THE SOVIET OIL CHALLENGE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65B00383R000200210008-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: June 29, 2000
• Sequence Number: 8
• Publication Date: January 1, 1963
• Content Type: OPEN

1963
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CONGRESSIONAL RECORD -- APPENDIX
(k) Furnishing any form of nonreligious
nonsectarian aid to students or parents of
students, as such, which is general in nature,
has no reference to the religion or nonreli-
gion of the students or of The parent and
conforms to the due process and equal"pro-
tection principles of the 5th and 14th
amendments to the Constitution of the
United States, such as the furnishing of text-
books, lunches, transportation, medical care
or other aids to pupil or parent.; as such, to
further, promote, and assist education,
whether in connection with secular or non-
secular schools.
(1) The granting of tax benefits, whether
In the form of deductions, special tax cred-
its or other devices to lessen the amount of
taxes due from any parent of any student of
school age and in attendance at school or
other educational institution, whether sec-
ular or nonsecular.
(m) Providing of financial or other aid to
secular or nonsecular institutions of learn-
ing, based on a nondiscriminatory pattern
in conformity with the due process and equal
protection requirements of the 5th and 14th
amendments to the Constitution of the
United States) for the purpose of aiding and
promoting education in customary and non-
religious subjects, and thereby promoting the
general welfare and security of the United
States of America.
Respectfully submitted,
,
RAYMOND. L. WISE.
SURFSIDE, FLA., April 20, 1g63.
Tribute to the Late President of Israel
Itzhak Ben Zyi
EXTENSION OF REMARKS
dr
HON. HERMAN TOLL
OF PE14115YLVA1IA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, May 8, 1963
Mr. TOLL. Mr. Speaker, I attended
the service of prayer in memory of Itzhak
Ben Zvi, President of Israel at the Adas
Israel Congregation on Thursday, May
2,1063. The eulogy was delivered by the
Honorable Abraham Harman, Ambassa-
dor, from Israel. The tribute was so
imptessive that I have included it for
the Members to read.
The eulogy follows:
TEXT OF EULOGY OF THE tATE PRESIDENT OF
ISRAEL, ITZHAK BEN ZVI, DELIVERED BY AM-
BASSADOR HARMON, MAY 2, 1963
In the ethics of the fathers of the Jewish
faith it is written: "Which is the right
course that a man should choose for himself?
That which he feels to be honorable to him-
self and which also brings him honor from
mankind." And it is further written: "Say
little and do much and receive all men with
a cheerful countenance."
Throughout his long and active life Itzhak
Ben Zvi did nothing that was not honorable
to himself. He said little but he did a great
deal and so in the fullness of his days when
he departed from us he commanded the
honor and love of our people. It is a sad
and mournful hour for us when we reflect
that he is no longer with us.
Throughout his life there was never a
time when he sought public office.. He was
always thrust forward by others to lead the
community because he lived the ideas in
which he believed and because these Ideas
were seen as being vital to the life of the
nation.
He was a humble man who never raised
himself above the community, nor did he ever
separate himself from the congregation.
He was born in southern Russia '78 years
ago in czarist times and in his youth he
experienced the violent physical persecution
of his_people. He brought into existence the
first organized attempt at Jewish self-de-
fense against the pogroms. Throughout his
life he lived by the principle that the will
and the capacity for self-defense against
aggression are an essential condition of hu-
man freedom and dignity.
He came to the land of Israel 60 years
ago and joined in the effort to pioneer in
the ashes of buried civilizations a new life
dedicated to the dignity of man and to the
freedom of his afflicted people.
He lived according to the principle of
the dignity of labor, of the overriding im-
portance of building the structure of Jewish
independence on the foundations of manual
work? particularly in agriculture. He lived
to sec the restoration of the fertility of
Galilee, and the graceless brown and gray of
the ravaged hills of Judea giving way to the
spreading green of sturdy young forests and
cultivated fields.
He lived according to the principle that
man does not live by bread alone. Learned
in the traditions of his people he brought
about: the conditions in which the Jewish
spirit _could once again flourish freely giving
new and pertinent expression in a modern
idiom,to'its eternal truths.
The gate of his house was always open.
Throngh his effort .he lived to see the gate
of country open to those in search of
home,and frepdorn, Ije helped to make the
policies designed to raise up the lowly and
the, underprivileged and to enlarge their ho-
rizons of opportunity. In his own personal
life he practised these policies. There was no
part Or our 'country where he was not known
and viers, his presence and concern did not
bring new hope.
finelly, he lived according to the rule of
Hiliel_:who said: "l3e of the disciples of Aaron,
loving peace and pursuing peace, loving thy
fellow creatures and drawing them nearer
to ooa's law."
Because he was such a man he was chosen
by the representatives of the people on three
occasions to fill the office of the Presidency.
He was a 'symbol of the unity of the people
and of the values by which tlfey seek to live.
In our hour of sorrow we give thanks that
such a man was given to us and that we
were privileged to live in his generation. His
life was a blessing to us and his memory
will be a blessing to us for all time to come.
EXTENSION OF REMARKS
OF
HON. KENNETH B. KEATING
OF NEW YORK
IN THE SENATE OF THE UNITED STATES
Wednesday, May 8, 1963
Mr. KEATING. Mr. President, for
some months now, the Senate Internal
Security Subcommittee has been con-
ducting an investigation into the Soviet
oil offensive and its effects on our na-
tional security. We have heard exten-
sive testimony on the Russian plot to
invade Testern markets with cutrate oil,
and to force smaller nations into eco-
nomic dependence upon Moscow.
The United States has continually
pressed for strict controls on this trade.
We have protested not only the purchase
of Russian oil by our allies, but the sale
_
A2853
of equipment and technological data to
the Soviets.
Recently, for example, the West Ger-
man Government agreed to curtail its
sale of 40-inch steel pipe to the Russians,
material which they need for the con-
struction of extensive pipelines to carry
their oil to China and to the sea.
The New York Times carried a small
item recently to the effect that Moscow
is now looking for plexiglas tubing to
transport the oil, since they are having
so much difficulty obtaining the pipe.
This bears watching, as does the entire
Cocom list of strategic materials lest we
inadvertently supply the Communist
world with the material to attack us
economically.
In this connection, a recent column by
C. L. Sulzberger, the distinguished New
York Times? writer, on the Soviet oil
problem is particularly illuminating. I
therefore ask unanimous consent that it
be printed in the Appendix of the
RECORD.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows :
[From the New York Times]
SOVIET OIL TRADE A CONFIDENCE TRICK
(By C. L. Sulzberger)
PArns.?The shrewdest Soviet confidence
trick now being played on the free world
comes in Khrushchev's skillfully conducted
oil trade. Moscow is using its black gold as
currency to buy Western capital goods and
machinery to develop its own industry.
The West becomes Russia's dumping
ground for surplus and, by cutting into the
petroleum markets of the Middle East and
Venezuela, Khrushchev hopes to foment dis-
content in those sensitive areas.
SIMPLE TECHNIQUES
The techniques are astoundingly simple.
Soviet commerce is wholly state controlled.
Prices can be artificially fixed according to
political requirement. Neftexport, the oil
trading trust, blandly dumps petroleum.
The average price charged customers in
NATO lands is less than half that charged
Moscow's East European satellites.
Russia offers cheap fuel to the West's com-
plex societies, allowing countries like Italy to
court popular favor by reducing gasoline
prices. In exchange Russia purchases ma-
chinery in short supply and steel pipe to con-
struct the massive pipelines Moscow hopes
to run from Uralian and Uzbekistani wells
right into the NATO region's heart.
Moscow hopes to make selected Western
countries increasingly dependent on trade
with the U.S.S.R., a trade always subject to _
sudden political shifts. And, when the pipe-
line network is completed, it will represent
a critically important infrastructure for cold
war commercial penetration, or for provision-
ing armies in case of hot war.
MUCH PRESSURE
For the moment, thanks to much pressure
inside NATO, the pace of the Soviet oil offen-
sive has been temporarily checked. Through
its trade committee, COCOM, NATO seeks to
persuade the Allies to restrict their imports
and ban sale of strategic materials, above
all heavy steel pipe. When West Germany
recently ceased such sales, Moscow immedi-
ately protested to Bonn.
The Russians had been working closely
with Enrico Mattel., head of Italy's National
Fuel Trust, and hoped to link their own
pipeline, now extended into Czechoslovakia,
with one Mattei was building northward
from the Mediterranean. However, Mattel:
died tra,gicaly last autumn and Italo-Soviet
cooperation seems to have diminished. Fur-
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A2854 CONGRESSIONAL RECORD ? APPENDIX May 8
*liennore. the Swiss worry about Italian
petroleum policy and are holding up pipeline
transit rights.
AS a reeult. Russian westward oil exports
advanced less rapIdlylast year than had been
feared. But, in retrospect, Moscow's success
is little short of amazing. Since 1959 Italy
has been the largest purchaser of Soviet oil
in the entire world, taking even more than
Communist China.
PHENOMENAL PACE
Soviet petroleum production has risen at
a phenomenal pace. It was only 44 million
tons ,..a year in 1950 and, it is estimated, will
be about 265 million tons in 1985. Annual
exports to the free world were only 1 minion
tone in 1950. It is reckoned they may reach
50 million tons in 1965.
West Gentian imports of Soviet oil have
risen 1,600 percent in 8 years. Today. 23
percent of Italy's oil, 11 percent of Oer-
=tears 38 percent of Greece's and 98 percent
of Iceland's comes from the 17.8.81%. All are
members of NATO.
=le loyalist European allies on this Issue
have been Rolland, Belgium, and Prance
whose recent Soviet trade treaty carefully
eschewed sales of big-inch pipe. Moscow
is now trying to boost petroleum exports to
England in exchange for large building con-
tracts in depressed British shipyards.
POOR Posmort
The importance of this oil offensive simply
cannot be maximized. The Vest is not In a
good position to fight any trade war against
a monolithic power determined to dump at
artificial prices. Furthermore, western icon-
Onliell are highly competitive. Moscow
coUnts on the old Marxist tenet that capital-
let rivalries will work against each other to
undermine the very social structure in which
they flourish.
NM' can the West afforcLto cut petroleum
prices below a certain minimum. Most of
its supply originates in Caribbean or Arab
areas with would be projected into tur-
n:LOU, were their revenues suddenly depressed.
? Oil Is one of NATO's essential problems,
not SO disruptive as the nuclear argument,
but 'ultimately of profound importance. It
proves the need for the partners to work to-
gether on economic as well as military plan-
ning.
Por as the alliance succeeds in deterring
war, it becomes inereaskigly faced with the
problems of peaceful coexistence. IChru-
intchei intewreta this Russian-made phrase
as meaning economic competition with polit-
ical overtones. Of this, oil is not only a
symbol but the principal weapon.
Peatagonese
ErniNSION OF REMARKS
or
HON. KATHARINE ST. GEORGE
Or saw TO=
IN THE ROUSE OF REPRESENTATIVES
Wednesday, May 8, 1963
Mrs. ST. GEORGE. Mr. Speaker, the
following item appeared in the Evening
News of Newburgh, N.Y., under the date-
of May 6. It is certainly fearful and
erful to see what some of our bit-
=rats can do to what was once the
English la,nguage. It is also, as the Eve-
ning News points out, good for a laugh
or two.
[From the Newburgh (N.Y.) Evening News,
'
May 5, 19831
?Armco/ass
If the Pentagon ever succeeds in merging
the services the way it meshes words, the
United States will have history's mightiest
military machine.
The Pentagon's latest creation is "deproj-
ectmanagezize.'"The Army general who out-
flanked the English language with this one
translates it this way: When a project is well
enough along to roll on without a manager
the Army deprojectraanagerizes it.
If Industry adopted the same technique, it
could tell a foreman: '73ernachineoperatorize
at this point." And voila. There would be
an employee laid off without even knowing
what verb hit him.
It seems a pity that busy military men have
to Pentagorilze?now there's one they
missed?over fresh creations for their cloud-
studded lexicon. Maybe they could use a
little help. Por instance, just offhand:
TPXpellize: To push out of a juicy plane
contract.
Deswooshelize: To push the button that
destroys an errant missile.
Defidelcastroize: Throw the bum out.
The possibilities are fascinating and limit-
less. Only it seems odd that the establish-
ment charged with seeing to It that a foreign
language never becomes the official tongue in
this country should be introducing one by
boring from within.
Alaska Ferry System
EXTENSION OF REMARKS
OP
HON. RALPH J. RIVERS
OF A LARK A
IN THE HOUSE OF REPRESENTATIVES
Wednesday, May 8, 1963
Mr. RIVERS of Alaska. Mr. Speaker,
last week I flew to Alaska and partici-
pated in the inaugural voyage of the
MV Malaspina through the fabled in-
side passage of southeastern Alaska.
Aboard as the quests of Alaska's Gov.
?William A. Egan,_ were the mayors and
chamber of commerce representatives
from all of the southeastern Alaska cities
along the route: Alaska's Senator,
ERNEST GRUENING, and State officials; as
well as several high government officials
from the Province of British Columbia
and other prominent Canadians, to-
gether with representatives of the press,
radio, TV; and leading travel agents
from all over our country.
The Malaspina, an oceangoing luxury
car ferry, is the first of three such vessels
for the creation of a marine, highway
link in the highway systems of Alaska
and British Columbia. This develop-
ment and its significance is ably por-
trayed by the following article from the
May 7 issue of the Wall Street Journal,
which I hereby make available for the
Information of my colleagues, as follows:
!From the Wall Street Journal. May 7, 19631
ALASKA Urns INT? Fumy Busultss, Limxe
TOWNS ON ISOLATED PAN HA NPLE?STATIL
LIN IC KIDS TO URIS Or1 , PLANS EXPANSION, BUT
CRITICS CALL VESSELS WHITE ELEPHANTS
(By Ray Schrick)
PRINCE liverar, British Columbia.?After
nearly a 1.000-mile bicycle ride from Seattle,
22-year-old Lewis Nelson recently, pedaled
aboard a ferryboat here en route to an Alaska
vacation.
Aboard the same comfortable, 500-passen-
ger vessel, Banker Prank T. Calvin and his
wife parked the new Chevrolet they had pur-
chased in Seattle for the trip home to Sitka,
in southeast Alaska.
Neither Mr. Nelson nor the CalifIns would
have been able to make this voyage before
February 1 when the State of Alaska inaugu-
rated its ferry line between Prince Rupert
and seven cities in southeast Alaska. They
are among se-teral thousand tourists and
Alaskans who already have taken advantage
of this year-round service to the 49th State's
relatively isolated panhandle. And officials
figure that traffic will climb sharply with
the onset of warm weather.
To accommodate this hoped-for influx, two
more vessels are scheduled to join the ferry
Malaspina on the line?one next week and
the other in June. It's planned that each
of the three ferries will make two round
trips a week between Prince Rupert and
Skagway, the line's Alaskan terminus, 490
miles to the north.
Their route follows the inland passage
that runs between the mountain-ringed
!lords of the Pacific coast and thousands of
islands that break the ocean's waves. The
ferry line is helping unify an elongated area,
about the size of Maine, where the lack of
connecting rail lines and highways has forced
35.000 residents to depend mainly on air-
planes for travel between cities.
MARINE HIGHWAY
The State-owned system was financed by a
515 million general obligation bond issue.
"We couldn't dream of a land highway in 50
years in southeast Alaska." says Gov. Wil-
liam A. Egan. "It would cost *400 million.
For *15 million we created a ferry marine
highway.'"
"Alaskans are using the ferry like a street-
car," declares Richard Downing, commis-
sioner of the State public works department.
A wending party of 40 took the ferry from
Juneau, the State capital, to Haines. A Pe-
tersburg lady heard spring dresses had ar-
rived in Juneau, -so she ferried 135 miles
north to look them oyer. Wrangell School
seniors took an excursion nearly 200 miles to
Juneau. And the National Guard uses the
vessels for troop movements.
Officials say the service will boost tourism,
too. Morris Ford. head of the Alaska Travel
Division, says his agency has been receiving
about 750 tourist queries a week related to
the ferry. Mr. Ford thinks that 1963's tourist
totals may top 1062 when the Seattle World's
Fair helped attract about 128,000 visitors to
Alaska.
The ferry service is featured on a package
trip offered by Alaska Airlines, Inc., of State,
"The ferries will help the airlines," says Rob-
ert Giersdorf, general sales manager of
Alaska Airlines. "Tourists taking the ferry
cruise can be induced to fly into the interior
of the State."
MISS ALASKA RIDES THE FERRY
While intended primarily for passengers
and their autos, the ferries also carry freight,
provided it is loaded in trailers or vans that
can be rolled on and off at terminals. "Miss
Alaska," a new brand of bread baked here in
Prince Rupert by Van's Bakery, Ltd., recently
appeared on grocery shelves in Ketchikan,
about 90 miles away. The 39-cent price of a
1%-pound loaf compares favorably with
other brands in Ketchikan. Iran's bakery
ferries "1,000 to 2,000 loaves a week" into
Itetchikan.
.Alaska Carriers Association, Inc., a truck-
ing group, recently published rates for freight
ferried into southeastern Alaska towns in
trailers. In some cases these rates are lower
than charges for shipping in freight by
steamer and barge. But a trucking industry
spokesman claims lower ferry tariffs on
trailers will be necessary to make the ferry
system generally competitive for freight.
Despite the advantages of the ferry service,
some Alaskans take a dim view of the opera-
tion because of its cost. "The boats should
be named after elephants," the Anchorage
Times suggested in an editorial. "One could
be 'White Elephant' and the other could be
'White Elephant, Two.' The names would
then conform to what the boats are going
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