(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200170063-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: January 3, 2005
• Sequence Number: 63
• Publication Date: May 18, 1964
• Content Type: OPEN

Approved For Rele se,2005101/,27 CIA-RDP66B00403F0 00170063-1
N6 ESSI(NAR RECORD - SENATE
09 up th on y or damage The U.S. dollars, has, however, not yet been altogether suc-
piano Slid around the l -in room plants I repeat, Mr. President, it is high time cessful. Baathists in Damascus, who are
1 d o he comes ncc~ r sashed out always looking for ways to discredit Mr.
a3 to tct ofutsannln to get call a halt to aggression in the Middle
Sasser, and independent Arab journals here
in tie C " 3} was umg around so East The Congress has declared clearly have seen to that.
I]311{h co dn#t atcIi it in the anti-aggressor amendment to ARABS STRESS RIVER
loo er . trlgne ra044 stmaster "i'er the current foreign aid law that it is
8on~loss~n tie area was not great broken opposedi toy using St S. dollars to arm ag Indignant that the Arabs should have to
e
dishes, I' have a. broken .,finer. Tie post . gressors. Let the will of the Congress stand idly by while Israelis unilaterally take
water from the river, which has acquired
tlmoo is a -s i iribles ~P tip s over cabinets, be carried out. Let us stand firm against great importance as a nationalist symbol,
he sell the Russian-Egyptian drive to control the o right on writin about the Jordan.
p 1,s os master t`is y g g g
Vldez; us~9
ipSierstoos t~I~t the xlew- poR office lies e- Middle Eastern oil reserves. Economic --Aden is distant and peripheral. Even for
alriage. .The town of-Valdez, of?,course. re Schmidt's article printed in the RECORD. Having Premier Khrushchev around is, of
eeived' i1 near fatal blow,' There being no objection, the article
'l e ofiiges at, a e~aY~, au3 `T{am~~p1t ff, course, a great help in this business of props-
postmaster and Afognahartla eon, was ordered to be printed in the RECORD, gandistic sleight of hand.
,pdstmaster were wiped o_nt along with the as follows: The Arabs are flattered by the Soviet lead-
er's attention in such a lon 1
, lie postnlasters nor any employee RIISSIA AND EGYPT FIND COMMON GOAL towns g (6-day) state
I' b )i10t iWTt visit. President Nasser is cast as a friend of
IN MIDEAST
IN
bane Adams Schmidt) bne of the most powerful men on earth.
FI1s. Own prestige necessarily soars by asso-
TH A #~~?~71?f' 3 Q1a' U Sj OREIGN BEIRUT, LESANOx day 16 A~President Ryas- ciation.
p4CyY aer and Premier Khrushchev, sitting side by The Arabs are close enough to their colo-
. ~' side at the, site of the Aswan,.liiigh Dam this nial_past to like anything that discomfits the
- Ur Gf~~`Q l 0j0, R-.p3 "'emit, in a week, embodied the parallel interests of Egypt West
thought-provoking article published in and the Soviet tlnion To the Arabs there is no moral issue be-
Egypt, an $ork? s-,for MAY 17, 1964, Egypt, an ambitious but underdeveloped tween East and West. They have known
the able correspondent Dated Adams leader of the pan -Arab nationalist move- both good and evil from the West and thus
ment; the Soviet Union, an economically and far only good in the form of economic as-
Xllflid,? writing from Beirut, ..Lebanon, politically ambitious force in the Middle sistance from the East.
iI2lCier, f,the title "Russia ?axtd gy}lt Find East-both for different reasons want to In the face of all this, the British In Aden
GrQI}ixYloltlypoll 1111 ?e comes to the force the British out of the great military, have roiled up their sleeves in a "Battle of
t 0'et W0104 tll t naval and air base.et Aden, . -
have had "a jolly good
Main",.r9pirit. They
=ei'Ile Ai i }iolicy toward Mr Nasser has What Is important enough in itself. The bash" at the dissident tribesmen, which, if
-Di4ietely fa led. ft has neither persuaded power concentrated at Aden radiates out into it did not destroy the dissidents, at least
shim to do certain things, like withdrawing Africa and the Middle East and serves as freed the road in question. They have done
. troops from Yemen, nor to refrain from Britain's halfway station to the Far East. it with professional military skill.
? oil g others, like attacking the British in But it is above alt because it serves Be Blow Duncan Sandys, Britain's Colonial
Adeh. a shield for;itbin'spri'vileged economic and Secretary, has gone back to London to seek
fiblt?`tcal position in the Persian Gulf, with reinforcements in both troops and money.
41 Repeatedly on the floor of tie splits its immense oil interests, that Mr. Nasser and The British Government is expected to put
have pointed out that , -policies to- Mr.Khrushchev would like to destroy Aden. Britain's presence on a more acceptable po-
ald 15 ~ i I4as~e ex_t a classic Kuwait, Abu Dhabi,- Bahrein, Qatar those litical basis by setting independence as the
~ - OI t e failu 'e, of _ai]y policy- of are the joint Egyptian-Soviet objectives. goal within a specified time limit.
ass"lYterlt toward a dietatgr,- I Ylave Meanwhile, the British In Aden are not But the British are aware that no matter
so poiizted out long ago, that.Presicieltlt merely embattled. They have launched a how they turn they will always be wrong in
NaS4eY Wa,S playing Russia's game. This counteroffensive against their foe insofar the eyes of Arab nationalists, that they can
as he takes the tangible form of the Red stay where they are only as long as they, are
I as now become vet ,%QXQ AVJ4eAt by wolves of Radfan, the Nasser-backed tribal willing to be tough in defending their posi-
Nasser'8newest gambit in AdeE3 R!hele ,-guerrillas who have been harassing traffic tion with force.
fs i tiga ing local tribesmen , to attack on the, Aden-Pbalfl read The only chink in British defenses is un
13C T1tIsh s c. LLFVL PROPAGANDA certainty as to whether the Government in
We hXe 13elped neither Egypt and her That Is the overall picture in the Middle London will stand fast in the face of leftist
and some-not-so-leftist disparagement of
people nor ourselves through this policy East. President Nasser's greatest resource in the Aden base or of the federation of feudal
appeasing the quest for power in this Struggle Is propaganda, which he is using sultanates and emirates that serve as Its
:'Which President 1' sser has been ell- wI h consummate skill ip5eveZalways, outer buffer. No one is sure what the attY-
iraged for a dgzell years. Our hundxeds First, in leading a public campaign against tude of a Labor government might be.
lsi Iililliolls of do lar ii ecDxio i; aicl .to -the imperialists- in Aden and even inspirng The British are grieved also that they have
Egypt have now gone toward the waging Infiltration across the border, he is obscuring not been able to persuade the United States
a bitter, cruel, and bloody war in in the eyes of the world-and above all of to share their view of Mr. Nasser and the
pemeri the Arab world-his political and military Yemeni Republic and the threat they consti-
en
_-_.---_
more particularly to U.S. interests.
ilecolors-slid ey are red itluld ma orit of the but has also failed
population Mr. Khrushchev doesn't mind being used
opt i great surpr1 a to any, student with 40 000 men, tanks and airpower to sub- by Mr. Nasser; he is using Mr. Nasser. Who
o e xl .i 1 t ti. since Nas- due them. will come out ahead remains to be seen.
ser ize t Utica control of Egypt in By brandishing the anti-imperialist ban- Meanwhile Mr
Nasser's Arab nationalism
.
1.52 hat a is .an ner he 1s also trying to distract the attention can do much against their common enemy,
-ai!t1Bg of the Arab world from Palestine, where the the British in the Middle East, that neither
F, lr>ashcxl V _ Pats -Aso W, Id ha-P now -Israelis have begun to draw water from the the Communist Party nor Soviet diplomacy
come out openly and seeks tot yow the Jordan River. President Nasser cannot stop can do.
it
l
s
S
l ou?* of file Middle East a id Con- them any more than he can destroy the roy- Indeed, Mr. Khrushchev's avid interest in
fro TIE? I
as IYeltlgxd?trib gm p ,l i ,plan for di- getting the British out of their Aden base
1~i11tS ,fit verti'ng tiie headwaters of the Jordan River and other positions is one of the strongest
The oil 9 tglgi illll tf,tefl Mates will take years to carry out and even then arguments In the British view of sitting
$tisi e oil - can oil as well as British, would be dependent on his ability to stand tight.
~ .A#f Israeli:. .1Itary interference. In addition, the Soviet Image as projected
-it s t111Ip tha~tllo$e in the c
tate De- Mr. Nasser's explanation now isthat once b
th
A
D
A~
y
e
swan
am is of great value to the
,- 8Tt}nent Wh( hay he _i?,u,~y appeasing the imperialists have been kicked out of the Soviet Union in the Middle East, Africa, and
Middle East it will be easy for the Arabs to Asia. The dam is a symbol of what the So-
ee
. ??=?~=o?? w oo .,. Aden and else thddld
-e unereveope world. With his hand
helping it get a strangelhold on the.9i1 -where and the Israelis is probably specious, on the mighty dam, Mr. Khrushchev can face
- reso lr'I s of 1:t~e l irirlla Ti'Loet Rnth -
_~ ~,_ _ - .. _ __ .. - .
it
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 Approveed For Release 2005/01/27 : CIA-RDP66B00403R000200170063-1
10820 CONGRESSIONAL RECORD - SENATE May 18
And he can subtly evoke Mr. Dunes' tragic As one who deals directly with the the RECORD one or two articles which
error. students themselves as they are thinking cast extreme doubt upon the claims of
It is also true that the Soviet Union wants about the possibilities and the problems highly informed sources in the Depart-
to close the small penetration the Chinese of college education. Miss Steel cited ment of Defense that Russian troops
Communists seem to have made in Syria and
to make sure that no others are made. specific cases from her own experience. were removing themselves from Cuba.
Hence, Premier Kbrsubchev's praise for Each of them in its own way was a most I have recently received a letter and
President Nasser's halfway socialism, his as- pointed illustration of the need for accompanying Intelligence report from
sertion that every nation, presumably In. scholarships, loans, and" work study aid Cuban intelligence which would indicate
eluding Baathlst Syria, can find its own way which my bill provides. I should like to that the Russians not only are not re-
to socialism. The dogmatic Chinese could note the stories of two young people moving themselves from Cuba but they
never endorse that. whose need she presented In some de- are, in fact, increasing their military
The Nasser-Khrushchev offensive has been tail buildup in that island.
carefully orchestrated to hurt the British The opening paragraph of this letter
but spare the United States. For this there Judy, Miss Steel told the subcommit-
are several reasons. Mr. Khrushchev pre- tee, is a Minneapolis Negro girl who states:
sumably would not like his Middle Eastern graduated last year in the top tenth of Despite misleading statements to the ef-
enterprise to interfere with his overall detente her class, was active in school organiza- fect that the Soviet Union has practically
in relations with the United States. 'Mr. tions and had good college capabilities. withdrawn all of its troops from Cuba, the
Nasser knows that the United States to a Her stepfather deserted Judy and her fact is that the Russian military buildup
large extent feeds Egypt-a task the Soviet mother when she was nine: san they continues on the Island.
Union would not like to attempt-and has
just rejected a bid by R. A. Butler, Britain's have existed to a large extent on Aid to The intelligence report confirms this,
Foreign Secretary, to put pressure on Mr. Dependent Children funds, which of Insofar as Cuban intelligence is con-
Nasser by cutting off food. The United course ceased for Judy by the time of cerned, from sources within the island.
States is in any case less vulnerable than her graduation. Even though she re- Let me make explicitly clear that the
Britain because It has no territorial bases in ceived a $250 scholarship, the cost of a reports I am spreading on the RECORD
the Middle East. year at the University of Minnesota, in are not from intelligence sources in the
United But the
States, whole s is Involved. theWest, Aden serves s the the ~ite of living at home, would be around United States. They are reports from military purposes of the North Atlantic $700. Judy's aim is psychology or pre- Cuban intelligence sources.
Treaty organization as well as of Britain. law: but because of finances, she took a The report reveals what I believe will
The oil of the Persian Gulf Is United States full-time job, and began this year with be of extreme interest to a number of
and Western European oil as well as British. only one course in night school. Miss Senators-namely, the specific locations
For the United States, as Britain's prince- Steel summarizes: of the build-ups in Cuba, including the
pal ally, as Egypt's principal source of food She thinks that she will work another underground and underwater submarine
and as the Soviet Union's principal antago-
nist in the world, the 17 ear and try to save some money and con- pens at the Bellamar Caves; and refer-
campaign raises grave questions. tinue with night school. One can guess that ence is made to the ability of Russian
campaign y
she will give up her ideas of going into a field submarines to enter these caves without
The old U.S. policy toward Mr. Nasser has thing less. She probably will also find It degree of
security maintained around
completely failed. It has neither persuaded hard to give up the security of a full time
him to do certain things, like withdrawing job for the financial insecurity that goes what are alleged to be missile sites on
his troops from Yemen, nor to refrain from with full time attendance at college. Funds the island.
doing others, like attacking the British in from S. 2490 might make Judy a full time This report should be of extreme In-
Aden. All U.S. initiatives toward solving college student and make another job open terest to the United States as a whole.
the Yemen problem, whether directly or for someone else. It bears upon the attitude of the De-
through the United Nations, have been frus- partment of Defense and the informa-
trated by Mr. Nasser. Allen took his first quarter last fall at lion it has given out, and conclusively
Should the United States, then, go on feed- the University of Minnesota Institute of shows that Cuba is both a center for
Ing Egypt? Would It not be opportune at Technology. With a high school stand-
least to cut down the flow? Should the ing in the top 15 percent and in the top Communist subversion in Latin America on not
onl als iteeonomi ally assists gythe Yemen bout quarter of college freshmen on aptitude and South America-as we have indi-
ublic, which disregarded the pledge It gave tests, Allen wants to be an engineer. sated-and a military menace not only
at the time of recognition not to interfere Two years ago, his stepfather lost his job to ourselves but to all the free world,
in Aden territory? Is Mr. Nasser so much in the Minnesota Iron mines; he then re- by means of such strongly armed Com-
the wave of the future that the United States located in Minneapolis. and last winter munist fortifications.
must appease him and his puppets at any took on a second job in a filling station. -Mr. President, I ask unanimous con-
cost and in spite of all provocations? The family wants Allen to go to college; sent that this intelligence report be
The tragedy of V.S. Middle Eastern policy but with four children and a low family printed in the RECORD.
is that it has never been either one thing or income. Allen felt he had to go to work, There being no objection, the report
another. In dealing with Mr. Nasser. some be able to pay for tuition and books; was ordered to be printed in the RECORD,
experts bold, one either goes the way of build- as follows:
ing the Aswan Dam or one goes the way of and his grades suffered. He dropped out
the Suez campaign. for a quarter. Now he is discouraged, INTELLIGENCE REPORT ON CUBA SUBMITTED To
GEN. MAXWELL D. TAYLOR, CHAIRMAN or
The United States has done neither. it and is thinking of staying out for a full THE Joan, Cam's or STAFF, BY DR. NESTOR
has not helped Mr. Nasser enough to make year. His stepfather felt unable to en- THE Jo ELL, JR., rOxNEY AT LAw, LL.M.
him independent of Soviet help, nor has it dorse a National Defense Education Act HARVARD 1968, WHO HAS SERVED AS SPECIAL
opposed him sufficiently to destroy him. loan for Allen, and he was not eligible for REpaESENTATIYE OF CUBAN EXILE GROUPS TO
other financial help. With the aid of S. THE ORGANIZATION or AMERICAN STATES
2490, he would have a much better (1) A high sense of duty, as a freedom-
A HIGH SCHOOL COUNSELOR LOOKS chance. loving Cuban concerned over the fate of this
AT S. 2490 These are only two cases, Mr. Presi- hemisphere, prompts me to write you this
dent, out of thousands which could be re- letter in order to alert U.S. authorities to
y Mr. HARTS ten President, recent- fated by Miss Steel and other counselors. the new political and military fraud which
l y invited the e attention of the Senate the Soviet Union is attempting to perpetrate
to testimony on S. 2490, the Hartke There Is great need for aid to students in the strategic island of Cuba.
college student assistance bill, by a col- faced with mounting college costs. (2) According to reliable reports received
lege vocational guidance counselor, Mrs. I sincerely hope S. 2490 will be favor- diplomatic and underground nt~~ws in all
a
Josephine Ferguson, of Valparaiso Uni- ably reported and favorably acted upon Comf ea. troops
from Cuba, when in reality o versity. On the same day, also as a wit- by the Senate. there are still more than 16,000 Soviet-bloc
ness on behalf of the American Person- soldiers and technicians digging in deeper on
nel and Guidance Association, the Edu- RUSSIAN BUILDUP IN CUBA the island. Notwithstanding the fact that
cation Subcommittee heard Miss Caro- CONTINUES there has been a reduction of Soviet-bloc
lyn Steel, a hlah s^hool counselor In military personnel since the October crisis,
Minneapolis. The association they rep- Mr. DOMINICK. Mr. President, last the bulk of the occupation forces still re-
resent Is a supporter of the bill. week I had an opportunity to place into mains in Cuba.
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 Approved For R~se2005/01/27 CIA RfP6A600403R 00200170063-1
1961 tO RESSIONAL RECOIID SENATE 10821,
(3) In order to give the impression of a just by San Juan River; in Margot mines, i.ieiense in mne naare o1 new xorx in an in-
a on of Its military personnel, near the town of Cidra; in the quarries close active status and for which no disposal plans
:massive evae
,
theyie r'Cjn on 1lias been 'rotating" its to the town of Limonar in the hills adjacent have been made. In addition, you expressed
troops ~' a inovtn most of them from popu?- to Canimar River, and in ificacos Peninsula. interest in properties which have been sched-
lou axe iso 3ecded bases many of which The electronic equipment covering this area uled for inactivation: within the next 3 years
have unde~rgroun...... ilft provided with are mainly concentrated in the mountains but which are to be retained for other pos-
special electrIeal an ventilation systems: bordering on Yuiniirf Valley. sible use.
(4) The'follawing are soiree of the bases, (10) I am submitting this report in the The properties held by the Department of
camps; anilmllftary installations where there hope that it will merit a careful investiga- Defense in New York which are inactive but
are tcpOfl dly'coricentratlons of`Soviet-bloc tion. My sole interest is to collaborate with which are not at present the subject of dis-
Soldiers and technicians. For the sake of the authorities of this great country, com- posal action are: 11 brevity, T shall only refer to`?those located milted by the congressional joint resolu- Acres
in the extreme jirovinces of Cuba; namely, tion of October 3, 1962, "to prevent in Cuba Camp Drum, Watertown--. ----------- 107, 675
Pinar del Rio and C%riente the creation or use of any externally sup--Auburn- Camp Hero, Montauk Point_______ 362
ported military capability endangering the Ordnance Shell Plant,
PiiS Alt r i YtYq pl p",
security of the United States," and "to work Auburn (leased) 15
San Julian airbase La Guataiia camp, with the Organization of American States
near San Luis La Coloma camp under-
groutid installations in"`the area `of Sun and with freedom-loving Cubans to sup- Total------------------------ 108,052
strategic install'ations'"in "Los Portales"- port the aspirations of the Cuban people Defense properties in New York which
cave; located in "La Guira" farm; near San for self-determination." were announced for closure but which are
NESTOR CARBONELL, Jr. Department los Bailor, the 12-mile Tong "Great ' - Y the of Defense
Cavern of Santo Tomas." converted by the L -'-AY 1, 1964. to be retained b for other possible use are:
with underground silos for oiFenslve missiles Fort Tilden, N.Y---------------------- 312
NEW YORK Fort Totten, N.Y---------------------- 147
in the ayajabosMa ; Ms'rflrn}, between Arte ral Mr, KEAT.ING. Mr.. President, the Miller Field, Staten Island ------------ 213
andiel naval`base geneeral
headquarters of"tile western Zone, located Defense Department is now maintaining
in la Gobernadora hills; Electronic Control in the State of New York, or expects to
Anafe plateau Total___________________________ 795
Center in Bu), betzar hills (also' known as continue to hold, 108,847 acres of land In connection with the Seneca Army De-
weett Cafm3to del uaya- which is currently inactive or at this pot, this installation consisting of 10,668
Dal and GtlanaJay, etc.'
acres of land is considered to be In an active
'time is scheduled for inactive status;
alt#ivNiEiRQWNM status and, accordingly, is not included in
IVlilitafy, camps in the area of Manati and 108,052 acres are currently inactive, but the above list of inactive properties.
Puerto Padre; Holguin 1afrbase',` provided the Defense Department has no plans We trust this information will prove help-
with underground hangars and ]protected by for disposal of the land; 795 acres will ful. We shall be happy to furnish addi-
...-
a chain of camps and installations; strategic be inactivated within the next few years; tional information on these properties if you
military zone, 'provided with underground but the Defense Department indicates so desire. Your interest in this matter and
stailatio your colitinued support of our national de-
silos for offensive.nxissiles,and subijiarine'in- that it has no
present plans for disposal
cia s, in the coastal `area of'Vabo Lucre- of them and intends to keep them for fence efforts are greatly appreciated.
Punta de Mulas and Banes;` strategic possible Defense Department use. Sincerely yours,
bases ofMayarf Y'inales de Mayarl and Mayari In other words, Mr. President, a total EDWARD J. SHERIDAN,
Arribs; Imilitar installations between hal Deputy Assistant Secretary of Defense
tong sugar milt and the naval base of Guan- of 108,847 acres of land in New York will (Properties and Installations).
tanamo; strategic base of Las Mercedes;-mili- shortly be held by the Defense Depart-
tary installations in "Potosi" farm, north merit, serving no Defense Department
of Victoria de lac ,tunas etc need that has yet been indicated, paying THE STATE OF THE ECONOMY
(5J The SovfE-, -- nion not only keeps in no taxes, and contributing no commu- Mr. LONG of Louisiana. Mr. Presi-
Cuba the ,bulkP of its forces but also con- pity services of any kind. dent, when Congress passed the Revenue
v- times to Increase or enlarge its strategic Mr. President, this is a substantial Act of 1964, the largest revenue bill ever
bases, in this connection it is of interest-
obs
tQ r fer specifically to the famodS Bellamar .amount of land. In terms of the j to be passed by Congress, it provided for
Caves, located north of Matanzas Province. that might be created on that land if the largest tax reduction we shall prob-
Thee ,caves ,conected through newly built defense facilities were operating there, ably see in our lifetimes; perhaps the
tunnels'wlth mat lnzas, lay have been rein- It is a great deal. In terms of taxes that largest to be made in many generations.
forced. and, converted tntb,s. sllbiil&rine bsse, Flight be paid if privately held, it is a lot, When the.Revenue Act of 1964 was
with adjacent underground fuel and arm also, I am urging the Defense Depart- , , passed, many of us had high hopes that
depots. anent to-consider, the. possibilities for the fiscal policy then adopted would do
(6)a Matanzas Bay is so aeeli, that the sub- this property as soon as possible, so that much to continue the prosperity the Na-
iiiarines d@ not,have to surface in , order, to New York can have either the jobs or the tion
was enjoying; that it would avoid a
reach " the, pens, which are provided with a taxes that this land might offer. New
special system of gates controliing'the flow recession that, in some respects, might
of water.. The pens"are -finished,- but we do Federal facilities on this land would be have been regarded as overdue; that it
not have, as yet, any evidence of soviet sub - one way of saving the Government would increase American production and
ma}ines_operating from, this Base. money 'and putting these unused "prop- American income; and that it would also
(7) The military constructions in the- area erties to wor again, I am also studying. help to solve our fiscal and monetary
of the BellarnarCaves Began more than 2 other methods of. coping directly with problems, including the problem of the
years ago At-'that time Cuban, oifinetais, the hardships caused by this retention outflow of gold from American reserves.
Gloved some oL the vgalleries of the caves, al- of idle, untaxed land.
leging that they were being enlarged for Since that time, the economic indica-
tourist ;purposes. Security measures were Mr. President, I ask unanimous con- tors and information coming to us from
,later epfoi ced . lder th ypiretexty that gold; .sent to include in the RECORD, following financial sources have demonstrated that
depoelts'liad been foundin the excavations. -- my remarks, the text of the coin nuni-._ the Nation is enjoying the type of in-
In the final stage of the, ilitary";construe- cation on this subject from the Defense creased employment and production that
Lions, Soviet specialized personnel replaced Department. had been hoped for; that the trend is ex-
the Cuban, engineers and workers. At pres- There being no objection, the letter tremely favorable; and that we are ex-
as t, the ad the adjac c the Bella mar and Caves, as well was ordered to be printed in the RECORD, periencing the type of prosperity we had
as
~narine in -
stallatious,'are under Soviet cgptro,l as follows: hoped would result from the revenue leg-
In connection with the ubmarine iSlatlon
.in- OFFICE OF HE ASSISTANT . _ .
( )
etallation it 1S of interest t0 TeS~S to the SECRETARY OF DEFENSE,
All this speaks well for the fiscal policy
,May 1i163 nterim Report on Cuba issued INSTALLATIONS AND LOGISTICS,. of President Johnson and of the late
by the Senate Preparedness Subcommittee, Washington, D.C,, May 14, 1964, President Kennedy, who initiated this
,which states that advanced Soviet sub- Flon
KENSSETH B
KEATING
,
.
, proposal
marine.ba es soul j ba.~sta~li). Cuban if.S.,Senate, . President, I ask unanimous con-
port s wi
very little effort, Washington, D. Mr
C.
the
chain be Bel1arriar complex is protected by DEAR SENATOR KEATING: This is in reply to sent to have printed at this point in the
i4
( ),_ o mli ary installations located in your letter of May 4, 1964, concerning the RECORD an article entitled "Trends Re-
the mountains ordering on Yumurf Valley, amount of land held by the Department of verse Foreca5,l written by Eliot Jane-
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 10822
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CONGRESSIONAL RECORD -SENATE May 18
way, and published in the Evening Star
of today, May 18, 1964; and an article en-
titled "Steel Output Best in Year."
There being no objection, the articles
were ordered to be printed in the RECORD,
as follows:
[From the Washington (D.C.) Star,
May 18, 19841
As JANEWAY VIEWS IT: TRENDS REVERSE
FORECASTS
(By Eliot Janeway)
NEW YORK.-Last autumn, the dollar was
in trouble. Here and abroad, bankers were
warning of a run on the dollar, and Wash-
ington was getting ready for a money
squeeze.
There's no fear as infectious as fear for
the value of money. Our bond market,
which reflects confidence in money, was sick;
and our stock market, which reflects con-
fidence In the use to which money is put,
was jittery.
By contrast, every currency on the con-
tinent of Europe looked strong, and the en-
tire economy between the Iron C" in and
the English Channel looked rich. Because
everything in Europe looked so rosy; while
the outlook here was growing murky, money
wanted to leave here and go there. This was
making a bad situation worse. Specifically.
It was making a weak dollar weaker still.
Veterans of market storms know that many
big changes come as surprises-especially as
political surprises which break the con-
tinuity of familiar economic ups and downs.
Johnson's Presidency has brought us a major
surprise of this kind. The change It has
brought has certainly broken all continuity
with 1963 market forecasts and perform-
ances.
61ESING HAVEN HERE
For 1964 is seeing not the threatened run
on the dollar but, instead, a flight to the
dollar. Hard cash is pouring out of Europe
and seeking a haven here. The financial
history of 1964 Is taking form as a reversal
of the forecasts of 1963.
The way this big change is working out
Is as surprising as the charge itself. When
the dollar was weak, the word was that the
beneficiary of money trouble here would be
gold. And so it would have been. if only
because the United States bulks so large in
the world's consumption of hard goods. A
money squeeze here would have curtailed
our consumption and put the rest of the
world on short rations. Commodities would
(lave been worth less and, therefore, gold
would have been worth more.
SAVING MONEY WOES
But Europe fits differently into the world
economy. Now that she's having money
trouble, while the dollar is strong again, gold
is dead and gone as the market beneficiary
of financial strain and retrenchment. In-
stead, its basic commodities, like copper and
hides, that are going to a premium as the
sicker currencies go to a discount. .
The theory on which Europe Is shipping
money out and taking commodities in is
simple and sensible. First of all, it respects
the trendmaking role of the United States
In world markets. The momentum of the
.business improvement here is feeding on the
liquidity coming In from abroad. When
business here is good, and the United States
is an active buyer abroad, consumers in
smaller economies must be prepared to bid
up and to pay higher for their needs.
Fear of Inflation is Europe's other motive
for dumping paper money and accumulating
hard goods. But no one there expects money
trouble to undo the Americanization of con-
sumption and of living standards. All that
will happen is that commodity prices will
rise as currencies depreciate.
Meanwhile, because we're doing so well
should make us not smug but wary. Any
time the flow of money here slackens or the
strength of commodity prices falter, it will
be a warning that we're stumbling amain.
STzm OvTPUT BEar IN YEAR
~CI.EVEL.AND-Some of the Slack in steel
orders from automobile manufacturers is
being taken up by rising demand from the
construction Industry, Steel magazine re-
'The metalworking weekly said steelmakers
now expect June shipments to drop no
more than 5 percent. compared with their
forecast of a 10-percent dip a few weeks ago.
Reasons for the revision, it added, Include:
Automobile manufacturers have reduced
steel buying less than anticipated.
Appliance makers and other producers of
consumer durables are continuing to buy
light, fiatrolled steel products at a good rate.
Structural fabricators, railroad carbuilders,
machinery manufacturers and shipbuilders
are placing big orders for shapes and plates.
The magazine said steelmaking operations
are at the highest level in 11 months, with
this week's output expected to exceed the
2,492,000 tons produced last week.
"This month's production will be about 11
million tons, highest since May 1963." Steel
said. "Next month's output may drop to
10.2 million tons, but it will boost the first
half's total to 61.2 million tons-2 million
more tons than in the first half of 1983"
Steel said market analysts predict a 10-per-
cent drop in steel production and Shipments
for July. but expect the month's perform-
ance to be better than that dusing July of
last year.
"The downturn In July will reflect sharply
reduced automotive steel buying, model
changeovers In the appliance industry and
vacation shutdowns by other big steel-con-
suming industries." the publication said.
NATIONAL COMMISSION ON FOOD
MARKETING
Mr. HUMPHREY. Mr. President, I
ask unanimous consent that the Senate
proceed to the consideration of Calendar
No. 967, Senate Joint Resolution 71.
The ACTING PRESIDENT pro tem-
pore. The joint resolution will be stated
by title, for the information of the Sen-
ate.
The LEGISLATIVE CLERK. A joint reso-
lution (S.J. Res. 71) to establish a Na-
tional Commission on Food Marketing to
study the food industry from the farm to
the consumer.
The ACTING PRESIDENT pro tem-
pore. Is there objection to the present
consideration of the joint resolution?
There being no objection, the Senate
proceeded to consider the joint resolu-
tion, which had been reported from the
Committee on Commerce with an
amendment on page 2, after line 4, to
Insert: '
(b) The President shall designate a Chair-
man from among the members of the Com-
mission.
At the beginning of I1 a 7, to strike
out "(b) " and insert "(c) "; at the be-
ginning of line 10, to strike out "(c) " and
insert "W"; in line 23. after the word
"of", to strike out "subsistence" and In-
sert "subsistence,"; on page 3, line 14,
After the word "farming", to insert "and
other food production"; on page 4, line
6, after the word "of", to strike out
"opinions." and insert "opinions perti-
nent to the study."; in line 8, after the
word "is", to strike out "authorized-"
and insert "authorized by majority
vote-"; on page 5, line 15, after the
word "to", to strike out "request" and
insert "require"; in line 17, after the
word "agency", to strike out "available";
in line 19, after the word "authorized",
to insert "and directed"; on page 6, line
20, after the word "as", to strike out "it
deems" and insert "are"; in line 21, to
strike out "Its business" and insert "busi-
ness, except as otherwise provided"; after
line 21, to strike out:
SEC. 6. ADMINISTRATIVZ ARRANGEMENTS.- (a)
The Chairman of the Commission is author-
ized, without regard to the civil service laws
and regulations or the Classification Act of
1949, as amended, to appoint and fix the
compensation of an executive director and
such additional personnel as may be neces-
sary to carry out thetunctions of the Com-
mission, but no individual so appointed shall
receive compensation in excess of the rate
authorized for 05-18 under the Classifica-
tion Act of 1949, as amended.
And, in lieu thereof, to insert:
SEC. 6 ADMINISTRATIVE ARRANGEMENTS.-
(a) Without regard to the civil service laws
and regulations or the Classification Act of
1949, as amended, the Chairman of the Com-
mission is authorized to appoint and fix the
compensation of an executive director, and
the executive director, with the approval of
the Chairman, is authorized to appoint and
fix the compensation of such additional per-
sonnel as may be necessary to carry out the
functions of the Commission, but no individ-
ual so appointed shall receive compensation
in excess of the rate authorized for GS-1B
under the Classification Act of 1949, as
amended.
On page 8, line 10, after the word
"payments", to strike out "(5 U.S.C.
46c) " and insert "(5 U.S.C. 46e) "; in line
14, after the word "the", to strike out
"Commission:" and insert "Commis-
sion."; and, after the amendment just
above stated, to strike out "Provided fur-
ther, That the Commission shall not be
required to prescribe such regulations.";
so as to make the joint resolution read:
Resolved by the Senate and House of Rep-
resentatives of the United States of America
in Congress assembled, That there is hereby
established a bipartisan National Commis-
sion on Food Marketing (hereinafter referred
to as the "Commission").
Sac. 2. ORGANIZAITON or TIrE COMMIs-
sroN.-(a) The Commission shall be com-
posed of fifteen members, including (1) five
Members of the Senate, to be appointed by
the President of the Senate: (2) five Members
of the House of Representatives, to be ap-
pointed by the Speaker of the House of Rep-
resentatives; and (3) five members to be
appointed by the President from outside the
Federal Government.
(b) The President shall designate a Chair-
man from among the members of the Com-
mission.
(c) Any vacancy in the Commission shall
not affect its powers and shall be filled in
the same manner as the original position.
(d) Eight members of the Commission
shall constitute a quorum.
Sac. 3. COMPENSATION or MEMBERS.-(a)
Members of Congress who are members of
the Commission shall serve without compen-
sation in addition to that received for their
services as Members of Congress; but they
shall be reimbursed for travel, subsistence,
Approved For Release 2005/01/27 : CIA-RDP66B00403R000200170063-1