sumproposed by said amend- ment, insert: $729,500,000 Resolved, That the House recede from ts disagreement to the amendment of the Senate numbered 88 to 'the aforess id hill, and concur therein with an amendment, as follows: In lieu of the matter proposed oy said amendment, insert: and in addition $70,000,- 000 for escalation and coat growth cn prior year prograras which shall be derived by transfer from "Shiplouilding and Conversion. Navy 1973/1977" Mr. McCLELLAN. Mr. President, I move that the Senate concur in the amendments of the House to the amend- ments of the Senate numbered 7, 15, 28. 34, and 38. The PRESIDING OFFICER. The ques- tion is on agreeing to the motion of the Senator from Arkansas. The motion was agreed to. Mr. McCLELLAN, Mr. President, yield the floor. ADMINISTRATION POLICIES TO- WARD THE OIL-PRODUCING CO NTRIES Mr. URMOND. Mr. President, yes- terday e administration addressed the very se ous implications of the unre- strained eonomic nationalism presently being ex bited by many of the oil-pro- ducing n ons. In sepa te speeches, President Ford, Secretary issinger, and Secretary Si- mon accu ely warned that the artifi- cial rigging if oil prices threatened the structure world security a,nc could bring disastr us consequences. Mr. Preside t, I fully share the grave concerns ex essed yesterday, and pledge my sup rt to the necessary ef- forts to meet th threat, not only to the economic surviv of the United States, but to the rest of e world. President Ford tated five prnciples which should be bodied in a compre- hensive energy ram for the world: increased productio decreased demand, cooperation between roducers and con- sumers. attention to poorer nations, and fair pricing. I en rse these princi- ples, and sincerely h e that negotia- tion, cooperation,-com mise, and com- mon sense will result in heir imrlemen- tation. A stable and bi g understand- ing of all concerned nett is essential? and it must be obtained n. Mr. President, I would e to add one point. The AmericanDeo e are willing to negotiate, to cooperat to compro- mise, to use common sens and to sac- rifice?to resolve the seve economic problems that face the U ted States and the world today. However, the American peo e Nill not stand idly by and watch our a: coun- try destroyed by economic bl lima% I caution all concerned nations recog- nize and remember that the aerie= k s people unite when their sec ty is threatened, and that they will Li se to meet any danger with. the appr nate action. Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 b443 ;e4e /6.,44f Approved For Releas_e_2Q05/0609 ? CIA-RDP75600380R000700060018-4 W NAL RECORD ?HOUSE HOUSE September -23 1974 iNC1K.ESS1.0 fe Tals and rescissions will be submitted to facto under c canxiot a stimulate further pre not o restraint unle does so. The responsible gressional appropria eral budget authorit though often contro e budget execution. Sc ?un principles and common sen Federal agencies spend mon deny fashion and only to the e essary to carry out the objec which the spending authority w vided. Current economic conditio quire extra care to assure that Fe spending is held to the minimum le necessary. The deferrals and rescissions describ in the attached report represent an sential step toward the goal of redu spending and achieving the bala d budget we seek by fiscal year 1976. "--?se actions, by themselves, will r./ be enough. Howeirer, failure to ta and sustain this important step wou jeop- ardize our ability to control ederal spending not only during the c nt fis- cal year but, more importantl or sev- eral years to come. GERALD . FORD. THE WHITE HOUSE, Septe? r 20, 1974. lie Congress soon. getary restraint remains a crucial n our -efforts to bring inflation trol. In today's environment, we w excess Federal spending to mand in a way that exerts res on prices. And we can- expecters to exercise necessary the Government itself ortionment of -)on- s and other Fed- an essential- 1?element of nanagement ictate that in an or- nt nec- es for pro- re- al CALL OF THE Mr. SCHERLE. Mr. the point of order that present. The SPEAKER. Evi not present. Mr. BRADEMAS. a call of the House A call of the Ho The call was ta vice, and the foll to respond: Anderson, Calif. Andrews, N.C. Armstrong Aspin Barrett Bell Biaggi Blatnik Boggs Brasco Breckinridge Brown, Ohi Broyhill, N Burgener Carey, N.Y Casey, Te Chishol Clark Clausen Don Clay Cochm Comb Conla Cony Cran Culv Day Ga. del arza Del s Di s Do D an fit Ec SE aker, I make quorum is not tly a quorum is Speaker, I move was ordered. by electronic de- ing Members failed o. 532] rdt ser Mall onzales ay unter Hanna Hebert Heinz Hicks Hillis Holifleicl Horton Hosmer Hudnut Shuster Johnson, Colo, Sikes Jones, N.C. Smith, N.Y. Leggett Snyder Lehman Spence McCloskey Stanton, McFall James V. McKay Steed McSpadden Steele Maraziti Steelman Michel Stephens Milford Symms Neclzi Taylor, Mo. Nichols O'Hara O'Neill Owens Patman Peyser Podell Powell, Ohio Pritchard Rangel Rarick Rees Reid Rhodes Rodin? Roe Roncallo, N.Y. Rooney, N.Y. Rooney, Pa, Rousselot Shoup Thompson, N.J. Tiernan Towell, Nev. Treen Widnall Wylie Van Decant' Williams Young, ca. Vigorito Wilson, Young, Ill, Waldie Char Wampler Cali The SPEAKE ?n this rollcall 324 Members have orded their presence by electronic d e, a quorum. By unanim consent, further pro- ceeding,s un the call were dispensed with. ANNOUN ENT BY THE SPEAKER The S AKER. The Chair desires to annou that the Chair is going to take unani ? s-consent requests, and then will tinue with the business of the Hon ROADBUILDING NOT INFLATIONARY (Mr. BRINKLEY asked and was given ermission to address the House for 1 mute, to revise and extend his remarks and include extraneous matter.) Mr. BRINKLEY. Mr. Speaker, under of September 20, 1974, President proposes rescissions and deferrals of $ 22,908,000. Included in the trans- porta ? item are Federal aid highways 1975 an nor programs, $4,370,090,000, and 197 ogram, $6,357,500,000, The assertion ade that release of these funds would highly inflationary and would have to offset by cuts in higher priority progra First, the inflat ry rationale is only one school of tho Another signifi- cant viewpoint is to contrary?that roadbuilding, being a s ductive factor, with tangible returns ng from such development, is not infia ary. Second, the case of pri les is best served when people interes are con- sidered. The unconscionable lay in completing the Interstate Syste as re- sulted and will result in unacc table lasses of human life upon our highways. I am opposed, Mr. Speaker, to these proposals. CONFERENCE REPORT ON H.R. 16243, MAKING APPROPRIATIONS FOR DEPARTMENT OF DEFENSE, FIS- CAL YEAR 1975 Mr. MAHON. Mr. Speaker, I call up the conference report on the bill (H.R. 16243), making appropriations for the Department of Defense for the fiscal year ending June 30, 1975, and for other Purposes, and ask unanimous consent that the statement of the managers be read in lieu of the report. The Clerk read the title of the bill. The SPEAKER. Is there objection to the request of the gentleman from Texas? Mr. GROSS. Mr. Speaker, reserving the right to object, at the proper time, I propose to offer a motion to strike out the funds in this bill for the F-111 plane. There is some $205 million provided for 12 F-111 planes in this bill, military air- craft that the Department of Defense does not want and has not wanted for 2 years. It would be unconscionable to provide $205 million in this or in any other bill for an aircraft that the Department of Defense does not want. Therefore, Mr. Speaker, I must object to the request of the gentleman from Texas in order to protect the motion to instruct the con- ferees. The Clerk read the statement. (For conference report and statement, see proceedings of the House of Septem- ber 18, 1974) . Mr. MAHON (during the reading) . Mr. Speaker, I ask unanimous consent that the statement be considered as read. The SPEAKER. Is there objection to the request of the gentleman from Texas? Mr. GROSS. Mr. Speaker, reserving the right to object, I assume that the gentleman proposes to take some time in order to explain the bill and that he will yield some time? Mr. MAHON. Mr. Speaker, will the gentleman yield? Mr. GROSS. I yield to the' gentleman from Texas. Mr. MAHON. Mr. Speaker, the answer is yes. Does the gentleman from Iowa wish to have some time? Mr. GROSS. Yes, I would like to have 2 or 3 minutes. Mr. MAHON. Mr. Speaker, I will be glad to yield sufficient time to the gentleman. Mr. GROSS. Mr. Speaker, I withdraw my reservation of objection. The SPEAKER. Is there objection to the request of the gentleman from Texas? There was no objection. The SPEAKER. The Chair recognizes the gentleman from Texas (Mr. MAHON). Mr. MAHON. Mr. Speaker, the confer- ence report before the House now in- volves an appropriation of $82.5 billion for the Department of Defense for the current fiscal year, the fiscal year which ends on next June 30. This bill is the result of the action of the House on the original bill, the action of the Senate on the Senate version of the bill and the action of the conferees. In view of the fact that my friend, the gentleman from Iowa (Mr. Gaoss), has made reference to the F-111 aircraft, I will make a brief reference at this mo- ment and further reference at a later mo- ment in regard to the F-111. The F-111 aircraft has been in produc- tion for a number of years. It is the only aircraft in production in the free world which is capable of performing a long- range bomber mission, although not as long-range as the so-Called B-1. The F-111 production line has been kept open for a period of years, and we propose to keep it open for another year. Mr. Speaker, there is no budget re- quest, as the gentleman from Iowa has pointed out, for the F-111. In the mili- tary procurement authorization bill, the Committee on Armed Services provided authorization for the F-111. The House Appropriations Committee followed the leadership .of the Committee on Armed Services and provided funds. The House of Representatives followed the leader- ship of the Committee on Appropriations and provided the $220 million-plus for the F-111. The Senate omitted funds for the F-111. In the House-Senate conference, the Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 September 28,197/, _ CONGRESSIONAL RECORD?HOUSE tions, wit Senate amendments thereto, disagree to e Senate amendbients, and agree to a ci erence with theSenate. The SPE R. Is there objection to the request s the gentlettian from California? Mr. GROSS. Speaker,, reserving the right to object, as unable to hear the title of the bill, his a request to go to conference or to curt The SPEAKER. To go a nisnference. Mr. GROSS. I withdra reserva- tion of objection. The SPEAKER. Is there the request of the gentleman fornia? The Chair hears not, points the following conferee: HOLIFIELD, MOORHEAD of Pennsy Sr GERMAIN, FUQUA, BORTOlf, W and BROWN of Ohio. ection to m Cali- d ap- essrs. ia, SOUTH KOREA SHOWS COMPASSIO IN COOPERATING WITH Ilia: UNITED STATES (Mr. WIGGINS asked anctwas given permission to address the *use for 1 minute and to revise and extend his remarks.) Mr. WIGCFINS. Mr. Speaker, approxi- mately 3 years ago the gentleman from California, Congressman Wainim, and myself traveled to Korea in carder to in- vestigate the circumstances Of two GI's who had been tried for Murder in a South Korean Civilian court, convicted and sen- tenced to death. Our investig ion at that time indicated that these tWo service- men were properly tried by the South Korean civilian court under the Status of Forces Agreement then in effect. We found that the trial was fairly conducted In accordances with the la vis of South Korea, but we felt that the Sentence of these two men was excessive, although lawful, in fhe circumstances that case. On appeal, the death sentence w commuted to life imprisonment. Since that time both the: gentle from California, Congressmen W and myself have been carrying on d sions with President Park and the ter of Justice of South Koreato early release of these two e Approximately 6 weeks a Park released one of the m man unfortunately having ural causes just a matter o prior to his contemplate This act, Mr. Spea Park of South .Korea, and was an act of American people, a edge publicly that ment President P and express my generous act o can people. s- nis- ct an cemen. esident the other ed of net- eral weeks ase. President nded to be endship to the want to acknowl- t. I wish to compli- for his compassion p appreciation for this endship to the Ameri- COMI ICATION FROM THE K OF THE HOUSE The AKER laid before the House the fo ing communication from the Clerk the House of Representatives: WASVIINGT011, D.C., September 20, 1974. HO CARL 4LRERT, S. ker, House of Representatives. asa. SPEAKER: I have the honor to ansmit herewith a sealed envelope from he White House, received in tale Clerk's Of- Approved For Release 2005/06/09 : CIA-RDP751300380R000700060018-4 lice at 12:10 P.M. on Friday, September 20, 1974, and said to contain a message nom the President wherein he transmits a message on Budget Rescissions and Defe^rals. With kind regards. I am Sincerely, W. PAT JENNINGS, Clerk, House of Re,oresentatives. By W. RAYMOND COLLEY. BUDGET AND IMPOUNDMENT CON- TROL ACT OF 1971,?MESSAGE FROM THE PRESIDENT OF TaE UNITED STATES (H. DOC. NO. 93-3(31) The SPEAKER laid before the House the following message from the Presi- dent of the United States; which was read and, together with the accom- panying papers, referred to the Commi tee on Appropriations and ordered printed: he Congress of the. United S s: e recently enacted Con sloths]. B et and Impoundment Co 1 Act cf 197 ovides new procedi or execu- tive rting and congr onal review of actis by the executi ?ranch affect- ing the of Federal iding. It there - by serves make Congress a full partner in e co uing struggle to keep Federal g under control. The new la vides that the execu - tive branch m k to alter the normal course of spe 'ther through defer- rals of spe ac s or by asking the Congress cind thority to spend. The use unds ma deferred unless either of the ress enacts a resol requiring tha hey be made avai e for spending. xecutive re- sc n proposals to take e t, the Con- must enact rescission Is within ys of continuous session. Following these procedures, today reporting the first in a series of rrals and proposed rescissions. As is often the case in the institut new procedures, and in the impleme tion of new laws, there are questions to what the law may require of the execa tire branch and what the Congress ma expect. In this instance, the Attorney General has determined that this act ap- plies only to determinations to withhold budget authority which have been male since the law was approved. However, I am including in today's submission to the Congress reports on some actions which were concluded be- fore the effective date of the act. While these items are not subject, in the At- torney General's opinion, to congres- sional ratification or disapproval as are those addressed in the recent law, I be- lieve that it is appropriate that I use this occasion to transmit this information to the Congress. Reasonable men frequently differ on interpretation of law. The law to which this message pertains is no exception. It is particularly important that the execu- tive and legislative branches develop a common understanding as to its opera- tion. Such an understanding is both in keeping with the spirit of partnership implicit in the law and essential for its effective use. As we begin management of statute, I would appreciate fur ance from the Congress. The formation on the status subject to Congressional made available with tin also permit a better status of some fun under the earli ing law. Virtually al in this repo 1975 budg before J came actio Ii II 445 gull- ded li- ds not n is being mind. It will tending of toe orted previouily oundment report- the actions included ere anticipated in the nd six of them were taken 2, when the new procedures effect. Failure to take these ould cause more than $20 bil- dditional funds to become axon- e or Obligation. The inixnediate re - e of these funds would raise Fade -al nding by nearly $1300 million in the current fiscal year. More significantly, outlays would rise by over $2 billion in 19'76 and even more in 1977, the first year hi which the new procedures for congressional review of the budget anil be in full effect. The deferrals of budget authority be- ing reported today total $19.8 billion. The major referrals are: ?Grants for waste treatment plant construction ($9 billion). Release of all these funds would be highly hi- flationary, particularly in view of the rapid rise in non-Federal spend- ing for pollution control. Some of the funds now deferred will be loted on or prior to February 1, 1975. ?Federal aid highway funds ($4.4 hit- lion for fiscal year 1975 and $6.4 nil- lion for fiscal year 1976) . Release of these funds would also be highly in- flationary and would have to be off- set by cuts in higher priority po- groms. Some of the funds are being withheld pending resolution of court cases concerning the environ- mental effects of proposed highway construction. ?Various programs of the Deptina merit of Health, Education, arid Welfare ($39.6 million). Fencing enactment of the 1975 appropna- tons, HEW funds are being pro- vided under a continuing resolution. Amounts available under the con- inuing resolution above the budget quest are deferred to preserve the ibility of the Congress and the stration In arriving at a final n on the funding levels for grams. of the two rescissions which would write off the 43456 et authority provided for d telephone loans at a t rate. The release of be inconsistent with ted in 1973, which of 2 percent loans ed. Loans to oor- specified criteria funds provided e Appropna- the The lar I am prop million of b rural electric 2 percent in these funds wo the legislation limits the availed) to cases of special rowers who meet can be financed out by the pending Agric tions Act. The deferrals and r ons covered In this first report are th lieved to be of particular interest to the gross and which would have significan pact on budget spending if released. ey are summarized in the attached ta A sec- of the Federal budget under this new ond report of a series on addit al de.. Approved_For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 September 23, 1974 CONGRESSIONAL RECORD? HOUSE House conferees supported the House position. However, in the conference, the funds provided for the F-111 by the House were reduced by about $15 million, and $205.5 million was approved by the conference. I will have more to say about that matter at a later moment in the discussion. I would like now, Mr. Speaker, to pro- ceed now to a discussion of the confer- ence report. I will discuss the F-111 at a later moment. Mr. Speaker, this conference report provides $82.5 billion for the Department of Defense. This is a decrease in the budget of almost $5 billion?to be more exact, $4.9 billion in new obligational authority, and a net decrease of $4.5 bil- lion, including transfers. The conference agreement which is before the House at this time provides $817 million less than the amount pro- vided by the House in the original ver- sion of this bill. It provides $478 million more than was provided in the defense appropriation bill when it was before the other body. The appropriation recom- mended in this conference report is $3,605,000,000 more than was made avail- able for the Department of Defense for comparable functions in the previous fis- cal year. The point is, however, that while there are $3.6 billion more in this bill than in the bill of last year, double digit inflation, More than 10 percent annual inflation, means that actually in constant dollars, so to speak, this? bill is below the bill of last year. - It is true that in the next Congress there will be $2 billion in pay increases which have been provided by law, which will be considered in a subsequent appro- priation bill. The House Committee on Armed Serv- ioes took a hard look at the national de- ftnse posture of our country. I think the Muse Committee on Armed Services is somewhat like the House Committee on Appropriations; we listen to the people in the Pentagon, we evaluate their judg- ment, and we sometimes reduce the funds they request, and we sometimes increase the funds they request. We in Congress have a very vital role in na- tional defense. The Constitution imposes that responsibility upon the Congress. We are by no means a rubber stamp for the Pentagon. We try to do, under our oath as Members of the Congress, what we consider to be in the best interest of the national defense of the United States, and we consider the requests of the De- partment of Defense very thoroughly. The Senate takes similar action. There were about 500 program differ- ences between the Senate version of the bill and the House version of the bill. In conference we discussed each and every one of these 500 differences in the pro- grams which had been approved by the separate Houses, and came to an agree- ment. In connection with this, Mr. Speaker, I shall provide for the RECORD appropriate tables showing what this conference re- port does, along with an appropriate nar- rative in regard to further information about the conference report. But I think what the Members want to know basidal- ly now is that the bill is less than it was when it was before the House. It is $4.9 billion below the budget. It is above the Senate figure in the Department of De- fense bill, and it is regarded by the conferees as being the best that can reasonably be done at this time for na- tional defense. It is unfortunately true that the great- est percentage of every defense dollar does not go toward modernization, does not go toward new weapons and ammuni- tion and new aircraft, and so forth; we just buy a handful of aircraft in this bill, relatively speaking, and relatively few modern weapons. Some 56 cents of the defense dollar is taken up in per- sonnel costs. This is partially the result of the all- volunteer force which was inevitable since the draft had been discontinued but, nevertheless, it is a fact of life that we are getting more and more in a de- ficiency position with respect to the mod- ernization of the military forces of the United States, and this situation cannot continue indefinitely. The Soviet Union is building up rapidly, more so than the United States. The Soviet Union has more intercontinental ballistic missiles than the United States. It could have more submarine- launched ballistic missiles than the United States is permitted under present agreements. We have more warheads, I agree, but we are in a very difficult sit- uation. The $82 billion that is included in this bill is a considerable sum of money. The necessity is certainly evident that we ought to find ways and means of bring- ing the arms race to a conclusion, or at least slow down the arms race. Of course, we are continuing the SALT talks, the strategic arms limitation talks. Some progress has? been made in that field. Other progress is anticipated, but until a realistic and acceptable slow- down of the arms race can be achieved, we have got to continue to provide the vast sums of money required to main- tain the defense posture of the United States. So it is not with apology that this bill Is presented. Mr. Speaker, I will take no further time at this moment. Under permission granted, I include a summary of the bill and certain tabula- tions: SUMMARY OF THE BILL MILITARY PERSONNEL A total reduction of $560,380,000 was made to the budget request for military personnel and related activities. The amount appro- priated is about $24 billion. The major issue before the conference was whether enlisted personnel in grades r--3. to E-4 should be provided full travel allowances. The travel allowances would primarily pay for the cost of moving the enlisted man's family when he is ordered to Make a permanent change of station move. The House conferees con- sidered this new entitlement with great care before deciding to recede and accept the Senate position?deleting the funds for this new entitlement. Our reasons include not only the cost aspect (8177 .millon had been requested), but that the number of de- H 9447 pendents in overseas areas would be in- creased substantially if the benefits were approved. In addition, the services generally obtained the needed number of new acces- sions in 1974, thus this new entitlement is not essential to the all volunteer force. A major point that we wish to make is that the substantial savings in the military personnel appropriation were made without significant strength reductions in this year's bill. For example, the Senate made a reduc- tion of $61 million in the personnel assigned to support and headquarters areas, but this was restored and the positions saved are to be assigned to combat units. Overall, over a $500 million reduction was made, yet we have made an end strength reduction of 20,000 or less. It is very difficult to estimate end strength because this occurs at one particular point in time (June 30, 1975). OPERATION AND MAINTENANCE A total reduction of about $1.7 billion was made in the requests for Operation and Maintenance. The amount appropriated is $25.3 billion, an increase of $1.4 billion over the prior year's appropriation. A major reduction in this appropriation resulted from the authorizing legislation re- duction of 32,327 civilian personnel positions. A total of $8.1 billion was requested for civil- ian personnel pay, and this was reduced to $7.7 billion. We wish to point out that the majority of the civilian employee positions deleted were not yet filled, thus there will not be any major reductions in force. Another major issue involved the Army's hometown canvasser program. This is a program in which enlisted personnel (can- vassers) are sent to their hometowns to re- cruit people who will generally be assigned to the canvassers own unit. This has been the most successful recruiting program that the Army has established. The House posi- tion prevailed and $8 million of the $10 mil- lion reduction made by the Senate was restored. The largest reduction in Operation and Maintenance is the $574.4 million transfer from Operation and Maintenance to the new title for support of South Vietnam. This reduction will have no impact on the U.S. forces. ? PROCUREMENT The conference agreement provides $17.7 billion for procurement of military hard- ware. This is about $2.2 billion less than the budget amount and $180 million above last year's appropriation. A larger portion a the reductions from the budget request was mandated by the authorizing legislation. The major actions of the conferees relative to the Army request include deletion of $41.4 million for CH-47 helicopters as proposed by the House, and restoration of $18.5 million for UH-1H helicopters which had also been deleted from the House bill. The conference agreement for Navy Pro- curement provides the entire $429.1 million for S-3A anti-submarine aircraft and no funds for the AH-1J helicopters as proposed by the House. A $30 million reduction in Fleet Satellite Communications was agreed to as proposed by the Senate. However, the RDT&E request for this program was in- creased by $15 million. The House position on the deletion of $81.4 million for an oiler was upheld. However, the House agreed to the transfer of $70 million required to fund the construction of two submarine tenders. The major Air Force procurement programs include $72.7 million for Maverick missiles, $138 million for 25 A-10 aircraft, $328.7 mil- lion for six AWACS aircraft, $756.9 million for 72 F-15 aircraft and $205.5 million for 12. F-111P aircraft. While some reductions were agreed to, none will require renegotia- tion of existing contracts. The original Sen- ate proposal would have required that a Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 II 9418 CONGRESSIONAL RECORD -? HOUSE September 23, 1974 number of major productinn Contracts be terminated and then ren.egoldrated. The House conferees contended that this would only in- crease the cost of the proper= and possibly even delay them. RESEARCH, DEVELOPMENT, -TEST, AND EVALUATIOH, The conference agreenientjarovides 68,516,- 670,000 for research, develcgiment, test and evaluation. This is $745.8 *Ilion below the budget request and $400 'Millen above the appropriation for last year The appropri- ation is $213.4 million below the bill as it passed the House. Of the -total reduction, over $400 million was made by the Congress in acting on the authorizing legislation. The conferees considered about 190 indi- vidual line items during the conference for the RDT&E appropriation alone. In total, more than 600 line item differences had to be discussed. One of the easier issues con- sidered was the Senate reduction of 455 million in the B-1 leambee program. The House conferees felt _that this action wohld seriously impact upon the 'ogram and *45 million of the Senate reduction was restored. The House conferees were successful in restoring the amount in tete House bill_ or the amount in the DOD redlama for major programs like the F-16A atrcraft, AWACS, Electroaic Warfare program .% in the Artily, and the F-4 Wild Weasel program. Most of the additional Senate redudions agreed to by the House conferees' were made to level of effort type technology programs. The con- ference agreement allows the Department of . Defense to reprogram funds into these pro- grams if neessary. MILITARY ASSISTANCE TO 'sou= VIETNAM By far, the most controversial item In the Defense Appropriation Bill this year is mill- tary assistance to South Vietnam. ThIs has been a major issue in Congress most of this year. Let me review with you what the budgetary situation is. In presenting the budget in January, the President requested a $1.6 billion program for military assistance for South Vietnam. He proposed to fund this with $1.4 billion in new appropriations and with carry-over amounts of $200 trillion. In the authorizing legislation, Congress re- duced tolls amount to $ t billion. In the ap- propriation bill, the Appropriation Corarnit- tee recommended the appropriation of the $1 billion authorized- in a new appropriation _which isolated and set aside the furies for assistance to South Vietnam in -a very spe- cific way and ended the procedure which had been followed for some years under which the Department of Defense couli provide as- sets of United States mlitary forces ta the -South Vietnamese. The new peacetime also terminated the availability of prior year ap- propriations for aid to Vietnam. On the House floor, an amendment by the _gentleman from Georgia, Mr. Flynt, was adopted which reduced the amount provided for military assistance to South. Vietnam to a total of $700 million of Which $622.6 million was in new appropriations and $77.4 Million was the reappropriation of unobli- gated funds from prior years. The Senate deleted the ,reapproprietion prior year funds and made an appropriation of $700 million in new oblIgational authority. The conferees agreed to the Senate amend- ment. Some of the, Members of the confer- ence from both Rouses expressed a desire to see the amount provided for Vietnam fur- ther reduced, perhaps to the $622 million amount of hew obligational authority pro- vided by the Nouse. Let me point out that Congress has dras- tically reduced the Administration's request for FY 1975 for military assistance to South Vietnam. The total amount oblige ed for support of South Vietnam in FY 1E78 was $2.2 billion. In FY 1974 the obligations totaled just over $1 billion. For FY 1 975 we are providing $700 _Million, Now, of the $1 billion provided in FY 1974, certain wnounts were obligated on a statistical basis for as- sistance actually provided in prior years. Tile total obligations in YY 1974 for current year programs was $675 million. However; we must not lose sight of the fact that in EY 1974 there was a consider- able pipeline from previous fiscal years of goods delivered to South Vietnam. It is esti- mated that $990 million in actual delivertee of goods and services was made in FY 1974 and that in 1975 approximately $863 million in deliveries will be provided. We have an actual reduction of more than $100 million and when you consider the rate of inflation, we had a sizeable reduction in actual WELT materiel. DEFENSE APPROPRIATION 13111. 1975-SUMMA1Y OF APPROPRIATIONS 'Amounts in thousar ds of dollars] Functional title Appropriation, iscal year 1974 (new valuational euihorIty) Revised budget estimate, fiscal year 1975 (new obligational authority) Passed House Passed Senate Conference action compared with- Conference 1974 Budget action appropriation estimate Rouse Senile Title f -Mil Rai,/ personnel Title II-Retired military personnel Title III-Operation and maintenance__ ,,,.. Title IV-Pracureeent Transfer from other accounts Title V-Research, development, test, aneevaluation_ _ Transfer from other accounts Title VI-Special foreign currency program Title WI-Military assistance, South Vietnamese forces Transfer from other accounts_ Title 4111-General provisions (additielial transfer authority, sec. 834) 025, MO) Title IX-Related agency-Defense Manower -Coin- mission 400 24, 183, 264 5, 150, 700 923, 702 030, 922 4499,800) 0-175, 688 2, 600 (1,018100) Total, Department of Defense (N04) 78, 467, 446 Transfer from other accounts (503, SOO) Total funding available 70,970, 746 Transfer authority .4625,000) Distribution by organizational componen4_ Army - 246660, 497 Transfer from other accounts (232, 550) Navy 260 73,264 Transfer from other accounts /156, 86e) - - - Air Force 24,428, 492 Transfer from other accounts_ (114, 000) Defense agencies/OSI) 8,153, 603 Retired military personnel 5,150, 700 Military assistance, South Vietnamese forces (1, 018, 000) Transfer from other. accounts_ _,,,., Related agency-Defense Manpower Commission__ 400 Total, Department of Defense (NOSt 78,167, 446 Transfer from other accounts__ 03, 300) Total funding available 370, 746 Transfer authority 25,000) Mr. MILISHALI, of Ohio, Mr. Speaker, the brief outline the distinguished chair- man of the Defense Subeinnmittee and the Committee on Appropriations has given concerning the conference on this year'S defense bill has hit the high spots of what I think was a very successful 24, 774, 468 6, 040, 600 27, 049, 343 19, 866, 617 9,322,468' Z900 (1,458,000 24, 478, 748 6,040, 600 25, 50e8 480 17, 5390l7 (332, 600) 8,790, 125 2,910 622,600 (74400) 24, 138,353 6, 041V600 25, 330,303 15, 973,116 (513.600) 8, 389,281 2,100 700,4100 21, 214, 108 f,040, 600 21,330, 103 11,231, 116 (486,000) 8,576, 670 2,900 700,000 +30,244 +889, 900 _ +1.406, 401 +200,194 (-19,800) -1-400,812 (-3,500) +300 +708,000 -560,380 -I, 719, 240 -2, 635, 501 (+480, 000) -745,799 +700,000 -264,640 -178, 377 -307,901 (+147,400) -213,455 +77,400 (--71,400) 75, 250 -3, 200 +25 /, t011 (--33, 600) +10/.399 (750, 000) (750, 000) (750,000) (750, 000) (+125,000) 1, 100 1, 100 100 800 +400 -300 -300 87, 057, 497 82, 983, 570 81, 584,258 82,096, 297 -1 3,628,851 -4, 961, 200 -487, 273 +512,039 (410, 000) (513,600) (480, 000) (-23, 3130) 4+480, 060) (+70.000) (--33,601) 87, 057, 497 83, 393,570 82, 097,858 82, 576,297 +3,505, 551 -4, 481, 200 -117, 273 +478, 439 (750, 000) (750, 000) (750;1160) (750, 000) (+125,000) 22, 321,454 20, 342,410 20, 113,175 20, 121, 412 -537,085 -2,198,042 --,218, 998 -1-10, 037 (198, 000) (198,000) (198, 000) (-34,900) 4-1 198, Me 28, 797, 959 27, 240, 652 26, 973,8.13 26,985, 295 +911,541 -1, 812,664 -.2.55,351 -1-11,652 __ - .24.3, -46-2 (40, 800) (144,400) (110, 800) (-46,000) _(+110, 800) (+70.000) (-33, 600) ii, 25, 702,194 24, 727,443 25,220, 493 +792,001 -2,072,909 -481, 701 +192, 8i3O (93, 800) (171,2o0) 171,200) (+57,200) ( 1 I n, 200) (+77, 400) 2, 602, 982 3,034, 014 2, 028,197 3, 025, 697 +872,094 +422,715 - 8, 317 -2, 510 6, 040, 600 6, 049, 600 6, 040,600 6, 040, 660 +889, 900 (I, 450, 000) 622,600 700,000 70,0000 +700,000 -4-700,000 +17,800 _ _ _ . (7/, 400) (-71,400 1, 100 1, 100 800 800 +400 -31) -300 87,057, 497 82, 983,570 81, 584,258 82 096, 297 +3,628,851 -4,961, 200 -187, 273 +5,12,039 (410,000) (513,900) 2480, 000) (-23,300) (4-480, 000) (+70,000) (- 33, 600) 87, 057, 497 83, 393, 570 82,097. 858 82, 576, 297 +3,605, 551 -4,481,200 -817, 273 +478, 439 (750, 000) (750,000) (750,000) (750, 000) (+125,000 conference. I do not have to remind the Members of the House-and I think most of them have served on confer- ences-that the conference action is as a result of compromise, a little push, a little pull, a little take, and a little give. At all times when we compromise, Just by the nature of the notion, it is not, sat- isfactory to either side. But I think in this case after spetding 2 full clays in conference with the distinguished /Amu- bers of the other body, we have come up with what I believe, as I said earlier, Is a very satisfactory conference report Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005/06/09 CIA-RDP75B00380R000700060018-4 September 23, 1974 CONGRESSIONAL RECORD ? HOUSE 9119 There are certain facets of it that do not please me. I am certain there are other parts that do not please some members of the committee. I know that some objections will be brought out here this afternoon by some of my distin- guished colleagues on the House side, and I respect these people for their views. They have a right to be heard, but we are limited in our time today to 1 hour. We have consumed nearly one-sixth that time already by just outlining the high spots. But I certainly hope in its wis- dom the House will go along with this conference report and not move in any drastic direction to disagree from what we have agreed to in conference with the other body. Mr. DENNIS. Mr. Speaker, will the gentleman yield? Mr. MINSHALL of Ohio. I shall be glad to yield to the gentleman from In- diana. Mr. DENNIS. I thank the gentleman for yielding. I ask this question, or make his re- mark, not in any critical sense but in a sense of concern. We have the same thing, of course, every year, and I never hear anything different. What, if any- thing, is anybody contemplating doing at any time in the future about the sit- nation where almost 60 percent of this $82 billion buys nothing but personnel? I, frankly, wonder how long we can keep on doing that. I just wonder if anybody has given it any real thought leading to possible action in the future. Mr. MINSHALL of Ohio. I do not have to remind my colleague, the gentleman from Indiana, that one of the reasons for the cost of personnel is that we are trying to employ an all-volunteer force. To combat that, we are cutting down on our civilian personnel in Defense. We are cutting down a small amount of the mili- tary, personnel in this bill, and even- tually we hope to get it down to a more reasonable percentage than this bill presents. Mr. DENNIS. If the gentleman will yield further, I realize that problem, and I voted for the volunteer force and I voted for the pay raises. I am not wiser than anyone else, but it bothers me. Every year we get the justification that more than half of this does not buy us any more hardware, and look at the Rus- sians. Where does it end? Where do we go from here? Mr. MINSHALL of Ohio. The gentle- man says it bothers him. 1 bothers all of us, especially on the Defense Appropria- tions Subcommittee. The Department is making a new study of the entire military personnel on the compensation require- ments, and I hope in the not too far distant future we can come up with a more reasonable personnel ratio to hard- ware than we have in this bill. Mr. CEDERBERG. Mr. Speaker, will the gentleman yield? Mr. MINSHALL of Ohio, I yield to the gentleman from Michigan. Mr. CEDERBERG. I thank the gentle- man for yielding. They are very simple facts, I will say to the gentleman from Indiana. There is not any solution except going back to the draft and paying recruits $75 per month instead of paying $400. So if we want to go back to the draft in order to reduce the amount, that is the only way I know. Mr. McCLORY. Mr. Speaker, will the gentleman yield? ' Mr. MINSHALL of Ohio. I will be glad to yield to the gentleman from Illinois. Mr. McCLORY. I thank the gentleman for yielding. I have a matter that relates to this re- port. It is one of great concern to the Kleinschmidt Corp., which is located in Lake County, a large part of which I represent. A great many of the personnel employed at Kleinschmidt reside in my congressional district. There they are manufacturers of teletypewriters? known by the Department of Defense as , forward area tactical typewriters, FATT. The funds for this equipment were origi- nally deleted. and then reinserted with the requirement that there should be competitive bidding. I understand Klein- schmidt is the only present manufac- turer. Several of the other earlier con- cerns that developed similar equipment have dropped out of the field. Klein- schmidt has continued its research and development, and is now producing a most sophisticated and vital product. The only question is, with the com- petitive bidding, will the competitive bidding take place at an early enough date so that they will have a chance to bid and stay in business; because if there are substantial delays, it could be very detrimental. I think maybe the gentle- man from New York (Mr. STRATTON) has some comment on that. Mr. STRATTON. Mr. Speaker, will the gentleman yield? Mr. MINSHALL of Ohio. I yield to the gentleman from New York. Mr. STRATTON. I thank the gentle- man for yielding. I am glad the gentleman raised that point because this is one I have been interested in too. I have been in touch with the Army Materiel Command this morning on this very matter. I am very disturbed by the wording contained in the conference report that says that we have got to have competitive bidding on this teletype equipment. The Army Ma- teriel Command presently tells me that our troops in the field have teletype equipment that was first developed in 1950 and 1952. It is wearing out very badly. They had planned to award a con- tract for the production of new equip- ment on the first of October. As the gen- tleman says, this -new equipment will come from Kleinschmidt. If this requirement for competitive bidding is insisted on then our troops in the field will not get this new equipment for 4 more years. It will not get into the field until 1981 or 1982. I think it is a serious mistake for the conferees to put this kind of wording into a report and thereby tie the hands of our forces for modern communications equipment by a period of 4 years. Mr. McCLORY. Mr. Speaker, will the gentleman yield? Mr. MINSHALL of Ohio, I yield to the gentleman from Illinois. Mr. McCLORY. I think the gentleman has explained it more eloquently than I could, the precise problem that is in- volved here. I 'hope the interpretation of the language in the conference report will be such that there will not be any of these delays. It would seem to me quite inconsistent with the Defense Depart- ment's needs to delay bids on a contract for FATT until some other concern which is not now producing teletypewriters may decide to enter the field. Delays beyond a few months would be detrimental to the Defense Department and perhaps critical as far as Kleinschmidt is concerned. Mr. WHITTEN. Mr. Speaker, will the gentleman yield? Mr. MINSHALL of Ohio. I yield to the gentleman from Mississippi. Mr. WHITTEN. I appreciate the prob- lems of my colleagues who have military facilities in their areas or even contracts. This is one of the problems that we are going to have from here on and one that everybody is going -to be faced with. I think one of the greatest problems we have in the committee is the temptation to have source procurement, which is putting it in somebody's particular dis- trict. After World War II, I remember the Secretary of the Army said he had pump-primed the country by purchasing $100 million worth of trucks. We had trucks running out of our ears in this country; so this is the biggest source of waste in the military. While I can appreciate the interests of our friends and many others here, I think we have to insist that we have competitive bidding on all these items. I will tell the Members, when we have competitive bidding, it often speeds up the total time used from start of devel- opment to completion of production, I will tell the gentleman that the- extra time taken to complete this contract will be closer to 4 months than 4 years. Mr. McCLORY. If the gentleman will yield further, let me say I am not oppos- ed to competitive bids; but with respect to this equipment, there are four differ- ent companies which no longer have the ability to bid on this. If we are going to hold this period open for inviting bids for 2, 3, or 4 years in 'order to en- able somebody else to develop their own capabilities, I think we are doing a disservice to our military as well as to a legitimate and worthy supplier. If we are going to to be able to have competi- tive bids ready within a month or two, then I say that is fine, why not have competitive bids? Mr. STRATTON. Mr. Speaker, will the gentleman yield? Mr. MINSHALL of Ohio. I" yield to the gentleman from New York. Mr. STRATTON. Actually, the situa- tion is not as bad as the gentleman from Mississippi has indicated. Kleinschmidt has been developing this particular type of teletype equipment. As I understand it, nobody else ever came up with any proposal that came close to meeting the Army's needs. The money in this bill is not intended to finance final production. Rather it is to finance pre- liminary production, to get some prelimi- nary production going, in other words, to see whether the promises of the de- velopmental phase are carried out in pro- duction. Then later on, if the Army Approved For Release 2005/06/09: CIA-RDP75600380R000700060018-4 H 9450 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 CONGRESSIONAL RECORD --HOUSE September 23 wanted to go into open bidding, the prin- ciples mentioned by the gentleman from Mississippi would apply. But, we cannot realistically expect to get a new conipany in now to do the production of something which another company has developed ind hope to save either time or money. We are just going to louse up the whole procedure, in a. product which our NATO forces desper- ately need. Mr. McCLORY. The gentleman is ttb- solutely correct. This is not an item of standard equipment In inev sense at all. Kleinschmidt has been making FATT for the military; they have developed very sophisticated techtdques and ad- vancements and ireprolitements which have been to the benefit of the military, and this respected concern wants to con- tinue to carry on in that area. Mr. WHITTEN. Mr. Speaker, will the gentleman yield? Mr. McCLORY. I yield to the gentle- man from Mississippi. Mr. WRITTEN. Mr. Speaker, I started on this committee in 1943, and one of the problems we had then was the one which seems to be described right here now. Research and development funds should be used to develop these items. If we contract with one company to develop plans and spectlications, they in turn are obligated to turn it over to the Defense Department so that tlaey can have competitive bidding. This is a $300 or $400 million contract, but I can see why they are trying toget their hands on it. In doing it, we are throwing a whole lot of money down the drain when If we do not complete this award and we are going to have to find more money when it is scarce. Mr. McCLORY, We are talking about $15 million. Mr. WHITTEN. That is just the start of it. It will be $300 or $400 million. Mr. McCLORY. If there is no delay no problem should occur. If there is delay I think the Kleinschmidt Co. may go out of business, and of coulee that would be bad. Mr. WRITTEN. I do not know how far we can go in keeping conabanies in busi- ness. That is one of the biggest prob- lems we will have in scaling down the Defense Establishment and getting back to defense. (Mr. McCLORY asked and was given permission to revise and extend his remarks.) Mr. MENSHALL of Ohio Mr. Speaker, I understand the problem of the gentle- man from Illinois. He talked to me earlier about it and expressed rightful concern. At the same time, I think the con- ferees were correct on Insisting upon competitive bidding. I only hope the Army can get the contract out for com- petitive bids before the company goes out of business. Mr. MAHON. Mr. Speaker, I yield 5 minutes to the gentleman from Con- necticut (Mr. Gieneo). (Mr. GIAIMO asked and was given permission to revise and extend his remarks.) Mr. GIAIMO. Mr. Speaker, I was member of the conference-committee on this legislation, and I objected and re- fused to sign this conference rep art- I think the Members should understand my main reason as to why I felt that I could not in good conscience sign this conference report. I was displeased with the fact that the conference committee added, in my opinion, $77,400,000 in additional mili- tary aesistance to South Vietnam, and that the conference committee continued the war reserve program, which totals about a half billion dollars a year. I think these actions were mistakes. These however were not my reasons for failure to sign the conference report, although I was dissatisfied with the con- ference committee's decisions in these areas. The real reason for my refusal to sign the conference report is that I can no longer in good conscience vote for a Department of Defense appropriation which includes in it concealed funds? concealed funds for the operations of the Central Intelligence Agency, and possibly other agencies. I think the American people ought to understand clearly that what we are voting on here today is an appropriation bill for the Department of Defense which has in it CIA funds we do not know about. Neither the American people nor we here in the Congress know about these unknown amounts of moneys whichlund covert intelligence operations of the CIA. We just do not know. We are not privy to this information. In my opinion, this is no way for us to assume our responsibilities as Congress- men. This concealment is not fair to the American people, it is not fair to the Congress, and in fact, it is not fair to the Department of Defense itself. Neither I, as a member of the DOD ? Subcommittee on Appropriations, nor any Member of the House, with the ex- ception of a select few Members whose identity itself is uncertain to me, is privy to where in the budget these funds are. what they are supposed to be used for, and the total amount of these funds. I am demanding, as I think all Mem- bers must demand, better disclosure of the amount of funds requested for the CIA and other similar agencies, as well as the nature of these budget requests, and I demand better proposals for proper accountability for the use of these funds. We cannot any longer tolerate the con- cealment in appropriations of this kind, and while we insist on this accountability to the Congress and to the American-peo- ple, I think it is time that we also ask the greater question: Can and should the United States, both morally and diplo- matically, continue to employ covere in- telligence operations that work to overthrow governments philosophically and operationally dissimilar to ours, using methods that rely on intrigue and stealth and perhaps guerrilla warfare to conduct the foreign policy of the United States? I think it is shameful, and I think the time has come to terminate it now. Therefore, I intend to vote against this appropriation today. Mr- YATES. Mr. Speaker, will the gentleman yield? 1914 Mr. GIAIMO. I will be delig? o yield to the gentleman from Illinoe Mr. YATES. I commend the gentle- man for his very constructive speech The genineman is a member of the De- partment of Defense Appropriations Subcommittee, and we are informed that the funds for the CIA appromialion are In that budget. Mr. GIAIMO. But I cannot del errr ire where they are. Mr. YATES. Was there any gre.een- tation made of cm funds to the gentle- man's subcommittee during the hear- ing? Mr. MALMO. No: they have not been. In all fairness, I am told that if I want to-know where the funds are, they would tell me, but they wouldtell me in secrecy and then no one else In this Cengreee would be entitled to knew. Mr. YATES. Does the gentleman know whether there is a review by the Depart- ment of Defense Appropriations Sub- committee of the activities of the CIA? Mr. GIAIMO. I cannot tell the gentle- man that. I understand that we have a committee 'within our committee, but I am not even priiw to this information. I understand that certain ranking mem- bers of this subcommittee are involved with the CIA. What they do and do not do, I do not know; but I do know this: Recently there has come out in the newspapers the story about our involve- ment, the CIA involvement, in Chile. I assume that was done with funds from this appropriation or appropriations similar to this. I find this outrageous, and I say that the time has come when we must stop this type of activity in the United States, this secret type of ac- tivity. Mr. McKINNEY. Mr. Speaker, a could not agree with my colleague from Con- necticut (Mr. ammo) more. I fled the conference report on DOD's appropria- tion unacceptable. The reasons to me are so clear the t I will simply express them here in a lim- ited outline. I am appalled that at a time in our Nation's history when we are tailing of nothing but cutting the budget, that this budget should be so high, almost one- third of the future budget of the jnitEd States. Where is the increase of pro- ductivity in our military? Where r re the plans for efficieney and cost et, tting ? Why are there more ranking office n now than in World War II when we had six times the amount of men under arms? Mr. Speaker, the Nation wanes de- fense, but it wants intelligent defenes, the best at the loweet cent. The Deleme Establishment must be required to share equally with the rest of our Goverinneat in tightening its belt. I also agree with Mr. GIAIMO that it is unconscionable that we must vote out a spending bill filled with hidden money for the CIA. Incredible, particularly at this time when terrible charges are leveled that our Government, through this agency, was not just gathering in- telligence but in many *stances in fact subverting and tryine to overthrow the governments of foreign nations with whom we diaagree. We certainly need an intelligence arm Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 September 23, 1974, CONGRESSIONAL RECORD ?HOUSE and I would hope one of the best. We are not a nation, however, with a his- tory of fifth column sabotage. I do not even think that we need to know where in essence the money is being spent, we certainly do not want to tele- gragh our actions to the Russians, but every Member of Congress has a right to know what type of operation the CIA is involved in, and they certainly have a right to know the gross amount they spend. In essence, I do not find that the con- ferees have made any effort to give Americans the best defense for the least amount of money. Nor can I see where they have given the American people the amount of oversight that I feel they have every right to. Congress is not going to make its ob- jective of $300 with a cut of this size in the Defense Department. And the tragedy is that we are not talking about defense production jobs, because modern defense weapons would in fact make our defense cheaper and more productive per dollar. What we are talking about is waste, du- plication, and the necessity for all branches of Government to show equally in austerity. Mr. MAHON. Mr. Speaker, we, of course, do not want to telegraph to the Kremlin the innermost secrets of the U.S. Government. Members of Congress who need to know should be provided with informa- tion with respect to the CIA and will be provided-with information, upon request; but the law provides the procedure for keeping this type of information secret. We cannot give it out wholesale to the American people without giving it to every other nation in the world. Mr. FLYNT. Mr. Speaker, will the gen- tleman yield to me? Mr. MAHON. I yield such time as he may consume to the gentleman from Georgia. Mr. FLYNT. Mr. Speaker, I thank the chairman. As one of the conferees on the conference report and as one of the man- agers on the part of the House, I signed the conference report, with certain reser- vations which I have set forth. Mr. Speaker, I have special exceptions and reservations as to amendment No. 47 because I feel that it increases title VII of the bill by $77.4 million. In addition, there is the possibility of transfer au- thority in another section providing for stockpiling of war materiel in an unspeci- fied amount and which would substan- tially increase the dollar volume of mili- tary assistance, South Vietnam, contrary to the expressed mandate of this body. Overall, while I am pleased that the conference report reflects a reduction of $4.481 billion under the amount which the administration requested in its budget, I would have preferred a further reduction of $3.605 billion, and I believe that such further reductions could have been made by the deletion of certain un- budgeted items which were added to the bill and by further reducing many budgeted items. Mr. Speaker, residents of my district are becoming increasingly aware of the extra use of military aircraft, carrying one or two passengers on nonmilitary missions. During a period when- there are widespread calls from the man on the street to the White House for fiscal re- straint, many people are beginning to question the validity of what they believe to be unnecessary special air missions and courier service for and to individuals who hold no official position with the U.S. Government. I wish that this cpn- ference report contained prohibitions against such excursions. I hope that next year's DOD appropriation bill will con- tain such a provision. The use of high performance military aircraft on long distance flights to fly unofficial personnel cannot be justified when such flying time reduces the number of authorized flying hours for training and operations pur- poses. Mr. Speaker, I agree with much of what was said earlier by the gentleman from Connecticut (Mr. Gitamo) . I do not propose that classified information be released on an unrestricted basis, but I do believe that the appropriate congres- sional committees should exercise more control and oversight of certain agencies of Government. Mr. Speaker, we have been told that we should expect an increase in annual budget requests for the purposes covered by this conference report of more than $6 billion in order to keep even with the appropriation for the previous fiscal year. This statement if true is all the more reason why we need to exercise more and more fiscal restraint in the battles against inflation. This is true not only in this appropriations bill but in each and every appropriations bill which we report. With some reluctance and several reservations, I Shall vote for this confer- ence report. Mr. JONES of Oklahoma. Mr. Speaker, will the gentleman yield for a question? Mr. MAHON. I yield to the gentleman from Oklahoma for a question. Mr. JONES of Oklahoma. Mr. Speaker, I thank the chairman of the committee for yielding for the purpose of asking a question. Relative to the strategic bomber pene- tration program, $5,504,000 is provided by the conferees instead of the $10.6 mil- lion provided in the House bill. How much Is included for the advanced strategic air launch missile technology project? Mr. MAHON. Mr. Speaker, I will say to my friend, the gentleman from Okla- homa, that we do not have a firm figure as yet on the amount for this one project. However, the committee strongly sup- ports the advanced strategic air launch missile technology project in which the gentleman is interested and understands that the majority of the funds provided in this bill will be used for it. This in- cludes complete support of the long-range flight test program which I believe the gentleman is concerned about. Mr. JONES of Oklahoma. Mr. Speaker, I thank the gentleman for yielding. Mr. WYMAN. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from New Hampshire. Mr. WYMAN. Mr. Speaker, I thank the gentleman. With regard to the statement which 11 9451 was just made concerning the CIA and the necessity for not telegraphing our action to the Kremlin as to how this issue is to be handled and exactly what the United States is doing in regard to counter-intelligence activities, I would like to ask the gentleman this: Do we not have within the Committee on Appropriations a subcommittee of members that handles the CIA and to which the CIA reports and which does know exactly how much money is in this Joill for the CIA? Mr. MAHON. The gentleman is cor- rect. Mr. 'WYMAN. Therefore, there are re- sponsible Members in this body who are aware of such matters, and if they are out of order or if they are wrong, those Members would have an obligation to tell us? Mr.' MAHON. The gentleman is cor- rect. Mr. MONTGOMERY. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Mississippi for a question. Mr. MONTGOMERY. Mr. Speaker, I thank the gentleman for yielding. I have two questions pertaining to the Air Guard, if the gentleman will be so kind as to help me with answers to these questions. As I understand it, in the bill before the Congress today there are 24 A-7 air- craft funded and they are earmarked for the Air National Guard; is this cor- rect? ?Mr. MAHON. The gentleman is correct in his statement. Mr. MONTGOMERY. Mr. Speaker, I would like to commend the chairman of this committee. This is the first time that I have known about that any new aircraft has been funded for the Na- tional Guard. Usually they get handed down to them. I certainly wish to com- mend the chairman of the committee for that action. Mr. MAHON. Mr. Speaker, I thank the gentleman. Normally the Air Guard and the Re- serve get the old aircraft and the old equipment, but we are now finding it nec- essary to rely more and more on the Guard and the Reserves, and we are trying to make them able to respond to their responsibilities. In my statement, I am making reference to all of the Reserves. Mr. MONTGOMERY. Right Mr. Speaker, I understand that. On page 23 of the report, the confer- ence report mentions that 71 F-5E's have been procured and have been funded. These aircraft were purchased for the use of the South Vietnamese Air Force. As I understand it, they will not go to South Vietnam and they will be in the inventory of the regular Air Force. My comment to the chairman of the committee is this: that these aircraft could be used by the Air Guard. They now have antiquated F-100's, and I think the Air Force would be looking for mis- sions for these F-SE's. We could put them into the Air Guard, where it would cost much less to operate them, about half as much, and they could perform the same missions as the regulars would with them. Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 H 9452 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 CONGRESSIONAL RECORD HOUSE September 23, 1971/ I think it would just make sense to do that. Mr. MAHON. Mr. Speaker, I will say to my friend, the gentleman from Missis- sippi, that the committee feels that these aircraft must first go to the regular Air Force. The gentleman does raise a good point, and we hope the time will not be too distant when this aircraft will be available to the Guard as well. Mr. MONTGOMERY. Mr. Speaker, I certainly hope they will consider giving some of these aircraft to the Air Guard. I thank the gentleman from his re- sponse. Mr, WHITTEN. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Mississippi. Mr. WHIieraN. Mr. Speaker, I too, In line With what my colleague, the gentle- man from Mississippi (Mr. Moerecomeer) said, think that the economy of this country must be taken into considera- tion. And everybody does not agree, but I do not believe that any nation in the history of the world has been able to stand up to spending this much money in the name of defense and I take the personal view that it is not all for de- fense; it is for a Military Establishment? and I think eventually the economy of this country is going to require us to maintain a more mobile and smaller regular force with a, trained guard and reserves. But in order to do this, we can- not train them with old and obsolete planes and equipment. So I hope that this committee in the future?and I am a member of the committee?can pay more and more attention toward giving first-rate equipment to the National Guard and Reserve units because in a few years we are really going to have to look to them for the defense of our country. Mr. MINSHALL of Ohio. Mr. Speaker, I yield 3 minutes to the gentleman from Iowa (Mr. GROSS) . (Mr. GROSS asked and was given per- mission to revise and extend his re- marks.) Mr. GROSS. Mr. Speaker, as I pre- viously stated, at the proper time I pro- pose to offer a motion to recommit the conference report with instructions to the managers on the part of the House, with respect to the amendment num- bered 40, to recede from the conference agreement and delete all funds for the F-111 aircraft. I do this, Mr. Speaker, for the reason hat some 2 years before the death of our late colleague, the gentleman from South Carolina, Mr. Rivers, he told the House that would be the last request the House Armed Services would make eor funds for the F-111. It is still with us and apparently will continue for- ever. This year Secretary of Defense Schle- eineer appeared before the subcommit- tee of the Committee on Appropriations chaired by the distinguished gentleman rrom Texas (Mr. MAHON) and told Mr. MAHON as well as the members of the subcommittee that the Department of Defense was not asking for a continua- tion of the F-111 at a cost of $205.5 mil- lion for 12 planes, or at the rate of $17 million each. Under the circumstances. I am utterly unable to understand why the Congress continues to appropriate money for this plane. What is the deal, anyway? Moreover, we are about to embark up- on the production of a new plane known as the ACF at a cost of approximately $4 million each. In other words, approxi- mately four of the new planes for one of the F-ill's. There will be no better time in this session of Congress to save $205 million than here today in the re- committal motion with instructions to the conferees to take out the F-111's which, I say again, the Department of Defense does not want, and so told the Committee on Appropriations in Febru- ary of this year. Mr. Speaker, I am surprised that the committee would put language in the re- port such as this, I read at the top of page 23: The SPEAKER. The time of the gen- tleman has expired. Mr. MINSHALL of Ohio. Mr. Speaker, I yield 2 additional minutes to the gen- tleman from Iowa (Mr. Geoss). Mr. GROSS. The report states: The conferees do not intend to provide any further funds for this program (F--Iii) unless it is sufficiently justified before the Congressional Committees That is almost an insult to the Intel- ligence of the Members of the House. It was not justified several years ago and it is not justified now. As long as Congress is willing to spew out $205 million a year to produce 12 un- wanted airplanes of course certain in ests will be back, and they will need no real justification. I suspect we will hear from the Texas delegation very shortly in behalf of the continuation of this-- I would call it highway robbery?that the Department of Defense has tried to out- law. Mr. Speaker, there was never a time when it was more vitally necessary that this country stop unnecessary and ex- travagant spending. This aircraft was never designed as a substitute for a heavy bomber and any argument to that effect is nonsense. Moreover, if it was designed to fulfill the mission of a new fleet of heavy bombers why only 12 of them? The TFX F-111 has been steeped in scandal beginning with the first con- tract award made by former Secretary of Defcnse Robert Strange McNamara. It is time to put an end to it and I urge approval of my motion to recom- mit to do just that. Mr. MAHON. Mr. Speaker, I yield 3 minutes to the gentleman from New York (Mr. STRATTON) , Et member of the Committee on Armed Services. (Mr. STRATTON asked and was given Permission to revise and extend his re- marks.) Mr. STRATTON. Mr. Speaker, I thought I had already talked to my good friend, the gentleman from Iowa, and explained this point to him, but he has been so busy on so many other things that maybe we did not spend enough time on it. There is really no great secret on this F-111 matter. The story is com- pletely different from what the gentle- man from Iowa has said, and if there is anybody to be blamed, it is the Commit- tee on .Armed Services.. if there is any member of that committee to be blamed, I am the guy. I do not have General Dynamics in my hometown. I have no interest in it except that I do not believe yet that the Air Force has sold us on the B-1 bomber. And I am the guy who in- sisted we keep the F-111 production line In operation until a final decision on production of the F-111 could be made. Mr. GROSS complains that the F-11.1 costs $17 million a copy. Well, the B-1 bomber is up now to $60 or $70 million a copy, and the Air Force has not yet made a decision on it. Some peopie say the ultimate cost could go to $100 million a copy. I, as one member of that committee, having sat at the feet of the gent men from Iowa, have always been a little bit dubious of whether, when the Air Force finally gets around to saying they want us to build this B-1 bomber, I am going to be willing to say, "OK, go ahead and build a bomber at $70 million a copy." The F-111 aircraft production line is being kept open for this year?and for last year?for one reason and one rea- son only. That is to retain for the Ameri- can taxpayers a viable alternative to the B-1 when the Air Force finally conies in and asks us to authorize B-1 production at a price that might be as high ale $100 million a copy. If at that time we have no other plane that can carry bombs to the Soviet Union at supersonic speeds, we are going to have to say, "OK. I guess we will have to take your new plane even at that fantastic price." But as long as we have the le-111 production line in production, capable of turning out the FB-111 bomber, we are going to say, "No, we do not have to take that costly B-1; We have got an alternate bomber here for only $17 mil- lion that can do almost as much as the B-1 can do, namely, the FB-111. That is the reason this money for the F-111 production line is in this bill and fr no other reason. To say that this is putting money down a rathole is a complete distoetion Sure, the Department didn't ask for the money. But why was that? The reason is that the big bomber boys over in the Air Force who really run the Air Force are just scared to death that when the chips are down next year maybe they will not get their B-1 bomber that they want so bady, their dream plane of the future. They do not want us to have any alternative to the B-1 available whe the time for decision comes next year, or maybe Congress will not vote for such an expensive plane. Mr. Speaker, the facts are that the big Air Force generals had to be dragged along, kicking and screaming, before they were willing even to accept funds for the F-111. They are still worried they may have to settle for a less costly new bomber, the F-111, the real Cinderella of the Air Force. So the reason that we are exter dine the F-111 production this year is that after we had already extended the line last year so we would have the FB-111 available as an alternative for the B-1 when the decision came to be made this year, the Air Force told us the schedule Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 September 23, 1974 CONGRESSIONAL RECORD?HOUSE had slipped and that no decision would be made until 19'75. So we have had to keep the production line of the alternate plane open for 1 additional year?till the hour of decision rolls around next year. So these funds are in the bill again for 1 more year and the Air Force is going to have to make up their minds next year one way or the other. As long as we keep the F-111 production line going there is a viable and less costly alternative to the B-1. I think that is sound economy. Any time we can keep open the option of selecting a $17 mil- lion plane in place of a $100 million plane we are doing the taxpayers a read favor. Mr, MAHON. Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. Waronr). Mr. WRIGHT. I thank the gentleman for yielding, and I shall make only four points in regard to the F-111. I think It is important that all members under- stand the importance of these four basic facts. ? First, the F-111 is the only strategic ? aircraft currently in production any- where in the free world and the only supersonic bombing plane in the active Air Force inventory. Second, it has established in 350,000 hours of actual flight the very best safety record?fewer accidents for the number of hours flown?of any military aircraft built in this country in the past 20 years. It performed with spectacular effective- ? ness over heavily defended targets in North Vietnam and established a truly superior record of survivability.. Third, if Congress should for some rea- son decide that the B-1 should not go Into production?the per unit cost is now estimated at about $70 million or more? it would leave an extremely dangerous gap in our defenses to shut off the only ? alternative which is the F-111. Finally, if the B-1 should go into pro- duction on schedule, at least a substan- tial part of that aircraft in all probabil- ity will have to be built in the very plant In Fort Worth which is now building the F-111. To allow the active production line to die before B-1 production begins Would cost the taxpayers an estimated $250 million in startup costs. In other words, it actually would cost more to crank up the idle plant than to keep it alive for another year's production of F-111's? This obviously would be false economy. For all of these reasons, I earnestly hope that a substantial majority of the Members will join me in opposition to the Gross motion which would delete all money for the F-111 fleet. Mr. MAHON. Mr. Speaker, the decision of the conferees supports the House po- sition. The House voted to fund the F-111 in the authorization bill, and in the ap- propriation bill. The House managers were able to maintain the House posi- ? tion. Mr. Speaker, the X3-1 is in trouble. Business Week magazine, I under- stand, has quite a story about the B-1 In this week's issue, pointing out that considering the rate of inflation we are experiencing, this plane could cost about $100 million per copy. I do not think the Congress and the country will tolerate this kind of cost for an aircraft. I do not want to see this country put in the posi- tion of having to take the B-1 or nothing. There should be the possibility of an alternative. That is one of the reasons the funds are in this bill for continuing the hot line for the F-111. Some have complained that the F-111 Is a Texas project?that claim does not take into account the relevant facts. I should add that the F-111 plant in Fort Worth is located several hundred miles from my district. I would point out that 35 percent of the money that goes into the F-111 is spent in California; 10 percent in Texas; 9 percent in Connecticut; '7 percent in Massachusetts; 6 percent in New York; 5 percent in New Hamphire; 4 percent in Pennsylvania, and the remaining 24 per- cent in other areas of the Nation; but re- gardless of where the funds are expend- ed, the factor here that deserves consid- eration is the security of the United States. Let me make this further statement. The B-1 bomber was scheduled to fly last year and it is now scheduled to fly late this year. It is my understanding that the first flight may slip further. While we support the B-1 as a replace- ment for the aging B-52 aircraft, I do not think we should abandon the only strategic aircraft production line in the whose free world, at Fort Worth, Tex., until we are certain that the B-1 will be added to the inventory of the Strategic Air Command. I believe the Congress must at all times be willing and able to fund programs which are not recommended in the budg- et of the Executive if Congress feels that such action is in the Nation's best in- terest. A rubberstamp role for Congress in defense is indefensable. The Consti- tution gives Congress a big responsibility in national defense matters. You and I are not willing to agree that all wisdom resides in the executive branch. As Con- gress acts in an independent way as a coequal branch of the Government to deny funds which Congress does not be- lieve are required, Congress also has the responsibility to add funds where it is convinced that the funds are needed. Would we not agree that many Members of Congress are widely experienced in the military field? Many are as knowledge- able or more so as to the overall situa- tion than some of the top personnel in the Pentagon. We have spent billions developing the F-111 aircraft. The bugs have been worked out of it. It has an unparalleled safety record and is highly praised by the men who fly it. There is no question about it, the addition of the 12 aircraft proposed will be welcomed by the Air Force and will add strength to our mili- tary forces at a time of world turbulence. Mr. FLOOD. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Pennsylvania. Mr. FLOOD. Mr. Speaker, talking II 9453 about the cost of the B-1 program, 244 B-1's at $100 million would be $24.4 bil- lion. Mr. ASHBROOK. Mr. Speaker, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Ohio (Mr. ASHBROOK). Mr. ASHBROOK. Mr. Speaker, I want to point out something that Members may not realize. This happens to be the last time one of our colleagues, the man- ager of the bill, will be reporting back to the House, because our friend, the gen- tleman from Ohio, my colleague (Mr. MINSHALL) has announced his retire- ment. Many of us could extol the virtues of the gentleman from Ohio (Mr. Mm- ? SHALL) over the years as the ranking Re- publican member on the committee. I merely point out that in bringing this last bill to the House floor, he has kept Intact the record for trust we on this side have placed in his effort in behalf of not only the Congress, but the strong defense of our country. I know that I speak for every Mem- ber of this House when I tell him that his 16 years on that committee has been most beneficial to all of us. Mr. MAHON. Mr. Speaker, will the gentleman yield to me? Mr. MINSHALL of Ohio. Yes. I am de- lighted to yield. Mr. MAHON. I think the gentleman has more time than I have. Mr. MINSHALL of Ohio. Yes. We have 14 Minutes. Mr. MAHON. I just want to say as the spokesman for the 55-member Commit- tee on Appropriations, we have the pro- foundest respect for the gentleman from Ohio and we pay tribute to him for his contribution through the years to the cause of national defense. His objectivity, devotion, and loyalty to the work in the Congress has been very notable. I just want to speak for all of us, if I may, a word of good cheer to this friend of ours who has served so faithfully and so well. We are going to miss him in the next session. It has been good to work with him shoulder to shoulder in the best interest of the United States through. the years. Mr. MINSHALL of Ohio. Mr. Speaker, I yield 3 minutes to my good friend from Michigan (Mr. CEDERBERG). (Mr. CEDERBERG asked and was given permission to revise and extend his remarks.) Mr. CEDERBERG. Mr. Speaker, Mem- bers of the House, I first want to say that I rise in full support of the con- ference report. Completing a conference on an appropriation of this size is not an easy task. There were many differences of opinion between the House and Senate on many items, as the distinguished chairman has already said. We have gone through these items one by one, and we think we have come up with a bill that is in the best long-term Interests of the country. There is always room for disagreement on a conference report of this kind with its many and complex issues. Thus a conference report of this type is not an issue ?on which everyone can totally agree. Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 H 9454 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 CONGRESSIONAL RECORD HOUSE September 23, i97 Mr. Speaker, I want to join with others in paying tribute to the ranking minority member of the subcommittee, the gen- tleman from Ohio, Mr. MINSHALL, who has labored long and hard over the years on our programs for national defense. It is not easy to serve on the defense subcommittee. One does not have a lot of constituents, and sometimes it is easier to be in opposition to some of these things than it is to be for them. But, not only are we losing the distin- guished ranking minority member of the subcommittee, but also the gentleman from Wisconsin (Mr. Dens) who has also made a great contribution. The gentleman from New Hampshire (Atr. Wynaew) is also leaving to run for the other body. I do no know why, but he has some reason he wants to run for the other body. We wish him well in that endeavor, but we will miss him here. As a matter of fact, on the Republican side of the subcommittee we are only going to have one present member who will be returning for the next session. He is certainly going to have a difficult task. I refer to the gentleman from Ala- bama (Mr. EDWARDS) . To those who will no longer be on this subcommittee, I, as ranking minor- ity member of the full committee, want to express my appreciation to all of them for the hard work they have done. Sitting on this defense subcommittee day after day after day is not an easy task. Reaching the right decisions for the good of the country, even though others may disagree, is not always an easy task. As these members leave us, we are go- ing to miss them because they have made a tremendous contribution to the secur- ity and best interests of the country. Mr. STEIGER of Wisconsin. Mr. Speaker, will the gentleman yield? Mr. CealaERBERG. I yiekl to the gen- tleman from Wisconsin. Mr. STEIGER of Wisconsin. Mr. Speaker, I want to join with the gen- tleman from Michigan, not only in pay- ing tribute to the ranking minority Member, the gentleman from Ohio (Mr. MINSHALL) but to a Member who has been so long on this subcommittee and on the full committee, the gentleman from Wisconsin (Mr. DAVIS). His loss is one that makes me particu- larly sad. I would want to join with the gentleman from Michigan in thanking him for what has been done, the work that has been done by thoSe who served on this cominittee, and commend the gentleman from Wisconsin (Mr. Davis) for his years of leadership and expertise. Mr. CEDERBERG. The gentleman from Wisconsin (Mr. STEIGER), ilea said it well. When he came to the Congress, the gentleman from Wisconsin (Mr. De- m) was on the Appropriations Commit- tee then. I served when he was the rank- ing minority member on what we used to call the Military Construction and Civil Functions, Corps of Engineers Ap- propriation Subcommittee. Over the years, I cannot think of any- one who has worked harder and more diligently and who has been willing to take the kind of hard positions that are necessary in order to serve on the Ap- propriations Committee. Mr. MINSHALL of Ohio. Mr. Speaker, I want to thank all my colleagues foe the most generous remarks which they have delivered on my behalf. All I can say Is that to have served on this subcommit- tee and the full committee on appropri- ations has been an experience which has been very rewarding, and one which I shall never forget. I cannot help but rephrase a quote from a statement my good friend, DAN FLOOD, made when we were first consid- ering this bill on the floor. He walked in a little late and looked around and heard all this extolling of Bite Marvin'. going on. He looked around and he said, "Didn't see you. I thought you had died" But thank you, DAN, for all the wonder- ful things you have said about me. Also, I want to thank the chairman of the sub- committee, the gentleman from Texas (Mr. MAHON) for all his assistance over the years. I would be remiss if I did not mention the other able members of the subcommittee who have helped bring a strong defense to this country. Boa antes, JOE ADDABBO, JOHN MCFALL, JOHN FLYNT, BOB Comma and JAMIE WHITTEN and the other side of the aisle. On this side GLENN DAVIS, LOUIS WYMAN, and JACK EDWARDS. Above all, we have one of the most wonderful staffs on the defense subcom- mittee in my 16 years service there. They have been of immeasurable help to us in their guidance and their counsel. As I said before, we need more of them, but I am sure a little extra pay would help them as well. I should remind the Members that I am not returning, I just decided net to seek reelection to the House. Mr. BINGHAM. Mr. Speaker. I rise in opposition to the conference report on H.R. 16243, which appropriates $82.5 bil- lion for the Department of Defense for fiscal year 1975. I intend to vote against this legislation simply because it will al- low an unconscionably high level of spending for our military forces, a level which is e.3.6 billion more than the raili- tary was able to spend last year. My op- position does not mean that I oppose every item in the bill. In fact, there are some useful limitations in this legisla- tion, such as the ceiling on DOD person- nel in South Vietnam which I proposed as an amendment when this appropria- tions bill was first considered on the floor of the House. I am also convinced that the United States must maintain its mil- itary strength for the foreseeable future, and that strength is inevitably expensive. But this level of spending is reckless and wasteful. It will allow the Depart- ment of Defense to undertake such ill- advised programs as nuclear counter- force, which involves the retargeting and improved accuracy of our ICBM's. This program threatens a dangerous escala- tion in the strategic arms race. This bill will also continue the deployment of ex- cessive numbers of U.S. troops abroad. It will continue to provide for the swol- len support forces and civilian bureauc- racy of the Pentagon, which, exclueing the Postal Service, employs roughly as many civilians as all other Federal agencies combined. We must get off the treadmill of con- stantly rising defense expenditures, a treadmill many of us expected to aban- don when the United States withdrew from active military inenlvement in the Indochina war. I still *ant to see the "peace divic*nd," an actual reduction in our military expenditutes, and until I do I will continue to oppose these mas- sive military budgets. Mr. FRENZEL. Mr. Speaker, this mili- tary appropriation bill, H.R. 16243, amounts to $821/2 billion. It is said to be $41/2 billion under the budget request but it is $31/2 billion more than last year. Since it is our custom to pass supple- mental appropriations, and since the distinguished chairman of the Home Ap- propriations Committed has already pre- dicted a $2 billion supplemental, we all know that the comparisons in the report of the conference committee are not especially hapful. If we estimate another $2-plus billion for e Pay ntse, already mandated, this military bill- to the taxpayers becomes nearly $85 billion, only $11/2 billion under budget and $5 1/2 billion-8 percent--over last year. In my judgment, those numbers are too big at this critical stage of our battle against inflation. We must make cuts to reduce the budget at least to $300 billion, Unless this bill is reduced further, I do not see any Chance to reach $300 billion. I do not oppose the *eneral level of weapons development. I would vote against specific systema and develop- ments, notably the F-111, but basically, the real problem lies in personnel cost, Therefore, I have urged,und do so again. that force levels, especially overseas, be reduced. In addition to the dangers of spending at this high level in an inflationary period, I have a specific complaint about our knowledge of, and oversight of, CIA activities. my negative vote here is based on objections to unnecessarily high spending levels, but I am also seriously concerned about the lack of congres- sional control over the -CIA. It is well past time for the Congress to exercise its authority. Mr. Speaker, I shall vote against this bill. I am not indifferent to national security needs. I am not mad at the De- fense Department. I only know we have to make budget reductions, and this ex- pense center is one that stands further reduction. Mr. SIKES. Mr. Speaker, I view the conference report on defense appropria- tions for fiscal year 1975 with mixed emotions. I must be frank in stating that I believe the conferees cut too deeply in many areas. Cutting defense funds ap- pears to be the order of the day in Con- gress. We pay very little attention o se- rious cuts elsewhere. In. fact, Congress habitually increases funding for some agencies. It makes token cuts in most, But the yearend result is not an impres- sive showing for economy advocate 3, ex- cept in defense. I see instance after in- stance where Government agencies come to Congress asking for substantial toosts in personnel year after year and the rule alway seems to be to give them pert of the additional personnel and appropria- tions they request. it seldom seems to oc- cur to cengressional committees to de- Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Approved For Release 2005/06/09 : CIMRDP751300380R000700060018-4 September 23, 1974 CONGRESSIONAL RECORD ? HOUSE 9455 mand cutbacks in personnel and oper- ating costs except in the Department of ? Defense. I find it difficult to understand ? the reasoning that defense is less essen- tial to America than welfare or foreign aid or many other agencies of Govern- ment. Be that as it may, the Department of Defense must accept part of the blame for the cuts which are made in the con- ference report now before the House. De- spite cuts all along the line made by the Senate which resulted in a substantial reduction in the House-approved bill, the Department did not see fit to appeal a majority of the Senate cut. This left the House conferees in poor position to in- sist upon the House figures in the in- ? stances where they were higher. The Department strongly urged the adoption of the House figures and, in fact, in most cases, asked for more money than the House allowed. I cannot believe the De- partment of Defense has changed its ? mind to that extent between the time the budget levels were justified to the De- fense Subcommittee of the House and the time of the conference action. Wheth- er the Department of Defense was direct- ed by the administration to compromise for significantly less money, regardless of its effect upon defense programs, I do not know. The conferees in most instances only partially funded the amount of the ap- peal. The result may well be a general cutback in effectiveness in key areas such as operations and maintenance and re- search and development. The fact is the defense appropria- tions bill is 5.7 percent below the budget recommendations. The ' original request for funding for the Department of De- fense for fiscal year 1975 was $87,057,- 497,000. The House bill provided $82,- 983,570,000 new obligational authority. The conference report has approved $82,096,297,000. In my opinion, the House cut should not have been ex- needed in the final version of this bill. There could have been adjustments in funding levels to accommodate more re- cent inputs from the Department of De- fense on actual need. But I am convinced that we are cutting deeper than is ap- propriate if we are to assure our Na- tion the defense capability which is needed in today's troubled world. It means that defense is expected to ab- sorb most of the $5 billion cut which has been recommended by the administra- tion in the overall budget of $305 billion. I have felt that Congress can cut the budget more than $5 billion, but I feel that all agencies should share in the re- duction. Mr. BADILLO. Mr. Speaker, this morning I spent several hours in New York City listening to? a very timely and indepth discussion of the state of the economy by a distinguished group of economists from throughout the Nation. This gathering?a continuation of a conference inaugurated at the White House on September 5?was one of the various meetings being held in advance of the summit conference on inflation scheduled for Washington later this month. The economists debating the many and varied? factors which have Initiated and are feeding the rampant inflation now being experienced represented a number of different schools of economic theory. These experts deliberated over certain steps which could be taken, to combat inflation by reducing Federal spending. Particularly discouraging was the almost complete lack of attention given to reducing nonessential and ques- tionable defense programs and the wealth of suggestions as to the domestic social and State and local aid programs which could be trimmed. There is little question that the in- flation is the No. 1 economic problem confronting our country today. However, there is no reason why essential domes- tic programs must bear the brunt of any reductions in Federal spending. I am disturbed that the administration re- fuses to follow its own suggestiOns when it comes to the Defense Department and that the only substantive cuts being taken and contemplated are in those ef- forts which would assist those most in need?the underfed, the unemployed and underemployed, the uneducated, the minorities, the disadvantaged, the el- derly, and others. The measure before us is not so sacro- sanct as to be immune from reductions beyond those already made by the House and Senate. Although the $82.58 billion appropriated by this legislation is 5.1 percent below the DOD's original request, it is still $3.61 billion more than the sum appropriated for the last fiscal year. In addition to such highly questionable pro- curement programs as the B-1 bomber, how much money is going to be allocated to support covert intelligence activities overseas to destabalize foreign govern- ments and how much has the overall budget been padded in a vain attempt to stimulate the economy? Why should this Nation spend some $700 million to con- tinue to support a corrupt and ineffective regime in South Vietnam? Have we not yet learned that no amount of money will ever buy peace and security for that strife-torn area of the world? How can we Justify supporting a defense measure of this enormity when we are supposedly at peace and are actively seeking d?nte and a reconciliation with our potential adversaries in various parts of the world? Mr. Speaker, once again the defense appropriations bill represents a complete distortion of our country's spending pri- orities. While the administration seeks gigantic increases for military programs, millions of Americans live in inadequate and substandard housing, millions more are undernourished, almost 5 million fel- low citizens are out of work, the air and rivers are befouled and the Nation's roads are clogged with cars while commuters are unable to reach their jobs. I will agree, Mr. Speaker, that there must be important reductions in Federal spending but not at the cost of the health, welfare, education and general well-being of our citizenry. An Important- step in the fight against inflation can be taken by further reducing the measure before us?an action which can be taken without jeopardizing our national secu- rity or defense posture one iota. Certainly this is a recommendation which at least warrants the highest priority at the eco- nomic summit later this week. Mr. MAHON. Mr. Speaker, I move the previous question or the conference re- port. The SPEAKER. Without objection, the previous question is ordered on the con- ference report. There was no objection. MOTION TO RECOMMIT OFFERED BY MR. WDADE Mr. McDADE. Mr. Speaker, I offer a motion to recommit. The SPEAKER. Is the gentleman op- posed to the bill? Mr. McDADE. In its present form, I am, Mr. Speaker. The SPEAKER. The Clerk will re- port the motion to recommit. The Clerk read as follows: Mr. MCDADE moves to recommit the bill H.R. 16243 to the committee of conference. Mr. McDADE. Mr. Speaker, I move the previous question on the motion to re- commit. The SPEAKER. The question is on or- dering the previous question on the mo- tion to recommit. Mr. GIAIMO. Mr. Speaker, on that I demand the yeas and nays. The yeas and nays were ordered. PARLIAMENTARY INQUIRY Mr. GROSS. Mr. Speaker, I have a par- liamentary inquiry. The SPEAKER. The gentleman will state his parliamentary inquiry. Mr. GROSS. Is the vote on the pre- vious question? The SPEAKER. The vote is on order- ing the previous question on the motion to recommit. The vote was taken by electronic de- vice, and there were?yeas 228, nays 125, not voting 81, as follows: Abdnor Alexander Anderson, Ill. Annunzio Archer Arends Bafalis Beard Bennett Bevill Blackburn Boland Bolling Bowen Bray Breaux Brinkley Brooks Broomfield Brotzman Broyhill, Va. Buchanan Burke, Calif. Burke, Fla. Burleson, Tex, Burlison, Mo. Butler Byron Camp Carter Cederberg Chamberlain Chappell Clancy Clark Clausen, Don H. Clawson, Del Collier Collins, Tex. Cotter Coughlin Daniel, Dan [Roll No. 6331 YEAS-228 Daniel, Robert Hanley W., Jr. Hanrahan Daniels, Hansen, Idaho Dominick V. Hansen, Wash, Danielson Harsha Davis, S.C. Hastings Davis, Wis. Hebert Delaney Henderson Dennis Hicks Dent Hillis Derwinski HinshaW Devine Hogan Dickinson Holt Donohue Hosmer Downing Hungate Duncan Hunt du Pont Hutchinson Edwards, Ala. /chord Erlenborn Johnson, Calif. Eshleman Johnson, Pa. Findley Jones, Ala. Fish Jones, N.C. Flood Jordan Flowers Kazen Forsythe Kemp Fountain Ketchum Frelinghuysen King Froehlich Kluczynski Fuqua Kuykendall Gettys Lagornarsino Gibbons Landgrebe Gilman Landrum Ginn Leggett Goldwater Lent Gonzalez Litton Goodling Long, La. Grasse Long, Md. Gray Lott Green, Oreg. McCiory Griffiths ? McCollister Grover McDade Gubser McEwen Haley McKinney Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 14 9156 Macdonald Madigan " Mahon Mann Maraziti Martin, Nebr. Martin, N.C. Mathias, Calif. Mathis, Ga. Matsunaga Metcalfe Miller Mills Peinshall, Ohio Mitchell, N.Y. Mizell Montgomery Moorhead, Calif. Moorhead, Pa. Morgan Moss Murphy, Murphy, Murtha Myers Matcher O'Brien O'Hara Parris Passrn an Patman Patten Pepper Perkins N.Y. Abzug Adams Addabbo Andrews, N. flak. Ashbrook Ashley Badillo Baker Bat} mart Bergland Biester Bingham Brademas Brown, Calif. Brown, Mich. Burke, Mass. Burton, John Burton, Philip Carney, Ohio Chisholm Clay Cleveland Cohen Collins, Ill, Conte Corms n Cronin Dellenback Denholm Dingell Drinan Edwards. Calif. Eilberg Evans, Colo. Evins, Tenn. Fascell Flynt Ford Fraser Frenzel Fulton Gaydos Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 CONGRESSIONAL RECORD? EIOUSE September 23. Pettis Peyser Pickle Poage Preyer Price, Ill. Price, Tex, Quillen Railsback Randall Steed 'Steiger, Ariz. ,Stratton Stubblefield -Stuckey Sullivan Symington Talcott Taylor, NC. -Teague Regula -Thomson. Wis. Roberts -Thornton Robinson, Va. Tiernan Robison, N.Y. -Ullman Rogers Veysey Rooney, Pa. ."Waggonner Rose _Walsh Rostenkowski Ware Runnels -White Ruth Sandman Sarasin Satterfield Scherle Schneebeli Sebelius Shipley Shriver Sisk Slack Smith, Iowa Smith, N.Y. Staggers Stanton, J. William 1Wh1telaurst Whitten Wiggins 'Wilson, Bob we son, Charles, Tex. Winn -Wright Wyatt :Wyman Young, Alaska Young, Pie.. Young, B.C. 'Young, Tex. Zablocki Zion NAYS-125 Giaimo Mosher Green, Pa. Nix Gross Obey Gude Poke Guyer Pritchard Hamilton Quie Hammer- Rangel schmidt -Reties Harrington Riegle Hawkins _Rinaldo Hechler, W. Va. Roncalio, Wy0. Heckler, Mass. Rosenthal Heinz Roush 'lel stoski Roy Hol ifield Roybal Holtzman Ruppe Horton Ryan Howard St Germain Huber Sarbanes Jarman Schroeder Jones, Okla. _Seiberling Jones, Tenn, Shuster Barth Skubitz Kastenmeier Stanton, Koch James V. Kyros Stark Latta Steiger, is. Lulan Stokes Luken Studds `McCormack Thompson, N.J. McSpadden Thone Madden Trd all Mallary Vander Jagt Mayne Vander Veen Mazzoli Vanik Meed s Waldie Melcher Whalen Mezvinsk'y Wolff Minish Wydler Mink Yates Mitchell. Md. Yatron Moakley Zwacli Mollohan NOT VOTING-81 Anderson, Culver Calif. Davis, Ga. Andrews, N.C. de la Garza Armstrong Dellums Aspin Diggs Barrett Dorn Bell Dulski Biaggi Eckhardt Blatnik Esch Boggs Fisher Brasco Foley Breckinridge Prey Brown, Ohio Gunter Broyhill, N.C. Hanna Burgener Hays Carey, N.Y. Hudnut Ilooney, LY. Casey, Tex. Johnson, Colo. Rousselot Cochran Lehman Shoup Conable MeCieskey Sikes Conlan McFall Snyder Conyers McKay Spence Crane Michel Steele Milford Nedzi Nelsen Nichols O'Neill Owens Podell Powell, Ohio Rarick Rees Reid Rhodes Rodino Roe 'toucan?. N.Y. Steelniah Stephens Symms Taylor, Mo. Towel, Nev. Traxl er Treen Van Deerlin Vigorito Wampler Widnall Williams Wilson, Charles N. Wylie Young, Ga. Young, Ill. So the previous question Was ordered. The Clerk announced the following pairs: On this vote: Mr. O'Neill for, with Mr. Eckhardt against. Mr. Rodin? for, with Mr. Conyers against. Mr. Carey al New York for, with Mr. Diggs against. Mr. Hays for, with Mr. Dellums against Mr. McFall for, with Mr_ Rees against. Mr. Slices for, with Mr Young of Georgia against. Until further notice: Mrs. Boggs with Mr. Podell. Mr. Biaggi with Mr. Culver. Mr. Vigarito with Mr. Duiski. Mr. Fisher with Mr. Reid. Mr. Gunter with Mr. Aspin. Mr. Rooney of New York with Mr. Dorn. Mr. Roe with Mr. Blatnik. Mr. Nedzi with Mr. Davis of Georgia. Mr. Foley with Mr. Hanna. Mr. Lehman with Mr. McKay. Mr. Owens with Mr. Michel. _ Mr. Breckinridge with Mr. McCloskey, Mr. Barrett with Mr. Conable. Mr. Anderson of California with Mr. Mr. Stephens with Mr. Bell. Mr. Van Deerlin with Mr. Conlan. Mr. Charles H. Wilson of California with Mr. Esch. Mr. Rarick with Mr. Brown of Ohio. Mr. de la Garza with Mr. Frey. Mr. Casey of Texas with Mr. Broyhill of North Carolina. Mr. Millard with Mr. Crane. Mr. Traxler with Mr. Nelsen. Mr. Nichols with Mr. Powell of Ohio. Mr. Rhodes with Mr. Snyder. Mr. Spence with Mr. Rousselot. Mr. Taylor of Missouri with Mr. Shoup. Mr. Widnall with Mr. Steele. Mr. Young of Illinois with Mr. Steelman. Mr. Treen with Mr. Symms. Mr. Wan:Wier with Mr. Towell. of Ne coda. Mr. Wylie with Mr. Williams. The result of the vote was announced as ahove recorded. The SPEAKLIC. The question is on the motion torecommit. The motion to recommit was rejected. The SPEAKER. The question is on the conference report. Mr. DELLENBACK. Mr. Speaker, on that I demand the yeas and nays. The yeas and nays were ordered. The question was taken, and there were?yeas 293, nays 59, not voting 82, as follows: Abdnor Adams Addalib0 Alexander Andeason, Andrews, N. flak. AnnuiziO Archer Arends Ashbrook Befalls Baker Bauman Beard Bennett Bergland BevIlt Bleeter Blackburn [Roll No. 5341 YEAS-Min Boland Bolling Bowen Brademas Bray Breaux Brinkley Broomfield Brotzman Brown, Calif. Brown, Mich. Broyhill. Va. Buchanan Burke, Fla, Burleson, Tex. BUTI1S011, Mo. Butler Byron Camp Carter Cederberg Chamberlain Chappell Clancy Clexk Clausen, Den H. ClIEWsOLI, Eel Cleveland Cohen Collier Collins, Tex, Conte Carman Cotter Coughlin Cronin Daniel, Da Daniel, toDert W.. Jr. Daniels, Jones, Okla. Dominick V. Jones, Tenn, Danielson Jordan Davis, S.C. Barth Davis, Wis. Kazen Delaney Kemp Denholm Ketchum Dennis King Derwinski Kluczynski Devine Kuykendall Dickinson Kyros Donohue Lagornarsino Downing Lanagrebe Duncan Landrum du Pont Latta Edwards, Ala, T.eggett Eilberg Lent Erlenborn Litton Eshleman Long, In. Evans, Colo. Long, Md. Eying, Tenn. Lott Fascell Lujan Findley Luken Fish McCiory Flood McCollister Flowers McDade Flynt McEwen Foley McSpadden Ford Macdonald Fountain Madden Frelinghuysen Madigan Froehlich Mahon Fulton 1VIal 1 ary Fuqua Mann aydos Maraziti Gettys Martin, Nebr. Gibbons Martin, N.C. Gilman Mathias, Calif. Ginn Mathie, Ga. Goldwater Matsuriaga Gonzalez Mayne Goodling Mazzoli Grasso Meeds Gray Melcher Green, Oreg. Mezvilasky Griffiths Miller Grover Mills Gubser Mlnish Gude Guyer Haley Hamilton Hammer- sehmicit Hanley Hanrahan Calif. Vander Seen Hansen, Ittaho Moorhead, Pa. Veysey Hansen, Wash. Morgan Waggonr em Mamba Moss Walsh Hastings Murphy, Ill. White Hebert Murphy, N.Y, Whitehuret Heinz Murtha Whitten. Henderson Myers Wiggins Hicks 'catcher Hillis Nelsen Hinshaw O'Brien Hogan O'Hare Holifleld Pelage Holt Passman Horton Patrneal Hosmer Patten Howard Pepper Huber Perkins Hunt Pettis Hutchinson Peyser Ichord Pickle Jarman Pike Johnson, Calif. Poage Johnson, Pa, Preyer Jones. A's. Price, Ill. Jones, N.C. Price.Tex. NAYS-5D o 4 Quie Quillen Railsbaca Randall Regula Rinaklo Roberts Robinson, Va Robison, N.Y. Rogers Roncalio, taryo. Rooney, Pa, Rose Rostenkowski Roush Roy Runnels Ruth St Germs al Sandmar Sarasin Sarbanes Satterfield Scherle Schneebell Sebellus Shriver Shuster Sisk Skulaitz Rack Smith, Tcwa Staggers Stanton, J. William Stanton, James J. Steed Steiger, Ariz. Steiger, Wei. Stratton Stubblefield Stuckey Sullivan Symington Taicott Taylor, N Teague Mink Thomsor, , Viris, Minshall, Ohio Thone N.Y. Thernteei Mizell Tiernan Mollohan Udall Montgomery Ullman Moorhead, Vander Jagt Abzug Giaisr Ashley Green. Pa. BartilbO Gross Bingham Harririgton Burke, Calif. Hawkins Burke, Mass, Hechler, W. Burton, John Heckler, MasS Burton, PhilLip Heistnski Carney, Ohio Holtzman Chisholm Kastenrn eier Clay Koch Collins, TU. McCorinack Dellenback McKinney Dent Metcalfe Dingell Mitchell, Md. Drinan Moakley Edwards, Calif. Mosher Forsythe Nix Fraser Obey Frenzel Pritchard Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 Wilson,Williams Rob Wilson, Charles, Tex, Winn Wolff Wright Wyatt Wydler Wyman Yatrori Young. Alaska Young. El a. Young, S.C. Young, Tex, ZablOcki Zion Rangel Reuss Riegle Rosenths1 Roybal . Ryan Schroeder Seiberling Shipley Stark Stokes Studds Thompscn, N.J. Traxler Vanik Waidie Whalen Yates Zwaoh Approved For Release 2005/06/09__CJA-RDP75B0038nR000700060018-4 September 23, 1974 CONGRESSIONAL REcoltD --poiusli H 9457 Anderson, Calif. Andrews, N.C. Armstrong Aspin Barrett Bell Biaggi Blatnik Boggs Brasco Breckinridge Brooks Brown, Ohio Broyhill, N.C. Burgener Carey, N.Y. Casey, Tex. Cochran Conable Conlan Conyers Crane Culver Davis, Ga. de la Garza Dellums Diggs Dorn NOT VOTING-82 Dulski Roncallo, N.Y. Eekhardt Rooney, N.Y. Esch RousselOt Fisher Ruppe Frey Shoup Gunter Sikes Hanna Smith, N.Y. Hays Snyder Hudnut Spence Hungate Steele Johnson, Colo. Steelman Lehman Stephens McCloskey Symms Taylor, Mo. Towell, Nev. Treen Van Deerlin Vigorito Wampler Ware Widnall Wilson, Charles H., Calif. Wylie Young, Ga. Young, Ill. McFall McKay Michel Milford Nedai Nichols O'Neill Owens Podell Powell, Ohio Rarick Rees Reid Rhodes Rodin? Roe So the conference report was agreed to. The Clerk announced the following pairs: On this vote: Mr. O'Neill for, with Mr. Eckhardt against. Mr. Rodino for, with Mr. Conyers against. Mr. Carey of New York for, with Mr. Diggs against. Mr. Hays for, with Mr. Dellums against. Mr. 1VIcrall for, with Mr. Rees against. Mr. Sikes for, with Mr. Young of Georgia against. Until further notice: Mrs. Boggs with Mr. Podell. Mr. Breckinridge with Mr. Dulski, Mr. Vigorito with Mr. Fisher. Mr. Charles H. Wilson of California with Mr. Reid. Mr. Barrett with Mr. Hanna, Mr. Biaggi with Mr. Culver. Mr. Brooks with Mr. Davis of Georgia. Mr. Casey of Texas witli Mr. Dorn, Mr. Nedzi with Mr. Gunter. Mr. Nichols with Mr. Anderson of Califor- nia. Mr. de la Garza with Mr. Aspin. Mr. Roe with Mr. Blatnik. Mr. Rooney of New York with Mr. Bell. Mr. Stephens with Mr. Conable. Mr. Van Deerlin with Mr. Esch. Mr. Owens with Mr. Brown of Ohio. Mr. Ranch with Mr. Prey. Mr. Milford with Mr. Conlan. Mr. Lehman with Mr. Broyhill of North Carolina. Mr. McKay with Mr. Crane. Mr. Hudnut with Mr. Rousselot. Mr. Hungate with Mr. McCloskey. Mr. Michel with Mr. Ruppe. Mr. Rhodes with Mr. Smith of New York, Mr. Shoup with Mr. Snyder. Mr. Spence with Mr. Steele. Mr. Young of Illinois with Mr. Ware. Mr. Widnall with Mr. Symms. Mr. Taylor of Missouri with Mr. Treen. Mr. Roncallo of New York with Mr. Wylie. Mr. Towell of Nevada with Mr. Wampler. The result of the vote was announced as above recorded. A motion to reconsider was laid on the table. AMENDMENTS IN DISAGREEMENT The SPEAKER. The Clerk will report the first amendment in disagreement. The Clerk read as follows: Senate amendment No. 7: Page 4, line 21, strike "$68,500,000" and insert "$67,800,000". MOTION OFFERED BY MR. MAHON Mr. MAHON. Mr. Speaker, I offer a motion. The Clerk read as follows: _ Mr. MA.now moves that the House recede from its disagreement to the amendment of the Senate numbered 7 and concur therein with an amendment, as follows: In lieu of the sum proposed, insert "$68,800,000". The motion was agreed to. The SPEAKER. The Clerk will report the next amendment in disagreement. The Clerk read as follows: Senate amendment No. 15: On page 7, line 21, strike "$7,113,254,000" and insert "$7,077,930,000". MOTION OFFERED BY MR. MAHON Mr. MAHON. Mr. Speaker, I offer a motion. The Clerk read as follows: Mr. MAHON moves that the House recede from its disagreement to the amendment of the Senate numbered 15 and concur therein with an amendment, as follows: In lieu of the sum proposed, insert "$7,062,- 030,000". The motion was agreed to. The SPEAKER. The Clerk will report the next amendment in disagreement. The Clerk read as follows: Senate amendment No. 28: On page 13, line 22, insert: "CONTINGENCIES, DEFENSE "For emergency and extraordinary expenses arising in the Department of Defense, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of necessity for confidential military purposes; $5,000,000." MOTION OFFERED BY MR. MAHON Mr. MAHON. Mr. Speaker, I offer a motion. The Clerk read as follows: Mr. MAHON moves that the House recede from its disagreement to the amendment of the Senate numbered 28 and concur therein with an amendment, as follows: In lieu of the matter proposed, insert: "CONTINGENCIES, DEFENSE "For emergency and extraordinary ex- penses arising in the Department of Defense, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of necessity for confidential military purposes; $2,- 500,000." The motion was agreed to. The SPEAKER. The Clerk will report the next amendment in disagreement. The Clerk read as follows: Senate Amendment No, 34: On page 19, line 1, strike "$762,000,000" 'and insert "$748,600,000". MOTION OFFERED BY MR. MAHON Mr. MAHON. Mr. Speaker, I offer a motion. The Clerk read as follows: Mr. MAHON moves that the House recede from its disagreement to the amendment of the Senate numbered 34 and concur therein with an amendment, as follows: In lieu of the sum proposed, insert "$729,600,000". The motion was agreed to. The SPEAKER. The Clerk will report the last amendment in disagreement. The Clerk read as follows: Senate Amendment No. 38: On page 20, line 8, insert "and in addition $103,800,000 for escalation and cost growth on prior year programs which shall be derived by transfer from 'Shipbuilding and Conversion, Navy 1973/1977'," MOTION OFFERED BY MR. MAHON Mr. MAHON. Mr. Speaker, I offer a motion. The Clerk read as follows: Mr. MAHON moves that the House recede from its disagreement to the amendment of the Senate numbered 38 and concur therein with an amendment, as follows: In lieu of the matter proposed, insert "and in addition $70,000,000 for escalation and cost growth on prior year programs which shall be derived by transfer from 'Shipbuilding and Conver- sion, Navy 1973/1977' ". The motion was agreed to, A motion to reconsider the votes by which action was taken on the several motions was laid on the table. GENERAL LEAVE Mr. MAHON. Mr. Speaker, I ask unani- mous con nt that all Members may have 5 leg lative days in which to ex- tend their emarks, and include extra- neous matt and tabulations, on the con- ference re rt on H.R. 16243, making appropriati s for the Department of Defense, fis 1 year 1975. The SPE ER. Is there objection to the reques of the gentleman from Texas? There was objection. A TRIBU TO COUNT BASIE (Mr. ADD 0 asked and was given permission to ddress the House for 1 minute, to rev and extend his remarks and include e neous matter.) Mr. ADDAB ?. Mr. Speaker, on Sun- day night, Sep 2, a constituent of mine for many year as honored by the peo- ple of New Yo City, New York State, and the Natio or years of dedicated service. Count Basie honored on his 70th birthday by a s to attended by many of the entertain nt world's brightest stars and by man f the Nation's prom- inent citizens. Among the aws presented to Mr. Basie were the ke o New York City, an honorary doctora presented by the Philadelphia Musi cademy, a plaque from New York Sta locality mayors for the years of work behalf of retarded children by Count sic and his lovely wife, Catherine. An ov. Malcolm Wil- son proclaimed Sep ber 22 as Count Baste Day, as did the i yor of Red Bank, N.J., the Count's birt e. There have been f who have ever had the impact on Am an music to the degree that Count Be-:has. For that alone, he has earned s place in the hearts of everyone t horn he has brought joy and entert' 'ent. But for those of us in eens to whom the Count and Cather Basie have been friends and neigh s for many years, we remember most he concerns that these two people h shown to others. We appreciate the p e as much as we appreciate the perfor For those of us in Queens, we are wi to share Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 H 9458 Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 CONGRESSIONAL RECORD ? HOUSE September 23, 19 the music of Count Basle lth the world: we hold close to our however, the rsonal relationships welave hail with unique and woredertul people who h in the words of poet Robert Frost, "In good neighbors." As people from ing congressional distric n with others in honoring Count for his maw years ot star- dom, we a salute Mr. and Mrs. Basle for being d Mrs. Rosie, our good and true frien Mr. Speaker, the New York to Count Basle: A "ROYAL SALUTE" (By John S. Possibly because Count to reduce the art of leading to the casual flick of a finstar keyboard, he has rarely rtheiv recognition as he should fOr his tions to jazz. Last night, in boner of his 70th b (Which was actually Aug. 21), some Base's friends began Taft.10Pg up for lack. At a "Royal Salute" in the Waldorf-Az Hotel, jazz musicians, show business per- sonalities, political figures, friends and fans gathered to pay tribute to thm at a dinper dance that was a benefit nor the United Negro College Fund, the Cathgrine and Count Baste Scholarship Fund and the Queens women's division of the National Confer- ence of Christians and Jews, The energy that his frtencie showed in ar- ranging the tribute eonteasteevith Mr. Basie's style. With him, music appears So easy. He sits at the piano, a short, round, Impassive man, his hands moving tentativeW over the key- board as he watches the band_play. He passes signals to his men with a qdipt, un.obtrusive nod, a lifted eyebrow or a piano key touched In passing. His solos are models of spare suc- cinctness, built as much on silence as on sound. He is not, as Duke Ellington was, a prolilic or distinguished composer. The tunes that carry his name as writer are almost invaria- bly blues based on a simple Jut catchy riff. Nor is he known as an arranger as are such of his peers as Mr. Ellington er Stan Kenton. And he is certainly not the flamboyant Per sonality that Mr. Ellington was or that Kenton and Lionel Hampton are, SET HIGH STANDAIDS And yet, in his quiet, self-effacing w . Baste has shaped and inateffained band that sets standards for a swinging en- semble that have never been eq ?. When Benny Goodman was "the lra wing," it was the Baste band that pr the illus- trative definition of the wor e Ellington band may be full of exotic c . The Ine.utort band, Maynard Ferguson's d or Woody Herman's Herd can blast y t of a concert hall or even a football sta But they don't swing th the facility or the consistency, much the subtlety, that the Basle band has ? to since 1936. This ability to swing is a essential quality that Mr. Ellington recog several years before Mr. Basle had eve rrned his band. "It don't mean a thing," . Ellington wrote in 1932, "if it ain't got swing:" Simplicity i keynote of everything Mr. BaSie does. H piano style is dietillatIon of the rolli "stride" style made familiar by James Johnson and Pats Waller, the style in I Mr. Baste started out. The band that he brought out Of Kane ity in 1936 had the flexibility and, as J Jones, his drummer, Mice said, "the tee I a small combo. It was a loose, relaxed d with a repertory made up largely of hide in the RECORD of the salute BASTE n) as seemed jazz band the piano much day "head" arrangements on the tame that left plenty of freedom for the barsra eolcietS? Lester Young, Herschel Evans, Buck Clayton, Harry Edison and Mr. Basis. SENSE OP' DThreTIORT But despite his positive sensteof direst/On. Mr. Basle has not been limited to one ap- proach. When the big-band tmstles yams tumbling down at the end of the forties, most of the bands disappeared and the hand- ful that held on clung almost desperately to whatever it was that had made them success- ful in the first place. The Basle band appeared to be heading for oblivion then. The Count cut down to a septet in 1950 'and 1951. But then he came back with a band that had the same basis as his earlier band?a swinging, blues-playing band?but otherwise it was exactly the op- posite. Instead of being loose and solo- oriented, the second Baste band was so slick and impersonal that it hs constantly been referred to as a machine. And although it has had notable soloist none Of them approached the individuality o the stars of the early Beide band?except the pianist. He is the connecting link. or loose, it is Count Basle who remains stant factor in his band. Another con .t is the down-to-earth simplicity of eve Basis ?achine." There are no eancy arra dents, far-out effects. It is straight n-nome unication. he heart of it is that dec'rely simple pia tyle and an adhere . . that basic f Jazz, the blues. . Basle showed tehleamt .h . w exactly w'. e he was going right fr. he start w he called one of his band rds "Swingin' the Blues." SIX CHEERS MITTEE? DUST? (Mx. permissi minute and We THE RULES COM- BILL BITES THE LIN to addre revise and e de extraneous GOODLING. Mr. esday of last week th ee by a completely bip ? vote refused to great a r 26$, the rice subsidy bill r ? orted by the Agriculture Co I wish to commend the Rules Co tee for its action. This bill was very controversial in Agriculture Committee, having be cleared only after surviving an 18-to-1 vote On a motion to send it back to the subcommittee from whence it came on a 4-to-3 vote. The bill was strongly opposed by the American Farm Bureau Federation, the National Farmers Union, and the Na- tional Farmers Organization; by the rice growers in most areas of the United States; and by the administration un- less it were drastically amended. Now we hear that the proponents of this bill are going to try to reverse the Rules Committee's decision. I certainly hope they are not success- ful because this bill is no way to fight inflation through holding down Govern- ment expenditures. The U.S. Department of Agriculture estimates it will cost tax- payers $1.687 billion during the next years with the one amendment it seeks and $4.075 billion in the form it was nar- rowly approved by the Agriculture Com- mittee. Consumers should not be deluded into -ed and was given e House for 1 d his remarks tter.) aker, on es Com- 6-to-6 H.R. re- thinking they will get any prices than they can expect present rice program, Prop istered. Under this bill, If ric too low, the Secretary Ivo ized to pay rice grower ments to idle their la aside" program. This exercise . . point up the fu- tility of tryhog t s ito agricultural leg- islation withou t reaching son e kind of a reasona consensus both within the coimni and with the at:Minis- tration. I per y hope that the proponents of H.R. 68 would concentrate oat mak- ing t needed reforms in the rresenl. pr m to make it both equitable and wi able for all concerned rather than ting on bringing art obvious:y bad I to the floor. In order to more fully set ford) my reasons for opposing this bill, I i iclude at this point in the RECoRD thy state- ment before the Committee on Rules: REMARKS OP' aSORGE A. GOOD:UN; Mr. Chairman, thank you for the oppoi - tunity to appear today. I don't expect you will be seeing rr e at e. more in this capacity as I am retinal g at the end of this session. This probably be- ing my last apeparance before you, I Mope it will be a useful one not only for you but for our wonderful country as Well. I'm here first, as a 50-year farmer she has never taken a thin dime from the Depar ment of Agriculture, to plead with you to kill a bill that can only lead to millions of dollars being paid to rice farmers fox grow- ing rice . . . or not growing rice . . what- ever the case may be, I'm here second as a member of tae mi- nority of the Agriculture Committee. This Isn't an unusual position for me, ht t it Is unusual for the leadership ttf the Agriculture Commitee . . Bob Poage . . Bern e Stlt ? . ? Frank Stubblefield . , Walter 301* . . . Bob Mathias . Bob Price . . . and John Zwach . . to name a few, to be in that minority with me. Of course our minority is a prett thi one . . . only one vote . . . as this bill es- caped being sent back to subcommittee by an 18-17 vote of the Committee. But third, I'm here today as a Congren - man who has always tried to look a Imes legislation in the light of what's best lor our country. And that's how I know this Committee s to look at things. is very controversial bill, which comes ? at the 11th hour of the 93rd Congree imply change the rice program from tem to a payment system. 1 it does. t give farmers any mor 'pc--- w rice than the present pr, low? Ce the dmin- to get e author- 0 owr allot- rough a "set- Scot a ba The d? ttlnity t? gram d It does bitlowerth All it does meat system u ers . . . not al just those with al ments. They will get two The first are subsid these are called price-s they are desorlbed in Sand 6 of the hill. _ The second are subsidi rice . . these are called ments . . . and are descrI 6(A) on pages 9 and 10 of the b But, you say, there's a ff20, payment limit. Is there, really? Look at subsecticn (el on page 5 of the bill and you will see the e prices to consume a ce 3 y are now. set up a government, pa / - which certain rice fare.- them, mind yoi . 'sits . . will ge pa -- Approved For Release 2005/06/09 : CIA-RDP75600380R000700060018-4 cls of paymer ts. growing rie . paymeet ? 102 on pee et not gr earth g: -aside" pa,,- in Stetter!,