CONGRESSIONAL RECORD-APPENDIX

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000200150008-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 20, 2016
• Document Release Date: February 27, 2004
• Sequence Number: 8
• Publication Date: September 11, 1962
• Content Type: OPEN

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1962 cO mRPSSIONAL RRCORI) _APPE DIX
it is. Bonneville Power Administration Itself
which has supplied these dollars in the first'
place in the form of firm kilowatts of mar-
ketablepower.
Proponents of the proposed contract be-
tween Bonneville Power Administration and
Washington Public Power Supply System'
have consistently maintained that it is not
the Nation's taxpayers but rather the cus-
tomers of Bonneville Power Administration
whg will be required to pay for any possible
losses from this arrangement through In-'
creased rates for Bonneville power. Mr.'
Charles Luce, Bonneville Power Administra-
tor, consistently told the members of the'
Joint Committee on Atomic Energy during
the hearings on these arrangements that'
should any loss occur it would be covered
by an increase in the basic wholesale rates
of the Bonneville'. , Power Administration.
This may sound good to some people, but,
let's look at the record.
It has been obvious, since World War It
that new sources of hydroelectric power in'
the Pacirlc Northwest coming into the
Bonneville Power Administration, grid were
relatively higher cost facilities that were the
original Bonneville and Grand Coulee Dams.
It was also obvious that at a date in the not
too distant futureBgnneville should increase
its rates In accordance with sound business
principles. Since 1947, Bonneville Power
Administrators have been assuring members
of the House, of Representatives Committee
on Appropriations that such increases in
rates were imminent. Since that time, rate
review periods came due in 1949, 1954, and
1959. But Bonneville rates have never been
increased. In fact, since fiscal 1958 Bonne-
ville Power Administration has been oper-
ating at a net deficit annually, and it is esti-
mated that for fiscal 1963 this annual loss
may run as high as $16 to $20 million. Even'
though Administrators have consistently as-
sured members of the Appropriations Com-
mittee that rates would be increased to meet
anticipated losses, such increases have never
been put,into effect. Therefore, despite as-
surances of Charles Luce that any potential
losses from. Hanford would be covered by a'
rate increase, it must be said that if the past'
has taught us anything at all it has taught'
us it is easier to promise rate increases than
to actually deliver.
In order to keep the record straight, the
following direct quotations are taken from'
hearings before the House of Representatives
Committee on Appropriations over the past
several years:
YEAR 1947
"I have taken this position about that'
matter, Congressman, that we are required
by law to cover the cost of power develop-
ment, We are doing it, as near as I can
determine at the present time, and we will
continue to do it for some time in the
future,
"it may be that the additional costs under
the higher price level that we have now of
the new dams when they are built will in-
dicate that those rates should be raised."-
Dr. Paul Raver, Bonneville Power Adminis-
tration Administrator.
YEAR 1948.
"I do not hin1r there are any of these ,
operators, eft er private or public, repre-
sented in this group, who have any thought
whatever that they are expecting the Federal
Government to give them a handout. They
are expecting to pay for this under whatever
the rules are that the Congress sets up for
paying for it. They will have to pass on
to their own consumers, then, those costs,
whatever they may be."-Dr. Paul Raver,
Bonneville Power 'Administration Adminis-
ttator.
"If current high-cost levels prevail
throughout construction of additional dams
and transmission facilities relating thereto,
it is possible that some increase in the
wholesale rate will be required in order to
maintain payout requlrements.'-Dr. Paul
Raver, Bonneville Power Administration
Administrator.
YEAR 1950
"In 1954 we think we have to make a rate
increase * * *. The rates that we are
charging now cover costs, in accordance with
the requirements of law. And they will con-
tinue to do so in our opinion until 1954.
They may continue to do so beyond that,
but we are at least reserving, and on the
basis of our estimates, notifying all of our
customers, that there is a possibility of a
rate increase in 1954, although we have
notified all of them that in our opinion
such an increase will 'in no event be more
than $5 per kilowatt-year."-Dr. Paul Raver,
Bonneville Power Administration Admin-
istrator.
YEAR 1961
"We have notified all our customers that
there will probably be a rate increase in 1954
on our wholesale power. In no event will
it be more than $5 per kilowatt-year * * *
we do feel that by 1954, in order to con-
tinue showing a net income over and above
all expenses, including Interest, we will have
to raise that wholesale rate."-Dr. Paul
Raver, Bonneville Power Administration
Administrator.
YEAR 1953
"Representative BEN JENSEN, Republican,
of Iowa. In order to comply with the law
and pay back the investment, that part which
the Congress appropriates for those things
that must be paid back, the present rates
will not be sufficient because of the increased
cost of construction and operation. Is that
a fair statement?"
Dr. RAVER. That is correct * * * and 1954
is the year when we think we will have
to begin raising these rates * * *. We run
into a difficult period here for about 5 years,
at least, to cover our total costs, and we are
planning to make these rate changes do it
in 1954."
YEAR 1954
"And we presently have under study the
problem as to how much the rates are going
to have to be increased and when. We have
stated in our annual reports for the last 2
years that as the new dams come in, we will
have to have increased rates, so the public
has been told that. We have not kept it
from them. And we are studying the matter
right now to determine how much the in-
crease will have to be and when it will have
to be put into effect."-Mr. E. D. Ostrander,
Bonneville Power Administration Controller.
YEAR 1956
"To really answer your question, briefly I
would say there will probably be some change
in our rate structure."-Dr. William A. Pearl,
Bonneville Power Administration Adminis-
trator.
YEAR 1957
"About 2 weeks ago we announced there
would not be an increase in rates for the
year beginning December 1957. That is to
say, there will not be an increase before
December 1958."-Dr. William A. Pearl, Bon-
neville Power Administration Administrator.
YEAR 1962
"If our revenues are insufficient to do that,
because of deliveries that we have to make
under the conditions that you have assumed,
Mr. Bates, then we would simply have to raise
our rates."--Mr. Charles Luce, Bonneville
Power Administration Administrator, hear-
ings before the Joint Committee on Atomic
Energy, 87th Congress, 2d session, page 88.
A6697
L U.S. Policy in Cuba
1X TENSION OF REMARKS
HON. STROM THURMOND
OF SOUTH CAROLINA
IN THE SENATE OF THE UNITED STATES
Tuesday, September 11, 1962
Mr. THURMOND. Mr. President,
there have been a number of editorial
comments on the critical situation con-
fronting us in Cuba and U.S. policy on
Cuba. I have been impressed by edi-
torials in the Columbia Record, of Co-
lumbia, S.C., of September 5, the Au-
gusta Chronicle of September 4, the News
and Courier, of Charleston, S.C., of Sep-
tember 8, and the Dallas Morning News
of September 7. I ask unanimous con-
sent that these editorials be printed in
the Appendix of the RECORD.
There being no objection, the edito-
rials were ordered to be printed in the
RECORD, as follows: ,
[From the Columbia (S.C.) Record, Sept. 5,
1962]
TROUBLE BREWING IN CUBA
A technician is an expert in some spe-
cialized field, such as a science; military
science, for example. In modern warfare,
all soldiers are experts. So whether our
Government's Identification of the Russians"
in Cuba as technicians, or the private and
semiofficial designation of them as fighting
men, is correct may be just a question of
semantics which boils down to the same
answer.
In straight talk, they are troops from the
Soviet bloc and they are there as part of a
continuing Communist buildup.
They may be there because Castro fears
rebellion and seeks protection against re-
volt of his own people and military forces.
The people are restless and hungry, their
crops are poor, the land that Castro seized
for them Is being taken back by the govern-
ment, food is scarce, prices are rising, wages
are frozen, machinery is being idled by
breakdowns, black markets are flourishing.
Castro, who stole the Cuban nation and
committed its people to Soviet captivity, ad-
mits the desperation of his position and
tries to shift the blame to his industrial
victims.
"They left us chaos and anarchy, which
are the essence of the capitalist means of
production," he ranted to a student con-
gress. "They left us their waste. Not 100,-
000 tractors, but just a few thousand trac-
tors and 300,000 c-rs. With them you can-
not produce. With them you only spend
tires, spare parts, gasoline. With that we
cannot have more milk, more meat, no new
clothes and shoes.
"At present, poverty, the one they left us;
underdevelopment, lack of industries, hos-
tility, blockade, aggression, saboteurs, crim-
inals paid by Yankee millionaires." In at-
tempting to shift the blame for his coun-
try's woes, he paints a sordid picture of its
distress.
-Yes, he may nc"d those technicians to
bring order out of "chaos and anarchy" and
protect him from the wrath of the Cubans
he betrayed. Or he may need them for
some military sortie against another Latin
American country to give him the aura of
heroism he so sorely needs to regain.
"Where are the students in Venezuela?"
he asked, as he dreamed across the sea to
other triumphs. "In the street combating
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A6698
CONGRESSIONAL RECORD, APPENDIX September 11
the reactionary and submissive government.
Where are the students in Gua;emala? In
the street, fighting and dying against the
puppet, Ydigoras. Where are the students
in Colombia? On strike, fighting against
reactionary power and unpopular measures.
Where are the students in Peru? In the
street, fighting against the military junta.
Where are the Argentine students? In the
street, fighting against the guerrillas." He
saw them all as members of his team in a
Communis, revolution.
The'Soviet technicians may be in Cuba to
consumma';e the communism of the un-
happy island and make it a fully integrated
satellite. Or they may be there. to defend
it from disenchanted Cubans who plan to re-
take their homeland with assi:otance from
the. United States.
Soviet bloc shipments are arriving at
Havana In unusually large r.Lumk ers and un-
der suspicious circumstances. A hotel in
the capital, where the technicians were quar-
tered, was shelled by small boats manned by
Miami-based exile Cuban studets. Cuban
naval craft fired at a U.S. plane over interna-
tional waters. Castro denied the shooting
and rebutted the allegation with an array
of charges of American military violations.
Whatever is happening in Cuba, it appears
to portend even more startling and dramatic
developments in the early future.
[From the Augusta (Ga.) Chronicle, Sept. 4,
1962]
OUR PUZZLING CUBAN POLICY
The new Democratic administration will
also affirm our historic policy o2 opposition
to the 'establishment anywhere in the Ameri-
cas of governments dominated by foreign
powers, a policy now being undermined by
Soviet threats to the freedom and inde-
pendence of Cuba * * * the United States
under a Democratic administration will not
be deterred from fulfilling its. obligations
and solemn responsibilities under its treaties
and agreements with the nat',ons of the
Western Hemisphere. Nor will the United
States * * * permit the estab' ishment of
a regime dominated by international,
atheistic communism in the Western Hemi-
sphere.-From the Democratic platform
adopted July 12, 1960.
In light of the President's prompt dis-
patch of troops to Thailand when our in-
terests in Laos were threaten@:d, and the
strengthening of our garrison in West ter-
lin in the face of warlike gestures by the .
Soviets, has dilatory tactics toward Cuba'
are puzzling.
In this instance we are not clealing with
an isolated, little understood area' of Asia,
nor with a problem centered in Europe.
Cuba is 90 miles from the coast of the
United States, a stark and growing peril to
this country. In fact, to quote the office
wag, It's only about 550 missile miles from
Broad Street.
We are not unaware that any overt act
on our part to topple Castro could end by
some American boys being killed or
wounded. But we think it would be the
height of naivete to continue to live in a
fool's paradise and expect the menace of
Castroism and Cuban communism to dis-
appear of their accord.
Certainly, as Senator -STROM THURMOND
pointed out last week, the danger that the
situation holds for the United States was
recognized 2 years ago. "If the circum-
stances in 1960 and early 1961 Justified de-
cisions by two administrations that a U.S.-
sponsored invasion of Cuba was essential,
how can the far worse circumstances of to-
day require less?" he asked.
Obviously, the Chronicle is in no position
to know what steps the Kremlin might take
to strengthen Cuban resistance to an in-
vasion. In fact, there is no certainty that
even the CIA is in possession of any firm
knowledge of Soviet intent. Yet, if past
performances may be utilized as parallels,
the danger of open Russian warfare appears
inappreciable.
Since the Korean war we have moved
forces into sensitive areas on several fronts
without provoking the Soviets into combat.
Information now, in fact, discloses that had
the United States acted forcefully a year ago?
the "wall of shame" separating East and.
West Berlin would never have been con-
structed.
It doesn't follow, of course, that nothing
we do will continue to go uncontested, but
we will make no gain. if we take no risk.
This line of reasoning doesn't prompt us
to hold, necessarily, with the young Cuban
who led the hit-and-run sea raid on Havana
that the United States should provide the
Cuban exiles with military aid because Cas-
tro is receiving help from the Soviet Union.
But it seems the height of folly to continue
to do nothing and watch Castro's arsenal
bulge with Communist arms and aircraft
and his troops become combatwise under
Soviet technical training.
The reluctance of President Kennedy to
commit American men to the hazards of
battle and the Nation to the dangers of war
is understar. dable and appreciated. The
eager young ilea raider, however, may have a
point. We encouraged the Cuban exiles in
April of 1961-then let them down by less
than an honest, cooperative effort on our
part.
It seems lcgical, therefore, to believe that
success would attend another try, provided
we equip these eager beavers with proper
materiel and furnish them with topflight
leadership and American naval and aviation
support.
No less an effort was promised in the Dem-
ocratic platform-and the United States
may not have to many more chances to
eliminate this festering cancer on our south-
ern shore.
[From the Dr.llas (Tex.) Morning News, Sept.
7, 1962]
REALITIES IN CUBA
From every indication, it seems that Presi-
dent Kennedy is about the only American
citizen unwilling to face the realities of the
situation in Cuba today. Unfortunately, he
is the one American who must face reality.
He is the ony one with sufficient authority
to deal with this situation.
On Tuesday the President warned Russia
and Cuba that the United States would take
"whatever means may be necessary" to pre-
vent expansion of communism in the West-
ern Hemisphere. The News commented that
it was a welcome stiffening of our backbone--
but was it a reaffirmation of the Monroe
Doctrine?
The Monroe Doctrine pledges that this Na-
tion will pre',ent extension of alien systems
into the hemisphere. Can it be denied that
the mere presence of Castro's regime in Cuba
Is a violation: of the doctrine?
Khrushchev boasted recently that the
doctrine is dead. In fact it has been dead
for nearly 4 years-ever since we permitted
Castro to set up a Soviet beachhead 90 miles
from our shores.
-Even the Sate Department reluctantly ad-
mitted, in a statement issued last. Decem-
ber-long before there was evidence of a
significant lumber of Soviet troops and
weapons in Ciba-that "Cuba under the Cas-
tro regime represents a serious threat to the
collective security of the American Repub-
lics."
This the President denies. He is still in-
sisting that those Soviet troops are merely
"technicians"-in spite of powerful and re-
liable evidence to the contrary, including
boasts from Havana and the Kremlin.
Moreover, Mr. Kennedy clings to the fiction
that the Soviet weapons (which he-admits
are there) are purely defensive.
There is no such thing as a strictly "de-
fensive" weapon-or at least there hasn't
been anything of the kind since the body
shield went out of fashion. Whether or not
these weapons were designed for defensive
purposes, they can be used with great effect
in the hands of an aggressor. They can be
used, for example, to protect the Castro re-
gime at home from internal revolt, while the
aggressor forces now used for that purpose
are released to undermine neighboring coun-
tries.
In spite of these facts, the President pur-
sues a timid course, promising only that we
will try to "isolate" communism in the
hemisphere to Cuba; that when Castro starts
to drop bombs on the United States, or its
neighbors to the south, we may call out the
militia. Meanwhile, we are doing nothing to
prevent subversion in the hemisphere.
What happens when the next Communist
beachhead is established-in Brazil or-British
Guinea, for example? Will we then merely
try to "isolate" these Red outposts, too?
When are we going to stop isolating com-
munism and began to run it out of the
hemisphere?
When are we going to get off the defen-
sive? When, in short, are we going to take
a few positive actions?
Thanks to Senator DIRKSEN, Republican, of
Illinois, we now know that our faithful
NATO allies-Britain, Germany, Norway, and
Greece-have been partially responsible for
the Soviet buildup in Cuba. Ships from
these countries have transported most of the
weapons Castro has received recently from
Russia and the East European satellites.
Months ago we tried to boycott Cuba so
that this kind of thing would not happen.
But typically we refused to do anything more
than "request" our allies to assist in the
boycott. Phil Newsome, foreign news analyst
for the United Press International, stated
yesterday that such a boycott "never can
become truly effective without military
measures."
The hour is late. It has become obvious
that "military measures" have become a
necessity to deal with the Cuban threat.
This doesn't mean, necessarily, that we have
to invade Cuba-though that may soon be-
come essential. But at least we need a mili-
tary blockade-a naval patrol-to surround
the Red island outpost In the Caribbean.
This would have the dual effect of prevent-
ing a further arms buildup of Cuba by cut-
ting off its supply line with the Soviets and
also would truly isolate Castro from export-
ing his revolution elsewhere in the
hemisphere.
[From the Charleston (S.C.) News and
Courier, Sept. 8, 19621
A TIME FOR DECISION
Wallowing in indecision over what to do
about Red Cuba, the United States presents
a sorry spectacle before the world. Here
is this country, greatest power on earth-
-defender of liberty and guardian of free
nations around the globe-incapable of re-
moving a small thorn from its own side.
After spending hundreds of billions of dol-
lars on national defense, Senator HOMER
CAPEHART warns that the United States may
have to call up Army Reserves by the end
of winter to deal with communism in Cuba,
a nation of 6 million population.
What kind of Government is it that em-
barks on major wars 10,000 miles from its
shores in southeast Asia, yet sinks into hesi-
tant confusion over dealing with a military
threat 90 miles from our mainland? How
real this threat is may be gaged from Sen-
ator STROM THURMOND's citation of "Substan-
tial evidence taht there are now at least
four intermediate-range ballistic missile
bases in Cuba."
This climate of weakness reminds an older
-generation of the late 1930's, when Great
Britain and France could not make up their
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 COfGRPSSIONAL ' RECORD APPENDIX" A6699
minds over Hitler's aggression in Europe.
David Lawrence, in a syndicated column
published in the Charleston Evening Post,
has pointed out that "the situation strangely
parallels the 1930's, which Winston Church-
ill describes in his book 'The Gathering
Storm' published in 1948."
Churchill wrote of the "milestones of
disaster" and of the series of appeasements
in Hitler's aggressions in the Rhineland, in
Austria and in Czechoslovakia, until finally
the climax came in Poland.
The United States acquiesced in Cuba. It
did more than that, for it helped Fidel
Castro rise to power. While Russian arms
pour into Cuba, President Kennedy, like
Neville Chamberlain-the umbrella man in
the days of Nazi invasion=finds the threat
insufficiently grave for decisive action.
Under the British parliamentary system,
it was possible for Chamberlain the appeaser
to be replaced with the resolute Churchill.
But the constitutional system of the United
States affords no similar opportunity for
changing leaders. The only way to halt the
disaster in Cuba and to bolster the entire
foreign policy is for public opinion to force
the President into doing what must be done
for the security-indeed for the survival-
of the United States of America.
If the President feels that he needs a legal
charter for decisive action against a threat
to our territory, he can find it In the Monroe
Doctrine. This is an American document
that must be interpreted by Americans.
Nikita Khrushchev has usurped the role of
defining it, and he has defined the doctrine
as out-of-date and meaningless. It is up
to President Iennedv, as Commander in
in Cuba. He must make plain that the economic expansion."
destiny of this hemisphere will be shaped Then Representative CURTIS got in his
by Americans, not Russians. These are the licks. He hadn't noticed in Mr. Rutten-
responsibilities that face our President in berg's prepared statement a plan for raising
this time of decision. $5 billion. "Do you think the Treasury could
Rocking Chair Economics
EXTENSION OF REMARKS
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HON. THOMAS B. CURTIS
OF MISSOURI
IN THE HOUSE OF REPRESENTATIVES
Tuesday, September 11, 1962
BItSINESS OUTLOOK FINANCE TAX CUT AT realities. Wouldn't people expect us to con-
BUREAU OF ENGRAVING tinue it?"
(By J. A. Livingston) Said Ruttenberg: "I think the Congress
could review the situation on January 5, 6,
Representative THOMAS B. CURTIS, Repub- or 7, when it reconvenes."
lican, of Missouri, is short, stocky, and stub- All through Ruttenberg's testimony,
bornly matter of fact. the through sheer force of character, I managed
"But where are we going to get silence. As a witness, I was bursting with
money?" desire to help him out.
Always politely, always quietly. Never Why, he could have handled CURTIS and
did his voice rise. But oh, so persistently, PROXMIRE in one fell razzle-dazzle. Why not
did he ask that question. just hand every taxpayer, whether he pays
The witness before the Joint Economic $100 in taxes a year or not (for Ruttenberg
Committee was Stanley Ruttenberg, director didn't cover this point) a brandnew, fresh
of research of the AFL-CIO. Ruttenberg $100 bill?
favored an immediate tax cut of "approxi- That would help employment at the U.S.
mately $5 billion," to terminate December 31. Bureau of Printing and Engraving which
"The impact on the economy would be the would have to print 50 million new $100
equivalent of almost $20 billion a year," he bills.
said. It would help to popularize the portrait
How would Ruttenberg achieve this 4-for- of Benjamin Franklin, who graces the C note.
1 fiscal tour de force? And it would answer Representative CUR-
He'd reduce "witholding taxes by $10 a TIS' question: "Where's the money coming
week for 10 weeks for each taxpayer, and from?"
taxpayers whose withholding tax is less than Answer: From the printing press.
$10 a week would be able to apply im-
mediately for a tax refund that would per- AUGUST 20, 1962.
mit them to have a total tax cut of $100." A Mr. J. S. LIVINGSTON,
$5 billion cut in one quarter would be The Washington Post,
tantamount to $20 billion a year. Washington, D.C.
At this point, Representative WRIGHT DEAR MR. LIVINGSTON: Your August 15
PATMAN, Democrat, of Texas, suavely asked column, "Finance Tax Cut at Bureau of
if Ruttenberg didn't feel that Federal Reserve Engraving," prompts the old saying, "It's a
Board Chairman William McChesney Martin shame to spoil a good story with the truth."
Jr., could impose a "Russian veto" on tile But you owe your readers at least an accurate
program by making money tight. Wouldn't rep report of events you witnessed. The column
a rise in interest rates run directly counter falifies facts.
to tax-cut stimulation? No one could guess what happened at the
"I would hope," responded Ruttenberg August 10 Joint Economic Committee hear-
adroitly, "that the Reserve Board would ings. The transcript shows:
'sell $5 billion of E-bonds to the public?"
Ruttenberg allowed that might be difficult.
"Well, then," repeated CURTIS, "where do
yre get the money? I'm a member of the
House Ways and Means Committee. It's
our responsibility to see that the Treasury
has the funds necessary to conduct the
Government's business.
peared
es have a
it
e
e
p
ss
n
r w
"You, and oth
before this committee and the House Ways
and Means Committee and suggested, `cut
taxes,' but you don't submit a plan of
financing. One must be the counterpart of
Mr. CURTIS of Missouri. 'Mr. Speak-
er, the Joint Economic Committee fol-
lowed the Ways and Means Committee
in holding hearings on the economic
condition of our country and the argu-
ments pro and con for a tax quickie to
stimulate our economy. A byproduct of
the Joint Economic Committee hearings
was an article by economic columnist
Mr. J. A. Livingston, who was one of the
witnesses, 'entitled "Finance Tax Cut at
Bureau of Engraving."
I enjoyed the column very much as
anyone familiar with my economic views
can well understand. However, Mr.
Stanley Ruttenberg, director, Depart-
ment of Research, "AFL-CIO, another of
our witnesses, did not. This, too, is un-
derstandable.
I want to help move the national de-
bate along so I am setting out Mr. Liv-
ingston's column, Mr. Ruttenberg's re-
ply to Mr. Livingston, a copy of which
he generously sent to me, and my reply
to Mr. Ruttenberg:
Ruttenberg promised to suomlt a pru- you make fun of any tax cut, just because
potal. But the committee wasn't through Y
with him. labor supports it. Economists of every polit-
Senator WILLIAM PROXMIRE, Democrat, of ical hue are concerned right now about the
Wisconsin, had misgivings about the 4-for-i need for tax cuts.
assumption. Did Mr. Ruttenberg feel -cer- You have the right to disagree with me,
tain that people would spend this money or to ridicule my views. However, you have
would they save it? He, himself, suspected no right to falsify the facts. It is too bad,
that a temporary tax cut wouldn't have the it seems to me, not only that you should
same impact as a permanent tax reduction feel that you must result to falsehood to
that people could count on-year in and out. argue against the kind.of tax cut I was ad-
Well, answered Ruttenberg, if you knew vocating, but also that you fail to allow your
workers, and he thought he did, they'd spend rreadaers to understand that
financing was technically
the money, and fast.
But, countered Senator PROXMIRE, people sound. This is true not only for the tax
couldn't employ a shortrun tax cut on cut I suggested, but also for the tax cut you
longrun purchases. They wouldn't contact suggested. Any tax cut requires financing.
new installment debt on $100. Tax cuts of various kinds have been proposed
"Maybe they'd use the money to pay off to stimulate the economy. Until the
old debt," the Senator suggested. stimulus results in additional revenue, deficit
"That would be fine," responded Rutten- financing is necessary. The public should
berg, "then they could start all over again." know that.
[Laughter.] It should also know that the President
Senator PROXMIRE, unconvinced, turned to of the United States, the Council of Economic
a new subject. Advisers, Members of Congress from both
"Do you think that once- the Congress political parties,. the chamber of commerce,
granted a 3-month tax reduction it could and various business groups have all con-
withdraw it? I'm thinking of the political sidered tax cuts as necessary means of spur-
1. When Congressman CURTIS asked me w
explain how to finance a deficit resulting
from a tax cut, I described several technical
methods for financing it. I did not, as you
reported, promise to "submit a proposal." I
did present sound, acceptable economic
methods for financing the prospective deficit.
A copy of my response is attached.
2. You attended and participated in the
hearings and asked for a tax cut of a dif-
ferent kind. Your fictional account of how
you "through sheer force of character" man-
aged to contain your desire to "help" me
"out" by indicating that the printing press
could print money is, therefore, very funny,
but it is not true. You merely advocated a
different kind of tax cut from the kind I was
advocating. You may find to your horror
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po
n
ed Out, this begged the auestion- q-h.
been vviu -recieral deficits stimulate
provided? an economy, under any circumstances and, There being no objection, the articlREC-
e
It seems too bad, therefore, for you to in particular, under the present circum- was ordered to be printed in try to ridicule as nonexiatent a. very real stances. If so, how? Answering this, of ORD, as follows:
economic problem which all of these groups course, requires full discussion of the eco- KANSAS WHEAT COMMISSION AND GREAT
do recognize. It seems very add and strange nomio problems involved in debt manage- PLAINS WHEAT, INc., ARE DOING THE JOBS
for you to ignore the fact that all these other went. No witness for a tax cut quickie had THEY SET OUT To Do
groups have asked for tax cut., and that you one word to say :in his prepared also have advmInt-i +h--
remarks
???,r i"n- yuu maze about pr4ating press Isn't it about time the theory of deficit HUTCHINSON, KANS.-In the spring of 1957
money applies to the thinking of the Presi- financing be supported by straightforward a new State agency set up office in Hutchin-
dent of the United States, to the Council of argument and reference to economic history Son. Its name: Kansas Wheat Commission.
Economir Advisers, to the -Members of instead of the appeal to "authorities," as Its job: Find and develop new markets for
Congress? to the chamber of commerce, and does your letter? This is the 20th century, wheat.
to J. A. Livingston when they aensider and not the Middle Ages. Facts and arguments, In January 1959 what is now a five-State
sometimes advocate the necessity for a tax not "authorities," decide the points at issue. organization was formed at Garden City. Its
cut to spur the economy? Or Is It only for - There are many economists who do not name: Great Plains Wheat, Inc. Its job:
labor spokesmen whose views you don't have scoff at a balanced Federal budget; there are Develop markets abroad as a foreign arm of
the courtesy to report, whose eniloquies with many who do not believe that deficit financ- the Kansas Wheat Commission.
Congressmen you deliberately distort, that ing stimulates an economy. President Ken- The Kansas Wheat Commission W
was heat Act
such ridicule is appropriate? And is this nedy asked for a national debate on the sub- by the 1957 legislature's Kansas Wheat Act
because you have decided, as you told the jeet but, instead of a debate, we get a name- which provided that farmers would pay a
Joint Economic Committee that day, that you calling contest. penny tax on each 5 bushels of wheat sold.
think the National Association ofManu- I think Mr. Livingston was on entirely This money would be used by the new agency
facturers is now correct?
Sincerely,
STANLEY H. RUTTENBE,'RG,
Director,
Department of Research.
tiers by pointing out that devoid of its so- oping into the Nation's No. 1 farm problem.
phistication. the theory Is no more than giv- Today the wheat officials point with pride
ing printing-press money to the potential at what has happened:
consumers
consumers in the society. This theory has 1. Three out of five bushels of wheat pro-
duced in Kansas this year eventually will be
in the past and there seems to
CONGRESS OF THE be less logic to suggest that it might work in sold in foreign countries.
UNITED STATES, modern Alr..erica. In fact, if anything, it 2. Transportation rates have been reduced
HOUSE of REPRESENI4TIVES, would take us backward to the frontier days to some coastal points to enable more com-
Washington, D.C., Seoteniber 4, 1962. Of the 1800'a which seem to so fascinate our petitive movement of inland grain for export.
Mr. STANLEY H. RUTrENBERG, currently raling politicians in the White 3. New food uses have been found and
Director, Department of Research, American House. more are coming.
Federation of Labor and Congress of in- I can't uiiderstand 'why it is so difficult 4. An international network of wheat of-
dustrEal organizations, Washington, for people to realize that our society has ad- floes has been established in Europe, Africa,
D.C. vented economically to a point no society has South America and Asia to help acquaint
DEAF Me;. RUTTENBERG: Thank you for send- ever reached. before. Our eeonom is so d y- with Kansas wheat.
ing me a copy of your letter to Mr. J. A. namic that it is creating seriouys growin 5. . Hundreds of foreign grain men. flour
Livin
sto
g
n commenting upon his column of pains. Yet the New Frontier seeks to treat
August 15, 1962. growing pains as if they were symptoms of a
I enjoyed the humor of the column, but tired and rundown condition requiring rock-
perhaps that was because I was on the same ing chair trIatment. This kind of medica-
side of his economic philosophy. tion can stop the growing pains all right-by
I think your reply misses the basic point stopping growth. We will surely get stagna-
in the national debate over the proposed tax tion and ultimate economic death through
quickie. The point is that those who ad- this kind of backward and forward motion,
vance the theory that deficit financing per se going nowhere.
stimulates an economy Must assume the However, I enjoyed your response to Mr.
burden of proof, just as anyone who advanc- Livingston. Usually I am the one who com-
es a novel theory should assume this burden, plains that news commentators miss my
To date, the professed followers of Lord . points.
Keynes' economic theory that deficit financ- Sincerely,
Ing will stimulate an economy by increasing THOMAS B. CURTIS.
consumer purchasing power have b
b
een
eg-
ging the question, and insulting those who
refuse to adopt this theory by accusing them
of being naolithic in their thinidng.
I think it is time that this school of
economic thinking started proving its point,
it it can. - You were one of a long line of
witnesses appearing before, bot;a the Ways
and Means Committee and, the. Joint Eco-
nomic Committee, as I pointed out when I
interrogated you, who advocated a tax cut
Promotion of Sale and Use of Wheat
EXTENSION OF REMARKS
HON, FRANK CARLSON
tW stimulate the economy but who did not OF KANSAS
come in with prepared remarks to discuss the IN THE SENATE OF THE E UNITED STATES
vital issue--how would the deficit that this
created be financed? What would the eco-
nomic effect of marketing that: additional Mr. CARLSON. Mr. President, much
amount of Government bonds have on our is being written about our wheat Sur-
present economy, struggling as it is with a plus, but seldom do we get information
large deficit and with a balance-of-foreign- regarding some of the outstanding work
payment problem, and yet bri;aking new
economic records as measured i'a gross na- and that is use of being wheat and nd whe wheat ate rod sale
tional product and innovation of new prod-
ucts products.
and services? In 1957, our State established the
I appreciated your willingnesi; to discuss Kansas Wheat Commission. Its assign-
the questions on this point I posed after you ment was to find and develop new mar-
had made your prepared remarks, just as kets for wheat, and it has been most
those who preceded you bads proved willing. successful.
But in your instance, as in the others, it
was obvious that the remarks were the result Recently Don Kendall, of the Hutch-
of improvisation rather than deep study. inson News, wrote an article in which
You, along with your predecessors, fell back he discussed the outstanding work of
essentially to the supposition that the deficit this group. I was unanimous consent
would be financed by the increased economic that the article be made a part of these
ring the differed, but eall conomy. have ueausi ion s have growth that the deficit would produce. As I remarks and printed in the Appendix of
i
t
-Great Plains to see for themselves the supply
and quality of the area's chief crop.
6. The United States has emerged as the
leading wheat exporter in the world and its
reputation for quality, sagging a few years
ago, is being 'bolstered.
The organizations don't claim their efforts
alone have brought about these develop-
ments. But they have occurred, primarily
since farmers organized to help promote their
wares.
Walt Graber, 55-year-old Reno County
farmer, who was hired as Kansas Wheat
Commission administrator 5 years ago, com-
ments :
"I think we can point to areas of prog-
ress- that no one can argue with. It has
been uphill all the way-don't mistake that-
but I think our exports, as an example,
speak for themselves."
In 1957 U.S. wheat exports reached a peak
for the previous decade, around 525 million
bushels, or about half an average U.S. crop.
Then exports began to slide.
The Agricultural Trade Development and
Assistance Act of 1954 has had tremendous
impact on U.S. wheat exports. Basically,
the law provides foreign aid to needy coun-
tries in form of surplus U.S. farm commodi-
ties, including wheat.
Under this law last year, more than 400
million of the 662 million bushels moved
abroad. This, some critics say, is "dump-
ing" on the world market and cannot be
attributed to the work of any promotional
group.
The facts remain that since 1958 U.S.
wheat exports have increased from a low of
.400 million bushels to an estimated 730 mil-
lion bushels this year.
Cash markets-wheat sold for hard dol-
lars-also have developed in this period. Last
year cash sales of U.S. wheat rose by nearly
30 million bushels.
While domestic per capita consumption
of wheat indicates a continuing decline, new
wheat foods appear taking up some of the
slack. Sale abroad of ready-to-eat wheat
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There should also be no hesitation on the
tt of the President in taking other neces-'
nary responses.
He should demand, not merely ask, that
our NATO Allies cease allowing merchant
vessels carrying their flags to aid our coin-
mon enemy. it is an outrage that those'
nations whom we have helped to defend
and to rebuild should repay us in this way.
He should in fact insist that NATO coun-
tries and the members of the Organization
of American States immediately join us in
Collective action against the Cuban threat,
including an effective embargo. It is late,
yet, not too late.
If our friends. are irresolute, we must act
alone, reserving to ourselves the right to
take any action necessary "aginst those who
would endanger hemispheric peace and
safety."
We will suiely be accused of rattling our
saber. We are not, but we have drawp, it,
from its scabbard and it will stay un-
sheathed,
San Leandro's, Sister City Is Explained
by Brazilian
EXTENSION OF REMARKS
4}" I
HON, GEORGE P. MILLER
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, August 14, 1962
Mr. GEORGE P. MILLER. Mr.,
Speaker, one of the great programs cur-
rently being pursued throughout the Na-
tion by municipal governments is the so-
called sister, city program of the Town
Affiliation Committee, which is formed
as a part of the people-to-people pro-
gram for better international, under-
standing.
Several of the cities in my congres-
sional district have been pursuing this
project with great enthusiasm. A new
association is being formed between the
city of San Leandro, Calif., and Ribeirao,
Preto, Brazil.
From past experience, I know that the
results of such an affiliation between
communities can be very productive of
greater understanding between the citi-
zens of the respective communities. The
projects undertaken under the sister city
program allow various facets of the
community, such as church groups,
chambers of commerce, employee asso-
ciations, unions, schools, league of wom-
en voters,, and businessmen to exchange
ideas and to exchange visits with they
cities concerned,
I am pleased to insert in the RECORD,
an account of San Leandro's first en-
deavor of town affiliation, in the visit of
Walter E. McNealy, president of a
Brazilian Baptist college, and his first-
hand account of the activities in sister
city Ribeirao Preto:
[From the Morning News, Aug. 28, 19621
i3AN LEANDRO S .SI~SF,TER CITY IS EXPLAINED BYE
? ?A ,pRAZILIAN
(By'36sephine Roberts)
"The most influential people in Ribeirao
Preto, Brazil, are highly conservative with
GRESSIONAL RECORD - APPENDIX
family histories dating back to the earliest
days of the South American nation's col-
onization," Walter B. McNealy, president of
'a Brazilian Baptist college in a nearby
,town, told Vice Mayor Valence Gill and a
group ,of town affiliation committee mem-
bers on Sunday.
The American-born educator, who has
spent most of his adult life in Brazil, in-
dicated that because the officials of Ribeirao
Preto are inclined to move slowly in making
important decisions, it is bound to take time
to complete arrangements for a sister city
program.
MORE FORMAL
"Brazilians are quite different in their at-
titudes which are far more formal than those
of the breezy, informal North American," he
said. "I have spent 25 years in Brazil and
have returned only four times to the United
States in those years, so I have a rather
good idea how the officials of Ribeirao Preto
would react to any new and revolutionary
suggestion.
"The town affiliation or sister city program
is entirely new to me and so I presume it is
quite new to South Americans.
"The rather unpleasant image of the
North American which has been a stereotype
in South American history and political life
has to be destroyed and this sister city
program is an excellent start toward better
understanding and harmony between North
and South American countries," the visitor
remarked.
"Ribeirao Preto is a beautiful city with
an almost ideal climate," according to Mc-
Nealy. "The city's population is quite cos-
mopolitan. However, its most important
businessmen and officials are descended of
good families of long residence and bearing
names famous In Brazilian history."
STABLE GOVERNMENT
"The city has long had a stable govern-
ment and economy. It is considered one of
the wealthiest of the 'interior or feeder
cities' through whose banks and mercantile
establishments flow millions of dollars worth
of commerce, raw materials, and finished
goods."
The educator indicated that he was very
much opposed to "giveaway programs"
which he says are rarely ever appreciated.
"Exchange, if possible, high school and
college students; invite a bank employee to
come to San Leandro for 3 or 4 months and
send a well-mannered, highly capable bank-
ing employee to represent you in Ribeirao
Preto. Make contacts in other lines of busi-
ness so that there Is a real people to people
program in operation."
Walter B. McNealy, who maintains a U.S.
address at 196 Jules Avenue, New Orleans,
La., or can be reached at Caixa Postal, 145,
Est do Rio, Brazil, said he was most willing
to help establish contacts with Ribeirao
Preto.
FRIENDSHIP ESSENTIAL
"Sound friendships between South Ameri-
can countries and the United States are es-
sential for the survival of the free world.
This Is a tense time in history and the sister
city program could help foster international
understanding which is so desperately needed
these days."
The Baptist college president was intro-
duced to Vice Mayor Valence Gill and town
affiliation committee members by William
Chandler of the Second Baptist Church on
Pacific Avenue In San Leandro. McNealy had
made a brief talk before members of the
church. Chandler is a charter member of
the sister city program.
EXTENSION OF REMARKS
OF
HON. STEVEN B. DEROUNIAN
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Monday, August 27, 1962
Mr. DEROUNIAN. Mr. Speaker,
communism in Cuba has grown to the
second most powerful military force in
this hemisphere since President Ken-
nedy has-assumed office.
The President has no one to blame but
himself for this. He cannot pass the
buck anymore. Why he does not take ac-
tion, I do not know. Where is his cour-
age?
David Lawrence in the New York
Herald Tribune for September 4 and 11,
respectively, discusses this problem, as
does Robert G. Spivack, in the news-
paper's September 9 issue. Both show
concern and pinpoint the urgent need' to
change this policy of appeasement by
President Kennedy:
[From the New York Herald Tribune,
Sept. 4, 1962]
WHAT POLICY NOW ON CUBA? COMPLETE
BLOCKADE URGED
(By David Lawrence)
WASHINGTON.-The Soviets have political
control of Cuba and now have openly ac-
knowledged that they are supplying Castro
with military aid. This action flagrantly
violates and denounces the Monroe Doctrine.
President Kennedy, however, said, in effect, 6
days ago that he will not "Invade" Cuba at
this or any other time. Does this mean that
the Soviet Government can.consider It has
obtained a free hand to take over any Cen-
tral American or South American country
and can assume there will be no opposition
by the military forces of the United States?
This is the dilemma in which the Wash-
ington Government finds itself today as news
dispatches from Moscow tell of the issuance
of a formal communique in which the So-
viets inform the world they have agreed to
comply with the request of the Cuban Gov-
ernment to supply it with "help by deliver-
ing armaments and sending technical spe-
cialists for training Cuban servicemen."
The Soviet Government contends that "all
Cuba's true friends have every right to re-
spond to this legitimate request" and that
the Cuban Government has "every justifica-
tion for taking necessary measures to Insure
Its security and safeguard its sovereignty
and independence."
HOW FORMULA WORKS
So the Soviet formula for conquest is at
last made clear. The Communists infiltrate
a country, get possession of the government
there, and cause it to file with Moscow a re-
quest for military aid. This Is supposed to
be the legal justification for sending arma-
ment and military personnel to "train" the
local troops. It so happens that the Monroe
Doctrine, since the 1820's, has warned the
world that no European country would be
permitted to get a military foothold any-
where in this hemisphere.
President Kennedy may not realize it, but
what he said at his news conference last
Wednesday could be responsible for his pres-
ent embarrassment. Had lie not responded
at the time to an impromptu question and
had he consulted with the Secretary of State
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~O1VRSSIONAL RECORD- APPENDIX September' 11
Ivy'y uc -U Vll wlc ayi.u i -uc uivuacai ~. ACTION ON CUBA AND -BERLIN URGED To BAR
A' correspondent had asked the President to -MAJOR WAR
comment on the suggestion of Senator HOMER
E.CAPEHACT, of Indiana, that Cuba be in-
vaded by the United 'States. here-is -the__ WASHiNGTOrr_-Vacillation indecison, ir-
verbatim reply as taken from ilhe tape re-- resoluteness and a policy of wavering from
cording: -flaytodayby-the Western powersbrought on
"Tile PEESIDENT. I am not for invading World War I and also World War II.
Cuba at this time. No, I don't the words- istory xniiy-ie repe ing elf: -Tlie-West
do not have some secondary d caning. I is again giving the impression of weakness.
think it would be a n taki _to__ Invade. The United States, the most powerful mili-
Cuba- tary force iii the-West--without whose aid
"Question. Mr. President, the- Soviets, as World War :1 and World War II could not
you well know- have been vronby the Allies-is wobbling
"The PRESIDENT. Because I think it would in its policies. This could lead to a gross
lead to-ghat it should be very=could fie miscalculation by Nikita S. Khrushchev, just
very casually suggested; an action like that, as indecisiveness on the part of Washington
which could lead to very serious consequences misled Kaiser Wilhelm in 1914 and Adolph
for many people." Hitler in 1939 as each assumed that the
Just previously in the same news confer- United States would not go to war over any
ence, the President, in discussing possible European question.
action. in Cuba, had referred r;o ' American Today, the situation seems to be growing
"obligations all around the world, including* more serious, as it is being assumed in
West Berlin and other areas, which are very Moscow that the United States will not
sensitive," and had added: even go to war over-an-American question-
"Therefore, I think that in considering the takrei oiler of co iti oI in tuba by the
what appropriate action we should take, we Soviets, who are supplying military equip-
have to consider the totality of our obliga- ment to the Cuban regime under an open
tions and also the responsibilities which,we agreement between the two governments.
bear in so :many different parts of the world." This defiance of the Monroe Doctrine has
This comment could mean t]f tyt the Tres- been 'ignored by President Kennedy. He has
ident is fearful that, if he takes action in made no public protest over Soviet policy.
Cuba, it might lead to greater pressures in He has announced, in effect,_that he agrees
West Berlin-a reaction which the Soviets with the Soviet viewpoint that Cuba is
doubtless are trying to foster. The-Soviets, merely engaging in a "defensive" operation
on the other hand, may, be waiting to see with Soviet help.
whether the United States,is hesitant - to'use CHANGE GALLED STARTLING
military force even as close as 96 miles away _
from its startling change in America's his-
the shores. They could misconstrue policy has apparently been accepted by
the President's reluctance as implying that toric supporters o1' the administration in Congress,
the United States might not even fight to though here and there some exceptions are
protect West Berlin or any part of Europe noted.
when a showdown came. The President, in his public statements,
The situation strangely parallel-Is e 19 0 s
shows that he considers the Cuban situation
book, "The Gathering Storm," published in
1948. He speaks of the "milesi;ones to dis-
aster" in the _1930's and of tige selea-of
acquiescences in Hitler's aggressions in the
Rhineland, in Austria, and in Czeehoslo-,
vakia, until finally the climax came in Po-
land. Mr. Churchill writes: "Here Is a catalog of surrenders, at iAxst.
.when all was easy and later wheth things
were harder, to the ever-growing German
not to be an American question by itself,
but as somehow directly related to the Berlin
crisis The Soviets may be interpreting this
stand to mean that Mr. Kennedy is hesitant
to do what he would perhaps like to do in
Cuba for fear that the Soviets might in-
tensify the East German problem and might
be tempted to take chances on a belligerent
move against West Berlin.
President Kennedy doubtless hoped to give
an impression of resoluteness when he asked
"Still, ii' you will not fight for the right b0,000ssresfor ervists.d Ihevltrouble twithll the
shed; when if you can easily win without _r - move is that it implies vaguely that some
you will not fight when en y our,vivice- time in the future he might use the troops
Cory will- be sure and not tee, costly, you somewhere--he doesn't say whether in Ber-
may come, to the moment when you will lin or in Cuba. The Reserves aren't actually
have to $;;ht with all the odds against you being ordered up now. Mr. Kennedy says
and only it precarious chance Of sury7ygJ,_? --he might call them up if matters get critical
"There may even be a worse case. You somewhere.
may have to fight when ther4 is no _hope This ambiguity in American policy Implies
of victory, because it is better t,
o perish than that the Un':ted States isn't really acting on
live as slaves." - - ?_ principle, but is feeling its way expediently
NOW WHAT? from one crisis to another while it waits for
What could Mr. Kennedy really do now? its adversary to continue step by step with
He could order a complete naval and aerial its aggressive course.
blockade of Cuba and demand that all Rus- Senator HUBERT HuMPHREY, of Minnesota,
scan advisers brought in by the Cuban Gov- assistant Democratic leader, gives the reason-
ernment. to train military forces in that ing back of the administration viewpoint.
country be expelled at once. E: e. could pro- In an interview quoted by the Associated
claim that no further shipments of any Press, he sayi3:
'kind, either by air or by sea, military or "i think it should be clearly understood
nonmilita y, will be permitted to enter Cuba that the President has no immediate inten-
from any country until the Cuban Govern- tion for use of this authority. Prompt con-
ment restores to American cltizt s the prop gressional approval will be a demonstration
erties taken from them in the hest fgw years,- to our allies and our enemies that the
.To apply this policy could leed,_#Q -some, -elected repiesentatives of the people are
fighting. But whatever sacrifices are made -firmly behind our Commander in Chief."
would achieve the patriotic pw?pose of pre- But will the men in the Kremlin take this
venting any misunderstanding a to the res- to mean that Congress approves inaction in
oluteness of the West In and around Berlin. Cuba? If the United States will not fight
It could p:revent a world war. on aclear issue that arises 99-miles away
from its shores, will the passage of a reso-
lution authorizing the call for Reserves pro-
duce the psychological effect which the d
ministration intends to create? The reso-
lution itself makes no mention of Cuba, and
in all probability the regular Marine Corps-
not the 150,000 reserves-would be used if
there were any intervention in Cuba by the
United States.
_ Not a word has been spoken publicly to
Moscow, moreover, by the Washington Gov-
ernment about her violation of the Monroe
Doctrine in shipping to Cuba arms and
technicians. Does this mean that the ad-
ministration acquiesces in the Soviet move
and that all that's necessary now for the
Communists to gain a foothold in a Latin
American country . is to infiltrate a govern-
ment there, call the military buildup de-
fensive, and the United States will not
object?
OTHER MEASURES URGED
The same hesitation and vacillation that
characterized American policy between 1914
and 1917 and between 1939 and 1941 are be-
ing repeated. The end result then was war,
because America was believed to be unwill-
ing or unable to fight. At least in those
days, however-both with respect to pro-
testing the violation of American rights on
the high spas and in supplying destroyers to
the British Navy-the United States wasn't
entirely inactive or inarticulate, though at
no time in the prewar period was the Ger-
man Government convinced that the United
States would fight.
Is entry into a world war the only way a
nation's resoluteness can be expressed?
There are many measures short of war-a sea
and aerial blockade of Cuba and an economic
boycott of East Germany and of the Com-
munist bloc-which could multiply Moscow's
troubles and prevent a major war.
[From the New York Herald Tribune, Sept. 9,
19621
OCCUPIED CUBA
(By Robert G. Spivack)
WASHINGTON.-The Soviet Invasion of
Cuba poses a grave threat to the future of
democracy in the Western Hemisphere and
to the military security of the United States.
To pretend otherwise is to underestimate
the dimensions of Soviet ambition, to mis-
read Communist history and to delude our-
selves about the potential of the Alliance for
Progress.
President Kennedy's promise by "whatever
means" to oppose the "aggressive purposes"
of Castroism is a first effort to meet the
Nation's and the hemisphere's present needs.
It reads well and sounds tough, but is open
to misinterpretation because it is too vague.
The real question about the presence of So-
viet "technicians" in Cuba Is: Why are they
there?
The overriding issue is no longer whether
Castro plans aggression against his Latin
neighbors; it is that Cuba herself is a Soviet_
occupied satellite.
Soviet troops are not there to repel an
attack from the United States. They are
there to keep the restive Cubans from over-
throwing their Communist dictatorship. If
we continue to talk about defensive Soviet
weapons and possible aggressive purposes
we could wind up accepting the presence of
the Red army much as we accepted the wall
in Berlin.
Cuba has been a problem for American
Presidents for more than 60 years. We have
made many mistakes there from the time
when we practiced dollar diplomacy through
our close alliance in the Batista era with
reactionary elements, political and clerical,
right up to the abortive CIA-sponsored at-
tempt to overthrow Castro.
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CONGRESSIONAL RECORD -APPENDIX
T,ynat long history helps to explain White In recent months I have inserted sev-
Hdiaee hesitancy in the present situation. eral articles dealing with Latin Ameri-
But, it is, one thing for the President to pro- , who is an
need carefully, in the troubled waters of the can affairs by Fred A. Orleans, It .is something else to proceed expert in the field. These articles have
cautiously while the enemy IS proceeding aroused considerable interest. Mr. Or-
boldly. leans has lived in several Latin American
if you proceed carefully the implication Countries for a number of years. A
is that you know where, you are going; while prominent international lawyer, he is
cautiousnes? could he interpreted through- A, me'mher of +h,
tinese CIO questions:
tio n emy of international Law-one of the
get Soviet troops out of Cuba, leading organizations in that country
without delay? to which not many U.S. citizens have
How do we prevent future Soviet troops, as been admitted to membership.
well as military equipment, from being I have before me seven short articles
landed on her shores? written by Mr. Orleans in which he deals
What are we prepared to do to help Cuba with such problems as the policy of non-
free herself from .Soviet domination?
None of these are easy questions and the intervention in Latin American affairs,
President has declined to put the problem the economic squeeze, a look at Brazil
in these terms. Perhaps he is reflecting on and Cuba, the need for a doctrine of self-
his own comments during the 1960 political preservation, and the need for qualified
campaign when lie castigated the former policymakers. Some of these articles
administration fpr_failure to do anything have been written recently, others about
about the Soviet menace "90 miles off the a year or so ago, but they still remain
coast of the United States." timely in essence and the problems they
he hopes to avoid the same y
kind of criticism?, That's perfectly under- raise are still unsolved. Developments
ata
d
i
n
ab
e. It was wrong in 1960 to over- over the past year, particularly in rela-
Simplify the issues posed by Castroism and tion to Cuba, indicate the validity of the
it is just as wrong now to make a domestic views expressed by the author.
political issue of.Cuba. ? Although I do not subscribe to all the
But the, problems remain. Second-guess- Views expressed in these- articles, they
guess-ing about the Russian reasons for indulg- accurate and to the point, the criti-
ing in their provocative demonstration of are
contempt for the Kennedy administration cism is nonpartisan, and the purpose is
i
fo
s,
r now, a fruitless enterprise. definitely constructive. I feel they are
What should we do? A first step would a worthy contribution in this field and
be. to blockade allshipments of materiel and should help bring greater clarity into our
men to Cuba, whether carried on Soviet or thinking on the subject. I commend
Allied vessels. The second would be to en- these articles to the attention of my col-
courage with all means at our command a leagues.
democratic Cuban. revolution. Third, would
be to bring before the Organization of Amer-
,
A6733
Government and deprive the people of Peru
of badly needed Alliance for Progress pro-
grams because a military group stepped in
to prevent a leftist government from taking
power. Our Government chose to ignore
the fact that the military takeover in Peru
was not the result of a bloody revolution and
that new elections and return to civilian
rule was promised by the military group.
Our Government chose to ignore the fact
that the people of Peru are not objecting to
the temporary change in government. If
this is not intervention in the internal af-
fairs of a friendly nation, then just what
does constitute intervention?
If the United States feels justified in in-
tervening in the internal affairs of Peru,
then it should give more thought to many
more "situations" in the Western Hemi-
sphere which merit and cry out for active
U.S. Intervention. Some thought should be
given to the unfortunate people of Cuba,
shackled by the chains of international
communism and deprived of the rights to
which every human being is entitled; some
thought should be given to freeing the many
American citizens, including both men and
women, who are still languishing in Cuban
prisons.
Just what or United States should or sould not inter-
vene in the affairs of a Latin American
nation?
ECONOMIC SQUEEZE
(By Fred A. Orleans)
The writer has repeatedly stated for m1hy
years that one of the greatest motives Which
disturbs the cordiality of the relations be-
tween the United States and the Latin Amer-
can nations is the exchange of our products.
Latin America produces strategic materials
and agricultural products of basic world-
wide consumption. The United States, in
turn, is the supplier to Latin America of
machinery and industrial products needed
for its economic development. This inter-
change takes place under conditions that
are adverse to Latin America.
Briefly it can be explained f
can States the,Whole issue posed by the So- NONINTERVENTION
viet occupation of Cuba, (By Fred A. Orleans)
Fourth would be to intensify the work of The word "nonintervention" has assumed
the Alliance for Progress, setting target dates major significance in the relations of the
for starts on public works projects. Fifth, United States and the other nations of the
would be to let the world know we are Americas.
ready and willing to work with reform- In 1936, at the Inter-American Conference
minded, genuinely democratic elements in for the Maintenance of Peace, held in Buenos
all Latin nations, not with military juntas Aires, Argentina, the the United states
as in Peru, agreed to subscribe to the doctrine of non-
Along with all these
o regard the
presence of her troops in Cuba as inimical
to the welfare of the Cuban people and to
our own Welfare, The Soviet "technicians"
Must be given a deadline for departure. If
they are not gone by deadline time then we
must be ready by "whatever means" to op-
pose their "aggressive purposes" against the
Cubans and all others of this hemisphere.
Latin American Problems and U.S.
Action
>'XrENSION OF REMARKS
HON. VICTOR L.. ANFUSO
OO NRW YORK
IN THE HOU.irOF REPRESENTATIVES
S
Monday, September 10, 1962
Mr, ANFJJ$O, Mr. Speaker, the situ-
ation rrLatin,America remains confused
and is no ,nearer a solution now than it
was- a year or.. two ..ago. Cuba, Brazil,
and British Guiana_ represent a threat
from the left. The situation in Argen-
tirla, the Dominican Republic, Peru, and
other countries has not been resolved.
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United States has had until now the s wer
to set by tself the prices of its ownproducts
These prices are fixed in accordance with
costs of production, but in these costs the
just and fair wages of its workers are strongly
protected. Latin America, on the other
"and, does not have the power to set
United States voluntarily deprived Itself of own prices. Until recently its principal c n-
the right to send American marine
t
s
o any Sumer and practically only customer has
Latin American country, no matter how been the United States. Latin America fixes
badly American property or American citi- prices also in accordance with production
zees were treated. The United States vol- costs, but in these costs the wages of the
untarily relinquished the right to use her Latin American worker lack equitable pro-
own judgment in dealing with violations of tection. The wage of the American worker
American rights and agreed to the establish- on an average is 10 times higher than that
ment of mutual security arrangements. of the Worker in Latin America. This can
This doctrine of nonintervention has been be explained in accordance with the blind
lie main restraining force which has pre- forces of economics, but we should not for-
ented the United States from unilaterally get the new forces which are working
acting to rectify the Cuban situation. This throughout the world.
doctrine of nonintervention has forced the The weak foreign trade situation of the
United States to depend upon collective ac- Latin American countries brought about by
on by all nations of the Americas in re- their poor earnings on basic commodities and
:ard to Cuba, and, accordingly, little action the continuous rise in the cost of the manu-
has been taken. factured goods they import has placed these
r The glaring inconsistencies in our so- countries in a serious economic squeeze.
called policy of nonintervention In the In- Neither the Alliance for Progress nor any
ternal affairs of Latin American countries Other U.S. plan to assist Latin Ameri-
eomes into sharp focus when we allow a ca - can succeed until the Latin Amer-
Communist
Communist dictatorship to exist a few short icon countries are able to develop a favor Amer-
-
from our border and we are unable able balance of trade. Countries which are
to do anything about it; when we maintain unstable economically and unable to earn
relations with, and aid governments in,
enough from exports to pay for their im-
Latin America which were not constitution- ports and pay back their debts cannot -
sue
ally elected by the people, but are in power cessfully implement an Alliance for Progress
as a result of uprisings, or governments program.
which originally constitutionally elected by
the people, but continue to maintain their LET'S LOOK AT BRAZIL
position through dictatorial means.
red A. Orleans)
But our Government does not hesitate to Earlier this (By Fyear Gvernor of
break relations with a friendly Peruvian Grande do Sul State,,tBraziil expropriated Rioa
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A67341 CONGRESSIONAL- RECORD - APPENDIX September YI
gteate compensation, and then continued to
make additional expropriations of U.S. in-
vestments in his State. At the time he com-
plained that Brazil was like a sieve and Al-
liance for Progress funds will just flow back
to the United States without mazrial bene-
fit to the people of Brazil.
This gentleman was obviously very con-
fused in his presentation of the facts since
a report by, the Swiss Bankers' Association
indicated that the total amount of Latin
American, deposits held by Swiss banking in-
stitutions are, according to it most conserva-
tive estimate, well in excess of $10 billion.
Swiss, United States, and other 'banking in-
stitutions probably hold at this t,me close to
plane incident or previous ones, but psycho-
paths who were not even Cuban citizens.
The psychopaths were merely emulating
the most successful psycopath of modern
times, Castro, and the more he gets away
with, the more others will try throughout
Latin America to carry on an eventual whole-
sale takeover or expropriation of U.S. prop-
erty.
By allowing Castro to go his merry way,
the United States emphatically encourages
many others of his ilk to try to do the same
he has done It is not important if the
Cuban Government actually encouraged the
attempted th,sft of the plane at El Paso and
the theft of the Pan American plane since
$20 billion originating from Lat`.n American the important thing is that they forcibly
sources. m rn, _.~ijacked an Eastern Airlines plane within
In order to smooth the way for continued the sovereign boundaries of the United States
aid to Brazil, a plan was devised for "com-
pensation" of the telephone company and
other expropriations. However, no indica-
tion was made as to just how Brazil, which
is on the verge of financial insolvency could
pay for these companies. It is ctuitc obvious
that aid grants from the United States which
should be used for the maximum benefit of
the people of Brazil would have to be di-
verted to make the aforemeritior,ed payments
for expropriated industries. Accordingly,
the U.S. taxpayer would, in the final
analysis, have to pay the U.S. companies
for their property seized in Brazil. This in
Itself is the height of folly and can lead to
many dangerous repercussions by setting a
precedent which the governments of every
other Latin American nation w11 feel free to
follow,
The political philosophy of ;he President
of Brazil Is well known from his past actions
and open. acknowledgments demonstrating
his leaning to the left. Recently a new Prime
Minister, Francisco Brochado da Rocha was
elected in Brazil. Mr. Brochado Is a political
protege of the Governor of Rio Grande do
Sul who expropriated the U.S. Telephone Co.
It should be pointed out that the Governor,
who is anti-American, Is the brother-in-law
of the President of Brazil, Joao Goulart, who
has never indicated any displeasure or dis-
agreement with his actions.
The nf:w Prime Minister of Brazil was the
chief legsl officer of the State of Rio Grande
do Sul and assisted in the eApropriation of
the U.S. companies. In his Initial address
to Congress,-Prime Minister Brochado threat-
ened to crack down on foreign investments,
called for closer relations w'.th the Soviet
.bloc and indicated his support for Com-
munist Cuba in its dealings cith the United
States. With the Prime Minister, who was
handpicked by the President and the Pres-
ident now voicing the same views these
views can very well become the official _ for-
eign policy of Brazil in the near future,
. The big question remains as to why the
United States was so completely unaware
of whai has been and is taking place in
Brazil that President GouIari: was invited to
this country and wined and, dined In New
York, Washington, and Chicago, and ad-
dressed Congress. He then proceeded to
"cash in" on this tacit support and approval
from Washington by going to Mexico to be
hailed and cheered by the leftist elements
who could point to the prior welcome and
reception he had received in the United
and they kept possession of that plane for
over 3 weeks despite our State Department's
"requests" fcr its return, and then only re-
turned the plane on the so-called exchange
deal for a Cuban "patrol boat" through
which the U.S. Government provided Castro
with his usual "out" and also headed off
congressional demands for action on the
Cuban situation.
The United States became the laughing
stock of the world through these plane inci-
dents.
This recent series of plane incidents, pre-
ceded by the drawn-out drama of tractors
for prisoners, preceded by the series of ex-
propriations, and all overlapped by a con-
tinuous series of insults, threats, and abuses
from Castro and Cuba, have effectively dis-
tracted the people of the United States from
what should be their primary concern and
that is the occupation of the island of Cuba
by those who are the sworn enemies of the
United States and who are allied with those
who are on the record to destroy our Gov-
ernment, country, and way of life.
The people of the United States have been
so distracted that they lost sight of the fact
that Cuba is daily becoming more and more
a threat to the future survival of many
countries in the Western Hemisphere and
through the building of short-range missile
bases, even an eventual threat to the United
States.
We are losing sight of the fact that Czech
technicians are in Cuba in ever-increasing
numbers, surveying and planning the estab-
lishment of modern industries which can
produce Indirect competition with the United
States and. induce many countries of Latin
America to forsake their trade ties with the
United States and depend instead upon Cuba
and its Communist bloc supporters.
We are losing sight of the fact that every
day that 'the Cuban situation remains un-
resolved, more and more political leaders in
Latin American countries, eye with a more
covetous eye the U.S. investments and in-
dustries in their countries with the thought
that if Cuba.can get away with it, why can't
they.
We lose sight of the fact that many coun-
tries in Latin America are inclined to black-
mail the United States for more and more
aid on the threat of turning to those who
back Cuba, and also of expropriating U.S.
property in their countries.
In the latter part of 1960, responsible ex-
perts in the United States recognizing the
dan
e
inh
t i
g
r
eren
n an uncorrected Cuban
States.
situation enumerated the minimum steps
A} the-tJnited__States must immediately take.
LEr's Loox Al' LATI- An[ERrC
QU
A-
B
(By Fred A. Orleans)
The plane Incident involving a Pan Ameri-
can plane being forced to change Its course
of Mexico City to Guatemala City, to land
in Havana, resulted In statements from
Washington to the effect that the American
people should not become too excited or
concerned about the matter since it was not
We have finally taken step one,-although
most reluctantly, after unnecessary delay
and only because Castro pushed us into it.
We have been too indecisive, too timid, and
too unnecessarily afraid of world opinion to
take all the proposed and necessary steps.
The suggested steps were as follows:
1. Break diplomatic relations with the
Cuban Communist regime.
2. Recognize a responsible Cuban govern-
ment in exile.
3. Give the government in exile full sup-
port with arms and money.
4. Invoke a blockade of Cuba so that she
would not be able to trade with the Com-
munist nations and induce other countries
to desist from trading with her.
5. Once the Communists have been driven
out of Cuba, assist and guide the country
back to freedom and constitutional repre-
sentative government.
The simple fact remains that as long as
Castro or his ilk remain in control of Cuba,
the United States will continuously face
problems in Latin America.
WHERE Do WE MAKE OUR STAND?
(By Fred A. Orleans)
The hijacking of an Eastern Airlines plane
enroute from Miami to Dallas has sharply
brought into focus the fact that the sover-
eignty of the United States has again been
flaunted and the inviolable rights of its
citizens again violated by a two-bit dictator.
Are we to assume that American citizens
flying from or to Miami do so at their own
risk in view of the proximity of Miami to
Cuba? Is Miami now off limits to U.S. air-
craft and have we finally reached the stage,
despite all the brave talk of making a stand
in Berlin and Laos, of not only being unable
to cope with the Cuban situation, but to
even protect V.S. citizens within the United
States of America?
As a weak nation, not yet established as
a world power, we went halfway around the
world to met and beat the Barbary Coast
pirates in their own lair and defend the
rights of American citizens to travel any
place without fear of mistreatment and abuse
by anyone.
In recent years, we have read about Ameri-
cans being murdered, abducted and mis-
treated in faraway places as Korea, countries
of southeast Asia, Africa, Egypt and Iraq.
All these places seemed distant and remote
and the average American remained apathe-
tic and unconcerned with this startling
change in world attitudes towards the United
States and its willingness and ability to pro-
tect the property and person of American
citizens abroad.
Recently, the happenings in Cuba, includ-
ing the wholesale theft of the property of all
Americans working or residing in that coun-
try including both the big companies as well
as individuals owning small businesses and
Americans who lived and worked in Cuba for
many years as well as descendants of Ameri-
can families who have resided in Cuba for
generations, has brought into sharp focus
the tremendous decline of both the prestige
of the United States abroad as well as respect
for our country and its citizens by foreign
nations and their nationals.
We have now arrived at the sad state of
affairs where neither Americans nor their
personal property are even safe in the
United States itself from personal abuse or
actual theft by any foreign government that
seems so inclined.
Exactly where do we make our stand?
If Cuba is not close enough, will Miami do,
or do we draw the line at Jacksonville, or
do we give up Florida because it's close to
Cuba and we do not want to antagonize
Castro or his friends? Exactly what is to
stop Castro or any like him from abducting
American citizens from any part of the
United States if they disagree with their
views or oppose their acts?
When the United States ceases to be on
the defensive and again becomes the vigor-
ous and positive leader of the past, giving
definite and firm leadership and acting with
a purpose with policies both full expounded
and backed up, then and only then will our
growing international problems diminish and
eventually disappear.
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1962
This tactic seems to be a favorite one of
those whom I would call the dominant pseu- '
do-intellectuals of today. If you don't agree
with their theories of handling social prob-
lQ,ms, you hate people. You are at war with
welfare. It is the classic example of ad hom-
inen argument, attack the motives and in-
tegrity of the adversary and avoid his set of
facts and arguments.
I am convinced that this method of debate
which has been condemned by all scholars
from Socrates on' down is doing more dam-'
age today toward our society reaching intelli-
gent solutions to our social problems than
anything I can think of. It does its harm
in two basic ways: 1. It works against in-
telligent discussion of difficult issues. 2. It
encourages excesses on the other side stem-
ming from legitimate righteous indignation
that "we have been smeared" and so the
same kind of mud starts coming back. The
more the mud is slung on both sides the
more intelligence is driven from the forum'
of public debate. The radio and TV waves
should not bee licensed to programs which re-
sort to this kind of deceit and mudslinging,
however sophisticated it may be.
If you care to comment upon these obser-
vations, please do so.
THOMAS B. CURTIS.
18039
I trust even at this late date you will see code of broadcast standards which contains
the tragedy for America inherent in this provisions similar to those you quoted.
attitude. The provision dealing with controversial
Sincerely, issue programs relates to a presentation in
THOMAS B. CURTIS. which time is sold or made available to an
individual, group, or organization for a state-
AUGUST 13, 1962. ment of the individual's or group's position
Mr. ROBERT D. SWEZEY, on a controversial public issue. For such
Director, the Code Authority, National Asso- programs, the basic requirements-which
ciation of Broadcasters, Washington, D.C. we follow-are that fair representation be
DEAR MR. SWEZEY: Thank you for your let- afforded to opposing views, and that the pa-
ter of June 15, 1962, enclosing a copy of the ture of the program should not be disguised
NAB television code prepared as your letter so as to make it appear to be an entertain-
states after almost 2 years' study. ment or news program or a program of differ-
A code is only as good as its enforcement. ent character than it actually is.
I am enclosing for your consideration let- "The Battle of Newburgh" was not a pro-
ters I have just written to Newton N. Minow, gram of this type; it was in fact a news
chairman of the FCC, and Robert Sarnoff, documentary, produced by NBC News and
chairman of the board, National Broadcasting
Co., concerning a television broadcast of
NBC, Sunday, January 18, 1982, 10-11 p.m.,
e.s.t., entitled "NBC White Paper No. 9, the
Battle of Newburgh."
In my judgment this broadcast violated
your present code of ethics, possibly also the
code of ethics in effect prior to the adoption
of the new code.
I believe my two letters set forth the basis
for my charge of violation. I would appre-
ciate knowing what procedures the NAB has
set up to enforce this code of "self regula-
tion", Any comments you might care to
make on the charges set forth in my two let-
ters would be appreciated by me.
Sincerely,
Mr. ROBERT SARNOFF,
Chairman of the Board,
National Broadcasting Co.,
New York, N.Y.
DEAR MR. SARNOFF: I want to acknowledge
your letter of April 11, 1962, in reply to my'
letter of Apirl 2, 1962. I held this matter in
abeyance after receiving a reply dated April
16 from Chairman Minow of the FCC saying
that it would be inappropriate for him to
comment in view of the fact that the matter
was,in an adversary state.
I have now received a reply from Mr.
Minow' in which he encloses a copy of the
Commission's' letter to toseph Mitchell, city
manager of Newburgh, N.Y.
I have replied to Mr. 'Minow and I am
enclosing a copy of this reply. I would be
happy to receive any comments you 'would
like to make on the observations I have made
in this reply and in this present letter. ' '
In the meantime, I was happy to receive
from Robert Swezey, the director of the Na-
tional Association of Broadcasters, the
seventh edition of the television code of the
National Association of Broadcasters, dated
May 1962. I am impressed with section Vt
and section VII (controversial public issues
and political telecasts) of this code.
Clause 3 of section VI states: "Programs
devoted to - the discussion of controversial
public issues should be identified as such.
They should not be presented in a manner
which would mislead listeners or viewers to
believe that the 'program is purely of an en-
tertainment, news, or-other character."
Section VII states: "Political telecasts
should be clearly identified as such. They
should not be presented by a television
broadcaster in a manner which would mis-
lead listeners or viewers to believe that the
program is of any other character."
-r a-my' judgment NBC white paper No. 9
"Tile?attig of 1ewburgh" violates both of
here provisions of the `code. It was a poli-
t
tical telecast designed to influence the public
attitude to one side of a highly controver-
sial issue while presented in the guise of be-
ing an objective presentation of the facts
and arguments in this controversial public
4s?ue,
The reaptign, gig both NBC and the FCC to
this, Criticism convinces me that not only
was this intender{ but when it is brought to
the attention of the persons who make policy
in NBC and FCC they intend to do nothing
about it,
FEDERAL COMMUNICATIONS
COMMISSION,
Washington, D.C., August 17, 1962._
Hon. THOMAS B. CURTIS,
House of Representatives,
Washington, D.C.
DEAR MR. CURTIS: I have your letter of
August 13, 1962, to the Chairman, in which
you express your views with respect to (a)
the NBC program, "The Battle of Newburgh,"
and (b) the Commission's letter of July 18,
1962, to Mr. Mitchell, city manager of New-
burgh, N.Y., concerning this program. In
the absence of the Chairman from the city, I
a taking the liberty of. acknowledging your
letter.
Due to the nature of the matters dis-
cussed by you, I believe that your letter
should be referred to the full Commission
for its consideration. As you may know, the
Commission is in recess during the month of
August, and will convene for its first meet-
ing on September 5, 1962.
You may be assured that your letter will
receive the Commission's attention at the
earliest possible date during the month of
September.
If I may be of further assistance, please do
not hesitate to contact me.
Sincerely yours,
RORERT E. LEE,
Acting Chairman.
NATIONAL BROADCASTING CO., INC.,
New York, N.Y., August 22, 1962.
Hon. THOMAS B. CURTIS,
House of Representatives,
Washington, D.C.
DEAR CONGRESSMAN CURTIS: I have your
letter of August 13, and I appreciate your
sending me a copy of your letter of the same
date to Chairman Minow commenting on
NBC News' white paper presentation "The
Battle of Newburgh."
I note with regret that you remain in dis-
agreement with the conclusions supporting
the program's fairness and integrity. Nor
can we agree with your view that the presen-
tation of the program was in any way in-
consistent with the provisions of the NAB
television code to which you refer. NBC
adheres to the NAB code, and even pre-
dating that code, we have had our own
designed to report on and analyze the wel-
fare system in Newburgh. It was clearly
identified as a news documentary at the
time of broadcast and in advance publicity.
It dealt with a controversial issue in the
news, and this, too, was made clear in ad-
vance and by the fact that it was a program
within the NBC White Paper series, which
by definition is devoted to the scrutiny of
vital current Issues and affairs, many of
them controversial. In reporting and
analyzing this issue, it adhered scrupulously
to the standard of fairness in presenting
opposing views on the issue. We follow
this standard in dealing with such issues,
whether the program is one such as is re-
ferred to in section VI of the NAB code, or
is a news report and analysis such as "The
Battle of Newburgh."
The other provision you cite-referring to
political telecasts-has no application to the
program in question. It deals with pro-
grams presenting political candidates-as is
indicated by its reference to section 315 of
the Communications Act which relates to
such presentations-or with election cam-
paigns. Clearly "The Battle of Newburgh"
was not such a program, and it clearly
identified the sort of program it was.
Contrary to your impression, Mr. Hunt-
ley's role in the program was not moderator
or commentator or editor. Mr. Huntley ap-
peared as a reporter. In line with this func-
tion he introduced the conflicting points of
view City Manager Mitchell's administra-
tion of Newburgh's welfare system has gen-
erated and expressed accurately all the
relevant facts assembled by the team of
skilled, experienced journalists who spent 6
months studying the Newburgh welfare con-
troversy at firsthand.
The excerpts you quote from Mr. Huntley's
narration are based upon demonstrable fact,
and his reference to Mr. Mitchell's attitudes
are supported by Mr. Mitchell's own words
on the program. The one exception I note
is the assertion: "I apologize for stating the
obvious. But it appears the obvious is being
overlooked." This is a quotation from a
speech by an official of the New York State
Department of Social Welfare, and it was so
described by Mr. Huntley.
As I pointed out to you in my earlier letter,
the program was not presented as a debate
or an exchange of opinion. Its purpose was
to report accurately and impartially on a
fair and thorough inquiry into ascertainable
facts in the interest of presenting the truth.
We believe this purpose was fulfilled.
Sincerely,
ROBERT W. SARNOFF.
CONGRESS OF THE UNITED STATES,
HOUSE OF REPRESENTATIVES,
Washington, D.C., September 7, 1962.
Mr. ROBERT SARNOFF,
Chairman of the Board,,
National Broadcasting Co.,
New York, N.Y. .
DEAR MR. SARNOFF: Thank you for your
letter of August 22, 1962. I, too, regret that
we are in such obvious disagreement on
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September 11
what constitutes fair and ethi al presents- We must let Mr. Castro know that we do been influencing our foreign policy here-
tion of controversial issues to-the public not intend to be pushed around. * * * We tofore.
through t medium s of elevist must let Mr. Khrushchev know that. we are We have all read of the military build-
What y in answer no your _ _ letter permitting co expansion of his foothold In
is largely repetition, but perhaps by repeat- our hemisphere * * * we should consider up of Cuba, the setting up of guided mir-
ing just a few points I may still, get through measures to prevent goods from being rile sites and other bases, 100 miles from
to you. --- shipped to Castro via a third country." the coast of Florida; of the continuing
You say Mr. Huntley was appearing as a This was good advice then and it is good convoy of ships from the Communist
reporter. Then what was Mr. Euntley doing advice now. Since you assumed the Presi- bloc bringing men and military materiel
commenting upon the statements of the peo- deny, not only has Castro pushed us around to Cuba. It has been reliably reported
ple presenting different points of view? but he has kicked us in the teeth and is that in a check period between July 26
I documented in my prsvloL s letters the now Spitting in our faces. His is the second and August 20, alone, some 60 Soviet
type of comments Mr. Huntley made on the most powerful military force in this hem-
"news." Not only was he not filling the tra- isphere, where U.S. prestige has been shat- vessels-twice the normal trafftc--car-
ditional Kole of the reporter, which Is to tered. It is a fact that Khrushchev Is ex- tied equipment to Cuba. And out of
report, not to comment; lie. wis not filling panding his foothold.; and it is certainly true Moscow a statement has been issued
properly the role of a commntator or editor that military men and materiel are being clearly informing us that the Commu-
by observing basic rules of fairness. shipped to Castro directly and indirectly by nists will give all the military and tech-
I think if NBC wants to use the- terms the Soviet. nical aid to Cuba they feel is necessary
"White Ps-.per" and "news documentaries" it The Monroe Doctrine. has been violated for their purposes.
would, be ethics and well to eview what a er_ C fide - Of and we have done absolutely nothing hereto- The American people are sick and tired
Great procedure fore. It is time to act now. of cowering good
can corne esentations of t he honest f difference of Mr. President, at one time you wrote very They know th toknucki ng under to Hit
p .-eloquently about courage. Now is the time to
opinion that exist between equally well moti- practice it. In this, the American people ler brought war; that weakness brings
vated and studious men. The western horse will overwhelmingly support you. war and strength assures peace.
opera plot: of the good guys against the bad I, therefo^e, recommend that the United I hope my resolution will receive im-
guys exists only in never never land. True States institute a blockade of Cuba prevent- mediate and favorable consideration.
lif
th
ll
f
a
f
a
e revea
s
at a
o
us. are
hunch o
i ft:ilit
ng anyurner mary shipments to or from
gray guys, some of our actions are good, Cuba. Our national security is in danger.
some are bad. It become, ImIQXI~A
nt_tq be I am sure you realize that appeasement of
ready to see when an ordinarily good-guy Hitler led to war and further appeasement of
acts bad and an ordinarily bad g uy acts good. the demented, bearded dictator of Cuba will
Only by sticking to specific actions can this certainly eventually lead to war.
be accomplished. We must :,top this Communist cancer now,
I am happy to be advised that my letters With or without the cooperation of our sister
to the FCC in this matter are being referred states in this hemisphere.
to the full Commission for its consideration. Respectfully,
-In the meantime I am anxious to.get as STEVEN B. DEROUNIAN,
much of the public in on this discussion as Member of Congress, Second District,
possible and, accordingly, I am placing my New York.
file on this matter In the CONGRESSIONAL
RECORD, as I advised you I would do when I Today, I have introduced a joint reso-
began our correspondence. _ lutionautl.orizint the President to em-
I shall be happy to send you a copy py y of the ploy the Armed Forces of United
RECORD and to insert any further remarks States for protecting the security of-free
you might: like to make. nations in the Caribbean areas and in
Sincerely, Central and South America:
THOMAS {iVRTIS,
Whereas the primary purpose of the United
CONGRESS OF THE UNITED STATES, States, in Sts relations with all other nations,
House OF REPRFSENSATIVES, is to develop and sustain a just and enduring
Washington, D.C., September 7, 1962. peace for all; and
Mr. ROBERT E. LEE, Whereas threats and declarations have
Acting Chairman, Federal Communications been and are being made which Indicate that
Commission, Washington, D.C. free nations in the Caribbean area and in
-DEAR U.I. LEE: Thank you for your letter Central and-South America are in danger of
of August 17, 1962, advising me that my pre- armed attac:r; and
vious letters in respect to the NBC-TV Whereas such events would gravely en-
presentation "Battle of Newburgh" would danger the peace and security of the Western
be referred to the full Qoncmisiion for con- Hemisphere: Now, therefore, be it
side ration. Resolved by the Senate and House o
have - Re esentatives of the United States of
I have decided it would be of value to America ica in Congress assembled, That the
place in the CONGRESSIONAL RECORD the perti- President oi the United States be and be
nent parts of my file on thin subject. I hereby is authorized to employ the Armed
shall forward a copy of the CONGRESSIONAL ; Forces of the. United States as he deems
RECORD with this material to 1 he Commis- necessary for the specific purpose of securing
sion when this has, been done. necessary
?? + + eo +, F +, _ _cu
B. CURTIS, against armed attack, this authority to1in-
elude the security and protection of such
BLOCKADE OF. MILITARY SHIP- dDUaUeu position anti rerrsrorles now in Tree
MENTS TO AND FF OM CUBA hands and the taking of such other measures
as he judges to be required or appropriate In
(Mr. DEROUNIAN (at the request of assuring the defense of free nations of the
Mrs. MAY) was given permission to ex- Caribbean area and of Central and South
tend his remarks at this point in the America.
RECORD and to include extraneous mat- This join ; resolution shall expire when
ter.) the President shall determine that the peace
-- and,security of the Western Hemisphere Is
Mr. DEROUNIAN. Mr. Speaker, last reasonably assured by international condi-
Tuesday I wrote the President recom- tlons and shall so report to the Congress.
mending that the United States institute This is comparable to the Formosa
a blockade of all military shipments to resolution enacted by the Congress in
and from Cuba: '1955; and ]: trust it will have the effect
SEexEraBEa_ z, 1962.
THE PRESIDENT, stiffening the back of our President
,
The White House, so that he may, with courage, utilize the
Washington, D.C. authority of the office he now holds; that
MY DEAR MR. PRESIDENT: In 1960, as Sen- he be less inclined to listen to the ivory
ator, you made the following statements: tower theorists or the pacifist who has
VIEWS ABOUT MEDICARE
The SPEAKER pro tempore. Under
previous order of the House, the gentle-
man from California [Mr. BELL] is rec-
ognized for 10 minutes. -
(Mr. BELL asked and was given per-
mission to revise and extend his remarks
and to include extraneous matter.)
Mr. BELL. Mr. Speaker, few issues
which have come before us during the
two sessions of the 87th' Congress have
aroused as much concern and developed
as much public interest as the subject of
national legislation to provide medical
care for our older citizens. Most im-
pressive to me in my background read-
ing on this subject were the following
articles which, under permission, I am
placing in the CONGRESSIONAL RECORD:
[From the Chamber of Commerce]
THE CASE AGAINST H.R. 4222, THE HEALTH
INSURANCE BENEFITS ACT
1. IT'S MISLABELED
This proposal, better known as the King-
Anderson bill, is not insurance because its
benefits are not guaranteed.
2. IT'S NOT NECESSARY
The contention that this massive new pro-
gram must be enacted to cope with a prob-
lem that is temporary and transitional can-
not be supported in view of (a) the special
tax concessions for the aged with modest in-
comes; (b) the rapid implementation (38
States, 3 territories) of the 1961 Kerr-Mills
law, providing financial help to aged per-
sons unable to afford essential health and
medical care expenditures, and (c) the 200
percent growth of voluntary health insur-
ance during the past 10 years. (More than
9 million aged now have such insurance, and
both basic and major medical policies, with
the right of renewal guaranteed, are now
available to all the aged.)
3. ITS NEW CONCEPTS CANNOT BE JUSTIFIED
For the first time, social security taxes
would pay for services, rather than pay bene-
fits in cash-thus denying to every bene-
ficiary the right to decide how to use his or
her income. For the first time, it would
provide a fiat benefit-the same for every
beneficiary-discarding the principle of re-
lating benefits to previous earnings, social
security taxes paid, and to presumed need.
4. IT'S UNFAIR
Millions of workers under social security-
particularly young couples raising their
children and buying their homes-would be
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