NATO AND ABM DEFENSE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70B00338R000300090031-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: January 9, 2006
• Sequence Number: 31
• Publication Date: March 15, 1967
• Content Type: OPEN

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March 15, 1967 CONGRESSIONAL RECORD - HOUSE
benefits each month to these 22 million ness of their average day being broken
people. When the law was enacted, it only by the postman delivering their
provided retirement coverage for work- mail. For those who do not live on a
ers only. Today, through various ex- mail route-and there are many in my
pansions of the legislation, it provides district-they must depend upon friends
coverage to 14.7 million workers and to deliver the mail from town.
their dependents, survivors' benefits to Though expanded and improved over
5.3 million widows and orphans, disability the years, social security's biggest single
benefits to nearly 2 million disabled work- defect is lack of adequate benefits. Im-
ers and their dependents and medicare proper and unbusinesslike financing is
benefits to almost all retired persons over another.
65, regardless of their elibility for social Discussing first the adequacy of bene-
security cash benefits. _ fits, we discover that cash benefits have
Over the years a great number of been increased only twice during the 12-
changes have occurred in the system. In year period, 1954-66. The 71/2-percent
1950, only about one-fourth of the popu- increase in 1958 did. not restore the 1954
lations aged 65 and over were covered by buying power of cash benefits and the
social security. Now 86 percent are 7-percent increase in 1965 fell short of
covered and, if those covered by civil restoring the ? 1958 purchasing power of
service and railroad retirement systems benefits. During the interval between
are included then 91 percent are covered. 1958 and 1964, inflation cost social se-
Of those who reached 65 during 1966, curity pensioners approximately $1.4 bil-
95 percent were covered by one of these lion in loss of purchasing power. Bene-
Federal retirement systems. By 1985, it fits which fall behind the cost of living do
will be 98 percent. little but keep poverty levels current.
Social security was never designed to My bill, which would tie social security
replace private retirement-insurance. It benefit increase to the rise in the con-
was designed to replace, in part, earn- sumer price index would meet this prob-
ings and income loss caused by retire- lem of loss of purchasing power.
ment by providing a subsistence level. I am concerned, however, not only by
In this respect social security is more a the need for action to help our older citi-
pension system than insurance. Today zens to meet the burden of rising living
it is questionable whether it is furnishing costs, but. by the fact that the present
that level. The Social Security Admin- limitation serves to rob these citizens of
istration estimates that about 5 million the initiative to better their own circum-
persons aged 65 and over are living in stances. Many citizens, who could
poverty and another 5.5 million are kept otherwise attain a higher standard of
out _ of poverty by their social security living by augmenting their social security
benefits. But, 1964 figures indicate that incomes, hesitate to do so because of the
40 percent of the aged couples in the penalty of reduced benefits.
Nation had incomes less than. $3,000. To finance the cost-of-living increase
Twenty-five percent had incomes less I have proposed that payment be made
than $2,000. The U.S. Department of from general revenues. From its incep-
Labor budget for a minimum but ade- tion in 1935, the social security program
quate living for an elderly retired couple has been financed entirely by contribu-
is about $3,000 a year in a large city and tions shared equally by employer and em-
$2,500 In a smaller community. Thus it ployee. This creates special problems.
would appear at first glance that the Since the social security contribution
subsistence level is being met. But this rate is uniform and does not apply at all
is only. part of the story. Consider, for to higher levels of earnings, considered
example, the plight of aged widows. Ac- solely as a tax it is regressive. That is,
cording to a 1962. Government study, 70 workers with low earnings pay a larger
percent of the aged widows were living percentage of their total incomes than
in poverty. In 1966, average social secu- higher paid employees, thus it burdens
rity payments to the 2.5 million aged those least able to'pay the tax. How-
widows receiving them were only $74 a ever, this regression is offset somewhat
month. This is one-third less than the by the benefit formula which is weighed
average weekly earnings of workers still in favor of those with lower earnings.
on the job. But the fact remains that an increasing
Only one in four persons over 65 is number of low-income families are pay-
employed and few of the remaining have ing more in social security taxes than in-
supplemental sources of income. Though come taxes. Clearly the point is nearing
about 30 percent of the labor force are where it will be difficult to tax low-paid
currently in jobs covered by private pen- workers at much higher rates. Sooner
sion plans, only about 15 percent of those or later the principle that payroll taxes
over 65 are receiving private pension shall be the sole source of funding should
payments. Social security is the sole be modified or goals must be lowered to
retirement system for the remaining 85 the less than adequate improvements
percent of the population over age 65. that can be financed this way. This
It will be another 15 to 20 years before leaves only one alternative: Government
this figure drops as low as 70 percent contribution through general revenues.
and, for the foreseeable future, social A Government contribution for social
security will be the only retirement in- security is common practice in many
come for a majority of the retired popu- foreign countries. At the present time
lation. almost every West European government
Even more indicative of the problem makes.a contribution to social security
are those statistics that show the plight from general revenue. The countries
of the aged. Letters from constituents that make such contributions are the
back home reflect the loneliness of their Netherlands, Sweden, United Kingdom,
isolation. Many of them live alone, with Luxembourg, Belgium, West Germany,
no method of transportation, the bleak- and Italy. There is no reason why pres-
H 2755
ently covered workers should pay for the
amounts the early beneficiaries received.
.Instead, this financial burden should be' financed from general revenue sources to
which all taxpayers contribute. Why is
this so? Because of the savings in wel-
fare cost resulting from the establish-
ment of the social security system. For
example, since 1950 the percentage of
the older population receiving welfare
payments through old-age assistance has
decreased from 22 to 11 percent, a re-
duction of one-half. The social security
system has helped lift this burden from
State and local governments and in turn
from individual taxpayers who might
otherwise have had to contribute through
regressive local real estate and sales
taxes-not to mention progressive in-
come taxes-to finance additional public
assistance costs. A raise in social secu-
rity taxes is out of tfie question. The
only other alternative is to raise the base,
but this is not sufficient to increase bene-
fits significantly. For example, a $9,000
wage base would permit only a 4.5 per-
cent across-the-board benefit increase.
Deciding on - an eventual $15,000 base
with an immediate rise to $9,000 would
produce about 8 percent. Even taxing
all wages would mean a rise of only about
9.4 percent.
There are many myths concerning
social security. Among them is the con-
cept that social security is insurance.
Clearly it is not insurance in the gen-
erally accepted meaning of that term.
It might be described as "social insur-
ance" to achieve a social objective, but
it is not general insurance based on a
concept of risk sharing.
Social security and private insurance,
though similar in some respects, are not
really comparable and the two should
not be confused. Social security stresses
a social need and goal as well as individ-
ual equity. Private insurance is con-
cerned exclusively with the latter. With-
out social security, society would have to
care for those in need and higher taxes
would be required.
I have touched on just a few of the
basic issues in the social security pro-
gram in my remarks today. But there
are many other basic policy questions
that must be considered by the Congress.
Among these are,
First. What constitutes an adequate
level of income for retired persons?
Second. What part in - attaining an
adequate level of income should be
played by governmental programs and
what by voluntary group action and
individual effort?
Third. Of the public segment, what
share should be financed through payroll
taxes and what through general
revenues?
Fourth. What are the consequences-
to the economy as well as the aged indi-
vidual-to tax exemptions and various
other subsidies that recognize the in-
adequacy of income without providing a
direct increase in retirement benefits or
other income?
Fifth. What improvements in income
can be expected for future generations
of aged persons?
In addition to these more technical
points there is the larger question of re-
straining inflation in order to prevent
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CONGRESSIONAL RECORD - HOUSE March 15, 1967
the erosion of dollars set aside in pension
plans, private savings accounts, stock
investments as well as social security
trust funds. Since social security bene-
fits represent only a portion of income
loss through retiremerit, we must nct be-
come so obsessed with social security
operations that we overlook the neces-
sary tax adjustments to strengthen and
encourage private pension plans, which
are after all, designed to carry the major
load of the loss in earnings. - We must
facealso the problem of age discrimina-
tion in employment and the adequacy of
housing programs forthe elderly.
STATEMENT ON FEDERAL-STATE
PROBLEMS
(Mr. FINDLEY (at the request of Mr.
POLlocic) was granted permission to ex-
tend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
Mr. FINDLEY. Mr. Speaker, Richard
B. Ogilvie, presidentof the Cook County
Board of Commissioners, presented an
excellent statement of Federal-State
problems on February 27, to the National
Legislative Conference of the National
Association of Counties. In it he chal-
lenged State and local units to greater
initiative or face greater Federal take-
over. His remarks follow: -
Cook County is thecenter of one of the
most important urban areas in the entire
world. It contains within it boundaries
practically every problem which would affect
municipalities or counties in any part of
this country.
America's urban areas are in a state of
crisis today, beset by a host of problems-
financial, political and environmental. With
70% of all Americans now living in &;ies or
suburbs, this crisis is the most serious of our
times.
Historian Richard Hofstadter has stated:
"America was born in the country and grew
up in the city."
But there still exists to a degree a sort of
fundamental American bias against urban
life, as somehow less pure, virtuous, and en-
nobling than life on the farm. The nostalgia
for the life of Tom Sawyer is probably un-
quenchable, but this psychological barrier
must be overcome if we are to solve con-
temporary urban problems.
Our national life has changed dramatically
as America flocks to the cities. During the
80's, two trends have been especially note-
worthy: -
First, the Federal Government, via the
grant-in-aid, has become involved in many
functions formerly performed either by state
or local government if in fact at all, one
Congressman has described it this way:
"There are 400 federal aid appropriations
for over 170 separate aid programs, admin-
istered by 21 federal departments and agen-
cies, 150 Washington bureaus and 410 re-
gional offices. each with its own way of pass-
ing out federal tax dollars,"
The Bureau of the Budget has estimated
that for fiscal 1968, total federal aids to state
and local governments will increase by $2.1
billion over 1967 to $17.4 billion. This repre-
sents more than a threefold increase in the
last decade.
Many of our ailing urban areas are plead-
ing for massive doses of federal aid as a
panacea, arguing they have insufficient re-
sources to solve their own problems.
Unrestrained federal aid, however, often
produces an atrophy of local self-re:.iance.
Many communities have found to their sor-
row that termination of a specific program
has left them bereft on their Initiative and
totally incapable of meeting the resulting
emergency.
Unrestrained federal aid also leads to a
distortion in allocation of local resources
on a sound priority basis. There :s a great
temptation to concentrate local spending on
projects for which federal grants are avail-
able, regardless om need.
The second trend of the 60's is that state
and local governments have been increasing
their activities, outlays, and payrolls at a
record pace.
In Cook County, for example, budget re-
quests for fiscal-:.967 were approximately $22
million over fiscal 1966 expenditures. Infla-
tionary pressure, on Cook County's; budget
have more than wiped out any immediate
benefits. We have witnessed a continuing
spiral in demands for additional salary in-
creases and frin;e benefits by employees-
coupled with threat of strikes to compel the
acquiescence of the government. This proc-
ess can only lead to eventual bankruptcy,
not only of the I )cal government, but of the
people who must support it. -
Thus, it is apparent that an obsolete reve-
nue structure lies at the heart of our urban
problems in Cook County. Local govern-
ment is overly dependent on the property
tax as a source if revenue-the same basic
revenue source of 200 years ago.
If the federal government sincerely wants
to assist urban areas in meeting their own
problems, then state and local governments
rnusF be provided with a realistic tax break.
I strongly recommend serious consideration
be given to a solution pending in the Con-
gress, calling for a return to state and local
governments of sums necessary to finance
services best administered locally. Such re-
bates could be distributed to the states with
no strings attached on a per capita basis.
These funds should then be allocated to
cour.tfes and cites for use in urban areas-
wherever such a plan is feasible.
In sum, the question remains, what should
be the proper rose of the federal government
in solving the problems of the urban com-
plex?
First, urban problems must be solved at
the urban level. Federal agencies such as
Housing and Urban Development should lend
financial assistar.ce only in those areas meet-
ing 'oasic criteri#., the most important being
that an hones. local effort has failed.
Straight substitt.tion of federal programs for
local. programs is wrong.
Second, when need has been determined,
federal assistance programs must be viewed
as a corollary to local efforts, and they cer-
tain:.y demand meaningful national coordi-
nation. Widespread confusion has been gen-
erated by the new grant programs of the 89th
Congress.
Third, if the -irban area is to be rebuilt,
the basic means lies in private ir..vestment.
White governm ant should provide some
money and act as a coordinator, private enter-
prise should assame-the major responsibil-
ity. Senator Peercy's proposal to create a
National Home ownership Foundation well
fits this criterion.
Finally, local government can only assume
its proper role in the federal system if a
program of tax sharing were initiated.
Unless state avid local governments awak-
en to the political realities of our time, and
unless the federal government fully recog-
nizes the necessity of a properly balanced
federal system, the final result will be a
much wider arse rtlon-of direct federal action
and control than has ever been experienced
here
nI~fore.
'(Mr. FINDLI+.E,Y (at the request of Mr.
POL-coca) was ;ranted permission to ex-
tend his remarks at this point in the
RECORD and. to include extraneous mat-
ter.)
Mr. FINLLIEY. Vlr. Speaker, the cru-
cial relatiolisl ip between antimissile de-
fense and Vie future of the Atlantic Alli-
ance is discussed ably in a recent column
by the note:,.d correspondent Edgar An-
sel Mowrer. Here is the text of Mr.
Mowrer's stat{eraeni,:
U.S. ANTIssrS8]LE DEFENSE WOULD GIVE
NATO A NEW LIFE
(By F,dgar Ansel Mowrer)
Next only to!Russo-American togetherness,
the main reason for the decay of NATO Is
the Europe.gnt' growing disbelief in the
United States' tviilingness to risk nuclear war
to defend tit r countries. Unless we are
ready to junk NATO altogether, possibly in
favor of "corivelrgence" with the Soviet Union
on nuclear policy, to the exclusion of "lesser"
countries, the i'esstoration of our "credibility"
should be a major aim of any American Ad-
ministration.
Almost a year ago, at the University of
Penneylvanh , I heard. Edward Teller, the
"father of the 1I-bom.b," make a moving plea
not only for immediate start on a pro-
gram of she':ters and anti-missile missiles at
home, but i::r West Europe as well.
Teller argie 1, wisely, I thought, that the
more Americas mad? themselves immune to
missile attack,jthe mare likely they would be
to risk nuclo:a>{ war to defend Europe. Fur-
thern.ore, the more defense our European
allies enjoyed,'the readier they would be to
participate in a serious' anti-communist
policy. Eve]] the French, though Teller did
not say so :specifically, would be less eager
to bul.ld bridge s';o Moscow and Peking at the
expense of NATC if they had some protection
against a Soviet missile attack.
FRANCE 'VULNERABLE
Today the 1*rench are completely vulner-
able, their only deterrent their own plane-
carried A-bcinnbss and the "hope" that the
United Status would deter any sort of attack
on West Eu:?oje by its readiness to--Unleash
"massive nuclear retaliation."
Whether Te4eir's plea made any impression
on Secretary Of Defense McNamara and his
all-knowing Whiz yids is doubtful. But
since then, the Administration has reluc-
tantly admi';te that the -Soviet have placed
anti-missile missiles around Moscow and pos-
sibly other eitiie3. Thereby they unleashed
an A:nerica:i debate, with McNamara, the
Whiz Kids end the peaceniks in the Senate
on one-side, the professional soldiers includ-
ing the Joint tlh'.iefs of Staff on the other.
Behind McNamara are of course the left-
over l ennecly'itas who have staked their all
upon "creatirig substantial cross-national
diffusion-of interest and, ultimately, of pow-
er," with the Soviet Union. Any recrudes-
cence of th-' *r]ns race might put a crimp
in this.
But the Jolt Chiefs have another power-
ful supporter. i In a'.etter to the N.Y. Times,
physicist Eu.etre P. Wigner, Nobel Prize win-
ner in physics and co-creator of the A-bomb,
warns that "if, the larders of the USSR be-
lieve in the po,ssibi:.ity of protecting their
people and ore willing to spend vast sums in
their defens.r, they may have sound reasons."
I.IF'R. ON PERCENTAGE
McNamara, and company have argued that
even the besi an 1i-missile defense would save
only :'orty or fifty million Americans, leaving
the others exposed to instant or later death.
Wigner writeaL, "A study sponsored by the
Academy of Science in which more than
fifty natural !and social scientists partici-
pated, concluded that whole-hearted civil
defense me:isttres alone- could protect the
lives of 80 per cent of our people from a
nuclear atte.cle directed against the popula-
tion. A well!-donceived anti-missile program
could further .!improve the protection even
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March 15, 1967 CONGRESSIONAL RECORD -HOUSE
against an increased capability of the
enemy."
If this be true, and the burden of refuting
it lies on McNamara and the Whiz Kids, then,
in view of the restorative effect on our Euro-
pean allies' belief in the United States which
it would have, the case for embarking imme-
diately, not merely upon a small "anti-
Chinese" anti-missile program, but of going
all out to surpass anything Moscow can de-
vise, seems irresistible.
REMARKS OF GOV. JOHN A. VOLPE
(Mr. KEITH (at the request of Mr.
POLLOCK) was granted permission to ex-
tend his remarks at this point in the
RECORD and to include extraneous mat-
ter.)
Mr. KEITH. Mr. Speaker, on March 4,
a little more than a week ago, the dis-
tinguished Governor of Massachusetts,
John A. Volpe addressed the graduating
class at the Massachusetts Maritime
Academy in my district. I include the
Governor's remarks in the RECORD.
The Massachusetts Maritime Academy
is one of thep oldest and finest institu-
tions of its kind in the Nation. Its. grad-
uates have served their country well in
peace and in war. Under its new presi-
dent, Arthur S. Limouze, the academy is
preparing leaders to meet both the age-
old challenges of the sea and the fast-
developing challenges of the nuclear age.
President Limouze's service with the
Navy and with the Army Air Force in
the China-India-Burma theater together
with his experience as dean of the U.S.
Merchant Marine Academy at Kings
Point make him a most excellent leader
for the Massachusetts Maritime Acad-
emy in these trying, changing times.
The occasion for Governor Volpe's ad-
dress was unusual. The academy nor-
mally holds its commencement exercises
in the balmy sunshine of mid-June. But
this year's class was leaving more than
3 months ahead of its usual schedule-
in the bleak, gray light of New England
winter. The cause of this change-a
crisis in our merchant navy: these men
are needed now to keep our efforts in
Vietnam from grinding to a halt for want
of seaborne supplies.
Governor Volpe pointed out to the
graduates that the critical need for mer-
chant officers which foreshortened their
education is part of a larger crisis. The
American merchant fleet has declined
to such a point that American-flag ves-
sels can scarcely support our military
commitment in Vietnam. The need for
American merchant officers is part of the
larger crisis which hangs over American
shipping and the American shipbuilding
industry.
Governor Volpe proposed that we
should embark on a massive shipbuilding
program to avert this crisis. Few men
are as well qualified as John Volpe to
make such a proposal.
John Volpe is a builder. In the depths
of the depression, he cashed in his only
asset, an insurance policy, and started
the John A. Volpe Construction Co., now
one of the largest building contractors
in the world.
John Volpe knows how to face a prob-
lem. He served the late Christian Herter
as Massachusetts' Commissioner of
Public Works when Herter was Governor.
In 1956 President Eisenhower chose Volpe
to be the first Administrator of the Fed-
eral Interstate and Defense Highway
program. Our Interstate Highway Sys-
tem is a monument to John Volpe's initi-
ative.
Now in his third term as Governor
of Massachusetts, Volpe has faced the
hard problems of providing more and
better State services and the even harder
problem of raising the money to pay for
these services.
In his remarks to the Massachusetts
Maritime Academy, Governor Volpe
asked the graduates to join him in facing
up to the problems of our shipbuilding
program-I ask the Congress to join with
John Volpe and these graduates in fac-
ing up to and resolving these problems.
The remarks follow:
REMARKS OF GOVERNOR JOHN A. VOLPE AT
MASSACHUSETTS MARITIME ACADEMY GRAD-
UATING CLASS
This 125th graduation of the Massachusetts
Maritime Academy has ... as every one here
knows . . . been accelerated by nearly four
months at the request of the Federal Gov-
ernment.
A most serious need for licensed ships' offi-
cers brought about this request ... general
commercial shipping . . . and particularly
ships supplying American servicemen in
Vietnam ... were being delayed or threatened
with delay because of a shortage of required
officers.
Furthermore . . careful studies by Gov-
ernment and industry indicate that the need
will be a long-time one.
A recent study by the National Academy of
Sciences predicts a net decrease in the officer
work force size in excess of 5 percent per year.
It is partly in recognition of this need
that I am here today.
It is my pleasure to congratulate these
young men upon the completion of their
course of studies at the Massachusetts Mari-
time Academy. and to salute them as they
embark upon their vitally important careers.
That they will prosper and succeed
we can be sure.
Their success at the Academy promises suc-
cess in the maritime field.
They have learned that hard work ... per-
sistence . and faithfulness to their ideals
are the necessary ingredients to academic
success.
They will soon know that these same in-
gredients will spell success for them as they
rise in their profession.
Now this is a theme that could be ex-
panded for some twenty minutes into a
conventional graduation address.... Dur-
ing which I could paint the conventional
picture of success American college graduates
all too often hear.
But that is a kind of speech heard
throughout the land in June. And we are
assembled here ... Act in June ... but in
March.
March weather is not June weather .
and the 'problems facing these young men
in March are the problems of March . . .
not those of a mild and pleasant June.
These graduates are going into a profes-
sion in which learning cannot cease.
As they strive to advance in their profes-
sion ... they must also face and solve the
problems confronting that profession
for a successful solution to the ills plaguing
the maritime industry which we as a Nation
have misunderstood ... ignored ... or ne-
glected throughout much of our history.
We have often had cause to regret this
misunderstanding or neglect . but we
have not done much to prevent the contin-
uation of a lack of an adequate maritime
policy.
H 2757
We have , in short . . . never devel-
oped and enforced a consistent national pol-
icy -for our merchant marine.
Surely . it is high time we did so.
I do not think that those of us who are
in public office in the United States should
wait for these young men to take the lead
in formulating a consistent and viable pol-
icy.
But I think it is our national responsi-
bility to provide such a policy and to turn
over to the graduates of the various acad-
emies the task of making the policy operable.
The difficulties to be overcome in estab-
lishing our merchant marine on a proper
footing are great.
They have seemed to some to be insur-
mountable . as young officers of the cali-
ber here today enter the industry . . . the
insurmountable will . . . I believe . . . be
surmounted.
What are some of these major problems?
In one short afternoon I could not begin to
name them all.
First of all . and fundamental
there is the problem of where the merchant
marine fits into the structure of American
society.
Is it a branch of our commerce , . . or
is it a vital arm of our national defense . . .
or is it both at once?
At least one other nation , the Soviet
Union . holds that a strong merchant
marine is important both for commerce and
for defense.
As long ago as 1960 and as recently as 1966,
American students of maritime affairs have
commented on the Soviet Union's objectives
in building a strong merchant fleet.
In the proceedings of the U.S. Naval In-
stitute in 1960 . . . Commander Bernard
Kassell commented on the apparent fact that
foreign trade was considered by the Soviets
to be an integral part of foreign policy.
"Once the trade deal is signed ." he
wrote . "the Soviet merchant ship be-
comes the active agent of that policy."
And in a recent issue of the CONGRESSIONAL
RECORD .... Congressmen KEITH of Massa-
chusetts and ROGERS of Florida issued a re-
port on the increased strength of the Russian
merchant fleet . pointing out that .
"they are using their'strengthened maritime
position to further their strategic objectives
particularly with respect to the lesser
developed nations of Africa and Asia."
This last report points out also that in
1965 the Soviet Union accepted delivery of
100 merchant ships , while the United
States took delivery of only 16 ... that we
had on order 41 merchant ships of over 1,000
tons and the Russians had 464.
Clearly ... the Russian emphasis on build-
ing a strong fleet to foster its foreign pol-
ices would justify grave concern on our part
that we are not keeping abreast of the
times.
Commerce or-defense? It seems that the
merchant marine is both . and that we
need a nationally-determined policy to sup-
port our merchant fleet for both reasons.
Once this fundamental policy has been de-
cided upon we can look for changes for the
better in all phases of the industry.
At present . . . in spite of promised pro-
nouncements . . . no clear policy presents
itself.
On one hand the Federal Government asks
the.Academy to graduate early to meet a real
need.
As Alan S. Boyd ... then Under Secretary
of Commerce . . Now Secretary of Trans-
portation . . . wrote. . . "The State academies'
graduates . fed into the fleet during
the early months of 1967 ... will make the
difference to a large extent between ships
sailing on time to Viet Nam . . . and ships
waiting loaded at the piers."
Secretary Boyd was speaking for the same
administration that allows 90 percent of our
general cargo to be carried in foreign ships
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CONGRESSIONAL RECORD HOUSE March 15, 1967
... and the same administration that sees
nearly 100 percent of our aluminum ore im-
ported in ships not flying the American flag.
This is the same administration whose: Sec-
retary of the Navy was quoted as favoring an
increased budget . "because we need a
strong Navy to keep the sea lanes open." I
am tempted to ask ... open for what?
American shipbuilding and shipyard ca-
pabilities have been neglected since the end
of the Korean war or before.
An administration urging early gradua-
tion of officers and recommissioning of WW II
victory ships is also proposing to de-commis-
sion the only nuclear merchant ship in the
world ... the N.S. Savannah.
If you can determine a policy behind these
contradictions . . . young men .. you are
wise indeed.
It escapes me . and it appears to escape
those leaders of the maritime Industry who
are most concerned.
Here we are ... the richest and most pow-
erful Nation the world has ever known .
and we find ourselves involved in what has
been called a very minor brush war some
10,000 miles away.
This should cause no major pressures on us
in our great strength. But what do we find?
Our "friendly" neighbors ... willing to
trade with us in any form . . . having had a
chance to pick over our laid-up fleet of
WW II ships and choose the best ... these
neighbors are not willing to carry cargo to
our men in Vietnam.
We ... the most powerful people today
are forced to bring out of mothballs
ships built 20 to 25 years ago.
Ships that could have been recommissioned
for $100,000 in 1947 and will cost up to
$500,000 today. No better ... just older
. as someone remarked.
If our effort in Vietnam can so strain our
maritime facilities ... We have far too small
a margin of safety.
This Is a lesson we should have learned
from both the World Wars. It has been
proposed that American shipping firms be
allowed to build abroad in foreign yards
where labor costs are lower than our own.
Now ... if shipping were solely a part of
commerce . . . not of defense ... this might
be feasible.
But shipping is not solely commerce. Our
own shipyards . if foreign building were
to be encouraged ... would deteriorate still
further.
Our skilled workmen would drift away to
other industries ... and we would have no
defense capability left.
Another time . . . can we be sure there
will be an England to buy us the time we
needed in the 1940's to develop our ship-
building capacities?
To risk the chance is not policy ... but
absence of policy.
In 1946 there were 76 shipyards In the
United States. Today there are perhaps 11.
In the first 180 days of WW II ... 57 Ger-
man submarines sank 519 United States
vessels. Our merchant fleet today Is about
1,000 vessels.
One major power today has an estimated
500 submarines. We have ... I repeat .. .
11 shipyards.
Four years ago the Secretary of Defense
acknowledged the importance of naval pow-
er but said that planes would be relied on
to transport men and materials.
Ships would be needed only to provide
back-up supplies and heavy equipment.
Recent reports indicate that 2% (chiefly
personnel) of. the total effort in Vietnam
is carried by plane . .. 98% is still carried
by ship.
This ... It might be observed ... is a 2%
Improvement on the situation during the
Spanish American War 69 years ago.
But these are the problems of the present.
What are the challenges of the future?
There will be k igger ships. A 500000 ton
tanker has been designed in Britain, more
than twice as large as anything now afloat.
There will be fas Tr ships.
The 22-knot nuclear powered Savannah
could. be replace(Iby 30-knot nuclear ships
if a bill before Congress is passed.
Containerization of cargo has caught on.
The Army's experience with containerization
for Vietnam has been most successful .
and general comriercial shipping is catching
on.
Automation of ships Is already with us
and will advance rapidly.
In these areas you young men graduating
today will make your careers.
It is up to us as a people to give you a
stable and workable merchant marine policy
so that you can sae to the technical progress.
So far?we have not much to offer. We
have ... to be sure ... done something.
Three States . Maine, California, and
Texas . . have followed the lead of New
York and Massachusetts and have estab-
lished State-supported maritime academies.
The Federal Maritime Administration fur-
nishes each scho),l with a training ship .. .
provides a direct payment to the State .. .
maintains the vessel . . and subsidizes each
student for a part of his expenses.
The Federal Government also allots funds
to underwrite new construction of ships .. .
$&5,000,000 in the last budget . . . as con-
trasted with $820,000,000 to construct a ve-
hicle to travel on the surface of the moon.
But what should we establish for our new
and badly needed policy?
For a start . let us live up tc the pro-
visions of the Merchant Marine Act of
1936 ... which called for a merc..iant ma-
rine capable of handling all our domestic and
much of our foreign water-borne commerce
in American built ships ... manned by
American seamen.
Provisions for :subsidy and administration
were included in :he law.
Then let us re?"few the needs of our ship-
yard;, so that the best and most economical
construction methods can be applied.
Japan . whose entire maritime Indus-
try was devasta;ed In WWII has ...
by developing new and efficient methods .
become the leader in ship construction.
Her shipyards are the most modern in the
world today.
We won a war . . . but we are losing some
battles.
Let us Invest in research with some
shadow ... at least ... of the effort we
spend on space I ravel so that the ships we
build, will be up to date ... not ovt of date.
And let us tra:.n the finest corps of mer-
chant marine o8 cers the world hes known.
Only the best rien can be trusted with the
fines,; ships. Ant only the best should be
sent abroad as the unofficial representatives
of our great Naticn.
Like it or not ... all of us are to some
degree judged by other nations by the kind
of merchant marine officer who represents
its.
The modern ship . conventional .
nuclear . or a atomated . is one of the
most complex pieces of machinery devised by
man.
Such ships require officers skilled in all
the Intricacies of modern technology.
If Massachusetts and the Nation are to
keep pace with the times . .. we must pro-
vide the training needed . not only for
today's ships ... but for tomorrow's.
Our young men must go out as profes-
sionals of the highest order . respected
by all whom the:; meet for their knowledge
and ability.
We have great faith in you ... the grad-
uates of 1967.
Let us hope that you can have faith in
tion plays in our economy and in our secu-
rity ... and It is up to us to determine the
course we slu ll ask you to steer in the future.
CONCOESSIONAL ETHICS
(Mr. REID! of New York. (at the re-
quest of Mr.. *aLLOCix) was granted per-
mission to ejtend his remarks at this
point in the Ftl.cORD and to include ex-
traneous matter.)
Mr. REIDD of New York. Mr. Speaker,
events of the recent past have cast into
grave doubt. iii the minds of many Ameri-
cans, the manner in which we in the
House and the Members of the other
body have borne the mantle of public
trust with vwllich we have been invested.
We are ;t `a critical juncture. In a
democratic ahd representative society,
the people :cave: the right to demand of
their repre,eritatives a standard of con-
duct above that of the marketplace, a
standard of conduct that betrays no
breach of their public trust. Public con-
fidence in our, care of this sacred trust is
seriously shakeriln our land today.
I aln introducing a unified package of
six bills today which, in my judgment,
can help to 'turn the tide. The bills
would provido fior:
First. Fliil O isclosure of income, gifts,
real estate :toldings, creditors, and busi-
ness enterpiiges in which Members own
stocks, bonds, cr other securities, or are
otherwise ass(rciated;
Second. P,sfa:olishment of a perma-
nent House-Senate committee on ethics
and conduc L;
Third. Formulation of a comprehen-
sive code of ethics for the Congress, in-
cluding rigcrgws conflict-of-interest pro-
visions; and
Fourth. Substantial increases in Con-
gressional pad End allowances. The dis-
tingu"shed Committee on Rules of the
House has been engaged for the past
several wee icsi in hearings regarding the
estab).ishmeat of an Ethics Committee.
While I support strongly the establish-
ment of sucha committee, it is impera-
tive, in my jtdgme:at, that we not defer
unnecessarily; or perhaps totally side-
track legishatiori on full disclosure in the
debate over An Ethics Committee.
Full disci.o$ure is the most effective
vehicle for % :,ding, against conflicts of
interest in Government service. The
American public is not unaware of our
repeated ff il re to meet this problem
head on. I!teusal now to act decisively
and with deipatch would constitute a
serious dereliction of our public trust.
Mr. Speaker, my bills cover a broad
range of slrbje.ts. In a framework of
full clisclos!.ire and a uniform code of
ethic,:, sub:,tdntial increases in salary
and allowance's should relieve Members
of reliance On outside sources of income
and permit full attention to what is al-
ready a 12-r:ngnth-a-year job. No Amer-
ican should be denied the opportunity
to serve in Congress for want of financial
means. But once elected, he must be
free to devote virtually his full time and
energies to t$le exercise of that para-
mount responsibility.
I should alto add that to meet fully
our respons:;~bnilii;ies in this area we should
undertake '.o reform the present state
tributions end their disclosure. I hope
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