SOVIET OIL MENACE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65B00383R000200210009-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: June 29, 2000
• Sequence Number: 9
• Content Type: OPEN

963
Approved CONelease O200 NAL7RECORDRDP R 83R000200210009-0 6099
JTICE OP' 1BAMLtvu vii ---
RECLAMATION PROJECTS ACT
"8. Readjustment of servicemen to
!e 91
SEC. 2. Section 4 of rule XXV of the
.adding Rules of the Senate is amended
v striking out "and Committee on Aero-
autical and Space Sciences" and inserting
- lieu thereof "Committee an Aeronautical
ad Space Sciences; and Committee on
aterans' Affairs."
SEC. 3. Section 6(a) of rule XVI of the
:anding Rules of the Senate (relating to
as designation of ex officio members of the
nmmittee on Appropriations) is amended
g adding at the end of the tabulation con-
Lined therein the following new item:
committee on Veterans' Affairs-For the
.eterans' Administration."
SEC. 4. The Committee on Veterans' Affairs
tall as promptly as feasible after its ap-
ointment and organization confer with the
-ommittee on Finance and the Committee
in Labor and Public Welfare for the purpose
1E determining what disposition should be
wade of proposed legislation, messages, peti-
tons, memorials, and other matters there-
afore referred to the Committee on Finance
aid the Committee on Labor and Public
Velfare during the Eighty-eighth Congress
which are within the jurisdiction of the
:ommittee on Veterans' Affairs.
'LYING OF THE AMERICAN FLAG
OVER THE REMAINS OF THE U.S.S.
"UTAH"-ADDITIONAL COSPON-
SORS OF BILL
Mr. MOSS. Mr. President, I ask
inanimous consent that the names of the
Senator from Nebraska [Mr. HRUSKA]
?,nd the Senator from North Dakota
_Mr. YOUNG] appear as cosponsors of the
measure (S. 703) to provide for the fly-
_ng of the American flag over the re-
mains of the U.S.S. Utah in honor of the
neoric men who were entombed in her
hull on December 7, 1941, at any future
printing.
The PRESIDING OFFICER. Without
objection, it is so ordered.
ESTABLISHMENT OF COMMISSION
ON REVISION OF THE ANTITRUST
LAWS OF THE UNITED STATES-
ADDITIONAL COSPONSOR OF BILL
Mr. JAVITS. Mr. President, I ask
-unanimous consent that the name of the
senior Senator from Indiana [Mr.
HARTKEI may be added as a, cosponsor of
S. 1255, for the establishment of a Com-
mission on Revision of the Antitrust
Laws of the United States which I intro-
duced on April 2, 1963.
The PRESIDING OFFICER. Without
objection, it is so ordered.
Mr. MOSS. Mr. President, for the
benefit of those Senators who might be
interested, I would like to announce that
the Irrigation and Reclamation Subcom-
mittee of the Interior and Insular Affairs
Committee will conduct hearings on S.
283, the Small Reclamation Projects Act
on April 23 and on the S. 793 and S.
784, bills to promote the conservation
of the Nation's wildlife resources on the
Pacific flyway in the Tule Lake and
Klamath Wildlife Refuges on April 24.
On May 7, it is my intention to hold
hearings on S. 26, the Dixie -project
located in the State of Utah.
All of these hearings will be held in
room 3110, New Senate Office Building,
commencing at 10 a.m.
As the Soviet Union has continued to
broaden its industrial capabilities, inter-
national trade has become one of the
most subtle, yet effective and dangerous
instruments of Red aggression. As mem-
bers of this Senate are aware, one of
the most serious examples of the Krem-
lin's use of international trade in fur-
thering Red influence is the invasion of
free world petroleum markets by Russia.
This is indeed a serious feature of the
continuing struggle against communism,
because the Kremlin understands full
well that oil is a vital and indispensable
requirement of every nation. Having de-
veloped a large oil producing capacity,
the Soviet Union is literally and figura-
tively flooding selective and sensitive free
world markets. Not only does this en-
danger a healthy economy in these na-
tions, but it gives Communist trade rep-
resentatives an entree into these areas
which otherwise would not be accessible,
were it not for the below-the-market
prices at which Soviet oil is being offered.
If we are to meet and overcome this
Red oil offensive, we must have a full
understanding of its meaning in terms of
Soviet capability, intentions, and limita-
tions with respect to oil production and
distribution.
What is probably the most comprehen-
sive, authoritative, and understandable
analysis of the Russian oil situation, both
in the Soviet Union, and as an instru-
ment of international trade, appeared
in the Washington Sunday Star of Sun-
day, March 31, 1963. The article was
an extensive reprint of excerpts from a
recent speech delivered in Fort Worth,
Tex., by Mr. George F. Getty of Los
Angeles, Calif., president of the Tide-
water Oil Co.
This is a particularly valuable contri-
bution to our understanding of Com-
munist oil export for two reasons. First,
Mr. Getty Is recognized as one of the
most progressive and capable figures in
the oil industry today. Secondly, he
bases his report upon personal observa-
tions made by him in the course of an
extended tour of important oil produc-
ing areas in the Soviet Union. Thus
his first-hand observations, coupled with
his vast experience in the oil industry,
serve to make this speech both authori-
tative and informative.
I believe that after reading this
speech, reprinted from the Washington
Star, Members of this Senate will share
my opinion that this is a most valuable
contribution to our understanding of
Russian techniques of expansion through
the use of trade. It underlines the
seriousness of the problem confronting
us, and the necessity of keeping our Na-
tion's petroleum industry technological-
ly advanced and economically sound.
I ask unanimous consent to have the
speech of Mr. Getty printed in the
RECORD.
There being no objection, the speech
was ordered to be printed in the RECORD,
as follows:
U.S. EXPERT SEES RISING SOVIET OIL OFFENSIVE
ADDRESSES, EDITORIALS, ARTI-
CLES, ETC., PRINTED IN THE
APPENDIX
On request, and by unanimous con-
sent, addresses, editorials, articles, etc.,
were ordered to be printed in the Ap-
pendix, as follows:
By Mr. HUMPHREY:
Addresses delivered by Miss Loretta Sep-
panen and Maurice A. Johnson, at St. Paul,
Minn., at the State 4-H Radio Speaking
Contest, on March 4 and 5, 1963.
By Mr. BEALL
Statement and letter of Brenda C. Sat-
terfield, of Baltimore, Md., relating to her
candidacy for the Baltimore City Council,
Editorial entitled "Belittling Approach,"
published in the Baltimore (Md.) Sun on
April 10, 1963.
By Mr. HAYDEN:
Editorial entitled "Liberty Amendment's
Wishful Thinking," regarding the effect of
the abolition of the income tax, and pub-
lished in the Arizona Daily Star of Tuesday,
April 2,196-3.
By Mr. ANDERSON:
Editorial entitled "America's Future," pub-
lished in the Washington (D.C.) Post on
April 8, 1963.
By Mr. DIRKSEN:
Article entitled "Whole Town Pays Re-
spects at Negro Youth's Funeral," published
in the Baltimore Sun of March 28, 1963,
being a tribute to Ronald Victor Costly, of
Elizabeth, W. Va., distinguished Negro
athlete and student.
Resolution by Daughters of the American
Revolution, District of Columbia Society,
urging the establishment of September 17
of each year as a legal holiday, to be known
as Constitution Day.
By Mr. BURDICK:
Article entitled "Tax Credit To Offset Gold
North Dakota," written by Paul F. Munger
and James D. Mathisen.
By Mr. McCARTHY:
Minnesota Legislature resolution on agri-
cultural commodities.
Article entitled "Tax Credit to Offset Gold
Drain," written by Eliot Janeway, and pub-
lished in the Chicago Tribune of March 11,
1963.
Article entitled "It Takes More Than That
To Kill a Bull Mooser," by Hjalmar Peterson,
published in the Askov, American on October
ADDITIONAL COSPONSORS OF BILLS
Under authority of the orders of the
Senate, as indicated below, the follow-
ing names have been added as additional
cosponsors for the following bills:
Authority of April 4, 1963:
S. 1270. A bill to amend the Packers and
Stockyards Act, 1921, to strengthen independ-
ent competition by providing for competitive
enterprise in the retail sales of meat, meat
food products, livestock products, and other
food items: Mr. LONG of Missouri, Mr. Mc-
GEE, and Mr. YARBOROUGH.
Authority of April 9, 1963:
S. 1283. A bill to enforce constitutional
rights, and for other purposes: Mr. BAYH,
Mr. FONG, Mr. Moss, Mr. MussIE, and Mr.
PROxMIRE.
C
SOVIET O4!L MENACE
weapons of Communist conquest are
many and diverse. The Kremlin pushes
its expansion vigorously and with every
means at its command.
(Enrroa's NoTE.-George F. Getty II, presi-
dent of the Tidewater Oil Co., recently re-
turned from an inspection tour of the Soviet
oil industry. Here are excerpts from a report
he made to the American Petroleum Insti-
tute meeting in Fort Worth, Tex., earlier this
month.)
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 A160OOved For Release 2001/07/'6N0Rffi W:Wnfi002 PNI'TE April 11
We meet today as the oil industry is The Soviet production objective is maxi-
threatened on many fronts. Such a con- mum recovery of reserves in the shortest NOT VERY IX t oil n
frontation is not unusual for us, but today's period of time. They have a use for all the After we had seen Soviet oil operations we
threats are possibly the most ominous to oil and gas that they can get their hands put our heads together to compare notes.
date In our industry's history. OIL They want to get the oil out and use we were not particularly Impressed. But
Most of you are concerned with ex- it, not to mendous potential. had to cannot their tr t
mainly produce o over a long period of edus You cannot deny their
proration and production work. Your work time; the latter would be better oil field
is challenging and difficult. It would be engineering practice, but poor overall eco- great oil and gas fields, their vast reserves.
doubly challenging-In fact, confounding- gamic and political practice for the Soviets. You can't deny their successful, almost ex-
if you had to work amidst violent revolu- About 10 percent of Soviet wells are wild- plosive development of oil and gas resources
Yet this was the case recently for our oil- Our trip had many surprises. For exam- At this point it might be well to see what
men In Iraq and Yemen; while those work- pie, counter to our thinking that Baku was kind of conclusions can be drawn from this
lag in Venezuela are in the middle of com- the great source of Soviet oil, this region sketch of what we saw of the Soviet oil
munlsm's No. 1 target in Latin America. produces only 22 percent of the Soviet's Industry.
Added to the oil operators' troubles these total. After World War II, the Soviets be- I am convinced that the Soviets have used
days is the cut-throat competition of the Ban exploring other regions. They were and will continue to use their abundant oil
largest oil organization in the world-the handed an energy gift on a silver platter resources to expedite their own industrial
government-controlled Soviet oil Industry. when they discovered the Volga-Urals fields, expansion and to extend their political in-
We think our domestic oil business is com- strategically located between Moscow and fluence, undermine freedom, and spread com-
petitive. Well, many of you may be familiar their tremendous, newly industrialized area munism in the free world.
with an example of really tough competition. east of the Urals. The Soviet's couldn't have The Soviets' crude oil production allowed
In a recent "price war," the Russians forced gotten a more economic supply of oil if they them In 1953 to export 35,000 barrels a day
free world companies to lower prices by of- had designed the situation In one of their to the free world. In 1961, this jumped to a
faring India Soviet oil at 10 to 20 be- own 7-year plans.
law prevailing world prices-whlewere percent al- Under the present 7-year plan, they are the free world of demand. They flatly told
law prevailing orld red. constructing huge petroleum pipelines. us they intend to up that 3 percent to 14
2ew at ep AND THE WAR These amounted to 19,700 miles of oil line percent, and you know they aren't going to
and 18.300 miles of gas line In 1981; about spend the rest of their lives doing it. Their
They were shrewd. They dealt the free twice their trunk pipeline mileage In 1958. present 7-year plan calls for exports of 1
world a blow merely by cutting prices on a This doesn't sound like much compared with million barrels a day to the free world in
bid; they didn't have to use up even one what we're doing here In the United States. 1965. To do this, they're going to use their
barrel of oil to win a trade war victory. To On the other hand, when you consider that system of moving into oil markets, upsetting
keep the business. Western companies were the average diameter of these pipes is 40 them, withdrawing from them and moving
forced to make the sale at Soviet prices. Inches, their carrying capacity is tre- into others.
Isn't that called winning the battle but los- mendous. These pipelines carry oil to the We face a massive, aggressive competitor
ing the war? satellite countries, the Black Sea, and may who can cut prices at will and barter, accept
The Soviet oil industry is unique. From eventually carry it to the Sea of Japan-all soft currencies, and do business in ways that
the seismograph marketing it i Places where their axport potential is would stymie or ruin a Western oil company.
operated-perhaps ine y, greatest. In 1981, this cornpetiton cost traditional ex-and often dangeroualy-with only one goal In mind, The Soviet Union also is expanding its porting countries, particularly Venezuela
defeating the alms and ideals of everyone merchant fleet. Soviet officials stated that and certain Middle Eastern States, $486 mil-
In this room. luckily they don't have to build tankers be- lion in lost revenue. And the competition
As you mayknow, I was a member of the cause the free world bas been so nice and willget tougher.
U.S. petroleum delegation that spent the built so many extra ones which are avail-
month getting a first-hand. on-the-aunt able at low charter rates. But we ?athered WHAT THE SOVIET NEEDS
view or certain Soviet oil operations. Al-
though there is a great temptation when
One comes back from a foreign country to
be an expert, even a Russian would have
difficulty being an expert in the U.S.S.R.
The Soviet Union is a difficult, complex
country.
WHAT U.S. OILMEN SAW
Nevertheless, our tour of Russia gave us
a reasonable opportunity to observe the So-
viet oil industry at work. Let me sketch
for you what our visiting oilmen saw in the
Soviet Union.
We like to pride ourselves on our accom-
plishments in oil development. But the
agency running the Soviet exploration and
production is a hard-working crew that cut
our time in half. In 15 years, from 1946
to 1962, they increased oil production frorg
Only 432,000 barrels a-day to 3.3 million bar-
rels. That's quite a jump. Some time ago,
we made the same increase in our own pro-
duction, but it took us 31 years, from 1907
to 1939.
Even though the Soviets had all the tech-
nical advances since 1907 working in their
favor, their record is an obvious accomplish-
ment. With 3.3 million barrels, in world
production they are second only to our own
7 million barrels daily. For the end of their
present 7-year plan, in 1965, they have tar-
geted production at 4.8 million barrels daily.
NO LABOR PROBLEMS FOR THEM
Oil field development is controlled carefully
under the 7-year plan. The nation itself
owns the land and the minerals, of course.
There are no leases, no royalties. There are
no labor problems-despite the fact that 25
percent of the oil industry workers are
Women. The government just goes ahead
and does as it pleases. Labor, for example,
is freely transferred from one region to an-
other to balance quality and quantity.
ports that large tankers, 25,000-to--j5,060 exploration, Production, and transportation
tons, are being constructed on the Black equipment. To an important extent, the
Sea. We also know they have contracted for success of the Soviet oil threat depends on
large ships In Japan and Italy. how successful they are in obtaining line
This tanker and pipeline expansion cer- pipe, drilling rigs, pumps, oil country tubular
tainly adds to the free world's increasing goods, and so on. They also need tankers
problems with Soviet oil exports, as you have and complete refinery units, petrochemical
seen pointed up by the newspaper accounts plants, and electronic gear in order to ful-
of a possible Soviet deal with England for fill their 7-year goal.
ships. Let's not kid ourselves. They are going to
Refinery capacity has been a bottleneck In trade their oil for this equipment and these
their plans. Refinery runs in 1958 totaled facilities, as well as for raw materials, food,
a shade over 2.8 million barrels a day. These chemicals, and other commodities from
increased to 4.25 million barrels daily in 1962 manufacturers and producers in the free
and are scheduled to reach 5 million in 1985. world. One can't get around the fact that
With this capacity, it is possible that after this trade with the Communists has been,
satisfying home requirements, they will have and will be, freely entered into by many na-
about 440,000 barrels of refined products tions because, as in all enduring commercial
daily for free world export. relationships, both parties expect to benefit.
THE MODELS ARE IMPRESSIVE, BUT- Over a billion dollars' worth of plant, equip-
We visited the Novo Ufa refinery. It em- ment, and metal goods were sold to the
ploys about 5,000 people, 600 of these are Communist bloc by the free world in 1960.
engineers and technicians. It's basically a Take Italy, for example, the Soviets bar-
large topping plant with limited cracking tered 100,000 barrels of crude oil a day over
and reforming facilities. But don't forget, -a 6-year period-about 20 percent of the
the Soviets primarily require fuel oil and Italian oil requirements-in return for ape-
middle distillates, not high octane gasoline. ciflc quantities of much needed 40-inch i e
They see no point in putting in a lot of p p .
octane and gasoline building equipment. pumps, synthetic fibers and other essentials.
Characteristically, Soviet Industry In most Italy picks up the oil at Black Sea ports
areas lags substantially behind the United at a price equivalent to $1 a barrel. At that
States, At the permanent exhibition of So- price, it's hardly worth taking oil out of the
viet achievement in Moscow, where they have ground in Texas.
a Hall of Geology, a Hall of Oil and Gas, and it could be said that all of your work in
a Hall of Petroleum Science, we saw models finding reserves, to meet future production
of wonderful drilling rigs, bits, refineries, requirements will be a waste of time if the
and petro-chemical plants. But the actual
equipment we saw in the field was Soviets are allowed to carry out this threat
to get excited about. nothing and to undermine the security of the free
get
We trekked through four oilfields, toured world. However, while I am completely con-
four of their largest refineries, visited the vinced of the Soviet threat, I am equally con-
four beat research Institutes, but we saw vinced that the free world's oil companies
little evidence of this wonderful equipment. can be counted on to resist to their utmost
It just wasn't in operation where we were. In any struggle for the world's oil markets.
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SOVIET EXPORTS HAVE LEVELED OFF
!,lready there is evidence supporting this
aviction. After increasing at an annual
.e of about 40 percent for the past 3 years,
viet oil exports have leveled off. Remem-
=, oil export potential does not necessarily
an sales, even for as aggressive a com-
zitor as the Soviets.
But let's not drop our guard. The leveling
might just be due to a lack of present
Dacity in Soviet pipelines and tankers.
My conviction that Western oil companies
a resist Soviet - competition is `not based
blind faith. It is based on the expecta-
n that certain things must happen.
['o meet Soviet competition, American oil
mpanies must at least remain as strong and
althy as they are today. They must effec-
sly supply a steadily growing demand in
a United States and in the free world.
ey must continue to operate a vast dis-
bution and marketing network which
grantees delivery of petroleum products
sere and when they are needed.
The Soviets don't yet have such a network
if can't guarantee delivery. Most impor-
-it, American oil companies must continue
develop present reserves and build future
-ength by discovering new reserves.
HE FIRST DECADE: CHANGE AND
CHALLENGE
Mr. WILLIAMS of New Jersey. Mr.
-esident, the Department of Health,
lucation, and Welfare is 10 years old
is month. In its first decade the De-
.rtment has faced new problems that
=re foreseen only by a very few far-
;hted persons during the 30-year strug-
e to estabish such a Department. Our
pool population, for example, has
'creased from 37 million in 1952 to 52
allion in 1962, and the. number of per-
ils 65 years or over has increased from
- million to 17 million in the same
-cade. Great numbers of our citizens
-e moving from farm to city; our eco-
:)my has grown from $365 billion in 1953
$544 billion in-1962.
These changes have brought social and
ronomic problems of vital concern to
EW, and the Department has become
-ore and more concerned about the 'im-
act of such change upon the citizens of
ar Nation. The present Secretary,
rlthony Celebrezze, has said that it will
the responsibility of the Department
t the next decade, as it was during the
rst 10 years, to help make available to
l - citizens full opportunities for the
svelopment of their talents and abilities.
The Secretary's words were printed in
n introduction to the April 1963 edition
the HEW Indicators. The same in-
-oduction also summarizes the history
aid importance of the Department. I
sk unanimous consent to have it printed
a the CONGRESSIONAL RECORD.
There being no objection, the intro-
nlction was ordered to be printed in the
-ECORD, as follows: ' -
THE FIRST DECADE: CHANGE AND CHALLENGE
This year marks the 10th anniversary of
is Department of Health, Education, and
Welfare-the newest Federal agency to be
=presented in the President's Cabinet. -How-
ver, the responsibilities it bears fort ewell
.eing of the American people date back to
ae early years of our Republic.
They began in 1785, when the Congress of
he Confederation made. grants of public
ands to the States for public schools.
They were added to in 1798, when the Fifth
Congress established the Marine Hospital
Service-forerunner of today's Public Health
Service.
In 1867 the Federal Office of Education was
established; in 1907 the Food and Drug Ad-
ministration began as the Bureau of Chem-
istry in the Department of Agriculture; in
1912 the Children's Bureau was established;
in 1920 the predecessor of the present Voca-
tional Rehabilitation Administration began
its important work; and in 1935 the Social
Security Board was organized.
All these agencies were brought together in
1939 under the framework of the Federal
Security Agency, and 14 years later the
Agency was given Cabinet status when it be-
came the Department of Health, Education,
and Welfare.
In this - chronology of the Department's
growth, we can trace the Nation's growing
recognition of the - need for Federal partici-
pation in promoting the general welfare of
the American people. Through periods of
prosperity and depression, through civil
strife and world conflict, the Federal Gov-
ernment has shared in the national concern
for the well-being of every citizen.
We are now in an era of change and chal-
lenge which in many ways eclipses those
critical periods of our past.
We are in the midst of a technological
revolution which is changing the pattern of
life and work of the American people.
As our national strength and prosperity
have increased, we have grown more and
more aware of pressing problems within our
society which cry out for -solution-prob-
lems of grJt magnitude and complexity that
are beyond the resources of the individual
and his local and State governments.
Some of these problems have long been
with us and require solution even more ur-
gently today; some are the outgrowth of the
technological forces which are altering our
society; others have arisen as a natural con-
sequence of the higher human expectations
of larger numbers of citizens.
In education, for example, we have a short-
age of facilities and well-trained teachers at
the same time that we face increasing de-
mands for more schooling for more people.
We have millions of young people and mil-
lions of adults whose lack of adequate edu-
cation prevents them from enjoying a full
measure of the Nation's prosperity and from
making their full contribution to society. _
Our aged men and women, those in the
lowest income group and most subject to ill-
ness, have tragically inadequate insurance
against the high cost of hospital care and
related health services.
Other problems in our society represent
an appalling waste of human lives and hu-
man potential: mental illness and mental re-
tardation, drug addiction, accidents, juvenile
delinquency.
Increasingly we are concerned with prob-
lems of air and water pollution, and the pro-
liferation of chemicals in the production and
processing of foods.
In the following pages are summarized the
progress this Department has made during
the past decade In carrying out its responsi-
bilities for the well-being of the American
people.
As we review the successes of the Depart-
ment's first 10 years, let us look forward to
a second decade of helping to make avail-
able to all citizens full opportunities for
the development of their talents and abili-
ties. These are our most precious re-
sources-our hope for the future.
ANTHONY J. CELEBREZZE,
Secretary of Health, Education,
and Welfare.
6101
THE BALANCE OF PAYMENTS-PAY-
MENT IN GOLD FOR U.S. ASSETS
ABROAD
Mr. MORSE. Mr. President, on Feb-
ruary'14, I spoke in the Senate about
reports in the press and on the radio
that France might organize with other
countries of Western Europe to demand
payment in gold for the U.S. assets they
hold.
I have already placed in the RECORD
the reply I received from Treasury Sec-
retary Dillon to my inquiry about the
truth of these allegations. That mate-
rial, as it relates to France, appears in
the CONGRESSIONAL RECORD for Febru-
ary 28.
Today I wish to insert material on this
subject sent to me by the Embassy of
the Federal Republic of Germany, and I
ask unanimous consent to have it printed
at this point.
There being no objection, the material
was ordered to be printed in the RECORD,
as follows:
Facts regarding the position of the Federal
Republic of Germany with respect to the
United States balance of payment
[Millions of dollars]
Imports ----------------
Exports----------------
U.S.surplus ------
German trade with the
United States
1,422.5
886.6
1,515.8
870. 1
1,758.3
965.7
NOTE.-The above mentioned figures include Ger-
man purchases of United States military equipments.
(2) The German Government agreed in
buying U.S. military equipment for approxi-
mately $700 millions annually. This amount
matches the annual military expenditures -
of the United States in Germany. The Fed-
eral Republic of Germany makes anticipated
payments for the supply of military equip-
ments generating additional receipts in the
framework of the U.S. balance of payments.
(3) In 1961 the Federal Republic of Ger-
many made a debt prepayment in the
amount of $587 million, larger than any
other prepayment made by any other coun-
try.
(4) The "Deutsche Bundesbank" (the in-
dependent central bank in Germany) has
concluded "swap" agreements in the amount
of $150 million with the U.S. monetary au-
thorities in 1962.
(5) The Bundesbank has credited to the
Treasury deutsche marks in the amount of
$200 million against medium-term bonds in
January and February 1963.
(6) During 1962 the Bundesbank has
bought practically no gold from the U.S.
monetary authorities although the German
short-term claims climbed near to the $3
billion mark.
(7) Mr. Blessing, the president of the
Bundesbank, and other top ranking German
bankers have declared repeatedly and pub-
licly their confidence in the soundness of
the U.S. currency thus contributing con-
siderably to the stability of the dollar in the
German and the international finance mar-
ket.
Mr. MORSE. Mr. President, while I
am somewhat reassured by the coopera-
tion Germany has extended us so far on
this financial problem, I do not view with
any assurance at all the continuation
of such large obligations in the hands of
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b1 N A
both Germany and France. As this data
indicates, West Germany has short-term
U.S. claims close to $3 billion in value.
France has claims on us of at least $ 1
billion.
The United States must make every
effort to reduce these obligations in
Western Europe just as fast as possible.
A 1962 report of the Joint Economic
Committee on this subject made this ob-
servation :
The tendency for countries like Germany,
France, and Italy to continue accumulating
gold and dollars rather than to spend more
of their rising export income on imports, on
,capital investment in other countries, and
on foreign aid, has been responsible for a
large part of the free world's payments Im-
balance.
The report I have quoted from is en-
titled, "U.S. Payments Policies Consist-
ent with Domestic Objectives of Maxi-
mum Employment and Growth," and is
a report of the subcommittee on inter-
national exchange and payments.
I shall have more to say on this sub-
ject at a future date, but in the mean-
time, I welcome the statement from West
Germany and I hope we can continue
to count on her help in easing what has
become for us a serious financial prob-
lem.
EASTER, 1963
Mr. IDEATING. Mr. President, wi
the advent of the joyous season of Easter,
it is fitting that we pause in reverent
contemplation of the meaning to the
Christian world of the momentous event
which renders this commemoration so
sacred, so historic, so Imperishable.
Easter is at once a feast of solemnity and
joy, a-call to the silence of adoration
and to the ecstasy of rapture, as the full
significance of the Resurrection touches
our hearts. As His death was the ulti-
mate-expression of Christ's love for man,
so was His Resurrection an affirmation
of the eternal victory of the spirit over
the flesh. This sublime event symbolizes
as well the high destiny reserved to God-
created man, and reminds us anew of
the common brotherhood we share in
this mortal world, and of the deep and
hallowed obligations such a brotherhood
imposes. May the sacred and joyous
feast of Easter find voice in our lives
as well as in our thoughts, and make
us more worthy of the love that has
made this moment immortal in the his-
tory of Christian man.
PAN AMERICAN DAY, 1963
Mr. WILLIAMS of New Jersey. Mr.
President, April 14 marks an anniver-
sary of unusual significance to Ameri-
cans. It is the 73d anniversary of the
inter-American system, and it is called
Pan American Day. This system of free
and sovereign nations, now formally em-
bodied in the Organization of American
States, is the oldest international or-
ganizatigg~n of its type in the modem
world. We Americans of the north are
proud of this Organization. We are
? proud of its concepts of equality, peace-
ful settlement of disputes, and coopera-
tion for mutual social, economic, and
cultural betterment for the peoples of
the Western Hemisphere,
It was the "George Washington" of
South America, Simon Bolivar, who first
envisaged and tried to organize the young
nations of the Western Hemisphere,
newly independent of European colonial-
ism. These earliest efforts failed to crys-
tallize, and it was not until 1890, at the
initiative of the Secretary of State,
James Blaine, that the First Internation-
al Conference of American States was
held here in Washington, and the pan-
American idea took concrete form.
Since that time, this oldest of inter-
national organizations has come a long
way. One of the fundamental precepts
of the pan-American idea was that here,
In the New World, we Americans could
start afresh on a system of international
relations which would differ from the
older European habits of wars and en-
tanglements. In these limited aims we
have been largely successful. But it is
the more recent, positive aims that we
Americans have set for ourselves that
challenge our concept of peaceful co-
operation for progress.
The Alliance for Progress embodies
these positive aims of the Organization
of American States. We must not weary
of the burdens or the complexities of the
noble tasks which we have set for our-
selves, but on this 73d Pan American Day
must dedicate ourselves anew to the ac-
complishment of hemispheric solidarity,
peaceful progress, and justice ai,,d equal-
ity for all Americans.
THE YOUTH CORPS BILL
Mr. MORSE. Mr. President, I ask
unanimous consent to have printed in
the Rxeosn letters I have received in sup-
port of the Youth Corps bill, passed yes-
terday, from three prominent citizens of
my State of Oregon.
There being no objection, the letters
were ordered to be printed in the REcoan,
as follows:
Cmcurr COURT or
THE STATE OF OREGON,
Salem, Oreg., April 5, 1963.
Hon. WAYNx Moess,
U.S. Senator,
Washington, D.C.
DzAa SENATOR MoasE: I urge favorable ac-
tion by this session of Congress on Senate
bill 1 and House bill 1800. The immediate
development of youth work camps and em-
ployment programs are a must in an effec-
tive attack on the serious and the Increasing
problem of delinquency that faces America
today.
This proposed legislation is necessary to
help youth with problems-problems that
are daily becoming more imminent because
of the lack of employment for youth and
because to many youngsters, who are school
dropouts, find themselves walking the streets
in idleness and no foreseeable purpose In life.
We must act now to help those unfortu-
nate products of our rapidly changing society
accelerated by automation and other aspects
of this technological age.
Yours very truly,
Josatm B. FELTON,
Circuit Judge.
PAuLsti OF ST. MAas
TH a EVANGELIST,
Hood River, Oreg., April 3, 1983.
Non. WAYNE Moass,
Senate Office Building,
Washington, D.C.
DEAR SsxAToa Moasz: Grace be unto you
and peace from God our Father and from the
Iwrd Jesus Christ;
, April 11
I would add my voice to the several with
whom I've had the opportunity to discuss
the matter on urging your support of the
Youth Employment Act of 1963 (S. 1 and
H.R. 1890).
Even in such communities as Hood River,
which certainly has a present low youth
problem, the situation facing the young men
and women who can neither go on to school
or find adequate employment; or who are
for that matter, potential delinquency can-
didates, we recognize a definite need for
adequate program. We have pioneered the
summer work camp, and the benefits of this
bill would certainly extend the effectiveness
of such programs.
Perhaps the opponents to this measure
(and I understand it is being opposed main-
ly on cost) should see that a few millions
of dollars spent in saving youth is better
spent than $1 building weapons which could
destroy them.
Thank you.
Sincerely,
OMCx OF COUNTY COURT
OF POLK COUNTY,
Dallas, Oregon, April 3, 1963.
Sen. WAYNE Moasa,
U.S. Senate,
Washington, D.C.
Da=.a WAYNE: I am writing to you in re-
gard to Senate bill 1 that I believe is in
committee at this time, and would like to
express my Interest in this type legislation.
Although I do not approve of all provisions
of the bill, I think it is a splendid start in
the right direction. I believe the original
CCC we worked under during the depres-
sion would come as near accomplishing the
desired results with our many unemployed
young men. I also believe the time is at
hand when we must realize the seriousness
of the unemployed youth in our country
and, under our present system of automa-
tion, it Is Impossible for all of them to find
jobs. The last report I read in the Juvenile
Journal, we have seven hundred thousand
youths drop out of high school every year
who are ill prepared to meet the challenge
of today's living standards. Serving in the
capacity of Juvenile Judge, many young p--o-
ple come before me through out the year re-
questing a chance for employment and of
course, we have nothing to offer them. I
am sure If we had something of the YCO
program it would give these young people
a chance to keep busy and have a tendency
to lead them away from a life of delinquecy,
giving them a good foundation for citizens
of our country.
If there is anything I can do on the home
front to help promote this type legislation,
feel free to call upon me. At your conven-
ience, please keep me informed as to the
status of the bill at this time.
Sincerely yours,
C. M. BARNHART.
PA.-I intended to include this in my let-
ter too: Many of us In the county are great-
ly disappointed with the accelerated work
program that was inaugurated by Congress.
I am sure the people who sponsored this bill
had no intention that the Government agen-
cies, such as the Agriculture and Interior
Departments, would take advantage of the
moneys that were appropriated. They al-
ready come under the national budget for
large sums and I feel this money should
have been, and was intended to be. for local
programs and be distributed to take care of
the unemployed situation throughout the_.
country. As I understand the bill, it calls
for $900 million, but only $440 million was
appropriated. I hope Congress sees fit to
appropriate the other $500 million and tie
it up so that it will be assured it will go
to small local projects in communities
throughout the United Suttee.
Approved For Release 2001/07/26: CIA-RDP65B00383R000200210009-0