SUPPLEMENTAL APPROPRIATIONS, 1956

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January 1, 1955
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Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 1955 CONGRESSIONAL RECORD - SENATE 9905 money and contracts than any other Conflict of interest aside, this almost withhold information from the Congress agency of the Federal Government. unrelieved pattern meant it could not by omitting mention of Wenzell and the It will be recalled that of the nominees help but mean that Government was to conferences of Dixon-Yates in which he ticipated removed those for Secretary of Defense, Deputy Secre- be, by, of and for big business and parti what was repre sent d to be a dams tary of Defense, Secretary of the Army, banking. Secretary of the Air Force, and Secretary Although not a Cabinet member, the plete summary and chronology of the of the Navy, only the Secretary of the Director of the Bureau of the. Budget Dixon-Yates deal. Navy had anticipated the obvious con- wields great power. To this post the The great Senator from New Mexico flict of interest problem and taken steps President appointed a Detroit banker, [Mr. ANDERSON] deserves high credit for in advance to remove any such problem. who is once again a Detroit banker. the fine public- service he has rendered Messrs. Wilson, Kyes, Stevens, and This fitted the pattern-with what in disclosing these manipulations and Talbott not only did not anticipate the effect I shall discuss later in a little of aneuvBudgstin the part of the Bureau problem, but they initially resisted di- detail. vesting themselves of substantial hold- AN EARLY ATTACK UPON INDEPENDENT GOVERN- Dixon-Yates chronology. ings in corporations with which the De- MENT-ASTIN AND ADX2 ugs the President, BudgratDire for feiise Department dealt. Finally, and Early in the administration, the big- Hughes, s, o or any other r admi etiy on of- with reluctance, they surrendered their business philosophy which dominated kill nrebuked ot. stockholdings. Each one demonstrated the major Eisenhower appointments ently IN QUASI-JUDICIAL callous lack of understanding of the con- erupted into an open attack upon inde- SECRET INTERVENTIPRTCON ONDINGS flict-of-interest problem. pendence in the discharge of govern- But the deception does not end there. In the hearing on Roger Kyes' noml- mental functions. nation as Deputy Secretary, committee Assistant Secretary of Commerce In an attempt to secure congressional members expressed concern that his Sheaffer, of the Sheaffer Pen Co., at- approval of the President's request for close relationship with General Motors tempted to dismiss Dr. Allen Astin. over $6 million for a transmission line to would affect his impartiality in official What was Astin's offense? It was dili- carry Dixon-Yates power, Presidential dealings with that major Defense De- gent discharge of his duty. He insisted Assistant Sherman Adams secretly con- partment contractor. This exchange that the scientific tests of the United tacted Chairman Armstrong of the took place in the hearings: States Bureau of Standards, which he SEC, a recent Eisenhower appointee. Senator JOHNSON. Have you any plans or directed, showed that a battery additive He asked Armstrong to postpone a any agreements or agreement to return to did not do what was claimed for it by hearing at which Wenzell was to testify General Motors following your Government its manufacturer. just at the time the House of Represent- ice? seMr. Sheaffer contended that Astin paid in- atives was to consider the Dixon-Yates f Arm- Mr. because of General record, they has told me, the matter happy o ha eme come back at would be any ime.eYI tsufficient he market tplace. nAsto e standards of tin refused to play strong transmission-line discussed t his quasi my association with General motors, dead and pretend that ADX2 was a juldicialnstatus ifbutbgrane d the request. enjoyed but there is absolutely no commitment on battery cure-all. the part of either party with respect to the I was among the first in Congress to of course, in his quasi-judicial capac- future. protest this outrageous attempt to in- ity, what Armstrong clearly should have I do not question the reply made by timidate Government officials, to force said was that under no circumstances Mr. Kyes. It is important to bear in the Bureau of Standards to sacrifice its would he discuss the subject, because it mind that the discharge of the duties scientific standards, to impose the mar- involved the question of his judicial of Deputy Secretary could be affected, ket place standard of, "let the buyer be- responsibility. consciously or unconsciously, by the pos- ware." The outcry of scientists and cit- Armstrong says Adams told him he sibility, if not the probability, of his izens and the press forced a temporary wanted the delay because Attorney Gen- return to General Motors. retreat as Astin had his term extended eral Brownell was out of town. Cer- After serving 15 months as Deputy briefly. When the furore died down tainly the Department of Justice could Secretary, Kyes resigned on May 1, 1954, Atsin stayed on, and Sheaffer left Gov- whave made the thee ies tine tineopen h ring, and returned to General Motors as a vice ernment several months later. where protest. president. At no time did the President or Secre- behind-the-closed-door dis marked contrast to the open, dealing li is in addition to the Defense Depart- tary of Commerce disown or rebuke This ment nominees, other Cabinet appoint- Sheaffer's attempts. This, too, is an in to the open, on-th intervention Agriculture and thInteri Departments ments presented conflict-of-interest administration pattern-retreat under record cord marked problems, which, though solved formal- fire, but never reject conduct that is of AInterior in the before Hells ly with greater case, nevertheless raised against the public interest. Federal Power a Commission Fanyon case during the Truman the Hells the problem that big business and big DODGE, WENZELL AND ARMSTRONG tra on is. banking would be the dominant force in The sordid Dixon-Yates story is too The action of Adams and Armstrong the President's official family. well known to require minute repetition. constitutes a flagrant perversion of the The Secretary of the Treasury was the But the main outlines are part of the quasi-judicial functions of the SEC. head o the large banking and pattern. BEESON AND HOWREY AND LYONS business s cone concerns in the Nation-M. A. Banker Dodge, Director of the Budget Another set of nominations submitted Fianna & Co. Bureau, imported Banker Wenzell to par- by the President which are disruptive of The Secretary of manufacturing, Commerce was - ticipate in the planning of the attack up- gaged in n manufuring, and was a d di- even handed Government are those rector of large manufacturing compa- on TVA. Wenzell's firm, the First Boston which consist of appointing men who nies and the First National Bank of Bos- Corp. had a direct interest in the have represented the industry or inter- ton. Dixon-Yates combine as it was to handle ests subject to regulation. The Postmaster General also came financing of the scheme-without a fee, The most shocking examples were, from the ranks of General Motors, hav- the public is now assured. First. Beeson's appointment to the ing had one of the largest Chevrolet That is a very charitable gesture. Even NLRB in the light of his past activities assuming that no fee was intended for as an employer representative and his dealerships The Secretary of the Interior also had this financial service, Wenzell'scorpora- evasive testimony as to his continued a large General Motors dealership. tion has a indirect interest in promoting affiliation with his employer. The Attorney General came from one - the interests of its private utility custom- Second. Howrey's appointment as of the large New York law offices, repre- ers at the expense of TVA-and TVA's Chairman of the Federal Trade Com- senting large corporations. customers. This investment banking mission. He was one of the principal The other Cabinet members, with the house makes money from such transac- attorneys for anti-trust respondents in sole exception of Labor Secretary Dur- tions and is understandably eager to hem FTC proceedings; the subsequent weak- kin, were people who were associated in and destroy public power agencies. ening of the FTC has substantiated the with large business enterprises or pos- - The Bureau of the Budget went so far fears expressed before his confirmation. sessed great wealth. In its private utility partisanship as to The President's refusal to reappoint Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 t- Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 9906 CONGRESSIONAL RECORD - SENATE Commissioner Mead is part of the pat- tern of emasculating this Commission. Third. Lyons' appointment as Direc- tir of the Bureau of Mines. The hear- ings disclosed that he had a pension from a major mining company, and, In addition, was opposed to the mine safety law. When It became clear that his confirmation would not be possible, the nomination was withdrawn. However, it took an active fight on the floor of the Senate to focus public attention on this very unfortunate appointment. PACKING THE FEDERAL POWER COMMISSION The pattern of undermining the ad- ministrative process and rigging quasi- judicial agencies is no more clear than in the case of the Federal Power Com- mission. In early 1953 the President appointed Jerome Kuykendall as a new member and Chairman of the FPC. Kuykendall was the public utility commissioner of Washington State, an appointee of Gov- ernor Langlie, an outpsoken foe of Hells Canyon Dam. After Kuykendall was confirmed, retary of Interior McKay withdrew p- position to the Idaho Power Co. qtnall dam application and the Idaho Power Co. amended its application, Then the long-delayed hearings got underway. Subsequent appointments to FPC have completed the roster of antipublic power commissioners. WICKARD'S OUSTER, FAILURE TO REAPPOINT GORDON CLAPP The tampering with nonpartisan po- sitions included the forced withdrawal of Claude Wickard as Administrator of REA-a position which by statute is a nonpartisan one-before the end of his term. The refusal to reappoint Gordon Clapp as Chairman of TVA was certainly within the President's prerogative, However, the subsequent attack upon TVA Indi- cates that Clapp was considered too good and too tough to handle. His re- placement. General Vogel, whose con- firmation I opposed, has proved a willing colleague of the Budget Bureau In at- tempts to weaken TVA. OTHER EXAMPLES It would take too long to catalog every instance of Presidential appoint- ments that are inconsistent with impar- tial government. The attempts to turn the civil service into a Republican grab bag are part and parcel of this pattern. The invention of schedule C for so-called confidential employees has been used as a device to remove civil service protection from scores of positions. There have been fears that certain key positions under the Railroad Retirement Board would be so transferred. The pro- hibition against putting those positions under schedule C is the basis for some Republican opposition to the pending railroad retirement bill. PENDING PATTERSON NOMINATION Our principal ground of objection Is that Patterson would complete the roster of Commissioners whose main contact with the regulated industry has been with the security exchanges. This Is another example of delivering an administrative agency to the regu- lated industry. The administration has slipped through many objectionable and ques- tionable appointments. As we review this sorry list the pattern of bad ap- pointments and interferences with the administrative process has become clear. The President has either misused or shirked his resp sibility-either course amounts to ir' sponsibillty. The day easy confirmations of poor appoint is has come to an end. Not only th enatl', but, more importantly, the p le, are aroused and demand that Goyr-runent by, of and for big business SUPPLEMENTAL APPROPRIATIONS, 1956 The Senate resumed the considera- tion of the bill (H. R. 7278) making sup- plemental appropriations for the fiscal year ending June 30, 1956. and for other purposes. Mr. MANSFIELD. Mr. President, I suggest the absence of a quorum. The PRESIDING OFFICER. The Secretary will call the roll. The Chief Clerk proceeded to call the roll. Mr. MANSFIELD. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. HAYDEN. Mr. President, the pending supplemental appropriation bill for 1956, as it passed the House, pro- vided for an appropriation of $224,276,- 628. The amount of the increase recom- mended by the Senate committee is $1,601,834,986. This increase is mislead- ing, since many items of appropriations including well over a billion dollars for military construction were deleted on the floor of the House on points of order. , The authorizing legislation on military surveys to determine the most of acquiring construction had passed both Houses of and altering facilities which may be made for including Congress and was awaiting the signaturemensuittable pursu ant such to the work, second se employ- nce nce of nd d se of of the President which made the appro- section 708 (a) of the Organic Act of 1944 priation subject to a point of order. (5 U. S. C. 574), as amended by section 15 Other authorizing bills were in various of the act of August 2, 1948 (5 U. S. C. 55a). stages of the legislative process. $500.000, to remain available untL expended." The increase of the Senate committee On page 2. after line 19. to strike out: bill over the bill as reported to the House "EXTENSION SERVICE Is $177.235.486. In this connection it "PAYMENTS TO STATES, HAWAII, ALASKA, AND should be pointed out that the Senate PUERTO RICO committee considered budget estimates "For an additional amount for 'Payments in excess of the estimates considered by to States. Hawaii, Alaska, and Puerto Rico,' the House in the amount of $195,565,204. $1,2500,000." While this is labeled a supplemental At the top of page 3, to strike out: bill, I think it would be well to point out "FEDERAL EXTENSION SERVICE that over $1,290,000,000 is regular appro- "For an additional amount for 'Federal Ex- priations, rather than supplementals. Of tension Service,' for administration and co- this amount, $1,270,000,000 is for mill- ordination, $35,000." I am among the members of the taly construction for which the authori- On page 3, after line 3, to strtk.~ out: Banking and Currency Committee who zation had not been passed when the "SOtt. CONSERVATION SERVICE Defense Department appropriation bill "CONSERVATION OPERATIONS oppose the confirmation of Patterson as was before the committee. Of the re- "For an additional amount for 'Conserva- an SEC Commissioner. mainino $536 million in the bill, a por- tion operations,' $150.000." July 26 tion of the funds requested is to carry out measures enacted during this ses- sion; In fact, about $100 million con- tained In the bill is contingent on final enactment of measures now pending be- fore either the House or Senate, Mr. President, in view of the fact that In the House of Representatives so much of the bill was stricken on points or or- der. I ask unanimous consent that the committee amendments be agreed to en bloc; that the bill, as thus amended, be regarded for purposesof amendment as the original text; and that no point of order shall be considered to have been waived by agreement to this request. Mr. CURTIS. Mr. President, if all the committee amendments are agreed to en bloc, will it be in order for me to offer an amendment to a committee amendment? Mr. HAYDEN. Certainly. Mr. THYE. Mr. President, I wish to offer an amendment on page 3. Is this the proper time to do so? Mr. HAYDEN. Mr. President, I should like to have the committee amendments agreed to en bloc, and then have amend- ments offered from the floor. The PRESIDING OFFICER (Mr. PAYNE in the chair). Is the::'e objection to the request of the Senator from Ari- zona? The Chair hears none, and the committee amendments are agreed to en bloc. The committee amendments agreed to en bloc are as follows: Under the heading "Chapter I-Depart- ment of Agriculture," on page 2, after line 2, to insert: "AGRICULTURAL RESEARCH SERVICE "SALARIES AND EXPENSIIS "Not to exceed $25,000 of funds appro- priated under this head in the Department of Agriculture and Farm Credit Administra- tion Appropriation Act, 1958, for research, shall be available for construction of a build- ing at the United States Range Livestock Experiment Station, Miles City, Mont." On page 2, after line 10. to insert: "ANIMAL DISEASE LADORATORY FACILITIES "For preparation of plans ar.d specifica. tions for construction of facilities for ani- mal disease research and control and for Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 f Approved For Release 2010/05/05: CIA-RDP63TOO245R000100180016-4 1955 CONGRESSIONAL RECORD - SENATE On page 3, after line 7, to strike out: "AGRICULTURAL MARKETING SERVICE "MARKETING RESEARCH AND SERVICE "For an additional amount for 'Marketing research and service,' for marketing research and agricultural estimates, $250,000." On page 3, after line 12, to insert: "COMMODITY EXCHANGE AUTHORITY "For an additional amount for 'Commod- ity Exchange Authority,' $33,000." On page 3, after line 15, to strike out: "FARMERS' HOME ADMINISTRATION "SALARIES AND EXPENSES "For an additional amount for 'Salaries and expenses,' $830,000." On page 3, after line 19, to strike out, "OFFICE OF THE GENERAL COUNCIL "For an additional amount for 'Office of the General Counsel,' $36,000." And in lieu thereof to insert: "OFFICE OF THE GENERAL COUNSEL "For an additional amount for 'Office of the General Counsel,' $65,000: Provided., That this appropriation shall be effective only upon enactment into law of H. R. 5891, 84th Congress." On page 4, after line 3, to strike out: "OFFICE OF THE SECRETARY "For an additional amount for 'Office of the Secretary,' $19,000." On page 4, after line 6, to strike out: "OFFICE OF INFORMATION "For an additional amount for 'Office of Information,' $30,000." On page 4, after line 9, to insert: "AGRICULTURAL CONSERVATION PROGRAM SERVICE "Not to exceed $5,000,000 of the appropria- tion under the head 'Agricultural Conserva- tion Program Service,' in the Department of Agriculture and Farm Credit Administration Appropriation Act, 1935, shall be available for the purposes specified under the head 'Agricultural Conservation Program,' in the Second Supplemental Appropriation Act, 1955, and shall be merged with the amount provided therein." On page 4, after line 18, to insert: "COMMODITY CREDIT CORPATION "For the purpose of assisting the Commod- ity Credit Corporation in selling its agricul- tural commodities, the position of sales manager is hereby authorized in grade 17 of the General Schedule of the Classification Act of 1949, as amended, in accordance with the standards and procedures of that act." Under the heading "Chapter II-Depart- ment of Commerce-Civil Aeronautics Ad- ministration," on page 5, after line 3, to in- sert: "OPERATION AND REGULATION "For an additional amount for 'Operation and regulation,' $1,200,000." On page 5, after line 14, to insert: "MARITIME ACTIVITIES "MARITIME TRAINING "For an additional amount for 'Maritime training,' $115,000; and the limitation under this head in the Department of Commerce Appropriation Act, 1956, on the amount available for transfer to applicable appro- priations of the Public Health Service for services rendered to the Maritime Admin- istration is increased by $5,000." On page 5, after line 22, to insert: "REPAIR OF RESERVE FLEET VESSELS (LIQUIDA- DATION OF CONTRACT AUTHORIZATION) "The limitation under this head in the Department of Commerce and Related Agen- cies Appropriation Act, 1956, on the amount which may be advanced to the appropriation, 'Salaries and expenses, maritime activities,' for administrative expenses is increased from '$150,000' to '$330,000.' " On page 6, after line 4, to insert: "BUREAU OF PUBLIC ROADS "INTER-AMERICAN HIGHWAY "For an additional amount for 'Inter- American Highway,' as authorized by the act of July 1, 1955 (Public Law 129), $49,730,000, to remain available until expended." On page 6, after line 9, to insert: "WEATHER BUaEAU "SALARIES AND EXPENSES "For an additional amount of 'Salaries and expenses,' $1,500,000; and the limitation un- der this head in the Department of Com- merce and Related Agencies Appropriation Act, 1956, on the amount available for im- provement and operation of hurricane, severe storm, and tornado warning services, includ- ing research and construction of related facilities, is increased from '$4,250,000' to $5,750,000'." On page 6, after line 18, to insert: "SMALL BUSINESS ADMINISTRATION "SALARIES AND EXPENSES "For necessary expenses, not otherwise pro- vided for, of the Small Business Adminis- tration, including expenses of attendance at meetings concerned with the purposes of this appropriation and hire of passenger motor vehicles, $2,700,000; and in addition there may be transferred to this appropriation not to exceed $2,863,000 from the Revolving Fund, Small Business Administration, and not to exceed $535,000 from the fund for liquidation of Reconstruction Finance Cor- poration disaster loans, Small Business Ad- ministration, for administrative expenses in connection with activities financed under said funds: Provided, That the amount au- thorized for transfer from the Revolving Fund, Small Business Administration, may be increased, with the approval of the Bu- reau of the Budget, by such amount as may be required to finance administrative ex- penses incurred in the making of disaster loans." On page 7, after line 11, to insert: "REVOLVING FUND "For additional capital for the Revolving Fund authorized by the Small Business Act of 1953, as amended, to be available without fiscal year limitation, $25 million: Provided, That this appropriation and the appropria- tion to the Small Business Administration for 'Salaries and expenses', for the fiscal year 1956, shall be available only upon the enactment into law of S. 2127, 84th Congress, 1st session, or similar legislation. continuing the Small Business Administration during the fiscal year 1956." On page 7, after line 21, to insert: "UNITED STATES TARIFF COMMISSION "That part of title III of Public Law 121, 84th Congress, approved June 30, 1955, which pertains to the appropriation for the Tariff Commission for the fiscal year ending June 30, 1956, is hereby amended by changing the period at the end thereof to a colon and adding the following additional proviso: 'And provided further, That that part of the foregoing appropriation which is for ex- penses of travel shall be available, when specifically authorized by the head of the Tariff Commission, for expenses of attend- ance at meetings of organizations concerned with the functions and activities of the said Commission'." Under the heading "Chapter III," on page 8, after line 9, to insert: "CENTRAL INTELLIGENCE AGENCY CONSTRUCTION "For the preparation of detail plans and specifications of a Central Intelligence Agency headquarters installation and for 9907 other. purposes as authorized by title IV of the act of July 15, 1955 (Public Law 161), remain available until expended, $7,000,- 000, of which $4,000,000 shall be available for transfer to the National Capital Planning Commission and to the Department of the Interior for acquisition of land and construc- tion to extend the George Washington Memo- rial Parkway: Provided, That if it is deter- mined such headquarters installation will not be constructed at the Research Station of the Bureau of Public Roads at Langley, Fairfa,s County, Va., none of the funds shall be available for acquisition of land and con- struction to extend the George Washington Memorial Parkway and not to exceed $350,000 shall be available from such $4,000,000 for acquisition of land for the site of the headquarters installation." Under the heading "Department of De- fense-Military Functions," on page 9, after line 19, to insert: "DEPARTMENT OF THE ARMY "MILITARY CONSTRUCTION, ARMY "For acquisition, construction, installa- tion, and equipment of temporary or per- manent public works, military installations, and facilities, for the Army, as authorized by the act of September 28. 1951 (Public Law 155), the act of July 14, 1952 (Public law 534), the act of August 7, 1953 (Public Law 209), the act of July 27. 1.954 (Public Law 534), the act of September 1. 1954 (Pub- lic Law 765), and the act of July 15, 1955 (Public Law 161), without regard to sec- tions 1136 and 3734, Revised Statutes, as amended, including hire of passenger motor vehicles: to remain available until expended, $486.427.000, to be derived by transfer from the appropriation for 'Procurement and pro- duction, Army'." On page 10, after line 10, to insert: "DEPARTMENT OF THE NAVY "MILITARY CONSTRUCTION, NAVY "For an additional amount for acquisition, construction, installation, and equipment of temporary or permanent public works, naval installations, and facilities for the Navy, as authorized by the act of September 28, 1951 (Public Law 155), the act of July 14, 1952 (Public Law 534), the act of August 7, 1953 (Public Law 209), the act of July 27, 1954 (Public Law 534), the act of September 1, 1954 (Public Law 765), and the act of July 15, 1955 (Public Law 161), without regard to sections 1136 and 3734, Revised Statutes, as amended; including hire of passenger motor vehicles; furniture for public quarters; and personnel in the Bureau of Yards and Docks and other personal services necessary for the purposes of this appropriation; $443,278,300, to remain available until expended." On page 11, after line 2, to insert: "AUDITED CLAIMS "Applicable current appropriations of the Department of the Navy Shall be available for the payment of claims certified by the Comptroller General to be otherwise due, in the amounts stated below, from the follow- ing appropriations: "'Maintenance, Bureau of Supplies and Accounts,' fiscal year 1943. $171.43; "'Pay, subsistence, and transportation, Navy,' fiscal year 1943, $3,344.24: "'Maintenance, Bureau of Ships,' fiscal year 1946, $5,838.42; and "'Transportation of things, Navy,' fiscal year 1948, $1,359.86." On page 11, after line 15, to insert: "DEPARTMENT OF THE AIR FORCE "MILITARY CONSTRUCTION, AIR FORCE "For an additional amount for acquisition, construction, installation, and equipment of temporary or permanent public works, mili- tary installations, and facilities for the Air Force as authorized by the act of September Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 AOL Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 9908 CONGRESSIONAL RECORD - SENATE July 26 11, 1950 (Public Law 783), the act of Septem- U. S. C. 55a), at rates not in excess of $50 per ties, of transportation, but this proviso shall ber 28, 1951 (Public Law 155), the act of diem for individuals riot to exceed 10 in not apply to shipments made by individuals July 14, 1952 (Public Law 534), the act of number; translation rights, photographic to individuals: Provided further, That the August 7, 1953 (Public Law 209), the act of work, education exhibits, and dissemination President may transfer to any other depart- tio ti f f April 1, 1954 (Public Law 325), the act of of information, including preview and re- July 27, 1954 (Public Law 534), the act of view expenses incident thereto; hire of pas- September 1, 1954 (Public Law 765), and of senger motor vehicles and aircraft; repair the act of July 15, 1955 (Public Law 161), without regard to sections 1136 and 3734, Re- vised Statutes, as amended; including hire of passenger motor vehicles, including re- search and development facilities at Wright- Patterson Air Force Base, Dayton, Ohio; to remain available until expended, $1,078,649,- 000 of which $255,00,000 shall be derived by transfer from the appropriation 'Procure- ment and production,' Army: Provided, That not to exceed $350,000 of this appropriation shall be used for the purposes authorized by section 303 of the act of July 15, 1955 (Pub- lic Law 161)." On page 12, after line 13, to insert: "GENERAL PROVISIONS "SEC. 302. Funds appropriated to the mili- tary departments for military public works in prior years are hereby made available for military public works authorized for each such department by the act of July 15, 1955 (Public Law 161)." On page 12, after line 19, to insert: "SEc. 303. None of the funds appropriated in this chapter shall be expended for pay- ments under a'cost-plus-a-fixed-fee contract for work where cost estimates exceed $25,000 to be performed within the continental United States without the specific approval in writing of the Secretary of Defense set- ting forth the reasons therefor." On page 13, after line 2, to insert: "SEC. 304. None of the funds appropriated in this chapter shall be expended for addi- tional costs involved in expediting construc- tion, unless the Secretary of Defense certifies such costs to be necessary to protect the national interest and establishes a reason- able completion date for each such project, taking into consideration the urgency of the requirement, the type and location of the project, the climatic and seasonal con- ditions affecting the construction and the ap- plication of economical construction prac- tices." On page 13, after line 11, to insert: "SEC. 305. None of the funds appropriated in this chapter shall be used for the con- struction, replacement, or reactivation of any bakery, laundry, or dry-cleaning facility in the United States, its Territories or posses- sions, as to which the Secretary of Defense does not certify, in writing, giving his rea- sons therefor, that the services to be fur- nished by such facilities are not obtainable from commercial sources at reasonable rates." On page 13, after line 19, to insert: "SEC. 306. Funds appropriated to the mili- tary departments for construction are hereby made available for advance planning, con- struction design, and architectural services, as authorized by section 504 of the act of September 28, 1951 (Public Law 155)." Under the heading "Chapter IV," on page 14, after line 1, to insert: "DEPARTMENT OF DEFENSE-CIVIL FUNCTIONS "DEPARTMENT OF THE ARMY "Government and relief in occupied areas "For expenses, not otherwise provided for, necessary to meet the responsibilities and obligations of the United States in connec- tion with the government or occupation of the Ryukyu Islands, including, subject to such authorizations and limitations as may be prescribed by the head of the department or agency concerned, tuition, travel expenses, and fees incident to instruction in the United States or elsewhere of such persons as may be required to carry out the pro- visions of this appropriation; travel expenses and transportation; services as authorized by section 15 of the act of August 2, 1946 (5 and maintenance of buildings, utilities, facil- ities, and appurtenances; and such supplies, commodities, and equipment as may be es- sential to carry out the purposes of this ap- propriation; $3 million, of which not to ex- ceed $1,210,000 shall be available for admin- istrative and information and education ex- penses: Provided, That the general provisions of the Appropriation Act for the current fis- cal year for the military functions of the Department of the Army shall apply to ex- penditures made by that Department from this appropriation: Provided further, That expenditures from this appropriation may be made outside continental United States, when necessary to carry out its purposes, without regard to sections' 355, 1136, 3648, and 3734, Revised Statutes, as amended, civil service or classification laws, or provisions of law prohibiting payment of any person not a citizen of the United States: Provided fur- ther, That expenditures from this appropri- ation may be made, when necessary to carry out its purposes, without regard to section 3709, Revised Statutes, as amended, and the Armed Services Procurement Act of 1947 (41 U. S. C. 151-161) : Provided further, That ex- penditures may be made hereunder for the purposes of economic rehabilitation in the Ryukyu Islands in such manner as to be consistent with the general objectives of title II and III of the Mutual Security Act of 1954, and in the manner authorized by sections 505 (a) and 522 (e) thereof: Pro- vided further, That funds appropriated hereunder and unexpended at the time of the termination of occupation by the United States, of any area for which such funds are made available, may be expended by the President for the procurement of such com- modities and technical services, and com- modities procured from funds herein or here- tofore appropriated for government and re- lief in occupied areas and not delivered to such an area prior to the time of the termi- nation of occupation, may be utilized by the President, as may be necessary to assist in the maintenance of the political and eco- nomic stability of such areas: Provided fur- ther, That before any such assistance is made available, an agreement shall be entered into between the United States and the recog- nized government or authority with respect to such area containing such undertakings by such government or authority as the President may determine to be necessary in order to assure the efficient use of such as- sistance in furtherance of such purposes: Provided further, That such agreement shall, when applicable, include requirements, and undertakings corresponding to the require- ments and undertakings specified in section 303 of the Mutual Security Act of 1954: Pro- vided further, That funds appropriated hereunder may be used, insofar as practi- cable, and under such rules and regulations as may be prescribed by the head of the de- partment or agency concerned to pay ocean transportation charges from United States ports, including territorial ports, to ports in the Ryukyus for the movement of supplies donated to, or purchased by, United States voluntary nonprofit relief agencies registered with and recommended by the Advisory Com- mittee on Voluntary Foreign Aid or of relief packages consigned to individuals residing in such areas: Provided further, That under the rules and regulations to be prescribed, the head of the department or agency con- cerned shall fix and pay a uniform rate per pound for the ocean transportation of all relief packages of food or other general clas- sification of commodities shipped to the Ryukyus regardless of methods of shipment and higher rates charged by particular agen- unc ns on or unc ment or agency any provided for under this appropriation, and there shall be transferred to any such de- partment or agency without reimbursement and without regard to the appropriation from which procured, such property as the Director of the Bureau of the Budget shall determine to relate primarily to any function or functions so transferred." At the top of page 19, to insert: "CHAPTER V. GENERAL GOVERNMENT MATTERS EXECUTIVE OFFICE OF THE PRESIDENT "OFFICE OF DEFENSE MOBILIZATION "Salaries and expenses "For an additional amount for 'Salaries and expenses,' for carrying out the pro- visions of section 7 of the act of June 21, 1955 (Public Law 86), $100,000." On page 19, after line 8, to insert: "DISTRICT OF COLUMBIA AUDITORIUM COMMISSION "SALARIES AND EXPENSES "For necessary expenses to carry out the provisions of the act of July 1, 1955 (Public Law 128), $25,000." On page 19, after line 13, to insert: "FOREIGN CLAIMS SETTLEMENT COMMISSION "INTERNATIONAL CLAIMS "For expenses necessary to enable the Commission to settle certain claims as au- thorized by the act of March 10, 1950, as amended (22 U. S. C. 1621-1627), including expenses of attendance at meetings of or- ganizations concerned with the purpose of this appropriation; services as authorized by section 15 of the act of August 2, 1946 (5 U. S. C. 55a), at rates not to exceed $50 per diem for individuals; and employment of aliens; $400,000: Provided, That this para- graph shall be effective only upon enactment into law of H. R. 6382, 84th Congress, 1st session." At the top of page 20, to insert: "PRESIDENT'S COMMISSION ON VETERANS' PENSIONS "For expenses necessary for a special study of the veterans' compensation and pensions program, to be expended as the President may direct, $300,000." On page 20, after line 4, to insert: "SEC. 502. Appropriations contained in title I of the General Government Matters Appropriation Act, 1956, available for ex- penses of travel shall be available, when specifically authorized by the head of the activity or establishment concerned, for ex- penses of attendance at meetings of organi- zations concerned with the function or ac- tivity for which the appropriation concerned is made." In the heading on page 20, line 12, after the word "Chapter" to strike out "V" and insert "VI." Under the heading "Independent Offices- Federal Civil Defense Administration-Op- erations," on page 20, line 16, after the word "Operations", to strike out "$650,000" and in- sert "$1,000,000." Under the subhead "Surveys, Plans, and Research," on page 21, line 1, after "55a", to strike out "$8,000,000" and insert "$12,000,- 000." On page 21, after line 2, to insert: "SALARIES AND EXPENSES, CIVIL DEFENSE FUNC- TIONS OF FEDERAL AGENCIES "For necessary expenses to enable depart- ments and agencies to discharge civil defense responsibilities delegated under the authority of section 201 (b) of the Federal Civil De- fense Act of 1950, as amended, including ex- penses of attendance at meetings concerned with the purposes of this appropriation, and Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 Approved For Release 2010/05/05: CIA-RDP63TOO245R000100180016-4 CONGRESSIONAL RECORD -SENATE the purchase of materials and supplies neces- sary thereto, $3,050,000." On page 21, after line 11, to insert: "GENERAL SERVICES ADAIINISTRATION "SITES AND PLANNING, PURCHASE CONTRACTS, AND PUBLIC BUILDINGS PROJECTS "For expenses necessary in carrying out the provisions of the Public Buildings Purchase Contract Act of 1954 (68 Stat. 538), $15,- 000,000, to remain available until expended and to be in addition to and available for the same purposes as any unobligated balances which have been or may be made available, by any law enacted during the first session of the 84th Congress, for carrying out the pur- poses of said act: Provided, That any such unobligated balances may be consolidated with this appropriation." On page 21, after line 23, to insert: "The aggregate of annual payments for amortization of principal and interest thereon required by all purchase contracts entered into during the fiscal year 1956 pur- suant to the Public Buildings Act of 1949 (63 Stat. 176), as amended by the Public Buildings Purchase Contract Act of 1954 (68 Stat. 518), shall not exceed $10,000,000, in addition to the unused portion of the $5,- 000,000 limitation applicable prior to July 1, 1955, under section 411 (a) of the said Public Buildings Act of 1949, as amended." On page 22, after line 8, to insert: "ACQUISITION OF LAND, DISTRICT OF COLUMBIA "For expenses, not otherwise provided for, necessary for acquisition by purchase, con- demnation, or otherwise of a portion of the land, including improvements thereon, in square 62, District of Columbia, $300,000, to remain available until expended: Provided, That the Administrator of General Services is authorized to exchange the same or a part thereof for any other land in said square on such terms and conditions as the Administra- tor may determine with the approval of the National Capital Planning Commission." On page 22, after line 18, to insert: "REPAIR, IMPROVEMENT, AND EQUIPMENT OF FEDERALLY OWNED BUILDINGS OUTSIDE THE DISTRICT OF COLUMBIA "For an additional amount for 'Repair, Improvement, and equipment of federally owned buildings outside the District of Co- lumbia', $1,150,000, to remain available until expended: Provided, That the limitation under this head in the Independent Offices Appropriation Act, 1956, on the amount available for expenses of travel, is increased from '$145,000' to '$155,000'." On page 23, after line 3, to insert: "OPERATING EXPENSES, FEDERAL SUPPLY SERVICE "For an additional amount for 'Operating expenses, Federal Supply Service', $200.000; and the limitation under this head in the Independent Offices Appropriation Act, 1956, on the amount available for travel expenses is increased by $1,000." On page 3, after line 9, to insert: "EXPENSES, CENERAL SUPPLY FUND "For an additional amount for 'Expenses, general supply fund', $1,000,000, of which $300,000 shall be for nonrecurring moving and space costs In connection with the relo- cation of warehouse management and other employees into office space in regional ware- houses; and the limitation under this head in the Independent Offices Appropriation Act, 1956, on the amount available for expenses of travel is increased by $22,500." On page 23, after line 18, to insert: "Survey of Government Records, Records Management, and Disposal Practices, General Services Administration: For necessary ex- penses, including not to exceed $50,000 for administrative expenses, in connection with conducting surveys of Government records, and records creation, maintenance, manage- ment and disposal practices in Federal agen- cies, pursuant to sections 505 and 506 of the Federal Property and Administrative Services Act of 1949, as amended, $300,000: Provided, That notwithstanding any other provision of said act, the Administrator shall have final authority in all matters involving the conduct of surveys and the implementation of recommendations based on such surveys: Provided further, That the 1 year limitation in section 208 (b) of the Federal Property and Administrative Services Act of 1949, as amended, shall not apply to the procurement of services in connection with the conduct of such surveys: Provided further, That a detailed quarterly report on the progress of each survey conducted hereunder shall be made to the Appropriations Committee of the Congress." On page 24, after line 13, to insert: "OPERATING EXPENSES, NATIONAL ARCHIVES AND RECORDS SERVICE "For an additional amount for 'Operating expenses, National Archives and Records Service,' $145,000." On page 24, after line 17, to insert: "STRATEGIC AND CRITICAL MATERIALS "The appropriation granted under this head in the Independent Offices Appropria- tion Act, 1956, shall be available for neces- sary expenses for transportation and handl- ing, within the United States (including charges at United States ports), storage, security, and maintenance of strategic and critical materials acquired for the supple- mental stockpile pursuant to section 104 (b) of the Agricultural Trade Development and Assistance Act of 1954 (7 U. S. C. 1704 (b) )." Under the heading "Housing and Home Finance Agency", on page 25, after line 3, to insert: "OFFICE OF THE ADMINISTRATOR "Salaries and expenses "For an additional amount for `Salaries and expenses,' $170,000, and the limitation under this head in the Independent Offices Appropriation Act, 1956, on the amount available for expenses of travel, is increased from '$263,700' to '$273,000'." On page 25, after line 10, to insert: "RESERVE OF PLANNED PUBLIC WORKS "For an additional amount for 'Reserve of planned public works,' $5,500,000." On page 25, after line 17, to insert: "ADMINISTRATIVE EXPENSES "For an additional amount for 'Adminis- trative expenses," $1,060,000." On page 25, after line 20, to insert: "CORPORATIONS "Office of the Administrator, housing loan for educational institutions: The amount made available under this head in the Inde- pendent Offices Appropriation Act, 1956, for administrative expenses, is increased by $200,000." At the top of page 26, to insert: "Office of the Administrator, public facility loans: Not to exceed $250,000 of the revolving fund established pursuant to the Housing Amendments of 1955 (S. 2126, 84th Cong.) shall be available for administrative ex- penses: Provided, That the revolving fund established pursuant to section 108 of the Reconstruction Finance Corporation Liqui dation Act (67 Stat. 230), as amended, shall be merged with the revolving fund for pub- lic facility loans established pursuant to said Housing Amendments of 1955 (S. 2126, 84th Cong.)." On page 26, after line 10, to insert: "Federal Housing Administration: The amount made available under this head in title II of the Independent Offices Appro- priation Act, 1956 (Public Law 112), is in- creased from $5,900,000 to $7,000,000 and the limitation on the amount available for ex- penses of travel is increased from $300,000 to $464,000: Provided, That the limitation under said head on the amounts available for, certain nonadministrative expenses of said Administration Is increased from $33,- 000,000 to $37,600,000." On page 26, after line 19, to insert: "Public Housing Administration: The amount made available under this head in title II of the Independent Offices Appro- propriation Act, 1956, for administrative ex- penses of the Public Housing Administra- tion in carrying out duties imposed by law, is increased from '$8,200,000' to '$9,260- 000', and the limitation under said head on the amount available for expenses of travel is increased from '$530,000' to '$600,000'," On page 27, after line 2, to insert: "Appropriations and authorizations con- tained in this act for the Housing and Home Finance Agency (except $730,000 of the in- crease in the amount made available for ad- ministrative expenses of the Federal Housing Administration and the amount available for expenses of travel; $2,600,000 of the in- crease in the limitation on certain nonad- ministrative expenses of said Administra- tion; the additional amount appropriated for 'Annual contributions' and $60,000 of the increase in amounts for administrative ex- penses of the Public Housing Administra- tion) shall be effective only upon the enact- ment into law of the Housing Amendments of 1955 (S. 2126. 84th Cong.)." On page 27, after line 14, to insert: "NATIONAL SECURITY TRAINING COMMISSION "SALARIES AND EXPENSES "For necessary expenses of the National Security Training Commission, including services as authorized by section 15 of the act of August 2, 1946 (5 U. S. C. 55a), at rates for individuals not in excess of $50 per diem, and contracts with temporary or part-time employees may be renewed an- nually; and expenses of attendance at meet- ings concerned with the purposes of this appropriation; $80,000: Provided, That this paragraph shall be effective only upon en- actment into law, during the first session of the 84th Congress, of H. R. 7000, or similar legislation: Provided further, That this ap- propriation may be used to reimburse the appropriation 'Special Projects, Executive Office of the President', for obligations in- curred against said appropriation, prior to the enactment of this act, for expenses of the Commission." On page 28, after line 5, to Insert: "SELECTIVE SERVICE SYSTEM "SALARIES AND EXPENSES "The amount made available under this head in the Independent Offices Appropria- tion Act, 1956, for registration, classification, and induction activities of local boards, shall also be available during the current fiscal year for expenses of the National Ad- visory Committee on the Selection of Physicians, Dentists, and Allied Specialists, including not to exceed $30,000 for expenses of travel." In the heading, on page 28, line 15, after the word "Chapter" to strike out "VI" and insert "VII." Under the heading, "Department of the Interior-Bureau of Indian Affairs," on page 29, after line 3, to insert: "TRIBAL FUNDS "For an additional amount for 'Tribal funds,' $200,000, from funds to the credit of the Indians of California as defined and enrolled under the act of May 18, 1928 (45 Stat. 602), as amended, the successors in interest to claims against the United States as therein provided, for payment of expenses, other than attorney fees, heretofore or here- after incurred by attorneys prosecuting the claims of the Indians of California before the Indian Claims Commission under con- tracts approved by the Secretary of the In- terior." Under the subhead "Bureau of Mines- Conservation and Development of Mineral Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 i Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 CONGRESSIONAL RECORD - SENATE July 26. Resources," on page 29, line 18, after the word "resources", to strike out "$625,000" and insert $1,450,000." On page 29, after line 18, to insert: "DRAINAGE OF ANTHRACITE MINES "For contributions as authorized by the act 'To provide for the conservation of an- thracite coal resources through measures of flood control and anthracite mine drainage, and for other purposes' (Public Law 162, approved July 15, 1955), $8,500,0;3, to remain available until expended." Under the subhead "Fish and Wildlife Service-Construction," on page 30, line 6, after the word "Construction," to strike out "$325,000" and insert "$786,000, of which $455,000 shall be available for the construc- tion of fish-cultural facilities below Norfolk Dam, Arkansas." On page 30, after line 9, to insert: "DEPARTMENT OF AGRICULTURE "FOREST SERVICE-SALARIES AND EXPENSES "For an additional amount for 'Salaries and expenses,' for national forest protection and management, $300,000: Provided, That this appropriation shall be effective only upon enactment into law of H. It. 5891, 84th Congress." On page 30, after line 15, to insert: "ALEXANDER HAMILTON BICENTENNIAL COMMISSION "For an additional amount for 'Alexander Hamilton Bicentennial Commission,' $112,- 162, to remain available until expended: Provided, That this appropriation shall be- come effective only upon the enactment into law of S. 1395." At the top of page 31, to insert: "BOSTON NATIONAL HISTORIC SITES COMMISSION "For expenses necessary to carry out the provisions of the act of June 16, 1955 (69 Stat. 136, 137, 138), $40,000, to remain avail- able until June 30, 1957." On page 31, after line 5, to insert: "JOHN MARSHALL BICENTENNIAL CELEBRATION COMMISSION "For an additional amount for 'John Mar- shall Bicentennial Celebration Commission' for carrying out the provisions of the act of August 13, 1954 (68 Stat. 702), including entertainment, $82,500, to remain available until December 31, 1955." On page 31, after line 12, to insert: "NATIONAL CAPITAL PLANNING COMMISSION "SALARIES AND EXPENSES "For an additional amount for 'Salaries and expenses', $57,000." On page 31, after line 16, to insert: "SMITHSONIAN INSTITUTION "MUSEUM OF HISTORY AND TECHNOLOGY "For necessary expenses of construction of a building for the Museum of History and Technology, as authorized by the act of June 28, 1955 (Public Law 106), including the preparation of plans and specifications, not to exceed $75,000 for services as authorized by section 15 of the act of August 2, 1946 (5 U. S. C. 55a), at rates not to exceed $100 per diem for individuals, and incidental ex- penses of the Regents of the Smithsonian Institution and of the Joint Congressional Committee established by said act, $2,288,000, to remain available until expended: Pro- vided, That the expenses of the Joint Con- gressional Committee shall be paid upon certification of the Chairman of said Com- mittee." On page 32, after line 9, to insert: "Soo LOCKS CENTENNIAL CELEBRATION COMMISSION "Funds appropriated for the Soo Locks Centennial Celebration Commission in the Second Supplemental Appropriation Act, 1955 (Public Law 24, 84th Congress), shall be available for expenses of official enter- tainment." In the heading, on page 32, line 16, after the word "Chapter", to strike out "VII" and inserts "VIII." Under the heading "Department of Labor- Office of the Solicitor-Salaries and Ex- penses", on page 32, at the beginning of line 21, to strike out "$110,000" and insert "$303,800." At the top of page 33, to insert: "BUREAU OF EMPLOYMENT SECURITY "SALARIES AND EXPENSES, MEXICAN FARM LABOR PROGRAM "For an additional amount for 'Salaries and expenses, Mexican farm labor program,' $650,000: Provided, That this amount shall be available only upon enactment into law of H. R. 3822, 84th Congress, or similar leg- islation, extending authority for the im- portation of Mexican agricultural workers," On page 33, after line 9, to insert. "WAGE AND HOUR DIVISION "SALARIES AND EXPENSES "For an additional amount for 'Salaries and expenses,' 2,185,000: Provided, That this amount and the amount appropriated in this act for 'Salaries and expenses, Office of the Solicitor,' shall be available only upon enactment into law of S. 2168, 84th Congress, or similar legislation, increasing the mini- mum wage." Under the heading "Department of Health, Education, and Welfare," on page 34, after line 2, to insert: "GALLAUDET COLLEGE "SALARIES AND EXPENSES "For an additional amount for 'Salaries and expenses,' fiscal year 1955, for payment o4 retroactive pay increases granted by admin- istrative action, comparable to those author- ized by the Federal Employees Salary In- crease Act of 1955 (69 Stat. 172), $5,400, to be derived by transfer from the appropriation 'Grants to States for public assistance,' So- cial Security Administration, fiscal year 1955." On page 34, after line 11, to insert: "For an additional amount for 'Salaries and expenses,' for payment of pay increases granted by administrative action comparable to those authorized by the Federal Em- ployees Salary Increase Act of 1955 (69 Stat. 172), $8,700." On page 34, after line 15, to insert: "HOWARD UNIVERSITY "SALARIES AND EXPENSES "For an additional amount for 'Salaries and expenses,' fiscal year 1955, for payment of retroactive pay increases granted by admin- istrative action, comparable to those author- ized by the Federal Employees Salary In- crease Act of 1955 (69 Stat. 172), $76,000, to be derived by transfer from the appropria- tion 'Grants to States for public assist- ance,' Social Security Administration, fiscal year 1955." At the top of the page 35, to insert: "For an additional amount for 'Salaries and expenses', for payment of pay increases granted by administrative action comparable to those authorized by the Federal Employees Salary Increase Act of 1955 (69 Stat. 172), $220,000." Under the subhead "Office of Education- Salaries and Expenses, White House Confer- ence on Education", on page 35, line 9, after the word "Education", to strike out "$50,000" and insert "$238,000." Under the subhead "Public Health Serv- ice", on page 35, after line 11, to insert: "For additional amounts for appropriation to the Public Health Service, as follows: "Assistance to States, general', $98,900; "'Venereal diseases', $31,100; " 't'uberculosis', $25,200; "'Communicable diseases', $116,800; "'Sanitary engineering activities', $107,000; "'Disease and sanitation investigations and control, Territory of Alaska', $13,000; "'Salaries and expenses, hospital construc- tion services', $16,200; "'Hospital and medical care', $454,500; "'Foreign quarantine service', $32,300; "'Indian health activities', $32,200; "'National Cancer Institute', $57,600; "'Mental health activities', $39,500; "'National Heart Institute', $56,600; "'Dental health activities', $39,700; "'Arthritis and metabolic activities', $36,- 300; "'Microbiology activities', $54,300; "'Neurology and blindness activities', $7,600; "'Retired pay of commissioned officers', $141,000; and "'Salaries and expenses', $15,000." On page 36, after line 15, to insert: "SANITARY ENGINEERING ACTIVITIES "For an additional amount for `Sanitary engineering activities,' $1,190,000, to remain available only until June 30, 1956, for the purposes of the act of July 14, 1955 (Public Law. 159)." On page 36, after line 20, to insert: "MENTAL HEALTH ACTIVITIES "For an additional amount for 'Mental health activities,' $250,000: Provided, That this appropriation shall be available only upon the enactment into law during the first session of the 84th Congress of House Joint Resolution 256." At the top of page 37, to insert: "GRANTS TO STATES FOR POLIOMYELITIS VACCINATION "For grants to States for carrying out the purposes of the Poliomyelitis Vaccination Assistance Act of 1955, $60 million: Provided, That this appropriation shall become effective only upon the enactment into law of H. It. 7126 or S. 2501, 84th Congress." Under the subhead "Construction of Hous- ing Facilities for Animals", on page 37, line 10, after the word "specifications", to strike out "$400,000" and insert "$685,280." In the heading, on page 37, line 12, after the word "Chapter", to strike out "VIII" and insert "IX." Under the heading "Public Works-Atomic Energy Commission-Plant and Equipment", on page 37, at the beginning of line 25, to strike out "$163,577,000" and insert "$270,- 800,000"; on page 38, line 3, after the name "Tennessee", to strike out the colon and "Provided, That only $37,400,000 shall be available prior to the enactment into law of H. It. 6795, 84th Congress", and in line 5, after the amendment just above stated, to in- sert a colon and "Provided, That, in addition to transfers otherwise authorized by law, $101 million of unexpended balances avail- able under this head shall be transferred to the appropriation "Operating expenses, Atomic Energy Commission." On Page 38, after line 9, to insert: "DEPARTMENT OF THE INTERIOR "BONNEVILLE POWER ADMINISTRATION "Construction "For an additional amount for 'Construc- tion', $2,038,000, to remain available until expended." On page 38, after line 14, to insert: "BUREAU OF RECLAMATION `CONSTRUCTION AND REHABILITATION "For an additional amount for 'Construc. tion and rehabilitation', $5 million, to re- main available until expended: Provided, That this appropriation shall be effective only upon enactment into law during the 84th Congress of H. It. 3383 or S. 500.' At the top of page 39, to insert: Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 1955 99111 CONGRESSIONAL RECORD -SENATE "DEPARTMENT OF DEFENSE-CIVIL FUNCTIONS. DEPARTMENT OF THE ARMY "RIVE'RS AND HARBORS AND FLOOD CONTROL "Construction, general For an additional amount for 'Construc- tion, general', $5,651,014." In the heading, on page 39, line 7, after the word "Chapter", to strike out "IX" and insert "X." Under the heading "Department of State-Salaries and Expenses", on page 39, at the beginning of line 11, to strike out "$1,820,000" and insert "$2,120,000." On page 39, after line 15, to insert: "EXTENSION AND REMODELING, STATE DEPART- MENT BUILDING "For expenses necessary for planning the extension and remodeling, under the super- vision of the General Services Administra- tion, of the State Department Building, Washington, D. C., to remain available until expended, $2,500,000, to be transferred to the General Services Administration." On page 40, after line 2, to Insert: "PAYMENT TO THE REPUBLIC OF PANAMA "After the exchange of ratifications of the Treaty of Mutual Understanding and Co- operation, signed January 25, 1955, by the United States of America and the Republic of Panama (Senate Executive F, 84th Cong., 1st secs.; ratification advised by the Senate), the Secretary of the Treasury shall cause to be paid annually (in lieu of the annual payment provided under this head in the Department of State Appropriation Act, 1954), out of any money in the Treasury not otherwise appropriated, $1,930,000 as a payment to the Republic of Panama in ac- cordance with article I thereof." On page 40, after line 14, in insert: "INTERNATIONAL EDUCATIONAL EXCHANGE ACTIVITIES "The limitation under this head in the Department of State Appropriation Act, 1956, on the amount available for administrative expenses is increased from $3,300,000 to $3,485,000." On page 40, after line 19, to insert: "ACQUISITION OF BUILDINGS ABROAD "The limitation under this head in the Department of State Appropriation Act, 1956, on the amount available for administrative expenses is increased from $900,000 to $950,000." At the top of page 41, to insert: "INTERNATIONAL BOUNDARY AND WATER COM- MISSION, UNITED STATES AND MEXICO "SALARIES AND EXPENSES "For an additional amount for 'Salaries and expenses,' $75,000." Under the heading "Department of Jus- tice-Legal Activities and General Adminis. tration," on page 41, after line 17, to insert: "FEDERAL PRISON SYSTEM "BUILDINGS AND FACILITIES "For making plans, conducting surveys, and preparing site recommendations for nec- essary new prison facilities, $500,000." Under the heading "United States In- formation Agency-Salaries and Expenses," on page 43, line 6, to strike out "$243,260" and insert "$430,000." On page 43, after line 6, to insert: "FUNDS APPROPRIATED TO THE PRESIDENT "EMERGENCY FUND FOR INTERNATIONAL AFFAIRS "For expenses necessary to enable the President to take such measures as he deems appropriate to meet extraordinary or unusual circumstances arising in the international affairs of the Government, $6,000,000, to re- main available until expended, for use in the President's discretion and without regard to such provisions of law as he may specify: Provided, That the President shall transmit to the Committees on Appropriations of the Senate and of the House of Representatives, not less often than quarterly, a full report of expenditures under this appropriation-" In the heading, on page 43, line 19, after the word "Chapter", to strike out "X" and Bert "XI." Under the heading "Treasury Depart- ment-Coast Guard-Operating Expenses," on page 44, line 4, to strike out "$5,000,000" and insert "$7,000,000." On page 44, after line 9, to insert: "POST OFFICE DEPARTMENT "OFFICE OF FIRST ASSISTANT POSTMASTER GENERAL "City delivery carriers "For an additional amount, fiscal year 1947, for 'City delivery carriers', $10,000, to be derived by transfer from the appro- priation 'Railway Mail Service', fiscal year 1947." On page 44, after line 15, to insert: "CORPORATION "FEDERAL FACILITIES CORPORATION "The amount of the Corporation's funds made available under this head in title I of the Treasury-Post Office Appropriation Act, 1956, for administrative expenses of the Cor- poration, Is increased from $800,000 to $975,000." In the heading, on page 45, line 1, after the word "Chapter", to strike out "XI" and insert "XII." Under the heading "District of Columbia- Operating Expenses", on page 46, after line 14, to insert: "SALARY INCREASES, POLICEMEN AND FIREMEN "The provisions of title II of Public Law 123, approved June 30, 1955, shall apply also to costs in the fiscal year 1955 of pay increases granted by or pursuant to Public Law , 84th Congress: Provided, That this paragraph shall be effective only upon en- actment into law of either S. 2428 or H. R. 7159, or similar legislation." On page 46, after line 21, to insert: "CAPITAL OUTLAY "PUBLIC BUILDING CONSTRUCTION "The appropiration for 'Capital outlay, public building construction', contained in the District of Columbia Appropriation Act, 1956, shall be available for preparation of plans and specifications for a warehouse at the Children's Center and the erection of the following structures, including the treat- ment of grounds: Branch library building in Woodridge, new Metropolitan Police Women's Bureau Building (including the installation of telephones, telephone switchboard, and teletypewriter system), and new fire engine house in the vicinity of 24th and Irving Streets Southeast (including instruments for receiving alarms and connecting said house to the fire alarm system)." On page 48, after line 6, to insert: "CHAPTER XIII. LEGISLATIVE BRANCH "SENATE "Contingent expenses of the Senate "Miscellaneous items: For an additional amount for Miscellaneous items, exclusive of labor, fiscal year 1955, $185,835." On page 48, after line 13, to insert: "GENERAL PROVISION "Subsection (b) of section 1311 of the Supplemental Appropriation Act, 1955 (Pub- lic Law 663, 83d Cong.), is hereby amended by deleting the period at the end thereof and inserting the following: ': Provided further, That in the case of the Senate such report shall be made not later than March 31 of the year following the year with respect to which the report is made'." In the heading, on page 49, line 1, after the word "Chapter", to strike out "XII" and insert "XIV." Under the heading "Claims for Damages, Audited Claims, and Judgments," on page 49, line 9, after the word "in", to inset "Senate Document numbered - and", 'and in line 11, after the word "Congress", to strike out "$5,343,888" and insert "$8,117,523." At the top of page 50, to insert: "CHAPTER XV. GENERAL PROVISIONS "UNIFORM ALLOWANCES "SEC. 1501. The following appropriations and funds available to the departments and agencies, for the fiscal year 1956, shall be available for uniforms or allowances there- for, as authorized by the act of September 1, 1954, as amended (68 Stat. 1114 and 69 Stat. 49) : "Legislative branch: "Architect of the Capitol: "'Capitol Buildings'; "'Senate Office Buildings'; 'House Office Buildings'; "Independent offices: "Civil Service Commission: 'Salaries and expenses'; "Federal Trade Commission: 'Salaries and expenses'; "General Accounting Office: 'Salaries and expenses'; "Interstate Commerce Commission: The appropriation available for the pay of em- ployees entitled to uniforms or allowances therefor under said act; "National Advisory Committee for Aero- nautics: 'Salaries and expenses'; "National Labor Relations Board: `Salaries and expenses'; "Securities and Exchange Commission: 'Salaries and expenses'; "Smithsonian Institution: 'Salaries and expenses, National Gallery of Art'; "Veterans' Administration: "'General operating expenses'; "'Medical administration and miscellan- eous operating expenses'; "'Maintenance and operation of supply depots'; "Department of Agriculture: "'Office of the Secretary'; "Commodity Credit Corporation: 'Limita- tion on administrative expenses'; "Department of Commerce: "Office of the Secretary: "'Salaries and expenses'; "'Working capital fund'; "Maritime activities: 'Salaries and ex- penses'; "Civil Aeronautics Administration: 'Opera- tion and regulation'; "Maritime activities: 'Salaries and ex- penses'; "National Bureau of Standards: 'Working capital fund'; "Department of Health, Education, and Welfare : "Freedmen's Hospital: 'Salaries and ex- penses'; "Public Health Service: "'Assistance to States, general'; ? 'Venereal diseases'; 'Tuberculosis'; "'Communicable diseases'; "'Sanitary engineering activities': "'Disease and sanitation investigations and control, Territory of Alaska'; 'Hospitals and medical care'; ?' 'Foreign quarantine service'; "'Indian health activities'; ?' 'National Institutes of Health, operating expenses'; "'National Cancer Institute'; "'Mental health activities'; "'National Heart Institute'; "'Dental health activities'; "'Arthritis and metabolic disease activi- ties'; "'Microbiology activities'; "'Neurology and blindness activities'; "St. Elizabeths Hospital: 'Salaries and ex- penses'; "Social Security Administration: 'Salaries and expenses, Bureau of Old Age and Sur- vivors Insurance'; Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 July 26 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 9912 CONGRESSIONAL RECORD - SENATE :'Department of the Interior: Office of the Secretary: "'Salaries and expenses'; "'Working capital fund'; "Bureau of Indian Affairs: 'Education and welfare services'; and ""Department of Labor: Office of the Secretary: 'Salaries and expenses'" On page 53, after line 8, to insert: .1 SEC. 1502. No part of any appropriation contained in this act, or of the funds avail- able for expenditure by any corporation In- cluded In this act, shall be used to pay the salary or wages of any person who engages in a strike against the Government of the United States or who Is a member of an or- ganization of Government employees that asserts the right to strike against the Gov- ernment of the United States, or who advo- cates, or Is a member of an organization that advocates, the overthrow of the Government of the United States by force or violence: Provided, That for the purposes hereof an affidavit shall be considered prima facie evi- dence that the person making the affidavit has not contrary to the provisions of this section engaged in a strike against the Gov- ernment of the United States, is not a mem- ber of an organization of Government em- ployees that asserts the right to strike against the Government of the United States, or that such person does not advocate, and is not a member of an organization that ad- vocates, the overthrow of the Government of the United States by force, or violence: Provided further, That any person who en- gages in a strike against the Government of the United States or who is a member of an organization of Government employees that asserts the right to strike against the Government of the United States, or who advocates, or who Is a member of an organi- zation that advocates, the overthrow of the Government of the United States by force or violence and accepts employment the salary or wages for which are paid from any appropriation or fund contained In this or any other act shall be guilty of a felony and. upon conviction, shall be fined not more than 1,000 or Imprisoned for not more than 1 year, or both: Provided further, That the above penalty clause shall be in addition to. and not in substitution for, any other provisions of existing law." Mr. HAYDEN obtained the floor. Mr. CHAVEZ. Mr. President, will the Senator from Arizona yield? Mr. HAYDEN. I yield. Mr. CHAVEZ. Mr. President, I think it would be proper very briefly to discuss chapter III, which involves construction money for the Defense Department. Mr. HAYDEN. That is the largest item in the bill. Does the Senator wish to make a statement with reference to it? Mr. CHAVEZ. I do. I wish to address myself to the items in chapter III of the bill as it is reported to the Senate. Mr. President, total budget estimates for this chapter amounted to $1,480,000,- 000 in appropriations and $859,500,000 in unobligated balances and transfers, or a total of $2,339,500,000. The House of Representatives recommended that a total of $6,450,000 be appropriated for these items, although the House Appro- priations Committee allowed $1,402,329,- 000 plus unobligated balances amount- ing to $486,612,000 or a total of $1,- 888,941,000. The Senate Committee recommends an appropriation of $1,280,377,300 plus $741,427,000 in transfers or a total of $2,021,804,300. This is a reduction from the budget estimates of $199,622,700 in appropriations and $118,073,000 in trans- ment offered by the Senator from fers or a total reduction of $317,695,700. Arizona. It is over the House bill by $1,273,927,300 The amendment was agreed to. in appropriations and $741,427,000 in The PRESIDING OFFICER. The bill I shall now speak briefly of the in- dividual items. iter fully. For the Department of the Army the committee recommends $486,427,000 by transfer of $58,573,000 below the esti- mate. For the Navy the committee recommends $443,278,300, which is $85,- 271.700 below the estimate. For the Air Force. the committee recommends $823,- 649,000 in appropriations and $225 mil- lion in transfers. This Is an amount $121,351,000 below the estimate. I shall mention only one of hundreds of items In the chapter that might be mentioned. The committee recommended approval of an appropriation of $79,527,000 for the Air Force Academy. Except for specific items described In the committee report, the committee approved the authorized program as submitted by the executive branch. Cer- tain other reductions were made because the committee agreed with the House committee that the programs as author- ized and justified before the committees could not progress as rapidly as contem- plated. These latter reductions should In no way be construed to eliminate or retard the approved items in the pro- gram. I wish to thank all the members of the Department of Defense Subcommit- tee who attended the hearings and worked on this section of the bill. I be- lieve that, as reported, the funds in- cluded will provide the construction necessary to keep our country militarily strong. It will also help to provide the housing so badly needed by the men in our Armed Forces. The committee can only recommend the appropriation and the Congress ap- prove it, It remains for the executive branch, and particularly the leaders in the Department of Defense, to see that the money is Judiciously spent. I call upon those men. both civilian and mili- tary, to utilize the funds we provide in a manner that will bring credit upon the Department and effect economy for the country. The PRESIDING OFFICER. The bill is open to amendment. Mr. HAYDEN. Mr. President, I offer an amendment to the committee amend- ment relating to the United States Tariff Commission. The PRESIDING OFFICER. The amendment offered by the Senator from Arizona will be stated. The LEGISLATIVE CLERK. On page 8, line 6, it is proposed to strike out tho is open to further amendment. Mr. GREEN. Mr. President, I do not desire to offer an amendment, but I do desire to compliment the committee on the splendid work it has done in making its report, and in particuh.r I wish to commend it for the additional appro- priation made for the Weather Bureau, and especially, in that connection, the million and a half dollars of additional funds for research regarding tornado and hurricane predictions. I have been especially interested in this subject since the very disastrous hurricanes which occurred last year. It is encouraging to find that the United States is not only seeking to repair damage done by such storms but to conduct research into bet- ter means of forecasting, which will probably save more money in the end and will cost less at this time. The appropriation of $1,500,000 for research operations Is in addition to the $7,500.000 already appropriated in other items to repair the damage done. I wish to express my appreciation par- ticularly for the interest shown in the matter of this increase by the senior Senator from Florida [Mr. HOLLAND] and the senior Senator from Arizona [Mr. HAYDEN]. Mr. HOLLAND. Mr. President, will the Senator from Arizona yield? Mr. HAYDEN. I yield. Mr. HOLLAND. I am exceedingly grateful to the Senator from Rhode Island, and I am certain I speak also for the distinguished chairman of the com- mittee, the senior Senator from Arizona, in saying that we appreciate his gracious words. In order that the record may clearly show what was done in this regard, I wish to read from the report a para- graph relating to the $1,500,000 extra money which the committee recom- mended should go to the Weather Bu- reau for research, to enable it better to meet its obligations in affording protec- tion against hurricanes, tornadoes, and other severe storms. I read as follows: The committee recommends $1,500,000, half the amount of the estimate, for addi- tional funds for research Into methods of bettering hurricane and tornado predictions. The amount recommended will be sufficient to cover the major part of the research oper- ations. It is felt that, if additional equip- ment for research is required, it may be pro- cured with the funds provided by the regu- lar 1956 appropriation, In excess of the budget estimate, for the procurement of weather observation and research equipment in the Department of Commerce and Related Agen- cies Appropriations Act, 1956. The funds which were provided in that act were to remain available for a period of 4 years be- cause all could not be obligated at this time; the committee can see no objection to the use of a part of the amount for expedited procurement of material now available which will hasten progress to more accurate predic- tions. word "head" and to insert in lieu thereof Before closing my remarks, I may say the word "Chairman", so that it will read that I think the whole Senate, and in- "Chairman of the Tariff Commission." deed the whole country, is indebted, and The PRESIDING OFFICER. The feels indebted, to the distinguished senior question is on agreeing to the amend- Senator from Rhode Island for his ag- Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 CONGRESSIONAL RECORD -SENATE 9913 gressive Interest relative to the building up of the essential services of the Weather Bureau, so as to afford better protection against hurricanes, tornadoes, and other severe storms. Mr. President, while I am on my feet, may I say that'one large amount added to the bill for the Department of Com- merce relates to the Inter-American Highway. In order that the record may clearly show the thinking of the com- mittee on that matter, in which we are recommending the appropriation at once of the entire amount of our coun- try's contribution, which, added to the amount of this year's appropriation, will make possible the completion of the con- struction work within the 3-year period covered by recent legislation, I read from the report, as follows: Since the consideration of the appropria- tion for fiscal year 1956, Public Law 129 has been approved (the act of July 1, 1955). The committee, in its report on the regular ap- propriation for fiscal year 1956 (Department of Commerce and Related Agencies Appro- priation Act, 1966), said: "Inter-American Highway: The committee recommends an appropriation of $25,250,000 for the continuance of the construction of the Inter-American Highway which is the full amount of the authorized but unap- propriated balance. "It is the sense of the committee that the interests of this Nation, our friendship for the neighbor nations, the value of surface access to the Panama Canal, and many other mutual benefits dictate early completion of this highway." In recommending $49,730,000 for this pur- pose, the committee is, in the strongest terms, reiterating the views which were stated in the previous report. Under this appropriation, the highway should be com- pleted in 3 years. I am certain I voice the ardent wish of every member of our committee that the work may be prosecuted just as ag- gressively and rapidly as sound construc- tion policies will permit, and that we may all look forward to the day, not longer than 3 years off, when citizens of the United States may easily, by motor- car, traverse our friendly neighbors, Mexico and the Central American countries, to arrive at Panama City or the Canal Zone, which is such an im- portant part of this Nation's investment in economic and military stability. Mr. MANSFIELD. Mr. President, will the Senator from Arizona yield? Mr. HAYDEN. I yield. Mr. MANSFIELD. Can the chairman of the committee tell me the status of the appropriation for the Great Falls Air Base and the Glasgow Air Base? Mr. HAYDEN. Those items were spelled out in the House bill. Mr. MANSFIELD. But I believe they were eliminated on points of order. Mr. HAYDEN. Yes; subsequently in the House they were stricken from the bill on points of order. The committee restored the necessary funds for the Great Falls Air Base, in the amount of $5,523,000; and provided for the Glasgow site, for the Air Defense Command, $4,- 706,000. That appropriation is in a lump sum. The House committee report indi- cates how the lump sum is to be ex- pended, and the Senate report shows the changes recommended from the House committee report. Mr. MANSFIELD. I thank the chair- man. I wanted to get assurance that the projects were included in the bill which is now before the Senate, and to ascer- tain what amounts were being provided. - Mr. HAYDEN. The amount stated in the committee report is the same as the amount contained in the bill as it was reported to the House. Mr. MANSFIELD. I thank the chair- man. Mr. HUMPHREY. Mr. President, will the Senator from Arizona yield?, Mr. HAYDEN. I yield. Mr. HUMPHREY. As a matter of clarification, with respect to the item which relates to the White House Con- ference on Education, is that fund ade- quate to take care of the estimated ex- penses of the delegates from all sections of the country who will attend the con- ference? Mr. HAYDEN. The amount allowed was the full amount of the budget esti- mate, and included the transportation expenses of the persons who would at- tend the conference. Mr. HUMPHREY. Am I correct in un- derstanding that the provision will apply equally in all States? Mr. HAYDEN. Yes. The idea was that if the conference was to be suc- cessful, all the States should be repre- sented; and if no funds for transporta- tion were provided, only those who could afford to spend their own money would come to Washington. Mr. HUMPHREY. Yes. Another item is that relating to the Atomic Energy Commission. As the Senator may recall, the House included funds, if my memory is correct, for research and development. I believe the House pro- vided an additional sum of approximate- ly $25 million.. Has that item been re- tained in the appropriation bill as re- ported by the committee? Mr. HAYDEN. Yes; it has been in- cluded. Mr. HUMPHREY. So that we may clearly understand the situation, can that money be used for pilot-plant dem- onstration and pilot-plant experimenta- tion? Mr. HAYDEN. Everything recom- mended in the budget estimate was al- lowed, except funds for the reactor for the cargo ship. All other items as planned by the Commission are carried in the bill. Mr. HUMPHREY. Since some Sena- tors are interested in the question of REA development, is there anything within the language of the appropria- tion bill in connection with this particu- lar atomic energy research and develop- ment fund which would prevent or pro- hibit the Atomic Energy Commission from cooperating with rural electric co- operatives in the establishment or the creation of reactor plants or furnaces? Mr. HAYDEN. That is taken care of under operating expenses, which are ap- propriated for in the public-works bill. But so far as cooperation is concerned, there is no prohibition against the Atomic Energy Commission cooperating with REA's any more than there is against cooperation with other organ- izations. Mr. HUMPHREY. In other words, the funds which are provided for the Atomic Energy Commission in the area of research and development would be available for experimental purposes and pilot-plant purposes for a private utility, a rural electric cooperative, or whatever legitimate purpose of reactor develop- ment the Commission might desire, with the exception of the ship. Mr. HAYDEN. Provision for the ship is omitted from the bill; that is all. Mr. HUMPHREY. The so-called com- mercial ship. Mr. THYE. Mr. President, I am glad the question was asked of the chairman relative to the discretional authorization to the Atomic Energy Commission rela- tive to research activity and pilot-plant development for the REA Association, because as the matter was discussed in committee it was my understanding that the funds would be made available for use at the discretion of the Atomic Energy Commission, and that the Com- mission could enter into that field for the purpose of research activity. I wish to offer three amendments to the bill. The first amendment I propose is immediately after line 4, page 2, fol- lowing the headings "Agricultural Re- search Service" and "Salaries and ex- penses." My amendment reads: For additional amount for salaries and expenses for research, $380,000. I believe the funds my amendment suggests must be provided so that addi- tional research activities may go for- ward. If the problem of surpluses is to be solved, it will have to be done to a great extent by means of research; cer- tainly research will help. I think the amendment is a sound one. I have dis- cussed it with officials of the Department of Agriculture and they are in full sup- port of the amendment. The PRESIDING OFFICER (Mr. PAYNE in the chair). Will the Senator submit his amendment? Mr. THYE. I cannot, sir. I have it attached to my copy of the bill. To that copy of the bill are attached my two amendments. The other amendment is intended to be proposed after line 15, page 3, to insert the following language: FARMERS' HOME ADMINISTRATION LOAN AUTHORIZATIONS For additional amounts for "loans au- thorizations," for loans under title II of the Bankhead-Jones Farm Tenant Act, as amended, $15 million: Provided, That not to exceed the foregoing several amounts shall be borrowed in one account from the Sec- retary of the Treasury in accordance with the provisions set forth under this head in the Department of Agriculture Appropria- tion Act, 1952. The language of the amendment has been checked with the Department of Agriculture, so that it will conform with whatever terminology the Solicitor may find to be necessary. Then on line 19 of the, same page, where the sum of $850,000 has been stricken by the committee, under the subheading "Salaries and Expenses;" .I proposed to insert the amount of $350,000. I can send this marked-up bill to the desk, if it is desired, Mr. President, so Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 CONGRESSIONAL RECORD -SENATE July 26 that the clerk may have it, but I have read the amendments which I propose to submit to the bill. I believe the chairman of the committee has had the question raised and explained to him. Mr. HAYDEN. Mr. President. the committee had under consideration cer- tain other provisions which were not au- thorized by law. What I understand the Senator from Minnesota is doing is of- fering an amendment which is not sub- ject to a point of order. Mr. THYE. That is correct. Mr. YOUNG. Mr. President, will the Senator yield? Mr. THYE. I yield. Mr. YOUNG. Does the Senator plan to offer all three amendments en bloc, or separately? Mr. THYE. They could be offered en bloc, because they relate to research and increasing the amount of money avail- able for research and loans under the Bankhead-Jones Act. If additional funds are provided, the administrative funds must be increased. That Is the reason for proposing the amount of $350,000. Mr. YOUNG. Mr. President, I think the restoration of $15 million for loan authorization under the Farmers' Home Administration is fully justified. The Department of Agriculture had asked for $30 million. I think a mistake was made in the committee itself in writing up the bill, because I do not believe the committee intended to delete the entire $30 million, but only that part for which there was no authorizing legislation, such as loans to part-time farmers, and appropriations for like purposes. There is opposition to this item in both the House and Senate Agriculture Commit- tees. We had considerable opposition in our own Appropriations Committee, and I think the $15 million should be re- stored, together with the $350,000 for salaries, but I would object to restoring $380,000 for research. The Committee on Agriculture and Forestry has been very liberal with re- search funds. We have appropriated at least $7 million more this year and last year than was appropriated in pre- vious years. In the vast amount of money which has been appropriated for research, which is in excess of $7 million, $350,000 could be found for this purpose. I do not think it represents an emer- gency which has to be dealt with in a supplemental appropriation bill. I hope the two items will be approved, but not the one for research. The PRESIDING OFFICER. Will the Senator from Minnesota submit his amendments to the desk? Mr. SPARKMAN. Mr. President, be- fore that is done- The PRESIDING OFFICER. The Senator from Arizona has the floor. Mr. THYE. Mr. President, will the Senator from Arizona yield, so that I may state the reason for the $380,000 for research? Mr. HAYDEN. I yield. Mr. THYE. The additional funds are needed to undertake research designed to aid low income farm families to im- prove their level of living, in line with the objectives set forth in the report on the development of agriculture's human resources. The total increase of $380,000 would be used in connection with the following projects: One, farm and land manage- ment research, $310,000, to aid such fam- ilies to increase their earning capacity; and two, human nutrition and home economics research, $70,000, to evaluate the effect of shifts to part-time or off- farm work on family living In terms of nutritional quality of diet and kind of living. That Is the justification for the amount proposed on page 2 following line 4. Mr. YOUNG. Mr. President, the De- partment of Agriculture has had funds provided for exactly this same purpose. I would think they would be able to get along from now until next year on the very liberal allowances we have given them. Mr. THYE. Mr. President, I would not be as positive in my feeling that the $380,000 was needed as I am on the ques- tion of the $15 million and the item for salaries and expenses of $350,000, because I believe the loan fund is a necessity. If the loaning authority fund is in- creased, the administrative funds will be necessary. To an extent I agree with the Senator from North Dakota relative to research, but I think the assistance which will be made available by Increasing the amount of funds to be administered under the Bankhead-Jones Farm Tenant Act is an s.bsolute must, because it is the only way to safeguard the young couples who are seeking to get established as tenants on farming operaticins of their own. Mr. President, I certainly hope there will be no objection to the two amend- ments which are proposed on page 3. Mr. AIKEN. Mr. President, will the Senator from Arizona yield? Mr. HAYDEN. I yield. Mr. AIKEN. I believe the amendments are very important. I believe the $15 million amendment, relating to the Iankhead-Jones Act, is the most im- portant; and, of course, the increased amount for salaries is Important. Per- sonally I favor the research program, because I believe it is important to have a particular kind of research in this field. However, I value the unanimity of the Senate as highly as or more highly than I do the extra amount which might be used for research. If the need for re- search funds becomes acute by the time the second session of this Congress be- gins, I am sure the Senator from North Dakota would not object to making an appropriation for that purpose. Mr. YOUNG. I would be happy to consent. Mr. AIKEN. It is simply a question of using the funds which are available for 4 or 5 months. Mr. HAYDEN. Mr. President, may I suggest to the Senator from Minnesota that he withdraw the first amendment and oiler the other two en bloc? Mr. THYE. Mr. President, I ask unan- imous consent that my first amendment, on page 2, be withdrawn; and that the other two amendments, on page 3, be considered en bloc. The PRESIDING OFFICER. The Chair is advised that, as of the moment, no amendments have been submitted by the Senator from Minnesota. Mr. THYE. The Chair is entirely cor- rect; I just realized that. Mr. President. I now offer the two amendments to be found on page 3 in the marked copy of the bill I have sent to the desk. The PRESIDING OFFICER. The Chair understands that the Senator Minnesota has requested unanimous con- sent that the two amendments on page 3 be considered en bloc. Mr. THYE. That is correct. The PRESIDING OFFICER. Is there objection to the request of the Senator from Minnesota that his amendments be considered en bloc? Without; objection, it is so ordered; and the amendments of the Senator from Minnesota will be stated. The LEGISLATIVE CLERK. On page 3, after line 15, It is proposed to insert: FARMERS' HOME ADMINISTRATION LOAN AUTHORIZATIONS For additional amounts for "Loan authori- zations," for loans under title II of the Bankhead-Jones Farm Tenant Act, as amended, $15,000,000: Provided, That not to exceed the foregoing several amounts shall be borrowed in one account from the Sec- retary of the Treasury in acco-dance with the provisions set forth under this head in the Department of Agriculture Appropriation Act, 1952. And in lines 18 and 19, it is proposed to restore the language previously de- leted by the committee amendment, and to amend the same, so as to read as follows: SALARIES AND EXPENSES For an additional amount for "Salaries and expenses," $350,000. The PRESIDING OFFICER. The question is on agreeing, en bloc, to the amendments of the Senator from Min- nesota. Mr. SPARKMAN. Mr. President, a parliamentary inquiry. The PRESIDING OFFICER, The Senator from Alabama will state it. Mr. SPARKMAN. It is my purpose to offer a second paragraph at this point, and its effect would be to increase the administrative expenses, as carried in lines 18 and 19. Would such an amend- ment be in order after the amendment of the Senator from Minnesota, to increase the amount, is agreed to? The PRESIDING OFFICER. The Chair will advise that such an amend- ment to the amount should be offered to the amendment of the Senator from Minnesota before it is agreed to. Mr. SPARKMAN. Then, Mr. Presi- dent, I ask unanimous con:3ent that I may be allowed to send to the desk an amendment, to be stated at this time, be- fore the amendment of tae Senator from Minnesota is voted on. The PRESIDING OFFICER. The Senator from Alabama has a right to offer such an amendment. The amendment submitted by the Senator from Alabama to the amend- ment of the Senator from Minnesota will be stated. Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 ?,.I 1955 CONGRESSIONAL RECORD - SENATE The LEGISLATIVE CLERK. In the amend- The question is on agreeing to the ment of the Senator from Minnesota, amendments offered by the Senator from it is proposed to insert, at the proper Alabama [Mr. SPARKMAN] to the amend- place: ments offered by the Senator from Min- For loans under title V, of the Housing nesota [Mr. THYEL Act of 1949, as amended (except grants The amendment to the amendment under 504 (a)), $25,000,000, to remain avail- was agreed to. able until expended: Provided, That not to The PRESIDING OFFICER. The exceed the foregoing amount shall be bor- rowed in one account from the Secretary of the amendments offered by the Senator the Treasury in accordance with the pro from Minnesota, as ameded by set forth under this heading in the e y the Department of Agriculture Appropriation amendments of the Senator from Ala- Act, 1952: Provided further, That this para- bama. graph shall be effective only upon enact- The amendments as amended were ment into law during the first session of agreed to. the 84th Congress of S. 2126. The PRESIDING OFFICER. The bill And in lines 18 and 19, in lieu of the is open to further amendment. language proposed to be inserted by the . amendment of Senator THYE, it is pro- INCREASE IN SALARIES OF OFFI- posed to insert the following: POLITAN POLICE FORCE, ETC.- Expenses", $1,300,000. CHANGE IN ENROLLMENT OF S. Mr. KNOWLAND. Mr. President, a 2428 parliamentary inquiry. Mr. MANSFIELD. Mr. President, I The PRESIDING OFFICER. The send to the desk a concurrent resolution Senator from California will state it. and ask unanimous consent for its im- Mr. KNOWLAND. I wish to ask mediate consideration. whether the amendment of the Senator The PRESIDING OFFICER. The con- from Alabama would fall under the current resolution will be read for the heading of a conditional appropriation, information of the Senate. which is prohibited. The concurrent resolution (S. Con. The PRESIDING OFFICER. The Res. 53) was read, as follows: Chair rules, on the advice of the Parlia- Resolved by the Senate (the House of Rep- mentarian, that the proposed proviso is resentatives concurring), That the Secretary iri order. of the Senate be, and he is hereby, author- ized and directed, in the enrollment of the Mr. HAYDEN. Is the ruling based bill (S. 2428), to increase the salaries of upon the fact that a bill authorizing the officers and members of the Metropolitan loans has been passed by the Senate? Police force, and the Fire Department of The PRESIDING OFFICER. The the District of Columbia, the United States amendment of the Senator from Ala- Park Police, and the White House Police, bama to the amendment of the Senator and for other purposes, to make the follow- from Minnesota is in order because it ing change, viz: On page 5, line 15, of the engrossed bill, strike out "63f-53k" and in carries the provision of an act which has lieu thereof insert "61f-61k." been passed the Senate. Mr. THYE. The bill ill has not been The PRESIDING OFFICER. The passed by the House, has it? question is on agreeing to the concurrent Mr. HAYDEN. No; but the bill has resolution. been passed by the Senate; and thus the The concurrent resolution was agreed amendment to the amendment is in or- to. der, under our rules. The PRESIDING OFFICER. The Chair is advised that the bill has not passed the House of Representatives. Mr. SPARKMAN. Mr. President, let me point out that the amount proposed to be carried in lines 18 and 19 would take care of the administrative expenses required for this amendment to the amendment, and also of the administra- tive expenses required for the amend- ment of the Senator from Minnesota. The PRESIDING OFFICER. The question is on agreeing to the amend- ment of the Senator from Alabama to the amendment of the Senator from Minnesota. Mr. KNOWLAND. Mr. President, I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The Chief Clerk proceeded to call the roll. Mr. KNOWLAND. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. No. 126-7 FELICITATIONS OF CONGRESS TO COMMONWEALTH OF MASSACHU- SETTS ON 175TH ANNIVERSARY OF THE ESTABLISHMENT OF ITS CONSTITUTION Mr. O'MAHONEY. Mr. President, I ask unanimous consent for the present consideration of House Concurrent Reso- lution 193, extending the felicitations of Congress to the Commonwealth of Mas- sachusetts on the 175th anniversary of the establishment of its constitution. The PRESIDING OFFICER. The Chair lays before the Senate a concur- rent resolution coming over from the House, which will be read. The concurrent resolution (H. Con. Res. 193) was read as follows: Resolved by the House of Representatives (the Senate concurring), That the Congress extends its felicitations to the Common- wealth of Massachusetts on the 175th anni- versary of the establishment of its constitu- tion, and expresses the gratitude of the American people for the part played by the early statesmen of Massachusetts in building the foundations which have served the Com- monwealth and the Republic so well. The PRESIDING OFFICER. Is there objection to the present consideration of the. House concurrent resolution? There being no objection, the Senate proceeded to consider the concurrent resolution. Mr. O'MAHONEY. Mr. President, the House concurrent resolution is identical with Senate Concurrent Resolution 50, which was submitted by the Senators from Massachusetts [Mr. SALTONSTALL and Mr. KENNEDY]. On behalf of the Committee on the Judiciary, I ask that the concurrent resolution be agreed to. The PRESIDING OFFICER. The question is on agreeing to the concur- rent resolution. The concurrent resolution (H. Con. Res. 193) was agreed to. The preamble was agreed to. SUPPLEMENTAL APPROPRIATIONS, 1955 The Senate resumed the consideration of the bill (H. R. 7278) making supple- mental appropriations for the fiscal year ending June 30, 1956, and for other pur- poses. The PRESIDING OFFICER. The bill is open to further amendment. ,.Mr. THURMOND. Mr. President, I should like to ask the Senator from Ari- zona [Mr. HAYDEN] a question. Does the pending appropriation bill include $5 million for the Fort Jackson Hospital? Mr. HAYDEN. Yes; that item is in- cluded in the bill. Mr. CARLSON. Mr. President, I wish to make inquiry with respect to the ap- propriation for the Command and Gen- eral Staff College at Fort Leavenworth, Kans. Through the kindness of the dis- tinguished senior Senator from New Mexico [Mr. CHAVEZ], I had the privi- lege of appearing before the commit- tee and presenting the item. I was ac- companied by Secretary of the Army Stevens and General Davidson, the com- mandant at the Staff College. On page 13 of the committee report, I find the following paragraph: Command and General Staff College, Fort Leavenworth: The budget estimate for this item was $8,616,000. The House committee reduced this amount by $5,433,000. Total restoration was requested. The Senate committee granted an additional $200,000 for planning of the academic building, or a total of $3,382,000. Am I to understand from that lan- guage that the amount available-pro- vided the item is approved in confer- ence-will be $3,382,000? Mr. HAYDEN. The Senator is cor- rect. Plans and specifications will be prepared, so that at the next session of Congress this item can be fully consid- ered. Mr. CARLSON. I appreciate the con- sideration shown by the committee with respect to this item. The structure con- cerned is an important academic build- ing, necessary in the operation of the Command and General Staff College. This is where a thousand or 1,200 top flight officers of all branches are in- structed. I hope that in the next ses- sion of Congress sufficient funds will be provided to construct this building. Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 9916 CONGRESSIONAL RECORD - SENATE July 96 Mr. STENNIS. Mr. President, I Interior himself, will know exactly where Monument, that proposal concerned not heartily second the statement of the the Army proposes to draw that new only Utah, but the entire Nation. Senator from Kansas IMr. CARLSON]. I boundary line. The Army is requesting There are people in my State of Ore- know of the need for this item. I have $1,000 to cover the administrative ex- gon who desire to reduce the size of the been on the premises. The Command penses of negotiating the transfer, but Tule Lake Wildlife Refuge, so that they and General Staff College at Fort Leav- what about the $77,000 which the In- can enlarge reclamation farms and enworth is a permanent part of the mili- terior Department would need to erect homesteads; and, although those people tary program. It pertains to the train- a new big game fence along the new are my constituents, I am opposed to it, ing of top flight officers. It certainly de- boundary, and what about the additional because I believe that these are Federal serves attention. So far as I am con- $100,000 which would be required to reservations, and that the people of the cerned, this Item will receive attention, build new access roads into the refuge? entire United States have a stake in next year. While we are on that subject, what them. Mr. CARLSON. Mr. President, I ex- about the money that would be required For example, I have opposed reduc- press my sincere thanks to the Senator to round up, slaughter, and dispose of tion in the size of the Olympia National from Mississippi. the 250 bison and 75 longhorn steers for Park In the State of Washington, even The PRESIDING OFFICER. The bill which there no longer would be pasture though many of the major trade unions is open to further amendment. on the remainder of the refuge? This which are very active in my State might Mr. NEUBERGER. Mr. President. I would be another Fort Huachuca case obtain additional employment through offer the amendment which I send to over again. This spring the State of logging of the forests within that na- the desk and ask to have stated. Arizona, In despair after trying to work tional park. The PRESIDING OFFICER. The out its game-management program with When I was a member of the State amendment offered by the Senator from gave up and destroyed the entire buffalo memorial to of Congress Oregon isevoted eking against have LA stated. Oregon will be The LEGISLATIVE CLERK. On page 10, herd at considerable expense. transferred forests of the Bureau of Land line 8, in the committee amendment, Mr. President, provision seems to have Management to the jurisdiction of the after the word "expended", it is proposed been made in this bill for the $1,000 the State of Oregon, because I bought the i to the ro- forests properly belonged to all the t to strike out "486,427,000" and insert 000." 426 ?' $486 , , Mr. NEUBERGER. Mr. President, I should like to explain, for the benefit particularly of the distinguished Sen- ators from Oklahoma LMr. KERR and Mr. MONRONEYI, who, I am glad to see, are present in the Chamber at this moment, that the amendment which I have sent to the desk deals with the Wichita Mountains National Wildlife Refuge, which has been discussed briefly on the floor of the Senate in the past few days. Mr. President, the proposed transfer of refuge lands which the Army wants is not reflected in any way in either the authorization bill, H. R. 6829, or this Supplemental Appropriations bill, H. R. 7278. The item is not mentioned in House Report No. 1116. and cannot be found in Senate Report No. 1094. It is, therefore, easy to understand why so comparatively little objection was raised by those who want to preserve the Wichita National Wildlife Refuge when the Authorization bill was enacted and when the appropriation bill was passed by the House. In the hearings, the Army made it clear, however, that included in the $3,053.000 item for Fort Sill is $2,200,000 for the purchase of approximately 20.000 acres of private lands south of the Wichita Refuge. It was stated dur- ing the hearings that $1,000 of that amount is to cover the administrative costs of having the 10,700 acres of refuge lands transferred to the Army by the Department of the Interior-when, and if. Interior surrenders control of the lands. The Interior Department made an al- ternative proposal to the Army last spring, but, as I have stated before, the offer has been ignored. Mr. President, another fact my col- leagues should consider seriously is that even after the Authorization bill has be- a , Army would need to nego posed land transfer, but where is the American people, whether they lived supplemental appropriation for the in Brooklyn, N. Y., Milwaukee, Wis., or $177,000 that would be needed by the Seattle, Wash. Department of the Interior to cover the Mr. President, I believe a national the size ducin i t k g n re a e first obvious costs that would result from question is at s this deal? No, Mr. President, this whole of this great wildlife refuge. Once we thing needs more study, and more of an reduce the size of the Wichita Moun- effort on the part of the Army to resolve tains Wildlife Refuge, we will have pres- its problems at Fort Sill. We do not sure put on us at the Tule Lake refuge have to hurry into these hasty decisions, in Oregon and California, and at the especially during the closing hours of Olympia National Park in Washington. this session of the 84th Congress. Pressure will also be put on us with re- I therefore have offered an amend- spect to Yellowstone National Park in ment to delete that $1,000 from the Fort Wyoming, and at other park.; as well. Sill appropriation, and let this legislative ? All these great issues go together, Mr. record show that Congress is opposed President. Therefore, I have sutmitted an to the transfer of any part of the Wichita National Wildlife Refuge to Fort Sill, amendment to prevent the reduction in Mr. MANSFIELD. Mr. President, will size of the Wichita Mountains Wildlife the Senator yield? Refuge for the purpose of enlarging the Mr. NEUBERGER. I yield. artillery range at Fort Sill. Mr. MANSFIELD. Is it not true that Mr. HAYDEN. Mr. President, the if the agreement advocated by the Army committee took the action indicated be- is put into effect, it will cost the Fish cause the members of the committee felt and Wildlife Service $177,000 for the it was in the interest of national defense erection of fences and other appurte- to do so. Apparently there is a conflict between the fish and wildlife interests nances? and the national defense interests. Mr. NEUBERGER. It will cost the In view of the fact that Fort Sill. Okla., Fish and Wildlife Service at least $177,- is and has been for many years the great 000, because it will have to erect fences artillery training center of our Army, and take care of the animals which are we felt that the slight change involved now in that portion of the refuge pro- ought to be made. It is not a substantial posed to be taken over by the Army. change, as can be seen by looking at a The Fish and Wildlife Service will have map of this whole tract. For that reason to provide further supervision, and the the committee has approved the amend- cost will be at least $177,000, if not more. ment. Mr. President, It is with some trepi- Mr. MONRONEY. Mr. President, it is dation that I have advocated an amend- with a great deal of regret that the Sen- ment to the bill, when I know that the ator from Oklahoma speaks on this issue. two very distinguished and able Sena- It was absolutely necessary to take the tors from the State of Oklahoma have action recommended in the interest of been in favor of the proposed reduction preserving the Nation's oldest and most in size of the Wichita Mountains Na- famous artillery post. Fort Sill was not tional Wildlife Refuge, for the purpose established yesterday or during World of enlarging the artillery range at Fort War II or during World War I. It was Sill, established in 1907. Almost every artil- Let me say to them that it is my can- leryman who has served our country in did opinion that whenever Federal lands its wars has graduated on ,he terrain of are concerned, it is not a State matter. the Fort Sill Reservation. It is unusual When we had before us the issue of terrain, and it gives artillerymen the building or not building a dam which widest possible choice of firing practice, would flood out the Dinosaur National which will develop, as it ha; developed in come law, and the appropriation bill has been passed by the House, neither the Refuge Manager of the Wichita, the Chief of the Refuge Division, the Direc- tor of the United States Fish and Wild- life Service, or the Secretary of the Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 CONGRESSIONAL RECORD - SENATE hough, may I say, on several occasions e came very close to success. This year, my colleague and I joined in the joint public representations on this matter and in representations to the on this meritorious and sound THURMOND in the chair). The bill is open to further amendment. If there be no further amendment to be proposed, the question is on the en- grossment of the amendments and third reading of the bill. The amendments were ordered to be engrossed, and the bill to be read a third time. The bill was read the third time. The PRESIDING OFFICER. The bill having been read the third time, the question is, Shall it pass? The bill (H. R. 7278) was passed. Mr. HAYDEN. Mr. President, I move that the Senate insist upon, its amend- ments, request a conference thereon with the House of Representatives, and that the Chair appoint the conferees on the part of the Senate. The motion was agreed to; and the Presiding Officer appointed Mr. HAYDEN, Mr. RUSSELL, Mr. CHAVEZ, Mr. ELLENDER, Mr. HILL, Mr. STENNIS, Mr. BRIDGES, Mr. SALTONSTALL, Mr. YOUNG, Mr. KNOWLAND, and Mr. THYE conferees on the part of the Senate. ber and the dollar value of the certifi- cates issued have been increasing. The Office of Defense Mobilization, the certifying authority under the law, seems to find more emergency facilities, rather than less, necessary. As the au- thority to issue these certificates is en- tirely discretionary, I agree with Secre- tary Humphrey's concern at this new trend. This seems one more case, like the ex- emption from the antitrust laws for vol- untary agreements, or the exemption from the conflict-of-interest statutes for industry-paid employees, where the Ad- ministration favors continuance and ex- tension of emergency measures which benefit business, particularly big busi- ness, at the same time as it takes pleas- ure in announcing that price and rent controls may be ended because the emer- gency is over. The general provisions concerning amortization, relaxing the requirements for the benefit of industry, are a different matter. My objection to those provi- sions, as to the other provisions encour- aging investment, such as the dividend credits, was that such strong measures of encouragement to investment, as con- trasted with tax relief for consumers, were not necessary in 1954 to continue the flow of funds into investment. It is not clear just how far these measures helped to stimulate the stock market in its upward course last fall and winter. But it seems clear that these encouraging measures provided somewhat more en- thusiasm for investment than was need- ed by the stock market. Mr President, I ask unanimous con- 9927 I have carefully read your remarks in the Record and I am afraid that you are confused between the provisions for accelerated amor- tization about which I was testifying and the new provisions which revamped the reg- ular depreciation schedules in last year's tax law, which were not under discussion. The RECORD quotes you as saying: " * * * that this is a procedure or policy which was initiated during the Korean war and has continued since that time, and that all of a sudden the Secretary of the Treasury has discovered that it is an artificial stimulus of a dangerous character. This is the very point which was under consideration last year dur- ing the debate on the tax bill, and it was one of the principal reasons why I voted against the tax bill, and why I believe a number of other Senators voted against that bill." I well remember your objection in the de- bate last year to the tax bill and to its pro- visions relating to the depreciation sched- ules. These, however, have nothing whatever to do with accelerated amortization about which I was testifying on Monday, and it is a fact that those provisions for accelerated amortization were actually passed by the 81st Congress, effective as of January 1, 1950, and they have continued as a part of the Korean program since that time. For your information, I am enclosing a copy of my statement before the subcom- mittee, in which you will see that my whole point is that the Korean provisions have now largely outlived their usefulness, and, therefore, from now on should be sparingly used and rigidly confined. I am sure you will want to correct your mistaken criticism of my position, and I am very glad to have the opportunity to supply you with the facts concerning it. Sincerely, GEORGE M. HUMPHREY. STATEMENT BY SECRETARY OF THE TREASURY -HUMPHREY BEFORE THE SUBCOMMITTEE ON LEGAL AND MONETARY AFFAIRS OF THE HOUSE GOVERNMENT OPERATIONS COMMITTEE, JULY, sent to have printed in the RECORD at this point as a part of my remarks the fol- lowing: A copy of a letter dated July 20, 1955, addressed to me by the Secretary of the Treasury, calling my attention to the difference which I mentioned, together with his statement to the Subcommittee on Legal and Monetary Affairs of the House Government Operations Commit- tee; a copy of my letter, dated July 26, 1955, in reply to the Secretary's letter, to- gether with a United Press dispatch of July 4, describing the latest period in which the tax writeoffs have been al- lowed by the Office of Defense Mobiliza- tion, particularly calling attention to the nature of the amortization provision with respect to the Atchison, Topeka & Santa Fe Railroad, as an example of acceler- ated amortization for a purpose which it is difficult for me to believe is necessi- tated by any emergency in the national defense. There being no objection, the matters referred to were ordered to be printed in the RECORD, as follows: THE SECRETARY OF THE TREASURY, Washington, July 20, 1955. The Honorable J. W. FULBRIGHT, United States Senate, Washington, D. C. DEAR SENATOR: My attention has been called to some news reports last night, orig- inating from your remarks in the RECORD at pages 9354-9355 relating to my testimony before the Subcommittee on Legal and Mon- etary Affairs of the House Government Opera- tions Committee, with respect to accelerated amortization. THE EMERGENCY ACCELERATED AMORTIZATION PROGRAM Mr. FULBRIGHT. Mr. President, last Tuesday, I commented on a newspaper report about Secretary Humphrey's tes- timony on the emergency accelerated amortization program. In my com- ments, I pointed out that I had opposed the 1954 revision of the Internal Revenue Code because of its amortization provi- sions, and I indicated that this was the amortization provision to which I ob- jected in last year's bill. Secretary Humphrey has called to my attention the fact that it was the gen- eral amortization provisions of last year's bill to which I had objected, rather than to the continuance of the emergency ac- celerated amortization provision; and I wish to make this correction, for the benefit of the Senate. The emergency accelerated amortiza- tion program under section 168of the Internal Revenue Code, formerly section 124A, is a justified measure to assist in increasing defense-production capacity, where this method is the most satisfac- tory from the point of view of the Gov- ernment. Of course, as Secretary Hum- phrey pointed out, such measures are justified only as emergency measures, and should be stopped as soon as the emergency is over. This is why it is surprising to find that during the past three quarters, the num TREASURY DEPARTMENT, Washington. Mr. Chairman and gentlemen, I welcome this opportunity to appear before you and to express the point of view of the Treasury Department on the provisions in our tax laws which allow accelerated amortization for income tax purposes of the cost of cer- tain "emergency facilities." I want to make it clear that I am not urging repeal. Final decisions on the scope of the program should not be made until the studies now being made by the Defense Mobilization Board have been completed. i wish at this time simply to make certain suggestions which I believe should be care- fully considered in any study of the matter. The "crash" defense program which was initiated in connection with the Korean War has been substantially completed. Emergency amortization served a useful purpose during the early phases of rebuild- ing and expanding defense plant capacity to meet that emergency. However, the accel- erated tax writeoff is an artificial stimulus of a dangerous type. Its indefinite con- tinuance involves the very real danger that interests receiving the benefits of it come to rely upon it to the detriment of others who are not so favored. A defense mobili- zation program on a substantial ,scale may be essential for years to come. Expansion of our defense facilities should be an integral part of our broad, orderly, long-range, natural economic growth. Our basic defense ca- pacity cannot soundly be separated from the broad base of productive capacity in general on which our Nation relies for its economic strength. Artificial stimulants may well be- come artificial controls. Because this one is not of universal application but is be- Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 9928 Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4 CONGRESSIONAL RECORD -SENATE stowed only upon some who especially quall- fy as against others who do not. It could become a hindrance to sound, balanced, vigorous growth of our whole free economy. It Is not the American way. Moreover, I think It Important to remem- ber. In any consideration of the problem, that several recent changes In the tax laws have substantially altered the tax picture which existed when accelerated amortiza- tion of emergency facilities was first adopted. Then we had an excess-profits tax which took up to 82 percent of the profits from corporate business, and thereby tended to discourage large expenditures for new-plant facilities. That tax was repealed as of Jan- uary 1, 1954. The new liberalized deprecia- tion methods under the 1954 Internal Reve- nue Code now permit faster capital recov- ery by all taxpayers equally and meet the basic needs of the whole economy. This re- duces the need for singling out particular taxpayers or particular facilities for more favorable treatment than others receive. A highly selective program may well have merit if it Is strictly limited to very special cases-where there Is present and pressing need for goods that would be a "must" in time of war and which cannot be met by present facilities and where Government contribution is necessary to meet those goals. I suggest, however, that the broader the pro- gram-the more it extends Into areas other than the direct production of goods that are directly needed for war-the more dirlr- cult it becomes to administer wisely, with- out essentially arbitrary or discriminatory results. Indeed, the very existence of such a pro- gram may lead some taxpayers to construct facilities deliberately colored to meet sup- posed defense need. The tax benefits often could more than absorb the waste and extra expense to the taxpayer-but It hardly would be good for the economy. 4 77 266 569 776 880 Effect of allowance of emergency anlorti_ation ecttifecales; based on certificates of $30,521 million issued through June 29, 19, 55 Ifn millions or dollars] l'air' or Amount subject \ormal Arcelrr- ! Recess or aecrlrr? Decrease ~' Amount sul,? Aet Acerle - Excess or Calendar year y gem ileud f to accrl- 1 ai.d Sled in tax Calendar year crlue or arul lo l i - l~nrmal r sled acct L r DCCLeaga ni l ~ 1 rojcctx annuli. aon I lwn r ac re rti - Latiaa I amorn- lLlbill- tA`s t p o Iro , 1 p'eta a~ N r I deprrc?i- Blion = amortl- .11 :rc :ltill- it taumt ration r n - L311.U[1 f)r(l 3 , ties r - - rat We :xaion - 1950------------------ 1551----------------- 700 4,167 424 2,500 f 57 21 22 Is 205 7 190,5.______________-- 113 ti 199 30,.`,21 IS, 313 1,2:9 2,060 751 3s1 11152------------------ 9,653 5,810 249 831 5142 _____ 381 1960--___-__-_ 30,021 521 30 4,313 18 313 1,21$ 1 1,383 1 55 7p 111 53------------------ 1 45 If,, 00(1 9.6011 4113 1,541 1,078 __-__-__ 593 1951---_____________-- . 30 621 , 11.313 ,146 Lost) 743 37 -4143 -1111 1 4 __-____ _ 1955 22, 0(91 26 594 13, 200 15 9 5 7117 2, 22,0 1,493 747 1962 . 30, 521 1'14, 313 1 037 2 100 -7110. 837 -319 -377 ---______ -- 19.116 ________ --- , 21,474 , . 6 17,947 1.132 1.279 2,845 2 099 1,763 3411 1 8142 191113 ____--_-___------ 1964 30,521 11,, 313 , 1,(1011 63 -937 -422 1957 57---------- --- 29,47Y 17, 687 1, 21,9 , 2, 63,1 , 1,344 t4 _______________ 6w II 30,521 16,313 967 0 -967 -435 I Fail of year. These estirnates are hand on the 01)5f rrpnried figures, hat arc ruodified in order to recnneile with cvrlx,ratr aruorti,i,tk it dcduruans for 1951 and 1952. r Co mputni on the basic o f a si raiph 14] tip rate of G rr rc er t, agsun dng that all ct r(Ifb cats holders use the declining-halancr nleth.xi at 2000 I%ro at of the straight-line rate Effect of allowance of emergency amortiza- tion certificates [In millions of dollars] Decrease in tax collections 1951-------------------------------- 1952--------------------------------- 1953-------------------------------- 1954--------------------------------- 1955-------------------------------- 1956--------------------------------- ------ ---------------- ---------- The The revenue effects of the program are significant. I shall present four statistical tables to the committee. They have been prepared by the Treasury staffs. These tables will give you the facts, and our estimates of the direct dollar Impact of the present program on the revenue. You will note that the estimated revenue loss this fiscal year will be 4880 million. With our budget not In balance, this figure gives us serious con- cern. Extension of the program well may stand in the way of future more general tax reductions for all taxpayers which would be of Important assistance to all business and to our continued economic growth and expansion. Finally, I should like to speak very frankly about this use of the tax laws to further spe- cial programs and accomplish purposes other than simply the collecting of taxes. The power to tax is the power to destroy and revenue laws should be used only to equita- bly raise revenue, not for other Indirect pur- poses. It Is dangerous to use the tax laws for social purposes, to favor one citizen or group of citizens over others, to exercise economic controls, or to Indirectly subsidize any segment of our economy. If, in the wisdom of the Congress, such subsidies or assistance to special communi- ties or for special purposes are desired, then appropriations should be made for the pur- pose which can be submitted to the Con- gress through regular channels where the amounts will be well known and where the Congress specifically can vote in favor of or in opposition to special treatment for any group. Under this program of tax reduc- tion In special cases, our net revenues can be reduced and our deficits increased with- out formal action or appropriations by the Congress, This use of the tax laws, where the stimulants are applied by men, not by law, is appropriate only In an emergency for assets acquired after Jan, 1, 1904, switching to straight line when it becomes ad- Vail F r' s. liceunce tax rates reflecting rate decrease scheduled under present law. Office of the Secretary of the Treasury, Analysis Staff, Tax Dividon, July 18, 1955. of allowance of emergency amortiza- tion certificates-Continued [In millions of dollars[ Decrease in tai collections 1957-------------------------------- 1958--------------------------------- 1959----------------- --------------- 19G0 -- - -' -- -- -- - - 19G1-------------------------------- 1962-------------------------------- 810 625 870 87 -167 -310 July 2G or under special conditions under rigid re- strictions when usual procedures are inade- quate for our protection. Rapid amortization unquestionably was of real assistance in expediting preparation for the war and still can be useful it limited strictly and exclusively to that end. It in- duced the investment of large sums of pri- vate means for production that was made available under private management far better and far quicker than otherwise would have been obtained. It kept the invest- ment of public funds to a minimum and it left no great burden of pubic properties to be disposed of when their war purposes had been served. The Office of Defense Mobilization has re- cently requested the agencies that make recommendations to it such as the Depart- ments of Commerce and Interior and the Defense Transport Administration, to review all existing expansion goals with the follow- ing points in mind: 1. Evaluate goals on the basis of defense need. The need for additional expansion shall be quantitatively measured in terms of wartime supply and requirements. 2. Expansion goals shall be based upon shortages which, in the judgment of the delegate agency, will not be Overcome with- out the incentive of tax amortization. When the Defense Mobilization Board has completed its review of the -3rogram in the light of these criteria, and made Its recom- mendations to the Director of Defense Mo- bilization, it is expected tht.t the program for the future will be on a p^oper basis. This is not critical of the past. Nor is it thought best to abandon the practice en- tirely. But its usefulness In the future will be greatest for the good of the Nation as a whole if from now on it Is used only spar- ingly and very rigidly and strictly confined to direct war-requirements applications. Effect of allowance of emergency amortiza- tion certificates-Continued [In millions of dollars] Decrease in tax collections 1963--------------------------------- -374 1964-------------------------------- -420 1905-------------------------------- -434 Office of the Secretary of the Treasury, Analysts Staff, Tax Division, July 18, 1955. Approved For Release 2010/05/05: CIA-RDP63T00245R000100180016-4