Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 16, 2016
Document Release Date: 
January 3, 2005
Sequence Number: 
Case Number: 
Publication Date: 
January 23, 1964
Content Type: 
PDF icon CIA-RDP66B00403R000200170136-0.pdf738.76 KB
Approved For Release 2005/01/27: CIA-RDP66B004p3Re '0200170.136-0 196.4 CONGRESSIONAL RECORD - SENATE 1009' be provided in this hearing record by expert witnesses. Hopefully the subcommittee can hear from the Secretary of Labor on this point. Two existing studies by the Office of Man- power, Automation and Training are most relevant. I submit these studies for the record, Mr. Chairman, and suggest they would be useful material for all of us. An able member of the Judiciary Commit- tee, the. distinguished senior Senator from Hawaii, HIRAM FONG, also has concerned him- self with the economics of immigration. His eloquent and well documented remarks in the Senate last August were a distinct serv- ice to factually presenting the national eco- nomic values of immigration reform. 5. TO PROVIDE A CONTINUING AND FLEXIBLE AUTHORITY FOR THE ADMISSION OF REFUGEES All over the world people are on the move- fleeing oppression and tyranny. The steady trickle of escapees into Western Europe, the flight of Chinese into Hong Kong, and the Jewish exodus from north Africa, all of these, immediately come to mind. These are ex- amples 'of the need for a continuing and flexible authority for the annual admission of reasonable numbers of the world's home- less refugee. A continuing authority to admit refugees would provide a needed instrument of our foreign policy, and be a true reflection of. all America's concern for the homeless and oppressed. Just a note on the Cuban refugees. In this country: Their presence here is a new ex- perience for America. It is the first time America is a country of first asylum for such a large group 'of refugees. The usual con- cerns associated with a-sudden and abnorr mal influx of new people have not materi- alized. The successful resettlement program for Cuban refugees demonstrates the Nation's capacity to absorb new arrivals-even under emotionally charged and trying circum- stances. This is an experience that clearly speaks for greater flexibility in planning our policy for admission of refugees. There are very sound moral and national interest reasons to abolish our national origins immigration policy. The sponsors of immigration policy reform, and citizens throughout the country, seek a law speaking the spirit of welcome that is American history. We seek a law which-treats the people of all nations as worthy individuals in the fam- ily of man. We seek a law which reflects our belief in the importance of family unity-especially for those hundreds of American citizens and residents now,separated from parents and children. We seek a law to facilitate the entry of spe- cial skill immigrants in the interest of na- tional development and growth. We seek a law which provides a continuing and flexible authority for the admission of refugees from tyranny and oppression. We'seek a law which enhances our Na- tion's standing with the rest of the world. REFORM CHANNELS Mr. Chairman, both of the bills you and Senator KEATING and others in Congress have proposed would accomplish the objectives set forth in this statement. They do offer alter- native methods of achieving the abolition of the present national origins'system of select- ing immigrants and for setting new priorities. Considerable time has elapsed since the introduction of these bills. During this pe- riod I have rather concluded that the long- term best interests of, our country would be served by enactment of S. 1932, the bill carrying out the legislative recommendations in the President's immigration message to Congress last year. I would like to offer for the record a ;ection-by-section analysis of that bill. 3riefly, the bill reduces each of the present national quotas- by 20 percent a year until they are erased, thus releasing quota num- bers to a pool to be distributed on a new priority basis. First admitted will be immigrants with skills and talents urgently needed in this country. Second priority goes to relatives of American citizens and residents. Parents of American citizens are afforded nonquota status. Natives of no one country can take more than 10 percent of all quota numbers, au- thorized in any year. By Presidential action 20 percent of the annual pool numbers can be reserved for the benefit of refugees. S. 1932 provides for a commission of seven members to advise on the reservation of quota numbers, and envisages close coopera- tion between Congress and the executive branch. S. 1932 does not seek to admit significantly larger numbers of immigrants than actually have come to America in recent years. The primary objective is changing the method of selecting new arrivals. S. 1932 does not eliminate the health, lit- eracy, security, and public charge screening that each prospective immigrant must pass; Reports of study' commissions are usually laid aside, especially after the interval of 10 years. But today, more than ever, the his- toric 1953' report of President Truman's Com- mission on Immigration and Naturaliza- tion-"Whom We Shall Welcome"-is valu- able for this deliberation. The report's guidelines and recommendations for a ra- tional method of selecting immigrants are relevant to our needs today. They have a direct bearing on the proposed bill, S. 1932. Members of Congress and the public at large will find it a useful and stimulating document. In closing we should remember a state- ment from President Truman's veto message to the Congress on the act of 1952. "I am sure," he said, "that with a little more time and a little more discussion in this country, the public conscience and the good sense of the American people will assert themselves and we shall be in a position to enact an immigration and naturalization policy that will be fair to all." President Eisenhower has spoken similarly. President Kennedy and President Johnson have set us on the road to reform. I urge this committee to report favorably a bill that meets the objectives 36 Members of the Senate have already endorsed in their sponsorship of the bills before you. I believe the Congress can this year enact an immigration statute which speaks a wel- come to the immigrant in the spirit of broth- erhood and justice and, as President Johnson put it so understandably, as a nation of immigrants we have every right to ask one seeking admission to our country, "What can you do for the country?" But I would like to see the fellow get up here to defend the present question which is addressed to the applicant, "Where were you born?" That just does not add up, and if any American would take a minute to think about it he would agree, and I know. that these.hearings will be enormously help- ful in persuading every American that he really ought to take the time to think about this. Some place down the line some prede- cessor of his did knock at the door. Some of them turned out bad and some of them have turned out good. But, on balance, we be- came a great nation. But we are not so great that we should ever think that there are not peoples in remote corners whose names we cannot pronounce, who perhaps do not know their own parents, who could not contribute enormously to this society; and time runs out on us in this area as it does in so many others. It is not an easy area for a politician to operate in. The hard truth is, I suspect, that it is bad politics in the short haul, because even though those who have relatives over- seas are nontheless gunshy of a discussion that might open the door to somebody to displace him from his own job. As I suggest, there is an answer to this, too. But those of us in the Congress with the responsibility to act are charged with the responsibility to act in areas that are polit- ically unprofitable as well as those that are politically profitable, and so long as we are permitted to be here, the obligation is heavy on each of us, I think, to step up and adjust this immigration law. I appreciate very much this opportunity to be heard. RECESS UNTIL 2 O'CLOCK Mr. KUCHEL. Mr. President, I move that the Senate stand in recess until 2 o'clock p.m. The motion was agreed to; and at 1 o'clock and 19 minutes p.m., the Senate took a recess until 2 o'clock p.m. the same day. At 2 o'clock p.m., on the expiration of the recess, the Senate reconvened, when called to order by the Presiding Officer (Mr. KUCHEL in the chair). Mr. MILLER. Mr. President- - The PRESIDING OFFICER. The Chair recognizes the Senator from Iowa as acting leader of the minority. How much time does he yield to himself? Mr. MILLER. Mr. President, a par- liamentary inquiry. The PRESIDING OFFICER. There are 65 minutes remaining under the con- trol. of the minority, and 55 minutes un- der the control of the majority. Mr. MILLER. Mr. President, a par- liamentary inquiry. The PRESIDING OFFICER. The Senator from Iowa will state it. Mr. MILLER. Is the Senate operating under a consent agreement requiring germaneness? The PRESIDING OFFICER. The Chair is unaware of any rule of germane- ness which would restrict the Senator's remarks to a relevant subject. .Mr. MILLER. Mr. President, I yield myself 5 minutes from the time under the control of the minority leader, and 5 minutes from the time under the con- trol of the majority leader. Mr. BYRD of West Virginia. Mr. President, I wish to suggest the absence of a quorum. The PRESIDING OFFICER. Does the Senator from Iowa yield to the Senator from West Virginia, for the purpose of suggesting the absence of a quorum? Mr. MILLER. Yes. Mr. BYRD of West Virginia. Mr. President, I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The legislative clerk proceeded to call the roll. Mr. MILLER. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. With- out objection, it is so ordered. FOOD-FOR-PEACE PROGRAM Mr. - MILLER. Mr. President, some- time during this second session of the Approved For Release 2005/01/27 : CIA-RDP66B00403R000200170136-0 Approved For Release 2005/01/27 : CIA-RDP66B00403R000200170136-0 CONGRESSIONAL RECORD - SE-NATE January 2. 88th Congress, we shall be weighing the advisability of extending legislation to authorize Federal funds for Public Law 480-better known as the food-for-pence program-beyond the expiration date of December 31. It vrill be an issue fraught with controversy, prompted by contin- ued evidence of either mismanagement or misguided policies. I hopefully sug- gest that Congress will receive :a full ac- counting of the more than $10 billion of food and other farm products either do- nated or sold to foreign countries since the program's inci ptlon. All of us are femiiiar with the news reports dwelling on the diversion of near- ly $30 million in feed grains to Austria; the unexplained Loss of $100 million in grains scheduled :'or Colombia, Turkey, and Vietnam; the purchase of $70 mil- lion in salad oil and shortening-mainly soybean oil-which was shipped in faulty containers and was permitted to turn rancid in various warehouses around the world. Clear-cut explanations should be provided Congress. But, Mr. President, we should also be furnished answers to another question: How frequently are our food-for-peace policies being dictated by purely politi- cal reasons? The basic reason for this question Is a somewhat startling article which - ar peared in the New York Times of Janu- ary 19. It relates how the United States has approved the granting of credit- through diversion of proceeds from sur- plus wheat sales-to a New Orleans de- veloper in Paraguay. The developer, identified as Jim McRoberts, intends to establish a large cattle ranch with the credit of $750,000. The report indicated that the ranch is to be the site of a new colony of 75 American settlers. The arrival of the colonists reported- ly surprised both American Embassy and Aid for International Development of- ficials In Paraguay. But this apparent- ly has not been the only surprise for them. Let me quote pertinent passages from the Times article: Although officials of the U.B. Embaa y and the Agency for International Develop- ment here are maintaining silence on the as- sistance to Mr. McRoberts' ranch project, reliable souroes say that they flatly opposed the loan. They were overruled by Wash- ington. One U.S. official In Asuncion summed up the granting of credit to Mr. McRoberts' project as "strange and discouraging." Judging by the comments of U.B. citi- zens here, it is evident that they feelsome political pressure was brought to bear to influence Washington's decision on credit to Mr. McRoberts. The loans require the borrower to meet q number of requirements before credits are advanced. But US. officials-who are skeptical or disapprove of the loan say far better use could have been made of the money in help- ing Paraguay, whkh has one of South America's lowest per capita income rates. Yet the critics ar.s not speaking out be- cause the decision has been made by im- portant Washington officials. Mr. President, just how will this de- cision affect us, here in the United States? Mr. McRoberts will raise cattle, which he then could sell to the meat ex- porting companies which ship .beef to the United States. And this will become easier in view of proposals by Washing- ton officials to set up in Paraguay United States-approved facilities to en- able increased exports to this countrs. With the U.S. producers virtually on the ropes, because of the loss In income stemming In part from unlimited beef and veal imports, we are now setting out to undermine them even more. Just who are the "Important" ingbn officials who overrode our repre- sentatives in Paraguay? Are there similar cases, of which we are not awa-e? I believe this latest development in our food-for-peace program requires In- vest:.gation. The questions must be itn- sweied to the complete satisfaction of every Member of Congress. I ask unanimous consent that the arti- cle, entitled "Paraguay Colony Sl,irs Complaints," be printed in the RECtnn. There being no objection, the article was ordered to be printed in the RECCaa, as follows: PARAGUAY COLONY STIRS COMPz,Axwvs-FELT Mt,veo FROM TExAS so U.8 -Axn>m RAircH Sr'E ASONCrdN, PARAGUAT.-A controversial project In northern Paraguay aided by the U.S. Government has turned out to be the site for a new colony of 75 American settlers. The group, consisting of 16 families, .Gas flown In from Texas a few weeks ago, Their belongings are en route by ship. US. sources here describe the settlers as members of a Protestant sect who frequerctiy have opposed education of their chiidrer in pub] is schools. Jiro McRoberts, a developer from New Orleans, brought the rural group to the rcew property. He intends to develop a large cattle ranch. according to US. sources h are. The amount is estimated at about $76i0,- 000, but the credit will be In Paraguayan currency. Although officials of the U.S. Embassy i,nd the Agency for International Development here are maintaining silence on the ass st- ance to Mr. McRoberts' ranch project, re- liable sources say that they flatly opposed the :.can. They were overruled by Wash- ingtc n. VAST AREA BOUGHT Mr. McRoberts, operating as Pan Western Znte_'prlses, has bought hundreds of thou- sand; of acres of potential cattle-grazing land near Puerto Mlhanovich, 850 miles up the Paraguay River from Asunctdn. He applied for credit under a U.S. pro- gram that permits some of the proceIda from surplus wheat sales is Paraguay to be loanfd to U.S. enterprises hero as a means of helping the economy. The officials who opposed Mr. McRoberts' plan said they doubted that it would help Paraguay. The arrival of the colonists a ir- priseti both Embassy and AID officials. One U.S. official in Asuncidn summed up the granting of credit to Mr. McRoberts' project as "strange and discouraging " Under U.S. Public Law 480, surplus V.S. wheat Is sent to Paraguay on a 20-percosnt grant basis, the remainder being sold by .he Paraguayan Government for payment In Paraguayan currency. Some of the proce.sds from the sales help pay US. Embassy cants, some go toward mutually approved put,lic development projects in Paraguay, and a small percentage Is set aside for loans to US. companies here. POLITICAL PRESSURE SEEN Judging by the comments of US. citizens here. It 1s evident that they feel some politi- cal pressure was brought to bear to inf u- ence Washington's decision on credit to ldr. McRoberts. Paraguay's most important export Is motat and much of it goes in the form of smal cans of beef to the United States. Under a proposal recently made in the United States. Paraguayan meat export could be increased considerably. This play calla for the setting up of U.S.-approved fa- cilities here that would allow Paraguay tc send the cooked beef meat in bulk to the United States. At present cooked meat en- tering the United States has to be recooked there as double protection against hoof-and- mouth disease. The new plan would dis- pense with the need for recooking, thus per- mitting tastier meat to reach the consumer and resulting in increased sales. The principal meat exporters in Paraguay are the International Products Corp., which is U.S. owned, the British Liebig Co., and a Paraguayan company. Mr. McRoberts, with his own funds and with the U.S. loan, apparently has taken over two vast ranch and grazing properties and intends to raise large herds. Presum. ably, he could then sell to the meat export- ing companies. The loans require the borrower to meet a number of requirements before credits are advanced. But U.S. officials who are skep- tical or disapproe of the loan, say far better use could have been made of the money in helping Paraguay, which has one of South America's lowest per capita income rates. Yet the critics are not speaking out be- cause the decision has been made by Impor- tant Washington officials. Supporters of the project say it could stim- ulate development of a remote undeveloped CHANGED REGULATIONS 'I RE- GARD TO FOREIGN SHIPS TRAD- ING WITH CUBA Mr. Mfl.rM;,, Mr. President, some serious charges have been leveled at the State Department and the administra- tion by the maritime trades department of the American Federation of Labor and Congress of Industrial Organiza- tions. The charges are deserving of ar answer. According to the New York Times o: January 12, Paul Hall, president of thi department, has sent to Secretary o: State Dean Rusk a telegram of protes' relating to "wldtewashing effects of re- cently changed Government regulation: on blacklisting foreign ships that tradr with Cuba." The charges, the Times says, were an- nounced in December. They provide "that a vessel that has been chartered for trade with Cuba since January 1 1963, can be removed from the blacklist if her owner gives assurances that other vessels owned by him and still active in Cuban trade will stop serving the island upon completion of their charters." Mr. Hall claims that the amendment only serves to "whitewash" vessels pre- viously blacklisted by the Government for trading with Cuba. The number of ships which could be affected by this relaxation of policy I, considerable-196, according to the Times. I feel that a full explanation of the effects of these changes in regulation should be furnished. With free-worlt trade with Cuba, as pointed out in th Davenport, Iowa, Daily Times, on Janu ary 9, estimated at $230 million, it ha a strong bearin?c, on our policy with othe nations still trading with Cuba. Approved For Release 2005/01/27 : CIA-RDP66B00403R000200170136-0 Approved For Releas'005/01/27 : CIA-RDP66BOO403R0002 70136-0 `6 CONGRESSIONAL RECORD - SENATE 1011 I ask a lanimous consent to have Spain has been cautioned that her rap- all cases represented a drop over previous printed in the RECORD the articles, idly expanding economic relations wjth Fidel figures. "Maritime Labor Hits Cuba Policy" and Castro's regime could jeopardize foreign aid "United States Fights World Trade With from the United States. Mr. MILLER. Mr. President, apropos Red Cuba." A U.S. law forbids aid to countries dealing, of the articles which T have just placed with cubs nd , a new regulations recently vAwe in the RECORD, I ask unanimous consent There being no objection, the articles issued to discourage non-Communist ship- that the lead editorial published in the were ordered to be printed in the RECORD, owners from taking part in trade between Detroit Free Press on January 11, 1964, as follows: Cuba and other countries. entitled "Europe Knocks Down Our Wall [From the New York Times, Jan. 12, 1964] Spain, however, maintains that she has Around Cuba," be printed in the RECORD. MARITIME LABOR HITS CUBA POLICY-CHANGE historical and cultural ties with Cuba, and IN U.B. BLACKLISTING RULES FOR SHIPS also has a need for trade with Cuba. Spain There being no objection, the editorial SCORED further contends that good relations. with was ordered to be printed in the RECORD, Cuba are necessary in the interests of about. as follows: The Maritime Trades Department of the 40,000 Spanish citizens now residing in Cuba. EUROPE KNocxs DOWN OUR WALL AROUND Labor Federation said last week it would try The United States has made no formal pro- CUBA to alevelo the positive vepolicy next month re- test to Spain but strong pressure has been one of President Johnson's most delicate de with g applied through diplomatic channels. tasks seems likely to be conducting a retreat Gently changed Government regulations on_ said he had sent. a telegram of protest to million in Export-Import Bank loans dur- worth of buses and spare parts tof Cuba puts Secretary' of State Dean Rusk. The depart- Ing the next several years. - a strong spotlight on the dilemma confront- meat is a group of 30 international or na- It was included in a September agreement ing him. tional unions in the American Federation of extending for 5 years the 1953,treaty under It came to a head recently when the trans- Labor and Congress of Industrial Organiza- ' which American air and naval bases in Span- ' port ministers of 10 European countries met tions, They have an aggregate membership ish territory were authorized. to denounce the blockade as interference. of 450,000. The United States has long sought. to get More than that, they urged the owners of The changes, announced in December and the non-Communist World to cut down on vessels under their flags to pay no attention known as an amendment to National Security its dealings with Cuba, and has succeeded to a U.S. Maritime Commission demand, and Action No. 220, provide that a vessel that has to a great extent except in the case of a few invited Japan to make common cause with been chartered for trade with Cuba since nations such as Japan. ' them. January 1, 1963, can be removed from the Total free World trade with Cuba was esti- Britain went even further. It gave British blacklist if her owner gives assurances that mated at $1.3 billion in 1959 but has dropped vessel owners formal instructions to disre- other vessels owned by him and still active Off to less than $230 million, according to gard the Commission's demand. Also, the in Cuba trade will stop serving the island most reliable figures now available. issue has been up in Parliament and Is ex- upon completion of their charters., On the other hand, Cuban trade with the petted to be on Prime Minister Douglas- Ships that call at Cuban ports are barred Communist bloc has risen rapidly from vir- Home's agenda when he confers with Presi- from carrying U.S. Government-financed tually nothing to more than $1 . billion a dent Johnson. cargoes. year. The figure Includes large supplies of . What the Commission wants is a full dis- WHITEWASH IS CHARGED military equipment. closure On vessel movements to Cuba. It According to the latest Government data, JAPANESE TRADE would be used to enforce an edict barring from U.S. ports all the ships of any owner a total of 196 vessels aggregating 1,517,287 Figures compiled in mid-1963 by the State ' who has let so much as one of them take gross tons have called at Cuban ports since Department, Commerce' Department, the proscribed cargo to Cuba. January 1, 1963. The fleet includes 59 British United Nations and other agencies showed Should Japan join the 10 European na- 53 Greek, and 41 Lebanese vessels, Japan's trade with Cuba in 1962 at $46.4 mil- tions in refusing to go along with the Mari- In his telegram to the Secretary of State, lion. This compared with $36.1 million in time Commission, three-fourths of the Mr. Hall noted that the amendment tended 1961. world's merchant tonn to whitewash vessels blacklisted age would be involved. previously Most of Japan's trade wtih Cuba consisted Conceivably, as time went on, we could find by the Government for trading with Cuba. Of sugar purchases. Japan has been shipping ourselves in grave straits as to foreign com- Mr. Hall charged that the amendment had manufactured goods to Cuba, though none of coerce. The goings and comings of ocean been adopted not to protect U.B. interest, but strategic value, vessels might be so reduced as to leave us that it represented State Department respon- Although Cuban insufferably isolated from world trade. siveness to pressures by foreign-flag opera- sugar harvests have been tore poor of late, Castro recently claimed that by What we're up against is the hard fact that It was a coincidence, Mr. Hall observed 1970 his country will dominate the world on the other side of the Atlantic there is not that the blacklisting changes were made at a market. He asserted that greatly expanded the feeling against doing business with Com- time when various foreign owners in the production and low prices will enable Cuba munists which exists in this country., to ruin producers in capitalist countries. Another hard fact is that the farther one dwindling Cuba trade had excess tonnage A few days p is from danger, the less ominous it looks, available to handle U.S. wheat shipments to ago Castro announced that Hence Europe is much less apprehensive than the Soviet Union. Cuba has made. heavy purchases of Russian we over the spread of Castroism in Latin Under Department of Commerce regula- mechanical equipment for use in harvesting America. tions half of such wheat shipments are re- the sugar cane crop. Moreover, it can be pointed out that we're served to U.S.-flag vessels at prescribed rates, Surprisingly enough, the latest figures hardly consistent when it comes to checking if they are available. show that the second largest non-Commu- the spread of Communist Influence. Indo- Shipping sources said positive policy nist trader with Cuba Is Morocco, This trade nesia's President Sukarno is decidedly Red threatened by Mr. Hall could take the form was said to have increased from $9.7 million oriented, and the Soviet has endowed him of picketing such vessels if they came to In 1961 to $28 million in 1962. With a splendid arsenal of modern weapons. U.S. ports. The Seafarers International BRITAIN THIRD Yet the United States lent a strong helping Union, of which Mr. Hall is president, early Britain followed as third, but the figure hand when he ousted the Dutch from West- in December unsuccessfully picketed a West g ern New Guinea. German vessel that was loading wheat for dropped off from $28 to $27 million. Hungary. Other countries in order were, with figures - Nor do the Europeans see a difference in for 1961 and 1962 respectively, as follows, the Maritime Commission's banning of ships The picketing was in protest of Govern- with figures in millions; that have visited Cuba and the Arab nations' ment waivers of the 50-50 provisions on com- refusal to let a vessel dock if it has touched .mercial grain exports to Iron Curtain na- Egypt, $20 and $22; Canada, $35 and $12; at an Israel port-and around Washington tions, Netherlands, $15 and $11.5; West Germany, nobody but Arab diplomats speak highly of $14 and $11.5; Chile, $15.7 and $10.5; Spain, that policy. [From the Davenport Times, Jan. 9, 19841 $13.6 and $10 (this was before the recent in- So there we are. We can fall back on the crease in trade) ; Tunisia, $2 and $8.5; Greece, Monroe Doctrine, using the ground that Cuba UNITED STATES FIGHTS FREE WORLD TRADE $3.4 and $6.7; Sweden, $2 and $4.6; Finland, is really a Soviet outpost in the Western WITH RED CUBA $.7 and $4.5; France, $6 and $4; Syria, $5 and Hemisphere. But the Monroe Doctrine isn't (By Francis St11ley) $3.6; Switzerland, $3.9 and $3.8, and Norway, a treaty. It is simply a statement of U.S. The United States is unhappy over grow- $2.5 and $2.8. tent and no European lug trade between Spain and Cuba. Others dealing with Cuba Include India, o abide by it. power is obligated - As a result, Uncle Sam has been waggling Belgium, Yugoslavia, Ceylon, Uruguay, Italy, . Thus the only way we can enforce it is. to a finger at Spain with increasing vigor in Brazil, and Mexico. Their trade was reported begin shooting or think up some sort of recent weeks. at less than $3 Million each, and In nearly reprisals that could be invoked. The first No. 12-11 Approved For Release 2005/01/27 : CIA-RDP66B00403R000200170136-0 1012 Approved For Release 2005/01/27 : CIA-RDP66B00403R0002001701 6-0 CONGRESSIONAL RECORD - SENATE January 2 - would mean war. The second would cause our friends to bid us a frigid farewell. Nei- ther can be afforded. The unhappy truth is 'shat our hand has been called, and we're not even holding a pair of deuces. The $12 million bus deal tells us so in a blunt and conpalcuous way. WHITHER THE UNITED NATIONS? Mr. MILLER. Mr. President, in the Washington Post for ,January 15, 1964, the lead editorial entitled "Whither the U.N.?" merits the attention of readers of the CONGRESSIONAL RE'-ORD. This is an excellent editorial witch details the problem of representation in the United' Nations which is being aggravated by the admission of so many small coun- tries, and also the coni:ern of the Secre- tary of State, Dean Rusk, with the prob- lem. I ask unanimous consent to have this editorial printed in the RECORD. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: t7.N.'s assessed budget, to cast a two-thirds majority vote In the General Assembly. No Such problem has arisen and Mr. Rusk is not fearful that it will, but he does emphasize the fact that the United Nations simply cannot fake signi scant action without the support of the members who supply it with resources and have the capacity to act. This does not mean that he wants to shift all U.N. power back Into the bands of the moribund Security Council. Nor does he look with favor on weighted voting in the Cseneral Assembly. But his remarks are sug- gestive of the direction in which the U.N. should be evolving. Nothing would be more certain to destroy Its usefulness in the long run than the making of U.N. policy decisions in disregard of the chief centers of world peace. THE CHANGED WHEAT DEAL WITH RUSSIA writing. Khrushchev objected to President Kennedy's terms that the maxfmum amount of wheat be moved in American ships. Ship- ping rates, it was claimed, were too high. Private arrangements for sales to Russia, it appeared, would collapse unless the U.S. Government underwrote the whole transac- tion and subsidized not only the export wheat itself but probf.bly the rates for ship- ping it to Russia. A LOAN GUARANTEE At this point, the U.S. Government, through Treasury Secretary Dillon and Ex- port-Import Bank officials, proposed a loan guarantee of 75 percent of the purchase price. Congress reacted with a bill offered by Senator MUNDT, Republican, of South Da- kota, to prohibit such a guarantee. The Senate Banking Committee appeared to favor this bill. But after the assassination of President Kennedy itreported the bill un- favorably by a vote of 8 to 7 as a tribute to the late President, although Government fl- 14, 1963, issue of the Des Moines Register entitled The Changed Wheat Deal With Russia." Because many complaints are still be- ing heard about this question, and there is still, apparently, much misinforma- tion abcut it, I believe that the article merits the attention of readers of the CONGRESSIONAL RECORD, and I ask unani- mous ccnsent to have it printed in the RECORD. There being no objection, the article was ordered to be printed in the RECORD, WRrriIER THE U.N.? What is the future of -;he United Nations? In tackling that subject in the second Dag Hammarskjold memorial lecture at Colum- bia University, Secretary of State Rusk (in a speech delivered for him by Assistant Secretary Cleveland) offered two thoughtful suggestions which merit analysis by all friends of the U.N. He does not regard the United Nations as a static organization, but he wants It to gro'iv in ways that will strengthen, and not weaken, its peacekeep- ing function. Actually the United Nations to a more in- dispensable agency now than it was at the time of its birth in San Francisco In 1946. Today there is agreement among all the great powers represented in the Security Council that nuclear war Is utterly unac- ceptable as a means of settling international disputes. Chairman Shrushchev of the Soviet Union acknowledged Inhis New Year's message that war over territorial questions is intolerable and that nationlt should not be the target of direct or indirect aggression. If this generally accepted thesis Is to be mean- ingful. said Mr. Rusk, the U.N. will have to be used as a substitute for war in the settlement of disputes. From this viewpoint the peacekeeping functions of the U.N. ais vital to every state and especially to the great powers. It serves, in the Secretary's words, "not as a rival sys- tem of order but as contributor to, and some- times guarantor of, the common interest in survival." Even if some countries are dis- appointed by the conoequences of a U.N. peacekeeping operation, they still profit greatly from it for the simple reason that survival is better than ,he annihilation that would result from nuclear war. This cogent reasoning has a-special bear- ing upon a problem that looms large in the General Assembly In 19?.4. The Soviet Union has refused to pay its share of the expense of keeping the peace in the Congo and in the Near East. If this policy persists, the U.S.S.R. will lose its vote in the Assembly and critically weaken the U.N. as an adjuster of disputes that otherwise might lead to war. Surely If the Soviet Union Is realistic in its pursuit of insurance against nuclear war, It should be moving toward elimination of this threat to the usefulness of the U.N. The other problem to which Secretary Rusk addressed himself arises from the growth of the U.N. from its original 51 members to its present 113. The onrush of small, new na- tions Into the U.N. has made it theoretically possible for 10 percent of the world's popula- tion, who contribute only 6 percent of the Kennedy's original proposal. ire oar was then defeated in the Senate. This leaves the way open for Government underwriting of the transactions and that is in prospect unless President Johnson were to intervene and Insist on the original terms of President Kennedy. NORMAL BASIS President Johnson might well consider doing this for several good reasons. Russia needs the wheat more than we need to sell it. In any case, trade with Russia is not likely to be a significant long-term factor in our balance of trade. The haggling with the Soviet Government amply illustrates that unless it will pay in gold the opportu- nities for bilateral trade are limited, and even less promising on a multilateral basis. (By Richard Wilson) WASHI'IGTON, D.C.-The wheat deal with Russia has gotten completely off the tracks and in Its present form Is nothing like the original proposal. This proposal was to sell wheat tc Russia for cash or on normal com- mercial terms. It was a subsidized sale In the sense that all such transactions in U.S. wheat in the world market are subsidized, but no more so. The terms were made unmistakably clear b PresI]ent Kennedy The sale was not a Is a rational, normal basis zor Crane wian Russia as we trade with other nations. But this basis does not exist for one simple rea- son, and -.that is lack of confidence. Con- fidence is an Indispensable element in the extension of credit, and more so In inter- national trade than In domestic trade. Lack of confidence in the Soviet Union is why bankers will not extend credit unless it is guaranteed, ir, this case, by the U.S. Government. MUST MEET MARKET TERMS p government-to-government transaction. It What the Soviet Union needs to learn is was a deal between private Q.S. traders with that if it Is to be F. responsible participant the credit, on normal commercial terms, in world trade It must be prepared to do so supplied by private banks. The traders and on the terms of the marketplace. the banters were to take the risk, not the Those terms are that the buyer must con- U.S. Government. vince the seller that he is able and ready to PAYING CASH pay a fair price based on supply and demand. This matte sense. Nikita Khrushchev need- Khrushchev talked that way last summer. But this winter it is a different story, as Is ed wheat. and still needs it. because his farm so often the case from the beginning to the programs are not successful. There are bread end of a negotiation with the Soviet Union. shortages in Russia. Gfdclals here have heard of disorders In connection with bread dis- tribution. AN ASSESSMENT OF THE SITUATION Khrushchev boasted that he had the cash IN SOUTH VIETNAM to pay for wheat. In fact, he is paying 8C percent cash to Canada because he doesn't Mr. MILLER. Mr. President, one of like the commercial interest rate of 4% per the best assessments of the situation in The cent anted ted i8- States month has a a swheat and South Vietnam was contained in a dis- there wheat surplus urpl there a:?e clear advantages to unloading Ii patch by Hedrick Smith which was pub- for cash. This gets rity of the wheat ant lished in the New York Times on Janu- heips the balance-of-payments problem and ary 12. In describing the deteriorating In any can, the Russians can get wheat situation there, the Times article under- elsewhere if we do not sell it to them. So scores that part of the fault lies with the we are not saving communism by selling United States. An American official, wheat to Russia for cash. When Khrushchev saw that the Unitec. according to Mr. Smith, had this com- States was willing, even eager, to approve meat to make: private sales of wheat he began to haggle. Let's face it. A lot of the blame for the He stopped talking of buying for cash, which situation is ours. We financed most of those Is the only safe basis for a deal with Russia. programs, and we signed off on them. This Khrushchevwanted credit. situation was going badly for months and Bankers prudently said they wouldn't ex ? someone wasn't decking up on it for our tend credit without U.S. Government under. side. Approved For Release 2005/01/27 : CIA-RDP66B00403R000200170136-0