THE PRESIDENT SHOULD ANSWER TEST BAN TREATY SAFEGUARDS QUESTIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65B00383R000100200007-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: March 1, 2004
• Sequence Number: 7
• Publication Date: October 29, 1963
• Content Type: OPEN

Approved For Release 2006/10117 -, CIAO-'QR65E 00 3; R0001 0,0 -'
1963 COIORESSIONAL RECORD = APPENDIX A6837
T... RAT.TIMORE & OHIO RAILROAD Co., Under leave `t0 extend my remarks in tee on Administrative Practice and Pro-
110n. J-ENNINGS RANDOLPH, this point: 4 days of hearings on S. 1666 commonly
Q7~.(Lt$ ~ CC $TL2. 1.C121rQ', FREEDOM OF PRESS PERILED referred to as the freedom of iLforma-
ashangto`n' ...
I7BAR EIeAToR Thank you very much for This is National Newspaper Week, an an- tion bill.
ydttr 'thoughtfulness" in sending the tale- nual period in which the American press Nineteen Senators joined with me as
gram to me at Parkersburg yesterday. It takes a look at itself, its problems and re- copsonsors of this bill. Recently the
aiTip d at the end o_f a luncheon we held affirms its dedication to keeping Americans Kansas City Press Club adopted a resolu-
on . he specfal train which 'had come' over the best Informed people on earth. tion urging passage of the bill.
frorin Clarksburg during the morning. Newspapers today find themselves at a Mr. President, I ask unanimous eon-
pro ect, I am sure, will be a great crossroads. The signs along one read: "Gov- sent that a news story from the Kansas
success all I look forward to a substantial ernment news management," Government Times reporting the action
the
l c ease in B. & 0. t"rafHc not only through secrecy," "Federal news agencies." The City
Iiprtfkie'rn est Virginia but to and from our other is posted with markers in the Amer- Kansas City Press Club and the resolu-
i'tatlons in that great State. ican tradition: "Factual reports," "freedom tion be printed in the Appendix of the
'ir;erel}, of interpretation," "unrestricted movement." RECORD.
.JERyIS LANGDON, Jr., The American press is resisting with all its There being no objection, the article
Presie7a t. power Government pressures to force it down and resolution were ordered to be printed
r+-~ the former road. The trend became ap-
.l iri the RECORD, as follows:
13. O. DESERVES OUR APPLAUSE parent shortly after the advent of the Ken-
IN-
We ,join with all progressive West Vir- nedy administration. CALLS FOR OPEN FILES-PRESS CLUB URGES S ginians' in congratulating the Baltimore & Newsmen for the first time In history were FOPASSAGE OF RMATION AE TIE BIE L: FREEDOM OF
AND
Ohlq rollroad for its great main line im- not allowed to travel with the U.S. fleet to GOVERNMENT I5 EMPHASIZED
pro'Cement between Clarksburg and Parkers- Laos. Correspondents were barred from
burg ships taking part in the Cuba blockade. A resolution urging passage of a Senate bill
_,T#e prosp'erity-or lack of it-of this im- More recently the Government has tried to that would strengthen the rights of the press
portant railroad is of vital concern to every cover up the true news picture in South and public to access to Goverment records
West Virginian because the B. & O. is a Vietnam. was adopted 1st night by the Kansas City
,tiejor taxpayer and in its continued prog- A prime example of efforts at news man- Press Club.
re`all of `us have a real stake. agement occurred last spring. Twenty-five The bill was introduced last June by Sen-
iis .Ilain line improvement makes it prominent Americans, at the Government's ator EDWARD V. LONG, Democrat, of Missouri,
possible to 'haul all major freight items request, issued a report on ways to increase and would amend an existing act.
on the most direct route to the great South- private investment in Latin America. EXCEPTIONS ARE NOTED
West through the St. Louis gateway. - This The document emphasized there should All records would be covered under the
i;_e$pected to greatly increase the revenues be an increase in private capital outlays measure except those:
4fthe railroad. without corresponding boosts in public ex- Specifically covered by statutor exam
Addiir this to the forward look the rail- penditures. That was not what the admin- lion, as inthe case of individual income
Toad has adopted in pioneering on unit coal istration wanted to hear. A leak was made
ftelght trains and other projects designed to to a reporter who declared the still unpub- tax Covered retureturns.
by an executive order forbidding
Yr aka the railroad a better facility for its lished committee report had been "disowned disclosure for an of ore national forbidding
Customers and therefore a more profitable by several of its members." This effort to dense.
enterprise certainly is most desirable from manage news was aimed at destroying the Defined as internal memorandums of
members internal
all standpoints, value of the report before it was released. Defined
es randu s the o We in West Virginia salute the railroad The Government now has gone one step agencyt of adr empudleatory ye or ateemokthe
and hope under its new management it con- further by getting into the news dissemina- disposit.
tjnuss to_inake progressive moves designed to tion business itself. Only recently the Fed- in which secrecy wbe per-
y wo
lneuease its service to the shippers of the eral Marketing Service was established at The aecrec
are than under me present dcc.
,to all the areas it serves including our own market news to anyone who would pick up delineated The press club
resolution commended the
Suite of West Virginia. the telegraph charges. bill as a fine step forward in the fight for
to directed department
Mr. s o of various o f agencies has directed
cooperate e and
heads
and freedom of Information. assist in setting up a unified governmental NEEDED TO PRESERVE NATION
]Freedom of the Press Nees Public communications systern to-be'known as the The resolution in part:
National Communications System. "Only a completely informed people can
Support It is conceivable that such a system even- make the proper judgments necessary to pre-
tually would be e competitive with, or even serve our Nation. The increasing burden
EXTENSION OF REMARKS supplant, the great worldwide newsgather- of new knowledge and our Government's in-
ing facilities of independent wire agencies creasingly closer relationship to the every-
~T /~ ~y~+ and individual newspapers. day affairs of our citizens, makes most im-
ION. GLENARD P. LIPSCOMB There are 14 words In the first amendment portant the keeping of the channels of com-
. to the Constitution that were intended to munication between the Government and
oF'`tALrFORNIA prevent such outright Government encroach- the people.
4IN THE HOUSE O4' REPRESENTATIVES ment on the press: "Congress shall make "We urge that Congress continue to survey
ztrsday, October 31, 1963 no law * * * abridging the freedom of this need to the end that governmental af-
Th speech, or the press." fairs shall be completely understood by all
Mr. LIPSCOMB. Mr. Speaker, the The press freedom guaranteed in those 14 citizens; and to the end that shoddy or dis-
cOnstitutional guarantee of freedom of words has been the protective base for all honest actions by Government officials and
the press as - established by the first other American freedoms. It could be de- employees cannot be concealed from public
stroyed, bit by bit, unless present Govern- view."
amendment is undergoing its greatest' ment trends are reversed. An aroused pub-
threat in the history of our Nation lic can help in bringing about Such a A RESOLUTION BY KANSAS CITY PRESS CLUB
t ese nt ' policies s and , actions of the reversal.
r people themselves must want benefits The Kansas City Press Club, whose nearly
p tration. The nstanCes of management, censorship of a free press enough to join in their 300 members represent all types of news
media in its region, has considered Senate
and withholding of legitimate news, and protection, bill No. 1666 as introduced by Senator ED-
denying access to news by the press, have WARD No. LONG of Missouri, and others, and
become Commonplace since this admin- believe it is a fine step forward in the fight
isstration came into being. Some of these The Freedom of Information Bill for freedom of information. We urge its
1 set'forth in an editorial appropriate passage.
to National Newspaper Week which ap- EXTENSION OF REMARKS Only a completely informed people can
eared in the October I6 issue of the of make the proper judgments necessary to pre-
p Iirovia Dail - Nave ews- the Post, of Monrovia, serve our Nation. The increasing burden of
if, which D privilege of rep- HON. EDWARD V. LONG new knowledge and our Government's in-
creasingly closer relationship to the everyday
resent ilg in Congress. - 87 ISSUIIRI affairs of our citizens, makes most important
.'AS the editorial notes, the Alnerlcari , IN THE SENATE OF THE UNITED STATES the keeping clear of the channels of com-
pl ~ss Is -resisting, pressures . which Friday, November 1, 1963 munication between the Government and
threaten its freedom but the people the people. We urge that Congress continue
themselves must want benefits of a free Mr. LONG of Missouri. Mr. Presi- to survey this need to the end that govern-
press enough to join in their protection. dent, this week the Senate Subcommit- mental affairs shall be completely under-
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A6838
stood by all citizens; and to the end that
shoddy or dishonest actions by Government
officials and employees cannot be concealed
from public view.
Adopted October 3, 1963, at a regular meet-
ing of the Kansas City Press Club, Hotel
Muehleback, Kansas City, Mo.
JOHN THORNBERRY, President
The President Should Answer Test
Tres Safeguards Questi s
EXTENSION OF REMARKS
OF
HON. CRAIG HOSMER
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, October 29, 1963
Mr. HOSMER. The following edi-
torial of significant relevance to the na-
tional security appeared recently in the
Long Beach Independent-
Press-Tele-gram:
NATION DESERVES AwswERs ON TEST BAN
SAFEGUARDS
During the debate on the nuclear test ban
treaty, critics of the treaty recalled that
President Kennedy had , said only a few
months previously that this Nation could
not stand ready indefinitely to conduct nu-
clear tests on a moment's notice.
That being the case, they argued, how
could the United States agree to sign a test
ban treaty which the Russians might break
without notice?
Without referring to any previous state-
ments, the President and members of his
administration declared that this country
could and would take the steps necessary to
meet all contingencies.
Mr. Kennedy, in fact, wrote a lengthy
letter to the leaders of both parties in the
U.S. Senate giving positive assurances that
safeguards would be maintained. Nuclear
testing underground would be continued, he
said; facilities for the detection of possible
violation of the treaty would be expanded
and improved as required; and the Govern-
ment would take whatever other steps that
were necessary to safeguard "national se-
curity in the event that there should be an
abrogation or violation of any treaty provi-
sion."
In view of these assurances, we feel it is
quite proper that Congressman CRAIG Hos-
MER, an opponent of the test ban treaty,
should inquire whether the necessary steps
are actually being taken to reduce the risks
and disadvantages of the treaty.
Congressman HOSMER directed such an in-
quiry to the President in September and re-
cently received a reply from Dr, Glenn Sea-
borg, Chairman of the Atomic Exlergy Com-
mission. Dr. Seaborg stated that the ad-
ministration is seeking authorization to
make treaty safeguard expenditures totaling
$17,946,000 during the balance of fiscal year
1964.
Congressman HOSMER feels that the pro-
gram of safeguards is woefully inadequate.
He estimates that the costs of underground
test site improvements and additions, weap-
ons laboratory improvements, retention of
topflight scientists, readiness for resump-
tion of atmospheric tests, and improvement
of the detection system should total $1 bil-
lion.
The discrepancy between the administra-
tion's requests and Mr. HosMER's estimate
is most serious. He has asked the Presi-
dent to clarify the picture for a Nation
which has been assured of safeguards.
Pending clarification, Mr. HosMEE questions
whether "the entire matter of the safe-
CONGRESSIONAL RE~ORD - APPENDIX
guards is being taken se iously by those who
may be advising you in these matters."
The Congressman may well be overlooking
some factors which would cast an- entirely
different light on the matter, but the in-
many others, American, citizens deserve to
hear the answer to Mr. llosMER's questions:
1. What actions are necessary to establish
the safeguards?
2. How urgent is it to gstablish them with-
out delay?
3. How much will they cost?
i
Statement of Hon. Douglas Dillon, Secre-
tary of the Treasury, on the Interest
Equalization Tax
EXTENSION OP REMARKS
OF
HON. AL ULLMAN
of OREGON
IN THE HOUSE OF REPRESENTATIVES
Wednesday, October 23,1963
Mr. ULLMAN, Mr. Speaker, the Ways
and Means Committee has been consid-
ering during the past 2 weeks the inter-
est equalization tax bill, which is advo-
cated by the administration as one
means of attacking our balance-of-pay-
ments deficit. On October 21 Secretary
of the Treasury Douglas Dillon appeared
before our committee' in executive ses-
sion, and presented the case for the bill
Because of the great importance of this
legislation and the problem it is designed
to meet, and because of the excellence of
the Secretary's statement, I am sure my
colleagues will find his remarks of par-
ticular interest. I therefore include it in
the Appendix of the RECORD:
OPENING STATEMENT OF THE HONORABLE
DOUGLAS DILLON, SECRETARY OF THE TREAS-
URY, ON THE INTEREST EQUALIZATION TAX
BE.roRE THE EXECUTIVE SESSION OF' THE
HOUSE WAYS AND MEANS COMM:rFTEE,
OC'roBER 21, 1963
Before you consider the provisions of H.R.
8000 in detail, I would like to review briefly
the urgent need for this legislation, develop-
ments In our balance of payments during the
period since the interest equalization tax
was proposed on July 18, and the ways in
which the markets for foreign securities have
already adjusted to this proposal.
As you know, the interest equalization
proposal is for a temporary excise tax on
acquisitions from foreigners of both new and
outstanding foreign securities-whether debt
or equity-maturing in more than 3 years.
In the case of debt obligations, the amount
of the tax levied on the U.S. person acquir-
ing the security would be graduated by ma-
turity in a manner calculated to be equiv-
alent to approximately 1 percent in yield.
As this tax is passed back to the foreign bor-
rower, it will bring his net interest cast for
capital raised In our market into much
closer alinement with the costs prevailing in
other industrialized countries-thereby di-
verting to other markets a substantial por-
tion of the demands that would otherwise
reach our market. In the case of equities-
which, of course, have no fixed maturity-
the tax would be 15 percent, the same as the
rate applied to the longest dated bonds. Ac-
quisitions of foreign securities from other
U.S. persons would rempin free of tax, as
November I
would direct investment abroad and acqui-
sitions of the securities of developing coun-
tries.
H.R. 8000 provides that, with certain excep-
tions, the tax would be applied to all acqui-
sitions after July 18, when the President
first proposed this measure. Participants in
the markets have thus been conducting their
affairs in that knowledge for more than 3
months. I believe that experience over this
period has amply confirmed. our initial judg-
ment that this temporary tax will be an ef-
fective means for assuring the needed reduc-
tion in the outflow of portfolio capital, while
preserving the essential freedom of the mar-
ket to raise and distribute this capital on
the basis of price and other competitive cri-
teria. A number of more or less technical
amendments to the bill will be helpful In
meeting certain special problems that have
been brought to our attention and in clari-
fying the application of the tax to certain
types of transactions. We are, of course,
prepared to work closely with the commit-
tee in resolving these problems. But the
basic provisions of the bill as proposed have,
in our judgment, successfully net the dual
test of effectiveness and market practica-
bility.
At the time I testified before this com-
mittee in August with respect to the interest
equalization tax, I pointed out that a sharply
accelerating outflow of portfolio capital had
been responsible for a marked deterioration
in our overall balance-of-payments position.
Purchases by U.S. investors of new foreign
securities doubled between 1961 and 196:1,
rising from a little over $500 million in 1.961---
a figure well within the normal range of
recent years-to more than $:i billion last
year. During the first half of 1.963, the out-
flow almost doubled again, exceeding $1 bil-
lion in this 6-month period.
Meanwhile, our balance-of-payments defi-
cit--excluding all special intergovernmental
transactions-rose by over $500 million In
1962 and by $900 million more, at an annual
rate, during the first 6 months of this year.
These increases, closely paralleling the steeply
rising outflow of portfolio capital, brought
this deficit on regular transactions to an
annual rate of $4.5 billion. I wish to stress
that, while there were numerous offsetting
changes in the composition of our deficit on
regular transactions between 1961, when it
totaled $3,043 million, and the first 6 months
of 1963, when it averaged $4,480 million at an
annual rate, the entire deterioration is more
than accounted for by the sudden and un-
precedented increase in the purchase of new
foreign security issues by American investors.
This phenomenon totally transformed our
overall balance of payments and created a
situation which, if allowed to continue,,
would have inevitably resulted in a major
crisis in the international payments system,
the dangerous consequences of which for the
security and well-being of our Nation and
for the free world as a whole can hardly be
exaggerated.
It is true that we have been successful in
absorbing a portion of the dollars passing
into foreign hands as a result of this deficit
on regular transactions by medium-tern
Treasury borrowing from other countries in
a strong balance-of-payments position, by
prepayments of debts owed to us by our
allies, and by other special intergovernmental
transactions. But by mid-year it had be..
come apparent that, along with savings in
other directions, prompt and decisive action
was required to curtail the enormous out-
flow of portfolio capital if we were to arrest
and reverse the deterioration in our overall
accounts, and thus assure our continuing
ability to finance our deficit in an orderly
manner and to protect the stability of the
dollar.
That, of course, Is the special purpose of
the Interest equalization tax, which comple-
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