THE CONSULAR CONVENTION WITH THE SOVIET UNION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70B00338R000300040044-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 44
• Publication Date: August 26, 1965
• Content Type: OPEN

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August 26, 1965 CONGRESSIONAL RECORD - SENATE
speakers took issue with the Council for its
overly optimistic view. The report was criti-
cized for citing the small gold loss in 1964
as evidence of an improvement in the posi-
tion of the dollar while failing to note the
contribution of the unusually large Russian
gold sales. Mention was also made in the
Conference of the growing reluctance of
many foreign bankers to hold more dollars
and the fairly large sales of the special non-
marketable Roosa bonds, resort to which
some viewed as evidence of the dollar's weak-
ness, rather than strength.
There was some difference of opinion as to
the likely future trend in capital outflows.
One of the Conference members noted that
the fourth quarter outflows were primarily a
result of expectations, and hence could not
be considered a permanent "bulge." Thus,
one would get an overly pessimistic picture
by looking solely at the short-run trend.
Others held that investors may come to ex-
pect the replacement of voluntary by man-
datory controls at some future date, in which
case there might well be a new bulge.
Most Conference members felt that a solu-
tion to the payments problem must involve
an increase in the current account as well as
a cutback on capital outflows. To accomp-
lish the latter, we must seek an "adjust-
ment" between the fiscal and monetary poli-
cies pursued by the United States and those
of the West European countries. In the
past, this adjustment has not been satis-
factory, as illustrated by the raising of the
Federal Reserve discount rate in 1963 which
resulted In offsetting increases around the
world. Moreover, European countries have
insisted on restraining demand and stabiliz-
ing their domestic economies through re-
strictive monetary rather than fiscal poli-
cies. This has pushed up interest rates and
has made It difficult for the United States
to pursue an expansionary domestic policy
while restraining capital outflow
21185
the strength of the present system, while to be overruled by any other considera-
failing adequately to assess its weaknesses? tion without careful study. There is too
Others made the opposite criticism-that the much strife and tension, and too much
Council failed to realize that the present warmaking machinery on the earth for
system is probably as good as we can hope for,
and that probably no alternative system us to turn our backs on any attempt to
woud have provided us with as much credit make incidents of this nature, with all
over the past 15 years The conferees ap- their potential for driving our countries
peared to agree in general that the Council further apart, less likely to occur. The
should have taken a more. definite stand on suspicions and tension that those inci-
this subject, and that no monetary system dents provoke can only serve as obstacles
based upon fixed exchanges will have mach in our search for new avenues to world
change of continuing success without prior
improvement of the "adjustment" process.
Also, some insisted that the European nations
would refuse to approve improvements and
modifications until the U.S. balance-of-pay-
ments problem had been solved.
THE SOVIET UNION
Mr. COTTON. Mr. President, I had
prepared a brief speech setting forth my
carefully considered conclusions regard-
ing the proposed Consular Convention.
Though it now seems unlikely that this
measure will be acted on by the Senate
before the opening of the second session
next January, I shall deliver it at this
time for the benefit of the many con-
stituents and others who have written me
regarding this question.
There is no Member of this body who
desires world peace more earnestly than
I. There is no Member who is more will-
ing than I to endorse any measure that
reveals a promise of taking positive steps
toward insuring such a peace. The Con-
sular Convention with the Soviet Union,
Executive D, is not such a measure. 1
There was considerable support for the shall vote against it.
Council's view that Europe should cooperate There are imposing arguments ad.
with the United States, and place greater vanced. in favor of the Convention that
reliance on fiscal as against monetary re- cannot be set aside easily, Proponents
straints. As long as this solution is not, of this Convention tell us that it is a
adopted, unilateral action by the United modest but necessary step toward easing
States will have a difficult task in solving East-West tensions. They tell us that
the payments deficits problem., Several Con-
ference members stressed the importance of the consulates that will be established
improving international consultation and under this Convention will not only per-
the "adjustment" process, and criticized the form vital services for Americans tour-
Council for omitting any discussion of it. ing the Soviet Union-and 12,000 Amer-
Since the traditional measures have not as icans visited the U.S.S.R. last year-but
yet resulted in a balance, the United States that they will ameliorate our commercial,
must rely on some form of restrictions to cut economic, cultural, and scientific rela-
the outflow of capital. The Conference rec- tions with the Russians as well. Secre-
ognized the need for such measures in the
present situation, but some criticized the tary Rusk has said that the potentially
recent program as resulting in worldwide explosive incidents that occasionally
misallocation of resources? In certain re- arise because of the arbitrary arrest and
spects, and particularly so far as the banks detention policies of the Soviet police
are concerned, the present "voluntary" re- would become, under the terms of the
strictions were found to differ little from Convention, mere administrative matters
mandatory restrictions since, as one member
put it, few bankers plan to challenge the governed by its notification and access
Federal Reserve? But by and large, the con- provisions. These problems would be
ferees preferred voluntary restrictions to routinely cleared, he says, through "nor-
mandatory ones since they permit greater mal consular channels," and the chances
flexibility and, hopefully, induce better com- of a major confrontation between our
pliance. countries arising from such an incident
VARIOUS PLANS FOR INTERNATIONAL MONETARY would thereby be reduced. Had the Con-
REFORM ARE REVIEWED SYMPATHETICALLY, vention been in effect in 1963, when Prof.
BUT NO FIRM POSITION IS TAKEN Frederick Barghoorn was arrested and
The Council's report devotes considerable interrogated by the Soviet police, its pro-
attention to the possibility of improving the ponents argue, it would not have been 12
international monetary system, but its treat- days before the American Embassy was
ment of this topic was criticized on several
grounds by Conference members: some ob- informed of his arrest.
jected to what they considered a bland and These are powerful and appealing
complacent tone of the Council in extolling arguments, Mr, President, and ought not
See p. 44. 3 See p. 48.
z See p. 22. 4 See p. 24.
No. 158-17
peace and understanding. If I could be-
lieve that the net effect of Executive D,
the Proposed Convention, would be to
create a more cordial atmosphere in
which to conduct this search, I would
vote for it without hesitation.
I do not relish voting against a con-
vention whose ostensible objectives are
the protection of Americans abroad and
better Russian-American relations.
There are, however, grave dangers in-
herent in this Consular Convention
which compel me to oppose it. I wish to
emphasize these because the American
people should be made aware of them.
The Consular Convention provides the
legal groundwork for the establishment.,
on .a one-for-one basis, of consulates in
this country and in the Soviet Union.
Prior to 1948, the Soviets had three con-
sulates in this country-in New York,
San Francisco, and Los Angeles-and we
operated one in Vladivostok and were
preparing to open another in Leningrad.
The Russians closed their consulates here
in 1948, and we closed ours in the U.S.S.R.
Though we are a party to similar bilat-
eral consular conventions with many
other nations, we have never had such a.
convention with the Soviet Union, This
Convention before us codifies the proce-
dures that would be followed in the open-
ing of consular establishments and in the
appointment of their officers and em-
ployees, and sets forth their functions.
It also lists the rights, privileges, and
immunities that would be enjoyed by the
consular establishment. It is the last
section regarding rights, privileges, and
immunities that differs markedly from
previous consular conventions between
us and any other nation in the world.
It is this last section that is inimical
with the best interests of the " United
States. It is the last section that clearly
indicates that this convention was nego-
tiated by the Soviets, not as a bilateral
pact for improving Soviet-American re-
lations, but as a cold war maneuver to
enhance and expand the intelligence
gathering network of the U.S.S.R. It is
the provisions of this final section that
are repugnant to anyone concerned for
the security of the United States, and are.
inconsistent with our present extensive
activities directed at controlling and re-
stricting Russian espionage in this coun-
try.
What are these provisions, that have
convinced me that this Convention ought
not to be ratified?
My principal objection is to paragraph
2 of article 19, which states:
Consular officers and employees of the con-
sular establishment who are nationals of
the sending state shall enjoy immunity from
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21186
CONGRESSIONAL RECORD - SENATE August 26, 1965
the criminal jurisdiction of the receiving
state.
f,i?nply put, this means that the maxi-
mum penalty that we would be able to
impose upon these people for all crimes-
misdemeanors and felonies, including
espionage-would be expulsion.
"lie real danger in extending this im-
munity becomes clear when the extent
to which the U.S.S.R. employs its diplo-
matic corps for espionage purposes is
realized. According to J. Edgar Hoover,
Director of the Federal Bureau of Inves-
tigation:
Historically, the Soviet intelligence serv-
ices have appropriated the great bulk of
official representation and diplomatic estab-
lishment In other countries as bases from
which to carry on their espionage opera-
tions. Over the years, the number of such
official personnel assigned to the United
States has steadily increased.
In a later statement Mr. Hoover said:
The methods used to collect the data
sought by the Communist bloc intelligence
services are almost as varied as the types of
data which they endeavor to collect. One of
the mainstays is the collection of informa-
tion-classified and otherwise--through es-
pionage operations involving personnel le-
gaily assigned to official Soviet and satellite
establishments In the United States. The
focal nnints of these operations continue to
embassies, legations, consulates, and news or officer to visit and communicate with the I ?sk unanimous consent that the ad-
commercial agencies in our country. such detained person, does: of Herbert Hoover, Jr., be made a
part of the RECORD.
gathering of information is conducted by the VJ r. President, Secretary Rusk has em-
Communist representatives using the legal .ere being no objection, the address
cover of their diplomatic or other official phasized the Importance of these access Tl
ordered to be printed objection, the address
status to cloak their spying activities, and notification provisions to the pro- w wasftordere
Mr. President, the Consular Conven- tection of American citizens visiting
U.S.S.R. I recognize the importance and ACCEPTANCE OF POSTHUMoUs AWARD TO
tion before us would extend the legal HEiBFRT HOOVER, AMERICAN LEGION NA-
cover of these diplomats, exempting desirability of these protections, but I TONAL CONVENTION, HERBERT HOOVER, JR.,
them entirely from the criminal jurts- must urge that they be secured through POW LAND, OREG., AUGUST 24, 1965
diction of our country. But this immu- other means. We do not have such un- Commander Johnson, distinguished guests,
nity would not be extended just to Soviet reasonable detention laws as the Soviets. and members of the Amerlcan Legion; on be-
oflicials in this country. Under the most- If their intentions are just, and if this half of my brother Allan, and our families,
favored-nation clauses in consular con- pact was negotiated In good faith, why I wish to express our very great appreciation
ventions that we have previously negoti- should it be necessary for us to Imperil for this posthumous award to my father of
our national security In order for our the Legion's Distinguished Service Medal.
ated with 27 other nations, more than people abroad to receive the same cour- It is indeed a most generous tribute to his
400 nationals of other countries assigned tesy and respect and protection that we memory, and I am highly honored to be
to the United States could claim full im- invited to be with you on this occasion.
munity from criminal jurisdiction. Two have always accorded Russian visitors to Daring his lifetime my father had the
of these 27 nations, Rumania and Yugo- the United States? Why must we com- honer of addressing your conventions on sev-
slavia, are Communist countries. By plicate the work of our own counter- eras occasions. His high regard for the
virtue of the fact that we are an open intelligence people by permitting foreign Legion can perhaps best be summed up In
espionage agents to operate in this coon- his own words, when he spoke to your na-
foriety and because Nations, are host try under, the aegis of complete diplo- tionitl convention In Boston, some 35 years
for the United , we are t are already matic immunity in order that American 'go-
particularly vulnerable to the espionage tourists may be guaranteed the treat- If you will permit me, I would like to quote
activities of other countries. I might add meat that they have a right to expect? from the introduction to his speech:
that 21 Soviet nationals have used their "My fellow countrymen: It is with a great
positions at the United Nations for esplo- Mr. President, it is with great reluc- deal of pleasure that I am able to meet here
nage purposes, and 12 more Soviet na- tance that I urge the Senate not to give with the American Legion.
tionals attached to the Soviet Embassy its advice and consent to the ratification "I hope I may venture to claim, from some
in Washington have been exposed as in- of this document. I wholeheartedly year of service during the great war, a
support the various athletic, cultural, measure of comradeship with the men who
telligence agents and expelled from the and academic exchange programs now afought in that war. I un,I your va-French
from coun
ountry. This Convention tis would respect b by fur-
by conducted with the Soviet Union. I nte tt3 experience, ,aand I intend to hold in con-
rendering tl~er disadvantage us in this
rendering impotent the legal machinery would hope that more of these might be fidence, the first reaction you had from
With which we can now prosecute spies instituted, and that the number of a passing shell; and the homelike appearance
working out of foreign consulates. Americans visiting the Soviet Union of shell holes under certain circumstances. I
might also increase. Each group repre- shall maintain secret your opinion of those
"his Cnvention would forc I -c re- linquish criminal jurisdiction vertRus- Sents the possibility for people-to-people ppahssingob eindioffe once insectstoororthethemud and r sian Consular officials that might be as- relations that may gradually, ultimately, filth of the trenches, or days and weeks in
signed to this country and over more Improve relations between our countries. the vet and cold.
than 400 other such officials already here I am reminded of a line in Shakespeare's "The glories of war are not In the heart-
in the consulates of other nations. But Henry VI : breaks of passing buddies and the thousand
what of others-including Communist- Alasi bow should you govern any kingdom, tragedies of the battleline. Its glories do no-
That know not how.to use ambassa- lie ii its surroundings-they lie. rather in
block nations-with whom we might find dors. the spirit, the sacrifices, the devotion of those
it necessary or desirable to establish con- who go cheerfully and courageously Into, the
sular relations at some future date? Are Mr. President, we are a democracy-a trenches, and the ultimate triumph of those
we to exempt them today, without a nation of people. I strongly urge that loft] Ideals for which they gave their all.
thought to the fact that future condi-
ions may demand this protection? This
Convention may open a door that we can-
not close.
Speaking to the question of new Soviet
consulates in this country, Mr. Hoover
reported that:
One Soviet Intelligence officer, in com-
menting on the agreement, spoke of the
wonderful opportunity this presented his
service and that It would enable the Soviets
to enhance their Intelligence operations.
Confronted with evidence of this clar-
ity and urgency, Mr. President, I cannot
in good conscience vote for the Conven-
tion. But I would not expect, at the
same time, that we would stop search-
ing and negotiating for more satisfac-
tory ways in which to overcome the
other means be explored for encouraging
our best and most nume?ous ambassa-
dors--the American people-to exchange
visits with the Russian people. I hope
and telieve that this can be done with-
out compromising the demands of na-
tional security.
POSTHUMOUS AWARD TO HERBERT
HOOVER BY AMERICAN LEGION
NATIONAL CONVENTION
Mr. MURPHY. Mr. President, in late
days there has been much in the public
press about the unfortunate condition
that existed last weekend in Los An-
geles and great words of wisdom and
expression as to how a sclution of these
problems should be discovered.
problems that affects us in this area, I had the good fortune to attend the
particularly, the protection of our peo- American Legion National Convention
ple visiting the Soviet Union. Under last Tuesday in Portland, Oreg. On that
present Soviet law, the investigation of occa& ion two sets of remarks were made.
an arrested person can take as long as One was an acceptance of a posthumous
9 months. It is the practice of the So- award to former President Herbert
viets to refuse access to arrested persons Hoover, in which his son, Herbert Hoover,
until after tale completion of the investi. Jr., quoted his father's remarks made 35
gation. This Convention, if ratified, year.. ago. Former President Hoover's
would reduce to 3 and 4 days, respec- remarks are completely applicable to the
tively, the amount of time allowed for a present instance. The wisdom of the re-
receiving state to first, Inform the send- marts of former President Hoover would
ing state of the detention of one of its be of great value to the Members of the
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August 26, 1965
CONGRESSIONAL RECORD - SENATE
"It was inevitable that men who had lived
through that great common experience, who
had engaged in supreme adventure with
death, should combine into associations of
lifelong comradeship. Yet it was not alone
the comradeship of high adventure that In-
stinctively called your organization into be-
ing. It was the common understanding
which war called forth, the common experi-
ence from which sprang the highest emo-
tions of patriotism-that shoulder-to-
shoulder companionship in an idealism
which transfigured men's lives.
"The millions who shared in that experi-
ence came home from it rededicated to the
further service of their country. But great
as was that service, performed under im-
pulse of the high emotions of war, the serv-
ice to the great ideals of peace is ofttimes
even more difficult and ofttimes requires
more sustained courage. It was, therefore,
with deep sympathy that I witnessed the
birth of the American Legion in France in
1919.
"At that memorable meeting you sensed
this high purpose and expressed these lofty
ideals of your peacetime service in the pre-
amble to your constitution, which reads in
part:
"'To uphold and defend the Constitution
of the United States of America; to main-
tain law and order; to inculcate a sense of
individual obligation to the community,
State, and Nation; to combat the autocracy
of both the classes and the masses; to make
right the master of might; to promote peace
and good will on earth; to safeguard and
transmit to posterity the principles of jus-
tice, freedom, and democracy; to consecrate
and sanctify our comradeship by our devo-
tion to mutual helpfulness:
"That, indeed, is the real preface to Amer-
ican citizenship."
In a later passage in this speech he said-
and it sounds almost like a prophesy, today:
"During these years your thousands of
posts have concerned themselves with these
ideals of citizenship. My purpose today is to
urge you to renewed efforts-that you, as the
American Legion, as a group of men who,
inspired by the ideals of our country, went
to battle to preserve those Ideals-that you
should renew and expand your mission of
citizenship.
"We need the teaching that the foundation
of government is respect for law. A quicken.
ed interest on the part of the community can
insist upon proper enforcement of law, can
arouse public opinion, while any condition
of lawlessness remains unchecked in that
community. You can Impress upon the citi-
zens that the road of self-government is
through the discharge of our obligations at
the ballot box; to understand that the basis
of defense is a willingness to serve in our
citizen soldiery; actively to participate in
these and in a multitude of duties of citi-
zens-all are an inseparable part of the safety
and progress of the Nation."
Commander Johnson, I again wish to ex-
press the gratefulness of our family for this
award to my father. It Will, of course, find
a place of honor in the Presidential Library
in West Branch, Iowa.
And it is doubly fitting that it should be
there, for West Branch is also the place where
you make your own home. I know I speak
for the people of that community, too, in
thanking you for your years of public spirited
service to them, as well as to the State of
Iowa-and to our country.
Thank you.
Mr. MURPHY. At the same time, an
address was made by William H. Parker,
chief of police of the city of Los Angeles,
on the subject of the application of law
and order in these conditions. , I ask
unanimous consent that his remaiks be
made a part of the RECORD.
There being no objection, the address
was ordered to be printed in the RECORD,
as follows:
MAINTAIN LAW AND ORDER
(Presented to the National Security Commis-
sion, the American Legion National Con-
vention, Portland, Oreg., August 20-24,
1965, by W. H. Parker, chief of pollee, Los
Angeles, Calif.)
The consummate wisdom of those who
shaped the character of the, American Legion
is exemplified in the preamble of its consti-
tution, It is this document that gives us
direction and combines a dedication to the
principles we sought to preserve through
battle, and the responsibility we assume for
the welfare of our less fortunate comrades.
Historically, a government of the people,
by the people, and for the people, is not
noted for its longevity. This fact becomes
more apparent when we consider that our
form of government is the oldest of its kind
in the world today even though it is less than
200 years old. If this democratic Republic Is
to have any degree of permanency it must
base its existence upon respect for the rule
of law. In the true sense, a self-governing
society will only continue so long as the great
majority of its members respect and obey its
regulations. Widespread disregard of, and
disrespect for,'its laws can only lead to its
destruction. It Is this incontrovertible fact
that prompted the founders of the American
Legion to prominently Include In its prin-
ciples a dedication to the maintenance of
law and order.
The history of the United States has been
a turbulent one. Eleven of its first 40 years
of existence were spent in armed confiiict
with England. Thirty-one years later we
were Involved in a territorial war with Mex-
ico. Our internal division over the question
of slavery precipitated one of the most bloody
of all civil wars in which the casualties
(646,392) were more than double the total
casualties (320,518) this country suffered
during World War I, Thirty-three years
later we engaged in a war with Spain that
in retrospect seems somewhat futile when
you consider the present fate of Cuba.
Then came our participation in the Euro-
pean conflict known as World War I. Our
entry into this war was considered essential
if we were to survive as a free people, Al-
most 5 million Americans participated in
our military forces as we fought to preserve
democracy. We were on the winning side,
and thus we believed we had permanently
put down the threat of foreign aggression
to our way of life.
While the bulk of our militaryrpersonnel
was still overseas we amended our Con-
stitution to prohibit the manufacture, sale,
or transportation of Intoxicating liquors for
beverage purposes. This noble experiment
called prohibition was honored far more in
the breach than in the observance. The
flaunting of this law by the Nation as a
whole served to substantially deteriorate
respect for law and law enforcement. Local
police were expected to close their eyes to
liquor violations and were, at the same time,
condemned for their duplicity.
The entire machinery of the administra-
tion of criminal justice was tainted by this
category of lawlessness. We have long since
learned that disrespect for one law leads to
disrespect for all laws. Prohibition pro-
duced this very result and led to the creation
of a criminal underworld with political
alliances in our large population centers.
Thus the rule of law was dangerously eroded
and the very foundation of our form of Gov-
ernment imperiled. In 1933, with the repeal
of prohibition, this threat to our national
character abated as we began the long and
painful process of attempting to restore
respect for, and confidence In, our law en-
forcement agencies.
While we were struggling out of a great
economic depression, two new forces inimical
21187
to our political philosophy were gaining in-
ternational strengt. L and prominence. The
Communists were in complete control of
Russia and Hitler was beginning to re-
awaken the German dream of conquest and
military might. Progressively our dream of
continued peace in the world was shattered
as Japan began to train for enforced terri-
torial expansion. After Hitler's invasion of
the lowlands, it became increasingly evident
that, while we had gained military victory in
World War I, we had lost the peace, and
any hope we had of remaining militarily
aloof from the armed conflict called World
War II was destroyed when the Japanese
perpetrated their infamous attack upon
Pearl Harbor. Once again we were at war;
a - war. in which we were to commit over 16
million men and women to military service
and in which our casualties totaled 1,076,245
of which 405,399 were fatalities. In passing,
I am compelled to remind you of three
factors that are either little known or have
been forgotten:
1. Russia and Germany attempted to nego-
tiate a nonaggression pact which failed only
because Germany would not concede to Rus-
sia's control over the Dardanelles.
2. If Rommel had not been stopped in
Africa and had been able to join hands with
Japan through the Suez Canal, we would
have lost the war.
3. The margin of victory at the Siegfried
line was a narrow one and our success hung
in the balance there.
With the arrival of V-E Day, our ultimate
and total victory became assured. Then the
world was given a preview of the unleashed
power of the atom, causing Japan to aban-
don all dreams of conquest and submit to
the allied might. Thus with the celebration
of V-J Day, we stood at the pinnacle of
military success crowned with the greatest
victory in arms the world had ever seen.
Once again our Nation had sacrificed the
blood of its youth and much of its natural
resources to preserve human freedom, Surely
these great sacrifices we were called upon
to make would register indelibly in the mem-
ory of America and dissuade us from repeat-
ing the postwar errors of World War I.
Yet, examining our position in today's
world, it is difficult to realize that we are only
20 years away from the position of world
power that was ours at the close of 1945.
The Korean stalemate, the establishment
of a Communist stronghold in Cuba, the
involvement of our military forces in south-
east Asia, where the enemy chooses the
battlefield and the time of the conflict, The
anti-American demonstrations around the
world that caused Bop Hope to quip that an
American tourist seeking the location of the
U.S. Embassy need merely to ask to be di-
rected to the ruins. The growth of the
communistic world which even though de-
visive is agreed in its opposition to our form
of government. The possession of the Chi-
nese of nuclear capability and its 700 million
inhabitants that suggests a review of the
history of Genghis Khan.,
One of the unanticipated products of
World War II was a worldwide social revolu-
tion that continues unabated. One of the
international products of the revolution has
been the emergence of 60 new nations during
this postwar period. Old alliances have been
destroyed; colonialism has almost disap-
peared from the world scene, and political
instability dots the globe. Those who be-
lieved our military success in World War II
would insure a continuation of this Na-
tion's internal status quo were doomed to
disappointment. The social revolution has
had, and continues to have, marked effect
upon life in America.
Unfortunately, revolutions are generally
directed against existing institutions and
governments. Even in this country the emo-
tional effect of the revolutionary spirit con-
stitutes a challenge to the rule of law.
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CONGRESSIONAL RECORD - SENATE .71 a r, it ' t __"i9 19S5
In evaluating the comp-,rzt'vc positrons in
the bloodless conflict between the Com-
munist bloc of nations and the United States,
President John F. Kennedy once said, "If we
are to prevail in the cold war, the self-
disciollne of the free mind must match the
iron discipline of the mailed fist." If there
is merit in this appraisal, we must be gravely
concerned about the increasing evidence of
the widespread deterioration of discipline In
America. As I write this the news media
are reporting that 30,000 college students In
6 States are engaged In de-tructive riots
during this year's celebration of the Decla-
raticn of Independence. Coupled with a sky-
rocketing crime rate and a growing attach-
ment to the philosophy of civil disobedience,
these trends seriously threaten the internal
security of the United States. Progressive
deterioration of a sense of personal responsi-
bility and an Increasing lack of respect for
law and order constitute a dangerous erosion
of the rule of law and threatens the very
foundation of our Republic.
In a recent pamphlet entitled "Respect for
Law and Order," directed to. both pupils and
their parents, the superintendent of the
Los Angeles city schools warned, "Only as
pupils grow up with respect for law and
order can this Nation realize the great prom-
ise that is manifest in the Declaration of
Independence and in the Constitution and
Bill of Rights." In a direct message to the
parents, he observed, "There are many chal-
lenges facing our society today. But there
is no challenge that deserves our attention
more than the need to instill a continuing
respect for law and order in our young peo-
ple. All of us have noted with alarm the
marked increase in antisocial behavior by
some of the world's youth. We have seen
increases in youthful violence, vandalism,
and physical attacks upon those who are
charged with the responsibility of main-
taining order. This disregard for law is not
limited to the youth of our country, but
rather it is an attitude that has infested
many segments of our society, The causes
of this apparent breakdown in respect for
law are many, but Its presence is warning
enough that something must be done."
The crime threat to America's freedom is
fully recognized in a message from the Presi-
dent of the United States entitled "Crime,
Its Prevalence, and Measures of Prevention,"
and directed to the Congress on March 8.
1965. Among other things, the President
said. "Crime has become a malignant enemy
in America's midst. Since 1940, the crime
rate in this country has doubled. It has
increased five times as fast as our popula-
tion since 1958. In dollars the cost of crime
runs to tens of billions annually. The hu-
man costs are simply not measurable. The
problems run deep and will not yield to
easy answers. We must Identify and elimi-
nate the causes of criminal activity whether
they lie in the environment around its or In
the nature of individual men. We must ar-
rest and reverse the trend toward lawlessness.
'This active combat against crime calls
for a fair and efficient system of law en-
forcement to deal with those who break our
laws. It means giving new priority to the
methods and institutions of law enforce-
ment-to our police, who are our frontline,
both offensive and defensive, in the fight
against crime. There is great need not only
for improved training of policemen, but for
all people to learn about, to understand, and
to t.ssist the policeman in his work."
to his message, the President also said,
?.s the first step, I am establishing the
",resident's Commission on Law Enforce-
ment and Administration of Justice.'" This
C )remission was appointed on July 26, 1965.
I i an address delivered In the U.S. Senate
on June 24. 1985, labeled "Unprecedented
Lawlessness in the United States," Senator
MCCLELLAN charged that the wave of un-
precedented lawlessness in this country is
Imperiling the goals of the Great Society.
He pointed out that 7,000 major crimes are
committed in the United States every day.
In commenting on the future of crime he
said, "All of us-every citizen-haa a duty
and a responsibility to see that our laws are
enforced: a duty to support and assist our
law enforcement officers in their efforts to
protect society. ? * ? The crime rate In-
crease is more than distressing-It is alarm-
ing. From 1958 to 1984, the total major
crimes in this country jumped from 1,645,-
200 to 2,604,400--an Increase of 959,200 in
that 7-year period. In 1984, there was an
increase of 13 percent over 1963. By 1975,
It is estimated that our population will reach
225 million. A projection of the crime rate
increau-c at 10-percent annually and not at
the 13-percent increase that occurred In
1964. Indicates that 10 years hence our cit-
izens will have more than 7 million major
crimes Inflicted upon them. That would be
one major crime for each 32 people In the
United States. Projected at the same rate of
10 percent until 1985, it is Indicated that
more than 18 million major crimes will be
committed In that year, and with an esti-
mated population 266 million, that will be
one major crime for each 15 people."
Commenting on police casualties and the
factor of recidivism in connection with these
fatal assaults, the Senator said, "In the last
5 years there have been 225 police officers
killed by criminal action according to data
collected by the Federal Bureau of Investi-
gallon. Of the 293 criminals responsible
for these police murders, 78 percent had prior
records of arrest. Over half had previously
committed crimes of violence such as rape,
robbery, and assault with a deadly weapon.
Six of the officers were killed by paroled
murderers. Almost a third of the killers
were on parole or probation at the time of
the murder. More than 25 percent had been
paroled on two or more occasions after con-
viction for serious crimes."
It seems rather paradoxical that, at a time
when we are losing the war against crime,
our high courts would afford greater pro-
tection to the criminal offender by placing
new and crippling restrictions upon police
activity In defending this "judicial revo-
lution." a California Supreme Court justice
recently stated. "The recent far-reaching de-
cisions of the U.S. Supreme Court highlight
a principle that is so deeply ingrained In
our society and so universally accepted that
its very statement seems to be a truism.
This country has been founded upon the
principle that government should afford to
the individual the opportunity for self-real-
Ization and self-expression, and that the law
should serve as a means to that end. It
is the application of the concept of individ-
ualism to a mass society, however, that is
anything but simple. In the field of criminal
law the current sensitivity of the courts to
the offender as an Individual has led to new
legal definitions. A host of cases of the U.S.
Supreme Court, followed by many State
courts, attest to a present-day Insistence
upon the full protection to the individual of
due process In the criminal trial."
On the other hand, there are many au-
thorities who believe the courts have gone
tor) far in protecting the criminal against
the application of law enforcement. A U.S.
district judge in Tennessee declared that the
U.S. Supreme Court is protecting the ac-
cused at the expense of society. He stated
that the Court has been creating fundamen-
tal rights for accused and hardened crim-
inals where none existed before. He said,
"The conviction of the guilty is surely a
matter of some concern. Otherwise, the mit-
lennluni of criminal justice will have arrived
when our trial processs make it impossible
to convict anyone."
In a speech this summer the president
of the American Bar Association said that
while "the safeguards of fair trial must
be preserved, the right of society and of each
individual to be protected from crime must
never be subordinated to other rights. When
we talk of individual rights it Is well to re-
member that the right of citizens to be free
from criminal molestation is perhaps the
most basic individual right.' The ABA pres-
ident emphasized: "Unless; this right is
adeqLately safeguarded, society itself may
become so disordered that in the end all
rights will be endangered."
Some of us believe that, in their zeal
to control police conduct, the courts have
violated the historical balance among the
three branches of government. The police
are part of the executive branch of govern-
ment and we derive our authority from acts
of tt.e legislative branch. Yet, the new
rules imposed upon its by the courts deter-
mine our effectiveness. At the same time,
the courts reject any sense of responsibility
for the rising crime rate. In this connection,
a law professor at the Uetversity of Chi-
cago stated, "* * * The courts' powers are
very limited ones. But certainly the judicial
branch has made inroads on the power of
the executive and legislative branches, * * *
Quite often the majority of the Court feels
perfectly free to decide whet is best for the
Nation, and then to say theI this Is histori-
cally a constitutional mandite that has just
come to light."
It seems to me that, while stressing the
intentions of our Founding Fathers as a basis
for these new rules in the criminal law, it
migh, be well for our judiciary to review a
section of Washington's Farewell Address
which reads as follows:
"It is Important likewise, that the habits
of thinking In a free country should inspire
cauti an in those entrusted with its admin-
istration, to continue to confine themselves
with i a their respective constitutional spheres,
avoiding In the exercise of the power of one
department to encroach upon another. The
spirit of encroachment tends to consolidate
the powers of all the Departments in one,
and thus to create, whatever the form of gov-
ernment, a real despotism. A just estimate
of that love of power, and the proneness to
abuse it, which predominates in the human
heart, is sufficient to satisfy us of the truth
of the position."
It is interesting to note that the social
revol ition has brought with it crime prob-
lems In other nations such as England. In a
recent article, Lord Shawcross, Britain's for-
mer Attorney General, declares that crime
does pay and that the law Is too heavily
loaded in favor of criminals. He calls atten-
tion to a 250-percent increase in burglaries
and t 500-percent increase In crimes of vio-
lence in England since World War II. He
estimates that only 15 percent of the crimes
actually committed are known to the police,
and he cites the London experience of solving
one out of every four crimes reported. This
clearance rate is about the same as in the
United States. Here again the odds favor
the criminal as the perpetrators of three out
of four of the major criminal offenses re-
ported to the police remaining unidentified,
Another factor of the social revolution
that has an eroding effect upon the rule of
law is the practice and philosophy of so-
callei civil disobedience. T'his is a revolu-
tionr.ry tool utilized to o', erthrow existing
gove:'nments. Mahatma Gandhi used it to
overthrow the British rule of India. Those
who glibly compare the civil disobedience of
today with such acts as the Boston Tea
Party must realize that this historical event
was one of a series that Rd to a full revo-
lutionary war and the dissolution of Brit-
ish Colonial rule.
The justification for acts of civil disobedi-
ence is that a man should not obey a law he
believes to be unjust If he is prepared to suffer
the consequences of the N iolation he com-
mits The great danger underlying this
theory 1s that every man becomes his own
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August 26, 1965
CONGRESSIONAL RECORD - SENATE 21189
supreme court, and the number of laws that
he may rationalize subjectively as unjust is
unlimited. Recently retired Supreme Court
Justice Charles E. Whittaker delivered an
address on this subject, Justice Whittaker
believes that, "A large part of the current
rash and rapid spread of lawlessness in our
land has been, at least, fostered and influ-
enced by the preachments of self-appointed
leaders of minority groups to `obey the good
laws, but to violate the bad ones'-which, of
course, simply advocates violation of the laws
they do not like, or, in other words, the
taking of the law into their own hands."
He decries the applauding of these unlawful
acts in high places, and the general appease-
ment and lack of punishment that follows
them. The Justice points out that the tres-
passes involved in many of the demonstra-
tions constituted criminal conduct and thus
could not properly be labeled either peace-
able or acts of civil disobedience, but rather
constituted criminal disobedience. He quotes
Justice Black joined by two other Justices,
in a statement written in June, 1964, as
stating, "Force leads to violence, violence to
mob conflicts, and these to rule by the
strongest groups with control of the most
deadly weapons"
It is but a short step from. minor infrac-
tions to mob violence and widespread dis-
order. Those who advocate the violation of
laws that-have neither been repealed nor de-
clared unconstitutional advocate anarchy.
The countenanced flaunting of the law in
emotional situations involving large num-
bers of people can result in epidemic disorder
beyond the capabilities of our law enforce-
ment agencies.
May I suggest the time has come for the
American Legion to concentrate its efforts
upon the maintenance of law and order. In
our efforts to understand and support the
appropriate measures involved in our na-
tional defense it is sometimes difficult to
perceive the truth. , The magnitude of the
problem and the technology involved tends
to overwhelm the most of us.
This is not the case, however, in supporting
the rule of law. This is a community situa-
tion where the arena of conflict lion the
local level. This is a field in which the
Legion can have impact in every community
where a Legion post exists. I would suggest
that the national commander elected at this
convention could render this Nation a serv-
ice by exhorting every American Legion post
in the United States to adopt as its major
program for the ensuing Legion year a local
emphasis upon respect for the rule of law
and the maintenance of law and order.
I believe that the great majority of the
people of this Nation eagerly await the lead-
ership that will demand that our laws be
respected and obeyed. The Legion can furn-
ish this leadership and their help to restore
the internal security of the United States
of America.
REQUEST FOR COMMITTEE MEET-
ING DURING SENATE SESSION
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that the Com-
mittee on Labor and Public Welfare be
authorized to meet during the session of
the Senate today.
Mr. KUCHEL. Mr. President, reserv-
ing the right to object, let the RECORD
show that a member of the minority
requested the minority leadership to
object to the request. Therefore, I
object.
The PRESIDING OFFICER. Objec-
tion is heard.
Nation, is passing through still another
cosmic storm of mob violence and riot-
ing. Regrettably, this onerous phenom-
enon appears to be becoming. a regular
part of American life. Last year it was
New York, Philadelphia, Hampton
Beach, Seaside, and other places which
witnessed these brutal and massive flare-
ups and total disregard of law and order.
This year the storm has already spread
to bring about a shameful situation in
more of our cities. Before the course is
run, there is no telling what other com-
munities may be enveloped by it.
Specialists in these matters ascribe this
mobism to a complex of factors. But
whatever the factors may be, hair trigger
situations build up in which some minor
incident sets hundreds and often thou-
sands of Americans on a law-defying
rampage in which lives are destroyed and
countless millions of dollars of property
is damaged or looted.
Whatever the causes, one factor
frequently cited or bandied about as a
principal factor and it is, in my judg-
ment, most invalid. I refer to the loose
charge of "police brutality." The police
of this Nation have their faults as do
any other comparable group. On occa-
sion they make errors of judgment; they
do or say the wrong thing. Who
does not? But taken as a whole the
quality and professional dedication of
the Nation's police is outstanding.
Their job is neither to make the laws nor
to administer justice under them. Their
job is to enforce 'the laws; all the laws,
Federal, State, and local, and to safe-
guard the lives and property of all the
inhabitants in their respective jurisdic-
tions. Of course, some people will re-
gard some laws as unjust and other peo-
ple will regard other laws as unjust, and
mobs have no regard for any law. The
police are not privileged to take sides or
to discriminate as among laws. Their
job is to uphold all laws and, on the
whole, they do an excellent job of it.
Further, the police are not responsible
for the complex of social, economic, or
whatever other causes may bring situ-
ations to the hair-trigger point. But
they are there when the storm breaks.
It is they who are called to quell it. And
it is they who are exposed to the brunt
of the fists, the feet, the bricks and bats,
the Molotov cocktails, the bullets, and
whatever, which are let loose.
It is they who risk their lives in an ef-
fort to restore some semblance of publiic
order and safety. It is all very easy to
talk of police brutality from a secure
place and after the storm has passed.
But mob violence is not a picnic; it is,
as I noted, more like a cosmic storm and
it is the police who are exposed to its
furious core,
Police work is a dangerous occupation
at all times, even when on the surface
the community on the whole is calm.
The individual criminal or the gangsters
or the reckless drivers are always present
and active. It is the work of the police,
continuous and indefatigable, on which
the security and safety of the inhabitants
of every community in the Nation de-
pends. But this vital work does not pay
a princely wage; there are no bonuses;
there is no extra pay for risk or hazard-
Mr. MANSFIELD. Mr. President, in ous duty. On the contrary, the general
overtime and appearances in court and
whatnot on the policeman's own time.
In this great metropolis of Washington"
the Capital of the Nation, a policeman
begins his service at a salary of $5,000
or. $6,000 a year. Even with a sterling
record, his salary increments are neither
great nor rapid. It is no wonder that
there is no great rush of qualified appli-
cants for these jobs and active recruit-
ment beyond the metropolitan area is
necessary.
At the prevailing wage for policemen,
it appears to me somewhat excessive, to
say the least, to expect them to be not
only defenders of the peace and up-
holders of the law, but lawyers, sociolo-
gists, ministers, social psychologists,
judges, first-aid men, and obstetricians.
Yet, they are not only expected to be but,
in fact?often do perform one or more of
these functions in an emergency.
So I should think that the communities
throughout the Nation would be well
advised to give their police forces the
support they deserve and to do all they
can to see to it that they are paid a re-
spectable salary and encouraged in every
way with the wherewithal to improve the
quality and efficiency of their service.
And it is certainly time to stop dismiss-
ing the problems of mob violence and
mass defiance of law in the Nation by
means of the blanket and glib charge of
police brutality. On the contrary, the
generally outstanding work of the police
forces of the Nation has acted as an es-
sential control over these problems,
pending their deeper solution. The men
and women who compose these forces
deserve the thanks of all of us. And they
require a lot more support-financial
and otherwise-if these problems are not
to go entirely out of control before they
begin to be solved.
The PRESIDING OFFICER. The
Senator from Ohio is recognized.
Mr. LAUSCHE. Mr. President, I com-
mend the majority leader for the state-
ment which he has just made in defense
of the policemen of our country.
It is rather shocking to receive the
report that in Los Angeles they are trying
now to ascribe what happened to the bru-
tality of the police. Only the most bra-
zen mind would contemplate making a
statement of that kind.
I join with the Senator from Montana
in what he has just stated.
SHIP REPAIR, ALTERATION, AND
CONVERSION-CORRECTION OF
THE RECORD
Mr. COTTON. Mr. President, during
the entire session yesterday, I was de-
tained in the Appropriations Subcommit-
tee dealing with the supplemental ap-
propriation bill, with only an opportunity
to rush over here and vote, and then re-
turn. Because of that fact, I sent over
for insertion as a statement in the REC-
ORD remarks involving the so-called 65-35
formula for shipbuilding as between pub-
lic and private yards, which is vital to
the people of New Hampshire, because of
our Portsmouth Navy Yard.
The statement was not inserted in the
RECORD despite the fact that other Sena-
tors, including my distinguished col-
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21190
that point and discussed it at some
length.
I suppose it is the price a Senator pays
for serving on a committee that is con-
scantly in session while the Senate is in
session, endeavoring to get appropriation
bills to the Senate to expedite adjourn-
ment. But it is a price to pay, particu-
larly when the people of my State fail to
find my voice raised in their behalf when
other voices are being raised.
For that reason, I ask unanimous per-
mission to read that statement, which is
only 2 pages long, at this time. I ask
unanimous consent that it may be in-
serted in the permanent RECORD at the
point in the discussion yesterday involv-
ing this point.
The PRESIDING OFFICER. Without
ob ection, it is so ordered.
Mr. COTTON. Mr. President, the
Portsmouth Naval Shipyard in Ports-
mouth, N.H., is fighting for its life. The
Secretary of Defense has ordered that
this yard be phased out over a period of
if) years, a decision which I cannot ac-
cept as wise and expedient. This action
presumably was based, in part at least,
on the determination that the Ports-
mouth yard is not economically competi-
tive. The management at the yard and
the workers at the yard have jointly ex-
tended every effort to disprove this con-
clusion over the past few months, and
remarkable progress In efficiency and
productivity has been achieved. But we
can only prove our mettle by having full
opportunity in the construction, conver-
sion, alteration, and repair of Polaris
and attack submarines,
It is for that reason that I express my
concern about the restrictive language
recommended by the Senate committee,
which would limit the use of funds for
ship repair, alteration, and conversion,
so as to provide that at least 35 percent
of such work shall be performed by pri-
vately owned shipyards. I cannot con-
cede, as the language in the report sug-
gests, that this is a reasonable, equitable,
or desirable distribution of work between
private and public yards, If there is one
area where the public yards admittedly
excel, it is in the field of alteration and
repair. On this point, I Invite the at-
tention of the Senate to a statement
contained in the summary of "Study of
Naval Requirements for Shipyard Ca-
pacity," issued by the Department of De-
fense on November 17, 1964, in support
of the decision to close some of our public
yards,
In respect to conversion, alteration, and
repair (CAR) work, the studies show that
in many cases It Is cheaper for DOD to per-
form such work in-house. This results from
the fact that the naval shipyards which must
be maintained for strategic and operational
rea.ons have a high fixed overhead cost
which continues regardless of workload as-
signed. Hence, if the volume of CAR work
performed in the naval shipyards were in-
creased from the present level of 65 percent
to the former level of about 80 percent, it is
believed the overall savings to DOD, at least
in the short run, would be $10 to $15 million
annually.
Mr. President, it is clear from this
statement that military authorities
themselves would prefer to return to the
former distribution, which resulted in
80 percent of the repair work being done
CONGRESSIONAL RECORD - SENATE Augivst 26, 1965
in public shipyards. And it is interest-
ing to note that during 1965, the Secre-
tary of Defense found it necessary to
authorize several exceptions to the 65-35
formula in order that the necessary work
might be performed where it could be
handled most satisfactorily, and that was
in our public facilities.
I realize that due to the parliamentary
situation it is virtually impossible to
revise their formula in the bill now be-
fore the Senate. However I feel strongly
that we should not further starve our
already hungry public yards and that,
moreover, we should not tighten this al-
ready restrictive language, by making it
even more difficult for the Department of
the Navy to obtain Its repair work on our
fiaht.ing ships when and where it needs
it.
FORTY-FIFTH ANNIVERSARY OF
SERVICE OF MARK TRICE IN THE
SENATE
Mr. CURTIS. Mr. President, I regret
it was impossible for me to be present
last week when Mark Trice observed his
45th anniversary of service with the U.S.
Senate. It was necessary for me to be
absent; otherwise I would have joined
my colleagues in paying well-earned
tribute to a man who, day in and day
out, serves with such quiet efficiency.
Mark Trice personally has been very
helpful to me throughout the decade I
have been a Member of this body. When
I moved from the House side of the Capi-
tol to the Senate side, it was Mark Trice
who gave me valuable guidance and
counsel. I am grateful to him for that
early assistance and for his continuing
efforts to anticipate and meet the multi-
tude of requirements his office entails.
I wish to associate myself with all the
commendatory remarks made about
Mark Trice on August 19 and since. I
especially wish to Join the distinguished
lady from Maine [Mrs. SMrrsl who said
that Mark Trice must have been born
in the Senate Chamber to have been with
the Senate for 45 years. Mark indeed
does appear to have escaped the ravages
that one might expect to be suffered by
a man who has been at the very center of
hectic Senate activity for so many years.
I salute you, Mark, and congratulate
you upon having compiled such a distin-
guished record of service to the Senate
of the United States. I wish you well,
too, for many more years of association
with this body.
DANGER SIGNS IN INTERNATIONAL
MONETARY SCENE
Mr. HARTKE, Mr. President, trou-
blesome developments on the interna-
tional monetary scene continue to cloud
the future of the unprecedented pros-
perity which the United States has now
been enjoying for 54 months. One sure
sign of deflationary pressure in any
economy-domestic or international-is
a reduction in the available supply of
money, In the first half of 1965, for the
first time in many years, the world
money supply declined. According to
the August edition of the International
Monetary Fund's International Finan-
cial Statistics, total world holdings of
gold, reserve currencies, and IMF draw-
ing rights fell $320 million in the 6
months ending in June.
As Edwin L. Dale, Jr., reported in the
New York Times of August 9, 1965:
There are two main reasons why liquidity
declined In the first 6 months of this year.
One factor was the cashing in of U_S. dollars
for gold by a number of countries led by
France ' * '. The second reason was the
heavy speculative demand for gold by pri.
vate boarders. This demand absorbed all
new-mined gold and, In addition, several
hundred million dollars of official reserves.
I ask unanimous content to have the
New York Times artb,le, "Supply of
Money in World Drops," inserted in the
CONGRESSIONAL RECORD at the conclusion
of ply remarks.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
(See exhibit 1.)
Mr. HARTKE. Mr. President, for-
eigr.ers have not been drawing dollars
out of the United States simply out of
fear for the stability of the dollar. On
the contrary, the dramatic success of the
Federal Reserve and Commerce Depart-
ment programs to restrain private ex-
ports of dollars has had a deflationary
impact, as well, that is already evident.
Thus, Ed Tyng, writing in the Journal
of Commerce of August 2, 1965, re-
ported :
AE the United States has succeeded in
ending the balance of payments dollar flow
to Europe, chiefly by curtailment of bank
lending and corporate insesting under the
foreign lending restraint program, Europe
has replaced the dollars it failed to gain by
drawing upon accumulate. dollars here and
by some moderate sales of Treasury securi-
ties held mainly for foreign central bank
account.
The current issue of the Federal Re-
serve Bulletin, cited by Mr. Tyng, states
that at the end of May U.S. short-term
llab:lities to foreigners had declined
$1,43$ million below the December 1964
lever. These withdrawals of funds from
U.S. banks act directly to reduce the
availability of credit to finance our con-
tinuing prosperity.
I ask unanimous consent to have the
Journal of Commerce article, "Foreign-
ers Cut Deposits in U.S. Banks," in-
serted in the CONGRESSIONAL RECORD at
the conclusion of my remarks.
The PRESIDING OFFICER. Without
objection, it is so ordered.
(See exhibit 2.)
Mr. HARTKE. Mr. President, the
first half of 1965, then, there were two
prilre deflationary forces at work in the
world-official foreign reduction of dol-
lar 1?.oldings and private speculative pur-
chases of gold. Both forces were, in es-
sence, speculations against the dollar and
against the entire postwar monetary
system based upon the dollar. The ad-
ministration has now moved powerfully
to halt speculation against the dollar,
But, by ending the U.S. payments deficit,
it has added a new deflationary force
for the second half of the year and
longer. In a national economy, any ex-
ternally caused reduction in the money
supply can be offset by the central bank.
But in the international economy, under
the presently constituted international
Approved For Release 2005/08/16 : CIA-RDP70B00338R000300040044-3