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October 7, 1974
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c 1~3~6 Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 CC}N~RESSIONAL RECORD -SENATE October 7, 19 %y~ American Express cards have to keep prices high enough to cover that company's com- missions or 3 to 6 per cent. Gas prices have to reflect credib-card service charges reported as high as 7 per cent, plus the cost of bad debts and administratpn. Take away all those hidden costs, and we might -get a breather in the price rise; Credit? Good people, yae are $185 billion in hock for TV sets and airplane rides and other consumer stuff. We-take out $14.b bil- lion in consumer loans everymonth, but took out only $0.9 billion in xew mortgage loans in the month of June. Cut back on those consumer loans, even bri('fly, even partially, and there would be billio~~1?s of dollars worth of credit sloshing arouxifl to bail out the housing industry and ex~yand factories and create jobs and boost tie supply of goods enough to stop inflation:'~n its tracks. Interest? If you turx~ billions of dollars worth of credit loose likthat, interest rates The cost? It wouldn come out of your pocket. You might hav to defer some pur- chases, but take away at credit card and you would have more oney instead of less. Not just because you ouldn't be tempted to buy so much, but ecause you wouldn't be tempted to buy so ch, but because you wouldn't have to pay much for what you did buy. A $400 freez costs about $440 if you pay for it over a year, $480. if you spread the payments er two years. The free market? T a panacea doesn't call for credit allocators price controllers. It might even make it p sable to get rid of the tax breaks and gimm s by which the Gov- ernment currently tr s to shift money into productive investme The poor? Because hey have the toughest time getting credit -the first place, they would be the least a ected by a credit-card crunch. If it's true hat they get finagled into ~ paying exorbit t interest rates, they would save tho mos And let's face it, the temptations of eas credit mean nothing but trouble fora 1 ~ of poor people. Restraint? You tcha. Impluse buying would be a lot hard if you didn't have that little plastic card ruing a hole in your Psychology? Beca a it would affect our buying habits so irectlg, a credit-card crunch would do m e than a million Presi- dential warnings t .convince us thatkthis inflation really is a erious business. would cut spending men would have to c the meantime, price tercet rates lowered, system would be would be spread and the basis woul of prosperity. And putting money in taking it out. the tools that was vent inflation duri n on consumer credit much that business- productlon and lay off our problem is ahort- k, industry could ex- jobs, the free-market eserved, the sacrifices h reasonable fairness, ed, successfully, to pre- World War II. The laws NATIdNAL EMERGENCIES AGT Mr, MANSFIELD. Mr. President, I ask unanimous consent that the Senate pro- ceed to the consideration of Calendar No. 1i36, S. 3957, with the approval of the distinguished Senator f1'om Idaho (Mr. MC'CLURE). The AC'CING PRESIDENT pro tem- pore. The. bill will be stated by title. The legislative clerk read as follows: A bill (S. 395'7) to germinate certain au- thorities with respect to national ernergenciea still in effect, and to provide for orderly implements-lion and. termination of future national emergencies. The ACTING PRESIDENT pro tem- pore. Is there abjection to the present consideration of the bill? There being no objection, the Senate .proceeded to consider the bill. Mr. MATHIAS. Mr. President, I send an ari`iendnlent to the desk. The ACTING PRESIDENT pro tem- pore. The amendment will be stated. The legislative clerk proceeded to read tine amendment. Mr. MA'.CHIAS. Mr. Fresident, I ask unanimous consent that further read- illg of the amendment be dispensed with. The ACTING PRESIDENT .pro tem- pore. Without objection, it is so ordered. The amendment is as follows: Strike out all after the enacting clause and insert in lieu thereof the following: That this Ac;t ma,y be cited as the "National Emergency Act". TITLE I--TERMINATING EXISTING DECLARED EMERQENCIES SEC. 101. (s) All powers and authorities possessed by the Fresident, any other a~fficer or employee of the Federal Government, or any Executive agency, as defined in section 105 of title 6, United States Code, as a result of the existence bf any declaration o:[ na- tional emergency in effect immediately prior to one year after the date of enactment of this Act are terminated one year fronx the date of suclx enactment. Such termination shall not affect- (1) any ac;tiou taken or proceeding pend- ing not finally concluded ar determined on such date; (2) any action or proceeding based on any act committed prior to such. date; or (3) any rights or duties that matured or penalties that were incurred prior to such date. (b) For the purpose of this section., the words "any national emergency in effect" mean a general declaration. of emergency made by the President pursuant to a statute authorizing him to declare a national emer- gency. TITLE II-DECLARATIONS OF FUTURE NATIONAL EMERGENCIES SEC. 201. (a) In the event the President finds that a proclamation of a national emer- gency Sa essential to the preservation, pro- tection. and defense of the Constitution or to the common defense, safety, or well-being of the territory or people of the United States, the ]?resident is authorized to pro- claim the existence of a national emergency. Such proclamation shall immediately be transmitted to the Congress and published in the Federal Register. (b) Any provisions Of law conferring powers and authorities to be exercised dur- ing anational emergency shall be effective and remain in effect (1) only when the President (in accordance with subsection (a) of this section) , specifically declares a na- tional emergency, and (2) only in accord- ance with this Act. No law enacted after the date of enactment of this Act shall atiper- sede thLs title- unless it does so in epe:ciflc terms, referring to this title, and declaring that the new .law supersedes the provia;iona oY this title. SEC. 202. (a) Any national emergency de- clared by the President in accordance wiith this title shall terminate if- (1) Congress terminates the emergency by concurrent resolution; or (2) the President issues a proclamation terminating the emergency. At the end of each year following the declaration of an emergency which is still in effect, the Presi- dent shall publish in the Federal Register and transmit to the Congress a notice stating that the emergency is still in effect. Any na- tional emergency declared by the President shall be terminated on the date specified in any concurrent resolution referred to in clause (1) of this subsection, and any powers or authorities exercised by reason of said emergency shall cease to be exercised after such specified date, except that such termi- nation shall not affect- (A) any action taken or proceeding pend- ing not finally concluded or determined on such date; (B) any action or proceeding based on any act committed prior to such date; or (C) any rights or duties that matured or penalties that were incurred prior to such date. (b) Not later than six months after a na- tional emergency is declared, and not later than the encl of each six-month period thereafter that such emergency continues, each House of Congress shall meet to con- sider avote on a concurrent resolution to determine whether that emergency shall be terminated. (c) (1) A concurrent resolution to termi- nate or continue a national emergency de- clared by the President shall be referred to the appropriate committee of the House of Representatives or the Senate, as the case maq be. One such concurrent resolution shall be reported out by such committee together with its recommendations within fifteen calendar days, unless such House shall other- wise determine by the yeas anal nays. (2) Any concurrent resolution so reported shall become the pending business of the House in question (in the case of the Senate the time for debate shall be equally divide between the proponents and the opponents) and shall be voted on within three calendar days thereafter, unless such House shall otherwise determine by yeas and nays. (3) Such a concurrent resolution passed by one House shall be referred to the appro- priate committee of the other House and shall be reported out by such committee to- gether with its recommendations within fifteen calendar days and shall thereupon become the pending business of such House and shall be voted upon within three calen- dar days, unless such House shall otherwise determine by yeas and nays. (4) In the case of any disagreement be- tween the two Houses of Congress-with re- spect to a concurrent resolution passed by bath Houses, conferees shall be promptly appointed and the committee of conference shall make and file a report with respect to such conetument resolution within: six cal- endar days after the legislation is referred to the committee of conference. Notwith- standing any rule in either House concern- ing the printing of conference reports in the Record or concerning any delay in the con- sideration aP such reports, such report sh.ail be acted on by both Houses not later than six calendar days after the conference report is filed. In the event the confereees are un- able to agree within 48 hours, they shall re- port back to their respective Houses in die- agreement. (5) Paragraphs (1)-(4) of this subsection, subsection (b) of this section, and section 602(b) of this Act are enacted by Congress- (A) as an exercise. of the rulemaking power of bhe Senate and the House of Rep- resentatives, respectively, and as such they are deemed a part of the rules of each House, respectively, but applicable only with respect Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 Approved For Release 2005/04/21 :CIA-RDP7.7M00144R001100040005-4 October 7, 19 i~ CONGRESSIONAL RECORD - SE1~ATE history has amnesty been as hot a political Item as it is today. "My impression;' says I'roi. Arthur 3. Link of Princeton University, "is that we didn't normally have the terribly deep feelings on both sides of the issue .. . in the past: ' That isn't surprising. The Civil War was unique in American history in terms of the bitterness Americans felt for each other. And the Vietnam War was the first time the country's leaders attempted to wage a foreign war ixl the face of substantial opposi"ton at home. ?RhCEDENTS SINCE 1784 But the amnesty issue hoe generated po- litical heat at other times as well. Consider, for example, Woodrow Wilson's reply when he was asked about amnesty for Eugene V. Debs, the Socialist leader who was wiled during World War I for violating wartime sedition laws: "I will never consent to the pardon of this man.... Were I to consent to it, I should never be able to look into the faces of the mothers of this country who sent their boys to the other side.... This man eras a traitor to his country." (Wilson's suc- cessor, Warren Harding, finally pardoned Debs and hundreds of other dissenters.) 1~he amnesty question, as Tames F. O'Nell will tell you, also kicked up some political dust following World War II. "The !seas wasn't as controversial is those day ss it is now." says O'Nell, the only surviving mem- ber of the three-man Presidential Amnesty 'Review Board created by Harry Truman In 1948. "But there were organizations at that time putting pressure on the White House and Congress, and I surmise that President Truman got exercised by this." The 'Truman board eventually reviewed ib,80b individual cases and recommended amnesty for 1,b23 draft evaders, That number was.-added to 1,b18 ex-convicts who served at least a year in uniform and were granted amnesty by Truman when honorably dla- charged from the service. Trtunan's case-by-case program was the last of 37 separate grants of amnesty issued by ib Presidents since George Washington first used the President's Constitutional pow- er "to grant reprieves and pardons." These grants have ranged from the Civil War` amnesties, which affected millions, to James Madison's pardon of a band of Guli -Coast pirates who ravaged US. shipping but later joined the American effort during the War of 1812. The word amnesty derives from the Greek smnestfa, forgetfulness. It ]s a "class action" pardon that erases from a government's of- ficial memory acts that are technically ll- was granted to several thousand Pe 1- vania farmers who had participated -the famous Whisky Rebellion of 1794. In lain.- ing his action, the President. eloqu y sum- med up the spirit of the act. "Th I shall always think it a sacred dut exercise with firmness and energy the stitutional powers with which I am v he wrote, "yet it appears to me no 1 ns7stent with the public good ... to le in the opera- tions of Government ev degree of modera- tice, dignity, and p may permit:' COMPA35 V9. VENGEANCE Sixty-eighty later, Abraham Lincoln had more 1n d than moderation and ten- dernesa whe~'33e offered a "fun pardon" to most Sout}~'ners who would quit the rebel cause anc~'sign an oath of loyalty to the Union. c]'iie of his major aims, historians agree, was to weaken the South's resolve to fight. "Of course there was a certain amount of expediency Ln that move," says E. B. Long, associate. professor of American studies as the University of Wyoming and author of several books on the Civll War era. "I happen: to think Lincoln was the greatest Americana human being, but you can't take the soft:, soapy, ultrahumanitarian view of everything; he did. lie had a war to win, for .heaven's sake:' Nevertheless, adds bong, Lincoln's war- time moves were made Sn the context of hip humanitarian plans foI restcuing the Union, Those plans called for what has becomr3 known as the "henceforth oath," meaninr; those who would renew their anegiance to the Union would not be punished, But th++ Radical Republicans favored the "ironcla+l oath," which would hays eEr;luded from th~~ governmental process anyone who hed sup- ported the Confederate war eJort in any way, According to Processor Long, this was on~~ of the issues at the root of the nation - wrenching debate on Rsaonstruction, and even 1n Lincoln's time opposition to hi s compassionate-approach was brewing amon, hard-line Republicans in Congress. Late,'. after Johnson became President,- the debate an how to deal with th.e defeated South be- came apower struggle between the executiv and the politically potent Congress. But them the South. Andrew Johnson harbored. certafa tlve feelings of his own, though, a hesn gave an interesting twLgt to his am nesty program. It excluded, for pie, ah Southerners whose net worth a ed ffi20, - 000. "Johnson was a plebe boy," . says Long. "He r?presented the r white, th?s small dirt farmer, the yeo class of th.~ South-and North. And I he wanted tc:+ get st the wealthy and ke them crawl i~ hours passing ment as the Southern aristocracy pass y to plead forgiveness. "A a far as I know ays hang, `"he never turned down a sings tition." Johnsoh ed another amnesty proclama- tion on tmas Day o1 1868 that was c1osA to a un 1 grant of amnesty for South- erners. by this time Congress had take~~ contr i suffrage and. office-holding under the rteenth Amendment, and Congress ke ut 160,000 Southerners disfranchised. N untll 1872 did Congress remove the re- hostilities. During the Civil War, Lincoln issued par- dons for deserters who would retilrn to thei^ units within 60 days snd make up the tim~> spent in resertion. Johnson Issued s similar proclamation a year alter the war ended.. Draft evaders were nc?t prosecuted to and significant extent, according to historian. Long. "The draft laws were .just too loose." But the draft laws enacted 76 years later in the face of European turmoil were muc'x stricter, and the number of known. Selectiv Service violators during World War II ap- proached 16,000 when Truman created his Presidential Amnesty Review Board in late 1948. More than 4,300 of these-cases were Je- hovah's Witnesses who refused both militar:% service and alternate ctvillan service. Thy board rejected amnesty in these cases unles> the subjects could meet the Government`s definition of "minister" as someone whose service to his church was fulltime. in addition, the board rejected amnest i for most persons who objected to participa- tion is the-war effort beeauie of secular be- liefs. "We have not fei: justified," it report- ed, "Yn recommending those who ...have S 3~ set thelxiselves up as wiser and more compe- tent than society to determine their duty to come to the defense of the nation." ii such a test were apple James O'Neil, the board's ber, :most of those who re Vietnam for secular philo Each as the war's "immor be pardoned. "But," the mancter of the Ameri add, "I wouldn't wan for deciding amnest nom 'War." That task will. 1 Yresi?dential Cle minLs'ter the $mnesty to V firm their al serve up to many of though, At a r Toros assn esp 1 Th u e A7' LAST, A PANACEA FOR OUR ECONOMY M~?. MANSFIELD. Mr. President, I have an article from the National Ob- servc~r of October 12, 1974, under "Ob- servations," entitled "At Last, a Panacea for Our Economy," by MichaeLT. Malloy. It has to do with the huge extension of credit in this country. It is a most worth- while article. I ask unanimous consent that it also be printed In the RECORD. TYiere being no objection, the article was ordered to be printed in the RECORD, as fc~llows: AT LAST, A PANACEA FOR OII$ ECONOMY (By Michael T. Malloy) Tha economic summitry of recent weeks churned up a tidal wage.oi conflicting advico on how to handle inflation, but no panacea. I have the panacea. Bei'ore unvelling it, though, let's look at what the economic aummiteers Were trying to de., whg they gave conflicting advice, and what the areas are in which they actually did agree. What they (and the rest of us) want is to check the rise iII prices, reduce the rate of interest, and divert mole credit toward build- ing ]louses and expanding industrial pro- duction. They (and the rest of us) disagree on how to do? this because we don't want the cost to fall on our own pocketbooks. Business doesn't want profits hurt; labor. doesn't want to sac- rifice income. Also, traditional economists don't want the free market messed up by price controllers and mandatory allocation of credit. But liberals fear that the traditional free-market medicine, which means cutting Gove:rnmellt programs and boosting unem- ployrnent, would hit hardest at the poor. There is agreement, though, that we should all fight inflation together by showing re- straint in the way we spend money and some- times waste it. And a let of econon fats and officials wish for something dramatic (an- nther boring Presidential speech?) to get public phychology ready to make moderate saeri~ices. Okay: here is the panacea. Stamp out credit cards, sock it to the charge accounts, crack dowr+ on go now-pay later. Not overnight mayk+e, and not 100 per cent, but enough to p~xsh our buying habits back to where they were, say, a decade ago. Prices? All that easy credit is added to the price of the stun you buy, whether you use the ?credit or not. Merchants .who accept Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 Approved For Release 2005/04/21 :,CIA-RDP77M00144R001100040005-4 'Qct~be-r 7, Y 97.E CONGRESSIONAL RECORD -SENATE to the procedure to be followed in the House in the case ai resolutions described by this subsection; and they supersede other rules only to the extent that they-are inconsistent therewith; and (B) with cull recognition of the constitu- tional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same man- ner, and to the same extent as in the case of any other rule of that House. TITLE III-DECLARATIONS OF WAR BY CONGRESS $EC. 301. Whenever ..Congress declares war, any provisions of law conferring powers and authorities to be exercised during time of war shall be effective from the date of such dec- laration. TI'T'LE IV-EXERCISE OF EMERGENCY POWERS AND AUTHORITIES SEC. 401. When the President declares a na- tional emergency no powers or authorities made available by statute for use in the event of an emergency shall be exercised unless and until the President specifies the pro- visions of law under which he proposes that he, or other officers will act. Such~speciflca- tion may be made either in the declaration of a national emergency, or by one or more con- temporaneous or subsequent Executive orders published in the Federal Register and trans- mitted to the Congress. TITLE V-ACCOUNTABILITY AND RE- PORTING REQUIREMENTS OF THE PRESIDENT .S'EC. b01. (a) When the President declares a national emergency, or Congress declares war, the President shall be responsible for maintaining a file and index of all significant orders of the President; including Executive orderq and proclamations, and each such Ex- ecutive agency shall maintain a file and index of all rules and regulations, issued during such emergency or war issued pursuant to such declarations. (b) All such significant orders of the Pres- ident, including Executive orders, and such rules and regulations shall be transmitted to the Congress promptly under means to assure confidentiality where appropriate. (c) When the President declares a national emergency or Congress declares war, the Pres- ident shall transmit to Congress, within 30 days after the, end of each 3-month period after such declaration, a report on the total expenditures incurred by the United States Government during such 3-month period which are directly attributable to the exer- cise of powers and authorities conferred by such declaration, Not later than 30 days after the termination of each such emergency or war, the President shall- transmit a final re- port on all such expenditures. TITLE VI-REPEAL AND CONTINUATION OF CERTAIN EMERGENCY POWER AND OTHER STATUTES SEC. 801. (a) Section 349(x) of the Immi- 3ration and Nationality Act (8 U.S.C. 1481 (a)) is amended-- (1) at the end of paragraph (9) , by strik- ing out "; or" and inserting in lieu thereof a period; and (2) by striking out paragraph (10). (b) Section 2687(b) of title 10 of the United States Code is amended- (1) by inserting "and" at the end of para- graph (3); (2) by striking out paragraph (4); and (3) by redesignating paragraph (6) as (4). (c) The Joint resolution entitled "Joint Resolution to authorize the temporary con- tinuation of regulation of consumer credit", approved August 8, 1947 (12 U.S.C. 249), is repealed. (d) Section 6(m) of the Tennessee Valley Authority Act of 1933 (18 U.S.C. 831d(m) ) is repealed. (e) Section 1383 of title 18, United States Code, Ls repealed. (i) Section 8 of the Act entitled "An Act to amend the Public Health Service Act in regard to certain matters of personnel and administration, and for other purposes", ap- proved February 28, 1948, 9s amende.d by striking out subsections (b), (c), (d), (e), and(i) (42U:i.C.211b). (g) Section 9 of the Merch;mt Ship Sales Act of 1948 (60 U.S.C. App. 1742) is repealed. (h) Thia section shall not affect-- (1) any action taken or proceeding pend- ing not finally concluded or determined at the time of repeal; (2) any action or proceeding based on any act comrriitted prior to xepeal; ar (3) .any rights or duties that matured or penalties that were incurred prior to repeal. Sec. 802. (a) The provisions of this Act shall not apply to the following provisions of law, the powers and authorities conferred thereby, and actions taken, thereunder: (1) Section b(b) of the Act of Octciber 8, 1917, as amended- (12 U.S.C. 9b (a); 60 U.S.C. App. 6 (b)) ; (2) Section 873 o:C titlo 10, United StEbtes Code; (3) Act ofApr1128,1942 (40 U.S.C.278b)~; (4) Act of June 30, 1949 (41 U.S`C. 2b2) ; (b) Section 3477 of the Revised Statutes, as amended (31 II.S.C. 203); (8) Section 3737 of the Revised Statutes, as amended (41 U.E>.C. 16). (b) Each committee of the House of R,ep- resentatives axLd the Senate having Jurisdic- tion with respect to any provision of law referred to in subsection (a)(1)-(8) of this section shall make a complete study and in- vestigation concerning that provision of law and, make a .report, including any recom- mendations and proposed revisions it may have, to its respective House of Congrress within 270 days after -the date of enact- ment of this Act. Mr. MATHIAS. Mr. President, I offer this amendment in behalf of my distin- guished colleagues and cochairman of the Special Committee on National Emergencies and Delegated Emergency Powers (Mr. CHURCH) , and in behalf of the members of i;he special committee- Mr, HART, Mr. CASE, Mr. PEARSON, Mr. PELL, Mr. S7'EVENSON, and Mr. HANSEN. Very briefly, some of these are amend- ments which have been suggested in be- half of the President by the Office of Management and Budget. They make certain technical changes i.n the bill as it was originally approved by the Spe- cial Committee, and thereafter approved by the Committee an Government Op- erations. They have been cleared adth the distinguished rhairrnan of the Com- mittee on Government Operations (Mr. ERVIN). What they do is very simple. They ex- tend the grace period provided in the bill from 9 months to a year. 'T`hey provide. that while Congress can terminate a national emergency at any time by concurrent resolution, there ?will be no automatic termination aftel? 6 months if there is no affirmative action. This has been replaced by a require- ment for the Congress to meet every 6 months to consider whether to terminate an emergency. An expedited privileged procedure would assure consideration and a vote should the Congress so decade. We have reduced the list of statutes to be repealed. In working with the other body, partially. as a result of special committee studies, most of the provi- sions that have been deleted from our original ]1st are to be taken care of in various deadwood projects by the Codi- S 18357 flcation Committee of the House of Rep- resentatives. There are six statutes which are to be exempted from the provisions of this act. These statutes include Trading With the Enemy Act, a Ready Reserve provi- sion, purchasing contract lease and claims authorities believed by the execu- tive branch to be absolutely essential for the operation of government. There is a requirement that the committees with jurisdiction over these provisions must make a study and report recom- mendations within 9 months about modifications- or any other changes to be made. Finally, the requirement far account- ing of expenditures incurred under the authority of emergency powers statutes suggested by Senator MCCLELLAN has been included. Mr. President, over 2 years ago, the Senate created the Special Committee on the Termination of the National Emer- gency to examine the state of national emergency the United States was operat- ing under and to make recommendations of how to best terminate the emergency and to provide for a regular and con- sistent procedure by which future emer- gencies could be met. Soon after the bipartisan committee composed of four Democrats and four Republicans, with cochairmen one from either party, began its work it was evi- dent that there were four states of na- tional emergency in force and not just fine as many in the Congress had as- sumed. The national emergency declared by President Franklin D. Roosevelt in March 1933 to meet the problems of. the Great Depression has not yet been terminated. The national emergency declared by President Truman in December 1950, to better prosecute the Korean conflict, is still in force. The national emergency proclaimed by President Nixon on -March 23, 1970, to handle the Post Office strike, and the i4ugust 15, 1971, national emergency to meet balance of payments and other international eco- nomic problems of that time are still in force. A majority of the people of the United States have lived all of their lives under emergency Government. For four decades normal constitutional processes have not been the rule. The wars, emergencies, and crises of various kinds of the past 40 years, in addition to the growth of the executive branch bureaucracy under the leadership of strong Presidents, and the diminished role of the Congress in the making of policy-these factors have a,ll contributed to the erosion of constitu- tional government. `' There is na valid reason for emer- gency rule to continue. We are not at war anywhere in the world and there are no other conditions that requires the continued existence of a state of national emergency. Our Government would be strengthened by bringing to an end all states of national emergency now in existence, and this termination should take place as soon as possible. One course of action that seemed at first to be the simplest solution; namely, Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 S I~v58 Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 CONGRESSIONAL RECORD - SE~~TAT'E October 7~. ~~~"" to end the existing states of emergency foz~thwith and to repeal all emergency statutes was re3ected by the special com- mittee after intensive study, because it was clear that such drastic action could cause serious disruption of governmental processes. Same of the departments and agencies have used emergency authori- ties as basic everyday law. In the view of the special committee it would be unwise to abruptly halt these operations without providing a reasonable period of time to make a transition from emergency law to permanent law. An example of this everyday use oP emergency authority is the sa-called sec- tion 5 (b) of the Trading With the Enemy Act. 'this provision which dates back to World War I and 1917 has been in con- stant use as a means to regulate many aspects of foreign trade and international manetary controls. Partially because of the prospect that the states of national emergency would be terminated, the Treasury Department has already begun to adjust to doing its business without the broad open-ended authorities contained hi the section 5 (b) provisions. The spe- cial committee has taken into account the need for a period of time to make the adjustment with the least possible dis- arrav. For almost 2 years the Treasury Department has been aware that the states of national emergency would be terminated. The germane committees are aware of the problem. The committees of Congress with assigned jursidictions and the executive branch agencies should property decide through the regular leg- islative process the provisions of any new or modified legislation. In order to assure an orderly transition, the special com- mittee's view that a grace period of 1 year after date of enactment should b? given to the executive branch has been incorporated in the legislation now be- fore the Senate. Section 602(a> of the bill now before the Senate contains six provisions of law which the executive branch has strongly urged continue in force. The special com- mittee has concurred in this request. Sec- tion 602(b) would require the standing committees with jurisdiction over these statutes to study provisions and make a report to the Senate which would include recoinrnendations and ar>,y proposed re- visions. Asimilar process would be under- taken by the germane committees in the House. With the informed awareness now available to both the legislative and-ex- ecutive branches of provisions of law that have been used to meet emergency situa- tions, it is reasonable to assume that some modiflcatians will be made in some, if net all of the statutes contained in sec- tion 601 after further study in the coming 9 months by both the executive branch and the committees of the Congress. In the view of the special committee the most eiiective way to resolve this kind of outstanding issue can best be done by the two branches working through the regular legislative process. But the bur- den to remove these exceptions lies most heavily upon the Congress. The special committee wanted to be certain that the executive branch of the U.S. Government would have the proper legal authority to act effectively to meet any future emergencies. To this end, tI-_e special committee asked every Depar?u- ment and agency of the executive bran.~~h and every standing, committee of t':e Senate to evaluate the emergency pat~`- ers statutes now in Force as to their utl- ity for use in any future emergency. Tt:s evaluation provides the basis for the r~:- pea.ler section of the National Erne.?- gencies Act, section 601. The statutes contained therein are considered obs l- lete byboth the executive branch age~;- cies and by the committees. There is no disagreement between the branches that these obsolete provisiazts should be r:?- pealed.. Thero are other statutes among t`.ae 47o statutes that the respective standitQ committees may wish to repeal or ma.ta- ber 6, 1817, as amended, are hereby approved and oonfirme(l." (48 Stat. 1; 12 U+3.C. 9bb (1970)). Can@;ress thus"spread its protec- tive agpmval over executive acts the lega,llty of which wan uncertain." Ellir~gwood, 07~, cit. supra at 27 N'w. U.L. Rev. 929 (1933). Con- gress also amended Section b(b) to provide, among other filings, that "[d]uring times of war or during~ any othe?' period of national emergenep declared by the President, the President map ...regulate, under such rules and regulations as he Inap prescribe , transfers of Credit between ar paymente~ by banking institutions as defined by the President...." 48 Stat. 1. In the enactment clause Congress _ deohared "?that a serious emergency exists." 48 Stat. 1: The exclu:aian M domestic ta~ensaotions, formerly iovnti in the Act, was deleted from ? 6(b) at this time. The legislative history of the Emergency Banking Act is short; only eight hours elapsed from the tAme the bill wen intro- duced untll St was signed into law. There were no committee reports. Indeed, tie blll wan not even In print at th.e time lt, was passed. 77 Cang. Rec. 76, 80 (1933); Schles- inger, The Coming of the Ne2o Deal 8. The abbreviated history shows Congress recognized that the powers conferred on the President by the Act were great. In the de- bate precedin{; the bill's passage those sup- porting it msaie such remarks as: ? in time of storm there can only be one pilot. In my judgment, the Houses of Representatives realize that the pllot in this case must be the President of the United States, anal they will steer their course by him (Rep. C+o'klsborough, 77 Cong. Rec..Bl), "It is a dictatorship over finance is the United States. It is complete control over the banking system in the United Staten. (lisp. Mcl'adden, .77 Cong. Rec. 80) . "I realize that in time of peace we have perhaps never been called upon to vest such transcendent powers Sn the Executive a9 are provided for in this bill.... It is an ewer genep which can bo adequately dealt vnth only by the siaong arm of Executive power, and therefore I .expect to vote for the bill, though it contains grants of powers which I never before thought T waLlld approve in time of peace." (Sen. Connally, 77 Cong. l;!,ec. 6b). The courts later upheld the validity of the bank holiday under the Act as amended, 13.g., Smith v. Witherow, 102 F.2d 638, 641 (3d Cir., 1939); Hardee v. Wash.i~agton Loan ~ Trust Co., 9 L F.2d 314 (D.C, Cir. 1937) . Be- cause of the prompt action taken by Con- gress in ratifying the March 6 proclamation, no judidal decisions were rendered on the S 183~i question of whether the President's action, if taken alone, would have been laivKul. Subsequently in 1933-34, acting under ? 5 (b), President Roosevelt issued a series of orders which prohibited the hoarding of gold and directed that all gold bullion certificates be deposited with the Federal Reserve Santis and which regulated transactions in foreign exchange:. (1) Executive Order 6073 of March 10, 1933, prohibited the export or removal of gold from the United States, except as au- thorized by the Secretary of the Tresaury, and banks were prohibited from making transfers of foreign exchange except in con- nection 'with certain described transactions. Thin order did not specifically refer to a na- tional emergency. (2) Executive Order 6102 of Aprll b, 1933, generally required holders of gold coin, gold bullion, and gold certificates to surrender their holdings to Federal Reserve Banks. Thin Order stated "Bp virtue of t'he authority vested in me by Section 6(b) ... as amended by Section 2 of the Act of March 9, 1933, .. . in which amendatory Act Congress declared that a serious emergency exists, I ... do de- clare that said national emergency still con- tinues to exist " (3) Executive Order 6111 of April 20, 1933, authorized the Secretary of the Treasury to regulate transactions is foreign exchange and the export or withdrawal of currency from the United States. The emergency basin for E.O. 6111 was stated in the same lan- guage as the language o2 E.O. 8102, quoted immediately above. (4) Executive Order 6260 of August 28, 1933, was issued to supplant Executive Orders 6102 and 6111. This order prohibited the holding or export of gold, except under license issued by the Secretary of the Treas- ury, and authorized the Secretary to regu- late or prohibit transactions in foreign ex- change. Ia E.O. 6260 the President stated "I ... do declare that a period of national emergenep exists." Executive Order 6260 was confirmed and amended by Presidents Eisen- hower and R:ennedy. 31 CFR Part b4. See 42 Op. A.C}. No. 3b, p. 9. (b) Executive Order BSBO of January 15, 1934, authorized the Secretary os the Treas- ury to regulate transactions in foreign ex- change, transfers of credit from American ? to foreign banks and export of currency or silver coin. This order is still on the books today. See. 31 CFR Parts 127-128. In thin Order, the President declared that "a period of national emergency continuos to exist." In January 1934 Congress ratified all acts which had been performed under the Emer- genep Banking Act. 48 Stat. 343 (1934); 12 U.S.C. 213 (1970). III. WORLD WA$ II ALIEN PROPERTY FREEZE Following the invasion of Norway and Den- mark by C+ermany !n Aprll 1940 :President Roosevelt acted to protect funds of residents of these countries in the United States from withdrawal under duress by issuing an or- der freezing those assets except as authorized by the Secretary of the Treasury. Executive Order No. 8389 (April 10, 1940). The order referred to authority under ? 6(b) but did not specifically mention the existence of a national emergency. The President had pro- claimed anational emergenep only months before in Septembr 1993; Proclamation No. 2352 noted the neutrality of the United States iIi the war and stated: "Whereas measures required at this time call for the exercise of only a limited num- ber of the powers granted in a national emer- gency: "Now, therefore, I ... do proclaim that a national emergency exists in connection with and to the extent necessary for the proper observance, safeguarding, and enforcing ai the neutrality of the United States and the strengthening of our Rational defense within the limits of peacetime authorizations:' Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 S 18362 Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 CONGRESSIONAL RECORD -SENATE October ~'%~, Subsequently on May 7, 1940, Congress passed a resolution "to remove any doubt" that ? 5(b) authorized certain aspects of the freeze order. The Report of the Senate Bank- ing Committee noted that when Congress passed the Emergency Banking Aet, "it in- tended to grant to the President all of the powers conferred upon him by section 6(b) of the Act of October 6, 1917, and to author- ize him to exercise all of such powers not only in time of war, but during any other period of national emergency." S. Rep. No. 1496, 76th Cong., 3d Sess. 1 (1949). By )Dint resolution, Congress thus approved and con- firmed the order and amended ? 5(b) to clarify the President's freeze power over alien property. b4 Stat. 179 (1940). See United States v. Von Clemm, 136 F. 2d 968, 970 (2d Cir. 1934), cent denied, 320 U.S. 769 (1943) uplolding the retroactive validity of the 1940 point resolution of Congress) . The original freeze order was an amend- ment to Executive Order No. 6560 of Jan- uary 1934 regulating foreign exchange and the export of coin and currency and the con- trols were somewhat similar to those exer- cised during the First World War and during the banking crises of 1933. This order, cover- ing Norway and Denmark, was followed by similar executive orders after other nations were invaded or subjected to Axis domino- tion. Eventually Germany, Japan and Italy were themselves covered in June and July 1941. The purpose of the orders was to keep the Axis from using billions of dollars of assets in the United States. Roosevelt Papers (1940 vol.), p. 133-34. Regulations issued by the Secretary of the Treasury, pursuant to a general delegation of Presidential authority under ? 6(b) made in 1942, continue to this date to serve as the basis for blocking trade and financial transactions with North Korea, Cuba snd North Vietnam. See 3L C.F.R, part b00 et seq.; Executive Order 9193, sec. 3, July 6, 1942, 7 Fed. Reg. 520b, and Executive Order 9989, Aug. 20, 1948, 13 Fed. Reg. 4891. IV. CONSUMER CREDIT CONTROLS Four months before the United States entered World War II, President Roosevelt is- sued Executive Order No. 8843, which directed the Federal Reserve Board to impose con- sumer installment credit controls as a meas- ure to fight inflation. 6 Fed. Reg. 4036 (1941). The order was issued on August 9, 1941, under ? 5(b) "in order, irx the national emergency declared by me an May 27, 1941 to promote the national defense and protect the national economy.. : ' B Fed. Reg. 4035 (1941) . On May 27, 1941, the President had issued Proc- lamation No. 2487 which proclaimed that "an unlimited national emergency con- fronts this country, which requires that its military,-naval, air and civilian defense be put on the basis of readiness to repel any and all acts or threats of aggression directed toward any part of the Western Hemisphere." In Executive Ordei 8843 the term "banking institution" as used in ? b(b), was defined to include any person engaged in the business of making extensions of credit whether as a vendor of aonsumer durable goods or other- wise. The Federal Reserve Board was author- ized, in order to prevent evasion of the_arder, to regulate any other extension of install- ment credit, any credit for the purpose of purchasing or carrying any consumers' dur- able good or any other extension of credit in the corm of a loan (other than loans to businesses or agxRcultural enterprises). 6 Fed. Reg. 4036. There was some suggestion at the time that the definition of banking institution to include vendors of "consumer durable goods" was beyond the power conferred by ? b(b). One writer noted that the President had "disclosed hitherto unsuspected potential- ities" in ? 6(b) by using this definition of banking institutions and that a clearer stat- utory basis would be desirable for such con- trols. Note, Federal Regxclation o} Consumer Credit by Executive Order. 41 Colum. L. Rev. 1287, 1289 (1941). See also Price Control Bilt, Hearings on H.R. 5478 before the House Banking and Currency Committee, 7'lth Cong., 1st Sess., pp. 118-117 (1941) . Never- theless, the controls were accepted-once the order was issued and never challenged in court. In December 1941 Gongress passed the First War Powers Act (56 Stat. 839) which included a provision approving and ratify- ing actions which had ben taken under ? 6 (b), thus apparently approving Executive Order No. 8843. After World War I1, Congress an four oc- casions took legislative action concernlug imposition by the Federal Reserve Board of consumer credit controls pursuant to ? b(:~). The four actions by Congress are as fol- lows: - /,l) The Congress passed a joint resolution in 1947 which provided that after November 1, 1947, the Federal Reserve Board was not to exercise consumer-credit controls pursulnt to Executive Order No. 8843. 61 Stat. $21, 12 U.S.C. 249. The joint resolution also pro- vided that no "such consumer credit ar:u- trols" could be exercised except during war- time or any national emergency thereaf~er declared by the President. 7'he legislation took this form because President Truman had decided to place #_ne issue of the continuation of controls "in the laps of Congress" rather than. rescind the controls himself by revoking the Executive order. 9:3 long. Rec. 97b7. The legislative history oP the 1947 resolution shows that Congress intended that the President have the power, ii needed, to make ouch controls effective against the day after the resolution by declar)ng a new national emergency.: ee 98 Cong. Ree. 97b3, 9758-69. 12) On August i6, 1948, Congress chanied its policy and authorized the Federal Re- serve Board, "notwithstanding" the 1047 joint resolution, to exercise `?consumer-crc d- it controls in accordance with and to carry out the .purposes of" Executive Order No. 8843. 62 Stat. 1291. The legislative hLtory of thr> 1948 a?~t again affirms congressional intent that the PrECSident retain his authority under Execu- tivo Order No. 8843 to exercise consumer credit controls thereafter during time of war or national emergency. It also made clear that he could have reimposed them on his own without-the 1948 resolution. The House report noted: "When the Congress terminated the con- trols over consumer credit pursuant to the provision of [12 U.S.C. 249), it speciflcaay provided that such tl:rmination~ did not af- fect the authority to reimpose such controls during the time of war or any national eme?r- geney declared by the President. The Presi- dent has evidently not seen fit to use fiefs authority to reinstate the regulation of con- sumer credit and henceforth the committee proposes ixr this joint resolution for ean- gressional enactment of such powers for a temporary period with respect to consumer installment credit and at the same tixi~e reserve the authority to exereLse consumer?- credit controls thence*_'ter during the time of war or declaration of any national emer- gency by the President H.R. Rep. No. 2455, 80th Cong. 2d Sees. b--6 (1948). The 1948 authority expired June 30, 1949. (3) In ?801 of the Defense Production Act of 1950, using Ianguage patterned closely on that of the 1948 enactment, Congress again gave the Federal Reserve Board authority to exercise consumer credit controls under Ex- ecutive Order No. 8843 "notwithstandinga" the 1947 joint resolution. 04 Stat.812. (4) In June 19b2, while extending other parts of the act, including ? 602, Congress repeatel ? 601. 66 Stat. 30b. Repealing ? 6^1 appeared to restore the provisions of the 1947 joint resolution (12 U.S.C. 249) authorizing the impositions of consumer credit contxds again during a war or a period of national emergency. 'V. FOREIGN DIRECT INVESTMENT PROGRAM Section b(b) was also used as aurhority for the Poreign Direct Investment Program in L968. Under E.O. 11387 of January 1, 1968, cor.~trols were imposed by President Johnson over transfers of capital to foreign countries by substantial investors in the United States. A :formal opinion was issued by Attorney General Ramsey Clark upholding the pro- gram, The opinion reviews the history of ? 61;b). It also discusses the continuation of the national emergency declared by Presi- dent Truman in Proclamation 2914 of Decem- ber 16, 1950, which referred to the hostilities in ]Korea and the world menace of the forces of communist aggression. 42 Op. A.G. No. 35. The order relies on the continuation of this emergency. I:n March 2, 1973, a federal district court judge ruled orally that ? 5(b) did not au- thorize an indictment charging a violation of the Foreign direct investment program. The exi.~tence ai a national emergency was not raised, however. An appeal is now being pre- pared. United States v. Ryan, Crim. No. 2038- 78 (D.D.C. 1973). E.O. 11387 contim.tes in effect today. VI. ExPORT CONTROLS most recently, ? 5(b) was used for a month ixx 1972 when it was invoked by President Nixon as authority for the regulations of exports. E.O. 11677 of August 1, 1972. Section 5(b) was used 3rx this situation because the existing law authorizing export_cantrois, the Export Administration Act of 1969, 83 Stat. 841, as amended by 86 Stat. 133, had expired. When export control legislation was re-en- acted, E.O. 11877 was revoked by E.O. 11683 of August 29, 1972. T11e executive order imposing controls re- cited the continued existence of the national emergencies declared by Proclamation No. 2914 of December 16, 1950, referred- to above, andl by Proclomation No. 4074 of August 15, 1971, which imposed a supplemental duty on imports for balance of payments purposes. on imports far balance of payments pur- poses. 5O U.S.C. APP, 5. SUSPENSION OF PROVISIONS RELATING TO ALLY OF ENEMY; REGULATION OF TRANSACTIONS ZN FOREIGN EXCI3ANGE OF GiOLD OR SILVER, PROPERTY TRANSFERS, VESTED INTERESTS, ENFORCEMENT AND PEN- A:LTIE9 (a) The President, if he shall find it com- patible with the sa}ety o} the United States and with the success}ul prosecution of the war, may, by proclamation, suspend tlae pro- visions o} this Act (sections l to 6, 7 to 39 and 41 to 44 of this Appendix] so far as they apply to an ally of enemy, and he may re- voke or renew such suspension from time to time; and the President may grant-licenses, special ar general, temporary or otherwise,. and for such period of time and containing suc;a provisions and conditions as he shall pre:scribe, to any person or class of persons to do business as provided ixr subsection (a) of section four hereof [section 4(a) of this Appendix], and to perform any act made unlawful without such license in section thrEOe hereof [section 3 of this Appendix]. and to file and prosecute applications under subsection (b) of section ten hereof [section 10(1>) of this Appendix]; and he may revoke or renew such licenses from time to time, if he shall be of opinion that such grant or revocation or renewal shall be compatible with the safety of the United States and witlx the successful prosecution of the war; and he may make such rules and regulations, not inconsistent with law, as may be rxeces- sary' and proper to carry out the provisions of this Act [sections 1 to 6, 7 to 39 anal 41 to 9:4 of this Appendix]; and the President map exercise any power or authority con- ferred by this Act [said sections] through such officer or officers as he shall direct. If the President shall have reasonable cause to believe that any act is about to be per- Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 A_ pproved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 ~ 18363 _ _. . ? ,... .-?.~,,.Tr* n t' c c rnr.T e T 7P T. x(112 3'1._-_ C~F.N t~'I'E formed. in violation of die] heh~all have hereby lconfewrrecl,ototPrescr bed imm lime to [section. 3 of thin Apl~ nement of the time, definitions, not inconsistent with the authority to order the postpo performance of such act far a period not ex- purposes of this subdivision, for any or all ceeding ninety daps, pending investigation of the terms used in this subdivision. Who- of the facts by him. over willfully violates any of the provisions (b) (1) Duri~ tohentaii emergency de- rulehor sreguloltiolri issuedatbereuna r,oshall any other pert 1 Blared by the President, the President may, upon connection, be fined not more than' through any agency that he may designate, C?10,000, or, it a natural person, may be im- or otherwise, and under such rules and raga- prisoned for not more 'than ten pears, or lotions as he may Prescribe, by means of both; and any officer, director, or agent of instructions, licenses, or otherwise-- any corporation who knowin-gip participates (A) investigate, regulate, or prohibit, any in such violation may be punished by a like transactions in foreign exchange,- transfers fine, imprlsonsnent, or both..AS used in thffi, of credit or payments 'between, bp, through, subdivision the term "person" means an indi- or to any banking institution, and the fan- vldual, partnership, association, or corpora-~ porting, exporting, hoarding, melting, or ear- tion:.(4ct. 6, 1917, ch. 196, 4 6, 40 Stat. 41b; 1918, ch. 178, ? 5, 40, Stat. 966; 24 Sept bullion , , . marking of gold or sliver coin or currency or securities, and Mar. 9, 1933, ch. 1, 4 2, 48 Stat. 1; May 7, 1940, (B) investigate, regulate, direct and cam- ch: 185, 4 1, 64 Stat. 179; Dec. 18, 1941, cffl. 598, poi. nilllity void, prevent or prohibit, any tttle,III, 4 301, b:i Stat. 839; Proc. No. 269b, acquisition ~hoiding, withholding, use, trans- July 4, 1948, it F R. 7517, 60 Stat. 1352.) far, withdrawal, transportation, importation [See 12 U.S.C. 9b sad 95x. Supra.] ar exportation of, or dealing in, or exercising Io IIS.0. 873. READY RESERVE any right, power, ar privllege with respect (a) In time of national emergency declared to, or transactions involving any property, in ~ the President after January 1, 1953, ar which any foreign country or a national wheys otherwise authorized by law, nn au- thereof has any. interest. authority designated by tho Secretary con- by any parson, or with respect to any prop- cernod may, without the consent of the per- - arty, subject to the jurisdiction of the United ~~ cencem~, order any unit, and any Staten; and any property or interest of any member not assigned to a trait organized iao foreign country or national thereof shall vent, serve as a unit, in the Ready Reserve undo[ when, as, and upon the terms, directed by the jurisdiction of thhat Secretary to active the President, in such agency or person as duty (other than for training) for not more may be designated tram time to time by the ,~y~ ~ consecutive months. President, and upon such terms and condi- (b} To achieve fair treatment as between Hans as ~ihe President may prescaribe such members in the Ready Reserve who are being interest or property shall be held, used, ad- considered for recall'to duty without their ministered, liquidated, sold., or otherwis0 consent, consideration shall 'be given to- dealt with in the interest of and for the (1) the length, and nature of Previous sere' beneSt of the United States, and such desig- loo ,~ assure such sharing of exposure do acted agency or person map perform any. hazards es the national sec~uitp and mllitary and all acts incident to the accompllahment requirements will reasonably allow; Guard Reserve, may be ordered to active duty in time of Presidential emergency for the duration of the emergency and for 8 months thereafter. In addition, the President may, at any time, colt out the National C3uard and Air National Guard to enforce the laws of the United Staten, to quell insurrection, and in case of actual or threatenefl invasion. Aa far as the Naval Reserve, Marine Corps Reserve, and Coast (}ward Reserve are concerned, this subsection represents a substantial decrease in the number and the period of service of reservists liable to be ordered to active duty to time of Presidential emergency. NOTE-EXCERPTS FROM HOIISE REPORT lOCi6, $2D CONG., 2D SESS. (1952) THE READY RESERVE The Ready Reserve defined by this section would contain those portions of the reserve components which would be most liable for active duty and which would be subject to call do time of w?r, or nation?f emergency declared by the President or the Congress. or when otherwise authorized by Zato. The last phrase includes authority to order re- servists to active duty pursuant to section 21 of the Universal Military Training and Service Act which is not affected by this bill. Note, however, that under section 234(b), whtch authorizes the ordering of the Ready Reserve to active duty {n time of national emergency declared by the President, the :Congress must first determine the number of members who may be so ordered- The Ready Reserve would be the only part od the reserve components which could be used do a Presidential emergency without further congressional action. At the present time, all of the Naval Reserve, Marine Cores Reserve, and Coast C3uard Reserve could be palled to active service is a Presidential emergency. In addition, the entire National Ciuax'd and the entire Air National (luard is noW callable by the President in Ease o! .threatened or actual invasion, insurrection, aI. tp execute the Federal laws. xoTa Under this provision 1,000,000 men can be ~~ to active duty. In addlttoa the Na- ttonal Guard can be federalized in a national emergency, which adds several thousand men to the fatal. In time of national emergency, therefore, in addition to existing armed forces at least eight divisions of troops, over -100 squadr?ns ?i aircraft anfl 6b ships can ~' activated by order of the President. ~ R SA. 278b. SAME: EXCEPTION OP CERTAIN VrrAL LEASES DvRUra Was oR EMERGENCY The provisions of section 278a of this title shall not apply durtnq war or a national emer a declared by Congress or by the g nL~l President to such lessee or renewals of eXist- ing leases of privately ar publicly owned proPertY ~ are certified by the Secretary ~ the Army or the Secretary of the Navp, or by such person or persons as he may desig- ~,~ ~ covering premises for mllitary, naval, m, civilian .purposes necessary far the prose- cation of the was or vital in the national emergency. (Apr. 28, 1942, ch. 249, 56 Stat. 247.) NOTE-EXCERPT FROM HOII88 REPORT 2029, 77TH CONG., 2D SEES. (1942) The Committee on Expenditures in the Executive Departments, to whom was referred the bill (S. 2212) to suspend during a na- tional emergency declared by Congress or by the President the ,provisions of section 32a of the act of June S0, 1932, as amended, having considered the same, report favorably thereon with recommendation that it do pass with amendments. The purpose of the proposed leglslatton 18 to render inapplicable to lessee entered into Presidentjshali, in the manner .hereinabove 3) employment necessary to maintain the national health, safety, or Snterest. provided, require any person to keep a itlu ( record, of, and to furnLah under oath, in the The Secretary of Detonse shall prescribe such ioavn of reports or otherwise, complete in- olicies and procedures as he considers aer,- formation relativo to any act or transaction essRry ,~ ~~ out this subsection. He sthall referred to in this subdivision either before, report an those policies and procedures art during, or after- the coanpletion. thereof, or least once a yeas to the Committees oa Armed relative to any interest in foreign property, o or relative to any p p rty p Services of the .mate and the House- of Rep- ro a in which an for- resentatives. sign. country or any national thereof has ar (c) N~ mate ~~ 1 Opp 000 members ~pf has had any interest, or as map be other- the Ready ~ amp ~ oa1 &Ctive duty wino. nocessasy to enforce the provisions of (other than for tnaialllg), without their cwl this subdivision, and is any case to which se'IIt. tinder .this saotiaa at any one linen. map~n the manner hereinabove pmvidded, (Aug. 10, 19b6, c31. 1041, 70A 8tat. 28; Sept. $. require the production, Or if necessary t0 the 1968, Pub. L. 8E-561, g>e 1 (14), 33 (s) (b), 'TZ Scat. 1441, 1b64.} national security or detenso, the seizure, of __ any !books of account, records,, contracts, lot- NOTE-EXCERPT .FROM HOIIS6 REPORT 1066, 82D tars. memoranda, or other Papers, in the CONa~ 2e Sass. (1952), custody or control of such person; and the President may. 1n the manner hereinabove NATIONAL EMERGENCE! DECLARED liY THi PRESrvarrr provided, take other and further measures not inconsLstent herewith for the enforce- In time of national emergency proaZatmed maul of this subdivision. by the President, ~' when othereoiae au- (2) Any payment, conveyance, transfer, as- thorized by Zavf, any member of the Ready etgnment, or delivery of property or interest Reserve may be ordered to active duty with- therein., made- to or for the account of tho out his consent for such period of time riot United States, or as otherwise directed, par- to exceed 24 consecutive menthe, but no suant to this subdivision or any rule, regu- member could be ordered to active duty, cation, instruction, or direction ]sued hero- under the committee amendment, until the under shall to the extent thereof be a cull ac- Congress had determined the number of quittance and discharge for all purposes of members needed far the national security. the obligation of the perm making the Members may be ordered ae individuals or same; and no person shall be held liable in as units, but as In the previous subsection any court for or in respect to anything done the committees has provided a safeguard or omitted in good .faith in connection with against the ordering of individual members bhe administration oi, or in._pursuance of and of units organized to serve as unite This ia reliance on, this subdivision, or any rule, provision would apply only do a future na- regulation, instruotioa, or direction issued t{anal emergency procla{mad by th.e PtESi- heretmder. dent but would retain Sn effect the authority (3) As used in this subdivision the terra to order such members to active duty under "IInited States" means the United States section 21 of the. UMTS Act With the limits- and any place subject to the jurisdiction; lions contained therein. thereof: Provided, however, That the fora- At present time all members of the Naval going shall not be construed as a limitation Reservo, Marine Corps Reserve, and the Coast (2) family responabilities; and Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 S 18364 Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 CONGRESSIONAL RECORD -- SENATE October 7, :1 ~ i I by the Government for national defense pur- Ail purchases and contracts for property (f) Carriage of cargo; specification of con- poses the present restrictions of section 322 and services shall be made by adves'asing, tainer size. of the act of June 30, 1932, as amended (40 as provided in section 263 of this ti#te, ex- No contract for the carriage of Government U.S.C. 278A), that the annual rental of prop- cept that such purchases and contrac*~, may property Srx other than Government-owned erties leased may not exceed lb percent of be negotiated by the agency head without cargo containers shall require carriage of the market value of -the premises on that advertising if- date of the lease, and the further restriction (1) determined to be necessary in th~% pub_ eta edplength height gorewidth.e (June 310, that alterations, improvements, and repairs lie interest during the period of a ne, "ional 1949, ch. 288, title II, ? 302, 63 Stat. 393; July map not be made in an amount in excess emergency declared by the President ryr? by 12, 1952, ch. 703, ? 1 (m), 66 Stat. 594; Aug. of 2b percent of the amount of tlxe rent the Congress; for the first year of the rental term, or for (2) the public exigex:cy will not admit of Nov18,81 65bPub$L889~ 3431 ?? I,22, 79 S 8 t. the entire rental term if the lease runs for the delay incident to advertising; 1303;-Nov. 8, 196b, Pub. L. 89-348, ? 1(2), 79 less than 1 year. (3) the aggregate amount involved does Stat. 1310; Mar. 16, 1968, Pub. L. 90-268, ? 4, Testimony given by witnesses from the not exceed $2,500; War Department indicates that these re- (4) for personal or professional servirs; 82 Stat. 50.) strlotlonS are impracticable in connection (b) fOT ally 6erl%iCe t~) be rendered by any NOTE-EXCERPTS FROM HOUSE REPORT 670, $.LST with leases og premises for the establishment university, rollege, or ether educational in- of information and filter centers as part of stitution; CONG., 1sT SESa. (1949) aircraft warning service installatiaus, and (8) the property or services are '.>> be TITLE III. PROCIIREMENT PROCEDURE also in many other types of national defense procured and used outside the limits c f the This title follows in structure, and is iden- leases, as, for example, the leasing of pxbp_ United States and its possessions; itical in language with, the Armed Services erties far use as offices and warehouses, for (7) for medicines or medical property ; :Prceurement Act, with a few appropriate storage or manufacturing purposes. Navy (8} for property purchased for auth~~rized ~%hanges and omissions. Department expressed concurrence in these resale; Section 301. Declaration of purpose- observatians. (9) for perishable or nonperishable sub- Thy section states that the purpose of The .committee concurs in the view that sistence supplies? title III is to iacllitate the procurement of a.ll leases which are to be exempted from the (10) for property or services for which it supplies and services. provisions of section 322 of the act of June is impracticable to secure competition? Section 302. Application and procurement 30, 1932, as amended, should be certified by (11) the agency head deternnes thar. the rnethods- the Secretary of War or the Secretary of the purchase or contract is for experiments:, de- * * * ; * Navg, or their authroized representatives, as velopmental or research work, or for the (c) Initially, this subsection reaffirms-the covering premises for military, naval, ar ei- manufacture or furnishing of propert ~ for basic principle that purchases and contracts vilian purposes necessary for the prosecu- experimentation, development researchT, or shall be made by advertising. Negotiation is tion opt the war or vital In the national ewer- test; gency, The bill, as introduced, was amended (12 for made permissible in certain excepted cases, by the Senate by insertion ai appropriate the agency hread rdeterm nescth t the ac rar~ nxsnt procurementde flexibility in Govern- language to this effect. This language will acter, ingredients, or components thareoi require executive departments or establish- are such that the purchase or contract slirnIId (1) This paragraph would -permit aut'r menu other than the War and Navy Depart- not be publicly disclosed- ntatlc and immediate transition from more menu to abtaixx a certificate gram an author- (13 fore ui meut which the- a enc rigid peacetime advertising procedures to a ized re resentative of the Secrets of War or ) q P g y _"e~ completely flexible system if the President or P r9 determines to be technical equipment and the Secretary of the Navy to the effect that as to which he determines that the proc:~ue- the Congress declares the existence of a na- the lease in question is necessary for the went thereof without advertising is nr:ces- tional emergency. prrosecution of the war or vital in the na- airy in special situations or in particular .,, n ~-? tionalemerGenr,~_rt,,..Q,,,,,,,,,,,,,,~.._~_._ _._ ,,.,,..,,...... .,,.., .------__-.. -- --------ro ?~~-???? wiucrx, 3II Lne judgment of the committee, are desirable where prosecution of the war effort is not in- volved, wlll be applicable. 41 U.S.C. 252. PIIRCIiA3Ea AND tiaNTRACTa FOR PROPERTY (s) Appltcabllity of chapter; delegation of authority. ' Executive agendas shall make purchases and contracts for property anal services in accordance with the provisions of this chap- ter and implementing regulations og the Administrator, but this chapter does not applp- (1) to the Department of Defense, the Coast Guard, and the National Aeronautics and Space Administration; or (2) when this chapter is made inapplic- able pursuant to section 474 of Title 40 or any other Yaw, but when this chapter is made inapplicable by such provision of law, sec- tions 6 and 8 of this title shall be applicable in the absence of authority conferred by stat- ute to procure without advertising or with- out regard to said section 6 of this title. (b) Small business concerns; share of busi- ness; advance publicity on ne-gotiated pur- chases and contracts for proper-ty. It is the declared policy og the Congress that a fair proportion of the total purchases anal contracts -for property and services far the Government shall be placed with small business ooncenxs, Whenever it is proposed to make a contract or purchase in excess of $10,000 by negotiation and without advemtis- ing, pursuant to the authority of paragraph (7) or (8) of subsection (c} oY this section, suitable advance publicity, as determined by the agency head with due regard to the type of property Involved and other relevant con- siderations, shall be given far a period of at .least fifteen days, wherever practicable, ae determined by the agency head. (c) Negotiated purchases and contracts for property; conditions. and that such standardization and ~ii;er- All transfers and assignments made of any changeability is necessary in the public claim upon the United States, or at any interest; pa~r?t or share thereof, or interest therein, (14) for property or services as to Which Tether absolute or conditional, and what- the agency head determines that bid prices ever may be the consideration therefor, and after advertising therefor are not reasonable a11! Powers of attorney, orders, or other su- (either as to all or as to some part of tITe- thorities for receiving payment of any auclr requirements) or have not been indepe_ad- claim, or of any part or share thereof, ex~ entl i p arr ved at In open competition: Pro- vided, That no negotiated purchase or c,an- tract may be entered into under this pr ra_ graph after the rejection of ail or some: of the bids received unless (A) notification: of the intension to negotiate and reasonable opportunity to negotiate shall have been given by the agency head to each responsible bidder and (B) the negotiated price is the lowest negotiated price offered by any resun- sible supplier; or (16) otherwis,s authorized. by law, except that section 264 of this title shall apply to purchases and contracts made without ~ d- vertising under this paragraph. (d) Bids In violation of antitrust laws. If in the opinion of the agency head bds received after advertising evidence any vio~a- tion of the antitrust laws he shall refer su_h bids to the Attorney General for approprfa ;e action. (e) Exceptions to section. cept as hereinafter provided, shall be ab- so1!utely null. and void, unless they are freely mitde and executed In the presence of at least two attesting witnesses, after the-allow- ance of such a claim, the ascertainment of the amount due, and the issuing of a war- rarrt for the payment thereof. Euch transfers assignments and powers of attorney must recite the warrant for payment and must be acF:nowledged by the person making them. before an officer having authority to take ack:nowledgementa of deeds, and shall be certified by the officer; and it must appear by the certificate that the officer, at the time of the acknowledgement, read and sully ex- plained the transfer, assignment, or warrant of attorney to the person acknowledging the same. The provisions of this section shall not aPF~ly to payments for rent of postoffice quar- ters made by postmasters. to duly author- ized agents of the lessors. The provisions of the preceding paragraph shall not appl in n y a y case in which the This section shall not b9 construed to (~i) moneys due or to become due from the authorize the erection, repair, or furnishing United States or from any agency or depart- of any public building or public Smprovv_ merit thereof under acontract-providing for went, but such authorization shall be re- Payments aggregating $1,000 or more, are as- quired in-the same manner as heretofore, ~r signed to a bank, trust company, or other (B) permit any contract for the constru_- financing institution, including any Federal tion or repair of buildings, roads, sidewalks, lending agency: Provided, .- sewers, mains, or similar items to be neg!z- 1. That in the case of any contract entered tinted without advertising as required bg into prior to October 9, 1940, no claim shall section 253 of this title, unless such cox:.- be assigned without the consent of the head tract is to be performed outside the Conti- of i:he department or agency concerned; nental United States w? unless negotiation of 2. That in the case of any contract en- such contract !s authorized by the provisions tared into after October 9, 1940, no claim of paragraphs (i).(3), (SO)-(12), or (14) shall. be assigned if it arisen under scon- of subsection (e) of this section. tract which forbids such assignment; Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 ~ ~ Approved. For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 Octoberr 7, 19~'.~ CONGR.ESSIONAL RECORD-SENATE ~ 1365 3. That unless otherwise expressly per- mitted by such contract any such assign- ment shall cover all amounts payable under such contract and not already paid, shall not be made to more than one party, and shall not be subject to further assignment, @x- cept that any such assignment may be made in one party as agent or trttstee for two or more parties participating in such financing; 4. That in the event of any such assign- ment, the assignee thereof shall file written notiice of the assignment together with a true .copy of the instrument of assignment with (a) the contracting officer or the head of his department or agency; (b) the surety or suIeties upon the bond or bonds, if any, in connection with such contract; and (c) the disbursing officer, if any, designated in such contract to make payment. Notwithstanding any law to the contrary governing the validity of assignments, any assignment pursuant to this section, shall constitute s valid assignment for all pur- poses. In any case in which moneys due or to become due under any contract are or have been- assigned pursuant to this section, no liability of any nature of the assignor to the United States or any department or agency thereof, whether arising form or independ- ently of such contract, shall create or im- pose any liability on the part of the assignee to make restitution, refund, or repayment to the United States of any amount heretofore since July 1, 19b0, or hereafter received under the assignment. Any contract of the Department of Defense, the General Services Administration, tlae Atomic Energy Commission, or any other de- partment or agency of the United States designated by the President, except any such contract under which full payment has been made, may, in time of war- or national emergency proclaimed by the President (in- cluding t7Le national emergency proclaimed December 16, Y950) or by Act or joint resolu- tion of the Congress and until such war or national emergency has been terminated in such manner, provide or be amended with- out consideration to provide that payments to be made to the assignee of any moneys .due or to become due under such contract shall not be subject to reduction or set-ofj, and if such provision or one to the same general effect has been at any time hereto- fore or is hereafter included or inserted in any such contract, payments to be made thereafter to an assignee of any moneys due or to become due under such contract, whether daring or after Stich war. or emer- gency, shall net be 'subject to reduction or set-off for any liability of any nature of the assignor to the United States or any depart- ment ar agency thereof which arises inde- pendently of such contract, or hereafter for any liabllity of the assignor on account of (1) renegotiation under any renegotiation statute or under any statutory renegotiation article in the contract, (2) fines, (3) penal- ties (which, term does not include amounts which may be collected or withheld from the assignor in accordance with or for Failure to comply with the terms of the contract), or .(4) taxes, social security contributions; or the withholding ar nonwithholding of taxes or social security contributions, whether arising from or independently of such contract. Except as herein otherwise provided, noth- ing in this section shall be deemed to affect or impair rights- or obligations heretofore accrued. (R.S. ? 3477; May 27, 1908, ch. 206, 35 Scat. 411; Oct. 9, 1940, ch. 779, ? 1, b4 Stat. 1029; May lb, 19b1, ch. 7b, 65 Stat. 41.) NOTE-EXCERPT FROM SENATE REPORT 217, 82D CONG? ,1ST SESS. (19b1) The purpose of this enactment was to en- courage the participation oP banks in the financing of Government contractors under the defense program of that time. It per- matted contraci;o'rs to assign to financing in- stitutions moneys due or to become due under their Government contracts, and it assured the assignee banks that, when pa,y- meats were made to them by the Government pursuant to such assignments, such pay- ments would not be subject to reduction or set-off on account of any claims the Gov- ernment might have against the contractor arising independently of the assigned contract. Enactment of S. 988, with committee amendments, would male it clear that a batik or other financing institution taking an assignment oY claims pursuant to the act would not be subject to later recovery by the Government of amounts previously pcdid to the bank as assignee, except, of course, that it would '.not .prevent the Government from obtaliiing restitution of amounts which may have been paid as the result of fraud. Second, the amendment would continue the provision of the present law that, if an assigned contract contains a "no set-off" clause, payments Inade by the Government to the assignee bank will not be subject to reduction or set-off because of any claims of the Government against the contractor which arise independently of the contract, but it would. also be made clear that the ~as- signee would be protected against set-off on account of claims oi' the Government against the contractor arising Yroln renegotiation, fines, and penalties--claims which are or- dinarily regarded as arising outside of the assigned contract. I:n any event, however, where the Government has claims against the contractor., the Government would be allowed to withhold, out of payments due to an assignee bank, any amounts in excess of the bank's interest in loans secured by such assignments. Finally, the authority for including the "no set-off" clause fn Government contracts, which is now restricted to the Departments of the Army, Navy, and Air Force, would be extended to contracts entered into by t:he General Services Administration, the Atornic Energy Commission, and suc11 other agencies of the Government as the President may des- ignate. Howeve;, authority for the inclusion of the clause would not be mandatory--it would be permissive In all cases at the dis- cretion of the, Government agencies con- cerned. 41 U.S,C. Sb. TRANSFERS OF CONTILACTS; ASSIGN- MENT OF CLAIMS; SET-OFI+ AGAINST ASSIGNEE No contract or order, or any interest there- in, shall be transferred by the party to whom such contract or order is given to any other party, and any such transfer shall ca~xse the annulment of the contract or order transferred, so far a:t the United States are concerned. All rights of action, however, for any breach of such contract by the contract- ing parties, are reserved to the United States. The provisions of the preceding paragraph shall not apply in any CRSe in which the. moneys due or to become due from the Unit- ed States or from anp agency or department thereof, under a contract providing for pay- ments aggregating $1,000 ar more, are :as- signed to a bank, trust company, or other financing institution, including any Fed- eral lending agency: Provided, 1. That in the case of any contract entered into prior to October 9, 1940, no claim shall be assigned without the consent of tlxe head of the de- partment or agency concerned; 2. That in the case of any contract entered into after October 9, 1940, na claim shall be assigned if it arises under a contract which forbids such assignment; 3. That unless otherwise expressly permitted by such contract any such assignment sha1.1 cover all amounts pay- able under such contract and not. alresidy paid, shall not be made to more than one party, and shall not be subject to further assignment, except that any such assignment may be made to one party as agent or trustee for two or more parties participating in such financing; 4. That in the event of any such assignment, the assignee thereof shall file written notice of the assignment together with a true copy of the instrument of as- signment wit11 (a) the contracting officer or the head of his department or agency; (b) the surety .or sureties upon the bond or bonds,. if any, iri connection with such con- tract; and (c) the disbursing officer, it any, designated in such contract to make pay- ment. Notwithstanding any law to 'the contrary governing the validity of assignments, any assignment pursuant to this section, shall constitute a valid assignment for all purposes. In any case in which moneys due or to become due under any contract are or have been assigned pursuant to this section, no liability of any nature of the assignor to the United States or any department or agency thereof, whether arising from or -in- dependently of such contract, shall create or impose any liability on the part of the assignee to make restitution, refund, or re- payment to the United States of a,ny amount heretofore since July 1, 1950, or hereafter received under the assignment. Any contract of the Departtent of De- fense, the General Services Administration, the Atomic Energy Commission, or any other del3artmeut or agency of the United States designated by the President, except any such contract under which full payment has been made, may, in time of user or national emer- gency proclaimed by the President (including the national emergency precis{med Decem- ber 16, 1950) or by Act or joint resolution of the Congress and until such war or national emergency has been terminated in such man- ner, provide or be amended without consid- eration to provide that payments to be made to the assignee of any moneys due or to become due under such contract shall not be subject to reduction or set-off, and iP such provision or one to the same general effect has been at any time heretofore or is here- after included or inserted in any such con- tract, payments to be made thereafter to an assignee of any moneys due or to become due under such contract, whether during or after such war or emergency, shall not be subject to reduction or set-off for any liability of any nature of the assignor to the United States or any department or agency thereof which arises independently of such contract, or hereafter for any liability of the assignor on account of (1) renegotiation under any renegotiation statute or under any statutory renegotiation article in_ the contract, (2) fines, (3) penalties (which term does not include amounts which may be collected or withheld from the assignor in accordance with or for (allure to comply with the terms of the contract), ar (4) taxes, social security contributions, or the withholding or non- withholding of taxes or social security con- tributions, whether arising from or inde- pendently of such contract. Except as herein otherwise provided, nothing in this section shall be deemed to affect or impair rights or obligations hereto- fore accrued. (R. S. ? 3737; Oct. 9, 1940, ch. 779, ? 1, b4 Stat. 1029; May lb, 1951, ch. 75, 66 Stat, 41.) NOTE-EXCERPT FROM SENATE REPORT 217, 82D CoNG., 1sT SESS. (1951) The Committee on Banking and Currency, to whom was referred the bill (S. 998) to facilitate the financing of defense contracts by banks and other financing institutions, to amend the Assignment of Claims Act of 1940, and for other purposes, having con- sidered- the same, report favorably thereon with amendments and recommend that the bill, as amended, do pass, s ? ? i ? Enactment of S. 998, with committee amendments, would make it clear that a bank or other financing institution taking an Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 18366 Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 CONGRESSIONAL RECORD - SF HATE October 7; 1 ~ 'l~ assignment of claims pursuant to the act would not be subject to later recovery by the Government of amounts previously paid to the bank as assignee, except, of course, that it would not prevent the Government from outaining restitution of amounts which may have been paid as the result of .fraud. S+~condly, the amendment would continue the provision of the present law that, if an assirryned contract contains a "no set-off" c:lanse, payments made by the Government to fire assignee bank will not be subject to reduction or set-off because of any claims of the Government against the contractor which arise independently of the contract, but it would also be made clear that the assignee a~ouid be protected agafnat set-off on account of claims of the Government against the contractor arising from renegotiation, fines, and penalties-claims which are ordinarily regarded as arising outside of the assigned caniract. In any event, however, where the Government has claims against the contrac- Wr, the Government would be allowed to withhold, out of payments due to an assignee bank, any amounts in excess of the bank's interest in loans secured by such assign- ments. F`irrally, the authority for including the "no set-off" clause in Government contracts, which is now restricted to the Departments of the Armv, Navy, and Air Force, would ire extended to contracts entered into by the General Services Administration, the Atomic Energy Commission, and such other agencies of the Government aS the President may designate. However, authority for the inclu- sion of the clause would not be mandatorp- it would be permtssive in all cases at the discretion of the Government agencies con- cerned. l~fr. BOTH. Mr. President, as a sponsor of the National Emergencies Act, I am pleased with the rapid consideration which the Senate is giving to this impor- tant legislation. I strongly urge its pass- age today. 'I'bis bill represents another effort by Congress to insure that Congress and-the President share equally the responsibility for major national policy decisions. This bill, for the first time, will establish cri- teria under which a national emergency can be declared by the President and provides for its automatic termination unless extended by.congressional action. It also terminates four national emer- gencies which are still in effect. Most Americans do not know that since March 6,_1933, the United States has been in an ollicial state of national emergency. The 1933 emergency was declared to deal with the Depression. In addition, three other national emergencies are concurrently in effect-the December 16, 1950 emergency in connection with the Korean war, the t~iai?ch 23, 1970 emergency to handle the Post Office strike, and the August 15, 1991 emergency to carry out certain cur- rency restrictions to help our balance oi' payments. because Congress has been remiss in not terminating these emergencies, many outdated statutes designed to give the President wide-sweeping powers to meet the emergency situations of those times rE;lnain on the books. It is my under- standing that in its almost 2 years of diligent work, the Special Committee on the Termination of the National Emer- ;;ency compiled some 470 provisions of the united States Code which in some way or zi=lother delegate extraordinary powers try the President in times of war or na- tional emergency. It is important and esssentiai that in such times, the President does have ~:he powers needed to deal with the situati _rn. But it is also essential. that when '::he emergency is over, the emergency powers either terminate or are carefully re- viewed to insure that they make soc,.~ld and responsible pelznanent legislation.. In times of emergency, important l~~g- islation does not receive the time and attention which it mould in zlormal tilr 's. One provision that this bill would. ?e- peal gives the President, the .Secret;:-iy of the Armv, or any general the authority to declare any part or all of the Uni~.ed States a military zone, within which >~ ny act he designates may be punished as a crime. Such a sweepiig provision r~:p- resents apotential. threat to America ?.l~n liberties and should certainly be strl:ck from the books. In my judgment, this bill devises a sensible way of insuring that rapid acti ~n can be taken to meet an emergency siti:a- tion while safeguarding against the ar':ai- trary and irresponsible llse of such pot+ er by a future President. Under the t `,11, the President is authorized to declrFre a national emergency whenever he l;e- .lieves it "essential to the preservati -gin, protection, and defense of the Constf? =~1- tion, and is essential to the common ce- fense, safety, or well-being of the tei ~i- tory and people of the United States." However, the emergency could bet r- rninated-by Congress-by concurrent reso- lution and, if not, would expire at the ~ nd of 6 months unless explicity contini~d by Congress. Morn over, the President would be required during the emerges cy to keep a list of all Executive orders, p_?o- mulgations, rules,. et cetera, made w?th respect to the emergency and transi^ft the texts to Congress. This provision a~11 provide a comprehensive overview of ;xll extraordinary acts taken during ;~n emergency and a mea,.ure of congr. s- sional oversight over such acts. I believe that this bill strikes a care'ul balance between the need far the Pre~i- dent to act ixl the case of war or anotl er kind of national emergency and the -?a- quirements of shared powers and respon- sibilities between Congress and the Pre ,i- dent. Ihope it will be passed today azid speedily acted upon by Lhe other Hoy se and signed into law by the President. Mr. MATHIAS. Mr. President, I u e the adoption of the amendment. The ACTING PRESIDENT pro to:_- pore. Tile question is on agreeing to tr`.ie amendment in the natul?e of a substitu e. .The amendment was agreed to. T'he bill was ordered to be engross ed for a third reading, was read the th rd time, and passed, as follows: S. 3957 An act to terminate certain authorities w th respect to national emergencies still in effect, and to provide for orderly im~'e- mentation and termination of future ~:a- *,ional emergencies 3e it enacted by tt~e Se~aate a>sd House o/ Representatives o/ the TJnited States of Amer4ca in Congress assembled- That t;:ris Ac,t may be cited as the "ational Emergr n- efea Act". TITLE I-TERMI"_dATING EXISTING ' DECLARED EIVIERGENCIES SEC. 101. (a} All powers and authori# ies possessed by the President, any other offi,y to perpetuate this sas- tem so in opposition to even their o pan stated goals. I realize that this is joist one example and that streafrilining c~ne program alone will not save -the ecc.~n- omy. But by providing a series of s;~~h examples, maybe we can show the Amd r- ican public haw we ought to begin. An- other area to consider would be Fede ?al contracts. Just as cost-zeros Government contracts must cease so should the Da ~~is Bacon Act which governs wages under Government contracts. There is no sector of Goverrcment: spending wh`~?h cannot be cut down, streamlined, and improved. One area alone should not be b~~r- dened with the solution of irrfiatirm, least of all the Defense Department. I wonder, Mr. President, if I am heg~n- ning to understand the thinking of th+:>se who want, in the name of beating 3r1f a- tion, to dismantle our defense system, It may be that their theory is that at the current rate of inflation"there will be nothing left to defend. An unfortunate tendency of Congr ~~ss is to hasten its abdication of responsi- bility by the setting up of monstrous k:~u- reaucracies. The Congress knows p=:r- fectly well what happens next. Althou ~h the orlginal purpose of these bureal.:c- racies was to rectify an evil or prove, de a service, their main function shor'.ly became self-preservation. Some Pti r- petuate themselves by complicating the very problems they were established to resolve. Others are not content to serve those who seek out their assistance, l:~ut actively engage 1r1 ferreting out nyw clients. Those which actually get the ' ~b done then have to seek out whole new areas of responsibility. And now we have provided them with a legal services cc:r- poration which gives lawyers the en- couragement and money to bring larl.-er numbers of citizens under the control of more bureaucracies. We recently n..r- rowly defeated an effort to create a superagency in the name of consumes. This agency would presumably have re~- resented everybody In all areas, as it would have had "consumer responsit: i.l- ity" over all other agencies. It is obvic; us that the answer to the question who is a consumer is the counterquestion, who is not a consumer? Turning the counk ay into a nation of bureaucrats 1s not tre solution to inflation. I would also like to point out sore e- thing Iexpect to see forted on us. Pr': or to 1969 the budget was computed unc er the arlrn9nictrative budget concept. T) is meant that trust funds, such as sec al security, were not reflected in the budg-'t, In 1969 for the first time since the EisF-2- hower administration there was lip ser v- ice given to the idea of a balanced buc ;- et. But the method chosen to accor:a- plish this was neither a curtailing of spending nor an inereasr. in taxes, but cn accounting device. The budget went frc: ~n a deficit of $27,800,000 to an appare;:it surplus of something over $3 million. E~?it behind the fancy paperwork everything was the same. Now it will be interesting to see what happens when the social security fund cannot begin to make the payments required by the quantum jump in benefits. An admission of bankruptcy wi:tl have to be made before the expected run on general revenues occurs. 7[ have no doubt that the next sug- gestion will be to return to the admin- istrative budget concept as a was*, this time not of creating a budget surplus, but of reducing the deficit. However, elaborate accounting techniques will not save the economy. They will not replace solrnd fiscal and monetary policies. :[ noted in the colloquy between the majority leader and the minority leader there were two areas to which the major- ity leader referred as causes of the cur- rerrt inflation. One was the war in South- east Asia, and the second were the cur- rent oil price increases. 1VIr. President, I would suggest, as I have in the past, that it does no good to seE~k scapegoats rather than confronting responsibility. 'The war in Southeast Asia was a creation of and supported by the Congress of the United States. The mon- ey:l that were spent were appropriated by the Congress of the United States. 011 prices are the result of congres- sional action or, perhaps I should say, colrgressional inaction because of the facts that have been .readily apparent to anyone who would be willing to listen for more years than Congress would care to confess, and the lnactian of Congl?ess in meeting the emergency energy crisis is the direct cause of the increase in oil prices. Let us not be deceived that the Congress of the United States can escape respon- sibility by its failure to act. The respon- sibility for where we stand new still rernains on the shoulders of the Congress of the United States. '.Che resulting inflation which racks this country is still squarely upon the Congress of the United States and if, as a matter of fact, we are to finds way out of this dilemma it will require affirmative action by Congress as well as by the Exec- utive. 2~ir. President, I think it fs time for Congress to join with the administration and seek the affirmative and Positive pro- gra,ms to work our way out of what Ls not necessarily an economic collapse but a serious economic problem. 7['hank you, Mr. President. I yield back the remainder of my time. ORDER F BUSINESS Pdr. MANS Mr. President, I ask: to be recogniz now in place of the Senator from Nebr a. 7'lre ACTING PR IDENT pro tem- pore. Without objecti , it is so ordered. P/fr. MANSFIELD. suggest the ab- sence of a quorum. 7'he ACTING PRES ENT pro tem- pore. The clerk will call roll. 7~1e second assistant 1 lative clerk pra~ceeded to call the roll. Mr. MANSFIELD. Mr. ident. I ask unanimous consent that the rder for the Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4 Approved For Release 2005/04/21 :CIA-RDP77Of114~R00`1100040005-4 I ~ +~~(( PAGE 4 '~ T E WASHINGTON POST DP H t. , j '~ ~' f~' Th.e 460 -laws that would be Senate ~` iDt(~~ EiYIERGENCY, Feont Al ~~~th the Posh, O~ ri.~~_~ pied in legal limbo by the ~ ~ and to impler~t ~,urrenc'y re-; bill passed yesterday include I'resldentl~l sensor of the measure as ~g striation to dlltxal troreii;n such measures as authority for .auitli--Sen. Frank Church. (D- trade. ~K., .:,., ~ the President to take over y,:. -.., Idaho). In addition, the committee, communications media, ship= hOWe.t' +Cu~o~ `-~l'athias and Church served found that Congress delegated i ping and other private prop- - as cochairmen of a special emergency powers _to presi- arty. ~Tnder the bill, such pow- Ry Stephen Green Senate committee created. two dente in 470 bills that still re- ers could not be used unless a washfnston cost stare wr~t~r ,Years aga to investigate the ma%ned in effect' One of them, . new state of emergency was status of emergency presiders- among the 10 the Senate voted declared. Tiae,....~+enatP yntnd v atPrda ewers: '~'hP hill n?~y~ ..,_? P y p oes to .repeal authorized any gars- If president, under the bill, 4 take away firom the execu- to the IIouse where a similar eral to declare any position of declared a state of emergency,] title hranrh of thA ?'" '~ ant `~ r ""i~~use the country a military zone, ~ Congress would would have h j hair- ~ ,~~ arv ittoe fi t w . _ s ewers ma P Pr Rndin __ is subject to martial law. decide within x meri that hart t,pa? .,~~,,,,...._, ,_ ~~ t o G~'1`~' ,~n~??,,, ,,, n,,,,,, ,,,,,,,,,, ~,,., whether it shoul~ be:, -~'-~-~-b^y-?-?uaanimous yoicr~ vn~ fhp ~ etlatR--~Cted tn~t,Prmin~}n ?;~l,r~Cha}p emer arse rmposed b presi- ents sznce ,~~,?_a, ke al 10 emergertc -re ate 1 s~ and suspen 0 other laws that lave liven ex raordinary powers to i . PY?^,~tive h? The Senate vote came after brief debate. The measure, if passed by they ~Iouse and signed into laFV, would end emergency powers assumed by presidents to deal with the de~ pression in 1933, to mobilize the nation for the Korean War, to deal with a 1970 postal strike and'to implement cur- rency restrictions to control foreign trade. The laws that would be sus. pended, if .the measure be- comes law, range from estab- lishing presidential. authority to imposing marketing quotasy to extending the enlistment periods of military men. They also include such powers;. authority tq abrogate Indiatl treaties, to take aver power plants and to establish deten- tion camps. " is will help restore the balanc ,~WSF"']Se'twehit ~resrs,~and t e ex_~ive branch sal Sen_ Charles See EMERGENCY, A16, Col, 1 "In the view of the special ne put rn tau for a year for vi-; Mathias said. that before he committee, permitting this elation of any executive order ~ and Church introduced the body of potentially authoritar- of the President," Mathias and ; bill Aug. 22, they met with i&n power to continue in force Church-said. ' President Ford and agreed- "to in the absence of a valid , na- The two senators said that I work with the executive tional emergency situation po- "only a smal portion of the.' branch at every stage srid to ses a hazard to democratic 470 delegated. emergency.: pow- consider any new pro~sosals government;" Mathias -and 'ers is being used. This. is one' that. might be made." Church-said in a joint state- significant proof that there is The Satiate originally was merit yesterday. no longer an emergency that scheduled to vote on the meas- "Aggressive presidents, per- requires extraordinary delega? ure last wee>i-but decayed ac- missive congresses and a long. Lions of powers." tiers whQn Ford administration series of successive crises However,, they said, "some officials asked that same have all contributed. to the of the departments '&nd agars- ch~nees be made. erosion of 1Ehe structure of di- - ~,~ - As a result, Mathias yester- vid.ed ewers, th.e bedrock of cies have-used emegenc~ an- p thorities as basic aye day ~av amended the bill to give our constitutional system of ~ - - the executive branch 12 government," they added. law " As an example, they `cited months to end the states When members of the bipar- the Treasury Department of emergency. tisan Senate committee 'began ~ - ~ their work they thought the which, they said has.. used .a only national emergency sti111 Warld War I trading with tfie in effect was the 1954 emer-' enemy law 1;o regulate "as? genes declared by President I pacts of foreign trade and in- Truman at the time Hof the Ko-j ternational monetary controls. rear War. As the committee investiga- tion proceeded, it was learned that still in effect were the 1933 depression states of emer- gency declared by President .Franklin Delano 'Roosevelt ~z Fns ~~~~- o_f emergency de- clared in.1970 and 1971 by for- ~ mar President Richard M. Nixon to deal, respectively, For example, department used this law in August, 1971, to limit the ekport of soybeans Mathias introduced a last- minute, amendment yesterday exempting .the trading-with- the-enemy act from the bill, at the request of the Ford adniin- istratiou. He raid the adminis- tratioYl believes the act to be absolutely essential for the op- eration of gvernment. Approved For Release 2005/04/21 :CIA-RDP77M00144R001100040005-4