UNITED STATES TIES ITS OWN HANDS IN MEETING SOVIET OIL OFFENSIVE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000100220080-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: June 21, 2004
• Sequence Number: 80
• Publication Date: July 19, 1962
• Content Type: OPEN

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1962 CONGRESSIONAL RECORD - SENATE
ady, it is my convinced judgment that
the committee proposal is more esesntial
than ever before in the fields of con-
sumer frauds, quality, prices and pro-
ductivity. The consumer has a burning
interest in these fields which needs to be
separately represented.
So I hope very much that the Presi-
dent of the United States will show an
interest in real action and back the
idea of a select committee on consum-
ers or give us proposed legislation to
provide a proper basis fora consumers'
council in Government. There must be
an area of Government in which the
consumers' interests may adequately
function as an active force in what is
done by way of legislation as well as in
the executive department.
Mr. President, I ask unanimous con.
sent to have printed at this point in the
RECORD an editorial published in today's
issue of the New York Times on the
subject, and a newsstory upon the same
subject.
There being no objection, the editorial
and article were ordered to be printed in
the RECORD, as follows:
[From the New York Times, July 19, 19621
A BONE FOR CONSUMERS
The appointment by President Kennedy of
a Consumers' Advisory Council so close to the
start of the congressional campaign is bound
to provoke some skepticism. The President
expressed much interest in consumers in his
1960 election drive, but he waited until he
had been in office a year and a half before
naming this body. The pro forma interest
the administration has displayed in follow-
ing up the virtuous but somewhat vaporous
proposals contained in Mr. Kennedy's omni-
bus message on consumer problems several
months ago indicates little prospect of force-
ful new' protection of consumer interests,
PRESIDENT NAMES CONSUMER PANEL-DEAN AT
CORNELL IS CHAIRMAN OF ADVISORY COUNCIL
WASHINGTON, July 18.-President Kennedy
announced today the appointment of a 12-
member Consumers Advisory council to
give broad consideration to the consumers'
needs and point of view.
He named Dr. Helen G. Canoyer, dean of
the School of Home Economics at Cornell
University, to be its chairman.
Establishment of the council fulfills a
campaign pledge made by Mr. Kennedy in
1960.
The pledge called for a White House as-
sistant on, consumer affairs. The unit an-
nounced today is a modified version of that
and, in a way, more extensive because it
sets up a- consumer network throughout the
executive branch.
The new council will report to the Council
of Economic Advisers. Membership is not a
full-time position. Compensation will be
$50 a day, when actually employed, and
expenses.
The group will be assisted by a small staff
and by liaison officers designated by 22 de-
partments and agencies. The liaison work
will be an addition to the regular duties of
these departmental and agency employees.
Six of the new council appointees are
women, six are men. Eight are Democrats,
two are Republicans. Two others, including
the chairman, recorded no party affiliation.
The members follow: Miss Helen G. Gan-
oyer, David Angevine, Dr. Persia Campbell,
Stephen McKenzie du Brul, Jr., Mrs. John
G. Lee, Dr. Edward S. Lewis, Walter F. Mon-
dale, Dr. Richard L. D. Morse, Mrs. Helen E.
Nelson, Sylvia Porter, Dr, Caroline Ware, and
Dr. Colston E. Warne.
Later today, Secretary of Labor Arthur J.
Goldberg announced the appointment of
Mrs, Aryness Joy Wickens as the Labor De-
partment's liaison officer to the. Consumers
Council. Mrs. Wickens is a specialist in
UNITED STATES TIES ITS OWN
HANDS IN MEETING SOVIET OIL
OFFENSIVE
Mr. KEATING. Mr. President, on
Monday I disclosed on the Senate floor
the fact that an important study on the
impact of Soviet oil exports on the free
world was being held up within the Gov-
ernment by rigid and legalistic interpre-
tations of our conflict-of-interest laws.
At that time I warned that unless some
effort was made to bring our cold war
strategy into line with the trade threat
which the free world is facing, we would
be tying our own hands. The New
York Times this morning reveals very
clearly that the Soviets are still busily
pushing their own advantage, while in
the United States the chairman of the
National Petroleum Council, a quasi-
governmental agency, has resigned as a
result of fundamental differences in the
effort to meet the Soviet threat.
Mr. President, one of the most im-
portant projects which the National Pe-
troleum Council was working on in co-
operation with the Interior Department
is a detailed and authoritative study of
Soviet oil tactics. Up to this point our
Government has developed no policy to
meet this threat. We have not even had
complete data on the extent of the
threat. The purpose of the NPC study
was to fill this gap and to discuss the oil
industries of all the Communist coun-
tries including China and their needs and
their present and potential impact
throughout the rest of the world.
We had very impressive testimony
about the huge oil reserves in Russia
before our Committee on Internal Secu-
rity. Reliable reports indicate that the
NPC report, a draft of which has already
been completed by the working subcom-
mittee, is nearly 600 pages long plus
charts and addenda. Yet, Mr. President,
incredible as it may seem, this report, as
well as the other activities of the Na-
tional Petroleum Council have now been
blocked. The Soviet oil report has been
held up for a month already.
Mr. President, it is impossible for the
United States to meet the worldwide
Soviet threat under archaic concepts
which prevent our own Government from
using the brains, ability, and know-how
of private enterprise to meet Soviet
challenges. Particularly in the area of
trade, it is vital that businessmen who
actually conduct the trade be permitted
to study, discuss, and make recommen-
dations as to overall Government policy
direction. It is obviously impossible for
the members of the National Petroleum
Council, most of which are important
oil company executives, to be barred
from dealing with the problems that are
touched on in this report when they work
in their private capacities. This would
mean that these executives who have
worked on this report may be unable to
serve their own companies in meeting
the Soviet oil problem directly.
Mr. President, the Communists will not
wait while we quarrel over our own laws
and regulations. The newspaper this
morning also carries a story of Soviet
activities in this field. We can be sure
that the Soviets are not idle when the
free world is squabbling. Tass, the So-
viet news agency, has just carried an
interview with the head of the Oil Export
Administration, an interview designed to
quiet European fears and encourage
European countries to take more Soviet
oil.
Mr. Gurov, who is the head of the
Oil Export Administration, has noted
that last year Soviet oil accounted for
only 8 percent of the total oil consump-
tion in Common Market countries. He
said the percentage was not expected to
rise in the next few years, as both Soviet
exports and West European consump-
tion continue to increase.
Let us watch it. It will rise in the
next few years. Mr. Gurov is making an
inaccurate statement. It has been
rising. It is going to continue to rise.
It is going far beyond 8 percent unless
we, with our allies, establish some co-
ordinated policy. Mr. Gurov also said
that the Soviet Union would not try to
exert political pressure on its oil pur-
chasers.
Furthermore, it is also reported in a
separate report that the sale of Soviet
oil "at dumping prices" in Western
Europe will be one of the main subjects
at the Fourth Arab Petroleum Congress
in November. The foresighted chair-
man of the Lebanese delegation to the
Congress, Emile S. Bustani, has already
warned the Arab countries that Soviet
oil exports will hurt them seriously.
Sales in Western Europe by the western
oil companies of Arab-produced oil bring
big royalties and revenues to the Arab
states. Soviet sales cut seriously into
the Arab market.
In considering the. Soviet oil menace,
let us not forget the words of Soviet
Premier Khrushchev. I hope I have not
made a nuisance of myself in speaking
on a number of occasions on this subject,
but I feel very deeply on this matter,
and it is a major concern to our Nation.
As I say, we should not forget the words
of Mr. Khrushchev, the Soviet Premier.
He should know, if anyone knows, what
his country is trying to do. He has
said:
We value trade least for economic reasons
and most for political reasons.
It is time for the executive branch ' of
the Government to wake up to the extent
of the Soviet oil threat, and not tie its
own hands through unnecessary and un-
realistic conflict of interest interpreta-
tions.
Mr. JAVITS. Mr. President, will the
Senator yield?
Mr. KEATING. I yield to my col-
league,
Mr. JAVITS. There is one thing my
colleague from New York has not men-
tioned. The Senator and I have both
been very much interested in this whole
East-West trade problem and have
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13154 CONGRESSIONAL RECORD -SENATE' July 19
worked together on the Export Control the Communist empire, and to demon- information in the Department on these
Act. Lrefer to the antitrust laws, which strate the extent of Soviet intolerance matters. The letter does not mention,
also, as well as the conflict-of-interest before the whole world. for instance, that Jews are being ousted
laws, have a considerable effect: on this My inquiry about the latest trend of continuously from their jobs and even
situation. developments was first made to the U.S. their homes for mysterious reasons. It
I wish to call attention to the fact Department of State in December 1961. does not mention that there is but one
that the Banking and Currency Com- I called attention to the serious prob- Yeshiva left existing in the entire Union
mittee will soon be considering some lem of Communist persecution of Rus- of Soviet Socialist Republics. Moscow's
possibilities along this line, related to sian Jewry under the guise of routing Yaad-Yeshiva, headed by Rabbi Yehuda
section 708 of the Defense Production out black marketeers and other so-called Leib Levin is the last theological semi-
Act, which permits the Attorney Gen- economic criminals. Under this cruel nary allowed to operate and then only
eral to exempt certain arrangements program a number of Jewish citizens under such nerve shattering conditions
from the antitrust laws in the national have been executed or sentenced to long that those who enter must be specially
interest. I should like to call this to prison terms. It has become increas- prepared for the consequences of their
the attention of my colleague from New ingly clear that the real aims of this action. It is easy for Mr. Khrushchev
York and to the attention of all Mem- phony economic campaign are the elimi- to maintain that Soviet Jewry is being
hers of the Senate, so that if they have nation of Judaism in the Soviet Union treated like every one else, but these
any questions or any views or evidence and, insofar as possible, of all organized and many other facts clearly dispute his
which ',they would like to offer upon the religion. The situation. in Russia now is reasoning. This intensive campaign to
subject as it- relates to this matter of becoming reminiscent of the pogrom stifle the practice of Judaism in the
meeting Soviet competition in trade, the conditions of the prerevolutionary era. Soviet Union is intolerable, Mr. Presi-
Banking and Currency Committee will As the wave of anti-Semitic terror has dent, and must be stopped.
be hearing evidence on these issues as mounted, many letters. have come into Mr. President, this letter from the
they relate to pending amendments to my office protesting these activities of Department has supplied the public with
the Defense Production Act. the Soviet Union and asking what the some new information, but it is far from
Mr. KEATING. Mr. President, I ap- United States can do to counteract them, complete. What disturbs me even more,
preciate the remarks of my colleague. More than once, I have taken the ques- however, is that apparently next to noth-
I am aware of the fine work which he tion up with the Department of State ing is being done to protest these activi-
has done in this field. My understanding requesting more detailed information ties. On March 14, 1962, I called to the
is that in this instance the holdup of and urging more vigorous protests on attention of this body a letter which I
the National Petroleum Council study is these activities. had received from Assistant Secretary
specifically based on a failure to come to The latest reply I have received from Dutton in December 1961, answering
grips with the problem of conflict-of-in- the Assistant Secretary of State, Fred- questions similar to the ones I posed
terest, regulations for members of ad- erick Dutton, discloses two new pieces of last week, and I compared that letter
visory, groups. That is the reason why evidence in the Soviet anti-Semitic with the text of a memorandum which
this Soviet oil report has been held up campaign. It reveals what I had sus- had come into my office 4 months later,
in the Department of the Interior for pected for some time, namely, that the purporting to be the "latest information"
about a month. I first brought up and Communist's long-term antireligion cru- on the subject. I was shocked to dis-
discussed the month-long delay in a sade has, in fact, been heightened in the cover, as I told this body then, that the
statement on the Senate floor on Mon- last few months. The Soviet publica- letter and the memorandum were virtu-
day. Since then, the resignation of the tion, Party Line, in an article of May 9, ally word-for-word copies of each other.
head of the NPC has underscored the 1962, states that: And I am dismayed to report now, that
urgent need for a reconsideration of this The Soviet Union has stepped up its anti- after another 4 months, nothing new
aspect of our conflict-of-interest regula- religious activities since the 22d party (con- has been added by way of positive action.
tions. gress) and social organizations have recently About all that the Department of State
Mr. JAVITS. The Senator is properly strengthened what is described as "scientific can offer to those of us that are seriously
for the religious propaganda"; that religious sects concerned about this problem, is that
stating the reported reason have been dissolved and that there has been President Eisenhower and Premier
holdup of this report, as referred to in an increase in the number of people who Khrushchev had anti-Semitism on the
the New York Times today. However, have renounced religious beliefs. agEnda of their talks at Camp David in
under in the a report ireport companies of a may n;y activity He further states that: 1960.. Nothifig new has apparently been
ately run afoul of the antitrust laws. I Allegedly at the request of former believ- done in the last 2 years.
was merely pointing out that this is a ers, many churches and prayer houses have The recent appointment of Veniamin
two-stage operation. The Senate has been closed. E. Dymshits, a Jew, as Chairman of the
properly dealt with the conflict-of-inter- The criminal code now authorizes the State Planning Committee and Deputy
Premier of the Soviet Union may be de-
considered stage, which, incidentally,. we have prosecution of those engaged in religious P emi to quiet Soviet on the mounting
considered to some extent in the National activities, or even those who simply be- signed ism some Soviet anti-Semi-
on Policy Subcommittee of the Committee lieve in God. oversea criticism t i-Semi-
. But Dymshits, spi the there religious heritage
on Government Operations, as one hard Soviet newspaper accounts have given tism. But tic
t
nut that faces us. I was also pointing to prominence to Soviet citizens with Jew- of Mr. is no evidence
a problem which is a corollary problem ish names allegedly involved in illegal that he has practiced the Jewish religion
, is a prac ew sh rnd and is being considered by another com- commercial activities. The State De- himself; in fact,
Communist and a member of ac-
mittee of the Senate. partment report indicates that the tive Committee, he has undoubtedly
March issue of a prominent Soviet mag- foresworn the faith of his fathers. undoubtedly
ANTI-SEMITISM azine, in exposing economic activities in haps also his appointment may be de-
the region of Frunze involving 54 offend-
n: signed to tother Soviet Jews with
MKEATING. Mr. President, for ers, listed the names of 33 persons, 15 of preferment as a with
many months I have been shocked and whom had identifiable Jewish names. the slure igned t ward for r of tempt p ligiou political papoeasy.
discouraged by the continuing anti-Se- The government appears to be attempt- Mr. Precedent , in other times men. have
miticactivities in the Soviet Union. Per- ing to link historic Russian anti-Semit- desert the Lord for
securtion, both official and unofficial, of ism to its economic campaign, by these been r
that In not they the will desert to desert
Soviet Union L the Lothe! rd, dan-
members of the Jewish religion is, ac- tactics and others. Detailed coverage is beewarned
cording to all reports, being stepped up given in the Soviet ress to criminals ger is
to a new crescendo of religious discrimi- bearing Jewish names, and the attack is for Mammon, but for Marx.
nation and nationalistic racialism. It is carried into every facet of daily life. I admit that there is only a narrow
not enough for the U.S. Government to This letter from the State Department, range of diplomatic action possible, given
express polite private regrets. There is however, has failed to mention many the nature of this problem, but our diplo-
a real need to expose Soviet hypocrisy other aspects of the Russian anti-Sem- mats may have not even explored this
on the subject, to reveal that prejudice itic campaign in his letter. I sincerely limited area thoroughly. In the last 8
and discrimination are rife throughout hope that this does not indicate lack of months, I have received three separate
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1962 CONGRESSIONAL RECORD -SENATE
communications from the Department of tendencies has led to anti-Semitic perse-
state on this subject. The last is as In- eution.
conclusive as the first. The Department
has not even redrafted the form letter.
Whole paragraphs are identical in each
of them.
Mr. President, the perfect opportunity
now exists for the United States to exert
some leadership on this very serious
problem. In a short time, the Senate
will be asked to give its advice and con-
sent to the nomination of a new Ambas-
sador to the Soviet Union. And shortly
after that, our new envoy, Mr. Foy Koh-
ler, an experienced career diplomat, will
present his credentials in Moscow and
begin a round of diplomatic consulta-
tions.
I therefore urge the administration
specifically to instruct the new American
Ambassador to the Soviet Union to place
high on his agenda of talks with the Rus-
sians consideration of the problem which
I have been discussing here. I urge our
Ambassador be instructed to exert all
the influence he has at his command to
express the vital concern of the Ameri-
can people in this problem and to exer-
cise all the moral suasion possible to
bring about some amelioration of the
conditions now existing for the Soviet
Jew.
Now is the time to act. The moment is
here as evidence of anti-Semitic cam-
paigns mount day by day, and as anew
., some minimum amount of food, clothing,
American envoy prepares to assume his and education.
duties in the Soviet capital. To act firm-
ly on this problem as exemplified in the North Africa continues, Mr. President.
eSoviet Union a served a i prec-
of of To some extent, we have come to expect
or he he nations
the world m, a notice sch ed d on tolerate the
tacitly ly en- the birth pangs of a new nation to be
courage anti-Semitism within their accompanied by trouble and hardship.
borders, oaat the United States is con- But in Algeria, Tunisia and Morocco,
ce, an d that con- the Jews have had to bear a dispropor-
all he its tehe energies and tionate share of the hardship. Latent
prepared pared to and bring the
fluence to t bear bring on the United solution of t States in- e is anti-Semitism has flared and, as in the
problem. past, the Jews have become the scape-
Already we have seen enough recent goats for impatient nationalists.
evidence of a revival of anti-Semitism in With these recent outrages in mind,
other parts of the world to suspect that Mr. President, I think it would help, not
the Russian example or Soviet influence harm, the situation for our new Am-
may have had its effects outside the geo- bassador in the Soviet Union to make
graphic borders of the Communist em- strong representations on this issue early
pire. in his mission. To do this is in accord-
In Algeria, for instance, the plight of ance with American principles. It is an
the Jews-as of all non-Moslems-stands act of very real concern and importance
in striking contrast to the worldwide not only to the millions of American
celebration which has been made at the Jews who are deeply troubled by the fate
news of the independent Algerian state. of their religious brethren in Russia and
It is a shame and a crime that suffering elsewhere, but also to the 180 million
and presecution of, a portion of these Americans of all races and religions who
supposedly "free" people should be al- believe in the world of brotherhood, the
lowed to cloud the unanimous joy and re- dignity of man, and the liberties which
lief over the end of the long and bloody have given our Nation its enduring
war with France. strength. It is a moral obligation which
But cloud it, it does. The new AI- jI ^sincerely trust our Government will
protestations, begun a campaign of so-called nationalization which will ef-
fectively force the Algerian Jewish com-
munity either to leave the country or to
shut itself off from the world in a gloomy
and hopeless ghetto. We are all fa-
miliar with the themes of nationalism-
a return to national customs and lan-
guage, the growth of a national middle
class, association with other newly inde-
Particularly cruel in Algeria-with
about 135,000 Jews-is the fact that a
government which should be represent-
ing all of its people may be joined with
the Pan-Arab movement in a campaign
against the State of Israel and its so-
called -Zionist intrigues. What ap-
pears to be happening in Algeria, Mr.
President, is a sinister distortion of that
high-sounding slogan for national inde-
pendence-instead of "Algeria for the
Algerians," we have "Algeria for the
Moslems."
The result is racial discrimination and
persecution of serious proportions.
Thousands of Jews are fleeing the coun-
try every day; Jewish communal life in
Algiers has practically disappeared, and
there are many Instances recorded of
street battles between the FLN and Jew-
ish citizens, many instances of suffering
and death.
I might point out, Mr. President, that
the situation in Algeria, bad as it is, com-
pares favorably with the situation in
other parts of North Africa where Jews
have been consigned to restricted ghet-
tos, and considered far inferior even to
the lowest of Moslems. Many of these
Jews are effectively shut off from the
rest of the world, dependent upon. the
THE CORRECTION OF EXPENSE AC-
COUNT ABUSES
Mr. GORE. Mr. President, in a mes-
sage to Congress on April 20, 1961, Presi-
dent Kennedy stated that "widespread
abuses have developed through the use of
the expense account. Indeed, expense
account living has become a byword in
the American scene."
The Secretary of the Treasury, in mak-
ing specific recommendations to the
Ways and Means Committee, on May 3,
1961, for corrective legislation in the
expense account area, stated that an
audit had recently been made by the
Internal Revenue Service, and "although
this audit covered only 38,000 returns,
it shows that these returns claimed de-
ductions totaling $5.7 million for club
dues, $2 million for theater tickets and
similar amusements, over $1 million for
hunting lodges and fishing camps, $2.6
million for yachts, and $11.5 million for
business gifts. Most significantly, the
audit shows that only a small portion
of these expenses can be disallowed un-
der existing law."
In view of the obvious abuses and the
Secretary's statement that existing law
does not deal adequately with the prob-
lem, it would seem only reasonable to
suppose that the Congress would move
decisively and promptly to give the In-
ternal Revenue Service the tools It needs
to protect the public interest against
these widespread abuses.
H.R.10650, the tax bill, as passed by
the House, dealt with the expense ac-
count problem, but somewhat tenderly.
I was disappointed that the provision
was not a stronger one.
But my disappointment has been dou-
bled by the action of the Finance Com-
mittee of the Senate on this same
subject. Not only has the Finance Com-
mittee failed to follow the recommenda-
tion of the President and the Secretary
of the Treasury to amend the law to
treat effectively with this tax abuse, but,
even worse, the committee adopted an
expense account amendment which is
far worse than the inadequate provision
of the House-passed bill. Indeed, it may
be worse than the existing law under
which the widespread abuses occur.
This amendment was described in the
committee by its author as "the prudent
man" amendment.. In argument against
it I asked for the dictionary and read
to the committee the following and, I
think, appropriate definition of the word
"prudent":
Habitually careful to avoid practical er-
rors and to follow the most profitable and
politic course; especially attentive to one's
own interest; worldly wise-as "A prudent
man forese:eth the evil and hideth himself."
I have personal affection for each
member of the Senate Finance Commit-
tee, but much to my regret my concep-
tion of the public interest is frequently
at sharp variance with the action of
the majority of the committee; that
is surely true in this instance as well
as in many others.
It will be my purpose, therefore, to
join with other of my colleagues who
are interested in correcting some of the
more obvious and wholly unjustified
abuses which now exist in our Internal
Revenue Code in an earnest endeavor
to rewrite the tax reform bill on the floor
of the Senate at such time as it may
be called up by the leadership for action.
It is not easy, I realize, to write tax
legislation on the Senate floor, but in
my view In this Instance it cannot be
avoided. The effort must be made, and
I trust it will be successful.
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13156
CONGRESSIONAL RECORD -- SENATE July 19
FOREIGN ASSISTANCE ACT OF 1962-
CONFERENCE REPORT
The Senate resumed the consideration
of the report of the committee of confer-
ence on the disagreeing votes of the two
Houses on the amendment of the House
to the bill (S. 2996) to amend further the
Foreign Assistance Act of 1961, as
amended, and for other purposes.
Mrs. SMITH of Maine. Mr. President,
recently the Senate marched strongly up
the hill to express its opposition to aid
to Communist countries and adopted`an
amendment by the Senior Senator from
Ohio to bar such aid to Communist
countries. But the next day the Senate
rather timidly marched back down the
hill and greatly diluted that action with
a nullifying amendment.
Whether one is for aid to Communist
Yugoslavia and Communist; Poland-
and neutralist India-or not, I think
most everyone would acknowledge the
extremely good sense expressed in an
editorial in the July 13, 1962, issue of
the Wall Street journal entitled "A
Weak Political Tool" and .1 ask unani-
mous consent that it be placed in the
RECORD for everyone to read-not only
to read but to study.
Ithink it puts the finger on one of the
greatest weaknesses in the policies and
administration of our foreign aid pro-
gram.
'There being no objection, the editorial
was ordered to be printed in the RECORD,
as follows:
A WEAK POLITICAL TOOL
The congressional criticism of foreign aid
this year centers on three countries: Poland,
Yugoslavia, and India. Each case tells a
good deal, we think, about what is wrong
with the aid program as a whole.
Poland and Yugoslavia, of course, are
Communist countries, the one a Soviet
satellite, the other not. Whether they get
any more aid, and if so how much, is now up
to a House conference committee.
To some critics the fact that they are
Communist should automatically bar them
from aid consideration. But that is not the
central question; It is, or should be, whether
any significant U.S. interest is served by the
aid.
In the beginning the an:.wer may well
have been affirmative. After Tito of Yugo-
slavia broke with Stalin in 1948, it was in the
American interest to have him remain in-
dependent, and American aid helped serve
that purpose. Somewhat similarly, after
Poland's Gomulka wrested some internal
autonomy from Khrushchev In the wake of
a :near-revolt in 1956, it seemed sensible to
try to help him keep it. Divisions and tur-
nwil in the Communist camp are almost by
definition gains for us.
But because something may have been
useful at one time is no excuse for doing it
forever. Any semi-independence Poland en-
joys today Isn't benefiting the United States
and probably has nothing to do with
whether U.S. aid is granted or not. In the
cold war arena, Yugoslavia has become prac-
tically indistinguishable from the Soviet
Union. In each case any new aid would sim-
ply be a handout, with no clear function
from the viewpoint of American interest.
I And this trap is what the United States
has fallen into all over. By letting people
get the impression that the aid is to be a
permanent subsidy, we rob it of flexibility
and effectiveness as a political tool.
Certainly that is the sorry circumstance
in India. The aid, in our opinion, should
not be terminated merely because anyone
gets mad at Nehru for his constant carping
at this country, his "neutralism" or even his
buying of Soviet Migs if he decides to do
that. As everywhere else, the criterion
should be what U.S. Interest the aid is aid-
ing.
On that basis. It would be hard indeed to
justify the very considerable amount of aid
the United States is giving India. Certainly
it cannot be argued that the help has kept
India from going Communist. India has not
gone Communist because enough Indians op-
pose It despite Nehru's philosophical affec-
tion for the ideology, because the Communist
Party in India is not strong enough, and
because neither the Soviet Union nor Red
China has yet tried to take the whole nation
by force. The Chinese border incursions
have done more than United States aid to
make Indians anti-Communist.
We are aware that the further argument
is that India must be aided so as to
strengthen its economy and hence its demo-
cratic political institutions. Unfortunately,
the aid may have done more harm than good.
Today India Is in deplorable economic and
financial shape, not least because it is try-
ing to run a socialist economy which the
U.S. aid has inevitably helped to entrench.
This kind of thing is also being duplicated
around the world. The truth is that we
are trying to do too much and too often we
are doing the wrong things.
A real reform of foreign aid would have
to cover a great deal. But surely its be-
ginning should be a case-by-case analysis of
aid as it affects the American interest. And
just as surely the beginning of aid wisdom
must be to make it perfectly clear that the
help is limited not only In scope but dura-
tion.
The U.S. Government has already waited
far too long to make that beginning.
The PRESIDING OFFICER. The
question is on agreeing to the motion of
the Senator from Oregon [Mr. MORSE]
to postpone the further consideration of
the conference report until August 1.
The yeas and nays have been ordered,
and the clerk will call the roll.
The legislative clerk called the roll.
Mr. HUMPHREY. I announce that
the senator from Virginia [Mr. BYRD],
the Senator from South Carolina [Mr.
JOHNSTON], the Senator from Louisiana
[Mr. Lone], the Senator from Oklahoma
[Mr. MONRONEYI, and the Senator from
Utah [Mr. Mossl are absent on official
business.
I further announce that the Senator
from New Mexico [Mr. CHAvEz], and the
Senator from Arkansas [Mr. FULSRIGHT]
are necessarily absent.
I further announce that, if present
and voting, the Senator from Oklahoma
[Mr. MONRONEY] would vote "nay."
Mr. KUCHEL. I announce that the-
Senator from Colorado [Mr. ALLOTT] is
absent on official business.
The Senator from Utah [Mr. BEN-
NETT], the Senator from Arizona [Mr.
GOLDWATER], and the Senator from Iowa
[Mr. HICKENLOOP33R] are necessarily ab-
sent.
If present and voting, the Senator
from Colorado (Mr. ALLOTTI, the Senator
from Utah [Mr. BENNETT), and the Sen-
ator from Arizona [Mr. GOLDWATER]
would each vote "yea."
The result was announced-yeas 41,
nays 48, as follows:
No. 122 Leg.]
YEAS-41
Anderson
Dworshak
Murphy
Bartlett
Eastland
Neuberger
Beall
Ellender
Pearson
Bible
Ervin
Proxmire
Boggs
Fong
Robertson
Bottum
Gruening
Russell
Bush
Hruska
Scott
Butler
Jordan
Talmadge
Capehart
Kuchel
Thurmond
Carlson
Lausche
Tower
Cotton
McClellan
Wiley
Curtis
Miller
Williams, Del.
Dirksen
Morse
Young, Ohio
Dodd
Mundt
NAYS-48
Aiken
Hill
Morton
Burdick
Holland
Muskie
Byrd, W. Va.
Humphrey
Pastore
Cannon
Jackson
Pell
Carroll
Javits
Prouty
Case
Keating
Randolph
Church
Kefauver
Saltonstall
Clark
Kerr
Smathers
Cooper
Long, Mo.
Smith, Mass.
Douglas
Long, Hawaii
Smith, Maine
Engle
Magnuson
Sparkman
Gore
Mansfield
Stennis
Hart
McCarthy
Symington
Hartke
McGee
Williams, N.J.
Hayden
McNamara
Yarborough
Hickey
Metcalf
Young, N. Dak.
NOT VOTING-11
Allott
Fulbright
Long, Ira;
Bennett
Goldwater
Monroney
Byrd, Va.
Hickenlooper
Moss
Chavez
Johnston
So Mr. MORSE'S motion was rejected.
Mr. SPARKMAN, Mr. President, I
move that the vote by which the mo-
tion was rejected be reconsidered.
Mr. HUMPHREY. Mr. President, I
move to lay on the table the motion to
reconsider.
The motion to lay on the table was
agreed to.
Mr. STENNIS obtained the floor.
Mr. DIRKSEN. Mr. President, will the
Senator from Mississippi yield, in order
that I may propound an inquiry?
Mr. STENNIS. I yield for that pur-
pose.
LEGISLATIVE PROGRAM
Mr. DIRKSEN. Mr. President, I
should like to ask the majority leader
about the program for the remainder of
today. I understood that the conference
report on the welfare bill was to be taken
up next. Is that correct?
Mr. MANSFIELD. That is correct. I
do not know how much longer the Sen-
ate will proceed on the conference re-
port on the foreign-aid bill; but it is
anticipated that following the comple-
tion of action on that conference report,
the Senate will then take up the confer-
ence report on the welfare bill. I do not
know how long the consideration of that
report will take.
Mr. DIRKSEN. Very well. I should
like to ask the distinguished Senator
from Oklahoma [Mr. Keaa]-assuming
that he will submit the conference re-
port on the welfare bill--whether he an-
ticipates that its consideration will take
very long.
Mr. KERR. I hope not. Of course, I
cannot presume to have knowledge of
what other Senators may do; but I hope
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