WE BUILD OUR COMPETITION WITH FOREIGN AID TAX FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000300090026-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 23, 2016
• Document Release Date: February 21, 2014
• Sequence Number: 26
• Publication Date: July 21, 1964
• Content Type: OPEN SOURCE

Declassified and Approved For Release 2014/02/21: CIA-RDP66B00403R000300090026-3
that he ever planned any speeches there.
Anyway, it is ludicrous to think of GOLD-
WATER in a secret conspiracy with German
rightists.
other brick in what they regard the most
formidable obstacle between GOLDWATER and
the German trip by canceling it. But the
the Presidency; his image as a militaristic,
bomb-rattling advocate of war, an enemy of
peace. The idea of GOLDWATER consorting
with jack-booted Germans in Munich em-
bellishes the image.
basic problem of the bomb-rattling image re-
But for GOLDWATER'S strategists, the CBS
commentary was deadly serious. It is an-
GOLDWATER erased the problems posed by
1964
mains. In fact, it grows every time he
speaks off the cuff. The-cause of this growth
is shared by both the press and GOLDWATER
himself.
- For their part, newsmen pepper GOLDWATER
with more intense questioning about his
military-foreign policy views than is usually
the case, even with a presidential candidate.
For his part, GOLDWATER replies to their
questions in breezy, offhand style, as if en-
gaged in a barracks bull session. GOLD-
WATER'S arrival in San Francisco for the Na-
tional Convention is illustrative. His high
command decided a press conference was
necessary. Unfortunately for GOLDWATER, it
came right after publication in a German
magazine of some barracks-room impromptu
remarks. As soon as GOLDWATER arrived here,
he was rushed to a hotel suite. There, for
45 minutes, staff members' briefed him on
the German magazine article.
To little avail. "We spent 45 minutes tell-
ing him what not to say, and then he went
downstairs (to the press conference) and
said it," confided one aid.
For instance, he reiterated that he would
turn over control in the Vietnamese war to
military commanders. Whatever the merits
of such statements, they enlarge the image
of militarist.
The reason why so many Republicans now
tell pollsters they prefer President Johnson
to GOLDWATER is not the Senator's conserva-
tism. The vague fear that he will provoke
a nuclear holocaust is what really frightens
Republican voters?particularly in the isola-
tionist, peaceloving Midwest.
If this immense hurdle could be cleared,
GOLDWATER might well make a race of it. His
key strategists are even now planning a
scatter-shot campaign against Mr. John-
son (with special emphasis on the Bobby
Baker and Billie Sol Estes scandals and his
89-vote Senate election victory in 1948).
Whichever charges hit home will be pressed.
Simultaneously, Mr. Johnson will be de-
picted as a leftwinger in hopes of winning
the crucial suburban vote. The emphasis
here will be on high taxes and the cost of
living, with the white backlash a silent ally.
But these same GOLDWATER strategists pri-
vately admit that these tactics will have no
more effect than barking at the moon unless
Goldwater's militaristic image is erased.
How to do it? As a starter, virtually elim-
inate press conferences. After his grilling
in that first San Francisco press conference,
- GOLDWATER immediately decreed that there
be no more during the convention. And
there will be precious few between now and
November 3.
This will cut down on barrack-room an-
swers to hostile press questions. But beyond
this negative formula, GOLDWATER must take
positive steps to erase the dangerous image
that now exists. If he does not, an L.B.J.
landslide looms.
CONGRESSIONAL RECORD ? APPENDIX
Report From Congress
EXTENSION OF REMARKS
OF
HON. GRAHAM PURCELL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 21, 1964
Mr. PURCELL. Mr. Speaker, under
leave to extend my remarks, I submit my
report from Congress dated July 27, 1964:
REPORT FROM CONGRESS
(By GRAHAM PURCELL, Representative, 13th
District of Texas, July 27, 1964)
DEAR FRIENDS: I was appalled when I heard
Senator GOLDWATER say in San Francisco, "It
has been during Democratic years that our
strength to deter war has stood still and even
gone into a planned decline." What amazed
me about this statement was that the Sena-
tor displayed such an astounding lack of
information about our Defense Establish-
ment.
If there is any area of our Federal Gov-
ernment in which Americans of all political
philosophies can justifiably take pride, it is
in the operation of the Department of De-
fense.
Is our strength declining? Let's look at
the facts. In the past 3 years we have
accomplished a 150-percent increase in the
number of nuclear warheads in the strategic
alert forces; a 60-percent increase in the
tactical nuclear forces deployed in Western
Europe; a 45-percent increase in the number
of combat-ready Army divisions; a 44 per-
cent increase in the number of tactical fight-
er squadrons; a,75-percent increase in airlift
capability; a 100-percent increase in general
ship construction ?and conversion to modern-
ize the fleet; and an 800-percent increase in
the special forces trained to deal with
counterinsurgency threats.
There is no decrease in our defense capabil-
ity. On the contrary, the United States today
is stronger than it has ever been, and we
maintain the greatest margin of military
superiority over our adversaries than has
been the case at any time since the start of
the cold war.
And all of this has been accomplished in
the midst of a cost reduction program which
is saving the American taxpayer billions of
dollars. Secretary of Defense McNamara re-
cently issued the second annual progress re-
port on his cost reduction program. Here is
what the report shows. Savings of $2.5 bil-
lion were actually realized during fiscal year
1964, compared with the forecast of savings
of $1.5 billion. Savings of $4.6 billion a year
by fiscal year 1968 and each year thereafter
have been set as the new long-range goal.
This is an increase of $600 million per year
over the previous objectives of the cost re-
duction program.
This program, which is helping to achieve
the twin objectives of the required military
strength and the lowest possible cost, has
three parts:
1. Buying only what is needed to achieve
balanced readiness.
2. Buying at the lowest sound price.
3. Reducing operating costs through ter-
mination of unnecessary operations, stand-
ardization, and consolidation.
The spending policies of the Department
of Defense are particularly significant when
we realize that this one Department spends
over one half of the funds in each year's
Federal budget. Over 50 cents out of each
A3805
Federal tax dollar you -pay goes to the task
of keeping our Nation the strongest on earth.
I think it is most significant that this ad-
ministration has placed such emphasis on
the dual responsibility of maintaining and
increasing our defense capability while, at
the same time, making an all-out effort to
streamline and modernize our efforts to get
the most possible benefit from each dollar
spent.
Senator GOLDWATER said in San Francisco,
"We can keep the peace only if we remain
vigilant and strong. Only if we keep our
eyes open and keep our guard up can we pre-
vent war." I am in wholehearted agreement
with that statement. This is why I support
the present administration so strongly in this
area. We are doing just that.
I have, in the past few days, had the op-
portunity of viewing firsthand our defense
capabilities at the "top of the world" in
Alaska and Greenland. This is our first line
of defense in case of nuclear attack from the
Soviet Union. I am proud to be able to re-
port to you that our installations there are
most impressive in their efficiency and ca-
pability. We have the most modern equip-
ment available, and the most dedicated and
well-trained personnel to operate it. My visit
to these installations was most reassuring
and informative.
I hope to be able to tell you more on this
subject in a later newsletter.
Cordially,
GRAHAM PURCELL,
/c)/ijo
We Build Our Competition With Foreig
Aid Tax Funds
EXTENSION OF REMARKS4
OF
HON. BOB CASEY {;
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 21, 1964
Mr. CASEY. Mr. Speaker, I have for
some time been deeply concerned over
the competition we are building abroad
under the foreign aid program for our
American workers and our industries.
s A year ago, the House adopted my
amendment to the foreign aid bill which
would bring some protection to the jobs
and the markets of our taxpayers foot-
ing the bill for this program. Unfor-
tunately, the Senate refused to accept
it, and it was lost in conference.
On June 10 of this year, the House
again saw fit to adopt my amendment.
Most of my colleagues know personally
of industries in their own districts suf-
fering from a deluge of foreign imports.
They have watched, as I have, while our
citizens' tax dollars are used abroad to
build plants and modernize industries
to take away American jobs. The need
for my amendment is imperative to turn
the spotlight of publicity upon the aid
program, so that our people and this
Congress will know just what we are
building overseas.
Mr. Speaker, my amendment is not re-
strictive. It allows ample latitude to the
Executive to carry out this program.
Declassified and Approved For Release 2014/02/21: CIA-RDP66B00403R000300090026-3
Declassified and Approved For Release 2014/02/21: CIA-RDP66B00403R000300090026-3
A3806
CONGRESSIONAL RECORD - APPENDIX
Lest there be any doubt about the need
for it, I call the attention of my col-
leagues to a few statistics.
From 1945 through fiscal year 1963,
we built, modernized or expanded 179
foreign steel plants; and from 1958
through 1963, we built or expanded 31
pulp and paper plants; 24 chemical
plants; 13 aluminum plants; 22 rubber
plants; and we made 27 loans or grants
for studies and to build plants for pe-
troleum industries.
I did not, at that time, have informa-
tion covering one segment of our econ-
omy suffering heavily from foreign im-
ports-our textile industries.
My colleagues from textile manufac-
turing areas, and their taxpaying work-
ers dependent upon this industry for
their livelihood, will,be delighted to know
that in the past 5 fiscal years, we built,
Modernized or expanded 115 textile
plants abroad under this program.
As I advised my colleagues a few days
ago, I wish to update the statistics I
presented to the House on August 22,
1963, on pages 14760-14764 of the REC-
ORD. The statistics I submitted at that
time were as complete as possible, but
as the Library of Congress researcher
pointed out:
The enumeration of total foreign aid to
specific industries can be undertaken with
only limited success ? " The Agency itself
does not compile aid figures according to
industry or by name.
Mr. Speaker, I call to the attention of
my colleagues the following information
for fiscal year 1963 on plants we have
built, modernized or expanded for spec-
ific industries. In addition, I ask my
colleagues to examine the text of my
amendment, and if in their judgment
it is sound and needed to protect the
interests of the workers and industries
in their areas, I urge its adoption by
Congress. The amendment states:
Page 8, immediately after line 10 insert
the following:
"(d) At the end of section 620, add the
following new subsection:
"'(n) No assistance shall. be furnished un-
der this Act for the construction or opera-
tion of any productive enterprise in any
country unless the President determines that
similar productive enterprises within the
United States are operating at a substantial
portion of their capacity and that such as-
sistance will not result in depriving such
United States enterprises of their reasonable
share of world markets. The President shall
keep the Foreign Relations Committee and
the Appropriations Committee of the Senate
and the Speaker of the House of Representa-
tives fully and currently informed of assist-
ance furnished under this Act for the con-
struction or operation of productive enter-
prises in all countries, including specifically
the numbers of such enterprises, the types
of such enterprises, and the locations of
such enterprises.' "
U.S. AID TO TEXTILE INDUSTRIES IN FOREIGN
COUNTRIES FOR FISCAL YEARS, 1958, 1959,
1960, 1961, 1962
The following figures comprise the major
aid totals by loans and grants given spe-
cifically to textile industries in foreign coun-
tries for the 5 fiscal years as noted. Under
each country the various contracts or aid
projects are given individually. Most of the
larger listings is in the form of loans from
the Export-Import Bank. Smaller totals
represent specific projects sponsored by the
Agency for International Development. In
addition to the totals mentioned aid to spe-
cific textile activities may also be hidden in
disbursements for handicraft promotion cen-
ters, technical support, productivity train-
ing, industrial education and development,
home industries, and vocational education.
AID has no breakdown available for distinct
projects readily assignable to the textile
category.
FISCAL YEAR 1958
Austria: Textile machinery $192, 000
Germany: Drycleaning equipment
training 9,000
Greece: Textile training 18, 000
Korea: Silk equipment 200,000
Philippines: Textile equipment 7, 125
Spain: Textile management 9,000
Yugoslavia: Textile processing 41,000
FISCAL YEAR 1959
Brazil: Textile education 27, 000
Greece: Wool textile methods 17,000
Iraq: Industrial sewing 6, 000
Nicaragua: Cotton machinery.__ 53, 368
Paraguay: Cotton machinery 1, 000, 000
Philippines:
Textile dyeing units 41, 000
Textile equipment 195, 000
Textile machinery 15, 116
Cotton mill equipment
98, 352
Spinning machinery
141, 945
Textile machinery 1, 585, 803
Do 1, 661, 381
Spain: Textile production assist-
ance 42, 000
Yugoslavia:
Cotton textile manufacturing 81, 000
Wool processing 140, 000
FISCAL YEAR 1960
Argentina: Textile equipment____ 14, 000
Belgium: Knitting machinery___ 10, 247
Colombia:
Textile equipment 102, 000
Looms 242, 500
Do 60,000
Textile equipment 17, 554
Textile bleaching equipment 86, 900
Looms 25, 607
Cotton equipment 210, 600
Textile equipment 20, 400
Do 126,358
Korea: Silk manufacturing equip-
ment 8,000
Mexico:
Looms 94,901
Do 46,546
Textile equipment \_ 15, 600
Peru:
Textile engineering 33, 000
Looms 39,600
Philippines:
Textile equipment 85, 328
Yarn dyeing equipment 69,325
Textile equipment 394, 203
Do 477, 131
Do 1, 750, 000
Do 4, 397, 495
Yugoslavia: Manufacturing of cot-
ton textiles 89, 000
FISCAL YEAR 1961
Argentina:
Sewing machinery 5,200
Textile mill equipment 86, 000
Do 72,000
Do 18,500
Sewing machinery 186, 000
CENTO: Textile development
( wool) 2,000
Colombia:
Fibers development 25, 000
Textile equipment 45, 500
Do 45,000
Textile washing equipment 36, 000
Denmark: Textile machinery 261, 000
El Salvador: Cotton machinery 315,800
Germany: Hosiery textile machin-
ery 922,500
Guatemala: Fiber development 3,000
_
July 21
Iran:
Cotton machinery $182, 000
Do 90,000
Israel: Textile development 25, 000
Mexico:
Textile machinery 58, 202
Textile equipment 12, 657
Peru:
Textile engineering 6, 000
Textile equipment 55, 602
Spain: Cotton machinery 61, 000
Thailand: Jute mill machinery_..-_ 699, 000
Uruguay:
Textile equipment 467, 500
Looms 16,878
Yugoslavia: Textile Manufacturing.. '7, 000
FISCAL YEAR 1962
Argentina:
Looms 186,000
Do 38,000
Do 121,000
Do 78,500
Do 116, 000
Do 38, 600
Do 268,600
Do 122,000
Do '70, 000
Do 81,500
Do 15r, 000
Sewing machinery 35, 000
Do 46,500
Textile machinery 11,500
Looms 93, 000
Yarn machinery 17,500
Textile equipment 218, 000
Sewing machinery 27, 000
Brazil: Looms 61,200
Colombia: Fiber development 17, 000
El Salvador: Textile equipment 15, 693
Guatemala: Cotton equipment 15, 236
Honduras: Cotton equipment 207, 436
Mexico:
Textile machinery 352, 000
Cotton equipment 67, 195
Looms 51, 181
Textile machinery 25, 517
Looms 42, 635
Do 27,818
Nigeria: Textile plant 2, 000, 000
Spain:
Textile training 27, 000
Do 5,000
Cotton machinery 48,053
Do 43,572
Do 48,881
Do 48,053
United Kingdom: Yarn process-
ing equipment 23, 768
Uruguay:
Textile equipment 31, '743
Looms 87, 181
Venezuela:
Looms 41, 135
Do 122,524
Do 120, 640
Yugoslavia: Wool textile train-
ing 6,000
Sources: Export-Import Bank, periodical
loan releases. AID project books by fiscal
years.
U.S. AID TO SPECIFIC INDUSTRIES IN FOREIGN
COUNTRIES BY GRANTS AND LOANS,FOR FIS-
CAL YEAR 1963
The following figures provide the basic
listing of eight industries in foreign countries
which have received some form of U.S. aid
either by loans or grants during fiscal year
1963. Many of the larger loans were pro-
cured through the Export-Import Bank while
aid projects were initiated through the Agen-
cy for International Development. In the
latter instance itemized totals per industry
- and per country are not specified. Actual
aid to the industries covered may also be in-
cluded among disbursements for productivity
centers, mining developments, research cen-
ters, metals fabricating plants, engineering
laboratories and services, technical support,
Declassified and Approved For Release 2014/02/21: CIA-RDP66B00403R000300090026-3
1964
Declassified and Approved For Release 2014/02/21: CIA-RDP66B00403R000300090026-3
CONGRESSIONAL RECORD - APPENDIX
metallic and nonmineral surveys, and indus-
try development and project assistance. The
actual aid tb the industries in question may
therefore be higher than noted.
ALUMINUM INDUSTRY
Ghana: Volta Aluminum Co___ $55,
India: Hindustan fabricating
plant 5,
CHEMICAL INDUSTRY
000,
000,
000
000
India Expansion of chemical
facilities 7,
650,
000
Mexico: Soda ash plant 4,
000,
000
IRON AND STEEL
INDUSTRIES
Afghanistan: Iron ore resources
210,
000
India:
Bokaro steel plant
750,
000
' Steel training
580,
000
Forging factory 3,
908,
000
Locomotive plant 19,
000,
000
Korea: Iron ore production
37,
000
Spain:
Foundry services
10,
000
Expansion of steel plant 6,
600,
000
Japan:
Iron and steel facilities 26,
000,
000
Expansion of steel facilities 18,
500,
000
Philippines: Iron ore concentra-
tor mills 5,
000,
000
Italy:
Expansion of steel plant 25,
000,
000
Steel rolling plant 5
000
000
Steel mill expansion 50,
000,
000
Steel machinery materials_ 130,
000,
000
Chile: Expansion of steel plant_ 8,
300,
000
Mexico: Expansion of steel plant 16,
900,
000
Peru: Iron ore facilities 1,
250,
000
PETROLEUM INDUSTRY
Pakistan: Gas treating plant._ _ _ 2,
800,
000
PLASTICS
Nil.
RUBBER INDUSTRY
Guatemala: Rubber development.. 26,
000
Thailand: Tire and tube plant___ 5, 000,
000
Dominican Republic: Rubber
goods production
24,
600
PULP AND PAPER INDUSTRY
Iran: Lumber for pulp
18,
000
Nepal: Forest products develop-
ment ?
244,
000
Egypt: Cellophane plant 3,
000,
000
Laos: Lao photo press 84,000
Philippines:
Pulp and paper mill $100,
Machinery for pulp making
Uruguay: Pulp and paper ma-
000
74,200
chinery
450,
000
TEXTILE INDUSTRY
India; Rayon tire cord 9,
800,
000
Spain: Textile production
27,
000
Yugoslavia: Wool textile produc-
tion
6,
000
India: Yarn manufacturing plant_ 4,
'700,
000
Greece: Cotton yarn_mill 3,
000,
000
Mexico:
Looms
42,
840
Do
33,201
Sources: Export-Import Bank: loans fiscal
year 1963.
AID: Project Survey for fiscal year 1963.
GOVERNMENT PUBLICATIONS FOR SALE
Additional copies of Government publica-
tions are offered for sale to the public by the
Superintendent of Documents, Government
Printing Office, Washington 25, D.C., at cost
thereof as determined by the Public Printer
plus 50 percent: Provided, That a discouht of
not to exceed 25 percent may be allowed to
authorized bookdealers and quantity pur-
chasers, but such printing shall not inter-
fere with the prompt execution of work for
the Government. The Superintendent of
Documents shall prescribe the terms and
conditions under which he may authorize
the resale of Government publications by
bookdealers, and he may designate any Gov-
ernment officer his agent for the sale of Gov-
ernment publications under such regulations
as shall be agreed upon by the Superintend-
ent of Documents and the head of the re-
spective department or establishment of the
Government (U.S. Code, title 44, sec. 72a,
Supp. 2) .
PRINTING OF CONGRESSIONAL RECORD
EXTRACTS
It shall be lawful for the Public Printer
to print and deliver upon the order of any
Senator, Representative, or Delegate, extracts
from the CONGRESSIONAL RECORD, the person
ordering the same paying the cost thereof
(U.S. Code, title 44, sec. 185, p. 1942) .
-A3807
CONGRESSIONAL DIRECTORY
The Public Printer, under the direction of
the Joint Committee on Printing, may print
for sale, at a price sufficient to reimburse the
expenses of such printing, the current Con-
gressional Directory. No-sale shall be made
on credit (U.S. Code, title 44, sec. 150, p.
1939).
RECORD OFFICE AT THE CAPITOL
An office for the CONGRESSIONAL RECORD,
with Mr. Raymond F. Noyes in charge, is lo-
cated in room 11-112, House wing, where or-
ders will be received for subscriptions to the
RECORD at $1.50 per month or for single
copies at 1 cent for eight pages (minimum
charge of 3 cents) . Also, orders from Mem-
bers of Congress to purchase reprints from
the RECORD should be processed through this
office.
CHANGE OF RESIDENCE
Senators, Representatives, and Delegates
who have changed their residences will please
give information thereof to the Government
Printing Office, that their addresses may be
correctly given in the RECORD.
LAWS RELATIVE 'TO THE PRINTING OF
DOCUMENTS
Either House may order the printing of a
document not already provided for by law,
but only when the same shall be accompa-
nied by an estimate from the Public Printer
as to the probable cost thereof. Any execu-
tive department, bureau, board or independ-
ent office of the Government submitting re-
ports or documents in response to inquiries
from Congress shall submit therewith an
estimate of the probable cost of printing the
usual number. Nothing in this section re-
lating to estimates shall apply to reports or
documents not exceeding 50 pages (U.S.
Code, title 44, sec. 140, p. 1938) .
Resolutions for printing extra copies, when
presented to either House, shall be referred
immediately to the Committee on House
Administration of the House of Representa-
tives or the Committee on Rules and Admin-
istration of the Senate, who, in making their
report, shall give the probable cost of the
proposed printing upon the estimate of the
Public Printer, and no extra copies shall be
printed before such committee has reported
(U.S. Code, title 44, sec. 133, p. 1937).
Declassified and Approved For Release 2014/02/21: CIA-RDP66B00403R000300090026-3