Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 12, 2016
Document Release Date: 
October 7, 2001
Sequence Number: 
Case Number: 
Publication Date: 
October 4, 1967
Content Type: 
PDF icon CIA-RDP69B00369R000200290056-2.pdf2.97 MB
, Apar/wed For Re!eel:98%1/11/01 ? QIA-RDP69B00369R000200290056:2 Octob -I er 4, vo/ ESSIONTAL RECOREt ? HOUSE many causes for deep concern felt by millions of Americans. We have seen our military leaders and high civilians in_the administration in- volved in contradictions about the value of continuing escalation of the conflict In Southeast Asia, Then, just a few days ago, we heard from the President himself a reasonable argument in favor of a cessation of bombing in North Wetnam and an end to escalation?only to hear him turn that argument into an unreasonable conclusion in favor of continuing all- out military action with its attendant dangers of bringing new combatants Into the war. The President, you recall, said: We recognize and always have recognized that there can be no military solution to the problems of Southeast Asia. Then, twisting that thought in an in- comprehensible U-turn, he concluded: Only military power can bar aggression and make political solution possible. A little over a month ago, the Secre- tary of Defense testified before a pre- paredness subcommittee in the other body that he had no reason to believe that North Vietnam "can be bombed to the negotiating table." Mr, Speaker, I simply ask this: If there can be no military solution, and if bombing cannot bring a political solu- tion, then why in the name of reason , and humanity do we not, only continue bombing, but expand it to greater ex- tremes? From the re-actions to bombing pauses, frequent peace feelers, invitations di- rectly to Hanoi and through assorted third parties, it has become apparent that Ho Chi Minh will not come to the conference table while our bombing con- tinues. 'Yet, the President has admitted that bringing him to the conference table is our basic aim. I hope that this final clarification of our objective does not come too late. It may well be that our Government's failure to put full empha- sis on this purpose may already have put a political solution out of reach.. Surely, a Continuation of our misguided efforts cannot make it easier to reach. Nobody in the free world caaa seriously doubt our purpose for being in Vietnam. We are there to protect a society of free- dom from, a threat of enslavement. Yet, by our misdirection, we may be destroy- ing the very society we are determined to save. There can be little doubt that the people of Vietnam want peace. Who can say that any men, women, and children who have undergone the pain, destruc- tion, and chaos of war for so many years can want anything but to end it? We must maintainhconviction among the people of Vietnam that our purpose is to end the death and destruc- t tion, and to bring peace and freedom to i their land, If we cannot do this, then we risk the result of seeing the people we are trying to save rushing blindly to en- slavement because they have lost faith In. the reasonableness of our aims and b purposes. We must not risk the chance that o whatever, we may win in Vietnam, we will t lose the war by losing the people to thos against whom we are waging a bloody costly conflict. Certainly, a first step toward achieve ment of any part of our goal is to put a immediate halt to further escalation. Bu that is only a first step, and it is surel not enough, for without second and third steps, it is an effort toward continuing a status quo which we cannot accept in definitely, and which the people of Viet- nam certainly do not want. I am strongly convinced by all tha has been said?by both the hawks and the doves, by the administration and its opponents?that there remains but one possible course of action if we are to achieve our good purpose in Vietnam. We must do whatever has to be done to bring the only possible solution?a political solution?closer, if we are ever to hope for a just and honorable peace, and an end to the bloodletting and de- struction. We know that bombing "pauses" won't work, because they are outright invita- tions to the adversaries to hurry more supplies and more infiltrators, in prepa- ration for the resumption guaranteed by the very idea of a "pause." We know that invitations, urgings, and dares to negotiation, while the bombers continue to roar over Haiphong, can have little result, and no gain. We now have one course open to us, and I am convinced that if we do not take it at once, we can gain little but risk a great deal. We must cease all bombing of North Vietnam at once. The President should immediately an- nounce a date on which such bombing will cease completely. His announcement must not be merely an intention of halt- ing the bombing, nor a vague statement of purpose. He should state it in no un- certain terms?the date, hour, and min- ute on which all bombing of the North will stop. I have repeatedly spoken on this floor during the past year or more to urge the administration to take such a step. I have also appealed directly to the President for such specific action. For example, on September 22, 1966, in the second session of the 89th Con- gress, I said this: The President has repeatedly made clear the Nation's basic commitment to peace. But, -unfortunately, these well-intentioned expressions have not been convincing to the other combatants and much of the non- alined world. That is why I feel that instead of con- stantly repeating our general willingness to negotiate at any time and anywhere, we should set forth a format in specific terms. In effect, the United States would seize the Initiative in a very dramatic way, challenging the other belligerents to lay down their arms and confer at a stated time and place. The President Should set a specific date, time and place for peace talks. At the same ime, he should dispatch invitations to all nterested parties, including the National Liberation Front, and announce a cessation of bombing to take effect 24 hours in advance of the conference. 1112967 e steps but those leading to the conference , table. At the same time, we must recast our - military approach in the south, aiming n toward a concentration of our power to t secure the coastal areas and population y centers where a vast majority of the people live. Let us draw in our troops to stronger defensive positions, protecting - friendly enclaves. This would result in a substantial reduction of American troop strength, and greater security for t most of the people of South Vietnam. We must end the costly search-and- destroy missions, which have gained little, and concehtrate our influence on the Saigon government to bring to its people now?and not at some distant time of hoped-for peace?the reforms and improvements in living conditions they need and deserve. Eventually, the only real peace in Viet- nam can come through understandings among all of the peoples of Southeast Asia. Peace cannot be permanently ne- gotiated from the outside, not even by great powers. The people of North and South Vietnam, of Laos? and Cambodia, of all of the involved nations of South- east Asia must come to mutual under- standings. This we must stress in using our influence on Saigon. As for the peace talks themselves, if they finally come about, let us have less concern for protocol and more for achievement. If there can be no imme- diate confrontation between the United States and Ho Chi Minh, then let us have a meeting of neutral nations as a fore- runner to real peace talks. Ho would then have no choice but to move toward peace. Let us by any means, and by all means open to us, strive toward the goal of end- ing the death and bloodletting, and es- tablishing a peace of honor and justice. This is our stated purpose; let it be the only guideline for purposeful action to brinz it about. I still see this as the only means of ringing about a direct confrontation. Let us place Ho Chi Minh in the position f having to "put up or shut up." With he bombing ended, there can be no other tThITDrATES SHOULD REVISE ITS MIDDLE EAST POLICY: PAR- TICULARLY THE POLICY OF RE- STRICTING ARMS SALES TO ISRAEL. The SPEAKER. Under a previous order of the House, the gentleman from California [Mr. CHARLES H. WiLsonl is recognized for 15 minutes. Mr. CHARLES H. WTI SON. Mr. Speaker, I would like to preface my re- marks by saying that I do not pretend to be an expert on the Middle East or on American policy toward the Arab States and Israel. I nevertheless feel compelled to make some observations on U.S. policy in that part of the world. Last month I had an opportunity, as a member of the House Armed Services Committee, to visit Israel and the Is- rael-occupied sectors of Syria and Jor- dan. If I were asked to recall one central, lasting impression of my trip, I would say that it is the remarkable spirit of the Israeli people. I need not remind my distinguished colleagues of Israel's ac- complishments since her birth as a na- tion only two decades ago. Were we to list and describe them all we coulcl r b Approved For Release 2001/11/01 : CIA-RDR9B00369R000200296056-2 p. o - H E;968 ably fill many volumes of the CONGRES- SIONA L RECORD. My speech today, however, is not a salute to Israel. It is instead a challenge to those who formulate our Middle East policr, to those who execute that policy, and lo Members of Congress, who, under our lionstitution, are charged with the resp(?nsibility of overseeing our foreign policy. Speaker, I find myself in agree- men; with Theodore Draper of Yale,_ who, M the August issue of Commentary, argued that the recent Arab-Israeli war clearly demonstrated the utter "bank- rupt7y" of our policy in the Middle East. The American people were generally delig hted with Israel's lightning military victory. They were also relieved by the outcome. I say "relieved" because thot ghtful Americans realized that their GOV:FIT/le/A had virtually no leverage, either political or military, over the situ- atioa. It became apparent to all that the adrrmistration was neither willing nor able to come to the defense of America's Approved For Release 2001/11/01 : 1A-RDP69600369R0002 CONGRESSIONAL RECO *D ? HOUSE than the sufferings of the Js." He cites memorandums from the State Depart- ment which indicate that Foggy Bottom was preoccupied with thoughts of Arab oil. According to President Truman: The State Department's speeiialists on the Near East were, almost withOut exception, unfriendly to the idea of a JeWish state. Mr. Truman summarizes State Depart- ment policy as follows: Their thinking went along this line: Great Britain has maintaineeA her position in the area by cultivating the Arabs; now that she seems to longer able to hold this position, the United States must take over, and it must be done by exaptly the same formula. if the Arabs are antagonized, they will go over into the Soviet Ca mine.) inp. (Emphasis ? 'standing. The tion persuaded .Sharm el-Sheik 'pledge that our sary, come to he .Levi Eshkol de in an interview ,Report, April 17 , Rut I would s ,pecially if I take ,solemn promises :Israel. We get th ? the United State ? "Don't spend yo Stith Fleet is her , Prime, Minist me to still anot ' dle East polio policy of restric Well, we have been very careful not to ? The latest exa antagonize the Arabs. We have given Department's r them substantial economic and military can firms to s aid. And yet today the Arabs stand Tae Israel Gov squarely in the Soviet camp. Because of chase Skyhaw foggy thinking at Foggy Bottom, this Donglas, but "policy" of ours has cost the American 'Watch has alre only, true ally in the Middle East. A corn- taxpayer billions of dollar. i bini tion of forces, notably a dispropor- Mr. Speaker, the United States has claiming that tios ate commitment in Vietnam and a given over $1 billion to Egypt and over der "intensive counterproductive Middle East policy, one-half billion dollars to 7ordan in the? American eq dra tically curtailed- our options. In past two decades. These estimates, of small fraction addition, it can be argued that our policy course, do not include Central Intelli- , bility. The Is of s applying vast quantities of military gence Agency aid to the A/abs, which, I her tanks mai aid to the Arabs?while denying Israel the opportunity to buy American-made mil tary equipment,--contributed to the out oreak of hostilities. There is a tendency, I think, to over- lad z this tragic failure of American pol- icy' because of the Israel victory. Most people say, "Everything turned out all right for the United States, didn't it?" At the risk of shattering our euphoria, I woad like to remind my colleagues of the adMinistration's confusion and indeci- sio'i during those days of crisis in May anti June. I would like to remind my colleagues of the foot-dragging at the WI Lite House and the verbal gyrations at the State Department. I would like to renind my colleagues of the diplomatic circus in Cairo, where our Ambassador, - \d en asked about the impending crisis, replied?as quoted in the Washington St: ir and the Baltimore Sun, June 15: "'That crisis? There is no crisis in the Mi idle East. This thing will not amount to irn eh. . [ am not searching for a scapegoat, al- though several names do come to mind. Individuals are not solely responsible for in Cairo and State De artment Press lic as inadequate foreign policy. Our failure Officer Robert McCloskey's unbelievable Policy. in the Middle East stems from an all-too- comment that the United States was familiar cycle. A policy is conceived, im- "neutral in thought, woid, and deed.'' pl miented, and perpetuated despite Even more alarming, however, was the THE HARD clanging conditions and in spite of calls administration's failure , to state pre- fo r realism and reappraisal. The policy cisely this Nation's position. The White (Mr. HA -acquires a momentum of its own and House was quick to dissociate itself from WALorn) was so On the policymakers become the cap- the McCloskey fiasco, but no forthright tend his re til res of the policy. The policy, by now statement was issued. A major war was RECORD and nit consistent with and probably con- raging in the Middle East but our leaders ter.) tre,ry to America's best interests, traps ' were silent. According to Theodore Mr. HANN ul by limiting us to a few equally dis- Draper, U.S. officials were not at all sure abound cone taSteful alternatives. what our commitment to Israel was. Mr. truth-in-len -, bit fl two-headed from the start. In his had to telephone former tesident Eisen- on Consume xr moirs, President Harry S 'Truman hower to determine th nature of the resentatives i p ). ntedly explains that on the question commitment. sibility to pa o.` Israel, the State Department was The fact of the matter is that otir closure mea "1 ore concerned about the Arab reaction commitment to Israel is clear and long- to do so it , understand, has been sub antial. What: arms her own. is worse, we have been tuckered into ? providing massive military aid to Jor- decision to en dan. According to the New 1V, ork Times of Air Force, th January 26, American dollars have per- equipping the mitted King Hussein?who at this very British sale o hour is in Moscow soliciting Soviet aid__ other equipme to increase his army fro 4,000 men in imperative th n restricting ar 1948 to 55,000 men tod . Thanks to, r American largesse, Hussein now has a fxst step woul 06 million defense budget, and before Skyhawks. Isr the war had 11 infantry brigades, five ts,ry aid; she fighter squadrons, and abdut 300 modern ernment to sa tanks-250 of which were American- cannot count made Patton T-48's. on? Our policy toward Jordan was designed Because of to make her strong and self-sufficient, the recent Ar But this belief, so dearly held at State, occupation w was shattered by recent , events. When _has been sai ? the chips were down, JOrdan declared the Near East war on Israel and broke diplomatic re- today is exa lations will us. Americafl*. had to watch part of the w of that Policy the spectacle of Jordan,' armed to the teeth win. American weapons, waging Mr. Speake war against our best friend in the Mid_ :Department dle East. Jordan's Patton! tanks went up for an "ago in flames, and so did U.S. foreign policy. 'whole Middle I have already allude to the chaos ? that the legi Speaker Our policy toward the Middle East has Draper claims that the administration considered b Approved For Release 2001/11/01 A-RDP69B00369R0002 iseshoWel- Etchninistra- sraei tonthdraw from In f957 in returnfor a th Fleet Indel, if neces- clefiMe.1=rime yinister It v1th tais very point ith:U.S. News az-World 106/1: " el:7 expecii such help, es- into 'consiieration all the that:have 'been made to se promisls When we ask fol arIngT and are told: money. Ilte M.6 here. The _ r remarks lead er critichan -Of" our Mid- : namplyithe corollary ing arnisiales to Israel. pie of this is the Srate fusid to Permit Amen- 11 jet aintraft to Israel. rr.rnent it eager to pur- fighterbombers from the ' Stat4 Department, dy &upplied Jordan with 's, its feet, reevVith4wole question is un- ipment rriakes up a very f cepa- 1 Air F"Yrce is French, ly British; and her small f _ In light -of the French its SuPPCkt-of the Israel SoViet nrogram of re- rabi whit stritS, :and the Buiater ,g_fighteri-and t to Jordiiii, think it is t we junk our policy of s sales td Israel. A good be to apgrove the Sale or el is not begging for mill- s eiraply itsking our Gov- ctien arirl Sales. If Israel n us, v,Th) can she count he favorible outcome of b-Israel ,001,r and our pre- th Southeast Asia, little about ?a' policy toward What Ltialre tried to do the our litrategy in that rld and ihe consequence* , to, use a favorite State ieher, the ? time has come izingt realipraisal" of our East- Pelitsr. And I think atiVe brahch should con- thotougbi review of that - Ti ,k. _ ara' tku LorDwo. A OA the request of Mr. grailteenierniission to ex- arkel:' at iiiiS-Peitt in the o include iextrane?bus-Mat- IsC. Speaker, distortions ming tilli realities of the ing legislation "now being tihrlibqe:'PPOcommittee Alfdrs. eHQ4e Of Rop- es 11 -Ver's-p-etitte Irspon- a ,ineaningful credit dis- re this sear, but in order tist Sort lie fact from the 12974 Approved THE ARAB REFUGEE AND COMMU- NIST HYPOCRISY eleaseNdyigloRIARREM893_WAHR0290056-2 October 4, 1967 (Mr. MULTER (at the request of Mr. WALDIE) was granted permission to ex- tend his remarks at this point in the REcoRD and to include extraneous mat- ter.) Mr, MULTER. Mr. Speaker, blatant hypocrisy is nothing new in the Corn- muni$ world, but their encouragement of the Arab, to continue to use the plight of refugees resulting from the conflicts In the Middle East as a political football is disgraceful. Most of the nations of Eastern Europe and the Soviet Union are certainly among the worst offenders in -creating refugees. In case anyone has forgotten, Czech- oslovakia expelled 3 million Germans from homes where they had lived for Jaaany generations when the Communists took over that country; Communist Po- land expelled about 7 million Germans from Pomerania and Silesia. Similarly, Soviet Russia has long been known for Its ruthless uprooting of peoples. One blatant example was their expelling of millions of Poles and Germans from the -frontier areas in Eastern Prussia. HOW can these countries now condemn Israel for not solving a problem which in the first instance is not one that Israel 'created? It must never be forgotten that those Arabs who have become refugees did so at the urging of their leaders: This is true of the Middle East war this year just as it was true of the war of 1948. It is interesting to note that so far neither the Arab world nor the Commu- nist world has done anything whatever to aid the Arab refugees, while Israel has ?noW, assumed the responsibility for most of them ancl invited those displaced by the 1967 war to return to their homes. This is, of course, at great risk to the internal security of Israel and clearly demonstrates its willingness to express its humaneness with deeds instead of words. (Mr. MULTER (at the request of Mr. WAtmE) was granted permission to ex- tend his remarks at this point in the RECORD and to include extraneous mat- ter.) ? Mir. MULTER'S remarks will appear hereafter in the Appendix.] ROSH HASHANA, 5728 (Mrs. KELLY (at the request of Mr. WALDIE) was granted permission to ex- tend her remarks at this point hi the ? RECORD and to include extraneous mat- ter.) Mrs. KELLY. Mr. Speaker, the festival of Rosh Hashana, the Jewish New Year, tomes eaeh year in September or Octo- ber. This year it falls on October 5, and Orthodox and Conservative Jews observe the occasion for a 2-day period, October 5 and 6. This turning of the year is, for the Jewish people, a time of repentance, but not of sadness; a time of joyful wor- ship and hopeful prayer. Typical of the spirit of this time is the pleasant custom, whose symbolism is plain to the youngest child, of eating an apple or other fruit dipped in honey, as a foretaste of the sweetness hoped for in the coming year. To all my Jewish friends; to the Jewish people of all the world, and especially to the people of Israel, who are so trium- phantly surviving a fierce and bitter test, I wish all the sweetness and happiness promised by this symbolic taste; and I join in the ancient prayer that God may hasten the time when all the people of the earth shall be brothers, and wicked- ness and tyranny shall pass away like smoke into the sky. VICTORY FOR THE CITIES (Mr. BARRETT (at the request of Mr. WALDIE) was granted permission to ex- tend his remarks at this point in the RECORD and to include extraneous mat- ter.) Mr. BARRE'TT. Mr. Speaker, the press of the country has been loud in its praise of congressional action that looks to the establishment of meaningful model cities, rent supplements, and rat control programs. All of them are needed, and editorials in the New York Times and the Philadelphia Bulletin have urged favor- able outcome for these programs which are considered essential for the health of our cities. So that my colleagues may know the content of the editorial, I in- sert them in the RECORD at this point: [From the New York Times, Sept. 22, 1967] VICTORY FOR THE CITIES The Senate's votes in favor of adequate funds to start the model cities and rent subsidy programs add up to an important victory for the nation's cities. These two new programs are urgently needed if the riation is to make headway against the slums. It Is particularly encouraging that Sen- ator Dirksen, the minority leader, and six- teen other Republicans voted for rent sub- sidies. Last year only five Republican Sen- ators supported this program. If Represen- tative Ford, the G.O.P. leader in the House, and his senior colleagues would similarly alter their position, the House conferees would have little difficulty accepting the amounts voted by the Senate. The shift of more than forty House Re- publicans on the rat-control bill the other day helped get their party off the hook on what had proved to be an embarrassing vote. These changes of position on rent subsidies and rat control show that at least some Re- publicans recognize that in an increasingly urbanized nation there is no future for a party that turns its back on the harsh prob- lems of the cities. [From the Sunday Bulletin, Sept. 24, 1967] SECOND THOUGHTS ON THE CITIES The Congress these days is a fascinating study. The House is having what appears to be a latter-day attack of conscience. The Senate is doing what it can to remind the conservative coalition in the House of their collective responsibilities to the cities. It was in May that the House conserva- tives?Republicans and Southern Demo- crats?fed President Johnson's $662 million request for the Model Cities program into the shredder and came out with $237 million. Then they went on to eliminate the $40 mil- lion asked for rent supplements altogether. Summer and the agony and uproar in the cities seemed to make little difference. It was toward the end of July that the House voted down the rat control bill amid derisive laugh- ter and bad plays on words. The fact that the bill might not have been in the best possible form got scant attention or pro- posals for a better alternative. The reaction was vivid. The cities have protested bitterly against the violent ampu- tation of Model Cities funds and destruction of rent supplements. On rat control, Presi- dent Johnson called the House action a "cruel blow to the poor children," and 112 private organizations, in a joint declaration, said it was "an act of shocking irresponsi- bility. The reaction, evidently, has been effective. And it is some comfort that it is being acted upon. The House, on sober and reflective second thought, has now reversed itself on the rat bill, this time putting more control over spending the $40 million in local hands. But that should not hurt, provided the cities diligently ensure that the funds do, indeed, go for rat extermination. The second thoughts in the House did not extend to restoration of the Model Cities and rent supplement funds. But the Senate may accomplish this. It has now voted $537 million for the cities bill and the full $40 million asked for the rent measure. And if the House members of the Senate-House conference committee still have the ear they have lately turned attuned to urban noises, the story may yet have a happy and constructive ending. NEW YORK TIMES APPLAUDS PRESI- DENT'S SELECTION OF WASHING- TON CITY COUNCIL (Mr. ROSENTHAL (at the request of Mr. WALDIE) was granted permission to extend his remarks at this point in the RECORD and to include extraneous matter.) Mr. ROSENTHAL. Mr. Speaker, Presi- dent Johnson has named a distinguished City Council to assist Mayor Walter Washington in governing our Capital City. This capable group of dedicated Wash- ingtonians will, in the words of a New York Times editorial, "win the confi- dence of Congress" and the entire coun- try. As the editorial notes, President John- son's thoughtful selection is another step in the dawn of a new era in Washington government. With the President's mod- ernization of the District's antiquated governmental structure, his proposal for an elected school board, and the possi- bility of congressional representation, -the District is, in President Johnson's phrase, emerging "into the world of 20th century government." I join the New York Times in praising the administration's selection of Coun- cil members for our Nation's Capital. Their choice gives pride to Washington and to the Nation. I include the New York Times editorial of September 29 in the RECORD at this point: [From the New York Times, Friday, Septem- ber 29, 1967] . . . AND PROGRESS IN WASHINGTON President Johnson has appointed nine cap- able, well-qualified citizens to serve on the new City Council to run the municipal gov- ernment of Washington, D.C. He has suitably recognized the Negro majority in the city by choosing Negroes for five of the nine places. The avowedly militant Negroes are disap- pointed that President Johnson did not select one of them for the council. But if home rule is ever to become a reality, the new board's primary task is to win the con- fidence of Congress and of elements of the business community that have resisted self- government in the District. For that reason, the President wisely decided to err on the side of caution. Approved For Release 2001/11/01 t? CIA-RDP69600369R000200290056-2 Octoter 4, 1967 Approved For Release 2001/11/01 : CONGRESSIONAL RECOR Mrs. 'owlin is a good mother with a happy nature. She says her children are content with th little they have and she evert has to coax them to go to a movie once in a while. "At 14ght, I'm afraid," she confesses. "They I ave the girls on the street and the men?they call them pimps. Yes, I'm afraid. I don't g ce out." On a table in her small, windowless living room is'a set of encyclopedias she bought for the' children to help with their school work. T ne family takes a weekly newsmaga- zine as well as a news picture magazine. These came as the result of daughter Amy's 'filling o ft coupons in one of the magazines. "Amy' e always sending off those coupons and we never know what will arrive next," laughed the indulgent mother. There is no resentment of white people in the Owlin home. If there's any fear it is for teer -agers in the schools the children attend. "Somi of them carry weapons to school and my, kids have never seen anything like that bef sre." Mrs. ltowlin, whose dream is to own her own hof ne in a nice neighborhood and see her children educated, has her heroes in both the Negro and white races. "Book ir T. Washington is the Negro leader -I love. , always wrote my essays at school about bill. Great living men, I'd say, are the Rev. Hai and Dr. Martin Luther King. "And then the Kennedy family. I really love them. All of them. I read everything I can get irty hands on about them." Mrs. Marian Burton, now retired after a brilliant career in social work?Juvenile Court w. it her last assignment?wonders how any Neve, person today can be complacent, can say he is satisfied with what the Negro Is offerer . She re olly boils at the thought. She is downtown daily at the City-County Building or attending various civic meetings to protest injustices against the Negro, to fight for the oppressed. Sife's me of 21 directors of the Virginia Park Re ievelopment Committee determined that whim 12th Street is built up once again, after th; recent riots, it won't be a prom- enade ce saloons, pawn shops, cheap furni- ture stcoes and gouging grocery stores. A devoted follower of the Rev. Albert B. Cleage and a tireless worker in his Cen- tral Uni:ed Church of Christ, Mrs. Burton seems tC favor the philosophy of the Black National Ists group. However she does not belong 10 any particular sect except for a "small neembership" she holds in NAACP. A with w, she lives in a comfortable upstairs flat on rirginia Park, the silken traditional furniture plumped to the nth degree with down pi: tows. With mer are her son, William E. Poole, a widow( r, and her granddaughter, Ernestine, 23, "the love" of her life, "There no 'a photograph of Ernestine over there," I aid Mrs. Burton the other day as she sat !ri her pretty living room. "She was hired al,_ the Children's Hospital on the telephon e. - "I too E. her there myself. As you can see she's a dark girl and when she walked in the hospital people said, 'Are you Ernestine Poole?' ilhe said she was and that she was reporting: for work. 'Well, we don't have any opening i,' they said. "So w len we talk about racial problems and the numerous insults we have to take in the c)urse of a day?not for any reason except tl est we are black?this, I say, is why people n bel as Negroes now are doing. "Durir g my generation I think Negroes were moll accepting of the situation, didn't do anything to correct it. "But in my own social work for instance I've had fellow Negro social workers say, 'Why do you work with those people?' mean- ing the disadvantaged of our race. They told me to get smart and not to talk so much. IA-RDP69p00369R0002 ? HOUSE "But I've always worked for he under- privileged and I will until I die." Mrs. Burton, a graduate of Bri ler College and Wayne State where she r ceived her B.A. in sociology, has worked for the under- privileged white. too. With little jthanks, she adds. She remembers one white fa ly in par- ticular who live in a filthy hovel and whose daughter didn't have clothes 110 wear to school. As a welfare worker, at the time, Mrs. Burton saw that the girl ot clothes and urged her to bathe and k ep herself neat and clean. Not long after that she called a the home and the parents told her they ha4 sent their daughter down South to go to s hool. "We didn't want her going to School here with niggers," they announced. She scorns all politicians, febling they have used her people to reach' office and _ then failed them by doing nothing to give the Negro full citizenship. A lot of Negroes don't vote, saying, "Why should we??the white people are go- ing to do what they want anyhow." But this inf.": the attitude Mrs. Burton takes. She's urging and organizing Negroes to stick together, to take an interest in their governmental representatives. "You can't call that hate," she says, "That survival." Mrs. Burton says that her greatest ambi- tion was to build a home for Negro working girls, girls who made such paltry salaries they couldn't afford a decent place to live. "The meager sslaries of the past have made girls stoop to prostitution and Mce they've started that, they're hooked." But a Negro prostitute, Cele, Munched on - a midmorning hamburger in her hOrne on the east side just a few clays later arid said she had chosen her profession because she "likes sex" and: "Besides owning my own full'y furnished home, I now have three TV sets, two black and white and a color set; cloth* furs and jewels. "How else could I afford all this? Before I started walking the streets I worked with the Department of Parks and Recreation and after that was a clerk in a record shop." Cele was bon, in Gloucester, Miss. She's 20 years old and the mother of a four-year- old son. She became pregnant in school, stayed out long enough to have he, child and then went back but didn't grac nate. Her husband, 26, married her after the baby was born. They lived together six weeks and then separated. "But he says I can come bacl whenever I want to," Cele said with assur nce. She says she makes from $70 to $120 a night on "her oorner" and doesn't have trouble with the police when they arrest her betause "I pay them the properrespect." Some of the other girls use foul language and get themselves slapped arouhd by the police, she adds. She's been picked up for streetwalking about 25 times :Ince she started a year ago. Her longest detention was 45 days in Detroit House of Correotion where she go a chance to cook, which she enjoys. , Cele says her mother doesn't epind what she's doing; in fact she wished her well when she left home. And she looked off into space a moment when asked what she hoped her four-year- old son would grow up to be. Then, she answered, "Well, ever loody says he's going to be either a preacher 4r a pimp." She has no race hostilities. However, the neat, bright-eyil girl in white uniform and the pert cap o a Harlem Hospital graduate nurse, Brenda Turner, 23, said, without too much rancor: "I'm sure that somewhere there must be a lot of nice white people but I've never met them. "I resent being called 'girl' instedd of nurse when hailed by white patients 14 the hoe- pital and as a Negro a 'little better in e white counterpart. "Probably I could ing tut I'd still fir hespltals." This isn't necess where Brenda now the satisfaction of h down a line of nurs white, and select he fat isn't that I'm here are more cone job done than the she added. Brenda's a native a DS.13 guard. When new home in the troit, white childre unpleasant words their house. White she respec StOkley Carmichael, Cleags, Miss Turne Luther King, "the p Chrie:i an." "The others," she 0290056-2, , 1-11-112973 k n.Crve Ihilve:_to be just rything I 1-clO than MY " be etirOfe.1.5o_r_bf Niro in most fly tine orth_e_hosedtai ocsIn fit,, she's had viiig-whitdtectos- look 5 Many Cit _whom were for 'the_ jol at hand'. o geiSt but the doctors_ ruled witbl getting the ?ler of a nurse's skin," - DetrOiter,:her_ father is the amill moved to 3 rtheast septicill. Of_ _De, on the block printed t:aCtriot17111..front of periprmances of Rap Bretwn and Rev. also admires Martin rfecfr example of a true said, "are More violent and perhaps violenc he the waY -the Negro lutist take to win quality. Thu see we're mit asking white pe ph to love Ms or to live next door to us. We imply warnli. full citizen- ship. "I don't believe i separatioxi,. going back to Af :tea or living ?n a Irdall trip of land off the coast of Me ico. "I .ust want to uy the sarSe home the white man can, at t shire price he pays for it. I don't want to be gouged 'because I'm black." She grew even mo e serious: , "I'm for Black aticenalismi and Black PoWer but I'm even ore for the Black Dol- lar. I think the blac man shcatild establish more businesses an employ black workers so we wouldn't be ?o dependent upon the white 'man. "I also believe mor boycotts than riots. But I knew in my he rt the riotif would come to Detroit because of the ilissatiSfaction ever housing, employmen , "I won't say they were condticted in the right way with Neg oes 'burning their own homes. If you are a gry at Ulla- white man then efs the white an You should hurt." She was asked if she didn'ii think, laws should be respected by llegroes as well as white people. "Laces? What la ?" was ter response. "Tire white man h bee mal4ng laws for hundreds of years t t doeseCt enforce. "We aren't about to hill _people but the white man must real ze that vree no longer content with talk. also believe that the main responsibility i thlripreseint crisis falls on the Negro. I thin my generletion and my paren :a' generation ust instill a pride of race In. the generati n new groieing up. "I am proud?ter bly proud--to be a Ne- gri). I wouldn't wan tc be white. The only time I ever, even orrientarilj', thought I might consider ma log a whlte man?for I'nn more attracted Negro me?was when I Visited my cousin i York "She's married to n Italian and he's one of the 'sweetest pe ors I've over known. Because they are so app togeiher it made me wcnder if I ever c ulcl .-.-:"- - But Miss Turner t avels prinduily in Ne- gro society, having t e oecaslorta -Coke and sandwich with a w it hiternor a fellow nurse from the hospi al. - Tranquil ? passi nate ? seleure ? un- sure -,- friendly ? h ? patient ? aux- bolls -- outspoken received intelligent and ciltured ? poli e rude bitter ? _ hopeful. A study of the N gro ivomaits mystique reveals all these qual ties. - Only in one way s rang totally and his- torically different fro :mer whies sister who neVer wakes up mo nings wortlering what indignity she'll suffe 'eller day because her skin is white. Approved' For Release 2001/11/01 : IA-RDP69B00369R0002 0290056-2 t Approved For Release 2001/11/01 CIA-RDP69600369R000200290056-2 October 4, 1967 CONGRESSIONAL RECORD ? HOUSE H 12983 the plane went into a stall and crashed in a canyon. The occupants were injured but alive, Searchers came within a mile of the crash but never spotted it. Dr. Lovelace, his wife, and their pilot were frozen to death 5 days after the crash. I am sure my colleagues read press accounts of the tragic deaths of the Oien family of Oregon, whose light plane crashed op a northern California moun- tain last March. The family, which in- cluded a 16-year-old girl, survived the crash and managed to stay alive for 2 full months before succumbing to ex- posure and starvation. The young girl's diary told of the frustration they felt hearing search planes overhead?planes which could not see them because of bad weather and had no other means of pin- pointing the crash site. It is appalling to me that the Army, Navy, Air Force, and Marines have been using successfully for 3 full years a simple little device that would clearly have saved the Oiens and the Lovelaces, and countless others. This automatic crash locating unit, developed and man- ufactured by ACR Electronics Corp., of New York City, has already saved the lives of knore than 1,000 aircrews who crashed in Vietnam. The military unit is inexpensive, costing only $285 each. I understand that a similar unit could be adapted for civilian use for under $100. Even if the cost were far higher, the price Would be minimal in terms of the lives this device could save. The FAA must be aware of the use being made of it by the military. Yet, it takes no action. It con- tin3les to study. Mr. Speaker, I am calling upon the FAA to immediately certify an automatic crash locator and to issue a regulation requiring its use on all commercial and Private aircraft in the United States. The FAA, is studying air safety to death? literally. It is time to stop studying and start acting. MtirfARY ICTA ORS ARE RUIN- ING GREECE (Mr. FRASER' (at the request of Mr. WALDIE) was granted permission to ex- tend his remarks at this point in the RECORD and to include extraneous matter.) Mr. FRASER. Mr. Speaker, the New York Times magazine recently published a penetrating article about the terrible events occuring in Greece under the mili- tary officers who revolted and seized power last spring. Dictatorship in its shabbiest dress now rules Greece, the land which gave birth to many of our most precious ideas of democracy and liberty. Surely our Na- tion and ,the other democracies of the West cannot consider doing business as usual with this band of men until con- stitutional government and freedom is restored. -I have Unanimous consent to place in the REcoan the sad story of what this military junta is doing to the people and their freedoms in Greece. The story follows: rug Artazsrs?How THE MILITARY ItHLES 8 MILLION GREEKS (By Maurice Goldbloom) The military Junta which seized power in Greece last April 21 is still nervous, but with each passing day it is less and less vulnerable. By now, neither a decision by King Constan- tine to break with it, nor a decision by the United States to cut off military aid would automatically topple it, though either would undoubtedly weaken it. The attitude of most Greeks toward the King's role is summed up in a mot that has been going the rounds in Athens: "In the Process of seduction, there is a point at which a girl must decide whether she is going to remain a virgin. The King has passed that point with the junta." In his recent ap- pearances in the United States?in Washing- ton with the President, in Newport for the America's Cup races?Constantine has ap- parently been acting as the regime's envoy. For its part, the United States, through its Initial acquiescence, has given the junta the time it needed to dig in. - In other words, the junta, though not no- ticeably more popular, does seem to be more solidly entrenched. Tht coup was staged by no more than 200 to 400 officers?out of some 10,000 in the Greek Army. The ability of such a small group to seize power without signifi- cant opposition was largely the result of mis- taken identity. Greeks had long been expect- ing?and right-wing Greeks had been hoping for?a coup by a large, nominally secret, but In fact well-known, organization dominated by senior officers known as IDEA. But over the years a small, rival organization of junior officers, called 1KE:NA, had been growing up almost unnoticed. At the time of the coup its leadership included only one general? Stylianos Patakos, now Minister of the In- terior?and he had been made a brigadier only three months before. The group's most important leader was Col. George Papadopou- los?who happened also to be the man as- signed by IDEA to transmit the orders for its coup to its followers throughout the army. It was EENA that struck, but when Papa- dopoulos gave the signal its recipients thought they were obeying IDEA. Because there was no organized democratic group in the army, there was no military resistance. Because civilian political groups?including the weak and demoralized Communists? were prepared only for electoral activity, there was no popular resistance. Once in, the junta lost no time in broad- ening its base of military support. Increas- ing the officer corps by approximately 10 per cent has enabled it to win the support of perhaps twice that many officers through promotions and new appointments. Key officers on whose loyalty it could not count were forced to retire. In the army, this purge for the most part took place immediately after the coup; in the navy, where the coup had received almost no support, the junta moved more slowly. Still, by mid-August more than 60 naval officers, mostly of high rank, were said to have been removed, and 11 to have been arrested. > Arrests, indeed, have been the junta's most conspicuous activity. The cases of former Premier George Papandreou of the Center Union, his son, Andreas Papandreou, and Mikis Theodorakis, composer of the score for ''Zorba the Greek," have attracted worldwide attention, but there are thou- sands more, and the arrests show no signs of abating. The original wave of arrests was based largely on an army list of suspects prepared nearly 20 years ago; the conspirators had been afraid to ask for more recent lists for fear of tipping their hand. Thus, many of those arrested in the first sweep were people who, whatever they might have been in the- turbulent nineteen-forties, had long since ceased to be politically active. Later arrests?which by now certainly out- number those of the first wave?have been more selective. They affect all sections of the political spectrum, including parilametary deputies, former Government ministers and several of the country's leading journalists. They also include a man who criticized the King in a telephone conversation with his sister, a bus driver who objected to letting a soldier ride free and numerous persons ac- cused of such offenses as having five or more guests in their home or possessing a mimeo- graph and not registering it with the police. Of those arrested at the time of the coup, more than 6,000 were sent to a hastily opened concentration camp on the island of Yiaros. (Some 1,500, most of whom had been ar- rested because of their official positions rather than for their politics, were soon re- leased, though many remained under house arrest.) The Government has now announced the opening of a second major concentra- tion camp on the island of Leros, to which prisoners are being transferred from Yiaros. This should be an improvement. Yiaros is a completely waterless and barren island, swept by high winds. Before the coup it had an old and unused prison, with cells for a few hundred persons. When the de- tainees were dumped on the island, the prison was used to house some of the women. The other prisoners were housed in tents, 25 to a tent, grouped in three camps. Some weeks later, at a time when the Gov- ernment claimed to have released about a third of the prisoners originally there, it announced plans to construct reservoirs on the island which would make it possible for each prisoner to receive 15 liters (a little less than 4 gallons) of water a day. Clearly, the water supply during the first several weeks must have been basely enough for drinking, let alone sanitation. Later, other ameliorations were promised. These included an improvement in the diet, which was said to have consisted mainly of beans, and the opening of a canteen at which prisoners could purchase additional food and other small necessities. Some of these im- provements may have taken place. It at least appears reasonably certain that the canteen was opened?since underground channels reported a few weeks later that it had been closed again. There are inevitable gaps and time lags in information on conditions in the various places of detention, since Yiaros and most of the others have been barred to journalists and foreigners. A representative of the Inter- national Red Cross has, to be sure, been permitted to visit them. But in accordance with the normal practice of that organiza- tion, his report was submitted only to the Greek Government, which never made it public. The Government did, however, release a letter in which the Red Cross representative asked on humanitarian grounds that the 250 women confined in the old prison on Yiaros be transferred elsewhere, to accommodations more appropriate to their sex. (The circum- stances of this release were such that one is impelled to wonder if the Government really desired to give it wide publicity. In the Greek Government press office, official re- leases are normally laid out on tables, ar- ranged in the order of the numbers which they bear. They are available in Greek, English and French. This release had no number, it was not with the others, and it was available only in Greek.) I have seen no report indicating that such a transfer has in fact taken place, although the women may be among those now being moved to Leros. If conditions on Yiaros have improved in some elementary physical respects, it ap- pears that they have recently become worse in other ways. Some 250 of the "most dan- gerous" prisoners are said to have been segre- gated from the others, and to be confined to their quarters 20 hours a clay. During the four hours in which they are allowed out, the other prisoners are confined, in order to prevent any contact between the two groups. And the three camps on the island are kept isolated from one another. These changes probably result from the regime's disappointment at the failure of the Approved For Release 2001/11/01 : CIA-RDP69600369R000200290056-2 11'12984 pr*,--yaers to break down under its pressure. A xmdition for release is that the detainee sign a pledge to refrain from "antinational an A anti-Goevrnmental activity." Few polit- ically significant prisoners have been willing to sign, regarding it as dishonorable. :41terior Minister Patakos complained to mi "Some of them are getting more hard- en 4 instead of reforming. They have orga- niiied by tents; a leader for each tent, and a irroup leader for each 8 or 10 tents. They ha ve a president for each of the camps, and a ,[pneral commander for the whole island. Tr ey have collected 250,000 drachmas [a lit le more than $8,000] among themselves, foi 'what purpose I do not know, but I am sive It is not a good one." .k.a one of the "Communist" leaders of the ha:'dened prisoners, Patakos mentioned Di- mi trios Stratis. When I remarked that the 78. fear-old Streets, a veteran trade-union leader and leftwing parliamentary deputy wr Om I know well, was not a Communist, Pa takos replied: "He calls himself a Social- ist -but he is a Communist. In Preece, we ha kie right people and wrong people. All those wYp are against the country are Communists. St, 'ads is a Communist in his heart and his wcrks. They are all liars." Fiaros and the courts-martial which hand t. sentences of five years for writing slogans on *ails and eight years for lese-majeste are not, the Government's only instruments of ml imidation. Some Greeks beyond the 13o -tiers have had their citizenship revoked? intAt notably, the actress Melina Mercouri, wr o seems to have come out ahead on the ex bange. Piny persons regarded as potential trou- blemakers have been taken to police stations an I badly beaten, as a warning, without be- ing formally arrested; this treatment has been most often used on students and other yce mg people. The security police have visited private employers with lists of "un- reliable" individuals who are to be dis- ch irged. Many people have had their tele- phones removed because of their political vie ws; all have been discouraged from talk- inc?politics on the phone or writing about it to friends by the knowledge that phones are lik sly to be tapped and letters opened. hit the junta has not relied on terror aline to consolidate its position. Rather, it ha; systematically endeavored to entrench its alf in every aspect of Greek life. On the na;ronal level, despite the existence of a nominally civilian Government, an army off Ger plays a key role in every ministry? in some cases as minister, in others as secre- te; y general, in still others as a political corn- mi 'akar without official title. Fhe tenure of civil servants has been ab >halted; many have been removed for their icla as, and all have been ordered to pledge their loyalty to the regime on pain of dis- ml ersal. The purge has not been confined to suoh politically sensitively departments as the police, where 118 high-ranking officials and police doctors were dismissed in mid- At. gust. (Others had been ousted previously, individually or in smaller batches.) It has even affected the-director of the Byzantine Museum, an internationally known scholar. ItOcally, the regime has destroyed the sys- tez . of nonpolitical nomarchs or district ad- mi aistrators, whose establishment American ad users once regarded as one of their major acitlevements. More than half the nomarchs hare been removed; most of their replace- ma nts are army officers. While asserting its betel' in the decentralization of authority, the Government has removed large numbers of elected mayors and local councils and re- pia Ced them with appointees chosen in At. lens. ir'or has it confined itself to the govern- mental sphere. It has seized control of the Orthodox Church. It has dissolved hundreds of private organizations and removed the oft ders of numerous others, including bar as- Approved For Release 2001/11/01 : CIA-RDP69400369R0002 CONGRESSIONAL RECORD --- HOUSE 1 added that th Prerfaier iliran.ed by the-Hing . would still ha e to receivl the support of a raajority in Pa liament. iii.adeted that_these_ _ Ideas were mer ly bang cqnsielered very ten- tatively; the o e poiht onVhich the Govern- ment was deter inervitialhactlierieVirofr-- stitution mus cure all he fauhs Of the existing syste . Amirised lof this statement, one diplomat r marled: `41'hat,t's easy; all he has to do is oh nge eight Million Greeks." t Whatever ki d et ?Constitution may emerge from the corn itleihttne t)reilblem of imple- mention will s ill rItralajti4t7r lieMbraSsY ap---- pears to rely o the41ing,:and Patakos?the member of th jullte wIto ?is regarded as most susceptib e to the Maumee of thepaI- ace?to promo theirestotation of a consti- tutional regim . PaIrjekos,trowever, does not seem to have ny such iitention. He-told me: "We are ot ifiteresi el in elections; if 'we were, we w uldiirt hale Made a. reVolut- non. This syst rn Op ha vp now is . the lieSt system, becaus whitt- we le.ave noW-WIThaire achieved with he people'li siipport so there is no need for e eel ic iis._Wirha,ve_ mcreSerious problems than lest:170TP; VIA we have done we did in orde to a.chievricertain aims, and when we have ermyoct thesAmi;_th-dn W-e" ' will have tim foll ,,eledIOXia...._ _,Yre- are frank people. e mis not 1 ,rs,arid-vdo not - want to make false-electl na the way they Co in Russia wi la 98per ce tr-Itherefore there will be no elect' But even if Matters cci,kld be induced to , support a prom t reourn ti cori-stituattoriality, it is unlikely hat 'lie Co cl'acedinplish it. Unlike Colonel Peaatiopou os who o.anized the coup, Pata os trppeirtra.tOt rs have little taT- ent for conspir cy cip pblitical infighting. He seems a basica ly cliperit 11' 11,1Zeitsitive.Plant whose political naivete is ffrnost -incredible. (He is responsi le fdr inosifOf the pronounce- ments which ave .t.rouglit -ridicule on the junta?the ba s on rninialtirts,_ beards, long hair, etc.) A oldiffr of peasant origin (a brother is sai to 'be ea WOrAing on the roads in Crete ? he i?ose a owly through the ranks for 37 ye rs, becomflIg a-brigadler gen- eral and comm ncleof tint-tank school three months before the CRAM. inly then does he seem to haveearl ,broutt into the con- spiracy?becau e tire tai Si he controlled were necessary to its SUCiess. One suspects that he joined partly. _bectilse of resentment at the establis Marro?Civil and military?on which he bla ed lits -slaw _promotion (he talks with obvi laa bitternESS-of the 10 years he lingered as a Ifetiterillit colonel), and partly because e really balieves the moralis- tic slogans to 1141 _othap in _ the-_dovern-_ raent pay lip se vice,: - --4 - -- - - -- -- In any sho dowdbetiteph Petakos, _ an-cl? Papadopoulos, the 'Iltitteir seems -tar More likely to be t e victor. trwleed, the other members of th junta mat in any case drop Patakos when hey ,reel_s_tiong enough to do ,so. He might .ven end ul CM Maros. :If he should, I wou ? not expir hint to sign a declaration in rd or :to ob lain bis releaSe. _ But if the j nta does dot seem likely to give up power oluiltarilyi,there are factors which may ev ntharly lead to its downfall. One is the di et.ity of ietting competent personnel to w rk for it. ;The population Of Greece is abo t thP same as that a New York City, an thia _proptortion of trained personnel is m eh bower ir one_ eliminates_a_ majority of t e pdp-Ulatiton?and a much larger majorit Cf 'the 'tell educated?on ? political groun s, it becontes? difficult to find competent peo le to. -iniportent positions. Moreover, man whprri tk , jlinta mit_ be willing to appo nt dOnot v rit to serve under present comfit ?no; ,in calf instance_ it has .tad to draft a retiriad offiSial into the army , in order to ma e him -assume:a top poit in a , ministry. This difilcul Inv exglairtsome of ttfe _ . _... peculiar appoi trnelfts _tht_ Government has_ t made. One, pa iculltrly sibmge for a regime , which talks in ter/14 of zliOral regeneration, is that of Con tatittne Tan Os as SeeretarY - , sociations, agricultural cooperatives and the Jewish community. The United States Em.blassy in AthenS clearly does not like the reghne, though most Greeks regard it as responsible for the coup? an opinion the junta assiduously encourages. (A skeptcal friend remarked to me, after seer ing one of the coup leaders in action, "No* I believe what you say about the Americans not being behind the coup; they'd never have chosen these people I") But the Embassy also regards tha present Governn ent as a lesser evil than i4 revolt against I, and has there- fore placer. its hope in pers ading the junta to practice self-denial and restore democ- racy voluntarily. Its influ nce is limited, since the junta now feels pertain that the United Slates will continue military aid whatever ?riappens. (Some Iweeks after thp coup, the 1I.S, did cut off certain items, esti, mated by the Defense Department at 0 percent of the total.) : Nevertheless, the Embassy and State DeL partment ste great cause or optimism in the appointment of a committee of jurists to draw up a revised Constitution by the end of the year for submission to a plebiscite( This is supposed to lead 10 a speedy and orderly restoration of const tutional govern- ment. ? This assessment appears to contain a large measure of wishful thinking. The group named to draw up the new Constitution in- cluded a few persons of some distinction, sevl- eral conservative nonentities and a few with rather unpleasant reputations. But the mem- bers were riot consulted before their appoint- ments were announced, and Some of the best- known have refused to serv. . : The Government's influe ce on the delib- erations of the committee i not likely ;to bp cast on the side of democr tic institutiona. While Premier Constantine V. Kollias haS said the new Constitution will be only slightly changed from the present one, jour- nalists close to the junta have called for much more drastic alterations. Among thp suggestions offered are a ban on political activity by anyone who has ever cooperated with the extreme left, a req Irement that all candidates have loyalty cer ficates from the security police, and the exclusion from office of anyone who has ever h ld foreign cid- zenship. The first of these provisions would not only bar all those in the United Democratic Left (EDA), a party which contains some hard-core Communists butlso a wide range of non-Communists. It wou d also ban most members of Papandreou's C nter Union and a number of people now oi the right?in- cluding some ex-Communists who hold office under the junta or are a ' ng its advisers. (For example, Theophylaktis Papaconstari- tinou, whom the Governme t has placed iii charge of the press, is a fo mer Communist theoretician. So is the edi r of Eleftheroe Kosmos, the newspaper wifely regarded aS closest to the junta.) ? The significance of the sedond is shown 14 a story told by a friend who had served as an officer attached to the general staff, One of his duties was to investigate the qualfficar tions of officer candidates. yn the dossier of one he found a report from the Security Police: "A is a dangerous Etubversive, being closely associated with the politician Con- stantine Rendis." At the tithe of the report, Rendis, who belonged to the light-center, wa Minister of Public Order an the superior ot , the police official who wrote it. : The third proposal is airsed primarily at Andreas Pspandreou, a former American cid- zen and the man on whom nlllions of Greeks rest their hopes for their co ntry's future. , When I asked Patakos what constitutional changes the Government would propose to the committee, he mentlond none of these specific ,points, although le referred in a general way to changes in tile qualifications of deputies. In response tq a question, he . . IA-RDP6900369R0002 .1 020005? October .4 1967 Aipd36red For Release 2001/11/01 :,CIA-RDP69B00369R000200290056-2 4, October CONGRESSIONAL RECORD ? ROUSE H 12985 General of the Ministry of Coordination and Alternate Ciovernor of the World Bank., two of the most important economic posts it had to fill. Mr. Thanos was, a few years back, re- jected for a teaching post at the University of Athens because it was discovered that the thesis he submitted in support of his applica- tion Was a Verbatirn plagiarism from a memo- randuin by Prof. Benjamin Beckhart of Columbia, The incident is not the only one of its type in Mr. Thanos's career. But the Government may, well feel that it cannot look too closely into the moral credentials of anyone who can help it solve Its economic problems, for these are very great, and almost certain to increase. At the beginning of June, Greece had short-term debts of about $20-million more than its of- ficial gold and foreign-exchange reserves. (Some $100-million in gold sovereigns, the purchase and sale of which were used to stabilize the currency internally, did not ap- pear in the official reserves. The exact amount In this fund was secret.) And Greece's three principal sources of foreign exchange?emi- grant remittances (about one Greek worker in five is employed abroad), tourism and shipping?all seem likely to drop sharply this year, as does foreign investment. In addition, it is almost certain that a loan of about $100-million which had been promised by the European Economic Com- munity will now be postponed, if not can- celed. Nor have the financial prospects been Improved by the resignation of the interna- tionally known economists Xenophon Zolo- tas and Michael Pesmazoglou as Governor and First Deputy Governor of the Bank of Greece. , ? No wonder that a former minister says of Col. Nicholas Makarezos, who as Minister of Coordination is in charge of economic policy: "lie's the only one of them who thinks seri- ously about problems; that's why he always looks worried." The colonel's worries seem likely to come to a head within the next six Months. By that time, the Government is widely expected to run out of cash. (It is already asking for U.S. economic aid.) It may be Ole to -renew credits as they come due, simply because creditors will prefer to keep their loans on the books instead of pushing theni into default. But without new credits, which seem unlikely, there will have to be drasticOnport restrictions mid currency con- trols; there may be a devaluation of the drachma 411,41 a sharp reduction in the stand- ard of living. The political repercussions of such a de- velopment are unpredictable. It may be that the opposition will still be too disorganized ,to take advantage of the situation, and that the Government will be able to ride out the crisis. But it is also possible that students? who are difficult to control because their leadership is always being renewed?and workers returning from northern Europe, where many of them have already organized against the junta, will by then form the basis of an effective resistance movement. And if the regime is not able to keep up the standard of living of the armed forces?. particularly the officer corps?trouble could come from that quarter. Such a situation could conceivably result in a countercoup. Or the junta might turn to a foreign adventure, particularly in Cyp- rus. This past summer, there were sounds from Athens of a new drive for enosis, the union. of Cyprus with Greece. (They pro- duced no sympathetic echoes among Greek Cypriotes.) Or the regime might seek to rally popular support by swinging in a Peronist or Na- tional Bolshevist direction. There are already some signs that it is considering this option. One is a decree prohibiting any Greek, in- s:hiding employes of foreign companies and international organizations in Greece, from getting more in salaries, allowance and pen- Sions than the Premier receives?about $18,- 000 a year. (The junta issued a decree rais- ing the galaries of Cabinet ministers sub- stantially, but forbade the press to mention it. Some days later another decree was issued reducing the salaries?but to a point well above their previous levels. The reduction was then publicized, without mentioning the previous raise.) It has also raised pensions for peasants by about two-thirds. And Agri- culture Minister Alexander Matthaiou's first radio address was not only filled with leftist phrases, but was couched in a form of the Demotiki (the popular language, tradition- ally championed by the left as against the Katherevousa or "pure" language backed by the right) so extreme that it is regarded as the trademark of the Communist party and shunned by everybody else. A move in this direction might also take on an anti-mon- archical aspect; not all the members of the junta regard the King as indispensable. It might seem strange for a rightist gov- ernment to move in this direction. But the junta does not represent the traditional Greek right, rooted largely in property and birth. Its leaders are men of lower and mid- dle-class background. They may hate the left, but they have no love for the conserva- tive establishment. INSURANCE COMPANIES PLAN SLUM INVESTMENT THROUGH RENT SUPPLEMENT PROGRAM (Mr. FRASER (at the request of Mr. WALDIE) was granted permission to ex- tend his remarks at this point in the RECORD and to include extraneous matter.) Mr. FRASER. Mr. Speaker, President Johnson's efforts to develop creative co- operation between private industry and Government is bearing fruit. A major breakthrough in this effort is the recent announcement by the chairman of the board of Metropolitan Life Insurance Co. that the life insurance companies of the country have pledged a special effort to work toward alleviation of the problems of the central cities. Their pledge takes the form of a $1 billion investment in improving housing conditions largely through the Rent Supplement program Which the President is urging Congress to extend. The Minneapolis Tribune of Septem- ber 17 commented favorably on the in- surance companies' commitment to the improvement of life in the Nation's cities, and with permission granted I in- clude the Tribune editorial in the RECORD: A ONE-BILLION-DOLLAR COMMITMENT TO BETTER CITIES "There is a great feeling that the attempts to do something about the urban problem have been mainly speeches, programs and committees," said John S. Pillsbury Jr., president of Northwestern National Life In- surance Co. "The people who are suffering say, 'Let's see some action.'" The life insurance industry announced last week a $1.-billion commitment to action. The money will be invested in housing and job-producing industries in the poverty areas of the cities. Twin Cities-based North- western National Life and Minnesota Mutual Life Insurance Co. each has agreed to invest up to $5 million in this way. Other com- panies that do business in Minnesota prob- ably will add to the slum-investment cash. The industry action is an example of the enlightened self-interest we have been urg- ing to help solve the problems of our urban society. In the short run, in this period of tight money and high interest rates, the in- surance industry could find more lucrative investment opportunities. In the long run, however, that industry and the economy will benefit from the uplift of the poor. The action also is an example of how the government can encourage private business to become involved in such problems. In this case, the federal government can take some of the risk out of the investments through rent supplements, mortgage guar- antees and other measures. We hope Con- gress comes through with rent supplement appropriations. For Minneapolis, the additional money should provide more financing to buy or rehabilitate inner-city homes. It might fur- nish capital for landlords to fix up their property to lease to the city for scattered- site public housing under a rent subsidy program. It could speed up development of new housing in the Grant renewal area on the North Side. We applaud the insurance industry and look for more examples of such major in- volvement in the great urban crisis of our times. (Mr. FRASER (at the request of Mr. WALDIE) was granted permission to ex- tend his remarks at this point in the RECORD and to include extraneous mat- ter.) [Mr. FRASER'S remarks will appear hereafter in the Appendix.] COMPULSORY LOAN PROPOSAL (Mr. GONZALEZ (at the request of Mr. WALDIE) was granted permission to extend his remarks at this point in the RECORD and to include extraneous matter.) Mr. GONZALEZ. Mr. Speaker, on September 20, I addressed this body on the desirability of an involuntary loan from each taxpayer of 10 percent of his tax liability instead of the proposed 10 percent surtax. I said that the sur- charge idea was advanced by Economist Harold M. Somers, of the University of California at Los Angeles. I was pleased to note in today's letters to the editor section of the Washington Post that Professor Melville J. Ulmer, of the University of Maryland, has also en- dorsed the surcharge as an effective way to halt inflation. Professor Ulmer points to the dangers of the present stalemate on anti-inflation legislation, and to the inherent flexibility of the surcharge as a tool to combat both upturns and downturns in the economy. Mr. Speaker, I wish to include Profes- sor 'Ulmer's letter at this point, and I commend it to the attention of my colleagues: COMPULSORY LOAN PROPOSAL Recent price increases could be only a modest beginning to a sharp inflation in the year ahead, if the official forecast of the Council of Economic Advisers is correct. Yet, despite abundant debate, decisive action of some kind to counter the upward trend of prices does not seem imminent. In fact for a year and a half, while the consumers' price index climbed by fully five per cent, the Na- tion's economic policy has called to mind nothing so much as a mesmerized bird, frozen in the glare of an onrushing snake. Underlying the recent indecision, however, are three formidable obstacles that are not easily surmounted. First, only the blissfully innocent place unqualified faith in economic forecasts, official or otherwise. There are Approved For Release 2001/11/01 : CIA-RDP69B00369R000200290056-2 II 12986 Approved For_Release-2-001/11/01 : IA-RE) CONGRESSIONAL RE er LaSeurrents on the horizon and six months film now; by the time a promptly enacted ta. increase could take effect, economic activ- it3 could be moving downward. The tax change, in that event, would just deepen the - re,:eSsion. secondly, the heavily taxed American blic has been less than enthusiatic about the Administration's proposal for a 10 per ce at increase in the levy on incomes?a fact net. lost on members of Congress. Thirdly, those who eye with proper skepticism the niece program, the huge public investment in supersonic aircraft, the superfluous troops maintained in Europe, and some similar 'toms in the Federal budget, wonder why Public expenditures cannot be reduced so that a tax increase would be unnecessary. 6ut meanwhile, nothing is done. And the pa obability that the official forecast is right cannot be discounted, and ought not to be ig :wed. 'To break the stalemate, the present w: 'her wishes to offer a proposal that would blorek inflation promptly, if it develops, and yet meet the objections of those who oppose tr e administration's tax increase. The pro- is that each, taxpayer be required to /Old the government an amount equal to 10 pL.r cent of his tax liability, the sum to be repaid with five per cent cumulative interest al the end of three years. The loan would Ipear, initially, as a surcharge on tax nubility, and would have much the same cILliationary impact on the Nation's spend- ir g as an outright increase in taxes. As a lean with interest, however, it would be less plInishing to the taxpayer. It should also, therefore, be more palatable to Congress. The use of this compulsory loan technique his one other highly important advantage. Ii must be acknowledged that the forecast fcr further inflation could be wrong, and ti present proposal can easily allow for this p tsibility. Although the taxpayer's loan is rominally for three years, the President shOuld be empowered to repay the loan in fi at any earlier date, if desirable. Hence, if haziness activity turned down, the loan vnauld be promptly refunded with all the fects of an expansionary tax cut?but with- ?t the interminable debates and delays that o'dinarily attend changes in tax rates. 'The plan proposed here is based on the oreed savings" theory? of John Maynard 11 aynes, offered as a means for financing World War and a similar scheme Bug- g:Steel by Harold M. Somers of the University oil California, at Los Angeles. The plan is not n Leant as a substitute for cutting low priority ems from the Nation's budget. These should ils reduced or eliminated regardless of what ihicione to taxes. The plan is not designed as a 'substitute for ending oil depletion allow- ances or for closing other tax loopholes. D evertheless, we may be waiting for some t me for such commendable achievements. Meanwhile, the present economic situation r ?quires prompt and forthright action. Adop- t.ora of the cennPulsorY loan Plan would enable us to take it. What I refer to, of co rsi, ia the an- nounced plan to mobiljze the vast re- sources of private industry so that it might wo.:k, along with our Federal Gov- ernment, to assist in finding jobs and to provide the proper trainirr for the many thousands of what we cal our hard-core unemplo2., ed. As Secretary of Labor !Wirtz said the other day, "jobs are the live ammunition in the war on poverty, and the right kind of jobs ale jobs in private employment.' He made a distinction between on-the- fob training as compared with institu- tional training, pointing ut that on-the- job trainl.ng is the best Iind of training for the hard-core unemployed. And of cause this on-the-job tr4.ining can only come through the coopertion and par- ticipation of private ent rprise. The Federal Government will incref4 its assistEince to the private sector of onr economy in order to generate a large- scale response from this sector in creat- ing new job opportunities either in exist- ing plants already located near the cen- tral cities, or in plants to be built with some form of Government assistance. In other words, the Government will help relieve tt,e private enterprise firm of the extra expenses it will incur in the proceas of training and placement of the hard- core unemployed. I will not attempt to go into all the technicalities of the new Plan but I would like to make two points: ' First,] don't think thiS is a radical de- parture Zrom the Government's pattern of efforts to help solve the hard-core un- employment problems. Rather It is a nat- ural extension of the overall concentrated employment programs of the major cities which has been so successful in enlist- ing the cooperation of private employers. Second, I am fully confident that American private enterprise can lick just about any problem and, in partnership with the Federal GovernMent under such an imag: native program I am confident that this pressing problem of the hard- core unemployed will at last be solved. I ani proud to note that San Antonio is one of the cities selected for this pilot program. I look forward to seeing this prograln implemented and I hope that our private sector will rally to the call and give it all it has got. - PRESIDENT JOHNSON AND TROGRESS (Mr. GONZALEZ (at the request of r. WALDIE) was granted permission to E*tend his remarks at this point in the Pliscoaa and to include extraneous mat- t tr.) 'Mr. GONZALEZ. Mr. Speaker, I want to take a moment to .congratulate the President of the United States, the Sec- ietary of Labor, the Secretary of Corn- Merce, and others who have come up 4Vith what I regard as a most imaginative Program in our constant struggle in the 1 he war against boverty? , SAN ANTONIO YOUTH FAIR (Mr. GONZALEZ (at the request of Mr. WALDIE) was granted permission to ex- ? tend hi:, remarks at this point in the RECORD and to include extraneous mat- ter.) Mr. GONZALEZ. Mr. Speaker, on Sep- tember t9 and 20, a distinguished gr01-11) of San Antonio citizens once again staged a trerne adous Youth OPportunities Fair in the historic Villita Assembly Hall. It was our community's way of helping its young to find their way, to discover their "n iche" in life, if possible. I would like to share With you and My colleagues the report of Mr. Roy A. Broussard, the fair's manager. unique and 0 t6ta :I3en Singlet? Eugene Sal on, , _ George Purv's, B. Roser, Alv Augusto Vid Abrego, Har Rudy Guerre A. C. Sutto Alvarado, G 13ently, Mite Gross, Bill H Bailey, Dudl Elizondo, S. Casso, Judge Martin, Jr., Johnson, D. Jr., W. L. Fla Dolores Bra ? Smith, and C Mr. Brouss YOUTH OPPORT ?ar,:is i7e: no 1..ez? ttilvEl_Fialea-1nr4E. ylesEjuJrancsis, ; sF: Lifh, IIT'e r1,11eXt Deekard , KIDUel ttli.i.z Ibanez Rey' Ann W itehead, Joe V. Lu. Pe Gibson, William. acela Aftmons, Cl ; Dr. Rev. Henry A. LIcbEinvi}ty0 t . , Cl: 3rdi it ao snL:, Joseph 3 ca citra?rtin'' .j; J... . 1 N r ioFjhracenel ntininroreieyies: 11, Re ainifs- A. ..?f 6/, Jake ariguez -C1 its.i At 2:30 on 19, 1967, Mayo the Second A in San Antoni mony were a nitaries, appr and the majo ity of schetaI superintendents representing an Anton co 's fourteen__ (14) independent s hooltistri It was a ty ics,l, warm:and sunny day as the mayor "b stee the ceremonial ribbon made of news ? aper wantIads?on fob opor.. tunities. Littl did the audience realize that hurricane Bu lar. 'fas tes_play a major role during this s cone- ann.41 career ArdOrrna- ton program. In spite of the rain, "rind, and general turmoil instig ted by thd fierce old gal, the second annua Youth Optortunit3r Fair was, nonetheless, t err endously duceesaful. In spite of the lonstafit rainfall and se- vere weather ews toull4ns, some h.fty-five lords Alvarez,arksGri ar10 s Cue lye IT '8 re130,:lt iS as foilOWS? N E-RING;IIN----'rTaliE : WIThIteNr :T i0 04 A C m the afte f 13Ge bRe - , Texas. the opening c Opportunity of 'peal and ximittely 400 :- !tate dtg- Fair s cAllister opened nuai you .0 young young peal-ate, organizations had exhibits as-Sembled In the vinita Assem ly vcceliont jRclwa- tion of the c mraitted elncern of the com- munity of Be as (kaunty;? for its population of young peo le. _ To not lis eacla or Riese exhibitors in this report would eertahtly be an injustice:, to list every single ex/abitor is definitely \ justifiable, as well as a 'number indication of the gratit ?0 felt by the Advisory Coun- cil of the Yo tl qpportqnity Fair, Inc. Hence, the era z1411 Barites ariel-conifneffels each of the f llowffig eXtaltors who Played a magnificent role in brilIging careers within reach. EXHIBITORS 1'!67 You-rid- OPPoRriviirrY_ FAIR MYSINVIs - IBM Corpo ation. - Braniff Int rnationah _ Southweste n Bll Te4p/tOne- ?tornp-eiMY-.-- Friedrich R Precision an_ifeteturi&g Company. Sears, Roeb ler aridopany. Joske's of etas Coca-Cola ottlIng Crinpany. Travelers I surrilleZ Company. United Ser ices Auto0We Association., Frost Nati eal liault National B nr icos4nerce. Handy-An , Hnq. I - Texas Ins ar cLa Field Men's Association. San Anton' ? Hotel arid Motel Association. Baptist Me Robert B. Santa Roe Southwest San Anton I want to salute Mr Broussard and ciety. members of the advisory council which planned the fair for the wonderful work and dedication which they gave to this Approved For Release 2001111/01 : - _ oda]. Hospital. re ersliosp (tel. Meclical Center. eicad Metitodist Hospital. o IHictrict etlygienist So- VEILII*BNT AGENcS_ City of Sa - City Publi Service BUrd, Approved For Release 2001/11/01 : CIA-RDP69600369R000200290056-2 C)ctober 4 1967 CONGRESSIONAL RECORD ? SENATE Cide treaty, for example, specifies that per- sOns convicted of genocide be sentenced to death or life imprisonment. This interferes With normal court discretion. But consider this in connection With all the treaties. The only nations that have not approved one or more are these: Bolivia, the Maldives, Paraguay, Spain, Togo, the Union of South Africa, Uruguay, Yemen?and the United States of America. Fine company we keep! BAAR1IED IMAGE OF KING XftYsSEIN OF JORDAN Mr. GI:LIMNING, Mr. President, events In the Middle East since May have seri- ously tarnished the image which King Hussein had, sought to build in the eyes of the people of the United States. The image which his imagemakers had sought to convey was that of a moderate ruler seeking to stave off attempts by his fanatical Arab neighbors to pull him off his throne while the King, in turn, sought only to make economically viable a desolately, backward country. The truth is that King Hussein has through the years been Propped up on his throne by U.S. dollars?over $436 mil- lion through fiscal year 1966 to be Aact. Without that economic and military aid there would have been no King Hussein sitting on his throne in Aronlan. Neither Would, the airtificially created nation of Jordan, have continued to exist. The reason advanced by the State De- partment for all this aid to Jordan was that King Hussein was a leavening in- fluence in the Middle East?that without King Hussein's moderating efforts in that area of the world the often expressed hostility of the other Arab nations would erupt into a military attempt to carry Mit their threats to drive Israel into the sea. That fanciful image was destroyed by King Hussein's actions during the 6-day War in the Middle East. It can be said, in the light of the events Which took place 4 that time, that Whatever grief lies ahead for ,King Hus- sein and the people of Jordan was brought about by their own willful attions. On May 31, 1967, King Hussein went to Cairo to sign a so-called defense pact with Egypt which provided that? In case of the commencement of military operations, the Chief of staff of the United Arab Republic Armed Forces will assume the direction of operations in both countries. In an interview on June 2, 1967, King Hussein, belying the image of modera- tion which he had sought to project, stated: Our increased cooperation with Egypt and other Arab States both in the Rast and in the West will enable us to mare/a along the right road which will lead us to the erasure of the shame, and the liberation of Pales- tine. This is a cornerstone of our policy. On June 5, 1967, Israel offered King HUssein an honorable way of staying out of the impending military conflagration. The Prime Minister ,of Israel sent a mes- sage to King Hussein through the United Nations representative in the area, Gen- eral Odd Bull, in which King Hussein was told: N We shall not initiatt, any action whatso- ever against Jordan. However, should Jordan open hostilities, we shall react with all our might and he will have to bear the full re- sponsibility for all the consequences. Jordan's reply to Israel's conciliatory offer blared forth from Radio Amman on the morning of June 5. At 9:15 a.m. on June 5, 196i, Radio Amman carried the following call to arms to the people of Jordan: Free citizens, heroic sons of Jordan. The hoped-for moment has arrived. The hour which you longed for is here. Forward to arms, to battle, to new pages of glory. To regain our rights, to smash the aggressor, to revenge! At 9:58 that same morning Radio Amman exhorted: 0 Arabs, wherever you are! Hit everywhere and hit till the end. The end of Israel is in your hands. Forward, soldiers, to victory. Co- operate wherever you are. Fly, 0 eagles, o heroic pilots. Less than an hour later, at 10:45 a.m., King Hussein went on Radio Amman to tell his people: 0 brethren, wherever you are stationed along the lengthy front! Be certain that our forces and the whole Arab nation will meet the test and Mach the target. The decisive battle has started and I hope it will soon end in the victory which we all pray for. These are not the words of moderation and peace which the image built for King Hussein in the United States would have led us to expect. These are the words of an aggressor? of the leader of a nation who had never laid aside his intense determination to destroy the neighboring nation of Israel, the only oasis of freedom and democracy In the desert of Arab backwardness in the Middle East. Moreover, secret orders to the Jor- danian commanders captured by the Is- raelis called for the extermination of every man, woman, and child in Israel. And yet this same King Hussein, who spurned the olive branch of peace when it was offered by Israel and chose in- stead the ways of ruthless war, is seen today fluttering from Moscow to Wash- ington, hat in hand, seeking more weap- ons to support his continued aggressive intentions against Israel. The time has come for the United States to view King Hussein realistically and not through illusory, rose-colored glasses. Further economic and military assistance to Jordan should be stopped at once and should not be resumed until Jordan has agreed to sit down at the peace table with Israel. If King Hussein chooses to squander his country's meager economic resources on armed aggression rather than on its economic development, he should not be supported in these rash endeavors by U.S. economic and military assistance. But above all, the people of the United States should appraise King Hussein for what he really is: a backward Arab mon- arch more interested in military aggran- dizement than in peace and who has for- feited all claims for further support from the taxpayers of the United States. RIOTS, SLUMS, AND BANKING Mr, BBOOKE, Mr, President, a highly significant speech was delivered last week to the American Banicers Association S 14175 convention by the senior Senator from Utah [Mr. BENNETT], who serves as the ranking Republican on the Committee on Banking and Currency. His speech is justly receiving wide national attention. The distinguished Senator struck a vital note in calling upon America's bankers "to assume major, new leader- ship roles in helping to bring the needy, downtrodden slumdwellers back into the mainstream of American economic life." He rightly pointed out that solu- tions to the problems of poverty cannot be worked out on a mass basis. Poverty is personal, and the solution must be found one person at a time, one job at a time, one step at a time. Senator BENNETT?WhO speaks author- itatively through many years of close association with the banking world? expressed his deep concern that two ways of life have existed side by side in this country for 30 years: the way of free enterprise, and the way of welfare. He said: We will never solve the problems of the poor of 1967 until we can move them out of the half-world of government support and make them part of the real economic world we call the private enterprise system. To help to achieve the urgent goal of breaking down the attitudes which sep- arate the poor from the rest of American society, Se/Mbar BEENNETT asked for new public relations programs to acquaint the Nation's poor with the proper uses of banks as savings and credit institutions, and to encourage Negro college students in particular to enter the banking field. I feel that Senator BENNETT'S speech, entitled "Riots, Slums, and Banking," should receive the wide circulation of the CONGRESSIONAL RECORD. I ask unanimous consent that it be printed in the RECORD, together with a complementary article entitled "U.S. Job Training Plan Heart- ening," written by David Lawrence, and Published in yesterday's Washington Evening Star. There being no objection, the speech and article were ordered to be printed in the RECORD, as follows: RIOTS, SLUMS, AND BANKING (Speech by Senator WALLACE F. DEmsrnrr, to the American Bankers Association Con- vention, September 25, 1967) Charles Dickens, in the opening paragraph of his classic novel, A Tale of Two Cities, gave us with uncanny accuracy an excel- lent description of America's present do- mestic dilemma: "It was the best of times, it was the worst of times," he wrote. "It was the age of wis- dom, it was the age of foolishness. It was the epoch of belief, it was the epoch of in- credulity. It was the season of light, it was the season of darkness. It was the spring of hope, it was the winter of despair." If you are in the mainstream of our Amer- ican economic system based on private prop- erty, which rewards individual enterprise with the increasing comforts of a growing production of an explosively expanding econ- omy, it is the best of times. But if you con- sider those who are outside this system's mainstream and the number who are on government welfare, it is the worst of times. This government-centered program for the care of the needy has been with us for a third of a century, and to its authors and advocates, this promised to be, in Dickens' words, the age of wisdom. Now even some of its friends are admitting its failures, thus. branding it as the "age of foolishness." Approved For Release 2001/11/01: CIA-RDP691300369R000200290056-2 Approved For Release 2001/11/01 ' CIA-RIQP69B00369R0 14176 CONGRESSIONAL RECORD -- SENA N00290056-2 ? Thirty years ago, all America was groping In a season of darkness. So far as the value ,opr private enterprise system was con- cerned, it was an epoch of incredulity, a winter Or despair. This was not our first depressiOn, but in the earlier ones Americans came through on their own courage and re- sources, and With the help of their families, neighbors and friends plus unorganized county help. Even when the going was rough, they- never became separated from the sys- tem. But this, time, taking advantage of the fact that the faith of many faltered, astute politicians stepped in and offered an attrac- tive affernative?gOvernment welfare. Since then the two ways of life have existed side by side, and both have groan. Our economic indicators record that the benefits of our free enterprise system are at an all-time high, to be shared by those who participate and contribute. In the second quarter of this year, our gross national product exceeded an annual rate of $773 billion, and disposable personal incoine reached an all-time high of $540 bil- lion, Dis3ributed equally over our popuIatfon, - this amounted to $2,716 annually for each man, Woman, and child in this country. Corporate profits both before and after taxes reached new levels. Non-military employ- Ment surpassed any previous mark, as 76 Million of our citizens were gainfully em- ployed. Unemployment, according to the lat- est figures, is at a satisfactory rate of 3.9 per cent orCa'Seasoratly adjusted-basis. We have more rhOney, more ptirchasing power, More education, more of the things that make life pleasant, and more savIngs than ever before in history. Commercial banking has partici- pated in and contributed to this growth and VOW hag a total of $834 billion in loans and Investments. Truly, in many respects, this is the best of times, In the face of this evidence, one might COnelUde that related, problems of social and eCeildniie weakness would be at an all-time low.17nfortunately this is not true. The basic problems of the depressed 30's have survived and even flourished in the shadow-world of governifient welfare. Although the number of individuals and lainiliesewith incomes below the poverty level has dropped steadily as prosperity has in- creased throughout the last three decades, the number of public relief welfare rolls has coritinUfici to increase at What is to many an alarming rate. Three decades ago, there were just over 3 million persons receiving govern- ment welfare payments. Today, that number has inceeasesi to over 12 million, The dollar outlay for welfare payments has increased' over eight-fold during the period until today ? it is over $5 billion annually : What is star- tling is that some individuals have never known any other way of life. Their parents and grandparents lived on public welfare, - and they have be-en brought up in this same environment, depending on these payments for their livelihood. True, there are among these dependent on welfare many who would prefer gainful employment, but they have been squeezed out of the labor market be- cause their skills and education do not qual- ify them to earn today's minimum wage reqUireinents. Along with this increase in the number of welfare recipients, we have seen a tragic in- crease in crime,' divorce, bankruptcy, ille- gitimacy, slum housing, alcoholism, and drug usage. It is surprising to know that there are six serious crinaee committed each minute in, this eountry.-Crime has skyrocketed 62 per eent?.in the liet six years alone, while the poPulation has risen hy-onIY nine per cent. There ip more than a murder every hour, a -burglary every 2? seconds; and an auto theft every 67 secondP. Personal bankrupt-dee in fiscal 1067 were 191,729, compared with about 40,000 per year during the depressed thirties: Illegitimate births were at a- rate of '7 per thousand umnirried women in the child bearing years of 15 to 44 years of age, three decades ago. Today, the rate is more than triple at 25 per 1,000 unmarried women in that age range. Alcoholism is increasing an- nually and drug usage is becoming almost cominonplace. While these earmarks of a corrupt society are not limited to those who are outside of the mainstream of American affluent life, they are more prominent among those groups. We are beginning to accept the fact that there is a definite correlation between unem- ployment, lack of education, slum housing, and crime. Latest unemployment statistics indicate that the unemployment rate among non-whites is twice what it is among the white work force. In 1960, 46 per cent of the non-white urban population lives in unsound housing compared with 14 per cent of the white nrban population. Crime by non- whites is at a significantly higher rate. On a per population basis, the incidence of murder is 5 times as great among non-whites. Forcible rape occurs 4 times as often; rob- bery incidence is 5 times as great; prostitu- tion occurs at a five to one ratio and narcotics violations at a three to one ratio. All th-se sad statistics strengthen the evi- dence that the recent rioting has been largely by those who are not participating in pro- duction and ownership in our system. In a way, then, we've seen the concept of Federal paternalism come full circle and grow in the process. It has preserved the eco- nomic misery of the 30's and added to it the deeper suffering of older and more over- crowded slums, and the breakdown of the family, the current expression of which is hatred, crime, rioting. Even the systern's friends are beginning to realize that it has failed, as revealed by these very recent state- ments made in the Senate and on the record. Let me quote just a few statements from some of the Senate's most liberal members and from one of the most vocal of civil rights spokesmen. Here's one statement by a re- cently elected liberal Democrat: "In the midst of these riots, and all this difficulty, one of the problems is obvious, that our promise and our claimed achieve- ments did not match the substance of what We did." Here are five others, by other liberals: 1. "Thirty years ago, it was the private -system, the private sector of the economy, which had failed. But now, after 30 years, it is the government welfare system which has broken down." ? 2. "For these same 30 years, we have had categorical welfare programs---yet every year we seem less able to help people off the wel- fare rolls into positions of dignity and inde- pendence." 3. "The antipoverty efforts ... have proven to be an effective curse. I see these paternal- ists coming into our cities under the guise of community developers, and they are an ef- fective menace." 4. "We have had misplaced good will, mis- placed kindness, and programs which bring relief rather than bring rehabilitation and recreation in human terms. They are not an- swers to our urgent plight today..." 5. "I would underscore the fact that mas- sive doses of the same old things will only lead us more aggressively to national self- destruction." It is hopeful that many in Congress have finally come to realize what has always been obvious to some, that government paternal- istic control and handouts, instead of en- couraging people to get off relief, actually tend to attract more to welfare as a way of life, and once in this pattern to cling to it. This is particularly true for the program for aid to dependent children, which, for as long as three generations in some families, has made the rearing of illegitimate children a Source of income. . , . With this realization has come a challenge to -try- to break this vicious- circle, and new pr9grams are being enggested for the transi- tional period. One common concept is to add October 4, 1967 some form of training to Many existing pro- grams, including this same program for aid to families with dependent children. In ad- dition to such other expensive War on Pov- erty programs as the Job Corps and the Com- munity Action set-up, these mothers are going t3 be pressured into some sort of training. This idea will require still another government program for the day-care of chil- dren whose mothers are being trained. In theory and in spirit, this training-by- government approach is commendable, but if past experience is any guide, the training will take place in a vacuum, unrelated to a specific Job, unless such a job is, in turn, supplied by government. What I have said about jobs is also true for government soluti as to the problem of housing. We have had low-income housing programs for three decades and yet over 40 per cent of housing in many sections of our cities is being categorized as substandard, dilapidated, and unhealthy. Federally-pro- .vided public housing was a natural partner of Federally-financed welfare cash income. But neither has met the essential spiritual need a person has to manage his own affairs. This can only be satisfied when those slum dwellers who wish to do so can have a chance to have an equity in their own homes. At best, all programs initiated by govern- ment include some significant degree of continuing Federal control or supervision of the persons needing help, which means that after al we are still only making different patterns in the same old circle. Referring again to my point that we have in the United States two separate economic systems spiral- ing together, with a minimum of overlapping, It is clear to me that we will never solve the problem of the poor of 1967 until we can move them out of the half-world of govern- ment support, and make them a part of the real economic world we call the private enterprise system. That this can be done is demonstrated by the fact that many trapped in the 30's fought their own way back and have shared in the free economy's rewards. While it is easy to agree that this is desir- able, it should also be clear that government can never provide the leadership needed to bring it about. In the first place, many men in government have themselves never been a part of the productive side of our free system, and therefore do not understand or trust it. This is evident from the criticism which has been leveled against the student loan program that banks have tried so hard to make successful even at some cost in profit. Yet it is being assailed as a bonus to bankers and it is suggested that direct gov- ernment loans should replace the guarantee program. Another example of this mistrust is a flood insurance program which has been approved by the Senate Banking and Cur- rency Committee. The program is set up to use private industry to the maximum extent with Federal Government reinsurance for catastrophic losses. There were accusations that the program represented a guaranteed profit to industry with government taking all of the risk and that the program should be replaced with an all government program. Moreover, there are also man; whose political careers have been built the concept that the votes of people who are dependent on gov- ernment can be mostly easily controlled. So the responsibility falls upon the men whose faith in our free system, and under- standing of its processes, have made them leaders in it. Only these men can actually develop programs which will bring the out- casts in?provide the jobs, the specific train- ing, and the proof that the free system can provide greater incentive, security, and satis- faction than the government sheltered one. It is a sad commentary that life in the government welfare compound has produced one or more generations of economic illiter- ates, economic cripples, and economic agnos- tics. The so-called self-appointed authorities on consumerism, including many in govern- Approved For Release 2001/11/01 : CIA-RDP69600369R000200290056-2 October 3 lApproved For FLeisiampaOklAiLat: RM3ittP.9.131tp?t6jp00200290056-2 disaster. The United States has contrib- uted substantially to refugee assistance programs to help displaced persons from many countries including India, French Indo-China, present-day Vietnam, Chile, Turkey, the Congo, China, Hungary, and East Germany. In my own area of south Florida the United States has contrib- uted substantial assistance to aid refu- gees from Communist Cuba. In addition, since the end of the Sec- ond World War, the United States has made some substantial contributions both through the United Nations and unilaterally to aid tremendous numbers of refugees throughout the Middle East area. Following the end of hostilities in the Middle East last June, the United States immediately took steps to pro- vide assistance to hundreds of thou- sands of new refugees in that area. I am sure that many in the House of Repre- sentatives are interested in the tremen- dous effort which this country is making in that area of the world, and for that reason, I quote the text of a note from the U.S. Mission to the United Nations to the U.N. Secretary General which was made public on August 30, 1967: The Representative of the United States of America to the United Nations presents his compliments to the Secretary-General of the United Nations and has the honor to reply to his note of July 10, 1967 drawing attention to operative paragraphs 8 and 9 of General Assembly resolution 2252 (ES-V) dealing with humanitarian assistance and requesting information on the measures taken by the United States Government in the light of this resolution. The United States Government responded immediately to the basic needs of the per- sons displaced by the recent conflict by air- lifting an initial 5,000 tents to Jordan to provide temporary shelter for the homeless. In addition, the United States has airlifted to Jordan 5,000 more tents and offered blankets, household utensils and stoves to help relieve the hardships in the are. The offer of blan- kets and household utensils have not yet been accepted and these items have not yet been furnished. The total cost of the tents and other items and their transport to Jor- dan by air is estimated at approximately $1,675,000. It will be recalled that the United States pledged for the support of the United Nations Relief and Works Agency a contribution of $22.2 million for the year ended June 30, 1967. The pledge included $13.3 million in cash and $8.9 million in foodstuffs. At the time of .the outbreak of hostilities in the Middle East, the last shipments of these foodstuffs were on the high seas enroute to the Middle East. In some cases vessels were forced to discharge their cargo in Med- iterranean ports because of the inaccessi- bility of Middle East ports. The United States Government arranged for the onward trans- portation of these cargoes destined for use by UNRWA and bore the extra costs of stor- age in transit and trans-shipment. As the Representative informed the Secre- tary-General in his letter of June 29, 1967, the United States made a special contribu- tion of $2 million in cash to UNRWA to help Meet the emergency needs of victims of the conflict. Subsequently, the United States informed the Commissioner-General of UNRWA that it would provide 24,000 metric tons of wheat flour and 1,200 tons of vege- table oils for use in UNRWA's relief services during the next several months. The world market value of these commodities, includ- ing transportation to Middle Eastern ports, aMOunts to approximately $4,284,000. The United States Government expects shortly difficult. In spite of the handicap of a paucity of information, enforcement officials still do a remarkable Job of tracing those committing bank crimes---but the persistent penalty of Oar information compounds the important task of conviction. Lack of fingerprints, posi- tive identification or Possession of known identifiable stolen currency results in ac- qtlittals. Tongher rules of evidence in today's courts, cOupled with conflicting or insufficent identi- fication, must certainly turn loose hardened and experienced criminals who very probably will try their luck again. Is bank crime the other banker's problem, or is it truly one that should concern you and m,e? I believe that we ought to share a fraternal belief that a crime against any bank is a crime against all banks. Certainly the premiums of our blank ,t bonds repre- sent a composite assessment of the cost of these crimes. As individil,als and as institutions, we share the increased burden of law-enforcement in our present society. Every one of us must shudder and decry the shame of ruthless criminal activity which results in death to bank officers, employees, and customers. Are we doing erlough to make a real con- tribution toward prevention; apprehension; cOnviction of people wha prey on our banks? A considered judgment would indicate we are not. We are notably deficient in the installation of complete We devices and alarm equipment. e do not avail ourselves of booklets and films for employee information and training, which are available from law agencies and insurance companies. The ad- visory help from, the FBI and other agencies is not drawn upon by individual banks or groups of bankers for instructional and in- formational purposes. 'Even when an education and hold-up drill program has been Institut , in our banks, personnel "refreshers" are not frequent enough to keep Pace with employee turnover. ,Comparative statistics prove that, where an aggressive crime prevention program has been introduced in a given area, the inci- dence of bank crime?particularly hold-ups? diminishes dramatically. The individual bank and tb.e banking system are direct bene- ficiaries whenever your bank and mine intel- ligently use known preventive measures and protective devices against the crook who wants to "do business" with our banks, ....B..2algajdal REFUGEES (Mr. FASCELL (at the request of Mr. PaYoa) was granted permission to ex- tend his remarks at this point in the RECORD and to include extraneous mat- ter.) Mr. FASCELL. Mr. Speaker, one of the Most tragic consequences of the brief but bloody war in the Middle East has been the desperate plight of the hun- cheds of thousands, of refugees made homeless by the fighting. Those displaced by the recent war are adding yet another dismal chapter to the tragedy of over 1 million people who now live in the Middle East without per- manent helter, any sources of livelihood or any dependable food supply. The United Nations' Relief and Works Agency estimates that the recent ghting added more than 330,000 new refugees to the pre-war total of one and a quarter mil- lion refugees then in the area. Ever since, the inception of the United Nations, the United States has stood ready to aid that organization in its ef- forts to relieve the suffering of refugees from wars, political strife, and natural H 12903 to make a second allocation of commodities to UNRWA of about the same magnitude. In late June, the United States Govern- ment transmitted $100,000 to the American Red Cross for contribution to the Interna- tional Committee of the Red Cross for the latter organization's activities on behalf of the victims of the recent hostilities. The United States Government also pro- vided funds estimated at $40,000 for the shipment, by air, to the Middle East of med- ical supplies (antibiotics and vitamins) do- nated by the American Red Cross to the In- ternational Committee of the Red Cross. The United States Government is also con- tinuing to donate, at rates prevailing prior to the outbreak of hostilities, foodstuffs to American voluntary agencies for their pro- grams of assistance to needy persons in the Gaza Strip and on the West Bank. The value of such commodities at world market prices, exclusive of transportation cost, is approximately $1,779,000 annually. The United States is keeping the emer- gency needs of those persons affected by the recent hostilities under constant review and will cooperate fully with intergovernmental and non-governmental organizations now at work in the area as well as with the govern- ments directly concerned. THE JOHNSON ADMINISTRATION'S ACHIEVEMENTS FOR URBAN AMERICA VERSUS THE REPUB- LICAN VOTING RECORD (Mr. ANNUNZIO (at the request of Mr. PRYOR ) was granted permission to ex- tend his remarks at this point in the RECORD and to include extraneous mat- ter.) Mr. ANNUNZIO. Mr. Speaker, in each of the four messages on the cities he has submitted to Congress during the past 4 years, President Johnson has warned that we cannot become two people?the suburban rich and the urban poor. He urged us to begin planning and building today to keep pace with an ur- ban population that will double in the next 40 years; and he emphasized that while we do not possess all of the an- swers to urban problems, we must move quickly "to make right what has taken generations to make wrong." I would remind my colleagues that when Lyndon Johnson assumed office 31/2 years ago, efforts in the poverty program were sporadic, unorganized, and under- nourished. Since that time, the Johnson administration's efforts in the war on poverty have steadily mounted. This year alone we are spending over $25 billion on jobs, health, education, housing, and other urgent programs for the poor. The record will show that 2 million Americans, as a direct result 'of these Government programs, have been moved over the poverty line. Four million slum dwellers have ob- tained needed assistance from neighbor- hood centers. Four million older Americans have re- ceived hospital care under the social security amendments?in 1 year alone. In short, during its first 2 years, the war on poverty has benefited more than 9 million Americans. And this is just the beginning. In addition, nearly 1 million Ameri- cans have participated in the Manpower Development and Training Act programs Approved For Release 2001/11/01 : CIA-RDP69600369R000200290056-2 - 1112904 Approved ForMattiNwril NBP69 0814?aR0002 t 02900 S- eo er 3 1967 Jar' bo develop new skills that leads to new job opportunities. There was no such program under the last Republican administration. There cVas no poverty program either. And ;here is simply no comparison over the sfforts made by the Republicans to help wr cities with that of the Kennedy and Johnson years. ? Those Republicans who are now charg- ng that this administration is reneging ? On its commitment to the urban poor have obviously neither consulted the record nor conferred with their col- agues in the House. The record is clear: No administration .n. American history has created more ;ound and effective programs for the ci- ,ies than has the Johnson administra- Aon. And the record will show that the Re- oublicans in the House have voted over- Vhelmingly against each and every one ?>f these proposals. Just in this session, the Republicans n the House have voted to eliminate all 'unds sought for continuing the rent ;implements program. They have voted 'to reduce by two-thirds the funds re- I ijuested for model cities. And it has cut iy $5 million the President's request for tsearch in urban technology. ? This is the party now criticizing the '?resident for not doing enough? The 4merican people must be forgiven if they ,Lte slightly incredulous. ? All told, some 30 legislative proposals 'or the urban poor have been enacted by .71ongress over the past 31/2 years. All of hem have been strongly opposed by the ,ifouse Republicans. This Is the record. And those Republi- mns seeking political advantage from ?he tragic events of this summer cannot .m allowed to bury the bones of their mrty's dismal voting record on the cities .n. the Democratic backyard. At this very moment, Congress has un- ler consideration 14 pieces of major leg- slation to help our cities build a brighter Future. Let us see how the Republicans in Con- tress will vote on these measures. Let us , neasure the degree of Republican sup- port in the House against some of the 411ticisms voiced by a few Republican eriators that the administration is not lioing enough. I think the evidence will 1>e conclusive about which party is the lioers for urban America and which is he haven for the perennial obstruction- its. If the Republican Party wants to pose at the city dwellers best friend, let them ;latch their voting record with their laleged commitment, In the meantime, Lyndon Johnson's I'cord of achievement to help the Amer- 1 lean city remains unmatched and un- 'Waled by any group or faction. The record speaks louder than any IKAitical words. ,LNOTHER ESCALATION BY REAGAN (Mr. RESNICK (at the request of Mr. PeyoR) was granted permission to ex- lend his remarks at this point in the UrcoRn and to include extraneous mat- t ar.) Mr, RESNICK. Mr. peaker, Governor Reagan is at it again. Instead of concen- trating on the problems of his State and his own administration the "fastest gun In the West" is hysteri ally trying to set Foreign policy from Sa ramento. In his latest, scenari , the hair trigger Governor, after threat ning to use nu- clear weapons to bring bout a final solu- tion to the Vietnames war, tells us he favors expanding the w r with an Amer- ica,n invasion of North Vietnam, if only the mil lary will give t e green light. Gove mor Reagan a ts upon impulse While rmsoned men recognize the dan- gers of a wider war. The Governor acts calmer men re- is attempting to ithout irration- ntrance into the om ignorance of, asic foreign pol.! North Vietnam III, but simply ce of South Viet- : The Governor should stop making rash and in esponsible fore gn policy state- ments and content hiri self with bailing, out his own ship in Ca ifornia. The last thing we need are poli ies which would blow us all back to "Depth Valley Days." i HOW GIANT CO-OPS PRESSURE TAXPAYING BUSINESSES (Mr. RESNICK (at t e request of Mr. PRYoit) was granted pernlssion to extend his remarks at this poi t in the RECORD and to include extranedus matter.) Mr. RESNICK. Mr. Speaker, during my ad hoc hearings into the activities of farm organizations, testimony was pre- sented by a number of people which shed light on the business activities of farm, organizations. Many of these businesse.s operate as tax-exempti ()operatives and, over the years, have u dergone tremen- dous expansions into ew fields?fields which are only partially related to agri- culture. The regulatio-is under which these tax-exempt cooperatives operate gives them a great advantage over the private taxpaying businesses that they compete with, and is putting them under tremendous economic pressure. Many are being driven out of busi ess. On August 31, Mr. Frank Silkebaken, an independent oil job r from Iowa, de- livered testimony whi h provided an Illuminating insight into the problems that the expansion-minded cooperatives are creating for independent busineSs- men. Ur.der unanimous Consent, I present at this Lime the statement of Mr. Silke- baken: STATEMENT OF FRANK M. pILIKEBAKEN, BELLE PLAI sTE OIL CO., BELLR PLAINE, IowA Mr. RESNICK. These hearings will now come to order. 1, We will hear from Mr. ilkeba.ken. Is there anybody with y u that you would like to identify as being ere with youZ from frustration, whil alize President Johnso achieve a just solution ally provoking Chinese war. Mr. Reagan acts f or indifference to, our Icy goa ?not to destro and provoke world wa to insure the independe nam. Mr. SILKEBAKEN. Yes. I refer to a gentle- man, a fellow Iowan, E. F.Bock from Garner, Iowa. I also have with me, representatives of the National Oil Jobber 6 Council here in Washing ,on, Mr. Wilfred H. Hall and Mr. Charles Hartman. I have as a personal guest of mine my son, Dennis, Mr. RE3NICK. Thank you, Mr. SL,KEBAKEN. Good fternoon, gentle- . - - Approved For Release 2001/11/01 : men. My na 6 14 FraUt L Silitebaken, and I am an in ePona.ent IglIcibber _from Belle Plaine, Iowa I am hereavpreSenting the TO0 independent oil jobber4 in_ Iowa, nwier _the auspices of t e Iowa Independent Oirjela-bers Association. s o.l jobtOrti we ate wholesale distributors of gaSOlinC heating oil, other petroleum p ocluer-1, an tires, batteries and accessories t Naaous ?witnesses and retail customers w th ri-our Utite. With me today Is another I wa oLl job*, Mr. Ed Bock, who is a past prsldelit of tprr 1'07_4 association. Mr. RESNI K. Vtllif I tourz3sitren With the Iowa In epenclent ICH -.robbers Assoc- ia- tion? Mr. Sr.,KE MI6> I aur a member, sir. Mr. RESNI K. u arI officially represent- ing them? Mr. Smux Alt Mr. RESNI it? Please li*Coadi? _ Mr. SILKE AKEN. Thil testimony is mace In the emits t atitoda5.:,s needs by the Fed- eral Govern ent71.0 dillect additional tax revenues. Or Prisiclent has suggested a 10 per cent sur ax offitadirlittials and COrpOlia- tions' incom taxes thigjeTirc-Weleel strong- ly that if t e GcvernnAnt -needs additional revenue to nanae its-to-granas, it should first explore ur cpateniton_that cooperatives who have - initial tax-fr e, status should be taxed at the same rate as hosetusintsses with whom they regularly co pet. - - = The total mitt brrefeniteil that could be realized y otio-perati-Ve -ear- porations lik other corlOrations are taxed is probably ov RHO millfon a year. Thus, we suggest the e ..s" a, doable-barreled reason for considers ion It this problem by the Con- gress at thi time, ti q first being to pro- vide needed x ievenula And the second to bring much needed _eqOqi., to the market-. place in ord to 1-"storc7a mo-riTafr?rtieaTine marketing o non-farm produced products. of competiti n betweenhase engaged in the zt The tax-ex mptstatutfor cooperatives was originally d ig aed to issist business units composed of arangs_tininseives, aimed prin- cipally at all vt: theq, to buy feed,_fertil- izer and fa m lenrenits at terms and under condi ions -WhIcic would bring bene- fitetothem. -? The first I come Taialict- in 1913 granted tax exempti s tie certain organizations, in- cluding agri ltufal groa-ps, arieraf-that time the number of salali rijis iii. the thated States and t e amount Cif product they pro- duced made str2.11.1-it plin Appear equitable. However, we lmvi5. now: witnesseda reduc- tion in the wailer of tarms in this conn- try and the ritraizatioia of production into ever larger a ricultural ?usiness units. Thus, the farmers, like other :types of businesses, have had to ow _isIze,_ Heavy reli nes on fain Implements have of course hel ed to creat i the situation where the farmer ust be fall-sized to afferci. the hardware ne essafy -t0 'Opellite today. The successful fa mer,-there&Dre; is one Who runs a fairly larg farm and is one who has a substantial i vestment hi land and can not be compared excePt by-!profession with his counterpart i 1913.. - With the ?eclicb in the number ofsmall - farms in the NaU211, thi cooperatives' n origi- nally envisio ed tele wliti discarded i favor of entering i to iltoes seaxlitzta Ofedt, the nonagricultural materials. Tie point where a visit to the local tives can be ikened toi9trig to :l haa,orodpweanrte- store, a servic Mallon olTelefi Siiperinalliet rather than o girsin d 'feed tlea,/er. This has been occ lonotiby tee fact that the farm itself has ch ngeci from: one WIlicli wa es- sentially a r lativety unit into being g a fairly large andlioldlutbusinessoperataipan. The exempt petative at that point should have been p mod out oroperation 4nce its need was eve orating. Ellutelrer, at this time they have al red 'their .?Perationi into non- agricultural temq ceinpete with a host of oth r IA-RDP69b00369R0002 ? - i m- October 3, Pftivrved For Rveffaigili 13ring new job training opportunities in existing plants to the ha,rd core unemployed. Create new jobs and new training oppor- tunities for the seriously disadvantaged in plants which will be establiShed in or near re4 9,1 eRneentrated unemployment. Encourage new enterprises combining the resoidces of big and small husinesses to pro- vide jobs and job training opportunities for the disadvantaged. To initiate this effort, the resources of the Department of Commerce, Defense, Labor, Health, Education and Welfare, and Housing and Urban. Development, the Office of Eco- nomic Opportunity, the General Services Ad- ministration and the Small Business Admin- istration will be combined to provide maxi- MUM assistance and to minimize the added cost of these in private industry willing to assume responsibility for providing training and work opportunities for the seriously dis- advantaged. ? Initially, nearly $40 million from a wide ? variety of existing programs will be made available, ita will millions of dollars worth of surplus Federal property and excess Fed- eral equipment. We will Offer to private industry: A full spectrum of aid to assist them in recruiting, counselling, training, and provid- ing health and Other needed services to the disadvantaged. Aid which will enable them to experiment With new ways to overcome the transporta- tion barriens now separating men and women from jobs. Surplus kederal land, technical assistance and funcLs, ;to facilitate the construction of new plants JP. Qr id?Oar areas of concentrated Unemployment. kxcess Federal equipment to enable them to train more disadvantaged people. ASsistariCe to joint enterprises combining the resources of big and small businesses to bring jobs and training opportunities to the disadvantaged. I have meed the Secretary of Commerce ,and thp Secretary of Labor to direct this test program and insure that all available Federal resources are_iatilized. The Secretary of Commerce will designate a full-time Spe- dial Representative as the single point of contact for private employers participating ? in this project. The Special Representative will provide employers with one-stop service for the entire Federal Government and will make whateyer arrangements are appropriate With the various Federal agencies for all prins Of Federai agstance. The Secretary of Labor will designate a full- time officer in the Manpower Administration Wpric with the Special Representative of the Secretary of Commerce in connection With the training and employment elements of these projects. I have also asked the Secretaries of De- fense, Health, Education and Welfare, and Rousing and Urban Development, the Di- ,tector of the Office of Economic Opportunity, the Administrators of the General Services Administration and the Small Business Ad- ministration to assist the Secretaries of Com- 'Xnerce and Labor in this test program and to assign a single official in their agencies Who will coordinate their efforts in support Of this program. Provision will be made for continuing liaison with, local projects and for careful research and evaluation to crystallize field eXperience i4to guidelines for future action. I have aslwd the Secretary of Commerce to invite corporations throughout the coun- try to join this new effort to bring mean- ingful employment to disadvantaged citi- ens hoth irt existing plants and, where feasible, in new locations near areas of con- eentrated unemployment. I have cgrected each Department and Agency of this Government to give top pri- Ority to all Rhases of this Important effort. The !EV Re China 9B00369R000200290056-2 ? APPENDIX A 4903 d e East: EXTENSION OF REMARKS OF HON. ABRAHAM J. MULTER OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Tuesday, October 3, 1967 Mr. MULTER. Mr. Speaker, the Chi- nese Communists are now moving into the Middle East and picking up the promises abrogated by the refusal of the Soviet Union to engage in actual hostili- ties against Israel. Whether China will ever really come to the aid of the Arabs in any renewed warfare is, of course, unknown. Certainly, however, the leaders of the shaky Arab governments would be well advised to avoid the enticing words of Peking and investigate what has hap- pened to other governments who fell for Chinese propaganda. The following editorial from the Sep- tember 15, 1967, edition of the Jewish Press recalls some of those governments and I commend it to the attention of our colleagues: THE UNHOLY ALLIANCE The Chinese Communists have completed an alliance with the Arabs at a recent meet- ing In Peking. Mao has lulled the extremist Arabs into his camp. He has further pledged to join them in destroying Israel. But this was to be expected. China's in- volvement all over the world is no secret. Russia trusts China as far as she can throw her! Red China has an unblemished record of double and triple crossing everyone she has ever dealt with including Russia. Prince Nordom Sihanouk of Cambodia followed the demands of the Red Chinese to the letter. He kicked out the Americans, spurned U.S. aid, opened his ports to the Viet Cong, and gave comfort and supplies to the Chinese guerrillas. He was a perfect host to Red China because he felt he would ob- tain an immunity from Communist invasion. HE GUESSED WRONG But he guessed wrong! Today the commu- nists are tightening their strangle hold on Cambodia. They have been successful in forcing out Cambodia's Prime Minister and other anti-communist leaders and as a result Cambodia is new at Red China's mercy. The case of India's Nehru isn't much dif- ferent. Nehru did everything to curry favor with Peking. When his work was completed the Communists thanked him with an in- vasion in 1962. How about Indonesia's ousted President Sukarno who just about sold out his country to become a communist puppet. He too, felt he was graining an immunity from com- munist invasion. But little did Sukarno know, that recently discovered communist documents show he was slated for execution as soon as Mao took over. OTHER NATIONS BETRAYED What happened in Laos when Prince Sou- vanna Phouma tried to keep neutral? He saw the communist menace and sought an Im- munity by innocently recognizing the pro- communist forces in his government. He got a jolt when the communists stepped up their drive to takeover Laos. The case of Burma is no different. Burma had attempted to placate the Communists and threw out Americans, trying to win favor with Pelllng. So what happened? Burma hap now become the chief target of radio Peking and radio Hanoi as an "imperialist" nation. Her days as a republic appear numbered! The Buddhists, too, made a deal with the Communists to obtain immunity. Yet, thou- sands of Buddhists have been tortured and murdered in Tibet. That Is the history of the Red Chinese reliability. ARABS TURN TO MAO Now it is the Arabs turn. The extremist Arab groups are holding conferences with Mao's Peking government. As usual, Mao has given "his word" to the Arabs that he will not rest until Israel is annihilated. Interpreting this effort in terms of past ex- periences we must assume that Red China will be taking over a major part of the Mid- dle East, without firing a shot. Russia is seriously concerned because she knows the present Arab regimes are weak and can topple at the drop of a hat. In fact, Rus- sia has slowed down her delivery of supplies to Nasser in recent weeks for that very reason. Russia recognizes the Red Chinese danger in the Middle East. But does the United States? Israel is the only country able to sustain a non-communist government in the Middle East and should be given all-out aid immedi- ately! Instead, our State Department is con- juring up ways to impede Israel at evey turn. We appeal to President Johnson to recog- nize the real danger in the Middle East, Red China. Israel needs economic aid, and military help. If war flares again in the Middle Eist, Israel will really be the Free World's first line of defense against communism. Railway Labor Urges Tax Reform EXTENSION OF REMARKS OF HON. HENRY S. REUSS OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Tuesday; October 3, 1967 Mr. REUSS. Mr. Speaker, on August 16, 1967, I suggested nine tax loopholes which, if closed, would provide additional revenue to the Treasury of at least $4 billion a year?roughly equal to the $4.3 of additional revenue to be raised by the President's proposed 10 percent sur- charge on individual taxpayers. In the month and a half since, I have heard from a number of individuals and organizations who favor tax reform to reduce the inequities in our present tax system. The following statement by the Railway Labor Executives' Associa- tion is indicative of the widespread in- terest in tax reform: STATEMENT BY THE RAILWAY LABOR EXECUTIVES' ASSOCIATION With the federal budget deficit for the present fiscal year now estimated as high as $29 billion, largely due to the war In Viet- nam, it is clear that the government needs additional revenues, However, we do not be- lieve that the moderate-income group who now are experiencing a difficult time making both ends meet should be forced to bear an additional tax burden. Instead of adding to the tax burdens of most working people and other moderate.. Income families, the government should be- gin now to tax the tens of billions of dollars Approved For Release 201/11/01 : CIA-RDP,69,1300309R000200290056-2 A4904 CONGRESS' 1493. 'Ways to Vietnam Owe EXTENSION OF REMARKS Approved For Release 1Iy8 ? that escape the income tax systerd entirely each year through tax loopholes used by the big ishrporations and the wealthy. Tliese loopholes?and especially the "capi- tal E ains" tax gimmick?explain why in 1965, the,test year for which figures are available, 22 a the 646 taxpayers reporting an income of 3I Million or more paid no income tax wha lever. The remaining 624 of these im- lier Sely rich Americans paid less than 30 per OF HON. JONATHAN B. BINGHAM OF NEW YORK IN THE HOUSE OF REPRESENTATIVES ceni of their income in taxes, even though Thursday, September 14, 1967 Tuesda the tax rate for all taxable income over Mr. BINGHAM. I should like to corn- Mr. DORN. S10(,000 is '70 per cent. These loopholes?and especially the "de- mend to the attention of -ny colleagues of the Veterans plet ten allowance" gimmick?explain why in and other readers of the REcoan the fol- bad occasion 1961 the 20 largest oil companies paid corpo- lowing splendid editorial Which appears, eration of the rati'irt incorne taxes at a rate of 6.3 per cent, in today's New York Time: . for almost 20 Ina( dad of the standard rate for large corpo- WAYS TO VIETNAM PEACE The story niarly eight years ago, Rep. Wilbur Mills, tars at the General Assembly for a halt in, lag the war The appeals of a half-dozen foreign minis- reaches from rati dna of 48 per cent. chairman of the House Ways and Means the bombin,3 of North Vietnam reflect a gen- founding Of a Committee, wrote (in Life magazine for No- eral consensus in the world organization that 1930 speeiflea :ventber 23, 1259) : "If we kept the $600 per- President Johnson came close to recognizing son41 exemption but taxed an other income, in his latest statement on the subject. Mr. spea.Ke 'T eterans. we? Could reduce the individual income tax Not all countries are prepared to criticize! rat ia by about 40 per cent and still raise just American policy publicly, of, course. But in. told in a mon as latch money." Instead Mills pointed out, "W have a tax system riddled with prefer- the corridors, among the closiest allies of the E. Adkins, W ern Lai O United States?and even among c benefits. ountries Veterans' Ad " Veterans' EXTENS HON. WM. JE OF TN THE HOTJS which support American objectives and pol-, est days. His I a the years since 1959, Congress has done icy in Vietnam?there is overwhelming Care of Vete vir ;ually nothing to close the loopholes and agreement ,hat the bombing ls a failure, that errors and de tas the untaxed incomes. In fact, the latest it blocks effective probing for peace and that and women as tail action by Congress was restoration of a cessation without a time limit would be tht 'Investment credit" tax advatage to the in the American and world interest. , A dministratio cox tiorations on an even more favorable basisvividly descri There is strong reason to believe that au thinopening of negotiations would follow an un4 1.,:.ons the Ve $2 illion a year. Meeting the burdens of the , i before?at a cost to the Treasury of conditional?or indefinite?Cessation of the ;0 medical se Vh nam war?both human and financial? bombing 1.1 three or four weeks. In a recent shopld be based on equality of sacrifice. In- Hanoi's statement that talks "could" follow cf. Jersey City on the nation's working people and other 1:Cl_i_s_tilkilished -forIbei- ste ard, these burdens have fallen most heavily means the same as Moscow s assertion that reviewed by our ese are the families whose sons and most othei countries believ has been ade4 . __, ski, a Membe of ig.$ I-I forl..,ye_ars,.., r. m( erate-income families. talks "would" take place is a question a colleague Alf d iem n- Enerrilli quately answered by the w ole Communist Mese are the families who see tho cost of bloc. If talks did not be n after severai looks at this ow Ilblia t3 ha kr9Wlealgt,,, weeks' borr bing suspension, the United StateS able and crit cal i ln. br >thers fight the war. deeply into their modest incomes. would be in a strong position in world opin- I commend hisiOXCellint bistery of living, month by month, bite ever more Fhese are the families who see corporation ion to step up the war. The appeal of Foreign Minister Malik of view by Mr. iein - Id_ fah Thilows, to pr !fits after taxes riseby 75 per cent between as trage worker's take-home pay after taxes of the effort repeatedly ma by Washington House and to thelPeOPI.J.,:0124,f, 01-intrY -: the attentio of :the efliberri- or-the 103h) and the first half of 1967, while the Indonesia is of particular interest because i: s only 24 per cent in the same period. to claim that American inte vention in Viet- r. These are the families who in many cases nam saved Indonesia from Communism. Mr. ADKINS GEE T IO_ MEDiVAITCAR etdi:Y -t- -,--, ri, Malik, ons of those who sily did the sav- "Medical Ca e of Veterrs ' by_ obinson fa xi another increase in Social Security pay- ing obviolsly feels Indonesia's interest and E,. Adkins, U.S Golfer-Mil t Printing Office, s tly rising state and local taxes. those of Asia as a whole would be beet e611 pp., paper, 1.25.. . a ts next year, and who must pay the con- served by a political accomrhodation in Viet- (The followi g is,ti gWErt -ream compite , These are the families?in the case of rail- nam, rather than continuation of the war. by Alfred Sie ins% , fprIter U.S. cOngres- ra Erd workers?who see the President and The Reece plan put forw d b Canada is man from th 1.:'ts tett based onma- CA >ngress using the Vietnam war as an excuse of importance because of anadian contadt serial supplied by ki_l_ _ tTref"Gretribef,g, 'T.< outlaw their right to strike, so is to hold with Hanoi as a member of the International Df Washingto , D.9., iii-u 1frrii7ier7PraranciT, down their wages. 1967 tory! pitrlily Told N (IT NW' tjT CARO T. CrIttP11 STPIVITIVES , ()Obbei" r. S:Peak9 ra:Aftferfiher Affaits_0,c ttee, ha've' _ WerVe, losely Che op- Ve tOttns', 2s.Arninistratio_ f tb.e_liziterican veteran 1 arid days follow- or"ge the - depiinlerite to e lal , __in gi eat- Feleial agency r y US --meiF The needs o - _ Mud- stoiV has now been nEntareflort by Robinson o harban'T?Itt of -the inisicalloir gift& its earrai- wolqc, etrified7Me lc 1 als: the -Urfals, ica44-.1_selfpiee of _t e_ _ __ arisl';- 'el - -.11 men ?elated WPithe-Neterans' . Irrihis _IrOztr. Adkin=s_ r re as : a tiF6 lie _ovs at gat a rsl e_ -e_ _Oli i i-F 1 Var, _ _ _.:u - have iriade ssu tbrjerst-y JOurtia N J.. thialliFerYboolc was "American ye ra !the:Iplaidid re- Control Commission set uj in Vietnam by of Arlington, a., , , ,, -- ______,,--- *hese are the families who see the gov- the Gene,,a, accords. Eater ai Affairs Seers- "To care for him Who a all have:Worn-a the , _ e> nment doing absolutely nothing about the tary Martin has been adv,, ncing his four- battle, and for his igidow ria--firs ist-pharie? la t round of price increases by the big stage solution since April Without any crit- those compas ioria4e toO, rota Lincoln's c( porations on steel, Chemicals, tires, alumi- iciarn by Hanoi. Several ingenious elements second inaug rat 'a_ddreq lifotimy ari- l: n , vinyl flooring, shoe materials, building in it make it worthy of a. favorable Ameri- nounced on a. ?hieraqu, "to" anyoh-e--passing n aterials trucks and textiles. can response., or entering etertirCLAd_minirstration Nearly a year ago, on September 14, 1966, While Mr. Martin described a halt in the building in shiggton, P.c. la the-Tag-- VI Railway Labor Executives' Association bombing as the "first priority," he included sion of the age cy. - = led on the President and Congress to strike in the fist tage of his plan an important Robinson E. Adkills, t14 mi.in compiler of a; inflation by ending the big tax loopholes gesture of North Vietnamese de-escalation, this study of the tnedict care vete'raria, a2r1 inequities, by imposing a special anti- yet the one that would be easiest for Hanoi has been part of that milnitiralrice the: This public care of vetera country to th It reviews th Medicine and its present op er, administr chief medical The establi istration ena gle point of office or hos benefit to whi inflation tax on the corporations that fail to to make--a cease-fire or pall-back from the liest days oft.e agsricy. : - hold the price line, and by other measures. demilitar zed zone. Um> declipiWts the medical pita,. a grogram is even more urgent today The remaining stages?Which would first s freln the,-carltest da.ys of our tan a year ago. Rep. Henry Reuss has pro- freeze forces, then achieve a cease-fire and fouilaingl3f-the-V *A. in 1030. p d a modest attack on the "capital gains" finally lead to the withdrawal of all external history of :14-e-Depaftment of - t k gimmick, the "depletion allowance" gim- forces from South Vietnhm?would ?by', Surgrry- frith Itsbeginning to