Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 16, 2016
Document Release Date: 
January 24, 2005
Sequence Number: 
Case Number: 
Publication Date: 
March 11, 1964
Content Type: 
PDF icon CIA-RDP66B00403R000200130007-7.pdf713.75 KB
Approved For Rel a 2005/02/10: CIA- RDP6g 0 4Q3R0Dg~p0130007-7 1964 CONGRESSIONAL RECORD -APP NI7IX A121 ante for Progress. I am confident my colleagues will find of considerable in- terest his report on the Current Status of Labor Programs in Latin America, issued as of February 28; 1964, which I include herewith: CURRENT STATUS OF LABOR PROGRAMS IN LATIN AMERICA, FEBRUARY 28, 1964 Remarkable progress is now being made on labor projects within the Alliance for Progress. The - construction of workers' housing through trade union cooperatives is spurred on by a pledge of $56,250,000 from AFL-CIO affiliates' retirement and welfare funds, supported by 100 percent AID housing investment guarantees. From these funds, a $10 million AFL-CIO loan, added to $4 million supplied by the Mexican workers, enabled the Graphic Arts Workers of Mexico to inaugurate the building of 3,104 housing units for their members. Another AFL- CIO loan in the amount of $3 million, to- gether with $6 million to be supplied by AID, will be used to finance the establish- ment of a workers' bank in Peru; the Inter- American Development Bank will undertake the financing of the initial administrative costs to the extent of $100,000 for a 2-year period. These are among the most dramatic programs now in process under the aegis of the American Institute- for Free Labor Development Social Projects Department. The IDB has earmarked another $15.million for union housing projects in Columbia, Bo- livia, El Salvador, Honduras, and the Do- minican Republic through the American Institute. The American Institute for Free Labor Development has been in operation for 20 months, under the sponsorship of the AFL-CIO. The institute works closely with the free and democratic trade unions of Latin America and is dedicated to im- proving the lot of the rank and file workers and the environment in which they live. It has also been able to secure the active co- operation of governments and of business. The Institute at the present time has two principal activities. The first is education and the results have been impressive: 3,668 labor leaders have received training under a hemisphere-wide system which includes edu- cation centers in 12 Latin American coun- tries-Argentina, Bolivia, Brazil, Chile, Co- lombia, Dominican Republic, Ecuador, Hon- duras (Regional Center for. Central America and Panama), Jamaica (Regional Center for the English-speaking West Indies), Peru, Uruguay, and Venezuela; 206 leaders have been trained at the center in Washington in a course which includes 3 months of inten- sive study followed by 9 months of paid internship in the respective home country working on specific union projects. The second activity of the American Insti- tue is in assisting trade unions in Latin America to develop feasible projects for pres- entation to local, private international, or U.S. Government sources of financing. The results of the activities of the Social Proj- ects Department are described above. The Latin American trade union requests for as- sistance on projects which would engender a high ratio of "self-help" effort now num- ber 108, covering housing, medical, producer and other forms of cooperative development, as well as vocational training, workers' banks and community type projects. The requests for housing alone would amount to loans of $330 million, if fully implemented. Labor is becoming an integral part of the Alliance for Progress machinery; the cre- ation of the Special Committee of the Inter- American Economic and Social Council on Labor Affairs will accelerate this effort through the decisions of the second meeting of the IA-ECOSOC in Sao Paulo, November 1963, following the recommendations of the Inter-American Conference of Ministers of Labor held in Bogota in May 1963 (the first such meeting In Latin America). The Com- mittee on Labor Affairs will carry but the' principles of the Charter of Punta del Este and the recommendations of the Labor Min- isters (Declaration of Cundinamarca), "with special attention to the suggestions and measures concerning the role of ministers of labor and democratic trade unions in na- tional programs for economic and social de- velopment." (See the report on the first meeting of the committee held in Lima, Peru, Jan. 31- Feb. 6, 1964.) It is clearly the U.S. purpose that the workers of Latin America have the opportu- nity to share increasingly in the benefits of the Alliance programs through their creative participation in the development process in order to accelerate the necessary change and reform. There exists within the U.S. Gov- ernment today an almost unprecedented de- gree of unanimity and collaboration for the purpose of achieving this objective. To se- cure this cooperation a bold departure was required. Early in the days of President Kennedy's administration, a unique organi- zational structure was devised and was op- erating successfully within a very short time, harnessing governmental and private initia- tives, primarily of organized labor in this country, and eliminating problems of juris- diction. The efforts and interests of the various agencies of the U.S. Government have reached a high degree of coordination through an interagency Latin America Labor Committee, established by the Secretary of State in 1961. The committee examines specific problems in the Latin American labor area,-reviews the general effectiveness of overall labor activities of the United States in Latin America, and proposes com- plementary action as appropriate. It is charged with keeping activities under con- tinuing review in order to insure that rec- ommended programs are carried out and needed modifications are made to meet changing circumstances. Some of the projects in which the IDB is participating are illustrated above. Exam- ples of earlier projects include loans for workers' housing in Argentina, Chile,. and Colombia. Other organizations are partici- pating, notably the International Labor Or- ganization and the Pan American Union. The ILO has extensive activities on both regional and national bases and also admin- isters labor projects in the amount of $11 million financed jointly by the special fund of the United Nations and by the Latin American countries themselves; these proj- ects include the provision by the ILO of ex- perts for a total of 2,200 man-months. - National trade union advisory, committees are being established in the various coun- tries of Latin America, pursuant to agree- ment in IA-ECOSOC. An Inter-American Training Center for Ministry of Labor Per- sonnel which is in the process of being cre- ated in Lima, Peru, and other regional train- ing centers such as the center for research on vocational training in Montevideo, are indicative of the new initiative of labor in the Alliance for Progress. Foreign Steel Imports EXTENSION OF REMARKS OF - HON. J. EDGAR CHENOWETH OF COLORADO IN THE HOUSE OF REPRESENTATIVES Wednesday, March 11, 1964 Mr. CHENOWETH. Mr. Speaker, the rapid Increase in foreign steel Imports is a matter of great concern to this Nation. I wish to include as part of my remarks a statement made by Rudolph Smith, of Denver, executive vice president of the Colorado Fuel & Iron Corp., before the U.S. Tariff Commission on February 20, 1964. Mr. Smith calls attention to the adverse effect of these imports on the C.F. & I., and similar steel companies. The main plant of the Colorado Fuel' & Iron Corp. is located in my district in Pueblo, Colo. This is a subject in which I am intensely interested. I feel that we should take every possible step to pro- tect our domestic steel industry from these foreign imports. Mr. Smith's statement follows: STATEMENT BY RUDOLPH SMITH, EXECUTIVE VICE PRESIDENT OF THE COLORADO FUEL & IRON CORP., DENVER, COLO., BEFORE THE U.S. TARIFF -COMMISSION, FEBRUARY 20, 1964 Mr. Chairman, members of the Commis- sion, I am Rudolph Smith, executive vice president of the Colorado Fuel & Iron Corp. I started to work for C.F. & I. at our Pueblo, Colo., steel plant in 1927 and have held such jobs as engineer, superintendent open hearth department, works manager, and vice presi- dent operations. I am deeply interested in the welfare of steelworkers. C.F. & I. has a vital interest in the forth- coming GATT negotiations as a member of the American steel industry and, more specifi- cally, because of the- adverse effect of the import-export imbalance upon our company in particular. We welcome this opportunity to present the facts underlying our position to this Commission. - There will, of necessity, be some duplica- tion in the matters covered by our statement and statements made earlier by represen- tatives of other steel companies, because the basic facts pertinent to our industry in general are equally pertinent to our com- pany. We will try to minimize duplication by limiting this statement to carbon wire rods, wire and wire products, and deformed concrete reinforcing bars, and also by relat- ing the problems created by imports to C.F. & I. in particular, C.F. & I. hag'been manufacturing and dis- tributing steel and wire products since be- fore the turn of the century and now has plants at Pueblo, Colo., South San Francisco, Calif., Trenton and Roebling, N.J., and Palmer, Mass. The importance of C.F. & I. to the Rocky Mountain area in particular and to other areas is considerable in terms of the employment furnished, products pro- duced, and the general welfare. C.F. & I. pro-ducts serve the basic industries of the West, such as mining, agriculture, transpor- tation, construction, and others, as well as reclamation and defense projects. It is of vital importance to the employees of C.F. & I., its shareholders and to the general pub- lic that our company remain strong and vital in both its western and eastern divi- sions. In this regard, reference is made to the fact that the- Department of Labor has classified Pueblo, Colo., and Palmer, Mass., as areas of substantial unemployment. Steep imports into the United States reached an all-time high in 1963. This fact alone merits serious consideration when tar- iff reductions are discussed. It, is particular- ly significant for C.F. & I. in view of the tre- mendous scope of imports of products cov- ered by this statement. Let us consider the import situation rela- tive to these specific products, as shown on page 11 of our brief. There were 305,000 tons of wire rods, wire and wire products, and reinforcing bars imported in the 5-year pe- riod 1933 through 1937; only 23,000 tons in the 5-year period 1943 through 1947; and 8 million tons. in the 5-year period 1958 through 1982. As a consequence, in this lat- Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130007-7 A 1274 Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130007-7 CONGRESSIONAL RECORD -APPENDIX March 11 ter period, an average of 12,000 U.S. steel- workers per year were displaced by foreign steel Imports. U.S. exports of these same product cate- gories, on the other hand, were 823,000 tons in the 5-year period 1933-37; 2,750,000 tons In the 5 years of 1943-47, and only 308,000 tons in the period 1958 through 1962. The highest employment of American steelworkers in producing wire rods, wire and wire products, and reinforcing bars for export was an average of 4,000 per year In the 5-year period 1943 through 1947. In the years 1958 through 1D62 exports provided employment for an average of only 460 steel- workers per year. This trade imbalance is also reflected by the present position of American steel pro- ducers in relation to the world steel market. The U.S. share of the world steel market has steadily declined from 48 percent in 1950 to 25 percent In 1982. More specifically. the U.S. share of the world trade in the products which are the subject of this state- ment has also declined In the face of an in- creasing world market. Imports of the basic product lines covered by our brief were about two million tons in the year 1982, which would have provided employment for over 14,000 full-time steel- workers. American exports of these same products in 1962 were only 96,000 tons. Further, the exhibits to our brief show that In 1962 Imports accounted for substantial portions of the domestic market. Imports of foreign wire rods represented 39.2 percent of the domestic consumption of this product by the United States. With respect to other product lines, Imports are now supplying the domestic market to the following ex- tent: Percentage of U.S. Domestic Consumption- 1962 Commodity : Percent Wire nails and staples-------------- 46. 1 Drawn wire------------------------ 8.3 Reinforcing bars------------------- 20.4 Woven wire fence------------------ 38.9 Barbed wire------------------------ 47.6 When It. is considered that 38 percent of C.F. & Is production at its fully integrated plant In Pueblo consists of products covered by our brief, and that there Is an even great- er percentage in wire and wire products pro- duced at its other plants, the adverse impact of imports upon this company Is both ob- vious and serious. Several factors have contributed to the trade imbalance faced by this company and other steel producers. The fact that the tariff rates of the United States on steel products have declined steadily from 1930 has made our country the prime target of excess: foreign production. U.S. tariff re- ductions on all steel products during this period have averaged more than 50 percent. On the other hand, tariff rates imposed on many steel products by other countries have been substantially higher than the rates of the United States. In addition, ECSC coun- tries have recently Increased their tariff rates to 9 percent. There are also numerous and highly restrictive foreign nontarlff barriers, some of which are listed in our brief. and the imposition of foreign tariffs on a CIF basis rather than on the f.o.b. value creates an average increase of 10 percent In foreign over United States effective tariff protection. The average hourly employment costs of steelworkers in the United States are much higher than those of other steel producing countries, as shown by the tabulation on page 28 of our brief. It should be stressed that C.F. & I. recognizes the importance and skills of its steelworkers and willingly assumes a strong responsibility for the eco- nomic well-being of it people. The Ameri- can steelworker has achieved a remarkably high standard of living and we have no desire or intent to reduce that standard. However, the trade Imbalance in steel con- stitutes a threat to the living standards of these steelworkers. Further encroachment of foreign imports on U.S. domestic markets can only lead to greater unemployment In the steel industry, and particularly in the product categories discussed In this state- ment. In recent years. foreign countries have constructed entirely new steel plants or modernized numerous existing facilities. U.S. financial and technical assistance has helped make many of these projects possible. As the steel capacity of these countries ex- ceeded their domestic requirements, the countries began to distribute an Increasing part of the excess production to U.S. markets. Low tariff rates, higher prices of American steel products, and general freedom from nontariff barriers, were conducive to their plans for export expansion. Also, some for- eign producers have followed the practice of selling their products In the U.S. market at prices lower than in their home market. The foreign producer In addition has the advantage of having his home market pro- tected by higher tariffs and nontarlft trade barriers. World steelmaking capacity exceeds world demand, and with new steel capacity being added. foreign steel producers will continue to Intensify their export sales. Further It can be expected that foreign countries will continue to protect their domestic steel pro- ducers as evidenced by the recent ECSC tariff Increase- C.F. & I. and other American steel pro- ducers have taken vigorous action to meet the competition of foreign steel and have attempted to bring about a more equitable balance between Imports and exports. C.F. & 1. has worked diligently to Increase the vol- ume and profitability of its sales, and partic- ularly In wire rods, wire and wire products, and reinforcing bars. Large capital expendi- tures have been made to modernize our plants and Increase their efficiency. Manu- facturing operations have been consolidated, some marginal product lines have been elim- inated, our research program has been broadened. and an aggressive Sales program for both domestic and export markets has been maintained. I have attempted in this statement and In our brief to provide Information which will be of assistance to the Commission in pre- paring Its advice pursuant to the Trade Ex- pansion A,,t. In this connection I have noted that the act specifically refers to an investi- gation of the conditions, causes, and effects relating to competition between foreign and domestic producers of particular articles. I submit that the information presented demonstrates that the domestic steel In- dustry-and particularly companies such as CF. & I producing wire rods, wire and wire products, and reinforcing bars-has been seriously and adversely affected by the large Imports of steel and the great imbalance be- tween imparts and exports. I further sub- nUt that the trends In imports and exports which I have attempted to describe can only mean tin the imports and the imbalance will increase. If certain corrective measures are not taken. Therefore. I respectfully recommend that the Commission advise the President that there generally should be no further reduc- tions in duties on steel products. As to modifications of duties and import restric- tions. I suggest the following: 1. 'tariff and nontariff trade barriers among the steel producing countries of the world should be equalized. If necessary to accomplish this objective. U.S. duties should be increased and in the case of barbed wire. which is presently duty free, tariffs should be imposed. 2. In the case of products such as wire rods, wire nails. and barbed wire, where American steel producers have lost 40 to 50 percent of their domestic market, quantita- tive limitations should be imposed upon Im- ports as an interim measure to correct the Imbalance. We believe that the steel industry of the United States must be kept strong in the Interest of preserving our national well, be- ing. We further believe that the several members of the stsl Industry have exerted their best efforts In the face of discrimina- tory conditions In order W keep this in- dustry at the highest possible level. We now request your assistance in correcting the conditions which are presently restricting the efforts of the steel Industry to achieve this objective. Again, we wish to express our appreciation for the opportunity to appear before this Commission and for your courtesy and United\Atetes the Target: Heat on in Vietnam EXTENSION OF REMARKS OF HON. HALE BOGGS OF LOUISIANA IN THE HOUSE OF REPRESENTATIVES Wednesday, March 11, 1964 Mr. BOGGS. Mr. Speaker, under leave to extend my remarks in the RECORD, I include the following article from the Christian Science Monitor: UNITED STATES THE TARGET : HEAT ON IN VIETNAM (By Roscoe Drummond) SAIGON, VIETNAM,-The Vietcong Com- munists are miscalculating the fiber of Americans. They are counting on the U.S. public at home getting so frustrated with this seesaw war that it will want American troops pulled out as the going gets tougher. The new tactic of the guerrillas is to cen- ter terror bombings on U.S. military person- nel who are advising the South Vietnamese, and on their wives and children. Obviously their purposes are these: To panic the families of U.S. forces and diplomatic staff. To cause an evacuation of dependents which would have a most depressing effect on the Vietnamese Government and people. To persuade the American people that this struggle is too much for them.. And to undermine the morale of American Armed Forces In South Vietnam. These tactics are not succeeding here. I doubt they are having the effect which the Communists hope they wi'l have in the United States. But there is every evidence that the guer- rillas Intend to continue to slm their terror expressly at the Americans i:s their effort to paralyze U.S. policy. Three times In recent weeks separate bombings have been directed at U.S. person- nel; once in a softball staditun where Ameri- cans predominated; again at a downtown movie theater where Americans made up the entire audience. There were deaths and in- juries both times. The third bombing was a highly sophisti- cated pinpoint attempt to deplete a group of U.S. specialists essential to security-the demolition corps. This was the technique: Two Communist agents atotched a suspicion-looking object to the outside of a house occupied by an American officer. When the officer noticed it on his arrival home, he took the proper and expected action; he summoned a demo- llt:on detail. When they arrived in their jeep. a bicyclist pedaled by and aimed a Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130007-7 Approved For Rejpase 2005/02/10 : CIA-RDP66B00403ROM200130007-7 ,~-9 64` CONGRESSIONAL RECORD - APPENDIX A1275 grenade at their car. Fortunately it bounced off the windshield and exploded a 3-foot hole in the yard. When the suspicious object was removed from the side of the house, it was found to be a grapefruit wrapped like a, bomb. It was a decoy. The Communist's target was not the house, not the young army officer. It was the crucial demolition detail whom they had lured to the scene, tried to kill- and bungled. These are grim and ugly incidents. There is no reason to expect that the Vietcong will discontinue them until they can no longer operate with impunity anywhere in South Vietnam. Special teams of United States and South Vietnamese security guards are giving added protection to Ameri- can residents. But the dangers are just beginning. What is most encouraging is that the terror bombings are not terrorizing either U.S. troops or their families. There are more than 2,000 wives and children of U.S. military and diplomatic personnel in South Vietnam. So far not more than two have said they would elect to go home. The others have showed no sign of wanting to leave. This is why I say the Communists are miscalculating the American stamina. Their campaign of terror is not only failing to intimidate; it is clearly having the opposite effect among Americans at every level here. They more than ever are determined to see it through. I would hope-and expect- that most people in the United States would respond the same way. I know that some Americans at home tend to think of this struggle as a hopeless, meaningless war too far away to bear an the vital interests of the United States. It isn't true. At stake is not only the freedom and independence of 14 million South Vietnamese from a Communist take- over. Their freedom is important but the crucial stage is the security of this gateway to all Southeast Asia, .where 200 million free Asians feel the hot breath of Communist China's imperialistic ambitions. The Communists are aiming their terror tactics at the Americans because they know that without U.S. forces helping South Vietnam, they can unhinge this gate-and have their way. EXTENSION OF REMARKS OF HON. RALPH HARVEY OF INDIANA IN THE HOUSE OF REPRESENTATIVES Wednesday, March 11, 1964 Mr. HARVEY of Indiana. Mr. Speak- er, under leave to extend my remarks in the RECORD, I include the following arti- cle from the Shelbyville (Ind.) News of March 9, 1964: THE 70-HOUR WEEK In Washington, a congressional committee has been listening to arguments for and against the idea of placing an additional penalty on overtime. The idea is that if the Government forced employers to pay double- time for overtime-or even more-the few hours of overtime here and there could be consolidated into some new jobs. Perhaps the lawmakers ought to call in the postmasters. The Washington Star re- ports the Budget Bureau has discovered that "many thousands" of substitute post office clerks are working up to 70 hours a week- all at straight time. The regular employees have had their overtime extended, too. The Star further reports that while the post office workers apparently hold the over- time records, other departments 'are working a lot of overtime, also. What's the reason for this? Principally it is that President Johnson has promised that the Federal payroll will not increase in num- bers. As this was to be in the interest of economy, and as the work is being done and paid for anyway, it looks like a subterfuge. The money is being spent, even if new em- ployees aren't getting it. By contrast, the businessman's reasons for not hiring new workers in preference to overtime are many and valid. He doesn't have to fool anyone as the Government is trying to do. Some overtime is the result of emergencies and rush orders. Some occurs because there are no qualified applicants available. Some is worked because no extra machines or shift time are available to fill the volume of orders. Sometimes an employer avoids hiring a new worker because he knows he would soon have to lay him off when a peak has been passed. Absenteeism also often necessitates over- time. An additional penalty for overtime work would make goods more expensive for all of us, of course. It probably would make a few jobs, and might destroy some. It could out the take-home pay of many millions. If the Government really believes in elim- inating overtime to make new jobs, what's going on in the post office? EXTENSION OF REMARKS OF HON. BRUCE ALGER OF TEXAS IN THE HOUSE OF REPRESENTATIVES Wednesday, March 11, 1964 Mr. ALGER. Mr. Speaker, when farm programs become more ridiculous there is no doubt the Democrats will direct the absurdity. For over 30 years' they have been doing an excellent job of reducing American agriculture to the most impos- sible position of being directed in every move by Washington desk farmers, many of whom have never seen an honest-to- goodness American farm. The once mighty free American agricultural plant is slowly being Sovietized through the process of making free farmers wholly dependent upon the Federal Govern- ment. Soon we will be asked to pile absurdity on absurdity by approving an impossible cotton bill to which has been added a more impossible wheat bill and the American buyers and taxpayers as usual will foot the bill. As, a part of these remarks I would like to call attention to the comment in an editorial from the Chicago Tribune, "Subsidies Galore," and one from the Wall Street Journal, "Accent on Absurd- ity." The editorials follow: [From the Chicago (Ill.) Tribune] SUBSIDIES GALORE Under stiff White House pressure, the Sen- ate has approved a bill authorizing new sub- sidies for cotton and wheat. The measure now is in the House where the Johnson ad- ministration hopes to twist enough arms to bring quick approval. Any delay in enact- ing it into law involves the risk that the bill will be too late to 'affect this year's crops, which means the administration would have ew handouts to dangle before rural vot- n o n ers in the a'lectien campaign. The proposed cotton program is such an economic absurdity that even the commit- tee chairman, Senator ELI.ENDER, a Louisiana Democrat, was opposed to it. He agrees with the American Farm Bureau Federation that if Secretary of Agriculture Freeman would administer the present law properly-which means lowering price supports-there wouldn't be any need for a new program and the taxpayers could be saved some money. The Agriculture Department is caught in a dilemma of its own making because it raised the support price after the Kennedy administration took office and now has cot- ton running out of its ears. Having stimu- lated production with high prices, it would be simpler and sounder to undo this mistake by lowering supports to discourage overpro- duction and make cotton more competitive. But the administration's solution is to pile on more subsidies. The Senate bill does propose to lower suports from 32.47 cents 5r pound to 30 cents a pound for the first year, after which the Secretary would have authority to raise or lower them within prescribed limits. But growers of more than 10 acres of cotton who agree to reduce plantings by a third are to get a bonus of 4.5 cents a pound. And grow- ers of 10'acres or lTss-well over half of all growers-are to be guaranteed 34.5 cents a pound without any cut in acreage, which is a reward to the small, inefficient producers at the expense of the larger, more efficient ones. Moreover, under certain limitations growers may exceed their reduced plantings by 10 percent to produce cotton at the ex- port rate of 24 cents a pound. But exporters still are to receive a sub- sidy, as at present, so American cotton can compete abroad at lower world prices. And a new subsidy is to be granted handlers so that domestic mills can buy our own cotton at the same price paid by foreigners. Thus the Government proposes to spoon feed the cotton industry with what in effect are four different subsidies. The wheat program is a warmed-over ver- sion of the same one farmers emphatically rejected in last May's referendum. It guar- antees a high price for that portion of the crop consumed domestically and a lower price for export wheat for those farmers who submit to planting controls. But instead of being mandatory, the program this time is being promoted as a voluntary plan, al- though the price guarantees are purposely set so high that the majority of farmers probably could not afford to stay out of it. Shortly after taking office, President John- son issued a statement suggesting he was seeking better farm programs and asking, "How can we use the pricing mechanism of the free market with more vitality than presently?" The obvious answer is to stop finding new ways to subsidize the farm economy. Agriculture and taxpayers gen- erally will be better off if the House rejects this bill. [From the Wall Street Journal, Mar. 6, 1964] -ACCENT ON ABSURDITY With the Federal farm program sinking to new depths of foolishness, farmers may be nearing the day when they'll need protection against their would-be political friends. The program's increasing accent on ab- surdity is especially evident in the wheat- cotton bill now wending its way through Congress. Seldom has any legislation seemed so well contrived to create costly confusion. Take the wheat provisions of the bill. A year ago the wheat farmers rejected an ad- ministration plan for the tightest Federal regimentation ever, accompanied by a vast increase in the redtape of regulation. Farm- ers then began holding down their planting, preparing for the first time in decades for something vaguely like a free market. Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130007-7 A1276 Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130007-7 CONGRESSIONAL RECORD - APPENDIX MaMh 14 But the farmers' friends In Washington were unwilling to let that come about. Their solution? Just push through the same pro- gram but label It voluntary instead of com- pulsory. In addition to a basic support price, each farmer who cut his acreage by 10 percent or so would get certificates to cover an export quota and also a domesticsales quota. If he sold his wheat to a domestic processor, the processor would have to buy the certificates from the farmer. If be Instead sold the grain to an exporter, the exporter would have to buy his certificates. Any farmer could participate or not, as he chose. If he decided to stay out, he would have several choices. Hecould let his wheat stand In the field or rot in storage, or he could treat It as low-price animal feed. For the usual sales channels would be closed to him. The reason is that the program would com- pel processors and exporters to participate; they would have to buy certificates to cover the wheat they purchased. By now most farmers, processors, and exporters must ques- tion the claim that the program would be voluntary. That claim is no more convincing than the argument that the wheat program would save the taxpayers a lot of money. The theory Is that processors and exporters. through their purchases of certificates, would assume part of the cost of supporting wheat prices. In reality, the processors would pass along the cost of the certificates to consumers In the prices of their products. And in case the politicians have forgotten, consumers and taxpayers are pretty much the same people. In cotton, the situation is no less silly. First, Federal supports priced cotton out of world markets, so the U.S. Government began subsidizing exporters. But this made it possible for foreign textile mills to buy U.S. cotton and still undersell American textile mills right in their own backyard. So the Government now proposes yet another subsidy to aid the U.S. mills. If two wrongs did not make a right, It's hard to see how a third will help matters much. For the cotton grower, too, things would become more confusing. If he agreed to cut his acreage he would get one support price. If he planted his present acres, he would get a lower support. And if he waisted to grow cotton for sale at the lower world market price, he could increase his acreage by around 10 percent. One of the more ridiculous aspects of all this is that, like the rest of the farm pro- gram. It chiefly helps those the politicians are least interested in helping. It ought to be clear that the larger, more efficient farmers, with their lower costs, are the ones who benefit most from the high product prices the programs are Intended to bring. The less efficient but politically popular family farmer still has a hard time of it- but the politicians' promises encourage him to hang on. Some in Congress, nonetheless, presumably view the cotton-wheat bill as a powerful magnet for votes in an election year. But there is a growing number of urban voters, too. One man aware of this is Senator HAR- RISON WILLIAMS, who urged the other day that Congress "end once and for all the fantastic and costly surpluses bulging In Government warehouses." Mr. WILLIAMS 1s a liberal's liberal, but he's also a representa- tive of largely urban New Jersey. If such pressures grow great enough and the farm program continues to plumb new depths of nonsense, the farmers one day may face not an orderly transition to a free market but a wrathful explosion. Forgotten Yemen War Goes On EXTENSION OF REMARKS HON. SEYMOUR HALPERN OF NEW YOU IN THE HOUSE OF REPRESENTATIVES Tuesday, March 10, 1964 Mr. HALPERN. Mr. Speaker, I am pleased that many of our distinguished commentators have not neglected to em- phasize the ironic and damaging circum- stances which still prevail In the King- dom of Yemen. The U.S. Government actually recog- nized aNasserite regime in establishing diplomatic relations with the Yemen reb- els. This was not a popular, internal revolt which could claim our sympathy. The struggle for power goes on, and the United Arab Republic continues its large military operations against the Royalists in an attempt to protect the prony nationalist government it forcibly created. Mr. William S. White, writing in the Washington Star of Saturday, March 6, has written a timely piece on the sub- ject. I ask unanimous consent to include the article in the Appendix of the RECORD. The article follows: FoacurrEN YEMEN WAR GOES ON (By William S. White) A forgotten war, a 17-month-old war of ag- gression. still goes on against the ragged, barefoot little kingdom of Yemen In the Middle East. The Invading forces of Nasser Egypt. sup- plied with Soviet-made tanks and bombers again the rifles and machineguns of the Yemeni royalists, are larger now than 10 months ago, when Egypt agreed to a United Nations-inspected "disengagement" that is no disengagement at all. Indeed, the United Nations observation mission in Yemen has just conceded that in the single brief period January 3-February 18 Egypt Increased Its forces by 1.000 to 2,000 men. Young Prince Abdurraman Ben Yahya of Yemen, who is in the United States for what looks to be the lost cause of interesting the Western World In Yemen's plight, says 38.000 Egyptian troops are now in his coun- try. MILLION IN CAVES One million of his countrymen, he adds, are now living in caves for shelter from Nas- ser bombers sent by the Soviet Union. Ye- men's already pitiably small supply of arms is running out, for reinforcements from Sau- di Arabia are obstructed under the U.N. "cease-fire." Rarely has an emissary come to this country in so hopeless a state of affairs. The Royal Yemen Government is no longer recognized. either here or in the United Nations. The so-called democratic revolu- tion which dislodged it- -with the massive help of Egyptian military forces-was granted, during the Kennedy administration, an American recognition which necessarily is now maintained. The Prince, therefore, has no official status here; there Is no one to whom-officially- he can put his case. What he hopes for, nevertheless, Is some Indirect assistance for Yemen, by which he really means some deci- sion by Washington to put pressure on Nas- ser to cease his attacks. How the United States could now reverse itself Is not easy to see, for the water of much irrevocable history was flowed under the bridge since this country bougght the view that the revolution against the 'Yemen royal regime was what It was presented to be-an honest, local uprising to procure a more democratic society. What was not understood then was that the revolution was in fact E. Nasser export. What is now crystal plain is that though American recognition was granted to the new regime on condition that Nasser then arrange to withdraw his forces, he has increased tham instead. Monarchal governments--even such a pathetic little tribal "monarch" as was In- volved in Yemen-are not popular any more. Anybody who comes along with the claim that he represents a "forward-looking" re- form to get rid of such old-fashioned ar- rangements is automatically looked upon with favor. Royalty has a hard time getting a hearing, as the royal regime in Yemen did in this Instance. It Is, at all events, not too late to examine this case example of how sincere Western advocates of free governmett in the State Department are taken in by phony revolu- tions pumped up as movements for "freedom and Independence" by the foreign agents or collaborators of Moscow. A-bit more reserve before we granted rec- ognition so many months ego would have changed the whole picture. Nasser might now be back in Egypt instead of beating down the tribesmen of Yemen, crying slo- gans that everybody must be "forward-look- ing" while Soviet weapons are driving a help- less. ignorant, and hopeless people much further from real freedom than they have ever been before. ARRIVE IN 6 DAYS For the truth is that within 6 days of the outbreak of what was advertised as an authentic. home-grown revolt against the Yemen royal government by democratic forces, Egyptian troops were on Yemen's soil. They had to come by sea-and 6 days is the minimum time In which to mount such an amphibious operation from Egypt. If this did not show whose "revolu- tion" this really was, what did it show? Finally, we could usefully look back a bit further than all this. We could look back to 1956, when this Nation joined the Soviet Union in the United Nations in condemning as an "aggression" against Nasser Egypt the attack made in actual self-defense by the British, the French and the Israelis to try to strike Nasser's throttling hands from their lifeline, the Suez Canal. When Nasser Egypt attacks somebody it is never aggression under the peculiar de- finitions of the United Nations. EXTENSION OF REMARKS OF HON. JAMES ROOSEVELT OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Thursday, March 5, 1964 Mr. ROOSEVELT. Mr. Speaker, it has long been my contention, and justi- fiably so, I am convinced, that the 26th Congressional District of California is quite outstanding. Something has just happened which is so unusual and dif- Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130007-7