PARTIAL TRANSCRIPT OF PRESIDENT'S NEWS CONFERENCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200130053-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: January 24, 2005
• Sequence Number: 53
• Publication Date: October 10, 1963
• Content Type: NSPR

Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130053-6
THE EVENING STAR
Washington, D. C., Thursday, October 10, 1963
A-7
Partial Transcript of President's News Conference
Following is a partial tran-
script of President Kennedy's
news conference yesterday.
The President: The S o v i e t
Union and various Eastern Eu-
ropean countries have ex-
p r e s s e d a willingness to buy
from our private grain dealers
at the regular world price sev-
eral million tons of s u r p l u s
American wheat or wheat flour
for shipment during the next
several months. They may also
wish to purchase from us sur-
plus feed grains and other
agricultural commodities.
After consultation with the
National Security Council, and
informing the appropriate
leaders of the Congress, I have
concluded that such sales by
private dealers f or American
dollars or gold, either cash on
delivery or normal commercial
terms, should not be prohibited
by the government, The Com-
modity Credit Corp. in the De-
partment of Agriculture w i l l
sell to our private grain traders
the amount necessary to re-
place the grain used to fulfill
these requirements, and the
Department of Commerce will
grant export licenses for their
sale with the commitment that
these commodities are for de-
livery to and use in the Soviet
Union and E a s t e r n Europe
only.
An added feature is the pro-
vision that the wheat we sell to
the Soviet Union will be carried
In available American ship s,
supplemented by ships of other
countries as required. Arrange-
ments will also be made by the
Department of Commerce to
prevent any single American
dealer from receiving an exces-
sive share of these sales.
No action by the Congress is
required, but a special report
on the matter will be sent to
both houses tomorrow.
Basically, the Soviet Union
will be treated like any other
cash customer in the world
market who is willing and able
to strike a bargain with private
American merchants. While
this wheat, like all wheat sold
abroad, will be sold at the
world price, which is the only
way it can be sold, there is in
such transactions no subsidy to
the foreign purchaser; only a
savings to the American tax-
payer on wheat the g o v e r n-
ment has a l r e a d y purchased
and stored at the higher
domestic price which is main-
tained to assist our farmers.
Will Strengthen
U. S. Economy
This transaction has obvious
benefit for the United States.
The sale of 4 million metric
taus of wheat, for example, for
an estimated $250 million, and
additional sums from the use
of American shipping, will bene-
fit our 'balance of payments
and gold reserves by that
amount and substantially
strengthen the economic out-
look for those employed in pro-
ducing, transporting, handling
and loading farm products.
Wheat, moreover, is our
number one farm surplus to-
day, to the extent of about one
billion unsold bushels. The sale
of around 150 million bushels
of wheat would be worth over
$200 million to the American
taxpayer in reduced budget ex-
penditures. Our country has
always responded to requests
for food from governments of
people who needed it, so long
as we were certain that the
people would a c t u a l l y get it
and know where it came from.
The Russian people will
know they are receiving Ameri-
can wheat. The United States
has never had a policy against
selling consumer goods, includ-
ing agricultural commodities,
to the Soviet Union and East-
ern Europe. On the contrary,
we have been doing exactly
that for a number of years, and
to the extent that their limited
s u p p I i e s of gold, dollars and
foreign exchange must be used
for food, they cannot be used
to purchase military or other
equipment.
Our allies have long been en-
gaged in extensive sales of
wheat and other farm products
to the Communist bloc, and, in
fact, it would be foolish to halt
the sales of our wheat wheh
other countries can buy wheat
from us today and then sell
this flour to the Communists.
In recent weeks Australia and
NATO allies have agreed to sell
10 million to 15 million tons of
wheat and wheat flour to the
Communist bloc.
This transaction advertises
to the world as nothing else
could the success of free Amer-
ican agriculture. It demon-
strates our willingness to re-
lieve food shortages, to reduce
tensions, and to improve rela-
tions with all countries, and it
shows that peaceful agree-
ments with the United States
which s e r v e the interests of
both sides are a far more
worthwhile course than a
course of isolation and hostili-
ty.
For this Government to tell
our grain traders that they
cannot accept these offers, on
the other hand, would accom-
plish little or nothing. The So-
viets would continue to buy
wheat and flour elsewhere, in-
cluding wheat flour, from those
nations which buy our wheat.
Moreover, having for many
years sold them farm products
Half of a mile of wheat is stored in this grain
elevator of the Farmers Co-operative of Hutch-
which are not in surplus, it
would make no sense to refuse
to sell those products on which
we must otherwise pay the cost
of storage. In short, this par-
ticular decision with respect to
sales to the Soviet Union,
which is not inconsistent with
many smaller transactions over
a long period of time, does not
represent a new Soviet-Ameri-
can trade p ooicy. That must
await the settlfinent of many
matters. But it does represent
one more hopeful sign that a
more peaceful world is both
possible and beneficial to us all.
A. Do you have any misgiv-
ings about possible p o l i t i c a l
repercussions from your deci-
sion?
A. I suppose there will be
some who will disagree with
this decision. That is true
about most decisions. But I
have considered it very careful-
ly and I think it is very much
in the interest of the United
States... .
Stories On CIA
Called Untrue
Q. Could you discuss . . . the
stories or reports of how the
CIA has undertaken certain
independent operations, or in-
dependent of other elements of
the American government, that
are in South Viet Nam?
A. I must say I think the re-
ports are wholly 'untrue. The
fact of the matter is that Mr.
McCone (CIA director) sits in
the National Security Council
. w e have worked very close-
ly together in the N a t i o n a l
Security Council in the last two
months attempting to meet the
problems we faced in South
Viet Nam. I can find nothing,
and I have looked through the
record very carefully over the
last nine months, and I could
go back further, to i n d i c a t e
that the CIA has done any-
thing but support policy. It
does not create policy; it at-
tempts to execute it in thoA
areas where it has competence
and responsibility. I know that
the transfer of Mr. John Rich-
ardson, who is a very dedi-
cated public servant, has led to
surmises, but I can just assure
you flatly that the CIA has not
carried out independent activi-
ties but has operated under
close control of the director of
central intelligence, operating
with the co-operation of the
National Security Council and
under my instructions. .. I
think they have done a good
job....
Q. Could you say, sir, how
our policy is progressing in Viet
Nam in meeting what you es-
tablished as d e s i r a b l e last
month.
A. "I don't think that
there have been changes in the
situation in the last month. I
think we are still dealing with
the same problems we were
dealing with a month ago.
Denies Reversal
Of Latin Policy
Q. Was Assistant Secretary
Martin's statement cleared
with you, and if so, does it rep-
resent a reversal of your policy
on dictatorships in Latin Am-
erica?
inson, Kans. It can hold about
bushels of grain.-AP Wirephoto.
tempting to explain some of
the problems in Latin America,
why coups take p 1 a c e, and
what problems they present us
with, but . . . we are using our
influence and I am sure the
other countries of the hemis-
phere are using their influence
in those areas where coups
have taken place to provide for
an orderly restoration of consti-
tutional processes.
Make Position Clear
Q. Beyond the immediate ac-
tion, . . . does the United
States plan any general enun-
ciation of policy in regard to
military regimes, or does it
contemplate asking general
hemispheric action in regard to
this?
A.... As far as our national
policy, it was described on Fri-
day, with the withdrawal of
our diplomatic -our ambassa-
dors, our aid, our military as-
sistance and all the rest, so I
think we have tirade very clear
our policy and our interest in
providing for a return to .. .
constitutional processes in
those two countries.
Q. I was asking specifically,
sir, whether the United States
contemplated any b r o a d e r
hemispheric action in terms of
general action by the OAS in
A. No, I was informed gener- Ithis respect.
ally of what Mr. Martin was A. Not at this time. This is a
saying, and in fact, I re-read it matter which I think all the
this afternoon. In the first other countries have, the OAS,
place, our policy is not re- have to decide what they are
versed. If attention could be going to do. I think the United
drawn to Secretary Rusk's States has made its position
statement of Friday evening in very clear.
regard to the coups in the Q. Are you satisfied in ret-
Dominican Republic and Hon- respect that the United States
duras, we made it very clear did all it could, short of the use
that we are opposed to an in- of force, to prevent the Domin-
terruption of the constitutional ican and Honduran coups?
system by military coups, not A. Yes, I am. I have looked
only because we are all com- over the conversations, t h e
mitted under the Alliance for minutes, of cables and so on,
Progress to democratic govern- and I think we did. This idea
ment and progress and pro- that we ought to send United
gressive government; but also States Marines into Honduras,
because, of course, dictator- which, of course, we couldn't
ships are the seedbeds from have done under conditions,
w h i c h communism ultimately because of the time gap, I
el' fifedPFor Release 200 1618k14 h, G 6 68th
Mr. Martin was merely at- That is not the way, in my
opinion.... I think we did the
best we could.... -
Sees Long Road
Facing Goldwater
Q. There is a widespread ex-
pression that you expect Sena-
tor Barry Goldwater to be the
Republican nominee for Presi-
dent next year. I think your
speech in Salt Lake City had
something to do with that. Is
that your expectation?
A. I think he can do it. I
think it is possible for him to
do it. But he has a long road to
go, recalling the situation in
September 1959,. October 1959.
I think Senator Goldwater has
a trying seven or eight months
which will test his endurance
and his perservance and his
agility.
Q. Former President Eisen-
hower wrote recently in an ar-
ticle that he was unclear about
Senator Goldwater's views on
certain major issues. I wonder,
sir, whether you share this un-
certainty and if so how. you
think Senator Goldwater
should better express himself.
A. Senator Goldwater is
speaking frequently, and he is
saying what he thinks as of the
time he speaks, and I think,
therefore, we have an oppor-
tunity to make a judgment of
where he stands. I don't think
Senator Goldwater has ever
been particularly deceptive. I
think he has made very clear
what he is opposed to and what
he is for. I have gotten the
council . . . on the work of the
intelligence community. I am
well satisfied with the present
arrangement... .
U. S. Concerned
Over Price Rises
Q. Last spring there were se-
lective price increases in steel,
recently there have been price
increases in steel. Are you con-
cerned about these increases....
A. Well, we are watching
very carefully the rises which
have taken place in certain in-
dustries. This country has
avoided an inflationary spiral.
We see no reason why there
should be one now. The whole-
sale price index has remained
relatively constant for five
years. We are concerned that
price increases in one or two
basic areas may stimulate
other price increases which will
affect adversely our competi-
tive position abroad, and,
therefore, affect our balance of
payments, therefore, affect our
national interest.
In addition, profits are at a
record high now. They have
never been higher in history,
and the who 1 e year of 1963
looks very good, and, therefore,
we should be concerned also
with reducing prices as well as
increasing them... .
Q. Has there been an official
ruling that giving commercial
credits to Russia would not vio-
late the Johnson Act?
A. Yes, that is correct, be-
cause it is not a government-
to-government transaction .. .
these are private traders that
will be involved and the credit
will be granted by banks... '
But I have gotten a ruling
from the Department of Justice
that this does not contravene
existing laws, particularly the
Johnson Act. . . . The grain
dealers will take the risk with
the private banks.. .
Q. If I understood you cor-
rectly on the wheat statement,
you said the Russian people
will know they are receiving
American wheat. . . . Is that
by some agreement with the
Soviet Union or how would
that come about?
A. No, we have
idea. I think President E}' n-
hower will, as time goes %:.... , I
Q. How do You feel about
Senator Gruening's proposal to
set up a congressional commit- I
tee as a watchdog over they
CIA?
A. I think the present corn-!
mittees, there's one in both the
House and Senate which main-
tains very close liaison with the
CIA, is best, considering the
sensitive nature _of- Whey rkn.. .
in addition, I have aaa ant -GGaaadvisory
means of informing the Soviet
Union. As you know, for mane
months the Voice of Amerloa
has not been blocked, for ex.
ample, and, therefore, we be-
lieve we have'adequate means
to inform the Russian people ltf
the arrangement.
Prefers to Wait
Until Next Year
Q. Mr. President, as the elec-
tion year approaches, there is
an unusual amount of political
activity already, as the ques-
tions reflect. I wonder if you
would give us your thinking as
an experienced politician as to
the prime assets of your ad-
ministration next year, and the
prime liabilities of your admin-
istration?
A. . . . A lot of these matters
we will have to decide whether
the United States is better off
economically than it was be.
fore, and whether our position
in the world has improved, and
whether our prospects for
peace are greater, and whether
our defenses are stronger, and
whether we are making prog-
ress at home and aboard.
That is a matter which it
seems to me will be argued
very strongly In '64. For exam-
ple, we make a judgment about
the state of the economy In '64.
I think if they pass our tax bill,
we are going to be able to dem-
onstrate a very successful,
ebullient economy for a period
of four years. If they do not,
we will have a different situa-
tion. I cannot tell what our
relations will be in Southeast
Asia a year from now.. I know
what results our 'policy is at-
tempting to bring. But I think
that result ought to ' be judged
in the summer of 1964 and tie
fall of 1964. . . . It is too early
Q. Have you brought back
any dominant impressions of
your two recent trips in the
West and South, political im-
pressions?
A. I would say we are going
to have a hard, close fight in
1964, but that has been my 1 -
pression for a good many
months.
 51!QS 1I0 : CIA-RDP66B00403R000200130053-6
President Kennedy has: given
the Nation. flat assurance. that)
the Central Intelligence Agency
has not carried'.out indepen-
dent activities in South Viet
Nark.
John H. Richardson, CIA chief in Saigon, recalled re-
Port re-
portedly under some sort of,
cloud last week end; is "a very
dedicated public servant,". Mr.
Kennedy told his news confer-
ence last evening. He operated
under close control of CIA Di-
rector John:McCone, the Presi-
dent added.
He referred; however, to the
The s President .. also sured
"transfer" of Mr. Richardson,
indicating the controversial
figure.would not return to Sai-
gon.
A search of the record in the
last nine months shows the CIA
has.. done nothing; but support
agreed policies in South Viet
Nam, Mr. Kennedy reported.
"It does not create policy,"
she emphasized, "it attempts to
execute it in those areas where
it has competence and respon-
sibility."
Moreover, the -CIA director,
the United States Ambassador,
Henry Cabot Lodge, and the
Secretaries of State and. De-
fense are now in agreement on
policy in Viet Nam. If there is
disagreement at lower levels, he
speculated, this would be be-
cause "they are not wholly, in-
formed of wha&action$ we are
taking. Some of them are nec-
essarily confidential."
Reports the CIA undercut
United States p o l i c y in Viet
Nam; are "wholly untrue" the
President declared.
"While the CIA may have
made mistakes," het added, "as
we all do, on different occa-
sions, and has had many. suc-
cesses which may go unherald-
ed, in my opinion in.this case it
is unfair. to charge them as
,theyhve been charged. I think
they have, done' a good Job."
~No;new.congressional, watch-
dog committee is needed to
keep an eye on, the CIA, in the
President's opinion, :.b-e-o a us e
those Congressional groups now
;watching; CIA expenditures.-are
the''' Natfoi':that. the,_U.ni t e d
Stgtes continues'to :oppose :mil-
itary. coupain LatiniAmerica.
Coups, are "s el fdefeating
and., defeating ,for: `the...Hemi
sphere he said.
Both the Dominican Repub-
lic and Honduran governments
have recently been overturned
by coups.
Approved For Release 2005/02/10 : CIA-RDP66B00403R000200130053-6