CONGRESSIONAL RECORD - HOUSE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500120015-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: September 22, 2003
• Sequence Number: 15
• Publication Date: July 6, 1965
• Content Type: OPEN

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July 6, 1965 CONGRESSIONAL RECORD -
Though we try to understand the atti-
tudes of some of our more critical friends
in Europe, and though we do not insist on
maintenance of the status quo, we are
casting a careful eye on the various proposals
for new forms of reserve creation. In their
anxiety to curb the ability of the United
States to incur balance of payments deficits,
some of our friends would turn back the
clock of monetary history toward an ex-
cessive reliance on gold. Such a system,
whatever its specific technical form, would
impose on the world too restrictive a mone-
tary climate, which could inhibit interna-
tional trade and economic growth.
The international monetary system must
be flexible rather than rigid. , It must be
adaptable to the differing and, over time,
changing needs of the various countries. It
would be a great mistake to act as if all
countries were alike in their size, structures,
policies, and values. Any change in the
monetary system must recognize the great
diversity that exists among countries, even
among the major industrial countries. And
any such change must be an evolutionary
one, preserving and building upon the
valuable elements of the existing system.
In particular, any change in the interna-
tional payments system must respect the
monetary sovereignty of individual coun-
tries. I have stressed that monetary policy
in the United States cannot be formulated
in isolation from the world beyond our
borders; we must reconcile domestic and
balance of payments objectives in pursuing
the art of central banking. But as long as
nations remain as independent entities, with
separate power of decision over economic
policies, monetary policy too must remain
in national hands. And, within the context
of international financial cooperation, the
right of each country to make bilateral ar-
rangements should be preserved. It is no-
table, in all these connections, that member-
ship in the International Monetary Fund,
and participation in supplying and using the
Fund's resources, is quite consistent with
the retention of monetary sovereignty.
The central role that the International
Monetary Fund now fills makes it a natural
repository for any new monetary functions
that may merit consideration. Gold tranche
positions in the Fund, which are usable
virtually on demand by countries in deficit,
are already widely regarded as reserve assets.
If and when the need is felt for additional
reserve assets, there is much to be said for
adapting the Fund mechanism to this pur-
pose and building upon its tested and re-
spected institutional framework. To rely
on such an evolution of the International
Monetary Fund, rather than to establish a
rival center In the international monetary
field, would help to assure that any innova-
tions undertaken would contribute to world
prosperity without disturbing market proc-
esses, violating national sovereignty, or dis-
nist operations in Latin America. One
of the first journalists to arrive in the
Dominican Republic after the revolt that
brought In U.S. troops, Mr. Bethel, who
is also executive secretary of the Citizens'
Committee for a Free Cuba, Inc., gives
an in-depth report in the following three
articles which appeared in the Washing-
ton Daily News, June 21, 22, and 23. The
articles follow:
How COMMUNISTS TOOK LEAD IN REBELLION
FROM THE START
(By Paul D. Bethel)
(Paul D. Bethel, a former U.S. Foreign Serv-
ice Officer and an expert on Communist op-
erations in Latin America, was among the
first journalists to arrive in the Dominican
Republic after the revolt that brought in
U.S, troops. Here he reveals the the extent
of Communist leadership in the rebellion
and how it influenced the turn of events
there in late April and May.)
Today, as the stalemate in the Dominican
Republic seems to be edging-with OAS prod-
ding-toward some sort of an uneasy agree-
ment, it is useful to review and clarify the
confused events which brought the country
to its present position.
How did the revolt actually start last April
24? Who were the prime movers? Who are
the "good guys"? Who are the "bad guys"?
Was U.S. action really justified? What is
U.S. policy today?
Now there is impressive evidence that the
Communists were in on the rebellion from
the very beginning. They did not snatch the
revolt from the hands of deposed President
Juan Bosch's party, the PRD, as has been
widely supposed. Both the PRD and the Reds
snatched it from the military.
CALLED FOR REVOLT
On March 16, 5 weeks before the April 24
revolt, the central committee of the PCPD
(Communist Party) issued a manifesto. It
called for "the return of Prof. Juan Bosch
to legitimate control of the government," and
urged "the working people" to "unite and
fight to conquer to eliminate the economic
domination by North American imperialism
and to establish Socialist democracy which
puts the wealth in the hands of the people."
The manifesto thus endorsed Juan Bosch
as surest means of establishing this "Social-
ist democracy," and incited the people to
violence and to put him back in power.
"The entire population must fight in the
streets, in the squares, in the factories, in
the fields, for the return of Juan Bosch as
the head of the constitutional government,"
the manifesto said.
KNEW HE WAS THROUGH
removed Luna and Roman from their com-
mands and fired Peguero.
Reid had thus alienated the three pillars
needed for support-the military, labor,
business. Bosch's PRD and the Communists
organized and waited for Reid's ouster.
Ambassador W. Tapley Bennett told a
group of us on April 29 that the PRD and
the Communists had been collaborating. He
said: "The Communists worked with Bosch's
PRD for months. They were prepared well
in advance of Reid's overthrow."
BLUEPRINT
This was the importance of the March 16
Communist manifesto. It was the blueprint
for the events which took place on April 24
and thereafter.
I also learned from an unimpeachable
source that Bosch met with two members of
the Castro-Communist "14th of June Move-
ment" in San Juan in early March. These
two-Victorian Felix and Rafael Taveras-
got Bosch's promise to Cooperate with the
Communists.
Taveras is a member of the Central Com-
mittee of the party. He arranged to teape a
question-and-answer session with Bosch.
The tape was taken by them to Santo Do-
mingo and turned over to Jose Brea, secre-
tary of finance of Bosch's PRD. He also owns
the radio station, Cristal.
It was read over the air April 9 on the pro-
gram "Here is Santo Domingo" sponsored by
the 14th of June Movement.
Bosch's message was anti-American, rab-
ble rousing and pro-Communist. The facts
of the story have since been confirmed by
official Washington sources.
THE HANDS OF COMMUNISTS PULLED STRINGS
OP REBELLION
(Yesterday, Reporter Paul Bethel named
the two Castro-Communist leaders who met
with deposed Dominican President Juan
Bosch early last march, and got Sr. Bosch's
promise to cooperate with them. He de-
scribed how the Communists then issued a
manifesto last March 14, 5 weeks before the
April 24 revolution started, calling on the
people to use force to put Sr. Bosch back in
power, to destroy Yankee imperialist domi-
nation and establish a Socialist democ-
racy, paying for a radio broadcast of it with
Communist Party funds. Today he gives
additional evidence, telling how the Bosch
forces and the Communists stepped in to
maneuver the army revolt into a revolution-
ary grab for power.)
(By Paul Bethel)
Another fact cementing the U.S. case that
the Dominican Republic's revolt which
started last April 24 was Communist inspired
is presented by Jose Rafael Molina Urena,
Bosch's provisional president during the first
4 days of the rebellion.
St. Molina Urena called on our U.S. Am-
bassador Tuesday night, April 27, and was,
in the Ambassador's words, "a thoroughly
defeated and dejected man who admitted to
me that the rebel movement was In the
hands of the Communists." Sr. Molina took
asylum in the Colombian Embassy that same
night.
Timing was a key element in the rebellion,
and it shows there can be little question that
the Communists, Sr. Bosch, and Bosch's PRD
collaborated from the very beginning.
The pocket-sized rebellion of the military
officers on April 24 merely provided the open-
ing. The collaborators took it. Here is what
The Communist Party knew that Donald
Reid Cabral, president of the civilian junta,
was unpopular and that his overthrow was
the national economy, struggling under
Reid's austerity program. Rational as his
policies were, they had made him no friends,
either in business or labor.
Then there was the military.
Under U.S. guidance, Reid cracked down
hard on graft and corruption in the armed
forces-the first Dominican leader with the
courage to do so. Bosch never challenged
the generals nor made any effective moves
to curb corruption.
Under Bosch, the three big shots In the
contraband racket were the National Police
Chief, Peguero Guerro; Air Force Can. Atila
Luna and Army Can. Vinas Roman. They
ran everything, from nylons to dope, and
put millions of dollars into their own
pockets.
CLEANED UP
Reid dumped all three generals early this
year in a cleanup of the Government. He
HANDS OF C09MHRI STS IN DOMINI-
CAN REPUBLIC REVOLT REVEALED
(Mr. CRAMER (at the request of Mr.
DEL CLAWSON) was granted permission
to extend his remarks at this point in
the RECORD and to include extraneous
matter.)
Mr. CRAMER. Mr. Speaker, there has
been a great deal of debate aver the part
played by the Communists in the recent
revolt in the Dominican Republic. Nu-
merous individuals, opposed to the U.S.
policy in that country, have charged that
the Communists played no part in the
revolt. This contention has been ably
refuted in a series of articles written by
Mr.'Paul D. Bethel, a former U.S. Foreign
Service Officer and an expert on Commu-
At 1:30 p.m. on that fateful Saturday, ru-
mors began to fly in Santo Domingo's slums
that the Reid Cabral junta had been over-
thrown. People began to pour into the
streets.
A few hours earlier, Reid had dispatched
Army Chief of Staff Gen. Marco Rivera Cuesta
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15112 CO=NGRESSIONAL RECORD - HOUSE July 6,
to the 27th of February Barracks to sack two Wessin sent a personal representative to meet 1st Party, the 14th of June Movement, among
officers for graft and disloyalty. Instead Gen. with the rebels of the 16th of August Bar- others. All are pro-Castro organizations.
Rivera Cuesta was taken prisoner. Packs. Jointly, they were to set up a care- The FRD provided the all-important front,
Immediately, the 16th of August Barracks _taker junta composed of rebels and loyalists
threw in with the rebels, and the revolt was until elections were called. eaTBEEr GANG
on. (The barracks are named after famous The general's emissary was met by banners Musclemen for the rebels are the turbas-
dates in Dominican history). carrying a slogan from Communist manifesto street: gangs, something like those who ter-
Why the revolt? issued the month before: "We are for the re- rorize subway riders in. New York City. They
Officers of rank lower than general ap- turn of President Bosch at the head of the .'?o do dirty work for whoever happens to
plauded Reid's moves against Roman, Pe- Constitutional government." This was the ho=d power in the Dominican Republic, and
guero, and Luna. It gave them a chance to dramatic switch from the agreed-upon elec- will pay them.
move up, tions, maneuvered by the Bosch PRD-Com- During Trujillo's time, police gave street
But when Reid reached down, as he did munist combine. gangs .m=issions to beat up or intimidate Tru-
that Saturday, to fire officers of relatively The emissary also found that a large num- jillo foes to keep the populace in line.
junior rank, those same officers rebelled, her of the army rebels had slipped into the During the April revolt, the turbas were
They saw in his move a plan to crush the center of the city where the political and toed by Communist organizers. Their mis-
power of the military. military decisions were being made by the s` ,n-to loot, kill, steal, create chaos, inti-
NOT CIVIL WAR PRD-Communist combine. midate the populace, exterminate those not
It is important to note at this moment, The day before, mobs seized Rad' Santo it sympathy with rebel aims.
however, that the military insurgents had Domingo. Known Communist leaders- Thus did hate and murder stalk rebel-held
no intention of expanding their pocket-sized among them Castro-Cuban Luis Acosta.- streets during the first few days.
rebellion into a civil war. They merely harangued the populace to "return President Most f, -?Sgn reporters arrived in Santo
wanted to get rid of Reid and the threat Bosch at the head of the constitutional gov- Domingo well over a week after the initial
be posed to their ernment." outbreak of the revolt. By that time most
privileged position. of the bodies had been removed. Since
Gen. Elias Wessin y Wessin, a career mill- CONFUSED IMPRESSION
re-
tary officer, untainted by graft or corruption, This was early-2:30 p.m. on Saturday. po rrte were S. Embassy bodies in abundance, o Ile
stepped in and tried to mediate the dispute. - People were paraded across the TV screens reporters sc scoffed sources, e pots. hostile
:a those olu
General Wessin y Wessin was feared by the dragging rifles, armed to the teeth, to give e
Communists and respected by his dolleagues. the impression that everyone was supporting that hoes ven the shovels Peace Corps given pvolunteers people for
The rebels refused to surrender to General he rebellion. Another purpose was to throw backyard h and d gardening to the bury foe
Wessin y Wessin, gambling that he would he loyalist armed forces into confusion, by , nd mor mor ewee were used tbury the
that Those
not push them too hard. They were right. Televising people in uniform with the civil- volunteers more
also were.
leaflets flets same
had The general felt that Reid's moves would :ans. The broadcasts did the job. been reported mat had
weaken the military establishment which In fact, control of radio and television sa a~seed around
before the h instruc-
could only only play into the hands of the Com- early gave the Communists the country. several
tions on to ora t he revolt, t
:}n how to make Molotov cocktails cktails out
munists. He came up with a formula to set `The confusion in the loyalist ranks was enor- of Cocoa-Cola bottles and gasoline.
up a joint military junta-rebel and loyal- nous. Skillful radio and television propa- Much other evidence of Communist domi-
1st-and call for elections within 90 days, i anda made it appear that the country al- nation of the rebel movement comes from
RESIGNATION ready was in rebel hands. Havana.
General Wessin y Wessin says he knew that As late as 10 p.m. Sunday the Dominican FIDEL ISTA
Reid could al never pull through h the April e that navy didn't know where It stood. Comdr.
g ltivero Caminero told a junior commander: For example, on May 11, I found that
and urged Reid a resign "rather than see Rafael MYle is al
the country plunged ed into chaos." ~ am with the people but against commu- j ( ias "Pichirilo") was in Santo
y p g hflsm." Broadcasts that the navy had thrown Domingo with the rebels. Mejia was helms-
On May 3, while in hiding in Santo Dam- in with the rebels were apparently inter- man fOr the yacht Gramma which took
Ingo; Reid said: "The Communists used the preted by the commodore to mean that the Fidel Castro and 82 mnen from Mexico to
resentment of the military toward me and
joint rebel-loyalist military junta had been Cuba, xinere they landed i;ue on December 2,
were able to undermine civilian control." Established. There were no clear instruc- 1956, and. took up the e guerrilla fight against
Nevertheless, the doughty Scotch-Domini- Gen. Fulgencio Batista.
can made a stab at staying in power, the over- Cf tfrom the San Isidro base a the politics
he moment simply because Gen. Wessin Mejia a Dominican. by birth.
Cuban citizenship, as well, and is a captain
riding the advice of General Wessin y Wessin. y Wessin was trying to sort out the tangle. He holds
captain
That Saturday night ht he broadcast an ulti- Adding to the disorganization on Sunday in Castro's rebel army, a graduate of guer-
matum to the rebels. They were to sur- tae National Police set free both criminals rills training and political agitation schools
render by 5 a.m.. the next day, he said, or and political prisoners. Rebels rushed in Cubsi..
they would be attacked by loyalist forces. The extent of Castro-Communist influence
teem to the TV station saying the police
But there were no loyalist forces; General in the rebel camp is fully documented in re-
Wessin Wessin refused to back Reid Cabral had gone over to the side o: the "peoples'
y movement." Powerful propaganda. Tre- ports by John Bartlow Martin, President
any longer and Reid was through. Johnson's special envoy. He named names.
And when General Wessin Wessin sent a n endcus confusion.
Y He described their activities, ranging from
personal representative to meet the rebellious TRUCKS WITH ARMS introducing large sums of political money
officers on Sunday, the second day of the But it was organized confusion. Four into the country to running "a school for
revolt, in order to arrange details for a t:'uckloads of arms roared into Independ- Communist indoctrination." All were
caretaker junta composed of both loyalists e: ice Park in the rebel-held portion of Santo trained in Cuba. Some had received train-
and rebels until an election could be held, Domingo. As one Western diplomat stated: ing in Russia and China, as well.
he was met instead with banners demand- ":,saw Peiping Communists, Castro Commu- A five-man factfinding commission of the
ing Sr. Bosch's return. The election deal was nets, and Moscow Communists passing out Organization of American States gave a dev-
off. General Wessin y Wessin had been arms to criminals and to the street gangs." astating. report on Communist and Castro-
crossed. The Bosch Communist combine These, then, were the armed civilians re- Communist rebel activities. Later the State
had gotten to the rebels. fE reed to in news accounts by overly objet- Departni.ent furnished a, list of 77 Commu-
tite reporters. Gen. Wessin y Wessin's offi- nist leaders.
THE REBELS IN COLD BLOOD SENT 600 CIVILIANS cial log says the civilians got the automatic Several Senators, Including Alaska's ERNEST
To DEATH weapons, the soldiers only the hand weapons. GRIIENING and Connecticut's THOMAS DODD,
(How two Castro-Communists made a deal Thus the rebels gained 2 precious days, are critical of some of our press for not re-
with deposed President Juan Bosch 6 weeks enabling them to secure and to hold the porting those findings.
before the Dominican Republic's revolution central part of the city. About noon, on Sunday April 25, the rebel
was
shas been told in a previous in- radio announced that Juan Bosch had desig-
was started
ent, Saturday night and early Sunday morning
Gan; Wessin y Wessin's tanks moved across nated Jose Rafael Molina as "provisional
(Mr. Bethel also outlined how, following tt.e Duarte Bridge over the Ozama River to constitutional President."
the deal, the Communist manifesto was curb the mobs, a few hours before he was COLDBLOODED
broadcast urging the people to overthrow the tc learn he had been doublecrossed. He During the next 2 days, the rebel radio
incumbent, interim President Donald Reid ccnfidently expected the army rebels to join coldbloodedly directed civilians to go to
Cabral, and reinstate Sr. Bosch. Today, he him in cleaning out the mobs In the city. areas Which the loyal Dominican Air Force
describes how the Communist-Bosch coali- Instead, his troops were faced by those same leaflets IlLad warned would be bombed. It is
tion doublecrossed and outmaneuvered the rebe:s now working together with the orga- not known how many were killed. The U.S.
army, to take charge of the rebellion and niters and the mobs. This blow to loyalist Embassy's estimate was 1,800 casualties, 600
transform It into a revolutionary grab for morale was nearly fatal. dead.
power With Bosch as their front.) Communist and Leftwing Parties openly On Sunday night, it looked as if the rebels
(By Paul D. Bethel) erdorsed the revolt and called for the return had the upper hand.
On Sunday, April 25, the second day of the ofSr. Bosch-the MPD (Popular Democratic Rebel provisional President Molina first is-
bominican Republic revolt, Gen. Wessin y Movement), the Communist Popular Social- sued himself two pistols and then signed
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July 6, 1965 CONGRESSIONAL RECORD - HOUSE
several decrees to give the Impression the
loyalist cause was lost.
But by Tuesday morning, the Air Force's
Vampire jets had silenced the rebel radio,
the navy was lobbing shells into the presi-
dential palace, and the loyalists held.
By Tuesday night, provisional President
Molina had sought asylum.
The next day, Wednesday, April 29, the
U.S. marines began to arrive, and the PDR-
Communist strike for power had bogged
clown in a tiny enclave in the center of
Santo Domingo, where it still is today.
(Mr. BROYHILL of Virginia (at the
request of Mr. DEL CLAWSON) was
granted permission to extend his remarks
at this point in the RECORD and to in-
clude extraneous matter.)
[Mr. BROYHILL of Virginia's remarks
will appear hereafter in the Appendix.]
WHAT ABOUT OUR COINS?
(Mr.BATTIN (at the request of Mr.
DEL CLAwsoN) was granted permission to
extend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
Mr. BATTIN. Mr. Speaker, next week
this body is scheduled to receive a bill
that would result in the demise of our
silver coins. I consider the proposal to
mint coins without silver as wholly un-
necessary and undesirable and only an-
other step in the debasement of our coins
and the devaluation of our currency.
Mr. Addison Bragg, a staff writer for
the Billings Gazette, has written an ex-
cellent article, more or less an obituary
of our coins. I recommend the article to
those Of you who are concerned with the
probable disappearance of our silver
coins when the new funny money is in-
troduced to the American people.
I am part of a generation that has
heard the stories of the disappearance of
our gold coins so perhaps Mr. Bragg's
article will prove the adage that truth
is stranger that fiction.
Following is the article from the July
1, 1965, Billings Gazette:
AND THEN IT WAS LEGEND-GRANDPA, TELL US
AsouT MONEY AGAIN
The old man sat by the window and
watched as his grandchildren played at their
games, the same games, he recalled, that he'd
played once a long time ago.
The eldest, tiring as even the eldest of
young grandchildren do, ran to the big
leather chair and thumped her fists on the
arm impatiently.
"Tell us, grandpa," she said, "about how it
was when you were little."
The old man smiled.
"Do you want to hear about the planes,"
he asked. The little girl shook her blonde
curls.
"Tell us," she said, as the others deserted
the jacks and the ball rolled forgotten under
a chair, "about the money."
He pulled a worn and shiny billfold from
his pocket and from it took an object, care-
fully wrapped in tissue paper.
"We've seen that before, grandpa," the boy
said. "And we've heard you tell us about
how your father gave it to you when you
were a little boy. Don't tell us about the
big ones. Tell us about the little moneys
with funny names."
"First," said the old man, "there was a
penny. It was made of copper and if you
rubbed it back and forth on a carpet it would
shine."
"Susan's daddy's got a penny," the girl
said. "I saw it once."
"Then," the old man went on, "there was a
nickel,
The boy remembered reading about nickels
with buffalos on them and asked his grand-
father if he'd even seen one. The old man
shook his head.
"I spent a'nickel that had Jefferson's head
on one side," he said. That was before he
realized what it was worth, he added.
The girl leaned on the chair arm. "Tell
about your favorite," she said.
The dime, her grandfather continued, was
the smallest coin made from silver. "Your
grandmother had one set in a ring," he said,
"but it was stolen long before you children
were born."
Dimes were fun, said the old man.
"You could buy candy bars, make phone
calls, or get coffee with them," he told the
children. Some people, he added, even
used dimes to tighten screws.
The children like to hear about the quar-
ters and the half-dollars and laughed every
time the old man called them "two-bit" and
"four-bit" pieces.
He'd never seen either, though.
"My father said he'd kept one of each for
me if he'd known in time-but he just
went downtown one morning and they were
all gone." .
The quarter and the half, he said, were
the first to go. "Except," he added, "the big
silver dollars. I remember my father telling
me when he was your age people used to
carry them around and spend them just like
regular money today."
"Tell about how money had God on it,"
prompted the boy.
And the old man told of how each piece
of money carried the words, "In God We
Trust" until one year when it was dropped
from a $1 bill and eventually disappeared
altogether.
The two children now wanted to look at
their grandfathers' big dollar. He took it
out, unwrapped it and held it in the sunlight
and nodded when the boy asked if he could
touch it.
"Gee," both children said, wide eyed.
The old man wished he owned two. It
would be nice, he thought, if he could leave
one for both the boy and the girl. But it
was impossible.
The silver dollar always went to the eldest
son. That's how his father had gotten it.
(Mrs. BOLTON (at the request of Mr.
DEL CLAWSON) was granted permission
to extend her remarks at this point in the
RECORD and to include extraneous
matter.)
[Mrs. BOLTON'S remarks will appear
hereafter in the Appendix.]
THE INDEPENDENT SCHOOLS TAL-
ENT SEARCH-NEW ENGLAND-
ERS' IDEA BECOMES A NA-
TIONAL PROGRAM
(Mr. CONTE (at the request of Mr.
DEL CLAWSON) was granted permission to
extend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
Mr. CONTE. Mr. Speaker, throughout
the history of this country we have wit-
nessed the birth of many ideas in New
England which have become national
programs, many of which have altered
the course of action taken by our Gov-
eminent and given a better way of life
to all of our people. So it is with a most
encouraging program now being admin-
15113
istered by the Office of Economic Oppor-
tunity under the able direction of Sar-
gent Shriver, Director of the Nation's war
on poverty.
The program is the independent
schools talent search. Born and nur-
tured in New England, since its inception
the program has been characterized by
service to youngsters from many sections
of the United States. From its earliest
days, Dr. Howard L. Jones, president of
the Northfield and Mount Hermon
schools in East Northfield, Mass., and
chairman of the original group of 60 pri-
vate schools that founded the program,
recognized that this program could set
a pattern which would be of major as-
sistance to our national efforts to eradi-
cate poverty in this country.
Under the chairmanship of Dr. Jones,
these private schools joined together to
seek out capable young persons from low-
income homes who had at least 2 years,
and preferably 3, of secondary schooling
to be accomplished. Their potential
academic abilities, given the opportunity
to develop and apply their talents, were
the only credentials required for their
admittance to the program, which was
a response to the oft-repeated statements
from colleges and universities that they
would be happy to enroll more such
young ladies and gentlemen, if they could
find qualified applicants.
Two field representatives were em-
ployed by ISTSP, as it was also known
at that time, who traveled throughout
the country in search of promising stu-
dents who were, and would continue to
be, academically frustrated by depriva-
tion in their homes if no assistance were
to be made available to them.
In January of this year, there were
more than 75 students enrolled in the
member schools and, by any measure,
the reports on their progress were most
encouraging. Next year these schools
hoped to add at least a hundred more
students. But found the enthusiasm and
response to the program frustrated by
severely limited financial aid budggts.
Each school was faced with raising
more than $2,500 each year for each one
of these students. As all of us here to-
day are aware, virtually every private
school in the country today operates un-
der serious financial limitations. For-
tunately, for the youngsters whose po-
tential talents called out, not only for
the continuation of this program, but
for its expansion, Dr. Jones, with the
support of the member schools of the
ISTSP, brought.their case to my atten-
tion and to the attention of many of my
colleagues in the Congress and pertinent
Government officials here in Washing-
ton.
I am extremely gratified by the re-
sponse which greeted this idea in Wash-
ington and by the inclusion of this pro-
gram as a part of the worthwhile and dil-
igent efforts of the Office of Economic
Opportunity. I strongly urged this ac-
tion and my participation in assuring
the continuation and expansion of this
bold program was an easy task, for the
program spoke so ably for itself.
Today, under the OEO program, there
are 45 ninth-grade boys attending classes
at Dartmouth College and 35 ninth-grade
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CO=SGRESSIONAL RECORD - HOUSE July 6, 1965
girls attending Mount Holyoke. Those
students who successful complete the in-
tensive academic curriculum in math and
English at these colleges this summer will
be admitted with a full scholarship to 1
of the 70 private preparatory schools
which make up the independent schools
that are now involved in the talent
search. This summer's program is in the
nature of a pilot project for the national
application of the program of Dr. Jones
and the group of individual schools that
participated under his leadership.
I am confident that the success
achieved by these original cosponsors of
this idea will be duplicated this summer
and serve as a springboard for year-
round programs that are necessary today
to prepare youngsters from low-income
homes for the competitive business of
college admission. It is heartening to me
to see the hopes of these New Englanders
come to fruition for the benefit of all the
worthy young men and women of this
country who would otherwise be deprived
of this opportunity and on whose shoul-
ders will be placed the burden of the
hopes and ambitions of all of us for the
years ahead.
In the words of Dr. Jones:
We know that education is the key to un-
locking the doors of opportunity to thou-
sands of presently deprived youngsters. The
independent schools talent search program
can play an important role in moving toward
a whole new era of opportunity for persons
who have not heretofore had the chance to
become what they might become, given the
finest possible education opportunities.
There could be no more apt an illustra-
tion of the concern of our independent
schools for making their resources avail-
able to all. The contribution which it is
now possible for the academicians to
make, I believe is indeed an exciting
prospect. The benefits of this program
will be reaped by all in terms of future
doctors, scientists, lawyers, and leaders of
the academic, political, and arts com-
munities of the United States.
It is a singular source of pride for me,
as I am sure it is for all bay Staters and
New Englanders, that the Initiative of
the renowned and respected academic
community of this region has made still
another in the long line of contributions
in the national interest.
,payments. To cut them off might cause
hdo not question the long-run need-of
liquidity,-either in dollars or some other
form. The fact Is that at the moment,
liquidity is adequate. Almost all experts
Agree on this fact. The need today is
twofold: First, the United States must
eliminate its deficits, which are piling up
,excessive dollars abroad which represent
a potential call on our gold stock; and
-second, there must be international
monetary reform to provide for a more
-orderly and rational method of supply-
ing world liquidity needs when the U.S.
deficit has been eliminated.
Mr. Rowen's position needs more care-
ful examination, however. Have we
.licked the deficit already? Are we put-
ting a squeeze on our friends overseas?
.,Has our capital restraints program been
-too successful? I believe Recent balance-
--of-payments figures indicate that the an-
swer to all three questions is "No. "
-- As has been reported in the press, the
balance of payments will show a small
surplus in the second quarter. This
'ti,rises, however, not so much from the
restraints on capital outflows as from
the higher than usual level of exports in
that quarter because of the dock strike in
the first quarter. The first and second
-quarters together should show a deficit
'of about $500 million.. For the year as a
,whole, it is likely that the deficit will run
.between $1 and $1.5 billion, a con-
siderable improvement over recent years,
but still sizable. A large part of the
;ground gained by the administration's
'program is expected to be lost by higher
U.S. imports.
Much of the drop in capital outflows
in the second quarter is,due to factors
other than the administration's program,
although that has contributed as well.
For one thing, during the first quarter
the seasonally adjusted outflows for
=direct investment overseas and for long-
term bank loans were unusually high-
,$1 billion and $552 million, respectively.
This was due to anticipation of controls
-to come and was clearly too large to sus-
tain. Even without the capital controls,
drop in capital outflows during the sec-
ond quarter was to be expected.
Even with the capital controls pro-
however, the outflow on direct in-
,gram
,
ELIMINATING THE BALANCE-OF-vestment should be somewhatlargerthis
PAYMENTS DEFICIT STILL HAS year than last, when it was $2.4 billion.
TOP PRIORITY 'The increase, however, should be slight.
(Mr. CUR17IS (at the request of Mr. !As for new issues of foreign securities-
DEL CLAWSON) was granted permission to -a prime target of the interest equaliza-
extend his remarks at this point in the 'tion tax-the outflow was rising sharply
RECORD and to include extraneous mat- at the end of 1964 and seems now to be
ter.) !running at an annual rate of over $1
Mr. CTJRT[P. Mr. Speaker, the idea billion a year, or about at the levels of
that it would be dangerous for the United 'the previous 3 years.
States to eliminate its balance-of-pay-
ments deficit has received considerable
attention in the press recently. In his
column in the Washington Post on June
28, Hobart Rowen said that the prudent
-course would be to continue a moderate
deficit while taking steps to protect our
gold stock. He questions the wisdom of
the administration's drive to eliminate
the :deficit, 'The basis for his position
is that the world needs additional dollars
to finance expanding world trade and
The effect of our capital controls on the
economics of other countries arises from
the curtailment of bank loans and the
`repatriation of corporate short-term
"funds.
The country in most financial difficulty
is Japan. This difficulty has little or
nothing to do- with capital controls, but
rather with the fact that American banks
have begun to feel that they have over-
loaned to Japan in recent years. Even
`before the capital restraints, American
banks were beginning to tighten up on
loans to Japan.
The United Kingdom may be hurt to
some extent by the reduction in bank
loans and the pulling back of funds from -
the Euro-dollar market. The extent of
this effect cannot be precisely deter-
mined. On the continent, however, much
of the inflow of U.S. funds was unwanted.
Most European countries were fighting
inflation, and it was believed that dollars
were contributing to inflationary prob-
lems. The capital restraints probably
have helped in the fight against inflation.
In short, the newly developing position
of soim.e writers and economists, to the
effect that we should ease up on trying
to solve the balance-of-payments prob-
lem because we are damaging economies
abroad., is not well founded. It is true
that if the administration's capital re-
straints program were really effective,
and if it were to continue for some time,
economies abroad would be starved for
needed, funds. This is not yet the case.
fly these remarks `I- do not want to
Imply that I approve of the capital con-
trols. I believe more fundamental solu-
tions are needed to the balance-of-pay-
ments problem, and I have spelled these
out in detail on other occasions. I do
think. It is dangerous, however, to slacken
up on trying to solve the problem by
stating that our programs are now such
a success that we are currently causing
serious economic trouble abroad. If we
fail to eliminate our deficit, the problems
before us will dwarf the temporary in-
convenience that our capital restraints
may now be causing in some areas. The
results in that case are likely to be a
full-blown international monetary crisis.
LAW AND ORDER
(Mr. DERWINSKI (at the request of
Mr. DEL CLAWSON) was granted permis-
sion to extend his remarks at this point
in the RECORD and to include extraneous
matter.)
Mr. DERWINSK;L Mr. Speaker, our
attention is being increasingly directed
to a growing disregard for law and order
in the country. The inspiration for this
type of development seems to come from
the militant and irresponsible leadership
of self-appointed civil rights advocates.
However, our entire concept of law and
order seems to be under attack.
Therefore, I place in the RECORD at
this point as part of my remarks an ad-
dress that was delivered by the Lieuten-
ant Governor of the Commonwealth of
Pennsylvania, Raymond P. Shafer, at the
Law , School of Villanova University
alumni dinner on February 11, 1965,
which has special significance at this
time:
LAW AND ORDER-TODAY
(Address by Lt. Gov. Raymond P. Shafer, of
the Commonwealth of Pennsylvania)
If you pick up a volume of legal essays
written in the 1530's,, you will invariably find
that they embrace such philosophic titles as
"Law:and Religion," "Law.and Ethics," "Law
and Literature," and so forth.
Perhaps there is a clue to be found here
as to the temper of the times, which Edmund
Burke once observed, should be the first
.study of a staterrLan.
We look back upon those days with the
grim remembrance of the depression, when
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