EAST-WEST TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70B00338R000300070011-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: September 12, 2005
• Sequence Number: 11
• Publication Date: May 21, 1968
• Content Type: OPEN

Approved For Release 2005/11/21 :CIA-RDP70B00338 000300070011-6
Mai ~1, 1968 CONGRESSIONAL ][2ECORD - SEN TE
Billions
Unexpended balances of funds already
appropriated _____________________
$46.0
Authorizations already enacted to
spend from so-called debt receipts,
and from other sources____________
24.0
Total ________________________
145.5
These figures do not include various trust
funds such as social security, etc.
The Federal debt is $276 billion. The con-
tingent liabilities by guaranties of various
Federal borrowing programs is $260 billion.
Our national income in 1956 was $325
billion, so our various governments are col-
lecting in taxes in cash mare than one-third
of the national income.
I do not believe the free enterprise system
can long survive under such tax burdens.
Mast corporations now pay taxes, in all
forms-Federal, State, and local-of more
than 60 percent of their net revenue, and
same individuals pay over 90 percent.
In the face of these conditions, it is fool-
hardy in the extreme to continue to spend
an this high level.
As chairman of the Joint Committee on
Reduction of Nonesesntial Federal Expendi-
tures, Iask you far a detailed report of the
economies actually made effective by adop-
tion of the recomemndations of the Hoover
Oommdssion. President Hoover has stated
that the recommendations of the Hoover
Commdssion point the way to saving in gov-
ernmental expenditures $5.5 billion annually.
I have been unable to find in the budget
where any of these recommendations have
been incorporated. I would like to be en-
lightened as to this.
I firmly believe the pending budget should
be reduced by at least $5 billion, and this
would leave an expenditure budget $2 billion
mare than 1955.
I hopefully await the results of your in-
vestigatians and word from you and the
President as to how the pending budget can
be reduced.
Cordially yours,
EXHIBIT 4
JOINT COMMITTEE ON
INTERNAL REVENUE TAXATION,
Washington, D.C., Mai 16, 1968.
Hon. JoxN J. WILLIAMS,
U.S. Senate,
Washington, D.C.
DEAR SENATOR WILLIAMS: I am 1'eplyirig t0
your telephone inquiry as to the application
oP the proposed expenditure reduction to an
agency such as the TVA which to some ex-
tent at least generates its own revenues.
Expenditures by the TVA (on a net basis
insofar as power revenues are concerned)
are included in the unified budget. For that
reason, expenditures by the TVA could be
made subject to some portion of the $6 bil-
lion expenditure reduction. The question as
to which agencies same portion of the $6
billion reduction would apply is determined
by the action taken by Congress with respect
to appropriations and other provision for
obligational authority, To the extent the
action by Congress may not fully account for
a $6 billion reduction in expenditures, it
would be up to the President to determine.
the allocation of any additional reduction
necessary to achieve the $6 billion goal.
He could presumably do this by reducing
specific programs or on an overall basis by
requiring agencies to make some percentage
reduction (perhaps only with respect to.con-
trollable programs). As a result, he cotxl~l,
The provision relating to employee reduc-
tions does, under the conference agreement,
apply to the TVA. In other words, the TVA
in the case of its permanent, full-time em-
ployees would be permitted to fill three
vacancies out of four until such time as the
level of employment generally reached the
level of June 1966. In. the case of temporary
or part-time employees, they would be lim-
ited to the salne number they had in the
corresponding month in 1967. However,
.either in the case of permanent full-time
employees or in the case of part-time or
temporary employees the Director of the
Bureau of Budget could reassign vacancies
to be filled to the T,,,~~1 from same other
agency, ii he fhis nec or appro-
To sum
$6 billion
have to b
S 5~'1"~" "
staff of the Joint Economic Committee,
making it abundantly clear that TVA's
internal funds, power funds, revenues
from the sale of bonds and power notes,
are not affected by the proposed decrease
in expenditures.
Mr. WILLIAMS of Delaware. They are
not affected any more than they would
have been under the proposed $4 billion
reduction or, for that matter, under
existing law except as to degree. I quote
from the last paragraph of the letter just
placed in the RECaRn.
To summarize, no part of the proposed $6
billion reduction in expenditures would have
to be assigned to the TVA, although the
President, in his discretion could so assign
assigned to the TVA, although '~as alsu wuulu ue Ll uc vi slie ~Y au-
nt in hi.s discretion could so lion. Mould be true of the existing law,
portion of the reduction. The if we a ume that we killed the confer-
contrary, affect the TVA, but approving this reduction we specifically
of the $ureall of the Budget made no exceptions but left to Congress
any such reduction by re- and the executive branch an opportunity
he considered it necessary or y_ __ _ ,_ _ + +, _ _._+ w. r ~,,;~~;+; ?~ +~
Mr. BAKER.
Senator yield?
Mr. President, will the The bill did spell out, however, that so-
l
n
t d t '
a
s
clal security paymen s an ve e
of Delaware. I yield. benefits as provided under existing law
r
o
b ff tdbtth nt
l
t
Mr. BAKER. M . President, I com-
mend the distingl~shed Senator from
Delaware on his rei~iarkable presenta-
tion and his cogent ~,nd effective criti-
cism of the present pasture and status
of the fiscal situation '-}n this country.
As always, he has don a magnificent
job in this analysis, an \ has given all
of us the basis for judging the next steps
in and the necessities of '`,~ dangerous
situation. ~
I especially at this point wi~~l to under-
score briefly the fact that I dnderstand
that there have been a numbed of calls
by administration officials t6? many
Members of Congress-I knoUZ there
has been a call to this Member dlf Con-
gress pointing out that funds ftlr the
Erlanger Hospital in Chattanooga would
be rut or would not be funded in fiscal
1969 until "the Congress was ably to
work out what it is going to do" aiiput
this expenditure reduction-tax increase
thing. This is from a representative of
fiEW in a call to my office on Friday,
May 17.
I make no criticism of the adminis
tration in this respect, except to say,
that the time has come, in my judg-
ment, when the executive department
must specify the cuts, in the best and
the least disruptive manner, that will
accomplish the purposes of this obviously
deeded reduction in expenditures and
increase in taxation.
On one other subject, I thank the
Senator from Delaware for pointing up
the situation with respect to TVA. This
is not a case of asking that TVA be ex-
cluded. On March 29, 1968, I introduced,
to offset any reduction it otherwise might
have to make in expenddtures by any in-
crease in power receipts which it receives.
On the other hand, he could make the allo-
cation without regard to an increase in power
revenues. ,
cause they ~~.re-I~Qt, part oft dminis-
trative budget. TYirs; "I -Tin erstand, has
been stricken in conference.
I thank the Senator from Delaware
for once again, with his letter from the
e a ec e u ese we
e
d no
wou
considered exceptions since they were
already mandatory. The bill did provide
that the special costs of the Vietnam
war and the interest on the national debt
would not be included since they were
both recognizeci as uncontrollable items.
I thank the Senator for his remarks,_
and I thank him for calling attention to
the particular project in Ylis State with
respect to which he received notice that
it would be canceled if we retained the
$6 billion expenditure reduction. I am
aware of the fact that many Members of
Congress are receiving such calls. I have
received some calls from agencies in our
State that they are receiving notice from
Washington that if expenditures are re-
duced by $6 billion their programs will
be cut by x amount. This practice is
nothing but an indirect attempt on the
part of the administration to defeat a bill
which it does not-have the courage to
face up to in an election year,
OMNIBUS CRIME CONTROL AND
SAFE STREETS ACT OF 1967
The PRESIDING OFFICER. The Chair
lays before the Senate the unfinished.
business, which will be stated by title for
the infarmatiorl of the Senate.
', T11C BILL CLERK. A bill (S. 917) t0 aSS1St
State and local governments in reducing
the incidence of crime, to increase the
!effectiveness, fairness, and coordination
of law enforcement and criminal justice
systems at all levels of government, and
for other purposes.
The PRESIDING OFFICER. Is there
objection to the present consideration of
the bill?
There being no objection, the Senate
proceeded to consider the .bill.
ORDER OF BUSINESS
Mr. McCLELLAN. Mr. President, I
yield 71/2 minutes to the Senator from
Virginia [Mr. BYRnI.
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 Approved F r ease 2005/11/21 :CIA-RDP70B00338R000300070011-6
oC0 RESSIONAL RECORD -- SENATE May ~1, Y 968
Mr. TYDINGS. Mr. President, I yield a
like amount of time to the Senator from
Virginia.
Mr. BYRD of Virginia. Mr. President, I
express my approciation to the Senator
from Arkansas and the Senator from
Maryland for yielding to me.
1"llr. President, I ask unanimous consent
that I may speak on a subject which is
rrat germane.
The PRESIDING OFFICER. Without
objection, it is so ordered.
NYr. JORDAN of North Carolina. Mr.
President, will the Senator from Virginia
yield to me far 1 minute?
Mr. BYRD of Virginia. I yield 1 minute
to the Senator from North Carolina.
AMENDMENT OF THE FOOD STAMP
ACT OF 1964
Mr. JORDAN of North Carolina. Mr.
President, an Friday, May 17, the Senate
passed S. 3068. The bill was reported from
the Committee an Agriculture and For-
estry without amendment, and was
passed by the Senate without amend-
ment. However, there W as a mistake in
printing the bill, as reported, so that as
printed it differed from the bill as intro-
duced.
3n order to correct the RECORD, I ask
unanimous consent that the vote by
which S. 3068 passed the Senate on Fri-
day, May 17, be reconsidered, together
with the third reading; that the bill be
amended by striking from line 5, page 1,
the figure "$255,000,000" and inserting in
lieu thereof "$225,000,000"; a.nd that the
bill be read a third time and be repassed.
The PRESIDING OFFICER. Is there
objection? The Chair hears no objec-
tion, and it is sa ordered.
The bill (S. 3!)68) , as amended, read
the third time, and passed, is as follows:
L'e it enacted by the Senate and House
o/ Representatives of the United States of
America in Congress assembled, That the
first sentence of subsection (a) of section
16 of the Food Stamp Act of 1964, as
amended, is amended by deleting the phrase
"not in excess of $225,000,000 for the fiscal
year ending June 30, 1969;" and inserting in
lieu thereof the phrase "not in excess of
$245,000,000 for tl:e fiscal year ending June