SMITH HAS NEW NEWS, ALL BAD , FOR RAYBURN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP71B00364R000600070001-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 29
• Document Creation Date: December 16, 2016
• Document Release Date: June 24, 2005
• Sequence Number: 1
• Publication Date: February 18, 1961
• Content Type: NSPR

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' ?ASU'GI ON
r, I8,I96 9
engirieered,F
This time it was a pair of Ito keep watch on the Cenraa
411 Bad, for Rayburn
Chairman Howard W. Smith, dead set against the TV pro
whose Rules Committee was posal and is reported not to
enlarged because of liberal keen for the fuel policy mean
complaints that it moved too' ure.
Yesterday, Smith ferrete(
slowly, continued his new out of the files dust-laden pro
burst of activity yesterday and posals to halt spending with
came up with more had news out specific congressional ar
for Speaker Sam Rayburn. propriations and to set- up
Joint House-Senate committee
r~tt as New News,
Government spending and to! He set them also for hear
let Congress ride herd on the ing next week, despite the
Central Intelligence Agency. fact that Rayburn is known tc
oppose h(M Pf 9? -~ _...._x
The Virginian already ha ,
discovered, and ordered fo
hearings next week, long"
pending resolutions to ope
the House and its comanittee
to radio and television broad-
casts and to order a congres-
sional study of a national pol-
icy on fuels.
Rayburn, who
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CONGRESSIONAL RECORD - DAILY DIGEST i `' )ruary 23
Committee Investigations: By voice votes the House
adopted H. Res. 92, 55, 98, and 141, which authorized
studies and investigations by the- following standing
committees of the House, respectively: Interior and
Insular Affairs, Science and Astronautics, Merchant
Marine and Fisheries, and Education and Labor.
Pages 2420-2421
Meteorology: The House complied with request of the
Senate for the return of S. 681, authorizing the Secretary
of Commerce to enter into contracts for the conduct of
research in the field of meteorology. Page 2424
Calendar Wednesday: Pursuant to a unanimous-con-
sent request the House agreed to dispense with Calendar
Wednesday business of March I. Pages 2424-2425
Legislative Program: The legislative program for the
week of February 27-March 4 was announced by the
majority leader. Pages 2424-2425
Program for Monday: Adjourned at 3:53 P?m. until
Monday, February 27, at 12 o'clock noon, when the
House will act on 16 resolutions providing funds for the
expenses of committee studies and investigations which
have been authorized by the House.
Committee Meetings
FEED GRAIN
Committee on Agriculture: Subcommittee on Livestock
and Feed Grains met in executive session on H.R. 4510,
to provide a special program for feed grains for 1961.
No announcement was made and the subcommittee will
continue on this subject Friday, February 24.
MILITARY POSTURE
Committee on Armed Services: Heard a briefing by
Robert S. McNamara, Secretary of Defense, and Gen.
L. L. Lemnitzer, Chairman, Joint Chiefs of Staff, in an
executive meeting on military posture. The committee
will continue in executive session on Friday, February
24, on this subject.
ORGANIZATION
Committee on Banking and Currency: Held an execu-
tive organizational meeting. The subcommittees were
appointed.
MINIMUM WAGE
Committee on Education and Labor: Special Sub on1-
mittee on Labor began executive consideration of H.R.
3935, to amend the Fair Labor Standards Act of 1938 in
regard to increasing the Federal minimum wage to
$1.25 an hour. No final action was taken on the bill.
The committee will continue on this subject Friday,
February 24.
COMMITTEE EXPENSES
Committee on House Administration: 0rdered favor-
ably reported to the House the follow'n resolutions
providing funds for expenses of r he f= )lowing com-
mittees:
H. Res. 94, Agriculture, $50,000;
H. Res. 79, Armed Services, $150,000;
H. Res. 144, Banking and Currency, $ s._c;,ooo;
H. Res. 149, Education and Labor, $63 .;c,oo;
H. Res. 61, Foreign Affairs, $150,000;
H. Res. 70, Government Operations, $(4",000;
H. Res. 158, House Administration, $2 %,E goo;
H. Res. 128, Interior and Insular Affai ;, $6o,ooo;
H. Res. 165, Interstate and Forei.-r Commerce,
$435,000;
H. Res. 68, Judiciary, $200,000;
H. Res. 99, Merchant Marine and Fisl n:aged in all
fields of intelligence.
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8712 CONGRI, June 1
Mr. BROWN. We understand that
they do not investigate muggings in
Washington, but the gentleman from
Ohio [Mr. BROWN] is aware of the fact
that they do engage in certain intelli-
gence activities, one way or another. I
may add for the gentleman's benefit that
if his committee has not studied the
problem perhaps our subcommittee will.
Mr. BOW. When any Foreign Service
officer makes a report to the Secretary
of State he is indulging in intelligence
work. He reports as to the conditions in
the country. But as far as other types
of intelligence such as we have heard
about recently are concerned, they are
not a part of the functions of the State
Department.
Mr. BROWN. Let me ask the gentle-
man this direct question, if I may: Has
the gentleman's committee found any
indication that any'so-called intelligence
agent or any person engaged in intelli-
gence activities, that is, in the State De-
partment, has taken any action or had
taken any action in connection with the
situation in Cuba?
Mr. BOW. None that I know of.
Mr. BROWN. Prior to this time?
Mr. BOW. Not that I recall.
I should like to point out before clos-
ing, and I am about to close, one other
area that has disturbed me somewhat
and that is the contributions being made
by agencies of the United Nations to
some of the, countries of the world
through some of the organizations. Per-
haps we can. go into all of these later on
more in detail. I am using figures now
from memory and not with the facts be-
fore me, but I am pretty close to them,
:I am quite shire.
There are; as you know, certain agen-
cies of the United Nations where we
make very substantial contributions to
these agenciesand have no control over
the manner in which the money is being
used. This : is a matter I think the
proper committees of the House should
go into, and our committee :perhaps at
some time will go into it. I have in
mind the Pan American Heath Organ-
ization. We know that the United States
is now contributing about 66 percent of
the funds for Pan American Health.
We also know that since the advent of
Castro in Cuba, and particularly within
the last year, they have about tripled
the amount of funds going into Commu-
nist Cuba. Here we have the strange
situation of 66 percent of these funds
being contributed by the United States
to the United Nations in connection with
the Pan American Organization, and
then they use these funds to further the
efforts of Mr. Castro in Cuba. This is
a story that I think will unfcld later on
and be of great interest to the members
of the committee.
You also have the so-called Hoffman
project. The funds there are being di-
verted for the use of Communist coun-
tries. We are therefore making con-
tributions to Communist pro;iects.
Mr. GROSS. Mr. Chairman, will the
gentleman yield?
Mr. BOW. I yield to the gentleman
from Iowa.
Mr. GROSS. Not only that, but ap-
parently we have no control over the
assessments: placed on the taxpayers of
this country by the United Nations. I questions of policy, but questions of ad-
might also point out the uncollected m:inistrat;ion as well. Policy is not self-
assessments of practically all these or- executing; it requires administrators
ganizations. Your hearings show that , and techniques of administration capa-
there is owing to the United Nations by
the member nations almost $10 million,
$9,500,000. In connection with the
United Nations Emergency Force the
unpaid assessments total $22,714,000,
UNESCO, $2,208,000, and so on down
the line. I do not think there Is a single
organization connected with that Tower
of Babel in New York that does not owe
a substantial amount of money in un-
paid assessments. But the taxpayers of
this country pay promptly and right
through the nose.
Mr. BOW. There are a large number
of delinquencies in the United Nations.
It should be insisted that they be col-
lected, because these amounts are being
paid by the taxpayers of the United
States and they are being diverted in
many instances to the Communist
Party. This should be checked on care-
fully. When we say, "Why should we
continue to contribute?" we are told we
might be thrown out of these organiza-
tions. It might be good to do that in
some of these organizations. It might
be just as well to withdraw from some
of them.
Mr. GROSS. Mr. Chairman, will the
gentleman yield?
Mr. BOW. I yield.
Mr. GROSS. One Government offi-
cial, and I cannot recall his name, who
came before your committee, said it is
the natural thing for the United States
to put up the bulk of the money for these
organizations--the natural thing for us
to do.
Mr. BOW. Well, we have been doing
it and it is about time we stopped it or
we are going to go broke, if we do not
stop.
The CHAIRMAN. The gentleman
from Ohio [Mr. Bowl has consumed 34
minutes.
(Mr. MARSHALL (at the request of
Mr. ROONEY) was granted permission to
extend his remarks at this point.)
Mr. MARSHALL. Mr. Chairman, my
work on the subcommittee on State,
Justice, and Judiciary appropriations
has been a satisfying experience. It is
not it new experience since it was my
privilege to serve on this important sub-
committee in the 82d Congress during
the troubled days of the Korean conflict.
President Kennedy has called this "an
hour of national peril and national op-
portunity." He has also described for
us his personal reactions upon assuming
the Presidency:
No man entering upon this office, regard-
less of his party, regardless of his previous
service in Washington, could fail to bestag-
gered upon learning-the harsh enormity of
the trials through which we must pass in
the next 4 years-each day we draw nearer
the hour of maximum danger.
Responsibility for our posture in the
face of this threat falls upon all of us.
As elected Members of the Congress, this
responsibility falls upon us in a special
measure.
POLICY AND ADMINISTRATION
The very urgency that the President
has continued to express concerning the
role of our Government Involves not only
In his first appearance before our sub-
committee, Secretary of State Dean
Rusk spoke this truth with admirable
clarity :
Administration must know what ends it
is expected to serve; public administration,
especially, must concern Itself with effec-
tiveness and efficiency, for it uses public
funds and must do so in the spirit of a trust.
Policy, on the other hand, cannot be suc-
cessful unless the tools of policy are well
designed and capable of carrying it out.
Administration is the handmaiden of pol-
icy; it is not its own justification; it serves
to accomplish the great national purpose
we have in view. This requires that the
structure and procedures of the Department
of State be attuned to the central tasks of
our Nation in the foreign policy field. It
also means that deficiencies, waste, or fail-
ures ought not to be accepted. In critical
times such as these, we cannot afford the
little mistakes which impede our effort;
indeed, the impact of what some might call
little things can be decisive as to our sue-
cess in getting on with our great national
policies.
Anyone who has worked with appro-
priations for various agencies of govern-
ment has encountered policymakers who
regard administration as beneath their
dignity and outside their ken. They are
impatient with questions of detail and
prefer to deal in the generalities of high
strategy. It is refreshing, therefore, to
have the Secretary of State admit to a
working interest in the operations of his
Department. His candor and frankness
have helped to make our work less ardu-
ous and more meaningful.
TRIBUTE TO CHAIRMAN
By the same token, no man is more
respected for his candor and frankness
than our chairman, JOHN RooNEY. His
careful and searching examination of
every witness and every program is an
indication both of his personal knowl-
edge of all phases of each agency's work
and his personal interest in their suc-
cess. His discontent with evasion and his
profound respect for ability help to make
our hearings informative and useful.
He is successful in eliciting the facts upon
which we can make reasonable judg-
ments in terms of both policy and ad-
ministration. I know of no higher
tribute to a hard-working chairman.
The courtesy shown me by the other
members of the subcommittee and by our
able and, experienced clerk, Jay B. Howe,
has made my return enjoyable and
rewarding.
rACE HARD CHOICES
To realize the importance of the bill
before us, we need only look to the world
around us. The implementation and
administration of our relations with the
other nations of the world are an awe-
some task in these critical times. In
every crisis, men have thought their
own time to be a turning point in his-
tory. They have been. justified, just as
we are justified, in recognizing contem-
porary events as signposts to the future
marking alternate roads. We are con-
stantly faced with hard choices and the
discouragement and frustration which
must follow even temporary failures.
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CONGRESSIONAL RECORD - HOUSE
who are about to lfrse their jobs. They
are about to be thrown on the unemploy-
ment rolls. There will be great loss to
businessmen and merchants in the area,
to landlords, and td banks that are wait-
ing for payments o be made on mort-
gaged homes. It w it cause undue hard-
ship in an area tl- at has already been
suffering from the: impact of adjoining
depressed areas. it is unbelievable to
me, Mr. Speaker, that the Secretary of
Commerce cannot; recognize the facts
and approve this
ships can be buil
3,000 persons who
such shipbuilding.
(Mr. O'NEILL
permission to revi
remarks.)
The SPEAKER
the previous order
tleman from Mass
is recognized for
and include extra
[Mr. CONTE'S
here in the United
tect the jobs of the
was given
extend his
f the House the gen-
husetts [Mr. CONTE]
minutes.
emarks will appear
GOVERNME T SPENDING
The SPVAKER )ro tempore. Under
the previous ord ? of the House the
gentleman from I wa is recognized for
(Mr. GROSS as 'd and was given per-
mission to revise a d extend his remarks
and include extra eous matter.)
Mr. GROSS. 1 r. Speaker, ever-in-
creasing Governor nt spending is not a
budget problem a bank-statement
type of problem a one. It is a consti-
Every addition t the spending power
of the executive b anch alters the Con-
stitution because affects the separa-
tion of powers w ich the Constitution
set up among the hree branches, and it
alters the checks arid balances by which
each branch was k pt in place.
Big spending in stably swells the ex-
ecutive power wh a it diminishes the
legislative and judicial branches.. In-
evitably the gxeccl ve wields such power
over Congress and he courts, as to make
restraints from th other branches vir-
The executive with large spending
powers is cumul ively assuming the
legislative function because under con-
gressionally delega ed power and in too
many instances lid has been given the
right to decide pot y issues and the size
and shape of the executive agencies.
With the growth of delegated power
to the executive the courts become the
mouthpiece of the xecutive because dis-
senting judges are no longer appointed.
Judges who will c ange judicial prece-
dents most radicE lly are favored over
those who hold to the historic interpre-
tation of the Const tution.
Historically the great threat to free-
dom has been the i se of armed forces by
those who aspire t dictatorship. In the
industrial-money economy the same end
can be achieved b those who assemble
vast pools of spe ding money to buy
obedient "armies" I who carry out their'
directives in politics, business, and the
press.
Hitler demoostr*ted, 1932-36, that the
unlimited spending power is as useful
in establishing dictatorship today as,
armed uprising was in earlier times.
. The spenders would like to build up
the myth that opponents of spending
are pennypinchers, who care nothing!
for people, and never see any Issue in
larger terms than balance sheets.
We take our stand on the ground
that the executive power must be,
limited. When vise add vast spending
powers to its administrative and police
powers, it becomes unlimited govern-
ment, going down the steep slope to !
tyranny and dictatorship, however
cleverly veiled.
We take the position taken by the
American colonists that we want no
unlimited Executive power in this coun-
try, whether it isithe Royal Governors
and the Redcoat armies of George III,
or the welfare Stste with its spending
bureaucracy of the New Deal, Fair Deal,
and New Frontier.'
We say that the;Republican Party has
missed a great historic opportunity. It
has been satisfied tonly to cut Executive
spending a little here and a little there.
The Republican t Party has signally
failed to point o*t that excessive Ex-
ecutive spending s usurpation, and an
erosion of the Cohstitution as effective
as an attack upon it.
When-will the Republican Party wake
p ;Member
marks and incledc ex ,r ineous matter.)
Mr. DADDARTO. "'Ii Speaker, it is
my purpose to uee thi t-me to initiate a
discussion on what I bolieve to be one
of the most vital is o s of American
government todh y: th role and organi-
zation of intelligeneg.
The collection and I=eocessing of infor-
mation by all a genci of the Govern-
ment is a continuing 1 ?ocess. It is vital
to the success of any government that
all sources be exploited o the maximum
degree, and that sued information be
weighed and processe- with calm judg-
ment so that the fact s nd estimates on
which decisions nay t aken-decisions
that affect the survi . a of us all-will
be as complete and r -.wnd as man can
assure.
It has been almost ;'ears since Pearl
Harbor-but that die ser showed how
scattered our intellige 1co activities were.
Congress insisted, of-='i the war, on a
more unified approac=i. The success of
the Office of Strateg- Services, during
World War IT, prove he necessity for
an instrument of spe-i*d capabilities to
assist in this effort. -s time has passed
and the need for a si perior intelligence
capacity has grown, =.s'rries have been
aroused over just ho. efficient our in-
telligence communit may be, and
whether we do, inde_c. have the best
coordination of such r =.-tivities that could
exist.
It is apparent that Congress needs to
exercise and most ex }rise more super-
vision and surv?-Illan ,e over this effort.
We see and heap' cha: ,--s in the existing
establishment, some excuses for past
mistakes, promise of b,tter things, .but
we do not have - uffici r it; information on
which to base our owl- jidgment of these
`hatters, so long; as r committee exists
to-oversee the entire intelligence com-
munity.
Many Members (Congress have
spoken frankly to ma )f their concern
about this arm of ~ecutive govern-
ment. They recogn_ e. as many have
said, that inte'ilgen is the foremost
line, the outpost line of our defense. It
is needed, and must b organized, to pro-
vide guidance to the ralicy, to the eco-
nomic defense, is we'" as to the military
defense of the United `rates.
It has been said .;i it it is common
knowledge the Cc's ral Intelligence
Agency will soon los its present Direc-
tor, who has intentic = of retiring soon.
Another will be cho::c;r to succeed him.
The present Director s enjoyed the full
support of the Cong e :s. What guide-
lines are being folio- -se i-and should be
followed-in the sear=rh for a successor?
This question, too, is matter of concern
to the Congres,,.
Congress, therefore, should consider
seriously the e,tabhi''unent of a watch-
dog committee on tie intelligence com-
munity. In a time c 'particular tension,
all Members have a right to be assured
that every step is be.os taken to secure
the information nec-wsary in connection
with their ultimate ,* ponsibility under
the Constitution ir -.natters affecting
war. The Members -i we a right to be
aware of matters pt t lining to the na-
tional interest irisin 'rom covert intel-
ligence operations. [1 ey have a respon-
sibility and a right ;? exercise close su-
up and take up ts task to cut down
every spending avenue through which
the spenders have'iworked systematically
to erode the Constitution piece by piece
without a sound?
True Republicais in cooperation with
constitutional Dertiocrats have only one
task-to make war on the destruction of
our Constitution at every point where
the new absolutis*n is at work.
The SPEAKER pro tempore. Under
the previous orders of the House the gen-
tleman from Oklahoma [Mr. EDMOND-
SON] is recognized for 15 minutes.
remarks and
matter.
pear hereafter in
The SPEAKER
the previous ord
gentleman from n
is recognized for
(Mr. RANDALI
permission to rev
marks and inclue
[Mr. RANDALI
hereafter in the
pro tempore. Under
r of the House the
issouri [Mr. RANDALL]
5 minutes.
asked and was given
se and extend his re-
extraneous matter.)
'S remarks will appear
Appendix.]
CENTRAL INTELLIGENCE AGENCY
The SPEAKER pro tempore. Under
the previous order of the House the gen-
tleman from Connecticut [Mr. DADA-
RIO] is recognized for 1 hour.
(Mr. DADDARIO asked and was given
permission to revise and extend his re-
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 1961
N.
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CONGRESSIONAL RECORD - HOUSE
Wr. CRAMER asked and was given
perftission to'extend his remarks at this
point'in the RECORD, and to include ex-
traneos matter.)
[Mr. CRAMER'S remarks will appear
hereafter'~in the Appendix.]
-tMr. HOFFMAN of Michigan ad-
dressed the House. His remarks will
appear hereafter in the Appendix.]
THE NEED: FOR ORE CARRIERS
The SPEAKER pro tempord.- Under
previous ordet of the House, the gentle-
man from Massachusetts [Mr. O'NErLL]
is recognized for 10 minutes.
(Mr. O'NEILL asked`and was given
permission to revise and extend his re-
marks.)
Mr. O'NEILL. Mr. Speaker, I read in
the Washington Post of Mohday, Sep-
tember 25, in Drew Pearson'S3 column;
how he gave; praise to Represltative
CARL VINSON and also to Congressman
HESERT of Louisiana because of the great
interest that that committee has shiwn
in the program of the U.S. Government
concerning property of defense contrac-
+,,.,.,, +h,,+ +1,n TT-,+.A G++.,+ae 1,,,;1+ ,,,. ,,_
stalled on their property. I certainly
hope Mr. VINSON and Mr. HEBERT look
into this matter thoroughly. I certainly
hope that the: U.S. Government gets its
full return; none of us have #.ny great
sympathy for the big defense contrac-
tors of the Nation who have done excep-
tionally well.
Mr. Speaker, also in the article he
mentions that Bethlehem Steel Co. is
trying to get a $15 million Government
subsidy for two ore carriers, but they
were stopped by the alert Secretary of
Commerce Luther Hodges. Some 4 or 5
months ago, the Speaker pro tempore,
Mr. MCCORMACK, Congressman JAMES
BURKE who represents the Quincy area of
Massachusetts where the huge Bethle-
hem Shipbuilding concern is located and
myself-and Ihave the Bethlehem Ship-
building Repair Division in my East Bos-
ton District--went over to see Mr.
Hodges with regard to getting it subsidy
for ore carriers for the Bethlehem Ship-
yard.
We are interested in the welfare of
5,000 men that are going to be laid off
within a month in the Bethlehem Ship-'
yard in Quincy. We are interested in the
welfare and the economy of the area of
our locale. We are interested in the de-
fense of the Nation. We are interested
in the problem of the ships. W6 have a
great port up in our area..We have
great shipyards up there. k quarter of
the economy of the south shore area de-
pends on the' shipyards/ and depends
on the great Boston Harbor.
There has not been an ore car:-ier built
in the United States since 1946. At that
time Bethlehem Steil built two ore car-
riers. The constrfction of these two
ships would miearl employment of 3,000
men, who are. due to be laid off in a
short time fora period of a year and a
half to 2 years.
We were.-asking for $14 million as a
subsidy. ,'$etlilehem Steel intends to
build twri ore carriers. If we do not get
this subsidy, what is the Bethlehem Ship
Co. going to do? It is going to go to
Approved
Holland, where it can build those two
ships at the price it would normally
'spend without the subsidy.
It is interesting to note that there are
at the present time only four American-
flag ore carriers in existence, the ones
built by Bethlehem under a construction
subsidy in 1946, and these are now obso-
lete. There are 146 ore carriers built
abroad since 1946.
On August 17, Mr. BURKE, and Mr.
MCCORMACK and I wrote a joint letter
to Secretary Hodges asking him under
the act of 1946 if he would again con-
sider and give to the Bethlehem Ship-
yard in Quincy, Mass., a subsidy. This
is the telegram we received on September
11,1961:
I have held up - replying to your letter of
August 17 on the subject of Bethlehem Steel
Corp.'s application for construction differ-
ential subsidy or, the building of two ore
carriers pending a thorough review of the
entire matter. I have now reached the con-
elusion that it would not be feasible to ap-
prove Bethlehem Steel's application as a
matter of policy until: (1) the Secretary of
Defense determines that the construction of
the two ore carriers proposed takes priority
over the construction of liner-type vessels in
our regular ship replacement program.,
your telegram stating that "the Secre-
tary of Defense determines that the
construction of the two ore carriers pro-
posed takes priority over tile. construc-
tion of liner-type vessels in: our regular
ship replacement program," let me say
that the,, only four American.-flag ore
carriers in .existence today are the ones
built by Bethlehem under a construction
subsidy in 1946 and these are now ob-
solete. It is their present intention to
replace these wit]} two 51,000-ton Ameri-
can-flag ore carriers. For your informa-
tion there have been 146 ore carriers
built abroad since 1946. None have been
built in the. United States with the ex-
ception of the four mentioned. I have
been infoYmed by good sources from the
Navy Department that even though they
could be converted into twb,t:ransports
they would be of utmost importance for
the purposes for which they---,are de-
signed----to carry ore.
Second, he says in the telegram:
The chairmen of the House and Sevate
Appropriations- Committees advise this be-
partment that funds allocated for the coin-
struction of liner-type vessels may be di-
verted to the construction of the ore carriers
under consideration.
Well. Mr. Secretary Hodges, with ref-
erence to that part of the telegram, there
are funds in existence from the low bids
received in connection with the ship re-
placement program of the last year. It
is my understanding there was $18 mil-
lion available. Therefore, it is not nec-
essary and it has never been necessary
to obtain permission from the chairmen
of the House and Senate Appropriations
Committees.
This has always been done at the dis-
cretion of the Maritime Administrator
in the past. A simple notification to
the chairman has always made it accept-
able. I understand Secretary Hodges,
from my conversation with him in the
presence of Speaker pro tempore Mc-
CORMACK and Mr. BURKE, said. he was
opposed to subsidies. It is all right to
20135
be opposed to subsidies, if you are op-
posed to subsidies in the whole program.
But, I wonder where North Carolina
and South Carolina would. be today if
they did not have the subsidies on cot-
ton and if they did not have the subsidies
on peanuts. It is all right.to be against
subsidies when you are against subsidies
in the other fellow's backyard, but I
wonder what the economy of the Caro-
linas would be today if they did not have
these subsidies. Their very economy
depends upon these subsidies, and yet
the Secretary of Cornrnerce is hiding
behind this telegram which was sent to
Mr. MCCORMACK, Mr. BURKE: and myself.
This is the'law of the land. This law
was passed in 1946. It was the will of
the Congress that we subsidize ship-
building in this country and, yet, the
Secretary of Commerce, Mr. Hodges,
hides behind a telegram of this nature.
ffere we have been during the last .3
weeks pondering and delaying, and today
they came in with a compromise bill
adding another $187 million to a bill that
carries close to $4 billion in it that we are
giving away to the nations of the world.
Yet, in our area we have 5,000 people
who are about to be unemployed, and we
are asking for $14 million out of the $18
million that they have of surplus funds.
I appeal to Mr. Hodges, the Secretary
of Commerce. I appeal to Mr. Martin of
the Maritime Commission to reconsider
this matter. Think of the welfare of
our area. Think of the economy of the
area. Think of the dark and gloomy
Christmas and Thanksgiving holidays
that are going to come for the families of
these men whom it is our duty to try
to help. Yes, we should help the under-
privileged nations of the world, but let
us help those at home too.
Mr. BURKE of Massachusetts. Mr.
Speaker, will the gentleman yield?
Mr. O'NEILL. I yield to the gentle-
Mr. BURKE of Massachusetts. I de-
sire to associate myself with the remarks
of my distinguished colleague from Mas-
sachusetts. I concur in every statement
that he has made here today. In
Quincy, Mass., and in the East Boston
section, we have approximately 5,000
men who are about to lose their jobs.
These conditions are especially to be de-
plored when we realize that merely by a
stroke of the pen, the Secretary of Com-
merce, Luther Hodges, could approve
this subsidy, and I remind my colleagues
he would be approving this subsidy un-
der. the law of the land, the law that pro-
vidds that these ships should be built
here In the United States. The employ-
merit that would be afforded by the
building by these ships would take care
of 3,000 men. The drain on the unem-
ployment eampensation funds alone, if
these 3,000 teen lose their jobs, will ap-
proximate close to $6 million, and it will
mean a loss oi, over $27 million in sala-
ries to these workers. It also means a
loss in corporatl n taxes to the state
and the Nation. And, of course, a loss
in individual income taxes to the U.S.
Treasury. Yet, we, find Secretary of
Commerce Luther Hodges sitting down
there quietly, unconcerned about the
plight of these men, heads of families
 Approved For Release 2005/06/29 : CIA-RDP71B00364R000600070001-4
CONGRESSIONAL RECORD - HOUSE
20137
pervision over the use of public funds, and Welfare, the Department of Agri- logical advances as well as ,x litical in-
And they have a constitutional responsi- culture-all the large departments and tentions, thus creatin, ma. r obstacles
bility, above all, to define the limits of many of the smaller ones not only have in the field of evaluation ar udgment.
Executive power. special needs for intelligence, but capa- Judge Learned Hand coin well have
I do not propose to discuss any in- bilities for producing it as well. been talking about intcllige :? and pol-
formation based on classified matters. In short, intelligence is not just al icymaking when he ob: erved
I do not intend to venture in my pre- source of concern to the Department of Life Is a series of judgment: ;:.ed on in-
pared remarks toward the brink of Defense. Virtually every department or 1 sufficient evidence.
classified information, and I will not re- agency has some intevrest in collecting in-
fer to published information regarding formation which may be of use in quid-! So The is purpose policymakking an . i,itelliCellik ~r ce organ
intelligence activities of this country ing its daily actions. And, further, just ization The is to make the evide ce as organ-' is founded on speculation-even about everyone is a potential producer of
where that speculation may be, to my intelligence. In the private sector, busi- E plete as possible-and this s,;ould be the
personal knowledge, well founded. ness and industry energetically collects' aim of our intelligence co.usdunity at
I will offer, at the conclusion of my information and processes it to bear on F all times, and especially in lays of ten-
remarks, a resolution for the establish- economic decisions. The major task that sion and global peril.
ment of the type of committee I have in faces this Government. if it is to have a Accepting the analogy o i he wheel,
or cycle, let us begin a d