RESTORATION OF FREEDOM TO CAPTIVE NATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000300110060-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: November 5, 2003
• Sequence Number: 60
• Publication Date: January 1, 1960
• Content Type: OPEN

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CONGRESSIONAL RECORD - SENATE 5621
By Mr. EASTLAND:
S. 3249. A bill for the relief of Salwa Sala-
meb; to the Committee on the Judiciary.
RESTORATION OF FREEDOM T07
CAPTIVE NATIONS
Mr. DOUGLAS submitted the following
concurrent resolution (S. Con. Res. 95),
which was referred to the Committee on
Foreign Relations:
Whereas the rulers of the Soviet Union
have repeatedly declared their determination
to pursue relentlessly their political, eco-
nomic, and ideological drive for a worldwide
victory for communism; and
Whereas in their efforts to attain that ob-
jective, the leaders of Russian communism,
through force of arms, subversion, infiltra-
tion and other unlawful means, have im-
posed puppet Communist regimes upon the
people of Poland, Hungary, Lithuania,
Ukraine, Czechoslovakia, Latvia, Estonia,
White Ruthenia, Rumania, East Germany,
Bulgaria, mainland China, Armenia, Azer-
baijan, Georgia, North Korea, Albania,
Idel-Ural, Tibet, Cossackia, Turkestan, North
Viet-Nam, and others; and
Whereas the leaders of Russian com-
munism have employed organized tryanny,
terror, mas killings and deportations, and
other inhuman means to crush the spirit of
the people of these captive nations and to
transform their countries into political,
social, economic, and cultural replicas of the
Russian Soviet State; and
Whereas in direct violation of the commit-
ments set forth in the Atlantic Charter and
the provisions of the Yalta Agreement, the
peoples of the captive nations are still being
denied the right of self-government by
democratic means and the opportunity to
choose, through free and unfettered elec-
tions, national governments of their own
free choice; and
Whereas in contravention of duly ratified
treaties of peace, of the Charter of the
United Nations of the universal declara-
tion of human rights, and of expressions of
the United Nations General Assembly, the
people of the captive nations are being sys-
tematically deprived of the exercise of
fundamental freedoms and basic human
rights; and
Whereas the Eighty-sixth Congress did
unanimously enact the captive Nations week
resolution as a testament of support for the
legitimate aspirations of the people of all
the captive nations, thus recognizing the
common plight of all the submerged nations
forcibly incorporated into the Russian Com-
munist empire during the past 42 years;-
and
Whereas the President of the United States
has concurred in this action by Congress by
signing the resolution into law and declar-
ing by public proclamation that the third
week of July shall henceforth he observed
officially as "Captive Nations Week"; and
Whereas the United States of America has
stood firmly on the principle of self-deter-
mination, welcoming the enlargement of
the area of freedom and self-government
and insisting on the inalienable right of the
people of the captive nations to live under
governments of their own choice; and
Whereas the United States of America
has consistently refused to sanction, either
directly or by implication, the political sta-
tus quo of the captive nations, which the
leaders of Russian communism have per-
sistently attempted to impose upon the
countries of the free world, particularly the
United States; and
Whereas the attainment of a just and
lasting peace is inconceivable without the
restoration of freedom, independence, and
national sovereignty to the captive nations
forcibly incorporated into the Russian Com-
munist empire, the United States of America
is determined to pursue by all peaceful
means the emancipation of these nations:
Now, therefore, be it
Resolved by the House of Representatives
(the Senate concurring), That-
(1) The Congress of the United States
reaffirms its intention to stand firmly by
the people of the captive nations in their
aspirations for freedom, liberty, and nation-
al independence.
(2) The Congress of the United States
invites the active cooperation of all nations
and men of good will in a crusade for peace
with justice and freedom for all mankind;
and
(3) The Congress of the United States
urges the President to pursue energetically
and as a matter of first priority at the forth-
coming summit conference the inalienable
right of all people to self-government, in-
dividual liberty, and the basic human free-
doms, and, in particular, the restoration
of these God-given rights to the people of
the captive nations.
RESOLUTION
EXTENSION OF TIME FOR FILING
REPORT BY, AND CONTINUATION
OF AUTHORITY OF, THE SELECT
COMMITTEE ON IMPROPER AC-
TIVITIES IN LABOR OR MANAGE-
MENT FIELD
Mr. McCLELLAN (for himself, Mr.
MUNDT, Mr. ERVIN, Mr. GOLDWATER, and
Mr. CURTIS) submitted a resolution (S.
Res. 294) extending the time for filing
the final report of the Select Committee
on Improper Activities in the Labor or
Management Field and continuing its au-
thority, which was referred to the Com-
mittee on Rules and Administration.
(See the above resolution printed in
full when submitted by Mr. MCCLELLAN,
which appears under a separate head-
ing.)
PAYMENT TO THE GOVERNMENT OF
THE PHILIPPINES
Mr. FULBRIGHT. Mr. President, by
request, I introduce, for appropriate ref-
erence, a bill to authorize payment to
the Government of the Philippines.
The proposed legislation has been re-
quested today by the Acting Secretary
of State in a letter to the Vice President
of March 3, 1960, and I am introducing
it in order that there may be a specific
bill to which Members of the Senate and
the public may direct their attention
and comments.
I reserve my right to support or op-
pose this bill, as well as any suggested
amendments to it, when the matter is
considered by the Committee on Foreign
Relations.
I ask unanimous consent that the bill
be printed in the RECORD at this point,
together with the letter from the Acting
Secretary of State to the Vice President
with regard to it.
The PRESIDENT pro tempore. The
bill will be received and appropriately re-
ferred; and, without objection, the bill
and letter will be printed in the RECORD.
The bill (S. 3238) to authorize pay-
ment to the Government of the Philip-
pines, introduced by Mr. FULBRIGHT, by
request, was received, read twice by its
title, referred to the Committee on
Foreign Relations, and ordered to be
printed in the RECORD, as follows:
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That-
SECTION 1. There is hereby authorized to be
paid by the Government of the United States
to the Government of the Republic of the
Philippines a sum not to exceed $73 million
in full satisfaction and final settlement of all
awards for war damage compensation made
by the Philippine War Damage Commission
under the terms of title I of the Philippine
Rehabilitation Act of 1946 (60 Stat. 128).
Src. 2. There is hereby authorized to be
appropriated out of any money in the Treas-
ury not otherwise appropriated the amount
of $73,000,000 less the amount determined by
the Secretary of the Treasury in consulta-
tion with the Secretary of State to be owing
to the Government cf the United States by
the Government of the Philippines under the
terms of the agreement relating to the repay-
ment of funds advanced to the national de-
fense forces, Republic of the Philippines by
the United States Philippines-Ryukyus Com-
mand signed at Washington November 6,
1950, and entered into force on that date.
SEC. 3. There is hereby authorized to be
appropriated out of any money in the Treas-
ury not otherwise appropriated a sum not to
exceed $10,000 which shall be available to the
Secretary of the Treasury for administrative
expenses which may be incurred in supplying
records appropriate and needed by the Philip-
pine Government consistent with the pur-
poses of this Act, and the transfer to the
Philippine Government of such records is
hereby authorized.
The letter presented by Mr. FULSSICHT
is as follows:
MARCH 3, 196660.
The Honorable RICHARD M. NIxoN,
President of the Senate.
DEAR Mn. VICE PRESIDENT: There is en-
closed for the consideration of the 86th Con-
gress the draft of a proposed bill entitled
"An act to authorize payment to the Gov-
ernment of the Philippines." The proposed
measure is the culmination of long study by
appropriate agencies of the executive branch
of the Government of an important prob-
lem: final settlement of all awards for war
damage compensation made by the Philip-
pine War Damage Commission under the
terms of title I of the Philippine Rehabili-
tation Act of 1946 (60 Stat. 128).
The draft bill authorizes the Government
of the United States to pay to the Republic
of the Philippines a sum not to exceed $73
million, which amount reflects the statutory
maximum of unpaid private claims accord-
ing to the reports of the War Damage Com-
mission. It also provides that the appropri-
ations for this purpose be reduced by any
amount owed by the Government of the
Philippines to the Government of the United
States under the terms of an agreement
(generally referred to as the Romulo-Snyder
Agreement) signed by the two countries on
November 6, 1950.
The records of the War Damage Commis-
sion are now largely in the custody of the
Department of the Treasury. The draft bill
provides for the appropriation of a sum not
to exceed $10,000 for administrative expenses
which may be incurred in supplying appro-
priate records to the Philippine Government
and authorizes the transfer of such records
to that Government.
The Philippine Rehabilitation Act of 1946
(Public Law 370, 79th Cong.), as a mani-
festation of U.S. good will toward the Phil-
ippine people, provided for the payment of
$120 million for restoration and improve-
ment of public property and essential public
services. The sum has been paid in full.
The act also provided for payments, on ac-
count of war damage to private property in
the Philippines, for rebuilding, replacement,
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CONGRESSIONAL RECORD - SENATE March 21
or repair of such damaged property. These
payments could, by the act, amount to a
maximum of 75 percent of the approved
amount of each claim after an initial $500
had been paid on each claim. The $400 mil-
lion appropriated under that act for this
purpose was sufficient to pay the initial $500
on each claim and approximately 52.5 per-
cent of the amount of each claim in excess
of $500 and such payments were made.
While the United States is under no legal
obligation to make further war damage pay-
ments in the Philippines, it is the view of
the Department of State that a payment in
settlement of this matter would be of sub-
stantial assistance to the United States in
attaining its foreign policy objectives. The
Philippine people feel that the program pro-
vided for by the Philippine Rehabilitation
Act of 1946 was not carried out as fully as
the law permitted. While all claims of $500
or less were paid in full and approximately
52.5 percent of the excess over $500 was paid,
the act had provided that up to 75 percent
could be paid on these larger claims. Addi-
tional war damage payments are therefore
looked on by the Filipinos as the fulfillment
of a moral obligation, already recognized by
our Congress, to provide assistance because
of war damage sustained in the defense of
the interests of the United States and the
Philippines. The Philippine Government and
people sincerely feel that the failure of the
United States to appropriate additional war
damage compensation has defeated a legiti-
mate expectation of assistance from the
United States to a firm ally which was se-
verely damaged in the mutual war effort.
The Department of State considers that set-
tlement of this claim would remove any
basis for the Philippine belief that the United
States has not fulfilled its promises to the
Philippines.
The executive branch believes that re-
building, replacement, or repair of war dam-
aged private property in the Philippines is
no longer practicable. Moreover, in view of
the time which has elapsed since the original
claims were approved, and since the United
States-Philippine War Damage Commission
went out of existence on March 31, 1951, it
is not considered practicable for the U.S.
Government to assume any responsibility
for the payment of the balance of approved
individual private property claims. It is
proposed, therefore, that settlement be made
directly with the Philippine Government,
whereupon the U.S. Government would con-
sider itself divested of any responsibility for
payment to private claimants.
Under the Romulo-Snyder Agreement of
1950, the United States converted into a loan
to the Philippine Government the residual
balance of certain funds advanced to the
Philippines but not returned as previously
agreed. The agreement provided that the
exact amount of the loan should be deter-
mined by the results of an audit by the
Philippine-Ryukyus command of the U.S.
Army and that repayment of principal and
interest should be made in 10 annual install-
ments, the last of which would he due on
May 31, 1960. An audit of April 1951 and a
reconciliation of audit of December 1952 set
the figure due the United States at approxi-
mately $37.5 million, which figure the Philip-
pine Government, pointing to alleged inac-
curacies and discrepancies in the figures of
the audits, has been unwilling to accept.
After making the first four annual payments,
the Philippines defaulted and has made no
further payments, there remaining some $24
million to be paid by May 31 of this year.
Consultations between representatives of the
two governments concerning the exact
amount due and payable as of that date are
now in progress. It is the final figure re-
sulting from these discussions which, ac-
cording to the presently proposed legislation,
would be deducted from the amount to be
paid to the Government of the Philippines.
The draft legislation was prepared by the
Department of State in consultation with
the Department of the Treasury. It is based
on a full and careful consideration of the
problems involved. Prompt and favorable
action resulting in the payment of the com-
pensation would strengthen the ties of
friendship between the United States and
the Philippines.
The Bureau of the Budget advises that en-
actment of the proposed legislation would
be in accord with the program of the Presi-
dent.
I respectfully request that early considera-
tion be given to the proposed legislation
which is transmitted herewith. A similar
communication is being sent to the Speaker
of the House of Representatives.
Sincerely yours,
DOUGLAS DILLON,
Acting Secretary.
Enclosure: A draft bill to authorize a pay-
ment to the Government of the Philippines.
ABOLITION OF FEDERAL FARM
MORTGAGE CORPORATION
Mr. WILLIAMS of Delaware. Mr.
President, one of the hardest things to
accomplish in Washington is the abol-
ishment of a Federal agency once it gets
started. That is true even though the
agency may well have outlived its useful
purpose.
Today I am sending to the desk a bill
the purpose of which is to abolish a
depression-born agency and one whose
services have not been used during the
past 15 years. This agency, however,
still retains all of its previously con-
ferred powers, including the powers to
borrow up to $2 billion and to pledge the
credit of the U.S. Government for pay-
ment.
The agency to which I refer is the
Federal Farm Mortgage Corporation,
which was established by an act of Con-
gress on January 31, 1934, primarily for
the purpose of enabling the Land Bank
Commissioner to make, on behalf of the
Corporation, second mortgage loans as
well as first mortgage loans on properties
on which the lending authority of the
Federal land banks was restricted.
This Corporation, in which the Gov-
ernment held all the capital stock, was
authorized, subject to the approval of
the Secretary of the Treasury, to issue
and have outstanding at any one time
$2 billion in federally guaranteed bonds,
and it could make collateral loans to the
Federal land banks as well as purchase
the bonds of those banks.
I am not questioning that this Cor-
poration served a necessary function
during the depression years; but, with
the outbreak of World War II and its
accompanying appreciation in Federal
income and property values, the services
of this agency no longer are llpcessary,
and since the end of World War II it
has no longer functioned as a lending
agency.
In fact, the authority of the Commis-
sioner to make mortgage loans expired
on July 1, 1947, except for refinancing
existing loans.
On June 30, 1955, all loans and certain
other assets of the Corporation were sold
by the Corporation to the Federal land
banks.
On September 7, 1957, all their mineral
reservations remaining unsold were
transferred to the Secretary of the
Interior in accordance with provisions
of legislation enacted in September 1950.
In September 1957 the Government's
investment in the capital stock of the
Corporation was fully retired.
The Corporation, however, was not
abolished; it still retained its authority,
subject to the approval of the Secretary
of the Treasury, to issue and have out-
standing at any one time federally guar-
anteed bonds in an aggregate amount
not exceeding $2 billion. They still have
authority to make collateral loans in the
Federal land banks and to purchase their
bonds. This authority is not being used,
but it is still there.
As of June 30, 1959, the only assets of
the Corporation were certain notes re-
ceivable from Federal land banks in the
amount of $5,602,214. These notes rep-
resent the balance due from the sale of
the loans and other assets of the Cor-
poration, and they are payable by the
representative banks in annual install-
ments.
Collecting these annual payments on
notes from the Federal land banks and
then transferring the proceeds to the
Federal Treasury are the only duties left
for this Corporation to perform, but
these payments could just as easily be
made direct to the Treasury.
I repeat, the Federal Farm Mortgage
Corporation during the depression served
a useful function. It was started at a
time when the Federal land banks were
not in a strong financial position, and its
purpose was to support these banks by
providing additional capital for loans
to the farmers during the depression of
the 1930's. The Federal land banks are
now, however, all in a strong financial
position, and everyone agrees that there
is no need for any funds or any support
from this Corporation.
Although this agency has not made
any loans since the depression years and
even though the authority of the Com-
missioner to make mortgage loans ex-
pired on July 1, 1947, except for refinanc-
ing existing loans, we find that since 1950
the following sums were appropriated to
cover their administration expenses:
1951---------------------------
$1,128,836
1952---------------------------
989,810
1953---------------------------
834,731
1954---------------------------
691,945
1955---------------------------
572,539
Appropriations were suspended in 1955,
during which year all loans and other
assets of the Corporation were sold to
the Federal land banks; however, during
each of the ensuing years authority has
been extended in the annual appropria-
tion bills for the corporation to make
such expenditures from collected funds
as were necessary to continue the liqui-
dation of its assets. These expenditures,
however, have been substantially lower,
and last year they were reduced to about
$5,000. But why this expenditure?
Why keep a useless agency alive when it
is not needed?
No agency of the Government having
the power to borrow and pledge the
credit of the U.S. Government in the
amount of $2 billion should be allowed
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 Approved For Release 2004/05/13 : CIA-RDP91-00965R000300110060-0
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