AUTHORIZING THE SALE OR LOAN OF NAVAL VESSELS TO FRIENDLY LATIN AMERICAN COUNTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500260005-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: September 22, 2003
• Sequence Number: 5
• Publication Date: August 30, 1965
• Content Type: OPEN

pigd~~orjl dpse 2003/1 WN& ft f $0(1D5001 II85 4 21303
Their contribution total was $85,006. Federal fund,' away of defraying the -CORRECTION OF ROLLCALL
The Curtis Hotel received $27,240 for costs that will be quite obviously re- Mr. ROSENTHAL. Mr. Speaker, on
office space; the Leamington hotel re- quired, if we do not utilize the Geneva rollcall No. 253 I was recorded as not
ceived$20,405 for office space; the Leam- headquarters of this association. voting. I was present and voted "yea,"
ington Hotel also received for the rental Mr. FASCELL. Mr. Chairman, I rise and I ask unanimous consent that the
of the Illinois and the Minnesota rooms in opposition to the substitute amend- RECORD be corrected accordingly.
$4,800. ment.
The cost of stationery was $1,823. The Mr. Chairman, while I appreciate what The there SPEAKER. tRIs there gentleman objection to
New
to
cost of equipment rental was $56. Per. the distinguished gentleman from New York?
sonnel, salaries for typists, and other Jersey is doing with his substitute in Tker s no objection.
clerical help was $27,077, and overtime striking out some of the restrictive lan-
paid for locally recruited help was $3,600. guage in the amendment, I must con-
This made up the local contribution. tinue to oppose the proposed reduction (AUTHORIZING THE SALE OR. LOAN
It was willingly received. in the amount of the authorization, The OF NAVAL AUTHORIZING
VESSELS L FRIENDLY
As you know, the authorization was in increase in the size of the World Health
the amount of $400,000, but only $320,000 Organization, the normal increase in LATIN AMERICAN COUNTRIES
was actually used. A little more than costs over the past 10 years, argue Mr. TRIMBLE, Mr. Speaker, by di-
that was . appropriated, but $12,639 went against such a reduction. Therefore, it rection of the Committee on Rules, I call
back to the Treasury. seems to be the better part of wisdom up House Resolution 521 and ask for its
to have an authorization at the $500,000 immediate consideration.
Mr. Chairman, I am sure the great city figure. The Clerk read the resolution as
same of kind d of of Given the facts and knowledge we have follows:
churtttsBoston will and the make great the State
of what was actually spent for the Min- H. RES. 521
effort. neapolis meeting, and given the facts Resolved, That upon the adoption of this
Mr. Chairman, I feel that the amend- we have available to us 10 years later, resolution It shall be in order to move that
ment which has been offered by the gen- it would seem to me we have to stick to the House resolve itself into the Committee
tleman from Iowa [Mr. GRossl Is un- the $500,000 authorization, and defeat of the Whole House on the State of the
necessary at this time, and I ask for the the amendment offered by the gentleman Union to the consideration of
er sale or the boill Y na R.
defeat of the amendment. from New Jersey. vessels to friendly Latin American countries,
AMENDMENT OFFERED BY MR. FRF,LINOHUYEEN The CHAIRMAN, The question is on and for other purposes. After general de-
Mr, FRELINGHUYSEN. Mr. Chair- the substitute amendment offered by the bate, which shall be confined to the bill and
man, I offer a substitute amendment. gentleman from New Jersey [Mr. shall continue not to exceed one hour, to be
The Clerk read as fb110WS: ? FRELINGHUYSENI. equally divided and controlled by the chair-
Amendment offeed by Mr. FRELINGHUYSEN The substitute amendment was re- man and ranking minority member of the
ected. Committee on Armed Services, the bill shall
m a substitute for eh2amendmenr offered j be read for amendment under the five-
"$500,000" " GROSS: Page line 5; strike out The CHAIRMAN. The question now minute rule. At the conclusion of the con-
and insert "$4 00,000". recurs on the amendment t offered by the con-
sideration of the bill for amendment, the
Mr. FRELINGHTII'jEN. Mr. Chair- gentleman from Iowa [Mr. GRossl. Committee shall rise and report the bill to
The amendment was rejected. the House with such amendments as may
man, the intent of my substitute amend- The CHAIRMAN. Under the rule, the have been adopted, and the previous ques-
ment is to strike the language offered Committee rises. Lion shall be considered as ordered on the
_ by the gentleman from Iowa [Mr. Accordingly, the Committee rose; and bill and amendments thereto to final passage
GROSS], that in order to qualify for this the Speaker having resumed the chair, without intervening motion except one mo-
Federal money, the State of Massachu- tion to recommit. Mr. setts or the city of Boston, must make Committee e of f Iowa, thee WhoolChairman e le H Houuse se of on the the The SPEAKER. The Chair recog-
available $100,000 from its own resources Co
with which to defray the costs of this State of the Union, reported that that nizes the gentleman from Arkansas [Mr.
proposed assembly. Committee, having had under considers- TRIMBLE( for 1 hour.
Mr. Chairman, it is my conviction that tion House Joint Resolution 403, Pur- Mr. TRIMBLE. Mr. Speaker, I yield
suant to House Resolution 501, he re- the gentleman from California [Mr.
this is probably an undue restriction on ported the resolution back to the House SMITH] 30 minutes, and now yield myself
the funds which res might make avail- with an amendment adopted by the such time as I may consume.
able under this resolution. It is cer- Committee of the Whole. Mr, Speaker, House Resolution 521
Willy far more rigorous than was ap- The SPEAKER. Under the rule, the provides an open rule with 1 hour of gen-
plied to the city of aMinneapolis and the previous question is ordered. eral debate on H.R. 7811, a bill to author-
State of Minnesota. The question is on the amendment. ize the sale or loan of naval vessels to
However, Mr. Chairman, I do feel The amendment was agreed to. friendly Latin American countries, and
that to authorize $400,000 rather than The SPEAKER. The question is on for other purposes.
$500,000 is not unreasonable. the engrossment and third reading of the H.R. 7811 would authorize the sale or
I would point out that this is the same resolution. loan of 12 vessels of the destroyer and
amount that was actually authorized The resolution was ordered to be en- submarine categories of the Reserve Fleet
when the assembly was held in Minne- grossed and read a third time, and was to certain friendly Latin American coun-
apolis in 1958, but actually only $332,000 read the third time. tries. This is to enable the Latin Amer-
was appropriated, which means if we The SPEAKER. The question Is on ican navies to 'continue replacement of
should appropriate the full amount to passage of the resolution. obsolete ships and standardization on
be authorized, the $400,000, we will have The resolution was passed. general-purpose units suitable and el-
an increase of $68,000, or, roughly, 20 A motion to reconsider was laid on the fective for peacetime surveillance of
percent over what was made available as table. coastal waters, support of counterin-
not sure t suure how much c al w much cos in 1e I am surgency operations in coastal areas,
t owooulld t increased think nk that GENERAL LEAVE TO EXTEND and wartime patrol of convoy routes
ev n t With hat an time. increIase w from 85 to 125 REMARKS along their coasts.
eu assembly, y, Mr. FASCELL. The Cost of this bill will be between
there countries participating in the a unanimous consent that at all Members may b, I ask $38 and $80 million depending upon the
there would not be so ]rgr eatbsorb b by asa unaniti days in which to o extend extent of overhaul and modification per
that 0 could not be aed d by a have 5 legislative n on the resolution tjust ust formed, and whether title to the ships is
$4i, figure, ptheir assed. purchased by the recipient countries.
Mr, Chairman, I would mpr m that this pass. This cost will be borne entirely by the
requeest st of of SPEAKER. the g the there gentleman objection
from m recipient countries.
would be a reasonable scenting ing se the l loo- ex- the e The
pressing cation our interestfn scenting
c of the assembly at Boston, Mass., Florida?
tt,jj House Resolution 521.
alld JLff.W6F 2eT&V$$ O br f CIAT & 9g844fiR000500260005-4 , Speaker, I urge the adoption of
Ap
 Appi For Release 2003/10/15 C~dAMS%jl8Nr` L6KE(;URD 60H8USE August 30, 1965
W. SMITH of California, Mr. Speak- Union for the consideration of the bill (H.R. and the previous question shall be considered
er, I yield myself such time as Lmay 7813) to authorize the loan of naval vessels as ordered on the bill and amendments
require. 0 friendly foreign countries: After,general thereto to final passage without intervening
Mr; Speaker, House Resolution 521 will debate, which shall be confined to the bill motion except one motion to recommit.
provide 1 hour of debate with an open aad shall continue not to exceed one hour,
to be equally divided and controlled by the Mr. TRIMBLE. Mr. Speaker, I yield
rule for the consideration of H.R. 7811. chairman and ranking minority member of 30 minutes to the gentleman from Call-
Immediately following this resolution, the Committee on Aimed Services, the bill fornia [Mr. SMITH], who has already ex-
Mr. Speaker, we will have House Resolu- sl{all be read for amendment under the five- plained this legislation, pending which
tion 522, which provides for the consid- minute rule. At the conclusion of the con-
I yield myself such time as I may
eration with 1 hour of open debate for sideration of the bill for amendment, the Consllllre
H.R. 7812. Cmmrittee shall rise and report the, bill to
Immediately following that we will the House with such amendments as may Mr. Speaker, House Resolution 522
Resolu- Will nave been adopted, and the previous question provides an open:rule with 1 hour of gen-
- have mediate yelfoll wing that
silall be considered as ordered on the bill and eral debate for consideration of H.R.
tion 523, with 1 hour of open debate for amendments thereto to final passage without 7812, a bill to authorize the loan of naval
the consideration of HR. 7813. intervening motion except one motion to vessels to friendly foreign countries, and
These bills are all out of the Com- recommit. for other purposes.
mittee on Armed Services, Mr. Speaker, The SPEAKER. The Chair recognizes H.R. 7812 would authorize the loan of
and they all apply to the same purpose, the gentleman from Arkansas [Mr. two submarines to Italy and a helicopter
In other words, the purpose of these TUMBLE]. carrier to Spain. The submarines to be
bills is to make possible the further sale Mr. TRIMBLE. Mr. Speaker, I yield loaned are of the l3alao class-1,500 tons.
or loan of U.S. naval vessels to friendly 3C minutes to the gentleman from Cal- The helicopter carrier is of the Cabot
countries. H.R. 7811 covers Latin Amer- ifornia [Mr. SMITH], who has already ex- class-11,000 tons.
lea; H.R. 7812 covers Italy and Spain; plained this resolution and now yield my- The cost of H.R. 7812 win be approxi-
HR. 7813 covers China, Turkey, and the self such time as I may require. mately $20.5 million and will be borne
Philiupines.
als: the loan or sale to Argentina of three
destroyers; to Brazil of four destroyers;
to Chile of two destroyers; to Peru of
two destroyers; to Venezuela of one sub-
marine. The cost of between $38 to
$80 million will be borne by the
recipients.
MR. 7812 covers the following loans: to
Italy of two submarines; to Spain of one
helicopter carrier. The cost of $20.5 mil-
House Resolution 1122.
Mr. Speaker, I move the previous
question.
The previous question was ordered.
The resolution was agreed to.
A motion to reconsider was laid on the
table.
to China of one destroyer and two de- vr' A Y1tUGUAM
stroyer escorts; to Turkey of two destroy- ache cost of the bill will be between $17 OF CASH AWARDS TO MEMBERS
and $26 million, depending upon the ex- OF THE A :D FORCES
ers; to the Philippines of one destroyer
tent of overhaul- and modification per-
escort. The cost of $17 to $26 million formed. Mr. TRIMBL Mr. Speaker, by di-
wall be borne by the recipients. Mr. Speaker. I urea the a dnntlnn of rection of the Co mittee on Rules, I call
.~ ~?.nwr,ru,
sa
States le of has
marved $41,406,345 from the agleeing "Al question is on
to the resolution. Resolved, That r:~cin t e adoption of this
sale of a submarine. 'rue resolution was agreed to. resolution it shall ~bte in order to move that
laid _~ .r._ the House resolve :elf into the Committee
Mr. Speaker, there are no minority t. motion ..
t.. reconsider
as
union for the consideration of the bill (H R.
they are out of the committee unanl- 8333) to amend title 10, United States Code.
mnllSly. I know of nn nhient:,.,, t,. ?,,...... ,-~~ - I
rules, Mr. Speaker, and reserve the bal- AC r kiU&UZM LOAN OF NAVAL VES-
once of er a pro-
' gram of cash ewer s for cations, sugginven-
m9 time. SELS To FRIENDLY FORFIG tions, or scientist hieve,nPnta by members
Mr
THIM
.
BLE. Mr. Speaker, I move
the previous question on the resolution.
The previous question was ordered.
The SPEAKER- The question is on
the resolution.
The resolution was agreed to,
A motion to reconsider was laid on the
table.
ORIZING LOAN OF VESSELS TO
TURKEY, CHINA, AND THE PHILIP-
PINES
Mr. TRIMBLE. Mr. Speaker, by direc-
tion of the Committee on Rules, I call up
House Resolution 523, and ask for its Im-
mediate consideration.
The Clerk read the resolution, as
follows:
H. Has. 523
Resolved, That upon there adoption of this
resolution It shall be in order to move that
the Rouse resolve Itself into the Committee
A14f &ir v`bFR1e&S*20e3Y1l/1'& :
provides an open rule with 1 hour of gen-
eral debate for the consideration of HR.
7813, a bill to authorize the loan of naval
vessels to Turkey, China, and the Philip-
pines.
H.R. 7813 would authorize the loan of
sin: vessels of the destroyer and destroyer
escort categories of the reserve fleet to
Turkey. China, and the Philippines.
Th.e destroyers that are to be loaned are
of the Fletcher class-2,100 tons. The
destroyer escorts are of the Bostwick
-
- -- ' ----?-
uovernment oper ions. After general de-
rection of the Committee on Rules, I call bate, which shall confined to the bill and
up House Resolution 522, and ask for its shall continue not to exceed one hour, to be
imclediate consideration, equally divided an controlled by the chair-
The Clerk read the resolution, as man and ranking m:lnority member of the
fell 3ws: Committee on Ar ed Services, the bill shall
H. be read for amen ant under the five-minute
Resolved, That upon At the conci sion of the consideration
the adoption of this of the bill for raiment, the Committee
reseolluution it shall ibe -in {order*to move that shall rise and rep rt the bill to the House
ion .ous the bill question and shall be
Union for the consideration of the bill (H.R. consider etas ?ide e n rd e...
meats the as t amend-
7812) to authorize the loan of naval vessels manta thereto to al passage without Inter-
friendly foreign countree and for mwe..
bill
bill for amendment, the Committee shall rise Provides an op in rule with 1 hour of
and report t?fe 41 ytye,~0,geperal debate r consideration of H.R.
W#~kffi bk3 ~hbtli 83`b3, a bill to amend title 10, United
 4pp~ yed&oq 'ease 2003/1005TCPJESRI U AROD U 6OQ2Gd if.5-4 21305
States Code, to provldii ort the estab- to authorize-the sale or loan of naval Prior to 1951, U.S. naval vessels were
lishment of a prog m of cash awards vessels to friendly Latin American coun- transferred to friendly foreign nations
for suggestions, invle rtions, or scientific tries, and for other purposes, and ask under the provisions of the Mutual As-
as
Defense Act of 1949
sistanc
b
achievements by me bers of the Armed
Forces which contrib to to the efficiency,
economy, or other li rovement of Gov-
program. ...:.
Military and civilia
the same limits-
existing civilian
receive a sizable
unds for a sound
has reconsidered its position in the light
of the success of the inc ntive pay pro-
it service and
of this recon-
sideration,DOD has recd nized the value
of the proposed military i centive awards
program and strongly f Tors this legis-
lation.
Mr. Speaker, I urge
House Resolution 524.
Mr. SMITH of C
Speaker, I yield myself
May consume.
Mr. Speaker, House
.general debate for the
.... ..... ...
H.R. 8933.
This particular bill,
it, will permit membe
services to participate
awards when they
Resolution 524
e and 1 hour of
,
e con-
e
unanimous consent that it may
sidered in the House as in the Committee amended. In 1951, the Congress passed
of the Whole. Public Law 82-3 (10 U.S.C. 7307). This
The Clerk read the title of the bill. law, as codified, is as follows:
The SPEAKER. Is there objection to RESTRICTION ON DISPOSAL
the request of the gentleman from South (a) Notwithstanding any other provision
Carolina? of law, no battleship, aircraft carrier, cruiser,
There was no objection. destroyer, or submarine of the Navy may be
The Clerk read the bill, as follows: sold, transferred, or otherwise disposed of,
H.R. 7811 unless the Chief of Naval Operations certi-
fies that it is not essential to the defense of
Be it enacted by the Senate and House the United States.
of Representatives of the United States of (b) Without authority from Congress
America in Congress assembled, That not- granted after March 10, 1951, no battleship,
withstanding section 7307 of title 10, United aircraft carrier, cruiser, destroyer, or subma-
States Code, or any other law, the President rive that has not been stricken from the
may sell or lend, at his discretion, to friendly Naval Vessel Register under section 7304 of
foreign nations of Latin America from the this title, nor any interest of the United
reserve fleet, on such terms and conditions States in such a vessel, may be sold, trans-
as he deems appropriate, destroyers and sub- ferred, or otherwise disposed of under any
marines as follows: law.
(1) Argentina, three destroyers, (2) Brazil
four destroyers, (3) Chile, two destroyers,
(4) Peru, two destroyers, (6) Venezuela, one
submarine.
Sec. 2. All expenses involved in the aetiva-
tion, rehabilitation, and outfitting (includ-
ing repairs, alterations, and logistic support)
of vessels transferred under this Act shall
be charged to funds provided by the recipient
government under the reimbursable provi-
sions of the Foreign Assistance Act of 1961,
SEc. 3. Notwithstanding sections 7304 and
7305 of title 10, United States Code, should
the President determine that the vessel or
vessels shall be sold to the recipient gov-
ernment, said vessel or vessels shall be
stricken from the Naval Vessel Register. The
vessel or vessels shall be sold at not less
than $1,000,000 each over and above any
cost of activation, overhaul, or modification.
All sales will be made pursuant to the For-
eign Assistance Act of 1961, as amended, or
successor legislation
s of the armed shall be for periods not exceeding five years,
connection with but the President may in his discretion ex-
This is similar 4 programs for other mace on cne conaluon Inez cney may Pe
Government employee who are per- terminated at an earlier date if necessitated
.,. ., by the defense requirements of the United
seems fair that this rovision should u 9RC. 5. No sale or loan may be made under
apply to members o t armed services. this Act unless the Secretary of Defense,
For any particular uggestion which after consultation with the Joint Chiefs of
is accepted, no mattes how many per. Staff, determines that such sale or loan is
sons participate, they is a maximum in the best interests of the United States.
limit of $25,000 on th amount which The Secretary of Defense shall keep the Con-
can be paid relative th reto. gress currently advised of all sales or loans
We have bad little experience with made under authority of this Act.
SEC, 6. The President may promulgate
this particular ~progral It is more or such rules and regulations as he deems
less starting in this wa , so there is no necessary to carry out the provisions of this
way to estimate what the total cost Act.
might be at this time. SEC. 7. The authority of the Presidentto
Mr. Speaker, I know o no objection to sell ors lend naval vessels under this Act
time. Mr. RIVERS of South Carolina. Mr.
Mr. TRIMBLE. Mr. peaker, I con- Speaker, I move to strike out the last
cur in what the gentle. an from Call- word.
A UWtion to reconsiger was
the table.
separately. But with your indulgence,
I think they can best be dealt with if I
make remarks at this time on all three
of them.
Since that time, 17 laws relating to
ship transfers have been enacted by the
Congress. Eleven? of these provided au-
thority for new loans and extensions of
existing loans, and the other six dealt
with loan extensions only.
These laws have authorized the loan
of 94 ships, the transfer of 9 ships, and
the sale of 4 ships. Of the 94 ships au-
thorized for loan, 72 have actually been
loaned; of the 4 ships authorized for sale,
1 has been sold; all of the 9 ships' trans-
fers have been effected.
To date, ship loan laws have involved
an expenditure of $158,981,000 in the
activation, rehabilitation, and outfitting
of vessels.
On the other side of the ledger, the
United States has received $41,406,345
from the sale of a submarine to Vene-
zuela and from the activation, rehabili-
tation, and outfitting of vessels which
have been paid for by the recipient
countries.
All of the ships in these bills are now
in the Reserve Fleet-or as it is some-
times called-the mothball fleet. There
is no intention at this time to use any of
these ships in our own Active Navy, and
the very best use to which they can be put
is to place them in the hands of our
friends and allies in order that they may
perform naval functions that are both of
benefit to the recipient country and a
very considerable benefit to us.
As I am sure I do not need to tell you,
our worldwide defense commitments
have re$uired-and still do require-
large allocations of our resources of
manpower, equipment, and money. It
has been our constant goal to obtain a
larger and more equitable allied partici-
pation in and contribution to free world
development with a corresponding de-
crease in the burden of high costs which
we now are bearing. The ships that will
be loaned under the authority of these
three bills will support this goal.
With but limited cost to the United
States in men, money, and materials, cer-
tain ships now contributingonly poten-
tial readinessin our Reserve Fleet, can
be converted to actual operational naval
strength in the hands of our allies.
Mr. Speaker, we have for considera-
ion, tion today three very similar bills. I
., taaa, nIAvi,c,cp...q*._ Yvvhe? ar+a befpre.Ido,t rat I.th}nk it rpight be help- mobilization role; however, from a strict-
Mr RI ? o#,S~gg~h~q p1p~a ~y1~~k tp~SiBlf i3` ~~h.r 0rA military s#andpohit, they are, of course
! Y, rp*84011~1H!#i7'tht,~h,y1~ fr1?~i~~~~~buch more valuable asset when over-
 hauled and modernized to an appropriate
degree, strategically dispersed through-
out the world, and operational in the
hands of our allies.
The military requirements for the loan
of these ships has been thoroughly vali-
dated by the country team, the unified
commander, and the Joint Chiefs of Staff.
In every instance It has been deter-
mined that the recipient country has
both the manpower and technical ability
to operate the ships efficiently and ef-
fectively.
N.R. 7511
",H.R. 7811, the first of these 3 bills,
would authorize the loan of 12 vessels to
the following South American countries:
Argentina, 3 destroyers; Brazil, 4 de-
stroyers; Chile, 2 destroyers; Peru, 2 de-
stroyers; and Venezuela, 1 submarine..
I will draw your attention to the fact
that's list of the ships now on loan to
these countries appears on page 3 of the
committee report.
H.R. 7811, then, would authorize the
loan of 11 destroyers and 1 submarine.
I want to point out that there are in the.
2"es&yve. fleet today 134 destroyers and 9
submarines.
The Department estimates that this
bill will cost the countries concerned
somewhere between X38 and $80 million.
The actual Cost depends on a number of
things, such as the condition of the hull
and machinery of the particular ships
chosen for loan, the length of time since
the ship was active, and the type of in-
stalled equipment, such as radars, radios,
fire control equipment, and so forth.
Also, and this is true only with respect
to H.R. 7811, the South American coun-
tries, under the wording of this bill, have
the option to purchase any of these ves-
sels. If a country does choose to buy a
vessel, the cost to that country will be
the total cost of the reactivation, over-
haul and modernization, plus $1'million.
I have stated that the estimated cost
of this bill to the recipient countries will
be between $38 and $80 million; anedu-
cated guess of the actual cost to them is
$68.68 million, and a breakdown of the
cost of each country is set out in a readily
will be borne by the individual recipient
country..
.a,. NA. 7812
$ will now turn to U,R, 7812. Every-
thing that I have said with respect to
'7811 applies to this bill, too, with
the single exception that no sales are
contemplated.
This bill would authorize the loan of
two submarines to Italy and one hell-
C.opter carrier to Spain.
The cost of this bill to Italy and Spain
-1s estimated. to be $20.5 million, A
breakdown of these costs appears on the
seoend table on page 4 of the committee
report. arid a listing of the ships now on
Joan to Italy and Spain appears on the
~i~ @@ B SE August 30, 1965
H.R. 7813 Mr. GROSS. Mr. Speaker, will the
H.R. 7813 would authorize the loan gentleman yield?
o.! the following ships:
Itepubhc of China, one destroyer and
tigo destroyer escorts; Turkey, two de-
stroyers; and the Philippines, one de-
stroyer escort.
,Most of the considerations which I
have mentioned with respect to the other
tigo bills apply equally to this bill.
Only loans-no sales-are contem-
plated by this bill.
You will recall that at the beginning
0]4 niy statement I noted an Important
difference between H.R. 7813 and the
o :ier two bills. That difference is re-
flected in the language of the Pill on
page 2, lines 1 through 5. You will note
that section 2 of H.R. 7811 and H.R.
7.112 states that,,.
Ail expenses will ? ? ? be charged to funds
provided by the recipient government under
the ? ? ? provisions of the Foreign Assist-
In the case of H.R. 7813 that section
reads:
All expenses shall be charged to funds pro-
gamed for the recipient government as grant
allitary assistancq or is reimbursable, under
the provisions of the Foreign Assistance Act.
?Under this language two courses of
action are possible. First, If It is deter-
fr ined that the recipient countries are
able to pay for the costs associated with
these ships, then they will be required
to pay these costs. However, if the
countries are found to be unable to pay
the costs, then the costs will be paid by
the United States as grant military
assistance.
In any event, the costs associated with
the ships In this bill will total between
$.7 million and $26 million, but it is not
possible to say at this time how much, if
any, will be paid by the United States
and how much by the recipient countries.
Also, the question of the particular ships
chosen, the condition of their hulls and
machinery, and the amount of work
which will be performed in the United
States and the amount of work to be per-
formed in the recipient country all will
have a bearing on the actual cost. A
breakdown of these costs appears on page
3 of the report. A list of the ships now
on lean to these three countries also ap-
prs on page 3.
Mr. Speaker, that concludes my state-
input on these three bills with the pxcep-
ti7n of these very important references:
First, these loans will be for a period
of 5 years but extendable for an! addi-^
ti4nal period of 5 years if the President
determines that that is in out best
interests.
'Second, all ships can be recovered by
the United States at any time If our de-
fense requirements so require, and
Third, no loan may be made unless the
Sicretary of Defense, after consultation
with the Joint Chiefs of Staff, determines
that such loan it In the best interests of
the United States.
top table on that same page. Included As I have already stated, the passage them have been doing at one time or
.
in the $20.5 million Is the cost of 6 hell- of these three bills will, with very, little, another, the property of our business-
copters for the helicopter carrier. These if any, cost to the United States, convert men and investors.
helicopters are of the SH/3A type and what is only potential readiness in our' Mr. RIVERS of South Carolina. I
carry the popular name of Sea Bring. Reserve Fleet to actual operational', naval concur in what the gentleman says.:[ do
Apps @dil *e48yaQ 11Yd M/15 : CI r 6~'I 6f0 (b~2 t105 lot think this should be a practice. I
Mr. RIVERS of South Carolina. I am
delighted to yield to the gentleman from
Iowa.
Mr. GROSS. What is the meaning of
the language on page 10 of the report
and which appears again on page 11 of
the report where it says as follows:
The costs for activation and rehabilitation
of the vessels will be charged to funds pro-
vided by the recipient government under the
reimbursable provisions of the Foreign As-
sistance Act of 1861,
Does this mean that foreign aid money
is being used, or what is the precise
meaning of this language?
Mr. RIVERS of South Carolina. Mr.
Speaker, these are merely the mechanics
or the method whereby these countries
reimburse our country in dollars for the
purchase of materiel and the activation
cost of these ship loans. However, there
is a difference In I3.R. 7813 which permits
grant aid-in which case the cost would
be borne by our taxpayers through the
foreign aid program.
Mr. GROSS. May I ask the question
again? Are funds taken from military
assistance in the foreign aid program
used for this purpose?
Mr. RIVERS of South Carolina. Only
In the case of H.R. 7813, relating to the
ship loans to China, Turkey, and the
Philippines-in which case it can either
be reimbursable or grant aid.
Mr. GROSS. So that in any event the
taxpayers of the United States pay for
it, do they not?
Mr. RIVERS- of South Carolina. Yes,
It is quite possible that the cost of the
ship loans to China, Turkey, and the
Philippines will be borne by the United
States.
Mr. GROSS. So the beneficiary coun-
tries do not pay, but we pay.
Mr. RIVERS of South Carolina. That
Is my understanding.
Mr. GROSS. ]: would like to ask the
gentleman further whether any of these
so-called friendly foreign countries set
forth in this bill-and, incidently, I
guess the President makes the deter-
mination as to whether they are friendly
or not, does he not?
Mr. RIVERS of South Carolina. Right
here on page 8 of the report on this bill,
H.R. 7811, is a definition of what a
friendly nation is. This has to be de-
termined by the ]?resident. There is no
other way it may be done.
Mr. GROSS. Are any of these coun-
tries-Brazil, Chile, Peru, or Venezuela-
presently expropriating American prop-
erty and the investments of American
businessmen? Does the gentleman
]mow?
Mr. RIVERS of South Carolina. I did
not read the paper very fully this morn-
ing but I do not think as of today
they have.
Mr. GROSS. I do not understand
why we would be giving them anything
if they are expropriating, as most of
 Appr4 WF rleIJ9i2003/10/15 S 1IDi A4.6R%Mt2&OQQ SE
agree with what the gentleman says, and Mr. PELLY. Mr. Speaker, I note that and also permit a certain standardiza-
I think the House agrees with him, too. Brazil is on this list. The President of tion between our country and the South
Mr. GROSS. I would like to be cer- Brazil has taken a trip to Moscow re- American countries to the end that our
tain that none of these countries are con- cently or is due to go there soon. I am common interests can be effectively car-
flscating any property of American Ott- not sure how long Brazil will be friendly. ried out.
sons and still getting a handout in the I do not Pretend to know myself what the In large part, the loan of these ships to
form of warships. situation is and whether or not these South America and to the other coun-
Mr. RIVERS of South Carolina. Mr. naval vessels might be used against us. tries are for the Purpose of coastal water
Speaker, as I say, this bill H.R. 7811 would Mr. RIVERS of South Carolina. Un- surveillance. We all know how impor-
cost in. the neighborhood of $68 million. derstand, the President of the United taut that is today.
The cost will be borne, by the recipient States has to approve the transfer of our own naval forces, although very
countries. I say the recipient countries each one of these vessels. Our passing large, are simply not capable of assum-
may want to buy these ships in which these bills does not ipso facto transfer ing antisubmarine warfare roles in these
case this may be done by the payment of them to the recipient countries. Since areas throughout the world. The loans
an additional amount of $1 million. 1951 we have prohibited the transfer of will permit our friends to do this for us
This amount represents .10 percent of any combatant ship without a specific and for themselves.
the original acquisition Cost of these act of Congress. This would authorize Some of us here on the floor today are
ships. . the President, if he is satisfied with all aware that we have held some highly ef-
Mr. Speaker, let me make clear that these guarantees under all these guide- fective antisubmarine warfare training
we have no present need for these ships. lines, that the transfer of these ships un- exercises with our South American
They all come from the Reserve Fleet, der the restrictions that I have outlined friends. These exercises have clearly
They can only be properly and efficient- would be proper. demonstrated the great value of stand-
ly utilized after modernization along the Mr. PELLY. Mr. Speaker, I do not ardizing equipment and training toward
lines of our FRAM program. If a friend- like to count on the President to decide an improvement of our collective
ly government gets one of these ships- what my responsibility is. That is my strength.
and they are friendly as determined by responsibility. Without additional testi- We passed a ship loan bill in 1958
the State Department, and the Presi- mony as to the need of this legislation which provided, among other things, for
dent of the United States-this activa- to allow transfer of U.S. naval vessels to the loan of ships to South American
anon and modernization will be effected Latin American countries, I must vote countries. All or most of those countries
and these ships will then further aug- against the bill. immediately took action to scrap, lay up,
ment the free world's ability to counter Mr. Speaker, my responsibility Is to or inactivate tonnage well beyond that
any aggression. either vote for or against this legislation. received in the loans. It is safe to as-
Mrr. GRASS. Mr, Speaker, will the I am concerned that It is not good legis- sume that the same action will be taken
gentleman yield? lation and it Is not in the best interests if this bill is passed. It is obvious that
Mr. RIVERS of South Carolina. I am of the security of the United States. the only alternative would be a growing
delighted to yield. However, I am willing to at least admit obsolescence of their ships, a degrading
Mr. GROSS. If the Congress is going that I believe there are others who know of the South American role, and the very
to persist In this business of multibillion on that score better than I do. real possibility of them turning to other
dollar, annual multibillion dollar for- Mr. Speaker, all I can say is that I am countries for support.
eign give-away programs, I suspect that glad, at least, these ships are not going to
the purpose for which this money will be a nation which has been seizing our flsr Turning to H.R. 81 2 781
spent is probably as good or better than Ing vessels. I am thankful for that. R. 7812, this bill would loan most of the others. But I still come back Mr. BATES. Mr. Speaker, I move to authorize the two ub a marines to helicopter sly.
to the question whether we are aiding strike the last word. to Spain and two
costs ve Italy.
and abetting countries which have no (Mr. BATES asked and was given per- Again, all those two costs involved will so
hesitancy in confiscating American prop- mission to revise and extend his re- will borne r hasex helicopters Spain also
erty. I question under the friendliness marks.) the will purchase six hr.coAseth fch use on
of any of, the country on this lits if they Mr. BATES. Mr. Speaker, the chair- led out, the only As the chairmen
permit Aerican investors. to come into man of the committee has described this pointed out, the only difference
America Is
those countries and then seize the in- what each of these three ship loan bills bill and that for South America i-
vestments. will do. phat only loans-no sales-are contem-
Mr. PELLY. Mr. Speaker, will the Plated by H.R. 7812.
gentleman yield? I would like to restrict my remarks, to H.R. 7513
Mr. RIVERS of South Carolina. I the more general picture of why it is in The third bill, H.R. 7813, would au-
yield to the gentleman, our own best interests to engage In a pro- thori loan of three destroyers and
Mr. PELLY. Mr, Speaker, I would like gram of this kind. ze a three destroyer escorts to countries on
.to say, that as far as I can see this legis- First, I would like to stress that while the rim of the Communist world. These
lation will not strengthen our national the recipient foreign nations will receive countries are Turkey, the Republic of
security nor promote world peace. i am some internal benefit by reason of hav- China, and the Philippines.
pleased to observe, however, that at ing these ships in their possession, our This bill is somewhat different from
least there are no Latin American coun- own interest is in providing the where- the first two in that provision is made for
tries named in this bill that have, like one withall for friendly foreign nations to do the costs being borne by our own country
South American country, seized our fish- Jobs that have to be done and which In if such appears to be necessary.
ing boats. Ecuador, by claiming a terri- many instances we ourselves would have In my own opinion; it will be money
torial sea or fishing zone of 200 miles has to perform if we did not loan these ships. well spent if that does turn out to be the
used Its navy to seize our fishing boats, H.R. 7811 case. I should point out, however that
fining them, and using that as a sort of The first of these bills, H.R. 7811, pro- Prior to the allocating of grant aid in the
international blackmail. Poses the loan or sale of 11 destroyers case of H.R. 7813, a very close examina-
I am not going to actually oppose this and 1 submarine to the South American tion Is made to see whether these three
bill. I just do not think it is going to do countries enumerated by the chairman countries, China, Turkey, and the Phil-
very much good, but perhaps It will not do and set out in the bill itself. These ippines, can pay the bill. This is a de-
muc6 halm ,It.a. few destroyers would loans will involve no cost to the United tailed procedure and is not for a moment
be ,helpful in opposing Castro's Commu- States and will provide a more effective to be thought of as casual in any sense.
nlst expansion, I would favgr..the bill. _ and economical means by which our If they can pay, they have to pay. But
Mr. RIVERSS of South Carolina. Each country can assist the South American pay or not, our best interests, as I have
of these recipient countries has been navies to improve their forces. said, are served by placing these ships in
screened and., approved by the country Many of the naval ships now in the the hands of our friends for the reasons
team in this country. Each of them must possession of South American countries I have referred to previously.
approved, by the Navy Department, are obsolete. These loans will permit And that is the picture of this ship
Xte and Defense Departments, h n legislation. We will, as the chair-
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A
man has stated so well., convert potential ity to operate these ships, not all are
strength to actual strength by taking able to pay the large-scale costs of modf-
ships from the mothball fleet and putting fications to any new ships or engage in
them in operation. a large modification program. It is for
It is not every piece of legislation about this reason that the United States is pro-
which it can be said that all interested viding the ships on a loan basis in the
parties will receive a benefit-I think interest not only of itself, but of our
that can be very accurately said about democratic allies in Latin America, all
these three ship loan bills, dedicated to combating communism near
Mr. SELDEN. Mr. Speaker, I move to our borders.
strike the requisite number of words. It Is. not wise for us to be in a posi-
(Mr. SELDEN asked and was given tion where all Communist insurgencies
permission to revise and extend his re- or limited war naval tasks throughout
marks,) the world must be assumed by the United
Mr. SELDEN. Mr. Speaker, I rise in States. Every necessary task a friendly
support of H.R. 7811, which authorizes foreig:i navy undertakes, frees the
the sale or loan of naval vessels to sev- United States from the obligation to pro-
eral friendly Latin American nations. vide for its accomplishment. Our ship
This legislation will allow the sale or loan program has shown excellent, results
loan of three destroyers to Argentina, in the past in this respect. The proposed
four destroyers to Brazil, two destroyers loan or sale of ships to South American
to Chile, two destroyers to Peru, and one navies to support an antisubmarine war-
submarine to Venezuela. fare capability in the South Atlantic and
The presence of a Communist base in South Pacific, represents a very modest
the Caribbean, Mr. Speaker, has in- investment as compared to what it would
creased the need for additional naval sur- cost the United States to duplicate the
veillance by the nations of Central and effort. Navies of the four naval powers
South America. In addition, Russia has of South America which are involved
extended her submarine capability in re- have a high competence and a century-
cent years to the Western Hemisphere. old tradition as deepwater sailors in
During hearings on "Communism in which they take great pride. Personnel
Latin America," conducted last February of these navies have today great admira-
by the Subcommittee on Inter-American tion for our Navy and without excep-
Affairs, there was discussion concerning tion are firm friends of the United
the increased difficulty of surveillance States.
Russian-built harbor fa- The proposed legislation supports U.S.
when the new
Italians. It seems to me their economy
cilities at Havana are completed. policy, strengthens free world forces, en- d shape. Why de on
Increasing amounts of the available hances U.S. forward security, and im- pretty good is In sell these pretty used sh submarines Italians
e. Why d Iwe not;
capital of our Latin American allies are proves the U.S. balance of payments. .
being allocated to increase the standard Most important it converts the potential instead of giving or loaning them? If
of living of their people and to curb spi- of a portion of the Reserve Fleet to ac- they are loans, they are giveaways be-
raling inflationary trends. Conse- tual operating naval strength, strategi- cause we will never get them back.
quently, many of our Latin American cally dispersed and operational in the Mr. RIVERS of South Carolina. Mr.
friends are unable to finance construction hancs of our allies at minimum cost to Speaker, will the gentleman yield?
of new ships which they so vitally need us. Mr. GROSS. I yield to the gentleman.
to replace obsolete vessels. We have The SPEAKER pro tempore (Mr. Mr. RIVERS of South Carolina. Mr.
ships available in our reserve fleet that ASPIVALL). The question is on the en- Speaker, later on they may want to buy
are not being used by the United States, gros::ment and third reading of the bill* these ships. We are not putting out It
and they can be modified or overhauled The bill was ordered to be engrossed nickel of our money.
in a relatively short time. It is my un- and read a third time, and was read the Mr. GROSS. Why do we not just sell
derstanding that the overhauling and third time. ' them now to the Italians-they have
modification work will be done in the The SPEAKER pro tempore. The money?
United States and paid for by the recipi- question is on the passage of the bill. Mr. RIVERS of South Carolina. The
ent nations. The bill was passed. NATO team in Italy may recommend
The sale or loan of these I l ships to our A motion to reconsider was laid on the such a course. But :I recall to the atten-
South American sister republics will pro- table. N tion of the gentleman that we have no
vide the most economical and practical NAVA ., ~~17(I present need for these ships. Italy is
means by which the United States can ATHE LOAN OF NV going to recondition them and do all the
TO ITALY AND SPAIN 11 necessary work and they are to be placed
assist these navies in improving their r AUTHORIZING
effectiveness. Needless to say, increased at the disposal of the NATO command.
naval strength of friendly Latin Ameri- Mr. RIVERS of South Carolina. Mr. Mr. GROSS. Wlsat are the Italians
can countries means increased naval sur- Speaker, I call up the bill (H.R. 7812) going to do with them?
Therefore, ce in the Western Hemisphere. to authorize the loan of naval vesseo Mr. RIVERS of South Carolina. They
fore, not only will the passage of rpo eforeign countries, and for other her are going to use it.
H.R. 7811 be advantageous to the coun- putho'; the and ask unanimous consent Mr. GROSS. For what?
tries affected, but definite advantages tha; the bill be considered in the House Mr. RIVERS of South Carolina. For
will accrue to the United States as well. as in the Committee of the Whole House the NATO mission assigned to the navy
Mr. Speaker, I urge approval of the on the State of the Union. of Italy.
pending measure. The Clerk read the bill, as follows: Mr. GROSS. They would not man
(Mr. SELDEN asked and was given H.R. 7812 them and do something in our behalf;
permission to revise and extend his re- se it enacted by the senate and House would they?
marks.) of itepr sentatines of the United States of
Mi. TIASCELL. Mr. Speaker, I wish ArVsUa in congress assembled, That, not- Mr. RIVERS of South Carolina. They
to point out that the ship loan program withstailding.section 7307 of title 10, United are doing something in our behalf be-
states Code, or any other law, the President cause it comes under our fleet command
contemplated under this bill is in support ma" lend to friendly foreign nations, on such which is at the Mediterranean Headquar-
of countries very close to those threat- terns and conditions as he deems appro- ters and enables us to hold the fleet at the
ened with subversion by the Communist prix te, ships from the reserve fleet as for- disposal of the NATO commander.
world, and is an essential security re- lows: Mr. GROSS. How would it be to get
~1~t~e?ne for h Unite~t States. Al- (I) Katy, two submarines, and (2) Spain, few of these people to whom we have
Apt#ida ,oar -the 0t~7fliA151- QF}R`R0R*IBOQP$46R000500260005 1 chWKW
SEC. 2. All expenses involved in the activa-
tion, rehabilitation, and outfitting (includ-
ing repairs, alterations, and logistic support)
of vessels transferred tinder this Act shall
be charged to funds provided by the recipient
government tinder the reimbursable Pro-
visions of the Foreign Assistance Act of 1961,
as amended, or successor legislation.
Sec. 3. All loans executed under this Act
shall be for periods not exceeding five years,
but the President may in his discretion ex-
tend such loans for an additional period of
not more than five years. They shall be
made on the condition that they may be
terminated at an earlier date if necessitated
by the defense requirements of the United
States.
SEC. 4. No loan may be made under this
Act unless the Secretary of Defense, after
Consultation with the Joint Chiefs of Staff,
determines that such loan is in the best
interest of the United States. The Secretary
of Defense shall keep the Congress currently
advised of all loans made under authority
of this Act.
SEC. 5. The President may promulgate
such rules and regulations as he deems neces-
sary to carry out the provisions of this
Act.
SEC. 6. The authority of the President to
lend naval vessels under this Act terminates
on December 31,1967-
The SPEAKER pro tempore. Is there
objection to the request of the gentle-
man from South Carolina?
There was no objection.
Mr. GROSS. Mr. Speaker, I move to
strike the requisite number of words.
Mr. Speaker, I ant unable to under-
stand why we should give anything to the
 Y
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August 30, 1965 CONGRESSIONAL RECORD - HOUSE
been giving warships, to send a few regi-
ments or battalions of troops out to
Vietnam? Do you know of any Italians
who are doing any fighting in Vietnam?
I don't know of any.
Mr. RIVERS of South Carolina. it
would suit me fine if you could get them
Mr. GROSS. Still we are giving them
warships.
Mr. RIVERS of South Carolina. Italy
Is a very conscientious and a very re-
sponsible member of NATO. Italy Is do-
ing a magnificent job and the Italian
navy is doing wonderful work there.
Mr. GROSS. They are not spilling
any guts and blood in Vietnam; are
they?
Mr. RIVERS of South Carolina. The
gentleman must remember this. We
have our 6th Fleet in the Mediterranean
and Italy is giving us help In logistics of
all kinds of any part of NATO. If there
is any country that has done more than
Italy, I have not heard of it. I enthus-
iastically recommend that these ships go
to these countries. Of course, Spain is
not a member of NATO but I know of no
better ally that we have than Spain.
I- Mr. GROSS. I thought we were
talk- ing about Italy.
Mr. RIVERS of South Carolina.
Spain is included in this bill too.
Mr. GROSS. Yes, I know it Is.
Mr. RIVERS of South Carolina. I was
just saying that Spain Is not a part of
NATO.
Mr. GROSS. I know that. But let
me call your attention to what President
Eisenhower said in his message to the
Congress, dated March 13. 1959. He
said:
As the result of our foreign aid-
our friends among the free world nations
make available to us 6 million ground forces,
80,000 aircraft, and 2,500 vessels.
So we continue to spread these vessels
out around the world and yet we do not
get a bit of. help in Vietnam where the
going is rough and tough and where
Americans are dying every day. When
are these people to whom we are giving
all this assistance and relieving them so
far as their economies are concerned-
when are they going to do a little real
helping out where it counts?
Where are the 5 million troops, the
30,000 aircraft, and the 2,500 vessels
that Eisenhower claimed would be avail-
able to us in exchange for the billions in
foreign aid for which Americans have
been taxed? Or have we been duped
again?
Mr. RIVERS of South Carolina. I
would suggest to the gentleman that this
secures one of our vital flanks to have
this flank of the American forces secure
In Italy. Having this flank of our forces
secure in this area enables us to do what
we are doing in Vietnam.
Mr. QRQSS. _I will say to the gentle-
man, if wp.pulled the 6th Fleet out of the
Mediterranean, we would not depend for
long upon the Italians or anybody else
In that area to take care of the situ-
ation; would we?
Mr. RIVERS of South Carolina. We
are not going to pull them out.
Mr. GROSS. What is that?
Mr. RIVERS of South Carolina. We
are not going to pull them out.
Mr. GROSS. I are sure we are not-I
hope we do not.
Mr. RIVERS of South Carolina. We
are not going to pull them out.
Mr. GROSS. But I say we could not
depend on the so-called allies in that
area any more than we can depend upon
them to help in Vietnam.
Mr. RIVERS of South Carolina. I am
sure the gentleman understands that
Italy is one of the great assets serving
as a flank for the 6th Fleet.
Mr. BATES. Mr. Speaker, I move to
strike out the last word.
Mr. Speaker, like the bill H.R. 7811,
which was just passed, this bill also pro-
vides for the loan of vessels to friendly
foreign countries.
Of course, there is always a doubt as
to whether or not we are doing the wise
thing and only the passage of time will
determine that. Only time Itself will
ever tell that tale. But we do know this.
We have hundreds of ships-134
destroyers at the present time In
our reserve fleet throughout the coun-
try. As one visits the shipyards on the
Atlantic coast and on the west coast,
one can see these ships rusting away.
It seems to me it is In our better interest
it we can have these ships rehabilitated
now so that if the time ever comes that
they might be needed, they will be ready
to be used rather than for us to have to
wait for 6 months or 18 months or
2 years to have these ships repaired.
Therefore, because of that reason I think
as well as In the interest of having a
force in being now, I believe this bill
that is now pending before us should be
passed.
(Mr. BATES asked and was given per-
mission to revise and extend his
remarks,)
The SPEAKER pro tempore (Mr. As-
P1NAaa). The question Is on the en-
grossment and third reading of the bill.
The bill was ordered to be engrossed
and read a third time, was read the third
time, and passed, and a motion to recon-
sider was laid on the table.
AUTHORIZING THE LOAN OF NAVAL
VESSELS TO FRIENDLY FOREIGN
COUNTRIES
Mr. RIVERS of South Carolina. Mr.
Speaker, I call up the bill (H.R. 7813) to
authorize the loan of naval vessels to
friendly foreign countries, and ask unan-
imous consent that It may be considered
in the House as in the Committee of the
Whole.
The Clerk read the title of the bill.
The SPEAKER pro tempers. Is there
objection to the request of the gentleman
from South Carolina?
There was no objection.
The Clerk read the bill, as follows:
H.R. 7813
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That not-
withstanding section 7307 of title 10, United
States Code, or any other law, the President
may lend to friendly foreign nations, on sue11
terms and conditions as he deems appro-
priate, ships from the reserve fleet as follows:
(1) China, one destroyed and two destroyer
escorts, (2) Turkey, two destroyers. and (3)
the Philippines, one destroyer escort.
SEC. 2. All expenses involved In the activa-
tion, rehabilitation, and outfitting (includ-
ing repairs, alterations, and logistic support)
of vessels transferred Under this Act, shall
be charged to funds programed for the re-
cipient government as grant military assist-
ance, or as reimbursable, under the provi-
sione of the Foreign Assistance Act of 1961,
as amended, or successor legislation.
Sac. 3. Loans executed under this Act shall
be for periods not exceeding five years, but
the President may In his discretion extend
such loans for an additional period of not
more than five years. All loans shall be
made on the condition that they may be
terminated at an earlier date If necessitated
by the defense requirements of the United
States.
Sec. 4. No loan may be made under this
Act unless the Secretary of Defense, after
consultation with the Joint Chiefs of Staff,
dotermines that such loan is in the best in-
terest of the United States. The Secretary
of Defense shall keep the Congress cur-
rently advised of all extensions or loans made
under authority of this Act.
Ste. 6. The President may promulgate such
rules and regulations as he deems necessary
to Carry out the provisions of this Act.
Sec. 6. The authority of the President to
lend naval vessels under this Act terminates
on December 31, 1967.
Mr. RIVERS of South Carolina. Mr.
Speaker. I move to strike the last word.
Mn GROSS. Mr. Speaker, will the
gentleman yield?
Mr. RIVERS of South Carolina. I
yield to the gentleman from Iowa.
Mr. GROSS. The supplying of these
warships to Turkey is not going to result
In an immediate call upon us by the
Greeks, is it?
Mr. RIVERS of South Carolina. I
am delighted the gentleman asked that
question. The Greek Navy comes up to
NATO standards. The Turkish Navy
does not. This will bring the Turkish
Navy up, so far as we know, to the stand-
ards applied by NATO,
Mr. GROSS. Under the present cha-
otic conditions In the Greek Govern-
ment, I would hope they would not ask
us now to bolster their military forces.
As one Member of the House of Repre-
sentatives, I would hesitate to do so at
the present time, as much as I admire
What I see going on there now cer-
tainly does not make it appear as though
they are going to arrive at a stable gov-
ernment in the near future.
If the gentleman will yield further, I
should like to refer for a minute to giv-
ing away and providing military assist-
ance all over the world and failing to
get any real help from the so-called
friendly nations in Vietnam and else-
where. I also call the attention of the
gentleman to late reports that the Rus-
sians are starting another buildup in
Cuba. If it Is true that they are again
embarked on a buildup in Cuba, we have
the right to. expect something different
from what we have had in the past from
the so-called friendly nations.
Mn RIVERS of South Carolina. That
is one of the reasons why we want to
secure our flanks. This NATO flank
must be secured..
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 CONGRESSIONAL RtCORD -- HOUSE
Mr. Speaker, at the conclusion of the
discussion and deliberations on this par-
ticular proposal, for the benefit of the
House I should like to place in the Rice-
aim certain additional data concerning
the ship loan program and a summary of
the loans contemplated under these bills.
Subtotal,,,,,,,,,,,,,
H.R. 7812_______..__
Subtotal.-.._____-
H.R. 78181 ___.___.____.
Subtotal______._..
Total___.__.__..
Argentina-_.----- _--_
IkaziL___-_______
Chile_________________
Peru-------- -____
Venezuela-_ ------ _--
-----
China- --------------
Turkey --------- ----
PhNppines__ __- -
--PREVIOUS SHIP LOANS AND TRANSPEAS SINCE
195,
Public Law 82-8, 10 U.S.C. 7307, requires:
Congressional approval of loans and trans-
fers of combatant ships (battleship, carrier,
cruiser, destroyer (DE), and subs).
Small ships-no legislation required (aux-
fliarics, landing craft., may be transferred,
etc., When Secretary of Defense determines
excess to mobilization requirement).
For existing ship loans to designated coun-
tries, see committee report.
Since 1951, 17 laws relating to Ship trans-
fers.
Number authorizing loan-------- 94
Executed -------------------- _ 72
Nether authorizing transfer-_-_ 9
Executed ---------------------- 9
Number authorizing sale --------- 4
Executed---------------------- I
Totals_______________ ____ 107 82
Ships In reserve fleet of the type subject to
these bills: AR. 7811, 7812, 7813:
Destroyers..----------------- ------------ 134
Destroyer escorts_______________________ 191
(5abgt class earriers__------------------- 3
Subinarines----------------- ------- ____ 9
TDta1 - ----------------------- 337
As of August1965 the reserve fleet con-
tained the following:
Sattleships--------- ------------------ 4
Cruisers ------------------------------- 25
Carriers_______________________________ 7
Destroyers; ----------------- ----------- lal
Submarines___________________________ 9
Amphibious ships---------------------- 78
Mine warefare ships____________________ 69
,Patrol ships (this includes 134 DE
type________________________________ 202
AuxIlinzy,ships ------------------------ 60
Total ---------------------------- 577
Mr. BATES. Mr. Speaker, I move to
strike out the last word.
Mr. Speaker, it had been our hope that
this question of whether these recipient
countries would pay for the rehabilita-
tionof these ships or not would have
been resolved by the time we had this
matter under consideration here. Un-
Approved For Release 2003/10/15
I ask unanimous consent that the sum-
mary may be printed in the RECORD.
The SPEAKER pro tempore. Is there
objection to the request of the gentleman
from South Carolina?
There was no objection.
The summary is as follows:
Destroyers lPtbmadnee
2
2_
Speaker, I ask oil
all Members may
days in which to
on Bach of the bil.
United States Co
establishment of
awards for sugg
scientific achieve
aid ask unanimo
b3 considered in
CIA-RDP67B
2
fortunately, it was not possible. Whether
we pay for it or whether there foreign
countries pay for it, I truly believe it is
in our national interest that this trans-
action take place.
I would also like to say there wasl not
one single dissenting vote against this
bill in our committee.
The bill was ordered to be engrossed
and read a third time, was read the third
time, passed, and a motion to reconsider
wat laid on the table.
GENERAL LE4AVE TO EXTEND
be given 5 legislative
extend their remarks
from South Carolina?
There was no objection.
e, to provide for the
a program of cash
ents by Members of
which contribute to
consent that the bill
e House as in Core-
nottee of the Who e.
The Clerk readl
e etj~l title of the bill.
-The SPEAKER ro tempore. Is there
objection to the r nest of the gentleman
There was no o ection.
The Clerk read the bill, as follows:
August 30, 1965
America in Congress assembled, That chapter
57 of title 10,r United States Code, is
amended-
(1) by adding $ie following new section at
the end thereof: (
"11124. Cash awards for suggestions, Inven-
tions, cjr scientific achievements
"(a) TheSecre?ary of Defense, or the See-
retary of the Treasury with respect to the
ment of a cash a
expense for the
"(b) Whenever the President considers it
desirable, the Seer tary of Defense, and the
Secretary of the Tr asu:ry with respect to the
Coast Guard when it Is not operating as a
25 55 service in the Navyt are authorized to pay a
cash award to, and incur necessary expense
11.74 for the honorary recognition of, a member
11-62 of the armed force who by his suggestion,
200 invention, or scte tlfie achievement con-
2d16 tributes to the eflic ncy, economy, or other
11 115.39 rent of the United States. Such award is
-~_ In addition to any other award made to that
member tender subjection (a).
ggestion, invention, or
it forming the basis for
while be was on active
Overall
cost
(millions)
817. 28
28'.04
it. 52
11.52
6 A2
a it is not operating as a
y, may authorize the pay-
rd to, and Incur necessary
ionorary recognition of, a
ned forces under his iuris-
suggestion,invention, or
rent contributes to the
or other improvement of
ms relating to the armed
but only If the si
scientific achieveme
the award was mad,
duty.
" (d) A cash away 'under this section is in
addition to the pa and allowances of the
recipient. The acce fiance of such an award
"(1) an agreemen by the member that the
use by the United St ter of any Idea, method,
or device for which 1the award is made may
not be the basis of a Ialm against the United
"(2) a warranty
has not at the time
activities benefltii{g, as may be determined
by the President fiir awards under subsection
(b), and by thel Secretary concerned for
awards under subfection (a).
gestlon, invention or scientific achievement
may not exceed 25,000, regardless of the
number of person who may be entitled to
"(g) Awards u der this section shall. be
made under regul Lions to be prescribed by
the Secretary of tense, or y the Secretary
of the Treasury ith respecbt to the Coast
Guard when it is tot operating as a service
in the Navy. Th Secretary of Defense and
the Secretary of he Treasury shall send to
the President an wally for transmittal to
Congress a progra i report, with appropriate
recommendations on the awards program.
" (h) For the irposes of this section, a
member of the lset and Geodetic Survey
or of the Public ealth Service who is aerv-
ing with an arms' force shall be treated as
if he were a rnem r of that armed force,";
 Appro gr it Release 2003/1 0/1 14t p1 AQ44 A''802aO MPg4 DIGEST
Elementary and Secondary Scliool Aid: By a record
vote of 303 yeas to 3~ nays the House passed H.R. 9022,
to amend. Public Laws 815 and 874, gist Congress, to
provide financial assistance in the construction and
operation of public elementary and secondary schools
in areas affected by a major disaster; to eliminate in-
equities in the application of Public Law 815 in certain
military base closings; to make uniform eligibility re-
quirements for school districts in Public Law 874.
Several committee amendments were adopted.
Pages 21278-21244.
World Health Assembly: By a voice vote the House
passed H.J.' Res. 403, authorizing an appropriation to
enable the U.S..to invite the World Health Organiza-
tion to hold the 22d World Health Assembly in Boston,
Mass., in 1969. Rejected amendments that sought to
reduce the appropriation from $500,000 to $400,000; and
to require the city or State to make $10o,ooo available
for expenses of the assembly. H. Res, 501, the rule
under which the legislation was considered, had been
adopted earlier by a voice vote. Pages 21295-21303
Naval Vessel Loans: By voice votes the House passed
without amendment the following bills:
I "I 7811, authorizing the sale or loan of naval vessels
H.R.
to friendly Latin American countries. H. Res. 521, the
rule under which the legislation was considered, had
been adopted earlier by a voice vote.
Pages 21303-21304, 21305-21308
H.R. 7812, authorizing the loan of naval vessels to
Italy and Spain. H. Res. 522, the rule making in order
the consideration of the legislation, had been adopted
earlier by a voice vote. Pages 21304, 21308-21309
H.R. 7813, authorizing the loan of naval vessels to
Turkey, China, and the Philippines. H. Res. 523, pro-
.viding for the consideration of the legislation, had been
adopted earlier by a voice vote. Pages 21304, 21309-21310
Military; Cash Awards: By a voice vote the House
passed H.R.8333,'establishing a program of cash awards
for members of the Armed Forces, with a committee
amendment. H. Res. 524, the rule under which the
legislation was considered, had been adopted earlier by
a'voice vote. Pages 21304-21305,21310-21314
Lobbyists: The compilation by the Secretary of the
Senate and the Clerk of the House of all registrations
and quarterly reports for the second quarter of x965
filed by persons engaged in lobbying activities, appears
in this issue of the Congressional Record.
Pages21343-21373
Bills Referred: Three Senate-passed bills were referred
'to appropriate committees. Page 21314
kecord Vote. One record vote developed during the
August 30, 1965
House will act on the conference report on H.R. 6927,
to establish a Department of Housing and Urban De-
velopment; and will consider the following bills:
H.R. 9042, to provide for the implementation of the
agreement concerning automotive products between the
Governments of Canada and the United States (3 hours
of debate);
H.R. 3141, health professions educational assistance
amendments of 1965 (2 hours of debate) ;
H.R. 3420, to promote economic growth by support-
ing State and regional centers to place the findings of
science usefully in the hands of American enterprise
(2 hours of debate); and
H.R. 5863, to authorize the Secretary of Commerce
to undertake research and development in high-speed
ground transportation (2 hours of debate).
Committee Meetings
WATERSHED PROJECTS AND LAND
CONSERVATION
Committee on Agriculture: Subcommittee on Conser-
vation and Credit held a hearing on watershed projects.
Testimony was heard from Representatives Haley and
Callan; and public witnesses.
The following two bills were also considered:
H.R. 3018, to provide for additional means and meas-
ures for land conservation and land utilization. Testi-
mony was heard from Representative Sikes and a depart-
mental witness.
H.R. 6575, to provide for additional measures and
types of assistance for carrying out plans for land con-
servation and land utilization. Testimony was heard
from Representative Olsen.
MILITARY REAL ESTATE
Committee on Armed Services: Subcommittee on Real
Estate met in executive session on various real estate
projects and approved the following:
ARMY (Disposals):
No. 2o3A-Part of the former Montgomery Air Force
Station, Ala.
No. 2o4A-Major portion of Lordstown Military Res-
ervation, Ohio.
No. 2o5A-Nike Battery N-36, Norfolk Defense
Area.
No. 2o7A-Sioux Army Depot, Nebr.
No. 2ogA-Portion of New Orleans Army Terminal.
No. 21o-Erie Army Depot, Ohio.
AIR FORCE (Disposals):
No. r64A-Hunter Air Force Base, Ga.
.No.166A-Qlmsted Air Force Base, Pa.
Tuesday, August 31, 1965, at 12 o'clock noon, when the on Domestic Finance continued hearings on S. 1698,
Approved For Release 2003/10/15: CIA-RDP67B00446R000500260005 4
 Au0P[0Y#d fpgf eleaseM"&Wtl*Id 14tpWM@pQ#4aR9A4M l4
Gilbert Stamm, Assistant Commissioner, Bureau of
Reclamation, Department of the Interior, who was
accompanied by his associates.
INDIANS
Committee on Interior and Insular Affairs: On Friday,
August 27, Subcommittee on Indian Affairs held hear-
ings on S. 2196, to authorize additional moneys for the
Indian revolving loan fund, and S. 2197, providing for
the guarantee and insurance of loans to Indians and
Indian organizations, with testimony from Harry An-
derson, Assistant. Secretary for Public Lands, Philleo
Nash, Commissioner of Indian Affairs, and other of-
ficials of the Department of the Interior.
Hearings were adjourned subject to call of the Chair.
RIGHT TO WORK
Committee on Labor and Public Welfare: On Friday,
August 27, committee continued its executive consider-
ation of H.R. 77, repealing the right-to-work provisions
(sec. 14(b)) of the National Labor Relations Act, and
proposed amendments thereto, but did not conclude
action thereon, and will meet again on Wednesday,
September r. .
Committee announced that it will vote on reporting
this bill to the Senate by Thursday', September at the
latest; that the minority would have 1 week to ;,)rcpare
its views on this legislation; and that if approved by the
committee the bill will be reported to the Senate by
Wednesday or Thursday, September 8 or 9.
HIGHER EDUCATION
Committee on Labor and Public Welfare: On Friday,
August 27, the Education Subcommittee, in executive
session, approved for full committee consideration with
amendments S. 6op, proposed Higher Education Act of
1965.
the full committee will meet in executive session to-
morrow to consider this and other pending bills.
FEDERAL EMPLOYEES' PAY
Committee on Post Once and Civil Service: Commit-
tee resumed its hearings on proposed Federal em-
ployees' salary legislation, with testimony from Nathan
T. Wolkomir, National Federation of Federal Em-
ployees; Russell Stevens, American Federation of Tech-
nitalEngineers; John P. Snyder, National Association
.of;Postmasters; Fred J. O'Dwyer, who was accompanied
by Donald Ledbetter and Daniel Jaspan, all of the Na-
tional Association of Postal Supervisors; and Sidney A.
Goodman, who was accompanied by David Silverglied,
both of the National Postal Union.
On Friday, August 27, committee received testimony
on this proposed legislation from E. C. Hallbeck and
Patrick J. Nilan, both of the United Federation of Postal
Clerks; John Griner and George Meagher, both of the
American Federation of Government Employees; Lewis
P. McCann, Vincent E. Jay, and Robert Ramspeck, all of
the Federal Professional Association; and John G.
Brady, National Association of Internal Revenue
Hearings
House oft Representatives
Chamber Action and Canada concerning automotive products, filed on
August 26 (H. Rept. 888) ;
Bills Introduced: 24 public bills, H.R. 10733-10756; H.R. 5664, providing for the disposition of judgment
5 private bills, H.R. 10757-10761; and 6 resolutio is, H.J. funds of the Klamath and Modoc Tribes and Yahooskin
Res. 644, H. Con. Res. 466, and H. Res. 552-555, were Band of Snake Indians (H. Rept. 889) ;
introduced. rave 21342 H.R.3715, to provide for the assessing of Indian trust
Bills Reported: Reports were filed as follows: and restricted lands within the Lummi Indian diking
H. Res, 548, open rule providing for the consideration project on the Lummi Indian Reservation in the State
of and 2 hours of debate on H.R. 3420, the Statr, Tech- ofWashington (H. Rept. 890); and
nical Services Act, filed on August 26 (H. Rep, 885); H.R. 8917, providing for the disposition of funds
H. Res. 549, open rule providing for the consideration appropriated to pay a judgment in favor of the Omaha
of and 2 hours of debate on H.R. 5863, regarding rapid Tribe of Nebraska, amended (H. Rept. 891).
transit-ground speed, filed on August 26 (H. Rept.
886) ; _ Pages 211411, 21341-21342
H. Res. 550, open rule providing for the consideration Defense Appropriations: The House disagreed to
of and i hour of debate on H.R. 4845, regarding auto- Senate amendments on H.R. 9221, making appropria-
matic data processing equipment, filed on August 26 tions for the Department of Defense for the fiscal year
(H. Rept. 887); ending June 30, 1966; agreed to a conference requested
H. Res. 551, providing fpr the consideration of, 3 by the Senate; and appointed as conferees Representa-
hours of debate on, and waiving points of order against tives Mahon, Sikes, Whitten, Flood, Thomas, McFall,
H.IApj WyatFdidAdeasg&WX1Gth.Evc4ZIAhRRUEM7BdC SRAQU5bd od&s*andBow. Page 21275