CONGRESSIONAL RECORD RE: EXTENSION OF AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954--AMENDMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000300010028-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 31
• Document Creation Date: December 16, 2016
• Document Release Date: January 5, 2004
• Sequence Number: 28
• Publication Date: January 1, 1958
• Content Type: OPEN

Approved For Release 2004/05/13 : CIA-RQP91-00,965R000300010028-7
CONGRESSIONAL RECORD - SENATE' 4089
with an increase in personnel and, of course,
a tremendous increase in host to the United
States. , By allowing our allies to operate
these ships now, the ships would be readily
available to us for any use we might have
for them in any emergency.
Inasmuch as the details of the proposed
loan program are classified, they are not
transmitted to the Congress at this time,
but will be made available to the Congress
at the hearings on the proposed bill.
Section 7307 of title 10, United States
Code, requires the authorization of Congress
for the loan of destroyers and submarines
that have not been stricken from the naval
vessel register.
COST AND BUDGET DATA
It is estimated that the cost of activation,
which includes rehabilitation, outfitting,
and providing spare parts, ammunition, and
-Logistic support, for each destroyer will be
approximately $2.5 million; for each de-
stroyer, escort, approximately $1.7 million;
and for each submarine, approximately $1.9
million. The costs will be charged to funds
programed for the recipient government un-
der the Mutual Security Act of 1954, as
amended, or to funds provided by the reclp-
ient government under the reimbursable
provisions of that act, on a country by coun-
try basis, in accordance with their economic
capability.
Should the United States request the
turn of a ship loaned prior to the expiration
of the loan period specified by the agree-
ment, the foreign government, if it has paid
the above costs under the reimbursable pro-
visions of the act, will be reimbursed by the
United States on a pro rata basis.
Sincerely yours,'
RICHARD JACKSON,
Assistant Secretary of the Navy
(Personnel and Reserve Forces).
COMB, were added as additional cospon-
....sors of the bill (S. 3497) to expand the
public facility loan program of the Com-
munity Facilities Administration of the
Housing and Home Finance Agency, and
for other purposes, introduced by Mr.
FULBRIGHT (for himself and other Sena-
tors) on March 17, 1958.
USE OF SURPLUS FOODS TO ASSIST
NEEDY FAMILIES IN COMMUNI-
TIES SUFFERING FROM SERIOUS
UNEMPLOYMENT - ADDITIONAL
COSPONSOR OF BILL
Under authority of the order of the
Senate of March 17, 1958,
The name of Mr. CLARK was added as
a cosponsor of the bill (S. 3501) to au-
thorize the Secretary of Agriculture to
expend funds appropriated for the diver-
sion of surplus farm commodities to pro-
vide balanced diets in schools and insti-
tutions and for needy families, intro-
duced by Mr. PROXMIRE on March 17,
1958.
ADDRESSES, EDITORIALS, ARTI-
CLES, ETC., PRINTED IN THE
APPENDIX
On request; and by unanimous con-
sent, addresses, editorials, articles, etc.,
were ordered to be printed in the Ap-
pendix, as follows:
By Mr. SPARKMAN:
Address delivered by Donald R. Moore,
justice of district XII, Phi Alpha Delta Law
Fraternity, in tribute to Senator HILL.
Article entitled "Flag of the United
States," written by Holy. Walter B. Jones,
circuit judge, Montgomery County, Ala., and
published in the Montgomery (Ala.) Adver-
tiser of March 3, 1958.
AMENDMENT OF ANTITRUST LAWS,
RELATING TO PREVENTION OF
MONOPOLISTIC. ACTS OR PRAC-
TICES-AMENDMENT
Mr. YOUNG (for himself, Mr.
O'MAHONEY, Mr.- WATKINS, and Mr. CAR-
ROLL) submitted an afhendment, intend-
ed to be proposed by them, jointly, to the
bill (S. 1356) to anlend the antitrust laws
by vesting in the Federal Trade Com-
mission jurisdiction to prevent monopo-
listic acts or practices and other unlaw-
ful restraints in commerce by certain
persons engaged in commerce in meat
ILLEGIB and meat products and for other
r
lr-
p
pose$, which was ordered to lie on the
bl and to be printed
URAL
TRADE DEVELOPMENT AND AS-
STS ANCE ACT OF 1954-AMEND-
Mr. MARTIN , of Iowa submitted
amendn ent~s, intended to be proposed by
him, to the bill (S. 3420) to extend and
amend the Agricultural Trade Develop-
meat and Assistance Act of 1954, which
were ordered to lie on the. table, and to
e printed.
X1'ANSl F PUI3IIC, FACILITY
LOAN PROGRAM -ADDITIONAL
CO$PO1 O R S O F Under authority of the order a1 the
Senate,of March 17,'1958,
The xla ies of Mr. MANSFIELD, Mr.
PREAR, Mr, 1CNAMARA,' and Mr. RREVER-
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By Mr. TALMADGE:
Address entitled "Values in American Edu-
cation," delivered by Hon. Marion B. Folsom,
Secretary of Health, Education, and Welfare,
before Rotary Club of Atlanta, Ga., on March
17, 1958.
Address delivered by Hon. J. L. Morgan,
chairman of Georgia Agricultural Stabiliza-
tion and Conservation Committee, before
Land and Water Use. Conference, held in
conjundtion with the national convention of
the American Farm Bureau Federation in
Chicago.
By Mr. McCL4LLAN:
.Address delivered by Hon. James A. Farley,
and statement by himself which was read,
at New York Chamber of Commerce dinner
In honor of Hon. Herbert Hoover and his
associates on the First and Second Hoover
Commissions, at the Waldorf-Astoria, New
York City, February 21, 1958.
By Mr.SALTONSTALL:
Lincoln Day address delivered by State
representative -Nathaniel Tilden, of Massa-
chusetts.
- Address delivered by Richard Glenn Get-
tell , president of Mount Holyoke College,
before .seven Associated Women's College
Clubs of Boston, at Weilgsley, Mass., on
January 25, 1958, relative to training of fu-
ture leaders in natural and social sciences.
$~eso ytioxl a opted by the national ex-
ditve commit of Centennial` Legion of
Historic, Military Commands of the Thirteen
Original States in opposition to any reduction
h N t. `1 G d
th f
i
t
t
f t
A
World Brotherhood Award to Pan American
Airways and its president, Juan T. Trippe.
Statement entitled "A Communication to
the Alumni," by Paul Cruikshank, head-
master of the Taft School, of Watertown,
Conn.
By Mr. YOUNG:
Sermon delivered " y Rev. F. G. Sherrill,
pastor, St. Johns Episcopal Church, Dickin-
son, N. Dak., on inauguration of North
Dakota Theodore Roosevelt Centennial Ob-
servance.
By Mr. O'MAHONEY:
St. Patrick's Day oration delivered by
Bishop Philip M. Hannan, of the diocese of
Washington, at the meeting of the Ancient
Order of Hibernians and its Ladies' Auxiliary
in the Mayflower Hotel, on St. Patrick's Day,
March 17, 1958.
By Mr. MANSFIFLD:
Sermon by Francis B. Sayre, Jr., dean of
Washington Cathedral, on Sunday, March 9,
1958, and article by Kenneth Dole, published
in the Washington Post and Times Herald
of March 10, 1958, commenting on the
sermon.
By Mr. MARTIN of Iowa:
Editorial entitled "Buying Versus Selling,"
published in the March 15, 1958, issue of
the magazine Editor and Publisher.
By Mr. DWORSHAK:
Article entitled "Representative HAMER
BUDGE Represents Hardworking Economy
Bloc in Congress," written by James P.
Gossett, and published in the Gooding
Leader.
By Mr. JAVITS:
Letter addressed to hini by David M. Ger-
stein, dated January 14, 1958, and letter ad-
dressed to him from Department of. State,
dated February 26, 1958, concerning India.
Recommendations ol Grand Jurors Associa-
tion of Richmond County, N. Y., relative to
correction of juvenile delinquency.
By Mr. NEUBERGER:
Report by Dr. G. Herbert Smith, president
of Willamette University, to his board of
trustees, February 24, 1958.
Article entitled "University of Oregon
Hospitals and Clinics," published in Resident
Physician of February 1958; and editorial
entitled "Doctors and Population," published
in the New York Times of March 8, 1958.
By Mr. PROXMIRE:-
Resolutions adopted by Farmers Union
Central Exchange Convention, March 12,
1958, indicating support in fight for farm
parity.
Letter from Armenian Youth Federation
regarding 25th anniversary of that organi-
zation.
Letter addressed to him by Morris H.
Rubin, editor, of the Progressive magazine,
of Madison, Wis., on the subject of Senator
HUMPHREY'S address on disarmament.
By Mr. YARBOROUGH:
Article entitled "They Have a Simple
Dream, 400 English Words for Every Child,"
written by Marie Dauplaise, and published
in the Houston Press for March 12, 1958.
By Mr. KNOWLAND:
Article entitled "Newspaperboy Appeals to
His Elders To Drive Safely," published in the
Alameda Times-Star of January 24, 1956.
BOMBING OF JEWISH COMMUNITY
CENTERS IN NASHVILE AND MIAMI
Mr. JAVITS. Mr. President, millions
of Americans, both in and outside the
South, must feel a sense of personal out.
rage at the bombing of Jewish' com-
munity centers in Nashville and Miami
i
reng
e
n a s
o
rmy a Iona uar and the threat to Federal Judge Miller of
Address delivered By Mr. IVES:by Gen. Carlos P. no- Nashville. Every citizen can understand
;nulQ, Philippine Ambassador to the United that this kind of intimidation against
States, and reply by Adm. H. B. Miller, on the exercise of lawful constitutional
the occasion of presentation of the annual' rights is a fundamental threat to our
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CONGRESSIONAL RECORD - SENATE
system of gover1iment and society. It
cannot and should not be tolerated, and
it is most gratifying to report the
spon- taneous and determined reaction by pub-
lie and governmental authorities in both
cities, as well as the prompt interposition
of the FBI to the extent of its jurisdic-
tion.
I have very often spoken with full
understanding of the difficult nature of
the issue of integration in the public
school system of the Southern States
pursuant to the Supreme Court mandate,
and of the sincerity of . many who feel
deeply that it should not be,done; but
try prevails over, everything else, and
Americans have learned t 4t discipline
14 required of citizens to keserve free
institutio}is. I am confident that it is
only a tiny minority which w d out-
rage and besmirch our Constitut n and
March 18
I have long espoused the principle of added. It has been established that a major-
education, technical assistance, and ity of the inhabitants of each Territory want
conciliation to/ bring about compliance statehood. Prom the standpoint of popula-
with the decision of the Supreme Court tion and on the basis of political and eco-
regarding desegregation in the schools met thep proper tests, teestss, for eli Ti' have
met the eligibility. . Partisan
in order to 'achieve for all our people '.political considerations have contributed , to
their full civil rights as guaranteed by past frustrations, particularly when the case
the Constitution. The leader in that fo1I both Territories base been joined in a
movement for a much longer time than single piece of legislation. They are sep-
I have been in it has been my senior arated now and, with the backing already
colleague from New York [Mr. IVES], given to the Alaska measure, the Rules Com-
But, I believe, just as strongly, that, in mitte,C should let the full House vote.
order to make the processes of educa-
tion, technical assistance, and concilia- gONTROL OF SIGNBOARDS ON IN-
tion work, they must be backed up by
TERSTATE HIGHWAYS
obeying the law.
We see the two sides of the me
dation will succeed either in the Jewish that justice is done, and
communities directly concerned, or with can sense of fair play;
the burdens of conscience and the re-
sponsibilities of the struggle for free-
dom, knowing full well that the fate of
all minorities is the fate of every minor-
ity. It is because our Constitution pro-
tects minorities as of right *hich makes
it the embodiment of the ethical.teach-
ings of 5,000 years of Judeo-Christian
thought and learning. .
The religious conscience of the Chris-
tian faiths, both Catholic and Protestant,
has already been aroused to the im-
plications, in terms of religious teachings
and the Bible, of segregation and dis-
crimination on grounds of race and
color; these attacks in Miami and Nash-
ville are just as much an assault 'Upon
Jewish community. The intimidation of
these bombings will fail, but the intimi-
It is my understanding that the De-
partment of Justice, through the FBI, is
investigating the bombing and the
threats, but the jurisdiction under
which the Justice Department operates
is unnecessarily narrow and calls for
immediate amendment to the existing
criminal law. Under present law, a con-
spiracy to intimidate a judge in the ex-
ercise of his duties is punishable as a
crime, but intimidaton and threats made
by a single individual are not subject to
Federal jurisdiction, nor to the inves-
tigation by the FBI. unless by happen-
stance the threat is carred over inter-
state communication systems-a totally
irrelevant factor in attempting to pre-
serve Federal justice from intimidation.
I therefore am introducing legislation
which will in substance provide that
whoever, alone or in conspiracy with
others, by threats, force, or intimida-
tion, prevents or attempts to prevent a
Federal officer, including a judge, from
carrying out his duties or threatens to
injure him because he has already done
so shall oe punishable as a felon.
ALASKAN'':
one major reason that the Senate Public
Works Committee has recognized for the
first time in history the responsibility
of the Federal Government for protection
including- partisan compromise on our two pro-
S1A IOOD
Mr. CHURCH. Mx, President, the
has been considered for more than 4
years.
Mr. President, the time is growing
short. Sodn it 4Iiay be too late to ac-
complish action &ring this session. Jus-
tification for further delay is nonexistent.
I ask unanimous consent that this ex-
cellent editorial( be printed in the RECORD
at this point in my remarks.
There boing no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
LET THE HOUSE VOTE
The time has come for the House Rules
Committee to do its part in redeeming a
pledge made repeatedly by both major politi-
cal parties. It is 'the matter of authorizing
state~ood for Alaska and Hawaii, a subject-
thathas been brought to Congress intermit-
tently since 1916 and that has received favor-
able support in Democratic and Republican
platforms since 1946.
At this point, an Alaskan statehood bill-
indorsed by the House Interior Committee-
is before the powerful rules body, and Interior
Committee Chairman ENGLE, California Dem-
ocrat, has been promised that some time after
March 15 consideration will be given to clear-
ing the measure for action on the House floor.
A similar bill already has been reported fa-
vorably in the Senate. Supporters of Alaskan
statehood express confidence that they can either side of the highway. Eight similar
win a favorable vote in both Chambers-if bills are lying in commitee in the House of
the congressional leadership will clear the Representatives.
way to call the bills up for the ultimate testa. The importance of favorable congressional
The arguments pro and con on statehood action on such legislation in this session
for either of the Territories have been made cannot be overemphasized. As the President
repeatedly and there Is little new than can be has said, such action "is necessary to assure
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posals in the field of signboard regula-
tion.
An excellent-and anticipatory-edi-
torial with respect to such a compromise
appeared in the Portland Oregonian,
which is published in my home city, on
February 21, 1958. Because the Senate
soon will discuss the splendid new high-
way bill, with its signboard-control pro-
vision, I ask unanimous consent that the
editorial, entitled "Roadside Issue Up
Again," be printed in the body of the
RECORD.
There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
ROADSIDE ISSUE UP AGAIN
There is good reason for hope that the cam-
paign to keep the projected new interstate
freeway system relatively free of billboard
v4utter will soon bear some fruit.
''i\or one thing, the roadside beautification
fort have won an influential recruit. Pres-
ident`\fsenhower, in his budget message,
recomnr@nded "prompt enactment of legis-
lation to"control advertising on the Inter-
state Highway System" and later wryte as
follows to Gen. U. S. Grant III, president of
the American' Planning and Civic Associa-
tion: "'tam. convinced that this activity must
be controlled and`.regulated if the public is
to have the safe driving conditions and sur-
roundings contemplated by the high stand-
ards applicable to the Interstate System.
* * * I believe that Federal legislation on
the subject is necessary to assure effective
State action."
Another convert is Senator KfrCHEL, of
California, who has introduced in the Sen-
ate a bill intended as a compromise substi-
tute for the Neuberger bill and the Bush bill,
two other regulatory measures reposing in
the Senate Committee on Public Works. The
Kuchel bill (S. 3218) would, however, con-
fine regulation to "outside incorporated
municipalities," which would be a severe re-
straint where political subdivisions are con-
tinuous. All three bills would provide for
Federal incentive payments to encourage
States to enter into agreements. restricting
roadside advertising. The restricted area
 its second a-year plan. At the end of sentiment needed now for business recovery./ EXTENSION OF AGRICULTURAL
this .second period in 1961 it is hoped The stock market would be one of the first- TRADE DEVELOPMENT AND AS-
her a.nnnai'n~er ca
ita. income will have rise insti+_+ions to refle
i
'
t th
i
f
p
c
n
e com
ng o
an
,;a plan it wh be one that takes into account a aye ur ng the economy wave of the Senate.
r of last year. Actuall
the long-range as well as the short-range The present recession wasn't planned, as y the select Commstat had not
'4spee'ts. some Democratic Senators are saying, but it made any recommendations at the time
The Govex}rment ,would surely face a se- is in part the direct result of the drive made the resolution extending its life was
rious situatlonrom a fiscal point of view early last year by some of the same Demo- voted on last January.
1j without waiting to get a clear picture of c> ats. to curtail defense appropriations. A But it is interesting to note that about
Oust what iias been happening in the na- chaff ge came when the first Soviet sputnik 15 pieces of proposed labor legislation,
iy, it interjected an unbalanc- was launched late in 1957. The biggest econ- all growing out of the work of the select
g ac or n the way of a sharp reduction Pm$7cgrs of..last year in Congress are among committee during the past year, already
X.1Tpts those who would spend extravagantly this
~Thesyc3iollogkcal effect,, in other words, year and also would deprive the Treasury of Were in the Senate hopper.
a deli cif 'ol $10 fo ~15.billion might tend billions of tax revenue. If politicians instead It is significant to note that 11 of
to bring suof a pessimistic outlook for the , of economists are heeded, the remedy indeed these 15 bills were introduced by mem-
4ong-range future as to discourage the very may prove worse than the disease. berg, q the,select ..oQi]Q1zllt cc. , I b livee.
-~~r"?~?__=~_~ ==u m purunases wnlcn to provide legislative recommendations
for t g itself to . stampeded en it _by pressure were authorized for the Government to make to the appropriate standing committees
for taxredigp and whhen it comes up with but were d 1 d d i
d b
veti}Ial bust could bring about an unem- decreases in durable goods as well as defense goo COU a accomplished by the com-
ployinent many times that figure. hardware. These factors can be helped by mittee.
'Of work but, if America embarks on what i latest report, says the decline in employment Frankly, I wondered what further
could result in a runaway. inflation, the s basically due to inventory reductions and d l
into the red. e a rly well throughout the country, serious doubts about the wisdom of this
There are about 5,200,000 persons now out The Federal Reserve Bank of Chicago in its move
o
t
r wpor ant projects since it was organized in January 1957.
when he says that iftwo pending bills, each previously put aside. -,
providing $5 million or more in tax reduc- RETAIL SALES FAIRLY STEADY When the resolution to continue the
tion, are adopted, this might throw the life of the committee was considered by
Federal Treasury $10 billion to $15 billion ld f There i are signs, too, that retail sales have the Senate some weeks back I had some
means a great deal to many millions who of today were to be headed down towarda Mr. MANSFIELD. Mr. President, is
have long lived in such poverty as we can 25-cent value in the next few years, obvi- morning business concluded?
hardly imagine. It means the more because ously prices of stocks would tend to rise The PRESIDENT pro is attempting to achieve results by commensurately. This would be an artifi- o tempore. Is
voluntary methods. cial upsurge that could in the end bring on there further morning business? If not,
It will be a long haul.' Involved in it will a smash. morning, business is closed, and the
be not only men's bodies but their souls. TAX CUT NO JOBLESS AID Chair lays before the Senate the unfin-
To Senator COOPER it seems, and we agree, It is no surprise, therefore, that words of ished business.
tat if "we meet our present test with aid to caution came from Secretary of the Treasury The Senate resumed the consideration
India we will be in a better position to Anderson on Wednesday after his confer- of the bill (S. 3420) to extend and
take on, the new Soviet economic and once with President Eisenhower and his eco-
liticil challenge throughout the world:' amend the Agricultural Trade Develop-
political nomic advisers. There is need, of course, for fhent and Assistance Act of 1954.
tax revision, but it should be undertaken on Mr. MCNAMARA obtained the floor.
RECF{ SSION CURES FEARED A. a as a me g meanns s a of of d dnginb rate istributingp puurc and rchasing not just Mr.
The PRESIDENT pro tempore. The
WORSE THAN THE DISEASE to individuals. It should include 4 method bill is open to amendment.
of stimulating the heavy-goods industries so Mr. MANSFIELD. Mr. President, I
Mr..SMITH of New Jersey. Mr. Presi- that manufacturing corporations can begin ask unanimous consent that the Senator
dent, all of us are vitally concerned with to plan for new equipment and plants, from Michigan may yield to me for the
the current economic condition of the If it were merely a case of giving cash to purpose of suggesting the absence of a
Nation, but it-,is essential that while we the public generally, it would cost far less quorum, without losing his, right to the
are promoting emergency measures for to aid certain distressed areas on a local basis. floor.
the relief of those who have been most For most of the tax proposals would give -a
tax reduction to those who already have jobs Mr. McNAMARA. I would be happy
hard hit, we also take into account the and savings enough to continue a high ve- to yield.
long-range aspects of the situation. .locity of purchasing. The unemployed, on The PRESIDENT pro tempore. Is
Continuing careful appraisals can help the other hand, would not benefit by a tax there objection to the request of the
to restrain us from adopting measures reduction to individuals. Business itself Senator from Montana? Without ob-
which contain within themselves the would have to be encouraged somehow by jection, it is so ordered.
possibility of future fiscal crises in the corporate-tax reductions to create more em- Mr. MANSFIELD. Mr. President, I
form of heavily unbalanced budgets, and ployment. This would have an impact on
industrial conditions generally. suggest the absence of a quorum.
Inflation. The PRESIDENT
Such a warning has been given by BUSINESS UPSET LAST YEAR pro tempore. The
Mr. David Lawrence in his article en- Last year, when this correspondent was clerk will call the roll.
titled "Recession Cures Feared As Worse almost alone in defending the $71 billion The Chief Clerk proceeded to call the
Than the Disease," which appeared in budget of the President, there was a wide- roll,
the March 14 issue of the rib- spread pressure in Congress for reducing the Mr. McNAMARA. -Mr. President, I
th
the. I ask unanimous the Herald Her lthat this d Trib spending. It resulted in an artificial re- ask that the order for the quorum call be
straint on the flow of defense expenditures, rescinded.
article be. printed in tlae RECORD follow- The sudden cuts and the modification of the The PRESIDENT pro tempore. With-
Ing
my remarks. system of Government financing of defense out objection, it is so ordered.
There being no objection, the article The business into eanwem fembarrassing position.
as was follows: T ordered to be printed in the RECORD, , at WORK OF SELECT COMMITTEE ON
RECESSION CURES FEARED As WORSE THAN high rates to pay bills the Government cus-
tomarily paid while the work was in process. IMPROPER ACTIVITIES IN THE
THE DISEASE This weakness has now been remedied and LABOR OR MANAGEMENT FIELD-
(By David Lawrence) the Government is readjusting its method of THE KOHLER STRIKE
WASHINGTON, March 1$.-There's an old handling defense contracts. It is speeding
saying that "the remedy could be worse than up the allocation of orders, too. Defense Mr. McNAMARA. Mr. President, a
the disease," and that's what might happen spending is now estimated by Secretary Mc- few weeks ago the Senate agreed to con-
If all or even some, of the various antireces- Elroy at $11,700,000,000 for the first 6 months tinue the Select Committee on Improper
slon measures being proposed in Congress of 1958, as compared with half that amount Activities in the Labor or Management
were put into effect. for the last 6 months of 1957. There are also Field, with another $500,000 to finance it.
Senator IIARR?Y BYRD, Democrat, of Vir- to be noted some marked increases in spend- As my colleagues know, I am a mem-
ginia, chairman of the Senate Finance Cow- ing not only by the Federal but by State and ber of that committee, and I have?been
mittee gives an inkling of what might occur local governments f
i
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No: there is no question of the ob-
jectives.
I. do not say this in defense of the
UAW. That organization certainly
needs no defense from me or anyone
else.
Yet, I would like to see the Kohler
strike settled. I would like to see this
bitterness erased and peace restored.
Mr. PROXMIRE. Mr. President, will
the Senator yield?
Mr. McNAMARA. I yield.
Mr. PROXMIRE. Mr. President,
speaking as a Senator from the State
of Wisconsin, I should like to say to fie
distinguished Senator from Mich) an
that the. people of Wisconsin would cer-
tainly like to see the strike sttlerl.
However, I should like to say =several
things as quickly as I can. 'believe
that Sheboygan and the Stat of Wis-
consin have been put in a t unfor-
tunate and unfair position y a num-
ber of developments which ve occurred
CONGRESSIONAL RECORD -'SENATE March 18
by members of the committee.
Therefore, it occurred to me that there
certainly were ample bills on hand to
,enable the appropriate standing com-
ittees to resume their normal and nat-
ural functions.
Confirntationof my reasoning came, I
believe, when the chairman of the Sub-
committee on Labor of the Labor and
Public Welfare Committee announced
the other day that hearings on the pend-
ing legislation would begin later this
month.
Mr. President, the reason I raise `this
point today is simply to offer the ob`ser-
vation that the select committee should
have quit while it was ahead.
It had its record made. It had, I lie-
lieve, the general confidence of the peo-
ple of t e country.
It had, I know, the cooperation of the
AFL-CIO, which was just as anxious to}
eliminate any improper activities within
the labor movement.
Yes, Mr. President, the select commit-
tee had its comfortable niche in history
well secured.
Unfortunately, the good name of the
select ,committee and the record its has
achieved now are on the verge of com-
plete destruction, if, indeed, the damage
The reason for this self-destruction is
the farce now going on in the caucus
room, which purports to be an investiga-
, tion of the United Auto Workers strike
against the Kohler Co.
This strike has been continuing for
nearly 4 years. Certainly, it is a sad
one.' It is a bitter one. I would be the
last to, say that either side was com-
pletely blameless.
Yet, the record of this strike was ivell-
developed long before the committee
`began its so-called hearing.
The National Labor Relations Board
had gone into this case thoroughly, and
.the findings by a hearing examiner of
unfair labor practices against the com-
pany are now before the full board.
To my knowledge,-from the record of
.these hearings nothing new has been de-
veloped. I refer to the McClellan com-
mittee hearings-except possibly that
the company was using labor spies.
What then was the reason for going
into this strike?
!there was but one real reason. That
was to embarrass, or if possible, cripple,
the UAW.
Anyone who has followed these hear-
ings, either by attending. them or by
reading the transcript or the newspaper
accounts, canreadily attest to this.
Time after time the questioning of
witnesses was not directed toward issues
In the Kohler strike, but to the past his-
Not only that, but there were de-
liberate attempts to lay all the ills of
labor-management relations, practi-
cally since the birth of Samuel Gompers,
at the feet of the UAW and Walter
Reuther.
An example of this came the other
day, when it was implied that the CIO
was responsible for 37 deaths in 13
strikes-a complete and deliberate dis-
tortion of facts,
during the strike.
First, I deeply regrette It when a top
representative of the Un' ed Automobile
Wqrkers called in quest* n the integrity
of he clergy of Sheb gan. I believe
that was most unfort ate and unfair,
because I know perso, ally many of the
leading religious lea rs in that commu-
nity, and I know t t they are men of
absolute, integrity nd of deep convic-
tion. Although t ey have taken some
part in the strike ccasionally, I am sure
they have alway been motivated by a
deep desire to settle the strike as quickly
as it could settled. I say this,
although I r ize, of course, that Mr.
Mazey, after /he made the statement,
-withdrew it. ? I em glad he did retract
it. Howeve as a Senator from Wis-
consin, I cbnnot permit this opportu-
nity to pas without asserting my pride
in the chracter of the clergy of She-
boygan that has been, impugned.
In thqsecond place,- there has been a
great deal of talk about violence in the
strike. ! There has been some violence.
This most deplorable. But this strike
has been in existence for 4 years. There
has Teen tremendous bitterness. As a
matter of fact, it is surprising, as the
Nev York Times points out, that the
number of persons who have, suffered
bodily harm in 4 years has been only
0 out a half dozen. Of course, I deeply
regret there have been this many.
Nevertheless, all things considered, the
Sheboygan record has been good.
The restraint and, good sense of the
people of Sheboygan and the whole com-
munity is to their credit, in view of the
duress and stress under which they have
been living. Most regrettable is the one
act of particular violence which has been
described to me, and which was charged
to a man who left the State of Wscon-
sin and went to Michigan. It is unfor-
tunate that he has not been extradited;
I feel very strongly that he should be
extradited, because the failure to extra-
dite him constitutes a lack of faith in
Wisconsin justice.
In speaking to the point the Senator
from Michigan has raised, I should like
to say that I, too, think the strike should
be settled, and in that connection I
should like to emphasize the fact that
there have been it series of occasions
when responsible people and responsible
officials have tried to settle the strike.
While I believe that there has been
some fault on the part of the union, as
I have indicated in my remarks so far.
I believe that in this case the failure to
settle the strike is very largely the fault
of the company. I' point out that on
May 7, 1954, only a few weeks after the
strike had started, Federal Judge Rob-
ert Tehan offered a truce plan. The
union accepted it, but the Kohler Co.
rejected it.
On June 29, 1954, Mr. Lawrence E.
Gooding, the chairman of the Wisconsin
Employment Relations Board, acting as
a personal representative of Governor
Kohler, entered the negotiations. The
Kohler Co. made no change in its posi-
tion, and walked out of the negotiations.
On July 8, 1954, Governor Kohler of-
fered his services. Governor Kohler is
a man against whom I have run three
times, I know him as a political op-
ponent. I have the greatest respect for
him. He is a man of absolute integrity
and fairness. He has not been biased.
Incidentally, he is a nephew of the pres-
ident of, the Kohler Co., Herbert Kohler,
Governor Kohler asked both sides to
submit the issue in dispute to arbitration.
The union accepted, but the Kohler Co.
angrily turned down the offer in a letter
made public in which they criticized the'
Governor for interfering with the Koh-
ler Co.'s private business.
On January 28, 1955, Mr. Clyde M.
Mills, Acting Director of the Federal
Conciliation and Mediation Service,
called both parties to Washington. The
union indicated a willingness to nego-
tiate. The Kohler Co. spokesman said
their offer was unchanged.
On June 3, 1955, the Senator from
New York [Mr. IvEs], the late Senator
from West Virginia, Mr. Neely, and the
Senator from Michigan [Mr. McNAMARAI,
at a meeting of the Committee on Labor
and Public Welfare, urged both parties
to negotiate in Washington. Again the
union was willing. The Kohler Co. re-
fused.
Mr. McNAMARA. I should like, to
indicate at that point that this was a
subcommittee of the Committee on La-
bor and Public Welfare.
Mr. PROXMIRE. The Senator is cor-
rect.
On the same day, June 3, 1955, Secre-
tary of Labor, James P. Mitchell, offered
to act as arbitrator of the dispute. The
union accepted, but again the company
refused.
OnJuly 5, 1955, the mayor of Sheboy-
gan called both parties to meet in an
effort to settle the strike. The Kohler
Co. officials walked out of the meeting,
calling it a publicity stunt. The union
had agreed to meet.
There are many other Instances which
follow the same pattern, with the union
willing to accept negotiation and the
company turning down such offers.
I conclude by saying that I feel very
strongly that the strike should be settled,
and that nothing is being accomplished.
by continuing or'dragging out the strike.
The people of Wisconsin are very grate-
ful to the Members of the Senate and
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1958 CONGRESSIONAL RECORD - SENATE 4113
Mr. ANDERSON. Mr. President, the ' The third amendment reflects the' esti- point the letter from the Department of
House has passed, with an amendment, mated increased cost of the rehabilitation Agriculture dated February 17, 1958,
S. 2120, to authorize construction and -work on th commenting on S. 3039 as refer t
r- committee. ILLffI B
rehabilitation of the Mercedes division, prices.
The sponsor of the bill', the distin- J EXTENSION OF AGRICULTURAL
guished majority leader [Mr. JOHNSON] 1 TRADE DEVELOPMENT AND AS-
and the Committee on Ipterior and In- SISTANCE ACT OF 1954
sular Affairs, are agreeable Jo the The Senate resumed the consideration
amendment, which provides: of the bill (S. 3420) to extend and amend
First. That the construction costs the Agricultural Trade Development and
shall be repaid in accordance with ability Assistance Act of 1954.
to repay, which has been indicated to be Mr. ELLENDER. Mr. President, the
less than 40 years. Senate has before it for consideration
f Second. That interest shall be paid on Senate bill 3420, which extends Public
costs attributable to excess lands. Law 480, the Agricultural Trade Develop-
Third. That the authorized cost be in- ment and Assistance Act of 1954.
creased from $9,300,000 to $10 million. Before proceeding to a discussion of
I move that the Senate concur in the the bill now before .the Senate, I should
House amendment, with amendments to like to state that, on February 26, the
t
i
ti
f
ll
w
n
correc
a pr
ng error as
o
o
s:
On page 2, line 14, change the period at the
end of line 14 to a comma and insert there-
after, the present text of section 2, begin;aing
with the words "and shall" in line 21, page
2; and to change the comma preceding the
aforesaid words "and shall" to a period and
delete the remainder of section 2.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ments of the Senator from New Mexico
to the House amendment.
'The amendments to the House amend-
ment were agreed to.
The question recurs on concurring in
the House amendment, as amended.
The House amendment, as amended,
was concurred in.
Mr. ANDERSON. Mr. President, I ask
unanimous. consent, that a statement
with reference to the amendments, be
printed in the RECORD at this point.
There being no objection, the state-
ment was ordered to be printed in the
RECORD, as follows:
In order to clarify the situation as to a
proposed repayment period in connection
with the first amendment, we feel the follow-
ing statement is necessary:
In ~sonnection with the first amendment
relating to the repayment ability of the Mer-
cedes division, it is our view that a precedent
for a repayment period for the construction
costs of approximately 35 years has been es-
tablished. This precedent came about in
connection with a proposed repayment con-
tract under the Small Projects Act in con-
nection with an application for a loan to
Cameron County Water Control and Im-
provement District No. 1 for the, rehabil.ita-
tion of the Harlingen division, Lower Rio
Grande 'project, where a 35-year repayment
period has been agreed on between the Bu-
reau of Reclamation and the Cameron Coun-
ty district concerned.
This 35-year term was agreed upon largely
as a result of a hearing before the Sub-
-committee on Irrigation and Reclamation
At which it appeared that the loan could be
hepaid in that period. The repayment ca-
pacity of the lands in the Mercedes division
is, we understand, similar to that of the
Harlingen area. In addition the Mercedes.
area has an outstanding bond issue which
,should be taken into account in fixing a pe-
ri4 of repayment under the authorization Public Law 480 for 1 year only, instead
tnjexr iz e.ScBnst #OI?-Sl urges attrib- - creased by not more than $11/2 billion.
t s. held ill exeess of .160 acres, 'Mr. President, I ask unanimous con-
,1+ir: sent t0 have printed in the RECORD at this
Committee on Agriculture and Forestry
reported to the Senate, Senate bill 3039,
which also is a bill extending and amend-
ing Public Law 480. It was introduced
by the distinguished Senator from Kan-
sas [Mr. SCHOEPPEL] and other Senators.
The bill as originally introduced pro-
vided for a 1-year extension of Public
Law 480, and an authorization increase
in the amount of $1.5 billion.
The Department of Agriculture fa-
vored the enactment of that bill, pro-
vided that the bill be considered in con-
nection with the Farm Food and Fiber
Act, S. 3049; a bill which was introduced
by the distinguished Senator from Iowa,
for the administration. The bill S. 3049,
it will be recalled, provided, among
other things, for a further lowering of
the support prices on various commodi-
ties, particularly the so-called basic
commodities and dairy products.
Mr. President, when S. 3039 came be-
fore the committee, it was amended to
increase the authorization from
$11/2
.
STATEMENT ON AMENDMENT 1 billion to $2 billion with not more than
$500 million of the increase to be used
during the remainder of this fiscal year.
The bill was reported, as I stated, under
date of February 26. The committee, at
the suggestion of the distinguished Sena-
tor from Minnesota [Mr. HUMPHREY]
agreed not to call the bill up until the
committee studied certain amendments
which were proposed by the Senator from
Minnesota [Mr. HUMPHREY). These
amendments were submitted by the dis-
tinguished Senator from Minnesota at, a
succeeding meeting of our committee.
The committee agreed, not unanimously
but almost so, to most of the amendments
submitted by the Senator from Minne-
sota (Mr. HUMPHREY]. Mr. President,
that is the bill we now have before us.
Before proceeding with the discussion
of the bill, I should like to point out that
the Department of Agriculture is not en-
tirely in accord with the measure we are
now considering. As a matter of fact, in
its reports to the Committee on Agricul-
ture and Forestry, the Department of
The letter indicates the views of the
epartment of Agriculture as to the ex-
tension of Public Law 480.
There being no objection, the letter
was ordered to be printed in the RECORD,
as follows:
DEPARTMENTor AGRICULTURE,
OFFICE OF THE SECRETARY,
Washington, February 17, 1958.
Hon. ALLEN J. ELLENDER,
Chairman, Committee on
Agriculture and Forestry,
United States Senate.
DEAR SENATOR ELLENDER: This is in re-
sponse to your request of January 17, 1958,
for a report on S. 3039 which proposed to
amend the Agricultural Trade Development
and Assistance Act of 1954, as amended.
This bill would increase the maximum
amount to be appropriated to reimburse the
Commodity Credit Corporation for com-
modities disposed of and costs incurred under
title I of the act, from $4 billion to $5.5
billion. The bill would also extend the
terminal date, through which title I and title
II transactions can be undertaken, from
June 30, 1958, to June 30, 1959.
We favor the extension of this act as part
of the Farm Food and Fiber Act (S. 3049).
This temporary disposal program needs to be
part of a farm program that will effectively
bring the supply of farm products into bet-
ter balance with market demand.
However, this program must not be allowed
to become a device to postpone needed price
support and production adjustments. In
some instances the movement of basic com-
modities under Public Law 480 results, under
the current escalator provisions of legislation,
in higher price supports than would other-
wise prevail. For example, on February 7 we
announced the-price support for cotton at
81 percent of parity. There is no question
that this price support is substantially high-
er than it would have been in the absence of
the exports under Public Law 480. This
comes at a time when the cotton industry is
having difficulties competitively with syn-
thetics and foreign mills. Thus the effect of
moving surpluses under Public Law 480 is
resulting in incentives to build another sur-
plus. It is not desirable to keep farmers
continually under the shadow of price-de-
pressing surpluses.
This program is desirable within our over-
all policy framework of expanding markets.
However, maintaining a range of support
prices which is too narrow to permit the
commercial growth of markets needed to ab-
sorb our production prevents the needed ex-
pansion. Therefore, we favor the extension
of the Agricultural Trade Development and
Assistance Act with the additional $1.5 bil-
lion authorization as part of S. 3049.
The Bureau of the Budget advises that
there is no objection to the submission of_ ^
this report.
Sincerely yours,
E. T. BENSON,
Secretary.
Mr. ELLENDER. Mr. President, I also
ask unanimous consent to have printed
in the RECORD at this point, a letter from
the Department of Agriculture dated
March 3, 1958, commenting on S. 3223,
the original Humphrey bill, later consid-
ered by the committee and which, in an
amended form, is the bill now before the
Senate.
There being no objection, the letter was
ordered to be printed in the RECORD as -
follows:
 community centers so that such use will not
be subject to the appropriation process. The
necessity of doing this eliminates the flexi-
bility which is achieved by lumping in the
agreements the amount of currency, intend-
ed for several United States uses so that the
amount for each specific use may be deter-
mined by the United States later.
Section 104 (k): New section 104 (k)
would expand assistance to American-spon-
sored schools presently authorized In section
164 (j) and would permit grants for the
establishment of new schools. We would
favor a modified form of this amendment
and such a proposal we expect to submit
shortly.
Section 104 (1) : New section 104 (1) would
permit assistance to either public or private
educational or vocational institutions
whether foreign or American sponsored. We
oppose this amendment since such assistance
may be furnished under either section 104
(e) or 104 (g) to the extent that such ex-
penditures will contribute to economic de-
velopment.
Section 104 (a) : Nevi section 104 (m)
would provide assistance to reconstruction,
rehabilitation, health, self-help, and other
technical assistance-type projects of Ameri-
can voluntary agencies.
We oppose new section 104 (m).
We believe that one of the most valuable
features of the American voluntary agencies'
program is that help Is furnished on a peo-
ple-to-people bais. This concept would be
breached by the use of funds arising from
an agreement between the United States and
a foreign government to finance technical
assistance-type programs undertaken by the
voluntary agencies. In addition, turning
over public funds for use by voluntary agen-
cies, most of which are sectarian, would
raise difficult administrative problems.
Section 104 (n) : New section 104 (n)
would provide for the financing of research
projects in foreign countries to find new
uses for United States agricultural com-
modities.
This new section is unnecessary since this
activity is already authorized and is being
undertaken under section 104 (a).
TITLE II-FAMINE RELIEF AND OTHER ASSISTANCE
Extension of programing: The amendment
proposes that the present title II authority
of $800 million at CCC cost would expire on
June 30, 1958, and would provide a new au-
thority of $500 million for, programing be-
tween July 1, 1958, and June 30, 1960.
We oppose this amendment.
The administration has recommended that
the current $800 million authorization is
sufficient for a 1-year extension of the pro-
gram to June 30, 1959. Moreover, the provi-
sion for expiration of existing authority on a
fiscal year basis would unduly complicate
administration of this type of program.
Sections 201 and 202: The amendment
would authorize the use of. CCC funds for
the purchase of non-price-support commod-
ities to be donated abroad under title II.
We, oppose this amendment since the basis
for the title II legislation is to utilize com-
modities already in CCC inventory in pro-
viding assistance to friendly peoples.
TITLE III-GENERAL PROVISIONS
Sections 302 and 416: The amendment
provides that nonfood commodities may be
donated under programs authorized by sec-
tion 416 of the Agricultural Act of 1949.
This amendment would permit donations in
the United States and abroad of commodi-
ties such as cotton.
We oppose this amendment.
The donation of nonfood commodities
would involve expensive processing costs and
would result in greatly increased costs in
relation to the quantity of commodities
which would be moved. In the case of cot-
ton, for instance, at current mill margins,
processing and finishing costs for sheeting. .
March 18
which is one of the lowest cost fabrics, would
be in excess of $100 a bale. In addition, ad-
ministrative costs to supervise the program
would be relatively high. We do not believe
that such a program could be operated with-
out serious impact upon regular commercial
markets for these products, particularly in
the United States.
Section 303: The proposed amendment
would establish a $500 million yearly ceiling
on barter transactions unless a higher level
is approved by Congress. It directs the~Sec-
retary of Agriculture to protect the funds
and assets of CCC by barter for nonstrategic
materials as well as strategic materials.
We oppose this amendment.
The Secretary of Agriculture is authorized
by section 303, Public Law 480, to determine
whether or not a barter transaction will pro-
tect the funds and assets of CCC. The exer-
cise of administrative judgment is necessary
to successful barter and to selection of
transactions which will not be mere substi-
tutes for United States dollar sales which
would have been made in any case. The
effect of the proposed change in section 303
is not clear. If it is to be interpreted so as
not to preclude the continued exercise of
judgment as to whether a transaction will
in fact protect the funds and assets of CCC,
then the change is unnecessary. If on the
other hand, the proper interpretation of the
proposed language is that the Secretary shall
barter on the same basis as before changes
in the program were announced on May 28,
1957, then we oppose it as not being helpful
to farmers and as contrary to the best in-
terests of the Government.
Expansion of the barter program at the
expense of dollar sales would not result in
savings in storage charges or increased agri-
cultural exports but merely in substitution
of imported materials for the dollars which
would otherwise be obtained.
The application of an annual dollar limi-
tation upon the total volume of transac-
tions directed by this section is ambiguous.
There are a series of transactions which
take place over a period of time under a
single barter contract. Would the limita-
tion apply to the total exchange value of
agricultural commodities moved during a
year, or to the total exchange value of agri-
cultural commoditiescovered by barter con-
tracts entered into during the year? Does
"annually" refer to fiscal year, or calendar
year?
The Bureau of the Budget advises that
there is no objection to submission of this
report.
Sincerely yours,
TRUE D. MORSE,
Acting Secretary.
Mr. ELLENDER. Mr. President, I also
wish to read into the RECORD a few state-
ments made by Dr. Paarlberg, Assistant
Secretary of Agriculture, which seem to
me to be at variance with the views ex-
pressed by the Department of Agricul-
ture in the two letters I have submitted
for the RECORD. My reason for doing
this, Mr. President, is to place the entire
matter before the Senate so that Sena-
tors may be guided by all of the facts.
I read now from the testimony of Dr.
Paarlberg, which appears on pages 2 and
3 of the committee report:
The request for a larger authorization
this year is caused by changing world condi-
tions The doIlar osition f al
o sever co
n
p
-
u
tries has worsened and greater demand has
resulted from poor harvests overseas. Ship- -
ments under past programs, particularly
wheat for India, have been accelerated. In
addition, we would expect to program pad
of the new authorization beforeJune 30 ...
the extension is'granted soon enough.
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CONGRESSIONAL RECORD - SENATE
DEPARTMENT or AGRTCVLTURZ,
Washington D. C. March 3," 1958.
Hon. ALLEN J. ELLENDER,
Chairman, Committee on Agriculture
and Forestry, United States Senate.
BEAR SENATOR ELLENDER: This is in response
to your letter of February 5, 1958, request-
fug a report on S. 3223, a proposed bill to
amend the Agricultural Trade Development
and Assistance Act of 1954, as amended.
We'favor the extension of Public Law 480
as part of the farm Food and Fiber Act,
S. 3049. It is important that changes in
the farm legislation provide for moving
toward a better balance between production
of farm products and market demand. The
administration will also propose-certain ad-
ditional amendments, of Public Law 480 in
the near future, some of which are men-
tioned below.
-TITLE I-SALES FOR FOREIGN CURRENCY
Extension of programing: The proposed
bill would increase the title I authority from
.-$4 billion to $4.5 billion at cost to the Com-
modity Credit Corporation to finance foreign
,currency sales concluded through June 30,
1958, and would provide a new authoriza-
tion of $3 billion at market value for pro-
graining between July 1, 1958, and June 30,
1960.. The, proposal would also delete the
clause which describes the title I authority
as an' objective to be reached as rapidly as
possible within the safeguards of the act.'
We oppose these amendments.
The administration has proposed that the
title I authority be increased from $4 billion
to $5.5 billion at CCC cost and that the
terminal date of the program be extended
for .1 year to June 30, 1959. This additional
authority would permit orderly programing
and maintenance, of title exports through
fts"al year 1959 at about the level attained in
Asoal year 1957. The administration con-
atrues title I, Public Law 480, as a temporary
means of moving accumulated agricultural
surpluses abroad In a constructive manner.
Therefore, the extension of the act should
be limited to 1 year to afford annual con-
gressional review of the program.
If monetary limitations are to be made
&pplicable to particular periods, such limita-
t;ions should not apply to transactions car-
xled out but should apply to agreements
entered into by the President under title
We would have no objection to deletion
the clause describing the title I authoriza-
tion as an objective to be reached as rapidly
as'possible.
Section 104 (h) : The proposed bill would
amend section 104 (h) to authorize use of
currencies generated by title I sales an a
grant basis for financing Smith-Mundt ex-
change programs in addition to -the Ful-
bright educational exchange programs now
authorized.
We favor the proposed amendment.
The use of currencies under section 104
(h) now is limited to academic exchanges
JW,IX, 8s , students and, professors. The
amendment would permit such exchanges as
rtcultural leaders, labor leaders, journal-
-d` s, and civic leaders.
*In -addition, we expect to submit shortly
a propoxai to amend this section to permit
dependents accompanying participants in
the program.
Section 104 (j) : The proposed amendment
would 'delete the clause which states "but
to foreign currencies which are available
under the terms of any agreement for ap-
propriation for the general use of the United
States shall be used for the purposes of this
Subsection (j) without appropriation there-
for."
We favor the proposed amendment.
The clause which would be deleted makes
It necessary to set out separately in each title
I agreement the amount to be used for
.American-sponsored schools, libraries, and
 1958 CONGRESSIONAL RECORD -SENATE 4115
At the same time the Assistant Secre-F our intent of a gradual tapering off of the Mr. ELLENDER. Mr. President, the
tary testified as to the importance of money authorized for this program. We. bill which is now before the Senate does
providing adequate authorization, and therefore, support a 2-year extension of this six things.
stated as follows: act with authorization as follows-for fiscal First, it etitles I and II of Pub-
1959, $1,250,000,000; for fiscal 1960, $750 lie Law it 480 extends
for 2 years.
In the title I program, orderly programing million.
and shipping is extremely important. These We submit that by Increasing the author- Second, it provides $1.5 billion a year
are dependent on continuous programing ization for title I foreign currency sales up for title I.
without time out between utilization of to over $3,500,000,000 in the next 2r/2 years, Third, it permits foreign currencies
separate authorizations. We have run into plus the proposed mandatory barter provi- acquired under title I to be used for
periods when title I programing has come to sions of $500 million is a step not in the, broader educational exchange of per-
a standstill; for example, the development best interest of the United States. It will sons, assistance to schools and work-
of new agreements virtually ceased in Jan- have the effect of making Public Law 480 a shops, and chairs in American studies.
studies.
nary 1957 when our authorization was al- permanent part of our agricultural-export Fourth, for expanded
.most exhausted. The availability of funds program and will have the effect of replac- provides during the following months s ould have ing dollar sales with sales for soft curren- barter.
avoided a backlog of program requests from ties. It is important that the Congress Fifth, it extends the duty-free entry
ipterested countries. This backlog resulted demonstrate its firm intent of tapering off privilege to nonstrategic materials ac-
In the necessity to scale down, delay, or ex- sales for foreign currencies, and thereby quired by barter.
elude country programs, and in erratic ship- emphasize the temporary nature of this Sixth, it prohibits discrimination
ment'performanoe. Shipments were running program. against extra long-staple cotton under
about 800,000 tons a month last spring; We should not continue to use Public Law the act.
these dropped off to less than 400,000 tons 480 to dump surplus agricultural commodi- I wish to add that this bill, S. 3420,
and are now just starting to increase again. ties accumulated because of the continua-
It is possible that this same condition will tion of unsound domestic price support and provides, as does S. 3039 to which I re-
.exist again unless an extension is granted adjustment programs. The freezing of the ferred a moment ago, for an additional
early in this session of Congress. present programs will insure a continued authorization of up to $500 million for
Mr. President, I wish to point out accumulation of commodities in the hands use during the current fiscal year, with
of Commodity Credit Corporation. any remainder being authorized for use
that, as I recall nowhere in its testimony A program of sales for foreign currency in the next fiscal year.
did the Department of Agriculture ob-_ can benefit American agriculture only a of Public Law 480 is to use
ject to a 2-year extension. Its only limited length of time before markets begin The agricultural purpose commodities instead of dole
objection to a 2-year extension is to be oriented to this way of doing business.
found in the letters that I have made Customer nations start to consider foreign lars to expand international trade, en-
a. pert of the RECORD ; and while I)r. currency sales as a normal part of commer- courage economic development, pur-
Paarlberg, did not recommend a 2-year cial trade. We view with serious concern chase strategic materials, pay United
extension, 'his arguments for preventing evidence that some countries are adjusting States obligations abroad, promote col-
their dollar exchange so that very little of lective strength, foster foreign policy,
any lapse. of authbfity such as might it is used for the purchase of American-farm and relieve famine and needs at home
occur with a. 1-year extension are products. Competitor nations will not ac- and abroad.
very persuasive. cept a permanent Public Law 480 without
Mr. President, I also ask unanimous taking ' serious trade retaliatory action Title I provides for the sale of surplus
consent to have printed in the RECORD against United States agricultural exports. agricultural commodities for foreign cur-
in connection with my remarks a letter Farm Bureau also supports a program of rencies pursuant to agreements with
from the American Farm Bureau Fedor- bartering our agricultural surpluses for friendly nations, and the use of those
ation, dated March 14, 1958, in which essential materials. However, we feel that currencies for many purposes of the
the Federation comments on the peed- barter transactions must be in addition to United States. While the cost of the
normal-dollar sales. Under the provisions of
ing' measure. There 1, no objection S. 3420 barter transactions would displace program has often been charged to agri-
stated to the 2-year extension, but it dollar sales to a substantial degree. The culture, the foreign currencies are ac-
is suggested thatq,the amounts we have barter program should be a supplement to tually used principally by other agencies
provided are entirely too high. It is normal exports; it should not, displace dollar for other purposes.
suggested that the $11/z billion for the purchases. A barter program as visualized The, agencies which use these cur-
next fiscal year should be made $11/4 in S. 3420 would cause irreparable harm to rencies and the purposes to which they
billion, and thai; for fiscal year 1960, the United States foreign relations and United
second year, the amount should be made states foreign trade. The provision in its are put are shown in a table which I
present form will tend to nullify some of ask unanimous consent to have printed
x,750 million. In other words, the pro- the good in title I of Public Law 480. in the RECORD at this point as a part of
posal of the American Farm Bureau We know of your interest in this program my remarks. The table shows in detail
Federation would reduce the authori'La- and hope that you will assist us in keeping the various agencies and the amonuts
tion which is provided in the bill by at Public Law 480 on a sound basis. We urge which have been programed for use by
least a billion dollars. your support in amending S. 3420 so as to them through February 5, 1958.
There being no 'objection, the letter reflect the above principles. There being no objection, the table
was ordered to be printed in the RECORD, Sincerely yours,
JOHN C. LYNN, was ordered to be printed in the RECORD,
as follows:
AMERICAN FARM BUREAU FEDERATION,
Washington, D. C., March 14,1958.
Hon. ALLEN J. ELLENDER,
United States Senate,
Washington, D. C.
Authority
DEAR SENATOR ELLENDER: As you know the
'American Farm Bureau Federation took-
initiative in developing Public Law 480, the
Agricultural Trade Development Act. We Sec. 104:
(a) ___-_..._
have 'always considered this act as a tem
(b) _________
porary measure designed to Increase market-
(c)_____._._
sings of agricultural commodities abroad, to
(d) ..._.._._
assist in reducing the surpluses in the hands
(e) __.___.-
of Comthoditp Credit Corporation and. in
Legislative Director. as follows:
[In millions of dollars]
Currency use
Responsible agency
Amount
programed
through
Feb. 5,1958
Agricultural market development -------------
Department of Agriculture _____.______
43.2
2
0
Supplemental stockpile -----------------------
Office of Defense Mobilization ---------
International Cooperation Admints-
.
290.5
Common defense-----------------------------
tration and Defense Department.
Purchase of goods for other countries ----------
ICA__________________________________
42.9
61
5
Grants for economic development-------------
Loans to private enterprise------ ------------
ICA _ _-___ _ _ _ _ _ ___
Export-Import Bank of Washington--
.
5 44.7
644
Payment of United States obligations---_----_
Any agency---------------------------
.
359.5
1
(h)
Loans to foreign governments -----------------
International educational exchange ------------
ICA---____--------------------------
Department of State
,
V
21.2
3
3
---------
(i)
Translation of books and periodicals ----------
U. S. Information Agency-------------
.
14
5
----------
0)
American-sponsored schools and centers -------
State and USIA-----------------------
.
----------
---------
--------
-
2,531.3
Total----
---------------------------------------------
-- ---?- --------------
-
---------------------
-
contained in 8. 3420. While we support a
2-year extension of Public Law 480, we feel
that it is imperative that we emphasize the
fact that this is supposed to be a temporary
measure. In order to do this, we must show
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made out of surpluses to take care of use in relieving domestic distress.
needs which may occur in the future? Mr. REVERCOMB. For relieving dis-
Mr. REVERCOMB. No; I did not say tress?
that. I refer to the present needs. Mr. ELLENDER. That is correct.
Once a sale to a foreign country is made, That is as near as I can come to it, to
it must be carried out. What I am try- indicate that with respect to the prod-
ing to say to the Senator is that no such ucts we have on hand, certainly pref-
sale should be contracted for so long as erence is to be given to the use of those
there is any need in this country for the products at home. Under title I it is
particular foodstuffs at the time the sale permissive on the part of the secretary
is contemplated. of Agriculture to dispose of the surpluses
Mr. AIKEN, Mr. President, will the for foreign currencies, whereas it is
Senator yield?, mandatory that he use them to relieve
Mr. ELLENDER. I yield. distress at home. The fact is that the
Mr. AIKEN. Does not the Senator Secretary should, without any doubt, in
from Louisiana recall that section 416 my judgment, use commodities in sur-
of the Agricultural Act of 1949 gives the plus on hand for home consumption, if
people of this country preference in the there is need for it, rather than contract
distributionof surpluses? That section for their sale abroad.
is contained in the Agricultural Act of Mr. REVERCOMB: Mr. President,
1949, will the Senator yield further?
Mr. ELLENDER. That was with re- Mr. ELLENDER. I yield.
spect to goods which might otherwise Mr. REVERCOMB. I hope the Sen-
be wasted. ator from Louisiana is correct. Cer-
Mr. AIKEN. That section sets forth tainly his view is a sound and fair one.
the order in which Commodity Credit I raised the question because an inquiry
Corporation commodities shall be made had been made. It was not a firsthand
available. inquiry on my part. It was an inquiry
Mr. ELLENDER. But I do not know made about the distribution of certain
of anything in the law, as I have just foodstuffs in America, and I was advised
stated to-my good friend- by note that this could not be done;
Mr. REVERCOMB. I cannot find any that legal distribution could not be made
provision in the law, either one way or because under present law, title I of
the other. The point I am suggesting Public Law 480, the Agricultural Trade
to the able Senator is that it should be Extension Act, sales for foreign curren-
made quite clear that when there are cies take precedence over free distribu-
foodstuffs available, when there is a sur- tion. I do not believe the law means
plus owned by the Government, and that.
there is need-as we know there is today Mr. ELLENDER. No.
in certain areas-no sale to a foreign Mr. REVERCOMB. But when that
country should then be contracted. interpretation is placed upon the act, I
Mr. ELLENDER. I am quite sure that believe a clarification should be written
the Administrator would certainly have into the law, even into title I, to the
the good sense to keep the food for home effect that sales for foreign currencies
use if we had need for it, rather than should be secondary and subservient to
sending it abroad. I do not see the ne- distribution locally when food is needed
cessity of putting such a provision in the in this country.
law. Mr. WATKINS. Mr. President, will the
Mr. REVERCOMB. I can only refer Senator yield?
to the philosophy of the great Thomas Mr. EILE.NDER? I yield.
Jefferson on that subject, when he said, Mr. WATKINS. Does the distin-
'Let, us not rely on the good sense or guished Senator from Louisiana know of
feelings of people. 'Let us tie them down any case of commodities such as those
with laws." referred to having been sold when there
ivir. Ml dbvN1Je:F . 1 do not know of any
such case at this time.
Mr. REVERCOMB. Will the Senator
yield further?
Mr. ELLENDDER. I yield.
Mr. REVERCOMB. With respect to a
recent inquiry with respect to stored but-
ter, the question was addressed to the
Commodity Distribution Administration,
and it was also addressed to the Secretary
of Agriculture. I received a reply, indi-
rectly through the one who had made
the inquiry, that the distribution could
not be made because sale for foreign cur-
rency has precedence over free distribu-
tion under title I of Public Law 480. If
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icu arty wi h the section to which the such products-as I hope it has been do- available any form commodity or prod-
able Senator is referring at this time, ing in the past-a reservation must be uct thereof owned or controlled by it for
44-_ Ini
the question, I have in mind the situa- ginia to say that if the Department of of the Agricultural Act of 1949 Congress
t, 1 t
Lion. under Public Law 480, dealing par- Agriculture can make. bona fide sales of states that the Secretary shall make
-' -- ----- ------?-?? ...._.....?+ wy~a va.aaaa.aavu wadi -c1611. t,UUll-
Will the Senator yield for a question? I,hope the Senator will agree with me. tries for the sale of any of our surplus
%t_ -LT T L'A1r t'U T
CONGRESSIONAL RECORD. SENATE March 18
Mr. ELLENDER. Of title I?
M. REVERCOMB. Yes. As the Sen-
ator has stated, it deals with the subject
of foreign currencies, and taking foreign
'currencies in the sale of commodities
'abroad.
Is there anything in the act which
would permit the President to keep such
commodities at home and not sell them
to foreign countries? I have in mind the
,situation which exists today in certain
localities throughout the country, where
there is need for surplus food. I am
advised that the view is taken in the
-Department of Agriculture that the sale
for foreign currencies under title I of
Public Law 480 takes precedence over
free distribution, Does the Senator feel
.that that is the expression and intent
of section 101, or any other section of
'the law? - Does the Senator feel that sale
abroad takes precedence over free dis-
tribution in this country, when free dis-
tribution is needed by many of the peo-
pie dwelling here?
Mr. ELLENDER. I may say to my
good friend from West Virginia that I
do not believe there is anything in the
act,which gives precedence to our own
uses with respect to surplus commodities
until title I.
As the Senator knows, there are two
other titles in the act which deal spe-
'-Cifically with gifts to, be made abroad,
as well as gifts and donations to be made
at home.., I am certain that the admin-
istration of the_ act should certainly pro-
'tide for home folks first.
To begin with, the surpluses must be
available for contracting, and there must
be an abundance, as I interpret the law.
I AO not know of anything in the act
or in the administration of it which
would warrant such a conclusion as that
Indicated by my distinguished friend,
from. Wes Virginia.
Mr. REVERCOMB. Mr. President,
Will the Senator further yield?
Mr, ELLENDER., I yield.
Mr. REVERCOMB, I bring this sub-
"ftuse; Zpdh -Inquiry made by me of the
Department of Agriculture, I was In-
formed that sales under this law to other
an of
e
omm
te
i
A
._.._...
vas
v
i
e on
gr
tribution, and that for .that reason cer- ture and Forestry, and who is in charge
tain surplus foodstuffs now in the hands of the pending bill, that that point be
of the Government will be made the . made crystal clear in the act itself, so
subject of sale instead of free distribu- that there can be no question of inter-
Pion where they may be needed by our pretation. The law itself should point
own people. out what shall be done. If there is any
I make this statement so that the able need for foodstuffs here, our people
.senator may advise the Senate upon that should have them before any sales of
subject. such foodstuffs are made elsewhere.
Furthermore, if such a provision Is Mr. ELLENDER. Our counsel has
1 11 not clearly in the law, I advocate at pointed out a portion of the act which
this time that it be made clear that in may to some extent cover the situation
any instance in which foodstuffs of any to which the Senator from West Vir-
kind are needed for free distribution to ginia is referring. Under title I the
 1958
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CONGRESSIONAL RECORD -SENATE
4117
there is any question about it, whether a tions, preference is given, of course, to the time in which the agreements can
case has occurred or not, if anyone han- United States citizens, and it is fixed by be made.
dling the subject has any question in his categories. Domestic relief is provided Mr. JAVITS. I think that is very de-
mind, I suggest to the able chairman of for in category 3 and foreign relief is sirable flexibility. I compliment the
the Committee on. Agriculture that it provided for in category 4; but category chairman upon that feature of the bill.
ought to be made quite clear, so that that 4 provides only for donation of food corn- Mr. HUMPHREY. Mr. President, will
situation cannot arise in. the future. ?modities "in excess of anticipated dis- the Senator yield?
Mr. ELLENDER. I ask unanimous position under" categories 1, 2, and 3. Mr. ELLENDER. I yield.
consent to have incorporated in the REc- Mr. REVERCOMB. Is that a matter Mr. HUMPHREY. I was very much
oRb,'all of section 416 of the act, which of sales preference or. distribution free? interested in the statement of the Sena-
was referred to by the Senator. Mr. ELLENDER. This is in the case tor from West Virginia. I observe he
There being no objection, section 416 of donations. The Senator is talking has left the floor. I think the language
was ordered to be printed in the RECORD, about gifts and donations. which has just been discussed must be
as follows: Mr. REVERCOMB. I would say that clarified if there is any doubt about it -
SEC. 416. In order to prevent the waste there should be donations and gifts be- at all, I have no doubt in my mind.
of commodities acquired through price-sup- fore there is a sale for foreign currency. Mr. ELLENDER. I have no doubt,
port operations by the Commodity Credit Mr. ELLENDER. I am sure he Sec- either.
Corporation before they can be disposed of retary would so administer the act, and Mr. HUMPHREY. It is rather shock-
3n normal domestic channels without ,im- not the other way. ing to me, I say most respectfully to the
palrment of the price-support program or
sold abroad at competitive world prices, the Mr. REVERCOMB. I should hope chairman, if anyone in the Department
Commodity Credit Corporation is authorized, not. of Agriculture has indicated by insinua-
on such terms and under such regulations Mr. ELLENDER. Of course not. tion, by direct statement, or by whatever
as the Secretary may deem in the public Mr. REVERCOMB. But the question other means the indication may have
interest: (1) upon application, to make has been raised. If there is any doubt come, that the food is not available for
such commodities available to any Federal about it we ought to make the language domestic distribution.
agency for use in making payment for com- in the act so clear that there cannot be There are the school lunch program
moditles
bproduced
or ex exchangc@a_ ge the such United commodities ties
2) to to barter arte any question about it. That ? question and the surplus disposal program, the
(
for strategic or other materials as authorized has arisen in my mind, based upon an latter a major program for the needy,
by law; (3) in the case of food commodities inquiry which was made of the Depart-. Title III of Public Law 480 is just as con-
to donate such commodities to the Bureau nlent of Agriculture. trolling as title I,
of Indian Affairs.and to such State, Federal, Mr. ELLENDER. I do not believe the Section 407 of the act is just as con-
or private 'agency or agencies as may be des- Senator from West Virginia need fear trolling as section 410. If there is no
ignated by the proper State or Federal au- that the Secretary of Agriculture will doubt at all, and if there are any needy
thority and approved by the Secretary, for dispose of commodities which can be people in the United States, all the
use in the United States in nonprofit school-
;,lunch programs, in, used at home. President has to do is to declare that
the assistance of needy
persons,; and in caritable institutions, in- Mr. JAVITS. Mr. President, will the there are some, and the language is so
eluding' hospitals, to the extent that needy Senator yield? drawn that even Mortimer Snerd 'can
persons are served; and (4) to donate any Mr. ELLENDER. I yield, understand it. It reads:
such food commodities in excess of.arLtici- Mr. JAVITS. I note that the date, Notwithstanding the foregoing, the cor-
pated disposition under (1), (2), and (3) under section 3, has been extended from poration, on such terms and conditions as
above' fo nonprofit voluntary agencies reg- .June 30, 1958, to June 30, 1960. It is my the Secretary may deem in the public ro-
istered-with the Committee on Voluntary conviction and that of many other Sen- terest, shall make available any farm com-
Foreign Aid of the Foreign Operations Ad- ~ modity or product either owned or controlled
ministration or Qther appropriate department ators that perhaps one of the most pow- by it for use in relieving distress (1) in any
or agency of the Federal Government and erful weapons in the cold war is Public area in the United States declared by the
intergovernmental organizations for use in Law 480, because thereby-and this has President to be an acute distress area be-
the assistance of needy persons outside the been discussed many times-we are able cause of unemployment or other economic
United States.' In the case of (3) and (4) to help a people, like the people of India, cause if the President finds that such use
above the Secretary shall obtain such assur- bring about industrialization without will not displace or interefere with normal
ante as he deems necessary that the recipi- collectivization, as is the case in Com- marketing of agricultural commodities.
ents thereof will not diminsh their normal munist China, by feeding themselves
expenditures for food by reason of such do- Mr. ELLENDER. I pointed that out.
nation. In order to facilitate the appropriate while engaging in some effort to indus- Mr. HUMPHREY. That is what the
'disposal of such pmmodities, the Secretary trialize in order to meet modern con- Senator said. Then there is section
may from time to time estimate and an- ditions. 416, to which the Senator has referred.
nouncg the quantity of such commodities Does the chairman of the Committee I point out that if there is any danger
which he anticipates will become available on Agriculture and Forestry feel that the of spoilage, then, indeed, there must be
for distribution under (3) and (4) above. time allowed is adequate for long-terna use of the materials. More than that,
the Commodity Credit Corporation may pay, agreements with the recipients of this there ought to be a warm heart, some-
with respect to commodities disposed of un-
der this section, reprocessing, packag- thing which cannot be written into the
ing, transporting, handling, and other their plans? India, for example, has a law. There ought to be a little plain,
charges accruing up to the time of their 5-year plan. We are helping India with good sense, which cannot be written
delivery to a Federal agency or to the desig- money and also with some aid under into the law. If we add good sense and
,nated State or private agency, in the case Public Law 480. Has the committee a warm heart to the specific details of
of commodities made available for use with- .give consideration to the question of the law, I am certain the Department
in the United States, or their delivery free sufficient time being allowed for long- of Agriculture will find no reason ever
alongside ship or free on board export carrier
at point of export, in the case of term contracts so as really to make this to tell any Senator that surplus foods
commodi- kind of aid the decisive weapon in the
ties made available for use outside the are not available for the needy and dis-
United States. In addition, in the case of cold war it is capable of being? tressed people of the United States. I
food commodities disposed of under this Mr. ELLNDER. As I understand, am shocked to hear any Senator say he
+ section, the Commodity Credit Corporation this does not limit the duration of any heard such a statement from the De-
may pay the cost of processing such com- agreement that may be made. It is partment. I do not deny that it came
modities into a form suitable for home or merely a limit on the time within which from the Department; I am very certain
institutional use, such processing to be ae- an agreement may be made. that it came from the Department; eomplished through private trade facilities but
to the; greatest extent possible. For the pur- Mr. JAVITS. In other words, de- that is all the more shocking.
pose of this section the terms "State" and livery can be made even for more than 5 Mr. AIKEN. Mr. President, will the
United States" include .the District of Co- years, to the extent of the authoriza- Senator yield?
lumbia and any Territory or possession of tion, provided the arrangements be Mr. ELLENDER. I yield.
the United States. 3 made beeQre,,Juue 30, 1960. Mr. AIKEN. I remember making an
Mr, ELLENI)ER._Mr. President, in Mr. ELLENDER. Yes. In other inquiry of the Department as to why
this section it will be noted that in done- words, the 2-year provision simply limits some surplus foods were not made avail-
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CONGRESSIONAL RECORD- SENATE March 18
able for relief purposes and for use by and the agencies responsible for their ex-
the States to help needy people. penditures, are shown in the table.
About a week ago I received a letter The approximate quantities of agri-
from the Secretary, in which he said that cultural commodities covered by agree-
1958
,
the supply of butter on hand at this time ments signed through February 5,
was not adequate to guarantee that the which have been or will be used In lieu of
school-lunch program could be supplied dollars for the various uses authorized
through another year. He said he felt by title I, are as follows:
it would be -unwise to offer it for relief COMMODITY AND QUANTITY
purposes until it was certain that there Wheat and flour, 549,366,000 bushels.
Would be enough to supply the school- Feed grains, 132,963,000 bushels.
lunch program and other programs Rice. 25,507,000 hundredweight.
which are virtually required by law. Cotton, 2,982,600 bales.
Tobacco, 174,424,000 pounds.
However, I would expect the Govern- Dairy products, 162,210,000 pounds.
ment to become the owner of a consider- Fats and oils, 2,246,072,000 pounds.
able quantity of butter within the next Poultly, 3 million pounds.
2 weeks, and I think we may expect in Dry edible beans, 44,000 hundredweight.
the immediate future that butter will Fruits and vegetables, 196,826,000 pounds.
be made available for relief purposes and Meat, 150,962,000 pounds.
for the ?use ofthe needy. I hope that will Hay and pasture seeds, 9,000 hundred-
be done; I believe it will be done; it ought weight.
to be'done. As I indicated a while ago, title II of
Mr." ELLENDER. Mr. President, the the bill provides for famine or other urg-
before ent or extraordinary relief to friendly
hich I offered a while ago
tabl
,
e w
I was interrupted, shows that through peoples. Authorizations under this title
February 5, 1958, the total amount of the through December 31, 1957, are shown
foreign currencies program has been in a table which I- ask unanimous con-
$2,531 million.. Of this amount, only sent to have printed in the RECORD at
$43..2 million has been planned for use this, point in my remarks.
by the Department of, Agriculture for There being no objectipil the table
~mar,,ket development. The remainder of was ordered to be printed in the RECORD,
the planned uses for the $2,531,300,000, as follows.
title L1, Public Law 480, duly it 1004, to uec. 01, 101/7
[In thousands of dollars]
Bread
Coarse
Fats
Dry
Milk and
Raw
Area and country
Total
grains
grains
and
oils
beans
pr dmilk ucts
Rice
cotton
.
Europe (total) .................. ........
141, 855
61,777
22, 750
14,925
1,597
33,666
811
6,429
Austria-----------------------------
----------------
Czechoslovakia
14,278
1,995
---------
---------
14,278
1,995
--------
--------
--------
--------
-----------
-----------
--------
--------
--------
----- ---
--------
Germany, Federal Republic -----------
3,000
236
2
686
380
911
81
--------
367
171
61
629
Germany, Soviet occupied_____________
.
Hungary
-------- -
------
758
13,713
36
4,468
1,920
2,095
________
442
___________
4,293
495
_.-_---_
--------
_
--...
--------
Italy----------------------------------
11,459
3,491
10,306
1,155
28,905
----- 7--
3,700
2
100
Yugoslavia ............................
2,100
46,995
---.----
45,378
--------
--------
--------
1,432
--------
____-__-
-----------
101
--------
84
,
________
Africa (total)........?-
23,840
22,636
1,2(14 1,204
Libya ---
- ---------------------
--
-
-
9,335
9,335
Morocco ---
--------
-------- ---------
-
?
Tunisia - - ? --------------------------
7,000
7,505
7,000
6,301
-
-----
----
- l,zo4
_
Nor East and South Asia (totaI)......__
78,586
41,866
____ _
5,289
17,205
4,474
Afghanistan---------------- ----------
11,153
4
665
11,153
017
1
---
--------
--------
--------
-----
. 1,165
2,483
_______________________
___________
India
Iran-------?---------------------------
,
2,748
,
2, 748
-
-- ? -
-----------
4
Fakista
-----------------
-
--
210
47, 630
145
22, 073
------
49
--------
--------
253
14, 681
4, 474
n--
--?---
-
Turkey---------------------?---------
12,180
4,730
,42
--------
3,867
41
--------
Far East and Pacific (total) .............
East
28,807
________
________
________
8,300
5,069
78
Cambodia ............................
-
Japan
--------------------------
2,343
36,381
---------
28,081
--------
--------
--------
--------
--------
--------
-----------
8,300
21343
--------
---- ---
------
78
- ------
-----------------
Korea ----------
78
839
---------
--------
--------
--------
--------
-----
--
-----------
--------
------
839
--------
Laos- - ------------------------
------------------
islands
ukyu
Ryy -- --
1,887
---------
----
--------
-
1,887
--------
i
V e
tnam --------
---- ------
726
726
-`
--------
--------
LatinAmerica (total) ....................
Latin
15,690
13, 888
1,491
1,393
1, 281
4, 765
2,528
Bolivia ------------------------ ?------
,.,
17,182
273
10,102
22
22
-----
25
5
1,137
106
.....
46
391
44
3,024
30
2.528
___
Bgitish Honduras___________________
212
37
68
51
56
Costa Rica ------- ?
Guatemala- -. _ _ ... _------------- -----
3, ~
1
1
------.-45
1, 573-
--------
----
Honduras-- -
-----------?------------
211
-
9
70
__--...___.
82
--------
-
Peru--------------------------------
Mexico --r
216
16,141
18
79
--
-----------
801
801
--...---
--------
--------
--------
Christmas holidays ....:.................
16,688
___
05
4,206
3,198
_-__-__.
Total commodity programs .......-..
344, 059
99
-
-
95
-
53,946
31,048
19, 509
freight: T
Ocean
Titled shipments ......................
10,390
---
---
-------
--------
--------
.
Title III foreign donations ............
36, 211
---
-------
--------
--------
Grand total-. ----
390,660
-------
--------
-----------
--------
I --------
2`IncludinG transportation costs financed under Public Law 480 only.
prior-to fiscal year 1057 was financed under-the Mutual Security Act.
Ocean freight paid by the United States
OPERATIONS UNDER TITLE III
Mr. ELLENDER. I now come to title
III. Title III provides, first, for dona-
tions for domestic use and for distribu-
tion abroad by nonprofit voluntary agen-
cies and intergovernmental organiza-
tions, and, second, for Commodity Credit
Corporation barter activities.
During the last 6 months of 1957 do-
mestic donations under title III and sec-
tion 32 of Public Law 320, 74th Congress,
totaled approximately 321 million
poi nds, of which about 240 million
pounds, valued at $33 million, were dis-
tributed under title III. Recipients in-
cluded more than 13.6 million school-
children, 1.4 million persons in charitable
institutions, and about 2.6 million needy
persons in family units.
Commodities approved for foreign do-
nation during the last 6 months of 1957
totaled 1,174.3 million pounds, valued at
$181.4 million, on the basis of Commod-
ity Credit Corporation costs, which are
shown in a table which I ask unanimous
consent to have printed in the RECORD
at this point.
There being no objection, the table was
ordered to be printed in the RECORD, as
follows:
(In millions]
Estimated
CCC cost
Cheese------------------------
114.7
$52.2
Cornmeal _____________________
187.7
13.9
35.9
1.5
Whtat flour____- __-----------
402.8
31.4
nonfat dry______________
Milk
341.4
70.0
,
Rice --------------------------
68.2
- 11.2
Wheat------------------------
23.6
1.2
1,174.3
181.4
Mr. ELLENDER. Mr. President, bar-
ter contracts entered into in the last 6
months of 1957 totaled $3 million, as
compared with $870.1 million during the
entire period covered by title III, and
$107.6 million for the period 1949-50
through 1953-54 under barter authority
prior to the enactment of title III. I
ask unanimous consent that the table
containing these figures and other mat-
ters be printed in the RECORD at this
point.
There being no objection, the table
was ordered to be printed in the RECORD,
as follows:
Summary of barter contracts entered into in
specified periods x
(In millions of dollars)
1949-50
1954-55
July-
Materials
through
through
December
1953-54
1956-57
1957
Strategic:
Minimum stockpile--.---
71.8
2 138.7
----------
Long-term stockpile -----
________
2204.2
_______ __
Supplemental stockpile 2_
_
2368.8
3.0
Total strategic---.----
71.8
771.7
3.0
Supply:
ICA-------?------------
- 28.4
31.0
----?----
AEC ----------?---------
--------
13.3
---------
Defense----------------- _
7.4
54. 1
..__------
TotalsupplE---------
35.8
98.4
__________
Grand total ----------
107.6
870.1
3.0
1 Years beginning July. December 1957 preliminary.
2 Adjustments have been made to reflect total sales to
minimum stockpile as follows: $119.2 million long-term
and $8.9 million supplemental.
s Materials transferred or to be transferred to supple-
mental stockpile with reimbursementas provided by
see, 206 of the Agricultural Act of 1950.
4 Materials, goods, and equipment for other Govern-
ment agencies.
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CONGRESSIONAL RECORD -SENATE
Mr. ET-LENDER. Public Law 480 was
enacted in 1954. Contracts under title
I were authorized at that time to be
entered into up to June 30, 1957. Pro-
grams of assistance under title II were
authorized to be undertaken"up to the
same date, June 30, 1957. Title III au-
thority was permanent. On August 13,
1957, titles I and II were renewed and
extended until Tune 30, 1958. The pro-
gram has been a highly successful one
and its extension is generally, favored.
Extensive hearings were conducted on
operations under the law last June and
,July and many of the provisions in. the
bill grew out of those hearings. The
committee conducted 2 days of hearings
this year, and no witnesses appeared in
opposition to its extension.
The hearings to which I referred as
'having been held last year were con-
ducted under the direction of my able
friend, the junior Senator from Minne-
sota [Mr. HUMPHREY] , who filed an ex-
cellent report with the committee. He
outlined how the program had worked.
The report has been of great assistance
to the committee in 'determining
whether. or not there should be added
to the bill the amendments which the
Committee finally decided to add.
The action of the committee in re-
porting the bill was unanimous, except
as to the amendments relating to barter
and, as I recall,. on the amount to be
provided for each year. Some Senators
reserved the right, to vote for such
amendments as might be offered which
Would eliminate or modify the barter
provision, and also such amendments as
might be offered in order to reduce the
amounts finally agreed to by the com-
mittee a$ a whole.
Mr. HUMPHREY. Mr. President, will
the Senator yield?
Mr. EI,LEND11ff2,. I yield.
Mr. HUMPHREY. The amount in-
eluded in the barter provision should be
interpreted as the ceiling.
Mr. ELLENDER. Yes.
Mr. HUMPHREY. It ,is the maximum
amount. There was no maximum pro-
vided in the previous authorization.
Mr. ELLENDER. When I referred to
amounts, I did not have in mind the
amounts in the barter provision. What
I had in mind were the amounts fixed
under title I for contracting purposes,
for the, 2 years of extension which have
been provided.
Mr. HUMPHREY. Yes.
Mr, ELLNDER. The ' Commodity
Credit Corporation investment in agri-
cultural commodities of $6 billion at, the
time of enactment of Public Law 480
rose to $8.2 billion on June 30, 1956, and
,;is now $6.8 billion. United States agri-
cultural production is expected to con-
tinue at a high level and the dollar po-
sition of many countries has worsened.
All of these factors require theexten-
sion of titles I and II for 2 years to June
30, 1960, as provided by the bill. In
providing for a 2-year extension and ade-
quate funds, the committee hopes to
avoid. a ,cessation of activities such as
occurred last year.
The original authorization for title I
was $700 million. 'T'his was increased
to $1.5 billion on August 12, 1955, then
to $3 billion on August 3; 1956, and fin-
ally to $4 billion on August 13, 1957-
which, by the way, is the amount under
present law. The development of new
agreements virtually ceased in January
1957, when the authorization was almost
exhausted, and opportunities for new
agreements were undoubtedly lost at that
time. The present authorization is ex-
hausted, or nearly so, only about $340
million having been still available on
February 5. The Department expects
to program part of the new authoriza-
tion before June 30, if funds are made
available soon enough.
.The bill would put the authorization
on a fiscal year basis, providing author-
ization of $1.5 billion for each fiscal year,
any unused authorization to be carried
forward to succeeding fiscal years. For
the remainder of the fiscal year 1958
and for the fiscal years 1959 and 1960,
this would mean a total of $3.5 billion.
This is based on Commodity Credit Cor-
poration costs. On the basis of the ex-
port market value of the commodities
and other costs, this would be equivalent
to probably somewhat less than $2.5 bil-
lion, since $3.7 billion used as of Febru-
ary 5 represented about $2.5 billion in
market value.
This bill also provides two additional
uses for foreign currencies under title 1.
Section 104 (h), which now provides
for educational exchanges under the Ful-
bright amendment to the Surplus Prop-
erty Act, would be extended to provide
for exchanges under title II of the Smith-
Mundt Act. This would permit use of
these funds for exchanges of persons not
affiliated with educational institutions.
A new section 104 (k) provides for as-
sistance to established American-spon-
sored educational institutions abroad,
workshops in American subjects, and
chairs in American studies.
These additional uses should, do much
to promote a better understanding and
goodwill between our country and foreign
lands.
Section 5 of the bill makes several
changes in the barter authority provided
by section 303 of Public Law 480. From
the enactment of Public Law 480 until
June 30, 1957, barter contracts totaling
$870.1 million were entered into, for an
average during each 6 months of $145
million. Barter contracts totaling $125.1
million- were entered into during the first
6' months of 1957. In May 1957, major
program revisions were made for the as-
serted purpose of assuring that commodi-
ties exported under barter arrangements
result in a net gain in the total volume of
agricultural exports. As a result of these
program changes, barter has practically
been stopped as a means of disposing of
commodities-dropping to $3 million in
the last 6 months of 1957.
Mr. President, a substantial decrease
In barter occurred after the Department
revised its program. In the 6 months
before these provisions were put into
effect, barter contracts totaled $125.1
million. The drop to- $3 million, after
the new regulations became effective is
he principal reason why the committee
considered the amendments which were'
submitted by the distinguished Senator
from Minnesota [Mr. HUMPHREY].
Mr. YOUNG. Mr. President, will the
Senator from Louisiana yield to me?
The PRESIDING OFFICER (Mr.
SCOTT in the chair). Does the Senator
from Louisiana yield to the Senator from
North Dakota?
Mr. ELLENDER. I yield for a ques-
tion.
Mr. YOUNG. Is it not true that only
under the barter agreements has the De-
partment of Agriculture made a profit?
In other words, when we accept the cur-
rencies of other countries for our surplus
food-particularly some of them-there
is a great loss. But under the barter
arrangements we have actually made a
profit.
Mr. ELLENDER. Yes; the Senator
from North Dakota is correct. In fact,
the distinguished Senator from Minne-
sota [Mr. HUMPHREY] pointed out in his
report, I believe, as well as at the hear-
ings, that the Government made quite a
good deal of money on the various mate-
rials it has taken in exchange for our
commodities. I do not know the exact
amount. On that point, I yield to the
Senator from Minnesota.
Mr. HUMPHREY. Mr. President, the
latest figures-and I believe they are
agreed to by the Department of Agricul-
ture-show that even at the present de-
pressed world prices for raw materials-
and we know that at this time the prices
are down-there is a net profit of $55
million to the Government of the United
States as a result of barter trades, plus
the saving as a result of no longer hav-
ing to store the goods which have been
bartered. 'The goods bartered formerly
cost the American taxpayers $106 mil-
lion a year in storage charges. Every
year, that amount was required for stor-
age charges, alone. On the other hand,
the storage charges on the materials we
have obtained through the barter agree-
ments finally concluded amount to but
$3,300,000 a year.
So every year there has been a saving
of $102,700,000 in storage charges, plus a
net profit of $55 million on the goods
acquired.
Mr. YOUNG. Mr. President, will the
Senator from Louisiana yield further to
me?
Mr. ELLENDER. I yield.
Mr. YOUNG. Is it not also true that
many foreign countries are so hard up
that the only things they can usually
use, in trading for our surplus foods; are
the strategic materials of which we are
in short supply?
Mr. ELLENDER. In some cases that
may be true.
Mr. YOUNG. They cannot use their
own currencies in payment for our sur-
plus materials, because in many cases
their own currencies have little value.
Mr. ELLENDER. But the Senator
from North Dakota knows that under
the agreements under title I, the Sec-
retary is authorized to accept the cur-
rencies of the host countries.
Mr. YOUNG. Yes.
Mr. HUMPHREY. For sales.
Mr. EIZ,ENDER. Yes. As was pointed
out by the Senator from"Minnesota [Mr.
HUMPHREY]-and, in fact, the entire
committee agreed-we should make
every effort to.obtain something of value
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CONGRESSIONAL RECORD -SENATE March 48
for these commodities, rather than con-
tinue to accept the currencies of the
other countries, which may or may not
be usefylto us.
Mr. YOUNG. Mr. President, will the
Senator from Louisiana yield further to
me?
Mr. ELLENDER. I yield.
Mr. YOUNG. Would the Senator
from Louisiana mind if I read into the
REZoRD a statement of the position of
the American Farm Bureau Federation
in regard to barter; or has it already
been placed in the RECORD?
Mr. HUMPHREY. No.
Mr. ELLENDER. I yield for that
purpose.
Mr. YOUNG. I read from page 42 of
the hearings:
BARTER
The Farm Bureau also wishes to take this
opportunity to renew its support for the
principle of the barter program. Farm Bu-
reau policies state:
"Our e ential raw materials stockpiling
program should be continued with proper
safeguards. Surplus farm products should
be traded under Public Law 480 and other-
wise, for. essential materials that may be
stored indefinitely without deterioration.
Security stockpiles should be isolated from
normal domestic requirements and used only
in,case of national emergency."
We feel that it is possible to conduct an
effective barter program without displacing
dollar sales.
I than the Senator from Louisiana.
Mr. HUMPHREY. Mr. President, will
the Senatorrfrom Louisiana yield further
at this point?
Mr. ELLENDER. Yes;, I yield.
Mr. HUMPHREY. I know the barter
section of-the,bill is going to be a sub-
ject of controversy. I have already
been, visited by representatives of the
executive branch of the Government. I
extended to them the hand of coopera-
tion, asking if they could suggest any
language which they thought would be
less objectionable than that contained in
the bill before the Senate. The answer
was "None," indicating a total lack of
any cooperation. I may as well serve
warning I am prepared to do battle 'on
this matter.
Furthermore, what the Department is
unable to prove-the loss of cash sales
in normal markets or displacing of other
sales from friendly countries. The De-
partment is unable to show that by bar-
tering we have in any way upset Amer-
ican markets.
No doubt the Department of State will
say, we a're injuring somebody else some-
where down the line. I do not desire to
do that. They have no evidence to indi-
cate that would be the result, but they
will make the assertion. Furthermore,
barter does permit the accumulation of
dollars by some countries, so that with,
the dollars they can purchase goods in
the United States.
I wish to say to the Senator from North
Dakota the one commodity the State De-
partmelrt and the Department of Agri-
culture are complaining about in con-
nection with barter is wheat. The sales
of all other commodities have been for
soft currencies. Sometime ago, for ex-
ample, the Department of State was
complaining about the sale of rice. Rice
.was sold for soft currency. Then it was
complaining about the sale of cotton.
Cotton was sold for soft currency. But
there is one commodity to which the De-
partment continually refers in its criti-
cism, and that is wheat; but the Depart-
ments' argument in respect to wheat is
just as fallacious as it was with respect
to the other commoditieys.
Mr. YOUNG. There is probably a
good reason for that. Two, and possi-
bly three, internaitonal traders of wheat
object to this means of doing business
because they can make more money un-
der other provisions of the bill. I think
that is absolutely true. The Department
went along with the barter program.
The farm organizations were for it. It
was a better deal for the United States
and the countries involved. All of a
sudden the Department dropped it be-
cause of the opposition of some interna-
tional traders.
Mr. ETLENDER. Mr. President, as jI
pointed out, the record shows that the
barter program was rather successful
and that we were able to dispose of more
than $800 million of goods for strategic
materials.
The amendments proposed by the
Senator from Minnesota [Mr.
HUMPHREY] have broadened the base on
which we can barter. He has surround-
ed these programs with new objectives.
For instance, section 303 of Public Law
480, as it would be amended, provides
that "the Secretary is directed, to the
maximum extent practicable within the
limit permitted by this section, to barter
or exchange agricultural commodities
owned _by the Commodity Credit Cor-
poration for (a) materials of which the
United States does not domestically pro-
duce its requirements and which entail
less risk of loss through deterioration or
substantially less storage charges"-as
was pointed out a while ago.
Subsection (b) of section 303 con-
tains these words:
Materials, goods, or equipment required in
connection with foreign economic and mils-,
tary aid and assistance programs.
It strikes me if there is a will to ad-
minister the barter provision as intended
by the law a way can be found to do it
successfully.
Mr. NEUBERGER. Mr. President,
will the Senator yield?
Mr. ELLENDER. I yield to the Sen-
ator from Oregon.
Mr. NEUBERGER. On behalf of
many of our wheatgrowers, as well as
people who own fruit orchards, I want
to thank the chairman of the commit-
tee for bringing' before the Senate the
proposed extension of Public Law 480.
I know no Member of the Senate who
is more qualified to sponsor a bill which
will funnel our agricultural surpluses
overseas, because he himself has had
such intimate contact, in his wide
travels, with countries in the rest of the
world.
Mr. President, the people of Oregon
have come to know about Public Law
480 favorably through the participation
of the Oregon, wheat growers in the
programs authorized and implemented
by what is known as the Agricultural
Trade Development and Assistance Act,
S. 3420. The bill to extend this act, is
also of interest to many Oregon growers
of various orchard fruits.
I discussed the Public Law 480 pro-
gram, at some length, on the floor of
the Senate in August of 1957.. I par-
ticularly emphasized the tremendous
beneficial impact this program has had
on - good relations between the United
States and the countries which have
purchased these surplus foods with their
own currencies..
Mr. President, Oregon has always de-
pended greatly on export markets for
the sale of a large share of its produc-
tion of wheat and fruits. The Public
.Law 480 program has been helpful in
keeping open many of these avenues of
consumption and in developing some
new ones. Ths peoples of Japan, South
Korea, India, and Pakistan favor the
soft wheats of the Northwest in their
diet. The Oregon Wheat League, Mr.
President, has spent many thousands of
dollars of its own money exploring and
developing the Asiatic markets.
When the ships move out of west
coast ports, laden with wheat and fruits,
and bound for countries participating
in the Public Law 480 program, the
benefits spread far beyond the producers
of these commodities. Work is created
for the men in the warehouses, mills,
processing plants, and elevators. The
transportation industry is greatly stim-
ulated. Freight cars, trucks, and barges
move wheat forward to ports where it
is reloaded for its overseas destination.
Crews are needed to man the ships, and
the service industries who must do re-
pair and maintenance duties share in
the increased activity.
Thinking in these terms, it is natural
that Oregon, now unhappily faced with
the second highest unemployment rate
in the Nation, should look with keen
anticipation on the enactment of S.
3420 and extension of the Agriculture
Trade Development and Assistance Act
for another period of 2 years. In fact,
some of. our Oregon people have advo-
cated the extension of the act for a
5-year period.
There is one question that we hope
may be resolved in the near future that
is tied inextricably to the operation of
the Public Law 480 program. I have al-
ready mentioned the fact that people of
the Orient, in about 90 percent of their
purchases, prefer the soft white wheat
which is the principal crop of the wheat-
growers of the Northwest., This makes
excellent cakes, cookies, scones and
crackers. However, for the past 5 or 6
months, the policy of the Department of
Agriculture has been to restrict the
movement of the soft wheat, and instead
to channel the hard red wheat to the
markets of the Orient-much to the dis-
like of the ultimate consumers, whose
tastes and dietary habits are accustomed
to a large percentage of soft wheat. Our
wheat people of the Northwest feel this
Is a policy that may jeopardize an ex-
panding market which is being developed
through the investment of a tremendous
amount of American capital. It is un-
fair to the Pacific Northwest.
Officials of the Oregon and Washing-
ton Wheat Leagues have had long con-
ferences with officials of the Commodity
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1958 CONGRESSIONAL RECORD SENATE
Stabilization Service just recently. to be sold to these countries under Public
Northwest wheatgrowers are hopeful Law 480; and be it further
that the Department of Agriculture will Resolved, That we also enlist the aid of
see the wisdom of programing, via ]?Lib- our Oregon Senators and Congressmen in
Washington, D. C., in obtaining this change
lie Law 480 channels, an additional 15
million bushels of soft wheat into the
markets of Korea, Pakistan, and India
during the months between now and
July 1, 1958. The impact of this prob-
lem has now gone beyond the confines
of Wheat League membership. Labor
has .given official cognizance to it and
recognizes in terms of the overall effect
on the Northwest's economy, the im-
portance of a favorable policy decision
channeling Public Law 480 surpluses to
Mr.. President, I ask unanimous con-
sent to have ,included, as a part of my
remarks, the pertinent letter and resolu-
tipn from the Multnomah County Labor
Council, AFL-CIO, which is addressed
to this problem. I also ask unanimous
consent to include in the RECORD, three
news releases issued by the Oregon
Wheat Growers League which illuminate
the importance of the Public Law 480
program.
There being no objection, the letter,
resolution, and news releases were or-
dered to be printed in the RECORD, as
follows:
MULTNOMAH COUNTY
LABOR COUNCIL, AFL-CIO,
j Portland, Oreg., March 12, 1058.
Hon. RICHARD L. NEUBERGER,
United States Senator,
Senate Office Building,
Washington, D. C.
.DEAR SENATOR NEUBERGER: Enclosed here-
with is a copy of a resolution, which was
unanimously adopted by the Multnomah
County Labor Council, AFL-CIO, at its last
regular meeting held March 10, 1958.
Certainly, as one of the large grain ex-
port ports on the west coast, any policies
of the Department of Agriculture regarding
the control of northwest white wheat is a
definite factor in employment In this area.
We feel that because of the tremendous
surplus of this same northwest white wheat
now stored in this area, that S relaxat'ion of
the provision of Public Law No. 480 would
greatly aid in the employment of everyone
within the maritime industr? of Portland
and vicinity.
Sincerely,
of policy.
p
Res ectfully submitted.
tion chief of this key Japanese ministry.
Mrs. Yamamoto, a graduate of the Tokyo
Women's Christian University, is also a grad-
uate of Washington State College in the home
economics division.
Project D-as this program is' known to
the United States Department of Agricul-
MULTNOMAII COUNTY LABOR COUNCIL, `ture's Foreign Agricultural Service-started
AFL-CIO. at the prefectural, or state, level.
EDWARD J. WHELAN, Secretary. Each prefecture sent a home economist,
f d lit to Toll o
ecia s
s
i
h
OREGON WHEAT GROWERS LEAGUE,
Pendleton, Oreg.
PENDLETON, OREG., March 4, 1958 White
wheat from the Pacific Northwest may soon
sell again under Public Law 480, reported
Jack Smith, president of the Oregon Wheat
Growers League, on his return today from
Washington, D. C.
Smith and Dick Baum, OWGL executive
vice president, presented written and vocal
presentations to Government agricultural
officials and Members of Congress on behalf
of white-wheat producers and exporters.
Continuation of price supports on wheat
at an average national level of $2 a bushel
for 19?8 crop were strongly supported.
"Lowering supports would not market any
more wheat or reduce the price of wheat
foods to the consumer," Baum said. He
-stated thap chances are good that supports
will be stabilized. The white-wheat policy
was instituted last year after 204 million
bushels of white wheat were sold from Pa-
cific Northwest ports. The record movement
primarily was caused by Public Law 480 sales
to India.
Because of the movement, the price went
up to about 40 cents above the loan rate,
forcing the Government subsidy to 97 cents.
The carryover on July 1, 1956, of 135 million
bushels was reduced 1 year later to 55 mil-
lion bushels. Red-wheat producers in the
Corn Belt and Southwest weren't so fortu-
nate.
The Department of Agriculture foresaw
a storage problem in those areas because. the
red wheat wasn't moving nearly as rapidly
as white wheat. The Department also pre-
dicted the white-wheat carryover July 1,
1958, would be 12 million bushels.
A major reason modification of the white-
wheat policy is sought, said Smith, is that
the estimate now)has been raised to 36 mil-
lion bushels. This is approximately half
the annual white-wheat production in the
Pacific Northwest.
India, Pakistan, and South Korea have
requested white wheat under Public Law
480 for purposes which red wheat cannot
satisfactorily fulfill.
Baum and Smith requested the Agricul-
ture Department allow the movement of
three to four million bushels of white wheat
a month. This, they contend, would not
upset the market price.
p
, y
one oo
together w
t
for training, to study (1) the fundamentals
of wheat-foods preparation, and (2y the use
of these foods in the daily diet with suitable
side dishes.
After a period of 21 days of study, lec-
tures, and observations, the 92 technicians
returned to their 46 prefectures to teach, in
turn, a total of nearly 1,500 women extension
agents what they had learned about wheat
dishes. These women, all part of the na-
tionwide, rural extension, adult education,
and home-improvement extension service
programs, are already meeting with parent-
teacher associations, with fisheries and agri-
cultural cooperatives, and with other groups
to spread the word about wheat-about Pa-
cific Northwest wheat as it affects this Asian
nation.
This program of taking soft wheat into
regions where hitherto rice has reigned as
king is yet another of the Oregon Wheat
Growers League's ideas for probing the vast
Japanese wheat-consuming potential. It has
been operated through the cooperation of--
the foreign agricultural service and the
home-life improvement section of the Min-
istry of Agriculture and Forestry.
[From the Oregon Wheat Growers League]
ALL-OUT ADVERTISING CAMPAIGN EFFECTIVE
TOKYO.-Release of Japanese Ministry of
Agriculture and Forestry statistics reveal that
soft wheat flour products gained 10 percent
in 1957 even though total wheat usage
dropped. Abundance of domestic grown rice
resulting from a bumper crop is to blame.
Japan harvested its third consecutive abnor-
mally large rice crop during the 1957 season.
Primarily responsible for the soft wheat
gain under these adverse conditions has bggn,
an ambitious nationwide advertising and
sales promotion campaign costing more than
a quarter million dollars.
This past March 18, 1957, a project was en-
tered into between the Foreign Agricultural
Service of the United States Department of
Agriculture and the Oregon Wheat Growers
League for a broad-scale market development
program to bolster the sale of wheat flour
products in Japan.
Through advertising In newspapers and
magazines, radio and television, posters and
leaflets; cooking demonstrations and parades,
bread festivals and special sales, films and
quiz programs, and prize contests, Japanese
housewives are urged to use more wheat
foods. Cooperation comes from the Food
Life Improvement Association, and the fol-
lowing industrial organizations; the All-
Japan Bakers Cooperative Federation; the
Japan Wet Noodle Makers Association; the
Japan Dry Noodle Makers Association; the
All-Japan Biscuit Makers Association; and
the All-Japan Macaroni Makers Association.
Jack Smith, president of the league, said
today, "Responsible people in Government
and Japanese nutrition circles recognize that
national health will be improved if steps are
taken to increase the per capita intake of
wheat by those now familiar with the grain
and to introduce wheat foods to those to
whom such things - as bread, wet and dry
noodles, biscuits, and macaroni are still vir-
tually unknown."
"Steps have been taken," he continued, "to
introduce Pacific Northwest soft white wheat
to Japanese through a broad program of edu-
cation carried forth to bakers, nutritionists,
home economists, extension workers in rural
EDWARD J. WHELAN,
Secretary.
Whereas the present policy of the United
States Department of Agriculture, under
Public Law 480, excludes the sale of western
white wheat to India, Pakistan, and Korea
and does give preference to hard red wheat
sales from the gulf and Atlantic coasts; and
. Whereas this' policy based upon previous
wrong surplus estimates has, caused a price-
depressing surplus of white wheat in the
Northwest, and has deprived Pacific coast
ships of many grain export cargoes, conse-
quently causing wide unemployment among
seamen, officers, and others in the Portland
maritime industry; 'and
_ Whereas, our community and Oregon Is
now a labor-surplus area with much unem-
ployment and is in need of all business and
contracts possible: Therefore, be it
Resolved, That in order to stimulate the
Northwest white wheat export business and
shipping and reduce unemployment in the
Portland maritime industry, that j;he Mult-
nomah County Labor Council, AFL-CIO, re-
quesst Secretary of Agriculture Ezra Benson
to modify this policy and make effective im-
mediately, a program that will allow a pro-
portionate amount of northwest white wheat
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[From Far East representative, Oregon Wheat
Growers League, Tokyo, Japan]
BREADMAKING, BREAD-EATING TECHNIQUES
INVADING JAPANESE RICE REGIONS
Pacific Northwest wheat is invading rurali,;,
Japanese areas where rice eating is tradi
tional under one of the wheat-dish familiari-
zation programs which have now been com-
pleted by the Oregon Wheat Growers League.
Under this program, according to the
league's Far East representative, Joseph J.
Spiruta, some 1,500 professignal home econ-
omists are touring parts of the remotest pre-
fectures to explain to housewives . In
agricultural areas the techniques of wheat-
foods preparation and the beneficial aspects
of wheat eating.
Spiruta's opposite number in the Ministry
of Agriculture and Forestry, whose home-life
improvement section lias done so much to
bring about the league program's success,
is a diminutive Japanese lady, Mrs. Mat-
suyo Yamamoto, the first woman to be sec-
 Approved For Release 2004/05/13 : CIA-RDP91-00965R000300010028-7
areas, school lunch program planners, govern- fully, I found that considering the Mr. NEUBERGER. I remember the
s anent officials, and, of course, the general pub- mia,ntity of rips n-ii-.4 4,. gyn.,#,,,,,,+ 4%__+ +:....._ t .._
4122 CONGRESSIONAL RECORD -SENATE March 18
with the quantity of wheat produced and in the farm problem was when -I wawa
'1fr. NEUBERGER. Mr. President, I in contrast with the quantity of cotton student at the University of Oregon and
realize this is quite largely an adminis- produced, rice had received a fairly heard the late Senator Charles L. Mc-
trative question. Perhaps I should not equitable share of the amount appro- Nary, who, if I am not mistaken, was a
burden the chairman of the committee priated. colleague of the able Senator from V'_
with it at all. It may be that the addi- Mr. NEUBERGER. That is as much mont. The late Senator McNary was
tional grants provided for in the bill can as any commodity or any segment of a concerned about the wheat - surplus
have some bearing on it. commodity could expect. which, of course, affected Oregon and a
I know the wheatgrowers in the State Mr. ELI ENDER. That is correct. I substantial number of other fine States.
of Oregon feel a disproportionate amount have been assured by the Department He was the sponsor of the McNary-
of hard, red wheat of the Middle Western that is the policy. I hope it will continue Haugen legislation, which contemplated
States, rather than the soft wheat of the to be the policy, because all commodities a world price for wheat, so that a sub-
Pacific Northwest States, is going to the must be treated equitably. stantial portion of our wheat could be
Orient. Is there any way at all in which Mr. NEUBERGER. I think it is dlsposed? of in the world market.
this situation can .be corrected legisla- characteristic of the chairman of the I am aware of the current situation.
tfvely, or in which Public Law 480, now committee that he has not sought pre- I want the Senator from Vermont to
before the Senate, can have some bear- ferential treatment for the commodity know that I do not believe wheat has
tog on that question? produced within his own State. I know been discriminated against. I merely
Mr: ELLENDER. I assume there his reply In this respect will be most referred to our own soft wheat in the
would be, but personally I would rather reassuring to the growers of soft wheat Northwest, which seeks its fair share of
see it be done without earmarking. in the Pacific Northwest, particularly in the market.
Mr. NEUBERGER. I realize that Oregon and Washington, Mr. AIKEN. It is impossible to con-
would result in a competitive situation Mr. AIKEN. Mr. President, will the duct the program without discrimina-
which might open up a Pandora's box. Senator yield? tion against someone; i am,sure of that.
IMr..ELLENDER. It might do that. Mr. ELLENDER. I yield. I think the Department has done the,
We had similar suggestions made to our Mr. AIKEN. I would not want the best it could. In my opinion the wheat-
commitee by the ricegrowers. They RECORD to show that the wheat growers grower of the Northwest is entitled to
thought-with perhaps some justifica- have been discriminated against in the the market in the Orient, if the grow-
=tion-they were not getting their just program. ers produce the type of wheat the Orient
share of the amount made available in Mr. NEUBERGER. If the Senator wants to buy.
the bill. Although I come from,a rice- will pardon me, I did not make any such Mr. NEUBERGER. Our two wheat
producing area, I do not favor at this claim. I trust the Senator heard my leagues in Oregon and Washington-
time earmarking any of the funds for remarks, particularly the Oregon Wheat League-
any particular purpose because it will Mr. AIKEN. I did not hear the Sen- have spent a good deal in the way of
certainly pose great administrative prob- ator very well. To be complimentary, funds to send technicians to the Orient
th
S
t
'
i
e
ena
or
s vo
gems. I hope, however, that good judg-
ce is not raucous. . to,,educate the people there how to use
mint will be exercised by the adminis- Mr. NEUBERGER.,. The Senator is soft wheat, as in baking pies, scones,
trator of this measure and that he will very kind. - crackers, cookies, and ,other things in
see to it that all commodities in surplus The point I made was not that wheat the diet previously unknown to people
are treated equitably, as indeed they as a whole had been discriminated in Japan and her Oriental countries
,
must be. against. I brought up the fact that the They have tried to demonstrate in mu-
growers of soft wheat in the Pacific
Mr. NEUBERGER. I 'want to say to Northwest, which is quite different fro ity and resourcefulness in this situation.
the chairman of the committee that al- m Mr. AIKEN. 'T'hat has been a worth
the hard red wheat produced in the dif-
though I come from a so-called soft- while and successful effort.
ferent climate of the Middle West, felt ,
Wheat State, I share with him the Mr. NEUBERGERS. It has been. I
thought and the principle that there that they were not getting their propor- merely asked it be, to some fair extent,
should not be any earmarking. Once it tionate share of the Public Law 480 rewarded in the program.
was st arted, the shipments to the Orient, where the
portals and floodgates I thank the Senator for his observa-
would be opened. I am inclined d to people by tradition and preference have flora.
think-I am sure it is the chairman's favored the soft wheat. There was no Mr. ELLENDER. Mr. President, un-
thaught-that the Department of Agri- desire to claim that wheat as a com- der the program in effect prior to May
culture, within the limits provided, will modity has been discriminated against, 1957, barter contractors traded materials
because I realize that is not the case.
administer Public Law 480 as equitably eligible for barter to Commodity Credit
as possible, not only as between com- Mr. AIKEN. I understand the Sena- Corporation for agricultural commodi
modifies, but as between various cafe- tor. I hear him very distinctly this ties and hen exported those commodi-
gories within commodities. time. ties for dollars, usually through export-
Mr. ELLENDER. I think so. So far Mr. NEUBERGER. I am sorry I did era normally exporting such cammodi-
I shall be glad to lend my not speak earlier with sufficient vigor. tB
as possible
i
`
o
,
y pay
ng a
c
mmission, or in
Mr. AIKEN. I was going to point out
efforts to that end. I think it ought to some other manner, the barter con-
be done that way. Not only categories of to the Senator that of the $2,265;300,000 tractor enabled the exporter to lower the
commodities, but areas in the country, worth of contracts signed under title export price of the commodity suffi-
Shouid be taken into consideration, I, $923.5 million were for wheat. ciently to make the commodity move.
Mr. NEUBERGER, I am aware of
Mr. NEUBERGER. Geographical Furthermore, the purchase of materials
that.
. eligible for barter in foreign countries
Mr. ELLENDER. Geographical areas. Mr. AIKEN. I am glad that is so, be- generated dollar exchange needed for
I have been given assurance that is what cause wheat is in surplus. the purchase of the agricultural com-
is being done. Mr. NEUBERGER. It provides our modities. Materials eligible for barter
Mr. NEUBERGER. I thank the Sen- largest surplus; that is correct., are limited to those required for speci-
s?tor from Louisiana. Mr. AIKEN. I sometimes think that fied uses or which entail less risk of loss
Mr. EI,LENDER. I hope that it will if we gave reasonable export subsidies or substantially less storage charges.
not only be continued, but that there to 4, 5, or 6 of our principal commodi- Barter therefore affords opportunities
.Will be frequent reappraisal. If it Is ties, on which we can really compete savings in deterioration losses and in
not being done in the manner we have in the. world market, we might solve storage charges.
just Indicated, it may be necessary for our agricultural problems more quickly Under the revised program, shipments
us to act to see that it is done that way. than we can by trying so many of the of agricultural commodities to coun-
As Isaid
the
i
d
,
r
ce pro
ucers came to devious routes we have been following in tries considered to be dollar markets may
me. I toqk the matter up with the De- the past and perhaps will follow in the be made only where additional trade can
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 required to satisfy Commodity Credit second, since the bill directs the Secre- chairman that it was impossible or very
Corporation that the .proposed transac- tary to undertake an expanded barter difficult to prove?
tion will mean an increase in United program in lieu of the restricted program Mr. ELLENDER. It is very difficult to
States exports of the commodities in- favored by the Secretary, the bill would show. The distinguished Senator from
volved. While the flexibility of barter give him an objective and a limitation Minnesota [Mr. HUMPHREY] went into
arrangements permits the price reduc- of $500 million a year. During the first detail on t~iat subject in his report. He
tions necessary to make the commodity 3 years of the program, the volume held hearings for several weeks.
move, generates the dollar exchange averaged just under $300 million a year. Mr. HUMPHREY. The Department
necessary to such movement, and there- The committee believes that $500 million, says it cannot prove it.
fore does increase overall exports, it is therefore, represents a reasonable ob- Mr. ELLENDER. Hearings were held
almost impossible to `show that any par- jective. by the distinguished Senator from Min--
ticular barter contract will result in the Third, the bill would prohibit the nesota on June 11, 12, 20, 21, 26, 27, and
9d=called additionality required by the Secretary from excluding materials from 28, and July 16, 18, and 19.
revisd program. Just as we know that barter by reason of the fact that they I understand that the Department
international trade is a two-way street, have been domestically processed if pro- failed to prove its case, according to the
involving imports as well as exports, we vision is made for the importation of an testimony which was presented. I will
know it is not possible to show that any equivalent amount of similar raw ma- gladly yield to my good friend from Min-
particular import makes any particular terials. Section 303 does not exclude nesota to shed further light on the sub-
export possible. domestic or domestically processed ma- ject under discussion.
During the peri~d prior to May 1957, terials from barter, but the program Mr. HUMPHREY. Mr. President, I
the Secretary, in entering into barter regulations do, so this would require a think it is only fair to say that no one
contracts totaling ' $870,100,000, ap- change in the regulations. can by statements prove or disprove ad-
parently had reason to believe that such Section 6 ,makes two amendments to ditionality. I do not think I could say
transactions afforded an opportunity to section 206 of the Agricultural Act of that. one could disprove the statement
protect the funds and assets of the 1956 to reflect the extension of section that some barter sales had perhaps cut
Commodity Credit Corporation. The 303 to nonstrategic materials not re- into other sales; but, by the same token,
committee feels that there is as much quired for immediate use. when the Department of Agriculture in-
opportunity to protect the funds acid Section 206 (a) of the 1956 act provides sists that the so-called doctrine of ad-
assets of the corporation by barter today for the transfer of strategic and other ditionality shall be the standard by
as there was prior to May 1957. The materials acquired through barter to the which to judge barter, it cannot prove
situation has not changed. However, supplemental stockpile, unless acquired that barter sales have substantially cut
the Secretary has changed his mind and for some other purpose. This would seem into cash sales. But the factual record
is no longer able to find that such op- to be as clear a direction as could be furnished us by the Department of Agri-
portunity exists unless the barter con- given that nonstrategic materials are to culture indicates the opposite. The
tractor makes a specific showing of ad- be transferred to the supplemental stock- statistical tables show a rough correla-
ditionality.This cannot ordinarily be pile in the cases described. However, tion between the rise of barter sales and
done oil an individual transaction, end- even after the enactment of section 206 the rise of cash sales.
so further barter is prevented. Since (a), it appears that the supplemental I have been checking over the .state-
the Secretary's. inability to make the stockpile may still be understood by some ment of Mr. Berger, of the Commodity
'finding which the committee feels the to be restricted to strategic materials. Credit Corporation. He says he cannot
facts require has jesulted in the virtual This is not the law; it is not so restricted. really prove that barter sales have sup-
stoppage of the program, the committee Of course, in the past section 303 has planted or cut into cash sales; but, by
has recommended repeal of the require- provided for barter either for strategic the same token, he says that the agency
ment for such a finding. The Secretary materials or for materials for which a ran into some trouble with barter.
is still required to exercise his discretion specified use is contemplated, so that I think basically the trouble was that
in making the best transaction possible. other materials not' acquired for other when the agency was giving interest-
Just as a matter of course, implied in purposes would not be acquired under free commodities there were fears of
any direction to any Government officer, section 303, although they could be ac- some windfalls. If that situation had
he is required to conduct the program in quired under other barter authority, been really investigated-and perhaps
a manner which will protect the funds Mr. MORTON. IvIr. President, will this was where we failed in our respon-
and I hope not-the result
and assets of the Government. But the the Senator yield? sibility, been very interesting. I
point is, he must conduct the program. Mr. ELLENDER. I yield for a ques- might , have cause, to believe that the reason
He must do so to the best of his ability. tion. for. the issuance to b of the t May 28 order
The purpose of removing the Secretary's Mr. MORTON. It recently came to cutting off barter and adding 8ho ser
discretion as to whether he will barter at my attention-I do not know whether ca, criterion of addiddn g h so-
all,, or not, is to make it clear that he it is a fact or not-flat certain Indian chat dhey might be accused of permitting
is directed to conduct a substantial bar- manganese producers were bargaining that the profits to c ed of, not from
ter program, even though he may dis- with German and French producers of wind exchange of goods, but from the
agree with Congress as to the merits of ferroalloy materials who take the raw the
interest-free commodities which were
such policy. material and fabricate it, and that they
In addition to directing the Secretary want to make a barter arrangement available.
to undertake a barter program without with the Secretary of Agriculture. The interest-free commodities have
regard to whether he agrees with Con- Under the bill as amended, and as it been stopped and in fact interest is now
gress that such a program affords an .comes before the Senate, the Secretary. paid by the contractor. Nothing in this
opportunity to protect the funds and of Agriculture could barter for the raw bill changes it.
assets of the Government, section 5 ore, which could be brought into this So certain operators were previously
makes 3 other changes in section 303, country and processed into the ferro- able to make money from the use of
generally intended to increase barter alloy manganese, or any other product commodities on which they were paying
opportunities. which can be preserved relatively per- no interest. The regulations against
First, the direction of section 303 to manently for the stockpile, or for reserve this practice still stands, and there is
barter is now limited td 3 types of ma- purposes. nothing in the proposed amendments
terials, the first of wfiich is strategic Mr. ELLENDER. Yes. which would change that regulation.
materials entailing less risk of loss or Mr. MORTON.* I thank the Senator The Department came to the conclu-
subs'antiallr less storage charges. The for clearing up that point. s that thsadwas already ftor was
bill would broaden this category of bar- I should like to ask another question. isome t after r aspects ass of bartering.
ter material by extending it to all com- Did not the committee reach the conclu-
mod3ties of which the United States does sion that, on the question of increasing Mr. MORTON. It is true, is it not,
ible to show the that since May 28, in certain countries,
i
i
mposs
s
not produce its requirements and which our exports, it
meet the criteria with respect to storage criterion of what is called additional- with respect to certain commodities, ad-
and risk of loss. ity? Did I correctly gather from the ditionality has riot had to be proved?
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 Approve`dFor Release2004/05/13 CIA-RDP91 0,0965R000300010028-7
CONGRESSIONAL RECORD -SENATE March _ 18
It
Corporatio-- n. t,11125 is now it
gat we call the underdeveloped coon Cred _ it
The company goes worked:
sa
and
_ _._. _ ..
y,
....d a c,s- An American international trading
eie is no application of the doctrine tourer for that wheat, and it takes those' company which normally imports ore,
of additionality. All that "additional- funds and buys zinc with them. Is that minerals, or other materials into the
ity means is simply that befor
i
e one
t? Uit
ned States would approach the De-
~engages in barter he must prove that the Mr. >:rl..NDER. Usually they will sell partment of Agriculture and offer to the
sale under barter would be in addition the wheat for cash in one country; then, Commodity Credit Corporation mater-
to any sale for cash. How anyone can in payment for the wheat the Commodity ials which were on the so-called list of
)possess such prophetic wisdom,is beyond Credit Corporation gets the bartered
b
ti
o
jec
ves for barter
.
flay comprehension. In other words, one goods, such as zinc, or whatever the This list originates In the Office of
istupposed to look into a crystal ball and, material may be which is the subject of Defense Mobilization and contains the
see in advance that no one in the entire the barter. materials for which surplus commodities
area would buy these commodities f
r
o
I bk t thit b
goacoe proposion that in maye bartered. It is forwarded to the
4'ash. Thereby he proves additionality. practically all of the barter transactions D partment of Agriculture through the
At best it is a rough estimate, I think that were made for surplus commodi- General Services Administration. The
we would be foolish to judge the case of ties such as wheat, the strategic material materials offered must meet Federal
barter strictly on the basis of this si igle obtained in exchange did not come from specifications and be offered at a price
measurement particularly since the rec- the countr
th
th
t
bl
y
a
a
ad received dthe wheat accep
e to the Commodity Credit C
.or-
ord shows that practically no parties The commodities went to the country poration which uses the, experts of the
have been approved under other trite- having dollars, and through good sales- General Services Administration to ad-
manship the exporter in the United vise them. That is done to make sure
?Do not 'misunderstand me. I am in States of that wheat got a good sales- that we are not being charged an exorbi-
favor of barter as such but earlier. I man to sell that wheat, and they pro- tant price for a material, but a fair mar-
challenged the Department because of ceeded to sell the wheat for cash. In ket price.
what I considered to be a too liberal use any event, the Commodity Credit`Cor o- The offer r had to commit hims@lf to
of baiter. After\having been challenged, ration did not get the cash, but the take the materials front a friendly coup-
on the basis of the liberality of the, bar- strategic material. Therefore, the De. try, deliver the commodities to such
ter, the Department went from one, ex- partment of Agriculture concluded that friendly country, ship 50 percent of the
-treme to the other. It is either in the ,since all the sales for surplus commodi- materials on American-flag vessels-
,Arctic, Ocean or in- a tub of hot water. ; ties were made for cash, why not sell this will be of interest to my friends
They are either bartering wholesale or them and get the cash, instead of barter- who represent shipbuilding States-and
they are not bartering at all. What we ing for the strategic materials? That otherwise meet the special requirements '
ask for is reasonably good judgment. was their argument. established by the laly and the Depart-
Mr. ELLENDER. I wish to point out Mr. HUMPHREY. Mr. President, I ment of Agriculture.
that I believe one of the principal argu- believe the arguments of the chairman Many countries to whom we would
ments advanced by the Department of
of the send foreign aid are the same countries
'Agricultureis that commodities used for committee are very convincing,
What happened was that the private in which the purchases would be made
barter are sold by the domestic export- by the barter company. This permits
exs for cash. The Department takes the traders would go forth pnd get the busi-
ness. That is why 2 years ago I recom- those countries to have dollars that they
position that since such was the, case,
medd that itdf tm need with which to buy additional gd
nensea ohe Comoditoos
then barter displaced cash sales. They y from the United States.
said: If an individual could sell for cash, Credit. Corporation trying to be an ex- If these conditions were satisfied, the
s, Why could not CCC have sold for cash? Porter of wheat, it turn it over to private Department
f A
i
lt
o
gr
cu
ure would accept
Mr, HUMPHREY. Mr. President, will trade channels. I have outlined in my the offer of the materials and agree to
the Senator yield? report to the committee what really hap_ give in exchange surplus agricultural
Mr. ELLENDER. I, yield. pened under the barter arrangement. commodities which could be sold in any
Mr. HUMPHREY. I will tell the Sen- ' I wish to make my position quite clear. friendly country through normal trade
-Ate the reason the Commodity Credit Iprefer cash sales. I prefer title I sales. channels.
Corporation did not do it. It was be- I look upon barter as an additional
,They did not know how to sell as well as cooperation of the Department of State, eontract. _ -~ ~._ ... vy ..
Some of the brokers knew how to sell, and tife Department of Agriculture, in Ordinarily, such contracts were for a
Mr. ELLENDER. Was that not the making barter wort satisfactorily. In period of up to 2 years. The offerer had
pertinent argument, however? fact, at the conclusion of the hearings, 'Mr the use of the proceeds of this sale until
a when we were acting on the
HUMPHREY That is surel
di
.
y
pen
ng sh ti dliif th mtils
. .ucme aseveres oeaera part: of the argument. I may also say bill, I walked up to the Assistant Secre-, were made and payment had to be ac-
that 'the dollars generated by the barter tary of Agriculture and spoke to him complished. Prior to February 19, 1957,
arrangement were eventually returned about it, and the letter I have from there was no limit on the interest-free
'to the United, States for the purchase of the Department under date of March 11 aspects of the transaction, but subse-
finished goods. Those goods included so indicates: quent to that time the period of no in-
Diesel equipment, electrical equipment, We have been requested by Senator Runs- terest was limited to 2 years Later this
and other finished products. While we PHREY to give consideration and to report to .
was. stopped entirely. This in ,
part was
were selling agricultural commodities, your committee any possible language where the profit was made. He was able
the dollars which had been changes in the proposed amendment to title
generated III which would make it more acceptable to sem those while he commodities for interesting the
by the sale of. the commodities were used from our standpoint. free money, while he was acquiring the
to buy material? from other,countries , materials that he was: bringing into the
under the barterXrrangement and those T have used them to help Improve the United States over a period of,2 years.
dollars were then available for paying barter program, and they know it. If That is why they were able to pay a
for exports from the United States. any of their representatives are in the little more to the Commodity Credit Cor-
They were used for the purchase of galleries, they knew it. They went from poration. That is why they were able
manufactured goods. If that is bad, we one extreme, where they were bartering to make sales. So they made money,
need a little more of it.. recklessly, to another extreme, where and the Commodity Credit Corporation
Mr. MORTON. Mr. President, will they refused to barter at all. Therefore, moved more commodities. That is the
the Senator yield? the majority of the committee decided way it worked.
Mr. ELLENDER. I yield, that we ought to be as specific as neces- It works entirely through normal
Mr. MORTON. IIow do these trans- sary to get action. trade channels. As we have indicated, it
actions work?, Let us say that a com- The Senator from Kentucky asks how results in the Commodity Credit Corpo-
Paly has a million bushels of what the arrangement works. 'When we ration making money. It results in
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 friendly countries selling to the United
States and buying from the United
States. It results in the American mer-
chant fleet getting l50 percent of all the
material shipped in American bottoms.
It results in a substantial amount of
storage saving.
What was the trouble? I will tell you
what the trouble was. The Commodity
Credit Corporation became frightened
'over a few of its own deals with private
companies. I am not accusing private
traders of doing anything g Wrong. They
bought smart and they sold smart. They
bought at the right price and sold at the
right price. They had the use of in-
terest-free money. They made money.
The Department of Agriculture was
afraid that some committee of Congress
would _.investigate them.
I am not interested in investigating
someone who makes an honest dollar.
We are interested in haying the Depart-
ment of. Agriculture sell its commodities.
We are interested in friendly countries
buying the commodities. We are inter-
ested in friendly' countries selling pus
materials. -
I wish the administration would not
be afraid to have someone be a good
businessman.
So they came before the committee
and opposed barter transactions, not be-
cause they do not work; they do work.
Not because they deny anyone a sale;
they do not. Not because they do not
help the American merchant marine;
they do. Not because they do not save
the American taxpayer money; they do
save him money.
Mr. President, do you know another
reason why they object to bartering!
They object because someone says it may
complicate our relationships with some
other countries; but even_that cannot be
proved.
There is no obligation whatsoever that
cannot be handled by a reasonable
amount of good administrative give and
take, administrative cooperation, be-
' tween the Department of State, and the
Department of Defense, and the Depart-
ment of Agriculture.
Furthermore, the amendment on bar-
ter merely restates existing law requir-
ing that the various agencies. and de-
partments cooperate with the Depart-
ment of Agriculture wherever possible
to barter our commodities for raw ma-
terials for offshore procurement, includ-
ing defense installations. In other
words, we can barter wheat for sand
and gravel which may be needed for the
building of airports. I know that the
Department of Defense would rather use
dollars; it is easier'that way. But there
is no reason in the world why the De-
partment should not be told to use com-
modities which we have.
The record of the testimony will re-
veal that the departments of Government
were reluctant to barter with our com-
modities, were reluctant to use our com-
modities for bartering purposes, perhaps
so, some could talk of our mounting sur-
pluses, when, in fact, the surpluses in
many instances could have been used,
and in fact some have been used for the
building of I military housing in France
No. 43-6
CONGRESSIONAL RECORD - SENATE 4125
with American wheat, cotton, and other
commodities.
Mr. AIKEN. Mr. President, will the
Senator yield?
Mr. ELLENDER. I have only a short
statement to'make before I conclude.
Mr. AIKEN. The Senator from Lou-
isiana knows that I do not take much
time.
Mr. ELLENDER. I yield.
Mr. AIKEN. I believe the cut by
barter trade into dollar sales is due to
the fact that most of the bartering was
done in the dollar-sales countries of
England, the Netherlands, Germany,
Belgium, and France. It is also true
.that in the early part of the program,
private traders undoubtedly made more
through interest on the money involved
between the time they got the wheat or
other commodity and sold it for `cash,
and the time the money was used to buy
diamonds or whatever they were trading
for. That period could extend to 2 years
before the Commodity Credit Corpora-
tion would charge them-for the use of
the money; therefore, about 12 percent
interest could be obtained.
Unfortunately, they did not seem to
use that interest to pay the Corporation
a higher price, but they did use it, if we
are to believe what we are told, to under-
cut trade in those countries, more or less
to demoralize not only American dollar
sales but dollar sales of other countries,
particularly Canada.
We did not become involved in a civil
war over that; I do not think we ever
will. But we did encounter a good deal
of irritation, both in this country and
in neighboring countries.
That was one of the weaknesses of
the barter system, which led to great
criticism before the final showdown. We
got a good share of the criticism. I un-
derstand that at present barter deals in
the amount of about $50 million are
pending, but with Asia, not with the dol-
lar countries.
Mr. ELLENDER. Mr. President, I
should like to conclude my comments on
section 6 of the bill.
Since the bill' would amend section
303 to provide for barter for nonstrate-
gic materials for which no immediate
use is contemplated, the bill would
amend section 206 (a) to eliminate any
reference to strategic materials. This
is intended to make it crystal clear that
nonstrategic materials acquired through
barter without a specific purpose in mind
shall be transferred to the supplemental
stockpile.
Section 206 (b) of the 1956 act pro-
vides for the duty free entry of strategic
materials acquired through barter. Con-
sistent with its amendment of section
303, the bill amends section 206 (a), to
provide duty free entry for nonstrategic
materials as well.
Last year and again this year the
Committee has heard complaints that
extra long staple cotton, although in
surplus and desired by friendly countries
under title I agreements, has been ex-
cluded from those agreements for vari-
ous reasons. Last year (as pointed out
on page 5 of the Committee report on the
bill now before us) the Committee com-
mented on this treatment of extra long
staple cotton and recommended that it
be accorded the same treatment given
other commodities. Apparently this
recommendation has not been followed,
so section 7 of the bill requires the fair
treatment of extra long staple cotton
under the act.
Mr. President, the evidence shows that
the complaint made about extra long
staple cotton was justified and admitted
by the Department. In the meantime,
we were informed that the friction had
been eliminated; that long staple cot-
ton was now being traded in the same
manner as were other kinds of cotton,
and that there was no objection to the
placing of section 7 in the bill.
Since the committee reported the bill
S. 3420 to the Senate, I have received
from the Department of Agriculture,
under date of March 11, a letter which
states that the Senator from Minnesota
[Mr. HUMPHREY] had requested suitable
language changes which might make the
barter provisions of the bill more ac-
ceptable to them. However, they were
unable to furnish such language.
It seems that the Department is un-
alterably opposed to the proposal.
I ask unanimous consent to have
printed at this point in the RECORD a
letter dated March 11, 1958, addressed
to me by Secretary of Agriculture, Ezra
T. Benson.
There being no objection, the letter
was ordered to be printed in the RECORD,
as follows:
DEPARTMENT OF AGRICULTURE,
Washington, D. C., March 11, 1958.
Hon. ALLEN J. ELLENDER,
Chairman, Committee on Agriculture
and Forestry, United States Senate.
DEAR SENATOR ELLENDER: We have been re-
quested by Senator HUMPHREY to give con-
sideration to and to report to your commit-
tee on possible language changes in the pro-
posed amendment to title III of Public Law
480, 83d Congress, which would make it more
acceptable from our standpoint. This legis-
lation would direct the Secretary of Agricul-
ture to barter up to $500 million worth of
agricultural commodities per year for mate-
rials under certain conditions. We are, how-
ever, unable to formulate any changes short
of the virtual nullification of the proposed
change which would eliminate our objec-
tions. The Department of Agriculture
wishes to go on record as being vigorously
opposed to its enactment into law.
The proposed elimination of any consider-
ation by the Secretary of whether or not a
barter transaction will protect the funds and
assets of Commodity Credit Corporation as a
criterion for exercising administrative judg-
ment is an unprecedented approach to legis-
lative direction. We believe the best inter-
ests of the Commodity Credit Corporation,
as a Government instrumentality, are syn-
onymous with the best interests of the
United States.
.In our judgment the elimination of the
principle of additionality as a result of bar-
ter cannot be justified. This amendment
directs the Secretary of Agriculture to com-
pletely ignore what agricultural commodities
could be moved into export channels through
the normal channels of trade for purchase
by our regular customers for dollars. Its
effect could be to replace to the extent of up
to $500 million per year of cash business by
barter for materials which for the.m.ost.part
there would be no need in the, near future,
These materials would go into dead storage
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CONGRESSIONAL RECORD - SENATE March 18
k F,'the hope that at some future time we will
b$ able to utilize them without serious
effects on domestic producers of these mate-
?
ehltu al exports. We ?elieve opportunities
"do exist, Wa believe honestly and sincerely
pi}; prevent policies will give some measure
of assurafice that Increased exports are being
'accomplished through barter. We believe
that the assumption that barter offers al-
most unlimited opportunities for expansion
ox exports is false. Such an assumption is
based on the fallacious premise that the
l}ave not countries of the world with respect
to food and fibre are countries that have
great material resources to trade for food
and fiber. This is not true. We believe,
however, that substantial additional busi-
ness can be achieved if export contractors
are required to demonstrate additionality.
If this requirement is eliminated all con-
tractors will turn to easy barter and be
content to merely replace cash sales.
There are powerful forces urging opening
the throttle on a barter program. An analy-
sis of the reasons therefor is in order.
This country is in a position to buy for
current consumption all the foreign pro-
duced, the economy requires. Leg-
islation exists for the procurement of all the
materials deemed prudent to stockpile for
future emergency defense needs. The rate
and extent of, such procurement is limited
,only by appropriation by the Congress. In
spite of the zeal to substitute barter for
'normal exchange, the United States dollar
can still be utilized to better advantage in
world markets than our agricultural com-
modities. Then wfiy do we have such strong
pressures for a wide-open barter program?
The fact is that a surplus situation exists
in the world for many materials. The pro-
ducers of those materials in the foreign
countries and importers of those materials
Into this country ant a price support and
,surplus removal program for those ma-
terials. ? We cannot solve the price support
.and surplus removal problems of our do-
`mastic agricultural economy by attempting
,to. take on those same responsibilities for
a much wider field of material production
throughout the world.
Experience with our domestic agricultural
programs has, we believe, led to one accepted
axiom. Price support at profitable levels of
production without effective controls on pro-
duction can only lead to financial disaster.
-To the extent that barter provides a profit-
able outlet for foreign-produced materials,
,,over and above that normally existing, for-
eign production and resultant surpluses will
bp increased. Certainly this country has not
.an4 could not have any semblance of control
,over such production.
There area few materials such as industrial
i'l diamonds of which there is no domestic pro-
duction. Of the rest, the world production
,affects domestic producers by their competi-
tive price in the United States market. The
removal of and insulation from the market
of those surpluses may provide a temporary
price stabilization to domestic producers of
such materials. Such was the result of rather
extensive barter transactions involving lead
.,and zinc In the past. An artificial outlet at
profitable prices can only stimulate foreign
production. When the Department of Agri=
culture realized the folly of serving as a
dumping.ground for foreign surplus lead and
Sine with little resultant gains in the disposal
of agricultural commodities, we stopped the
program for reappraisal. The domestic lead-
and-zinc industry felt the full impact of the
price depressing effect of this stimulated for-
eign production. Such will be the inevitable
result on other domestic producers of barter
materials under a barter program which pro-
vides an outlet for surplus foreign materials
and serves as a stimulant for further expan-
sion of Such surplus production.
The importers of diamonds have been vig-
orous proponents of expanded barter. "Dia-
mond production is controlled by cartel.
World prices are maintained by the quan-
tities of diamonds released to the market by
those cartels. Diamonds have been held up
as the glowing example of a material "entail-
ing less risk of loss through deterioration or
substantially less storage charges" than sur-
plus agricultural commodities. There are a
few surplus diamonds in the hands of im-
porters now. The Congress, by the enactment
of this proposed amendment, would direct
the Secretary of Agriculture to not only pro-
vide a home for those diamonds but also to
assure the diamond cartels of the world an
outlet at world prices for an expansion of
production up to whatever portion of the $500
million limitation they could get the Depart-
ment to accept.
Statements have been made in previous
testimony before your committee by propo-
nents of barter of the competitive advantage,
pricewise, enjoyed by barter commodities.
This has been advanced as an argument that
barter stimulates agricultural exports. As-
suming that such a price advantage exists,
it can only serve to drive down the world
price of agricultural commodities. Agricul-
tural commodities moving under barter
would be in competition, not only with agri-
cultural commodities from other countries,
but with agricultural commodities exported
from this country through normal channels
of trade. This can become a vicious circle.
To the extent that the domestic market
price is influenced by the price at which ex-
porters can sell In world markets a lower
price will result in order to meet the compe-
tition of the same commodity originating
through barter.
The Department has, with the encourage-
ment of Congress, made great progress in
making agricultural surpluses in CCC inven-
tory available on a competitive bid basis in
order to meet world prices. The exporter
who buys for dollars must and will bid lower
than he ordinarily would, in order to meet
what ever price advantage accrues from ac-
quisition of those same commodities through
barter.
Not only would the funds and assets of the
Corporation suffer under such a progressively
vicious circle but also the taxpayers who
must make good the losses of the Corpora-
tion.
The Department Is not opposed to barter.
We believe it has a place in our multiap-
proach to surplus removal through expanding
exports of agricultural commodities. We
also believe, however, that the interests of
agriculture and the United States as a whole
will best be served if it is limited to those
instances where administrative judgment
believes it creates additional foreign pur-
chasing power and channels that purchasing
power into buying United States agricul-
tural surpluses which would not other-,
wise move into export through normal
channels of trade.
It is important to note that the proposed
legislation will result in no saving in stor-
age charges to the Commodity Credit Cor-
poration. It will in fact result in increased
costs. This comes about because we will not
be gaining new agricultural export business
but merely replacing dollar sales by barter
sales. This means CCC inventories remain
about the same on the agricultural side of
the picture. We would, however, receive
materials wl}ich must be stored at the cost of
the taxpayers instead of dollars which at
present we can use to reduce the indebted-
ness and interest payments of the Federal
Government.
In summary It may be helpful to tabulate
a few of the things the proposed amendment
would and would not do. The amendment:
(1) Would direct the Secretary to barter
up to $500 million worth of agricultural com-
modities per year even if such transactions
would not conserve the assets of CCC and
the Federal Government but would dissi-
pate them.
(2) Would direct the Secretary to barter
even though the so-called barter transac-
tions would merely replace cash sales for
dollars and would have a tendency to drive
down the price which CCC would receive
for its remaining sales for cash.
(3) Would require the Federal, Govern-
ment to pay storage on unspecified materials
to be imported if the imported materials
have storage costs and deterioration risks
lower than agricultural commodities owned
by CCC?even though such materials could
not be used in the foreseeable future.
(4) Would increase the interest costs of
CCC and the Federal Government.
(5) Would provide world price support
for materials without permitting domestic
mining interests to benefit directly.
(6) Would require CCC officials who are
not experts in this field to spend up to $500
million for foreign materials each year.
On the other hand the amendment:
(1) Would not appreciably reduce CCC
inventories of agricultural commodities.
(2) Would not to any measurable extent
establish new agricultural export outlets or
increase existing ones.
(3) Would not reduce storage costs of
CCC.
(4) Would not reduce deterioration losses
of CCC.
(5) Would not be of help to farmers or to
our commodity inventory problems.
The proposed amendment prohibits the
exercise of administrative judgment to an
unprecedented' extent. ,In our opinion it
would, in retrospect, serve as a basis to dis-
credit the Congress that enacted it and those
who attempted to administer it.
Since this proposed legislation Is ready
for consideration on the floor of the Senate,
we have not cleared this report with the
Bureau of the Budget.
Sincerely yours,
E. T. BENSON,
Secretary.
Mr. ELLENDER. Now, Mr. President,
let us look at the other side of the coin.
Iread from a memorandum I have pre-
pared concerning the Department's ob-
jections:
1. Department objection: The proposed
elimination of any consideration by the
Secretary of whether or not a barter trans-
action will protect the funds and assets of
Commodity Credit Corporation as a cri-
terion for exercising administrative judg-
ment is an unprecedented approach to leg-
islative direction.
Answer:* The bill does not propose the
elimination of such consideration. Every
Government officer must always have the
protection of the assets of the Government
in mind and perform his duties so as to pro-
tect those assets to the best of his ability.
However, he must perform his duties with-
out the necessity of any finding by him that
their performance is required to protect the
assets of the Government. The purpose of
the bill is to direct the Secretary to under-
take a barter program without the necessity
of any finding on his part that the program
directed by Congress is wise. This is not
an unprecedented approach to legislative
direction. - In fact, it is difficult to think
of any other legislative direction which As
conditioned upon a finding that action un-
der it will protect the funds and assets of
the Corporation. There are manyprecedents
to the contrary. To cite one example, the
law requires the Secretary to support prices
at certain levels. This direction is not lim-
ited to those cases in which the Secretary
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finds of that such &i tio4 .wW protect the as which CC.C would receive for Its remaining
the John Poster Dulles, Secretary of State
be;Ina e at all _ $ut-? ~bii,legislation does not at a lower price than to hold them off the
give him a choice as. tQ s+hct,ber.. he shall ,market. at a higher price.
carry it out. He now, has and is exercising 6. Department objection: Barter results in
that. choice with., respect to barter. The increased storage charges, since barter simply
bill ;would ref oye that Chgiee. _ replaces dollar sales, so that we must store
2.?epartment objection: The elimination the same quantity of commodities and the
of the principle of additionality as a result barter materials, as well,
of barter cannot be justified. Answer: This presupposes that barter sales
Answer: `r)ie principle of additionality is do simply replace cash sales. This supposi-
not being eliminated That is the whole tion is discussed elsewhere.
basis artd purpose for barter. The bill recog- 7. Department objection: Would require
nizes tliat although additionality cannot be CCC of icials who are not experts in this field
'shown oi} a trap actiop-by-transaction basis, to spend up to $500 million for foreign mate-
barter provides a valuable method of increas- rials each year.
ing the total disposition of agricultural com- Answer: With a $500 million program to be
modities, , - _ w, administered, it might be possible to hire an
8.Department objection: This amendment expert or so.
'direc'ts the Secretary to Ignore what agricul-
tural commodities could be, moved into ex- Mr. President, another. letter was ad-
port channels through the normal channels dressed to me by Secretary Benson,
of trade .for purchase by dollars. Its effect under date of March 13, 1958, with fur-
could be toreplace cash business to the ex- ther reference to the barter provision.
teeld of up to $500 million per year. To that letter was attached a press re-
the Answer: The amendment does not direct lease indicating that there was objection
that Secretary he to ignore anything. It is hoped on the part of some of our friends to
would be alert, diligent, and aware
of every factor bearing upon the execution bartering. I read an excerpt from the
df his duties. Every one recognizes that bar- Department of State. press release:
ter could,, replace cash business, This is It Canadian ministers ufaintained that
calculated risk. And the extent to which United States surplus disposal operations
that could happen is also a calculated risk, have adversely affected Canadian wheat sales.
Certainly the Secretary does not mean that In particular they emphasized the harmful
$500 million worth of cash business would effects barter transactions have had on com-
be replaced, since the Secretary states that mercial-marketings of all exporting coun-
he believes opportunities do exist to expand tries, including Canada and the United
our agricultural exports through barter. So States.
the question raised by this objection really
is one of weighing the advantages of the Mr. President, I ask unanimous con-
additional exports that may be obtained sent to have the letter and press release
through barter against the possible loss of printed at this point in the RECORD, SO
an undetermined amount of cash sales. In that the Senate will have the full effect
determining this , question consideration of the correspondence,
should be given to the following facts: There being no objection, the letter
(1) Expansion of outlets through barter and
may result in greater cash sales rather than press release were ordered to be
reduced cash sales; printed in the RECORD, as follows:
(2) Up until May 1957 the Secretary found THE SECRETARY of AGRICULTURE,
that almost $300 million a year in barter Washington, March 13, 1958.
business protected the assets of the corpora-' The Honorable ALLEN J. ELLENDER,
Lion, Chairman, Committee on Agriculture
(3) In his letter of. March 11, 1,968, ob- . and Forestry, United States Senate.
jectieig to the provisions of the bill, the Sec- DEAR SENATOR ELLENDER: In further refer-
retary states, "We believe-however that sub- ence to my letter to you of March 11 com-
stantialadditional business can be achieved menting on proposed changes in the pro-
If export contractors are required tq demon- posed amendment to title III of Public Law
strate additionality." 480, 83d Congress, I attach herewith joint
(4) All the bill provides for is substantial .statement made by the 4 Ministers of Can-
additipnal business being achieved through ada and 4 Cabinet officers of our own Gov-
barter. The Secretary may Impose addi- ernment which has a bearing on the matter
tionality requirements or any other require- of barter.
ments which may be reasonable and proper Sincerely yours,
so long as he moves about $500 million worth E. T. BENSON.
4f commodities .by barter. _
4. Department objection: Barter results in
a worldwide price support and surplus re-
moval program for, and expanded produc-
tion of, barter materials,
,Answer: Of course anytime anyone buys
[Department of State press release of
October 8, 1957]
UNITED STATES-CANADIAN JOINT COMMUNIQUE
OF OCTOBER 8, 1957
anything, he provides a market for it, and The third meeting of the Joint United
this tends to keep the price up, remove it States-Canadian Committee on Trade and
from the market, and encourage production Economic Affairs took place in Washington
of more of the same. Under the bill, barter yesterday and today. The first two meetings
authority with respect to materials entailing were held in March 1954 and September 1955.
less risk of loss and less storage charges would In the discussions just held, the two Govern-
be expanded to nonstrategic, commodities. ments were represented by the following
The Department would therefore have broad Cabinet members:
authority as to what materials would be For Canada:
taken. .The Secretry would be expected to Donald Fleming, Minister of Finance
malre,the best trades obtainable. If an item (Canadian chairman).
- in surplus could be obtained at, a good prce, Sidney E. Smith, Secretary of State for Ex.
that might well be, a wise trade. Ore the ternal Affairs.
other hand, if it-promised only a continuing Douglas S. Harkness, Minister of Agricul-
decline in value, the Secretary might well ture.
decide to trade for some other material. Gordon Churchill, Minister of Trade and
5. Department objection: Barter transac- Commerce.
tions have a tendency to drive down the price For the United States:
Treasury. -
Ezra Taft Benson, Secretary of Agriculture.
Sinclair Weeks, Secretary of Commerce.
In addition to the members of the Joint
Committee, senior officials from both Gov-
ernments were present.
The Joint Committee was established to
provide an opportunity for the Cabinet mem-
bers primarily concerned with economic re-
lations to meet informally from time to time
to exchange views and examine develop-
ments of mutual interest. The purposes of
the Committee, as stated in the original
terms of reference, are:
"(1) To consider matters affecting the
harmonious economic relations between the
two countries;
"(2) In particular, to exchange informa-
tion and views on matters which might ad-
versely affect the high level of mutually
profitable trade which has been built up;
"(3) To report to the respective Govern-
ments on such discussions in order that con-
sideration may be given to measures deemed
appropriate and necessary to improve eco-
nomic relations and to encourage the flow of
trade."
This meeting was especially valuable as-
it was the first occasion since the Canadian
election in June for a group of Cabinet
members from the two countries to meet to-
gether. The meeting, which took place in
an atmosphere of cordiality and neighborli-
ness, provided an opportunity for a frank and
informative discussion on trade and econom-
ic subjects of current interest to both coun-
tries.
The committee examined a wide range of
W.tbjects including domestic economic de-
velopments in the United States and Canada,
the trade policies of the two Governments,
agricultural policies and surplus disposal ac-
tivities (especially those relating to wheat),
the trade in agricultural products between
the two countries, United States investment
in Canada, United States policies affecting
Canadian mineral products and a number of
other specific questions of special interest
to both sides.
In the course of the review of current
economic conditions it was recognized that
the two countries have a deep and continu-
ing interest in each other's economic sta-
bility and strength. In particular, repre-
sentatives of the two Governments expressed
their full accord on the importance of a
high level of business activity being main-
tained in their economies, and on the need
for growth that does not endanger stability,
both in their domestic economies and in the
trade of the free world. The recognition of
this reciprocal interest was considered basic
to close and effective cooperation between
the two countries as an integral part of their
contribution to world peace and security, in-
cluding the common defense of North Amer-
ica,
In the review of general trade policies
Canadian ministers drew attention to the
important implications for Canada of the
very high proportion of its external trade
which is taking place with the United States.
The volume and variety of goods entering
into this trade made Canada by far the most
important commercial customer of the
United States and vice versa. In 1956 well
over $4 billion worth of United States goods,
or approximately one-quarter of the total
cash exports of the United States, were sold
In Canada. On the other hand Canadian
exports to the United States amounted to
less than $3 billion. In the light of these
facts Canadian ministers stressed the effects
on Canada of developments in United States
commercial policies. -
The United States members for their part
stressed t4,e- dependability of the United
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CONGRESSIONAL RECORD - SENATE March 18
;fataes economy both as a market and as a
supply source. They drew attention to the
strong economic position of Canada and
pointed out that Canada's trading deficit
with the United States had been accom-
sld been covered by Canada's trade surplus
r1 investment inflows from other parts of
tthe' world. In these circumstances, the
-United States,, members felt that the trade
and payments relationships between the two
to were basically, sound and dem-
onstrated the effective working of multi-
lateral trading policies.
It was, agreed, that in formulating Its
trade -policies each country should show
careful regard for the interests of the other.
There was considerable discussion of
means for promoting the orderly expansion
of world trade. In particular the repre-
sentatives of the two Governments were in
?accord on, the need for continued support
of the General Agreement on Tariffs and
Trade, to which both the United States
and Canada are parties.
Canadian Ministers maintained that
United States surplus-disposal operations
have adversely affected Canadian wheat
sales. In particular they emphasized the
harmful effects barter transactions have had
on commercial iarketings of all exporting
countries, including Canada and the United
states.
The United States members affirm to the
Canadian Ministers their intention in all
surplus-disposal activities'to avoid, insofar
as possible, interfering with normal com-
mercial marketings. They gave assurance
i that under the present revised Commodity
Credit Corporation barter program each bar-
ter contract must result in a net increase in
exports of the agricultural commodity in-
volved, and that interest must be paid until
the strategic materials are delivered or pay-
ment is otherwise effected for the agricul-
tural commodities.
The members of the Committee were also
? agreed on the value of continuing consulta-
tion in order to keep to a minimum any
harmful effects of surplus-disposal activities.
There was a full discussion of agricultural
'policies which affect trade between the two
countries.
The Canadian ministers expressed concern
over the effect on Canadian producers which
would result from any future action by the
United States to raise duties on imported
lead and zinc. The United States members
explained the situation confronting their
domestic producers. They called attention
to the continuing need for imports of cer-
tain minerals and metals and indicated that
any United States tariff action that might
be taken to relieve serious injury to United
States producers would have the primary
objective of maintaining a normal relation-
ship between imports and domestic produc-
tion. They noted that any such action
would be applied in accordance with the
procedures of the General Agreement on
'rariffs and Trade.
The Canadian ministers clarified the con-
cern frequently expressed in Canada regard-
ing the natfire and extent of United States
Investment in Canadian natural resources
and important manufacturing industries.
They made it clear that Canada welcomed
the inflow of capital and recognized its im-
portant,contribution to Canadian economic
development. It was the hope of the Cana-
dian Government that all United States
companies participating in the expansion of
the Canadian economy would develop and
maintain closer and,mutually beneficial re-
lationships with the people of Canada. In
this connection note was taken of the recent
supplementary tax convention between the
United States and Canada which was de-
algned to facilitate greater Canadian partici-
pation In American-owned corporations op- passed by the 83d Congress. That Ian-
erating in Canada. guage was supported by the Secretary
The United States members welcomed this , of Agriculture and the Secretary of the
clarification by the Canadian ministers and Interior and the representatives of both
pointed out that the great confidence which those Departments who appeared before
United States businkss feels toward Canada .. . those before
and association. eszry. L11 facU, even stronger la,.+suage
Mr. HUMPHREY. Mr. President, will was supported by the Secretary of the
the Senator yield? Interior at the hearings of last June and
July
Mr. ELLENDER. I yield. .
Mr. HUMPHREY. I simply want to Mr. President, I repeat that when we
the Ra include the fact that as consider the barter system, the question
have
is entirely one of how it is to be used and
sible for the United States to purchase
an additional $60 million of ore and
minerals from Canada.
Also-and I regret that this must be
said-the whole issue of bartering be-
came a basic political issue in the cur-
rent election in o}lr great sister nation to
the north. I regret this, but it has be-
come an issue between the two major
political parties of Canada.
Recently other friendly nations have
seen fit to sell substantial quantities of
grain to the countries behind the Iron
and-the Bamboo Curtain. I am not try-
ing to tell them how to run their busi-
ness, and they ought not to tell us how to-
run ours. I am a member of the Com-
mittee on Foreign Relations and am
generally considered to be friendly to
foreign aid-a little more so than some
of my colleagues-and friendly toward
the needs of other countries. But, if I
am not mistaken, in recently weeks a
very substantial sale of grain has been
made to China. Also recently a very
substantial sale of grain was made to.
India. That was fine; I am pleased to
see the sale to India. But, Mr. President,
by the same token I see no reason why
the United States of American should
not make some sales, too. After all, our
wheat farmers are faced with the possi-
bility of $1.78 wheat for the coming year,
and that picture is not exactly what
they regard as an entertaining one. In
the meantime our surplusses remain in
the storage depots, and the public is led
to believe that the-costs for storage are
tremendous. Thus the farm program
becomes discredited.
One way to help the farm program
along is through orderly utilization-and
I emphasize the words "orderly use"-of
our stocks.
I wish it clearly understood that, as a
responsible Member of this body, I have
urged the Department of Agriculture to
proceed cautiously and prudently in the
closest coordination with the Depart-
ment of State. But the kind of caution
the Department of Agriculture has exer-
cised amounts to standing still and lit-
erally refusing to negotiate or permit
barter arrangements. That cannot be
justified. No member of the Committee
on Agriculture and Forestry can say that
the Department of Agriculture has not,
by the order of May 28, 1957, for all prac-
tical purposes, put roadblocks in the way
of barter arrangements. The order of
May 28, 1957, if it had any validity, could
just as well have been made a year be-
fore, because it was made on the basis
of the language of the law we are now in
the process of amending. That lan-
guage has been in the law since it was
the sense of direction to be followed.
The sense of direction-not the purpose
of the law-is what has caused the prob-
lem.
Mr. HOLLAND. Mr. President, will
the Senator from Louisiana yield to me?
Mr. ELLENDEI,. I yield for a ques-
tion.
Mr. HOLLAND. Mr. President, I con-
fess that I am disturbed about the broad
language in this barter provision. Not
,only have I been giving it personal study,
but I have been receiving some inquiries
from Florida.
The distinguished Senator from Lou-
isiana knows that tung oil is one of the
products of both his State and- mine,
and that the production of tuns oil in
the United States is less than the
amount the United States can use. Yet
almost yearly we have had great diffi-
culty in getting the Government to limit
imports. from some of our friendly
neighbors who produce it more cheaply
than it can be produced in the United
States.
My question Is as follows: Under this
wide-open, broad barter provision in
the bill would or would not the Secretary
of Agriculture in his sole discretion be
allowed to trade a surplus commodity,
such as wheat, rice, or cotton, for tung
oil produced offshore, simply because
tung oil can be easily and cheaply stored
and preserved?
Mr.- ELLENDER. It is conceivable
that he could, if the conditions outlined
in section 303 were met.
Mr. HOLLAND. What are those con-
ditions?
Mr. ELLENDER. The first is as fol-
lows :
Materials of which the United States does
not domestically produce ,Its require-
ments-
Mr: HOLLAND. That is true in the
case of tung oil, is it not?
Mr. ELLENDER. Yes.
I continue to read the first condition-
and which entail less risk of loss through
deterioration or substantially less storage
charges-
Mr. HOLLAND. That would be true
of tong oil, would it not?
Mr. ELLENDER. I do not know about
that, I may say to my good friend, the
Senator from Florida, because it might
be possible to show -that it, would be
more expensive to store tung oil than to
store wheat, or perhaps than to store
any other commodity which would be
exchanged for it.
Mr. HOLLAND. But if tung oil could
be stored-and I believe it can be-much
more cheaply and could be preserved
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CONGRESSIONAL M. 13 111, ECORD ENA' E.
;P . 4129
grain which was, in-surplus, that Con-
ditioir cquld be mct, could it not?
Mr. ELLENDER, Thatis correct.
Mr. HOLLAND. _ What is the other
Coriitio
Mr 4,LENDEl1, The otheri condi-
tion Is-,
or (b) materials, goods, or. equipment re-
quired in connection with foreign economic
and military aid and assistance?prooranas-
Iii. HOLLAND That is in another
area Qr fl ld, is it not?
>VIr? ELENDER. Yes.
The last condition is-
or (c) materials or equipment required in
substantial . quantities for offshore con-
struction programs.
Mr. HOLLAND. That, too, is in
another field, is it not?
Mr. ELLENDER. That is correct.
Mr, HOLLAND.. Therefore, the only
2 conditions thus required, if met, could
be complied with by barters for tung
oil, even though nearly every year the
American producers of tung oil have
been crying to have a quota applied
against -imports of tung oil; is that not
correct?
Mr. ELLENDER. That is technically,
correct, but I will be frank in stating
that I do not see how the Department
could barter for foreign tung,,oil when
we support the price of domestic tung
oil. In addition, I personally would op-_
pose any such program most vocifer-
ously,
Mr. HOLLAND. Very well.
Mr. President, at this time I wish to
Inquire about another commodity., The
Senator from Louisiana knows that
many of the mines in the Western
States are closed. I hope the Senator
from Montana [Mr. MURRAY] will not
leave the Chamber at this time, because
I believe, this matter is of very great
Importance to him.
I am thinking about copper mines,
zinc mines, lead mines, and other mines.
Some of the materials mined are not
produced lei the United States in quan-
tities sufficient tQ meet our, full needs.
It seems to me that even though the
strategic amounts required by our coun-
try-arid more than that-have been
stockpiled, under this provision, if it re-
mains in the bill, the Secretary of Agri-
culture, in his sole discretion, would be
allowed to exchange our surplus farm
commodities for either the metal or the
metallic ores which could be stored in
any quantities the Secretary of Agricul-
ture might desire to import; and which
therefore would become a_cloud hanging
over our domestic production. Is that
correct, or is if-not?
Mr. ELLENDER. Let me put the mat-
ter this way: Any commodity or "ma-
terials of which the United States does
not domestically produce, its require-
ments and which entail less risk of loss
through deterioration or substantially
less storage charges" could be an object
of barter. There is no doubt of that.
Mr.-HOLLAND. Of course the Sen-
ator from Louisiana, is correct. It seems
to me that at least permission is thus
given by''the bill, and could be used, so
that under this barter arrangement the
ucts which are not produced in excess though the United States producers of
supply in the United States, even though such materials may be in trouble from
the American producers are finding it time to time-just as the United States
extremely difficult to continue their pro- producers of tuns oil are in trouble at
duction operations. this time, and just as many gf the
I wish to ask a question in reference United States mineral producing Indus-
to sugar, a commodity of very great im- tries are also in trouble.
portance to both Louisiana and Florida, It seems to me we were wise in the
and also to many of the Western States. original instance in confining the law
Sugar is a deficit product; it is a product to the barter of strategic materials. I
of which the United States producers do have very great confidence in the distin-
not supply the full needs of the United guished Senator from Louisiana. I real-
States; is that riot correct? ize this point was not raised in commit-
Mr. ELLENDER. Yes; the Senator tee.
from Florida is technically correct in his Mr.ELLENDER. Yes, it was. I think
assumption. But I would say the bill the Senator himself raised the question
would not apply to sugar, for the simple as to whether sugar would come under
reason that, as the Senator from Florida 'the provisions of the bill.
knows, we have a ? quota system under Mr. HOLLAND. No; the Senator
which production in the United States is from Florida did not.
limited. I believe the United States pro- ' Mr. ELLENDER. I beg the Senator's
duces approximately 29 or 30 percent of pardon. I know some Senator raised
its sugar requirements; and a quota is the qeustion in committee.
given to Cuba, and quotas are given to Mr. HOLLAND. It seems to me we
various other producing areas. I doubt are taking a real chance if we open the
that, in view of the quota system of the 'door of barter to the extent of directing
present Sugar Act, sugar could be im- the Secretary-and this is, a direction
ported under the provisions of Public to the Secretary-if he can find some-
Law 480. thing we do not produce to our full need,
Mr. HOLLAND. Mr. President, will which he can store more cheaply than
the Senator from Louisiana yield further he can surplus agricultural commodities,
to me? to acquire it without reference to the
Mr. ELLENDER. I yield. essential economy of our country in con-
Mr. HOLLAND. I admit there is some nection with the particular article.-
force to the distinguished Senator's ar- I am afraid-if we provide that condi-
gument; but this measure, which, if en- tion, we shall get ourselves in trouble
acted, would be the last one on this sub- and put ourselves in a difficult situation.
ject to be placed on the statute books, If I should vote for the provision as it is
establishes no condition and makes no now written, I would not like to justify it
qualification at all, but simply provides to our tung=oil producers, whom the
t
"
"
hat
materials
and the amendmt St
-enenaor from Louisiana and I have tried
would eliminate the word "strategic," so many times to protect, either by get-
which is in the present law-"of which ting a quota in effect or getting a com-
the United States does not domestically plete ban on importations in some years.
produce- its requirements"-certainly Mr. ELLENDER. I do not fear that
that is applicable to sugar-"and which the Secretary will trade tung oil for rice,
entail less risk of loss through deteriora- sugar, wheat, or anything else. For
tion or substantially less storage one thing, if he attempted to do so, I
charges"-and certainly that is true of would certainly demand an end to such
sugar, as compared to some of the very a scheme. I would personally favor any
bulky crops which are in surplus supply. necessary amendments to the law to pre-
So I am afraid that it might be said clude the implementation of a transac-
that under this language, unless an ex- tion of that kind.
ception were-made in the act, even sugar . Mr. STENNIS. Mr. President, will
could be the subject of barter, the Senator from Louisiana yield to me?
Mr. ELL ENDER. Mr. President, I Mr. ELLENDER. I yield.
am sure the Secretary of Agriculture Mr. STENNIS. Mr. President, I com-
would have to look to the laws now ex- iI nd the Senate Agriculture Committee
isting with respect to sugar and tune oil, for prompt action in reporting S. 3420,
in fact, those with respect_to any other the bill to extend the Agricultural Trade
commodity, before exercising the pro- and Development Act-Public Law 480-
visions of this act. It is inconceivable for 2 additional years. Since the en-
to-me that any commodity subject to actment of this law in 1954, almost 3
price support as is tung oil, or quotas million bales of cotton have been ex-
as is the case with sugar, would be ported. Under this legislation 25 mil-
bartered for by the Department. I lion bags of rice, 162 million pounds of
would certainly oppose any such inter- dairy products, 1.8 billion pounds of
pretation. vegetable oil, 225 million pounds of lard,
Mr. HOLLAND. It seems to me there 3 million pounds of poultry, and a sub-
is no occasion for us to let down the bar stantial amount of other important
by eliminating the word "strategic," surplus agricultural commodities have
which is the conditional word used in been exported.
the present act, and to give to the Sec- This program has a three-fold objec-
. retary of Agriculture-simply because tive of reducing agricultural surpluses
he could avoid some storage charges- by exporting an amount over and above
the power to get rid of some surplus normal trade sales, expanding foreign
agricultural commodity by bartering it, markets through procedures which en-
and thus importing certain materials of courage maximum use of private trade
which the United States does not pro- channels and the use of a part of sales.
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h longer -periods, of time than. United States would be importing prod- duce sufficient to meet its, needs, even
 Approved For Release 2004/05/13 : CIA-RDP91-00965R000300010028-7
CONGRESSIONAL RECORD - SENATE
ITALY
The project for 493 units of housing for
United States military personnel in Italy
has been approved for several months and
design work is complete. Actual construc-
tion has been delayed pending final acquisi-
tion of building sites by the Italian Govern-
ment (at no cost to the United States).
This acquls)ti n has now been completed
and construction is expected to proceed be-
fore the end of the current fiscal year.
SPAIN
l ceipts for market development re-
rch and promotion. I strongly be-
1jeve that this program has proved to be
Sound, approach to moving our sur
h
a
l'' s agricultural commodities in suc
Way as to get the fullest value for sur-
;,plus commodities. This aid program
leas been based on a concept of trade
rather than giveaway, and I hope the
plan to extend its operaton will receive
the full stjIport of the Senate.
r Mr. President, for several yea)'s I have
'sponsored legislation through our Mili-
tary 'Construction Subcommittee de-
signed to use more foreign currencies
received from the sale of agricultural
Commodities for construction of over-
'seas military housing. The larger part
of the . cost of our overseas military
housing program that would otherwise
call for expenditures of dollars can be
net through sale of surplus agricultural
commodities. I believe that this pro-
gram is a desirable approach from the
standpoint of moving surplus agricul-
tural commodities in a business-like
way at the least possible cost and at the
same time building badly needed mili-
tary housing in foreign countries. Our
Committee has also urged greater use of
''barter of agricultural commodities in
connection with military housing. This
arrangement has enabled countries who
have heretofore not been interested to
obtain surplus commodities under Pub-
11c Law 480.
Unfortunately, the Department of
?Agriculture has resisted barter transac-
tiop:s primarily because of the long pe-
riod of time required for repayment.
-'fills certainly appears to be merely a
"technical problem, and I certainly hope
that the Department of Agriculture will
reexamine the importance of this pro-
gram and adopt a more realistic' policy
which will encourage and expand barter
transactions.
I should like to Insert a summary
progress report of the projects being
fin need with the' proceeds of surplus
agricultural commodity sales. In all
cases except France, the commodity
sales are made under the authority of
title I, Public Law 480, and the local
currency proceeds are, used to pay con-
'a5truction costs. In the case of Morocco
and Iceland, "Third country" use of
loc l currency is involved as explained
ill the summary. In France, the initial
project of 2,700 units of housing was
supported by a barter transatcion exe-
euted ,by the CCC under the authority
`of this barter, act.
The PRESIDING OFFICER. Is there
objection to the request of the Senator
from Mississippi?
There being no objection, the matter
was ordered to be printed in the REC-
oxn, as follows:
~:. 'UNITED KINGDOM .
The Initial- project of 1,500 units of hou's+.
ipig in the United Kingdom is completed
"'fonts and a third increment of 307 units,
plus schools and chapels at certain of the
locations, have been approved and are ex-
liectedto be placed under construction be-
fore the end of the current ffscal year. A
fourth increment of 1,840 units is planned
f(1i' execution, during fiscal year 1959.
A project for 334 units of housing at the
Naval Air Station, Rota, Spain, and a first
increment of 92 units for Department of the
Air Force between several locations were
placed under contract in the fall of 1957.
In addition, a contract was executed for the
in-leasing of 1,581, units of rental guaranty
housing being constructed at Madrid, Sevilla,
and Zaragoza. In this case it was possible,
by executing a prepaid lease for 7 years
under the surplus commodity housing pro-
gram, to assure the completion of this
urgently required housing while keeping
costs at the same levels which prevailed be-
fore the recent Inflation of Spanish cur-
rency.
Additional projects totaling 1,081 units of
family housing are planned for execution in
Spain during fiscal year 1959. These proj-
ects will be `financed directly from title I,
Public Law 480 funds. ill
The initial project of 2,700 units of hous-
ing at 19 locations in France was financed
with the proceeds of a barter sale conducted
by the Commodity Credit Corporation under
the authority of its Charter Act. This con-
struction is proceeding satisfactorily and is
expected to be completed in the fall of 1958.
An additional project for 400 units of family
housing in France is planned for execution
during fiscal year 1959. This project will be
financed from the proceeds of a Public Law
480, title I sale of agricultural commodities
to France.
MOROCCO
A project for 500 units of family housing is
planned for the three Air Force bases in
Morocco. Bids were taken on this project
in the fall of 1957 and it is expected that
award will be made within the next 60 days.
This project will consist of prefabricated
houses purchased in Austria with the pro-
ceeds of surplus commodity sales to Austria
under title I of Public Law 480. Site costs
will be paid from Austrian currency and
from appropriated dollars. An additional
project for 330 units.of housing at the Naval
Air Station, Port Lyautey, Morocco, will
make use of prefabricated houses purchased
in Finland with the proceeds of title I, Pub-
lic Law 480 sales to Finland. The cost of
site development and erection will be paid
partly_ through the use of appropriated
funds (not to exceed 25 percent) and will
March f9
PORTUGAL (AZORES)
It is planned to proceed during fiscal year
1959, with a project of 306 units of family
housing at Lajes Air -Force Base, Azores.
The first increment of 135 units in this proj-
ect will be supported with existing title I
funds which have accrued from'the sale-of
surplus commodities to Portugal. Financing
of the remainder of these houses will be de-
veloped through further surplus commodity
sales.
JAPAN
The original project of 1,700 units of
family housing to be built at Army, Navy
and Air Force installations in Japan has
now been reduced to 1,350 units as a result
of the redeployment of `United States forces
in Japan. No further housing construction
is planned in Japan and plans are now under-
way tdsbrlange for the use of the remaining
local currency earmarked for housing to sup-,
wort housing construction in the Philippine
Islands. It is expected that approximately
$3 million will remain from the first Japan-
ese agreement which can be added to the
$8 million of housing funds created through
the second Japanese agreement. This $11
million is expected to provide most of the
necessary financing for the housing program
in the Philippines described below.
PHILIPPINE ISLANDS
It is planned that 450 units of family
housing will be built at Clark Air Force
Base in the Philippines with the cost of con-
struction to be paid from Japanese yen
accrued from Public Law 480, title I sales
to Japan, plus approximately $1.5 million in
pesos obtained through a title I sale to the
Philippine Islands. Additional support will
be provided frog) appropriated dollars (up
to 25 percent) if required.
Mr. STENNIS. Mr. President, the dis-
tinguished junior Senator from. Minne-
sota [Mr. HUMPHREY] has on several oc-
casions expressed a special interest in
barter programs. I understand that he
has introduced an amendment included
in the committee bill which directs the
Secretary of Agriculture to barter agri-
cultural commodities for critical and
scarce materials needed in the United
States. These barter transactions would
be limited to $500 million annually and
would be especially directed toward ac-
quiring materials which entail minimum
loss due to deterioration and low-storage
charges. This certainly appears to be a
step in the right direction toward assur-
ing an available supply of 'scarce mate-
rials which cannot be adequately pro-
duced domestically. To me it makes
sense to use our present agricultural sur-
plus to obtain the materials that we may
need for an emergency.
be accomplished partly through the use of Mr. President, I should also like to re-
Seabee labor. affirm my special support. for using for- A
ICELAND eign currencies for market-development
A project of 300 units of family housing is projects. Under existing agreements,
planned for Keflavik Air Force Base, Iceland. have
It is planned that prefabricated houses for about $43 million in currencies
this project will be purchased in Finland been allocated for foreign agricultural
with Public Law 480, title I finnmarks and market development. To date, more
that erection costs will be paid partly with than $9 million Is being obligated for
title I Icelandic currency' and partly with approved projects in cooperation with
appropriated dollars. private trade organizations that have
BERMUDA
300 units of family housing are planned
for construction during fiscal year 1959 at
Kindley Air Force Base, Bermuda. The cost
of this housing will be paid from British
pounds sterling obtained through a title I,
Public Law 480 sale to the United Kingdom.
This project also will be supported (not to
exceed 25 percent) with appropriated
dollars.
contributed almost $3 million. I un-
derstand that cotton-promotion projects
have been undertaken in 21 countries
and have contributed to the free move-
ment of cotton overseas and are expected
to continue to create a foreign demand
for American cotton. This program is a
move in the right direction and will be
of lasting benefit in building strong mar-
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 Approve or Re ase 4 5/1 F 2 4
CONGRESSIONAL RECORD SENATE
kets for all United States ,agricultural
d0)4mQditie? in ,tl7e_ years 'to come.- I
,hope that greater emphasis will be given
t4_ expanding the use of .foreign cur-
ren ies fo , tir s purpose.
Agricuural Trade and * Development
Act combined with sound loans should
systematically replace our _foreign-aid
programs." A great part of oyrhu~ge cash
utla,y under the foreign-aid?programs
bin. kid should -.be channeled more ef-
t`ectively through this program.
F j-Mr. AIKEN. Mr. President-
-The PRESIDING OFFICER. The
S.~nator from Vermont has-been, trying
to get the floor since-aboutunrise.
Mr. t LLENDER, Mr. President, I still
I)haye the floor, I,think I was recognized
some time ago.
Mx. AIKEN, I believe I was. recog-
nized.
' Mr. ELLENDER. I yield to the Sen-
ator from Colorado [Mr. ALLOrT~. _ -
Nir. J LLOTT, Mr. President, a par-
liamentary inquiry.
,Tbe PRESIDDING OFFICER. The
Senator will state it.
Mr. ALLOTT. Does the Senator from
Vermont have the floor?
The PRESIDING OFFICER. The
Senator front Vermont?has, the floor.
Mr. ELLENDER. Mr. President, I do
not remember yielding the floor, but it is
-`11 right.
Mr. AIKEN. Mx President, I ask
unanimous consent that I. may yield to
the Senator from Louisiana long enough
for him to reply to a question by the
Senator from Colorado.
The PRESIDING OFFICER. Is there
objec tjon? The Chair hears none,
Mf AIL OTT. If the Senator from
Louisiana will be so kind as to answer
2'or 3 questions, I would appreciate his
courtesy. I have been trying to get the
floor for some time. I realize that the
colloquy has been long and involved. I
attempted to get the floor before the
Senator from Florida brought,up the
question of strategic materials.
As my first questions to the Senator
from. Louisiana, I wonder if the Senator
can give us, since I find nothing in the
report about it, information as to the
amounts of metals such as copper, tung-
sten, lead, zinc, and fluorspar, which
have been imported into the country in
the last year under this act.
Mr. E LENDER. We do not have
the information available. It may be
that the distinguished Senator from
Minnesota [Mr. HUMPHREY] has that in-
formation. He held hearings last year not produce a sufficient quantity? -We
on the subject, as I stated. - buy them.
Mr. -ALLOTT. I wonder if we could Mr. ALLOTT. We buy them offshore.
have that information supplied for the Mr. ELLENDER. Exactly.
RECORD. Mr. ALLOTT. But we do not import
Mr. ELLENDER. I shall see if-the in- them into the country duty free. That
formation can be obtained. - is the point.
Mr. A.,LOTT. Those of us who come Mr. ELLENDER. The minerals which
from.nfountain States in which ore pro- are in our stockpile have come into this
duction is of great significance are very country in that manner. The minerals
much worried about this matter. Am I that would come into the country under
correct in assuming that under the fifth the pending bill would likewise go into
provision contained in the report,, on the the stockpile. The law in that respect
f
t
m
irs
page,
etals such as tungsten, lead, has not been changed at all, I say to the
zinc, copper=nonferrous materials- Senator from Colorado.
pending question.
The PRESIDING OFFICER (Mr.
HoBLITZELL in the chair). The amend-
ment will be stated by the clerk.
The LEGISLATIVE CLERK. On page 3,
line 3, it is proposed to strike out all of
sections 5 and 6.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ment offered by the,Senator from Ver-
mont [Mr. AIKEN] for himself and the
Senator from Iowa [Mr. MARTIN].
-Mr. AIKEN. Mr. President, there
have been some good arguments made
in favor of the amendment this after-
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ioaame sue law may
barter program, duty free? not have been changed, but this is one of
Mr. ELLENDER. If we are in short the practices which has been acting as
supply and we need them, and they are a depressant to domestic mineral pro-
not domestically produced, yes. In do- ducers.' For instance, under Public Law
ing that, I presume the administrator of 480, a fluospar mine was put into opera-
the program would certainly survey the tion in Mexico, in competition with fluor-
amount we have on hand of any of those spar mines in this country. While the
materials. I would- give him credit for producers in this country can produce
doing that. If there is on hand in the our needs of that mineral, fluorspar from
stockpile a supply of tungsten or any the mine in Mexico was imported in com-
other metal which we do not produce, petition with that produced in our own
and of which we have a 10- or 15-year country.
supply, I presume the administrator Mr. ELLENDE1 . I could point out to
would not let any more of the material my friend from Colorado any number of
be imported, industries which were established with
Mr. ALLOTT. Let us take the case of his money and with my money, not under
tungsten. Public Law 480, but as a result of cash
Mr. ELLENDER. I believe that we we, in part, furnished. Take, for exam-
have a 10-year supply of that material. ple, the automobile plant rehabilitated
Mr. ALLOTT. My understanding is by foreign-aid funds in France. We
we have a five-year supply. spent millions of dollars to revitalize that
Mr. ELLENDER. I thought it was a plant. It belonged to the French Gov-
10-year supply. ernment at the time. The French Gov-
Mr. ALLOTT. But in the case of lead ernment has since, sold it. The Sen-
and zinc, as well as of tungsten, we are ator's money and my money was used
capable of producing those metals in to put the factory back on its feet. To-
this country. I am sure we can produce day that factory is shipping carload
f
s o
all the tungsten we need, but in the case automobiles in competition with those
of lead and zinc we can produce far in produced in Michigan.
excess of what we can market. Is not This result is not peculiar to Public
the effect of the barter provision to de- Law 480. I could point out any number
press the price of those metals? of instances for the Senator.
Mr. ELLENDER. If we produced our Mr. HUMPHREY. Mr. President, will
domestic requirements we could not the Senator yield so that I may point
barter for the minerals the Senator has out a reference?
made reference to. Irr other words, sec- Mr. ELLENDER. I yield.
tion 303, on page 3 of the bill, states Mr. HUMPHREY. Mr. President, I
specificall
th
t th
`S
y
a
e
ecretary can bar- think it would be very helpful if the Sen-
ter materials of which the United States ator from Colorado [Mr. ALLOT ] could
does not domestically produce its re- refer to the hearings. I know t e Sen-
Mr. ALLOTT. I see that requirement.
But in the case of any mineral of which
we do not produce all our requirements,
the Secretary could still barter for those
materials and import them into this
country, tariff- or duty-free, in competi-
tion with the mineral producers of this
ator is a very busy man, and we all do
not have time to go through 600 pages of
hearings.
Mr. ALLOTT. The Senator is correct.
Mr. HUMPHREY. I should like to
refer the Senator to page 575 of the
hearings.
Mr- ATKEN Mr Preside + I did
t
th
try. is
at correct. , yield for the purpose of listening to a
Mr. ELLENDER. How would that dif- series of speeches. I yielded so that the
for from the present manner in which Senator from Colorado might make an
we obtain materials that are not do- inquiry or two of the Senator from
mestically_produced in sufficient quan- Louisiana. I hope I will have a chance
tities to meet our demands? In other to offer my amendment.
Words, how would there be any addi- - Mr. ALLOTT.. Mr. President, I will
tional competition under the program? yield the floor and later try to procure
Mr. ALLOTT. On page 3, line 8, it is the information I desire in a different
stated: - sway.
Materials of which the United States does - Ithank the Senator from Vermont.
not produce its requirements and which en- Mr. AIKEN. Mr. President, I call up
tail less risk of loss through deterioration. amendment 3-17-58-B, on behalf of my-
Mr. ELLENDER. How do we obtain self and the Senator from Iowa [Mr.
our supply of materials of which we do MARTIN], and ask that it be made the
 4132
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CONGRESSIONAL 'RECORD' SENATE March 18
noon, and, therefore, I am not disposed Mr. WATKINS, Mr, President, will
to take iuuch time of the Senate. I am the, Senator yield?
sure we are all agreed as to the desir- W. AIKEN. I yield to the Senator
which has performed outstanding service Mr. WATKINS. Is it not a fact that
d
for us not only with regard to agricul- we had a stockpile program for lead an
ture but with regard to other segments zinc a short time ago, operated through
whi
h
i
I
t
or,
c
n
er
of our economy, as well. the Department of the
I voted t report the bill fromthe com- program has been filled? The require-
znlttee,-as did all the other members of ments of that stockpile have been filled,
the committee, but I reserved the Fight and it has ceased to operate. We have
to oppose on the floor the provisions re- that stockpile, and we also have the
lating to barter, because I felt they were stockpile which has been filled through
altogether too broad and would perhaps the barteip of agricultural commodities in
lead us into a great deal of trouble. years gone by. At the present time,
Therefore, the Senator from Io''lva [Mr. therefore, we have two stockpiles which
MARTINI and I have offered the amend- have been filled.
mer which is now the pending question. Mr. AIKEN. I believe the Senator is
Public Law 480 has accomplished a correct.
..,great deal of good. It has helped to dis- The weakness of the barter provisions
pose of our surplus commodities. It has in the pending bill is that under the
helped to pay the cost of mutual aid and proposed changes, we do not have to
other programs.. It has helped to relieve barter for strategic materials. We can
famine and want in many of the poorer, barter for any materials of which the
countries ofthe world: United States does not domestically pro-
.;'Mr. President, I desire to speak on the duce its requirements and which entail
provision of the pending bill which would
change the existing-law relating to bar-
ter transactions. The amendment has
been offered, in an endeavor to strike out
sections 5 and 6 of the bill, because of
"JIie'proposed change in existing .law.
The greatest objection to eeetions 5
and 6 is that they open up barter con-
tracts so as to replace dollar sales. The
agricultural commodities owned by this
Government are a valuable although a
burdensome asset. The pending bill
would in effect almost earmark the pro-
ceeds from sales of commodities which
the purchase of foreign materials, up to
$500 million a year. The Department of
Agriculture would be operating a price-
support program for metals and minerals
produced all over the world. However,
our !down domestic mining interests could
not participate, and any temporary
benefits to them would be more than off-
set by the encouragement to the expan
'Sion of the productive capacity abroad
and the maintenance of tremendous
stocks of metals in Government hands in
dead storage in this country; which
stocks, if the taxpayer is ever to realize
anything on his investment, must some'
.day be utilized in competition with
domestic production.
in that respect, Mr. President, we
know how the enormous amulations
of farm commodities' have depressed
Is there any reason to believe that enor-
mous accumulations of minerals taken
in barter would not also depress the price
of minerals?
Mr. JENNER. Mr. President, will the
Senator yield on that point?
Mr. AIKEN. I yield.
'gram not now nearly $8 billion?
Mr. AIKEN. I believe it Is. ,.
Mrs JENNER. At least, a little more
than $7 billion?
Mr. AIE EN. I am not a member of
the committee which handles that phase
of the proposed legislation, but I think
it Is an enormous figure. If we stockpile
more than we need, it is bound to have
an effect on the prices of those commodi-
ties produced in this country.
less risk of loss through deterioration or
tora a ch r es.
substantially less; g
Mr. AIKEN. I believe they did.
Mr. JENNER. They did, but they
were limited tb strategic materials.
Mr. AIKEN. But they were limited to
strategic materials.
I believe other agencies of Govern-
ment had to take custody of those ma-
terials when they came in, so that the
Commodity Credit Corporation would
not be obligated for storage for so long
a time as it would under the pending
proposal'.
Mr. MARTIN of Iowa. Mr. President,
will the Senator yield?
Mr. AIKEN. I yield to the Senator
from Iowa who, I believe, became the
father of the stockpile as a Member of
the House of Representatives.
Mr. MARTIN of Iowa. The original
creation of the supplemental stockpile
came about in the Agricultural Trade
Development and Assistance Act of 19,54.
it was my privilege to offer the amend-
ment on the floor of the House of Repre-
sentatives which created the supplemen-
tal stockpile under title I, "Sales For
Foreign Currencies." We provided that
the strategic materials-and that was all'
Mr. JENNER. For the benefit of the
Senate, will the Senator from Vermont
enumerate some of the ite}ns which might
be brought in under the barter provi-
sions?
Mr. AIKEN. 11!'Ian to do that very
shortly. -
Mr. President, since many Members of
the Senate are present, I ask for the yeas
and nays on the amendment.
The PRESIDING OFFICER. The yeas
and nays have beep requested. Is there
a sufficient second?
The yeas and nays were ordered.
Mr. AIKEN. I wish to say something
about the argument which has been
made regarding the exchange of farm
commodities for strategic metals or
other materials, to the effect that we
will save large sums on storage. Unless
the Office of Defense Mobilization or
the agency which operates the stockpile
is willing to take the materials foV which
we have bartered, the Commodity Credit
Corporation will continue to have to pay
storage on them until they are disposed
of. It is conceivable that the Commod-
ity Credit Corporation might be obli-
gated to pay storage on the materials for
the next 40 years. It is not likely that
the Commodity Credit Corporation
would have to pay storage on wheat or
corn for more than 4 or 5 years, because
those commodities would not keep much
lodger than that.
I lso desire to point out, Mr. Presi-
dent that the commodities which will
be bartered for up to the amount of $500
million a year could come into this coun-
try duty free. It seems to me that
would affect revenues. So far as 1 know,
the Committee on Finance ofthe Senate
and the Ways and Means Committee of
the House have not considered the mat-
ter to any, degree. I believe the pro-
posal should be out of order on that
ground alone.
Mr.ALLOTT. Mr. President, will the
Senator yield?
Mr. AIKEN. I yield.
Mr. ALLOTT. Under the previous
law did these materials come in duty
free?
channeled into the supplemental stock-
pile and were to be frozen there as an in-_
surance certificate for national defense
use. They were strictly restricted to that
purpose and were not to he taken out of
the supplemental stockpile except by act
of Congress.
The amendment which I offered in
1954 was very strictly limited to that
extent. It provided that the materials
could not be pried out by ny other
method than by an act of C gress.
We thought that was sufficient protec-
tion to the domestic mining industry, to
avoid a clash between the mining indus-
try. and the agricultural interests in
marketing our surplus agricultural
That was particularly guarded against
in the 1954 act.
Certain provisions in the pending
bill-and that is why -I join . with the
Senator from Vermont in the amend-
ment-are very shocking to me. They
do not point in the direction of national
defense at all. They get away from the
critical and strategic materials field. If
those provisions are to go into the law, I
wish to offer an amendment to protect
the mining industry of our own country
against the possible prying out from the
stockpile of -strategic and critical ma-
terials, without the same 'safeguard
which was provided in the 1954 act.
Mr. AIKEN. Mr. President, the Sen-
ator from Indiana asked me if I could
giye him a list of the materials for
which CCC commodities could be bar-
tered under the pending bill. I cannot
do that. It would require a great deal
of research work.
However, I'should say that any mate-
rial of which the United States imports
substantial quantities for our domestic
use would be included in this category.
It would certainly include items such as
wool, petroleum, metals of various kinds,
copra, tung oil, probably extra-long-
staple cotton, pulp, and paper, of which
we import a great deal. I am not sure,
but the category probably would include
cement. It would include rubber, coffee,
and a host of other commodities.
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 CONGRESSIONAL RECORD SENATE 4133
re th
ey could conti t b
nueoe Florida has pointed out some very real
q us,,v opposing this wide-open barter brought in under this provision, Pitfalls' I think there ar
llro al'n
It pointy
th
tth
t
i
.
e o
ou
ers which
a
s
nce the M AIKEN Tht
.r..a is true. The rea- probably none of us have observed as
barter transact;ons would, for the most son we are not producing enough to yet. It would be much safer to remain
part, merely replace . dollar sales, the meet our needs in some instances is that under the present law than to embark
Commodity C edit Corporation inven- we are not even now meeting foreign on some new venture which, to all ap-
tories of agricultural commodities would competition
.
into some
not be appreciably reduced; and there Mr. COTTON. I wanted to make devious c ways, and probably upset vthe
would be.no,saving on storage- costs or that point clear, because it is a danger- normal channels of trade, even in places
deterioration losses, os provision in my opinion. I hope the where we do not as yet suspect it would.
there would, be no appreciable re- Senator's 'amendment will prevail. Mr. HOLLAND. I appreciate that ex-
4ion in Commodity Credit Corpora- Mr. AIKEN. I now yield to the Sen- pression.
tion_agricultural inventories, there could ator from Florida. Mr. HUMPHREY and Mr. JENNER
be Rot benefit to farmers under any agri- Mr. HOLLAND. I note with concern addressed the Chair.
cultural, program likely to be in effect. not only the matters which the distin- The PRESIDING OFFICER. Does the
The legislation would, however, be of guished Senator from Vermont has Senator from Vermont yield; and if so,
great bene t to the international dia- mentioned, but also the wording found to whom?
mond care , an tp other mining inter- in lines 9; 10, 11, 12, and 13 of page 4 of Mr. AIKEN. I yield first to the Sen=
ests all, over the world., except in the the bill, which I read into the RECORD, ator from Minnesota.
United States. The only group in the as follows: "and Other agencies of the Mr. HUMPHREY, Mr. President, I
United States which would receive sub- Government, in purchasing such mate- have listened with considerable interest
stantial benefits from the proposed legis- rials, shall purchase such materials from to what I am sure are very legitimate
lation. would be those few corporations Commodity Credit Corporation inven concerns of my colleagues about the
which customarily engage in importa- tories to the extent available in fulfill- language of this provision. . Perhaps
tion,-and. ea2portation.- of materials ment ofeir requirements." some improvements could be made, but
and commodties International traders It seems to me that means that if the I should like to say most respectfully
would gain what Sur domestic taxpayers Secretary of Agriculture chose to ex- that the word "materials" to which the
end domestic mining interests and other change a surplus agricultural commodity Senators seem to be taking such excep-
domest're producers might lose. for tung oil, let us say, and if the Navy, tion, was used in the Agricultural Act
If we have $500 million a dear to the largest user of tung oil, wanted tung of 1956, which was signed by the Presi-
spend, we should find. some place for it oil, it would purchase its needs of tung dent. Section 206 (a) of that act
which will benefit.2,merican labor and oil which was imported duty free, from provides:
.A,n ericanfarmers, and not let it be in- the Commodity Credit Corporation, and Materials acquired by the Commodity
furious. it would be required to do so under the Credit Corporation
As I have said, the State Department wording I have just quoted, because the exchange ogr culturalcommodities~or pro-
Strongly opposes these barter provisions. words used are "shall purchase," instead ducts, unless acquired for the- national
The, Department of Commerce advises of showing consideration to domestic stockpile established pursuant, to'the stra-
me that it is?strolrglY opposed to them. producers. Is there any justification for Wegicand critical material stockpiling act
If the amendment which I have proposed that conclusion? shall be transferred to the supple-
is approved, the barter prbvisions of the Mr. AIKEN. It is my interpretation mental stocAgri r ode the e established by section 1nt
Development
law will remain as they are now, that the other agencies of Government and Assistance Act of 1954.
I believe tl3e Department is negot:[at- might be required to purchase such ma.-
ing,. to the extent of about $50 million, terials from the Commodity Credit Cor- Therefore the word "materials" has
for the barter of manganese and -other poration rather than from their normal been a part of the law, and the supple-
commodities on the list which we still sources of supply in this country. In mental stockpile has been inclusive of
heed, the, case of tung oil, the Senator from that word. Therefore all the fears that
Mr COTTON and Mr. HOLLAND ad- Florida is well aware of what those have been conjured up in an effort to
dressed the Chair, sources of supply are. distort the meaning of the amendment
The PRESIDING OFFICER. Does Mr. HOLLAND. It seems to me that, should have been brought up for the past
the Senator from Vermont yield; and if while under the earlier law as to stra- 2 years.
so, to whom? tegic materials, such a provision would Mr. JOHNSON of Texas. Mr. Presi-
Mr~. AIKEN. I yield first to the Sen- not have been dangerous, because we dent, may I have the attention of the
ator from New Hampshire, and then I are piling up strategic materials for the Senator from Louisiana and the atten-
shall be glad to yield to the Senator defense of the country, under the word- tion of the Senator from Vermont, as
from Florida., I am about through. I ing of the pending bill whereby the Sec- well as the attention of all other Sena-
shall try to be brief, as I heard some rotary of Agriculture is encouraged-and tors interested in the subject under
very good arguments for the amendment perhaps mandated-to exchange surplus discussion?
this afternoon on the floor of the Senate, agricultural commodities for any mate- We had planned to continue in
I am sure other, Senators will desire to rials of which we do not produce enough session until about 6 o'clock this evening.
----take some time to .discuss it, to supply our own needs, other agencies I would hope there would be no rollcahs
I now yield to the Senator from New needing such materials would be required after that hour. I wonder if it is agree-
Hampshire. to buy them from the Department of able to the Senators on both sides of the
Mr. 'COTTON. My question will be Agriculture, even though they Were aisle if we continue to discuss the pend-
very brief. If, under this barter provi- brought in duty free, and even though ing bill as long as it is desired to discuss
Sion, commodities can be imported on they came from offshore, it, say until 6 or g: 30 or 7 o'clock this
the basis of the fact that they are being It seems to me that we are striking a evening, but that no votes be taken,
imported into this country at the pros- serious blow, in some instances, at the until tomorrow, so that Senators who
ept time, then even though the reason agricultural interests of this country, have been standing by may know.
we are importing them is that some par- and at many other industries, including Mr? the yeas . Mr. President, may we
ticular industry in this country is not the mineral producing and petroleum in- have the yeas and nays ordered on the
producing becauso At cannot compete, dustries, or we might do so under the bill?
such commodities could still be brought provisions of the bill. I wonder if the Mr. JOHNSON of Texas. The yeas
in, Could they not? distinguished Senator agrees with that and nays have been ordered on the
Mr.-AIKEN. I think that would Ibe conclusion? amendment.
perfecffy true. I ha,ye in mind the Mr. AIKEN. The Senator from Ver- Mr. JENNER. On the amendment. I
veneer industry, which claims to be In mont is very much in favor of bartering ask for-the yeas and nays on the bill.
trouble now because of the large imports our surplus commodities for other com- This involves $31/2 billion. I believe we
cbmiu it}t phis coirrltry, modities when such barter is in addi- should have the
and nays ordered
"Mr. COI X. It might be true that tion to business which would otherwise on the bill. I so request.
because we are now importing finished be done. I feel that the Senator from Thexeas and nays were ordered.
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 , 4134
CONGRESSIONAL RECORD - SENATE March 18
= Mr JOHNSON oI 'Texas. i anuuiu ferred to the supplemental stockpile estab-
nke to work out an arangement which fished by section 104 (b) of the Agricultural
VMved. is wnat 1 nave ausav a .. ws. 1954.
be. to the senator from Vermont?
Section 206 (b) reads:
ill
b
.
e on ~?
Cl(1Se speaking there 1s to
link it would be agreeable. it may Credit Corporation as a result of barter or
e difficult to get a quorum after 6 o'clock exchange of agricultural commodities or
products may be entered, or withdrawn from
,,ibis evening. I do not know how many b/arehouse, free of duty.
Senators may wisli to speak after that
time. I should like to get a vote on the The words "free of duty" have been
bill as early as possible tomorrow. on the books for 2 years. It is only -free
Mr. JOHNSON of Texas. I will coop- of duty from this point of view: It is a
grate with the Senator completely on governmental agency which acquires the
and thereby it results in a
I materials
`getting a vote on the bill tomorrow.
, do not believe we would be able to get saving to the governmental agency. It
it until a late hour this evening. Our does not, however, mean that the gov-
schedule is such that we do not have to ernmental agency passes the duty, on to
have, a vote on it today. If it is agree- the contractor. They reduce the price
able to the Senator from Verm pt and paid him by the amount of the duty.
to the Senator from Louisiana, we will I add that the fears which were al-
plan to start voting as early as possible luded to a moment ago, relating to the
tomorrow. Does the Senator from Ver- directive in the law which require the
1hont have any suggestion? other agencies of government to cooper-
Mr. AIKEN.' No. I do not know of ate with the Commodity Credit Corpora-
-any other speakers, but I cannot say tion in acquiring these materials for
positively, beeause there may be speakers their use, is the very language in the
oh both sides- of the question on both present law under which we have been
sides` of the aisle. operating, and under which wehave not
the American economy in
i
ng
1tIr JOHNSON of Texas. Then I shall been injur
Mr. MALONE. The Government has
announce for the information of the any way.
Senate. so far as it is posible to control would rifer mh friefldly tics 5 5 imported`gooodsIfree of duty since early
-
-
-
ta
--? ___--
_
ony ~. --
this evening. of the tes
t
jr. JENNER. Mr. President, I should entitled "Policies and operations under say to the Senator tha as the Senator
like- Public Law 480," and the statement knows, I have been very sympathetic in
Mr. HUMPHREY. Mr. President, I therein of the Hon. Hatfield Chilson, terms of his efforts to give some legiti-
Under Secretary of the Interior, pre- mate protection to our mines and min-
t e
S~yy - - u
i7f.'natOr from Texas. .,shouluTRADINGnoSURPLUS GRAIN FOR'MINERALS MEANS it was ruled during World War I that
orf JOHNSON to Texas. The Seen REMAKING INDUSTRIAL MAP OF UNITED STATES whenever material was brought in by
: or from Minnesota was speaking when _ - -_ x-: -;11 +1,- +- rtnvernment for Government use, the
The PRESIDING OFFICER. The g
Senator will state it. pile provides an opportunity for mining need to secure any of such material from
Mr. JENNER. Did not the Senator and mineral activities to receive prices across a major ocean. I appreciate the
from Vermont have the floor? which are profitable, and because work assistance of the Senator.
HUMPHREY. I yielded to the markets have been stabilized and which To clarify our discussion on duty-free
b t rned down roducts imported by the Government,
did not yield the floor. sented by Spencer S. Shannon, Director, eral interests of our country.
Office of Minerals Mobilization, Vermont : Did not the Senator Mr. MALONE. i appreciate it.
from, Vermont yield the floor? , his vit-ew
M. HUMPHREY. I did not yield the meat of the Interior. It states his view Mr. HUMPHREY. I commend him
floor, Mr. President. I yielded to the very clearly in this one sentence. "It for all he has done. I remember that
Senator from Texas for the purpose of is clear that this program can be of hearings were held when very few per-
2riaking an announcement. great assistance to these industries." sons paid much attention to them.
Mr, JEI' NER. Mr. President, a par- That refers to the minerals industries Mr. MALONE. The reports on the
Ilamentary inquiry. and the mining industries because tak- Western Hemisphere are still available
in minerals for the supplemental stock- and show conclusively that we do not
Mr. JENNER. I thought the Senator Senator Yield?
one pocket at some length at the
"Prom"Vermont had the floor. Mr. HUMPHREY. cyI yieldilra to point be much more simple and time.
d n
i
h
e
s
not know that I cared to hold it. out to the distingu -
If l had it, I yielded it. his reasoning may not include the whole duty. But we never got that point across.
clear during So far as the duty or tariff is con-
,,,
Oquew$, unless acyuucu - w.----?--
giile established pursuant to the Stra- many other mines are down-copper
j., a r , , of a.o.,l:r,re Ant mneh rari,Ieea in production-all due to Senator from Minnesota yield?
s it ,Corporation as a result of barter or definitely through cheap impors.
~kiCcan?e of agricultural commodities of mhe ,;?? i,,,,i t?pectin. mercury, and That is the chief danger of the bill
The PRESIDING OFFICER. The The mines have been s 1934 Trade Agreement Act-to trade
ena.tor from Minnesota has the floor. much reduced in production by our trade the any industry to further his foreign
Mr ,HUMPHREY. The Agricultural practiLes; therefore, when the bill pro- policy.
ct of 1956 refers' to the transfer of vides that the grain be traded for any
bartered terials to the supplemental material which is not produced in sufli- The duty or tariff as rearranged under
t reads: cient quantity for domestic use it means that act-so-called Reciprocal Trade
oak 1le-.
teriais acquired by the Commodity the mining industry can be down in- Act-bears no relation to the difference
In cost of production here and abroad.
4"1ar {Irder, Mr. President. Who nas the the otner-anu wuulu uc .~a~ ~~-??~~- pointed to reduce domestic production
oor than the present practice. h t down or through the President's authority under
AW, HUMPHREY. I shall not take story. The ruling was
lfeh time of the Senate. I merely World War II-the early forties-that cerned, there is no change here. The
shed to correct the RECORD the Government, does not pay nlra. d cuty e wdanger, however, ill be brought inlthrough tsuch trades,
Approved For l elease,2QQ } / G =F RP4l-OQ 6 R000300010028 7
cheap labor-produced foreign imports.
So under this act as now written, they
could be kept closed through trading
surplus grain fpr such products. Under
that policy the mines would never open
again.
It would remake the industrial map of
this Nation.'
Mr. HUMPHREY. I do not want to
argue the basic philosophy involved
with the Senator from Nevada, because
he has a very strong point of view and
is a man of very deep convictions on
this subject. He has done great work
in behalf of the productivity of our
mines and their solvency as a part of
the economy of our country. I am only
saying to the Senator regarding the
argument that has been made before,
that we are not changing the law-
Mr. MALONE. The Senator is not
changing the law.
Mr. HUMPHREY. Whether the law
is good or bad, the duty-free provision
has been in the law right along. We are
nct talking about disposing of these
goods in the normal channels of trade
in the American market.
Mr. MALONE. Mr. President, will
 ` ylulu' Mr- HUMPHREY. I have
great re-
WZ HQLLAIYD, Everyone recognizes spect for the Senator's viewpointwe. But
the - good, ,and patriotic motives of the it is my recollection that when -
Senator from Minnesota. I do not think amine the act of 1956, which was
anyone is questioning them, Certainly amended to include strategic and other
I am not, but I call attention to the fact materials, the reference is to strategic
that. the statement he just made was too materials that shall be acquired under
broad.' the National Stockpile Act. All these
If the Senator, will look at page 20 of the materials shall be available for the sup-
committee report, he will find that the plemental stockpile, provided under sec-
present provision of existing law is not tion 104 (b) of the Agricultural Trade
nearly so,broad as the one he is nrn_
4135
am calling attention to the fact that I
think the committee bill, as reported,
goes- 11111ch from Minnesota further
would than
want to go-cer-
tainly much further than the Senator
from Florida would want to go. I am
trying to be constructive in my sugges-
tion.
Mr. HUMPHREY. I felt amendments
were needed to this section of the bilL
I do not say they are not. But I do not
-agree with the position taken by the De-
"
Commodity Credit Corporation shall be con-
sidered as assets of the Corporation and tither
agencies of the Government, in purchasing
strategic materials, shall purchase such hna-
terials from Commodity Credit Corporation
inventories to the extent available in ratio fulfill-
ment of their requirements,
The wording of the present act is
broadened in. that instead of "strategic
Materials" the wording proposed is "ma-
terials."
Mr. HUMPHREY. It says "materials."
Mr. HOLLAND. The __Senator from
Minnesota and the committee have in-
serted in the bill "materials" for "stra-
tegic materials" in every place, so the bile
` before t,_e
' -
Se
^ o ~??~ ~~=+.u+VUicy - -__ ?" -?-? +_ tvii-' riVLr1HN1). I am not entering
Credit Corporation shall be considered as bartered for and which go into the sup- tinto any disputes or contentions be-
assets of the Corporation and other agencies plemental stockpile.
to
weeB the Senator from Minnesota and
the Government, , sin purchasing
materials such ma- Mr. HOLLAND. All materials bar- Mr. Berger, whom I do not happen to
ierials, shall purchase such materials from tered for.
Com di
mo t
k
uri
section 206, including strategic and
thMr. HOLLAND. Credit
I m simply t calling
Mr. HUMPHREY. That ii.; correct. other materials. the Senator's atten u,h;nh
If the Senator from Florida. will ? ,,,.:E Mr. TTnT.T.Arrn a... tion to a. fart
y Credit Corporation inventories Mr. HUMPHREY. They are the same
to the extent available in fulfillment of their materials as were made available
nMr. HUMPHREY. He isthe head of
requirements
d
,
en one
takes section 206-.(a) cf the Agricultural
Act of 1956, which applies to Public Law
480, he will see that in 1956 the act was
amended to include strategic and other
materials.
Mr. HOLLAND.' I understand; but
the provision for the purchase of the ma-
terials by other agencies of the Gov-
ernment is confined entirely, under the
last enactment, the law now existing, to
strategic materials. Other materials
were not included. It is that to which
I-am inviting the Senator's attention, in
the wording I have just read into the
RECORD.
If the Senator from Minnesota. will
read from line 4 to line 12
inclusi
i
,
ve,
n
the top paragraph on page 20 of the re-
port, which is the compilation of the old
wording and the new wording of (section
303, he Will see that the point I have
made is correct.
In other words, the change now pro-
posed ;would not only permit the pur-
chase of materials generally, whenever
we do not produce in this country all of
such material we need, but would allow
words
other materials" are broadening one hand, running footloose, and fancy
in terms of the ability of the Secretary free, but now are embedded in concrete.
of Agriculture to barter. He could bar- We are attempting to jar the Depart-
ter for more than simply strategic ma- ment loose from a fixed position of com-
terials. He could also barter for other plete inertia. The Department is refus-
materials, and those materials would be ing to comply with the provisions of this
available for the departments that were section of the law. They are refusing to
working with, the Secretary in the acqui- barter. They are refusing to barter at
sition. the expense of the people of the United
Mr. HOLLAND. If the Senator will States; at the expense of the taxpayers;
read subsection (b) of section 236, as at the expense of agriculture.
printed on page 20 of the report, he will The Department of Agriculture is
find that the duty-free provision under simply refusing to move, and their rea-
the existing law applies only to strategic son for refusing to move is that they are
materials, whereas the Senator proposes afraid of what happened prior to May
to apply that provision to all materials. 28. Mr. Berger knows I am telling than
Mr. HTTMPT-TPu V 'raw ,- _
iue TO n~ge this addition
wh
law, the duty provision does not
-P lily Nruposea law as drafted goes very much
to materials other than strategic ma- further than we could Afford to go. I
terials. hope a further amendment will be sug-
Mr. HUMPHREY. I would acce
t a
p
n gested to clarify this point. I shall not
amendment on that point. support this section of the bill as now
Mr. HOLLAND. That provision, I drawn. I do not believe the Senator
think, is good, whereas the bill as re- from Minnesota would, either.
ported very clearly applies the duty-free Mr. HUMPHREY. I think the Sena-
provision to all materials, whether toy's point is worthy of our considera-
strategic or not. tion and of adjustment, if such can be
Mr. HUMPHREY. I do not think the done tomorrow.
Senator can draw that conclusion at all. But, by the same token, the defense
Mr. HOLLAND. Let me quote for the which is offered for the status quo is
RECORD the provisions of the existing indefensible. The defense which is be-
law. Section 206 (b) reads as follows: ing made of the existing provisions for
Mr. HUMPHREY. We do not amend barter is a defense of surpluses. The
section 206 '(a) of the law. very same Department of Agriculture
Mr. HOLLAND. Section 206 (a) of that complains about its surpluses and
the law is amended by the wording of refuses to liquidate them complains
the committee bill. Section 206 (b) is about the cost of storing surpluses and
also amended. Section 20f (b) in the refuses to sell them. The very same De-
present law reads as follows. partment of Agriculture that misused
Commodity Strategic materials ac fired by the -the barter program prior to May 28 now s barter or y Credit Corporation a gricultural tom result Of f refuses to use the program at all. That
ties or products may be entered, or with- is the record. Those who will study the
drawn from warehouse, free of duty, hearings will find that the Department
The pending measure of Agriculture cannot justify its un-
provides an willingness to move.
amendment to section 206 (b)
so
-
-
u -uu+
-
make -
the Senator from Minnesota yield ur
it the duty Of_ other agencies of Mr . HUMPHREY', The Senator from yield fur-
the Government to purchase them from Florida is correct. Cher?
the Department of Agriculture, so far as Mr. HOLLAND. I thank the Senator The Mr. President- _
the volume accumulated would permit. from Minnesota. The PRESI DING OFFICER. The
It seems to n- a that that is a tom- Mr. HUMPHREY. I 'thank the Sena- Senator from Indiana is recognized,
pletely different provision from that tor for his correction. Mh? HOLLANDom to I asa the distin-
which is in the present law, which con- Mr. HOLLAND. The distinguished order that I may makedaafurther ecom-
fixes the purchases entirely to strategic Senator from Minnesota is not to be ment, if the Senator from Indiana will
materials, blamed, ancl, I am not blaming him, T h..
,
so
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Approved For`IeFeie004/fl51 t3=t'`91j-t05fi00~'
.1.ECORD SENATE
 A 'roved ForRelease 2nnA/05/13 CIA-PnPQ1 _nnQI cPnnn nn i nn28-7
pp -March 18
er CONGRESSIONAL RECORD - SENATE
r Benson ereiy
-
e sub
Secte is time Mr. floor, Mr.
I am glad President, o Yeld. jct to Hong ands ea chi ng tudybby the preference, when asked forhis opi ion
that I have 11 the h on Senate bill 3420.
cretary not
- if the
OLLAND. Mr. President, the Congress. favors
I
sometimes
s grant
Mr. H
on-
ti n an~ ofrom f b ten and has t ied hiscbest ciined orbelliieve, that the Congress has noticeablyeeager to have Congreture
so
to help of bar
Thisrisyaocompanion b ll to S. 3149, long a period, who is eager toHave it?
a help k sit sound. But theeSenaor gone
a way as to make thority of the Export import Bankaby few'facts. limit myself to mentioning a
frtom u- I from Florida in favor
the
bank
that
ante of barter t
m fmthe nearly.$4 od'ty Credit iCorporat Corporation 'Z+-s agri- t2 billion,
Com dis-
f
n
t
at
o
s
fu
erpar ndfor e
t
road, nearly
more difficultioditiesUwh ch are not ow reinvesting oun
,CUltural comm ange in surplus supmiiyn, odtiese nor clis he in of co "Credit tons initdevelopment paid fort private $1 billion was spent fors wheat and flour. poal of farm agricultural co In the 7 months of the fiscal year 1958
,: .,,+;ac for enterprise in foreign countries. a f
,,,,,;~h we have reports by countries,
or
a
other industries in ui s rod- ~ ~-----
generally-not industries producing agri- and I understand it will
cultural commodities-by the unwise use in the Senate immediately after the went to Poland and Yugoslavia.
Yet, Mr. President, the United States
that we pending bill is disposed of.
is supposed o be opposed to communism.
i
n-
that reason
d for an
The United States has been spending
of barter. It is for have engagedgaged in this colloquy. Senate_ bill 3039 provide fight
I crease of $500 million in funds for the * and billions of dollars to
esident
ve
P
l
,
r
REY Mr
,. . and increase 0
ma
earl 1958 oe nenthird months of the of the wheat
,say most respectfully to to the very t
ful $1 5 billion in the funds for the fiscal
l
p
he
. Zorida that he has been are de-
y
bill would add an authoriza-
It seems to me that the majority of year 1959. and the committee could well accept then ugh +,^The new
he $1.5 billion for the fiscal bat go at thise time went to Poland and
on t
f section 206 ana suoe-va
year
for 1
0t10il (a) o ricoaua.? - 206. 1 woul
1958, nearly three-fourths of the cotton
fund
ore
only of ecti6n
on page 11 of the
join the Senatori n such atp on thHe saids b as appeard
~p ? Senate committee report on Senate bill Unit d Statesais s ppos dlto- be opposed
-
4of porStion to engage In interna-
r; +;sic to the Committee on Agriculture
in farm products will - try~and teadenl ahrnad otfarm surpluses
..,4 ,,,_;+,nnt. havina g printed
uld add $2 billion to a to be a plan for tempo ra Y dollars to give our enemies a
l
rest the credit of our Government. war-ravaged Europe to get off its knees fort in the form of food and fiber?
Rot once -;- - , n,ara moved
ection ra reign ,, g Senate.
communism2
orthe `disposal abroad of agricultural programs commenced as "temporary:" dent? Are we opposed to
lines, was reached during the call of I remember when, several years ago, the We spend $40 billion for defense, and
calendar, was made because the bill Marshall plan was begun. It was said then turn around and spend billions of
4-V
iabilities r aid to help id and com-
~? - .,.....,..-" __ - vv aiy ..~ ....,......_ .. _ -..
E + g ' 1 V r r . . Presiden woo
t, the ob- of course, Mr. President, all the or- .of this sort discussed on the floor of the
ed when Senate bill 3039, o rams and all the foreign-aid q Whom are we for, Mr. Presi-
o uuuva , --- of another .pl.- ,.,.. .. ..---
l uioui cud . .r ?-~
er" earlier bill. fAgricul- of the American people's income, this
o rig' hearings have been printed. see a so stthat ated the Secretary o was gifts to other countries, not trade
c +a..r.+--?.,.--- -----
W tnorOUgiuy avua i
-oat.q, r] by this bill. it would have been with
? r.en, dun +,. won +ham nramptlY. and get the
sc~ example, onFebruary,i WV----__ ~r can Government Support o or- For ??,i ?nivprsities. the ,,tee support for cotton at 81 percent forms of governmental interference i
een referring to on Y a some instances, the move-
be Used for new kinds of in- modities, under Public Law 480, results, tries cannot pay !-
t6 o
st But
activity-for more State- under the current escalator proviso th of
countries tare means ubsi he g wages f above
-, "'~"Fraxii l by agricultural, labor, legislation, in higher price supports
_.,,..,,+ +i,a? can afford. or we are pricing
`funds; which foreign countries pay This program payments are made in foreign cur-
Rese farm products-and we have suppo t andre prfor oduction readjustments Prim rencies. We are told the foreign coun-
few speced nt of basic coin- d liars
c
bill which increases
e credit of the United States- ply of farm products ixTto better ba ante by congress in foreign aid legislation.
et demand."'
it m--I,
the charges which would, as he said " ring the
t to the limits so carefully worked out
"""nations?_ e
moo`e fled to increase both disposal of farm products abroad, but I do not need to go into that subject
n'`ald currency "operations for only as part of something like the farm, all know where our
night, food, and fiber bill-Senate bill 3049. coP aing s bcgoing and where our debt is
0 or--16-American Governmen The Secretary endorsed an increase in set current spending, or reduce our
s 'ions'nthe currency of friendly Commodity Credit Corporation funds, for d bt
es
Rural surpluses? tinually under the shadow of price-deer plemental foreign aid.
Should we add more billion - surpluses.
None of the money comes back to off-
None
The CuLLM10 y with syriu- es Instead, we are red
or Irving avVayto foreign'coun rigs it is not desirable to keep farmers con-
sing to 35 countries, in what is virtually sup-
or instance, do we need to in- .his comes at a time when the cotton United States Government out 01
fly $ 5` billions the funds avail- dit Credit Corpora- industry is having difficulties competitively dubious business. and foreign mills. 110tirig these funds
at`s what this bill would do by w
 Annromeid' Far Rel,ease,2 /D5/o13 ~CIA-f2D?g I_-) G E 10 60 02 -7
Who decides what would be dangerous
thoughts in any book distributed
abroad?
Do we weed out pro-Communist books,
or do we weed out books which stress
liberty, private enterprise, decentraliza-
tion of power and government under
law?
Who picks the fortunate writers, and
Why?
Mr. President, if this is not censorship
by smiles instead of frowns, what is it?
I can understand why the Soviet Gov-
ernment wants to pick and choose the
books she sends to foreign libraries. But
why should we imitate her?
According to the Senate report on
S. 3420, page 6, another portion of these
counterpart funds is spent for "procure-
ment of military services." Does that
mean we are paying the salaries of for-
eign armies?
Another curious item is the reference
to "cash transfers to the armed services
or to schools to supplement the diets of
the services and of schoolchildren." Are
we providing insufficient food allowances
for our fighting men, and supplementing
them by this circuitous route? Or are
we providing additional rations for the
armies of foreign countries?
Does this, too, include Poland and
Yugoslavia?
Mr. President, I think we should take
a second look at the types of programs
which were authorized when we passed
Public Law 480. Many things have
changed even in this country.
Mr. President, there are 8 types of
programs listed in the law. One refers
to agriculture, and another refers to pri-
vate trade. That is what is involved in
Public Law 480. What are the others?
The others are:
(c) To procure military equipment * * *
among nations.
(d) For financing the purchase of goods
and services for other friendly countries.
(e) For promoting balanced economic de-
velopment * * * among nations.
(f) To pay for United States obligations
abroad.
(g) For loans * * * madethrough estab-
lished banking facilities of the friendly
nation from which the foreign currency was
obtained, or in any other manner which the
President may deem appropriate.
(h) For the financing of international
educational exchange activities.
Is this farm aid or international for-
eign policy?
Section 2, describing the policy of the
act, says in conclusion:
It is further the policy to use foreign cur-
rencies which accrue to the United States
under this act to * * * encourage economic
development, * * * to promote collective
strength, and to foster in other ways, the
foreign policy of the United States.
We have spent nearly $4 billion on this
Approsed For Release 2004/05113: CIA-RDP9'1 0955ROOO3O001002
used support fhe defense forces of our . I also do not want the American Gov- What books? What periodicals? Who
a111e5,R and the remainilg30 percent, is, ernment to help pick the true exponents chooses the good books and rejects the
planned for meetinggTtfnlted States expenses of American studies, or American edu-
ovelses find expanding certain United States bad?
95 - CQNGR)~SSI(;:e
__
., _. _ ~_.,_., _____ _~-- _-_ v..++.a rrv uvv ?~wrc uacu ulluzu iUiiua
,61
h reallotmgiit q f $25 billions of the China. But I da- not know any good last year to add to our bank deposits at
al paid for our farm,,products. reason why the United States . Govern- . home when were running so close to the
The Senate report-on s, 3039 states: Dent should put American GQvernment edge?
bait 64 percent of the total will be used funds ,into an educational enterprise
Part of the funds is used for the
,for eel is dgvelppment purposes in im- within the conflnes.of a friendly foreign translation, publication, and distribution
poittin countries, about 10 percent will be nation 11
progrefns cational techniques, or help carry on
re lrt ' Workshops kike some of the disguised
The quotation is from the
, lx -propaganda agencies we have seen called
Let, us look. again by that name in the United States.
cololilic development Is a vague, in- _ I question also why the Congress
teresting, mystero'us program, Which should enlarge the term "strategic ma-
keeps growing all the time. terials" to- include "materials of which
1' mergency_ economic aid in. Europe the United States does not produce its
is Vis finished, and hard military requirements."
alcl to.antl-Cpmnlunist nations is,shrink Is that a legal term, Mr. President?
lug, we could be nearing the end of much I see the Senator from Minnesota dis-
of this ove;seas,spending cussing this matter with the Senator
aut "instead of cuixting down our aid, from Florida. Maybe they can work out
so `,cared, economic development is, tak some other kind of terminology by
fug up the slack, and the need for that tomorrow.
will never, come, to an ,end until the 'bil- What is meant by the term "materials
lions people in undeveloped nations have of which the United States does not pro-
everything they want. duce its requirements," and what is
Defense support is another name for
t b
"
t
t
i
t
i
l
"
mean
y
s
ra
eg
c ma
er
a
s
?
'eoonoiilio aids Tlie gpi se glumhtee on Is it one of the soft cobwebby expres-
Legislative Oversight- "has recently re- sions behind which Government agencies
Porte what tie General ACCOUIltilcig Of . "with unlimited funds can do many things
flce #p3and w~ell< it?looled into defense. about
which Congress cannot even
suppoit. That' is a ,pretty word. guess?
What is meant by payment for United ? .-Why the provision that these unknown
State exxpenses overseas?, commodities are to be admitted duty-
ow?, many of these- vast . foreign free?
bus ding programs are really needed for Is all this tied to the rapidly develop-
Ameraxl purposes, and how many are Ing mesh of governmental and interna-
really construction funds for a perma- tional controls over our foreign trade,
ngnt flreign aid, agency? like GATT?
How.,much of the Zap@ssarit travel by We know how often the wishes of for-
our officials serves any national purpose? eign governments come first, in our par-
The use Qf-counterpart for expansion ticipation in international economical
in "certain,.?United Stages programs" is controls. -
also ,,Ateresting. This money is to be I hope our cotton producers will listen
spen? to pay for two things. _ One is to to this:
expan "the educational exchange of The Senate report on S. 3039 tells how
agricultural leaders; labor leaders, jour- Spain preferred our long staple cotton
realists, and civic leaders," over that from the Sudan, even when it
It is therefore asupplemental -appro- was more expensive, but the State De-
priatioa for the exchange of persons , partment barred agreements . to give
programs of the State Department, away our long staple cotton, "For fear of
Sherd Congress permit CCC or any getting in bad with Egyptians and
elcecutjve_agehcy to enlarge, by indirect Sudanese."
allotments, programs now_carried on,by What kind of help do we give Amer!-
, L.3e"partment or jTSIS, without can agriculture if our farmers must de-
direct congressional appropriations? pend on the friendly nod of Nasser to
The ether ed)xcatioxial purpose is giv- sell their cotton?
ink co unterpart funds for-" chooss, col- What is wrong with the historic
t
u as no
American studies o ,.0merican educa- entangled in business decisions, and
tlor}al,techniques." agriculture and trade do not become tails
Is it wise f9r us to operate within the to the State Department kite?
'sovereign ter ltory of, friendly foreign Our people came in sailboats over the
countrgs ..by having the , United. States trackless ocean to get away from busy-
'Government subsidize schools, colleges, body governments which tried to guide
`arid ut versities, in their tgrxitor:ies? . their every move.
Are p ans already worked out for spon- Why is something right now, which
gorship of such, colleges and workshops was so very wrong then?
by some of, the_ideological groups Which Let me mention some other items
ha
l
f S
bQ
,t g iI; uen a public opinion whicllaroused my curiosity.
heH in favorf thei aims?
These counterpart funds are deposited
-?aD very much In favor of gifts by in over.sea_c banks
.
the Near mast Relief, which gave mag- In fact American contributions to the
 Approved For Release 2004/05/13 : CIA-RDP91-00965R000300010028-7
CONGRESSIONAL RECORD- SENATE March 18, 1958
9 days after the administration finished
presenting it to the Congress.
In fairness to the House of Repre-
sentatives which has not yet acted on
the proposal-I will say the administra-
tion has not yet appeared before that
august body to explain its request.
That was the subject which was re-
ferred to the Committee on Post Office
and Civil Service.
'The two administration bills which
were referred to the Committee on
Banking and Currency were handled as
follows :
The administration request for addi-
tional FHA insurance authorization of
$3 billion per year for the next 5 fiscal
years is a routine, business-as-usual
recommendation. There is nothing
startling or unusual about this request.
The FHA insures private mortgage loans
and it is a profitable activity for the Fed-
eral Government. The Congress raises
this authorization, as required from
time to time, with no fuss or fanfare,
and with no partisan disagreement. It
is possible that the delegates to the Re-
publican women's conference were taken
in by this phony claim of vigorous ac-
tion, but I am sure that the minority
leaders of the Senate and the House
must have chuckled silently when the
President urged them to act promptly
on this request. What makes the situa-
tion more laughable is that the proposal
was not sent to the Congress until March
4, and probably would not be here yet
if the Democratic leadership of the Sen-
ate had not acted so swiftly on truly
emergency legislation in the housing
field-in spite of determined opposition
from the administration.
I may say in that connection that the
emergency housing bill was acted on by
the committee, was reported to the
Senate, and was passed unanimously by
the Senate, an action which has ben
commented on very favorably by the
press. If not unprecedented, it is a
splendid example of prompt action to
put people to work.
The third proposal discussed by Mr.
Alcorn shows a tragic ignorance of na-
tional.events. For Mr. Alcorn's informa-
tion, the proposed increase in lending
authority for the Export-Import Bank
was handled about as swiftly in the
Senate as anyone familiar with the leg-
islative process could possibly hope for.
Hearings were held and the bill was re-
ported to the Senate within "8 days after
it was introduced. The bill passed the
Senate on March 3, and would be out
of our hands, except for the fact that
a member of the President's party has
moved to reconsider the action of the
Senate in passing the bill. This motion
for reconsideration is scheduled for con-
sideration in the Senate this week, and
Democratic members would appreciate
the help of the President and Mr. Al-
corn In defeating or tabling this motion.
I have spoken at some length on this
subject because I am disturbed and dis-
appointed at the lethargy and deception
so apparent in the administration's at-
titude toward the present recession. It
is understandable that a Republican
President would assure us that pros-
perity is just around the corner; but
it is distressing that such an attitude
should be concealed by spurious claims
of concern and action. I urge the ad-
ministration to admit that the economy
is weakening and to cooperate 'with the
Congress in serious measures to stimu-
late quick recovery.
As one of the very newest Members of
this body, I feel a great deal of pride in
the promptness with which the Senate
has acted during this session. I think
it is remarkable. I think it is a fine
thing that the' press has compared the
action of the House and Senate to date
in this session with the action of the
Congress in the stirring first 100 days
under Franklin D. Roosevelt.
I think it is most unfortunate that
our good friends in the Republican Party
have decided to criticize the Democratic
Party for inaction at a time when, above
all, the Democratic Party in the Sen-
ate and the House has shown the Na-
tion a marvelous example of how to act
promptly to put people to-work, and to
solve problems which need solution.
we are asked to-authorize higher
.7eve s of spending for the rest of this year
imutiations. There is not a man living
today who knows what shape our Treas-
~" 3liy is going to be in 6 months. from now,
let alone in 1960.
'Wfth the $2 billion to be added to the
borrowing power of the Export-Import
Bank, this is a total of $5.5 billions for
foreign economic operations that, the
Senate is to consider this week-today
and tomorrow.
We are adding more new obligations
than Congress recently added to the
borrowing power of the Treasury.
Is this responsible or irresponsible
upending?
Mr. President, there will be a yea-
and-nay vote on the bill. I hope some-
one can answer some of the doubts I have
raised in these remarks before I vote.
LLEGED LACK OF COOPERA~
B DEMOCRATS IN CONGRESS ON
LONGSTANDING PROPOSALS BY
THE PRESIDENT
Mr. PROXMIRE. M. President, in
this morning's Washington Post there
was published an article which reported
on a speech which was delivered re-
cently-I presume yesterday-by the
chairman of the Republican Party, Mr.
Meade Alcorn.
Mr. Alcorn decided to attack the Dem-
acratic Party in an unsual way. He ac-
cused. the Democrats in Congress of
dragging their feet on longstanding
proposals by President Eisenhower.
I wish to take this opportunity, be-
cause I am in a peculiar position to re-
fute this charge by Mr. Alcorn, to make
a correction, and to set Mr. Alcorn
'straight on this subject.
Mr. Alcorn is quoted as saying ' that
some of the pending proposals are: a
request for authority for $3 billion a
year for additional insurance of FHA
iriortgages; ''a $2 billion program for
modernization of post office buildings
and equipment; and a $2 billion increase
in the lending authority of the Export-
Inlport Bank.
I am a member of the Committee on
Banking and Currency. I am also a
member of the Committee on Post Of-
fine , and Civil Service. It so happens
that those committees deal directly with
all three of the bills mentioned by Mr.
Alcorn.
Let us consider first the Post Office
charge. , Let us get the facts as to
whether or not the Congress has been
dragging its feet.
The Postmaster *General presented
this program on Wednesday, February
12, for the first time. OnFebruary 18,
Tuesday, the Postmaster General ap-
p'eared before the committee in a wind-
lip session. On 'February 19, the sub-
committee met and reported to the full
committee which met on the 20th and
reported the recommendation to the
Senate,- The Senate started debating
tbe, proposal on the following Tuesday
and approved it on Friday-just exactly
ENROLLED BILL PRESENTED
The Secretary of the Senate reported
that on today, March 18, 1958, he pre-
sented to the President of the United
States the enrolled bill (S. 2042) to au-
thorize the conveyance of a fee simple
title to certain lands in the Territory
of Alaska underlying war housing proj-
ect Alaska-50083, and for other pur-
poses.
Mr. PROXM?RE. Mr. , resident, if
there is no further business to come be-
fore the Senate, I move that the Sen-
ate take a recess until 12 o'clock noon
tomorrow.
The motion was agreed to; and (at 6
o'clock and 40 minutes p. m.) the Sen-
ate took a recess until tomorrow,
Wednesday, March 19, 1958, at 12 o'clock
meridian.
CONFIRMATIONS
Executive nominations confirmed by
the Senate March 18 (legislative day,
March 17), 1958.
COLLECTORS OF CUSTOMS
John G. Kissane, of Vermont, to be col-
lector of customs for customs collection dis-
trict No. 2, with headquarters at St. Albans,
Vt.
Anne A. Mitchell, of Connecticut, to be
collector Of customs for customs collection
district No. 6. with headquarters at Bridge-
port, Conn.
Harold R. Becker, of New York, to be col-
lector of customs for customs collection dis-
trict No. 9, with headquarters at Buffalo,
N. Y.
Josiah A. Maultsby, Sr., of North Carolina,
to be collector of customs for customs col-
lection district No. 15, with headquarters at
Wilmington, N. C.
Jessie Dixon Sayler, of Georgia, to be col-
lector of of customs for customs collection
district No. 17, with headquarters at- Savan-
nah, Ga.
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